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

Vol. 144 WASHINGTON, TUESDAY, MAY 19, 1998 No. 64 House of Representatives The House met at 10:30 a.m. its program underestimated the politi- Given this horrific outburst of vio- f cal fragility and instability, both polit- lence in Indonesia, Congress has an im- ical and social, of Indonesia. This is a portant obligation to examine the role MESSAGE FROM THE SENATE relevant concern because political in- of the IMF and the role it has played in A message from the Senate by Mr. stability could well undermine the po- contributing to this situation with, I Lundregan, one of its clerks, an- tential for economic stabilization. might add, the use of U.S. taxpayers’ nounced that the Senate passed a bill In yesterday’s Wall Street Journal dollars. While it is clear that the poli- of the following title, in which concur- there was an article, and I would like cies of the Indonesian government had rence of the House is requested: to read a few lines from it. Date line, caused severe economic problems, it S. 1723. An act to amend the Immigration Washington: appears that the IMF conditions made and Nationality Act to assist the United Last fall, Indonesia turned to the Inter- the situation even worse. States to remain competitive by increasing national Monetary Fund for an economic life The fragility of the political environ- the access of United States firms and insti- raft. Instead, the resulting IMF program ment and the potential for violence tutions of higher education to skilled person- contributed to the turmoil now wracking the must be adequately considered when nel and by expanding educational and train- world’s fourth most populous nation. The ing opportunities for American students and considering these programs. For exam- IMF program failed to stabilize the Indo- ple, is it not evident that the IMF for- workers. nesian economy, its stated purpose. As the f economy worsened, domestic dissatisfaction mally integrated a political risk analy- grew. sis into the economic program? Obvi- MORNING HOUR DEBATES And it goes on, ously, it failed to do so. If the IMF pro- gram failed to address the potential The SPEAKER. Pursuant to the Jeffrey Sachs, whose Harvard institute has order of the House of January 21, 1997, long been an adviser to Indonesia, has been that it could destabilize political, so- the Chair will now recognize Members warning for months that the U.S.-backed cial and economic conditions even fur- from lists submitted by the majority IMF prescription was harsh and counter- ther, then it was flawed to start with. and minority leaders for morning hour productive. Congress has the public need and the debates. The Chair will alternate rec- In addition, it goes on, ability to examine the IMF staff re- ognition between the parties, with each Malaysian prime minister Mahathir views of the bailouts to determine party limited to 30 minutes, and each Mohamad also blames the IMF for worsening whether the risks of the IMF program Member, except the majority leader, Indonesia’s problems. ‘‘The IMF is not sen- were adequately considered. We have the minority leader, or the minority sitive to social and economic restructuring,’’ that responsibility and the IMF should whip, limited to 5 minutes. he said, according to Malaysia’s official news give us the information. These docu- The Chair recognizes the gentleman agency. ments have been requested repeatedly from New Jersey (Mr. SAXTON) for 5 To answer these questions, more in- of the IMF and the Treasury Depart- minutes. formation is needed to understand the ment. It has been made clear that they f International Monetary Fund program may be sanitized before their release. and its recent impact on Indonesia. Mr. Speaker, I include the entire ar- IMF PROGRAM SPARKS Once again I call on the IMF and the ticle from the Wall Street Journal for INDONESIAN TURMOIL Treasury to publicly release its staff the RECORD: Mr. SAXTON. Mr. Speaker, Ameri- reviews of the Indonesian bailout so [From the Wall Street Journal, May 18, 1998] cans across our country have seen tele- that Congress, the public, and private TIME WILL TELL IF IMF HELPED SAVE OR vised pictures of rioting in Indonesia, experts can better understand the IMF WRECK INDONESIA of social unrest and political unrest policy and its effects. (By Bob Davis and David Wessel) and, according to various news service Previous problems with the IMF pro- WASHINGTON.—Last fall, Indonesia turned accounts, the outbreak of rioting in In- gram were documented in the New to the International Monetary Fund for an donesia was triggered by price in- York Times article last winter which economic life raft. Instead, the resulting creases of basic commodities mandated reported that the International Mone- IMF program contributed to the turmoil now by the International Monetary Fund. tary Fund reviewed and found that the wracking the world’s fourth most-populous One recent Reuters news story notes IMF conditions had sparked a bank run nation. The IMF program failed to stabilize the In- that the IMF conditions were ‘‘A key on Indonesia several months ago. In re- donesian economy, its stated purpose. As the cause of the recent demonstrations.’’ cent days the Wall Street Journal has economy worsened, domestic dissatisfaction The recent violence raises important also come to similar conclusions, and I grew. The fund also high-lighted what the questions about whether the IMF and just read from that article. IMF and the U.S. condemn as a crooked

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.

H3367 H3368 CONGRESSIONAL RECORD — HOUSE May 19, 1998 brand of capitalism practiced by the Suharto Harvard’s Mr. Radelet said the IMF’s em- Jennings Randolph would be proud of regime, undermining its legitimacy and phasis on ending monopolies and closing gov- our every effort, Mr. Speaker, and suc- emboldening the opposition. ernment projects that are owned by friends cess this very day in freeing some of Whether the IMF, in the end, is seen as a and family of Mr. Suharto didn’t address the collected motorists’ gas taxes and villain that provoked widespread suffering or some fundamental economic problems. For a catalyst for constructive change depends months, for instance, the fund did little to spending them on transportation largely on what happens in Indonesia over help restructure Indonesian companies’ huge needs. Yes, J.R., we will one day re- the coming weeks and months. foreign debt, which prevents them from get- store trust to our Highway Trust IMF critics, led by outspoken Harvard Uni- ting the added financing needed to run their Funds. versity economist Jeffrey Sachs whose Har- businesses and from taking advantage of a I would like to tell my colleagues a vard institute has long been an adviser to In- weak currency to increase exports. little something about the Senator’s donesia, have been warning for months that The IMF has until early June to decide lifelong public service, that we have the U.S.-backed IMF prescription was harsh whether to disburse another $1 billion to In- seen little written about of recent date. and counterproductive. ‘‘The IMF program donesia, as part of a $43 billion bailout pack- Having traveled so often with the Sen- was really badly designed and made a bad age it cobbled together for the nation. Indo- situation worse,’’ says Steven Radelet, a nesian authorities have said they plan to roll ator, many times late at night in a Sachs colleague. back some of the price increases that very small plane, two or four-passenger Malaysian Prime Minister Mahathir sparked riots. But that by itself isn’t ex- plane, sometimes through very stormy Mohamad also blames the IMF for worsening pected to put the IMF’s added lending in weather, the first comment the Sen- Indonesia’s problems. ‘‘The IMF is not sen- jeopardy. ator would make upon landing was sitive to the social cost of economic restruc- f ‘‘Where is the telephone?’’. I would be turing,’’ he said, according to Malaysia’s of- TRIBUTE TO THE HONORABLE thinking of other places to visit but ficial news agency. the Senator was always wanting to But the Indonesian government hurt itself, JENNINGS RANDOLPH keep in touch with the people. too. It backtracked on pledges it made pub- The SPEAKER pro tempore (Mr. licly to the IMF, undermining the confidence Senator Randolph was known for his PETRI). Under the Speaker’s announced of both domestic and foreign investors. It devotion to people and his compassion vowed to dismantle unpopular arrangements policy of January 21, 1997, the gen- for all people in need. He coauthored that enriched Suharto cronies, but then re- tleman from West Virginia (Mr. RA- the Randolph-Shepherd Act for the built them under different names. And, at a HALL) is recognized during morning Blind, giving blind persons the oppor- pivotal moment, it flirted with a controver- hour debates for 4 minutes. tunity and the right to be employed sial currency-board approach to monetary Mr. RAHALL. Mr. Speaker, on May 8 and have the dignity of a paycheck. policy. After a parade of international lead- this year, the Nation lost a great man, The blind are still benefiting from that ers pressured Indonesia to live up to its a former U.S. Senator, a beloved West agreements, Mr. Suharto relented, under- effort today. Virginian, a great orator, a man of ci- He fought for and maintained the Black scoring his weakness to the newly vility and courtesy, a master of the emboldened opposition. Lung Benefits Act throughout his public life in Then earlier this month, Mr. Suharto’s legislative compromise, a builder of the Senate. Once, when he was being chas- new cabinet ministers changed direction and concrete, asphalt and stone, and a tised by some of his Coal Mining constituents implemented IMF-backed increases in fuel builder of character named Jennings because the Black Lung benefits bill was then prices much faster than the IMF demanded, Randolph, who died at the grand old languishing in the Senate with no action being sparking the recent riots. Although the IMF age of 96. taken, Senator Randolph quietly but firmly program allowed for the increases to be When Senator Randolph passed on, it said: There are only 18 coal mining states in spread out over a month, some prices soared was truly the end of an era. He was the as much as 70% overnight. ‘‘We didn’t set a the Union. Those 36 Senators are going to last living Member of Congress from vote for this legislation. Persuading 64 other precise date for [removing subsidies]. The the New Deal era, making him the last date was chosen by the government,’’ an IMF Senators representing non-coal mining states official says. of the New Deal legislators who voted that their constituents should or must allow Despite occasional misgivings about some to enact the Social Security System their tax dollars to be used to pay for the ben- elements of the IMF approach, the Clinton and a minimum wage. efits for workers in other States is not an easy administration strongly defends the fund. On May 11 of this year, had he lived, matter to accomplish. It takes time. And I pay ‘‘The IMF didn’t create the Indonesian eco- Senator Randolph would have marked those 64 Senators the courtesy of approach- nomic and political crisis,’’ says Mr. Clin- the 65th anniversary of his freshman ing them one on one, personally, to discuss ton’s national security adviser, Sandy speech on the floor of the House. He Berger. ‘‘Indonesia created the economic and the plight of coal miners with black lung dis- spoke on the subject of Mother’s Day, ease, and their need for disability compensa- political crisis. The International Monetary an event founded by fellow West Vir- Fund came in to try to help restore stability tion for themselves and, for those who have and put it on a path back towards growth.’’ ginian Anna Jarvis, and his speech, an died, their widows and orphans. He told them At their annual summit this weekend, eloquent one, was entitled, ‘‘The ``it will get done * * *'' And it did. leaders of the Group of Seven large indus- Unapplauded Molders of Men’’. This Senator Randolph, concerned for the plight trial nations and Russia, put the onus on the speech was given on the 69th day of of mentally and physically disabled children Suharto government. ‘‘Successful economic Roosevelt’s famous first 100 days, and and concerned over their lack of an appro- reform and international support for it will on that day Jennings Randolph the require political and social stability,’’ they priate education, established the first Sub- great orator was born. committee on the Handicapped in the Senate, said in a statement, and urged the Indo- As many of my colleagues will know, nesian government to open a dialogue with and he chaired that Subcommittee with pas- opposition leaders over reforms that address it was Senator Randolph who began, sion and the courage of his beliefs as he au- ‘‘the aspirations of the Indonesian people.’’ during his House tenure, to amend the thored and guided to enactment the Education Inside the IMF, some argue that the fund’s Constitution to allow 18-year-olds to for all Handicapped Children Act. Today, the willingness to confront not only fiscal and fi- vote. He succeeded in this endeavor in Special Education law is working to main- nancial policy issues, but also the corruption 1972, as a U.S. Senator, with the 21st stream disabled children into regular class- of the Suharto regime, is hastening long- Amendment to the Constitution, the overdue social change. Indeed, IMF programs rooms with their peers across this Nation in first and only constitutional amend- every school building getting a free and equal in Korea and Thailand, they argue, may be ment that took a mere 90 days to succeeding precisely because they coincide education to which all children are entitled. with political reforms—a new democratic achieve ratification by the requisite It was Senator Randolph, with his great love government in Seoul, constitutional reforms number of States and to become the for airplanes and aviation, who first proposed in Bangkok. Mr. Suharto’s departure law of the land. the establishment of the National Air and wouldn’t be mourned at the IMF. At one time, I am told, he forced Space Museum. When he first proposed it, of But it’s also clear that IMF advice failed then-President Nixon to spend the course, the space age hadn't been ushered in to revive the Indonesian economy and may funds appropriated for the interstate yetÐand so when asked to give the Dedica- have worsened a bad situation. Last year’s system by filing an injunction against tion speech for the new Museum, Randolph demand that Indonesia close 16 troubled Nixon’s practice of impounding the banks—meant a signal that the government remarked that it took so long to get Congress was finally addressing problems in the finan- funds, keeping them from being spent. to act on his proposed aviation museum, they cial sector—backfired. Depositors pulled It was in the 1974 budget act that im- had to add the word ``space'' to its name. funds out of other banks, further weakening pounding funds by a President was first And it was Senator Jennings Randolph who, the system. restricted. with another licensed pilot aboard, flew the May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3369 first coal-fueled aircraft from Morgantown, Texas (Mr. ARMEY) is recognized during menian Journey to Worcester’’. In West Virginia to National airport. Senator Ran- morning hour debates for 2 minutes. honor of the visit of his Holiness to dolph was always looking for ways in which Mr. ARMEY. Mr. Speaker, tomorrow Worcester, I include the story in the coal mined by his coal-mining constituents the Subcommittee on Finance and Haz- RECORD: could be used to help strengthen and stabilize ardous Materials of the Committee on [From Worcester Magazine, Apr. 29, 1998] the economic base of his beloved State of Commerce will hold a hearing on my THE ARMENIAN JOURNEY TO WORCESTER West Virginia. bill, the Auto Choice Reform Act, (By Clare Karis) And finally, but never lastly, the Senator re- which will cut auto insurance pre- ‘‘Who today remembers the extermination alized his long held dream of establishing a miums by 24 percent and save Amer- of the Armenians?’’ Adolf Hitler’s ominous peace-arm of the U.S. Government. Serving ican drivers $193 billion over 5 years. words, spoken on the eve of his invasion of under Roosevelt when the Nation was drawn Today we are forced to pay more Poland on Aug. 22, 1939, launched his six-year into World War II, Randolph believed that the than is necessary for auto liability in- extermination of 6 million Jews and 7 mil- U.S. Government ought to have a Peace De- surance in order to be eligible to play lion others. His reasoning, unconscionable as partment since it had a War Department (the the tort lottery, whether we want to or it was, was chillingly clear: Not much atten- War Department was changed to the Defense not. Some people see this lottery as a tion was paid to that genocide, surely we can up the count this time. Department in 1948, the year after Randolph way to hit the jackpot. They exagger- Nearly 60 years later, the average Amer- left the House). It took him from 1943 to ate their real damages in order to sue ican knows little of the Armenian Genocide. 1984Ð41 yearsÐbut the last legislative initia- for huge noneconomic damage awards. But that blood-soaked page of history is tive he authored and guided to enactment was This fraud and abuse, as well as the ex- seared indelibly into the memories of those the creation of the U.S. Institute for Peace, a cessive lawsuits, have helped drive up who survived. Those who saw their own still vital, thriving institution devoted to the the cost of auto insurance and have led mothers doused with kerosene and set on waging of peace, not war. to the undercompensation of seriously fire. Those who saw their brothers beheaded. Those who saw their families, one by one, Speaking of the U.S. Institute of Peace, the injured victims. Auto Choice addresses these prob- drop starved and exhausted to the burning Senate's consideration of the legislation in desert sands. Those who saw a river run red 1984 was not an easy road. Some of the more lems by giving American drivers a with blood. Those who, by whatever twist of conservative Members accused him of creat- choice in the kind of insurance they fate or fortune, escaped with their lives. ing an institution that would attract com- can buy. Under Auto Choice they can But those survivors’ numbers are fast munists and become a possible security risk. stay in the tort system or they can opt dwindling. Children who witnessed the Arme- And one Member went so far as to call Sen- to collect their actual losses from their nian Genocide of 1915 are now 90 or so. And ator Randolph the ``Jane Fonda'' of the Sen- own insurance company and forego as the corps of survivors is reduced, so too is suits for economic damages. In ex- the chance that the story will be docu- ate. Randolph did not respond to the charges, mented, recorded and passed on—and heeded. of course, for that was not his way. But he did change, they will see lower premiums ‘‘Those who cannot remember the past are try to get President Reagan to support his and better compensation. condemned to repeat it.’’ George Peace Institute bill. Americans should be free to buy the Santayana’s prophecy, inscribed in the atri- One day, when the Labor and Public Wel- auto insurance policy that best fits um of the Simon Wiesenthal Center in Los fare Committee in the Senate was about to their needs. Auto Choice gives them Angeles, is darkly telling on the 83rd anni- vote on whether to waive the budget act so this freedom. versary of the genocide, which began April that the Randolph Peace Institute bill could f 24, 1915, and before its end claimed the lives of up to 2 million Armenians. come to the floor for a vote, President Reagan THE ARMENIAN JOURNEY TO A goodly number of the diaspora settled in called Senator Randolph. The Senator gently WORCESTER Worcester. The Armenians equated the city but firmly said to the Committee Clerk: Please with America; they would say, ‘‘Worcester is tell the President I am busy here. I will have The SPEAKER pro tempore. Under America.’’ A strong and insular Armenian to call him back.'' In about 15 minutes the the Speaker’s announced policy of Jan- community sprang up in the Laurel Hill Committee had voted favorably on the budget uary 21, 1997, the gentleman from Mas- neighborhood, which reminded the emigres waiver Senator Randolph needed, and he then sachusetts (Mr. MCGOVERN) is recog- of the sun-splashed hills and valleys of their turned to the Clerk and said: Please get the nized during morning hour debates for beloved homeland. That neighborhood was 1 minute. known as ‘‘Little Armenia’’; after housing President for me, I can talk with him now. To became scarce there the population spilled which the Clerk replied: The White House is Mr. MCGOVERN. Mr. Speaker, on Sunday I had the privilege to welcome out onto nearby streets—Chandler, Bancroft, still on the line, Senator, waiting for you to fin- Pleasant, May, Irving—to become the colony ish. to Worcester, Massachusetts, His Holi- ‘‘Big Armenia.’’ It was a joyful day for the Randolph still did not get the President to ness Karekin I, Supreme Patriarch and God-fearing tempest-tossed when the Laurel endorse his bill, but he spoke with him about Catholicos of all Armenians. Street Church opened its doors for worship why he should do so. Also present were Worcester Mayor and community gatherings. As I conclude, Mr. Speaker, I quote Raymond Mariano; Massachusetts Gov- The survivors live each day with their ernor Paul Celluci; Archbishop Khajag memories. Their ears echo even now with the from Senator Randolph’s maiden sound of an ax splitting a door, bullets whis- speech on the House floor in 1933, when Barsamian, Primate of the Diocese of the Armenian Church of America; Rev- tling through the air, a baby crying over its he said, mother’s body. Their unrelenting mind’s eye erent Father Aved Terzian, Pastor of Volumes have been written about kings flashes back and then fast-forwards—like and emperors; historians have told of the ex- the Armenian Church of our Savior; jump cuts in a macabre film noir—to and ploits of a thousand heroes of battle; biog- and many other ecumenical and gov- from images that can never be forgotten. raphers have packed into colorful words the ernmental officials. For some eyewitnesses, the memories run life and death of our statesmen; while paint- Worcester is a fitting site to welcome clear and pure as a mountain stream. For ers have filled galleries with the likenesses his Holiness on his Pontifical visit to others, the waters have muddied; images of our living great. celebrate the centennial of the Arme- have begun to dim and blur and overlap until Some day, some enterprising young nian church in the United States. In it’s hard to separate what happened eight 1891, the Armenian Church of our Sav- decades ago from yesterday’s daydream or scholar will write volumes about Jen- last week’s nightmare. One of our chron- nings Randolph, and historians will tell ior on Salisbury Street in Worcester iclers, Dr. George Ogden, is very careful to of his exploits, and biographers will was the first Armenian church founded say that he can’t be quite sure that all he re- pack many colorful words about the in the United States. members today happened exactly the way he life of this mighty statesman from Today, over 1,400 Armenian Ameri- thinks it did. It was a lifetime ago, after all, West Virginia, Jennings Randolph. cans reside in the Third Congressional and he was just a little boy. But how can he f District of Massachusetts. The history forget being dragged to a police station and of their journeys to America is a proud having his hands flayed until they bled be- INTRODUCTION OF AUTO CHOICE and important part of our community cause he hummed a patriotic song? REFORM ACT In the book Black Dog of Fate, a cousin of heritage. author Peter Balakian gives this acount of The SPEAKER pro tempore. Under These stories were recently high- what she saw along the Euphrates. ‘‘We were the Speaker’s announced policy of Jan- lighted in a published story in the delirious from hunger and thirst. We picked uary 21, 1997, the gentleman from Worcester Magazine entitled, ‘‘The Ar- seed out of the camel dung and cleaned them H3370 CONGRESSIONAL RECORD — HOUSE May 19, 1998 off the best we could and put them on the rette case from his coat pocket and handed it turn. We came to Erzeroum. We stayed in rocks to dry them out in the sun before we to her. ‘‘Keep this for me until my return,’’ the barracks. There was no food, nothing. ate them. . . . Whenever we passed a euca- he said in a soft voice. His cheeks were wet The Red Cross came the next day and opened lyptus tree I gathered some leaves so that at with tears. We were left alone. a cafeteria. They would give us just a cup of night I could suck on them to get water in My mother had gone to Chimishgazak [a tea and one piece of sommi, bread. my mouth. ... For miles and miles you saw city in Armenia, now part of Turkey]. In In 1987, the Turkish government claimed nothing but corpses, and the brown water 1914, my father had befriended a gendarme that the bones and skeletons of more than sloshing up on the banks. I found corpses who told him, ‘‘This time it’s going to be ter- 10,000 bodies found in Erzeroum belonged to washed up, half deteriorated, headless, limb- rible, not like before. You come over my Turkish citizens killed by Armenians. They less, body parts floating. Hundreds of rotting house. I’ll save all your children.’’ My father built a monument over the bones and said we bodies were piled in heaps and the black didn’t want to leave so the gendarme said, killed them, that the Armenians killed the terns were feeding on them. Many women ‘‘Then separate the children.’’ My mother Turkish people. But they lied. If the geno- and girls threw themselves in the river rath- took my brothers to Chimishgazak and they cide didn’t happen, where are all our rel- er than be abducted or raped. At several went to school there. When the war broke atives? What happened to 2 million Arme- spots there were girls who had tied their out, my father said, ‘‘We must bring the chil- nians? they didn’t just disappear. hands together and drowned dren together. If anything happens, we’ll all One day all the men and women were themselves . . . their blue bodies were still die together.’’ So my mother went to bring called together and told they would be sepa- tied to each other’s. Their tongues were the boys back to Ashodavan. rated because the Turkish soldiers were com- black, half-eaten, and their hair was muddy After my father was taken, we were all ing. So the older people were separated on and dry like old grass. There were dead ba- alone and scared but we thought we should one side and the younger ones on the other. bies too . . . when Dikran, who was delirious go outside. We knew they would find us any- There were two different roads we were sup- now, began to pick the bodies out of the way. People were gathered in front of our posed to take. There was fighting in back of water, the gendarmes whipped him and told house. They were all crying and the gen- us. We reached Baku. We stayed there three him to put them back. Later the geese and darmes were hitting them. They used cloths days. Again the Turkish soldiers came. Then the wildcats came down from the valley to [in people’s mouths] to keep them from we went on to Stavropol. We met my moth- eat them.’’ yelling. The weather was cool and damp. Ev- er, who was already there. Turkish officials denied then—and con- eryone was crying for their father and moth- We stayed there in Russia for three years. tinue to deny—that such gory tableaux were er. The Turkish soldiers were very mean. We were comfortable. Then the revolution any more than the usual unfortunate They wanted to keep the people quiet so started. It was terrible, worse than the first sidelights of war, certainly not evidence of they were hitting . . . hitting them hard. one. When we tried to leave, a crowd of men any premeditated plot to kill off the Arme- The men had been tied up and taken to the and women were at the railroad station. It nians. At a genocide commemoration at Euphrates River. They lined the men up by was full of people. Everyone was pushing, which Balakian, a poet, spoke, Turkish peo- the river, with my father in front. They were pushing. I couldn’t find my mother. I was ple passed around pamphlets. One, published on their knees with their hands bound be- crying for her. Everyone was gone, and I was by the Assembly of Turkish American Asso- hind them. They told my father, ‘‘If you re- screaming for my mother. This old man ciations, attempted to debunk Armenians’ nounce your Christian faith, we will spare came and said, ‘‘Why are you crying?’’ He claims that they had suffered atrocities in your life.’’ But my father said, ‘‘I will die for said, ‘‘Don’t cry, they’ll wait for you at the the Ottoman Empire. my faith.’’ So they killed him. Then they second station.’’ Then he put me on the ‘‘Carefully coached by their Armenian na- went down the row asking all the men the wagon, the train, and then my mother was tionalist interviewers,’’ it said, ‘‘these aged same thing. When they said ‘‘No,’’ they there. From there we went to Constantinople Armenians relate tales of horror which sup- killed them. and from Constantinople to America. Suddenly, people started to yell and posedly took place some 66 years ago in such DR. GEORGE OGDEN scream. They saw clothes coming down the detail as to astonish the imagination. Far Dr. George Ogden was born June 5, 1911, in Ar- more Turks then Armenians died in the same river—the river was all bloody. My sister-in- law Anna had three young children. When menia and is 87. He immigrated to the United war . . . consequently one cannot conclude States in 1920, settling in Kenosha, Wis., and that the Armenians suffered any more ter- she saw the priestly robes of my father in the river, she knew he had been killed. She was earned a Ph.D. in surgical chiropody from ribly or that the Ottoman government at- Northwestern Institute of Foot Surgery. He relo- tempted to exterminate them. There was no crazed with grief. She jumped into the cur- rent with her sons. All four drowned. The cated to Worcester, where he practiced for many genocide committed against the Armenians years. He and his wife Mary, who was a WAC in the Ottoman Empire before or during men’s bodies were left on the bank, pur- posely, to rot and be picked over by birds during World War II, have been married since World War I. No genocide was planned or or- 1941. dered by the Ottoman government and none and animals. It was a terrible massacre. In order to hide was carried out.’’ Now we waited for our destiny. What would But Judith Herman, in Trauma and Recov- happen to us? Toward morning, the Turkish it, the Turkish soldiers sent the Armenians ery, points out, ‘‘After every atrocity one soldiers came and took us. They wanted us to the desert. They threw them in the river. can expect to hear the same predictable to cross the river. The man who had be- But they couldn’t hide it. They would pick apologies: It never happened; the victim lies; friended my father, the same soldier who you at random from every family in the the victim exaggerates; the victim brought warned us about the massacres, came over country where there were mostly Armenians. it about herself; and in very case it is time and said, ‘‘I want to take the whole family to They would take the Armenians out and to forget the past and move on. The more my house. I’ll keep you. Or you probably wouldn’t tell them what it was all about. powerful the perpetrator, the greater is his won’t come out alive.’’ So we went with him. They colored it as if nothing serious was prerogative to name and define reality, and In the meantime, my mother was out look- going to happen until they collected them all the more completely his arguments prevail.’’ ing for us in the Dersim mountains. She had together. And then! Some of them they The people whose stories are told here have gone to Chimishgazak to get the other chil- threw out to the desert, some they threw in done their best to move on. But they will dren but they weren’t there, so she set out to the river. Any way it was convenient for never forget. find the rest of us. She met a lady who told them to kill the Armenians. her, ‘‘I saw your children. I know where they After the genocide, people sang the song of MARION DER KAZARIAN are. I’ll get them to you.’’ The lady told my the misery they went through. It describes Marion Der Kazarian was born in 1909, and is sister, who had gone to fetch water, ‘‘Come the Euphrates river flowing with blood, how 89. She witnessed the death of her father, the here next day, and I’ll bring your mother.’’ awful the Euphrates river looked, flowing Rev. Father Haroutune Der Harootunian, at the The next morning my sister told me, early, with blood instead of water. hands of Ottoman Empire soldiers in Armenia ‘‘We’re going out to fetch water.’’ So we I remember I was given a licking in one of when she was 6 years old. She immigrated to went. These two ladies came. We could not the police stations because I hummed the America in 1921. Graduating from North High recognize the ladies. They were all bundled song I was singing as I was selling pencils. School in 1930, she opened Marion’s Beauty up so they wouldn’t be recognized. The commissar had a whip and a sword on Shop, where she worked until she married We started walking. Halfway, we met my the wall and he said, ‘‘Tell your story.’’ I Garabed Der Kazarian and they had children. brother. He was looking for my mother too. told him where I heard the song and he took She has written a book about her experience, We walked all day and came to a cottage in the whip from the wall and hit me in the ‘‘Sacrifice and Redemption.’’ Haghtouk where everyone was staying. I hand. Oh, I was in such pain. It took weeks I was 6 years old when the massacres start- found my sister there, my youngest brother. to heal the wounds. I was only 5 or 6 years ed. My father was reading the Bible to us. It They were all there. When the lady from the old. He said, ‘‘Next time you say anything was night. All of a sudden, the door broke well took off her disguise, Rose and I said, against the government, we’re going to cut and six gendarmes came in and dragged my ‘‘Mother, mother!’’ We all cried. your hand off.’’ And that’s all I remember as father out—like a criminal. My father, who We stayed there that winter. It was a very a child. There are other things . . . but it was the priest of the village. My youngest bad winter. In the summer we heard that the was so long ago and I was very young. It’s sister Rose ran after them, begging, ‘‘Daddy, Russian Armenians were coming to save us. like a dream. Daddy, don’t go! Please don’t take my daddy There were about 10,000 Armenians in the My mother used to lose her babies and she away.’’ Father stopped and removed a ciga- Kurdish mountains. We had to wait for our blamed it on the condition of the country, May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3371 what was happening, how terrible it was how I came here in 1927. We landed in Provi- ons to other countries and using the the Turks persecuted the Armenians. She dence. A friend of my father who was like a hard currency to acquire Western tech- had so much milk after losing the babies brother to him, they had an apartment al- nology. that she used to feed other children. ready, a four-room apartment. We had been Newsweek goes on to point out that Because of my experiences as a 5-year-old living six of us in one room in Armenia, in in Turkey it has been my ambition to take Van. I couldn’t believe it. Four rooms?!—I the latest scandal, in their May 25 children at kindergarten age and teach them never saw that in my life. issue entitled ‘‘A Strange Brew,’’ is that human beings ought to be cherished and I have to ask: All the world knows this also very revealing. It appears on July raised in the right way: to be proud of their [genocide] happened. Why is the American 19, 1996, Colonel Liu, the daughter of heritage, believe in the sanctity of children government not taking it seriously? Why? General Liu, arrived at the Los Angeles and teach them peace—instead of when they But the only enjoyment and pleasure I get home of financier Eli Broad, shook the get to high school creating their own herit- out of my life is in living in the United President’s hand, had her picture taken age because they think they’re ‘‘it,’’ you States. There is no other country in the with him. Ms. Liu, accompanied by know! And when they get to be 20, 21, they world would ever be happier than here. A lot want to make all the money in the world. of Americans don’t appreciate this life. It’s a fund-raiser Johnny Chung, is known to Proudness doesn’t come from money. It heavenly country. It’s heaven on earth. have attended a military institute in China used for counterintelligence comes in taking care of the young. The kin- f dergarten program should be revamped so by training. the time children graduate kindergarten CHINA CONNECTIONS What Liu did a week after meeting they are already good citizens of America— the President is even more interesting. The SPEAKER pro tempore. Under citizens of peace. She signed papers incorporating a com- the Speaker’s announced policy of Jan- JOHN KASPARIAN pany in California called Marswell In- uary 21, 1997, the gentleman from Flor- John Kasparian was born in Van, Turkish Ar- stitute. She and Chung were the only ida (Mr. STEARNS) is recognized during menia, in 1907, and is 91. He immigrated to the listed directors. U.S. intelligence morning hour debates for 5 minutes. United States in 1927. He married in 1932; his sources say Marswell is an affiliate of a wife Virginia died recently. For 55 years, Mr. STEARNS. Mr. Speaker, over the similarly named firm in Hong Kong, Kasparian owned and operated a shoe-repair weekend a lot of people have been call- which shares ownership with yet an- shop in Worcester. He saw his 5-year-old brother ing for hearings on the emerging China other company they describe as a die of starvation in Armenia. scandal. I come to the well this after- ‘‘front’’ for the ‘‘general political de- I lived in Van. I was 7 to 8 years old when noon to rise in support of the New York partment’’ of the PLA. I noticed the fighting—24 hours steady, for Times editorial on Sunday entitled, Mr. Speaker, what were China and three months. The Armenians didn’t have ‘‘The New China Connection’’, that any army but everyone got together to fight the Chinese military leaders after? calls for the appointment of a special because the Turks were trying to get our There is some evidence that what they prosecutor. I thought my colleagues country at any cost. They were killing us were after was a change in U.S. sat- should hear what the Times wrote: right and left. But being killed was happier ellite export policy that made it easier than having your arm or leg cut off and suf- All the disclosures about Johnny Chung, for China to use their missiles to fering for God knows how long. If you say other contributors and their links to China anything against them, they cut your neck. make it clearer than ever that the Attorney launch American satellites, which also It was nothing to them to kill humans left General Reno needs to transfer the Justice allowed China to further improve their and right. It’s the God’s truth. Department’s investigation to an independ- missile capabilities. This same missile My father was trying to protect our house ent counsel. The White House was intensely technology can be used for interconti- and got shot in his leg. They bandaged it up involved in fund-raising at the highest lev- nental ballistic missiles, which China and he was still fighting, fighting. Finally els, and only an inquiry led by someone now has fixed nuclear targets on. one of our close friends came and said, other than a political appointee of the Presi- So, Mr. Speaker, I come to the floor ‘‘Dick, you better get out of the house and dent will satisfy the public. run for your life. They’re going to kill your this afternoon to echo the comments family, without any question.’’ Mr. Speaker, this is a major conces- from the Sunday editorial from The So we got out, ran out with just what we sion by The New York Times, and I New York Times. It is time for Attor- had on us. No food, nothing. For four or five thought I would call it to my col- ney General Reno to transfer the de- days, believe me, eating grass. We lived on leagues’ attention. These calls for an partment’s investigation out of their grass. And thirsty! You couldn’t get any independent prosecutor come on the department into an independent coun- water until the rain came. We had to drink heels of groundbreaking and explosive sel, and I ask her to do it promptly. the dirty water that animals were going reporting by the Times’ investigative f through. We traveled 11 days to reach journalist, Jeff Gerth. Yerevan. Left and right, oh my God, people TRIBUTE TO SENATOR JENNINGS were dying. b 1045 RANDOLPH Of course, in Armenia they were just as poor as we were in those days. We had to go Mr. Gerth reported on Friday, May The SPEAKER pro tempore. Under in back of restaurants and houses and go 15, that Johnny Chung has admitted the Speaker’s announced policy of Jan- through garbage, we were so hungry. Who that a large portion of the money he uary 21, 1997, the gentleman from West would think to take a bone and bite to try to raised for the Democrats originated Virginia (Mr. WISE) is recognized dur- get something from it? We were six of us, with the People’s Liberation Army, the ing morning hour debates for 5 min- two sisters, my brother, my mother and my PLA, of China. Mr. Speaker, this is a utes. father and myself. On the way we lost my brother. In Armenia—we got there at night, communist military party. Mr. Chung Mr. WISE. Mr. Speaker, today in it was cold weather—we stay outside, noth- has identified the conduit of the illegal Salem, West Virginia, in a quiet fu- ing on us, until the sun comes up. Someone campaign funds as a Chinese aerospace neral service, former United States told us all the people from Van were in a executive and Chinese Lieutenant Senator Jennings Randolph comes central park so we go over there and I see Colonel Liu Chaoing, who just happens home to his final rest, to where he my brother who was lost, 5 years old. He was to be the daughter of General Liu grew up and lived. And indeed perhaps delirious. He didn’t know what was going on. Huaquing, who just happened to be at it is a fitting memorial to Senator He was hungry, thirsty. After three of four that time China’s most senior and top- Randolph that this week the Congress days of suffering, he died of starvation. I have to try to make some money for the ranked military commander in the of the United States is working on an- family. My mother and father had no job yet PLA. other highway bill for another six so I go around selling water for money. So Mr. Speaker, General Liu was also a years, because Senator Randolph, of help me, 2 cents, anything, just to get us by. member of the top leadership of Chi- course, was Chair of the Senate Public Then my mother started to make cigarettes, na’s Communist Party as he served as Works Committee. In 1937, as a Member wrapping cigarettes. She hung a box on my a member of the Standing Committee, of this body, the House of Representa- neck and I said, ‘‘What the heck is this?’’ the very top circle of political leader- tives, he held hearings on creating a She said, ‘‘People smoke—you go out, you ship in China. General Liu was also sell cigarettes.’’ That’s how I lived until my national highway system 20 years father got a job for the American consulate vice-chairman of the powerful Central ahead of the interstate highway sys- as an Armenian interpreter. From then on, I Military Commission and was in charge tem. was relieved! (laughs). Hey, at that time I of China’s drive to modernize the Peo- With Senator Randolph’s death, an was 9 years old. ple’s Liberation Army by selling weap- era has truly passed. He was the last H3372 CONGRESSIONAL RECORD — HOUSE May 19, 1998 surviving Member of Congress of the ted by the communist Chinese, know- The President should cancel his trip to original New Deal Congress that came ing that the people of the United China until those questions have been in in 1933. And every West Virginian States were not at risk. Now, after 5 answered, and there should be a mora- who heard him speak treasures the years, we find almost miraculously torium on all presidential actions con- memory of hearing him recount being that the Chinese have developed the ca- cerning waivers and licenses and the called to the White House in the first pability of hitting the United States shipping of technology to communist 100 days with the banks closing, busi- with nuclear weapons. China until we get to the bottom of nesses closing, pensions being dis- The outrage that I talked about, as I this. solved. suggested, comes from the fact that we Every man, woman, and child in the I can still hear Senator Randolph’s are now learning that it was American United States now is in jeopardy of nu- tones as he talked about how Franklin corporations, some moguls from the clear incineration by the communist Roosevelt rallied the country. And of aerospace industry, who decided to Chinese if we ever do confront them in course, Senator Randolph was there for take American technology and improve their wrongdoing, because of tech- the creation of Social Security, for the those Chinese rockets. Then we find nology that has been transferred to WPA, for economic recovery, and to out that this administration, inside the them with the help of this President create many of the institutions that we administration, the watchdogs that no- and with the profit of American compa- take for granted today. Yes, he was a ticed that this illegal act and immoral nies making profit off technology de- builder, a builder of highways and in- act was taking place, that when the veloped by the taxpayers for the pro- frastructure, a creator and preserver of watchdogs tried to create and tried to tection of our country. the Appalachian Regional Commission, establish an investigation and to pros- This is the most serious scandal that as well as creating educational oppor- ecute those people who had transferred I have heard. Maybe the American peo- tunities, too. that missile technology, that their ef- ple cannot understand what sex scan- No matter how many years Jennings fort was undercut by no one else but dal and character has to do with mak- Randolph had in his life, he always the President of the United States. ing decisions, but this is very under- fought for young people. That is why President Bill Clinton took the steps standable. Our country has been be- he was a tireless battler for the 26th that were necessary to transfer the au- trayed. We need to get to the bottom of Amendment to the Constitution, which thority of blocking some certain trans- it. in the early 1970s gave the right to vote fers of technology from the State De- f to those between the ages of 18 and 21. partment, which opposed that transfer, TRIBUTE TO SENATOR JENNINGS The last speech I ever heard Senator to the Commerce Department that was RANDOLPH Randolph give was lamenting low voter headed by Ron Brown which was inter- turnout in our country and challenging ested in facilitating transfers of tech- The SPEAKER pro tempore. Under all of us, all of us as citizens, to be able nology. The President also issued waiv- the Speaker’s announced policy of Jan- to go to the polls and exercise our most ers and licenses that undercut those uary 21, 1997, the gentleman from West precious franchise. people who were preparing the prosecu- Virginia (Mr. MOLLOHAN) is recognized Mr. Speaker, we West Virginians tion of those people in the aerospace during morning hour debates for 4 min- have much to remember in this gentle industry that transferred that tech- utes. man. When we drive along on a modern nology to the communist Chinese. Mr. MOLLOHAN. Mr. Speaker, it is four-lane road or we go to a job train- And yes, there is one other step in an honor for me to rise today with my ing class, when we make use of an Ap- this story of betrayal, and that is the good friends and colleagues, the gen- palachian Regional Commission facil- information that now is emerging that tleman from West Virginia (Mr. RA- ity, perhaps a health clinic, when we the President of the United States, HALL) and the gentleman from West turn on our spigot and we get fresh during his reelection effort, received Virginia (Mr. WISE) in tribute to a fine water, or perhaps when we retire and millions of dollars in contributions gentleman and faithful advocate of the we know that Social Security will be from those who were transferring this people of West Virginia. there, and of course for the youth, the technology, in the same time period I am speaking, of course, of Senator youth that Jennings Randolph believed that the waivers and licenses were Jennings Randolph, whose lifetime of in so much that he fought and won for being issued by the Oval Office in order distinguished service came to an end them the right to vote. to facilitate those transfers. just 11 days ago. We all mourn his pass- Mr. Speaker, a gentle man with a Bernard Swartz, the CEO of Lorel ing, and certainly we send our deepest great heart comes home to rest today, Corporation, the corporation that sympathies to his family. Our thoughts and all West Virginia gives thanks for transferred much of this technology, is are with them in these difficult days. this rich and meaningful life. the biggest contributor to the Presi- While recovering from such a loss is a f dent’s reelection campaign, over a mil- painful process, we hope they find com- lion dollars to the President’s reelec- fort in the legacy he leaves behind, for AMERICAN TECHNOLOGY tion or to the Democratic party. And it truly is a remarkable one. TRANSFERS TO CHINA then, of course, we hear about money On the day after Senator Randolph’s The SPEAKER pro tempore. Under coming from the communist Chinese death, newspapers across the State re- the Speaker’s announced policy of Jan- themselves, filtering it into the Presi- counted his inspiring story, the story uary 21, 1997, the gentleman from Cali- dent’s reelection campaign, Johnny of a young journalist who was elected fornia (Mr. ROHRABACHER) is recognized Chung just a few days ago admitting to Congress as a New Deal Democrat during morning hour debates for 5 min- that the $100,000 he tried to funnel into and would become the last member of utes. the Democratic campaign came from the storied class that served in the Mr. ROHRABACHER. Mr. Speaker, the People’s Liberation Army. first 100 days of FDR’s presidency. He outrage is sweeping the United States I would ask my colleagues to pay at- was thrust into the House during an ex- of America, and a justifiable outrage. tention to this story, because the Peo- traordinary time in our Nation’s his- The American people are finding out ple’s Liberation Army, the source of tory, a time of despair, sorrow, and suf- now that the technology that they paid those funds was not just the army fering, and he was a part of the ex- for with their tax dollars to be devel- itself, it was that part of the com- traordinary solution, the package of oped during the Cold War, that some of munist Chinese army that deals with reforms that revised our Nation, bring- that technology has been transferred missile and rocket development. A ing sustenance, opportunity, and hope to the communist Chinese in order to lieutenant colonel in the Chinese Army to millions. upgrade the capabilities of their nu- gave that money to Johnny Chung to Jennings Randolph never lost that clear weapons delivery system. funnel into the President’s campaign. passion for helping those who needed When President Clinton became Yes, there is justifiable outrage. The help the most, especially the poor and President of the United States, we had President has a lot of questions to an- disabled. The young New Deal Demo- a chance to confront any wrongdoing swer, as do these corporations, both on crat would become a mature hand in or aggression or belligerency commit- moral grounds and on legal grounds. the great society, never wavering in his May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3373 belief that government can and should tax penalty is to get divorced and to $8,000 marriage tax penalty in the 15 play an active role in solving people’s live together outside of marriage? percent tax bracket. problems, and he worked mightily to Clearly, Americans feel that the mar- We want to eliminate the marriage better his home State of West Virginia. riage tax penalty is not only unfair, it tax penalty. The Marriage Tax Elimi- Senator Randolph was a champion of is wrong. It is immoral that our Tax nation Act of 1998 accomplishes that the interstate highway system, the Ap- Code punishes society’s most basic in- goal. We believe it should be the cen- palachian Regional Commission, local stitution. The Congressional Budget terpiece of this year’s balanced budget airports, and countless infrastructure Office tells us that 21 million married plan. projects that brought the basics to our working couples pay an average of There are always competing ideas, people. That is how he thought of him- $1,400 more just because they are mar- and President Clinton has a good idea. self, once saying, ‘‘I essentially am a ried. He says our priority should be expand- West Virginia senator. I’m not what Let me give you an example of a cou- ing the current child care tax credit. you’d call a national Senator or inter- ple in the south suburbs. I represent Under the President’s child care tax national Senator.’’ the south side of Chicago and the south credit, the average family that will It is true that Jennings Randolph suburbs of Chicago and Illinois. I have qualify would see about an extra $368 in was an effective, tireless advocate of an example here of a south suburban total take-home pay a year. West Virginia. But if my colleagues couple, working man and working If we eliminate the marriage tax pen- think that he did not have an influence woman, who pay the marriage tax pen- alty for that machinist and school- on this Nation, they would be badly alty. teacher, they would see an extra $1,400 mistaken. After all, it was Jennings The gentleman is a machinist at Cat- in take-home pay. So let us think Randolph who authored the constitu- erpillar where they make the big equip- about that which is better. If we elimi- tional amendment that gave 18-year- ment, the heavy earth-moving equip- nate the marriage tax penalty, $1,400 olds the right to vote. And in so many ment. This machinist makes $30,500 a will pay for almost 3 months of child other areas, his work and support was year. Under the current Tax Code, if care at a local day care center in Jo- crucial to policies that advantaged you add in the standard deduction and liet. If we forget about eliminating the citizens from coast to coast. Through- exemption, he is taxed at the 15 per- marriage tax penalty and just do the out his service in the House and then cent rate. expanding the current child tax credit, in the Senate, he was a model of cour- Say this machinist meets a school- the President’s $358 will pay for 3 tesy, of grace and professionalism. teacher a tenured schoolteacher in the weeks worth of day care in Joliet, Illi- As the Senate historian said so well, Joliet public schools. The school- nois. So which is better, 3 weeks or 3 ‘‘Very few senatorial careers were as teacher has an identical income. She months? full as his. He always struck me,’’ the would be in the 15 percent tax rate if Clearly, elimination of the marriage historian, ‘‘as the image of a Senator’s she stays single. But if they choose to tax penalty is a better deal for working Senator, a teacher within the institu- get married, if they choose to live in couples and working married couples tion who would take young Senators holy matrimony, under our Tax Code, throughout America. beneath his wing and lecture them, this married working couple, a machin- What is the bottom line? We want to sometimes gently and sometimes not ist at Caterpillar and a schoolteacher eliminate the marriage tax penalty. It so gently, about the importance of eti- in the Joliet public schools who choose is wrong that our Tax Code punishes quette.’’ to get married, will pay the average society’s most basic institution. It is marriage tax penalty of almost $1,400. b time that we stop punishing marriage. 1100 In Washington, D.C., $1,400 is just a We think about it. This Congress in Mr. Speaker, with Jennings Randolph drop in the bucket. But in Joliet, Illi- the last 3 years has made helping fami- passing, the people of West Virginia nois, in the south suburb of Chicago, lies by raising take-home pay a real have lost a great friend and representa- $1,400 for this machinist and school- priority. We strengthened families by tive. We salute his lasting record of teacher is real money, real money for providing the adoption tax credit in achievement and honor his memory as real people: one year’s tuition at Joliet 1996 so that families who hope to pro- a passionate, dedicated public servant. Junior College, 3 months of day care at vide a loving home for a child in need f the local day care center in Joliet; and of adoption can better afford it. it is also several months’ worth of car In 1997, we provided the $500 per child WELLER-MCINTOSH II MARRIAGE payments. That is real money that tax credit which will benefit 3 million TAX COMPROMISE Uncle Sam is taking away from this children in Illinois, an extra $11⁄2 bil- The SPEAKER pro tempore (Mr. machinist and this schoolteacher just lion in higher take-home pay that will PETRI). Under the Speaker’s announced because they are married. stay in Illinois rather than coming to policy of January 21, 1997, the gen- We have a solution. We believe that Washington. tleman from Illinois (Mr. WELLER) is elimination of the marriage tax pen- Let us eliminate the marriage tax recognized during morning hour de- alty should be our number one priority penalty. $1,400 is real money for real bates for 5 minutes. as we address the tax provisions in this people. Let us make elimination of the Mr. WELLER. Mr. Speaker, questions year’s balanced budget which will be, marriage tax penalty the centerpiece are often asked in this body, and I hopefully, the second balanced budget of this year’s budget agreement. think one of the most important ques- in over a generation. f tions asked is: Why is enactment of the The Marriage Tax Elimination Act, Marriage Tax Elimination Act so im- which is now called the compromise as OLDER AMERICANS ACT portant for working families in Amer- well as Weller-McIntosh II, it is pretty The SPEAKER pro tempore. Under ica? I think this series of questions simple. What it does is it doubles the the Speaker’s announced policy of Jan- best illustrates why. standard deduction for those who do uary 21, 1997, the gentlewoman from Do Americans feel that it is fair that not itemize from $4,150 for a single per- California (Ms. SANCHEZ) is recognized our tax code imposes a higher tax pen- son, $8,300 for a married couple, simply during morning hour debates for 2 min- alty on marriage? Do Americans feel doubling it, helping eliminate the mar- utes. that it is fair that 21 million married riage penalty. Ms. SANCHEZ. Mr. Speaker, May is working couples on average pay $1,400 Also, for the five tax brackets, we Older Americans Month, which gives us more a year just because they are mar- double the income threshold for cou- the special opportunity to honor our ried, $1,400 more than an identical cou- ples. Currently, you are in the 15 per- Nation’s seniors. The theme of this pleS that lives together outside of mar- cent tax bracket if you make $24,650. month is living longer and growing riage? We double that to $49,300, eliminating stronger in America; and we are salut- Do Americans feel that it is right the marriage penalty. Because, cur- ing the growing numbers of Americans that our Tax Code actually provides an rently, even if you are making $24,650, who enjoy increased longevity and con- incentive to get divorced because the our current Tax Code, you can only tinue to contribute to their families, only way today to avoid the marriage make $42,000. So there is about an their communities and to this country. H3374 CONGRESSIONAL RECORD — HOUSE May 19, 1998 However, we cannot adequately honor There is another simple step that we OPPOSE ANY EFFORT TO REPEAL them unless we have first ensured them can take to improve the quality of life, THE PRESSLER AMENDMENT a safe and a healthy life-style. and that is using more effectively the The SPEAKER pro tempore. Under Americans age 65 and older are the $10 billion investment that we have the Speaker’s announced policy of Jan- fastest-growing segment of our popu- made in the Washington Area Metro uary 21, 1997, the gentleman from New lation. In just 2 years, there will be System. It, too, is a way to save Jersey (Mr. PALLONE) is recognized over 35 million of them in this country. money, protect the environment, and during morning hour debates for 5 min- Unfortunately, some of the most criti- improve the quality of life. It has been utes. cal programs that provide seniors with part of the Federal policy for years to Mr. PALLONE. Mr. Speaker, as you food, health care, and living assistance promote the use of transit as an alter- know, last week, the Republic of India are now being threatened. native to the single occupant vehicle. conducted five underground nuclear The Older Americans Act has not tests. The Clinton administration im- been reauthorized since 1995. The pro- In my community of Portland, Or- posed sanctions after the second set of grams are running out of funding. As a egon, we promote that alternative by tests and I believe was correct in doing result, seniors throughout this country using transit passes as a way to make so. These sanctions are extremely se- are suffering. it easier for employees while we save I have heard from many back home money. There are over 60 individual vere and may affect as much as $20 bil- about how these cuts are affecting companies that provide transit passes lion in funds to India. their lives. I have received many let- to over 45,000 people in the community. Mr. Speaker, I am also concerned ters from seniors telling me their sto- now that U.S. policy proceed toward an Just this last month, the largest pri- increased dialogue with India. We have ries of having to be on a waiting list vate sector employer in Oregon, Intel, for 3 years just to get something like made tremendous strides in improving developed a program that is providing relations between our two countries in Meals on Wheels. free passes for all 11,000 of its employ- The majority party in this House recent years, and we must not go back ees because it makes sense for the com- to a Cold War strategy. must promise, and there is no better pany and for the community. time than this month of May to get Unfortunately, there are Members of working on the reauthorization of the Here in Washington, D.C., we have this body who feel that there is a need Older Americans Act. We must com- over 1,000 employers in the private sec- to impose further trade and economic plete this work before the 105th Con- tor, over 100 Federal agencies that to- sanctions. There may be an attempt to gress adjourns. If not, then essential gether provide transit checks for over attach an amendment to the House de- programs like Meals on Wheels, nutri- 50,000 commuters in the metropolitan fense authorization bill that would re- tional services, and elder abuse preven- area. Even the United States Senate move Most Favored Nation’s status to tion programs are not going to reach for the last 6 years has provided transit India on textile and apparel products. some of our neediest seniors. passes for its employees who do not get b 1115 Throughout the decades of its exist- free parking. Mr. Speaker, imposing further eco- ence, the Older Americans Act has I would suggest that it is time for us served our Nation’s aging population nomic sanctions on India is meritless in the House of Representatives to take and counterproductive to current rela- well. These programs are important a step back and look at our policies to not only because they help seniors tions. It would only hurt the workers get in step with what we suggest the in India who make the textiles. This maintain a healthy life-style, but they rest of America could do. If only 5 per- also bolster seniors’ independence and amendment to the defense authoriza- cent of our employees used the transit tion bill would derail U.S.-India rela- their sense of dignity. If we are to program, one-half the percentage in truly honor our Nation’s seniors this tions at times when dialogue between the United States Senate, we could the two democracies is paramount. month, then we must reauthorize the eliminate this parking on the parking Older Americans Act. I was pleased to read that, at the G– lot immediately adjacent to the Wash- 8 summit in England, President Clin- f ington Capitol South Metro Station. ton stated that, although sanctions COSPONSOR HOUSE RESOLUTION We could obviously save the upkeep, were necessary, he did not want to iso- 37, MASS TRANSIT PASSES FOR the 24-hour-a-day staffing that is there late India. HOUSE EMPLOYEES to protect the cars, and we could con- Mr. Speaker, India cited the threat The SPEAKER pro tempore. Under vert that block into a higher and bet- from China and Pakistan as major rea- the Speaker’s announced policy of Jan- ter use. Certainly there are a number sons for conducting the nuclear tests. uary 21, 1997, the gentleman from Or- of opportunities for one of the most For years, Pakistan and China have co- valuable pieces of real estate in Wash- egon (Mr. BLUMENAUER) is recognized operated in nuclear and missile devel- during morning hour debates for 5 min- ington, D.C. opment. A recent Congressional Re- utes. I have introduced House Resolution search Service Center study showed Mr. BLUMENAUER. Mr. Speaker, 37; and, currently, there are over 180 of that the Chinese government had today, tens of thousands of Americans my colleagues that have cosponsored transferred missile technology and nu- are celebrating Bike to Work Day by it. I would suggest that it is time for clear equipment and materials to Iran using bicycles to get to their place of the remaining people in the House to and Pakistan numerous times. All of employment. They are reinforcing the take a step back, think about what is these transfers were clearly in viola- notion that using a bicycle can be fun; good for the environment, think about tion of international and U.S. law, but it can provide a healthy and conven- what is fair for our employees, to not they were not met with economic sanc- ient alternative to the private auto- simply provide up to $2,000 a year of tions by the administration. mobile. It will illustrate the impact free parking but provide an alternative Mr. Speaker, China is a nuclear- that small steps can take to improve for our employees who decide to do the armed dictatorship that had a border our quality of life. right thing, protecting the environ- war in 1964 against India. Much to In- At a time when we in Congress are ment by using mass transit. dia’s concern, China continues to main- worried about the health of the Dis- tain a nuclear presence in occupied trict of Columbia, when we are con- It is good for the environment. It is Tibet and a large military force in cerned about the funding of the Wash- good for our employees. It is a simple Burma. It is unfortunate that the ad- ington Area Mass Transit Authority, step to use our land more thoughtfully. ministration and Members of this body when we are looking at almost a billion Most important, it gets the House of continue to overlook these facts. dollars just to replace the Wilson Representatives in step with the Sen- India’s nuclear tests must be under- Bridge here in the metropolitan area, ate, with the rest of the Federal bu- stood in the context of the huge threat and when, in Washington, D.C., consist- reaucracy, and with what we are tell- posed by China. The United States ently, the congestion is ranked in the ing the private sector to do. should be taking the military and nu- top five in the country, bicycles make I strongly urge my colleagues to join clear threat from China’s dictatorship sense. me in sponsoring House Resolution 37. more seriously. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3375 Mr. Speaker, It is important that the Mr. Speaker, this madness and insane RECESS United States continue dialogue with rush towards nuclear proliferation is The SPEAKER pro tempore. Pursu- the Indian government at this time. We inevitable as long as we continue to ant to clause 12 of rule I, the Chair de- must urge the Indian government to perpetuate a 24-year make-believe situ- clares the House in recess until 12 sign the Comprehensive Test Ban Trea- ation that India could not explode a noon. ty immediately, without conditions. nuclear bomb, and 28 years of a highly Accordingly (at 11 o’clock and 21 By signing the treaty, India could as- discriminatory and one-sided world of minutes a.m.), the House stood in re- sume leadership on international nego- nuclear haves and have-nots. If we are cess until 12 noon. tiations on capping the accumulation serious about stopping nuclear pro- of weapons-grade fissile terms. liferation, the United States and the f It is also important that we not en- nuclear powers must take the first step b 1200 courage an arms buildup in south Asia. and commit to a concrete timetable for I would urge Members of this body to nuclear disarmament and a verifica- AFTER RECESS oppose any effort to repeal the Pressler tion process. amendment. Repeal of the Pressler One of America’s finest military offi- The recess having expired, the House amendment would allow for the deliv- cers, former Commander of the U.S. was called to order by the Speaker pro ery of 26 F–16 jet fighters to Pakistan. Strategic Command General Lee But- tempore (Mrs. EMERSON) at 12 noon. U.S. national security adviser Sandy ler, said, f Berger confirmed that the delivery of Proliferation cannot be contained in a fighter jets was one of the proposals world where a handful of self-appointed na- PRAYER made to the Pakistan government re- tions both arrogate to themselves the privi- cently to prevent them from conduct- The Chaplain, Reverend James David lege of owning nuclear weapons and extol the Ford, D.D., offered the following pray- ing their own nuclear tests, and this is ultimate security assurance they assert such er: very bad policy. The repeal of the weapons convey. A world free of the threat of Pressler amendment and the delivery nuclear weapons is necessarily a world de- O gracious God, from whom we have of the F–16 fighters would only increase void of nuclear weapons. The United States come and to whom we belong, we are tension within the region. The U.S. should make unequivocal its commitment to grateful for all Your blessings, for fam- cannot help bring peace to south Asia the elimination of nuclear arsenals and take ily and friends and colleagues, for free- the lead in setting an agenda for moving dom and opportunity, for the respon- if it continues to fuel an arms race in forthrightly toward that objective. that region. sibilities we have as citizens. Lastly, Mr. Speaker, I strongly urge Mr. Speaker, at this important time We pray, O God, that we will be President Clinton to continue with his of peace, we should pay close attention steadfast custodians of the resources of plans to visit India later this year. It to General Butler’s concerns and fore- the land and use our time, talents and has been over 20 years since an Amer- sight. treasure in ways that promote the ican President has visited India. The Mr. Speaker, whether we like it or noble ideals that we hold dear. We es- President has not said he would cancel not, India is now an official member of pecially pray for those who work for the trip, but I suppose there is some the so-called ‘‘Nuclear Club.’’ But do understanding and reconciliation doubt about that. The President’s trip not blame India for this. Blame our among all peoples. May we see Your vi- would accelerate negotiations and dia- one-sided and faulty policy towards nu- sion, gracious God, of a time when our logue on nuclear nonproliferation. Fur- clear nonproliferation. communities and the world will enjoy a thermore, it would show to the Indian bounty of peace. people that the United States wishes to f And now may Your blessing, O God, maintain a long-term relationship with that is new every morning, be with us India. REAUTHORIZE THE OLDER this day and evermore. Amen. Mr. Speaker, now is the time to con- AMERICANS ACT NOW f tinue our dialogue with India and try The SPEAKER pro tempore. Under to get India involved in signing the the Speaker’s announced policy of Jan- THE JOURNAL test ban treaty and trying to promote uary 21, 1997, the gentlewoman from peace in south Asia. Let us move for- The SPEAKER pro tempore. The North Carolina (Mrs. CLAYTON) is rec- Chair has examined the Journal of the ward. Let us proceed with a dialogue. ognized during morning hour debates Let us not move backwards with our last day’s proceedings and announces for 1 minute. to the House his approval thereof. relations with India. We have come a Mrs. CLAYTON. Mr. Speaker, I have long way, and this is the time now to Pursuant to clause 1, rule I, the Jour- in my hand a sampling of hundreds of show there can be restraint on both nal stands approved. plates that I have received from senior sides. f citizens in my district when I visited f them at centers or they have mailed PLEDGE OF ALLEGIANCE NUCLEAR DISARMAMENT TO STOP them to me. The plates make a point. NUCLEAR PROLIFERATION They are really about the reauthoriza- The SPEAKER pro tempore. Will the gentleman from Nevada (Mr. GIBBONS) The SPEAKER pro tempore (Mr. tion of the Older Americans Act. This act has not been reauthorized now for come forward and lead the House in the PETRI). Under the Speaker’s announced Pledge of Allegiance. policy of January 21, 1997, the gen- more than 2 years. For 30 years, this act has provided Mr. GIBBONS led the Pledge of Alle- tleman from American Samoa (Mr. giance as follows: FALEOMAVAEGA) is recognized during the provisions for food, for health care morning hour debates for 2 minutes. and for a number of services that are I pledge allegiance to the Flag of the Mr. FALEOMAVAEGA. Mr. Speaker, very, very important to senior citizens. United States of America, and to the Repub- It allows them to have a quality of life lic for which it stands, one nation under God, India, the world’s largest democracy, indivisible, with liberty and justice for all. detonated five nuclear weapons tests in their homes, without which they last week in the name of national secu- would not have. f rity. This shocked the world and dem- So I urge our colleagues, during the onstrated in graphic fashion the per- month of May, which is Senior Citizens DISPENSING WITH CALL OF ceived unfairness and inherent weak- Month, to make sure that they con- PRIVATE CALENDAR ness of the international nuclear non- sider the reauthorization of the Older Mr. HYDE. Madam Speaker, I ask proliferation system now in place. Americans Act. unanimous consent that the call of the We can expect Pakistan to recip- We should not be feeding our senior Private Calendar be dispensed with. rocate and go nuclear, and I would not citizens on paper plates. We really The SPEAKER pro tempore. Is there be surprised to see other countries like should be feeding them on fine China, objection to the request of the gen- North Korea, Iran and Libya to resume because they have given their life for tleman from Illinois? their nuclear programs. the betterment of their communities. There was no objection. H3376 CONGRESSIONAL RECORD — HOUSE May 19, 1998 COMMUNICATION FROM THE Mr. GOSS. Madam Speaker, as Chair- Mr. TRAFICANT. Madam Speaker, CLERK OF THE HOUSE man of the House Committee on Intel- California businessman Johnny Chung The SPEAKER pro tempore laid be- ligence, I sadly report to my colleagues gave $300,000 to the Democrat National fore the House the following commu- today that today we are faced with a Committee. Chung said he got the nication from the Clerk of the House of more dangerous world. The nuclear money from a member of the Chinese Representatives: arms race is on again, and it has inten- army. sified. That is a tragedy. Surprise. This is the same guy Chung OFFICE OF THE CLERK, Washington, DC, May 19, 1998. How did it happen? We have reports who said, my donations are subway to- Hon. NEWT GINGRICH, now that the Indian government has kens for a train ride to the White The Speaker, House of Representatives, Wash- acknowledged that India’s concern House. Train ride, folks. How about a ington, DC. about Chinese capabilities and Chinese free ride? Maybe a joy ride. DEAR MR. SPEAKER: Pursuant to the per- support for Pakistan nuclear develop- Let us tell it like it is. This is not mission granted in Clause 5 of Rule III of the ment were critical factors in India’s about tokens, coffees, the Lincoln bed- Rules of the U.S. House of Representatives, I decision to proceed with testing. So room, Bill Clinton, Democrats or Re- have the honor to transmit a sealed envelope our national security has been weak- received from the White House on May 18, publicans. This is about national secu- 1998 at 3:35 p.m. and said to contain a mes- ened, our children go to sleep less safe rity, folks. And Americans did not give sage from the President whereby he notifies tonight. their lives in foreign wars to have the the Congress that he has issued a notice con- The administration has much ex- Chinese Communists buy our freedom. tinuing the national emergency with respect plaining to do about its failed policy, Beam me up. Congress must inves- to Burma. but two steps seem very obvious: first, tigate this Chinese connection. With warm regards, an appointment of an independent I yield back what national security I ROBIN H. CARLE, counsel now that there is clear and Clerk. have left. credible evidence of illegal foreign in- f f telligence participation; and, second, CONTINUATION OF EMERGENCY cancellation of President Clinton’s TRIBUTE TO FRANK SINATRA WITH RESPECT TO BURMA—MES- scheduled June visit to China, which (Mr. GIBBONS asked and was given SAGE FROM THE PRESIDENT OF would only further destabilize the re- permission to address the House for 1 THE UNITED STATES (H. DOC. gion and intensify the problem. minute and to revise and extend his re- NO. 105–253) f marks.) The SPEAKER pro tempore laid be- SPEAKER’S REMARKS WERE Mr. GIBBONS. Madam Speaker, last fore the House the following message RECKLESS Thursday, Americans lost a great en- from the President of the United tertainer. In fact, many would say that (Mr. MORAN of Virginia asked and Frank Sinatra was one of the greatest States; which was read and, without was given permission to address the entertainers of our time. Indeed, Frank objection, referred to the Committee House for 1 minute and to revise and Sinatra loved Nevada, and Nevada on International Relations and ordered extend his remarks.) to be printed: Mr. MORAN of Virginia. Madam loved Frank Sinatra. He was indeed perhaps the greatest entertainer to ap- To the Congress of the United States: Speaker, last week the Speaker of the Section 202(d) of the National Emer- House publicly characterized Secretary pear in any Nevada showroom; and, gencies Act (50 U.S.C. 1622(d)) provides of State Madeleine Albright as ‘‘an since his passing, many Americans for the automatic termination of a na- agent for the Palestinians.’’ have learned what Nevadans have tional emergency unless, prior to the I realize that there are those in this known all along: Mr. Sinatra’s heart anniversary date of its declaration, the Chamber who do not feel that the was bigger than all outdoors. President publishes in the Federal Reg- United States should live up to its Next week in Las Vegas, celebrities ister and transmits to the Congress a treaty obligations by acting as an un- from around the world will participate notice stating that the emergency is to biased mediator in the Middle East in a Frank Sinatra Las Vegas Celebrity continue in effect beyond the anniver- peace process. But to characterize the Classic golf tournament. This event sary date. In accordance with this pro- Secretary of State in this manner was will benefit Opportunity Village in Las vision, I have sent the enclosed notice unfair and irrational. Vegas, a charitable organization which to the Federal Register for publication, I understand that it would be best ex- provides vocational training and con- stating that the emergency declared plained as political posturing in an tinuing education to the mentally dis- with respect to Burma is to continue in election year, but while we may have abled. Frank Sinatra has always opened his effect beyond May 20, 1998. grown accustomed to reckless rhetoric As long as the Government of Burma when it comes to domestic politics, it heart and wallet to those in need. He continues its policies of committing is inexcusable to exploit the peace did it his way; and, for that, Americans large-scale repression of the demo- process for domestic political gain. are extremely grateful to this inter- cratic opposition in Burma, this situa- No lasting peace in the Middle East national icon. tion continues to pose an unusual and can be secured by riding political winds f extraordinary threat to the national in the United States. The people that OPERATION CASABLANCA security and foreign policy of the must determine the acceptability of (Mr. GILMAN asked and was given United States. For this reason, I have any peace settlement are those living permission to address the House for 1 determined that it is necessary to in the region. It is critical that the ad- minute and to revise and extend his re- maintain in force these emergency au- ministration remain focused on what marks.) thorities beyond May 20, 1998. might be acceptable over the long term Mr. GILMAN. Madam Speaker, today WILLIAM J. CLINTON. to Israelis—to Palestinians and in fact, I rise to compliment our Customs Serv- THE WHITE HOUSE, May 18, 1998. to all who long for a secure, lasting and ice, our DEA and our other law en- f just peace throughout the middle east. I urge the Speaker to retract and forcement officers for the successful ANNOUNCEMENT BY THE SPEAKER apologize for his remarks and to honor money laundering undercover oper- PRO TEMPORE America’s commitment to the peace ation, code named ‘‘Casablanca.’’ The SPEAKER pro tempore. The process. An extensive money laundering ring Chair will entertain 1-minute requests. f of Colombian and Mexican drug deal- f ers, who have been using dozens of CONGRESS MUST INVESTIGATE Mexican and American banks to laun- DAMAGE IS DONE CHINESE POLITICAL DONATIONS der and disguise their billions of dol- (Mr. GOSS asked and was given per- (Mr. TRAFICANT asked and was lars of ill-gotten gains, have now been mission to address the House for 1 given permission to address the House broken up. Many individuals have been minute and to revise and extend his re- for 1 minute and to revise and extend arrested, millions of assets have been marks.) his remarks.) seized, along with tons of illicit drugs. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3377 The substantial funds that this oper- is objected to under clause 4 of rule (e) AUTHORIZATION OF APPROPRIATIONS.— ation uncovered flowing from the il- XV. There is authorized to be appropriated to the licit drug trade underscores just how Such rollcall votes, if postponed, will Fund to carry out this title $750,000,000. serious the challenge is from these il- be taken after debate has concluded on SEC. 102. COMPASSIONATE PAYMENT RELATING TO INDIVIDUALS WITH BLOOD-CLOT- licit drug dealers and the corruption all motions to suspend the rules, but TING DISORDERS AND HIV. they foster in the banking system and not before 5 p.m. today. (a) IN GENERAL.—If the conditions de- in democratic institutions throughout f scribed in subsection (b) are met and if there the world. are sufficient amounts in the Fund to make RICKY RAY HEMOPHILIA RELIEF The magnitude of the disclosure and each payment, the Secretary shall make a FUND ACT OF 1998 expanse of the monies and influence single payment of $100,000 from the Fund to from illicit drugs shows our need for a Mr. HYDE. Madam Speaker, I move any individual who has an HIV infection and serious and meaningful war on drugs. to suspend the rules and pass the bill who is described in one of the following para- graphs: Our drug czar, Barry McCaffrey, be- (H.R. 1023) to provide for compas- sionate payments with regard to indi- (1) The individual has any form of blood- lieves that the term ‘‘war on drugs’’ is clotting disorder, such as hemophilia, and not appropriate to apply to the prob- viduals with blood-clotting disorders, was treated with antihemophilic factor at lems of drugs in our Nation. Many of us such as hemophilia, who contracted any time during the period beginning on disagree. Our Speaker’s task force ef- human immunodeficiency virus due to July 1, 1982, and ending on December 31, 1987. forts will hopefully turn this around. contaminated blood products, and for (2) The individual — Operation ‘‘Casablanca’’ makes it other purposes, as amended. (A) is the lawful spouse of an individual de- clear that what is at stake here de- The Clerk read as follows: scribed in paragraph (1); or (B) is the former lawful spouse of an indi- H.R. 1023 serves a war footing by our Nation and vidual described in paragraph (1) and was the the international community. We need Be it enacted by the Senate and House of Rep- lawful spouse of the individual at any time to fight drugs on all fronts, including resentatives of the United States of America in after a date, within the period described in both the demand and supply side simul- Congress assembled, such subparagraph, on which the individual taneously, as well as hitting them in SECTION 1. SHORT TITLE; TABLE OF CONTENTS. was treated as described in such paragraph the pocketbooks, just as ‘‘Casablanca’’ (a) SHORT TITLE.—This Act may be cited as and through medical documentation can as- has done. the ‘‘Ricky Ray Hemophilia Relief Fund Act sert reasonable certainty of transmission of of 1998’’. HIV from individual described in paragraph f (b) TABLE OF CONTENTS.—The table of con- (1). UNLAWFUL TRANSFER OF MIS- tents of this Act is as follows: (3) The individual acquired the HIV infec- SILE TECHNOLOGIES WARRANTS Sec. 1. Short title; table of contents. tion through perinatal transmission from a IMMEDIATE INVESTIGATION TITLE I—HEMOPHILIA RELIEF FUND parent who is an individual described in paragraph (1) or (2). Sec. 101. Ricky Ray Hemophilia Relief Fund. (Mr. HAYWORTH asked and was (b) CONDITIONS.—The conditions described Sec. 102. Compassionate payment relating to in this subsection are, with respect to an in- given permission to address the House individuals with blood-clotting dividual, as follows: for 1 minute and to revise and extend disorders and HIV. (1) SUBMISSION OF MEDICAL DOCUMENTATION his remarks.) Sec. 103. Determination and payment. Mr. HAYWORTH. Madam Speaker, I, Sec. 104. Limitation on transfer of rights OF HIV INFECTION.—The individual submits to along with many of my colleagues, had and number of petitions. the Secretary written medical documenta- tion that the individual has an HIV infec- an opportunity to hear the Vice Presi- Sec. 105. Time limitation. Sec. 106. Certain claims not affected by pay- tion. dent of the United States speak on for- (2) PETITION.—A petition for the payment eign policy matters last night; and, ment. Sec. 107. Limitation on agent and attorney is filed with the Secretary by or on behalf of Madam Speaker, the Vice President fees. the individual. went into great detail of his concern Sec. 108. Definitions. (3) DETERMINATION.—The Secretary deter- mines, in accordance with section 103(b), and disdain for the transfer of missile TITLE II—TREATMENT OF CERTAIN PRI- that the petition meets the requirements of technology from the Russians to the VATE SETTLEMENT PAYMENTS IN HE- this title. Iranians. But, Madam Speaker, not one MOPHILIA-CLOTTING-FACTOR SUIT word was uttered by our Vice President UNDER THE MEDICAID AND SSI PRO- SEC. 103. DETERMINATION AND PAYMENT. about concerns of the transfer of our GRAMS (a) ESTABLISHMENT OF FILING PROCE- DURES.—The Secretary of Health and Human Sec. 201. Treatment of certain private set- own missile technology to the Chinese Services shall establish procedures under tlement payments in hemo- government. which individuals may submit petitions for philia-clotting-factor suit There are serious questions that payment under this title. The procedures under the Medicaid and SSI exist, Madam Speaker. Indeed, The shall include a requirement that each peti- programs. Washington Post reports this morning tion filed under this Act include written that $632,000 in donations to the Demo- TITLE I—HEMOPHILIA RELIEF FUND medical documentation that the relevant in- crat party were given by Loral Missile SEC. 101. RICKY RAY HEMOPHILIA RELIEF FUND. dividual described in section 102(a)(1) has (or Defense System CEO Bernard (a) ESTABLISHMENT.—There is established had) a blood-clotting disorder, such as hemo- philia, and was treated as described in such Schwartz, the party’s largest single in the Treasury of the United States a trust fund to be known as the ‘‘Ricky Ray Hemo- section. donor in the 1996 election. philia Relief Fund’’, which shall be adminis- (b) DETERMINATION.—For each petition Madam Speaker, this transcends the tered by the Secretary of the Treasury. filed under this title, the Secretary shall de- issue of Democrats versus Republicans. (b) INVESTMENT OF AMOUNTS IN FUND.— termine whether the petition meets the re- As Americans, this Congress needs to Amounts in the Fund shall be invested in ac- quirements of this title. investigate the unlawful transfer of cordance with section 9702 of title 31, United (c) PAYMENT.— missile technologies from this govern- States Code, and any interest on and pro- (1) IN GENERAL.—To the extent there are ment and from our defense capabilities ceeds from any such investment shall be sufficient amounts in the Fund to cover each payment, the Secretary shall pay, from the to the People’s Republic of China. credited to and become part of the Fund. (c) AVAILABILITY OF FUND.—Amounts in Fund, each petition that the Secretary de- Madam Speaker, this House must in- the Fund shall be available only for disburse- termines meets the requirements of this title vestigate. There is no other choice. ment by the Secretary of Health and Human in the order received. f Services under section 103. (2) PAYMENTS IN CASE OF DECEASED INDIVID- (d) TERMINATION.—The Fund shall termi- UALS.— ANNOUNCEMENT BY THE SPEAKER nate upon the expiration of the 5-year period (A) IN GENERAL.—In the case of an individ- PRO TEMPORE beginning on the date of the enactment of ual referred to in section 102(a) who is de- The SPEAKER pro tempore. Pursu- this Act. If all of the amounts in the Fund ceased at the time that payment is made ant to the provisions of clause 5 of rule have not been expended by the end of the 5- under this section on a petition filed by or 1, the Chair announces that she will year period, investments of amounts in the on behalf of the individual, the payment Fund shall be liquidated, the receipts of such shall be made as follows: postpone further proceedings today on liquidation shall be deposited in the Fund, (i) If the individual is survived by a spouse each motion to suspend the rules on and all funds remaining in the Fund shall be who is living at the time of payment, the which a recorded vote or the yeas and deposited in the miscellaneous receipts ac- payment shall be made to such surviving nays are ordered, or on which the vote count in the Treasury of the United States. spouse. H3378 CONGRESSIONAL RECORD — HOUSE May 19, 1998 (ii) If the individual is not survived by a benefits (including the Federal or State gov- (B) payments made pursuant to a release of spouse described in clause (i), the payment ernments or any entity that provides such all claims in a case— shall be made in equal shares to all children benefits under a contract). (i) that is entered into in lieu of the class of the individual who are living at the time (i) REGULATORY AUTHORITY.—The Sec- settlement referred to in subparagraph (A); of the payment. retary may issue regulations necessary to and (iii) If the individual is not survived by a carry out this title. (ii) that is signed by all affected parties in person described in clause (i) or (ii), the pay- (j) TIME OF ISSUANCE OF PROCEDURES.—The such case on or before the later of— ment shall be made in equal shares to the Secretary shall, through the promulgation of (I) December 31, 1997, or parents of the individual who are living at appropriate regulations, guidelines, or other- (II) the date that is 270 days after the date the time of payment. wise, first establish the procedures to carry on which such release is first sent to the per- (iv) If the individual is not survived by a out this title not later than 120 days after sons (or the legal representative of such per- person described in clause (i), (ii), or (iii), the the date of the enactment of this Act. sons) to whom the payment is to be made. payment shall revert back to the Fund. SEC. 104. LIMITATION ON TRANSFER OF RIGHTS (b) GOVERNMENT PAYMENTS.— AND NUMBER OF PETITIONS. (B) FILING OF PETITION BY SURVIVOR.—If an (1) IN GENERAL.—Notwithstanding any individual eligible for payment under section (a) RIGHTS NOT ASSIGNABLE OR TRANSFER- other provision of law, the payments de- ABLE.—Any right under this title shall not be 102(a) dies before filing a petition under this scribed in paragraph (2) shall not be consid- assignable or transferable. title, a survivor of the individual may file a ered income or resources in determining eli- (b) 1 PETITION WITH RESPECT TO EACH VIC- petition for payment under this title on be- gibility for, or the amount of supplemental TIM.—With respect to each individual de- half of the individual if the survivor may re- scribed in paragraph (1), (2), or (3) of section security income benefits under title XVI of ceive payment under subparagraph (A). 102(a), the Secretary may not make payment the Social Security Act. (C) DEFINITIONS.—For purposes of this with respect to more than 1 petition filed in (2) GOVERNMENT PAYMENTS DESCRIBED.— paragraph: respect to an individual. The payments described in this subsection (i) The term ‘‘spouse’’ means an individual are payments made from the fund estab- SEC. 105. TIME LIMITATION. who was lawfully married to the relevant in- The Secretary may not make any payment lished pursuant to section 101 of this Act. dividual at the time of death. with respect to any petition filed under this Amend the title so as to read: ‘‘A bill to (ii) The term ‘‘child’’ includes a recognized title unless the petition is filed within 3 provide for compassionate payments with re- natural child, a stepchild who lived with the years after the date of the enactment of this gard to individuals with blood-clotting dis- relevant individual in a regular parent-child Act. orders, such as hemophilia, who contracted relationship, and an adopted child. SEC. 106. CERTAIN CLAIMS NOT AFFECTED BY human immunodeficiency virus due to con- (iii) The term ‘‘parent’’ includes fathers PAYMENT. taminated antihemophilic factor, and for and mothers through adoption. A payment made under section 103(c)(1) other purposes.’’. (3) TIMING OF PAYMENT.—The Secretary shall not be considered as any form of com- may not make a payment on a petition The SPEAKER pro tempore. Pursu- pensation, or reimbursement for a loss, for ant to the rule, the gentleman from Il- under this title before the expiration of the purposes of imposing liability on the individ- linois (Mr. HYDE) and the gentleman 120-day period beginning on the date of the ual receiving the payment, on the basis of enactment of this Act or after the expiration such receipt, to repay any insurance carrier from Virginia (Mr. SCOTT) each will of the 5-year period beginning on the date of for insurance payments or to repay any per- control 20 minutes. the enactment of this Act. son on account of worker’s compensation The Chair recognizes the gentleman (d) ACTION ON PETITIONS.—The Secretary payments. A payment under this title shall from Illinois (Mr. HYDE). shall complete the determination required not affect any claim against an insurance by subsection (b) regarding a petition not GENERAL LEAVE carrier with respect to insurance or against later than 120 days after the date the peti- any person with respect to worker’s com- Mr. HYDE. Madam Speaker, I ask tion is filed under this title. pensation. unanimous consent that all Members (e) HUMANITARIAN NATURE OF PAYMENT.— may have 5 legislative days within This Act does not create or admit any claim SEC. 107. LIMITATION ON AGENT AND ATTORNEY of or on behalf of the individual against the FEES. which to revise and extend their re- Notwithstanding any contract, the rep- United States or against any officer, em- marks on the bill presently under con- resentative of an individual may not receive, ployee, or agent thereof acting within the sideration. for services rendered in connection with the scope of employment or agency that relate The SPEAKER pro tempore. Is there petition of an individual under this title, to an HIV infection arising from treatment objection to the request of the gen- with antihemophilic factor, at any time dur- more than 5 percent of a payment made under this title on the petition. Any such tleman from Illinois? ing the period beginning on July 1, 1982, and There was no objection. ending on December 31, 1987. A payment representative who violates this section under this Act shall, however, when accepted shall be fined not more than $50,000. Mr. HYDE. Madam Speaker, I yield by or on behalf of the individual, be in full SEC. 108. DEFINITIONS. myself such time as I may consume. satisfaction of all such claims by or on be- For purposes of this title: Madam Speaker, I rise in support of half of that individual. (1) The term ‘‘AIDS’’ means acquired im- H.R. 1023, the Ricky Ray Hemophilia mune deficiency syndrome. (f) ADMINISTRATIVE COSTS NOT PAID FROM Relief Fund Act of 1998. This legisla- FUND.—No costs incurred by the Secretary in (2) The term ‘‘Fund’’ means the Ricky Ray carrying out this title may be paid from the Hemophilia Relief Fund. tion has 270 cosponsors in the House, Fund or set off against, or otherwise de- (3) The term ‘‘HIV’’ means human im- including our distinguished Speaker; ducted from, any payment made under sub- munodeficiency virus. and I am informed the Minority Leader section (c)(1). (4) Unless otherwise provided, the term also supports this legislation. (g) TERMINATION OF DUTIES OF SEC- ‘‘Secretary’’ means Secretary of Health and When communities in our great Na- RETARY.—The duties of the Secretary under Human Services. tion are devastated by a natural disas- this section shall cease when the Fund ter- TITLE II—TREATMENT OF CERTAIN PAY- ter such as floods or tornadoes, we rush minates. MENTS IN HEMOPHILIA-CLOTTING-FAC- to their aid, as well we should. The he- (h) TREATMENT OF PAYMENTS UNDER OTHER TOR SUIT UNDER THE SSI PROGRAM AWS mophilia community has been dev- L .—A payment under subsection (c)(1) to SEC. 201. TREATMENT OF CERTAIN PAYMENTS IN an individual— HEMOPHILIA-CLOTTING-FACTOR astated by another type of natural dis- (1) shall be treated for purposes of the In- SUIT UNDER THE MEDICAID AND SSI aster, the HIV contamination of the ternal Revenue Code of 1986 as damages de- PROGRAMS. blood-clotting products which they scribed in section 104(a)(2) of such Code; (a) PRIVATE PAYMENTS.— need to treat their hemophilia. This (2) shall not be included as income or re- (1) IN GENERAL.—Notwithstanding any legislation provides the disaster relief sources for purposes of determining the eligi- other provision of law, the payments de- bility of the individual to receive benefits scribed in paragraph (2) shall not be consid- necessary to assist this community described in section 3803(c)(2)(C) of title 31, ered income or resources in determining eli- through a very difficult time. United States Code, or the amount of such gibility for, or the amount of— In the late 1970s and early 1980s, half benefits, and such benefits shall not be sec- (A) medical assistance under title XIX of of all people with blood-clotting dis- ondary to, conditioned upon reimbursement the Social Security Act, or orders in the United States were in- from, or subject to any reduction because of (B) supplemental security income benefits fected with HIV due to their use of receipt of, any such payment; and under title XVI of the Social Security Act . blood-clotting products which were on (3) shall not be treated as a third party (2) PRIVATE PAYMENTS DESCRIBED.—The the market at that time. During this payment or payment in relation to a legal li- payments described in this subsection are— ability with respect to such benefits and (A) payments made from any fund estab- period, people with blood-clotting dis- shall not be subject (whether by subrogation lished pursuant to a class settlement in the orders needed to use these products to or otherwise) to recovery, recoupment, reim- case of Susan Walker v. Bayer Corporation, live a relatively normal life; and be- bursement, or collection with respect to such et al., 96–C–5024 (N.D. Ill.); and cause each dose came from a pool of May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3379 thousands of blood donors, it was al- their mothers. In the late 1970s and Ray family. Ricky Ray, like his two most certain that they would become early 1980s approximately 7,200 boys brothers, contracted HIV through the HIV infected. and men were infected with HIV use of contaminated blood products. b 1215 through the use of blood-clotting prod- Ricky, the eldest of the three boys, ucts. That is nearly half of all people died of AIDS in 1992 at the age of 15. However, at that time HIV had not with hemophilia in the United States. Before his death Ricky and his family been identified and no tests were avail- Because these blood-clotting prod- courageously spoke out and became na- able to detect its presence. Most people ucts were derived from pools made up tional symbols of the terrible situation with blood clotting disorders are al- of literally thousands of donors, includ- we are facing. He inspired many of his ready financially strapped by the medi- ing prisoners, it has been nearly impos- peers to tell their stories and begin cal costs they incur to treat their dis- sible to conclude causation and liabil- seeking answers from the Federal Gov- order. With earlier medical costs of ity to any one manufacturer for selling ernment and the blood product manu- over $150,000 and the added tragedies of contaminated blood products. Al- facturing industry. an HIV infection, these families have though, as the chairman mentioned, I am saddened that he did not live to been emotionally and financially dev- many cases have been settled, of the see the day when legislation named in astated. dozen or so cases that eventually went his honor would win the approval of In cases involving other types of this body. But we know his brothers blood and blood products, such as to trial, the manufacturers were only and sisters, his parents, and the ex- transfusion cases, where a primary pro- held liable in two cases, one of which vider or a small child was infected, set- was reversed and the other is still on tended family of friends he established tlements usually were for hundreds of appeal. To make matters worse, many around the country recognize the enor- thousands of dollars. Many of the HIV of the States have passed so-called mous contribution that he made in his infected people with hemophilia were blood shield laws to protect blood very short life. It is appropriate that young fathers and children. banks from liability when blood-based the legislation before us bears his After many years of litigation, the diseases are passed on to users. name, and I am pleased that Ricky’s manufacturers of these blood clotting Notwithstanding the industry’s mother Louise is here with us today. products containing HIV have set up a courtroom success and new blood Madam Speaker, hemophilia is an in- fund which provides $100,000 to individ- shield laws, the industry recently es- herited blood-clotting disorder causing uals and their families. However, when tablished a fund to provide $100,000 to serious internal bleeding episodes that, considering the incredible financial individuals who contracted HIV if left untreated, can lead to disfigure- burden placed on these families due to through contaminated blood-clotting ment and death. People with hemo- medical costs and, in many cases, loss products in exchange for signing waiv- philia rely on blood products, com- of the primary provider of the family, ers releasing the industry from any fu- monly called factor, which are manu- this amount will not sufficiently lift ture liability. Many hemophiliacs and factured and sold by pharmaceutical this community out of the financial their families have accepted this offer. companies. crisis that has developed. Unfortunately, the $100,000 industry Because these products are made While no amount will completely al- payment is insufficient to cover the from the pooled blood of thousands of leviate the losses felt, H.R. 1023 pro- enormous costs of blood-clotting drugs people, the potential for infection with vides a payment equal to that of the which people with hemophilia must a blood-borne disease among those who industry. The amount available to continue to have in order to live a rel- use them is obviously very high, some- these families would then be com- atively normal life, and the enormous thing that has been known for decades. parable to that potentially realized by costs of drugs to combat the AIDS In fact, hemophilia sufferers have long other HIV-infected blood victims virus. Accordingly, this legislation is been described as the canaries in the through settlement. necessary to provide additional finan- coal mine, because when something There is a manager’s amendment to cial assistance. goes wrong with the blood supply it this legislation. The bill as reported by The administration supports this shows up in the hemophilia community the committee included a provision of proposal. We want to thank the chair- first. no more than 2 percent of these pay- man for the manager’s amendment to Soon after the introduction of clot- ments that may be used for attorneys’ increase the attorneys’ fee provision ting factor in the 1970s, the hepatitis fees. Concern was raised during com- from 2 to 5 percent, because we support virus swept through the hemophilia mittee consideration that should there this amendment, because we believe community. Largely as a result of the be a complication in the processing of that it will allow claimants greater ac- hemophilia community’s experience an individual’s application, 2 percent cess to legal counsel in processing their with the hepatitis virus, the Federal would be insufficient to address that applications under the bill. Government adopted the national concern, and the 2 percent limitation Madam Speaker, I reserve the bal- blood policy, which charged the Public on attorneys’ fees has been increased ance of my time. Health Service, including the Centers to 5 percent. Mr. HYDE. Madam Speaker, I am for Disease Control, Food and Drug, I know my budget-conscious col- pleased to yield 8 minutes to the dis- and the National Institutes of Health leagues may balk at this expenditure, tinguished gentleman from Florida with ensuring the safety and adequacy but when an extreme crisis hits an (Mr. GOSS), one of the driving forces be- of the Nation’s blood supply. It is American community, we should as a hind this excellent legislation. worth noting that the Federal respon- Nation respond to that community’s (Mr. GOSS asked and was given per- sibility for blood and blood products is need. That is what this bill does. To aid mission to revise and extend his re- indeed unique. No other product has a this community in crisis, I urge a fa- marks and include extraneous mate- national policy. vorable vote on H.R. 1023. rial.) In the early 1980s a much more dead- Madam Speaker, I reserve the bal- Mr. GOSS. Madam Speaker, I thank ly disease struck as approximately one- ance of my time. the distinguished gentleman from Illi- half of the Nation’s hemophiliacs, some Mr. SCOTT. Madam Speaker, I yield nois (Mr. HENRY HYDE), chairman of 7,200 people at a minimum, became in- myself such time as I may consume. the Committee on the Judiciary, with fected with HIV through the use of con- Madam Speaker, I rise in support of my great respect for him, and I thank taminated blood products. How did this H.R. 1023, the Ricky Ray Hemophilia him personally from my heart for get- happen? Why did the system that was Relief Fund Act of 1998. The purpose of ting this legislation this far. established to safeguard the supply of the bill is to establish a fund to provide Madam Speaker, I rise today in sup- blood and blood products fail to heed compassionate payments of $100,000 to port of H.R. 1023, the Ricky Ray Hemo- the early warning signs and prove so individuals with hemophilia who con- philia Relief Fund Act, which is de- slow to respond to a dangerous threat? tracted HIV, the AIDS virus, from con- signed to respond to the tragedies of In 1993 I joined with Senators taminated blood-clotting products. hemophilia-associated AIDS. GRAHAM of Florida and KENNEDY of Hemophilia is a blood-clotting dis- I first became involved in this issue Massachusetts in asking the Depart- order genetically passed to sons by some nine years ago when I met the ment of Health and Human Services to H3380 CONGRESSIONAL RECORD — HOUSE May 19, 1998 conduct a review of the events sur- firsthand, moving a bill through the marily by state law. Products liability is rounding this medical disaster. The re- legislative process is a slow, difficult, strict liability, which means that, to re- sults of that intensive and objective re- and sometimes frustrating experience, cover, the plaintiff does not have to prove that the defendant was negligent, but need view are contained in a report prepared amen. When I first introduced the prove only that the defendant sold a defec- by the Institute of Medicine, an arm of Ricky Ray bill, we had about two dozen tive product and that the plaintiff’s injury the National Academy of Sciences. cosponsors. Since then support for the resulted from the defect. However, all 50 The IOM found ‘‘a failure of leader- bill has swelled to 270 cosponsors, and states—48 through ‘‘blood shield’’ statutes— ship and inadequate institutional deci- we have secured unanimous approval provide that blood transfusions are not sub- sion-making processes’’ in the system for all three committees with jurisdic- ject to strict liability. The primary rationale responsible for ensuring blood safety, tion. for this is the belief that holding suppliers of concluding that ‘‘a failure of leadership This incredible progress is the direct blood or blood products strictly liability would make blood transfusions too expen- led to less than effective donor screen- result of the courage, diligence, and sive. ing, weak regulatory actions, and in- hard work of the hemophilia commu- Part I of this report, by Diane Duffy, Leg- sufficient communication to patients nity. Of particular notice is the work islative Attorney, provides an overview of about the risk of AIDS.’’ of a group of high school students from the Federal government’s regulation of blood While the IOM report is important, it Robinson Secondary School in Fairfax, products. Part II, by Henry Cohen, Legisla- does not begin to quantify the human Virginia. For several years these kids, tive Attorney, examines tort liability for in- dimension. For me, that is the most juries caused by defective blood or blood as part of a marketing education pro- products. compelling part of this tragedy. We gram called DECA, have lobbied to pass cannot talk to these victims without PART I: FEDERAL REGULATION OF BLOOD this bill. Their efforts have been ex- PRODUCTS being moved by what they have gone traordinary, and they show that de- Issues relating to the regulation of blood through. It is important to keep in mocracy can and does work. products have been raised in the context of mind that the people with hemophilia Finally, Madam Speaker, let me say individuals with hemophilia who contracted already have to manage a sometimes thank you to the congressional staff Human Immunodeficiency Virus (HIV), the debilitating disease. The average per- that have worked with me through the virus which causes AIDS, through the use of son with hemophilia spends approxi- years to research and understand this contaminated blood products. In the 104th mately $100,000 per year on clotting tragedy, explain it to the House, and Congress, bills have been introduced by Rep. factor alone. Many people with hemo- Goss and Sen. DeWine which would establish get this bill moving. a trust fund to compensate hemophiliacs, philia have had a difficult time obtain- Madam Speaker, for too long the he- their spouses or estates, who contracted HIV ing both health and life insurance, un- mophilia community has felt that gov- through tainted blood products. This part of derstandably. ernment first let them down and later the report summarizes Rep. Goss’ bill (H.R. In addition to the difficulties associ- abandoned them. I sincerely hope that 1023, 104th Congress) 1; discusses current Fed- ated with hemophilia itself, the added the House action today will provide eral law that directs and authorizes the reg- complication of HIV AIDS has hit the some measure of reassurance that their ulation of blood products; and discusses reg- hemophilia community particularly voices do count, that the legislative ulatory issues and events which are notable hard. Each treatment costs somewhere in this context. In particular, it focuses process does work, and that we have issues which tend to indicate that the regu- in the range of $10,000 to $50,000 per not forgotten them or the tragedy that lation of blood products has been different year, varying on the stage of the dis- befell their community. I only wish we than the regulation of other articles which ease and the course of the treatment. had a cure for AIDS. are within the jurisdiction of the Food and As a result of these extraordinary I strongly urge my colleagues to sup- Drug Administration (FDA). costs and the disproportionate impact port this important legislation. Summary: The Ricky Ray Hemophilia Relief of this tragedy on men, who most typi- Madam Speaker, I include for the Fund Act of 1995 cally suffer from hemophilia and who RECORD the following CRS report. H.R. 1023, 104th Congress, introduced by tended to be the head of many of these The report referred to is as follows: Rep. Goss, establishes procedures for claims for compassionate payments with regard to households, many of these folks have CSR REPORT FOR CONGRESS—BLOOD AND been financially devastated. In some persons with blood clotting disorders, e.g., BLOOD PRODUCTS: FEDERAL REGULATION hemophilia, who contracted HIV due to con- cases entire generations have been AND TORT LIABILITY taminated blood products. The bill, entitled wiped out: fathers, sons, uncles. Most (By Diane T. Duffy and Henry Cohen, Legis- the Ricky Ray Hemophilia Relief Fund Act tragically, some men infected their lative Attorneys, American Law Division) of 1995, states that about half of all individ- wives with HIV before they became SUMMARY uals in the U.S. who suffer from blood clot- aware that they had contracted the Part I of this report, by Diane Duffy, Leg- ting diseases like hemophilia, were exposed disease. We know of cases where un- islative Attorney, provides an overview of to HIV through the use of blood clotting born children in these circumstances the Federal government’s regulation of blood agents. The bill finds that the Federal gov- were also infected. products. Part II, by Henry Cohen, Legisla- ernment has a shared responsibility with the blood products industry for protecting the The emotional toll on all of these tive Attorney, examines tort liability for in- juries caused by defective blood or blood safety of the blood supply and for regulating families has been immense. Madam blood clotting agents. H.R. 1023 finds that Speaker, the Federal Government can- products. The Food and Drug Administration (FDA) people with blood clotting disorders were at not become involved in every tragic regulates blood and blood products under a very high risk of contracting HIV during case that occurs in this country, but two statutes which overlap to a certain de- the period beginning in 1980 and ending in this case is unique. I believe the Fed- gree: the Federal Food, Drug and Cosmetic 1987, when the last mass recall of contami- eral Government can and should, for Act [FFDCA] and the Public Health Services nated anti-hemophilic factor (AHF) oc- compassionate reasons, act to help the Act (PHSA). Regulations are issued in order curred. The bill states that it was during this period that the Federal government did not hemophilia community. to implement the provisions of these stat- utes. Current statutory and regulatory law require the blood products industry to use While we cannot right all the wrongs means to ensure safety of blood products in the world, we should pass this legis- operates to govern the licensing, production, testing, distribution, labeling, review and ap- that were marketed for sale to people with lation to acknowledge the unique re- proval of all drugs and biologics. Specifi- blood clotting disorders. Moreover, it finds sponsibility of the government to pro- cally, under the FFDCA, drugs, which in- that the government did not require that all tect the blood supply and provide some clude biologics such as blood and blood com- available information about the risks of con- measure of compassionate assistance ponents or derivatives, which are intended to tamination be dispensed and failed to prop- to these victims. While I am encour- cure, mitigate, or prevent disease, are regu- erly regulate the blood products industry. aged that a final class settlement be- lated. The enforcement and penalties provi- Based upon these and other findings, the bill sions of the FFDCA can be applied to biologi- establishes a fund to compensate individuals tween the people of hemophilia and the in this circumstance. The fund is named blood product manufacturing compa- cal product manufacturers. Within the agen- cy, the Center for Biologics Evaluation and after a child born with hemophilia who, like nies is in fact going forward, it does Review has jurisdiction over the regulation his two younger brothers and others, became not change my view that government of these articles. infected with HIV through the use of con- also must act. Tort liability for injuries caused by defec- taminated blood clotting products.2 As my colleagues know, and as the tive blood or blood products is a form of hemophilia community has learned products liability, which is governed pri- Footnotes at end of article. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3381 Specifically, the fund provides for partial Under section 351 of the PHSA 8, blood benefit to patients over existing treatments, restitution to people who were infected with products are regulated under the category of that is, to treat patients unresponsive to or HIV after treatment, during the period of biological products. Current law provides intolerant of, available therapy. 1980–1987, with contaminated blood products. that no person may sell, barter, exchange or To assist the agency in fulfilling its duty The fund is established in the Department of offer to sell, barter, exchange or conduct to evaluate the safety and effectiveness and the Treasury, is to be administered by the interstate commerce of the same or bring labeling of biological products, Part 601 also Secretary, and is to remain viable for five from a foreign country any virus, thera- authorizes the FDA to appoint advisory re- years after the date of enactment. The bill peutic serum, toxin, antitoxin, vaccine, view panels to (1) evaluate the safety and ef- authorizes to be appropriated to the fund blood, blood component or derivative, aller- fectiveness of biological products for which a $1,000,000,000, to be disbursed by the Attorney genic products, or analogous products appli- license has been issued under § 351 of the General. H.R. 1023 provides that any person cable to the prevention, treatment, or cure PHSA; (2) review the labeling of such bio- who submits to the Attorney General writ- of diseases or injuries of man unless the logical products; and (3) advise the Commis- ten medical documentation that he has an same has been propagated or manufactured sioner on which of the biological products HIV infection shall receive $125,000 if each of and prepared at an establishment holding an under review are safe, effective and not mis- these conditions is met: unsuspended or unrevoked license, issued by branded. The members of the panel shall be (A) 1. The person has any form of blood the Secretary, to propagate or manufacture qualified experts, appointed by the Commis- clotting disorder and was treated with blood and prepare the biological product. sioner, and shall include persons from lists clotting agency in the form of blood compo- Moreover, the law provides that each pack- submitted by organizations representing pro- nents or blood products at any time during age of the product must be plainly marked fessional, consumer, and industry interests. the period of January 1, 1980 and ending De- with the proper name of the product, the Such persons shall represent a wide diver- cember 31, 1987; or name, address and license number of the gence of responsible medical and scientific 2. The person is the lawful spouse of the in- manufacturer and the expiration date. The opinion. The Commissioner designates the fected person or is the former lawful spouse statute prohibits the false labeling or mark- chair of each panel (for each type of biologi- of the infected person at the time so de- ing of any package or container containing cal product) and minutes of all meetings scribed in the bill. the biological product and authorizes depart- must be made. Additionally, regulations pro- 3. The person acquired HIV through ment officials to inspect establishments. vide that interested persons can participate perinatal transmission from a parent who is Current law governs licensing for both the in the advisory panels sessions to the extent an individual described in the above para- establishment and the product. For example, that the FDA must publish a notice in the graphs. the statute provides that licenses for the Federal Register requesting interested per- (B) A claim for payment is filed with the maintenance of the establishment are issued sons to submit, for review and evaluation by Attorney General. after a showing that the establishment and the advisory panel, published and unpub- (C) The Attorney General determines that the products meet standards designed to in- lished data and information pertinent to the the claim meets the requirements under this sure the continued safety, purity and po- biological products. bill, if enacted. tency of the products. Further authority is To a certain extent, the industry regulates The Attorney General is required to estab- provided for suspending and revoking li- itself through the adherence to good manu- lish procedures for the claims and payments censes. Also, when a batch, lot or other facturing practices (GMPs). Part 606 sets 13 and must determine whether the claim quantity of a licensed product presents an forth these GMPs for blood and blood com- ponents and provides uniform and industry- meets all the requirements. Claims are to be imminent or substantial hazard to the public specific guidelines and requirements to in- assessed and paid, if appropriate, within 90 health, the Secretary shall issue an order, sure safety, effectiveness, purity and other days of their filing. In the case of a deceased under 5 U.S.C. § 554, immediately ordering important features of blood products.14 These claimant, the payment is to be made to the the recall of the quantity. The assessment of regulations pertain to personnel of the estab- deceased’s estate or in the manner set forth civil money penalties is authorized for viola- lishment, e.g., requirement to designate per- in the bill. Payments made from the fund tions. Any person who violates this section son in control of establishment; facilities shall be in full satisfaction of all claims of or or aids in the violation of this section may maintenance, e.g., adequate space, quar- on behalf of the individual against the be punished upon conviction by a fine or im- antine storage, orderly collection of blood, United States that arise out of both the HIV prisonment or both. In sum, the agency is etc.; equipment, e.g., calibrated, properly infection and treatment during the period of authorized to enforce the law through var- maintained, etc.; and, supplies and reagents, time noted. With regard to judicial review, ious enforcement tools including, seizure, e.g., storage in a safe, sanitary and orderly any person whose claim is denied may seek application for recall, injunction, criminal manner. The GMPs detail finished product judicial review in a district court of the U.S. prosecution, or administrative techniques, 9 controls, container labels, records and re- The court shall review the denial on the ad- e.g. suspension, revocation of license. Implementing regulations governing blood porting procedures and importantly, the ad- ministrative record and hold unlawful and and blood products provide further detail. verse reaction process. set aside the denial if it was arbitrary, capri- For example, 21 C.F.R. Part 600 addresses Part 607 requires the registration of estab- cious, an abuse of discretion, or otherwise general standards for establishments that lishments which include human blood and not in accordance with the law. manufacture a product subject to licensing plasma donor centers, blood banks, trans- Regulation of blood products as a blood product. It defines critical terms, fusion services, other blood product manu- The Food and Drug Administration (FDA) e.g., biological product, sterility, purity, es- facturers and independent laboratories that regulates blood and blood products under tablishment, etc. These regulations state engage in quality control and testing for reg- two statutes which overlap to a certain de- that with respect to an establishment, a per- istered blood product establishments. The gree: the Federal Food, Drug and Cosmetic son shall be designated as the ‘‘responsible regulations also provide special standards for Act [FFDCA] 3 and the Public Health Serv- head who shall exercise control of the estab- human blood and blood products, some of ices Act (PHSA)4 and implementing regula- lishment in all matters relating to compli- which apply directly to those being treated tions.5 Current statutory and regulatory law ance with the provisions’’ of these regula- for hemophilia. For example, Part 640 ad- operates to govern the licensing, production, tions.10 This part governs inspections with dresses the product known as testing, distribution, labeling, review and ap- respect to time of inspection, duties of in- Cryoprecipitated AHF, a preparation of proval of all drugs and biologics. Under the spectors and more. In addition, regulations antihemophilic factor which is obtained FFDCA, drugs intended for the cure, mitiga- require other actions, for instance, the post- from a single unit of plasma collected and tion, or prevention of disease, which include market reporting of adverse experiences.11 processed in a closed system. The source ma- biologics such as blood and blood compo- Part 601 governs two types of licensing: the terial for this product is plasma which may nents or derivatives, are regulated.6 Biologi- establishment and the product.12 The FDA is be obtained by whole blood collection or cal products are regulated by the FDA’s Cen- charged with issuing licenses only after all plasmapheresis.16 The regulations establish ter for Biologics Evaluation and Review pertinent requirements and conditions are procedures pertaining to the suitability of under the authority of the FFDCA, PHSA met. The agency is authorized to enforce donors; the collection of source material; the and implementing regulations.7 The FDA is provisions of current law through adminis- testing of blood; processing; quality control; the primary agency for protecting the na- trative measures to revoke or suspend a li- and further requirements. With specific re- tion’s blood supply and it is directed and au- cense. Provisions for review of the agency’s gard to donor testing, the regulations pro- thorized to regulate blood-banking, the han- decision regarding suspension or revocation vide that the blood from which the plasma is dling of source plasma, and the manufac- are also addressed. Section 601.25 establishes separated must be tested as prescribed in turer of blood products. Investigations of a the review procedures to determine that li- §§ 610.40 [Test for hepatitis B], 610.45 [Test for new biological product is done under inves- censed biological products are safe and effec- HIV] and 640.5 [Test for syphilis, blood group, tigational new drug procedures found in the tive and not misbranded under prescribed, and Rh factors]. The test must be conducted drug section of the FFDCA because the recommended or suggested conditions of use. on a sample of the blood collected at the PHSA specifically regulates after the prod- Notably, Subpart E provides for the acceler- time of donation and the container must be uct is in the stream of commerce, not before. ated approval of biological products for seri- properly labeled. Manufacturers of this prod- The enforcement and penalties provisions of ous or life threatening illnesses. This section uct are responsible for testing and record- the FFDCA can be applied to biological prod- permits the agency to approve products on a keeping. Moreover, quality control tests for uct manufacturers. fast track to provide meaningful therapeutic potency of the antihemophilic factor must H3382 CONGRESSIONAL RECORD — HOUSE May 19, 1998 be conducted each month on at least four and more strictly than for other articles blood products. The recommended safety representative containers of under the various pertinent statutes. measures were limited in scope. . . .’’ 33 Cryoprecipitated AHF. The results must be Additionally, blood and blood products are In 1983, the FDA’s Blood Product Advisory maintained at the establishment for inspec- the subject of an articulated national policy. Committee (BPAC) met to reconsider blood tion and review by the FDA. Other articles under the FFDCA and PHSA and blood products policies. One company re- As soon from the above examination of have not been focused upon nationally in called AHF concentrate when it determined statutory and regulatory law, the legal re- such a way. In 1973, the National Blood Pol- that the concentrate was made from pools quirements and procedures, as well as indus- icy was announced and the Public Health containing plasma from a person diagnosed try GMPs, create a complex and far-reaching Service, including the CDC, the FDA and with AIDs. However the IOM report notes regulatory structure for biological products NIH, was charged with responsibility for pro- that this recall was expressly not viewed as and blood products in particular. To a cer- tecting the nation’s blood supply. The Policy a recall of all such products and that the tain extent, under the FFDCA and the recognized that reliance on ‘‘commercial agency did not initially initiate a nation- PHSA, the licensing of biologics is more re- sources of blood and blood components for wide call of the concentrate.34 The BPAC strictive than that for other regulated arti- transfusion, therapy . . . contributed to sig- stated in mid-1983 that the criteria for decid- cles, e.g., new drug. For example, a new drug nificantly disproportionate incidence of hep- ing to withdraw lots of AHF concentrate under the FFDCA needs an approved new atitis, since such blood is often collected should be based on evidence that plasma drug application (NDA), however, a new bio- from sectors of society in which trans- from a donor with AIDs had been present in logic needs to fulfill higher requirements. A missible hepatitis is more prevalent.’’ 24 The the pooled plasma from which the lot was generic biological product such as a serum Policy encouraged efforts to establish an all- manufactured and recommended to the FDA must be approved by the FDA under the volunteer blood donation system and to a case-by-case decision regarding withdrawal PHSA for its purity, potency and effective- eliminate commercialized acquisition of for each lot that included plasma from a per- ness based upon data submissions.16 The blood and blood components. son who had AIDS or was suspected of having PHSA states that licenses for new products The Policy listed four goals: to provide an AIDS.35 Some physicians switched from AHF may be issued only upon a showing that adequate supply of blood; to ensure a higher concentrate to cryoprecipitate in those with meets these express standards.17 Addition- quality of blood; to facilitate maximum ac- less severe hemophilia. The IOM concluded ally, related regulations and GMPs must be cessibility to services; and to achieve total ‘‘[b]lood safety policies changed very little fully satisfied to ensure compliance. efficiency.25 According to the Institute of during 1983 [and that there] were missed op- Second, manufacturers of the product are Medicine’s [IOM] 1995 study, the first actions portunities to learn from pilot tests to individually licensed as capable of making under the policy included adoption of an all- screen potentially infected donors or imple- the product on the particular manufacturing volunteer blood collection system; coordina- ment other control strategies that had been site.18 Regulations at Part 607, discussed tion of costs; regionalization of blood collec- rejected as national policy.’’ 36 Inaction re- above, must be fully met for each establish- tion and distribution; and, an examination of lating to donor screening and surrogate ment and for each product. Enforcement and standards of care for hemophiliacs and other marker testing was emphasized in the re- inspection authority under the Act may be special groups. The Policy did not address port.37 triggered to address alleged violations of the the commercialization of plasma, the prepa- BPAC served as an advisory committee for law or regulations or to insure ongoing com- ration and marketing of plasma derivatives, the FDA and was the forum for industry and pliance. Inspectors are authorized to exam- and the commercial acquisition of blood for interested entities to participate in and in- ine records of the licensed establishments diagnostic reagents.26 fluence the FDA’s policy regarding blood while GMPs guide recordkeeping, facility products regulation.38 According to the IOM and equipment management, personnel regu- Contaminated blood products and brief overview of Government actions during the 1980’s report, BPAC’s membership included blood lations and similar procedures. Moreover, and plasma organization representatives, the FDA inspectors are granted special in- In the context of blood products regulation scientists, and physicians.39 The report con- spection authority for biological products and the government’s focus on the nation’s blood supply, events occurred in the 1980s cluded that valuable screening measures and special procedures apply. For instance, were not recommended by the BPAC due to as noted above, a specific person must be which led hemophiliacs and others to con- tract HIV from contaminated blood and uncertainties regarding scientific data, i.e., designated as being in control of the facility data from CDC, and ‘‘pressures from the for regulatory and compliance purposes.19 blood products. The IOM study indicates that in September of 1982, of the 593 cases of blood industry and special interest Moreover, and particularly with regard to 40 AIDs reported to the CDC, 3 were hemo- groups.’’ Thus, options that could have re- blood clotting agents for hemophilia, exten- duced infection were not pursued. HIV test- sive and frequent testing of lots and batches philiacs. Later, the CDC noted that the he- mophilia patients who had AIDS had all re- ing and additional donor screening proce- is required after initial production. The FDA dures were implemented in 1985. The IOM may exercise its enforcement authority ceived large amounts of a commercially manufactured anticoagulant known as AHF concluded that the FDA relied too heavily on under the FFDCA and PHSA to suspend or BPAC and did not independently assess its revoke the license for either the product or (antihemophilic factor) 27 Evidence seemed to indicate that children with hemophilia were recommendations and statements, and did the establishment, to seize, to seek recalls, not observe principles for proper manage- injunctions, assess penalties, and to exercise at risk for the disease.28 As more cases were ment of advisory committees.41 Moreover, 20 reported, the IOM report states that a na- a range of impressive enforcement tools. IOM concluded that the membership of The entire licensure process is complex and tional survey indicated that 30% or more of BPAC limited the information and points of intended to insure purity, potency and pre- all hemophiliacs had abnormal view expressed to the agency and found pos- vent misbranding. Some view it as the func- immunological tests. By January 1983, evi- tional equivalent to a NDA for a new drug. dence from CDC investigations strongly indi- sible issues relating to conflicts of interest. Regulation of biological products is more re- cated that blood and blood products trans- The report focused on the agency’s role as strictive in scope and has appeared to evolve mitted AIDS and that it could be transmit- being responsible for protecting the nation’s to meet the unique needs and characteristics ted through sexual contact. It appeared that blood supply, providing leadership and com- 42 of biological products. While there are many AIDS was occurring in individuals with he- munication of information to those at risk. similarities in the regulation of the drugs, mophilia who had received AHF con- Conclusion to Part I devices, and biological products during pre- centrate.29 In March, 1983, the PHS issued its In sum, the blood and blood products regu- market and post-market phases, there ap- first formal recommendations on the preven- lation under the FFDCA and PHSA are re- pears to be a greater emphasis on regulatory tion of AIDS and with regard to hemo- strictive and complex, governing primarily standards and requirements for biologics at philiacs, the recommendation stated that licensing of products and sites, as well as the the manufacturing level. Commentators work should continue toward development of final product, and authorize extensive en- have noted that the unique and separate his- safer blood products for use by hemophiliac forcement actions. The FDA is the lead agen- tories of the regulation of drugs and bio- patients.30 H.R. 1023 states that thousands cy responsible for regulation of these articles logics may account for the difference in reg- became infected with HIV through the use of and was charged with this responsibility in ulatory approach.21 One reason may be at- contaminated blood clotting products.31 1972. The products themselves seem to have tributed to the fact that the Biologics Act 22 The IOM report indicates that numerous been accorded special status, to a certain de- predates the FFDCA and that it was not en- measures were publicized and taken with re- gree, under the statutes for regulation. forced by the FDA until 1972, when jurisdic- gard to blood and plasma donations, collec- Moreover, blood and blood products have tion for these matters was transferred to the tion and use, e.g. quarantine and disposal. been part of an articulated National Blood FDA from the National Institutes of Health. The FDA announced that it approved a heat Policy. Events of the 1980s resulted in indi- Extensive government involvement and reg- treatment to inactivate viruses in AHF con- viduals with hemophilia, and many others, ulation of the manufacturing process grew centrate, which purported to help protect in- to contract HIV through the use of contami- out of early tragic incidents when it was de- dividuals with hemophilia from Hepatitis B, nated blood and blood products. This spurred termined that microbes contaminated vac- and perhaps, AIDs.32 The IOM report states intense examination of the FDA, its regu- cines.23 Thus, where the primary focus is on that: ‘‘Government and private agencies latory actions, and the use of its advisory the final product for drugs and devices, for identified, considered, and in some cases committee BPAC, during this period. H.R. biologics, it was determined that govern- adopted strategies for dealing with the risk 1023, and S. 1189, were introduced to provide ment regulation was needed much earlier of transmitting AIDs through blood and for payments from a trust fund to those with May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3383 blood clotting disorders who contracted HIV plaintiffs in most cases would go uncompen- handed down that the imposition of liability at this time. sated because of the difficulty in proving without fault on the distributors of blood PART II: TORT LIABILITY FOR INJURIES CAUSED negligence. would cause the cost of transfusions to sky- BY DEFECTIVE BLOOD OR BLOOD PRODUCTS The court held that the transfusion should rocket. . . . Moreover, implicit in the legis- ‘‘Products liability’’ refers to the liability be treated as a service, because, ‘‘when serv- lature’s declaration of public policy is the of a product manufacturer or subsequent ice predominates, and the transfer of per- fear that the imposition of strict tort liabil- seller for damages resulting from an injury sonal property is but an incidental feature of ity would cause the financial considerations caused by a product defect. Products liabil- the transaction, the transaction is not arising out of increased exposure to tort liti- 46 gation to impinge on the exercise of sound ity is governed primarily by state common deemed a sale. . . .’’ The Perimutter deci- medial judgment in a field where an individ- (i.e., court-made) law, as modified by state sion was widely followed by the courts, and extended to blood banks as well as hospitals. ual’s life might be at stake.’’ 54 statute, although federal statutes occasion- Illinois’ approach is now the approach of ally preempt aspects of state products liabil- In Community Blood Bank, Inc. v. Russell, however, a Florida court found it ‘‘a distor- all 50 states, with 48 states having enacted ity law. For example, prior to filing suit blood shield statutes, and Minnesota, New under state law for injuries caused by defec- tion to take what is, at least arguably, a sale, twist it into the shape of a service, and Jersey, and District of Columbia courts hav- tive vaccines, one must file a claim under ing reached the same result on their own.55 the National Children Vaccine Injury Act of then employ this transformed material in erecting the framework of a major policy de- Blood shield statues ‘‘expressly characterize 1986, as amended.43 blood transfusions as services or explicitly cision.’’ 47 This policy decision, of course, is Products liability differs from most other state that blood transfusions will not be sub- whether ‘‘the social utility of an abundant liability for non-intentional torts because ject to strict liability.’’ 56 A 1990 Washington blood supply outweighs the risks to individ- products liability is strict liability, which case articulated the policy justifications for uals’’ 48 The Florida court, needless to say, means that, to recover, the plaintiff does not blood shield statutes: ‘‘First, the societal found the transfusion to be a sale, and a have to prove that the defendant was neg- need to ensure an affordable, adequate transfer of contaminated blood to be a ligent (i.e., failed to exercise due care). All bloody supply furnishes a persuasive reason breach of warranty. the plaintiff generally must prove in a prod- for distinguishing between victims of defec- ucts liability action is that the defendant ‘‘Community Blood Bank thus paved the way for the greatest assault on the Perlmutter tive blood and victims of other defective sold a defective product and that the plain- products. Second, strict liability cannot pro- 44 citadel, which came in Cunningham v. tiff’s injury resulted from the defect. vide an incentive to promote all possible Products liability suits sometimes also al- MacNeal Memorial Hospital,49 where the de- fendant once again was a hospital, not a means of screening the blood for HIV. Third, lege a breach of warranty, on the theory that although the producers may be in a better blood bank.’’ 50 The plaintiff, who had con- the fact that the product was defective con- position to spread the costs, it is not in soci- stitutes a breach of the implied warranties tracted serum hepatitis from defective blood supplied by the hospital during a trans- ety’s best interest to have the price of a that goods shall be merchantable (fit for or- 57 fusion, asserted a claim in strict liability transfusion reflect its true costs.’’ dinary purposes) and fit for any particular Blood shield statutes do not preclude all and won, with the court refusing to allow the purpose for which they are required. These lawsuits alleging injuries caused by contami- implied warranties arise under Uniform hospital the defense that there was no means nated blood. Even in a state with a blood Commercial Code §§ 2–314 and 2–315, which to detect the existence of serum hepatitis in shield statute, one commentator notes, ‘‘It has been enacted into law in every state but whole blood. The court wrote: ‘‘To allow a seems likely that an action in express war- Louisiana. A suit for breach of warranty is defense to strict liability on the ground that ranty or innocent tortious misrepresentation similar to one for strict liability in tort in there is no way, either practical or theoreti- would lie if a supplier of a blood product mis- that in neither type of case need the plaintiff cal, for a defendant to ascertain the exist- represented the product’s safety, and a plain- prove negligence. Breach of warranty suits ence of impurities in his product would be to tiff relied on the misrepresentation to his predate strict tort liability suits, which emasculate the doctrine and in a very real detriment in the purchase of use of the prod- came into being only in the 1960s. sense return to a negligence theory.’’ 51 uct.’’ 58 One situation in which strict liability is Some courts, even if they treated a trans- Another commentator addresses a different generally not applied is in suits involving fusion as the sale of a product and not as a situation in which strict liability may re- unavoidably unsafe products, among which, service, found for the defendant under Re- main: ‘‘So blood shield statutes were ex- as noted below, some courts include blood. statement (Second) of Torts § 402A comment pressly enacted to address only the threat of Restatement (Second) of Torts § 402A com- k, mentioned above. They ‘‘considered serum hepatitis, and it was not until after it ment k, which courts generally follow, pro- whether liability without fault was applica- was discovered that the HIV virus was trans- vides: ‘‘There are some products which, in ble in view of a claim that blood containing mittable through blood that legislatures the present state of human knowledge, are hepatitis is a product which is unavoidably amended these statutes to deal with poten- quite incapable of being made safe for their unsafe and thus is not an unreasonably dan- tial AIDS liability. Courts have held that intended and ordinary use. This is especially gerous product for which the blood bank these amendments are not to be applied common in the field of drugs. An outstand- could be held liable without fault. With some retroactively. Consequently, plaintiffs who ing example is the vaccine for the Pasteur authority to the contrary, the courts have received contaminated transfusions before treatment of rabies, which not uncommonly reasoned that blood infected with hepatitis the amendment are not barred by the blood leads to very serious and damaging side ef- virus is such an unavoidably unsafe product, shield statutes from bring strict liability ac- fects when it is injected. Since the disease since there is a great need for blood for oper- tions.’’ 59 itself inevitably leads to a dreadful death, ations and surgical procedures, but the possi- A blood shield statute was also held inap- both the marketing and the use of the vac- bility of blood being infected with hepatitis plicable in a suit against a pharmaceutical cine are fully justified, notwithstanding the cannot be totally eliminated despite due company where the relevant statute (Indiana unavoidable high degree of risk which they care being taken, and therefore they have Code 16–41–12–11) applied to the distribution involve. Such a product, properly prepared, held that a blood bank cannot be held liable of blood by a ‘‘bank, storage facility, or hos- and accompanied by proper directions and without fault for injuries to a patient who pital.’’ The Indian Court of Appeals wrote: warnings, is not defective, nor is it unreason- contracted hepatitis from the blood it sup- ‘‘[W]e simply cannot conclude that our legis- ably dangerous’’ [emphasis in original]. plied.’’ 52 lature intended to include a pharmaceutical company, which commercially produces Case law Blood shield statutes; negligence suits blood products for mass distribution, as an The seminal products liability blood trans- The Illinois legislature responded to the entity within the same class described as an fusion case was Perlmutter v. Beth David Hos- Cunningham decision by enacting a statute organ or a blood ‘‘bank or storage facility.’’ pital, decided by the New York Court of Ap- that provides, in part: ‘‘The procuring, fur- The manufacture and distribution of blood peals in 1954.45 It was a breach of warranty nishing, donating, processing, distributing or products by pharmaceutical companies is case (as it predated strict tort liability), and using human whole blood, plasma, blood better characterized as the sale of a product the issue was whether a transfusion con- products, blood derivatives and products, rather than the provision of a service. . . . It stituted the sale of a product, in which case corneas, bones, or organs or other human tis- is quite unlikely that our legislature in- a transfusion of contaminated blood would sue for the purpose of injecting, transfusing tended to include pharmaceutical companies constitute a breach of warranty, or whether or transplanting any of them in the human in its definition of ‘‘bank or storage facility’’ it constituted the provision of a medical body is declared for purposes of liability in simply because the manufacture or produc- service, in which case the plaintiff would tort or contract [i.e., breach of warranty] to tion of blood products incidentally involves have to prove negligence to recover. This dis- be the rendition of a service . . . and is de- their storage.’’ 60 tinction was critical because there was no clared not to be a sale of any such items and Finally, blood shield statutes do not, of means to detect the presence of the hepatitis no warranties of any kind or description nor course, preclude suits for damages caused by virus in blood, nor a practical method to strict tort liability shall be applicable there- negligence, and, ‘‘[w]ith strict liability effec- treat the blood to eliminate the danger of to, except as provided in Section 3 [which tively eliminated as a possible remedy [in hepatitis. Therefore, if the court deemed the imposes liability for negligence].’’ 53 transfusion cases], negligence remains the transfusion a sale, it would turn hospitals A subsequent Illinois case upheld the con- only viable alternative.’’ 61 ‘‘To recover into insurers of the risk of contaminated stitutionality of this statute, writing: ‘‘[I]t under a negligence cause of action a trans- blood, but if it deemed it a service, then was predicted at the time Cunningham was fusion-related AIDS victim must prove that H3384 CONGRESSIONAL RECORD — HOUSE May 19, 1998 a standard of care existed, that the defend- the HIV virus as not ‘‘unreasonably dan- The Senate bill, in others words, did apply ant’s conduct fell below that standards, and gerous.’’ It would be hard to think of any- to blood and blood products in strict liability that this conduct was the proximate cause of thing more unreasonably dangerous.’’68 and breach of warranty actions, although the plaintiff’s injury. Plaintiffs who have An advocate of the blood shield statutes these actions are precluded by all state laws, contracted AIDS through transfusions of could respond to these arguments by quoting except apparently in the limited instances blood and blood products have alleged neg- the justifications various courts have prof- noted on page 15 of this report.74 The Senate- ligence in both blood testing and donor fered for the statutes.69 passed bill did not apply in blood and blood screening.’’ 62 Finally, one commentator proposes: ‘‘The products that are the subject of negligence It is relevant to note here that, in 1985, the National Childhood Vaccine Injury Act actions. The House-passed bill did not apply Food and Drug Administration (FDA) li- (NCVIA) should serve as the structural in any suits involving blood or blood prod- censed the enzyme-linked immunsorbent model for ‘‘alternative legisla- ucts. assay (ELISA) test, which ‘‘has proven 98.6% tion.’’ . . . [P]otential claimants should The committee report that accompanied effective in detecting exposure to AIDS [in seek capped [no-fault] compensation in a the House bill states merely, with respect to blood], and when coupled with a second test, court of claims on waiver of potential tort the exclusion: ‘‘Tissue, organs, blood, and the Western Blot Analysis, the rate of detec- claims against blood products manufactur- blood products—that are human in origin— tion rises to 100%.’’ 63 The existence of this ers. Petitions should receive compensation .. . are explicitly excluded from the product test enables plaintiffs to argue that a failure from a fund financed by both congressional definition.’’ 75 The committee report that ac- to use this test constitutes negligence. A fed- appropriations and revenue raised through companied the Senate bill goes into more de- eral court of appeals wrote: ‘‘We believe that an industry tax based on the sale of blood tail: 76 ‘‘Claims for harm caused by tissue, or- 70 the FDA’s recommendation of February 19, products.’’ gans, blood and blood products used for The National Childhood Vaccine Injury 1985, that blood facilities begin testing all therapeutic or medical purposes are, in the Act of 1986,71 was enacted because Congress donated blood as soon as testing supplies be- view of most courts, claims for negligently feared that some vaccine manufacturers come commercially available imposed a duty performed services and are not subject to might leave the market, which could create on [the blood bank] to test all its blood sup- strict product liability.77 The Act thus re- a genuine health hazard in the United plies for antibodies to the AIDS virus.’’ 64 spects state law by providing that, in those States. The Act provides federal no-fault One commentator reports: ‘‘As the ramp- states, the law with respect to harms caused compensation to persons who suffer injury or ant spread of AIDS continues and its dev- by these substances will not be changed.78 In death from specified vaccines. It allows more astating effects, both socially as well as per- the past, however, a few states have held limited recovery than is generally allowed sonally, are being publicized, courts are that claims for these substances are subject against manufacturers under state tort law, weighing the consequences of the AIDS epi- to a standard of liability other than neg- but it was hoped that ‘‘the relative certainty demic against the necessity of assuring an ligence, and this Act does not prevent them and generosity of the system’s awards will adequate supply of blood. . . . In the past from doing so.79 See, e.g., Cunningham v. divert a significant number of potential several years, courts have started to rethink MacNeal Memorial Hosp., 266 N.E.2d 897 (Ill. plaintiffs from litigation.’’ 72 1970) (overturned by Ill. Ann. Stat. Ch. 1111⁄2, their position on denying recovery to vic- The Act established a National Vaccine In- sections 2 and 3).80 Such actions would be tims of AIDS-tainted transfusions. Several jury Compensation Program funded by a governed by the Act. . . .’’81 approaches [to proving negligence] have been manufacturers’ excise tax on certain vac- The conference committee version of H.R. utilized with some success. These approaches cines. Persons injured by a vaccine adminis- 956, as noted, adopted the Senate provision include: (1) failure of the blood supplier or tered after October 1, 1988, with claims of that dealt with blood and blood products (re- doctor to adequately warn the blood recipi- more than $1,000, may not sue the vaccine numbered as § 101(14)(B)). The joint explana- ent of the inherent dangers associated with a administrator or manufacturer unless they tory statement of the conference committee, blood transfusion [thus denying] the patient first file a petition in the United States did not, however, discuss the provision.82 the opportunity to make an informed choice; Court of Federal Claims for compensation 83 (2) inadequate screening of blood donors under the Program. Upon the filing of a peti- Recent settlement [thus] allowing high-risk individuals to con- tion, the court must issue a decision within On August 14, 1996, a federal judge gave tinue donating blood; and (3) using a blood a specified period. Under the Program, com- preliminary approval to a settlement be- transfusion when an alternate, safer method pensation is limited to actual reimbursable tween hemophiliacs infected with AIDS and 65 of sustaining life was available.’’ expenses, up to $250,000 for pain and suffering four pharmaceutical companies that alleg- Selected recommendations in the legal literature; and emotional distress, $250,000 in the event edly had manufactured blood clotting prod- The National Childhood Vaccine Injury Act of a vaccine-related death, actual and antici- ucts contaminated with HIV.84 Judge John F. of 1986 pated loss of earnings, and attorney’s fees Grady of the U.S. District Court for the One commentator writes: ‘‘Although abso- and other costs, but no punitive damages. Northern District of Illinois tentatively cer- lute protection for these entities [blood A petitioner dissatisfied with his recovery tified a settlement class, preliminarily ap- banks and blood product manufacturers] under the Program may reject it and file a proved the settlement agreement, and au- may have been logical or desirable when the tort suit (state statutes of limitations are thorized the parties to begin notifying class HIV virus was undetectable in blood, the bet- stayed during the pendency of the federal pe- members. ter view based on current medical and sci- tition), which is governed by state law, with The plaintiffs contended that the compa- entific knowledge would be to allow post-1985 some limitations, such as that there are re- nies sold tainted blood clotting products recipients of contaminated transfusions to buttable presumptions that manufacturers from 1978 until 1985, when new heat steriliza- recover under the theories of strict liability who comply with federal regulations are not tion procedures came into practice. Under and breach of warranty. This would place the subject to failure to warn suits or to puni- the settlement, each class member would re- burden on the blood banks and blood prod- tive damages. ceive $100,000, regardless of the number of ucts manufacturers to ensure the safety of Treatment of blood and blood products in 104th class members; the total number of class members reportedly could range as high as the products they distribute.’’ 66 Congress products liability legislation 10,000. A fairness hearing is scheduled before The same writer adds: ‘‘Moreover, court On May 2, 1996, President Clinton vetoed Judge Grady on November 25, 1996. and legislatures should distinguish between H.R. 956, 104th Congress, the Common Sense hospitals, blood banks, and blood products Product Liability Legal Reform Act of 1996. FOOTNOTES manufacturers. Blood banks, and especially On May 9, the House failed to override the 1 Sen. DeWine’s bill is substantially similar to H.R. blood products manufacturers, are active veto.73 The vetoed bill had been agreed upon players in the economic marketplace, selling 1023. in a House-Senate conference, which adopted 2 The bill indicates that Ricky Ray died at age 15 67 goods rather than providing services.’’ the Senate version of the provision that of hemophilia-associated AIDS. These views are echoed by another com- dealt with blood and blood products. 3 21 U.S.C. §§ 301 et seq. mentator: ‘‘While hospitals may be charac- Both the House and Senate versions ad- 4 42 U.S.C. § 262. terized as service-providers, it is merely a dressed blood and blood products in their re- 5 FDA regulations pertaining to blood products are legal fiction to so characterize blood and spective definitions of ‘‘product.’’ Section set forth at 21 C.F.R. Parts 600 [Biological products; blood products providers. To hold them lia- 108(8)(B) of the House-passed bill provided: general]; 601 [Licensing]; 606 [Good manufacturing ble only in negligence—and then to allow the ‘‘The term [‘‘product’’] does not include . . . practices for blood and blood products]; 607 [Estab- lishment registration and product listing for manu- blood industry itself to set the standard of ‘‘human tissue, human organs, human blood, facturers of human blood and blood products]; 610 care accepted in the community, thus requir- and human blood products.’’ [General biological products standards]; and, 640 ing innocent plaintiffs to shoulder an ex- Section 101(13)(B) of the Senate-passed bill, [Additional standards for human blood and blood traordinary burden of proof—violates all no- by contrast, provided: ‘‘The term ‘products’ products]. tions of fair play. It is time that blood prod- does not include . . . tissue, organs, blood, 6 21 U.S.C. § 321(g)(1) [Definitions; drug]. ucts purchased for a price, and particularly and blood products used for therapeutic or 7 According to an intra-agency agreement that dif- manufactured blood derivative products, be medical purposes, except to the extent that ferentiates drugs and biologics, biologics include: vaccines, allergens and in vivo diagnostic allergenic recognized for the products they are. Even such tissue, organs, blood, and blood prod- products; human blood and blood derived products; under the 402A comment k exception for ucts (or the provision thereof), are subject, immunoglobulin products; products composed of or ‘‘unavoidably unsafe’’ products, it would be under applicable State law, to a standard of intended to contact intact cells or intact microorga- unthinkable to term blood contaminated by liability other than negligence. . . .’’ nisms including viruses, bacteria, fungi, etc.; non- May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3385 antibiotic products that are proteins, peptides, or 52 Annotation, Liability of Blood Supplier or Donor [From the Committee to Study HIV Trans- carbohydrate products produced by cell culture; pro- for Injury or Death Resulting from Blood Trans- mission Through Blood and Blood Prod- tein products produced in animal body fluids by ge- fusion, 34 ALR4th 508, 513. ucts, Division of Health Promotion and netic alteration of the animal; venoms and their 53 745 Ill. Compiled Stat. Ann. 40/2 (Smith-Hurd). Disease Prevention, Institute of Medicine, constituents; synthetically produced allergenic 54 Glass v. Ingalls Memorial Hospital, 336 N.E.2d National Academy Press, Washington, products intended to specifically alter the immune 495, 499 (Ill. 1975). response to a specific antigen or allergen; and cer- D.C., 1995] 55 Andrew R. Klein, Beyond DES: Rejecting the Ap- tain drugs used in conjunction with blood banking plication of Market Share Liability in Blood Prod- HIV AND THE BLOOD SUPPLY: AN ANALYSIS OF or transfusion. ‘‘FDA’s Intercenter Agreement,’’ CRISIS DECISIONMAKING Treatise on Food and Drug Administration, James ucts Litigation, 68 Tulane Law Review 883, 915 (1994). O’Reilly, § 13.21 [Biological Products]. The citations to 44 of the 48 state blood shield stat- (By Lauren B. Leveton, Harold C. Sox, Jr., 8 42 U.S.C. § 262. utes appear in M. Stuart Madden, PRODUCTS LI- and Michael A. Stoto) 9 ABILITY (2d ed. 1988 & Supp. 1993) § 6.19 n.1. Min- The FDA is not authorized to mandate recalls. EXECUTIVE SUMMARY 10 21 C.F.R. § 600.10. nesota repealed its statute, Minn. Stat. § 525.928, in 11 21 C.F.R. § 600.80. 1991. A nation’s blood supply is a unique, life- 12 This also includes the licensing of foreign estab- 56 Dana J. Finberg, Blood Bank and Blood Products giving resource and an expression of its sense lishments and products. Manufacturer Liability in Transfusion-Related of community. In 1993, voluntary donors 13 Blood means whole blood collected from a single AIDS Cases, 26 University of Richmond Law Review gave over 14 million units of blood in the donor and processed either for transfusion or further 519, 524 (1992). United States (Wallace, et al. 1993). However, manufacturing. 57 Howell v. Spokane & Inland Empire Blood Bank, the characteristic that makes donated blood 14 Component means that part of a single donor 785 P.2d 815, 817 (Wash. 1990). an expression of the highest motives also unit of blood separated by physical or mechanical 58 Robert E. Cartwright and Jerry J. Phillips, means. makes it a threat to health. Derived from PRODUCTS LIABILITY (1986 & Supp. 1992) at § 4.03 15 Subpart F; 21 C.F.R. § 640.50. human tissue, blood and blood products can (Supp. p. 127). Of course, a blood supplier may avoid 16 42 U.S.C. § 262(d). effectively transmit infections such as hepa- this liability simply by not making warranties or 17 Id. titis, cytomegalovirus, syphilis, and malaria 18 Id.; Food and Drug Regulation, James O’Reilly, representations as to a product’s safety. from person to person (IOM 1992). In the 59 Finberg, supra note 56, at 525–526. § 13.22. early 1980s blood became a vector for HIV in- 19 60 JKB, SR., and VB v. Armour Pharmaceutical 21 C.F.R. Part 606. fection and transmitted a fatal illness to 20 The FDA is authorized to act via the misbrand- Company, 660 N.E.2d 602 (Ind. App. 1996). ing and adulteration sections of the FFDCA and can 61 Kathryn Glasgow Lofti, Suppliers of AIDS-Con- more than half of the 16,000 hemophiliacs in take various actions for enforcement under 21 U.S.C. taminated Blood Now Face Liability, 34 Howard Law the United States and over 12,000 blood § 357. Review 183, 196 (1991). transfusion recipients (CDC, MMWR; July 21 See, for example, Regulation of Biologics Manu- 62 Finberg, supra note 56, at 533. 1993). facturing: Questioning the Premise, Food and Drug 63 Id. at 521. Each year, approximately four million pa- Law Journal, Vol. 49, No. 1, 1994, pp. 213, 216. 64 Kirkendall v. Harbor Insurance Co., 887 F.2d 857, tients in the United States receive trans- 22 The Act was originally enacted in 1902 and reen- 861 (8th Cir. 1989). fusions of approximately 20 million units of acted in 1944 when the PHSA was enacted; codified 65 Lofti, supra note 61, at 200, 197. whole blood and blood components. The at 42 U.S.C. § 262. 66 Finberg, supra note 56, at 537. 23 blood for these products is collected from FDLJ, infra, at 216. 67 Id. 24 Reprinted in the Institute of Medicine’s [IOM] voluntary donors through a network of non- 68 Hall supra note 48, at 43. ‘‘HIV and the Blood Supply,’’ National Academy of profit community and hospital blood banks. 69 See, text accompanying notes 54 and 57, supra. Sciences, 1995, p. 41. Individuals with hemophilia depend upon 70 Klein, supra note 55, at 931, 932–933. The author 25 Id. of this proposal, however, would not allow a peti- blood coagulation products, called 26 Id. antihemophilic factor (AHF) concentrate, to 27 tioner to use the no-fault compensation scheme un- IOM, at p. 68. alleviate the effect of an inherited deficiency 28 Id. less he first ‘‘demonstrate[d] a diligent, but unsuc- 29 Id., at p. 70. AHF concentrate is manufactured cessful, effort to prove which manufacturer pro- in a protein that is necessary for normal from pools containing plasma from donors. duced the product that caused his infection. Thus, blood clotting. The AHF concentrate is man- 30 Id., at p. 73. only plaintiffs unable to prove traditional cause in ufactured from blood plasma derived from 31 H.R. 1023, § 2 (10). fact would use alternative legislation.’’ Id. at 933. 1,000 to 20,000 or more donors, exposing indi- 32 Id., at p. 73. 71 42 U.S.C. §§ 300aa et seq. The summary of the Act viduals with hemophilia to a high risk of in- 33 Id., at pp. 73–4. that follows draws heavily from Lester S. Jayson, fection by blood-borne viruses. 34 Id., at p. 74. Handling Federal Tort Claims: Administrative and The safety of the blood supply is a shared 35 Id., at p. 75. Judicial Remedies § 1.25 (1996). responsibility of many organizations includ- 36 Id., at p. 75–6. 72 H.R. Rep. No. 99–908, Part 1, 99th Cong., 2d Sess. ing the plasma fractionation industry, com- 37 IOM, at pp. 101–133. 13 (1986). 38 munity blood banks, the federal government, The FDA is authorized, or at times directed, to 73 For additional information see The Products Li- and others. The Food and Drug Administra- use advisory committees. The Federal Advisory ability Conference Committee Bill (CRS Rep. No. 96– Committee Act, FACA, is applicable to the FDA and 276 A). tion (FDA) has regulatory authority over defines ‘‘advisory committee’’ as any committee, 74 See, text accompanying note 48, supra. plasma collection establishments, blood board, commission, counsel, conference, panel task 75 H.R. Rep. No. 104–64, Part 1, 104th Cong., 1st Sess. banks, and all blood products. Since 1973, the force or, other similar group . . . which is estab- FDA has established standards for plasma lished by a statute, established or used by the Presi- 30 (1995). dent, or established or utilized by the one or more 76 The footnotes that accompany the following collection and plasma product manufacture agencies in the interest of obtaining advice or rec- quotation are all by the author of this memoran- and a system for licensing those who met ommendations.’’ 5 U.S.C. App. § 3. As discussed dum; they do not appear in the Senate report. standards. The Centers for Disease Control above, FDA regulations provide additional and spe- 77 This, of course, is because the blood shield stat- and Prevention (CDC) has responsibility for cific requirements for advisory committees, how utes generally preclude suits except in negligence. surveillance, detection, and warning of po- they are constituted, meetings, participation by in- 78 This statement does not explain the reluctance tential public health risks within the blood terested persons, and similar issues. to change negligence actions involving tissue, or- supply. The National Institutes of Health 39 IOM, at p. 121. gans, blood, and blood products, when there is no re- (NIH) supports these efforts through fun- 40 Id., at p. 127. luctance to change negligence actions involving 41 IOM, at p. 213. other products. Section 102(a)(1) of the bill provides damental research. During the 1950s and 42 Id., at p. 215. that the bill would apply to any product liability ac- 1960s, blood shield laws were adopted by 47 43 42 U.S.C. §§ 300aa et seq., discussed infra, at pp. tion (with exceptions not relevant here), and section states. These laws exempt blood and blood 18–19. 101(14) defines ‘‘product liability action’’ as ‘‘a civil products from strict liability or implied war- 44 To recover in a products liability suit, the plain- action brought under any theory [i.e., including neg- ranty claims on the grounds that they are a tiff must prove that the defect was present at the ligence] for harm caused by a product.’’ service rather than a product. The laws were time it left the hands of the defendant. If a defect 79 This is true, but does not explain why the bill was present at the time of manufacture, but a plain- developed on the premise that given the in- tiff sues a seller instead of the manufacturer, then would apply to strict liability actions involving tis- herently risky nature of blood and blood the seller may recover from the manufacturer any sue, organs, blood, and blood products, but not to products, those providing them required pro- damages it pays to the plaintiff. In the past decade, negligence actions involving those products. Wheth- tection if the blood system was to be a reli- almost half the states have enacted statutes making er the bill would apply to a particular type of suit able resource. product sellers other than manufacturers strictly is unrelated to the question of whether that type of As a whole, this system works effectively liable only when the manufacturer cannot be sued or suit may be brought. This is because the bill would to supply the nation with necessary blood would be unable to satisfy a judgment. See Fifty- affect only particular aspects of products liability and blood products, and its quality control State Surveys of Selected Products Liability Issues suit; it would not alter their nature as negligence, (CRS Report No. 95–300 A). breach of warranty, or strict liability suits. mechanisms check most human safety 45 123 N.E.2d 792 (N.Y. 1954). 80 This statute was renumbered as indicated in threats. The events of the early 1980s, how- 46 Id. at 794. note 53, supra. ever, revealed an important weakness in the 47 185 So.2d 749 (Fla. Dist. Ct. App. 1966), aff’d as 81 S. Rep. No. 104–69, 104th Cong., 1st Sess. 24 n.86 system—in its ability to deal with a new modified, 196 So.2d 115 (Fla. 1967). (1995). threat that was characterized by substantial 48 Terri S. Hall, Bad Blood: Blood Industry’s Immu- 82 H.R. Rep. No. 104–481, 104th Cong., 2d Sess. (1996). uncertainty. With intent to prepare the nity From Liability For Transfusion-Borne Disease, 83 The following is based on an article in 24 Prod- 12 Journal of Products Liability 25, 33 (1989). guardians of the blood supply for future ucts Safety & Liability Reporter 761 (Aug. 16, 1996). 49 266 N.E.2d 897 (Ill. 1970). threats concerning blood safety, the Depart- 84 Walker v. Bayer AG (N.D. Ill., MDL No. 93–C– 50 Hall, supra note 48. ment of Health and Human Services commis- 7452). 51 Cunningham, supra note 49, at 902. sioned the Institute of Medicine to study the H3386 CONGRESSIONAL RECORD — HOUSE May 19, 1998 transmission of HIV through the blood sup- for HIV in 1985, public health and blood in- transmitting hepatitis B. Although some ply. The Committee to Study HIV Trans- dustry officials became more certain that blood derivative products had been treated mission Through Blood and Blood Products AIDS was a blood-borne disease as the num- with heat to destroy live viruses since the undertook this assignment fully aware of the ber of reported cases of AIDS among hemo- late 1940s, Factor VIII and IX concentrates in advantages and dangers of hindsight. Hind- philiacs and transfused patients grew. As the United States were not subject to viral sight offers an opportunity to gain the un- their knowledge grew, these officials had to inactivation procedures until 1983 and 1984. If derstanding needed to confront the next decide about recall of contaminated blood this technology had been developed and in- threat to the blood supply. The danger of products and possible implementation of a troduced before 1980 to inactivate hepatitis B hindsight is unfairly finding fault with deci- surrogate test for HIV. Meetings of the virus and non-A, non-B hepatitis virus, fewer sions that were made in the context of great FDA’s Blood Products Advisory Committee individuals with hemophilia might have been uncertainty. in January, February, July and December infected with HIV. HISTORY 1983 offered major opportunities to discuss, Overall, the record of the plasma fractionators and the FDA with respect to The Risk of AIDS consider, and reconsider the limited tenor of the policies. the development and implementation of heat Starting with the identification of 26 ho- Despite these and other opportunities to treatment is mixed. The Committee’s analy- mosexual men with opportunistic diseases in review new evidence and to reconsider ear- sis focused on whether the basic knowledge June 1981, the CDC’s Morbidity and Mortality lier decisions, blood safety policies changed and technology for inactivating viruses in Weekly Report became the source for reports very little during 1983. Many officials of the AHF concentrate had been available before of the epidemic. By July 1982, enough cases blood banks, the plasma fractionation indus- 1980 and whether industry had appropriate had occurred with common symptomatology try, and the FDA accepted with little ques- incentives (from FDA, NIH, NHF, or others) to name the new disease ‘‘acquired immune tion estimates that the risk of AIDS was low to develop viral inactivation procedures. In deficiency syndrome’’ (AIDS). By January (‘‘one in a million transfusions’’), and they the Committee’s judgment, heat treatment 1983, epidemiological evidence from CDC’s in- accepted advice that control strategies (such processes to prevent the transmission of hep- vestigations strongly suggested that blood as automatic withdrawal of AHF concentrate atitis, an advance that would have prevented and blood products transmitted the agent lots containing blood from donors suspected many cases of AIDS in individuals with he- causing AIDS and that the disease could also of having AIDS, or a switch from AHF con- mophilia, might have been developed before be transmitted through intimate hetero- centrate to cryoprecipitate in mild or mod- 1980. For a variety of reasons (e.g., concern sexual contact. The conclusion that the erate hemophiliacs) would be ineffective, too about possible development of inhibitors and AIDS agent was blood-borne was based on costly, or too risky. During this period, higher costs), however, neither physicians two findings. First, AIDS was occurring in there were missed opportunities to learn caring for individuals with hemophilia nor transfusion recipients and individuals with from local attempts to screen potentially in- the Public Health Service agencies actively hemophilia who had received AHF con- fected donors or implement other control encouraged the plasma fractionation compa- centrate; these patients did not belong to strategies that had been rejected as national nies to develop heat treatment measures ear- any previously defined group at risk for con- policy. lier. The absence of incentives, as well as the tracting AIDS. Second, the epidemiologic Research Activities lack of a countervailing force to advocate pattern of AIDS was similar to hepatitis B, blood product safety, contributed to the From 1983 through 1985, research on AIDS another blood-borne disease. plasma fractionation industry’s slow rate of included epidemiological analysis to under- Immediate Responses to Evidence of Blood- progress toward the development of heat- stand patterns of spread and etiology, the Borne AIDS Transmission treated products. Once plasma fractionators search for methods to control or eliminate In the first months of 1983, the epidemio- developed inactivation methods, however, the disease, and evaluation of the efficacy of logical evidence that the AIDS agent was the FDA moved expeditiously to license potential safety measures such as surrogate blood-borne led to meetings and public and them. tests for the infection. Related research on private decisions that set the pattern of the methods to inactivate hepatitis B virus in Donor Screening and Deferral Policies blood industry’s response to AIDS, starting AHF concentrate had begun in the 1970s and The purpose of donor screening and defer- with a public meeting convened by the CDC came to fruition in the early 1980s. ral procedures is to minimize the possibility in Atlanta on January 4, 1983. Later that Scientists at the Pasteur Institute in Paris of transmitting an infectious agent from a month, the leading blood bank organiza- first isolated the retrovirus now known as unit of donated blood to the recipient of that tions, and, separately, the National Hemo- HIV–1 in 1983. Investigators at the National unit, as well as to ensure the welfare of the philia Foundation (NHF) and the blood prod- Institutes of Health (NIH) provided convinc- donor. Donor screening includes the identi- ucts industry, issued statements about pre- ing evidence that HIV–1 was the causative fication of suitable donors; the recruitment venting exposure to AIDS. In March 1983, the infectious agent of AIDS in 1984, and were of donors; and the exclusion of high-risk in- Assistant Secretary for Health promulgated also able to propagate HIV–1 in the labora- dividuals through methods and procedures the first official Public Health Services tory, thus providing the basis for a blood test used at the time of donation, such as ques- (PHS) recommendations for preventing to identify individuals infected by the virus. tionnaires, interviews, medical exams, blood AIDS, and the FDA codified safe practices Scientists at NIH isolated and characterized tests, and providing donors with the oppor- for blood and plasma collection. HIV in 1984. Viral inactivation methods for tunity to self-defer. Donor deferral is the The government and private agencies AHF concentrate were developed in labora- temporary or permanent rejection of a donor quickly identified, considered, and in some tories of the plasma fractionators, and the based on the results of the screening meas- cases adopted strategies for dealing with the FDA licensed the new processes quickly. Al- ures. risk of transmitting AIDS through blood and though the pace of viral inactivation re- By January 1983, in addition to suggesting blood products. The recommended safety search had been slow, it accelerated in the that the agent causing AIDS was transmit- measures, however, were limited in scope. 1980s, largely in response to hepatitis, and ted through blood and blood products and Examples include: questions to eliminate had identified effective strategies by 1984. could be sexually transmitted, the epidemio- high-risk groups such as intravenous drug However, research into other potential ways logical evidence also demonstrated that users, recent immigrants from Haiti, and to safeguard the blood supply such as the use there were several groups who had an in- those with early symptoms of AIDS or expo- of surrogate tests was not pursued vigor- creased risk of developing AIDS. The highest sure to patients with AIDS; direct questions ously, and there was relatively little re- incidence of the disease was in male homo- about high-risk sexual practices were gen- search on blood safety issues per se. sexuals, who donated blood frequently in erally not used. These questions reflected a FINDINGS some geographic regions. The Committee lack of consensus about the magnitude of the found that organizations implemented donor The Committee framed its approach by ex- threat, especially among physicians and pub- screening measures in different ways at dif- amining four topics that are essential com- lic health officials who had trouble inter- ferent times. Plasma collection agencies had ponents of a focused strategy for ensuring preting the unique epidemiological pattern begun screening potential donors and exclud- the safety of the blood supply: blood product of AIDS. The recommendations also re- ing those in any of the known risk groups as treatment, donor screening and deferral, reg- flected uncertainty about the benefits of early as December 1982, and CDC scientists ulation of removal of contaminated products identifying and deferring potentially in- suggested in January 1983 that blood banks from the market, and communication to fected blood and plasma donors, treatment of do likewise. Also in January, the blood- physicians and patients. blood products to inactivate viruses, recall banking organizations (the American Asso- of products derived from donors known to Product Treatment ciation of Blood Banks, the American Red have or suspected of having AIDS, and Plasma products can be treated by a vari- Cross, and the Council of Community Blood changes in transfusion practice and blood ety of physical and chemical processes to in- Center) issued a joint statement that rec- product usage. The costs, risks, and benefits activate viruses and thus to produce a prod- ommended the use of donor screening ques- of these and other potential control strate- uct free from contamination and relatively tions to detect early symptoms of AIDS or gies were uncertain. safe for transfusion. Shortly after the devel- exposure to AIDS patients. The statement, Opportunities to Reformulate Policy opment of the technology to manufacture however, did not advocate directly question- In the interval between the decisions of AHF concentrate, it was recognized that ing donors about their sexual preferences. early 1983 and the availability of a blood test these products carried a substantial risk of Blood banks did institute some screening May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3387 measures in early 1983, but only a few asked donor who was later found to have HIV. For Institutional barriers to patient-physician potential donors questions about homosexual each of these, the Committee posed a series communications and relationships between activities. At the same time, CDC scientists of hypotheses to explain the FDA’s actions. relevant organizations also impeded the flow also suggested that all blood and plasma col- These focused on the reach of the agency’s of information. If the NHF had received lection agencies employ an available surro- legal powers, the information available at input from a wider group of scientific and gate test for hepatitis B core antigen (anti- the time in relation to relevant public health medical experts, more explicit and system- HBc). Most blood and plasma collection considerations, the agency’s resources, the atic dissemination of a range of clinical op- agencies rejected this recommendation. Al- FDA’s institutional culture, the economic tions might well have been possible. In addi- though the precise impact of these two ac- costs of particular actions, and the prevail- tion, the financial and other relationships tions is not known, earlier implementation ing political climate. between the NHF and the plasma fraction- of either probably would have reduced the The analysis of these four events led the ation industry created a conflict of interest number of individuals infected with HIV Committee to identify several weaknesses in that seriously compromised the perceived through blood and blood products. In March the FDA’s regulatory approach to blood safe- independence of NHF’s recommendations. 1983 the PHS issued recommendations that ty issues. The agency’s March 1983 letters No organization stepped forward to com- identified high-risk individuals for AIDS and may have been unclear concerning whether municate widely the risks of blood trans- stated that these individuals should not do- all of their recommendations were required fusions to potential recipients. Many blood nate plasma or blood. to be implemented by the addressed. Han- bank officials during this period publicly de- Based on its review of the evidence, the dling of the case-by-case recall decision sug- nied that AIDS posed any significant risk to Committee found that decisionmakers in- gested that the agency lacked both the ca- blood recipients. In this context, and because volved with donor screening and deferral pacity to structure its advisory process ade- many transfusions occurred on an emergency acted with good intent in some instances. In quately and to analyze independently the basis, patients were typically not apprised of other instances, however, preference for the recommendations that were made to it. In the growing concerns about the contamina- status quo under the prevailing conditions of the Committee’s judgment, these and other tion of the blood supply. For both individ- uncertainty and danger led decisionmakers events indicate the need for a more system- uals with hemophilia and recipients of blood to underestimate the threat of AIDS for atic approach to blood safety regulation transfusion, physicians concern that their blood recipients. The Committee concluded when there is uncertainty and danger to the patients might refuse care deemed a ‘‘medi- that when confronted with a range of options public. cal necessity’’ further contributed to failure to inform them of the risks. for using donor screening and deferral to re- Communication to Physicians and Patients CONCLUSIONS duce the probability of spreading HIV As evidence accrued on the possibility that through the blood supply, blood bank offi- the blood supply was a vector for AIDS con- Decisionmaking Under Uncertainty cials and federal authorities consistently sumers of blood and blood products and their The events and decisions that the Commit- chose the least aggressive option that was physicians found themselves in a complex di- tee has analyzed underscore the difficulty of justifiable. In adopting this limited ap- lemma about how to reduce the risk of infec- personal and institutional decisionmaking proach, policymakers often passed over op- tion. Restricting or abandoning the use of when the stakes are high, when knowledge is tions that might have initially slowed the blood and blood products could lead to in- imprecise and incomplete, and when deci- spread of HIV to individuals with hemophilia creased mortality and morbidity. On the sionmakers may have personal or institu- and other recipients of blood and blood prod- other hand, continued use of these products tional biases. The Committee attempted to ucts, for example, by screening male donors apparently increased the risk of AIDS. The understand the complexities of the decision- for a history of sexual activity with other Committee investigated the processes by making process during this uncertain period males and screening donated blood for the which physicians and patients obtained in- and to develop lessons to protect the blood anti-HBc antibody. The Committee believes formation about the epidemic and the costs, supply in the future. In retrospect, the sys- that it was reasonable to require blood banks risks, and benefits of their clinical options. tem did not deal well with contemporaneous to implement these two screening procedures A wide range of clinical options were avail- blood safety issues such as hepatitis, and was in January 1983. The FDA’s failure to require able by late 1982 and might, in some in- not prepared to deal with the far greater this is evidence that the agency did not ade- stances, have reduced or eliminated depend- challenge of AIDS. quately use its regulatory authority and ence on AHF concentrate and there by re- Although enough epidemiological evidence therefore missed opportunities to protect the duce the risk of HIV transmission. As often has emerged by January 1983 to strongly sug- public health. happens in times of intense scientific and gest that the agent causing AIDS was trans- Regulations and Recall medical uncertainty such as in the early mitted through blood and blood products and The FDA is the principal regulatory agen- 1980s, individuals with hemophilia and trans- could be sexually transmitted to sexual part- cy with authority for blood and blood prod- fusion recipients had little information ners, the magnitude of the risk for trans- ucts, but it exercises its authority largely about risks, benefits, and clinical options for fusion and blood product recipients was not through informal action. Recall—the re- their use of blood and blood products. know at this time. Policymakers quickly de- moval of a product from the market—exem- The dramatic successes of treatment with veloped several clinical and public health op- plifies the relationship between the FDA’s AHF concentrate in the 1970s provided a con- tions to reduce the risk of AIDS trans- potent formal powers and its informal modus text in which thresholds for abandoning or mission. There was, however, substantial sci- operandi. Recall is a voluntary act under- radically restricting the use of these prod- entific uncertainty about the costs and bene- taken by the manufacturer but overseen by ucts for individuals with severe hemophilia fits of the available options. The result was the FDA, which has the authority to seize or were high. both physicians and individuals a pattern of responses which, while not in revoke the license of a product. Regulation with hemophilia express reluctance about re- conflict with the available scientific infor- of blood and blood products has been gen- turning to the era of clinical treatment be- mation, were very cautious and exposed the erally based on establishing a scientific con- fore the introduction of AHF concentrate. decisionmakers and their organizations to a sensus. Because the FDA’s resources are lim- The National Hemophilia Foundation (NHF) minimum of criticism. ited, it relies upon the blood industry and and physicians, in their effort to find the Blood safety is a shared responsibility of others for cooperation. The FDA’s Blood right balance between the risks and benefits many diverse organizations. They include Products Advisory Committee is a venue for of continued use of AHF concentrate, tended U.S. Public Health Service agencies such as consensus-building about blood regulatory to overweight the well-established benefits the CDC, the FDA, and the NIH, and private- policy. In an industry in which firm and of AHF concentrate and underestimate the sector organizations such as community product reputation is critical to market suc- risks of AIDS, which were still uncertain. blood banks and the American Red Cross, cess, the FDA’s collegial approach is usually In addition, the Committee found that pre- blood and plasma collection agencies, blood effective. vailing assumptions about medically accept- product manufacturers, groups like the Na- The Committee analyzed the FDA’s exer- able risks, especially regarding hepatitis, led tional Hemophilia Foundation, and others. cise of its regulatory powers by examining to complacency and a failure to act with suf- The problems the Committee found indicated how it acted during four critical events: (1) ficient concern upon reports of a new infec- a failure of leadership and inadequate insti- letters issued by the FDA in March 1983 re- tious risk. Ultimately, assumptions about tutional decision making process in 1983 and quiring particular practices related to donor medical decisionmaking practices in which 1984. No person or agency was able to coordi- screening and the segregation of high-risk patient played a relatively passive role led nate all of the organizations sharing the pub- plasma supplies; (2) a July 1983 decision not to failures to disclose completely the risk of lic health responsibility for achieving a safe to recall plasma products ‘‘automatically’’ using AHF concentrate and thereby did not blood supply. whenever they could be linked to individual enable individuals to make informed deci- Bureaucratic Management of Potential Crises donors who had been identified as having or sions of themselves. As the potential dimen- Federal agencies had the primary respon- as suspected of having AIDS; (3) a decision sions of the epidemic among individuals with sibility for dealing with the national emer- not to recall nontreated AHF concentrate hemophilia became clear, communication gency posed by the AIDS epidemic. The Com- when heat-treated AHF concentrate became between physicians and patients was further mittee scrutinized bureaucratic function available in 1983; and (4) a delay of years in compromised by physicians’ reticence to dis- closely and came to the following conclu- the FDA’s formal decision to recommend cuss the dire implications of widespread in- sions about the management of potential cri- tracing recipients of transfusions from a fection with their patients and families. ses. H3388 CONGRESSIONAL RECORD — HOUSE May 19, 1998 First, unless someone from the top exerts about the risks of AIDS. In the event of a science-based process to decide which kinds strong leadership, legal and competitive con- threat to the blood supply, the Public Health of adverse outcomes are caused by blood- cerns may inhibit effective action by agen- Service must, as in any public health crisis, borne pathogens and which individual cases cies of the federal government. Similarly, insist upon coordinated action. The Sec- of these adverse outcomes deserve compensa- when policymaking occurs against a back- retary of Health and Human Service is re- tion. As with vaccines, such a system could drop of a great deal of scientific uncertainty, sponsible for all the agencies of the Public be financed by a tax or fee paid by all manu- bureaucratic standard operating procedures Health Service,1 and therefore the Commit- facturers or by the ultimate recipients of designed for routine circumstances seem to tee makes—Recommendation 1: The Sec- blood products. However, had there been a take over unless there is a clear-cut deci- retary of Health and Human Services should no-fault compensation system in the early sion-making hierarchy. An effective leader designate a Blood Safety Director, at the 1980s, it could have relieved much financial will insist upon coordinated planning and level of a deputy assistant secretary or high- hardship suffered by many who became in- execution. Focusing efforts and responsibil- er, to be responsible for the federal govern- fected with HIV through blood and blood ities, setting timetables and agendas, and as- ment’s efforts to maintain the safety of the products in the United States. The no-fault suming accountability for expeditious action nation’s blood supply. principles outlined in this recommendation cannot be left to ordinary standard operat- To be effective in coordinating the various might serve to guide policymakers as they ing procedures. These actions are the respon- agencies of the PHS, the Blood Safety Direc- consider whether to implement a compensa- sibilities of the highest levels of the public tor should be at the level of a deputy assist- tion system for those infected in the 1980s. health establishment. ant secretary or higher, and should not be a The Centers for Disease Control and Prevention Second, the FDA and other agencies in the representative of any single PHS agency. The CDC has an indispensable role in pro- early 1980s lacked a systematic approach to In considering the history of the contami- tecting our nation’s health: to detect poten- conducting advisory committee processes. nation of the blood supply with HIV and the tial public health risks and sound the alert. These agencies should tell their advisory current surveillance, regulatory, and admin- In order to improve CDC’s efficacy in this committees what it expects from them, keep istrative structures for ensuring the safety critical role, the Committee makes—Rec- attention focused on high-priority topics, of our nation’s blood resources, the Commit- ommendation 4: Other federal agencies must and independently evaluate their advice. Be- tee became convinced that the nation needs understand, support, and respond to the cause mistakes will always be made and op- a far more responsive and integrated process CDC’s responsibility to serve as the nation’s portunities missed, regulatory structures to ensure blood safety. To this end, the Com- early warning system for threats to the must organize and manage their advisory mittee makes—Recommendation 2: The PHS health of the public. boards to assure both the reality and the should establish a Blood Safety Council to One way to begin to implement this rec- continuous appearance of propriety. assess current and potential future threats ommendation is for the Secretary of Health Third, agencies should not rely upon the to the blood supply, to propose strategies for and Human Services to insist that an agency entities they regulate for analysis of data overcoming these threats, to evaluate the re- that wishes to disregard a CDC alert should and modeling of decision problems. sponse of the PHS to these proposals, and to support its position with evidence that Fourth, agencies need to think far ahead. monitor the implementation of these strate- meets the same standard as that used by the They must monitor more systematically the gies. The Council should report to the Blood CDC in raising the alert. long-term outcomes of blood transfusion and Safety Director (see Recommendation 1). In order to carry out its early warning re- blood product infusion to anticipate both The Council should also serve to alert sci- sponsibility effectively, the CDC needs good new technologies and new threats to the entists about the needs and opportunities for surveillance systems. The Committee, be- safety of the blood supply. The Committee research to maximize the safety of blood and lieving that the degree of surveillance should believes that the Public Health Service blood products. The Blood Safety Council be proportional to the level of risk inherent should plan what it will do if there is a should take the lead to ensure the education in blood and blood products and should in- threat to the blood supply. It should specify of public health officials, clinicians, and the clude both immediate and delayed effects, actions that will occur once the level of con- public about the nature of threats to our na- makes Recommendation 5: The PHS should cern passes a specified threshold. The Com- tion’s blood supply and the public health establish a surveillance system, lodged in mittee favors a series of criteria or triggers strategies for dealing with these threats. the CDC, that will detect, monitor, and warn for taking regulatory or other public health The proposed Blood Safety Council would of adverse effects in the recipients of blood actions in which the response is proportional facilitate the timely transmission of infor- and blood products. to the magnitude of the risk and the quality mation, assessment of risk, and initiation of The Food and Drug Administration of the information on which the risk esti- appropriate action both during times of sta- mate is based. Taking on small steps allows The FDA has legal authority to protect the bility and during a crisis. The Council should safety of the nation’s blood supply, and it is for careful reconsideration of options, par- report to the Blood Safety Director (see Rec- ticularly as information about uncertain the lead federal agency in regulating blood ommendation 1). The Council would not re- banking practice, the handling of source risks unfolds. Not all triggering events need place the PHS agencies responsible for blood lead to drastic action; some may merely re- plasma, and the manufacture of blood prod- safety but would complement them by pro- ucts from plasma. The Committee’s rec- quire careful reconsideration of the options viding a forum for them to work together or obtaining new information. ommendations focus on decisionmaking and and with private organizations. The PHS the role of advisory committees in formulat- RECOMMENDATIONS agencies would be represented on the Coun- ing the FDA’s response to crises. The Committee’s charge was to learn from cil. In the Committee’s judgment, a more sys- the events of the early 1980s to help the na- The Blood Safety Council should consider tematic approach to blood safety regulation, tion prepare for future threats to the blood the following activities and issues: to delib- one that is better suited to conditions of un- supply. From the record assembled for this erate the need for a system of active surveil- certainty, is needed. In particular, the Com- study, the Committee identified potential lance for adverse reactions in blood recipi- mittee recommends (see Chapter 8) that the problems with the system in place at that ents; to establish a panel of experts to pro- PHS develop a series of criteria or triggers time and has identified some changes that vide information about risks and benefits, al- for taking regulatory or other public health might have moderated some of the effects of ternative options for treatment, and rec- actions for which the response is propor- the AIDS epidemic on recipients of blood and ommended best practices (see Recommenda- tional to the magnitude of the risk and the blood products. The federal and private orga- tion 13); and to investigate methods to make quality of the information on which the risk nizations responsible for blood safety and the blood products safer, such as double inac- estimate is based. In order that the perfect public health more generally will have to tivation processes and reduction of plasma not be the enemy of the good, the Committee evaluate their current polices and procedures pool size. makes—Recommendation 6: Where uncer- to see if they fully address the issues raised When a product or service provided for the tainties or countervailing public health con- by these recommendations. public good has inherent risks, the common cerns preclude completely eliminating po- The Public Health Service law tort system fails to protect the rightful tential risks, the FDA should encourage, and Several agencies necessarily play impor- interests of patients who suffer harms result- where necessary require, the blood industry tant, often differentiated, roles in managing ing from the use of those products and serv- to implement partial solutions that have lit- a public health crisis such as the contamina- ices. To address this deficiency, the Commit- tle risk of causing harm. tion of blood and blood products by the AIDS tee makes—Recommendation 3: The federal In all fields, decisionmaking under uncer- virus. The National Blood Policy of 1973 government should consider establishing a tainty requires an iterative process. As the charged the PHS (including the CDC, the no-fault compensation system for individ- knowledge base for a decision changes, the FDA, and the NIH) with responsibility for uals who suffer adverse consequences from responsible agency should reexamine the 2 protecting the nation’s blood supply. the use of blood or blood products. facts and be prepared to change its decision. The Committee has come to believe that a For such a no-fault system to be effective, The agency should also assign specific re- failure of leadership may have delayed effec- standards and procedures would have to be sponsibility for monitoring conditions and tive action during the period from 1982 to determined prospectively to guide its oper- identifying opportunities for change. In 1984. This failure led to less than effective ations. There needs to be an objective, order to implement these principles at the donor screening, weak regulatory actions, FDA, the Committee makes—Recommenda- and insufficient communication to patients Footnotes appear at the end of article. tion 7: The FDA should periodically review May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3389 important decisions that it made when it expert panel to inform the providers of care Madam Speaker, I, too, rise in strong was uncertain about the value of key deci- and the public about the risks associated support of H.R. 1023, the Ricky Ray He- sion variables. with blood and blood products, about alter- mophilia Relief Fund Act. Before I Although the FDA has a great deal of regu- natives to using them, and about treatments begin my statement, I want to ac- latory power over the blood products indus- that have the support of the scientific try, the agency appears to regulate by ex- record. knowledge and commend the fine work pressing its will in subtle, understated direc- One lesson of the AIDS crisis is that a of my colleague, the gentleman from tives. Taking this into account, the Commit- well-established, orderly decisionmaking Florida (Mr. PORTER GOSS). He has tee makes—Recommendation 8: Because reg- process is important for successfully manag- truly provided outstanding leadership ulators must rely heavily on the perform- ing a crisis. This applies as much to clinical in this particular issue. ance of the industry to accomplish blood decisionmaking as to the public health deci- Let me ask Members to imagine that safety goals, the FDA must articulate its re- sion process addressed by earlier rec- they are the parent of three fine sons, quests or requirements in forms that are un- ommendations. As the narrative indicates, each of whom has inherited the gene derstandable and implementable by regu- there are both public health and clinical ap- lated entities. In particular, when issuing in- proaches to reducing the risk of blood-borne for hemophilia. Now imagine, if you structions to regulated entities, the FDA diseases. The Blood Safety Council called for can, that each of your sons acquires should specify clearly whether it is demand- in Recommendation 2 would deal primarily the AIDS virus through a contami- ing specific compliance with legal require- with risk assessment and actions in the pub- nated blood transfusion. Two brothers ments or is merely providing advice for care- lic health domain that would reduce the die before age 40, and the third is very ful consideration. chance that blood products could be vectors sick. Among them, they have 9 chil- In the early 1980s, the FDA appeared too of infectious agents. The primary respon- dren, your grandchildren, all of whom reliant upon analyses provided by industry- sibility of the expert panel on best practices will be left fatherless. based members of the Blood Products Advi- called for in Recommendation 13 would be to sory Committee (BPAC). Thus the Commit- provide the clinical information that physi- At least one family in my district tee arrived at—Recommendation 9: The FDA cians and their patients need to guide their does not have to imagine what that should ensure that the composition of the individual health care choices. To be most would be like, Madam Speaker. They Blood Products Advisory Committee reflects effective, this panel should be lodged in the know, because this is precisely what is a proper balance between members who are Blood Safety Council (see Recommendation happening to them. Nor is their heart- connected with the blood and blood products 2) so that both bodies can interact and co- breaking story, unfortunately, unique. industry and members who are independent ordinate their activities in order to share in- I have received letters from people in of industry. formation about emerging risks and clinical Abingdon, Weymouth, Ducksbury, and An agency that is well-practiced in orderly options. decisionmaking procedures will be able to re- Recommendation 14: Voluntary organiza- other towns throughout Massachusetts spond to the much greater requirements of a tions that make recommendations about who have lost family members and crisis. This consideration leads to—Rec- using commercial products must avoid con- friends to hemophilia-associated AIDS. ommendation 10: The FDA should tell its ad- flicts of interest, maintain independent judg- Every death from AIDS is a tragedy visory committees what it expects from ment, and otherwise act so as to earn the that touches many lives. Yet, who can them and should independently evaluate confidence of the public and patients. fathom the sheer devastation that is their agendas and their performance. One of the difficulties with using experts visited on families such as these? The Advisory committees provide scientific ad- to give advice is the interconnections that enormity of their experience becomes vice to the FDA, but they do not make regu- experts accumulate during their careers. As latory decisions for the agency. The FDA’s a result, an expert may have a history of re- still more compelling when one learns lack of independent information and an ana- lationships that raise concerns about wheth- that the government, our government, lytic capability of its own meant that it had er he or she can be truly impartial when ad- could have acted to prevent it. little choice but to incorporate the advice of vising a course of action in a complex situa- In 1980 when the first Americans BPAC into its policy recommendations. To tion. One way to avoid these risks is to began to fall ill from the mysterious ensure the proper degree of independence be- choose some panelists who are not expert in ailment that would ultimately be tween the FDA and the BPAC, the Commit- the subject of the panel’s assignment but called AIDS, the technology became tee makes—Recommendation 11: The FDA have a reputation for expertise in evaluating should develop reliable sources of the infor- available to pasteurize blood-clotting evidence, sound clinical judgment, and im- agents. Yet, for 7 years the government mation that it needs to make decisions partiality. about the blood supply. The FDA should Financial conflicts of interest influence or- failed to require the blood products in- have its own capacity to analyze this infor- ganizations as well as individuals. The stand- dustry to make use of this technology, mation and to predict the effects of regu- ards for acknowledging, and in some cases nor did the government require the in- latory decisions. avoiding, conflicts of interest are higher dustry to inform the public about the Communication to Physicians and Patients than they were 12 years ago. Public health risks of contamination with HIV and One of the crucial elements of the system officials, the medical professions, and pri- other blood-borne pathogens. vate organizations must uphold this new, dif- for collecting blood and distributing blood b 1230 products to patients is the means to convey ficult standard. Failure to do so will threat- concern about the risks inherent in blood en the fabric of trust that holds our society As a result, at least 8,000 people with products. In today’s practice of medicine, in together. hemophilia and other blood-clotting contrast to that of the early 1980s, patients REFERENCES disorders contracted HIV/AIDS from and physicians each accept a share of respon- Centers for Disease Control, Morbidity and Mor- transfusions of contaminated sibility for making decisions. tality Weekly Report, July 23, 1993. Institute of Med- antihemophilic factor or AHF between In instances of great uncertainty, it is cru- icine, Emerging Infections. Washington, D.C.: Na- cial for patients to be fully apprised of the tional Academy Press, 1992. 1980 and 1987. This means that as many full range of options available and to become Wallace, E.L., et al. Collection and Transfusion of as 50 percent of all individuals who suf- active participants in the consideration and Blood and Blood Components in the United States. fer from blood-clotting disorders were Transfusion, vol. 33, 1993. evaluation of the relative risks and benefits exposed to HIV through their use of of alternative treatments. To encourage bet- FOOTNOTES AHF. ter communication, the Committee makes— 1 In the 1980s and now, the PHS agencies report to In 1995, an independent scientific re- Recommendation 12: When faced with a deci- the Assistant Secretary of Health. As this report was being written, the Department of Health and view conducted by the Institute of sion in which the options all carry risk, espe- Medicine concluded that this tragedy cially if the amount of risk is uncertain, Human Services has proposed to eliminate the office of the Assistant Secretary, so that the PHS agencies physicians and patients should take extra occurred because the government would report directly to the Secretary. failed to take the steps that could have care to discuss a wide range of options. 2 One Committee member (Martha Derthick) ab- Given the inherent risks and uncertainties stains from this recommendation because she be- prevented it. Some might argue that in all blood products, the public and provid- lieves that it falls outside of the Committee’s we cannot afford to do anything about ers of care need expert, unbiased information charge. that, but I believe we have an obliga- about the blood supply. This information in- Mr. SCOTT. Madam Speaker, I yield tion to acknowledge what happened cludes risks and benefits, alternatives to such time as he may consume to the and make restitution to the victims of using blood products, and recommended best distinguished gentleman from Massa- this disaster and their families. practices. In order to provide the public and providers of care with information they chusetts (Mr. DELAHUNT). This bill will not compensate them need, the Committee makes—Recommenda- Mr. DELAHUNT. Madam Speaker, I for the terrible harm that was done to tion 13: The Department of Health and thank the gentleman for yielding me them, nor will it begin to cover their Human Services should convene a standing the time. medical costs. But it will mean a great H3390 CONGRESSIONAL RECORD — HOUSE May 19, 1998 deal to them to know that their coun- stroyed by contamination from the Again, I want to commend the gen- try has not abandoned them. I am young children and some young adults tleman from Florida (Mr. GOSS) for his proud to be an original cosponsor of getting transfusions, blood trans- leadership on this issue and his diligent this bill and urge all of my colleagues fusions. I do think, and I agree with efforts in bringing H.R. 1023 to the to join in supporting it today. the gentleman that there is a public floor. I urge all of my colleagues to Mr. HYDE. Madam Speaker, I yield 1 health responsibility of our Federal lend their wholehearted support to pas- minute and 30 seconds to the gen- Government, and this is one of those sage of this important bill. tleman Arizona (Mr. HAYWORTH). major issues that, until we find medi- Mr. SCOTT. Madam Speaker, I re- Mr. HAYWORTH. Madam Speaker, I cal breakthroughs, we as a government serve the balance of my time. thank my colleague, the gentleman need to take the responsibility of en- Mr. HYDE. Madam Speaker, may I from Florida (Mr. GOSS), for his hard suring the availability of safe, virus- inquire how much time remains? work on this legislation. free blood. The SPEAKER pro tempore (Mrs. I am pleased to come to the well Mr. HYDE. Madam Speaker, I yield 3 EMERSON). The gentleman from Illinois today to speak in behalf of passage of minutes to the gentleman from Florida (Mr. HYDE) has 5 minutes remaining. this legislation because, Madam Speak- (Mr. BILIRAKIS). Mr. HYDE. Madam Speaker, I yield 2 er, I had a chance to listen to a young Mr. BILIRAKIS. Madam Speaker, I, minutes to the gentleman from Florida man from my State recount the very too, rise in strong support of H.R. 1023. (Mr. STEARNS). real difficulties that he confronted First and foremost, I want to com- Mr. STEARNS. Madam Speaker, I from receiving a transfusion of HIV- mend my colleague, the gentleman thank the gentleman for yielding me tainted blood. His name, Jeremy from Florida (Mr. GOSS), for his tireless this time. Storms. efforts to secure passage of this impor- I commend my colleague the gen- Jeremy lived the Scriptures in which tant measure. tleman from Florida (Mr. GOSS) for his he so fervently believed. He let his As chairman of the Subcommittee on vigilance in getting this legislation to light shine among men and, despite all Health and Environment of the Com- the floor. I also am an original cospon- the medical difficulties he encoun- mittee on Commerce, I am pleased to sor of the Ricky Ray Relief Act. I am tered, many times he traveled here to be an original cosponsor of the bill. deeply committed to seeing this bill As my colleagues have already noted, Washington to tell us of the challenges become public law. H.R. 1023 provides compassionate pay- he faced. He had a wisdom beyond his Madam Speaker, my involvement in ments to individuals with blood-clot- years. He would joke, you know, I used this issue began back in 1994 when I, ting disorders who contracted HIV due to be upset that I was a hemophiliac. too, was contacted by Gale and Randy to contaminated blood products. The Ellman. The Ellmans lost their son Now I wish it was the only problem I National Hemophilia Foundation esti- Eric Brandon when he was 14 years old. had. mates that nearly 8,000 individuals Jeremy passed away a few short Eric died as a result of infusing a clot- with hemophilia contracted HIV from months ago, but he did not live in vain. ting factor that was tainted with HIV. the Nation’s blood supply which be- His death is a double tragedy because For his mother and father and family came contaminated before the identi- and for countless other families, this fication of and development of tests to it could have been avoided. While we cannot bring back Ricky or House on this day at this hour ac- detect its presence. knowledges the role of the Federal These individuals and their families Eric, we can try today to rectify this Government in public health and, yes, were already burdened by the medical wrong. According to best estimates, in personal responsibility. costs of treating their blood-clotting about 8,000 hemophiliacs have been in- I would urge this body, adopt this disorders, and many have been finan- fected with HIV. This represents half legislation in memory of Ricky Ray, cially devastated by the costs associ- the hemophiliacs in the country. By Jeremy Storms and so many others. ated with HIV infection. This is a trag- passing this bill we are simply saying Mr. SCOTT. Madam Speaker, I yield edy, and I share the Foundation’s view that we acknowledge the government’s 2 minutes to the gentlewoman from that passage of this bill will serve to failure, through the FDA, to protect Texas (Ms. EDDIE BERNICE JOHNSON). rebuild trust in the Federal Govern- our Nation’s blood supply and regulate Ms. EDDIE BERNICE JOHNSON of ment in its essential role of protecting the sale of blood products. Texas. Madam Speaker, I rise in sup- the U.S. blood supply and blood prod- Will $100,000 make up for the pain and port of this bill. Having functioned as a ucts. suffering these families had to endure? registered professional nurse, I have A number of my constituents, includ- The answer is no. But what it will do is observed over the years persons who ing Margie and Johnny Kellar of Palm say to thousands of people so deeply af- are afflicted and need frequent trans- Harbor, have contacted me to urge en- fected by this tragedy that your gov- fusions are more subjected to the risk actment of this critical legislation. I ernment wants to right the wrong. of HIV than others on a normal basis. share the desire to secure prompt pas- The Ellmans called my office this This has been one of the viruses that sage of the bill, and I am pleased that morning to express their heartfelt has come along in our history that we the House is considering it today under gratitude for my support for this legis- have not found any way to conquer it. a suspension of the rules. lation and for my other colleagues’ That we must always be mindful of. As Members know, provisions of H.R. support. I say to the Ellmans and the Nothing is more important than as- 1023 which fall within the jurisdiction many other families so devastated by suring a family that when they have a of the House Committee on Commerce what has happened to them, it is the loved one that needs a transfusion it is were enacted last year as part of the very least we can do. free of viruses and any other bacteria. balanced budget law. Those provisions The SPEAKER pro tempore. The gen- We have gone a long way in that. We exempted the private settlement funds tleman from Virginia (Mr. SCOTT) has have had to deal with the virus of the from the calculation of income for the 111⁄2 minutes remaining. 1930s for pneumonia and the virus of purposes of determining Medicaid eligi- Mr. SCOTT. Madam Speaker, I re- polio for the 1950s. Now we are having bility. This language was designed to serve the balance of my time. to deal with another major virus, the ensure that those who accepted the pri- Mr. HYDE. Madam Speaker, I yield 2 HIV virus. vate settlement would not lose their minutes to the distinguished gen- So many people are so unaware of eligibility under the Medicaid program. tleman from Virginia (Mr. DAVIS). their risk for this disease, for the dis- My Subcommittee on Health and En- (Mr. DAVIS of Virginia asked and ease which the virus will cause. We vironment has jurisdiction over the was given permission to revise and ex- must do all that we can to protect the Medicaid provisions, and I was pleased tend his remarks.) general public, and this bill goes a long to secure their enactment as part of Mr. DAVIS of Virginia. Madam way in protecting the hemophiliacs be- the 1997 balanced budget law. Speaker, I rise today to voice my cause they can not get around having The measure before us today extends strong support for H.R. 1023, the Ricky the transfusions. similar protections to recipients of Ray Hemophilia Relief Fund Act. I have observed too many families, Supplemental Security Income bene- As an original cosponsor in both this heterosexual, intact families be de- fits. Congress and the 104th Congress, I am May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3391 enormously proud that we have been In his short life, Ricky witnessed the bill to provide compassionate payments to in- able to bring this bill to the floor in a prejudice and fear which surrounded dividuals with blood-clotting disorders such as, bipartisan manner with the support hemophilia, AIDS particularly, in its Hemophilia, who contracted the HIV virus due and cosponsorship of over 270 Members. first decade but which is still all too to contaminated blood. The gentleman from Florida (Mr. common today. He had hemophilia, but My colleagues, children, especially minority GOSS) has done a tremendous job in he contracted AIDS and was the victim children, are one of the most rapidly increas- garnering support for the Ricky Ray of much discrimination. He and his ing segments of our population being infected Act and ensuring that it come before family watched their home burn down with HIV. And, in all cases they are the inno- the full House today. because neighbors were afraid of his ill- cent victims. Any legislation which helps to im- I also express my appreciation to the ness. prove the quality of life of these children is chairman of the Committee on the Ju- b 1245 worthy of all of our support. diciary, the gentleman from Illinois Prevention programs, while available to all, His family struggled with the tre- (Mr. HYDE), as well. often do not reach out to the most needy pop- I also want to recognize the hard mendous financial burden of providing ulations. Where we most need to improve our work of the students at the Robinson for a child with hemophilia and AIDS. effort in this regard, is in making sure that the Secondary School in Fairfax, Virginia, Ricky’s parents saw their son pass treatments which have been developed and on behalf of the thousands of hemo- away as they confronted the limits of proven to improve lives and health, are made philiacs suffering from AIDS. They treatment to fight the HIV disease. accessible to all who need it. This bill does it. Each of these aspects of Ricky’s life have dedicated themselves over the As a family physician who has treated sev- is important to remember today: The past couple of years to winning passage eral patients with hemophilia, I am pleased to prejudice, the crushing financial bur- of this legislation and are now witness- support H.R. 1023 and urge all my colleagues den, the hope for cures which have yet ing that democracy does work. to do so as well. to come, and the inspiring courage and As my colleagues know, this legisla- Ms. JACKSON-LEE of Texas. Madam compassion of this young man, his fam- tion is named for Ricky Ray, a young Speaker, as Chair of the Children's Congres- ily and friends. This was Ricky’s story, boy from Florida who died in 1992 of he- sional Caucus, and a co-sponsor of this bill, I and it is the story of thousands of mophilia-related AIDS that he con- want to take a few minutes to speak about the other people, many of whom have died, tracted through the use of blood-clot- importance of this issue and this bill. many are living today with hemo- H.R. 1023 is named after Ricky Ray, a child ting products. Approximately one-half philia, HIV and AIDS. victim of hemophiliac associated AIDS. Like of all hemophilia sufferers were in- The resources that Congress can pro- thousands of others, Ricky Ray became in- fected with HIV through the use of vide will not solve the tragedy of he- fected with HIV through the use of contami- blood-clotting products between 1980 mophilia and AIDS for Ricky Ray and nated blood products. Ricky brought national and 1987. The Federal Government has others like him, but they will help in- attention to this tragedy before he died from a shared responsibility for this tragedy dividuals, families and communities AIDS at age 15, 1992. because it failed to fulfill its respon- begin to recover from the calamity The Ricky Ray Hemophilia Relief Fund Act sibility to protect the Nation’s blood that has befallen them. Whether the will not only acknowledge the federal govern- supply and to regulate the safety of Federal Government acted appro- ment's unique responsibility to protect the na- blood products. priately to protect blood clotting prod- tion's blood supply, it will also provide recogni- The Ricky Ray bill gives a one-time ucts in the 1980s is not the issue today. tion to and some small solace to those living payment of $100,000 each to about 7,200 At issue now is providing assistance to with hemophilia related HIV and their families. hemophiliacs, about half of whom are individuals and families who have been Almost 50% of the U.S. hemophilia population still surviving, who were infected with forced to confront a personal and finan- has been infected with HIV through tainted the AIDS virus from blood-clotting cial crisis brought by two debilitating blood products. This bill will also authorize a agents between July 1, 1982, and De- diseases. $750 million dollar fund to provide compas- cember 31, 1987. It also implements a The Federal Government must do sionate assistance to individuals struggling sunset provision after 5 years from the many things to respond to the AIDS with the emotional and financial costs of this date of the bill’s enactment. epidemic and to hemophilia. It must disease. Passage of this legislation will mark protect the Nation’s blood supply; pro- In my home state of Texas, AIDS was the a defining and critical moment in the vide prevention interventions; in the sixth leading cause of death among young lives of many innocent AIDS sufferers, case of HIV-AIDS, fund research to find people aged 13±24, and currently worldwide not because of the relatively small a cure and a vaccine; and support approximately 775,000 Americans are infected amount of money they receive but be- health care and needed services for with the HIV virus. cause of the peace they and their fami- those who are ill. Although we can never fully compensate the lies will have in knowing that their But as with other major catas- victims and families of those who are living government has taken responsibility trophes, the Federal Government also with hemophilia related AIDS and HIV, we for what happened to them and is at- must provide the resources which help must show our compassion and our recogni- tempting to compensate them for their families and communities take the tion of their plight, through the legislation here suffering to the extent that we are able first steps toward recovery. For that I today. to do so. am grateful to the gentleman from Ms. FURSE. Madam Speaker, I rise today I strongly urge all of my colleagues Florida (Mr. GOSS) for his leadership, in support of H.R. 1023, the Ricky Ray Hemo- to vote in favor of the Ricky Ray bill. to the gentleman from Virginia (Mr. philia Relief Fund Act. I want to congratulate Mr. SCOTT. Madam Speaker, I yield SCOTT) for his participation in this, as my colleague, Mr. GOSS, for his hard work and 4 minutes to the gentlewoman from well as the gentleman from Illinois relentless efforts to pass this bill through the California (Ms. PELOSI). (Mr. HYDE) and others, and I urge my House. Ms. PELOSI. Madam Speaker, I colleagues to support H.R. 1023. In 1994, shortly after I was first elected to thank my colleague from Virginia for Mr. HYDE. Madam Speaker, I have the House, a constituent of mine named Kath- yielding me this time. no further requests for time, and I erine Royer brought to my attention the plight I rise in strong support of the Ricky yield back the balance of my time. of people with hemophilia who became in- Ray Hemophilia Relief Fund Act. I Mr. SCOTT. Madam Speaker, I yield fected with HIV through tainted blood prod- want to commend our colleague, the myself such time as I may consume ucts. Many of these people were children. gentleman from Florida (Mr. GOSS), for just to thank the gentleman from Flor- Until I met Katherine, I had no idea that over his leadership and compassion in bring- ida (Mr. GOSS) for his hard work on 7000 people with hemophilia had become in- ing this legislation to the floor as a this, the gentleman from Illinois (Mr. fected with HIV, and their already complicated sponsor of this bill. HYDE) for his leadership, and the gen- lives were getting even more difficult. Her fam- The life of the boy who gave his name tleman from North Carolina (Mr. ily's story was powerful, and Katherine has re- to this legislation should remind all of WATT), whose subcommittee considered lentlessly pursued this issue in her community us of the many different tragedies and this. and with her elected officials. demonstrations of courage and compas- Ms. CHRISTIAN-GREEN. Madam Speaker, I strongly support H.R. 1023 because it ac- sion the AIDS epidemic has brought us. I rise today in strong support of H.R. 1023, a knowledges that the government must protect H3392 CONGRESSIONAL RECORD — HOUSE May 19, 1998 the nation's blood supply, and provides assist- In 1995, the Institute of Medicine conducted SEC. 2. LOAN GUARANTEE FOR MULTIFAMILY TRANSITIONAL HOUSING FOR HOME- ance to the victims of this tragedy. With yearly an independent review which concluded that LESS VETERANS. medical costs of over $150,000, and a lack of the system designed to ensure the safety of (a) IN GENERAL.—Chapter 37 of title 38, legal options, many of the affected families blood and blood products had been ill-pre- United States Code, is amended by adding at have been devastated financially. While this pared to deal with the dangers of blood-borne the end the following new subchapter: bill can not bring back loved ones, it can pro- viruses and had failed to protect the public ‘‘SUBCHAPTER VI—LOAN GUARANTEE vide those who are still living with some de- health. As a result, thousands of Americans FOR MULTIFAMILY TRANSITIONAL gree of financial relief. In addition, it recog- with hemophilia became infected with HIV HOUSING FOR HOMELESS VETERANS nizes, finally, the tragedy that occurred and through the use of these contaminated blood ‘‘§ 3771. Definitions the impact it had on the entire hemophilia products. ‘‘For purposes of this subchapter— community. The portion of the legislation that came be- ‘‘(1) the term ‘veteran’ has the meaning I thank Katherine for bringing this issue to fore the Ways and Means Committee ensures given such term by paragraph (2) of section my attention, and am pleased that H.R. 1023 that payments to people with hemophilia who 101; is finally on the floor of the House. I strongly ‘‘(2) the term ‘homeless veteran’ means a contracted HIV from tainted blood products will veteran who is a homeless individual; and urge all my colleagues to support it. be tax-free and not threaten benefits under the Mr. SHAW. Madam Speaker, I strongly sup- ‘‘(3) the term ‘homeless individual’ has the Supplemental Security Income (SSI) system. same meaning as such term has within the port H.R. 1023, the ``Ricky Ray Hemophilia While no amount of money in the world can fix meaning of section 103 of the Stewart B. Relief Fund Act of 1998.'' this tragedy, Congress must do all it can to McKinney Homeless Assistance Act (42 H.R. 1023, sponsored by my friend PORTER make certain that the SSI benefits of these in- U.S.C. 11302). GOSS, is named for Ricky Ray, a 15 year old dividuals living with two chronic and expensive ‘‘§ 3772. General authority Florida hemophiliac who died in 1992. This bill diseases remain unchanged. ‘‘(a) The Secretary may guarantee the full represents the best of what government can Finally, I want to commend: Congressman or partial repayment of a loan that meets do to help needy families struggling to over- GOSS; Chairmen HYDE and BLILEY; the Na- the requirements of this subchapter. come personal tragedy. From some, including tional Hemophilia Foundation (NHF); Ray ‘‘(b)(1) Not more than 15 loans may be guaranteed under subsection (a), of which for the bill's namesake, H.R. 1023 comes too Stenhope, a Houstonian who is Past-President late to provide help. But for many others it will not more than 5 such loans may be guaran- of NHF; Dr. Keith Hoots and the folks at the teed during the 3-year period beginning on provide welcome relief, and I am proud not Gulf States Hemophilia Treatment Center at only to be an original cosponsor, but also to the date of enactment of the Veterans Tran- Hermann Hospital in Houston; and everyone sitional Housing Opportunities Act of 1998. have helped H.R. 1023 progress through the else who worked long and hard to bring this ‘‘(2) A guarantee of a loan under subsection Ways and Means Committee to the House legislation before the House of Representa- (a) shall be in an amount that is not less floor today. tives. While I realize that these courageous in- than the amount necessary to sell the loan Even though the bill was first marked up by dividuals and their families will have to con- in a commercial market. the Judiciary Committee, an important compo- ‘‘(3) Not more than an aggregate amount of tinue to live with the horrors of this tragedy, I nent is the promise H.R. 1023 would keep by $100,000,000 in loans may be guaranteed under hope that this bill will at least bring them some continuing Supplemental Security Income subsection (a). (SSI) benefits to needy individuals, which falls comfort. ‘‘(c) A loan may not be guaranteed under Mr. SCOTT. Madam Speaker, I have this subchapter unless, prior to closing such under the jurisdiction of the Committee on no further requests for time, and I loan, the Secretary has approved such loan. Ways and Means and the Subcommittee on yield back the balance of my time. ‘‘(d)(1) The Secretary shall enter into con- Human Resources that I chair. These critical The SPEAKER pro tempore (Mrs. tracts with a qualified nonprofit organiza- tion to obtain advice in carrying out this benefits will remain available despite a recent EMERSON). The question is on the mo- subchapter, including advice on the terms settlement and also new federal funds that tion offered by the gentleman from Illi- otherwise would disqualify hemophiliacs who and conditions necessary for a loan that nois (Mr. HYDE) that the House suspend contracted the AIDS virus through tainted meets the requirements of section 3773. the rules and pass the bill, H.R. 1023, as ‘‘(2) For purposes of paragraph (1), a quali- blood products in the 1980s from continued amended. fied nonprofit organization is a nonprofit or- SSI eligibility. There is ample precedent for The question was taken; and (two- ganization— SSI to ignore such payments, and I can thirds having voted in favor thereof) ‘‘(A) described in paragraph (3) or (4) of scarcely think of a more worthy class than this the rules were suspended and the bill, subsection (c) of section 501 of the Internal limited number of hemophiliacs, many of them as amended, was passed. Revenue Code of 1986 and exempt from tax children at the time, who have been afflicted The title was amended so as to read: under subsection (a) of such section, and ‘‘(B) that has experience in underwriting with the AIDS virus. The Congressional Budg- ‘‘A bill to provide for compassionate et Office has told us the cost is minimal, espe- transitional housing projects. payments with regard to individuals ‘‘(e) The Secretary may carry out this sub- cially when compared with the tragedy these with blood-clotting disorders, such as chapter in advance of the issuance of regula- individuals and their families have already ex- hemophilia, who contracted human im- tions for such purpose. perienced. munodeficiency virus due to contami- ‘‘(f) The Secretary may guarantee loans Another important feature of the bill is that nated antihemophilic factor, and for under this subchapter notwithstanding any it would exempt the payments from federal in- requirement for prior appropriations for such other purposes.’’. come taxes. Chairman BILL ARCHER summa- A motion to reconsider was laid on purpose under any provision of law. rized the issue well when the Committee on the table. ‘‘§ 3773. Requirements Ways and Means unanimously approved H.R. ‘‘(a) A loan referred to in section 3772 f 1023 last month: ``No amount of money in the meets the requirements of this subchapter world can fix this tragedy, but we want to VETERANS TRANSITIONAL HOUS- if— make sure that the federal payments are treat- ING OPPORTUNITIES ACT OF 1998 ‘‘(1) the loan is for— ‘‘(A) construction of, rehabilitation of, or ed as tax-free, as they should be, and that Mr. STUMP. Madam Speaker, I move SSI benefits stay unchanged for these inno- acquisition of land for a multifamily transi- to suspend the rules and pass the bill tional housing project described in sub- cent victims. They've been through enough as (H.R. 3039) to amend title 38, United section (b), or more than one of such pur- it is.'' States Code, to authorize the Secretary poses; Madam Speaker, I commend Congressman of Veterans Affairs to guarantee loans ‘‘(B) refinancing of an existing loan for GOSS for his diligence in pressing for passage to provide multifamily transitional such a project; of this important bill, and urge all of our col- housing for homeless veterans, and for ‘‘(C) financing acquisition of furniture, leagues to support it. equipment, supplies, or materials for such a other purposes, as amended. project; or Mr. ARCHER. Madam Speaker, I rise today The Clerk read as follows: in support of H.R. 1023, the Ricky Ray Hemo- ‘‘(D) in the case of a loan made for pur- H.R. 3039 philia Relief Act. As an original cosponsor to poses of subparagraph (A), supplying such or- Be it enacted by the Senate and House of Rep- the legislation introduced by my friend and col- ganization with working capital relative to resentatives of the United States of America in such a project; league, PORTER GOSS, I believe that H.R. Congress assembled, ‘‘(2) the loan is made in connection with 1023 takes a positive step in addressing a SECTION 1. SHORT TITLE. funding or the provision of substantial prop- great wrong that was committed affecting This Act may be cited as the ‘‘Veterans erty or services for such project by either a seven thousand Americans; over half of the Transitional Housing Opportunities Act of State or local government or a nongovern- hemophilia community. 1998’’. mental entity, or both; May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3393 ‘‘(3) the maximum loan amount does not project with respect to which a loan is guar- can return to society as productive exceed the lesser of— anteed under this subchapter, there shall be citizens if they are provided with an ‘‘(A) that amount generally approved (uti- an annual, independent audit of such oper- appropriate continuum of care. The lizing prudent underwriting principles) in ation. Such audit shall include a detailed program established under H.R. 3039 the consideration and approval of projects of statement of the operations, activities, and similar nature and risk so as to assure re- accomplishments of such project during the will provide the sanctuary, support and payment of the loan obligation; and year covered by such audit. The party re- services necessary to achieve this goal. ‘‘(B) 90 percent of the total cost of the sponsible for obtaining such audit (and pay- I want to thank the chairman of the project; ing the costs therefor) shall be determined full committee, the gentleman from ‘‘(4) the loan is of sound value, taking into before the Secretary issues a guarantee Ohio (Mr. STOKES) for his help in the account the creditworthiness of the entity under this subchapter.’’. development of this legislation. I also (and the individual members of the entity) (b) CLERICAL AMENDMENT.—The table of want to commend the chairman of the applying for such loan; sections at the beginning of chapter 37 of ‘‘(5) the loan is secured; and title 38, United States Code, is amended by Subcommittee on Benefits of the Com- ‘‘(6) the loan is subject to such terms and adding at the end the following new items: mittee on Veterans’ Affairs, the gen- conditions as the Secretary determines are ‘‘SUBCHAPTER VI—LOAN GUARANTEE tleman from New York (Mr. JACK reasonable, taking into account other hous- FOR MULTIFAMILY TRANSITIONAL QUINN), and the ranking Democrat on ing projects with similarities in size, loca- HOUSING FOR HOMELESS VETERANS the committee, the gentleman from tion, population, and services provided. ‘‘3771. Definitions. California (Mr. BOB FILNER), for their ‘‘(b) For purposes of this subchapter, a ‘‘3772. General authority. multifamily transitional housing project re- hard work on these issues. Their coop- ‘‘3773. Requirements. erative bipartisan efforts have resulted ferred to in subsection (a)(1) is a project ‘‘3774. Default. that— ‘‘3775. Audit.’’. in a bill that is good for the veterans of ‘‘(1)(A) provides transitional housing to this country. I urge my colleagues to The SPEAKER pro tempore. Pursu- homeless veterans, which housing may be support H.R. 3039. ant to the rule, the gentleman from Ar- single room occupancy (as defined in section Madam Speaker, I reserve the bal- izona (Mr. STUMP) and the gentleman 8(n) of the United States Housing Act of 1937 ance of my time. from Illinois (Mr. EVANS) each will con- (42 U.S.C. 1437f(n))); Mr. STUMP. Madam Speaker, I yield ‘‘(B) provides supportive services and coun- trol 20 minutes. such time as he may consume to the selling services (including job counselling) at The Chair recognizes the gentleman gentleman from New York (Mr. QUINN), the project site with the goal of making such from Arizona (Mr. STUMP). veterans self-sufficient; the chairman of the Subcommittee on GENERAL LEAVE ‘‘(C) requires that the veteran seek to ob- Benefits of the Committee on Veterans’ Mr. STUMP. Madam Speaker, I ask tain and keep employment; Affairs. ‘‘(D) charges a reasonable fee for occupying unanimous consent that all Members Mr. QUINN. Madam Speaker, I thank a unit in such housing; may have 5 legislative days within the gentleman for yielding me this ‘‘(E) maintains strict guidelines regarding which to revise and extend their re- time. sobriety as a condition of occupying such marks, and include extraneous mate- H.R. 3039 is a bill to provide a VA unit; and rial on H.R. 3039, as amended. ‘‘(F) may include space for neighborhood loan guarantee for transitional housing The SPEAKER pro tempore. Is there for homeless veterans. In testimony be- retail services or job training programs; and objection to the request of the gen- ‘‘(2) may provide transitional housing to fore our Subcommittee on Benefits veterans who are not homeless and to home- tleman from Arizona? here in Washington, D.C., as well as less individuals who are not veterans if— There was no objection. Mr. STUMP. Madam Speaker, I yield testimony at a hearing held in Buffalo, ‘‘(A) at the time of taking occupancy by New York, in my district, witness after any such veteran or homeless individual, the myself such time as I may consume. transitional housing needs of homeless veter- (Mr. STUMP asked and was given witness said that the major stumbling ans in the project area have been met; permission to revise and extend his re- block to providing services to homeless ‘‘(B) the housing needs of any such veteran marks.) veterans is the inability to obtain sta- or homeless individual can be met in a man- Mr. STUMP. Madam Speaker, H.R. ble funding. H.R. 3039 is intended to ad- ner that is compatible with the manner in 3039 is the Veterans Transitional Hous- dress this obstacle, thereby increasing which the needs of homeless veterans are the supply of transitional housing for met under paragraph (1); and ing Opportunity Act of 1998. It author- izes the VA to guarantee home loans homeless veterans. ‘‘(C) the provisions of subparagraphs (D) It is fairly common knowledge that and (E) of paragraph (1) are met. for multi-unit transitional housing for ‘‘(c) In determining whether to guarantee a homeless veterans. The bill also re- veterans comprise about one-third of loan under this subchapter, the Secretary quires homeless projects using these homeless adults in this country, and shall consider— loans to work with VA health care fa- that a high percentage of the homeless ‘‘(1) the availability of Department of Vet- cilities as well as State and local au- suffer from substance abuse and mental erans Affairs medical services to residents of thorities. Additionally, it requires resi- illness. Four years ago the Congress the multifamily transitional housing called for programs serving homeless project; and dents to seek and obtain employment ‘‘(2) the extent to which needs of homeless and maintain sobriety. veterans to receive a proportional veterans are met in a community, as as- The bill is based on a model that share of funding for the homeless. Un- sessed under section 107 of Public Law 102– stresses personal responsibility, addic- fortunately, that has not happened. 405. tion recovery and work. The project Moreover, there appears to be a niche ‘‘§ 3774. Default must provide supportive services, so- that is not being filled in the contin- ‘‘(a) The Secretary shall take such steps as briety, personal and job counseling. uum of service necessary to move may be necessary to obtain repayment on Residents are required to pay a reason- chronically affected veterans from any loan that is in default and that is guar- able fee for their residence. being a drain on society to being pro- anteed under this subchapter. ductive citizens. That niche is transi- ‘‘(b) Upon default of a loan guaranteed Many committee members have con- under this subchapter and terminated pursu- tributed to this bill from both sides of tional housing. ant to State law, a lender may file a claim the aisle and we appreciate that very H.R. 3039 authorizes loans for transi- under the guarantee for an amount not to ex- much. tional housing programs that will pro- ceed the lesser of— Madam Speaker, I reserve the bal- vide a supportive and structured envi- ‘‘(1) the maximum guarantee; or ance of my time. ronment for our homeless veterans. ‘‘(2) the difference between— Mr. EVANS. Madam Speaker, I yield The bill has the following features: ‘‘(A) the total outstanding obligation on myself such time as I may consume. The VA would be authorized to guar- the loan, including principal, interest, and I am pleased to be an original cospon- antee up to 15 loans for multi-unit expenses authorized by the loan documents, through the date of the public sale (as au- sor of H.R. 3039, the Veterans Housing transitional housing for homeless vet- thorized under such documents and State Opportunities Act of 1998. This bill will erans, but the VA could not guarantee law); and furnish yet another tool to meet the more than 5 loans in the first 3 years of ‘‘(B) the amount realized at such sale. housing and supportive service needs of the program. The aggregate value of ‘‘§ 3775. Audit homeless veterans. the loans is capped at $100 million. ‘‘During each of the first 3 years of oper- Many of these men and women, who The bill requires VA to obtain advice ation of a multifamily transitional housing once served their country with honor, in administering the program from a H3394 CONGRESSIONAL RECORD — HOUSE May 19, 1998 not-for-profit corporation experienced that one-third of the homeless men in Department of Veterans Affairs, with in developing these kinds of programs. this country are veterans. In my home- its new drive towards efficiency and This approach obviates the need for the town of San Diego, it is estimated that outpatient care, has been unable to VA to develop additional staff or exper- 40 to 50 percent of the homeless are meet those needs. This bill directs the tise, and should enable the VA to man- veterans. VA to guarantee the full or partial re- age the program within its existing re- I am very troubled that this very dif- payment of 15 loans to community- sources. ficult problem never seems to get bet- based organizations, with a maximum The borrowers must work with VA ter. The number of homeless veterans guarantee amount of $100 million, to health care facilities and State and never seems to decrease. I conclude fulfill these needs. local authorities to provide a full range from this that our approach must Accordingly, Madam Speaker, I urge of supportive services to maintain so- change. And although H.R. 3039 is not a my colleagues to support this worthy briety as well as personal counseling panacea, I am convinced this program legislation. and employment services. Projects can provide the assistance and support Mr. STUMP. Madam Speaker, I yield must work closely with the VA and necessary for homeless veterans to re- myself the balance of my time to non-VA sources as a means to reduce establish themselves as solid contribut- thank the chairman of the subcommit- the project costs and enhance the effec- ing citizens. tee, the gentleman from New York (Mr. tiveness of the project and other relat- This program emphasizes self-suffi- QUINN), and the gentleman from Cali- ed programs. ciency by requiring housing providers fornia (Mr. FILNER), the ranking mem- This bill requires residents to seek to make available job counseling to ber of the subcommittee, as well as the and obtain employment and to main- veteran residents and by requiring vet- gentleman from Illinois (Mr. LANE tain sobriety. It is a tough love ap- erans to find and keep a job and to pay EVANS), the ranking member of the full proach. While the bill does not require a reasonable fee for their housing. H.R. committee, for all their hard work in a zero tolerance approach to substance 3039 will provide a hand up, not a hand- putting this bill together. abuse for those enrolled in the pro- out. This is a bipartisan bill, and I would gram, the committee believes that the I want to thank the gentleman from urge the Members to support it. potential negative impact of those who New York (Mr. QUINN) for his willing- Mr. REYES. Madam Speaker, I rise today in continue to abuse drugs or alcohol on ness to reexamine the funding mecha- strong support of H.R. 3039, the Veterans those wishing to remain clean and nism that was included in H.R. 3039 as Transitional Housing Opportunities Act of sober justifies the zero tolerance. introduced. Although the officials of 1998, and ask unanimous consent to revise Finally, residents are required to pay the Veterans Administration did not and extend my remarks. a reasonable fee for their residence be- fully articulate their concerns regard- This bill will provide a much needed boost cause it promotes personal responsibil- ing this section of the bill until rather to improving the availability of safe and secure ity. Along with staying clean and late in the process, the issues they homes for our Veterans. I am proud to join the sober, part of taking personal respon- raised were indeed important, and I am Chairman and Ranking member of the Veter- sibility is paying one’s way in the pleased we were able to come to an ans' Affairs Committee as a co-sponsor of this world and is yet another step towards agreement on the funding issue. important bill, which will provide a much need- becoming a fully productive citizen. H.R. 3039 is an excellent bill, and I ed boost to the pool of housing for our home- I would like to thank all the mem- urge my colleagues to vote in favor of less veterans. bers of the committee for the biparti- this measure. In America, where there is so much pros- san manner in which we worked Mr. STUMP. Madam Speaker, I yield perity, it is a tragedy that so many of our citi- through this to bring the bill to the 2 minutes to the gentleman from New zens are homeless, day after day, night after floor. The subcommittee and the gen- York (Mr. GILMAN), chairman of the night, looking for shelter. Moreover, it is dis- tleman from California (Mr. FILNER) Committee on International Relations. turbing that one third of our nation's homeless and his staff worked very hard; the (Mr. GILMAN asked and was given are men and women who admirably served gentleman from Illinois (Mr. LANE permission to revise and extend his re- our country as veterans. This legislation reaf- EVANS), who traveled to Buffalo for the marks.) firms our commitment to our veterans wher- hearing we had, I am also appreciative Mr. GILMAN. Madam Speaker, I ever they are, to provide them safe and se- to him, and especially thank the chair- thank the gentleman for yielding me cure shelter. By authorizing $100 million in man of the committee, the gentleman this time, and I am pleased to rise in loan guarantees for the development of transi- from Arizona (Mr. STUMP) for his lead- strong support of H.R. 3039, the Veter- tional housing, and by providing for support ership on the issue. ans Transitional Housing Opportuni- and counseling. I am proud to state that the Madam Speaker, it is a good bill. We ties Act, creating a pilot program to Veterans' Affairs Committee has sought to believe it fills a void that now exists in allow the Department of Veterans Af- bring these homeless veterans hope and inde- the homeless programs, particularly fairs to guarantee loans to community- pendence. A home is the foundation of our for our veterans in this country, and I based organizations providing services country, and this legislation will bring our urge my colleagues to support H.R. for homeless veterans. homeless veterans out from the cold. 3039. I commend the distinguished chair- Moreover, this legislation is good policy as Mr. EVANS. Madam Speaker, I yield man of our Committee on Veterans’ Af- it provides for partnerships with local commu- 3 minutes to the gentleman from Cali- fairs, the gentleman from Arizona (Mr. nities to provide this housing. By requiring fornia (Mr. FILNER). STUMP), for his work on this bill, and local and community involvement, we can en- Mr. FILNER. Madam Speaker, I the gentleman from New York (Mr. sure that the specialized needs of our nation's thank the gentleman for yielding me QUINN), and the gentleman from Cali- veterans are secured across the country. this time. fornia (Mr. FILNER) for their work on As we take up this important legislation, we Madam Speaker, as the ranking Dem- this important legislation. recommit ourselves to improving the lives of ocrat member of the Subcommittee on Homelessness, regrettably, is a wide- our nation's veterans. Today I stand with my Benefits of the Committee on Veterans’ spread problem among our veterans. It colleagues on the Veterans Committee and Affairs, I want to also commend the is also unfortunate that many of those the entire House in strongly supporting this chairman of the subcommittee, the veterans who are homeless also require bill. This legislation will truly begin to bring our gentleman from New York (Mr. QUINN), psychiatric care and rehabilitation dedicated and courageous veterans home. I for his leadership on H.R. 3039, the Vet- treatment to recover from alcohol or encourage its unanimous passage. erans Transitional Housing Opportuni- substance abuse. Moreover, such veter- Thank you, Mr. Speaker. ties Act for 1998. ans also often require training in mar- Ms. JACKSON-LEE of Texas. Madam This bill, as the gentleman has ex- ketable job skills to assist them in Speaker, I rise before you today to express plained, will provide the transitional earning a living after they have recov- my support of the Veterans Transitional Hous- housing so desperately needed by the ered. ing Opportunities Act of 1998 (H.R. 3039). The hundreds of thousands of veterans who The duty of providing housing reha- Statistic noting that one in three homeless sleep on America’s streets each night. bilitation and job training for homeless Americans are military veterans is staggering. There is virtually no disagreement veterans is expensive. Increasingly, the The shortage of transitional housing is a result May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3395 of the difficulty of veterans in obtaining financ- ter, Washington, D.C., in an amount not to SEC. 5. PROCEDURES FOR NAMING OF PROPERTY exceed $29,700,000. BY SECRETARY OF VETERANS AF- ing. This bill helps to address that problem. FAIRS. Our military is one of this country's strongest (4) Construction of a psychogeriatric care building and demolition of seismically un- (a) IN GENERAL.—Subchapter II of chapter 5 resources and I believe wholeheartedly, that safe building 324 at the Department of Veter- of title 38, United States Code, is amended by we owe it to our servicemen and service- ans Affairs Medical Center, Palo Alto, Cali- adding at the end the following new section: women to assist these protectors of our coun- fornia, in an amount not to exceed ‘‘§ 530. Procedures for naming property try and Constitution in their time of need. $22,400,000. ‘‘(a) If the Secretary proposes to designate This bill does not provide assistance without (5) Construction of an ambulatory care ad- the name of any property of the Department conditions. Those who are eligible to partici- dition and renovations for ambulatory care other than for the geographic area in which pate in the program must seek and subse- at the Department of Veterans Affairs Medi- that property is located, the Secretary shall quently maintain a job, pay a reasonable rent cal Center, Cleveland (Wade Park), Ohio, in conduct a public hearing before making the designation. The hearing shall be conducted and remain drug and alcohol free. These safe- an amount not to exceed $28,300,000, of which $7,500,000 shall be derived from funds appro- in the community in which the property is guards in determining eligibility will protect the priated for a fiscal year before fiscal year located. At the hearing, the Secretary shall program from potential abuses. 1999 that remain available for obligation. receive the views of veterans service organi- In conclusion, I want to applaud Represent- (6) Construction of an ambulatory care ad- zations and other interested parties regard- ative STUMP for introducing this bill and urge dition at the Department of Veterans Affairs ing the proposed name of the property. my colleagues to join me in supporting the Medical Center, Tucson, Arizona, in an ‘‘(b) Before conducting such a hearing, the Veterans Transitional Housing Opportunities amount not to exceed $35,000,000. Secretary shall provide reasonable notice of (7) Construction of an addition for psy- the proposed designation and of the hearing. Act of 1998. These quarter of a million veter- The notice shall include— ans served this country when we needed chiatric care at the Department of Veterans Affairs Medical Center, Dallas, Texas, in an ‘‘(1) the time and place of the hearing; them, it is now our turn to serve them. amount not to exceed $24,200,000. ‘‘(2) identification of the property proposed Mr. STUMP. Madam Speaker, I have (8) Outpatient clinic projects at Auburn to be named; no further requests for time, and I and Merced, California, as part of the North- ‘‘(3) identification of the proposed name for yield back the balance of my time. ern California Healthcare Systems Project, the property; ‘‘(c)(1) If after a hearing under subsection Mr. EVANS. Madam Speaker, I have in an amount not to exceed $3,000,000, to be (a) the Secretary intends to name the prop- no further requests for time, and I derived only from funds appropriated for erty involved other than for the geographic Construction, Major Projects, for a fiscal yield back the balance of my time. area in which that property is located, the year before fiscal year 1999 that remain The SPEAKER pro tempore. The Secretary shall notify the congressional vet- available for obligation. question is on the motion offered by erans’ affairs committees of the Secretary’s the gentleman from Arizona (Mr. (b) CONSTRUCTION OF PARKING FACILITY.— intention to so name the property and shall The Secretary may construct a parking STUMP) that the House suspend the publish a notice of such intention in the Fed- structure at the Department of Veterans Af- eral Register. rules and pass the bill, H.R. 3039, as fairs Medical Center, Denver, Colorado, in an amended. ‘‘(2) The Secretary may not designate the amount not to exceed $13,000,000, of which property with a name for which a notice was The question was taken. $11,900,000 shall be derived from funds in the published in the Federal Register pursuant Mr. STUMP. Mr. Speaker, on that I Parking Revolving Fund. to paragraph (1) until the end of a 60-day pe- demand the yeas and nays. SEC. 2. AUTHORIZATION OF MAJOR MEDICAL FA- riod of continuous session of Congress fol- The yeas and nays were ordered. CILITY LEASES. lowing the date of the submission of notice The SPEAKER pro tempore. Pursu- The Secretary of Veterans Affairs may under paragraph (1). For purposes of the pre- ant to clause 5 of rule I and the Chair’s enter into leases for satellite outpatient ceding sentence, continuity of a session of prior announcement, further proceed- clinics as follows: Congress is broken only by an adjournment ings on this motion will be postponed. (1) Baton Rouge, Louisiana, in an amount sine die, and there shall be excluded from the computation of such 60-day period any day f not to exceed $1,800,000. (2) Daytona Beach, Florida, in an amount during which either House of Congress is not b 1300 not to exceed $2,600,000. in session during an adjournment of more (3) Oakland Park, Florida, in an amount than three days to a day certain. AUTHORIZING MAJOR MEDICAL not to exceed $4,100,000. ‘‘(3) Each notice under paragraph (1) shall FACILITY PROJECTS AND MAJOR include the following: SEC. 3. AUTHORIZATION OF APPROPRIATIONS. MEDICAL FACILITY LEASES FOR ‘‘(A) An identification of the property in- (a) IN GENERAL.—There are authorized to volved. DEPARTMENT OF VETERANS AF- be appropriated to the Secretary of Veterans FAIRS FOR FISCAL YEAR 1999 ‘‘(B) An explanation of the background of, Affairs for fiscal year 1999— and rationale for, the proposed name. Mr. STUMP. Madam Speaker, I move (1) for the Construction, Major Projects, ‘‘(C) A summary of the views expressed by to suspend the rules and pass the bill account $205,300,000 for the projects author- interested parties at the public hearing con- (H.R. 3603) to authorize major medical ized in section 1(a); and ducted in connection with the proposed facility projects and major medical fa- (2) for the Medical Care account, $8,500,000 name, together with a summary of the Sec- for the leases authorized in section 2. cility leases for the Department of Vet- retary’s evaluation of those views.’’. (b) LIMITATION.—(1) The projects author- (b) CLERICAL AMENDMENT.—The table of erans Affairs for fiscal year 1999, and ized in section 1(a) may only be carried out sections at the beginning of such chapter is for other purposes, as amended. using— amended by inserting after the item relating The Clerk read as follows: (A) funds appropriated for fiscal year 1999 to section 529 the following new item: H.R. 3603 pursuant to the authorization of appropria- ‘‘530. Procedures for naming property.’’. Be it enacted by the Senate and House of Rep- tions in subsection (a); (c) EFFECTIVE DATE.—Section 530 of title resentatives of the United States of America in (B) funds appropriated for Construction, 38, United States Code, as added by sub- Congress assembled, Major Projects, for a fiscal year before fiscal section (a), shall take effect as of January 1, SECTION 1. AUTHORIZATION OF MAJOR MEDICAL year 1999 that remain available for obliga- 1998. FACILITY PROJECTS. tion; and (C) funds appropriated for Construction, The SPEAKER pro tempore. Pursu- (a) IN GENERAL.—The Secretary of Veter- ant to the rule, the gentleman from Ar- ans Affairs may carry out the following Major Projects, for a fiscal year before fiscal izona (Mr. STUMP) and the gentleman major medical facility projects, with each year 1999 for a category of activity not spe- project to be carried out in the amount spec- cific to a project. from Illinois (Mr. EVANS) each will con- ified for that project: (2) The project authorized in section 1(b) trol 20 minutes. (1) Alterations to facilitate consolidation may only be carried out using funds appro- The Chair recognizes the gentleman of services in buildings 126 and 150, and dem- priated for a fiscal year before fiscal year from Arizona (Mr. Stump). olition of seismically unsafe building 122 at 1999— GENERAL LEAVE the Department of Veterans Affairs Medical (A) for the Parking Revolving Fund; or Mr. STUMP. Madam Speaker, I ask Center, Long Beach, California, in an (B) for Construction, Major Projects, for a unanimous consent that all Members category of activity not specific to a project. amount not to exceed $23,200,000. may have 5 legislative days within (2) Construction and seismic work at the SEC. 4. THRESHOLD FOR TREATMENT OF PARK- Department of Veterans Affairs Medical Cen- ING FACILITY PROJECT AS A MAJOR which to revise and extend their re- ter, San Juan, Puerto Rico, in an amount MEDICAL FACILITY PROJECT. marks on H.R. 3603, as amended. not to exceed $50,000,000. Section 8109(i)(2) of title 38, United States The SPEAKER pro tempore. Is there (3) Outpatient clinic expansion at the De- Code, is amended by striking out ‘‘$3,000,000’’ objection to the request of the gen- partment of Veterans Affairs Medical Cen- and inserting ‘‘$4,000,000’’. tleman from Arizona? H3396 CONGRESSIONAL RECORD — HOUSE May 19, 1998 There was no objection. users. These projects are not only consistent Mr. STUMP. Madam Speaker, I yield Mr. STUMP. Madam Speaker, I yield with recent trends in VA health care, they are such time as he may consume to the myself such time as I may consume. consistent with the direction of modern medi- gentleman from Florida (Mr. STEARNS), (Mr. STUMP asked and was given cine. chairman of the Subcommittee on permission to revise and extend his re- Mr. STUMP. Madam Speaker, I yield Health. marks.) 2 minutes to the gentleman from New Mr. STEARNS. Madam Speaker, I Mr. STUMP. Madam Speaker, H.R. York (Mr. GILMAN). thank the distinguished gentleman 3603 authorizes a total of $205 million (Mr. GILMAN asked and was given from Arizona (Mr. STUMP), chairman of in major medical construction projects permission to revise and extend his re- our full committee, for yielding me the throughout the United States. It also marks.) time. authorizes $8.5 million in VA’s medical Mr. GILMAN. Madam Speaker, I I rise in support of H.R. 3603, which, care account for leasing facilities. All thank the gentleman from Arizona Mr. of course, is the construction author- of these projects will be funded from STUMP) for yielding me the time. ization bill. this increase at the top of the VA’s pri- Madam Speaker, I am pleased to rise Madam Speaker, the VA health care ority list of construction projects. in strong support of this measure, leg- system is going through a period of Madam Speaker, let me mention one islation authorizing major medical needed change toward providing care of the provisions contained in this bill. construction projects and facility more efficiently and improving veter- After the bill reported out of the Com- leases for the VA in fiscal year 1999 ans’ access to care. With our encour- mittee, we became aware of a con- throughout our country. agement, VA has opened many commu- nity-based clinics to bring medical care troversy regarding the VA Secretary’s I commend the distinguished chair- closer to all of our veterans. authority to name VA facilities. In man, the gentleman from Arizona Mr. STUMP), for his work in bringing this Nevertheless, Congress expects VA to order to avoid circumstances like this measure to the floor at this time and continue to provide hospital and nurs- in the future, we have added this provi- for his committee’s work. ing home care for veterans in VA medi- sion establishing a public hearing pro- One of the most important respon- cal centers across this country. Like cedure to be followed by the Secretary sibilities that we have as a Nation is to the veterans themselves, many of these if he decides to name a facility other provide proper medical care for our facilities are aging, are having prob- than for the geographic area in which veterans. As our veterans population lems in construction. We cannot turn it is located. This provision would be ages, the need for medical care be- our backs on our veterans, and we retroactive until January 1 of this comes even more acute. This legisla- should not turn our backs on the hos- year. tion will allow the Department of Vet- pitals on which they depend. We must Madam Speaker, I reserve the bal- erans Affairs to fund nine high-priority face the fact that some of these facili- ance of my time. medical projects throughout our Na- ties require major renovations to meet Mr. EVANS. Madam Speaker, I yield tion and to lease three medical facili- patient care, safety and, of course, pri- myself such time as I may consume. ties. vacy requirements. I am pleased to rise in support of Accordingly, I urge my colleagues to The VA’s major construction budget H.R. 3603, a bill to authorize VA’s join in supporting this worthy legisla- is the vehicle to address those needs. major medical construction and lease tion, which will provide improved Yet, despite the fact that many VA projects for fiscal year 1999. health care for our veterans. hospitals need significant construction I want to commend my colleague, the Mr. EVANS. Madam Speaker, I yield work, the administration’s fiscal year gentleman from Arizona (Mr. STUMP), 2 minutes to the gentlewoman from 1999 budget proposes to fund construc- the Chairman of the Committee, for Colorado (Ms. DEGETTE). tion work at only two VA medical cen- supporting a completely bipartisan Ms. DEGETTE. Madam Speaker, I ters. This is unclear to me why. The process. The projects VA identified as thank the gentleman from Illinois (Mr. administration even failed to request the highest priorities comprise those EVANS) for yielding me the time. any funding for three projects that VA we recommended for funding for fiscal I rise today in support of this legisla- itself has indicated is their top prior- year 1999. tion because it addresses the critical ity. I believe the bill will allow VA to needs of medical centers throughout Madam Speaker, this bill will remedy fund projects that are consistent with the country. In Denver, for example, this failure. In proposing $205 million VA’s efforts to ensure patient safety the need for a new parking structure for major medical construction, H.R. and accommodate more care on an out- has increased with the expansion of 3603 would authorize what the commit- patient basis. programs provided by the VA Medical tee believes is both a more appropriate We have been cautious stewards, and Center, especially outpatient programs level of construction funding than the the projects authorized in this bill are and the increasing employment neces- $84 million proposed by the President of vital importance to VA and the vet- sitated by the programs. and a more appropriate mix of needed erans that rely on them for their care. Currently, the lack of available park- construction projects. I recommend support for adoption of ing impedes access to care. Less than With this legislation, Congress would set a course towards remedying some the major medical construction 400 parking spaces are available on the of the most pressing construction projects contained in H.R. 3603, as grounds; and many patients, some of needs in the entire VA system. These amended; and I urge my colleagues to whom it is difficult to walk far, have to include projects to provide badly need- support the resolution. park up to five blocks away from the ed outpatient clinic capacity at some While VA has significantly reduced its reli- medical center. of VA busiest medical centers, improve ance on outpatient bed care, VA providers will H.R. 3603 addresses this problem. It psychiatric care and renovation of seis- continue in the foreseeable future to need provides for construction of a multi- mically unsafe facilities. beds in a variety of settings. Remaining beds level structure to house 700 parking As Memorial Day approaches, we must be housed in modern, safe and acces- spaces, and it includes a horizontal must not only remember our veterans sible facilities.Two projects redress systemic, connection to the existing medical cen- but take steps, like the passage of this seismic problems in the San Juan, Puerto ter. Consequently, it will enhance our legislation this afternoon, to honor the Rico and Long Beach, California facilities and ability to provide timely, efficient commitments to our veterans. I urge both were requested by the Administration. health care to the veterans, the many my colleagues to support H.R. 3603. Other selected projects allow VA to continue veterans, in the Denver metropolitan Mr. EVANS. Madam Speaker, I yield moving more expensive hospital bed care to area. 2 minutes to the gentlewoman from outpatient care settings. Some projects con- I thank the Ranking Member, the Texas (Ms. EDDIE BERNICE JOHNSON). solidate VA's activities and allow it to become gentleman from Illinois (Mr. EVANS), Ms. EDDIE BERNICE JOHNSON of more cost effective. In addition, the Committee and the Chairman of the Committee, Texas. Madam Speaker, I rise in sup- is authorizing funds for three major leases for the gentleman from Arizona Mr. port of this bill. outpatient facilities. These leases will allow VA STUMP), for their leadership and assist- Much of my career was spent work- to take advantage of the community's excess ance in providing this important fund- ing with veterans at the Veterans Ad- capacity and become more accessible to its ing. ministration Medical Center in Dallas, May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3397 and I know full well the strides that hearings and eventually established In closing, let me thank the gen- they have attempted to make to im- the Chartered Committee on Safety. tleman from Illinois (Mr. EVANS), the prove services. The Veterans Administration initi- Ranking Member of the full commit- The Veterans Integrated Service Net- ated a comprehensive assessment of tee, the gentleman from Florida (Mr. work 17 serving North, Central and every VA medical center in the system. STEARNS) and the gentleman from Illi- South Texas, has sought major con- The studies revealed that 68 medical nois (Mr. GUTIERREZ), the Chairman struction assistance for over 10 years centers were located in at-risk geo- and Ranking Member the of sub- to replace its 58-year-old mental health graphic areas where major or moderate committee, for all their hard work in facility at the Dallas VA Medical Cen- earthquakes may occur. Of these, 39 fa- putting this bill together. ter. cilities were found to be in need of seis- This is a bipartisan bill, and I urge The North Texas VA Mental Health mic strengthening and compliance with all Members to support it. Enhancement Project was originally seismic codes. Mr. HORN. Madam Speaker, I rise to day in authorized in 1996, and I am very Despite the fact that Puerto Rico is strong support of H.R. 3603, the VA Major pleased that the Committee on Veter- located in one of the most seismically Medical Facility Projects Authorization bill. ans’ Affairs saw fit to include this vital active zones in the United States and This bill authorizes $205 million for major project in the major construction au- that the potential for loss of life ranks medical facility projects across the country, thorization bill for 1999. very high in the event of an earth- $140 million more than the President re- The Veterans Integrated Service Net- quake, seismic corrections and quested in his budget. work 17 has the highest concentration strengthening at the Puerto Rico VA Along with the other worthy projects in this of combat veterans in the U.S., as well Medical Center initially were not bill, $23 million is dedicated to the consolida- as the highest proportion of POWs and prioritized in the highest-risk group. tion of clinical and administrative services into Posttraumatic Stress Disorder treat- VA studies in 1990 confirmed the high a seismically upgraded building at the Long ment programs. seismicity of the site and urged that Beach VA Medical Center. Providing a broad The Dallas Medical Center is the pri- the San Juan Medical Center war- range of inpatient, outpatient, and home care mary veterans’ mental health provider ranted inclusion in this group. San services for veterans throughout Southern in the network, serving approximately Juan was then added to the inventory California, the Long Beach VA has been rec- 7,000 veterans with mental health needs of high-risk facilities and scheduled ognized for the integral role it plays in South- each year. The Dallas VA has done an last. ern California's health care system. The Long extraordinary job streamlining its VA studies anticipate that in an Beach Center has also achieved national earthquake, without seismic correc- mental health programs to better serve prominence in the field of spinal cord injury tions, Building 1, the main hospital, Texas veterans with mental health and the rehabilitation of paraplegic and quad- would sustain serious structural dam- needs. But the age, limited space, and riplegic patients. age, possibly collapsing and resulting poor physical condition of the 1930s-era Given the seismically unstable location of in a loss of life. the Medical Center, it is critical that all acute mental health facilities have severely After a decade of delays, this center, patient care facilities are located in seismically limited its ability to treat many veter- which happens to be one of the busiest, safe buildings. This legislation ensures that. ans seeking mental health services. if not the busiest, VA hospital centers Not only does this project project the health Some of these buildings are literally in the United States, will finally re- and safety of the Long Beach VA employees crumbling around our veterans. All are ceive the necessary funds in fiscal year functionally obsolete. 1999 to guarantee the safety of the and its patients, it also makes efficient use of Our veterans really do deserve better. American veterans in Puerto Rico. scarce government funds. This project will The mental health enhancement San Juan’s VA Medical Center is cur- avoid a cost of $34 million for additional seis- project will consolidate all mental rently the only remaining hospital mic corrections and save $5.6 million in an- health inpatient and outpatient pro- identified as the highest priority need nual recurring operating expenses. Now that is grams currently scattered around VA that still remains in the at-risk inven- a project worth investing in. campus in makeshift sites into one new tory group. The President’s budget for As we honor those who have served and building located adjacent to the clini- fiscal year 1999 requests $50 million for sacrificed their lives for our country over the cal building. This will allow the Dallas this project as part of the VA’s major Memorial Day weekend, it is fitting that today VA to expand its outpatient programs medical construction project. A two- the House is considering legislation to fulfill and reduce its inpatient nursing beds. story, 155-bed medical and surgical our continuing obligation to our nation's veter- As important, veterans will be able building that includes a 15-bed spinal ans. Their service on our nation's behalf to go to one location for mental health cord injury center will be constructed stands as a model of courage and commit- and medical services rather than being to correct seismic deficiencies at the ment. We cannot afford to forget them. run all over the campus. Medical Center. Mr. WELLER. Madam Speaker, I rise today I urge my colleagues to vote for this I want to thank the Chairman, the to express my dismay at a provision that was bill. gentleman from Arizona (Mr. STUMP), slipped into H.R. 3603, the bill to authorize I know that this project, as essential and the Ranking Member, the gen- major medical facility projects for the Depart- as it is and just beginning to get some tleman from Illinois (Mr. LANE), and ment of Veteran's Affairs. This provision was attention, I know how important the all of the members of the Committee included specifically to undo the naming of the rest of them are, and I hope we can on Veterans’ Affairs who have rec- Abraham Lincoln National Cemetery near Jo- support all of them. ommended that this project be author- liet, Illinois in my congressional district. It Mr. EVANS. Madam Speaker, I yield ized. came to my attention today, that a section was 2 minutes to the gentleman from Puer- I urge the Members of the U.S. Con- added to the bill which would set up new pro- to Rico (Mr. ROMERO-BARCELO´ ). gress to approve this much-needed VA cedures for the naming of national veterans Mr. ROMERO-BARCELO´ . Madam construction bill without further cemeteries and other properties of the VA. I Speaker, I thank the distinguished delays. The American veterans and was appalled to learn that this provision is ret- ranking member, the gentleman from their families in Puerto Rico deserve to roactive to January 1, 1998! This is obviously Illinois (Mr. EVANS), for yielding me receive treatment in a healthy, safe en- intended to invalidate the decision of Sec- the time. vironment that poses no unnecessary retary Togo West to name the cemetery after I rise in support of H.R. 3603. health, safety or life-threatening risks, Abraham Lincoln. This provision is an outrage! On February 9, 1971, the aftershocks just like any other veteran in any It is a direct assault on the wishes of the vet- of an earthquake in California were other State of the Union. I urge ap- erans in Illinois. I would like to note that the felt all the way to Washington. A shift proval of this bill. naming of the cemetery as the Abraham Lin- in the San Andreas Fault caused the Mr. STUMP. Madam Speaker, I re- coln National Cemetery was endorsed by the destruction of the San Fernando Veter- serve the balance of my time. Illinois State American Legion, VFW, Amvets, ans Administration Hospital in Mr. EVANS. Madam Speaker, I yield Disabled American Legion and American Ex- Sylmar, California, resulting in the back the balance of my time. POWs. Clearly the veteransÐthose who will death of 46 patients. With a great sense Mr. STUMP. Madam Speaker, I yield be buried thereÐwant this name. Clearly, this of urgency, the U.S. Congress convened myself such time as I may consume. provision was inserted into the bill to go H3398 CONGRESSIONAL RECORD — HOUSE May 19, 1998 against the wishes of the veterans. Abraham AMVETS, This bill effectively balances our fiscal re- Lincoln created the national cemetery system. ILLINOIS STATE HEADQUARTERS, sponsibilities with the needs of these facilities Illinois is the ``Land of Lincoln.'' This name is Springfield, IL, September 26, 1997. and the veterans who depend on them. Hon. JERRY WELLER, This legislation also stays focused on health not only appropriate for the cemetery in Joliet, Cannon House Office Bldg., it is the only name endorsed by the veter- Washington, DC. care's shifting emphasis from inpatient to am- ansÐthose who sacrificed for their country. I DEAR CONGRESSMAN WELLER: Our last bulatory care by including a number of out- will fight to have this retroactive provision State Executive Committee Meeting, held at patient projects. changed. I submit a copy of my statement to the Hilton Hotel, Springfield, Illinois, on I join my colleagues on both sides of the appear in the CONGRESSIONAL RECORD. September 12–14, 1997. At this meeting it was aisle in supporting this legislation so the men VETERANS OF FOREIGN WARS, voted unanimously to endorse your legisla- and women who fought for our freedom will be tion to name the Joliet National Cemetery DEPARTMENT OF ILLINOIS, provided with the best possible medical care. Springfield, IL, May 21, 1997. as the Abraham Lincoln National Cemetery. Since Mr. Lincoln was instrumental in es- Mr. STUMP. Madam Speaker, I have Hon. JERRY WELLER, no further requests for time, and I House of Representatives, tablishing the first National Cemetery, it is Washington, DC. only befitting that he finally receives the yield back the balance of my time. honor of having a National Cemetery named The SPEAKER pro tempore (Mrs. DEAR CONGRESSMAN WELLER: The Depart- after him. EMERSON). The question is on the mo- ment of Illinois, Veterans of Foreign Wars, Sincerely, tion offered by the gentleman from Ar- takes great pride in supporting the introduc- JERRY F. FOSTER, izona (Mr. STUMP) that the House sus- tion of legislation naming the new Veterans Department Commander. Cemetery at the former Joliet Arsenal the pend the rules and pass the bill, H.R. ‘‘Abraham Lincoln National Cemetery’’. AMERICAN EX-PRISONERS OF WAR, 3603, as amended. In naming the 982 acre site after President DEPARTMENT OF ILLINOIS, The question was taken; and (two- Abraham Lincoln, we not only acknowledge Park Ridge, IL, October 21, 1997. thirds having voted in favor thereof) the role he played in creating the National Hon. JERRY WELLER, the rules were suspended and the bill, Cemetery System, but also honor the mem- 130 Cannon Building, as amended, was passed. ory of the courageous men and women who Washington, DC. A motion to reconsider was laid on DEAR HONORABLE WELLER: We the Amer- answered our nation’s call to defend democ- the table. racy and freedom. ican Ex-Prisoners of War of the State of Illi- nois all agree to the naming of the veterans f The Department of Illinois, Veterans of cemetery in Joliet, Illinois to be called Abra- b 1315 Foreign Wars certainly commend the De- ham Lincoln Veterans Cemetery. partment of Veterans Affairs, Department of Thank you for the American Ex–P.O.W.’s COLLECTIONS OF INFORMATION Defense, Congress and the local communities for their opinion on this matter. ANTIPIRACY ACT for their vision and initiatives in acquiring a Sincerely, portion of the former Joliet Army Ammuni- DONALD MCCORMICK, Commander. Mr. COBLE. Madam Speaker, I move tion Plant, and the beautiful Hoff Woods site to suspend the rules and pass the bill for use as the new National Cemetery to DISABLED AMERICAN VETERANS, (H.R. 2652) to amend title 17, United serve the veterans and families of this mid- DEPARTMENT OF ILLINOIS, States Code, to prevent the misappro- west region. Oak Park, IL, October 28, 1997. priation of collections of information, We certainly appreciate your introducing Hon. JERRY WELLER, as amended. this most important legislation in the House House of Representatives The Clerk read as follows: of Representatives and look forward to the Washington, DC. H.R. 2652 passage of same. DEAR CONGRESSMAN WELLER: The Depart- ment of Illinois, Disabled American Veter- Be it enacted by the Senate and House of Rep- With warmest personal regards and best ans, strongly supports the introduction of resentatives of the United States of America in wishes, I remain legislation naming the new Veterans Ceme- Congress assembled, Sincerely, tery at the former Joliet Arsenal the ‘‘Abra- SECTION 1. SHORT TITLE. DONALD HARTENBERGER, ham Lincoln National Cemetery.’’ Department Commander. This Act may be cited as the ‘‘Collections Mr. Lincoln, as we all know, was instru- of Information Antipiracy Act’’. mental in establishing the first National SEC. 2. MISAPPROPRIATION OF COLLECTIONS OF THE AMERICAN LEGION, Cemetery and it is only befitting that he re- INFORMATION. DEPARTMENT OF ILLINOIS, ceives the honor of having a National Ceme- Title 17, United States Code, is amended by Bloomington, IL, April 10, 1997. tery named after him. adding at the end the following new chapter: Hon. JERRY WELLER, We certainly appreciate your introducing House of Representatives, this most important legislation in the House ‘‘CHAPTER 12—MISAPPROPRIATION OF Washington, DC. of Representatives because now the veterans COLLECTIONS OF INFORMATION and their families in this Midwest region ‘‘Sec. DEAR REPRESENTATIVE WELLER: The Amer- will have a place to rest which they truly de- ‘‘1201. Definitions. ican Legion, Department of Illinois, takes serve and are entitled to. ‘‘1202. Prohibition against misappropriation. great pride in supporting the introduction of Sincerely, ‘‘1203. Permitted acts. legislation naming the new veterans ceme- GEORGE M. ISDALE, JR., ‘‘1204. Exclusions. tery at the former Joliet Arsenal the ‘‘Abra- Department Adju- ‘‘1205. Relationship to other laws. ham Lincoln National Cemetery.’’ tant. ‘‘1206. Civil remedies. On Saturday, April 5, 1997 at Normal, Illi- TED BUCK, ‘‘1207. Criminal offenses and penalties. nois, our state Executive Committee ap- Department Com- ‘‘1208. Limitations on actions. proved a resolution commending the Depart- mander. ‘‘§ 1201. Definitions ment of Veterans Affairs, Department of De- Ms. JACKSON-LEE of Texas. Madam ‘‘As used in this chapter: fense, Congress and the local communities ‘‘(1) COLLECTION OF INFORMATION.—The for their vision and initiatives in acquiring a Speaker, I rise today to express my support for H.R. 3603, a bill to authorize major medical term ‘collection of information’ means infor- portion of the former Joliet Army Ammuni- mation that has been collected and has been tion Plant, and the beautiful Hoff Woods facility projects for the Veterans' Department. The bill authorizes the Secretary of Veter- organized for the purpose of bringing dis- site, for use as the new National Cemetery to crete items of information together in one serve the veterans and families of this mid- ans Affairs to carry out major medical facility place or through one source so that users west region. projects at Department of Veterans Affairs may access them. A copy of the approved resolution is at- medical centers or outpatient clinics in 8 loca- ‘‘(2) INFORMATION.—The term ‘information’ tached and we respectfully urge the Sec- tions, including one in my home state of means facts, data, works of authorship, or retary of Veterans Affairs and the United Texas. This bill is a result of members from any other intangible material capable of States Congress to confirm the designation both parties working together to ensure that being collected and organized in a system- of the former Joliet Arsenal as the ‘‘Abra- facilities with the greatest need for construc- atic way. ham Lincoln National Cemetery’’ to honor tion work will receive the resources necessary ‘‘(3) POTENTIAL MARKET.—The term ‘poten- all veterans and President Abraham Lincoln, tial market’ means any market that a per- who first established the National Cemetery to provide high quality care to our veterans. son claiming protection under section 1202 system. I'm particularly pleased with the emphasis has current and demonstrable plans to ex- Sincerely, this bill gives to projects that will increase the ploit or that is commonly exploited by per- VINCENT A. SANZOTTA, VA's ability to provide outpatient care to veter- sons offering similar products or services in- Department Adjutant. ans. corporating collections of information. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3399

‘‘(4) COMMERCE.—The term ‘commerce’ ‘‘(f) TRANSFER OF COPY.—Nothing in this of information, than is available to that means all commerce which may be lawfully chapter shall restrict the owner of a particu- work under any other chapter of this title. regulated by the Congress. lar lawfully made copy of all or part of a col- ‘‘(d) ANTITRUST.—Nothing in this chapter ‘‘(5) PRODUCT OR SERVICE.—A product or lection of information from selling or other- shall limit in any way the constraints on the service incorporating a collection of infor- wise disposing of the possession of that copy. manner in which products and services may mation does not include a product or service ‘‘§ 1204. Exclusions be provided to the public that are imposed by incorporating a collection of information ‘‘(a) GOVERNMENT COLLECTIONS OF INFOR- Federal and State antitrust laws, including gathered, organized, or maintained to ad- MATION.— those regarding single suppliers of products dress, route, forward, transmit, or store digi- ‘‘(1) EXCLUSION.—Protection under this and services. tal online communications or provide or re- chapter shall not extend to collections of in- ‘‘(e) LICENSING.—Nothing in this chapter ceive access to connections for digital online formation gathered, organized, or main- shall restrict the rights of parties freely to communications. tained by or for a government entity, wheth- enter into licenses or any other contracts ‘‘§ 1202. Prohibition against misappropriation er Federal, State, or local, including any em- with respect to the use of collections of in- ‘‘Any person who extracts, or uses in com- ployee or agent of such entity, or any person formation. merce, all or a substantial part, measured ei- exclusively licensed by such entity, within ‘‘(f) COMMUNICATIONS ACT OF 1934.—Nothing ther quantitatively or qualitatively, of a col- the scope of the employment, agency, or li- in this chapter shall affect the operation of lection of information gathered, organized, cense. Nothing in this subsection shall pre- the provisions of the Communications Act of or maintained by another person through the clude protection under this chapter for infor- 1934 (47 U.S.C. 151 et seq.), or shall restrict investment of substantial monetary or other mation gathered, organized, or maintained any person from extracting or using sub- resources, so as to cause harm to the actual by such an agent or licensee that is not with- scriber list information, as such term is de- or potential market of that other person, or in the scope of such agency or license, or by fined in section 222(f)(3) of the Communica- a successor in interest of that other person, a Federal or State educational institution in tions Act of 1934 (47 U.S.C. 222(f)(3)), for the for a product or service that incorporates the course of engaging in education or schol- purpose of publishing telephone directories that collection of information and is offered arship. in any format. ‘‘(g) SECURITIES EXCHANGE ACT OF 1934 AND or intended to be offered for sale or other- ‘‘(2) EXCEPTION.—The exclusion under para- wise in commerce by that other person, or a graph (1) does not apply to any information COMMODITY EXCHANGE ACT.—Nothing in this successor in interest of that person, shall be required to be collected and disseminated— chapter shall affect— liable to that person or successor in interest ‘‘(A) under the Securities Exchange Act of ‘‘(1) the operation of the provisions of the for the remedies set forth in section 1206. 1934 by a national securities exchange, a reg- Securities Exchange Act of 1934 (15 U.S.C. 58a ‘‘§ 1203. Permitted acts istered securities association, or a registered et seq.) or the Commodity Exchange Act (7 U.S.C. 1 et seq.); ‘‘(a) INDIVIDUAL ITEMS OF INFORMATION AND securities information processor, subject to ‘‘(2) the public nature of information with OTHER INSUBSTANTIAL PARTS.—Nothing in section 1205(g) of this title; or this chapter shall prevent the extraction or ‘‘(B) under the Commodity Exchange Act respect to quotations for and transactions in use of an individual item of information, or by a contract market, subject to section securities that is collected, processed, dis- other insubstantial part of a collection of in- 1205(g) of this title. tributed, or published pursuant to the re- formation, in itself. An individual item of in- ‘‘(b) COMPUTER PROGRAMS.— quirements of the Securities Exchange Act formation, including a work of authorship, ‘‘(1) PROTECTION NOT EXTENDED.—Subject of 1934; shall not itself be considered a substantial to paragraph (2), protection under this chap- ‘‘(3) the obligations of national securities part of a collection of information under sec- ter shall not extend to computer programs, exchanges, registered securities associations, tion 1202. Nothing in this subsection shall including, but not limited to, any computer or registered information processors under permit the repeated or systematic extraction program used in the manufacture, produc- the Securities Exchange Act of 1934; or or use of individual items or insubstantial tion, operation, or maintenance of a collec- ‘‘(4) the jurisdiction or authority of the Se- parts of a collection of information so as to tion of information, or any element of a curities and Exchange Commission or the circumvent the prohibition contained in sec- computer program necessary to its oper- Commodity Futures Trading Commission. tion 1202. ation. ‘‘§ 1206. Civil remedies ‘‘(b) GATHERING OR USE OF INFORMATION OB- ‘‘(2) INCORPORATED COLLECTIONS OF INFOR- ‘‘(a) CIVIL ACTIONS.—Any person who is in- TAINED THROUGH OTHER MEANS.—Nothing in MATION.—A collection of information that is jured by a violation of section 1202 may bring this chapter shall restrict any person from otherwise subject to protection under this a civil action for such a violation in an ap- independently gathering information or chapter is not disqualified from such protec- propriate United States district court with- using information obtained by means other tion solely because it is incorporated into a out regard to the amount in controversy, ex- than extracting it from a collection of infor- computer program. cept that any action against a State govern- mation gathered, organized, or maintained ‘‘§ 1205. Relationship to other laws mental entity may be brought in any court by another person through the investment of ‘‘(a) OTHER RIGHTS NOT AFFECTED.—Sub- that has jurisdiction over claims against substantial monetary or other resources. ject to subsection (b), nothing in this chap- such entity. ‘‘(c) USE OF INFORMATION FOR VERIFICA- ter shall affect rights, limitations, or rem- ‘‘(b) TEMPORARY AND PERMANENT INJUNC- TION.—Nothing in this chapter shall restrict TIONS.—Any court having jurisdiction of a any person from extracting information, or edies concerning copyright, or any other civil action under this section shall have the from using information within any entity or rights or obligations relating to information, power to grant temporary and permanent in- organization, for the sole purpose of verify- including laws with respect to patent, trade- junctions, according to the principles of eq- ing the accuracy of information independ- mark, design rights, antitrust, trade secrets, uity and upon such terms as the court may ently gathered, organized, or maintained by privacy, access to public documents, and the deem reasonable, to prevent a violation of that person. Under no circumstances shall law of contract. the information so extracted or used be made ‘‘(b) PREEMPTION OF STATE LAW.—On or section 1202. Any such injunction may be available to others in a manner that harms after the effective date of this chapter, all served anywhere in the United States on the the actual or potential market for the col- rights that are equivalent to the rights spec- person enjoined, and may be enforced by pro- lection of information from which it is ex- ified in section 1202 with respect to the sub- ceedings in contempt or otherwise by any tracted or used. ject matter of this chapter shall be governed United States district court having jurisdic- ‘‘(d) NONPROFIT EDUCATIONAL, SCIENTIFIC, exclusively by Federal law, and no person is tion over that person. OR RESEARCH USES.—Nothing in this chapter entitled to any equivalent right in such sub- ‘‘(c) IMPOUNDMENT.—At any time while an shall restrict any person from extracting or ject matter under the common law or stat- action under this section is pending, the using information for nonprofit educational, utes of any State. State laws with respect to court may order the impounding, on such scientific, or research purposes in a manner trademark, design rights, antitrust, trade se- terms as it deems reasonable, of all copies of that does not harm the actual or potential crets, privacy, access to public documents, contents of a collection of information ex- market for the product or service referred to and the law of contract shall not be deemed tracted or used in violation of section 1202, in section 1202. to provide equivalent rights for purposes of and of all masters, tapes, disks, diskettes, or ‘‘(e) NEWS REPORTING.—Nothing in this this subsection. other articles by means of which such copies chapter shall restrict any person from ex- ‘‘(c) RELATIONSHIP TO COPYRIGHT.—Protec- may be reproduced. The court may, as part tracting or using information for the sole tion under this chapter is independent of, of a final judgment or decree finding a viola- purpose of news reporting, including news and does not affect or enlarge the scope, du- tion of section 1202, order the remedial modi- gathering, dissemination, and comment, un- ration, ownership, or subsistence of, any fication or destruction of all copies of con- less the information so extracted or used is copyright protection or limitation, includ- tents of a collection of information ex- time sensitive, has been gathered by a news ing, but not limited to, fair use, in any work tracted or used in violation of section 1202, reporting entity for distribution to a par- of authorship that is contained in or consists and of all masters, tapes, disks, diskettes, or ticular market, and has not yet been distrib- in whole or part of a collection of informa- other articles by means of which such copies uted to that market, and the extraction or tion. This chapter does not provide any may be reproduced. use is part of a consistent pattern engaged in greater protection to a work of authorship ‘‘(d) MONETARY RELIEF.—When a violation for the purpose of direct competition in that contained in a collection of information, of section 1202 has been established in any market. other than a work that is itself a collection civil action arising under this section, the H3400 CONGRESSIONAL RECORD — HOUSE May 19, 1998 plaintiff shall be entitled to recover any protection under this chapter that is ex- gathering and verifying factual mate- damages sustained by the plaintiff and de- tracted or used.’’. rial, presenting it in a user-friendly fendant’s profits not taken into account in SEC. 3. CONFORMING AMENDMENT. way, and keeping it current for and computing the damages sustained by the The table of chapters for title 17, United useful to customers. plaintiff. The court shall assess such profits States Code, is amended by adding at the end or damages or cause the same to be assessed the following: H.R. 2652, Madam Speaker, prohibits under its direction. In assessing profits the ‘‘12. Misappropriation of Collections the misappropriation of valuable com- plaintiff shall be required to prove defend- of Information ...... 1201’’. mercial collections by unscrupulous ant’s gross revenue only; defendant must SEC. 4. CONFORMING AMENDMENTS TO TITLE 28, competitors who grab data collected by prove all elements of cost or deduction UNITED STATES CODE. others, repackage it, and market a claims. In assessing damages the court may (a) DISTRICT COURT JURISDICTION.—Section product that threatens competitive in- enter judgment, according to the cir- 1338 of title 28, United States Code, is amend- jury to the original collection. cumstances of the case, for any sum above ed— the amount found as actual damages, not ex- (1) in the section heading by inserting This protection is modeled in part on ceeding three times such amount. The court ‘‘misappropriations of collections of informa- the Lanham Act, which already makes in its discretion may award reasonable costs tion,’’ after ‘‘trade-marks,’’; and similar kinds of unfair competition a and attorney’s fees to the prevailing party (2) by adding at the end the following: civil wrong under Federal law. Impor- and shall award such costs and fees where it ‘‘(d) The district courts shall have original tantly, this bill maintains existing pro- determines that an action was brought under jurisdiction of any civil action arising under tection for collections of information this chapter in bad faith against a nonprofit chapter 12 of title 17, relating to misappro- educational, scientific, or research institu- afforded by copyright and contract priation of collections of information. Such rights. It is intended to supplement tion, library, or archives, or an employee or jurisdiction shall be exclusive of the courts agent of such an entity, acting within the of the States, except that any action against these legal rights, not to replace them. scope of his or her employment. a State governmental entity may be brought The Collections of Information ‘‘(e) REDUCTION OR REMISSION OF MONETARY in any court that has jurisdiction over Antipiracy Act is a balanced proposal. RELIEF FOR NONPROFIT EDUCATIONAL, SCI- claims against such entity.’’. It is aimed at actual or threatened ENTIFIC, OR RESEARCH INSTITUTIONS.—The (b) CONFORMING AMENDMENT.—The item re- court shall reduce or remit entirely mone- competitive injury for misappropria- lating to section 1338 in the table of sections tion of collections of information, not tary relief under subsection (d) in any case for chapter 85 of title 28, United States Code, in which a defendant believed and had rea- is amended by inserting ‘‘misappropriations at noncompetitive uses. The goal is to sonable grounds for believing that his or her of collections of information,’’ after ‘‘trade- stimulate the creation of even more conduct was permissible under this chapter, marks,’’. collections and to encourage even more if the defendant was an employee or agent of (c) COURT OF FEDERAL CLAIMS JURISDIC- competition among them. The bill a nonprofit educational, scientific, or re- TION.—Section 1498(e) of title 28, United avoids conferring any monopoly on search institution, library, or archives act- States Code, is amended by inserting ‘‘and to ing within the scope of his or her employ- facts or taking any other steps that protections afforded collections of informa- might be inconsistent with these goals. ment. tion under chapter 12 of title 17’’ after ‘‘chap- ‘‘(f) ACTIONS AGAINST UNITED STATES GOV- ter 9 of title 17’’. The version under consideration ERNMENT.—Subsections (b) and (c) shall not SEC. 5. EFFECTIVE DATE. today contains several noncontrover- apply to any action against the United (a) IN GENERAL.—This Act and the amend- sial technical amendments. The legis- States Government. ments made by this Act shall take effect on lation is necessary, in my opinion, and ‘‘(g) RELIEF AGAINST STATE ENTITIES.—The the date of the enactment of this Act, and relief provided under this section shall be well-balanced, and I urge my col- shall apply to acts committed on or after available against a State governmental en- leagues to support it. that date. tity to the extent permitted by applicable Madam Speaker, I would be remiss if (b) PRIOR ACTS NOT AFFECTED.—No person law. shall be liable under chapter 12 of title 17, I did not mention this. Much informa- ‘‘§ 1207. Criminal offenses and penalties United States Code, as added by section 2 of tion has been disseminated about this ‘‘(a) VIOLATION.— this Act, for the use of information lawfully bill, and I want to advise the Members ‘‘(1) IN GENERAL.—Any person who violates extracted from a collection of information of a couple facts that I think are perti- section 1202 willfully, and— prior to the effective date of this Act, by nent. ‘‘(A) does so for direct or indirect commer- that person or by that person’s predecessor Last February, in fact, the afternoon cial advantage or financial gain, or in interest. of the hearing that was conducted, we ‘‘(B) causes loss or damage aggregating The SPEAKER pro tempore (Mrs. $10,000 or more in any 1-year period to the met with representatives of the univer- person who gathered, organized, or main- EMERSON). Pursuant to the rule, the sity community and asked them for tained the information concerned, gentleman from North Carolina (Mr. specific instances where they would be shall be punished as provided in subsection COBLE) and the gentleman from Massa- concerned about this bill, that we (b). chusetts (Mr. FRANK) each will control might be able to correct some problems ‘‘(2) INAPPLICABILITY.—This section shall 20 minutes. or concerns. None was forthcoming. not apply to an employee or agent of a non- The Chair recognizes the gentleman As recently as yesterday, a rep- profit educational, scientific, or research in- from North Carolina (Mr. COBLE). stitution, library, or archives acting within resentative from the university com- GENERAL LEAVE the scope of his or her employment. munity made it clear that he could not Mr. COBLE. Madam Speaker, I ask ‘‘(b) PENALTIES.—An offense under sub- give one specific instance where det- unanimous consent that all Members section (a) shall be punishable by a fine of riment would result, but that he felt not more than $250,000 or imprisonment for may have 5 legislative days within that maybe some future unforeseen cir- not more than 5 years, or both. A second or which to revise and extend their re- cumstance might crop up. Madam subsequent offense under subsection (a) shall marks on the bill under consideration. Speaker, that could happen with any be punishable by a fine of not more than The SPEAKER pro tempore. Is there legislation. $500,000 or imprisonment for not more than objection to the request of the gen- 10 years, or both. tleman from North Carolina? I will be doggone if I am going to ‘‘§ 1208. Limitations on actions There was no objection. stand in the path of small businesses ‘‘(a) CRIMINAL PROCEEDINGS.—No criminal Mr. COBLE. Madam Speaker, I yield and perhaps encourage their bank- proceeding shall be maintained under this myself such time as I may consume. ruptcy ultimately in the fear of a pro- chapter unless it is commenced within three Madam Speaker, I rise in support of spective unforeseen circumstance. If years after the cause of action arises. that circumstance does arise, then we ‘‘(b) CIVIL ACTIONS.—No civil action shall H.R. 2652, the Collections of Informa- be maintained under this chapter unless it is tion Antipiracy Act, and urge my col- will repair it and correct it at the time. commenced within three years after the leagues to support this important bill. The libraries, we met with our cause of action arises or claim accrues. Developing, compiling, distributing, friends from the American Library As- ‘‘(c) ADDITIONAL LIMITATION.—No criminal and maintaining commercially signifi- sociation, again, last February, asking or civil action shall be maintained under this cant collections of information re- them, tell us what is wrong and we will chapter for the extraction or use of all or a substantial part of a collection of informa- quires substantial investments of time, fix it. A total of 10 amendments have tion that occurs more than 15 years after the personnel, and money. Information been made a part of this bill, 10 amend- investment of resources that qualified the companies, especially small businesses, ments that were forthcoming from ear- portion of the collection of information for must dedicate massive resources when lier opponents of the bill. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3401 I think we have done all we can do. I and we really have not had a chance to brarians. My chief of staff in Massachu- think we have a good piece of legisla- look at it. setts was the head of a library board tion here. I urge my colleagues to sup- This bill had its first public hearing and built a beautiful library building. I port it. in October of last year and then a sec- think libraries are very important. Madam Speaker, I reserve the bal- ond public hearing in February of this To the extent that librarians come ance of my time. year. It was voted on in subcommittee and say to us, you are going to prevent Mr. FRANK of Massachusetts. two months ago. The number of people our readers from being able to read Madam Speaker, I yield myself such who have been prevented from studying this, do research with this, write a time as I may consume. this bill by time is zero. People have paper based on it, I would be opposed to Madam Speaker, I rise in support of had months to look at it. the bill if it did that. That is not what this bill. The principle is very straight- Since we have had two public hear- they are saying. Essentially what they forward. The Supreme Court decided a ings on the bill, a markup two months are saying is, some of the people who while ago that people who put together ago in subcommittee and then a mark- have done all this work might charge the phone book could not have a prop- up in full committee, and then we were us more than we want to pay. erty interest in the phone numbers. We going to be on the calendar last week. We underfund libraries. I think we do not actually deal with that decision One of those terrible legislative dis- do. If I were in charge, we would give here. That particular decision is not eases known as turfitis, which is par- libraries more money than other overturned. ticularly virulent at the Subcommittee places. The answer, however, to a pub- But it did leave at risk work that on Energy and Power; you have got to lic sector inadequately funding librar- people do to collect information. Es- be careful when you are walking on the ies is not to empower libraries to take sentially the state of the law now, op- first floor past the Subcommittee on other people’s work product for noth- ponents to this bill want the state of Energy and Power. You have got a vi- ing. The answer is further and better to the law to remain such that you can go cious case of ‘‘It is mine, and nobody fund libraries. through considerable work to compile else can look at it.’’ That will break So I will await the end of this debate, data. People who have been in the data out. That held us off a week. and thereafter I will still be waiting for compilation business know that it is At any rate, we have had a lot of specifics. I am available. If people will often not fun. It can be very hard work. time that people are aware of this bill. show myself, the chairman, our very It can be unexciting work. But it could Still, what is their complaint? We have able staffs how this interferes with free give you a very useful work product. got to study this some more. They are and open exchange of information, with What we are being asked to do by lucky that this bill is not covered by intellectual use for this, we will try to those who simply want to defeat this the data collection, I suppose. They change that. bill is to leave that work totally unpro- would have a long time to study it. I do not think that is the problem. I tected legally as far as the Federal The point is, Madam Speaker, that think people have been able to get some of this information for free. I sup- government is concerned. You do the you say pull the bill when you do not pose, as between paying for it and get- work, you do all the research, and you have any substantive arguments. We ting it for free, most of us would rather come up with a significantly useful col- all say let us delay it. We all say we get it for free, if you assume that there lection of information. This law says are not sure what it does. That is when you do not have substantive argu- is an endless supply of it coming, and if anybody else who wants to can go and ments. I say that because we have you assume that people who have to take that and do whatever they want asked for substantive arguments. give it to you for free and allow you to with it. I very much agree that full use reuse it will not stop this kind of work. We do in this bill, to the extent that should be there intellectually. I do not I think if we do not pass this, you we were capable of doing it, make a want to interfere with researchers who will begin to see a diminution in the distinction. Nothing in this bill in any use those data collections. kind of data that is available. Nothing way retards the intellectual use of that I have yet to hear a specific instance in this bill will interfere with the intel- data. A scoundrel who wants to do re- of how the legislation we are bringing lectual use of it, so I hope the bill is search and publish some of it as part of forward prevents people from doing re- passed. his or her study, if you want to go to search, from reading the data and Mr. COBLE. Madam Speaker, I have the data collection and usurp from it using it in that reasonable way. no speaker, but I reserve the balance of so you can prove your point, you can We have tried in various ways. Peo- my time. do it. If you want to go to the data col- ple said, well, what about the concept Mr. FRANK of Massachusetts. lection and reproduce it and get paid of fair use? It does not technically Madam Speaker, I yield 5 minutes to for reproducing somebody else’s work, apply, but it could interfere with fig- the very distinguished but not infal- this bill says you cannot. ures. We said it does not. We have said lible gentleman from California (Mr. So that is the distinction we have this bill specifically allows you to do BROWN), the ranking member of the tried to draw between making the in- research, allows you to reproduce some Committee on Science. tellectual product here fully accessible parts of it to make your argument. It (Mr. BROWN of California asked and but protecting it commercially. If in does not allow you to simply take was given permission to revise and ex- fact you leave it unprotected commer- other people’s work product and sell it tend his remarks.) cially, you will almost certainly have and get paid for it. Mr. BROWN of California. Madam less work done. We have had a series of cases, of Speaker, I thank the distinguished gen- The notion that people should go and meetings and hearings, and no one has tleman for allowing me to express my- do this, do all this data collection, with come forward with specifics. Look at self on this bill. I acknowledge that I their work product totally unprotected the literature that has been put out. am distinguished but not infallible. from anybody else who wants to use it Various organizations have said this is Sometimes I even wonder if I am dis- for any purpose, including passing it not a good bill, stop it. But I have not tinguished. on, selling it to somebody else, seems been able to find in any of this lit- But let me tell you that without pre- to me to be in error. erature a specific example of how this tending to understand all of the impli- One of the things we have done, we legislation will interfere with legiti- cations of this bill, I found out very have had hearings, and we are told, mate intellectual activity. quickly, when it was placed on the Madam Speaker, that this is too quick- We make a distinction here in this schedule, that there are a lot of ex- ly being done and we should pull this bill between commercial use of some- tremely worried people out there who bill. Yes, the people who do not want to one else’s property and the intellectual should know what they are talking deal with it now argue to pull the bill. use. If people think we have not done about or who, on the other hand, may Why do people say, let us pull the the balance perfectly, I would be will- be totally paranoid. It may well be bill? There are two circumstances in ing to listen, but they do not want to that there are a lot of paranoid people which those of us in the legislative come forward with specifics. out there. body argue that a bill should be pulled. I want to talk also about my friends, I suspect that what has happened One, it really did come up too quickly, the libraries. Some of my friends are li- here is that those organizations, and I H3402 CONGRESSIONAL RECORD — HOUSE May 19, 1998 have circulated a ‘‘Dear Colleague’’ let- protecting original investments in data require providers of sole source databases to ter which lists these, and they include bases and the economic and social cost make data available for research, education, some of the most distinguished organi- of unduly restricting and discouraging and other public interest uses on fair and equi- zations in this country, beginning with downstream application of these data table terms. the library associations and the AAAS, bases, particularly in regard to uses for Many fields of inquiry that involve statistical American Association for the Advance- basic research or education. compilations and analysis of raw data would ment of Science, and many others are Some of these scientific data bases be restricted by this bill, such as climate mod- worried about this bill. are extremely large and complex. For eling and economic forecasting. Also, research They may be worried because they do example, we are spending billions on an activities involving collaborative sharing of not understand it, and I will confess effort to characterize the human ge- large data bases, such as the sequencing of that. Their tactics seem to be not nec- nome, and we have thousands of sci- the human genome, would be adversely af- essarily to kill the bill, but to allow entists working on it. A portion of that fected. more time for these scholars and aca- work only, and it may be a small por- The stated objective of the bill is to protect demics and so forth to see if they can tion, is either patentable or protected against individuals stealing non-copyrightable find flaws in it and to present those under copyright laws. The rest of it is commercial databases, and then taking away flaws for protection. going to be freely available. It may be the market of the original compiler of the data. These individuals and organizations that this legislation is going to cause The reach of the bill goes far beyond this goal. are notoriously slow in their ability to considerable problem with that mas- Alternative draft legislation that is narrowly act promptly on legislation and some- sive collection of research data. I hope based on misappropriation case law is being times other things, but that does not that that is not the case, but I do not worked out by the communities with reserva- mean that they are wrong. When I see think anyone can tell you at this point tions about H.R. 2652. Such an approach a compilation of organizations as broad whether it or is not. would leave existing research and education as have taken a stand in opposition to Progress in science requires full and uses of databases unchanged, while providing this bill, I would like to alert a broader open availability of scientific data. added protections for commercial, noncopy- audience to the fact that there could be New knowledge is built on previous rightable databases. some flaws. findings and unfettered access and use Any legislative action to protect the contents Knowing the distinguished chairman of factual information. This bill will of databases should proceed using a cautious, of the subcommittee and the ranking impede research by restricting the minimalist approach that balances the inter- member and having heard their state- ability of scientists to draw on data, ests of creators, publishers, and users, and of ments, as the gentleman from North facts and even mathematical formulas society as a whole. from previous scientific work for the Carolina (Mr. COBLE) says, tell us what This is not the approach that was taken in is wrong and we will fix it, the gen- production of new and innovative developing H.R. 2652. work. tleman from Massachusetts (Mr. Despite concerns raised by libraries, re- It is for this reason, Madam Speaker, FRANK) said the same thing, and simi- search and educational institutions, commer- that I ask that the bill be defeated on cial database companies, and computer and lar language, and I have faith that we suspension, and, hopefully, brought would do that. telecommunications companies, the bill has back after further study. been brought to the floor as a non-controver- I would like to have my own little H.R. 2652 addresses one aspect of the sial measure under suspension of the rules. laundry list of the things that need to complex subject of adjusting intellectual prop- This procedure is inappropriate since it af- be done here; but, frankly, I do not erty protection laws to meet the demands of fords no opportunity for Members to offer have the competence to come up with the digital age. Unfortunately it is a flawed and amendments or present alternative ap- that kind of a list. What I am trying to controversial attempt, which should not have proaches to address the many concerns that accomplish here, and I hope that my come to the Floor on the Suspension Cal- have been raised about the bill. motives are understood, is to put on endar. the record the concern of some of these The problem is that the bill has not found a The House should reject H.R. 2652 in its groups which I have known and worked proper balance between protecting original in- current form, and work toward a compromise, with for many, many years. They are vestments in databases AND the economic such as the alternative I referred to, that will all respectable. They all think they and social costs of unduly restricting and dis- balance the concerns of the various commu- know what they are talking about. And couraging downstream applications of these nities of interest. Mr. FRANK of Massachusetts. put their concerns on the record so databasesÐparticularly in regard to uses for Madam Speaker, I yield myself such that we may get a broader analysis of basic research and education. this. Progress in science requires full and open time as I may consume to make two I would have hoped that this could availability of scientific data. New knowledge is points. have been done in the normal legisla- built on previous findings and unfettered ac- First, with regard to the human ge- tive process, and that we could have cess and use of factual information. nome, I am glad the gentleman brought considered this bill, not on suspension, The bill will impede research by restricting that point up. Let me say, I fully re- but with an opportunity to debate it the ability of scientists to draw on data, facts, spect the gentleman’s motives. He per- and amend it on the floor. Unfortu- and even mathematical formulas from pre- forms a very useful service as the lead- nately, that is not a possibility at this vious scientific work for the production of new, ing Democratic member on the Com- point. innovative works. To date, these types of ac- mittee on Science, and it is entirely valid for him to be bringing these con- b 1330 tivities have not only been permissible, but ex- pressly protected under copyright law and the cerns forward. But it may be. If we defeat it on sus- fair use concept. The point I would make, not to him, pension, we may be able to bring it By granting unprecedented rights to owner- but to those on whose behalf he is quite back, or we may be able to take correc- ship of factsÐnot just rights to the expression legitimately speaking here, is that this tive action in the Senate. This is my of facts and information, as is the case for has been pending business since hear- whole purpose, and I confess it quite copyrightÐthe bill will certainly increase the ings last October. We have had it be- willingly. costs of research, but more importantly, re- fore us. At various stages people say we It is my understanding that H.R. 2652 duce the openness of exchange of scientific have a problem; we say, fine, let us addresses only one aspect of the com- data and information and also reduce collabo- hear it. Two months ago we had a sub- plex subject of adjusting intellectual ration among scientists. committee markup. We had a subse- property protection laws to meet the The provisions in the bill that purport to give quent committee markup. A week ago demands of the new digital age. Unfor- exceptions for research and education uses this bill was pulled off the floor, and tunately, as I have indicated, it may be are illusoryÐtriggered only if users can show tomorrow never comes. a flawed and controversial attempt, that the use will not harm actual or potential I think it will come, if we in fact vote which should have not come up on the markets. This is far less ``fair use'' than under this bill out of here. By the way, it will suspension calendar. copyright law. not go from here to the President’s The problem is that the bill has not Also, there is no language for mandatory desk. It will go from here to that au- found yet a proper balance between legal licenses, or other limitations, that would gust wonderful chamber on the other May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3403 side of this building, which, under the ‘‘Waiting for Godot’’ in the absence of then they are very cleverly targeting House rules, is the beneficiary of all of anything concrete. that message to a select group. Well, if our good comments, and they will have Madam Speaker, I am very afraid you do that, chances are you are going some time to work on it, and I do not that Federal copyright law is in danger to get some attention. think they are likely to speed it of becoming a dinosaur if we do not But as the gentleman from Massa- through. learn to keep up with the technology. I chusetts said and as I said, this has I do believe that if we do not get a would be the first, as a First Amend- been before us since last October. It bill over there, it is kind of late in the ment lawyer in my early days, to stand has been on the table. We have begged session, measured by the amount of on the other side if I thought there people to come forward, and some did time that has passed, not the amount were a real danger here. come forward, and we took their of bills that have passed, but it is late But in fact there is another kind of amendments and worked them into the in the session, and if we do not get it danger, Madam Speaker; there is a new bill. over there, they will never get to the kind of plagiarism, much of it coming This is a good bill, Madam Speaker, point. And we look forward to the dis- out of the new technology. The new and I urge my colleagues to support it. cussion. plagiarism robs companies who, by the Mr. DELAHUNT. Madam Speaker, I rise in Just to give one example, by the way, sweat of their proverbial brows, de- strong support of H.R. 2652, the Collections of on the human genome project, that is velop collections that we all need and Information Antipiracy Act. Federally funded, page 6 of the bill: use every day. Collections of informationÐ``databases''Ð These data base providers have no have become an indispensable feature of to- Protection shall not extend to collections day's information society. By organizing bil- of information gathered, organized or main- rights that pirates are bound to re- tained by or for a government entity, Fed- spect. Some of the victims, are famil- lions of bits of raw data into retrievable form, eral, State or local, including any employee iar names, such as NASDAQ, based databases enable medical researchers, travel or agent of such entity or any person exclu- here in the district. Many more of writers, legal professionals, historians, busi- sively licensed by such entity within the them are small businesses like Warren ness managers and consumers to navigate scope of the employment agency licensed. Publishing, a company also located in the expanding universe of human knowledge Indeed, one difference between our this city. Georgia pirates copied War- to find the information they need. The creation and maintenance of an elec- version and the European version is ren Publishing’s unique and original tronic database is a labor-intensive process they do not exempt, as we do, govern- cable system Factbook and sold it that requires an enormous investment of time ment information. under their own name for very little and resources. Yet thanks to digital tech- Mr. BROWN of California. Madam because the pirates did not have to in- nology, the end product can be copied and Speaker, will the gentleman yield? vest the hundreds of thousands of dol- distributed by unscrupulous competitors with Mr. FRANK of Massachusetts. I yield lars in human, technical and financial only a few clicks of a mouse. to the gentleman from California. resources that Warren Publishing put Mr. BROWN of California. Madam Under current law, there is little the creator in to research, to update and to verify of the database can do to prevent this. For Speaker, I am glad the gentleman the product. Nevertheless, the 11th Cir- made this point. As the gentleman many years, federal courts afforded copyright cuit discarded Warren Publishing’s protection to compilations developed through probably knows, there has been consid- original contributions altogether sim- erable publicity within the last few significant investments of time and hard ply because the company had worked workÐthe ``sweat of the brow.'' But in a 1991 weeks about a private research organi- from a larger and less well-defined list- zation which has stated it can do the decision, Feist Publications v. Rural Tele- ing. phone Service Co., the Supreme Court dis- remainder of the human genome As one known for paying close atten- carded the ``sweat of the brow'' doctrine, and project faster and quicker than the tion to First Amendment issues, I have announced that compilations would henceforth government-funded projects. I have no felt an obligation to inspect the bill merit copyright protection only if the arrange- idea what the impact of this legislation carefully to make sure that edu- ment of the information displays a sufficient will be. cational institutions and researchers degree of originalityÐa standard which, by Mr. FRANK of Massachusetts. are not deterred in the marketplace of Madam Speaker, reclaiming my time, I their nature, few databases are likely to meet. free exchange of information and ideas. Without effective legal protection against pi- will tell the gentleman what the im- I am still an academic, a tenured pro- pact is. If we go forward with the gov- racy, companies will have little incentive to fessor of law at Georgetown University continue to invest their time and money in ernment funded proposal, and he has law school who teaches a course there more to say about that than I do, and database development. Should they fail to do every year and who is working on a so, it is the public that will be the poorer for I have a suggestion, which is cancel book. I would not want to be part and that wasteful space station and do that it. parcel of deterring other researchers. The Collections of Information Antipiracy Act instead with this money and do it But in an age of instant communica- will address this problem by prohibiting the quicker, with the shortfall from the tion, Federal copyright law must keep misappropriation for commercial purposes of Russians that you are going to have to up with technology, or risk stifling the collections of information whose compilation make up, but if we go ahead and do this development of usable information and has required the investment of substantial time governmentally funded, that work will the creative entrepreneurship that the and resources. not be protectable and it will remain new technology allows, not to mention At the same time, the bill is drafted so as fully open. The fact that some other the increase in jobs that businesses not to inhibit free access to information for privately funded entity has chosen to like Warren Publishing and NASDAQ non-profit, educational, scientific or research do the work will have no negative ef- are creating every day. purposes. fect on people’s access to the work that Mr. FRANK of Massachusetts. Mr. Speaker, this is a balanced and sensible is government funded. Madam Speaker, I yield back the bal- response to the problem of database piracy, Mr. BROWN of California. Madam ance of my time. and I urge my colleagues to give it their sup- Speaker, I am glad for that assurance. Mr. COBLE. Madam Speaker, I yield port. Mr. FRANK of Massachusetts. myself such time as I may consume. Mr. COBLE. Madam Speaker, I yield Madam Speaker, I yield 3 minutes to Madam Speaker, I will sum up very back the balance of my time. the distinguished gentlewoman from briefly. My friend the gentleman from The SPEAKER pro tempore (Mrs. the District of Columbia (Ms. NORTON) Massachusetts (Mr. FRANK) and the EMERSON). The question is on the mo- Ms. NORTON. Madam Speaker, I gentlewoman from the District of Co- tion offered by the gentleman from thank my good friend, the distin- lumbia (Ms. NORTON) have pretty well North Carolina (Mr. COBLE) that the guished ranking member, for yielding touched it. House suspend the rules and pass the time to me, and I thank both the dis- I say to my friend the gentleman bill, H.R. 2652, as amended. tinguished chair and the distinguished from California (Mr. BROWN), I am not The question was taken; and (two- ranking member for pressing forward talking about you, but some people in thirds having voted in favor thereof) with such persistence in the wake of this fray have inserted paranoia, decep- the rules were suspended and the bill, some considerable resistance, and not tion and fear into this message, and as amended, was passed. H3404 CONGRESSIONAL RECORD — HOUSE May 19, 1998 A motion to reconsider was laid on may have 5 legislative days within Kenneth McDuff was on death row for the table. which to revise and extend their re- murder when his sentence was com- f marks on H.R. 3718. muted. He ended up murdering some- The SPEAKER pro tempore. Is there one else. LIMITING JURISDICTION OF FED- objection to the request of the gen- In addition to the cost to society of ERAL COURTS WITH RESPECT TO tleman from North Carolina? Judge Justice’s activism, Texas is reel- PRISON RELEASE ORDERS There was no objection. ing from the financial impact of Judge Mr. COBLE. Madam Speaker, I move Mr. COBLE. Madam Speaker, I yield Justice’s sweeping order. to suspend the rules and pass the bill such time as he may consume to the I remember back when I was in the (H.R. 3718) to limit the jurisdiction of author of the bill, the gentleman from State legislature, the State of Texas the Federal courts with respect to pris- Texas (Mr. DELAY), the distinguished spent about $8 per prisoner per day on release orders. majority whip. keeping prisoners. By 1994, when the The Clerk read as follows: Mr. DeLAY. Madam Speaker, I thank full force of Judge Justice’s edict was H.R. 3718 the gentleman from North Carolina for finally being felt, the State was spend- Be it enacted by the Senate and House of yielding me this time. ing more than $40 every day for each Representatives of the United States of America Madam Speaker, I rise today in sup- prisoner. Now, that is a five-fold in- in Congress assembled, port of my bill, H.R. 3718. This bill is crease over a period when the State’s SECTION 1. LIMITATION ON PRISONER RELEASE simple. It ends forever the early re- prison population barely doubled. ORDERS. lease of violent felons and convicted (a) IN GENERAL.—Chapter 99 of title 28, The truth is, no matter how Congress drug dealers by judges who care more United States Code, is amended by adding at and State legislatures try to get tough the end the following new section: about the ACLU’s prisoners rights wish-list than about the Constitution on crime, we will not be effective until ‘‘§ 1632. Limitation on prisoner release orders we deal with the judicial activism. The ‘‘(a) LIMITATION.—Notwithstanding section and the safety of our towns and com- munities and fellow citizens. courts have undone almost every major 3626(a)(3) of title 18 or any other provision of anti-crime initiative passed by the law, in a civil action with respect to prison Under the threat of Federal courts, conditions, no court of the United States or states are being forced to prematurely Legislative Branch. In the 1980’s, as other court listed in section 610 shall have release convicts because of what activ- many states passed mandatory mini- jurisdiction to enter or carry out any pris- ist judges call ‘‘prison overcrowding.’’ mum sentencing laws, the judges oner release order that would result in the In Philadelphia, for instance, Federal checkmated the public by imposing release from or nonadmission to a prison, on Judge Norma Shapiro has used com- prison caps. the basis of prison conditions, of any person subject to incarceration, detention, or ad- plaints filed by individual inmates to b 1345 mission to a facility because of a conviction gain control over the prison system When this Congress mandated the and established a cap on the number of of a felony under the laws of the relevant ju- end of consent decrees regarding prison risdiction, or a violation of the terms or con- prisoners. To meet that cap, she or- overcrowding in 1995, some courts just ditions of parole, probation, pretrial release, dered the release of 500 prisoners per ignored our mandate. or a diversionary program, relating to the week. commission of a felony under the laws of the In an 18 month period alone, 9,732 There is an activist judge behind relevant jurisdiction. arrestees out on the streets of Phila- each of the most perverse failures of ‘‘(b) DEFINITIONS.—As used in this section— today’s justice system: violent offend- ‘‘(1) the terms ‘civil action with respect to delphia on pretrial release because of her prison caps were arrested on second ers serving barely 40 percent of their prison conditions’, ‘prisoner’, ‘prisoner re- 1 lease order’, and ‘prison’ have the meanings charges, including 79 murders, 90 rapes, sentences; 3 ⁄2 million criminals, most given those terms in section 3626(g) of title 701 burglaries, 959 robberies, 1,113 as- of them repeat offenders, on the 18; and saults, 2,215 drug offenses and 2,748 streets, on probation or parole; 35 per- ‘‘(2) the term ‘prison conditions’ means thefts. cent of all persons arrested for violent conditions of confinement or the effects of How does she sleep at night? Each crime on probation, parole, or pretrial actions by government officials on the lives one of these crimes was committed release at the time of their arrest. of persons confined in prison. The Constitution of the United (b) CONFORMING AMENDMENT.—The table of against a person with a family dream- sections for chapter 99 of title 28, United ing of a safe and peaceful future, a fu- States gives us the power to take back States Code, is amended by adding at the end ture that was snuffed out by a judge our streets. Article III allows the Con- the following new item: who has a perverted view of the Con- gress of the United States to set juris- ‘‘1632. Limitation on prisoner release or- stitution. dictional restraints on the courts, and ders.’’. Of course, Judge Shapiro is not my bill will set such restraints. (c) CONSENT DECREES.— alone. There are many other examples. I presume we will hear cries of court- (1) TERMINATION OF EXISTING CONSENT DE- In a Texas case that dates back to 1972, stripping by opponents of my bill. CREES.—Any consent decree that was entered Federal Judge William Wayne Justice These cries, however, will come from into before the date of the enactment of the took control of the Texas prison sys- the same people who voted to limit the Prison Litigation Reform Act of 1995, that is jurisdiction of Federal courts in the in effect on the day before the date of the en- tem and dictated changes in basic in- actment of this Act, and that provides for mate disciplinary practices that wrest- 1990 civil rights bill. remedies relating to prison conditions shall ed administrative authority from staff Let us not forget the pleas of our cur- cease to be effective on the date of the enact- and resulted in rampant violence be- rent Chief Justice of the United States, ment of this Act. hind bars. William Rehnquist. In his 1997 year-end (2) DEFINITIONS.—As used in this sub- Under the threats of Judge Justice, report on the Federal judiciary, he section— Texas was forced to adopt what is said, ‘‘I therefore call on Congress to (A) the term ‘‘consent decree’’ has the known as the ‘‘nutty release’’ law that consider legislative proposals that meaning given that term in section 3626(g) of would reduce the jurisdiction of Fed- title 18, United States Code; and mandates good time credit for pris- (B) the term ‘‘prison conditions’’ has the oners. Murderers and drug dealers who eral courts.’’ We should heed Justice meaning given that term in section 1632(c) of should be behind bars are now walking Rehnquist’s call right here, right now, title 28, United States Code, as added by sub- the streets of our Texas neighborhoods, today. section (a) of this section. thanks to Judge Justice. Madam Speaker, this bill is identical The SPEAKER pro tempore. Pursu- Wesley Wayne Miller was convicted to the amendment that I offered sev- ant to the rule, the gentleman from in 1982 of a brutal murder. He served eral weeks ago to H.R. 1252, the Judi- North Carolina (Mr. COBLE) and the only 9 years of a 25 year sentence for cial Reform Act. My amendment gentleman from Virginia (Mr. SCOTT) butchering a 18-year-old Fort Worth passed at that time 367 to 52. That is each will control 20 minutes. girl. Now, after another crime spree, he right, 367 yeas and 52 nays. The Chair recognizes the gentleman was rearrested. While that is an overwhelming vic- from North Carolina (Mr. COBLE). Huey Meaux was sentenced to 15 tory, it is not enough. I am saddened, I GENERAL LEAVE years for molesting a teenage girl. He am saddened that 52 Members of this Mr. COBLE. Madam Speaker, I ask was eligible for parole this September, body could so callously vote against unanimous consent that all Members after serving only 2 years in prison. protecting the families they represent. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3405 Despite the fact that the liberal legal Furthermore, Madam Speaker, the prisoners for tuberculosis, and men- establishment will fight against my Federal termination of prisoner release tally ill prisoners are still being housed bill and the families it will help pro- orders is unnecessary. Most court or- with the general population and suffer- tect, many of my liberal Democrat col- ders in jail and prison cases do not in- ing abuse. Several of the mentally ill leagues voted for my amendment, and I clude prison population caps, and the were badly beaten, and one died. That greatly appreciate their vote. They 1995 Prison Litigation Reform Act al- consent decree would be set aside by could not afford not to. How can any ready requires a three-judge court be- this legislation. Member of this body go home to their fore any population cap is imposed. Another in Hawaii, 1987, to remedy district and face a mother whose son or And even if there is a cap, prisoners are dangerously inadequate medical and daughter has been savagely beaten and released only if State officials elect to mental health care and environmental killed by some violent felon, a felon let meet the cap through releases rather conditions. The consent decree remains out of prison early to satisfy the legal than building new facilities or adopting in effect today because the problem community’s liberal agenda, to satisfy sentencing alternatives. still exists. Today, the facility is very prison overcrowding or prison condi- This bill will effectively prohibit overcrowded, with men sleeping on the tions? Nothing in my bill takes away courts from enforcing constitutional floor in cells where there are backed-up the ability to change prison overcrowd- rights of prisoners by agreement and toilets spilling sewage. Because of the ing and prison conditions. We are just will only be able to enforce those overcrowding, mentally ill and dan- saying, one cannot use early release to rights with a full-blown court trial gerous populations are mixed together satisfy that condition. that may result in even more draco- with potential risk to both groups. Judicial activism threatens our safe- nian resolutions than a consent decree Madam Speaker, there are other ty and the safety of our children if, in would have resulted in. cases that would be affected by this. the name of justice, murderers and rap- Madam Speaker, this legislation is a The consent decrees would be elimi- ists are allowed to prowl our streets be- recipe for chaos. We passed a Prison nated if this bill were to be passed. fore they serve their time. I say it is Litigation Reform Act less than 2 Prison staff in Louisiana, a Louisi- time to return some sanity to our jus- years ago. It eliminated all consent de- ana case, 1995, prison staff were found tice system and keep violent offenders crees without ongoing violations. The to be engaging in sexual abuse of in jail. courts are only beginning to address women prisoners ranging from vulgar I strongly urge my colleagues, for the the complicated, practical and con- and obscene sexual comments to forc- sake of the families they represent, to stitutional issues raised by this act. ible sexual rape. Prison staff were not support my bill. Hundreds of cases are pending in trial only accused of participating in the Mr. SCOTT. Madam Speaker, I yield and appellate courts. The Supreme sexual misconduct but allowing male myself such time as I may consume. prisoners to enter female prisons to en- Madam Speaker, I rise in opposition Court is likely to have a review in the gage in forcible intercourse with to H.R. 3718, which would unconsti- near future. The passage of this bill women prisoners. That consent decree tutionally limit the authority of Fed- will only add confusion, delay resolu- would be set aside by this legislation. eral judges to remedy inhumane prison tion of pending cases, raise difficult Juveniles held in New Orleans. Juve- conditions. This bill also improperly issues of retroactivity, and actually niles held in Conchetta facility in New interferes with the work of the judicial create new litigation. Orleans Parish Prison lack such sup- branch of our constitutional system of This amendment is counter- plies as sheets, underwear and shoes. government. productive for all of those who want to H.R. 3718 is a radical and dangerous streamline prison lawsuits. The 1995 They are at risk because of inadequate proposal with two impermissible goals. act already strips courts of authority mental, dental and mental health care First, it would terminate ongoing con- to enforce the Constitution in certain facilities and unsafe environmental sent decrees in prison condition cases. cases. H.R. 3718 takes us further down conditions. Children are regularly beat- Second, it would prohibit judges from that dangerous path. en by staff. That consent decree would issuing prisoner release orders to rem- Court-stripping threatens the role of be set aside by this legislation. edy unconstitutional overcrowding. the judiciary and our system of checks In the State of Georgia, more than The effort to terminate consent de- and balances and should not be ex- 200 women, some as young as 16 years crees is totally unwarranted. This panded. Today, court-stripping hurts old, were coerced into having sex with amendment only affects those consent prisoners, but tomorrow, it may affect prison guards, maintenance workers, decrees that State and local govern- others in our society who rely on teachers and even a prison chaplain. ments want to remain in effect or that courts to administer justice and en- The sexual abuse comes to light when are necessary because of current and force their rights. women became pregnant and were re- ongoing violations of Federal rights. I strongly oppose this legislation and quired to undergo abortions. That con- The Prison Litigation Reform Act of urge my colleagues to do the same. sent decree would be set aside. 1995 eliminated all other consent de- Madam Speaker, there are a few So, Madam Speaker, I would hope crees, so the only ones left are those cases that I just want to cite that may that we would not expand the prison that State and local governments want be affected by this legislation. It has litigation court-stripping that we to remain in effect or are necessary be- already been pointed out that we passed in 1995, and that we would de- cause of current and ongoing violations passed legislation creating more pris- feat this bill. of the Constitution. oners, and if we are going to pass that Mr. COBLE. Mr. Speaker, I yield 6 A consent decree is a voluntary con- legislation, it is incumbent upon us to minutes to the gentleman from Florida tract between two parties to end the build the prisons to accommodate (Mr. FOLEY). active phase of litigation. This legisla- those prisoners. Let me just list a few Mr. FOLEY. Mr. Speaker, let me tion does not close the case; it simply consent decrees that this bill will ter- strongly support the efforts of the Ma- prohibits States from negotiating a minate. jority Whip, the gentleman from Texas resolution of the case. Therefore, it re- A consent decree was entered in the (Mr. DELAY), to pass this legislation. quires States to expend substantial Virgin Islands in 1994 because prisoners We supported it as an amendment to sums of money to litigate issues for were locked up for 23 hours a day in the Judicial Reform Act, and I would which there is no dispute and for which overcrowded, filthy, rat- and roach-in- hope my colleagues will overwhelm- there is an agreement for the proper fested cells. One-man cells were used to ingly support it as a free-standing resolution of the case. house four or five prisoners with mat- measure. Congress has no business dictating to tresses on the floor, frequently soaked This bill goes right to the heart of a States how they should resolve litiga- by overflowing toilets; drinking water horrible situation we in Florida have tion involving State institutions. If a was contaminated with sewage. faced. In 1993, the Florida Department State has decided that a consent decree The consent decree remains in effect of Corrections reported that between meets the State’s needs and is pref- today, because an evidentiary hearing January 1, 1987, and October 10, 1991, erable to costly litigation, Congress found many of the problems still per- some 127,486 prisoners were released should stay out of it. sisted. There is no screening for new early from Florida prisons. Within a H3406 CONGRESSIONAL RECORD — HOUSE May 19, 1998 few years of their early release, they vided an early release waiver for a pris- ing. The Constitution is not violated committed over 15,000 violent and prop- oner who ultimately causes a family when we deny someone weight training erty crimes, including 346 murders and member to be killed, maybe the judge or access to a color television. If we are 185 sex offenses. should come to the funeral and give going to pass legislation like three- Now, Florida tried to stop the early condolences to the family, to recognize strikes-and-you-are-out, or mandatory release program last year, the ‘‘gain what is going on. minimums, if we are going to try to time’’ provision, which was a tool used Time and time again I hear in our pass those slogans, three-strikes-and- by the legislature back in the 1980s to prison systems that a judge has inter- you-are-out has been studied and has avert overcrowding, but the judge said, vened and allows cigarette smoking, been determined to be just a waste of no, cannot do it. It is part of their sen- video machines, weight lifting, because money. Mandatory minimums result in tence now. Even though it was not ap- we have to coddle and provide for the high-risk prisoners getting not enough plied at the beginning of their sen- criminal. What about the victim? Is it time and the low-risk prisoners getting tence, the ‘‘gain time’’ provision now not a prison, after all? Is it not a prison too much time. acts as a part of their sentence and re- sentence? Is it not serving time for bad Mr. Speaker, if we are going to pass duces the amount of time that the pris- behavior? that legislation, we have to fund the oner is held in custody. But somehow, through this debate, it prisons. These violations are not just Now, let me ask all in America who is all about the prisoner. It is all about weight training and color TV. They in- are listening to think about this for a somebody who has devastated another clude rapes, assaults, living in sewer- minute. Who is paying for the kind of family, another life, who has raped an- and rat-infested conditions. We need to policy that we are trying to prevent? other individual. So we tell our society fund those prisons and keep these with- One involves a 21-year-old convicted and we tell our children, do not worry in the constitutional constraints if we burglar who got out of prison last Oc- about it, because if you are sentenced are going to pass that legislation. tober on early release. A month later, to 10 years, with early release and I think there are a lot of easier ways he was charged with kidnapping and gained time, you will be out in 2. There to deal with the prison problem. That murdering a 78-year-old woman in is no crime you will ever pay for. There is to prevent more crimes before they Avon Park near my district. He ab- is no serious consequence for your be- occur. But if we are going to pass legis- ducted her from her home, forced her havior. There is no serious con- lation like this, Mr. Speaker, we have into the trunk of her car, and killed sequences for your action. Some per- to pay the bill. We have very serious, her in an orange grove about 20 miles son’s loved one has to die, and the per- ongoing constitutional violations. We have situations where the consent away. son who commits the crime is out decrees are the easiest ways for the Then there is the 30-year-old man shortly thereafter. States to deal with this, if they want. jailed in 1989 on grand theft and armed A friend of mine in Lakewood, Flor- They do not have to agree to a consent burglary charges who was released ida, their daughter was killed by an il- decree. We should not tie their hands early in 1992 because of prison over- legal immigrant who was sentenced to and force them into litigation, where 7 years for murder, which is regrettable crowding. Four years later, he was they may end up in more draconian that we only have 7 years prison time charged with murdering the owner of a sanctions than the consent decrees convenience store in West Palm Beach, for a murder of another human being, 1 they have agreed to. Florida. and was released in 2 ⁄2 years. Immigra- Mr. Speaker, I reserve the balance of Now, Mr. Speaker, last month a 30- tion says we cannot deport him. my time. year-old drifter jailed in 1986 for kid- Mr. Speaker, this bill is about doing Mr. COBLE. Mr. Speaker, I yield 2 napping and brutally beating a British what is right for society. It is about minutes to the gentleman from Texas tourist in Hollywood, Florida, was re- doing what is right for the American (Mr. DELAY). leased early in 1986, was charged with public. It is about maintaining order in Mr. DELAY. I appreciate the re- first degree murder of a teenager after our streets, and about making certain marks of the gentleman from Virginia, her partially mutilated corpse was that prisoners who are in fact sen- Mr. Speaker. The problem is nothing in found in a bathtub in Miami Beach. tenced, who are the criminals, who are my bill changes the concerns that he In 1991, and it is sad that I have to the bad guys, people who actually com- has. It does not eliminate the ability continue to report these statistics, but mit the crimes are treated like the for courts to enter into consent de- it goes to the heart of the argument prisoners they are; no happy time, no crees, it does not have anything to do that I just heard a moment ago. In St. gained time, no judge intervening. with prisoners filing claims that prison Lucie County, which I represent, a When the court rules and issues a conditions are cruel and unusual. I just Fort Pierce police officer, Danny Par- sentence, the sentence should be ful- feel that it is cruel and unusual to turn rish, was murdered by an ex-convict filled. It should be carried out. If it violent criminals out on the streets for who had been released after serving takes political courage to build the ad- prison conditions. less than a third of a prison term for ditional jail cells, then I say, talk to It is very simple. We are just saying auto burglary. Officer Parrish stopped the politicians and get them to do that, that they cannot turn violent crimi- him for driving the wrong way on a but do not let one life be in jeopardy. nals out on the streets because of pris- one-way street. The ex-convict, who Do not let one life be in jeopardy be- on conditions. They can do anything admitted later he did not want to go cause of the continued persistence of else to correct bad prison conditions, back to prison for violating probation, judicial activists who insist that some- and the cases that the gentleman cites disarmed Officer Parrish and killed how these people have extraordinary are horrible. They should be corrected. him with his own gun. rights, and those of the victims are What we are saying is that we cannot often neglected. turn them back out on the street to b 1400 So I again urge my colleagues, as prey on our constituents because of When are we going to wake up in they have in the past, by an over- prison conditions. Correct them in a America to the problems that are oc- whelming vote, to support H.R. 3718, different way. We can also renegotiate curring in our community because of the bill offered by the gentleman from consent decrees, those consent decrees this type of behavior? Texas (Mr. DELAY) limiting Federal that this legislation may affect. Arti- The gentleman who argues against court jurisdictions over Federal prison cle 3 of the Constitution allows us to the bill suggests the problems that are release orders, and urge its passage do it and precedent allows us to do it. in prison today, and suggests rape in today. It is the most important piece of We are just saying, do not turn vio- prison, dirty conditions; they suggest a legislation we will see in the House lent criminals out on the street be- lot of things. But what happens when this week, and possibly this year. cause of prison overcrowding and pris- they are out on the streets? Who Mr. SCOTT. Mr. Speaker, I yield my- on conditions. speaks for the victims? Who speaks for self such time as I may consume. Mr. SCOTT. Mr. Speaker, I yield my- the families? Mr. Speaker, violating the Constitu- self such time as I may consume. I often think at times maybe we tion and constitutional violations are Mr. Speaker, I would just like to read should encourage a judge who has pro- not the solution to prison overcrowd- the bottom of page 2 of the bill. It says May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3407 Termination of existing consent decrees. The SPEAKER pro tempore (Mr. U.S.C. 2075(b)(1)(A)), as amended by section Any consent decree that was entered into be- SHIMKUS). The question is on the mo- 101(a) of this Act, $90,244,000 shall be avail- fore the date of the enactment of the Prison tion offered by the gentleman from able until expended for acquisition and other Litigation Reform Act of 1995, that is in ef- expenses associated with implementation North Carolina (Mr. COBLE) that the fect on the day before the date of the enact- and deployment of narcotics detection equip- ment of this Act, and that provides for rem- House suspend the rules and pass the ment along the United States-Mexico border, edies relating to prison conditions shall bill, H.R. 3718. the United States-Canada border, and Flor- cease to be effective on the date of the enact- The question was taken. ida and the Gulf Coast seaports, as follows: ment of this Act. Mr. SCOTT. Mr. Speaker, I object to (1) UNITED STATES-MEXICO BORDER.—For the That eliminates all consent decrees, the vote on the ground that a quorum United States-Mexico border, the following: is not present and make the point of (A) $6,000,000 for 8 Vehicle and Container not just those that have as a remedy Inspection Systems (VACIS). the release of prisoners. So all of those order that a quorum is not present. (B) $11,000,000 for 5 mobile truck x-rays cases where there are rapes, assaults, The SPEAKER pro tempore. Pursu- with transmission and backscatter imaging. and everything else are included. ant to clause 5 of rule I and the Chair’s (C) $12,000,000 for the upgrade of 8 fixed-site Mr. DELAY. Mr. Speaker, will the prior announcement, further proceed- truck x-rays from the present energy level of gentleman yield? ings on this motion will be postponed. 450,000 electron volts to 1,000,000 electron Mr. SCOTT. I yield to the gentleman The point of no quorum is considered volts (1–MeV). from Texas. withdrawn. (D) $7,200,000 for 8 1–MeV pallet x-rays. (E) $1,000,000 for 200 portable contraband Mr. DELAY. Mr. Speaker, the gen- f detectors (busters) to be distributed among tleman is right, reading from the bill, DRUG FREE BORDERS ACT OF 1998 ports where the current allocations are inad- that eliminates all consent decrees, but equate. it does not preclude anybody from re- Mr. ARCHER. Mr. Speaker, I move to (F) $600,000 for 50 contraband detection kits negotiating consent decrees, and leav- suspend the rules and pass the bill to be distributed among all southwest border ing out the fact that they are turning (H.R. 3809) to authorize appropriations ports based on traffic volume. violent criminals out on the streets. for the United States Customs Service (G) $500,000 for 25 ultrasonic container in- Mr. SCOTT. Mr. Speaker, I would for fiscal years 1999 and 2000, and for spection units to be distributed among all other purposees, as amended. ports receiving liquid-filled cargo and to point out that in the beginning of the ports with a hazardous material inspection bill, as is indicated, it would eliminate The Clerk read as follows: facility. any consent decree that provides for H.R. 3809 (H) $2,450,000 for 7 automated targeting sys- remedies relating to prison conditions. Be it enacted by the Senate and House of Rep- tems. The beginning of the bill says that resentatives of the United States of America in (I) $360,000 for 30 rapid tire deflator sys- notwithstanding that section, no court Congress assembled, tems to be distributed to those ports where ‘‘* * * shall have jurisdiction to enter SECTION 1. SHORT TITLE. port runners are a threat. (J) $480,000 for 20 portable Treasury En- or carry out any prisoner release order This Act may be cited as the ‘‘Drug Free Borders Act of 1998’’. forcement Communications Systems (TECS) that would result in the release from or terminals to be moved among ports as need- nonadmission to a prison on the basis TITLE I—AUTHORIZATION OF APPROPRIA- ed. of prison conditions of the person sub- TIONS FOR UNITED STATES CUSTOMS (K) $1,000,000 for 20 remote watch surveil- ject to incarceration, detention, or ad- SERVICE FOR DRUG INTERDICTION AND lance camera systems at ports where there mission.’’ OTHER PURPOSES are suspicious activities at loading docks, That has essentially eliminated a lot SEC. 101. AUTHORIZATION OF APPROPRIATIONS. vehicle queues, secondary inspection lanes, of the jurisdiction the court had in the (a) DRUG ENFORCEMENT AND OTHER NON- or areas where visual surveillance or obser- vation is obscured. beginning. If someone were only to pro- COMMERCIAL OPERATIONS.—Subparagraphs (A) and (B) of section 301(b)(1) of the Customs (L) $1,254,000 for 57 weigh-in-motion sensors vide for unconstitutional violations, at Procedural Reform and Simplification Act of to be distributed among the ports with the the prison, I am not sure what the 1978 (19 U.S.C. 2075(b)(1)(A) and (B)) are greatest volume of outbound traffic. court could do. They have been essen- amended to read as follows: (M) $180,000 for 36 AM traffic information tially eliminated from anything other ‘‘(A) $964,587,584 for fiscal year 1999. radio stations, with 1 station to be located at than consent decrees. If the locality ‘‘(B) $1,072,928,328 for fiscal year 2000.’’. each border crossing. does not agree to it, the court would (b) COMMERCIAL OPERATIONS.—Clauses (i) (N) $1,040,000 for 260 inbound vehicle and (ii) of section 301(b)(2)(A) of such Act (19 counters to be installed at every inbound ve- essentially be, because of this bill, hicle lane. without remedy to remedy constitu- U.S.C. 2075(b)(2)(A)(i) and (ii)) are amended to read as follows: (O) $950,000 for 38 spotter camera systems tional violations. ‘‘(i) $970,838,000 for fiscal year 1999. to counter the surveillance of customs in- The law that passed 2 years ago is ‘‘(ii) $999,963,000 for fiscal year 2000.’’. spection activities by persons outside the now being litigated. This bill just takes (c) AIR INTERDICTION.—Subparagraphs (A) boundaries of ports where such surveillance away the authority from the courts to and (B) of section 301(b)(3) of such Act (19 activities are occurring. enforce the constitutional rights of the U.S.C. 2075(b)(3)(A) and (B)) are amended to (P) $390,000 for 60 inbound commercial citizens. I think it should not be read as follows: truck transponders to be distributed to all ports of entry. passed. ‘‘(A) $98,488,000 for fiscal year 1999. ‘‘(B) $101,443,000 for fiscal year 2000.’’. (Q) $1,600,000 for 40 narcotics vapor and par- Mr. Speaker, I reserve the balance of ticle detectors to be distributed to each bor- my time. (d) SUBMISSION OF OUT-YEAR BUDGET PRO- JECTIONS.—Section 301(a) of such Act (19 der crossing. Mr. COBLE. Mr. Speaker, I yield my- U.S.C. 2075(a)) is amended by adding at the (R) $400,000 for license plate reader auto- self such time as I may consume. end the following: matic targeting software to be installed at Mr. Speaker, H.R. 3718, as we know, ‘‘(3) By no later than the date on which the each port to target inbound vehicles. is a freestanding version of an amend- President submits to the Congress the budg- (S) $1,000,000 for a demonstration site for a ment which the gentleman from Texas et of the United States Government for a fis- high-energy relocatable rail car inspection (Mr. DELAY) offered to H.R. 1252, the cal year, the Commissioner of Customs shall system with an x-ray source switchable from Judicial Reform Act of 1998, last submit to the Committee on Ways and 2,000,000 electron volts (2–MeV) to 6,000,000 Means of the House of Representatives and electron volts (6–MeV) at a shared Depart- month; April 23rd, to be exact. The ment of Defense testing facility for a two- House at that time overwhelmingly the Committee on Finance of the Senate the projected amount of funds for the succeeding month testing period. adopted the DeLay amendment by a fiscal year that will be necessary for the op- (2) UNITED STATES-CANADA BORDER.—For vote of 367 to 52. erations of the Customs Service as provided the United States-Canada border, the follow- I think it is a good bill. I think it for in subsection (b).’’. ing: (A) $3,000,000 for 4 Vehicle and Container will help keep convicted felons off the SEC. 102. NARCOTICS DETECTION EQUIPMENT streets, which of course is the intent, FOR THE UNITED STATES-MEXICO Inspection Systems (VACIS). in a constitutionally permissible man- BORDER, UNITED STATES-CANADA (B) $8,800,000 for 4 mobile truck x-rays with BORDER, AND FLORIDA AND THE transmission and backscatter imaging. ner. GULF COAST SEAPORTS. (C) $3,600,000 for 4 1–MeV pallet x-rays. Mr. SCOTT. Mr. Speaker, I yield (a) FISCAL YEAR 1999.—Of the amounts (D) $250,000 for 50 portable contraband de- back the balance of my time. made available for fiscal year 1999 under sec- tectors (busters) to be distributed among Mr. COBLE. Mr. Speaker, I yield tion 301(b)(1)(A) of the Customs Procedural ports where the current allocations are inad- back the balance of my time. Reform and Simplification Act of 1978 (19 equate. H3408 CONGRESSIONAL RECORD — HOUSE May 19, 1998 (E) $300,000 for 25 contraband detection kits (2) A net increase of 285 inspectors and ca- SEC. 203. CORRECTION RELATING TO PREMIUM to be distributed among ports based on traf- nine enforcement officers to be distributed PAY. fic volume. at large cargo facilities as needed to process (a) IN GENERAL.—Section 5(b)(4) of the Act (F) $240,000 for 10 portable Treasury En- and screen cargo (including rail cargo) and of February 13, 1911 (19 U.S.C. 267(b)(4)), is forcement Communications Systems (TECS) reduce commercial waiting times on the amended by adding after the first sentence terminals to be moved among ports as need- United States-Mexico border. the following new sentence: ‘‘Premium pay ed. (3) A net increase of 40 inspectors at sea provided under this subsection shall not be (G) $400,000 for 10 narcotics vapor and par- ports in southeast Florida to process and paid to any customs officer unless such offi- ticle detectors to be distributed to each bor- screen cargo. cer actually performed work during the time der crossing based on traffic volume. (4) A net increase of 300 special agents, 30 corresponding to such premium pay.’’. (3) FLORIDA AND GULF COAST SEAPORTS.— intelligence analysts, and additional re- (b) CORRECTIONS TO NIGHT WORK DIFFEREN- For Florida and the Gulf Coast seaports, the sources to be distributed among offices that TIAL PROVISIONS.—Section 5(b)(1) of such Act following: have jurisdiction over major metropolitan (19 U.S.C. 267(b)(1)) is amended to read as fol- (A) $4,500,000 for 6 Vehicle and Container drug or narcotics distribution and transpor- lows: Inspection Systems (VACIS). tation centers for intensification of efforts ‘‘(1) NIGHT WORK DIFFERENTIAL.— (B) $11,800,000 for 5 mobile truck x-rays against drug smuggling and money-launder- ‘‘(A) 6 P.M. TO MIDNIGHT.—If any hours of with transmission and backscatter imaging. ing organizations. regularly scheduled work of a customs offi- (C) $7,200,000 for 8 1–MeV pallet x-rays. (5) A net increase of 50 positions and addi- cer occur during the hours of 6 p.m. and 12 (D) $250,000 for 50 portable contraband de- tional resources to the Office of Internal Af- a.m., the officer is entitled to pay for such tectors (busters) to be distributed among fairs to enhance investigative resources for hours of work (except for work to which ports where the current allocations are inad- anticorruption efforts. paragraph (2) or (3) applies) at the officer’s equate. (6) The costs incurred as a result of the in- hourly rate of basic pay plus premium pay (E) $300,000 for 25 contraband detection kits crease in personnel hired pursuant to this amounting to 15 percent of that basic rate. to be distributed among ports based on traf- section. ‘‘(B) MIDNIGHT TO 6 A.M.—If any hours of fic volume. SEC. 104. COMPLIANCE WITH PERFORMANCE (b) FISCAL YEAR 2000.—Of the amounts PLAN REQUIREMENTS. regularly scheduled work of a customs offi- made available for fiscal year 2000 under sec- As part of the annual performance plan for cer occur during the hours of 12 a.m. and 6 tion 301(b)(1)(B) of the Customs Procedural each of the fiscal years 1999 and 2000 covering a.m., the officer is entitled to pay for such Reform and Simplification Act of 1978 (19 each program activity set forth in the budg- hours of work (except for work to which U.S.C. 2075(b)(1)(B)), as amended by section et of the United States Customs Service, as paragraph (2) or (3) applies) at the officer’s 101(a) of this Act, $8,924,500 shall be for the required under section 1115 of title 31, United hourly rate of basic pay plus premium pay maintenance and support of the equipment States Code, the Commissioner of the Cus- amounting to 20 percent of that basic rate. and training of personnel to maintain and toms Service shall establish performance ‘‘(C) MIDNIGHT TO 8 A.M.—If the regularly support the equipment described in sub- goals, performance indicators, and comply scheduled work assignment of a customs offi- section (a). with all other requirements contained in cer is 12 a.m. to 8:00 a.m., the officer is enti- (c) ACQUISITION OF TECHNOLOGICALLY SUPE- paragraphs (1) through (6) of subsection (a) of tled to pay for work during such period (ex- RIOR EQUIPMENT; TRANSFER OF FUNDS.— such section with respect to each of the ac- cept for work to which paragraph (2) or (3) (1) IN GENERAL.—The Commissioner of Cus- tivities to be carried out pursuant to sec- applies) at the officer’s hourly rate of basic toms may use amounts made available for tions 102 and 103 of this Act. pay plus premium pay amounting to 20 per- fiscal year 1999 under section 301(b)(1)(A) of TITLE II—OVERTIME AND PREMIUM PAY cent of that basic rate.’’. the Customs Procedural Reform and Sim- OF OFFICERS OF THE UNITED STATES SEC. 204. USE OF SAVINGS FROM PAYMENT OF plification Act of 1978 (19 U.S.C. CUSTOMS SERVICE; MISCELLANEOUS OVERTIME AND PREMIUM PAY FOR 2075(b)(1)(A)), as amended by section 101(a) of PROVISIONS ADDITIONAL OVERTIME ENFORCE- this Act, for the acquisition of equipment Subtitle A—Overtime Pay and Premium Pay MENT ACTIVITIES OF THE CUSTOMS other than the equipment described in sub- SERVICE. of Officers of the United States Customs section (a) if such other equipment— Service Section 5 of the Act of February 13, 1911 (19 (A)(i) is technologically superior to the U.S.C. 267), is amended— equipment described in subsection (a); and SEC. 201. CORRECTION RELATING TO FISCAL YEAR CAP. (1) by redesignating subsection (e) as sub- (ii) will achieve at least the same results Section 5(c)(1) of the Act of February 13, section (f); and at a cost that is the same or less than the 1911 (19 U.S.C. 267(c)(1)) is amended to read as (2) by inserting after subsection (d) the fol- equipment described in subsection (a); or follows: lowing: (B) can be obtained at a lower cost than ‘‘(1) FISCAL YEAR CAP.—The aggregate of the equipment described in subsection (a). ‘‘(e) USE OF SAVINGS FROM PAYMENT OF overtime pay under subsection (a) (including OVERTIME AND PREMIUM PAY FOR ADDITIONAL (2) TRANSFER OF FUNDS.—Notwithstanding commuting compensation under subsection any other provision of this section, the Com- OVERTIME ENFORCEMENT ACTIVITIES.— (a)(2)(B)) that a customs officer may be paid missioner of Customs may reallocate an ‘‘(1) USE OF AMOUNTS.—For fiscal year 1999 in any fiscal year may not exceed $30,000, ex- amount not to exceed 10 percent of— and each subsequent fiscal year, the Sec- cept that— (A) the amount specified in any of subpara- retary of the Treasury— ‘‘(A) the Commissioner of Customs or his graphs (A) through (R) of subsection (a)(1) ‘‘(A) shall determine under paragraph (2) or her designee may waive this limitation in for equipment specified in any other of such the amount of savings from the payment of individual cases in order to prevent excessive subparagraphs (A) through (R); overtime and premium pay to customs offi- (B) the amount specified in any of subpara- costs or to meet emergency requirements of cers; and graphs (A) through (G) of subsection (a)(2) the Customs Service; and ‘‘(B) shall use an amount from the Customs for equipment specified in any other of such ‘‘(B) upon certification by the Commis- User Fee Account equal to such amount de- subparagraphs (A) through (G); and sioner of Customs to the Chairmen of the termined under paragraph (2) for additional (C) the amount specified in any of subpara- Committee on Ways and Means of the House overtime enforcement activities of the Cus- graphs (A) through (E) of subsection (a)(3) of Representatives and the Committee on Fi- toms Service. for equipment specified in any other of such nance of the Senate that the Customs Serv- ‘‘(2) DETERMINATION OF SAVINGS AMOUNT.— subparagraphs (A) through (E). ice has in operation a system that provides For each fiscal year, the Secretary shall cal- accurate and reliable data on a daily basis on SEC. 103. PEAK HOURS AND INVESTIGATIVE RE- culate an amount equal to the difference be- SOURCE ENHANCEMENT FOR THE overtime and premium pay that is being paid tween— UNITED STATES-MEXICO AND to customs officers, the Commissioner is au- ‘‘(A) the estimated cost for overtime and UNITED STATES-CANADA BORDERS. thorized to pay any customs officer for one premium pay that would have been incurred Of the amounts made available for fiscal work assignment that would result in the during that fiscal year if this section, as in years 1999 and 2000 under subparagraphs (A) overtime pay of that officer exceeding the effect on the day before the date of the en- and (B) of section 301(b)(1) of the Customs $30,000 limitation imposed by this paragraph, actment of sections 202 and 203 of the Drug Procedural Reform and Simplification Act of in addition to any overtime pay that may be Free Borders Act of 1998, had governed such 1978 (19 U.S.C. 2075(b)(1)(A) and (B)), as received pursuant to a waiver under subpara- costs; and amended by section 101(a) of this Act, graph (A).’’. ‘‘(B) the actual cost for overtime and pre- $117,644,584 for fiscal year 1999 and $184,110,928 SEC. 202. CORRECTION RELATING TO OVERTIME mium pay that is incurred during that fiscal for fiscal year 2000 shall be available for the PAY. year under this section, as amended by sec- following: Section 5(a)(1) of the Act of February 13, tions 202 and 203 of the Drug Free Borders (1) A net increase of 535 inspectors, 120 spe- 1911 (19 U.S.C. 267(a)(1)), is amended by in- Act of 1998.’’. cial agents, and 10 intelligence analysts for serting after the first sentence the following the United States-Mexico border and 375 in- new sentence: ‘‘Overtime pay provided under SEC. 205. EFFECTIVE DATE. spectors for the United States-Canada bor- this subsection shall not be paid to any cus- This subtitle, and the amendments made der, in order to open all primary lanes on toms officer unless such officer actually per- by this subtitle, shall apply with respect to such borders during peak hours and enhance formed work during the time corresponding pay periods beginning on or after 15 days investigative resources. to such overtime pay.’’. after the date of the enactment of this Act. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3409 Subtitle B—MISCELLANEOUS PROVISIONS ‘‘(B) FAILURE TO REACH AGREEMENT.—If the Customs service and the Clinton ad- SEC. 211. ROTATION OF DUTY STATIONS AND parties do not reach agreement within 90 ministration support for this bill has TEMPORARY DUTY ASSIGNMENTS OF days of the date that the Commissioner of been anything but unwavering. Last OFFICERS OF THE UNITED STATES Customs made the determination of adverse Tuesday at the subcommittee markup CUSTOMS SERVICE TO PROMOTE IN- impact, the negotiations shall be considered TEGRITY. at impasse and the Commissioner of Customs of this legislation, the U.S. Customs (a) IN GENERAL.—Section 5 of the Act of may immediately implement the last offer of Service said they supported each and February 13, 1911 (19 U.S.C. 267), as amended the Customs Service. Such implementation every provision of this bill, including by this Act, is further amended— shall not result in an unfair labor practice provisions that I expect will be heat- (1) by redesignating subsection (f) as sub- or, except as may be provided under the fol- section (g); and edly debated today. lowing sentence, the imposition of any sta- (2) by inserting after subsection (e) the fol- But sadly, it appears as though tus quo ante remedy against the Customs lowing: Washington’s labor bosses have tight- Service. Either party may then pursue the ‘‘(f) ROTATION OF DUTY STATIONS AND TEM- ened their grips on the Clinton admin- impasse to the Federal Service Impasses PORARY DUTY ASSIGNMENTS OF CUSTOMS OFFI- Panel pursuant to section 7119(c) of title 5, istration, and even on its drug czar. CERS.— United States Code, for ultimate resolution. Politics, unfortunately, has entered ‘‘(1) IN GENERAL.—Notwithstanding any into the decision-making process of the other provision of law, bargaining agree- ‘‘(C) RULE OF CONSTRUCTION.—Nothing in ment, or Executive order, in order to ensure this paragraph shall be construed to limit administration, because by last Thurs- the integrity of the United States Customs the authority of the Commissioner of Cus- day, U.S. Customs had reversed its po- Service, the Secretary of the Treasury— toms to implement immediately any pro- sition and no longer supports this bill ‘‘(A) may transfer up to 5 percent of the posed changes without waiting 90 days, if ex- to beef up our borders against drugs. customs officers employed as of the begin- igent circumstances warrant such immediate Today the administration is back- ning of each fiscal year to new duty stations implementation, or if an impasse is reached in less than 90 days.’’. tracking. It now supports the bill, but in that fiscal year on a permanent basis; and opposes one of its most significant ele- ‘‘(B) may transfer customs officers to tem- The SPEAKER pro tempore. Pursu- ments because of labor opposition, and porary duty assignments for not more than ant to the rule, the gentleman from an element, I must say, that was en- 90 days. Texas (Mr. ARCHER) and the gentleman couraged to be put in the bill by the ‘‘(2) VOLUNTARY AND OTHER TRANSFERS.—A from California (Mr. MATSUI) each will transfer of a customs officer to a new duty Customs Department itself to enable it control 20 minutes. station or a temporary duty assignment The Chair recognizes the gentleman to do a better job. under paragraph (1) is in addition to any vol- I am deeply disappointed in the ad- from Texas (Mr. ARCHER). untary transfer or transfer for other reasons. ministration’s change of heart, driven GENERAL LEAVE ‘‘(3) ADDITIONAL REQUIREMENT.—The re- by politics, to put the interests of quirements of this subsection, including any Mr. ARCHER. Mr. Speaker, I ask regulations established by the Secretary to unanimous consent that all Members Washington’s labor bosses above the carry out this subsection, are not subject to may have 5 legislative days within well-being of children like Anthony collective bargaining. which to revise and extend their re- Butler from Annapolis, Maryland. ‘‘(4) AUTHORIZATION OF APPROPRIATIONS.— marks and include extraneous material Let me make clear the provisions do ‘‘(A) IN GENERAL.—There are authorized to one thing and one thing only: They be appropriated for fiscal year 2000 $25,000,000 on H.R. 3809. The SPEAKER pro tempore. Is there help win the war on drugs. One provi- to carry out this subsection. sion gives Customs the flexibility to ‘‘(B) AVAILABILITY OF AMOUNTS.—Amounts objection to the request of the gen- authorized to be appropriated under subpara- tleman from Texas? deploy personnel where they are needed graph (A) are authorized to remain available There was no objection. most. Drug smugglers do not work 9 to until expended. Mr. ARCHER. Mr. Speaker, I yield 5, and our Nation’s front line of defense ‘‘(5) RULE OF CONSTRUCTION.—The author- myself such time as I may consume. in the war on drugs cannot work 9 to 5, ity provided by this subsection may be exer- Mr. Speaker, as my colleagues know, either. cised only to the extent that in the applica- drug use among teenagers is now sky- Another says if a group of employees ble appropriations Act (or in the committee rocketing. This Congress is dedicated under the collective bargaining agree- report or joint statement of managers to such Act) an account is specifically estab- to winning the war on drugs because ment refuses to work with Customs on lished for the authority provided by this sub- our very children’s lives are at stake. drug interdiction, thus undermanning section.’’. Last week Anthony Butler, a 17-year- the war on drugs, Customs must bring (b) EFFECTIVE DATE.—Section 5(f) of the old from Annapolis, Maryland, told the the matter to negotiations for 90 days. Act of February 13, 1911, as added by sub- Congress that he started smoking If there is no resolution, Customs may section (a), shall take effect on October 1, marijuana when he was 12 years old, implement its last offer, so that Cus- 1999. age 12. At age 13 he was sentenced to toms can stop drugs from crossing our SEC. 212. EFFECT OF COLLECTIVE BARGAINING juvenile life after being found guilty of AGREEMENTS ON ABILITY OF border while the union pursues its rem- UNITED STATES CUSTOMS SERVICE several crimes. He said drugs were, and edies. TO INTERDICT CONTRABAND. I quote, ‘‘* * * easy to get. They were b 1415 Section 5 of the Act of February 13, 1911 (19 everywhere.’’ During those years they U.S.C. 267), as amended by this Act, is fur- were available even in his juvenile de- One procedure that is being blocked ther amended— tention center, Boys Village in Prince today by a local union is used every- (1) by redesignating subsection (g) as sub- Georges County. where else along the U.S.-Mexico bor- section (h); and der, resulting in 50 percent seizure of (2) by inserting after subsection (f) the fol- This young man could be anyone’s lowing: son, grandson, nephew, or little broth- all drugs in one site, San Ysidro, Cali- ‘‘(g) EFFECT OF COLLECTIVE BARGAINING er. The point is, we are losing the war fornia. We need to join together to pro- AGREEMENTS ON ABILITY OF CUSTOMS SERVICE on drugs, and the statistics are grim. tect our children from the scourge of TO INTERDICT CONTRABAND.— More kids are using marijuana, more drugs. This is not a time for partisan ‘‘(1) SENSE OF THE CONGRESS.—It is the kids are using cocaine, more kids are politics or for special interest influence sense of the Congress that collective bar- using heroin, more kids are risking in either party. We must put our chil- gaining agreements should not have any ad- dren first. verse impact on the ability of the United their lives, and more kids are dying. States Customs Service to interdict contra- Mr. Speaker, this bill will help keep Mr. Speaker, I reserve the balance of band, including controlled substances. drugs out of our children’s hands and my time. ‘‘(2) PROVISIONS CAUSING ADVERSE IMPACT out of their lives. We must stop drugs Mr. MATSUI. Mr. Speaker, I yield TO INTERDICT CONTRABAND.— from coming across our borders. Last myself such time as I may consume. ‘‘(A) REQUIREMENT TO MEET.—If the Com- year the Customs Service seized 1 mil- H.R. 3809 poses an unfortunate di- missioner of the Customs Service determines lion pounds of narcotics, and impres- lemma for many Members. On the one that any collective bargaining agreement sive as that is, Anthony Butler still hand, it authorizes additional re- with the recognized bargaining representa- sources needed by the United States tive of its employees has an adverse impact was able to get drugs at the drop of a upon the interdiction of contraband, includ- hat, and that, Mr. Speaker, is frighten- Customs Service for antidrug enforce- ing controlled substances, the parties shall ing. ment. On the other hand, it contains meet to eliminate the provision causing the Mr. Speaker, the reasons to step up provisions affecting Customs employ- adverse impact from the agreement. the war on drugs are clear, yet the U.S. ees and their collective bargaining H3410 CONGRESSIONAL RECORD — HOUSE May 19, 1998 rights in particular, which are con- Mr. HOYER. Mr. Speaker, will the and this lane of traffic has a Customs troversial and do not have bipartisan gentleman yield? inspector and, in fact, in El Paso they support. Mr. MATSUI. I yield to the gen- sit up on the bridge over in Mexico and Title I of the bill authorizes appro- tleman from Maryland. they look with their binoculars and priations for the Customs Service for Mr. HOYER. Mr. Speaker, I thank they say, with their telephones, go into fiscal years 1999 and 2000, as requested the gentleman for yielding to me and lane 3 because an INS inspector is by the President, plus additional funds certainly want to associate my com- there and they cannot lift the trunk authorized specifically for additional ments with his. because that is in the contract. And we equipment and personnel to strengthen Section 203 also is of some concern in know that the drug smugglers know enforcement along our borders against that it impacts on the premium pay who these people are. They know what illegal drugs and other contraband. that is earned by Customs employees. I lane they are in. They said, we cannot The $90 million earmarked for the would say to my friend from Florida, get everything we should get because latest equipment and technology and who is managing the bill, and my these union contracts stand in our way. the $301 million earmarked over 2 prior friend from California, I intend to vote When I talk about that to my folks years for an additional 1,745 Customs for this bill when it comes up for a back home, they say, well, that is a inspectors, special agents and other vote, voice vote or however it will be. common-sense thing. Why do we not personnel are necessary for additional But I will be watching very closely, as change things that should be changed? resources to detect and interdict ille- the gentleman from California indi- The other problem, part of this prob- gal drugs. cates, what happens in conference. lem, if we have a Customs agent who Mr. Speaker, the problem with this Very frankly, what was done as it re- has been on a job and, according to bill, however, is two provisions in the lates to the employees and to the in- their contract, they can bid on a job bill which Democrats opposed in the tegrity of the contracts that they have and they can live on the border for 20 Committee on Ways and Means, sec- negotiated and entered into gives me years, the same place, their brother-in- tions 211 and 212. These two sections great concern. That is not the thrust of law can live across the border. It is would allow Customs managers to ab- this bill, but it is one of the tangential common sense that maybe the poten- rogate unilaterally collective bargain- impacts that I think should give every- tial for corruption happens when some- ing agreements between Customs man- body in this House concern. I hope that body is too long in one place and too agement and Customs employees and in conference these concerns will be ad- close to situations. Maybe we ought to to regulate the collective bargaining dressed, this facet of it will be fixed, so change that; and when the contract process as it applies to the temporary that the very positive aspects of this comes up to be renewed, maybe those reassignment of Customs inspectors bill can go forward. are the things that ought to be renego- and the interdiction of contraband. I thank the gentleman for yielding to Specifically, section 211 authorized tiated. me. So I take my hat off to the gen- Customs management to reassign its Mr. MATSUI. Mr. Speaker, I reserve employees without regard to any exist- tleman from Illinois (Mr. CRANE), the the balance of my time. ing executive order, Federal law or col- gentleman from Texas (Mr. ARCHER), The SPEAKER pro tempore (Mr. lective bargaining agreement. Section and the gentleman from Florida (Mr. SHIMKUS). Without objection, the gen- 212 authorizes Customs to determine SHAW) for coming forward with a good, tleman from Florida (Mr. SHAW) is rec- whether a collective bargaining agree- common-sense bill. ognized to control the time. ment has an adverse impact on the That is not all this bill does. It also There was no objection. interdiction of contraband and to im- brings in 1700 new officers so that we Mr. SHAW. Mr. Speaker, I yield my- plement a management action if agree- can attack smuggling from Florida, the self such time as I may consume. Gulf Coast and our southwest and Ca- ment is not reached within 90 days I would point out to my friend from with the union. Under exigent cir- nadian borders. This bill puts some California that the vote in the Com- cumstances, whatever Customs basi- teeth into what we need to do. mittee on Ways and Means was unani- cally determines them to be, manage- I support it and ask for Members’ mous; all that were there voted for it ment action may be implemented im- positive vote. with, I believe, one Member voting mediately. Mr. MATSUI. Mr. Speaker, I yield 3 In short, Mr. Speaker, Customs is present. There were no negative votes. minutes and 30 seconds to the gen- being authorized to ignore and abro- It is a very well-thought-out bill. tleman from Michigan (Mr. LEVIN). gate collective bargaining agreements I would also tell my friend from (Mr. LEVIN asked and was given per- negotiated in good faith. That is the Maryland that we believe that we took mission to revise and extend his re- major problem with this legislation. care of the problem with regard to the marks.) I might just point out to the chair- existing contract in that the provision Mr. LEVIN. Mr. Speaker, if there is man of the Committee on Ways and that was talked about as abrogating any domestic issue that deserves ac- Means that the administration is not the rights of a contract does not take tion across party lines, this is it, drugs. opposing this provision because of spe- place until the existing contract ex- My staff and I have worked actively in cial interests or because of labor. It is pires in 1999. Also, there is a provision this fight against drugs as a number because the administration believes within that contract that very specifi- one priority in Washington and at that contracts should not be abrogated. cally states that if the law should home. I think it is about time that the ma- change during the period of the labor At home, we have worked building jority begin to stop considering it a contract, that the law would certainly antidrug coalitions, always non- conspiracy every time something that prevail. partisan, always across all kinds of they disagree with happens. They Mr. Speaker, I yield 2 minutes to the lines involving parents and students should stop looking under the bed or gentleman from Illinois (Mr. HASTERT). and teachers, leaders in the business opening up closets. Maybe they might Mr. HASTERT. Mr. Speaker, I thank community, law enforcement and reli- then come to the realization that the gentleman from Florida for yield- gious communities. sometimes these decisions are made ing me the time. The administration announced a 10- based upon good faith and certainly This bill has been a long time com- year national drug strategy, and it ad- upon good policy and good judgment. ing. I have taken about four or five dresses supply and demand factors, Most of the Members on our commit- trips to the border myself to try to both of them. The strategy calls for an tee did support this legislation. It is look at the problems, understand what enhanced border effort. my hope that when this matter goes to is going on. When some of us were in Chile with the House-Senate conference that we If we go to Tijuana, the crossing the President at the summit of the can correct section 211 and section 212, there, if we go to Laramie, if we go to Presidents of the Americas, we met which certainly need major revisions, El Paso, if we go to Nogales, what they with the President and discussed espe- if, in fact, this bill is eventually to get tell us time after time is, Congress- cially this border problem. And he said to the President and certainly before man, we have a problem. Because if to us, a bipartisan group, will you work the President will sign this legislation. this lane of traffic has an INS inspector with me to enhance border efforts on a May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3411 bipartisan basis? And the answer from Today, 70 percent of high school sen- mation that we hear here about one all of us on a bipartisan basis was yes. iors tell us they can get drugs within 24 agency being able to open trunks and The main part of this bill embodies hours. Given where we are, given the the other agency not being able to open that spirit, an enhanced effort at the situation, I think that this legislation trunks. To suggest that a collective border. It was worked out on a biparti- is a good balance. I think it is a good bargaining contract leads to corruption san basis. way to be sure that we are doing a is ridiculous. That is not true of subtitle B of title much better job on the border, which I patrolled our border for more than II, so-called miscellaneous provisions. we have to do. 26 years with the Border Patrol and The gentleman from Illinois says this There are a series of changes in here. also served as an inspector at our ports bill has been a long time in coming, It increases the number of inspectors of entry for 4 years. I know what the but these provisions, abrogation of con- and special agents. It increases re- men and women of our borders are tract provisions, were sprung without a sources at the border, something the asked to do on a daily basis. I know the hearing at the last minute last Tues- gentleman from Michigan (Mr. LEVIN) dedication they pour into their work day without any bipartisan discussion said the President is in favor of. each and every day to keep our com- whatsoever. Those are the facts. We are doing this on a bipartisan munities safe. The chairman of the committee has basis. It enhances the technology avail- I do not understand how this body talked that we should not politicize able to them. Others are going to talk can vote on a bill which will send many drugs, and how true it is; but that is more about this, but it is amazing the of our customs inspectors home to exactly what the majority does when degree to which these Customs officers their families with less pay and will they raise provisions without talking are now asked to work with poor tech- take away their current negotiating to us for one second, at the last nology, dealing with thousands and rights. I do not understand how we can minute, without any hearings on a bill thousands of drugs coming across busy be so hypocritical as to ask our inspec- that is a long time in coming. border crossings made busier by tors to do more but give up their rights These provisions may not go into ef- NAFTA, which I supported and many while serving as a first line of defense fect this year, but when they go into other Members on both sides did. We on our borders. effect, they give a government agency need to give them the technology to I think I do understand how we work the power to abrogate a collective bar- check these trucks. in this House but I do not agree with it. gaining agreement, a contract, without b 1430 The reason that our borders and our any standards; and it seems to me that Finally, the flexibility to be able to fight against drugs does not work is be- those of us who believe in the contract deploy these resources where they are cause too often in this House we make provisions, who believe in the contract needed. If we are to have a real war on it a political issue. I make it a practice process in this country, that they drugs, we have to fight it like a war. to act in the best interest of our border would hesitate before setting this kind We have to give the Customs Service and do not politicize the needs of our of a precedent. the flexibility to put personnel where border. I am going to vote for this bill. I am they are needed, and that includes ro- I am a cosponsor of the bill offered by hoping that the Senate will look at tations, and that includes nighttime the gentleman from California (Mr. UNTER), which increases our Border these provisions. They already have a service, and that includes the ability to H Patrol presence and gives our agents bill that authorizes the Customs De- be flexible to respond to ever-changing more flexibility while doing their jobs partment. It does not contain these border situations, because the smug- because it is the right thing to do. He contract abrogation provisions. glers will find a new way to come in is a cosponsor of my bill to separate Let us pass this along to the Senate, every chance they get. hoping that they will keep what is nec- So to me this is kind of a basic com- the enforcement functions of the INS essary here, the fight against drugs, monsense response. If we are serious and create a new agency, again because and remove the political parts of this about drugs, we have to do it. It is a it is the right thing to do. It serves the bill. reasonable response to a crisis situa- needs of our communities, not the Mr. SHAW. Mr. Speaker, I yield my- tion. needs of our political agendas. I stand here today deeply disturbed self 15 seconds to reply to the gen- Mr. MATSUI. Mr. Speaker, I yield 1⁄2 tleman from Michigan. minute to the gentleman from Michi- with this body, because the legislation The provision that he is claiming gan (Mr. LEVIN). that is pending before us has nothing that is politicized came from the ad- Mr. LEVIN. Mr. Speaker, I just want- to do with the border, it has nothing to ministration. We did not jump this or ed to say to my friend from Florida do with fighting drugs; it has every- spring this on the Democrats. This was that we discussed this in the Commit- thing to do with politics. When are we requested by the Customs Department tee on Ways and Means and it was clear going to act in the best interest of our themselves. that the staff of the majority discussed border communities and pass legisla- Mr. Speaker, I yield 2 minutes to the this and helped initiate this. Maybe tion which addresses the needs of our gentleman from Ohio (Mr. PORTMAN). discussed it with the administration. drug enforcement agencies? Mr. PORTMAN. Mr. Speaker, as we We are waiting for the evidence. But We should not use the issue to push debate this bill today to tighten up the there was not the full discussion with political agendas. If this bill is de- border and clamp down on drugs com- the minority. There was no discussion signed to make some Members look ing into this country, I think it is with us. bad and choose between much-needed probably appropriate to pause and re- And maybe this is part of what was personnel and technology and the member why we are here. described in the Washington Post, an rights of our agents and inspectors who We do have an increasing drug prob- effort by the Republicans to politicize enforce our narcotics and immigration lem in this country. We have had a this issue instead of coming together. laws, then shame on us for politicizing doubling of teenage drug use in the last So I urge we move ahead with this bill the security and the integrity of our 5 years in this country. Prices are but look at the bad provisions in con- borders and misusing the trust and down; volumes are up. We have a crisis. ference. faith placed in us by our communities. I have focused more on the demand Mr. MATSUI. Mr. Speaker, I yield 31⁄2 No one in this body today should fall side, on the prevention/education side, minutes to the gentleman from Texas into this trap. I refuse to compromise because I think that is ultimately how (Mr. REYES). the security of our Nation and the we are going to solve this problem. We Mr. REYES. Mr. Speaker, I thank the rights of our hard working and dedi- also have to acknowledge that to the gentleman for yielding me this time. I cated agents and inspectors. We all owe degree to which we have high volumes appreciate he does not have a lot of it to our men and women who stand on and low prices on the street, we are time, and in 31⁄2 minutes I cannot tell the border of this great country, keep- going to have an increasing problem on my colleagues the frustration of work- ing our families and our communities the demand side. So they are linked. ing in this body. safe, and ask nothing in return except That point has been made to me a lot The reason I rise in strong opposition the fundamental right of fair treat- by my colleagues, and I am a believer. to this bill, among many, is the infor- ment. H3412 CONGRESSIONAL RECORD — HOUSE May 19, 1998

I ask all my colleagues, based on 261⁄2 must rely on to fight that battle. H.R. very apparent we have a big time prob- years of experience in fighting drugs, 3809 gives us tools in this tough battle lem. We need education, we need train- in fighting illegal immigration on our but puts those who will use the tools ing, we need drug treatment, but we borders, to oppose this bill. There were into straightjackets. also have to stop the flow of drugs no hearings held. This is a mishmash Provisions of this bill will rob Cus- coming into this country. This is one and a missed opportunity to do what is toms employees, who are the frontline piece in that puzzle that deals with the right. drug enforcement personnel, of both Customs Service, and it is a very good Mr. SHAW. Mr. Speaker, may I in- their hazard pay to work essential piece in that puzzle. quire as to the time remaining on ei- nighttime shifts and their negotiating In order to stop the flow of drugs ther side? rights. This makes no sense at a time from coming in here, or at least to cut The SPEAKER pro tempore (Mr. when we are asking these soldiers to back about 80 percent, which is what is SHIMKUS). The gentleman from Florida work harder and smarter with new necessary for us to increase the price of (Mr. SHAW) has 93⁄4 minutes remaining, high-tech equipment. drugs on the streets and reduce the and the gentleman from California (Mr. I say to the distinguished chairman amount that is available, that is flood- MATSUI) has 81⁄4 minutes remaining. of this committee and to the distin- ing our streets, and make the job of de- Mr. SHAW. Mr. Speaker, I yield 2 guished gentleman from Arizona (Mr. mand easier, then we have to do things minutes to the gentleman from Ari- HAYWORTH) that we are not talking in the source countries to reduce the zona (Mr. HAYWORTH), a distinguished here about union bosses, we are not flow of drugs out of Colombia, Peru, member of the Committee on Ways and talking about special interests, we are Bolivia, places like that, Mexico, and Means. talking about the men and women who we have to stop the drugs when they Mr. HAYWORTH. Mr. Speaker, I are fighting the war on drugs. are coming across our coastal waters, thank my colleague from Florida for This bill would allow Customs Serv- but we also have to stop them at our yielding me this time. ice management to back out of agree- borders. I listened with great interest to my ments made with rank-and-file employ- That is where the Border Patrol friend from Texas and his very unique ees. And because armies are dependent comes in, the Coast Guard comes in, perspective, and he raises an interest- on the loyalty and respect between sol- DOD, DEA, everybody, but Customs is ing question that I think we should all diers and officers, we cannot win the a very important part of that. This bill take into account: workers’ rights ver- war on drugs if management makes would put $960 million of new money at sus workers’ responsibilities. I was in- agreements with employees but then this effort through Customs. It is a 31 trigued to hear many Members of the has the congressional approval to percent increase over the President’s minority even offering that predictable break them at will. request for Customs. It would mean cacophony of complaints prompted by Congress will waste taxpayers’ 1,705 new personnel and all kinds of the Washington union bosses, and I money if it authorizes expensive cut- new equipment, including x-ray equip- have a couple of letters here urging op- ting-edge equipment while at the same ment at our borders, not only the bor- position to this legislation. time undermining employee morale ders with Mexico and the United States But I think it is a fair question to and labor standards. A drug interdic- but Canada and the United States and ask: Do workers’ responsibilities ever tion program for the century depends along the coast of Florida, which is rank preeminently as opposed to coex- on 21st century equipment and a 21st very important to our State in the re- century work force. The Customs Serv- isting with workers’ rights? Because gion where I come from. ice will not be able to retain or attract This is a very, very important bill to what we have, my colleagues, is a full- the high quality employees needed to beef up the Customs portion and to put fledged crisis. And even though our operate upgraded equipment if it down- us on track where we can actually have drug czar, General McCaffery, today grades the labor standards. the right personnel, the right equip- would criticize us for using the term This bill should not be passed in its ment at every level, in source coun- ‘‘war on drugs,’’ Mr. Speaker, that is present form, Mr. Speaker. The aim of tries, transit and at the border, to real- exactly what we should be committed this bill is good, but it has not gone ly fight a true war against drugs. And to do. through the normal legislative process I urge the adoption of this drug border If we are serious about stopping this to fix the problems. Let us defeat this enforcement, Drug-Free Border Act flow of drugs, that means that all bill today, fix the problems, bring it that the gentleman from Florida (Mr. available personnel should be called back under regular order for a unani- SHAW), the gentleman from Illinois into action to do their jobs. And when mous vote of support. (Mr. CRANE) and others are sponsoring it comes to collective bargaining, Let us make this war on drugs, I say today. though I am pleased to admit the JD in to my friends on the other side of the Mr. MATSUI. Mr. Speaker, I yield 2 my name does not stand for Juris Doc- aisle, unanimous. Let us not politicize minutes to the gentlewoman from Cali- tor, I am not a lawyer and never played it with this kind of bill that was fornia (Ms. WATERS). one on TV, and I consider that an brought with only a few days’ notice, Ms. WATERS. Mr. Speaker, I rise in asset, but it is a well-held legal fact that undermines the men and women support of this bill to support U.S. Cus- that this body can change the terms of who are going to fight this war. toms’ interdiction efforts with the lat- any agreement involving Federal work- Mr. SHAW. Mr. Speaker, I yield 2 est high-tech equipment for detecting ers and workers’ agreements. minutes to the distinguished gen- narcotics coming through commercial What we have, Mr. Speaker, is a tleman from Florida (Mr. MCCOLLUM), trade, although I am going to work to chance to go on record. What do we the chairman of the Subcommittee on remove the anti-worker provisions the hold in higher esteem: A collective bar- Crime of the Committee on the Judici- Republican leadership has stuck in this gaining agreement or the future of our ary. bill. children and interdicting drugs? This (Mr. MCCOLLUM asked and was The eradication of illegal drugs in should be all about drug interdiction given permission to revise and extend our society is a number one priority of and it has very little to do with work- his remarks.) the Congressional Black Caucus. We ers’ rights. Mr. MCCOLLUM. Mr. Speaker, I put it in our priority statement over Mr. Speaker, I urge passage of the thank the gentleman for yielding me two years ago and we have been work- legislation. this time, and I want to commend the ing very hard. I am pleased that the Mr. MATSUI. Mr. Speaker, I yield 21⁄2 gentleman from Florida (Mr. SHAW) Republican leadership has finally got- minutes to the gentleman from Califor- and the others who sponsored this bill. ten around to calling for funding the nia (Mr. FILNER). It is a terrific piece in the puzzle to get sophisticated antidrug technology that Mr. FILNER. Mr. Speaker, I thank us back to the point where we are actu- we possess. I was calling for this during the gentleman for yielding me this ally fighting a war against drugs; the debate over fast track, when I put time. where we are putting the full energy of out a major report on the effect of Yes, we must be relentless, Mr. this country where it needs to be. NAFTA and other trade treaties on the Speaker, in our war on drugs, but not With double the teenage drug use in increase of drug trade through com- at the expense of the soldiers whom we the last six years in this country, it is mercial trucks and ships. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3413 Unfortunately, neither the Repub- time limit, and it says, ‘‘If you cannot the first line of defense against the lican leadership nor the drug czar get your ducks in order within 90 drugs flowing into our country. Why wanted to address the drugs and trade days,’’ and we have had examples that attack them? They did not create the then. I could not even get the Repub- have been pointed out that have been drug problem. This is where H.R. 3809 lican Members of this House to accept as long as 4 years and running where becomes an extreme and radical meas- a copy of the report that I put together opportunities to make agreements be- ure. talking about what was going on. tween the union members and manage- Customs agents have freely chosen to I also introduced my legislation Jan- ment have not been worked out, ‘‘exi- belong to a union, and they worked uary 27, 1998, that calls for funding so- gent circumstances can be grounds for with Customs management to establish phisticated high energy container x- making these changes.’’ one of our Nation’s most innovative ray systems and automated targeting Let me just give my colleagues an ex- labor-management partnerships. This systems for inspection of cargo at ample of what exigent circumstance bill would punish them for their ef- major border checkpoints. I am pleased might be. Back this last year, in March forts. This bill would allow the Com- that this bill will authorize these in- of 1997, the FBI intelligence discovered missioner of the Customs Service to spection systems. Some would say the that there was a drug smuggling ring unilaterally cancel any aspects of the Republicans stole my legislation, but on the border of California that was collective bargaining agreement. The whether they did or not, I am glad that going to use extreme measures in retal- bill would destroy the collective bar- they finally caught up. iation for lost shipments of drugs; and, gaining process in the Customs Serv- I must say I do have reservations so, what the Customs Service did was ice. about some of the provisions that have they said to their workers, ‘‘You are This is wrong. Government workers been stuck in the bill. I think it was in ordered to wear bullet-proof vests and have rights. Why, in the name of the there because it was supposed to scare body armor.’’ And so what happened? fight against drugs, do we have legisla- away people who are friends to orga- Union representatives said, ‘‘That is tion in front of us which attacks the nized labor, but we are not running not in our contract. We don’t have to.’’ rights of working people? Mr. Speaker, from this. We will straighten it out in Well, body armor and bullet-proof I submit that there ought to be reha- conference. The Senate put it in. They vests are not just there for the protec- bilitation for those who want to knock did it right. This provision that my tion of the one person who wears it or down wages and benefits of workers in colleagues on the other side have put a union member. It is there to protect the name of fighting drugs. Mr. MATSUI. Mr. Speaker, may I in- in is just a poison pill, but I will sup- the border. And it in that kind of exi- quire of the amount of time we have on port the bill and work to take that out. gent circumstance that the Customs our side? Department needs to be able to suggest I want my colleagues to know we The SPEAKER pro tempore (Mr. must commend this administration for that current union contracts do not SHIMKUS). The gentleman from Califor- the big money-laundering bust that stand in the way of bullets flying at nia (Mr. MATSUI) has 13⁄4 minutes re- just took place. I am going to know my the border. Body armor stands in the maining. colleagues are serious when they join way, possibly. Mr. MATSUI. Mr. Speaker, I yield me on the money laundering bill that So not contracts, not union organiza- the balance of my time to the gen- takes some of the American banks into tions, but exigent circumstances in tleman from California (Mr. BECERRA). the 21st century. this instance needed to be the grounds Mr. BECERRA. Mr. Speaker, I thank Mr. SHAW. Mr. Speaker, I yield 21⁄2 for this extreme measure. It needs to the gentleman for yielding me the minutes to the gentleman from Iowa be part of this bill. The Customs Serv- time. (Mr. NUSSLE), a distinguished member ice has asked for it. It has been biparti- Let me begin by saying that I fully of the Committee on Ways and Means. san. Let us vote for this bill. support the funding increases in this Mr. NUSSLE. Mr. Speaker, I thank Mr. MATSUI. Mr. Speaker, I yield 21⁄2 bill for drug interdiction. That should the gentleman for yielding me this minutes to the gentleman from Ohio have and could have been the focus of time. By the way, that was bipartisan- (Mr. KUCINICH). this debate. Unfortunately, at the last ship. I am glad that there are at least Mr. KUCINICH. Mr. Speaker, I thank moment, provisions were added to this some folks that are coming down here the gentleman for yielding me the bill which changes character and also in a very bipartisan way talking about time. made it an anti-worker bill. Why this drugs but, unfortunately, that is not Mr. Speaker, like all working fami- bill takes a swipe at workers I do not happening all the way across the board. lies in this country and Members of understand, but it does. Just to clear up a couple of things this body, I am committed to the fight Sections 221 and 222 of title II of this that have been discussed here today. I against illegal drugs flowing into our bill would remove the negotiating was at a meeting. It was not staff that country across our borders. We need to rights for front-line drug enforcement had the meeting with Customs about strengthen our efforts to halt the flood personnel, the very people that we are whether or not to put these changes in of drugs to our cities and suburbs and asking to take on this risky task of in section B. I was at the meeting. States. This is the context, Mr. Speak- stopping drugs from coming through. They asked for it. They are part of the er, in which I rise to oppose H.R. 3809. On one day in April of last year, two administration. It has been a biparti- I believe that the drug issue is too U.S. Customs Inspectors were shot. At san effort to make these changes from important to clot it with anti-Customs the same time that same day, there the beginning. If somebody did not hap- Service worker provisions, wherever was a bomb threat in a cross-border pe- pen to be at the meeting, that is not those provisions came from. This meas- destrian tunnel, and there was a 100- my fault. ure is far too controversial to be con- mile pursuit of a truck filled with im- sidered under the suspension calendar. migrants who had no right to be in this b 1445 It needs to be sent back to the Com- country, this truck barreling through a That is not Customs’ fault. But this mittee on Rules for full consideration. border checkpoint and almost running has been going on for a long time. And This bill has a number of laudable as- down a Border Patrol agent. Those are I realize that there are a few people pects. It increases funds authorized for the kinds of things that happen. that have got their noses out of joint. Customs Service to use for drug inter- Those employees put their life on the But it is not because, I do not believe, diction activities, earmarks money for line. They should have every right to they believe we should not be doing the hiring of more than 1,700 new Cus- decide under what conditions they things about drugs. It is for other rea- toms inspectors, special agents, K–9 en- would work. sons. forcement officers, provides for a vari- Now, management does not have to Let me just tell my colleagues a lit- ety of new high-tech equipment. agree to everything; and that is what tle bit about this bill that I think we But illegal drugs will not be stopped the collective bargaining process is for. need to consider. One is that there is by technology or money alone. Drugs If we allow the process to work, it no abrogation of contract. All right? will be halted by the motivated and would work very well. Unfortunately, There is no such thing as that in this dedicated people who work for the Cus- even in this own House, we do not fol- bill. What there is is that there is a toms Service. These civil servants are low process. H3414 CONGRESSIONAL RECORD — HOUSE May 19, 1998 This bill was introduced on May 7. payment for work not even performed This is doable if we make the commitment. We had a hearing on April 20 on Cus- should stop. Who can argue with that? The end result will be to make involvement toms’ issues. So at the hearing itself on Night pay at noontime should stop. with drug trade a dangerous occupation from these issues, we never took up this bill Who can argue with that? Any savings the fields where the drugs are produced to the nor those anti-worker provisions. May resulting from the elimination of these street corners of our cities and neighborhoods, 12, this went before the subcommittee; problems should fund additional drug and all points between. May 14, it went before the subcommit- enforcement efforts. Who can argue MR. GILMAN. Mr. Speaker, I rise today in tee; and today it is on the floor. with that? strong support of H.R. 3809, the Drug Free Never once have we had a chance to To ensure the integrity of the United Borders Act. This legislation provides a much discuss these anti-worker provisions. States Customs Service, H.R. 3809 needed increase in the authorization for the We would all probably be standing sup- would allow the Secretary of the Treas- U.S. Customs Service to fight the entry of ille- porting this bill if it were not for the ury to rotate up to 5 percent of the gal drugs at our borders. fact that, at the last moment, anti- Customs officers as of October 1, 1999. The last four years have shown a steady in- worker provisions were added. It is a This provision would become effective crease in the number of drug users, particu- way to cloak those ugly provisions and after the conclusion of the current con- larly in adolescents. Teenage drug use has get this bill passed. We should really be tract between Customs and its union to sharply risen every year since 1993, and voting no on this bill until those provi- ensure that it does not abrogate the shows no sign of abating soon. sions are removed. terms of a national contract, contrary This rise in drug use has paralleled an em- Mr. SHAW. Mr. Speaker, I yield my- to what has been argued here on this phasis on the part of the Federal Government self such time as I may consume. floor today. with regard to interdiction and with regard to Mr. Speaker, I would say to those Finally, H.R. 3809 seeks to eliminate treatment. The end result today is a readily that said that there have not been many of the factors that inhibit the available supply of drugs that is both inexpen- hearings on this bill, there have been Customs officers from performing their sive and of the highest purity in history. over the years. Last year, we had a drug interdiction effort. If our Nation wants to successfully reduce hearing on it. We had a couple hearings Currently, labor negotiations have been teenage drug use, we need to adopt a bilat- this year. cited as a major impediment to these vital ef- eral approach of simultaneously reducing both And I would like to also say to those forts. In my state of Florida, for instance, one supply and demand. This bill beefs up our and particularly the gentleman from labor negotiation in Miami has dragged on for interdiction efforts on our borders, particularly Ohio, who spoke before the gentleman almost four years at one of the most critical with Mexico. from California, in talking about a poi- ports in the country. This bill would allow the Mr. Speaker, it is time for our Nation to get son pill and the gentlewoman from Commissioner of Customs to limit any addi- serious on the issue of reducing drug use. We California talking about a poison pill, tional negotiations to 90 days. have given treatment a chance over the last H.R. 3809 simply seeks to give Customs the the provisions that they are complain- five years, and the results have shown that tools it needs to fight the war on drugs without ing about were written by the adminis- treatment alone is not enough. Unless our delay. We cannot afford delay in this war . . . tration and given to us for insertion in interdiction efforts are increased and im- for delay means more drugs getting into the the bill. proved, no treatment program will be able to I am pleased to speak today on the hands of our children. The U.S. Customs Service deserves our avoid being overwhelmed in the deluge of merits of H.R. 3809, the Drug Free Bor- praise, my colleagues, but most importantly cheap, highly pure drugs that currently exists. ders Act of 1998. H.R. 3809 was reported today, they deserve our support by voting yes Accordingly, I urge my colleagues to support by the Committee on Ways and Means to H.R. 3809, in allowing them to do even this worthwhile legislation. last Thursday, May 14, by a bipartisan more in fighting for our nation's future and the Mr. METCALF. Mr. Speaker, I ask unani- vote of 29–0. We have heard so much future of our children. We must join together to mous consent to revise and extend my re- about fighting the war on drugs, and I protect our children from the scourge of drugs, marks. am here to tell my colleagues that H.R. without partisanship or special interests. Vote Mr. Speaker, I would like to congratulate 3809 is absolutely essential to this Yes to put our Children first. Chairman CRANE and Chairman ARCHER on a cause. Mr. GOSS. Mr. Speaker, our borders are much needed piece of legislation. However, I This bill proposes an additional $232 the last line of defense between our Nation's would like to voice my concerns over two spe- million in Customs authorizations over cities and towns and the organized drug cific sections in the legislation. the President’s request for fiscal 1999. I smugglers who market their poisons. We must Section 211 and Section 212 of the legisla- can think of no better reason to sup- make the United States border a perilous ob- tion contain provisions that are of concern to port this bill than its ability to provide stacle for those engaging in this destructive me and my constituents who are employed as for 1,745 additional Customs officers trade. That means stepping up border enforce- customs agents on the northern border, Mr. and special agents to protect our bor- ment and keeping one pace ahead of the traf- Speaker. ders. Yes, that is 1,745 additional Cus- fickers. The Drug Free Borders Act represents The first concern I have is that the legisla- toms people. This authorization will the first step toward that end by providing for tion allows for the involuntary transfer of up to specifically target those areas that new special agents and inspectors at the U.S. 5% of the customs service personnel. This will have been identified as major drug Department of Customs, as well as for the potentially exacerbate the situation on the smuggling and transportation and dis- purchase of valuable new detection tech- northern border that has left our customs tribution networks in our country. nologies. agents out manned in their fight to prevent the I would like to bring to the attention Troubling trends like an 85% drop in cus- importation of drugs as the Administration con- of my colleagues an example of what toms drug seizures in the past year, declining tinually emphasizes the southern border by these resources would add to the out- prices and increasing availability, clearly show transferring agents south and not providing re- standing performance of our Customs we are losing the battle to stop these poisons placements. officers. In what Treasury Secretary at our borders. There are miles upon miles of The second concern I have deals with the Robert Rubin and Attorney General American border which we actively encourage rights of the union. This legislation allows the Janet Reno have referred to as the people to cross every day for trade and tour- customs service, when faced with provisions largest, most comprehensive drug ism and the criminals we are fighting have the of a collective bargaining agreement that im- money laundering case in the history deftness to exploit any weak link in our de- pede drug interdiction to eliminate the provi- of the United States law enforcement, fenses. Therefore, in stopping the drug supply sion. While this is important, I question the Customs just this past weekend seized we must create a barrier that extends from our method used in the bill to implement this. over four tons of cocaine and mari- shores out to the original source of the drugs. The provision allows the Customs Service to juana, conducted over 70 arrests, and Keeping ahead of the drug smugglers is a eliminate the provision after 90 days and im- made over $155 million in illegal daunting task and requires reliance on the plement their last offer. This gives the Cus- laundered drug money in Los Angeles. eyes and ears of a strong intelligence capabil- toms Service very little motivation to negotiate H.R. 3809 would also correct the prob- ity. To win this war we need to know where in good faith when they know that if they hold lems with the overtime and nighttime the traffickers are headed before they get out for 90 days their way will be the policy. I pay of Customs officers that has proven there and the networks they use to move their hope that this situation can be corrected in the to be disturbingly flawed. Overtime contraband. conference on this legislation. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3415 Mr. Speaker, this legislation does do many drug enforcement personnel of their negotiat- Mr. RODRIGUEZ. Mr. Speaker, I am deeply important things. It provides the necessary re- ing rights. In addition, H.R. 3809 seeks to disturbed by the way the Drug Free Borders sources to purchase materials that will dra- make major changes to the rules governing Act of 1998 came to the floor. Instead of fash- matically improve the ability of customs agents overtime pay to Customs employees, creating ioning a bipartisan bill to help the U.S. Cus- to utilize modern technology in their interdic- the likelihood of pay cuts for those who work toms Service protect our borders from contra- tion efforts. It authorizes new agents at the non-traditional shifts. As troubling as the provi- band such as illicit drugs, child pornography, borders to address the dramatic shortfall that sions themselves is the fact that, despite the money laundering and counterfeit merchan- is present today. All of these things are nec- seriousness of the issues involved, no hear- dise, a partisan group which clearly does not essary, vital and long overdue. ings were held on this anti-worker language, understand the dynamics of our nation's Mr. ORTIZ. Mr. Speaker, I rise today in op- no committee report was issued, and now the Southwest border has decided to attack the position to H.R. 3809, the Drug Free Borders measure is brought up under suspension, lim- people on the front lines of the war on drugs. Act of 1998. I do so reluctantly, because this iting the time for debate and eliminating any Outside the partisan efforts to cripple federal bill contains a significant funding increase for possibility of amendment. employees, I support this bill. I have three the Customs Service and their efforts to stop Mr. Speaker, I would like very much to be international ports in my district on the Texas- drugs from entering this country. Unfortu- able to cast a vote in support of increased Mexico border. My constituents want those nately, it does so at the expense of the men drug interdiction efforts, and I will certainly do ports to have the best equipment and person- and women who are on the front line, the Cus- so if anti-worker provisions are removed from nel possible to keep illegal drugs out and to toms agents themselves. Let me be clear, I this bill during conference. However, I cannot facilitate legal trade. I have traveled the border fully support increasing funding for the Cus- stand by as the rights of America's Customs with U.S. Customs employees and seen the toms Service's counter-drug efforts. However, workers, who risk their lives to keep our bor- challenges they face. I have also seen the this bill would completely eliminate the worker ders free of drugs, are attacked. I will oppose pride Customs employees have for their jobs. rights and protections that I have supported this bill, and I urge my colleagues to do the I have shared the excitement they experience and worked to protect throughout my service same. when a truck filled with drugs is caught. There in the Congress. Mrs. MCCARTHY of New York. Mr. Speak- are few things I want more than to end this H.R. 3809 has the right idea, but unques- er, there are many good provisions in H.R. nation's drug epidemic. But we cannot end the tionably the wrong methods. The labor provi- 3809 that I strongly support, especially provi- problem by busting labor agreements and de- sions of this bill void any and all collective bar- sions in Title I that provide the U.S. Customs moralizing U.S. Customs agents and inspec- gaining agreements that have been crafted so Service with significant resources to combat tors. The majority leadership is stooping to a fa- carefully to keep Customs agents working at the flow of illegal drugs over our borders. miliar low by bringing this bill to the floor under peak effectiveness. By allowing the unilateral However, I have serious concerns about other a suspended rule. We have no opportunity for suspension of these agreements, we jeopard- provisions of the bill which will deny Customs full debate; all amendments are prohibited. ize the morale of the very people we rely on Service personnel their hard-earned rights and This bill is take it or leave it. The majority to protect our children from drug smugglers benefits. leadership wants this bill to fail and blame the and pushers. There are few activities which are more im- Administration or pass without any input from Mr. Speaker, I question the philosophy of portant to the health and safety of our nation, the minority. The majority leaders should be this bill, which seems to increase the effort and to the future of our young people, than ashamed of their partisan games at the ex- against drugs by punishing the people doing drug interdiction. The men and women of the pense of our Nation's war on drugs. If the ma- the work. I think this is a bad idea. Instead, we Customs Service should be commended for jority leadership wanted to pass effective legis- need to support our Customs agents, not de- their courage and tireless efforts to keep drugs lation they should have allowed Members of moralize them. Yes, increase funding. Yes, from entering our country. In FY 1996 alone, Congress the chance to amend the labor por- buy more equipment. Yes, put more agents the Customs Service seized over 1 million tions of this bill and pass effective drug fight- along the border. But support these people. If pounds of narcotics, including 33,000 pounds ing legislation. I am voting for this bill with we create an environment that demoralizes of cocaine, 545,000 pounds of marijuana and strong objections and a hope that it will almost 460 pounds of heroin along the South- our Customs agents, how can we expect to at- change before it reaches the President. tract and keep good agents? west border. This has not been easy, and Ms. JACKSON-LEE of Texas. Mr. Speaker, Again, I think the aim of this bill is good. But many Customs Service personnel have risked even though, I rise today in support of the the way it treats the people on the front lines their lives and their safety to seize illegal Drug Free Borders Act, H.R. 3809, I do be- leaves me no alternative but to reluctantly op- drugs. lieve that there are yet still unresolved difficul- pose it. It is my hope that a new bill will come Of course, we cannot stop these activities ties in the language of the bill that must be ad- forward. A bill that contains the funding that until we stop the flow of drugs into our country dressed. In particular, sections 211 and 212 Customs so desperately needs, but also sup- altogether. While Title I of H.R. 3809 moves raise some serious labor issues and need to ports the people who wear the uniform of the us toward that goal, I am afraid that two provi- be explored further. Customs Service. sions of Title II will actually move us back- These provisions nullify the collective bar- Mr. POSHARD. Mr. Speaker, it is with great ward. Section 203 of the bill would reduce or gaining process by authorizing Customs man- regret that I rise today to register my opposi- deny premium pay that many Customs Serv- agers to abrogate unilaterally collective bar- tion to H.R. 3809, the ``Drug Free Borders ice personnel receive for working long shifts at gaining and partnership agreements. These Act.'' Once again, an important and well-inten- off-hours. And Sections 211 and 212 could let agreements were developed to aid the efforts tioned piece of legislation has become a vehi- the Customs Service undermine the collective of Customs managers and employees in stop- cle for an underhanded attack on working men bargaining agreement worked out between the ping the flow of drugs into our streets. I find and women, and I urge my colleagues to re- Service and its personnel. it troubling to ask these men and women to sist the majority's misguided effort and vote no If the goal of this legislation is to make the put their lives on the line to fight in the war on on this bill. Customs Service more productive and efficient drugs, when we allow their managers to ig- I strongly support increased authorization at stopping drugs, then it makes no sense to nore their collective voice. Sections 211 and levels for drug interdiction activities of the U.S. roll back the rights and benefits that attract the 212 have the potential to strip Customs em- Customs Service. I am sure that no member best people. Worse, we should not deny bene- ployees of their morale. of this body would argue that the flow of drugs fits to the very men and women who have In addition, these provisions would establish into this country is an urgent crisis which re- sacrificed so much to keep our country safe. a very dangerous precedent. The Customs quires our unflagging attention. I applaud the I am particularly concerned that these provi- collective bargaining agreement is no different efforts of my colleagues to recognize and sions are being voted on by the House with a from those of other Federal agencies; these combat this problem with increased funding, minimum of debate and deliberation, and provisions will render this process meaning- additional inspectors and new drug detection under a procedure that will not allow Members less. equipment. to strike these provisions. Nevertheless, we In conclusion, I urge my colleagues to voice Unfortunately, I cannot ignore other provi- must remove these provisions from the bill. concerns about sections 211 and 212 and to sions which seek to alter the fundamental I am committed to working with my col- reconsider the statement that these provisions labor rights of Customs Service employees. leagues in the other body to pass a Customs make. If it is truly the primary goal of Con- First, the bill would allow the Customs Service Service authorization bill that strengthens the gress to stop illegal drugs from invading our to break collective bargaining agreements al- Service and helps its dedicated personnel stop country, we must show support for these very ready in place, stripping America's front-line illegal drugs. important players in that fight. H3416 CONGRESSIONAL RECORD — HOUSE May 19, 1998 Mr. ABERCROMBIE. Mr. Speaker, I rise to SECTION 1. AMENDMENT OF NATIONAL HIS- has done to craft a bill that addresses express my reluctant support of H.R. 3809. TORIC PRESERVATION ACT. needed changes in current law and The National Historic Preservation Act (16 There are many good provisions in the bill U.S.C. 470 and following; Public Law 89–665) which continues funding for a program which mark an escalation in our war against is amended as follows: that is appreciated by all Americans. drug smuggling and out fight against the use (1) In the third sentence of section 101(a)(6) H.R. 1522 reauthorizes the National of illegal drugs in our society. I support the (16 U.S.C. 470a(a)(6)) by striking ‘‘shall re- Historic Preservation Fund through war against drugs. However, I am very con- view’’ and inserting ‘‘may review’’ and by the year 2004. This fund has been used cerned about the harmful provisions contained striking ‘‘shall determine’’ and inserting to protect many of our most cherished in this bill that can be counterproductive in that ‘‘determine’’. historical sites around the country. they erode the working conditions of the Cus- (2) Section 101(e)(2) (16 U.S.C. 470a(e)(2)) is This bill also makes many changes to amended to read as follows: toms employees who are on the front lines of ‘‘(2) The Secretary may administer grants the National Historic Preservation Act this war. to the National Trust for Historic Preserva- in order that it can function better in It is very unfortunate that this bill contains tion in the United States, chartered by an protecting our priceless national his- language that would permit the Customs Com- Act of Congress approved October 26, 1949 (63 toric treasures. missioner to abrogate the collective bargaining Stat. 947), consistent with the purposes of its I want to add, however, that the pro- agreements his agency has reached with em- charter and this Act.’’. tection of our national treasures, ployees and which are currently in effect. Not (3) Section 102 (16 U.S.C. 470b) is amended which this bill provides, nearly did not by redesignating subsection (e) as subsection only is the provision blatantly unfair to the em- make it to the floor today because of ployees of the Customs Service, but it is an (f) and by redesignating subsection (d), as added by section 4009(3) of Public Law 102– an eleventh hour concern by OMB, who attempt to set a precedent for undermining 575, as subsection (e). suddenly opposed this bill, even though labor-management relations between the fed- (4) Section 101(b)(1) (16 U.S.C. 470a(b)(1)) is the agency had months and months to eral government and its unions. This can have amended by adding the following at the end comment on it on any problems they a serious detrimental effect on the morale, and thereof: may have had. consequently the effectiveness, of the people ‘‘For purposes of subparagraph (A), the State Nevertheless, everyone worked hard who fight on the front lines of this war against and Indian tribe shall be solely responsible last night to address the concerns of drugs. Congress should not, except perhaps for determining which professional employ- OMB, and we now have a bill which we ees, are necessary to carry out the duties of under the most extraordinary circumstances, can agree with and the Administration enact legislation to alter collective bargaining the State or tribe, consistent with standards developed by the Secretary.’’. can support. agreements. Although wanting to make our (5) Section 107 (16 U.S.C. 470g) is amended b 1500 borders more secure against illegal drug im- to read as follows: portation is a highly desirable goal, it should ‘‘SEC. 107. Nothing in this Act shall be con- Mr. Speaker, this is an important not be used to disguise a political attack on strued to be applicable to the White House bill, and the National Historic Preser- dedicated Customs Service personnel. If the and its grounds, the Supreme Court building vation Fund needs to be reauthorized. I Customs Service needs additional resources and its grounds, or the United States Capitol urge my colleagues to support H.R. to successfully accomplish its mission, I am and its related buildings and grounds as de- 1522. willing to help find additional funds for that picted on the map entitled ‘Map Showing Mr. FALEOMAVAEGA. Mr. Speaker, Properties Under the Jurisdiction of the Ar- purpose. chitect of the Capitol’ and dated November 6, I yield myself such time as I may con- If we are serious about curbing drug smug- 1996, which shall be on file in the office of the sume. gling and illegal drug usage in this country, we Secretary of the Interior.’’. (Mr. FALEOMAVAEGA asked and must dedicate the necessary federal resources (6) Section 108 (16 U.S.C. 470h) is amended was given permission to revise and ex- instead of undercutting the personnel we de- by striking ‘‘1997’’ and inserting ‘‘2004’’. tend his remarks.) pend on to carry out these policies. (7) Section 110(a)(1) (16 U.S.C. 470h–2(a)(1)) Mr. FALEOMAVAEGA. Mr. Speaker, I will support H.R. 3809 to move it along in is amended by inserting the following before I want to thank and commend the gen- the legislative process, but I strongly urge that the period at the end of the second sentence: tleman from Utah (Mr. HANSEN), the the anti-collective bargaining provisions be ‘‘, especially those located in central busi- chairman of the Subcommittee on Na- ness areas. When locating Federal facilities, dropped from this bill. Congress needs to get Federal agencies shall give first consider- tional Parks and Public Lands for his into the business of passing legislation that ation to historic properties in historic dis- leadership in the management of this will keep drugs out of this country, not assault tricts. If no such property is operationally legislation before the House today. those who are the principal soldiers in the bat- appropriate and economically prudent, then Mr. Speaker, H.R. 1522 amends the tle. Federal agencies shall consider other devel- National Historic Preservation Act of The SPEAKER pro tempore. The oped or undeveloped sites within historic dis- 1966. Through this act, historically sig- question is on the motion offered by tricts. Federal agencies shall then consider nificant buildings, sites and districts the gentleman from Texas (Mr. AR- historic properties outside of historic dis- have been preserved, keeping Ameri- tricts, if no suitable site within a district ex- CHER) that the House suspend the rules ists. Any rehabilitation or construction that ca’s history alive. and pass the bill, H.R. 3809, as amend- is undertaken pursuant to this Act must be The primary purpose of the bill be- ed. architecturally compatible with the char- fore us today is to reauthorize the Na- The question was taken. acter of the surrounding historic district or tional Historic Preservation Fund. Mr. SHAW. Mr. Speaker, on that, I properties’’. Monies from the fund are derived from demand the yeas and nays. (8) The first sentence of section 110(l) (16 the Land and Water Conservation The yeas and nays were ordered. U.S.C. 470h–2(l)) is amended by striking Fund, and Congress set the authoriza- The SPEAKER pro tempore. Pursu- ‘‘with the Council’’ and inserting ‘‘pursuant tion level at $150 million per year. ant to clause 5 of rule 1 and the Chair’s to regulations issued by the Council’’. Authorization for the fund expired on prior announcement, further proceed- (9) The last sentence of section 212(a) (16 September 30th, 1997. This bill extends ings on this motion will be postponed. U.S.C. 470t(a)) is amended by striking ‘‘2000’’ and inserting ‘‘2004’’. authorization of the fund through the f The SPEAKER pro tempore. Pursu- year 2004. As I have stated throughout NATIONAL HISTORIC PRESERVA- ant to the rule, the gentleman from our consideration of this bill, I would TION FUND AUTHORIZATION Utah (Mr. HANSEN) and the gentleman prefer the bill end there. In fact, the Mr. HANSEN. Mr. Speaker, I move to from American Samoa (Mr. bill that was first introduced or the suspend the rules and pass the bill FALEOMAVAEGA) each will control 20 one that we brought to the floor today, (H.R. 1522) to extend the authorization minutes. I would not be able to support its pas- for the National Historic Preservation The Chair recognizes the gentleman sage. Fund, and for other purposes, as from Utah (Mr. HANSEN). However, the bill’s chief sponsor, the amended. Mr. HANSEN. Mr. Speaker, I yield gentleman from Colorado (Mr. HEFLEY) The Clerk read as follows: myself such time as I may consume. brought many sides together and has H.R. 1522 Mr. Speaker, H.R. 1522 is a bill intro- put together a bill that I believe is Be it enacted by the Senate and House of Rep- duced by my colleague, the gentleman worthy of our support. I do want to resentatives of the United States of America in from Colorado (Mr. HEFLEY). He is to commend the gentleman from Colorado Congress assembled, be commended for the hard work he for his leadership and for his ability to May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3417 bring everyone together at the table The bill reauthorizes the Historic the picnic because I am not a fan, and to come out with a consensus as we Preservation Fund at its existing level based upon personal experience, and I have now. He worked even this morn- through the year 2004. I should point guess that is what we bring to the floor ing to address concerns raised by the out that, despite the authorization a lot. administration. level, actual appropriations have never I am not a fan of the National Keep- Mr. Speaker, even with all the exceeded $50 million, and, in the last 7 er’s office, nor how it is conducted. Let changes made to the bill since its in- years, have only twice exceeded $40 me just say, as I unfold this tale for a troduction, concerns over certain pro- million. second, that as this bill moves forward, visions still exist. In particular, the Of- The 2004 end date is intended to bring I hope that some of my concerns will fice of Management and Budget is con- into sync budget deadlines for this pro- be incorporated in deliberations, par- cerned with the provision which takes gram, the Advisory Council on Historic ticularly as you discuss this with the away the mandatory requirement for Preservation, and the budget agree- other body. the Keeper of the Register to make a ment. Yes, the project I am about to relate determination of whether or not his The bill also makes a number of to you is a controversial highway site is eligible to be listed on the Reg- changes to reflect what is happening in project. Those in the environmental ister of Historic Places when property the States. community have opposed it assidu- owners oppose the designation. It reemphasizes this Congress’ com- ously for many years. Their only prob- The Office of Management and Budg- mitment to the rights of private prop- lem is 75 percent of everybody in an af- et and the National Park Service fear erty owners. fected county supports it. Their prob- this language could require the Keeper It gives State and tribal historic lem is every elected official from the to act only in the most contentious of preservation offices greater flexibility town council to whatever office you issues, thereby politicizing the process. in the hiring of their employees. want to point to supports this project. Regardless of this language, Mr. The provision recognizes Interior’s So what we have done, then, over Speaker, however, the current practice ongoing work at developing standards time, is we have gone through all the whereby no site is placed on the reg- for these employees, but gives States hurdles. We have gone through the ex- ister while owners oppose such a des- and tribes the right to make the call ecutive branch. We have gone through ignation remains intact. The state- on what professionals they need. the Federal Highway Administration. ment of administration policy of this It allows the Federal Government, We have gone through the West Vir- legislation states that the administra- through the National Trust for His- ginia Department of Transportation. tion has no objection to the passage of toric Preservation, to respond to emer- We have gone through Federal court H.R. 1522 but will work to have the dis- gencies such as the Mississippi floods and won against environmentalists cretionary language removed during of 1994. who want to oppose it. We have gone to Senate consideration of the legislation. The bill also codifies an executive the Congress, and the Congress has ap- Another provision that remains a order directing government agencies to proved money. Every branch, I concern to some is one that contains give consideration to the use of his- thought. language providing that States and In- toric buildings in historic districts and And then who pops up just as we are dian tribes will be responsible for de- central business areas. going to bid? The Keeper of the Na- termining which professional employ- This is not only something Federal tional Historic Registry to declare a ees are needed to carry out the preser- agencies should do as a matter of community in Hardy County, West Vir- vation duties within their jurisdiction. course, it may help blunt the erosion of Debate on professional standards ginia, which is appropriately named, I downtown areas. continue within the preservation com- guess, ‘‘Old Fields’’ as a historic dis- The bill also contains a provision munity, and any changes to this area I trict. She could have identified farm backed by strong report language believe are best handled after that de- buildings and designated them. She did which signals the Committee on Re- bate is concluded and agreement is not. She made it a historic district, sources’ intent that government agen- reached. which then brings this highway project Mr. Speaker, the bill will also allow cies in Washington should honor the to a halt within that area. States and Indian tribes to decide intent of preservation laws in their So I call and I say, to whom do we which professional positions are needed dealings with local preservation agen- appeal to? I call the Secretary of the to address their specific needs. cies. Interior’s office. We do not know. Do I Mr. Speaker, I urge my colleagues to Too often, the law has been observed have to go back to court now? support this legislation. only as an afterthought. So the history of this particular situ- Mr. Speaker, I reserve the balance of As I said, this should not be a con- ation is replete with bureaucratic my time. troversial bill. There are areas where abuse, deadlines that have been passed Mr. HANSEN. Mr. Speaker, I am the involved parties simply agree to for review, which, of course, if you pass pleased to yield whatever time he may disagree. We do not agree on every- a deadline, it means your highway de- consume to the distinguished gen- thing in it. partment and your contractors and tleman from Colorado (Mr. HEFLEY), But it has the backing of the Na- your engineers cannot move forward. the sponsor of this bill. tion’s five major preservation groups, We have probably cost the taxpayers Mr. HEFLEY. Mr. Speaker, to both the Preservation Action, National millions of dollars in simply delays by the Chairman and the Ranking Mem- Trust for Historic Preservation, Amer- this delay. ber, I extend my appreciation for their ican Cultural Resources Association, Oh, yes, yes, one other factor, the help as we worked through this process National Alliance of Preservation Com- State involvement. The State Historic and did try to bring all the groups to- missions, National Conference of State Preservation Officer, about as com- gether. Historic Preservation Offices. So it petent a person as I have met and a Mr. Speaker, it seems to me that one does have a broad base of support. true professional, recommended of the roles of government is the pres- Mr. Speaker, I will close and encour- against the Keeper taking this action. ervation of our historic values. To par- age passage of this piece of legislation. Then the night after the action was an- aphrase one historian, we are unlikely Mr. FALEOMAVAEGA. Mr. Speaker, nounced, I get a call from the Hardy to deal well with our future if we do I yield 51⁄2 minutes to my good friend, County preservation officer who lives not understand our past. the gentleman from West Virginia (Mr. where, in Old Fields, West Virginia, Since 1966, the Historic Preservation WISE). who says, what is going on? We never Fund has been part of the way this Na- Mr. WISE. Mr. Speaker, I thank the recommended that this be declared a tion seeks to accomplish that. The bill gentleman very much for yielding to historic district. before us today reflects the success and me. That is my tale. maturity of that program. Rather than First, let me say to those of you who Mr. Speaker, to those moving this a set of sweeping reforms, H.R. 1522 at- brought this bill to the floor, I appre- bill, I am interested in historic preser- tempts to fine-tune what is a mature ciate what you are doing and the sin- vation, but I am not interested in his- program. cerity. I am going to be the skunk at toric preservation that denies a future. H3418 CONGRESSIONAL RECORD — HOUSE May 19, 1998 I guess what I would ask is, as we move gentlewoman from the District of Co- Ms. NORTON. I appreciate the col- forward we closely monitor the discre- lumbia (Ms. NORTON). loquy, and I thank the gentleman. tion that this official has. Because Ms. NORTON. Mr. Speaker, I thank Mr. VENTO. Mr. Speaker, I rise in strong whether it is her office or her personal- the gentleman for yielding and for all support of H.R. 1522, which will reauthorize ity, and I am not sure which, but his hard and skillful work on the bill. the National Historic Preservation Act. whichever one it is, there is clear need In a moment, I am going to ask the One of the many things that makes our na- to put some teeth in here and to put in chairman of the subcommittee, the tion great is our strong, collective sense of his- some oversight. gentleman from Utah (Mr. HANSEN), if tory. We teach our children from an early age I would just urge us not to move for- he would engage in a brief colloquy about our past triumphs and failures and the ward and to give the directive that you with me. lessons we've learned from them. This tradi- shall declare areas historic areas. I Before I do so, I want to thank the tion enables America to grow better with each hope we would at least keep it at bay gentleman from Utah (Mr. HANSEN) and passing day: as we improve our understanding so we can continue to review this dis- the gentleman from Colorado (Mr. of the past, we increase our chances of mas- cretion and, when appropriate, abuses. HEFLEY) for really quite exemplary tering the future. Mr. HEFLEY. Mr. Speaker, will the work on this bill. I am aware of the That is why I am such a strong supporter of gentleman yield? balance that must be achieved here and the National Historic Preservation Act, passed Mr. WISE. I yield to the gentleman how difficult a bill like this is to get by Congress and signed by the President in from Colorado. through the committee while bearing 1966. The Historic Preservation Act authorizes Mr. HEFLEY. Mr. Speaker, we share in mind the necessary balance. the Department of the Interior to manage the the gentleman’s concerns, too, and we I am, of course, a strong supporter of National Register of Historic Places, encour- want it to work. What we are trying to the Historic Preservation Act. I rep- ages State-level efforts to preserve these im- do with the reauthorization to make it resent a historic city, a city that was portant locations, and provides grants and ex- work, let me just share with you the born with the Nation itself, with much pertise to the many individuals and associa- report language of what we intend to preserve on the Federal side and on tions across America who have dedicated their here. the local side. lives to protecting and preserving these treas- H.R. 1522 modifies the existing Sec- I want to thank the gentlemen, also, ures. retarial review of nominations to the for the faith they have kept to the Con- Mr. Speaker, my home State of Minnesota National Historic Register as an option gressional Accountability Act because has a long legacy of historic preservation. Es- of appeal, rather than a mandatory of the way they have brought our own tablished in 1849, the Minnesota Historical So- stage in the nominating process as it agent, the Architect of the Capitol, ciety preserves the history of Minnesota currently exists, which speaks to what under the Act, while giving him full through a variety of activities while overseeing you just spoke to. This legislation in- latitude to accomplish his job. a number of libraries, collections and historic tends that most of the decision making As we may recall, the Congressional sites. One needs only to walk down beautiful would take place at the State and local Accountability Act indicated that Con- Summit Avenue a historic district in Saint Paul level, which is also what you want. gress would submit itself to the same to appreciate how interested Minnesotans are Mr. WISE. Yes, Mr. Speaker. laws as everyone else. We have done to preserving the jewels of our past. Indeed, Mr. HEFLEY. I think we share the that and kept faith with that. We have since 1966, when Congress passed the His- same kind of goals. You have had a brought ourselves into account with toric Preservation Act, the State Historic Pres- very bad experience with it, and I this promise in this Act. ervation Office of Minnesota has inventoried think a lot of us have. We want to I want to express my appreciation to more than 45,000 properties in all 87 counties make it work right. We do not want to both the gentleman from Colorado and of the State. And at the end of 1996, the Na- throw it out, because I think it does the gentleman from Utah for the kind tional Register of Historic Places contained have merit, but I want it to work. consideration and the sensitive way in more than 1,460 Minnesota listings. For that, Mr. WISE. Mr. Speaker, if I may say which they have dealt with the special the Minnesota Historical Society deserves the to the gentleman from Colorado (Mr. historic preservation issues in the Dis- appreciation of not just Minnesotans, but all HEFLEY) and the gentleman from Utah trict of Columbia. Americans. (Mr. HANSEN), I never thought of either We have had an unfortunate experi- Our State Historic Preservation Office of you friends of overarching and over- ence involving a historic property in (S.H.P.O.) is not just the mansions of Summit reaching government, so I am quite the District of Columbia. I believe that Ave., St. Paul but the common housing and confident and I am pleased you are this language will guarantee that that work places that need sound historic preserva- moving in that direction. But I think experience will not be repeated. tion efforts and understanding the culture and this is a situation that I would hope I do want to say to the gentleman people means understanding where we came that, on both sides of the aisle, you from Colorado and the gentleman from from. But the S.H.P.O. does not and can't do would be looking at in your delibera- Utah that we have begun to work with it alone. Congress appropriated $36 million for tions. the Architect of the Capitol and so be- the Historic Preservation Fund in 1997. Mr. FALEOMAVAEGA. Mr. Speaker, lieve that he also understands the in- That money provides funding for State of- would the gentleman yield to me? tent. But to make certain of that, I ask fices like the S.H.P.O. as I described in Min- Mr. WISE. I yield to the gentleman the gentleman from Utah if he would nesota. $36 million is not nearly enough and from American Samoa. engage in a colloquy with me. this measure continues the past authorization Mr. FALEOMAVAEGA. Mr. Speaker, Mr. HANSEN. Mr. Speaker, if the of $150 million per year. We could accomplish I would say to the gentleman from gentlewoman would yield, I am happy even more with that kind of money. These dol- West Virginia that his eloquent state- to. lars are multiplied many times over but every ment has been well taken. I am sure day we are losing historic fabricÐour connec- b 1515 my good friend from the other side of tion to our past. the aisle, the chairman of the sub- Ms. NORTON. Is it the gentleman’s I have attached to my statement an article committee, and the gentleman from understanding that by restricting the from the Minneapolis Star-Tribune that details Colorado (Mr. HEFLEY) and myself will application of the exemption in section the ten most endangered historic properties in definitely look into the wordage of not 107 of the Act, it is the intent of the Minnesota this year. The properties are in only the report but the language itself Congress that the Architect of the Cap- urban areas such as my St. Paul district and to make sure that it does not reflect itol at a minimum give public notice to rural areas in Northern Minnesota such as the kind of example that you have just the abutters and the surrounding Itasca County. With additional funding, the tal- shared with us this afternoon. neighborhood prior to undertaking a ented and hard-working folks at the Minnesota Mr. WISE. Mr. Speaker, I thank the restoration or renovation project on an Historical Society could work to acquire, pro- gentleman for his time and his consid- historic building? tect and preserve these important places. eration. Mr. HANSEN. Mr. Speaker, if the Hopefully we could in future years meet the Mr. HANSEN. Mr. Speaker, I reserve gentlewoman will yield, that is what promise of authorization closer to the amount the balance of my time. we expect, with the exceptions that are dedicated to this purpose. Mr. FALEOMAVAEGA. Mr. Speaker, in the bill. I think we have covered So I support this bill, Mr. Speaker. It contin- I yield 3 minutes to my good friend, the that. ues and hopefully will build upon Congress' May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3419 important role in the protection of America's ARMSTRONG-QUINLAN HOUSE, ST. PAUL, RAMSEY GENERAL LEAVE treasures, ensuring the protection of our his- COUNTY Mr. HANSEN. Mr. Speaker, I ask toric legacy for future generations. The 1886 red brick Romanesque house sits unanimous consent that all Members 10 ENDANGERED PROPERTIES FOR ’98—THE in literal and metaphorical limbo surrounded by parking lots on the edge of downtown St. may have 5 legislative days within PRESERVATION ALLIANCE OF MINNESOTA which to revise and extend their re- LISTS STRUCTURES THREATENED BY STORMS, Paul. Owned by the state of Minnesota, it is marks on H.R. 1522, as amended. DEMOLITION OR NEGLECT a lonely reminder of an earlier grand era of residential buildings in downtown St. Paul. The SPEAKER pro tempore. Is there (By Linda Mack) It’s unlikely the construction of a new hock- objection to the request of the gen- The entire city of St. Peter, ‘‘ma and pa’’ ey arena nearby will help resolve its future. resorts up north, boarded-up buildings at tleman from Utah? Fort Snelling and a former dairy farm near EARLY 20TH CENTURY RESORTS, CASS COUNTY There was no objection. Brainerd are listed among Minnesota’s 10 AND ELSEWHERE f most endangered properties of 1998. The small rustic resorts run by owner-op- Threatened by demolition, neglect or erators grew up in the early automobile era WETLANDS AND WILDLIFE storm damage, the 10 buildings or groups of and make up a charming part of the north- ENHANCEMENT ACT OF 1998 buildings have been selected by the Preser- ern Minnesota landscape. But bigger, fancier Mr. HEFLEY. Mr. Speaker, I move to vation Alliance of Minnesota, a statewide resorts, often with centralized operations, suspend the rules and pass the bill nonprofit membership group, to draw atten- are the wave of the future. And the rise in (H.R. 2556) to reauthorize the North tion to the state’s historic resources and the property values and taxes makes it harder need for their preservation. and harder for ‘‘ma and pa’’ operators to sur- American Wetlands Conservation Act George Edwards, who moved to Minneapo- vive. and the Partnerships for Wildlife Act, lis recently from Atlanta, GA, to head the DISTRICT NO 5 SCHOOLHOUSE, BERGEN as amended. Preservation Alliance, said Minnesota’s en- TOWNSHIP, MCLEOD COUNTY The Clerk read as follows: dangered buildings ‘‘face the same threats Rural schoolhouses are fast disappearing, H.R. 2556 that we’re seeing around the country— and this red brick one built about 1910 is Be it enacted by the Senate and House of Rep- under-appreciation of our heritage, neglect among the most endangered of a number resentatives of the United States of America in and a shift in priorities.’’ Congress assembled, Apart from the tornado-ravaged buildings nominated for the list. Their original use is of St. Peter, many of which will be rebuilt, outmoded, but they form a significant part SECTION 1. SHORT TITLE. the challenge for most of the communities is of the rural landscape. This Act may be cited as the ‘‘Wetlands finding new uses for old buildings whose HOTEL LAC QUI PARLE, MADISON, LAC QUI PARLE and Wildlife Enhancement Act of 1998’’. original purpose has been lost, such as the COUNTY SEC. 2. REAUTHORIZATION OF NORTH AMERICAN old City Hall in Nashwauk or the Hotel Lac The city of Madison owns the small hotel WETLANDS CONSERVATION ACT. qui Parle in Madison. Or, in the case of the on a downtown corner and says there’s no Section 7(c) of the North American Wet- small resorts built in the early 20th century, reuse. Local citizens argue the building lands Conservation Act (16 U.S.C. 4406(c)) is the key to preservation may be building a forms an important anchor to downtown’s amended by striking ‘‘not to exceed’’ and all coalition of historic resorts to do joint mar- character and have persuaded the city to do that follows through the end of the sentence keting. The list, said Edwards, is just a start. a structural analysis. Madison has already and inserting ‘‘not to exceed $30,000,000 for The update on last year’s 10 most endan- lost one landmark, a tiny but ornate Prairie each of fiscal years 1999 through 2001.’’. gered properties is mixed. School bank designed by architects Purcell SEC. 3. REAUTHORIZATION OF PARTNERSHIPS The Stillwater Bridge may have a better and Elmslie in 1913 and demolished in 1968. FOR WILDLIFE ACT. chance of surviving because of a recent rul- Section 7105(h) of the Partnerships for NASHWAUK CITY HALL, NASHWAUK, ITASCA ing by a federal judge that a new bridge Wildlife Act (16 U.S.C. 3744(h)) is amended by across the St. Croix River would adversely COUNTY striking ‘‘for each of fiscal years’’ and all affect the scenic riverway. Historic buildings Built in 1915, this solid and graceful civic that follows through the end of the sentence at the University of Minnesota’s Twin Cities building is one of three intact city halls con- and inserting ‘‘not to exceed $3,000,000 for campus are being studied for reuse rather structed in company towns during the boom each of fiscal years 1999 through 2001.’’. than slated for demolition. The Washburn period of the western Mesabi Iron Range. But The SPEAKER pro tempore. Pursu- the city moved out in 1977, and the building Crosby ‘‘A’’ Mill on the Minneapolis river- ant to the rule, the gentleman from front has been stabilized and the Utility faces demolition because of neglect. Colorado (Mr. HEFLEY) and the gen- Building next to it will be redeveloped for ECHO DAIRY FARM, BRAINERD, CROW WING housing. Red Wing’s Washington School was COUNTY tleman from New Jersey (Mr. PALLONE) demolished, but the city’s Central High This impressive complex of high-roofed each will control 20 minutes. School is being studied for reuse and is still dairy barns just south of Brainerd was built The Chair recognizes the gentleman being used. in the early 1920s as one of Minnesota’s first from Colorado (Mr. HEFLEY). The future of other properties on last corporate agricultural operations and oper- Mr. HEFLEY. Mr. Speaker, I yield year’s list—such as the Mannheimer- ated until 1971. The city of Brainerd has myself such time as I may consume. Goodkind House in St. Paul, the Handicraft bought the complex for expansion of an in- Mr. Speaker, today we are voting on Building in downtown Minneapolis and Al- dustrial park. bert Lea’s downtown commercial buildings— H.R. 2556, which authorizes the North remains uncertain. STONE BUILDINGS OF OTTAWA TOWNSHIP, American Wetlands Conservation Act OTTAWA TOWNSHIP, LE SUEUR COUNTY DEPARTMENT OF THE DAKOTA BUILDINGS, FORT and the Partnerships for Wildlife Act. SNELLING, HENNEPIN COUNTY Built during the 1850s to 1870s, seven native The North American Wetlands Con- limestone buildings—houses, churches and a Built between 1879 and 1905, the 28 build- servation Act is one of several pro- town hall—form a charming remnant of a ings on 141 acres of land overlooking the grams devoted to improving wetlands Minnesota River village that was once a cen- Minnesota River form a familiar landmark protection in the United States, Can- ter of stone quarrying. Their future may not near the Minneapolis-St Paul International be so charming: They stand on land that is a ada and Mexico. It matches Federal Airport, but they are now mostly empty and prime target for an advancing silica sand dollars with contributions from State, boarded-up. Competing interests of state and mining operation. local and private organizations for wet- federal agencies have stalled resolution of land conservation projects in the U.S., their future. The Minnesota Department of Mr. FALEOMAVAEGA. Mr. Speaker, Natural Resources is now sponsoring a re-use I have no further requests for time, and Canada and Mexico that support the study. The buildings were on the list of en- I yield back the balance of my time. North American Wildlife Management dangered buildings last year as well. Mr. HANSEN. Mr. Speaker, I yield plan. The program has resulted in the ANOKA AMPHITHEATER, ANOKA, ANOKA COUNTY back the balance of my time. protection of more than 3 million acres This little-known but charming open air The SPEAKER pro tempore. The of wetlands in the U.S. and Canada theater overlooking the Mississippi River question is on the motion offered by over the past seven years. was designed by Prairie School architects the gentleman from Utah (Mr. HANSEN) The population of most species of mi- Purcell and Elmslie in 1914. Unused for many that the House suspend the rules and gratory ducks and geese in North years and in need of work, the amphitheater pass the bill, H.R. 1522, as amended. America have been increasing for the sits in the way of a road widening planned by The question was taken; and (two- past several years. It is impossible to the Minnesota Department of Transpor- say whether or not any single program tation. The road wouldn’t take the whole thirds having voted in favor thereof) theater, but it would lop off the back of it. the rules were suspended and the bill, has caused this increase, but habitat Other alternatives should be pursued, say as amended, was passed. conservation is certainly making an preservationists, and the amphitheater kept A motion to reconsider was laid on important contribution. There is wide- as part of a park. the table. spread agreement that the North H3420 CONGRESSIONAL RECORD — HOUSE May 19, 1998 American Wetlands Conservation Act latory programs that leverage scarce The Clerk read as follows: is a critical part of this effort. The bill, Federal resources, and I urge the House H.R. 512 as amended at subcommittee, is to support H.R. 2556. Be it enacted by the Senate and House of Rep- strongly supported by Ducks Unlimited Mr. SAXTON. Mr. Speaker, the North Amer- resentatives of the United States of America in and the International Association of ican Wetlands Conservation Act is a program Congress assembled, Fish and Wildlife Agencies. that has proven itself in many ways. The law SECTION 1. SHORT TITLE. The Partnerships for Wildlife Act was was designed to be a catalyst for partnerships This Act may be cited as the ‘‘New Wildlife enacted to ensure that nongame, non- between various levels of government and the Refuge Authorization Act’’. endangered wildlife did not slip SEC. 2. REQUIREMENTS RELATING TO DESIGNA- private sector to accomplish incentive-based TION OF NEW REFUGES. through the cracks between existing wetlands conservation. It demanded a non- (a) LIMITATION ON APPROPRIATIONS FROM conservation programs. It also matches federal match in order to level federal dollars LAND AND WATER CONSERVATION FUND.— Federal dollars with State and local and the match that has been produced has (1) IN GENERAL.—No funds are authorized to funds to support a wide variety of wild- more than doubled that required threshold. be appropriated from the land and water con- life conservation and appreciation This high match level is one evidence of the servation fund for designation of a unit of projects. success of partnership the Act intended and the National Wildlife Refuge System, unless H.R. 2556 reauthorizes the North delivered. the Secretary of the Interior has— American Wetlands Conservation Act Another group of very important partners (A) completed all actions pertaining to en- at its current authorization levels for vironmental review that are required for are the members of the North American Wet- that designation under the National Envi- three years. I urge Members to vote lands Council. These unpaid volunteers con- ronmental Policy Act of 1969; aye on this important environmental tribute incredible numbers of man hours to this (B) provided notice to each Member of and bill. process. Ducks Unlimited is an excellent ex- each Delegate and Resident Commissioner to Mr. Speaker, I reserve the balance of ample of a Wetlands Council member. From the Congress elected to represent an area in- my time. the beginning of the program DU has volun- cluded in the boundaries of the proposed Mr. PALLONE. Mr. Speaker, I yield teered to serve. They not only commit the unit, upon the completion of the preliminary myself such time as I may consume. equivalent of a full time staff member to assist project proposal for the designation; and (C) provided a copy of each final environ- (Mr. PALLONE asked and was given in carrying out Council business, they play a permission to revise and extend his re- mental impact statement or each environ- key role in communicating support for the pro- mental assessment resulting from that envi- marks.) gram on Capitol Hill. They have contributed by Mr. PALLONE. Mr. Speaker, I rise in ronmental review, and a summary of all pub- far and away more match funding continentally strong support of H.R. 2556. This bill lic comments received by the Secretary on for these projects than any other partner the proposed unit, to— helps protect wildlife habitat and will group. It is partners like DU with a dem- (i) the Committee on Resources and the enhance the management of nongame onstrated level of commitment that the Act en- Committee on Appropriations of the House wildlife. I want to thank the sub- visions should serve on the North American of Representatives; committee chairman, the gentleman Wetlands Conservation Council. That kind of (ii) the Committee on Environment and from New Jersey (Mr. SAXTON) for Public Works and the Committee on Appro- commitment is what creates this program's bringing this legislation before the priations of the Senate; and level of success. House. The bill reauthorizes the highly (iii) each Member of or Delegate or Resi- Mr. PALLONE. Mr. Speaker, I yield dent Commissioner to the Congress elected successful North American Wetlands back the balance of my time. Conservation Act and will improve the to represent an area included in the bound- Mr. HEFLEY. Mr. Speaker, I yield aries of the proposed unit. management of nongame species of back the balance of my time. (2) LIMITATION ON APPLICATION.—Paragraph wildlife by reauthorizing the program The SPEAKER pro tempore. The (1) shall not apply to appropriation of of Federal matching grants for such ac- question is on the motion offered by amounts for a unit of the National Wildlife tivities. the gentleman from Colorado (Mr. Refuge System that is designated, or specifi- In the seven years of its existence, cally authorized to be designated, by law. HEFLEY) that the House suspend the the North American Wetlands Con- (b) NOTICE OF SCOPING.—The Secretary rules and pass the bill, H.R. 2556, as shall publish a notice of each scoping meet- servation Act has resulted in the pro- amended. tection of millions of acres of wetlands ing held for the purpose of receiving input The question was taken; and (two- from persons affected by the designation of a in the United States, Canada and Mex- thirds having voted in favor thereof) proposed unit of the National Wildlife Ref- ico. $244 million in North American the rules were suspended and the bill, uge System. The notice shall be published in wetlands programs grants for this vol- as amended, was passed. a newspaper distributed in each county in untarily, non-regulatory program have A motion to reconsider was laid on which the refuge will be located, by not later been matched by more than $510 mil- the table. than 15 days before the date of the meeting. The notice shall clearly state that the pur- lion in funding by conservation part- f ners, conserving valuable habitat for pose of the meeting is to discuss the designa- migratory birds and many non-migra- GENERAL LEAVE tion of a new unit of the National Wildlife Refuge System. tory species as well. Mr. HEFLEY. Mr. Speaker, I ask (c) LIMITATION ON APPLICATION OF FEDERAL The amendment also reauthorizes the unanimous consent that all Members LAND USE RESTRICTIONS.—Land located with- Partnerships for Wildlife Act, which may have 5 legislative days within in the boundaries (or proposed boundaries) of provides matching grants for nongame which to revise and extend their re- a unit of the National Wildlife Refuge Sys- wildlife conservation and appreciation. marks and include extraneous material tem designated after the date of the enact- Unfortunately, we do not have a dedi- on H.R. 2556, as amended. ment of this Act shall not be subject to any cated source of funding like the Wal- restriction on use of the lands under Federal The SPEAKER pro tempore. Is there law or regulation based solely on a deter- lop-Breaux Fund for nongame con- objection to the request of the gen- mination of the boundaries, until an interest servation. Lacking a dedicated source tleman from Colorado? in the land has been acquired by the United of funding, conservation needs for There was no objection. States. these species are mounting. For exam- f The SPEAKER pro tempore. Pursu- ple, the states currently estimate their ant to the rule, the gentleman from unmet needs for management and con- NEW WILDLIFE REFUGE AUTHORIZATION ACT California (Mr. POMBO) and the gen- servation of nongame species at over tleman from New Jersey (Mr. PALLONE) $300 million annually. Mr. POMBO. Mr. Speaker, I move to each will control 20 minutes. Mr. Speaker, I hope we have the op- suspend the rules and pass the bill The Chair recognizes the gentleman portunity to give permanent funding (H.R. 512) to prohibit the expenditure from California (Mr. POMBO). for nongame species serious consider- of funds from the Land and Water Con- Mr. POMBO. Mr. Speaker, I yield my- ation in the near future. But, in the servation Fund for the creation of new self such time as I may consume. meantime, we will continue doing what National Wildlife Refuges without spe- (Mr. POMBO asked and was given we can under the Partnerships for cific authorization from Congress pur- permission to revise and extend his re- Wildlife Program. suant to a recommendation from the marks.) In summary, this is sound legislation United States Fish and Wildlife Service Mr. POMBO. Mr. Speaker, a little to benefit wildlife through non-regu- to create the refuge, as amended. history on this particular legislation. I May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3421 introduced this legislation four years Increasingly, land and water fund toward making Federal agencies ac- ago in Congress in response a problem monies are used to acquire refuge lands countable for their actions. that had arisen and come to my atten- to protect endangered species or Mr. Speaker, I think it would sur- tion over the creation of a new wildlife threatened wetlands. In fact, Federal prise many people to know that cur- refuge. ownership of habitat for threatened rent law allows Federal bureaucrats to Over the past several years, Congress and endangered species is one of the create national wildlife refuges at will has authorized 70 new wildlife refuges best ways to relieve the burden on without the consent of Congress and throughout this country of the 513 cur- landowners of endangered species pro- without thorough public debate that rent. The rest of the 443 refuges were tection and to avoid costly controver- should accompany any allocation of created with little or no oversight by sial endangered species listings. Fur- taxpayer money. The creation of wild- Congress. I feel it is very important ther, there is often a need to act expe- life refuges is particularly important that Congress fulfill its responsibility ditiously to acquire land to prevent in my district, where we are currently as a watchdog of the taxpayer money harmful development. Yet, because of debating the future management of a in the creation of a new wildlife refuge. the Fish and Wildlife Service’s policy stretch of the Columbia River called Currently, the refuge system is suf- of acquiring only from willing sellers, the Hanford Reach. fering a construction and maintenance property rights are respected. In sum- The Department of Energy, which backlog of over $600 million. At the mary, the bill, as reported from the currently owns the land on both sides same time, every single year we create Committee on Resources, was unneces- of the river where the Hanford Reach new wildlife refuges throughout the sary and harmful in my opinion to the is, has stated that it no longer needs to country. National Wildlife Refuge System. own, manage or maintain the land on During the effort that has been made We have now, however, worked out a the opposite side of the river from the over the past year to bring this legisla- compromise that addresses concerns Hanford nuclear reservation. However, tion to the floor, compromise legisla- about public notice of and Congres- back in 1971, the Department of Energy tion was reached with the gentleman sional oversight over new refuge des- had already decided that they did not from Michigan (Mr. DINGELL) and the ignations without unduly hampering need to manage their own lands and chairman of the Committee on Re- the designation process. Through signed a lease agreement with the U.S. sources, the gentleman from Alaska NEPA and at the Administrative Pro- Fish and Wildlife Service to manage a (Mr. YOUNG), that we believe everyone cedures Act, there is already a process portion of the lands as a national wild- has agreed to at this point. for providing public notice and solicit- life refuge. No act of Congress, no pub- What it does is it in essence requires ing input into the establishment of a lic commented, no discussion whatever. that upon the creation of a new wildlife new refuge. In addition, Congress has Instead, the Saddle Mountain National Wildlife Refuge was created through a refuge, that Members must be notified control over refuge land acquisition simple lease agreement with the De- if a refuge is being created in their dis- through appropriations from the Land trict; that all the environmental docu- partment of Energy. and Water Conservation Fund. Now, I am not suggesting that the ments, the environmental assessment, Mr. Speaker, no process is perfect national wildlife refuge system has not the environmental impact statement and there is always room for improve- benefitted our wildlife, and I am not and a summary of the public comments ment. The bill before the House today suggesting that this particular refuge relating to the proposed new refuge provides for even better public notice must be given to the Congressional has not been important to our area. In and input, as well as making sure that fact, far from it. However, continuing committee of authority, as well as the any Member of Congress whose district to allow the purchase of private prop- appropriating committee; and that no- includes lands being considered for in- erty by the Federal Government with- tices of scope and meetings required clusion in the new refuge will be amply out thorough and open discussion and under the NEPA process are published notified. the involvement of Congress really be- in local newspapers notifying the peo- It also explicitly states what is al- lies the national nature of these ref- ple who live in that particular area ready the case under current law, that uges. that there is the possibility of creation the designation of a proposed refuge The American people must have some of the new wildlife refuge in that area. boundary does not give the Fish and level of confidence that our national Mr. Speaker, we also clarify, and I Wildlife Service any regulatory author- wildlife refuges are created not only believe this is very important, that the ity over private lands within the pro- for scientific reasons, but with the ap- determination of the boundary for a posed boundary unless and until that propriate consideration of local con- new refuge does not impose any addi- land is acquired by the government. In cerns and priorities. tional Federal land use restrictions as other words, the proposed boundary is Because I know that the distin- a result of simply determining the pro- a wish-list for acquisition, and nothing guished chairman of the Committee on posed boundary until the land is ac- more. Resources shares my concerns on ref- quired by the Federal Government. By ensuring that the local commu- uge designations, I would like to en- Mr. Speaker, I reserve the balance of nity is fully vested in any new refuge gage in a colloquy with the gentleman my time. and by laying to rest landowners’ fears so he might indicate whether the com- Mr. PALLONE. Mr. Speaker, I yield that their property rights will be com- mittee plans to address this issue in myself such time as I may consume. promised, it is hoped that H.R. 512 will the future. (Mr. PALLONE asked and was given actually facilitate the establishment of permission to revise and extend his re- new refuges. b 1530 marks.) So, Mr. Speaker, I support the sub- Mr. YOUNG of Alaska. Mr. Speaker, Mr. PALLONE. Mr. Speaker, I rise in stitute. I commend the chairman of the if the gentleman will yield, I am support of the substitute amendment Committee on Resources, the gen- pleased to respond to that inquiry. to H.R. 512. I opposed the bill as it was tleman from Alaska (Mr. YOUNG) for I certainly understand the gentle- reported from the Committee on Re- working with the minority and the ad- man’s concern, and I can assure the sources because it imposed unjustified ministration to craft such a reasonable gentleman that the committee is fully restrictions on the use of the Land and compromise, and I urge the House to committed to strengthening the con- Water Conservation Fund to establish support the bill. gressional role on national wildlife ref- national wildlife refuges. This issue Mr. Speaker, I reserve the balance of uge systems as well as designations was debated on several occasions with- my time. and other what we call acquisition of in the committee and on the floor over Mr. YOUNG of Alaska. Mr. Speaker, I lands by any other Federal agency. the last two years and, in my opinion, yield 5 minutes to the gentleman from Mr. HASTINGS of Washington. Mr. the supporters of this proposal never Washington (Mr. HASTINGS). Speaker, I appreciate the Chairman’s made a convincing case that there was Mr. HASTINGS of Washington. Mr. strong leadership on national resource something fundamentally flawed with Speaker, I am in full agreement with issues generally and, in particular, on the process used to establish new wild- the original intent of this measure. In his commitment to focus further com- life refuges. fact, I wish the bill even went further mittee action on the increasing issues H3422 CONGRESSIONAL RECORD — HOUSE May 19, 1998 of concern to the West. I look forward munity of any public meetings to discuss the Instead, H.R. 512 would enact a require- to helping in any way that I can. scope of a proposed new refuge. In fact, ac- ment that all environmental analysis required Mr. PALLONE. Mr. Speaker, I yield cording to NEPA regulations (40 CFR 1501.7), under the National Environmental Policy Act back the balance of my time. ``There shall be an early and open process for (NEPA) be completed prior to acquisitions of Mr. YOUNG of Alaska. Mr. Speaker, I determining the scope of issues to be ad- new LWCF refuges, and that Members of yield myself such time as I may con- dressed and for identifying the significant Congress in affected areas be notified early in sume to say that I speak in support of issues related to proposed action. This proc- the acquisition process. H.R. 512, and I can only suggest that ess shall be termed scoping.'' Last year, through the sustained efforts of this is just a small step forward in the Finally, H.R. 512 clarifies that no additional my dear friend, Chairman YOUNG, Ranking right direction. land use restrictions shall be imposed on Member GEORGE MILLER and Interior Sec- I often suggest in this legislative property included within the acquisition bound- retary Bruce Babbitt, Congress approved long- work that nothing happens without a ary of a National Wildlife Refuge until that land overdue legislation to specify the mission and reason. The reason I introduced this is purchased by the Federal Government. management direction of the Refuge System. bill, we did have cases where the Fish This compromise does not provide the same The original text of H.R. 512 was deliberately and Wildlife Department, especially in level of oversight that is afforded to Bureau of left out of the National Wildlife Refuge System the district of the gentleman from Land Management lands, National Forests, Improvement Act because of intense and California (Mr. POMBO), there is an- Parks, or Scenic Rivers. It does, however, pro- broad opposition to what was rightly viewed as other one in another district, one of vide an increased opportunity for Congres- tying the hands of our Nation's refuge man- the Members came to me the other day sional review when necessary, fairness to agers. where they do it by action of the agen- property owners who are waiting to sell their However, the Fish and Wildlife Service has cy without any input from the Con- land to the government, better notice to the acknowledged isolated cases in which its per- gress. Under our Constitution, we are public when new refugees are proposed, and sonnel could have acted with more sensitivity the only ones that should have the au- statutory protection to private landowners and accountability to the local citizens and thority to make designation of lands. whose property is located within a refuge property owners within refuge acquisition This is a small step forward and re- boundary. boundaries. The Service has indicated to me quires the agencies to go forth and at With a $600 million backlog of critical re- that it has strong public participation policies in least identify the representative of source management needs, reasonable peo- place when new wildlife refuges are created. I that area and also have consultation ple can ask why the U.S. Fish and Wildlife urge the Director and her subordinates to with public input and then having to Service is obsessed with buying more private place a high priority on responsiveness in come back to the Congress for the iden- land, which by their own admission they are tification of those refuges that would such cases, so that answers are provided, incapable of managing effectively. Neverthe- take place. I think it is important that fears are allayed, and property owners can less, I recognize that many members of this we must keep the integrity for the ref- count on a positive relationship with their ref- uge system in place, and I hold no sec- body want additional land acquisitions and be- uge system neighbors. Mr. Speaker, while the legislation before us ond place to anyone when it comes to cause of their support, this process is likely to today will not prevent every future complaint refuge creations by act of Congress. continue in the future. At the same time, there The gentleman from Michigan (Mr. are thousands of Americans who want to keep or problem, it will hopefully be a gentle re- DINGELL), a dear friend of mine, and I and use their private property without the minder that citizens have every right and ex- worked on this legislation for over 28 shadow of Federal land control. This measure pectation to fair, prompt and just treatment by years. So I am confident that this is strikes a balance between those groups. the Federal agencies that serve them. the right step. But I will, as the gen- It allows the creation of new wildlife refuges I hope that the passage of this bill will elimi- tleman from Washington asked me, while ensuring that the local community and nate the need some have felt to legislate solu- continue, as chairman of the commit- its elected representatives in Congress are in- tions to rather confined sets of problems on tee, to watch what the agencies are formed of the Service's plans for new refuges. our National Wildlife Refuge System. As a doing. How does this affect the commu- Finally, this institution will have a full and com- Member of the Migratory Bird Conservation nity? Is the community supportive? plete record of information in order to assess Commission, I take great pride in serving this And, really, who is asking for this ref- the merits of the various land acquisition re- body to assure that our wildlife refuges live up uge? If it is scientifically backed up, quests. to the vision of their founder, President Theo- people back it up, then it ought to go I urge an ``aye'' vote on this important legis- dore Roosevelt, when he created the first ref- forward and go through the congres- lation. uge almost a century ago. When writing legis- sional action. Mr. DINGELL. Mr. Speaker, I rise today in lation, we must keep the best interests of the I rise in support of this modified version of support of this legislation, as amended in re- whole system in mind. H.R. 512, which is the product of successful sponse to an agreement between Chairman Finally, I want to remind my colleagues that negotiations between the Department of the YOUNG, the gentleman from Tennessee (Mr. the Fish and Wildlife Service is a modest- Interior, our colleagues, JOHN DINGELL, TANNER), the gentleman from California (Mr. sized agency with a large and important mis- GEORGE MILLER, RICHARD POMBO, and me. POMBO) and myself. sion, and that we are fortunate it provides the While this compromise is not as comprehen- As agreed to, H.R. 512 will codify several American taxpayers with a group of highly sive as a Congressional authorization, it will existing practices of the Fish and Wildlife skilled, dedicated and motivated employees improve the refuge land acquisition process Service to make absolutely certain that prop- who take pride in preserving our Nation's eco- and establish additional safeguards for private erty owners, local governments, concerned logical heritage. To my colleagues who never property owners. citizens, and Members of Congress are have visited a wildlife refuge in your home Under the terms of this proposal, no money brought into the public comment and review states, I urge you to do so, to meet your ref- can be authorized to be appropriated from the process when a new wildlife refuge is added uge managers and express your interest in Land and Water Conservation Fund to create to our National Wildlife Refuge System using helping form a strong partnership between a new refuge unless: The environmental re- Land and Water Conservation Act funds. your constituents and those who manage their views required by the National Environmental The compromise before us today is sub- wildlife refuges. Policy Act are completed; a copy of the final stantially different than the bill as reported by Mr. UNDERWOOD. Mr. Speaker, today I environmental impact statement or environ- Committee. Had the reported measure been rise in support of the substitute to H.R. 512, mental assessment and a summary of all pub- presented here for debate without amend- the New Wildlife Refuge Reauthorization Act. lic comments on the proposed refuge are pro- ment, I would have fought vigorously against I feel that it is appropriate for the Congress to vided to the House and Senate authorizing its enactment. However, I am pleased to re- be a part of the process in the purchasing of and appropriations committees; and the De- port to my colleagues that the bill as pre- land by the United States Fish & Wildlife Serv- partment of the Interior provides notice to sented today does not create needless road- ice. I fully support the requirement in the bill each Member of Congress representing a dis- blocks in creating new refuges, will not tie the that the Congressional member, whose district trict in which the proposed wildlife refuge will hands of the Fish and Wildlife Service in pro- is directly affected by the decision to establish be located when a preliminary project proposal ceeding with land acquisition, and does not a wildlife refuge, be notified in advance of the is completed. establish a new Congressional review and ap- transaction. The bill also requires that notice be provided proval process for the creation of new wildlife I understand that we are here today to im- in the local newspapers of an affected com- refuges. prove upon a procedure which has existed May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3423 since the establishment of the Land and Water Often, Mr. Speaker, I express to the Con- Whereas to further recognize the selfless Conservation Fund by Congress in 1965. I gress circumstances that are unique to contributions of EMS personnel nationwide, caution my fellow colleagues, however, that as Guam's situation. In many cases, the experi- the Virginia Association of Volunteer Rescue we seek to become active participants we are Squads, Inc., and the Julian Stanley Wise ences of my island and people have not and Foundation, in conjunction with To The Res- still neglected in other processes that the Fish will not be duplicated or relived in any other cue, in 1993 organized the first annual Na- & Wildlife Service can and has exploited. territory or state, or by any other American citi- tional Emergency Medical Services (EMS) The reacquisition in Guam, by the United zen. I must remind my colleagues, however, Memorial Service at Greene Memorial States, at the close of WWII resulted in large that this is not the case in this case. United Methodist Church in Roanoke, Vir- tracts of land condemned at the expense of In light of these concerns, I am in agree- ginia, to honor EMS personnel from across landowners on Guam. U.S. officials reasoned ment with the substitute to H.R. 512 and am the country who have died in the line of with locals that the condemnations were in the appreciative that we are working to correct duty; Whereas the annual National EMS Memo- interest of National Security. At that time, ap- problems with current land acquisition proce- proximately one-half of Guam's land mass rial Service has captured national attention dures. In the future, I am hopeful that the by honoring 119 providers of emergency med- were taken. Today, one-third is still held by issues I raised can be addressed in discus- the Department of Defense. The people of ical services from 35 States; sions with my colleagues. Whereas the singular devotion of EMS per- Guam have lived with this reality for the better We want to protect our resources; we want sonnel to the safety and welfare of their fel- part of this century. to protect the endangered species. But we low citizens is worthy of the highest praise; Though this situation has been one in which must do so in a collaborative manner and in Whereas the annual National EMS Memo- the people of Guam have had to endure, it a way which takes into account local leader- rial Service is a fitting reminder of the brav- was not widely questioned. After all, the secu- ery and sacrifice of EMS personnel nation- ship and concerns. wide; rity of your liberators is important to the secu- Mr. YOUNG of Alaska. Mr. Speaker, I rity of yourself and at the time, threats to de- Whereas according to the Department of yield back the balance of my time. mocracy were still clearly visible in the era of Health and Human Services, 170,000 Ameri- The SPEAKER pro tempore (Mr. the Cold War. With the close of the Cold War cans require emergency medical services on SHIMKUS). The question is on the mo- an average day, a number which projects to era, however, the mindsets of individuals and tion offered by the gentleman from over 60,000,000 people annually; and families began to change. It was logical to California (Mr. POMBO) that the House Whereas the life of every American will be think that if land takings were a result of Na- suspend the rules and pass the bill, affected, directly or indirectly, by the tional Security, and the threats to American H.R. 512, as amended. uniquely skilled and dedicated efforts of democracy ceased to exist as another world EMS personnel who work bravely and tire- The question was taken; and (two- power, then maybe someday the United lessly to preserve America’s greatest re- thirds having voted in favor thereof) States may give some land back to the people source—people: Now, therefore, be it of Guam. the rules were suspended and the bill, Resolved by the House of Representatives (the Perhaps this logic was too simple, but it was as amended, was passed. Senate concurring), The title was amended so as to read: SECTION 1. OFFICIAL SITE OF NATIONAL MEMO- not far off. The focus of U.S. demilitarization RIAL SERVICE. and transition to opening up America to a ‘‘A bill to establish requirements relat- ing to the designation of new units of The Congress declares the City of Roanoke, global economy prompted downsizing of Virginia, to be the official site of the Na- America's military services. Each of us here the National Wildlife Refuge System.’’. tional Emergency Medical Services Memo- with a military base in their district are all too A motion to reconsider was laid on rial Service to honor emergency medical familiar with the Base Realignment and Clo- the table. services personnel who have died in the line sure Commission, which was created to close f of duty. military installations based on need and not SEC. 2. RULE OF CONSTRUCTION. want. GENERAL LEAVE Nothing in this resolution shall be con- In my district of Guam, this news was dif- Mr. YOUNG of Alaska. Mr. Speaker, I strued to place the National Emergency ficult for civil service employees who designed Medical Services Memorial Service under ask unanimous consent that all Mem- Federal authority or to require any expendi- their careers around military presence on our bers may have 5 legislative days within ture of Federal funds. island. After all, the military's years of pres- which to revise and extend their re- The SPEAKER pro tempore. Pursu- ence and integration with the local community marks and include extraneous material ant to the rule, the gentleman from was accepted and welcomed. For landowners on the bill just passed and just debated. Florida (Mr. BILIRAKIS) and the gen- and their descendants, the news of base clo- The SPEAKER pro tempore (Mr. tleman from Ohio (Mr. BROWN) each sures was a glimmer of hope that military land SHIMKUS). Is there objection to the re- would be returned to anxious families. will control 20 minutes. quest of the gentleman from Alaska? The Chair recognizes the gentleman Aside from being second-class citizens or There was no objection. regularly put-off in aspirations to seek a new from Florida (Mr. BILIRAKIS). f political relationship, Guam does have some- GENERAL LEAVE thing in common with other states of the NATIONAL EMERGENCY MEDICAL Mr. BILIRAKIS. Mr. Speaker, I ask Union. Not all the lands acquired by the Fish SERVICES MEMORIAL SERVICE unanimous consent that all Members & Wildlife Service, for purposes of establishing may have 5 legislative days within Mr. BILIRAKIS. Mr. Speaker, I move a Wildlife Refuge, come from tapping the Land which to revise and extend their re- to suspend the rules and agree to the and Water Conservation Fund or the Migratory marks and include extraneous material concurrent resolution (H. Con. Res. 171) Bird Conservation Fund, nor does all the land on H. Con. Res. 171, the resolution now come from private donations. My colleagues, declaring the memorial service spon- being considered. our commonality is that the Fish & Wildlife sored by the National Emergency Medi- The SPEAKER pro tempore. Is there Service can take lands from our districts with- cal Services (EMS) Memorial Service objection to the request of the gen- out our knowledge . . . without our consulta- Board of Directors to honor emergency tleman from Florida? tion . . . even without notice to our respective medical services personnel to be the There was no objection. local governments. ‘‘National Emergency Medical Services (Mr. BILIRAKIS asked and was given In the case of my island of Guam, the Fish Memorial Service,’’ as amended. permission to revise and extend his re- & Wildlife Service seized more than 300 acres The Clerk read as follows: marks.) of land to be deemed excess by the US Air H. CON. RES. 171 Mr. BILIRAKIS. Mr. Speaker, I yield Force. This figure may seem small upon first myself such time as I may consume. hearing but if added to the additional 28,000 Whereas in 1928 Julian Stanley Wise found- Mr. Speaker, I encourage my col- acres designated as an overlay for the refuge. ed the first volunteer rescue squad in United leagues to approve H. Con. Res. 171 in- Proportionately, this is akin to condemning 12 States, the Roanoke Life Saving and First troduced by the gentleman from Vir- states and making them off limits. Fish & Wild- Aid Crew, and Virginia has subsequently ginia (Mr. GOODLATTE) and the gen- taken the lead in honoring the thousands of tleman from Virginia (Mr. GOODE), life arranged for this possession to occur with people nationwide who give their time and no notice to myself or any other local govern- energy to community rescue squads through which designates the city of Roanoke, ment leader. Fish and Wildlife hid behind pro- the establishment of To The Rescue, a mu- Virginia, to be the official site of the cedural nonsense which leaves for no consid- seum located in Roanoke devoted to emer- National Emergency Medical Services eration to any entity other than themselves. gency medical services (EMS) personnel; Memorial Service. H3424 CONGRESSIONAL RECORD — HOUSE May 19, 1998 H. Con. Res. 171, Mr. Speaker, does Mr. Speaker, I rise today along with personnel play in the life of every honor to the memory of 119 emergency my good friend and colleague from Vir- American citizen. medical services personnel in 35 States ginia (Mr. GOODE) in supporting House Mr. BROWN of Ohio. Mr. Speaker, I who laid down their lives for their fel- Concurrent Resolution 171 which I have yield 2 minutes to the gentleman from low Americans in the line of duty. I introduced to honor emergency medi- Virginia (Mr. GOODE). urge my colleagues to support this cal services personnel and, in particu- (Mr. GOODE asked and was given measure to bring greater public ac- lar, those who have given their lives in permission to revise and extend his re- claim to the many men and women the line of duty and also to name Roa- marks.) who have sacrificed their time, and noke, Virginia, as the official site of even their lives, for the health and the National Emergency Medical Serv- Mr. GOODE. Mr. Speaker, I want to safety of others. ices Memorial Service held each year say a special word of thanks to the Mr. Speaker, I would communicate to to honor those fallen EMS personnel. gentleman from Virginia (Mr. GOOD- my fellow Members that this passed In 1928, an aptly-named gentleman LATTE) for his leadership on this meas- through our subcommittee and full from Roanoke, Virginia, Julian Stan- ure and to thank the committee for committee on a voice vote unani- ley Wise, founded the first volunteer their prompt action and for doing it mously. rescue squad in America, the Roanoke right before the Memorial Day recess. Mr. Speaker, I reserve the balance of Life Saving and First Aid Crew. This Over the course of a number of years, my time. organization was the forerunner of to- I have had the opportunity to come to Mr. BROWN of Ohio. Mr. Speaker, I day’s emergency medical services pro- know many members of the Virginia yield myself such time as I may con- grams. Today, thousands of dedicated Association of Volunteer Rescue sume. citizens give their time and energy to Squads. I have seen their experiences Mr. Speaker, I rise in support of the community rescue squads across the in many different avenues and the legislation we are considering today, country as EMS personnel, and many work that they have done. I also know the National Emergency Services Me- have made the ultimate sacrifice by the hard work that they did in the Vir- morial Service. I strongly support this giving their lives for the safety and ginia general assembly over many effort to honor the dedicated men and welfare of their fellow citizens. years. I know of the kindnesses person- women in our emergency medical serv- To further recognize the contribu- ally that they extended to my mother ice and rescue squads who have laid tions of both Julian Wise and countless when she was ill and needed their as- down their lives in the line of duty. EMS personnel nationwide, a museum sistance on many occasions. All across the country, municipal was established in Roanoke to pay trib- So, at the outset, I want to commend and volunteer EMS and rescue squads ute to both volunteer and career EMS the Members of the Virginia Associa- saves thousands of lives each year. In personnel. This museum called, To the tion of Volunteer Rescue Squads on this capacity, these brave women and Rescue, includes a memorial ‘‘Tree of originating the National EMS Memo- men often place their lives in grave Life,’’ which includes a bronze oak leaf rial Service in Roanoke, Virginia, and danger to save the lives of their fellow that has inscribed on it the names of in continuing to be one of its major citizens. all those who have been recognized. A supporters. Now, the service takes in In my district in northeast Ohio, res- national EMS Memorial Book, located squads, emergency medical services cue squads in communities like Medina beside the Tree of Life, contains a pic- teams and other units from all across and Brunswick and Sheffield Lake are ture and brief biography of each person the Nation. In the past few years, they on call night and day, utilizing their recognized. have been as far away as the State of well-honed skills to meet the needs of In 1993, to honor EMS personnel from Washington and the State of Califor- citizens whom they serve. across the country who have died in nia. This legislation, which pays homage the line of duty, the Virginia Associa- In closing, I simply want to say it is to EMS personnel who have died in the tion of Volunteer Rescue Squads, In- indeed fitting that Congress spend a line of duty by recognizing an annual corporated, and the Julian Stanley few minutes to honor the men and national memorial service in their Wise Foundation, in conjunction with women who have given their lives in honor, was unanimously passed by the To the Rescue, organized the first an- this honorable pursuit and to declare Committee on Commerce. nual National Emergency Medical the memorial service held in Roanoke, I would like to thank my Chairman, Services Memorial Service in Roanoke. Virginia and sponsored by the National the gentleman from Florida (Mr. BILI- Since then, the National Emergency Emergency Medical Services Memorial RAKIS), for his leadership on this issue Medical Services Memorial Service has Service board to honor emergency in honor of the thousands of dedicated captured national attention by honor- medical service personnel who have EMS and rescue squad professionals ing 119 providers of emergency medical died in the line of duty. around the country and those who have services from 35 States who have given died in the line of duty saving lives. I their lives in the line of duty. Mr. RODRIGUEZ. Mr. Speaker, a little over urge my colleagues to support this leg- The life of every American will be af- a year ago, on the night of May 3, 1997, Jes- islation. fected directly or indirectly by the sie F. Bricker, Jr., a brave fire fighter from San Mr. Speaker, I reserve the balance of uniquely skilled and dedicated efforts Antonio, Texas, responded to a four-alarm fire. my time. of the EMS personnel who work brave- After joining in a battle that lasted over 7 Mr. BILIRAKIS. Mr. Speaker, I ly and tirelessly to preserve America’s hours. Soon after he returned to the station, thank the ranking member of our sub- greatest resource: her people. Because Mr. Bricker succumbed to smoke inhalation committee, the gentleman from Ohio the memorial service held in Roanoke and died. Over 100 others like Mr. Bricker (Mr. BROWN), for his great cooperation is a fitting reminder of that bravery have paid the ultimate price for their service to and the work done by both staffs, ma- and sacrifice, it is only appropriate our communities. Let us stand here today and jority and minority. that Congress recognize the City of Ro- convey to the loved ones of these fallen per- Mr. Speaker, I yield such time as he anoke as the official site of the Na- sonnel that these sacrifices do not go unno- may consume to the gentleman from tional Emergency Medical Services Me- ticed. I rise in strong support of H. Con. Res. Virginia (Mr. GOODLATTE). morial Service. 171, which recognizes the sacrifices of the Mr. GOODLATTE. Mr. Speaker, I es- Similar legislation has been intro- men and women who risk their lives each day pecially want to give my thanks to the duced in the Senate by Senator GREGG to protect us in cities and towns all across the gentleman from Florida (Mr. BILI- of New Hampshire, as well as Senators country. RAKIS) for moving this legislation WARNER and ROBB of Virginia. I join We cannot bring back those brave emer- through his subcommittee and the gen- my colleague from Virginia (Mr. gency personnel like Jessie Bricker who gave tleman from Virginia (Mr. BLILEY) for GOODE) today in urging my colleagues their lives to protect us. But we can take ac- moving it through the full Committee to support this resolution, and I also tion today to recognize the risks that our fire on Commerce, and I also want to thank would urge the Senate to act swiftly to fighters face each day. This bill would honor the gentleman from Ohio (Mr. BROWN) pass this important resolution and rec- the National Emergency Medical Service Me- for his assistance as well. ognize the important role that EMS morial Service which each year recognizes May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3425 those who have fallen in the line of duty. Fur- resolution, we commend the workers who lowing: ‘‘under the direction of a board of direc- thermore, this legislation expresses the grati- maintain that standard of excellence, at the tors meeting the following requirements: tude that we show for the dedication of volun- risk of their own lives. ‘‘(1) Each member of the board shall serve for a term of two years, and each such member may teer and career emergency personnel, who I also understand that to limit the extent of serve as many as three consecutive two-year each day leave the security of their homes our praise to the quantity of injuries our emer- terms, except that such limitations shall not and families to serve those in need all across gency medical personnel treat would be a apply to the Chair of the board (or the Chair- America. great disservice. We note that these heroes elect) or to the member of the board who most Mr. OXLEY. Mr. Speaker, today the House and heroines often go beyond their job de- recently served as the Chair. will consider legislation, H. Con. Res. 171, to scriptions and perform with expertise, tech- ‘‘(2) A member of the board may continue to declare that the memorial service held each nique, and compassion. Colleagues, I assure serve after the expiration of the term of such year in Roanoke, Virginia to honor emergency member until a successor is appointed. you, without them, life as we enjoy it would be ‘‘(3) In order to ensure the continuity of the medical services personnel who have died in substantially different. board, the board shall be appointed so that each the line of duty be designated as the ``National I implore my colleagues to support this cele- year the terms of approximately 1⁄3 of the mem- Emergency Medical Services Memorial Serv- bration of the unrecognized daily deeds done bers of the board expire. ice''. As the House debates this thoughtful leg- by our fellow Americans. There can be no ‘‘(4) The membership of the board shall in- islation, I would like to take a moment to higher praise for any of these individuals, who clude representatives of marrow donor centers honor one of my constituents, a dedicated and are oftentimes placed in harm's way, yet al- and marrow transplant centers; recipients of a heroic paramedic who was killed in the line of most always reach beyond the realm of good bone marrow transplant; persons who require or have required such a transplant; family mem- duty. samaritanship and into the province of hero- bers of such a recipient or family members of a On June 6th of last year Mr. Robert Good, ism. patient who has requested the assistance of the of Marion Ohio, was responding to a motor ve- Mr. BILIRAKIS. Mr. Speaker, I Registry in searching for an unrelated donor of hicle accident involving live downed power would like to acknowledge committee bone marrow; persons with expertise in the so- lines. Knowing of the danger, Mr. Good and staffers John Ford and Marc Wheat. cial sciences; and members of the general public; several other rescue workers extracted the ac- Having done that, I have no further and in addition nonvoting representatives from cident victim from the automobile. While Rob- requests for time, and I yield back the the Naval Medical Research and Development ert Good was able to save the lives of two balance of my time. Command and from the Division of Organ people, a bystander whom he pushed out of Transplantation of the Health Resources and Mr. BROWN of Ohio. Mr. Speaker, I Services Administration.’’. the way of live power lines and his partner yield back the balance of my time. (b) PROGRAM FOR UNRELATED MARROW whom he directed to stay clear of the acci- The SPEAKER pro tempore. The TRANSPLANTS.— dent, he was, unfortunately, not able to save question is on the motion offered by (1) IN GENERAL.—Section 379(b) of the Public himself. Mr. Good, the motor vehicle accident the gentleman from Florida (Mr. BILI- Health Service Act (42 U.S.C. 274k(b)) is amend- victim, and two rescue volunteers were killed RAKIS) that the House suspend the rules ed by redesignating paragraph (7) as paragraph in the courageous rescue attempt. and agree to the concurrent resolution (8), and by striking paragraphs (2) through (6) Since this is National Emergency Medical and inserting the following: (H. Con. Res. 171), as amended. ‘‘(2) carry out a program for the recruitment Services Week, it is fitting that today the The question was taken; and (two- of bone marrow donors in accordance with sub- House is passing legislation honoring those thirds having voted in favor thereof) section (c), including with respect to increasing emergency medical services personnel, like the rules were suspended and the con- the representation of racial and ethnic minority Mr. Good, who have died while saving the current resolution, as amended, was groups (including persons of mixed ancestry) in lives of those in need. We all owe a debt of agreed to. the enrollment of the Registry; gratitude to these highly skilled professionals. The title was amended so as to read: ‘‘(3) carry out informational and educational This week, Mr. Good will also be honored activities in accordance with subsection (c); ‘‘Concurrent resolution declaring the ‘‘(4) annually update information to account posthumously as part of a program that pays city of Roanoke, Virginia, to be the of- for changes in the status of individuals as po- tribute to the men and women of the emer- ficial site of the National Emergency tential donors of bone marrow; gency medical service profession. During the Medical Services Memorial Service.’’ ‘‘(5) provide for a system of patient advocacy ceremony, Mr. Good's partner will accept the A motion to reconsider was laid on through the office established under subsection appropriately named Stars of Life award on the table. (d); ‘‘(6) provide case management services for any his behalf. I believe this is a fitting award for f his selfless actions to save the lives of others. potential donor of bone marrow to whom the At this time, allow me to personally add my NATIONAL BONE MARROW REG- Registry has provided a notice that the potential donor may be suitably matched to a particular praise and tribute to the memory of Mr. Good ISTRY REAUTHORIZATION ACT OF 1998 patient (which services shall be provided for his courageous actions. Robert Good was through a mechanism other than the system of truly a hero to all who knew him and benefited Mr. BILIRAKIS. Mr. Speaker, I move patient advocacy under subsection (d)), and from his valiant and noble work. to suspend the rules and pass the bill conduct surveys of donors and potential donors Ms. JACKSON-LEE of Texas. Mr. Speaker, (H.R. 2202) to amend the Public Health to determine the extent of satisfaction with such I would like to take advantage of this great op- Service Act to revise and extend the services and to identify ways in which the serv- portunity to personally thank the emergency bone marrow donor program, and for ices can be improved; medical personnel of our nation. ‘‘(7) with respect to searches for unrelated do- other purposes, as amended. nors of bone marrow that are conducted This resolution specifically memorializes our The Clerk read as follows: through the system under paragraph (1), collect fallen emergency workers through the recogni- H.R. 2202 and analyze and publish data on the number tion of the National Emergency Medical De- and percentage of patients at each of the var- Be it enacted by the Senate and House of Rep- vices Memorial Service held every year in Ro- ious stages of the search process, including data resentatives of the United States of America in regarding the furthest stage reached; the num- anoke, Virginia. It is only appropriate since Congress assembled, Roanoke is the site of the first-ever volunteer ber and percentage of patients who are unable SECTION 1. SHORT TITLE. to complete the search process, and the reasons rescue squad in the United States, the ``Roa- This Act may be cited as the ‘‘National Bone noke Life Saving and First Aid Crew''. The underlying such circumstances; and compari- Marrow Registry Reauthorization Act of 1998’’. sons of transplant centers regarding search and members of that crew, helped establish a tra- SEC. 2. REAUTHORIZATION. other costs that prior to transplantation are dition of selflessness and virtue that lives on (a) ESTABLISHMENT OF REGISTRY.—Section charged to patients by transplant centers; and’’. today through our emergency health care 379(a) of the Public Health Service Act (42 (2) REPORT OF INSPECTOR GENERAL; PLAN RE- workers. U.S.C. 274k(a)) is amended— GARDING RELATIONSHIP BETWEEN REGISTRY AND Although we live in a nation of relative pros- (1) by striking ‘‘(referred to in this part as the DONOR CENTERS.—The Secretary of Health and perity and health, over 170,000 people require ‘Registry’) that meets’’ and inserting ‘‘(referred Human Services shall ensure that, not later some sort of emergency medical assistance to in this part as the ‘Registry’) that has the than one year after the date of the enactment of every day. That amounts to 60 million Ameri- purpose of increasing the number of transplants this Act, the National Bone Marrow Donor Reg- for recipients suitably matched to biologically istry (under section 379 of the Public Health cans during the course of the year. As stag- unrelated donors of bone marrow, and that Service Act) develops, evaluates, and implements gering an amount as that is, even more im- meets’’; a plan to effectuate efficiencies in the relation- pressive is the fact that the great majority of (2) by striking ‘‘under the direction of a board ship between such Registry and donor centers. those people will survive and be treated for of directors that shall include representatives The plan shall incorporate, to the extent prac- their ailments successfully. By passing this of’’ and all that follows and inserting the fol- ticable, the findings and recommendations made H3426 CONGRESSIONAL RECORD — HOUSE May 19, 1998 in the inspection conducted by the Office of the rectly providing to the patient (or family mem- nually submit to the Secretary the data collected Inspector General (Department of Health and bers, physicians, or other individuals acting on under subsection (b)(7) on comparisons of trans- Human Services) as of January 1997 and known behalf of the patient) individualized services plant centers regarding search and other costs as the Bone Marrow Program Inspection. with respect to efficiently utilizing the system that prior to transplantation are charged to pa- (c) PROGRAM FOR INFORMATION AND EDU- under subsection (b)(1) to conduct an ongoing tients by transplant centers. The data shall be CATION.—Section 379 of the Public Health Serv- search for a donor. submitted to the Secretary through inclusion in ice Act (42 U.S.C. 274k) is amended by striking ‘‘(D) In carrying out subparagraph (C), the the annual report required in section 379A(c).’’. subsection (j), by redesignating subsections (c) Office shall monitor the system under subsection (g) CONFORMING AMENDMENTS.—Section 379 of through (i) as subsections (e) through (k), re- (b)(1) to determine whether the search needs of the Public Health Service Act, as amended by spectively, and by inserting after subsection (b) the patient involved are being met, including subsection (c) of this section, is amended— the following subsection: with respect to the following: (1) in subsection (f), by striking ‘‘subsection ‘‘(c) RECRUITMENT; PRIORITIES; INFORMATION ‘‘(i) Periodically providing to the patient (or (c)’’ and inserting ‘‘subsection (e)’’; and AND EDUCATION.— an individual acting on behalf of the patient) (2) in subsection (k), by striking ‘‘subsection ‘‘(1) RECRUITMENT; PRIORITIES.—The Registry information regarding donors who are suit- (c)(5)(A)’’ and inserting ‘‘subsection (e)(5)(A)’’ shall carry out a program for the recruitment of ability matched to the patient, and other infor- and by striking ‘‘subsection (c)(5)(B)’’ and in- bone marrow donors. Such program shall iden- mation regarding the progress being made in the serting ‘‘subsection (e)(5)(B)’’. tify populations that are underrepresented search. SEC. 3. RECIPIENT REGISTRY. among potential donors enrolled with the Reg- ‘‘(ii) Informing the patient (or such other in- Part I of title III of the Public Health Service istry. In the case of populations that are identi- dividual) if the search has been interrupted or Act (42 U.S.C. 274k et seq.) is amended by strik- fied under the preceding sentence: discontinued. ing section 379A and inserting the following: ‘‘(A) The Registry shall give priority to carry- ‘‘(iii) Identifying and resolving problems in ing out activities under this part to increase rep- the search, to the extent practicable. ‘‘SEC. 379A. BONE MARROW SCIENTIFIC REG- ISTRY. resentation for such populations in order to en- ‘‘(E) In carrying out subparagraph (C), the ‘‘(a) ESTABLISHMENT OF RECIPIENT REG- able a member of such a population, to the ex- Office shall monitor the system under subsection ISTRY.—The Secretary, acting through the Reg- tent practicable, to have a probability of finding (b)(1) to determine whether the Registry, donor istry under section 379 (in this section referred a suitable unrelated donor that is comparable to centers, transplant centers, and other entities to as the ‘Registry’), shall establish and main- the probability that an individual who is not a participating in the Registry program are com- tain a scientific registry of information relating member of an underrepresented population plying with standards issued under subsection to patients who have been recipients of a trans- would have. (e)(4) for the system for patient advocacy under plant of bone marrow from a biologically unre- ‘‘(B) The Registry shall consider racial and this subsection. ethnic minority groups (including persons of ‘‘(F) The Office shall ensure that the follow- lated donor. mixed ancestry) to be populations that have ing data are made available to patients: ‘‘(b) INFORMATION.—The scientific registry been identified for purposes of this paragraph, ‘‘(i) The resources available through the Reg- under subsection (a) shall include information and shall carry out subparagraph (A) with re- istry. with respect to patients described in subsection spect to such populations. ‘‘(ii) A comparison of transplant centers re- (a), transplant procedures, and such other in- ‘‘(2) INFORMATION AND EDUCATION REGARDING garding search and other costs that prior to formation as the Secretary determines to be ap- RECRUITMENT; TESTING AND ENROLLMENT.— transplantation are charged to patients by propriate to conduct an ongoing evaluation of ‘‘(A) IN GENERAL.—In carrying out the pro- transplant centers. the scientific and clinical status of transplan- gram under paragraph (1), the Registry shall ‘‘(iii) A list of donor registries, transplant cen- tation involving recipients of bone marrow from carry out informational and educational activi- ters, and other entities that meet the applicable biologically unrelated donors. ties for purposes of recruiting individuals to standards, criteria, and procedures under sub- ‘‘(c) ANNUAL REPORT ON PATIENT OUT- serve as donors of bone marrow, and shall test section (e). COMES.—The Registry shall annually submit to and enroll with the Registry potential donors. ‘‘(iv) The posttransplant outcomes for individ- the Secretary a report concerning patient out- Such information and educational activities ual transplant centers. comes with respect to each transplant center. shall include the following: ‘‘(v) Such other information as the Registry Each such report shall use data collected and ‘‘(i) Making information available to the gen- determines to be appropriate. maintained by the scientific registry under sub- eral public, including information describing the ‘‘(G) The Office shall conduct surveys of pa- section (a). Each such report shall in addition needs of patients with respect to donors of bone tients (or family members, physicians, or other include the data required in section 379(l) (relat- marrow. individuals acting on behalf of patients) to de- ing to pretransplant costs).’’. ‘‘(ii) Educating and providing information to termine the extent of satisfaction with the sys- SEC. 4. AUTHORIZATION OF APPROPRIATIONS. individuals who are willing to serve as potential tem for patient advocacy under this subsection, Title III of the Public Health Service Act (42 donors, including providing updates. and to identify ways in which the system can be U.S.C. 241 et seq.) is amended— ‘‘(iii) Training individuals in requesting indi- improved. (1) by transferring section 378 from the cur- viduals to serve as potential donors. ‘‘(3) CASE MANAGEMENT.— rent placement of the section and inserting the ‘‘(B) PRIORITIES.—In carrying out informa- ‘‘(A) IN GENERAL.—In serving as an advocate section after section 377; and tional and educational activities under subpara- for a patient under paragraph (2), the Office (2) in part I, by inserting after section 379A graph (A), the Registry shall give priority to re- shall provide individualized case management the following section: services directly to the patient (or family mem- cruiting individuals to serve as donors of bone ‘‘SEC. 379B. AUTHORIZATION OF APPROPRIA- marrow for populations that are identified bers, physicians, or other individuals acting on TIONS. behalf of the patient), including— under paragraph (1). ‘‘For the purpose of carrying out this part, ‘‘(3) TRANSPLANTATION AS TREATMENT OP- ‘‘(i) individualized case assessment; and ‘‘(ii) the functions described in paragraph there are authorized to be appropriated TION.—In addition to activities regarding re- $18,000,000 for fiscal year 1999, and such sums as cruitment, the program under paragraph (1) (2)(D) (relating to progress in the search proc- ess). may be necessary for each of the fiscal years shall provide information to physicians, other 2000 through 2003.’’. health care professionals, and the public regard- ‘‘(B) POSTSEARCH FUNCTIONS.—In addition to the case management services described in para- SEC. 5. STUDY BY GENERAL ACCOUNTING OF- ing the availability, as a potential treatment op- FICE. tion, of receiving a transplant of bone marrow graph (1) for patients, the Office may, on behalf of patients who have completed the search for (a) IN GENERAL.—During the period indicated from an unrelated donor.’’. pursuant to subsection (b), the Comptroller Gen- (d) PATIENT ADVOCACY AND CASE MANAGE- an unrelated donor, provide information and eral of the United States shall conduct a study MENT.—Section 379 of the Public Health Service education on the process of receiving a trans- of the National Bone Marrow Donor Registry Act (42 U.S.C. 274k), as amended by subsection plant of bone marrow, including the under section 379 of the Public Health Service (c) of this section, is amended by inserting after posttransplant process.’’. Act for purposes of making determinations of subsection (c) the following subsection: (e) CRITERIA, STANDARDS, AND PROCEDURES.— the following: ‘‘(d) PATIENT ADVOCACY; CASE MANAGE- Section 379(e) of the Public Health Service Act (1) The extent to which, relative to the effec- MENT.— (42 U.S.C. 274k), as redesignated by subsection ‘‘(1) IN GENERAL.—The Registry shall establish (c) of this section, is amended by striking para- tive date of this Act, such Registry has in- and maintain an office of patient advocacy (in graph (4) and inserting the following: creased the representation of racial and ethnic this subsection referred to as the ‘Office’). ‘‘(4) standards for the system for patient ad- minority groups (including persons of mixed an- ‘‘(2) GENERAL FUNCTIONS.—The Office shall vocacy operated under subsection (d), including cestry) among potential donors of bone marrow meet the following requirements: standards requiring the provision of appropriate who are enrolled with the Registry, and whether ‘‘(A) The Office shall be headed by a director. information (at the start of the search process the extent of increase results in a level of rep- ‘‘(B) The Office shall operate a system for pa- and throughout the process) to patients and resentation that meets the standard established tient advocacy, which shall be separate from their families and physicians;’’. in subsection (c)(1)(A) of such section 379 (as mechanisms for donor advocacy, and which (f) REPORT.—Section 379 of the Public Health added by section 2(c) of this Act). shall serve patients for whom the Registry is Service Act, as amended by subsection (c) of this (2) The extent to which patients in need of a conducting, or has been requested to conduct, a section, is amended by adding at the end the transplant of bone marrow from a biologically search for an unrelated donor of bone marrow. following subsection: unrelated donor, and the physicians of such pa- ‘‘(C) In the case of such a patient, the Office ‘‘(l) ANNUAL REPORT REGARDING tients, have been utilizing the Registry in the shall serve as an advocate for the patient by di- PRETRANSPLANT COSTS.—The Registry shall an- search for such a donor. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3427 (3) The number of such patients for whom the after he decided to go through with Mr. Speaker, I rise in support of the Registry began a preliminary search but for this program and put it into effect that legislation we are considering today to whom the full search process was not completed, his daughter was saved by the program. reauthorize the National Bone Marrow and the reasons underlying such circumstances. (4) The extent to which the plan required in b 1545 Donor Registry Program. This program section 2(b)(2) of this Act (relating to the rela- has given thousands of patients suffer- That, of course, I am referring to my ing from diseases like leukemia a sec- tionship between the Registry and donor cen- friend and colleague, the gentleman ters) has been implemented. ond chance at life. (5) The extent to which the Registry, donor from Florida (Mr. BILL YOUNG). I would like to recognize the work of The gentleman from Florida (Mr. centers, donor registries, collection centers, my chairman, the gentleman from YOUNG) secured the original appropria- transplant centers, and other appropriate enti- Florida (Mr. MIKE BILIRAKIS) and the tion which established this important ties have been complying with the standards, sponsor of this legislation, the gen- criteria, and procedures under subsection (e) of program in early 1987 through a grant tleman from Florida (Mr. BILL YOUNG), such section 379 (as redesignated by section 2(c) to the Department of the Navy. In this of this Act). Congress he has worked tirelessly to in moving this important bill to the (b) REPORT.—A report describing the findings secure reauthorization of the program, floor. of the study under subsection (a) shall be sub- and I was pleased to support his effort I extend a special thanks to the gen- mitted to the Congress not later than October 1, as a cosponsor of H.R. 2202. tlewoman from Southern California 2001. The report may not be submitted before In 1997 the National Marrow Donor (Ms. JUANITA MILLENDER-MCDONALD), January 1, 2001. Program was responsible for facilitat- who has worked tirelessly to include SEC. 6. COMPLIANCE WITH NEW REQUIREMENTS ing 1,280 unrelated marrow transplants, provisions in the bill to help meet the FOR OFFICE OF PATIENT ADVOCACY. needs of minority and mixed-race pa- With respect to requirements for the office of men and women who never met each patient advocacy under section 379(d) of the other but knew that through the sim- tients. For patients who suffer from Public Health Service Act, the Secretary of ple procedure of marrow donation a life terminal diseases, such as cancer and Health and Human Services shall ensure that, would be saved. blood and immune system disorders, not later than 180 days after the effective date There are approximately 5,000 to 7,000 the transplantation of bone marrow of- of this Act, such office is in compliance with all Americans who could benefit from po- fers their only hope for a cure. requirements (established pursuant to the tentially lifesaving unrelated donor In 1987, with a small grant to the De- amendment made by section 2(d)) that are addi- transplants, and yet for many, matches partment of the Navy, the National tional to the requirements that under section 379 cannot be found yet. But thanks to the Marrow Donor Program was estab- of such Act were in effect with respect to patient advocacy on the day before the date of the en- great work of the men and women in lished to help facilitate bone marrow actment of this Act. this program, over 3 million Americans matches between patients and donors SEC. 7. EFFECTIVE DATE. have volunteered to be listed confiden- and maintain a registry of individuals This Act takes effect October 1, 1998, or upon tially in a registry of the national mar- willing to donate marrow. I am pleased the date of the enactment of this Act, whichever row donor program. that since its inception 12 years ago occurs later. Through innovative cooperation with NMDP has facilitated over 6,500 mar- The SPEAKER pro tempore. Pursu- programs in other countries, including row transplants between unrelated pa- ant to the rule, the gentleman from Germany, France, Israel, South Africa, tients and donors around the world. Florida (Mr. BILIRAKIS) and the gen- Greece, among others, patients can Further, the annual number of trans- tleman from Ohio (Mr. BROWN) each search for their tissue type through a plants has increased by 53 percent be- will control 20 minutes. worldwide network of 37 registries in 29 tween 1994 and 1997, since NMDP was The Chair recognizes the gentleman countries. Through this network the transferred to Health Resources Serv- from Florida (Mr. BILIRAKIS). National Marrow Donor Program has ices Administration. GENERAL LEAVE direct access to over 4 million volun- I am pleased the legislation we are Mr. BILIRAKIS. Mr. Speaker, I ask teer donors worldwide. considering today builds upon this suc- unanimous consent that all Members The language in the bill under con- cess by fully funding current and new sideration today is identical to an may have 5 legislative days within innovative educational campaigns to amendment approved by voice vote in which to revise and extend their re- increase the number of willing donors the Subcommittee on Health and Envi- marks on H.R. 2202 and to insert extra- which will obviously, in turn, increase ronment which I chair. My substitute neous material on the bill. the number of successful amendment represented a consensus The SPEAKER pro tempore. Is there transplantations. Working with pa- position developed through long nego- objection to the request of the gen- tiations between the majority and mi- tients and physicians, NMDP and its tleman from Florida? nority of the Committee on Commerce partners can improve outreach and in- There was no objection. and the Committee on Labor and crease awareness of the importance of (Mr. BILIRAKIS asked and was given Human Resources in the other body, marrow donation. This work is espe- permission to revise and extend his re- the Department of Health and Human cially important if we are going to con- marks.) Resources, the Food and Drug Adminis- tinue to increase the number of minori- Mr. BILIRAKIS. Mr. Speaker, I yield tration, the National Institutes of ties, such as African Americans and myself such time as I may consume. Health, the National Bone Marrow Latinos, who are successfully matched Mr. Speaker, I am delighted this Donor Program itself, and many asso- with willing donors. afternoon, truly delighted, to ask my ciations and interested parties who Mr. Speaker, we can all take pride in colleagues in the House to support H.R. want to see this authorization pass this the accomplishments of this lifesaving 2202, the National Bone Marrow Reg- year. program. I am hopeful we can work to- istry Reauthorization Act of 1998. I Mr. Speaker, I want to again express gether to ensure that more sick pa- would acknowledge the hard work of my great appreciation on behalf of all tients have access to these lifesaving Mr. Marc Wheat of the Majority staff, of us, and on behalf of the many people therapies by passing this legislation Mr. John Ford of the Minority staff, out there who have benefited from this today. and other staffers from Mr. YOUNG’S of- program and who will continue to ben- Mr. Speaker, I reserve the balance of fice and staffers in the Senate in the efit, and to the gentleman from Florida my time. process of working out this legislation. (Mr. YOUNG) for his efforts to secure Mr. BILIRAKIS. Mr. Speaker, I glad- I know that many of my colleagues this reauthorization. ly yield such time as he may consume in the House have heard from individ- Mr. Speaker, I urge all of my col- to the gentleman from Florida (Mr. uals whose lives were saved by this pro- leagues to join me in expressing their BILL YOUNG), my friend, neighbor, and gram, but many Members may not strong support for passage of this im- colleague. know that this legislation has been portant legislation. (Mr. YOUNG of Florida asked and championed by a man whose own Mr. Speaker, I reserve the balance of was given permission to revise and ex- daughter was saved by the program. my time. tend his remarks.) Coincidentally, if that is a proper word, Mr. BROWN of Ohio. Mr. Speaker, I Mr. YOUNG of Florida. Mr. Speaker, he decided to go forward with this pro- yield myself such time as I may con- I thank the gentleman for yielding me gram quite a few years ago, and it was sume. the time. H3428 CONGRESSIONAL RECORD — HOUSE May 19, 1998 Mr. Speaker, I would have to say this tional Bone Marrow Registry, not only the consideration of this legislation, is an exciting moment. This legisla- through legislation but through coordi- and my subcommittee chairman, the tion, we have worked long and hard to nated outreach efforts throughout this gentleman from Florida (Mr. BILI- get it in a condition that everybody country. RAKIS) and his ranking member, the could support. The basic idea here is I would like to thank the gentleman gentleman from Ohio (Mr. BROWN), for that it extends the authorization for from Florida for working so closely the smooth passage through the com- the National Marrow Donor Program, with me to make sure that when we re- mittee process. which, as my distinguished friends the authorize this program, we do every- Mr. Speaker, this program is a vital gentleman from Florida (Mr. BILI- thing possible to increase the number one. This holds out promise for nearly RAKIS) and the gentleman from Ohio of minorities and people of mixed an- the approximately 12,000 people each (Mr. BROWN) have said, is a lifesaver. cestry. year who are diagnosed with diseases It is actually a miracle. This process Every year, Mr. Speaker, more than for which bone marrow transplantation allows people who really had no chance 30,000 people are diagnosed with one of may offer the possibility of a cure. for life, there was no outlook, they the 60 diseases that can be cured with The National Bone Marrow Donor were not going to survive, but when the a bone marrow transplant. Of those, Registry established by this program opportunity to have a bone marrow only 30 percent will have a family provides for a central registry of bone transplant came about and we were member who is a marrow match. That marrow donors, linking a network of able to find enough donors to create a means 20,000 people each year need to 100 donor centers, 111 transplant cen- registry, peoples’ lives have been saved. find an unrelated marrow donor. ters, and 11 recruitment groups across People have had a second chance for There are almost 2 million registered the country. life where none existed before. donors in this country, an increase of The registry is also a research orga- Mr. Speaker, I want to thank the more than 260 percent since the begin- nization, studying the effectiveness of gentleman from Florida (Mr. BILI- ning of 1993. But of these impressive unrelated marrow transplants. This RAKIS) and the gentleman from Ohio numbers of transplants, Mr. Speaker, program has been effective in increas- ing the availability of unrelated bone (Mr. BROWN) as the ranking minority minorities continue to receive far member, and every Member of this fewer transplants. marrow transplants, which have grown Congress. This program, from when we In fact, in 1997, only 65 African Amer- in number from 200 in 1989 to almost began in 1985, we began to try to create icans received transplants, 105 Hispanic 1,300 in 1997 last year. In my State of Michigan our donor this program, and we hit a lot of doors Americans received transplants, and centers have, as of March of this year, that were not open to us. We were told approximately 37 people of mixed an- registered over 92,000 donors and facili- by people high up in the realm of medi- cestry received transplants. During tated some 291 transplants. However, cal research that this would never that same year, however, 1,021 cauca- estimates suggest that those who could work. In fact, one of our committees sians received transplants; so we can benefit from bone marrow transplants see, Mr. Speaker, the critical need for was told in testimony, well, you will be far outnumber the actual recipients by lucky if you could ever get 50,000 peo- this. a 2- or 3-to-1 margin. All of us have in- Again, let me thank the gentleman ple willing to be a bone marrow donor. dividuals in our districts hoping des- Mr. Speaker, as we speak today, from Florida (Mr. YOUNG) for his lead- perately that they will be successfully there are more than 3 million Ameri- ership on this issue. I urge all of my matched with a volunteer donor. For cans who are in that registry with colleagues to join me in voting yes for too many, that hope will not be real- their marrow typed and ready to be a H.R. 2202. The day has finally come to ized. donor. In addition, as the gentleman close the gap on this critical minority Mr. Speaker, this is particularly true from Florida (Mr. BILIRAKIS) has point- health care disparity. for minority individuals, who are ed out, we have agreements with many Mr. YOUNG of Florida. Mr. Speaker, underrepresented in the donor registry. other nations, and we are exchanging will the gentlewoman yield? This legislation that we are consider- patients and exchanging bone marrow Ms. MILLENDER-MCDONALD. I ing this afternoon strengthens the pro- across the ocean itself, saving lives yield to the gentleman from Florida. gram’s focus on minority recruitment. around the world. Mr. YOUNG of Florida. I just wanted I encourage all of us here to register I want to thank the many people in to express to the Speaker and the as a volunteer donor. I did, because of the Congress who have made it possible Members, Mr. Speaker, my apprecia- my relationship with the gentleman to keep this program going. I want to tion for the really hard work that the from Florida (Mr. YOUNG). The process thank the many people in the medical gentlewoman has done in this effort. is very simple. You have to go to a community who have been heroes in We introduced the bill almost a year donor center and give a blood sample. this effort. I want to thank the mil- ago, as the gentlewoman is well aware, That is all it is. You can literally give lions of donors who have been willing and because of the bureaucracy in- the gift of life to another individual to give another person a second chance volved, it has taken a while, but the through this simple act. for life. This Nation of ours is full of gentlewoman has stayed right there on Mr. DELAHUNT. Mr. Speaker, I rise in heroes, and the list is lengthy. I wish track and helped keep it moving. I strong support of H.R. 2202, the National we had time to mention all of them by mentioned many of the heroes, and the Bone Marrow Registry Reauthorization Act of name, but obviously we do not. gentlewoman is one of the heroes at 1998. Mr. BROWN of Ohio. Mr. Speaker, I the top of the list. For over a decade, the National Bone Mar- yield 4 minutes to my friend, the gen- Ms. MILLENDER-MCDONALD. Mr. row Program has brought hope to the over tlewoman from California (Ms. Speaker, I thank the gentlemen from 30,000 patients diagnosed each year with leu- MILLENDER-MCDONALD), who has shown Florida, Mr. YOUNG and Mr. BILIRAKIS, kemia and more than 60 otherwise fatal blood great leadership in coming to our com- for their leadership. disorders. From modest beginnings, the pro- mittee and on the floor on this issue. Mr. BILIRAKIS. Mr. Speaker, I yield gram now maintains a registry of millions of Ms. MILLENDER-MCDONALD. Mr. such time as he may consume to the potential donors. Speaker, I thank the gentleman for gentleman from Michigan (Mr. UPTON). H.R. 2202 will expand and improve the Na- yielding me the time, and for his com- (Mr. UPTON asked and was given tional Bone Marrow Registry, establishing new ments. permission to revise and extend his re- services to help patients locate donors, redou- Mr. Speaker, I am so proud to be able marks.) bling efforts to recruit donors within under- to stand before the Members today, a Mr. UPTON. Mr. Speaker, I rise this served populations, and encouraging contin- day when the House will finally vote on afternoon in strong support of H.R. ued advances in the science of marrow trans- one of the most important pieces of 2202, the National Bone Marrow Reg- plantation. legislation affecting the health of mi- istry Reauthorization Act of 1998. For me, this bill has very personal meaning. norities and their families. For more I want to also commend my good It calls to mind a very special young woman than a year now I have been working to friend and colleague, the gentleman and her family in Duxbury, Massachusetts, increase the number of minorities and from Florida (Mr. YOUNG) for introduc- whom I have had the honor of knowing since people of mixed ancestry on the Na- ing and working hard and diligently for I learned of their story in the local press. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3429 The young woman is Brittany Lambert, who Senate amendment to House amendment The SPEAKER pro tempore. Pursu- suffers from a rare blood disorder called to Senate amendment: ant to the rule, the gentleman from myelodysplasia, for which she received a bone In lieu of the matter proposed to be in- Colorado (Mr. DAN SCHAEFER) and the serted by the House amendment, insert: marrow transplant from an unrelated donor gentleman from Texas (Mr. Hall) each SECTION 1. ENERGY POLICY AND CONSERVATION found through the registry. When Brittany's will control 20 minutes. ACT AMENDMENTS. The Chair recognizes the gentleman first transplant failed, she needed a second The Energy Policy and Conservation Act is one. Through it all, she has shown qualities of amended— from Colorado (Mr. DAN SCHAEFER). courage and tenacity that would make any (1) in section 166 (42 U.S.C. 6246) by striking GENERAL LEAVE parent proud. ‘‘1997’’ and inserting in lieu thereof ‘‘1999’’; Mr. DAN SCHAEFER of Colorado. Brittany has been lucky in at least one re- (2) in section 181 (42 U.S.C. 6251) by striking Mr. Speaker, I ask unanimous consent spect: her parents, Jim and Linda Haehnel, ‘‘1997’’ both places it appears and inserting in that all Members may have 5 legisla- lieu thereof ‘‘1999’’; and her sister, Brianne, have been with her tive days within which to revise and (3) by striking ‘‘section 252(l)(1)’’ in section extend their remarks and include ex- every step of the way. In fact, when I met Jim 251(e)(1) (42 U.S.C. 6271(e)(1)) and inserting Haehnel back in February of 1997, he was or- ‘‘section 252(k)(1)’’; traneous material on the bill, H.R. ganizing a screening drive for Brittany at an (4) in section 252 (42 U.S.C. 6272)— 2472, as amended. Air National Guard base in my district. I was (A) in subsections (a)(1) and (b), by striking The SPEAKER pro tempore. Is there among the 300 people who registered as po- ‘‘allocation and information provisions of objection to the request of the gen- tential donors on that occasion, and I prom- the international energy program’’ and in- tleman from Colorado? serting ‘‘international emergency response There was no objection. ised Jim that I would do everything I could to provisions’’; b see that more people have the opportunity to (B) in subsection (d)(3), by striking 1600 join in this effort. ‘‘known’’ and inserting after ‘‘cir- Mr. DAN SCHAEFER of Colorado. The Haehnel family has shown tremendous cumstances’’ ‘‘known at the time of ap- Mr. Speaker, I yield myself such time fortitude in the face of repeated setbacks. proval’’; as I may consume. They have continued to do everything they (C) in subsection (e)(2) by striking ‘‘shall’’ Mr. Speaker, this bill reauthorizes can to see that kids like Brittany get a second and inserting ‘‘may’’; provisions of the Energy Policy and chance at life. (D) in subsection (f)(2) by inserting ‘‘vol- Conservation Act relating to the Stra- untary agreement or’’ after ‘‘approved’’; It is because of the heroism and selfless- (E) by amending subsection (h) to read as tegic Petroleum Reserve and U.S. par- ness of people like Brittany and her family that follows: ticipation in the International Energy this program exists. And it is because of them ‘‘(h) Section 708 of the Defense Production Agreement through fiscal year 1999. that I feel so strongly about this effort. I am Act of 1950 shall not apply to any agreement These provisions, which expired on proud to join with my colleague, Mr. YOUNG, in or action undertaken for the purpose of de- September 30, assure that if there is cosponsoring this legislation, and I hope that veloping or carrying out— any emergency dealing with energy at all of my colleagues will give it their support. ‘‘(1) the international energy program, or all, the President’s authority to draw ‘‘(2) any allocation, price control, or simi- Mr. PORTER. Mr. Speaker, I rise to com- down the Strategic Petroleum Reserve lar program with respect to petroleum prod- is preserved and the ability of U.S. oil mend my good friend, BILL YOUNG, for his tire- ucts under this Act.’’; less efforts to promote and strengthen the Na- (F) in subsection (k) by amending para- companies to participate in the Inter- tional Bone Marrow Donor Registry. There is graph (2) to read as follows: national Energy Agreement without no stronger advocate in the Congress for this ‘‘(2) The term ‘international emergency re- violating the antitrust laws is ex- vital public policy initiative than BILL. His work sponse provisions’ means— panded and extended. has provided a second chance at life for thou- ‘‘(A) the provisions of the international en- Because of their importance to U.S. ergy program which relate to international national energy security, I believe sands of individuals who suffer from debilitat- allocation of petroleum products and to the ing illness and fatal blood disease. Because of these programs should be reauthorized. information system provided in the program, And with the decision by the President BILL's outstanding leadership, the registry has and and the appropriators to stop the budg- grown tremendously. I am proud to cosponsor ‘‘(B) the emergency response measures etary sales of oil from the Strategic this vital legislation and I will continue to sup- adopted by the Governing Board of the Inter- Petroleum Reserve, I believe it is now port BILL's important efforts. national Energy Agency (including the July Mr. BROWN of Ohio. Mr. Speaker, I 11, 1984, decision by the Governing Board on appropriate to pass a long-term exten- sion. I certainly do appreciate that fact have no further requests for time, and ‘Stocks and Supply Disruptions’) for— because that has been a long-standing I yield back the balance of my time. ‘‘(i) the coordinated drawdown of stocks of petroleum products held or controlled by problem that we have had selling off Mr. BILIRAKIS. Mr. Speaker, I have governments; and our oil. no further requests for time, and I ‘‘(ii) complementary actions taken by gov- In recent years, with respect to the yield back the balance of my time. ernments during an existing or impending Strategic Petroleum Reserve, this body The SPEAKER pro tempore (Mr. international oil supply disruption.’’; and has been penny wise and pound foolish. (G) by amending subsection (l) to read as SHIMKUS). The question is on the mo- For the past 3 years, we have allowed tion offered by the gentleman from follows: ‘‘(l) The antitrust defense under subsection our energy security, for which we paid Florida (Mr. BILIRAKIS) that the House for so dearly, to be sold at less than suspend the rules and pass the bill, (f) shall not extend to the international allo- cation of petroleum products unless alloca- half of what it cost us. If the most re- H.R. 2202, as amended. tion is required by chapters III and IV of the cent sale had gone through with to- The question was taken; and (two- international energy program during an day’s oil prices being so low, the tax- thirds having voted in favor thereof) international energy supply emergency.’’; payers would have lost at least $175 the rules were suspended and the bill, and million, but they would also have lost as amended, was passed. (5) in section 281 (42 U.S.C. 6285) by striking something even more important, the A motion to reconsider was laid on ‘‘1997’’ both places it appears and inserting in energy security in this country. the table. lieu thereof ‘‘1999’’. (6) at the end of section 154 by adding the In the past decade of low oil prices f following new subsection: and steady supply, we have become in- EXTENDING CERTAIN PROGRAMS ‘‘(f)(1) The drawdown and distribution of creasingly dependent on foreign oil. We now rely on oil imports to meet more UNDER THE ENERGY POLICY petroleum products from the Strategic Pe- than half of our daily petroleum needs. AND CONSERVATION ACT troleum Reserve is authorized only under section 161 of this Act, and drawdown and Moreover, we have become complacent Mr. DAN SCHAEFER of Colorado. distribution of petroleum products for pur- about how vulnerable that dependence Mr. Speaker, I move to suspend the poses other than those described in section makes the United States. rules and concur in the Senate amend- 161 of this Act shall be prohibited. When oil prices fell to record lows re- ment to the House amendment to the ‘‘(2) In the Secretary’s annual budget sub- cently, OPEC and non-OPEC producing Senate amendment to the bill (H.R. mission, the Secretary shall request funds for acquisition, transportation, and injection countries began to restrict production 2472) to extend certain programs under of petroleum products for storage in the Re- in order to boost the prices. While we the Energy Policy and Conservation serve. If no requests for funds is made, the are still a long way from the oil embar- Act. Secretary shall provide a written expla- go of the 1970s, our vulnerability re- The Clerk read as follows: nation of the reason therefore.’’. mains, and we must guard carefully the H3430 CONGRESSIONAL RECORD — HOUSE May 19, 1998 energy security we have built up with the rules were suspended and the Sen- deserves debate on its own, but if it is the Strategic Petroleum Reserve. ate amendment to the House amend- coupled with a tax break for ethanol, it Mr. Speaker, the provisions con- ment to the Senate amendment was suddenly is not worth Congress’ atten- tained in H.R. 2472 will help the United concurred in. tion. States preserve its energy security. It A motion to reconsider was laid on The Dreier language says that we is a good bill, and I endorse its adop- the table. have to know how the revenue was tion wholeheartedly. f spent before we know whether a tax or Finally, there are several conserva- a tariff is a burden. Consider what that tion-related programs contained in MANDATES INFORMATION ACT OF means to excise taxes like taxes on gas EPCA which were discussed at the sub- 1998 and tobacco, where many people be- committee hearing that are not in- The SPEAKER pro tempore (Mr. lieve that the revenue generated should cluded in this bill that we are consider- KNOLLENBERG). Pursuant to House Res- be dedicated only to certain spending ing today, but we do have a bill coming olution 426 and rule XXIII, the Chair programs. If a measure increases gas up that would extend these programs declares the House in the Committee of taxes and requires that the money be as well. I intend to work with the in- the Whole House on the State of the spent on highway repair only, the terested parties to mark up that bill Union for the further consideration of measure would be subject to an un- and reauthorize those programs in the the bill, H.R. 3534. funded mandate point of order. near future. b 1606 However, Mr. Chairman, if the same Mr. Speaker, before I reserve the bal- gas tax increase is completely offset by ance of my time, I would like to thank IN THE COMMITTEE OF THE WHOLE a provision to allow billionaires to my good friend, the gentleman from Accordingly the House resolved itself avoid some kind of Federal tax liabil- Texas (Mr. HALL), for his continual into the Committee of the Whole House ity, then the point of order just would support on this issue. I know that com- on the State of the Union for the fur- not apply. ing from the State of Texas it is very ther consideration of the bill (H.R. Consider also a tobacco bill, which important to him. 3534) to improve congressional delib- we may be considering some day, that Mr. Speaker, I reserve the balance of eration on proposed Federal private raises cigarette taxes and spends that my time. sector mandates, and for other pur- money to prevent teenage smoking or Mr. HALL of Texas. Mr. Speaker, I poses, with Mr. SHIMKUS (Chairman pro on health care costs and health care re- yield myself such time as I may con- tempore) in the chair. search or on aid to the tobacco farmer, sume. The Clerk read the title of the bill. that bill will be subject to a point of I will be brief because, as usual, the The CHAIRMAN pro tempore. When order. But, Mr. Chairman, under the gentleman from Colorado (Mr. DAN the Committee of the Whole rose on Dreier language, if that tobacco reve- SCHAEFER) has done a good job of lay- Wednesday, May 13, 1998, the amend- nue is given away in tax cuts rather ing out the reasons for supporting H.R. ment offered by the gentleman from than these programs I just enumerated, 2472. It simply reauthorizes the key Virginia (Mr. DAVIS) had been disposed then the point of order just does not sections of the Energy Policy and Con- of, and the bill was open for amend- apply. servation Act. The underlying House ment at any point. I believe this approach is uneven. I bill was handled in a bipartisan manner Are there further amendments to the believe it is arbitrary. It goes against in the Committee on Commerce and bill? the fundamental purpose of the bill, passed on a voice vote. Mr. MOAKLEY. Mr. Chairman, I which is to make Congress reconsider Actually, the changes that are made move to strike the last word, and I rise whether it wants to impose any private herein are supported by both industry to offer an amendment to H.R. 3534, the sector burdens. and the administration, of course sup- Unfunded Mandates Information Act of Therefore, Mr. Chairman, I urge my ported by the subcommittee and the 1997. colleagues to support my amendment committee. I know of no objection to Mr. Chairman, this amendment that I am about to file and strike this this legislation. would strike from the bill language language to the bill and return it to Last winter’s instability in the Mid- which was added in committee at the the original intent of the sponsors. dle East pretty well underscored how last minute by the gentleman from Mr. DREIER. Mr. Chairman, I move quickly circumstances can change. It California (Mr. DREIER) to exempt tax to strike the last word. I would like to was a volatile situation that served as revenue from the private sector point engage my colleague, if I could, with a a reminder of the need for the United of order. The Dreier language ignores question. Is there an amendment that States to be energy independent. the spirit of this bill, which is to force we are considering here? This will ensure that the United Congress to think twice before we im- Mr. MOAKLEY. Mr. Chairman, will States and the industry will be able to pose any burden on private companies. the gentleman yield? fulfill their duties in any oil-related Mr. DREIER. Mr. Chairman, will the Mr. DREIER. I yield to the gen- emergency. For that reason I thank gentleman yield? tleman from Massachusetts. the gentleman from Virginia (Mr. BLI- Mr. MOAKLEY. I yield to the gen- Mr. MOAKLEY. Mr. Chairman, there LEY) and the gentleman from Colorado tleman from California. is an amendment at the desk. (Mr. DAN SCHAEFER) for bringing this Mr. DREIER. Mr. Chairman, I would Mr. DREIER. I do not have anything important bill to the House floor. It is like to inquire, is the amendment to say, Mr. Chairman, until I know important to our country’s economic pending? what it is. and energy security, and I am pleased Mr. MOAKLEY. Mr. Chairman, I in- Mr. MOAKLEY. Mr. Chairman, if the to support this legislation. tend to offer the amendment. I have amendment is there, maybe the Clerk Mr. Speaker, I yield back the balance not offered the amendment. could read the amendment. of my time. Mr. DREIER. I thank the gentleman. Mr. DREIER. Mr. Chairman, I guess Mr. DAN SCHAEFER of Colorado. Mr. MOAKLEY. I thank the gen- the gentleman will be recognized then Mr. Speaker, I yield back the balance tleman for noticing. in support of his amendment and I of my time. Mr. Chairman, the point of order would like to be heard in opposition to The SPEAKER pro tempore (Mr. triggers a debate and a vote on the it. SHIMKUS). The question is on the mo- question of consideration. It makes AMENDMENT OFFERED BY MR. MOAKLEY tion offered by the gentleman from Congress take notice and make in- Mr. MOAKLEY. Mr. Chairman, I offer Colorado (Mr. DAN SCHAEFER) that the formed decisions about whether or not an amendment. House suspend the rules and concur in to proceed. The Dreier amendment The Clerk read as follows: the Senate amendment to the House changes the whole picture. It says we Amendment offered by Mr. MOAKLEY: amendment to the Senate amendment should ignore real costs to private On page 5, line 13, strike ‘‘(3)’’ and all that to the bill, H.R. 2472. companies and individuals as long as follows through line 5, page 6. The question was taken; and (two- that revenue generated is fully spent in Mr. MOAKLEY. Mr. Chairman, I thirds having voted in favor thereof) tax or tariff reductions. A tax on coal know I just gave a vivid explanation of May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3431 the amendment. I do not want to sub- would establish a point of order on the use of There was no objection. ject the House to it again. I know that user fees and revenues. Mr. MOAKLEY. Mr. Chairman, I paid the gentleman from California (Mr. Mr. Chairman, someone did not read very close attention to my dear DREIER) has good enough memory to the amendment that was adopted in friend’s explanation, but the provision remember what I said so we can ad- the Committee on Rules that I offered of the Dreier amendment really dis- dress my amendment now. because the point of order was always torts the underlying purpose of the un- b 1615 in the bill. The amendment that I au- funded mandate bill. It used to focus on thored in the Committee on Rules whether or not there was a mandate. Mr. DREIER. Mr. Speaker, I rise in makes an exception to that point of Now, under the Dreier amendment, it opposition to the amendment, not sur- order. focuses on whether it is a tax bill and prisingly, and I have a prepared state- The statement for the administration how the funds from the tax bill would ment which I know the gentleman from further goes on, and I quote, be handled. If Members choose to give Massachusetts (Mr. MOAKLEY) will un- This amendment could delay or undermine a tax break to someone else, the issue derstand very clearly. funding for a number of well-established and of a mandate on a private business does Mr. Chairman, I oppose the Moakley important programs and laws that have tra- not get debated in the House. amendment because it seeks to perpet- ditionally received bipartisan support, in- The purpose of the unfunded mandate uate a set of budget rules that have, for cluding airline, air traffic and ground safety; bill is very simple. It calls upon Con- the past decade, dramatically shifted the Superfund program; the Senate passed gress to look and see how it affects Federal policy in the direction of more version of the Internal Revenue Service re- that private business. And, therefore, if Washington spending programs at the form bill; and legislation under consider- we raise a tax on that business and we expense of tax relief for working fami- ation that provides relief to tobacco farmers lies. and additional resources for public health do not use it to help those types of At a time when the Federal Govern- and health research. businesses, but give it back in tax re- ment is raising $500 billion more in rev- Once again, Mr. Chairman, the per- lief, then it is not an unfunded man- enue than was projected in the Bal- son who wrote that statement obvi- date but it still hurts that private per- anced Budget Act, it is unconscionable ously did not read the bill or my son who we are trying to protect. This our colleagues in the minority would amendment. All H.R. 3534 says is that is not a tax bill, it is an unfunded man- attempt to further rig the rule so that if a point of order is made, it is subject date bill. those revenues which belong to hard- to 20 minutes of debate, after which the Now, for instance, if an aviation tax working families can be used to tax Members must vote on whether to pro- increase faces a point of order, if and spend our way out of a balanced ceed with consideration of the legisla- money is spent to improve airports, so budget. tion. All we are doing is encouraging a the aviation tax goes to build up the H.R. 3534 provides that if a measure deliberative process. airports, put new towers in there, then contains private sector mandates ex- This mechanism was crafted to en- a point of order can lie. But if this ceeding $100 million, consideration of sure that the House would have addi- money from that aviation tax goes to the measure may be subject to a point tional information and debate time on the fat cats, no point of order. of order. An exception is made for leg- certain Federal mandates, but that leg- Gasoline tax. If the gasoline tax is islation containing tax or tariff provi- islation containing such mandates used to build roads, to improve safety sions which cause the $100 million could continue to be considered by the factors; point of order lies. But if we threshold to be exceeded but result in House if a majority so desires. The take that tax money and give it for an overall net reduction of tax or tariff Dreier amendment, adopted by the some other purpose, no point of order. revenue over a 5-year period, provided Committee on Rules, does nothing to Tobacco tax. If that money is used to that the bill does not include other change this process. educate children to stop smoking, if nonrevenue-related Federal private In other words, if Congress takes up that money is used to show people sector mandates that exceed that $100 legislation to raise tobacco taxes and through all kinds of means how bad to- million threshold. If a bill contains tax uses that revenue to fund President bacco is for them, point of order. But if or tariff provisions which result in a Clinton’s great budget blow-out propos- we give that money back as a tax re- net increase in revenues, or it contains als that he unveiled here in his State of bate to the big fat cats, no point of nonrevenue related mandates, a point the Union message, that legislation order. of order may still apply. could be subject to a question of con- Mr. Chairman, the Dreier amendment This language is necessary, Mr. sideration. The Committee on Rules distorts the basis of this unfunded Chairman, because in the universe of amendment did nothing to change that mandate bill. private sector mandates, our budget outcome. If, however, revenues from a Mr. DREIER. Mr. Chairman, will the rules discriminate against tax cuts by tobacco tax increase are returned to gentleman yield? requiring that they be paid for by in- working families in the form of tax re- Mr. MOAKLEY. I yield to the gen- creases in other tax revenues or reduc- lief, then the Committee on Rules tleman from California. tions in mandatory spending. In other amendment provides an exclusion from Mr. DREIER. I thank my friend for words, our budget rules require us to the point of order. yielding, and I think the gentleman impose mandates on the private sector Mr. Chairman, the Moakley amend- has really explained this very well once as a condition of providing tax relief to ment seeks to strike this taxpayer pro- again. He is in favor of spending for a the American people. tection and allows legislation provid- wide range of very well intentioned In addition, given the dynamic ef- ing a net tax reduction to be subject to proposals, and I think a lot of these fects of tax rate changes, I find it hard a point of order if it contains loophole issues need to be addressed; whereas to believe that anyone would suggest closers or tax rate cuts that actually we, with my amendment, are focusing that tax rate reductions that may ac- raise revenue. This will further bias on this whole question of reducing the tually raise revenue, such as the cap- our procedures against tax cuts and se- tax burden on working families. ital gains tax cut, we all know it has riously undermine our efforts to sim- But, let me just say that I am a little been a revenue raiser, should be treat- plify the Tax Code and provide badly confused at exactly what we have be- ed as private sector mandates and sub- needed tax relief to working families. fore us right now, because apparently, ject to a point of order. Mr. Chairman, For this reason and all of these rea- and the gentleman can correct me if I I find it ludicrous, but that is exactly sons, Mr. Chairman, I am going to op- am wrong, but the amendment that has what would happen if the Moakley pose the amendment. just been put forward goes much fur- amendment were to prevail. Mr. MOAKLEY. Mr. Chairman, I ask ther than simply deleting the so-called Mr. Chairman, I also want to respond unanimous consent to strike the last Dreier language. It appears to me it to some inaccuracies in the adminis- word. guts the entire bill. tration’s policy statement on this bill. The CHAIRMAN pro tempore (Mr. Now, my friend told me that he is no It states, and I quote, SHIMKUS). Without objection, the gen- longer supportive of the bill as he The administration is especially concerned tleman from Massachusetts (Mr. MOAK- might have been in the past when we about the amendment added to the bill that LEY) is recognized for 5 minutes. were talking earlier, but the way this H3432 CONGRESSIONAL RECORD — HOUSE May 19, 1998 amendment has been crafted, I have pend. The time is controlled by the And I will tell my colleagues, I hear just been informed that it basically gentleman from Massachusetts (Mr. often from the people whom I am privi- strikes out all points of order that can MOAKLEY). leged to represent in California that be raised against private sector man- Mr. MOAKLEY. Which the gentleman they want us to certainly pare back, dates. Is that the gentleman’s inten- kindly gave to me, Mr. Chairman. overhaul or possibly even eliminate the tion? As I said, this is not rewarding any- Internal Revenue Service. The gen- Mr. MOAKLEY. Mr. Chairman, that body, but if a private business has a tleman from Texas (Mr. ARCHER) has a is not my intention, no. tax put on it, it is very unfair to use proposal, we have flat rate tax propos- Mr. DREIER. So the gentleman’s in- that tax money to give it back in re- als, but it appears to me that if we tention is to simply to delete the bates to people in other businesses. If were to proceed with the Moakley lan- Dreier amendment? it is tax because of a certain reason, it guage deleting the amendment I of- Mr. MOAKLEY. That is all. should be used in the furtherance of fered in the Committee on Rules, we Mr. DREIER. I think, Mr. Chairman, that business. could not even consider a complete I would just like to inquire, then, of This is an unfunded mandate. We overhaul of the Tax Code, which the the Chair, if it does go beyond simply should not persecute people by taking American people desperately want. deleting the Dreier amendment. their tax money and putting it in other And so, as my friend from California The CHAIRMAN pro tempore. The places. That is all I am trying to say. (Mr. WAXMAN) has just indicated, we Chair cannot interpret the meaning of Mr. WAXMAN. Mr. Chairman, will have a situation here that, yes, there an amendment. the gentleman yield? could be some kind of modification, Mr. MOAKLEY. Reclaiming my time, Mr. MOAKLEY. I yield to the gen- but I think it is very troubling this Mr. Chairman, the gentleman just tleman from California. would tie the hands of a Congress that made my point for me. If we raise to- Mr. WAXMAN. I want to see if I un- really wants to do these kinds of bacco taxes to advertise to stop kids derstand the amendment, Mr. Chair- things. from smoking, a point of order would man. Mr. MOAKLEY. Mr. Chairman, re- lie. But if we give tax rebates back, a The underlying bill requires that the claiming my time, the gentleman has point of order would not lie. This is not House pay special attention if there is misstated the case. This does not stop a tax bill; this is an unfunded mandate a mandate on private enterprise. any kind of tax refund from going over, bill. Mr. MOAKLEY. The gentleman is but the gentleman, in effect, has ad- But the gentleman from California correct. mitted he is making a tax bill out of (Mr. DREIER) makes it a tax bill. And Mr. WAXMAN. Now, that mandate this unfunded mandate bill, is what he this is a great loophole that we can re- can be a new regulatory requirement or is doing. ward our big fat cats with tax breaks it can be a tax. That is a mandate that Mr. WAXMAN. Mr. Chairman, will at the expense of those youngsters that they have to pay. the gentleman yield? do not get the proper education to stop Mr. MOAKLEY. The gentleman is Mr. MOAKLEY. I yield to the gen- smoking. correct. tleman from California. The CHAIRMAN pro tempore. The Mr. WAXMAN. As I understand the Mr. WAXMAN. I am perplexed by my time of the gentleman from Massachu- Dreier amendment, he would say it is friend from California’s statement as setts (Mr. MOAKLEY) has expired. all right to put a tax on a business if well. As I understand the underlying (On request of Mr. DREIER, and by we give a tax break to another busi- bill, it does not stop the Congress from unanimous consent, Mr. MOAKLEY was ness. doing anything. It just simply says, allowed to proceed for 2 additional Mr. MOAKLEY. The gentleman is ex- wait a minute, we want to take a look minutes.) actly correct. at this. Mr. DREIER. Mr. Chairman, will the Mr. WAXMAN. It is still a mandate And if we are going to put a burden gentleman yield? on the company that has the tax bur- on private enterprise, we want to have Mr. MOAKLEY. I yield to the gen- den. On the other hand, as I understand a special focus on that and make peo- tleman from California. the Dreier amendment, if we put a tax ple have to debate it and vote on it. If Mr. DREIER. I think, once again, we burden on one enterprise in order to we are going to put a tax increase on are making each other’s arguments. spend the money on some worthwhile some business, that seems to me a suf- My friend is for tax and spend, we are purpose, as the Congress sees fit, then ficient burden that we are putting on for cutting the tax burden on working that would be an unfunded mandate them that we ought to stop and be sure families. So we have clarified that. and require the operation of the under- that that is what we want to do. But let me just ask this question lying bill. As I understand the Dreier amend- once again. Does the gentleman’s Mr. MOAKLEY. The gentleman is ment, which the Moakley amendment amendment go beyond simply deleting correct. would strike, it would have us ignore the Dreier language that was passed in The CHAIRMAN pro tempore. The what the burden is on a private busi- Committee on Rules? He has just said time of the gentleman from Massachu- ness, a small business, particularly, if that is what his intent is, but I am con- setts (Mr. MOAKLEY) has again expired. there is a tax break for someone else. tinually told by our crack staff assist- (On request of Mr. DREIER, and by MODIFICATION TO AMENDMENT OFFERED BY MR. ants around here that it goes well be- unanimous consent, Mr. MOAKLEY was MOAKLEY yond that. allowed to proceed for 1 additional Mr. MOAKLEY. Mr. Chairman, I ask Mr. MOAKLEY. Mr. Chairman, that minute.) unanimous consent, because of the con- is not my intent. If that is what this Mr. MOAKLEY. Mr. Chairman, I am versation with the gentleman from amendment does, I will pull it back and overwhelmed by the gentleman from California (Mr. DREIER) and I had to just eliminate the Dreier amendment. California’s generosity. make sure I do not go beyond eliminat- That is not my intent. Mr. DREIER. Mr. Chairman, will the ing the Dreier amendment, to modify This is not a tax and spend bill. gentleman yield? my amendment. Mr. DREIER. Could we clarify that Mr. MOAKLEY. I yield to the gen- The CHAIRMAN pro tempore. The before we proceed further with the de- tleman from California. Clerk will report the modification. bate? Mr. DREIER. Mr. Chairman, I think The Clerk read as follows: Mr. MOAKLEY. But this is a bill that my friend from West Los Angeles has Modification to amendment offered by Mr. if we tax the tobacco industry, we actually made a very good point. There MOAKLEY: should put it toward education. are more than a few Members in this Page 5, line 23, strike the italized words Mr. DREIER. This is a big tax and House, including the chairman of the through line 4, page 6. spend bill, and I would just like to Committee on Ways and Means, we The CHAIRMAN pro tempore. Is make sure we have the right amend- have a couple of very distinguished there objection to the modification to ment before us. members of the Ways and Means here the amendment offered by the gen- The CHAIRMAN pro tempore. The who are looking at the idea of over- tleman from Massachusetts? gentleman from California will sus- hauling the Tax Code. There was no objection. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3433 b 1630 ter our economic station in life, no one clear, that the thrust of what this Mr. HAYWORTH. Mr. Chairman, I knows better how to spend for their amendment that I have offered is de- move to strike the requisite number of family and save for their future than signed to do is to decrease that ex- words. they do. traordinary burden on working fami- I appreciate the opportunity to en- That is the essence of this debate. lies. gage in this debate because I would That is why the Moakley amendment I think that while there may be this echo what my colleague, the gentleman must be rejected, to reverse the culture view out there, my friend said he has from California (Mr. DREIER), on this of tax-and-spend and stick up for been a long-time supporter of this side of the aisle has had to say. Despite American families. measure, I would like to share with my deep personal affection for my Mr. MORAN of Virginia. Mr. Chair- him and my colleagues a list of just a friend, the gentleman from Massachu- man, I move to strike the requisite few of those people who have said that setts (Mr. MOAKLEY), the Ranking Mi- number of words. they support the bill as it was reported nority Member of the Committee on Mr. Chairman, I am certainly sorry in the Committee with the Dreier lan- Rules, what my colleague from Califor- that my colleague is challenged and guage. nia points out is quite true. What, in chagrined on this. But as an original That includes the National Gov- essence, the Moakley amendment al- sponsor of the unfunded Mandates Re- ernors Association, the National Con- lows to have happen is for this Cham- form Act and as a strong supporter of ference of State Legislatures, the Na- ber to continue the culture of spending the Mandates Information Act, I sup- tional League of Cities, the National and raise barriers to the American peo- port the Moakley amendment. A vote Association of Counties, the National ple hanging on to more of their hard- for the Moakley amendment is a vote Taxpayers Union, the U.S. Chamber of earned money. to strike language that would erode Commerce, the National Federation of Indeed, as a member of the Commit- the intent of the Mandates Information Independent Business, the American tee on Ways and Means, I am chal- Act. So, in other words, the Moakley Farm Bureau, Citizens for a Sound lenged and chagrined by the fact that amendment is an attempt to maintain Economy, the National Restaurant As- our existing budgetary rules already the integrity of the Mandates Informa- sociation, the National Retail Federa- raise so many hurdles, where if to offer tion Act. tion, Small Business Survival Commit- tax cuts to one segment of the Amer- It was not a part of the original Man- tee, Associated Builders and Contrac- ican population, we must have, in fact, dates Information Act, the language tors, Associated General Contractors, revenue offsets. that the gentleman from Massachu- American Subcontractors Association, What we should be about in this setts (Mr. MOAKLEY) is attempting to National Association of Self-employed, Chamber, my colleagues, when we strip strike. It is not supported by the busi- National Association of Manufacturers, away all the discussion of rules, all the ness community or the bill’s original and on and on and on and on. inside baseball, all the legislative mi- sponsors. It was added at the last So virtually everyone is supportive of nutia with which we deal here, the fact minute by the House leadership, appar- the language as has come out. My is we should make it easier for the ently to serve a political objective. friend, who has been a supporter of the bill, I appreciate it, and he is welcome American people to hang on to what I am opposed to this because it to stand alone in favor of tax increases they earn; and we should reject any waives the right for anyone to chal- lenge a private or a public sector man- over tax cuts. language, no matter its intent, that Mr. MORAN of Virginia. Well, it just date if the bill results in a net tax de- makes it tougher for the American peo- seems to me that we ought to spotlight crease. ple to hold on to their hard-earned it when there is any tax increase. And So, in other words, it allows a bill to money. that is what the gentleman from Mas- The American people are already amass major tax increases as long as sachusetts (Mr. MOAKLEY) is attempt- overregulated and over taxed, and we they can find some other, albeit unre- ing to do, and that is why I support the must do all we can to preserve the no- lated, tax decrease to offset the major Moakley amendment. I thank the gen- tion that they should hold on to more tax increases. That means, despite a tleman for his input, though. of their money and send less of it here number of tax increases and provisions Mr. PORTMAN. Mr. Chairman, I to Washington. Accordingly, my col- that close tax loopholes in the 1997 Tax move to strike the requisite number of leagues, I would ask that we reject the Relief Act, no one would have been able words. Moakley amendment, stand in favor of to raise a point of order on the revenue Mr. Chairman, I want to start by families, stand in favor of families measures because the bill contained a thanking the gentleman from Virginia holding on to more of their hard-earned net tax deduction. (Mr. MORAN) for his unwavering sup- money. This year’s highway bill, however, port for the underlying legislation, I could not help but note the dif- would have been subject to a point of H.R. 3534. I think what the gentleman ference to hear my colleague from Mas- order since there was no net tax de- from California (Mr. DREIER) has done sachusetts refer to those who might re- crease but there was an extension of is an improvement to the bill, and I ceive a tax cut as ‘‘fat cats.’’ I do not the current Federal gasoline excise tax. hope that he will reconsider his opposi- believe that the working family in Do we really want to create two cat- tion to the Dreier addition and then in Payson, Arizona, one of my friends who egories of tax bills, one that is exempt the end support us on final passage owns a print shop there who has a fam- and another that is subject to the pro- once we are able to defeat the Moakley ily of four who now, through our his- visions that we fought hard to include amendment. toric agreement to offer tax relief at a in the Unfunded Mandate Reform Act I think this really comes down to a $400 per child tax credit this year that and the Mandates Information Act? I philosophical debate in some regards as increases to $500 next year, can be think not. I would be surprised if my to tax versus spend. But let me just called a ‘‘fat cat’’ because he and his friend and colleague would not agree make one distinction that has not been wife hold on to $1,600 dollars of their that we should not have two separate made clearly on the debate that I think income to spend on their families as categories of tax increases. is a logical distinction and the reason I they see fit. So I urge my colleagues to support think it is important to accept the So we are witnessing here in this the Moakley amendment and restore Dreier language and not knock it out Chamber, Mr. Chairman, a great cul- the integrity and the intent of the with this Moakley amendment. tural and philosophical divide among Mandate Information Act. Let us be Under the budget rules that we live those who favor the culture of tax-and- evenhanded when we deal with tax under, we essentially discriminate spend and Washington-knows-best and measures. against tax cuts. How do we do that? If those of us who believe that no matter Mr. DREIER. Mr. Chairman, will the we want to reduce taxes under our how well-meaning a Washington bu- gentleman yield? rules that we all live under, we have to reaucrat may be, no matter how well- Mr. MORAN of Virginia. I yield to mandate. In other words, we have to meaning my friend on the other side of the gentleman from California. come up with tax increases somewhere the aisle may be, Mr. Chairman, when Mr. DREIER. Mr. Chairman, I would else. The other choice is to increase en- this comes to our pocketbook, no mat- simply say, as has been made very titlement spending, which I do not H3434 CONGRESSIONAL RECORD — HOUSE May 19, 1998 think anyone on the floor tonight par- net tax decrease, partly for philosophi- lematic when this particular provision ticularly wants to do, or decrease enti- cal reasons and partly because of this is included. So I think that needs to be tlement spending to offset those tax absurdity where we are told if we have seriously considered within the context cuts. tax decreases we have to mandate, so of whether we should pass this particu- So we are in a position now where if then why should the mandate be sub- lar amendment. we want tax relief, let us say the cap- ject to this? So I really do not under- Mr. WAXMAN. Mr. Chairman, would ital gains differential that we put into stand how it relates at all to the to- the gentleman yield? place last year, we have got to go into bacco legislation. Mr. PORTMAN. I am happy to yield the Tax Code and we have got to find If anything, I would hope that my to the gentleman from California. loophole closures in that Tax Code that colleague would stand up and support Mr. WAXMAN. Mr. Chairman, I was are essentially revenue raisers, which the gentleman from California (Mr. trying to understand the point that are, under the terms of this legislation, DREIER) because he might help him you were making. You said that the as was said earlier, new mandates. In here. He is carving out at least some budget rules require that there be a tax other words, tax increases are new area where we would not subject it to increase in order for there to be a tax mandates. this information requirement. decrease. The budget rules also require that So it would be, it seems to me, illogi- I would also say, to make the point there be some kind of spending if there cal to say every time we want to give that was made earlier by the gen- were going to be an increase in the any kind of tax relief we have to man- tleman from California (Mr. WAXMAN), amount for entitlements like Social date, as rule number one; and then on if the majority of this House deter- Security or Medicare. the other hand step in and say, and if mines that they would like to spend we mandate, we are then subject to So what I do not understand is why, that money, fine. This is an informa- when we put a tax burden on a small this mandate exercise. tional process; and if in the end, after So I think this is important, and I business in order to raise money, that a 20-minute debate, 10 minutes on each think it makes sense. I would also say is not considered unfunded mandate in side, regarding this new private sector that we are hearing some scenarios, order to get some attention here in the mandate or this new tax increase, this maybe on both sides but I want to House if the money taken from that House determines that it is in the in- focus on ones on the other side, that small business is used to give, maybe, a terest of the country to move forward just are not true. The point has been big business a tax break, but it is con- with the legislation, we would simply made the other night and again today sidered unfunded mandate if you ask vote by a majority vote, as we did with that this would somehow not enable us that businessman to pay more taxes regard to minimum wage last year, to to move forward with the tobacco and we use it to help Social Security or agreement. How does this change that? move forward with the legislation. Medicare. Under the legislation without the So I do not understand quite what I do not understand why that distinc- Dreier language, there would be to dif- the big concern is about this language. tion should hold. If it is a burden on a ference with regard to the tobacco leg- I think it is logical, given our budget business, then we ought to stop and islation than there would be having ac- rules that we have to live under; and I take a look at it. Which is the purpose cepted the Dreier language. So it is not would support the language and oppose of the underlying bill? going to have any effect on the tobacco the Moakley amendment. Mr. PORTMAN. Mr. Chairman, re- legislation and the possibility of a cig- Mr. MOAKLEY. Mr. Chairman, will claiming my time, I think what the arette tax. the gentleman yield? gentleman is saying, in essence, is that Mr. MOAKLEY. Mr. Chairman, will Mr. PORTMAN. I yield to the gen- there is discrimination in this legisla- the gentleman yield? tleman from Massachusetts. tion against new spending. I guess I Mr. PORTMAN. I yield to the gen- Mr. MOAKLEY. Mr. Chairman, actu- would answer him by saying, getting tleman from Massachusetts. ally, I think the gentleman from Ohio back to this philosophical question, Mr. MOAKLEY. But this does change is disturbed with the budget act. I you are probably right. We have a $5.5 it. It does slant it. If we do not have a think we should amend the budget act. trillion debt in this country. I think point of order prevail against it be- But do not try to straighten out the the problem that we are trying to ad- cause it is going to go back to some budget act with this amendment. dress here is not on the tax side in program, talking about the tobacco, Mr. PORTMAN. Mr. Chairman, is the terms of tax increases. It is more in that is going to stop smoking, a point gentleman from Massachusetts offering terms of spending being out of control of order is going to lie upon it. But if an amendment to change the budget and a need to begin it get some control we are going to take that money and rules? Because I do not think it would over the mandates on the private sec- give it back as tax rebates, a point of be germane here. We have to live under tor. That is the bias here. order does not lie against it. And the these rules. They are the rules that we As I said earlier, there is a philo- argument is not going to be on what it have. sophical difference here. does, it is going to be on procedure. Mr. DREIER. Mr. Chairman, I ask The CHAIRMAN. The time of the Well, Mr. Chairman, this is not a unanimous consent that the gentleman gentleman from Ohio (Mr. PORTMAN) mandate. This is not a point of order from Ohio (Mr. PORTMAN) be given an has expired. under the unfunded mandate because it additional 2 minutes. (By unanimous consent, Mr. says, if there is going to be a tax break, The CHAIRMAN. Is there objection PORTMAN was allowed to proceed for 1 there is no point of order, Mr. Chair- to the request of the gentleman from additional minute.) man, it gives a point of order. California? Mr. PORTMAN. Mr. Chairman, I It does slant the debate. There was no objection. would also say that if you look at the Mr. PORTMAN. Mr. Chairman, re- Mr. PORTMAN. Mr. Chairman, I budget rules when we are talking about claiming my time, I would make two yield to the gentleman from Virginia. taxes, this is just a carve-out for taxes, points. Mr. MORAN of Virginia. I thank my it just has to do with situations where One is that my colleague should like friend, the gentleman from Ohio (Mr. you have a net decrease in taxes in a this amendment in that case because it PORTMAN). tax package. Right now, we are living is more likely that some kind of to- under rules that I think, despite what b bacco legislation I guess would not get 1645 the gentleman from Massachusetts through because the point of order Mr. MORAN of Virginia. Mr. Chair- (Mr. MOAKLEY) may believe about would lie without the Dreier language man, I thank both gentlemen. An addi- those rules, we are going to continue to in both of those scenarios. The point of tional point needs to be made, that have to live under, which say that order would lie in the case where there while the administration opposes this every time you want to give tax relief, was more spending, and the point of bill in general, their principle objec- you have to mandate. It seems to me, order would lie in the case where there tion seems to be to this particular pro- again, it would be absurd, then, to re- was a net tax decrease. vision. quire those mandates to be subject to All the Dreier amendment is trying Those who want the overall bill to this if we are requiring ourselves to to do is, in the case where there is a pass, I think it makes enactment prob- mandate. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3435 Mr. WAXMAN. Mr. Chairman, will control system, for the modernization are going to pay the cost. All it says is the gentleman yield to me? of the aircraft control system, for avia- you are going to have a tax cut of ap- Mr. PORTMAN. I will be happy to tion security as we are now in the proc- proximately the same amount. Hardly yield to the gentleman from California. ess of doing, a point of order could lie good sense. It sort of smells of black- Mr. WAXMAN. Mr. Chairman, I un- automatically against such legislation. mail or something of that kind. derstand the distinction the gentleman That would be outrageous. But the hard fact of the matter is, it is making, but if we imposed a tax on If we do not change this underlying is not going to do anything that is tobacco and wanted to use that money bill, if it should become law, and I am going to be of any particular merit. It to help pay for Medicare, we would not confident the President will veto it, we is just going to have another vote. have the opportunity to have a focus will have moved backward, not for- The practical result of this legisla- on that new tax increase. ward, in our efforts to modernize the tion is that, where something is nec- If we had that tax on tobacco and air traffic control system. We have essary to be done, we will probably wanted to give a tax break to growers made a 30-year almost commitment to have the extra vote. The process will be of corn, then we would say, whoa, wait improving aviation safety, security, ex- delayed. We will have a point of order, a minute, we are going to take a spe- panding capacity to the Nation’s air- and we will have a huge wrangle about cial look at that tax on tobacco. That ports through the Aviation Trust Fund. it, but nobody is going to be better by just, to me, does not make a lot of It is astonishing to me to see legisla- the result of this. sense. tion come up here that makes it more The tax cut, which supposedly, if it is Mr. PORTMAN. Mr. Chairman, I difficult. going to occur, can go to anybody. You think it is the converse of what the The Moakley amendment would stop give it to all the millionaires and say, gentleman just explained. that rollback, allow us to continue our millionaires, you do not have to pay Mr. OBERSTAR. Mr. Chairman, I efforts and modernize the air traffic any tax; and that way, we will have move to strike the requisite number of control system, improve aviation safe- benefited the economy to offset a words. ty. I urge its adoption. change in the food and drug laws to Mr. Chairman, I rise in support of the Mr. DREIER. Mr. Chairman, will the protect people from unsafe food, drugs, Moakley amendment, and I do so out of gentleman yield? and cosmetics. very grave concern for the effects of Mr. OBERSTAR. I do not have any The gentleman from Massachusetts the underlying legislation on the Avia- further time. is smart enough to have recognized tion Trust Fund. Mr. DREIER. I ask unanimous con- this and to have offered an amendment The Moakley amendment would en- sent, Mr. Chairman, that the gen- which would address this. I hope that sure that revenues raised from aviation tleman be given 2 additional minutes. the House is wise enough to accept the users will continue to be dedicated to Mr. OBERSTAR. No, I do not seek amendment offered by the gentleman the purposes for which the Aviation additional time. The gentleman has from Massachusetts. It will benefit the Trust Fund was established, for invest- had sufficient time to discuss the legislation somewhat. The legislation ment in air traffic control, air traffic amendment. will have less of a curiosity to it. It safety, air traffic security, equipment, Mr. DREIER. I wanted to clarify. might even look a little better. But it and in airport capital needs. Revenues The SPEAKER pro tempore. The is not going to benefit the operation of raised from aviation users under the time is controlled by the gentleman the House particularly, even as amend- concept of the Aviation Trust Fund are from Minnesota (Mr. OBERSTAR). ed. deposited in that trust fund. It is to be Mr. OBERSTAR. Mr. Chairman, I The practical result of the amend- used solely for improvements in our air yield back the balance of my time. ment is going to be simply to eliminate traffic control system and for oper- Mr. DINGELL. Mr. Chairman, I move a little bit of the obfuscation and, ation and maintenance of the system. to strike the requisite number of quite honestly, the stupidity of the bill Air traffic controllers, air traffic words. as amended. The practical result of all safety equipment, radars, terminal Mr. Chairman, this is a most curious this is going to be, however, that we Doppler weather radar equipment that exercise. We have a bill on the floor are still going to have a bad bill. we need in our en route centers for con- which says that any time we pass a I know the House is probably going trol of aircraft at high altitudes, these law, we have to have a special vote in to vote for this because my Republican are very costly systems. They need to this House as to whether we are going colleagues are going to go home and be updated and maintained, and the up- to consider it if it is going to impose make speeches about it and tell every- grade needs to be planned out years in any unfunded mandates on any citizen. body what a great job they did in advance. That is why we have this con- That means if we are going to tight- amending the rules of the House by cept of a trust fund with a dedicated en the law with regard to protecting statute. That is a curious process, too, revenue stream to these critical invest- people under the Food and Drug Act and I am sure they can explain that to ments. We have tried to strengthen the from unsafe food, drugs, cosmetics, or their constituents, but I cannot. Aviation Trust Fund in recent years. if we are going to deal with the prob- I do not think that their constitu- There was a vote not too long ago in lems of Superfund or brownfields, or if ents, if they really will reflect on this, which we failed by only five votes of we are going to deal with the problems are going to come to the conclusion taking that trust fund entirely off the of water pollution, because it is going that this kind of convoluted relation- budget. Current legislation to take the to cost money, we are going to have to ship of a tax cut to the public interest trust fund off budget has 243 cospon- have a special vote before we can con- is something which, in fact, is going to sors; to make it more difficult, not sider those questions. benefit either the country or the proce- less, to divert resources from protect- It means any time that we do some- dures of the House of Representatives. ing aviation safety for the American thing that the people want that is My counsel to the House, I know it is public. That is a bipartisan commit- going to protect their health, safety, or not going to be listened to on the Re- ment. welfare, or any time we are going to do publican side of the aisle because they The underlying bill, H.R. 3534, would anything that is going to make life do not seem to listen to common sense undermine that commitment. Taxes better for the people of this country, on many days, but it is to simply ob- raised on the concept of this bill from we are going to stop and have to have serve that the amendment should be the aviation industry could more easily a special vote. Somebody over here, I adopted, the bill should be rejected, be spent on tax cuts for upper income think, assumes that this is going to be and we should go about legislating in Americans of the top 1 percent or 2 per- very helpful to them politically. the fashion that hundreds of years of cent of millionaires in this country Then along comes this curious legislators have found serves the public than they could be spent on aviation amendment which says if you are going interest without any nonsensical pro- investments. to do that, you do not have to have the posals of this type. The underlying bill would mean that, vote if you have a tax cut in the bill. Mr. GILLMOR. Mr. Chairman, I move if Congress moved to raise aviation ex- That is very strange. It does not say to strike the requisite number of cise taxes to improve our air traffic the tax cut has to go to the people. We words. H3436 CONGRESSIONAL RECORD — HOUSE May 19, 1998 Mr. Chairman, I yield to the gen- does not allow discussion when tax breaks to of appropriated funds to implement, or tleman from California (Mr. DREIER). the wealthy are given but forces a discussion makes less stringent any Federal private Mr. DREIER. Mr. Chairman, I thank if the tax obligation provides for improving the sector mandate established to protect human my friend for yielding to me. I appre- health, safety, or the environment’’ after public good. ‘‘such fiscal year’’ and by inserting ‘‘or iden- ciate his courtesy, Mr. Chairman, and I Further, my constituents would find it alarm- tify any provision which removes, prevents rise simply to respond to the state- ing that a point of order does not apply, in the imposition of, prohibits the use of appro- ments that were made by the distin- other words, no debate would be allowed, if a priated funds to implement, or makes less guished ranking member of the Com- tax hike is used to give a tax break to some- stringent any Federal private sector man- mittee on Transportation and Infra- one, and the net effect is zero income. date established to protect human health, structure, and I am very, very sad that My constituents would be enraged with an- safety, or the environment’’ after ‘‘the esti- he would not yield to me for a clari- other aspect of the Dreier amendment to H.R. mate’’. Page 6, lines 14, 16, 18, and 20, after ‘‘inter- fication. 3534 that would not allow discussion if in- The statement that he made in the governmental’’ insert ‘‘mandate’’ and after creased tax revenues from trust funds, like the the closing quotation marks insert ‘‘and by well was a very eloquent argument Superfund revenues, are used on programs inserting ‘mandate or removing, preventing against the underlying unfunded man- for the national welfare, but if increased tax the imposition of, prohibiting the use of ap- dates bill. He does not want us to in revenues are used to create more loopholes propriated funds to implement, or making any way be able to zero in and target which provide escape from taxes for a privi- less stringent any such mandate established those mandates which are imposed by leged few, no point of order applies. to protect human health, safety, or the envi- Washington, D.C. onto the private sec- My small business constituents would really ronment’ ’’. tor, small businessmen and women of Page 6, line 18, strike ‘‘and’’. feel attacked by another aspect of the Dreier Page 6, line 20, strike the period and our economy. amendment which would not allow debate on insert‘‘and’’. He tried to say that he simply was mandates which give a tax break to someone Page 6, after line 20, insert the following: supporting the Moakley amendment in else but increases his, a small businessman's, (v) by striking ‘‘and’’ at the end of clause opposition to the amendment that I costs. (iii), by striking the period at the end of had offered in the Committee on Rules. The American people learned many lessons clause (iv) and inserting ‘‘and’’ and by add- But he went much, much further than in the last few years. One of the lessons is ing the following new clause after clause (iv): that. that although we are upset by having to pay There are no tax increases in the (v) any provision in a bill or resolution, taxes, that taxes are essential in a complex, amendment, conference report, or amend- ISTEA legislation that has moved for- fast-paced country like ours. We value our ments in disagreement referred to in clause ward. It seems to me that we should leadership in the world; to maintain that lead- (i), (ii), (iii), or (iv) that prohibits the use of recognize that what the gentleman was ership we must have a national Government appropriated funds to implement any Fed- trying to do was simply trying to op- that functions. We need to know that basic eral private sector mandate established to pose the entire language. What the needs are taken care of, like our airports, our protect human health, safety, or the envi- gentleman argued would not in any environment, our infrastructure. Many of these ronment.’’. Page 7, line 12, strike ‘‘one point’’ and in- way be addressed if we simply passed programs are paid for by special taxes with the Moakley amendment and then sert ‘‘two points’’ and on line 14, insert after protected revenues, our trust accounts like ‘‘(a)(2)’’ the following: ‘‘with only one point went ahead and passed the legislation. Superfund, like airport taxes, like black lung. of order permitted for provisions which im- Mr. Chairman, I thank my friend, the These trust funds would be severely effected pose new Federal private sector mandates gentleman from Ohio, for yielding so I by H.R. 3534 without the Moakley amend- and only one point of order permitted for can clarify that. ment. One of our abiding principles is that we provisions which remove, prevent imposition Ms. LEE. Mr. Chairman, I rise to speak in must have representation with taxation. We of, prohibit the use of appropriated funds to strong support of the Moakley amendment to must allow the same points of order to be implement, or make less stringent Federal private sector mandates.’’. H.R. 3534. This amendment is essential in raised when we give a tax break to the rich as that it corrects several major defects that are when we promote a program for the rest of us. Mr. WAXMAN (during reading). Mr. now embedded in H.R. 3534. As a new Mem- I urge my colleagues to vote for the Moakley Chairman, I ask unanimous consent ber to this House, I am acutely aware, as I amendment. that the amendment be considered as know my colleagues are, of the ramifications The CHAIRMAN pro tempore (Mr. read and printed in the RECORD. of the actions that we take in this body. I have SHIMKUS). The question is on the The CHAIRMAN pro tempore. Is many problems with the main bill, H.R. 3534 amendment offered by the gentleman there objection to the request of the and will vote against it. But the last minute from Massachusetts (Mr. MOAKLEY). gentleman from California? provisions that were inserted by Mr. DREIER The question was taken; and the There was no objection. set up parliamentary procedure which favors Chairman pro tempore announced that Mr. WAXMAN. Mr. Chairman, this tax cuts over using revenues for their intended the noes appeared to have it. amendment we call the ‘‘Defense of the purpose, like excise taxes, or for investing in Mr. MOAKLEY. Mr. Chairman, I de- Environment Amendment.’’ It is based national priorities. mand a recorded vote. on the bill H.R. 1404, which is supported The new language looks at the way reve- The CHAIRMAN pro tempore. Pursu- by every major environmental group nues from a program are used, before apply- ant to House Resolution 426, further and the AFL/CIO. It has been cospon- ing the point of order. Revenues that are used proceedings on the amendment offered sored by nearly 100 members. for a tax cut are exempted from the point of by the gentleman from Massachusetts Proponents of the underlying bill, order. This exempts a whole class of legisla- (Mr. MOAKLEY) will be postponed. H.R. 3534, have claimed that sometimes tion from the need to raise the private sector Congress does not sufficiently delib- AMENDMENT OFFERED BY MR. WAXMAN mandate point of order. For instance: a bill erate before enacting legislation. They Mr. WAXMAN. Mr. Chairman, I offer which increases revenues, like the gas tax, say that sometimes an issue is so im- an amendment. and requires that the money be used to repair portant that we need an extra proce- The Clerk read as follows: bridges or our infrastructure, would be subject dural step. This procedural step or Amendment offered by Mr. Waxman: ‘‘point of order’’ allows any Member to a point of order. But if this same tax is used Page 6, line 5, after ‘‘exceeded’’ insert ‘‘or to reduce taxes to a billionaire to avoid a tax that would remove, prevent the imposition who identifies one of these important obligation, a point of order would not apply, of, prohibit the use of appropriated funds to issues to immediately stop action here there would be no floor discussion allowed for implement, or make less stringent any such on the floor of the House of Represent- this class of loophole. mandate established to protect human atives and call for a brief debate and I know that many of my constituents, our health, safety, or the environment’’. then a vote. hard-pressed middle-class working people, Page 6, after line 5, insert the following The amendment I am offering is know that the actual value of their wages have new paragraph and renumber the succeeding about an issue that I think deserves paragraphs accordingly: declined, during the same time that more bil- special procedural attention every bit (4) MODIFICATION OR REMOVAL OF CERTAIN lionaires and CEO's with unbelievably large MANDATES.—(A) Section 424(b)(1) of such Act as much as those singled out in this salaries, have been created. These constitu- is amended by inserting ‘‘or if the Director legislation and in previous legislation ents would be very angry to learn, find it hard finds the bill or joint resolution removes, that we have adopted. Two years ago, to believe that we would support a bill that prevents the imposition of, prohibits the use we adopted this kind of procedure when May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3437 it came to imposing an unfunded man- stealth attacks on our environmental ject, as I said, to the 20 minutes of de- date on State, local, and tribal govern- laws. This amendment would not pro- bate, after which the Members must ments. hibit Congress from repealing or vote on whether to proceed with con- b 1700 amending any environmental law, but sideration of the legislation. would simply allow a debate and a vote This mechanism was crafted to en- The bill before us would expand the before Congress acts. That is what the sure that the House would have addi- application of these procedural protec- underlying bill does for new mandates tional information and debate time on tions to requirements on the private on private enterprise, just as previous certain Federal mandates, but that leg- sector. legislation called for this special sun- islation containing such mandates The ‘‘Defense of the Environment shine for provisions that would man- could continue to be considered by the Amendment’’ would build on this legis- date additional requirements on State, House, if a majority so desires. lation to offer special protection to local, and tribal governments. This is clearly, Mr. Chairman, about issues of great importance to the The CHAIRMAN pro tempore (Mr. having accurate information. There are American people, requirements estab- SHIMKUS). The time of the gentleman some horror stories that have been lished to protect public health, safety from California (Mr. WAXMAN) has ex- brought to our attention here. In 1993, and the environment. pired. the Department of Transportation con- This amendment would help guard (By unanimous consent, Mr. WAXMAN sidered promulgating hazardous mate- against Congress repealing current en- was allowed to proceed for 30 addi- rial regulations for the shipping of but- vironmental and public health protec- tional seconds.) ter and salad oil. The plan would have tions without adequate consideration. Mr. WAXMAN. Mr. Chairman, the en- required 24 hours of hazardous material Over the years, we have seen that when vironment is just as important to the classroom and field training for work- Congress legislates in a deliberate, col- American people as unfunded man- ers who responded to butter or salad oil legial, bipartisan fashion, we are able dates. The environment is just as im- spill emergencies. In November of 1995, to enact public health and environ- portant for special procedural atten- Congress approved legislation requir- mental laws that work well and are tion as new requirements that raise ing Federal agencies charged with the supported by environmental groups and taxes or otherwise place mandates on regulation of oil to treat animal fats by the business community. the private sector. Let us pass this and vegetable oils differently from However, sometimes the democratic, amendment and ensure Congress toxic chemicals. Under the Waxman small ‘‘d,’’ democratic process is ob- thinks before repealing critical public amendment, that legislation would structed and anti-environmental riders health and environmental protections. have been subject to a point of order, are attached to Appropriations bills or Mr. Chairman, I ask for an affirma- which seems to me to be very prepos- other ‘‘must-pass’’ pieces of legislation. tive vote for this amendment. terous. Often this happens with absolutely no Mr. DREIER. Mr. Chairman, I rise in Mr. Chairman, while the Clean Water debate or consideration by the Com- opposition to the amendment. Act requires a waste treatment facility mittee of jurisdiction. These anti-envi- Mr. Chairman, let me begin by saying to submit a simple form stating that a ronmental riders, some of which have that like my friend, the gentleman fence restricts access by the public, the become law, have increased clear-cut from California (Mr. WAXMAN), I share Resource Conservation and Recovery logging in our National Forests, crip- representation of the Los Angeles area Act requires an additional 25 pages de- pled protection of endangered species, with him and I am very sensitive and tailing the fence design, the location of stalled the Superfund program, concerned about environmental qual- the posts and gates, a cross-section of backslid on energy efficiency standards ity, both in California and throughout the wire mesh and other minor tech- and blocked the regulation of radio- this country and throughout the world, nical matters. One facility had to sub- active contaminants in drinking water. and I will say that I would do nothing mit a six-foot stack of supporting docu- Those are some of the examples of whatsoever that would in any way ments with its permit application. riders that passed. Now let me give you jeopardize or endanger environmental Under the amendment we are consider- some examples of riders that were at- quality in this country. ing right now by the gentleman from tached to legislation that were later All we are saying with the underly- California (Mr. WAXMAN), legislation to taken out. They were not made into ing language here is we would look at streamline this paperwork process and law, but, nevertheless, we did not get a the perspective imposition of mandates save hundreds of trees would be subject special opportunity to deliberate clear- on the private sector, and we will have to a point of order. ly and understand that we were going a 20-minute debate and we will be able So all we are saying, Mr. Chairman, to reduce protection of the environ- to look specifically at that mandate, is we want the House to deliberate, but ment. and we will be able to then proceed we do not want to move ahead with We have had riders that would have with an up or down vote here. this sort of tactic which, I think, would opened up the Arctic National Wildlife I think it needs to be very clear, as jeopardize the goal of the underlying Refuge to oil drilling, without a chance the gentleman from Ohio (Mr. legislation. for a separate vote. We have had a rider PORTMAN), the gentleman from Texas Mr. PALLONE. Mr. Chairman, I that prohibited the regulation of ar- (Mr. STENHOLM), the gentleman from move to strike the last word. senic in drinking water without a sepa- California (Mr. CONDIT) and I pointed Mr. Chairman, I rise today in strong rate vote. We have had riders that halt- out in a ‘‘Dear Colleague’’ the other support of the Waxman amendment ed implementation of the Clean Air day, that this underlying bill itself will and in strong opposition to the under- Act’s operating permit program with- not end private sector mandates, just lying bill. out a separate vote and terminated the as the Unfunded Mandates Reform Act The Republican majority has become environmental enforcement attorneys which we passed has not ended public quite adept over the last few years in at the Department of Justice, with no sector mandates. carrying out their anti-environmental special focus on this issue. We have had It will, however, force the Congress agenda by tacking riders on to appro- riders that exempted oil refineries and to consider the effects of mandates on priation measures and other unrelated cement kilns from air toxic standards consumers, workers and small busi- bills. This stealth approach allows and exempted specific polluters from nesses, including any disparate impact them to claim a clean environmental environmental laws, such as a rider on particular regions of the country or record without necessarily cleaning up that would have exempted an indus- industries, and to work with the pri- the environment. In fact, in many in- trial facility in Kalamazoo, Michigan, vate sector to establish our public poli- stances, they are doing quite the oppo- from Federal water pollution control cies in the most efficient and cost ef- site. requirements, again without a separate fective manner. That is what the whole Just a couple of weeks ago, for exam- opportunity to examine that issue. goal of this bill is designed to address. ple, the emergency supplemental ap- What I am offering by way of an This bill cannot be used to block a propriations bill was brought to the amendment to this bill is a procedure vote on environmental health and safe- floor with at least three anti-environ- that is designed to shine light on these ty mandates. A point of order is sub- mental riders relating to paving our H3438 CONGRESSIONAL RECORD — HOUSE May 19, 1998 parks and allowing big oil companies Mr. PALLONE. I yield to the gen- things. I have my fingerprints all over to rob American taxpayers for the use tleman from California. environmental legislation, in Florida of public lands for private financial Mr. WAXMAN. Mr. Chairman, the and elsewhere. I am certainly not going gain. gentleman obviously is against the bill. to sell out on the environment. The Waxman amendment would es- If someone supports this bill, because But I think it is pretty clear that tablish a point of order and allow for they think it makes sense to have a what we have got here is somehow we the opportunity for debate and a vote point of order and a focus and a debate are trying to bring the environment on provisions like these that would and then a vote before we put a man- into this, that it is going to be a cas- weaken current environmental law. In date on a private business, I think, for ualty because we are going to deal with this way, we would be able to put an the same arguments, it is important to unfunded mandates in the private sec- end to the stealth attack on the envi- have a point of order, an opportunity tor. By some great, long stretch, we ronment and instead debate these for a debate and a vote when it comes are no longer going to be able to have issues out in the open, as all business to an environmental issue, especially if environmental legislation, because, should be conducted in this House. we are going to have something snuck somehow or other, we are going to Unfortunately, however, even if the into a bill that would remove some en- weaken benefits to health, safety or en- Waxman amendment passes, this is vironmental protection. vironmental standards. still an incredibly bad bill, and I would So on the same logic for those who I think H.R. 3435 establishes a mecha- still urge my colleagues to vote against support the bill, for education, for an nism for Members to receive objective the bill. The bill is, again, just another opportunity to have some sunshine cost information that CBO can provide, attempt to block the open consider- about what we are to do and clear de- and then have a debate and a vote on ation of vital environmental worker liberation before we do it, I think we that particular issue. That is what we safety and human health legislation. ought to have this amendment. It is tried to do in this. An incredible concept, this bill estab- consistent with the bill. As I say, it has been much crafted, lishes a new point of order against leg- Whether one is against the bill, but and I think they have it right. I know islation based on the cost to the pri- also for those for the bill, I think this they have a lot of good folks over at vate sector. What this means is the amendment goes well with this legisla- CBO that could do a lot of things, they cost of any legislation to private com- tion. are very talented, but I do not think panies would be universally considered Mr. GOSS. Mr. Chairman, I move to they have anything in terms of struc- by Congress as more important than strike the requisite number of words. ture or expertise to begin to quantify any benefits of that legislation to Mr. Chairman, I rise in very strong the nature of ‘‘benefits.’’ human health, worker safety or the en- support of H.R. 3435, but equally strong b 1715 vironment. support against the amendment of the For example, and I use the Clean distinguished gentleman from Califor- Balancing the merits of potential Water Act because the gentleman from nia (Mr. WAXMAN), which I think will mandates with the overall benefits to California used it, if we were to try to seriously gut this particular piece of Americans is important if we know bring the Clean Water Act to the floor legislation. what the benefits are. I think we have under the new rules established by this Mr. Chairman, I used to be an inde- set up the normal debate process to do bill, it would be subject to a point of pendent businessman and I used to be a that in this particular legislation. I order. In order to avoid having to be re- former local official with the local gov- frankly think that transparency is corded as voting against a good envi- ernment, and I can tell you unfunded great. We are going to let the sun shine ronmental bill like the Clean Water Federal mandates are real, they do in. We should welcome it. Act, under this bill Members could sim- have an impact, and generally they I do not think the Waxman amend- ply vote not to consider the Clean harm the folks back home. ment, no matter how well intended, is Water Act at all; or, even worse, in I think that everybody understands really about protecting the environ- order to have the Clean Water Act con- these mandates are sort of a hidden ment. I think it tends more to be an sidered, the American taxpayer would tax. They fall on business, they fall on obstruction and probably more in the have to foot the bill for cleaning up our consumers, and I think we need an ef- line of going back to some other legis- Nation’s waters and not the polluters. fective deterrent. In the 104th Congress lation we have seen which has been lit- But it gets even crazier, and this goes we started this process, and we dealt mus test type legislation, which simply back to the Moakley amendment. This with the public sector. After a lot of re- says one cannot do anything with pri- bill makes it so revenues raised for a finement, thanks to the gentleman vate property rights because somehow certain purpose cannot be used for that from Ohio (Mr. PORTMAN) and the gen- or other it therefore makes all other purpose unless there are equivalent tax tleman from California (Mr. CONDIT) environmental legislation unenforce- cuts included in the bill, regardless of and some others, we have got a much able, too expensive, too extreme or where those tax cuts are taken. That improved bill now for the private sec- something along those lines. means, for example, that if a bill in- tor which will do the same thing. My line on the environment is this: cludes a tax on chemical and petro- I think that H.R. 3435 in its present This is a country that is going to take leum products, I will use the example form supplies more information to care of the environment, but this is of the Superfund tax, and the revenue Members on the impact of what these also a country that is going to protect created is to be used for cleaning up mandates are all about without ena- private property rights. It says so in toxic waste sites, that bill would be bling those intent on dilatory mischief. the Constitution of the United States subject to a point of order. However, if I think that is where we are right now, of America, which is where I am stand- the same bill included an equivalent frankly. Essentially it would permit ing right now. tax break for the wealthy, there would the House to have a separate debate I do not believe either the private be no point of order. In my opinion, and vote on whether or not it wants to property people or the environmental this makes no sense. It is obviously impose a private sector mandate great- people are ever going to win the whole weighed heavily procedurally against er than $100 million. That is reason- battle. It is going to take working co- any environmental initiatives. able, I think it is appropriate, it is operation between the two. I think the For these reasons, I urge my col- good government, and I cannot see the working cooperation of the gentleman leagues to vote for the Waxman amend- problem. from California (Mr. CONDIT) and the ment. Even if the Waxman amendment Now, I have heard many environ- gentleman from Ohio (Mr. PORTMAN) passes, I still urge my colleagues to mental groups are opposed to this bill has shown that the environmental in- vote against the bill. It is bad, ex- and support the Waxman amendment. I terests in this bill have been properly tremely unwarranted, and it would am an environmentalist. I have served balanced. I am convinced, having sat drastically change the way we do busi- on very distinguished environmental on the Committee on Rules, that we ness in the House of Representatives. groups and boards, the National Audu- got it right. I do not think the environ- Mr. WAXMAN. Mr. Chairman, will bon Society at the national level, and I ment comes out second best anywhere the gentleman yield? have done local things and State along the line. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3439 Mr. WAXMAN. Mr. Chairman, will look at all the information when we issue, not the number one environ- the gentleman yield? make decisions. But the only problem mental issue, the number one issue for Mr. GOSS. I yield to the gentleman is that we have seen some really ter- the people of the Northwest is the envi- from California. rible examples where something came ronment and protection of the environ- Mr. WAXMAN. Mr. Chairman, I think through on a rider. I want to speak ment. So by golly, I say that my con- the gentleman misunderstands the about these riders. stituents deserve the right to hear that amendment. The underlying bill re- Mr. Chairman, we had a terrible rider other side. quires that we give a focus of attention that went through on our forests, and Mr. Chairman, I want to end by say- before we go to mandate something on we were told all sorts of things, but it ing let us support the rider offered by business, and that makes sense in and was just stuck on a bill, 1030 one night. the gentleman from California (Mr. of itself, but we are saying before we do Here it came, nobody debated it, no- WAXMAN). Let us not pass H.R. 3435 something like have an amendment body had had a hearing on it, and some until we have some cost-benefit analy- that opens up the Arctic National of us fought it, and we lost. And that sis. Wildlife Refuge or halts the limitation rider has cost my district, it has cost Mr. PORTMAN. Mr. Chairman, I of a Clean Air Act provision, that we the Northwest. It has cut trees on steep move to strike the requisite number of also have a chance to look at that and slopes, and from that cutting, again, words. vote on it separately. nobody discussed it, nobody had a hear- Mr. Chairman, let me just make a Otherwise what I fear is that anti-en- ing on it, from that cutting we have couple of points. First of all, this well- vironmental provisions will be wrapped had flooding, we have had deaths as a intended effort by the gentleman from up in a bill and we will not be able to result of that clear-cutting on areas California (Mr. WAXMAN) I think just have a chance to look at it and con- that were unstable. does not work in the context of this sider it and then vote on it. Just as I So I want to talk a little bit about legislation. I think it has very serious think a lot of people will worry that an why it is important that we talk about problems. CBO cannot do the analysis. unfunded requirement on business the environment and we understand The gentleman is in the Chamber, and would be wrapped up in a bill. that it is great to get the costs from I hope he will listen to some of my con- The CHAIRMAN pro tempore (Mr. the CBO, it is great to know what the cerns and perhaps answer some of GILLMOR). The time of the gentleman mandate will cost us. But I think what them. from Florida (Mr. GOSS) has expired. we do not get if we do not have full de- Not only does it substantially in- (By unanimous consent, Mr. GOSS bate is we do not hear what the bene- crease CBO’s workload, and we have was allowed to proceed for 1 additional fits will be from an environmental law. talked to CBO about this, and also de- minute.) So I want to talk about the benefits. grade its ability to do its core function, Mr. GOSS. Mr. Chairman, I under- Mr. Chairman, on the Columbia River which its core function is budget anal- stand what the distinguished gen- we have lost hundreds and thousands of ysis and mandate analysis. That is tleman is saying. I understand, and I salmon, and it is going to cost us a lot what they do. That is what the Con- do not want to get into opening up this of money, a lot of money to bring those gressional Budget Office is all about. whole debate because we could go on salmon back. But what is the benefit if But also, CBO just cannot add anything endlessly doing that and we only have we spend that money? What is the ben- new to this debate. They cannot do the a minute. The point I would simply efit of the Federal laws that are going benefit analysis that the gentlewoman make is that the gentleman is trying to require us to bring those salmon just talked about prior to my taking back? Well, let me tell my colleagues to shift the burden with his amend- the mike. They analyze cost informa- some of the benefits. ment. tion. They do not do noneconomic ben- One of the benefits is that econo- I do not think the burden should be efit analysis. mists now predict that if we brought shifted. I think we have it right to say If the goal here is to prevent efforts the runs back to the Columbia River, that the unfunded mandate should be to weaken or remove mandates, then we could create 40,000 family wage jobs, Members should simply vote against recognized for what it is and dealt with 40,000 family wage jobs. Let us be able such proposals on the floor. I can recall for what it is in fair debate. The gen- to discuss that. Let us not just say it is very well those riders coming up and a tleman wishes, by his amendment, to going to cost X millions of dollars to lot of debate right here in the well of shift the burden to prove the other part do something; let us say what is it the House on that, and that is fine. The of that. I think the reason we are put- going to do for that environment in purpose of the point of order in the un- ting the legislation out is to get the that economy, to bring back certain derlying legislation is to give Members burden the way we want it. jobs that the environmental laws are the opportunity to consider private Mr. WAXMAN. Mr. Chairman, will going to allow us to do. the gentleman yield? So I think again the gentleman from sector mandates, hidden mandates in Mr. GOSS. I yield to the gentleman California (Mr. WAXMAN) is right, that the legislation, and to get information from California. what we want to do is have full debate; on those mandates from the experts at Mr. WAXMAN. Mr. Chairman, the we want to make sure that the cost and CBO that can objectively provide that point that I am making is that just as the benefits are reviewed. information. This is an objective infor- it is important to have a focus on an We have heard that there is no way mational requirement. And these are unfunded mandate and a chance for the we can quantify benefits. I disagree mandates and information that we do House to consider it, it is just as im- with that. We know, we know that the not otherwise systematically consider. portant to have the focus on the envi- Pacific Northwest has lost $13 billion That is the way this legislation has ronmental issue and give the House a because we have lost salmon. Finally been drafted. If the gentleman from chance to debate and vote on it sepa- we have some Federal laws that are California (Mr. WAXMAN) and others rately. I want the two to be treated going to make us rebuild those runs, would like to add some rider legisla- equally, and I do not think that they and those fishing families in my dis- tion, maybe they can spend the next are at odds with each other. trict who have lost their boats, lost year as we spent the last year, putting Mr. GOSS. Mr. Chairman, reclaiming their homes, lost their livelihood, for a something together that makes sense my time, I believe that the formula moment we are going to have a little on riders, but it does not fit with this that the gentleman from Ohio (Mr. look at the benefit, the benefit to our legislation. It creates another point of PORTMAN) and the gentleman from economy. order that I think is so vaguely defined California (Mr. CONDIT) have come up So I am going to support the Wax- that it could be used to hold prac- with in fact does that. It just proves it man amendment because it makes tically any bill up. I have a lot of ques- shifts the burden in the debate, that is sense. Let us not in this body, the peo- tions with it. all. ple’s House, let us not pass laws in the Let me just ask a few right now. The Ms. FURSE. Mr. Chairman, I move to dead of night, let us not do these quick Waxman amendment, as drafted, has a strike the requisite number of words. fixes that really do not fix anything. lot of flaws that do not work with the Mr. Chairman, there are tremendous A recent poll in the Pacific North- underlying bill and it has some very se- parts in H.R. 3534. I think we do need to west has shown that the number one rious implications that just have not H3440 CONGRESSIONAL RECORD — HOUSE May 19, 1998 been thought through. Who determines Mr. WAXMAN. Mr. Chairman, I just good one, that we do it one time, each whether the mandate is weakened or wanted to point out to the gentleman bill. We did not want to be dilatory. We not? Let me just go through these that we removed the requirement that did not want to delay the process. This questions, if I might. Is that driven by the gentleman has in his underlying would create another point of order. I reduction in direct or indirect costs to bill to have the Congressional Budget think that is unnecessary. the private sector? Office analyze the costs. I think we ought to work on the sug- What if the private sector becomes All that the CBO would do would be gestion of the gentleman from Califor- more efficient in implementing man- to identify the provision, and in identi- nia (Mr. WAXMAN). I absolutely think dates, which happens all the time. fying that provision, it allows a Mem- we ought to take those things into con- Look at all the environmental legisla- ber to make the point of order for con- sideration, but this is not the bill to do tion that was talked about here earlier sideration. We do not block any ac- it on. This has not been thought out today. The private sector is learning to tions, we only ask that they give con- well enough for us to amend this bill, meet the same goals with fewer re- sideration to that issue. There is no to change this bill and make it head in sources. With less of a burden on the cost that CBO would have to incur in a little different direction. This is private sector, is that a reduction in analyzing this provision. about information, and I would encour- the mandate? The way I read the legis- Mr. PORTMAN. Mr. Chairman, re- age my colleagues on this side of the lation, it would be, because it is a re- claiming my time, I find that hard to aisle to vote against the Waxman duction in cost. believe. I do not know how the Con- amendment. Does that trigger this legislation, gressional Budget Office is going to de- Ms. SLAUGHTER. Mr. Chairman, I even though the goals are still being termine, in these complicated situa- move to strike the requisite number of met? Is there any credit given when tions, whether in fact there has been a words. the net costs are less because the pri- reduction in the requirement. I talked Mr. Chairman, I rise in support of the vate sector is being more efficient? Is earlier about the lack of a threshold, Waxman amendment, and I want to that requirement lessened? I just think for instance. agree with my colleague, the gen- these questions have not been thought The CHAIRMAN. The time of the tleman from California (Mr. CONDIT), out. gentleman from Ohio (Mr. PORTMAN) and I am pleased that he understands The threshold. There is no threshold has expired. the wisdom of what the gentleman in this legislation. How much costs (By unanimous consent, Mr. from California (Mr. WAXMAN) wants to have to be reduced for this to apply? As PORTMAN was allowed to proceed for 2 do. I read the legislation, if the costs are additional minutes.) I think my colleague, the gentle- reduced by $1, if it is $1 less, then that Mr. PORTMAN. Mr. Chairman, I ask woman from Oregon (Ms. FURSE), made is somehow a reduction in the mandate for additional time simply to yield to a wonderful point that I hope was not and there is no threshold. As we know, my colleague from California (Mr. lost, that all mandates or anything in the underlying legislation we pur- CONDIT). else, any laws, are not just reckoned in posely worked through this. We have a Mr. CONDIT. Mr. Chairman, I rise costs in dollars. She pointed out loss of $100 million threshold before the infor- today to oppose the Waxman amend- life and loss of things that are irre- mation requirement even applies on ment, but not the intent of my col- placeable, priceless. the private sector mandates. league and my friend. I think the gentleman from Califor- I guess the bottom line is, this is a The purpose of this bill is to provide nia (Mr. WAXMAN) is doing a good thing well-intended effort by the gentleman an informed debate and to oversee here, because he wants to protect the from California (Mr. WAXMAN) I am often what are hidden costs to a new public health and the environment. I sure, and I know he is well-intended on regulation. Should the same consider- do not support the types of order that the environment, but if there is any ation be given to the impact on health, the underlying bill creates. lesson we can draw from the Unfunded safety of workers and our environ- I understand what they are for. They Mandate Relief Act of 1995, it is that ment? Absolutely. We ought to have all are designed to sensitize Members to we need to define the terms very care- the facts before us before we make a the effects of the proposed legislation, fully. The Parliamentarian’s Office, decision as it relates to those issues. but I believe most of us in the House the Congressional Budget Office will But this amendment, frankly, goes a already understand the implications, tell us that. little bit too far in that I do not think and this type of emphasis is largely The reason it has worked over the that it is perfected and well thought unneeded. In my district, my constitu- last 3 years is we took our time, we de- out. The gentleman from Ohio (Mr. ents keep me well-informed about how fined the terms. I think in the esti- PORTMAN) mentioned that it does not proposed private sector mandates will mation even of those who voted against have a threshold. That means that we affect their business. the legislation, some of whom are here could make any minor change and we However, if we are going to expand today, it has worked very well. Why? could have a point of order. In the un- this type of point of order, we should Because at the committee level, the funded mandate part of this on the tag for Members bills that have the ef- committees have dealt with the man- business or the private sector, we fect of reducing the protection of pub- dates to try to lesson the mandates and would at least have a $100 million lic health and the environment. The come up with the most cost-effective threshold. It has to be some kind of sick, the disabled, the young cannot be way to meet the same targets. That is significant action before one can make expected to monitor the legislation in what is likely to happen on this legis- a point of order. the same fashion as large corporations. If public health protections for them lation. b If we go ahead with the Waxman 1730 are to be weakened, we ought to be amendment, it is my concern, very, Under the amendment offered by the sure that all the Members who vote for very strong concern, that we are going gentleman from California (Mr. WAX- that weakening have that fact brought to essentially have an unworkable MAN), it could be anything, anything to their attention. piece of legislation that will not work that they determine to have any kind Similarly, our Nation’s air, water, in the way that the Unfunded Mandate of negative impact, they could have a soil, forest, wilderness and wildlife can- Relief Act of 1995 works and the way debate and call for a point of order. I not speak for themselves. Again, every that this bill is intended after a year’s think that is unnecessary. I think that Member should know when casting his worth of drafting. delays the process. or her own vote that environmental Mr. WAXMAN. Mr. Chairman, will In addition to that, we were very protections will be lessened. the gentleman yield? careful. There was some consideration Unhappily, over the last 3 years Mr. PORTMAN. Mr. Chairman, I given whether or not you could have a many bills would have been subject to would be happy to yield to both of my point of order on every section of a bill, that point of order. For example, in the colleagues from California. I will first how many times you could do the point last Congress I fought a bill that would yield to the gentleman from California of order. It was the decision of the have frozen new regulations that were (Mr. WAXMAN), who is standing. Committee on Rules, and I think a designed to protect the public from May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3441 bacteria-contaminated meat and poul- underlying environmental laws of this cient under the Endangered Species try, from Cryptosporidium in drinking country, the Clean Water Act, the Act, it is sufficient under the National water, and from lead in imported foods. Clean Air Act, the questions of Super- Environmental Protection Act. They These issues are becoming more and fund or brownfields cleanup, forest want to do that by fiat, with no debate, more important to the American pub- safeguards, the Forest Practices Act, no discussion, just declare the action lic. the mining laws of this country, and sufficient. Perhaps a specific point of order multi-million dollar subsidy issues. Historically, when we have done would have helped convince the major- Time and again, these matters have that, we have had to go back and spend ity in Congress that their votes against been brought to this floor with no pro- millions of dollars to make up for the my amendment and for that bill put visions in the rules for debate. Very mistakes. the health and lives of thousands of often now, we find that they are hidden Now we see legislation on our com- Americans at risk. away in the report language, so we can- mittee where they want to seek waiv- The current majority has led a re- not even get at them on the floor of the ers of the Clean Water Act, wholesale lentless assault on the environment House of Representatives. We cannot waivers of the Clean Water Act, and since taking over the Congress. With- get a vote on these matters. We very then they will be brought out here in out regard to the impact on citizens often are limited in our time to discuss suspension, they will be brought out and the environment, the full House of them. Yet, they have huge impacts on with little or no debate. The Waxman Representatives has approved measures the environment of this country. That amendment is an opportunity to give designed to relax and to roll back ex- is why we need the Waxman amend- the environment the kind of priority isting environmental regulations and ment, so we will have an opportunity that the American people attach to to halt Federal agency rulemaking de- to discuss these in the daylight. this subject. signed to protect our national heritage. There is a reason why these changes As we know, in poll after poll after The House went so far as to pass leg- in environmental law are not brought poll the overwhelming majority of islation to stop the listing of endan- before the Congress in a freestanding Americans consider themselves envi- gered species and passed a bill to weak- bill that is brought out here under a ronmentalists. They consider the envi- en dramatically the Clean Water Act. rule so it can be debated and voted up- ronment very important. If we even Measures to allow clearcutting in our or-down. It is because the legislation ask them the question of comparing Federal forest lands led to a massacre cannot support that, or the majority and contrasting it to the health of the of healthy trees with a so-called sal- party does not want to be identified in economy, they want the environment vage rider, and the Congress continues that action. But if you can tuck them taken care of. That is what the Amer- to consider legislation to have tax- away in a larger bill, if you can put ican people want. That is what most payers reimburse polluters for cleaning them into a must-pass appropriations Members of this House say they want, up the toxic waste sites and to cut the bill, if you can get them into a bill at but that is not what happens in the funding for Federal land acquisition. the end of the session, fine, they are House of Representatives. That is what The threat to our landmark environ- willing to do it, with total disregard brings about the necessity of the Wax- mental laws has been real. Perhaps this for the impact to the environment and man amendment. health, safety, and environmental notice to our colleagues here in the Mr. Chairman, I would hope my col- point of order would have caused Mem- House of Representatives. leagues would support this amendment bers to take a second look at the bills That is why the Waxman legislation as part of the underlying legislation. that weakened these important provi- is so terribly important. This is not a Mr. VENTO. Mr. Chairman, I move to sions. contest between unfunded mandates strike the requisite number of words. Mr. Chairman, if we are going to con- and the environment. In many in- Mr. Chairman, I rise in support of the tinue on this route of bringing special stances, these two situations rise sepa- Waxman amendment. attention to the effect of certain kinds rate of one another. But this is about Mr. Chairman, this is an important of bills, I believe that the degradation whether or not, as we do the people’s amendment, and certainly defense of of public health, safety and environ- business here, we will have the oppor- the environment is something we all mental protections deserves this spe- tunity to raise these issues and to have should be hailing. This Mandates Act cial attention, too. I urge my col- a free and fair and open debate. of 1998 is a simple bill that extends to leagues to support the Waxman amend- In the history of this Congress over the private sector an information proc- ment. the last several years, that simply has ess currently employed to assist in un- Mr. MILLER of California. Mr. Chair- not been the case. That is why we have derstanding the impact of national pol- man, I move to strike the requisite to ask for this. Our colleague, the gen- icy upon State and local government number of words. tlewoman (Ms. FURSE) raised the issue that already is in law. Mr. Chairman, I rise in support of the of the forest rider, a forest rider that Currently, when Congress is consider- amendment offered by our colleague, went through this House with little or ing a legislative provision that imposes the gentleman from California (Mr. no debate, only to do a great deal of unfunded mandates on State and local WAXMAN). I rise in strong support of devastation. governments, we are required to sub- the Waxman amendment. I think it is We have seen on now three different ject that proposal to extensive study an important amendment, and I think occasions where similar riders have and open debate. This measure, H.R. it is consistent with the underlying de- been approached, to be put on legisla- 3534, extends the requirement to un- bate that requires the Congress of the tion coming before the House of Rep- funded mandates imposed on the pri- United States to pay particular atten- resentatives. Our constituents are now vate sector. tion to the cost of unfunded mandates spending billions of dollars a year to go For the record, Mr. Chairman, I note and the cost of our actions around back and to correct some of these in- that this is opposed by some potent here. I think it is just as important and credible environmental insults that groups such as the AFL–CIO and a slew every bit as important that we do the have taken place with respect to water of environmental organizations. A con- same thing with respect to the environ- quality, with respect to the cleanliness cern clearly persists about whether ad- ment. of water, with respect to the Forest vocates are interested in the informa- The problem is that, time and again Practices Act and to the Endangered tion for good-faith analysis, or whether in this Congress, we have seen matters Species Act. this is a clever means to tie the legisla- of the environment come before this In the committee on which I serve, tive process into knots and make it Congress with little or no debate, and the Committee on Resources, time and more difficult for Congress or for this in some instances with no underlying again we see legislation coming from legislative body to act. hearings, to be thrust upon the House that committee that wants to legisla- This measure, however, is not flawed of Representatives, very often from the tively state that this piece of legisla- beyond repair. Our colleague, the gen- Senate, from time to time in the appro- tion or this action to be taken by the tleman from California (Mr. WAXMAN), priations bills as matters of riders that Federal Government, by a private who has impressive environmental cre- deal with the fundamental and basic party or somebody else is, in fact, suffi- dentials, is offering an important H3442 CONGRESSIONAL RECORD — HOUSE May 19, 1998 amendment. His defense of the environ- making decisions that could affect our prehensive way, like we have done the ment amendment would extend the re- environment; if Members vote no, that unfunded mandates bill. We ought to quirements of study and open debate to they would not want to be held ac- go through the process. proposals in Congress that affect the countable for these riders but choose to Mr. Chairman, I yield to the gen- environment. remain handicapped by burying the tleman from Ohio (Mr. PORTMAN), co- While the amendment of the gen- controversy in the excuse that they sponsor of this bill. tleman from California (Mr. WAXMAN) had no choice. Mr. PORTMAN. Mr. Chairman, I would only affect environmental pro- Today we have a choice to empower think the gentleman just made a great posals directly related to the work of ourselves. Let us stop the assault on point, which is the underlying intent of the private sector, it would unques- the environment, let us stop the as- this legislation in sunshine. It is trying tionably benefit our constituents, our sault on the legislative process, let us to get at these private sector unfunded communities, and our children. stop making excuses, and support the mandates. It is not about the merits or The fact of the matter is that Con- Waxman amendment to H.R. 3534. It is demerits of any new environmental gress too often has a problem with spe- good for democracy, the environment, legislation, any new civil rights legis- cial interests successfully attaching and our stewardship, and the legacy we lation. It is about having information anti-environmental riders to appro- leave to future generations. on something that is now a hidden tax priations bills and unrelated measures b 1745 on the American people, something we that must pass. This circumvents the ought to know about. deliberation and debate that is needed Mr. CONDIT. Mr. Chairman, I move As I said earlier, the gentleman from to understand the ramifications. to strike the requisite number of California (Mr. CONDIT) and I worked The fact is that deliberate consider- words, and I rise in opposition to the for a year on this, working with CBO, ation of policy has been homogenized amendment. working with the Parliamentarian’s of- these past years, to the point where we Mr. Chairman, I want to just bring up fice, working folks that actually have have budget, tax, authorization, appro- a point, I spoke a minute ago and I to make this place work day to day, as priation, all in one measure, with no wanted to talk a little bit about the in- we did with the Unfunded Mandates chance to debate, to discuss, no hear- tent of this bill. The intent of this bill Relief Act 3 years ago that dealt with ings, no public participation or under- is to provide information to the Mem- State and local government mandates. standing. It is a bad process, and it bers about the cost of an unfunded We have come up with what we think translates into bad policy. mandate on the private sector. is a balanced approach that actually Just the most recent emergency Since I have been here, maybe it was works because CBO can do this. They spending measure signed by the Presi- different when some of the other Mem- can assess the cost. What they cannot dent includes provisions which would bers, they have been here, maybe they do and, again, to reiterate what my allow the construction of a six-lane found it a little bit different. But I colleague from California just said, highway through the congressionally have found that when someone intro- what they cannot do is they cannot as- designated Petroglyphs National duces a piece of legislation and it goes sess the benefits. The Waxman legisla- Monument. There are other provisions through the process, that they are in- tion is well-intended. Again, he may that allow oil companies who have and troducing that legislation and it is want to spend some time putting to- will drill on public lands to avoid fair passed out of committee and gets to gether something more thoughtful that compensation to the American tax- this floor because somebody thinks it deals with riders, but this is not the payer. has a benefit to this country. We clear- right place or time for this legislation. In the past, our riders have been used ly debate the benefit. I mean, the bene- It will not work. This amendment will to irresponsibly expand the anti-envi- fit is espoused by the author of the bill. not work in the context of the bill that ronmental salvage logging program If it gets out of committee, it is es- the gentleman from California (Mr. that some of my colleagues spoke of, poused by the committee members, the CONDIT) just explained. stall efforts to clean up toxic waste, chairman of the committee, everyone I just feel very strongly that it is and block regulation of radioactive clearly understands that there is a so- time for us to be more accountable contaminants in drinking water, and called benefit. around here. It is time for us to have even derail studies that provide the in- Some Members may disagree and say, good government. It is time for us to formation to craft environmental pol- well, it really does not do that, but know what we are doing. It is time for icy. there is a debate. We do spend a lot of us to legislate with good information. It is apparent, Mr. Chairman, why time talking about the benefit. That is all this says. Just as in the the advocates want to duck debating What we do not talk about and what case of the Unfunded Mandate Relief and voting upon these provisions. The we do not focus on is the hidden cost Act of 3 years ago, we will still con- reason is, they lose. They could not and who is going to pay that cost. And tinue to mandate when it is the will of prevail on the merits. But that is just what the unfunded mandate bill does is this Congress and in the public interest one of the kickers of working in a con- focus on that. It requires this body to to do so, but we will do so with infor- gressional circumstance, where the spend a little bit of time to take a look mation we do not have now. So I want anti-environmental minority of the at what the cost is, who is going to pay to commend my colleague from Cali- majority is able to forcefeed bad pol- the cost. It is sort of a cost-benefit fornia (Mr. CONDIT) for working on this icy, special interest provisions, into analysis, and I think everything that legislation so hard over the last year. must-pass legislation. we do should have a cost-benefit analy- He is the lead sponsor of this legisla- That is why the Waxman amendment sis to it. But that is what this bill does. tion. I urge my colleagues to defeat the would help check this. It would not It provides position. It focuses on that Waxman amendment and to move on to place any burdens on business. It would hidden cost that we do not talk about final passage. not even prevent us from repealing en- too much because we do not want the The CHAIRMAN pro tempore (Mr. vironmental laws if that is the judge- people to know that we are putting a GILLMOR). The question is on the ment of the majority. It just requires mandate on that ultimately is going to amendment offered by the gentleman that we debate and vote on significant cost them some money, cost a business from California (Mr. WAXMAN). legislative provisions that are going to some money. And we know who they The question was taken; and the affect our environment. are going to pass it on to, to the con- Chairman pro tempore announced that Make no mistake about it, Mr. Chair- sumer and the taxpayer. the noes appeared to have it. man. Voting against this Waxman That is what this is about today. Do Mr. WAXMAN. Mr. Chairman, I de- amendment sends our constituents not let anyone else move us in a dif- mand a recorded vote. around the Nation a very important ferent direction. If we want to talk The CHAIRMAN pro tempore. Pursu- message. It speaks louder than all the about the environmental and work pro- ant to House Resolution 426, further rhetoric. That message will be that the grams and all of that, that is fine. We proceedings on the amendment offered regular democratic process does not ought to do that. But we ought to do by the gentleman from California (Mr. matter when Members of the House are that in a thoughtful way and a com- WAXMAN) will be postponed. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3443 AMENDMENT NO. 2 OFFERED BY MR. TRAFICANT right. No amendment that any segment tions and resolutions. All my amend- Mr. TRAFICANT. Mr. Chairman, I of industry opposed could ever be de- ment does is remove the provision of offer an amendment. bated for more than 20 minutes. There the bill that creates a brand new point The CHAIRMAN pro tempore. The would never be such a thing as an open of order against amendments. As I have Clerk will designate the amendment. rule again. said, that provision of the bill will ef- The text of the amendment is as fol- Why do I say that? It is not just hy- fectively shut down all debate. lows: perbole. Under this bill, any Member I am not arguing that Congress never Amendment No. 2 offered by Mr. TRAFI- could raise a point of order against any imposes mandates that are a bad idea. CANT: amendment because he or she believed We do it on occasion and we should not Page 8, after line 11, add the following new that it would cost industry more than do it. I am not arguing that industry is subsection: $100 million. No proof is necessary. It always wrong and that their adversar- (d) ANNUAL CBO REPORTS.—Within 90 cal- could just be a gut reaction. Simply ies are always right. Industry is often- endar days after the end of each fiscal year, times right and their adversaries are the Director of the Congressional Budget Of- raising the point of order would stop fice shall transmit a report to each House of all debate and put the question before oftentimes wrong. Congress of the economic impact of the the House. Indeed, I am a sponsor of a Superfund amendments made by this Act to the Con- A point of order could also be raised reform bill that business groups large gressional Budget Act of 1974 on employment if the Congressional Budget Office had and small have embraced and the envi- and businesses in the United States. not completed a mandate analysis of ronmental groups have questioned. But Mr. TRAFICANT. Mr. Chairman, the amendment. Even though CBO vir- I do not believe that we should restruc- there has been a lot of debate on each tually never does such an analysis, ture the rules of the House so that one side of this issue. A lot of it makes there simply is no time for this to hap- side has the upper hand in every single sense. A lot of it is analytical on what pen. debate. may be, what might be, what could But the sponsors of the bill will say The CHAIRMAN pro tempore. The have, what should have. that their free-ranging industry-based time of the gentleman from New York My amendment is just a straight- point of order creates no problem be- (Mr. BOEHLERT) has expired. forward little piece of legislation that cause the House can overrule it. But (By unanimous consent, Mr. BOEH- LERT was allowed to proceed for 1 addi- says, if this becomes law, what we are let us take a very real and typical ex- tional minute.) debating today, that we do not guess ample. Mr. BOEHLERT. Mr. Chairman, let Three years ago during the Clean what the impact will be, that there me make two final points. First, pri- Water Act debate in 1995, the gen- shall be a report to the Congress ex- vate sector mandates are different tleman from New Jersey (Mr. SAXTON) plaining in detail what the impact of from intergovernmental mandates in and I offered a substitute. That sub- this legislation is on our business, in- many ways but in one in particular. stitute engendered a lengthy debate, it dustry and jobs. It is straightforward. States and localities do not have the went over to the second day, that It is not real fancy. But after it is over clout on Capitol Hill that industry changed some views about the bill and and we begin to compile all of the data does. States and localities needed new aired many concerns, even though the subsequent to this legislation, we will tools to get their views across. That is substitute eventually lost. I might have someone to report to us and give hardly the case with industry. us the impact as it truly affects and if point out that when we went into this, Finally, this is not just an environ- in fact at that point whether the Con- the initial check said we did not have mental matter. Yes, the new rules set gress should either fine tune it, scrap it 100 votes. We ended up with 185 votes. up under H.R. 3534 would have made it or enhance it. Very simple and straight If the debate went longer, we might tougher to pass a Clean Air Act and the forward, I would hope that the commit- have prevailed. Clean Water Act and other landmark Guess what would have happened tee would accept it. bills, but as the gentleman from Iowa under H.R. 3534? We would have had ex- Mr. GOSS. Mr. Chairman, I move to (Mr. GANSKE) pointed out last week actly 10 minutes to put forth our views strike the last word. during debate on H.R. 3534, we will also on such a complicated, far ranging, im- Mr. Chairman, I would be very happy make it hard to pass a bill to help HMO portant issue. to advise the distinguished gentleman patients and to control big tobacco. What is the excuse that is given for from Ohio, whose championship of Remember, the points of order in this limiting debate so sharply? Why do we workers rights is well known, that I bill are available if even just a single want to stifle discussion in a society see no reason not to accept this amend- industry has a complaint with a bill or that prides itself on a marketplace of ment. I think it causes no problem. I amendment. would not oppose it. ideas and in a body that the Constitu- I urge support for my amendment. It The CHAIRMAN pro tempore. The tion designed for maximum airing of is reasonable. It is the middle ground. question is on the amendment offered issues? The reason is that some seg- It will give industry additional clout by the gentleman from Ohio (Mr. ments of industry do not win every sin- on Capitol Hill without shutting down TRAFICANT). gle legislative battle. Guess what? No the amendment process. If you believe The amendment was agreed to. one does. in open debate, vote for my amend- The sponsors say their concern is AMENDMENT OFFERED BY MR. BOEHLERT ment. Mr. BOEHLERT. Mr. Chairman, I that industry’s viewpoint is not heard. Mr. DAVIS of Virginia. Mr. Chair- offer an amendment. But does anyone actually believe that man, I move to strike the last word. I The Clerk read as follows: industry lacks political clout on Cap- would like to ask my colleague from itol Hill? Just take a look at H.R. 3534. Amendment offered by Mr. BOEHLERT: New York, if this amendment were to Page 5, line 21, strike ‘‘amendment’’. We were interested in finding a com- pass, would the bill be acceptable to Page 6, strike lines 15 and 16 and in lines 17 promise on this bill, and we worked the gentleman? and 19 redesignated clauses (iii) and (iv) as very hard to effect a compromise. But Mr. BOEHLERT. Mr. Chairman, will (ii) and (iii) respectively. some industry groups objected to com- the gentleman yield? Mr. BOEHLERT. Mr. Chairman, the promise so the negotiations ended. So Mr. DAVIS of Virginia. I yield to the purpose of this amendment is very sim- industry was able to block a com- gentleman from New York. ple. I want to preserve the ability of promise on a bill that is premised on Mr. BOEHLERT. Mr. Chairman, no, the House to have open debate. the idea that industry has no clout on as a matter of fact, I have some com- H.R. 3534 is advertised as an effort to Capitol Hill. That is a rather telling plaints with the bill. ensure that the House has adequate de- irony. Mr. DAVIS of Virginia. So this would bate on important issues. But its ac- With my amendment, the bill will not make the bill acceptable to the tual effect in some cases would be just still give industry additional tools to gentleman? the opposite. This bill would ensure fight private mandates, tools that Mr. BOEHLERT. It would not. It that no amendment that any segment other interest groups lack. They will would improve the bill, but it would of industry opposed could ever be de- still have new points of order available not make it acceptable in its present bated for more than 20 minutes. That is against bills, conference reports, mo- form. H3444 CONGRESSIONAL RECORD — HOUSE May 19, 1998 Mr. DAVIS of Virginia. Mr. Chair- that it might, might, have the imposi- Mr. PORTMAN. If the gentleman man, I think the gentleman has some tion of a new mandate on business, from Virginia will continue to yield, I merit with this, although the experi- they could just raise a point of order. know the gentleman is very engaged in ence on this legislation with unfunded We would debate it for 10 minutes and this legislation and spent a lot of time mandates, as it pertains to State and 10 minutes only and that would be the on it, and I would like to hear what he local government, has not raised the end of it, and then the House would thinks. specter of problems that the gentleman vote up and down based on very limited Mr. BOEHLERT. One of the things I from New York suggests in his com- debate. have done, in terms of talking about ments here where we have had the op- Mr. DAVIS of Virginia. I share the tractor trailers, I have offered an portunities, through amendment, to gentleman’s concern. That has not amendment to another bill that would raise these objections. been our experience, of course, with the limit the size of tractor-trailers on our I think over a total of five times this unfunded mandates bill as it applies to Nation’s highways for safety. was raised in the last Congress, and it State and local government. Mr. PORTMAN. That is along the has not been dilatory, has not deprived Mr. BOEHLERT. But it is a different lines we tried to do earlier in changing this body of the opportunity to debate set of issues. the subject, but keeping on the subject Mr. DAVIS of Virginia. It is very fully the merits and allow the House to of mandates, seriously, I wonder if the much the same set of issues, but it does debate the particular mandate on the gentleman has a response to that con- not mean that it could not happen and merits. cern. this body would be deprived of that. Mr. CONDIT. I move to strike the The theory of this bill, the actual And so, for that reason, at this point I practice we have seen in the unfunded requisite number of words. am trying to draw the gentleman out a Mr. PORTMAN. Mr. Chairman, will mandates bill that has worked well, is little bit further in terms of his other the gentleman yield? to give committees an incentive to do concerns with this bill that could be Mr. CONDIT. I yield to the gen- their work up front before bills ever perfected in a way that he could ad- tleman from Ohio. reach the floor. By making points of dress this and support the legislation. Mr. PORTMAN. Mr. Chairman, I order not apply to amendments sends Mr. BOEHLERT. Well, I think we thank my colleague and the lead spon- the message that it is all well and good should have more balance in this whole sor of the legislation, the gentleman to do the work on the floor and not in approach to things. I think if we have from California (Mr. CONDIT) for yield- the committee. That is a concern. mandates on the one side, we should ing. I think the gentleman does raise have mandates on the other, if we run I would like to give the gentleman some interesting points that have in- that risk. from New York (Mr. BOEHLERT) the op- trigued me, that, should we accept this Mr. DAVIS of Virginia. Well, let me portunity to discuss the possibility amendment, that in point of fact in a just reply to that. We can do that, but that if we were not to permit the infor- number of instances we might be able CBO cannot really address anything mational requirement to apply to any to have a more full and straightforward but the fiscal costs. The benefits are amendments, would we not, in effect, debate on the amendment. really not within their purview. It is circumvent the intent of the legisla- The question is, if this is a gutting not within their expertise. This has not tion by having an amendment which is amendment, which is what I am afraid been something we have traditionally in essence the legislation, such as a the gentleman is indicating to me, I assigned them to do. manager’s amendment, which some- would be prone to be against it. That is what makes the gentleman times we do consider on the floor, or a Mr. BOEHLERT. Mr. Chairman, if from California’s amendment more dif- substitute amendment for the legisla- the gentleman will continue to yield, it ficult to put in this body, although I tion, and if he had any ideas as to how is not a gutting amendment. I would think that the goal of it is one which I perhaps his amendment could be al- classify it as a perfecting amendment can sympathize with. tered to take into account that possi- because I really think that we should Mr. BOEHLERT. I thank the gen- bility. have full and open debate on some sen- tleman for his comments and appre- Mr. BOEHLERT. Mr. Chairman, will sitive issues here on the floor of the ciate them. the gentleman yield? House. We should not limit debate to 10 Mr. DAVIS of Virginia. In conclu- Mr. CONDIT. I yield to the gen- minutes simply because one Member sion, Mr. Chairman, let me say this tleman from New York. might have a gut feeling. Sometimes amendment is a little contrary to the Mr. BOEHLERT. Mr. Chairman, to gut feelings are correct. I agree with underlying purpose of this legislation. respond to the gentleman from Ohio, Mr. PORTMAN. Mr. Chairman, will that. the manager’s amendment would be the gentleman yield? okay, because that comes from outside b 1800 Mr. DAVIS of Virginia. I yield to the the committee. But I am talking about Mr. DAVIS of Virginia. But the bur- gentleman from Ohio. in the Committee of the Whole, when den would be on the Member who raises Mr. PORTMAN. Mr. Chairman, I ap- we offer amendments, I think we the objection to show the $100 million preciate the gentleman raising the should have the opportunity when questions, and I would ask the author threshold as being met. They would amendments are offered to have a full of the amendment, again, what he have to come armed with those costs and open airing, pros and cons. That would do in a situation where we had a and do their homework ahead of time. helps me in making up my mind as we manager’s amendment on the floor, This could not be raised in a willy- are dealing with some of these very im- nilly fashion without the appropriate where we had a substitute amendment? This is a loophole big enough to drive portant topics. substantive work showing that this But I think the gentleman will con- a very large semi trailer through, be- would have a $100 million cost impact cede that one Member, based upon a cause we could essentially put all the on American businesses. gut reaction or an instinct, and often mandates in the manager’s amendment Mr. BOEHLERT. We would not have gut reactions and instincts are correct or the substitute amendment and it but often they are not, could raise a scoring of amendments. That is the would have gotten around the informa- problem. We would not have the time tional requirements in the legislation. point of order against the amendment, to do that. When we have extended de- I wonder if the gentleman has and then the Chair would automati- bate on a very controversial item, thought through that scenario or that cally have to limit debate to 10 min- sometimes during the debate, in the possibility and what his response would utes and there would be a vote. And I course of that debate proponents or op- be. would be called upon, as would the gen- ponents bring out something that Mr. BOEHLERT. Mr. Chairman, will tleman would be called upon and our prompts an individual to draft an the gentleman yield? colleagues would be called upon to amendment that might be an amend- Mr. DAVIS of Virginia. I yield to the make a decision on a very important ment to improve a bill. gentleman from New York. amendment with very limited input, But the fact of the matter is, if some- Mr. BOEHLERT. Indeed, I have. I and I do not want that. I want to ex- one has the gut feeling, as I pointed have spent a lot of time anticipating pand the knowledge that we have as a out, and not facts but just a gut feeling that. base to make decisions. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3445 Mr. PORTMAN. Again, Mr. Chair- Mr. CONDIT. I yield to the gen- mittee on Rules and the ability to man, if the gentleman will continue to tleman from New York. manage debate on a bill on the floor. yield, I understand what the gentleman Mr. BOEHLERT. Mr. Chairman, the The gentleman’s amendment not only is trying to get at, and certainly agree gentleman is referring to other than creates huge loopholes in this bill, we that that is a concern. the manager’s amendment? might as well not even have the bill. I would also remind the gentleman Mr. CONDIT. Other than the man- But if we could narrow it down to a that the gentleman from Virginia (Mr. ager’s amendment. specific type of amendment, then DAVIS) has already mentioned that our Mr. BOEHLERT. If the gentleman maybe we could work with the gen- experience in the Unfunded Mandate will continue to yield, if he wants to tleman and even accept his amend- Relief Act of 1995, which has been in work that language out right now, I ment. place for almost 3 years, is in fact what would be glad to accept that. Mr. BOEHLERT. If my colleague will happens is at the committee level we Mr. DELAY. Mr. Chairman, I move to continue to yield, I would like to point come up with better legislation. And strike the requisite number of words. out this is not, as it has been charac- that indeed when we talk about the I appreciate and say to my friend, the terized, a gutting amendment. What we mandate, and this is public sector man- gentleman from New York, that I rise are trying to do is ensure that an dates, albeit it is 10 minutes on each in opposition to his amendment al- amendment proposed on the floor has a side, the debate tends to be about though I can see where he would like to full and open airing so that our col- whether to move forward with the leg- go with this amendment. And I would leagues will have the benefit of the islation because of the benefits. In think that we could work something thinking of the proponent and the op- other words, we do not just focus on out if we had time to work something ponents of the amendment. The bill’s the cost. out. resolutions, as provided for in the base So I would say it has not been a prob- But I have to say that the gentle- bill, would still be subject to a point of lem in our experience with the Un- man’s amendment guts this bill. It order. funded Mandates Relief Act that passed completely guts the intent of this bill. The fact of the matter is, character- 3 years ago that dealt with the public The whole intent is to provide some izing something as a gutting amend- sector. With the private sector, there process by which we can bring to the ment does not, in fact, mean it is a may be the possibility for some addi- light of day a visible opportunity to gutting amendment. That is not my in- tional concerns. discuss the fact that what we do in this tent, to gut the bill. My intent is to I also would remind the gentleman Chamber has a direct impact on the improve the bill. that with regard to private sector man- private sector of this country. That is Mr. DELAY. Mr. Chairman, I appre- dates, two things are different. One is what this is about. ciate the gentleman’s support for the that the threshold is raised to $100 mil- If we have a situation here where the bill, but the way we read it, and cer- lion from $50 million, so it will apply to gentleman’s amendment became part tainly the way the Committee on Rules fewer mandates. Second is that one of the bill, then there is no use of hav- reads it and the Committee on Rules must consolidate the point of order. ing debate, because we could play all staff reads it, is that the gentleman’s In other words, we cannot have a kinds of shenanigans with a bill to try amendment is so broad and includes so point of order on every private man- to put the House in the position of not date that is in a piece of legislation or, much that it, in effect, does kill the en- implementing the intent of this bill, for that matter, in an amendment. In- tire intent of the bill and the whole because all we have to do is pull the stead, we have to consolidate all of reason for the bill. substantive stuff out of a bill, offer it So unless we can work something those various point of order mandates as a committee substitute or as a man- out, I would urge our Members to vote into one point of order and then have ager’s amendment, and we negate the the debate. That is to avoid the dila- against the gentleman’s amendment. whole reason for the bill. Mr. SOLOMON. Mr. Chairman, I tory tactics that some were concerned So I just hope that we can work with move to strike the requisite number of about with regard to this legislation. So it is a little different from that, in the gentleman. I think there is a way words. a sense provides even more safeguards, that we can work this out. I under- Mr. Chairman, the sponsor of this but if the gentleman would be willing stand and sympathize with the gen- amendment happens to be a very good to talk about the possibility of taking tleman from New York that he does friend of mine. His district borders out of consideration these broad-based not want to stifle debate. Nor do I. But mine. But I just have to severely ad- amendments that would, in effect, be I would say to the gentleman from New monish him for bringing this kind of the legislation, maybe there is a way York that we could probably fashion an amendment to the floor. we can resolve this. amendment that looks at, say, for in- The gentleman represents a district Mr. BOEHLERT. Mr. Chairman, I stance, amendments that are not print- just like mine. I have more small busi- would be glad to accept a perfecting ed in the RECORD or amendments that nesses in my district up and down the amendment dealing with a manager’s are just brought to the floor ad Hudson Valley and the Catskill Moun- amendment so that the gentleman’s hominem. But to exclude all amend- tains, the Adirondack Mountains, prob- concern would be addressed. ments from a bill slows down and vio- ably than any of my colleagues. But all Mr. PORTMAN. Mr. Chairman, I lates the spirit of debate. of my colleagues have literally thou- would like to yield back to my col- Mr. BOEHLERT. Mr. Chairman, will sands of small businesses. If my col- league from California, who is again the gentleman yield? leagues have been a town mayor, as I the lead sponsor of this legislation, to Mr. DELAY. I yield to the gentleman have, or a town supervisor or a county get his thoughts. from New York. legislator or even a State legislator, Mr. CONDIT. Mr. Chairman, reclaim- Mr. BOEHLERT. Mr. Chairman, as I they know what Federal mandates do ing my time, I agree with the gen- have said, we have agreed, we have to small businesses. tleman from Ohio. I do have a problem agreed based upon the colloquy I had First of all, if we do it to the public with the manager’s amendment. If we with the gentleman from Ohio, to in- sector, to the towns and the villages come in with a very broad amendment, clude the manager’s amendment in the and the cities and the counties, we we could undercut the very intention exemption. raise property taxes. We have got peo- of the unfunded mandate legislation in Mr. DELAY. Reclaiming my time, I ple living on fixed incomes that cannot that if it did not qualify for a point of understand, and appreciate the gen- afford to pay the taxes today on their order, it could put all kinds of man- tleman trying to work with us. I appre- property. We fixed that several years dates and costs on. And that would be- ciate that offer. But there is also com- ago, because we said if we were going come a little unworkable, I think. mittee substitutes, where a committee to levy a Federal mandate on local If we could perfect this so that we would bring to the floor and the oppor- governments that forces up real estate were talking about other amendments, tunity for a committee. taxes, then we would have to come on I certainly would be open. I see the chairman of the Committee this floor and we would have a separate Mr. BOEHLERT. Mr. Chairman, will on Rules is coming to the floor. He un- vote, just so that the American people the gentleman yield? derstands what this does to the Com- can see what we are doing and, more H3446 CONGRESSIONAL RECORD — HOUSE May 19, 1998 than that, Members themselves can see going to know what they are voting on the closing quotation marks insert ‘‘and by what they are doing. Because if we over here. inserting mandate or removing, preventing have not served in local government or All we are saying is, let us have a the imposition of, prohibiting the use of ap- county government, sometimes we may rollcall and get the Members over here, propriate funds to implement, or making less stringent any such mandate established to not know what that is. So now that is and let us point out the mandate that protect civil rights’ ’’. taken care of. is coming to them. And then all the Page 7, line 12, strike ‘‘one point’’ and in- Now let us take a look at the small time they are considering the merit of sert ‘‘two points’’ and on line 14, insert after businesses. I will never forget when I the bill, then they will keep in mind ‘‘(a)(2)’’ the following: ‘‘with only one point was a small businessman just starting that there is a mandate out there. The of order permitted for provisions which im- out, and I had a wife and five children, gentleman knows that is exactly how pose new Federal private sector mandates and we could hardly make it as it was it works. and only one point of order permitted for I am Chairman of the Committee on provisions which remove, prevent imposition because my wife and I chose to have of, prohibit the use of appropriated funds to her stay home with those children all Rules. I have been a member of that implement,or make less stringent Federal the time they were growing up, and it Committee for 10 years. I know the private section mandates.’’. was rough. And every time I turned rules of this House. And I would tell Mr. BECERRA (during the reading). around it seemed like we had either the the membership, on behalf of local Mr. Chairman, I ask unanimous con- State government or the Federal Gov- businesses across this Nation, if they sent that the amendment be considered vote for the Boehlert amendment, they ernment coming in with some kind of a as read and printed in the RECORD. mandate that took money out of my are voting to gut this legislation. And The CHAIRMAN pro tempore. Is business which we did not even have, I would be tempted to pull the legisla- there objection to the request of the and we had to give it to the govern- tion and take it off the floor if that gentleman from California? ment to pay for those Federal man- were the case. There was no objection. dates. Well, if we had had this kind of Please come over here and vote no on Mr. BECERRA. Mr. Chairman, I yield a rule on the floor back 30 years ago, I the Boehlert amendment. Vote for myself such time as I may consume. probably would have been a lot more small businesses that create 75 percent Let me explain my amendment briefly. successful than I am. of all the new jobs in America every We have entered into a debate And all we are saying today is that in single year. through the amendment by my col- the private sector, if we want to vote All the kids graduating from high league and friend from California (Mr. to levy a mandate on the private sec- school this coming month in June, all WAXMAN) on the issue of what happens tor, on private businesses, then we of them graduating from college, 75 when a particular bill or a piece of leg- ought to have a separate debate on it percent of those jobs being offered to islation has the effect of weakening on the floor here, just sort of like we those kids are going to be from small protections for the environment or are doing right now. Now, what is businesses; and this will help to keep public health and safety, and we had wrong with that? What is wrong with it those small businesses profitable so some discussion on that amendment. is nothing. they can hire them. Vote no on the If my colleagues look at the legisla- My good friend comes in here and, Boehlert amendment, and then let us tion that we are discussing now and we unlike the public sector, now he wants pass this measure. now relate that same type of debate or to do something to the small business- The CHAIRMAN pro tempore (Mr. discussion on the issue of civil rights, man. GILLMOR). The question is on the what we find is that this legislation ac- amendment offered by the gentleman tually would permit, permit, this Con- b 1815 from New York (Mr. BOEHLERT). gress to establish laws that will weak- He wants to say that if anybody The question was taken; and the en our current civil rights protections brings an amendment on this floor and Chairman pro tempore announced that that we provide to the American pub- offers it to a bill, that that does not the noes appeared to have it. lic. count because it was not in the bill in Mr. BOEHLERT. Mr. Chairman, I de- Let me give my colleagues a quick the first place. Well, my colleagues, mand a recorded vote. example of what I mean. that is a gutting amendment. The CHAIRMAN pro tempore. Pursu- In both fair employment and housing Mr. BOEHLERT. Mr. Chairman, will ant to House resolution 426, further law, there are exemptions made for the gentleman yield? proceedings on the amendment offered small businesses. A small business is Mr. SOLOMON. I yield to the gen- by the gentleman from New York (Mr. defined as having fewer than 15 em- tleman from New York. BOEHLERT) will be postponed. ployees. If we have legislation which Mr. BOEHLERT. Mr. Chairman, two AMENDMENT OFFERED BY MR. BECERRA attempted to broaden the definition of things. One, I have served in local gov- Mr. BECERRA. Mr. Chairman, I offer a small business to, say, 50 employees, ernment as a former county executive, an amendment. in other words, something more than 15 so I know whereof he speaks. Secondly, The Clerk read as follows: employees, what we would do is we I am not suggesting that proposed Amendment offered by Mr. BECERRA: would now be excluding from civil mandates are good or bad. Some are Page 6, line 5, after ‘‘exceeded’’ insert ‘‘or rights laws and protections a whole good. Some are bad. that would remove, prevent the imposition array, many, many more businesses The only thing I am trying to protect of, prohibit the use of appropriated funds to implement, or make less stringent any such that now have up to 50 employees. is the opportunity for full and open de- mandate established to protect civil rights’’. Where, right now, under current law, bate on the floor of the people’s House. Page 6, after line 5, insert the following those businesses that have between 16 What could be wrong with that? new paragraph and renumber the succeeding and 50 employees would have the civil Mr. SOLOMON. Mr. Chairman, re- paragraphs accordingly: rights laws in the books applied to claiming my time, because the gen- (4) MODIFICATION OR REMOVAL OF CERTAIN them; with this legislation, that would tleman knows that if his amendment MANDATES.—(A) Section 424(b)(1) of such Act no longer be the case. goes through, there will never be that is amended by inserting ‘‘or if the Director I do not believe it is the intent of the finds the bill or joint resolution removes, debate on the mandate itself. And that prevents the imposition of, prohibits the use authors of this legislation or of anyone is where we missed the boat all these of appropriated funds to implement, or in this Congress to weaken civil rights years. We need to have that 20-minute makes less stringent any Federal private protections for the elderly, for the in- debate so it sets the parameters so we sector mandate established to protect civil firm, the disabled, for minorities that know what we are going to vote on. rights’’ after ‘‘such fiscal year’’ and by in- have been discriminated over the past, Like, right now, how many Members serting ‘‘or identify any provision which re- other people based on religion. I do not are on this floor right now? Maybe 25, moves, prevents the imposition of, prohibits believe that is the intent of this Con- if that. Where are the other 400 Mem- the use of appropriated fund to implement, gress. Yet the legislation, as it is writ- or makes less stringent any Federal private bers? They have no idea what is going sector mandate established to protect civil ten, would allow that to happen. on here. And nine times out of ten, rights’’ after ‘‘the estimate’’. Why do I say that? Well, if my col- when we come to a bill with an un- Page 6, lines 14, 16, 18, and 20, after ‘‘inter- leagues recall when we had the debate funded mandate in it, they are not governmental’’ insert ‘‘mandated’’ and after on the Unfunded Mandates Reform Act, May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3447 when it was passed last session, a num- Unfunded Mandates Relief Act of 1995, this, and our commitment to the gen- ber of us raised this concern that we exclude all civil rights, all constitu- tleman to try to work out a solution is would make it nearly impossible to en- tionally protected rights. And that is there. force and protect civil rights laws, con- very clear. And I think that carve-out Mr. BECERRA. Mr. Chairman, will stitutional protections and other mat- was appropriate, although it was de- the gentleman yield? ters with the legislation had it been bated, as some will remember, 3 years Mr. PORTMAN. I yield to the gen- drafted back then a couple years ago. ago; and I think that is appropriate. tleman from California. We got included in the legislation the What this legislation would purport Mr. BECERRA. Mr. Chairman, I Unfunded Mandates Reform Act legis- to do or this amendment would purport thank my friend, the gentleman from lation that, in essence, said, we cannot to do is to go well beyond that and say Ohio (Mr. PORTMAN), for yielding; and I apply this unfunded mandates law on that, any time there is a determination also thank my friend from California bills that try to enforce constitutional by somebody that there has been a (Mr. CONDIT) for his words. rights of individuals or attempt to es- diminution of some kinds of rights, I appreciate what the gentleman tablish or enforce any statutory rights then there be a point of order. from California has just said. And I that prohibit discrimination. So no Again, it may be a good idea to do if agree. I do not think it is the intent of points of order would lie against legis- the gentleman would like to sit down anyone, whether it is the sponsors or anyone who would vote on this legisla- lation that tried to do exactly that, en- and work on some legislation. It took tion, to diminish, to weaken civil force constitutional rights or establish Mr. CONDIT and I about a year to come up with this legislation on private-sec- rights protections. or enforce statutory rights that pro- But I think, and we can always sit tor mandates. There might be some hibit discrimination. down and discuss this further. I believe But we have a situation here where way to do it. But it does not fit into if we read closely what is clearly cov- now we are not necessarily trying to this legislation. ered under the law under the Unfunded CBO is not able to do this. It is not enforce the law. In this case, if legisla- Mandates Reform Act and what the their job. They do cost analysis and tion comes forward which tries to di- legislation we have before us do in tan- budget. That is who we are relying on minish the impact of that law, weaken- dem is it would permit legislation that here. ing that law, as the example I gave be- would weaken civil rights protections. fore where we went from considering a And if we learned anything in the ex- Because the Unfunded Mandates Re- small business to mean only 15 or fewer perience of the Unfunded Mandates Re- form Act only spoke about laws that employees in a business to now 50 or lief Act over the last 3 years, and it has establish or enforce; it did not talk fewer employees in a business, by worked well, it is that we need to about laws that weaken. So laws that weakening that law, what we have clearly define the terms. We need to weaken are permitted to go through done is weakened civil rights protec- have the minimum of ambiguity and this process without coverage to the tions. the maximum of clear, concise defini- Unfunded Mandates Reform Act. I do not believe that that is the in- tions to be able to make this work Mr. PORTMAN. Reclaiming my time tent of this legislation and its spon- right so that at the committee level we for a moment, let us back up and talk sors. I would hope that Congress would come up with better legislation that about the fundamental philosophy on not intend to go in that direction. And does not mandate on State and local this legislation. This is with regards to I offer this amendment to try to ad- government and now with this legisla- new mandates on business. The pre- dress that concern and hope that it can tion mandate on the private sector vious legislation was new mandates on be unanimously accepted by this body. without fully understanding the cost the public sector. Mr. Chairman, if I could give one last and coming up with the least costly We chose to carve out the situation example to, hopefully, make this as way to achieve the same results. of constitutionally protected rights or clear as possible. I would just say to the gentleman it civil rights. In other words, even if Right now, under the Americans is an interesting idea. Maybe there is there is a new mandate on the public With Disabilities Act, the ADA, a dis- some legislation that could be crafted sector, it is not subject to this infor- abled individual who may have to use a to achieve his objective. But this is not mational requirement if it relates to wheelchair is entitled to be able to ac- the place to do it. civil rights. In other words, it is a cess a public place. And if there is a Mr. CONDIT. Mr. Chairman, will the carve-out; it protects it. business that wants to open itself up to gentleman yield? The gentleman just made the asser- the public, it must also make itself Mr. PORTMAN. I yield to the gen- tion that somehow this legislation available to disabled who are in wheel- tleman from California. could affect civil rights law negatively chairs. Mr. CONDIT. Mr. Chairman, I thank by diminishing civil rights. It would Well, if we had legislation that at- the gentleman for yielding. have no impact on that. This legisla- tempted to remove the ramp-access re- I want to join with the gentleman tion would not apply. In fact, this leg- quirements for disabled, that currently from Ohio (Mr. PORTMAN) in opposition islation goes out of its way to make would not be protected under the Un- to this amendment. We were very sen- sure that we are not going to put any funded Mandates Reform Act. This leg- sitive to this issue. We did exempt it barriers in place of any kinds of civil islation would now make it possible to out of the bill. The civil rights issue rights. remove those standards and weaken was exempted out of the bill. There is a legitimate debate we the laws. After our last experience about 3 would have as to whether we should So, for those reasons, I would ask years ago, we had a healthy debate have excluded included all civil rights Members to consider this amendment about it and we tried to be conscien- from the requirements on this bill. and adopt it unanimously. tious about it and be sensitive. My col- After all, it is just informational. But Mr. PORTMAN. Mr. Chairman, I rise league is right. It was not our intent to we thought civil rights is so important to reluctantly oppose the amendment. change the civil rights law, to do any- and it is defined as constitutionally We are just looking at the language thing to weaken them; and I do not be- protected rights that we did not sub- over here. lieve that is the intent of anybody in ject it to the information requirements But, in essence, what this does, as I this room. in this legislation. see it, is it builds on the Waxman So I would oppose the amendment. The situation that the gentleman is amendment we debated previously re- Although I would tell my colleague describing of diminishing civil rights garding the environment and says that, from California, I would be delighted if simply would not be affected by this with regard to any civil right or con- he has got a proposal like the gen- legislation one way or the other. stitutionally protected right where tleman from California (Mr. WAXMAN) The CHAIRMAN pro tempore. The there is a lessening of some require- that we can perfect and work on. I am time of the gentleman from Ohio (Mr. ment, that there be a point of order. open to do that. But I think today to PORTMAN) has expired. Again, it is not what this legislation bring this up, it does not fit with what (By unanimous consent, Mr. is about. We specifically in the legisla- we are doing. And our efforts I think PORTMAN was allowed to proceed for 1 tion, the underlying bill, which is the are honorable in saying that we exempt additional minute.) H3448 CONGRESSIONAL RECORD — HOUSE May 19, 1998 Mr. PORTMAN. Mr. Chairman, I A recorded vote was ordered. Hansen McInnis Scarborough Hastert McIntosh Schaefer, Dan yield to the gentleman from California The vote was taken by electronic de- Hastings (WA) McIntyre Schaffer, Bob (Mr. BECERRA). vice, and there were—ayes 176, noes 233, Hayworth McKeon Sensenbrenner b not voting 23, as follows: Hefley Metcalf Sessions 1830 Herger Mica Shadegg Mr. BECERRA. Mr. Chairman, I [Roll No. 156] Hill Miller (FL) Shaw thank the gentleman. I do not think we AYES—176 Hilleary Moran (KS) Shays Hobson Myrick Sherman Abercrombie Hall (OH) Nadler will need the time. Hoekstra Nethercutt Shimkus Ackerman Hall (TX) Neal Mr. PORTMAN. Mr. Chairman, re- Horn Neumann Sisisky Allen Hastings (FL) Oberstar Hostettler Ney Skeen claiming my time, I think it is irrele- Andrews Hefner Obey Houghton Northup Smith (MI) vant to what we are debating today be- Baldacci Hilliard Olver Hulshof Norwood Smith (NJ) Barcia Hinchey Ortiz cause it does not affect a diminution of Hunter Nussle Smith (OR) Barrett (WI) Hinojosa Owens civil rights one way or the other; and, Hutchinson Oxley Smith (TX) Becerra Holden Pallone Hyde Packard Smith, Linda specifically, civil rights were excluded Bentsen Hooley Pascrell Istook Pappas Snowbarger Berman Hoyer Pastor from the requirement of information Jenkins Parker Solomon Berry Jackson (IL) Payne that is in the legislation. John Paul Souder Bishop Jackson-Lee Pelosi Mr. BECERRA. But if we gauge in a Johnson (CT) Pease Spence Blagojevich (TX) Pomeroy Johnson, Sam Peterson (MN) Stearns discussion and find that the legislation Blumenauer Jefferson Poshard Jones Peterson (PA) Stenholm Bonior Johnson, E. B. Price (NC) does affect and the law as it exists does Kasich Petri Stump Borski Kanjorski Rahall affect those civil rights protections, Kelly Pickering Sununu Boucher Kaptur Rangel Kim Pickett Talent would the gentleman be willing, or I Boyd Kennedy (MA) Reyes King (NY) Pitts Tanner ask the two sponsors, will they be will- Brown (CA) Kennedy (RI) Rivers Kingston Pombo Tauzin Brown (FL) Kennelly Rodriguez ing to then incorporate language to Klug Porter Taylor (NC) Brown (OH) Kildee Roybal-Allard make sure that we do not weaken civil Knollenberg Portman Thomas Capps Kilpatrick Rush Kolbe Pryce (OH) Thornberry rights protections. Cardin Kind (WI) Sabo LaHood Quinn Thune Mr. PORTMAN. The gentleman from Carson Kleczka Sanchez Largent Radanovich Tiahrt Clayton Klink Sanders California (Mr. CONDIT) has expressed Latham Ramstad Turner Clement Kucinich Sawyer my views on this; we are happy to sit LaTourette Redmond Upton Clyburn LaFalce Scott Lazio Regula Walsh down and have a dialogue about it. Condit Lampson Serrano Leach Riggs Wamp The CHAIRMAN pro tempore (Mr. Conyers Lantos Skelton Lewis (CA) Riley Watkins Costello Lee Slaughter GILLMOR). The question is on the Lewis (KY) Roemer Watts (OK) Coyne Levin Smith, Adam Linder Rogers Weldon (FL) amendment offered by the gentleman Cummings Lewis (GA) Snyder LoBiondo Rohrabacher Weldon (PA) from California (Mr. BECERRA). Davis (FL) Lipinski Spratt Lucas Ros-Lehtinen Weller Davis (IL) Lofgren Stabenow The question was taken; and the Maloney (CT) Rothman White DeFazio Lowey Stark Chairman pro tempore announced that Manzullo Roukema Whitfield DeGette Luther Stokes McCarthy (NY) Royce Wicker the noes appeared to have it. Delahunt Maloney (NY) Strickland McCollum Salmon Wolf Mr. BECERRA. Mr. Chairman, I de- DeLauro Manton Stupak McCrery Sandlin Young (AK) Deutsch Markey Tauscher mand a recorded vote. McDade Sanford Young (FL) Dicks Martinez Taylor (MS) The CHAIRMAN pro tempore. Pursu- McHugh Saxton ant to House Resolution 426, further Dingell Mascara Thompson Dixon Matsui Thurman NOT VOTING—23 proceedings on the amendment offered Doggett McCarthy (MO) Tierney Baesler Gonzalez Meeks (NY) by the gentleman from California (Mr. Doyle McDermott Torres Bateman Goodling Paxon Engel McGovern Towns BECERRA) will be postponed. Clay Greenwood Rogan Eshoo McHale Traficant Crane Harman Ryun SEQUENTIAL VOTES POSTPONED IN COMMITTEE Etheridge McKinney Velazquez Ewing Inglis Schumer OF THE WHOLE Evans Meehan Vento Fattah Johnson (WI) Shuster Farr Meek (FL) Visclosky The CHAIRMAN pro tempore. Pursu- Ganske Livingston Skaggs Fazio Menendez Waters ant to House Resolution 426, proceed- Gibbons McNulty Filner Millender- Watt (NC) ings will now resume on those amend- Ford McDonald Waxman b 1853 ments on which further proceedings Frank (MA) Miller (CA) Wexler were postponed in the following order: Frost Minge Weygand Messrs. MCINTOSH, WELDON of The amendment, as modified, offered Furse Mink Wise Florida, SPRATT and FORBES Gejdenson Moakley Woolsey changed their vote from ‘‘aye’’ to ‘‘no.’’ by the gentleman from Massachusetts Gephardt Mollohan Wynn (Mr. MOAKLEY); the amendment offered Gordon Moran (VA) Yates Messrs. GORDON, SPRATT and STU- by the gentleman from California (Mr. Green Morella PAK and Mrs. CAPPS changed their Gutierrez Murtha WAXMAN); the amendment offered by vote from ‘‘no’’ to ‘‘aye.’’ the gentleman from New York (Mr. NOES—233 So the amendment was rejected. The result of the vote was announced BOEHLERT); and the amendment offered Aderholt Camp Duncan by the gentleman from California (Mr. Archer Campbell Dunn as above recorded. Armey Canady Edwards PERSONAL EXPLANATION BECERRA). Bachus Cannon Ehlers The Chair will reduce to 5 minutes Baker Castle Ehrlich Mr. GIBBONS. Mr. Chairman, on rollcall no. the time for any electronic vote after Ballenger Chabot Emerson 156, I was unavoidably detained. Had I been the first vote in this series. Barr Chambliss English present, I would have voted ``no.'' Barrett (NE) Chenoweth Ensign AMENDMENT, AS MODIFIED, OFFERED BY MR. Bartlett Christensen Everett PERSONAL EXPLANATION MOAKLEY Barton Coble Fawell Mr. INGLIS of South Carolina. Mr. Chair- The CHAIRMAN pro tempore. The Bass Coburn Foley man, on rollcall no. 156, I was inadvertently pending business is the demand for a Bereuter Collins Forbes Bilbray Combest Fossella detained. Had I been present, I would have recorded vote on the amendment, as Bilirakis Cook Fowler voted ``no.'' modified, offered by the gentleman Bliley Cooksey Fox f from Massachusetts (Mr. MOAKLEY), on Blunt Cox Franks (NJ) which further proceedings were post- Boehlert Cramer Frelinghuysen ANNOUNCEMENT BY THE Boehner Crapo Gallegly CHAIRMAN PRO TEMPORE poned and on which the noes prevailed Bonilla Cubin Gekas by voice vote. Bono Cunningham Gilchrest The CHAIRMAN pro tempore (Mr. The Clerk will designate the amend- Boswell Danner Gillmor GILLMOR). Pursuant to House Resolu- Brady Davis (VA) Gilman ment. Bryant Deal Goode tion 426, the Chair announces that he The Clerk designated the amend- Bunning DeLay Goodlatte will reduce to a minimum of 5 minutes ment. Burr Diaz-Balart Goss the period of time within which a vote Burton Dickey Graham RECORDED VOTE by electronic device will be taken on Buyer Dooley Granger The CHAIRMAN pro tempore. A re- Callahan Doolittle Gutknecht each amendment on which the Chair corded vote has been demanded. Calvert Dreier Hamilton has postponed further proceedings. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3449 AMENDMENT OFFERED BY MR. WAXMAN Bliley Hansen Pitts poned and on which the noes prevailed Blunt Hastert Pombo The CHAIRMAN pro tempore. The Boehner Hastings (WA) Pomeroy by voice vote. pending business is the demand for a Bonilla Hayworth Porter The Clerk will designate the amend- recorded vote on the amendment of- Bono Hefley Portman ment. fered by the gentleman from California Boyd Herger Pryce (OH) The Clerk designated the amend- Brady Hill Quinn (Mr. WAXMAN) on which further pro- Bryant Hilleary Radanovich ment. ceedings were postponed, and on which Bunning Hobson Redmond RECORDED VOTE the noes prevailed by voice vote. Burr Hoekstra Regula Burton Hostettler Riggs The CHAIRMAN pro tempore. A re- The Clerk will designate the amend- Buyer Houghton Riley corded vote has been demanded. ment. Callahan Hulshof Roemer A recorded vote was ordered. The Clerk designated the amend- Calvert Hunter Rogers The vote was taken by electronic de- Camp Hutchinson Rohrabacher ment. Campbell Hyde Ros-Lehtinen vice, and there were—ayes 189, noes 223, RECORDED VOTE Canady Inglis Royce not voting 20, as follows: Cannon Istook Salmon [Roll No. 158] The CHAIRMAN pro tempore. A re- Castle Jenkins Sandlin corded vote has been demanded. Chabot John Sanford AYES—189 A recorded vote was ordered. Chambliss Johnson, Sam Scarborough Abercrombie Hefner Nadler The vote was taken by electronic de- Chenoweth Jones Schaefer, Dan Ackerman Hilliard Neal Christensen Kasich Schaffer, Bob Allen Hinchey Oberstar vice, and there were—ayes 190, noes 221, Coble Kim Sensenbrenner Andrews Hinojosa Obey not voting 21, as follows: Coburn King (NY) Sessions Baldacci Holden Olver Collins Kingston Shadegg [Roll No. 157] Barrett (WI) Hooley Owens Combest Klug Shaw Becerra Horn Pallone AYES—190 Condit Knollenberg Shimkus Bentsen Hoyer Pascrell Cook Kolbe Sisisky Abercrombie Hall (OH) Moran (VA) Berman Jackson (IL) Pastor Cooksey LaHood Skeen Ackerman Hastings (FL) Morella Blagojevich Jackson-Lee Payne Cox Largent Skelton Allen Hefner Murtha Blumenauer (TX) Pelosi Cramer Latham Smith (MI) Andrews Hilliard Nadler Boehlert Jefferson Petri Crapo LaTourette Smith (OR) Baldacci Hinchey Neal Bonior Johnson (WI) Pomeroy Cubin Lewis (CA) Smith (TX) Barcia Hinojosa Oberstar Borski Johnson, E. B. Porter Cunningham Lewis (KY) Smith, Linda Barrett (WI) Holden Obey Boswell Kanjorski Poshard Danner Linder Snowbarger Becerra Hooley Olver Boucher Kaptur Quinn Davis (FL) Lucas Snyder Bentsen Horn Ortiz Brown (CA) Kelly Rahall Deal Manzullo Solomon Berman Hoyer Owens Brown (FL) Kennedy (MA) Ramstad DeLay McCollum Souder Bilbray Jackson (IL) Pallone Brown (OH) Kennedy (RI) Rangel Diaz-Balart McCrery Spence Blagojevich Jackson-Lee Pascrell Capps Kennelly Rivers Dooley McDade Stearns Blumenauer (TX) Pastor Cardin Kildee Rodriguez Doolittle McHugh Stenholm Boehlert Jefferson Payne Carson Kilpatrick Rothman Dreier McInnis Stump Bonior Johnson (CT) Pelosi Castle Kind (WI) Roukema Duncan McIntosh Sununu Borski Johnson (WI) Poshard Clayton Kleczka Roybal-Allard Dunn McIntyre Talent Boswell Johnson, E. B. Price (NC) Clement Klink Rush Edwards McKeon Tanner Boucher Kanjorski Rahall Clyburn Kucinich Sabo Ehlers Metcalf Tauzin Brown (CA) Kaptur Ramstad Conyers LaFalce Sanchez Ehrlich Mica Taylor (MS) Brown (FL) Kelly Rangel Costello Lampson Sanders Emerson Miller (FL) Taylor (NC) Brown (OH) Kennedy (MA) Reyes Coyne Lantos Sawyer English Minge Thomas Capps Kennedy (RI) Rivers Cummings LaTourette Saxton Ensign Moran (KS) Thornberry Cardin Kennelly Rodriguez Davis (IL) Leach Scott Everett Myrick Thune Carson Kildee Rothman DeFazio Lee Serrano Fawell Nethercutt Tiahrt Clayton Kilpatrick Roukema DeGette Levin Shays Foley Neumann Traficant Clement Kind (WI) Roybal-Allard Delahunt Lewis (GA) Slaughter Fossella Ney Turner Clyburn Kleczka Rush DeLauro Lipinski Smith (NJ) Fowler Northup Upton Conyers Klink Sabo Deutsch LoBiondo Smith, Adam Gallegly Norwood Wamp Costello Kucinich Sanchez Dicks Lofgren Spratt Gekas Nussle Watkins Coyne LaFalce Sanders Dingell Lowey Stabenow Gibbons Oxley Watts (OK) Cummings Lampson Sawyer Dixon Luther Stark Gillmor Packard Weldon (FL) Davis (IL) Lantos Saxton Doggett Maloney (NY) Stokes Goode Pappas Weldon (PA) Davis (VA) Lazio Scott Doyle Manton Strickland Goodlatte Parker Weller DeFazio Leach Serrano Ehlers Markey Stupak Gordon Paul White DeGette Lee Shays Engel Martinez Tauscher Goss Pease Whitfield Delahunt Levin Sherman Eshoo Mascara Thompson Graham Peterson (MN) Wicker DeLauro Lewis (GA) Slaughter Etheridge Matsui Thurman Granger Peterson (PA) Wolf Deutsch Lipinski Smith (NJ) Evans McCarthy (MO) Tierney Gutknecht Petri Young (AK) Dicks LoBiondo Smith, Adam Farr McCarthy (NY) Torres Hall (TX) Pickering Young (FL) Dingell Lofgren Spratt Fawell McDade Towns Hamilton Pickett Dixon Lowey Stabenow Fazio McDermott Upton Doggett Luther Stark NOT VOTING—21 Filner McGovern Vela´ zquez Doyle Maloney (CT) Stokes Forbes McHale Vento Engel Maloney (NY) Strickland Baesler Ganske Meeks (NY) Ford McKinney Visclosky Eshoo Manton Stupak Bateman Gonzalez Paxon Frank (MA) Meehan Walsh Etheridge Markey Tauscher Clay Goodling Rogan Franks (NJ) Meek (FL) Waters Evans Martinez Thompson Crane Greenwood Ryun Frelinghuysen Menendez Watt (NC) Farr Mascara Thurman Dickey Harman Schumer Frost Millender- Waxman Fazio Matsui Tierney Ewing Livingston Shuster Furse McDonald Weldon (PA) Filner McCarthy (MO) Torres Fattah McNulty Skaggs Gejdenson Miller (CA) Wexler Forbes McCarthy (NY) Towns Gephardt Mink Weygand Gilchrest Moakley Wise Ford McDermott Velazquez b 1902 Fox McGovern Vento Gilman Mollohan Woolsey Frank (MA) McHale Visclosky Mr. DAVIS of Virginia, Mr. LAZIO of Green Moran (VA) Wynn Gutierrez Morella Yates Franks (NJ) McKinney Walsh New York, Ms. WATERS and Mrs. Frelinghuysen Meehan Waters Hastings (FL) Murtha ROUKEMA changed their vote from Frost Meek (FL) Watt (NC) NOES—223 Furse Menendez Waxman ‘‘no’’ to ‘‘aye.’’ Gejdenson Millender- Wexler So the amendment was rejected. Aderholt Berry Burr Gephardt McDonald Weygand Archer Bilbray Burton Gilchrest Miller (CA) Wise The result of the vote was announced Armey Bilirakis Buyer Gilman Mink Woolsey as above recorded. Bachus Bishop Callahan Baker Bliley Calvert Green Moakley Wynn AMENDMENT OFFERED BY MR. BOEHLERT Gutierrez Mollohan Yates Ballenger Blunt Camp The CHAIRMAN pro tempore (Mr. Barcia Boehner Campbell NOES—221 GILLMOR). The pending business is the Barr Bonilla Canady Aderholt Ballenger Bass demand for a recorded vote on the Barrett (NE) Bono Cannon Bartlett Boyd Chabot Archer Barr Bereuter amendment offered by the gentleman Armey Barrett (NE) Berry Barton Brady Chambliss Bachus Bartlett Bilirakis from New York (Mr. BOEHLERT) on Bass Bryant Chenoweth Baker Barton Bishop which further proceedings were post- Bereuter Bunning Christensen H3450 CONGRESSIONAL RECORD — HOUSE May 19, 1998

Coble Hutchinson Redmond RECORDED VOTE Gallegly Lewis (KY) Roukema Coburn Hyde Regula Gekas Linder Royce Collins Inglis Reyes The CHAIRMAN pro tempore. A re- Gibbons Lipinski Salmon Combest Istook Riggs corded vote has been demanded. Gilchrest LoBiondo Sanford Condit Jenkins Riley A recorded vote was ordered. Gillmor Lucas Saxton Cook John Roemer Gilman Manzullo Scarborough Cooksey Johnson (CT) Rogers The vote was taken by electronic de- Goode McCarthy (NY) Schaefer, Dan Cox Johnson, Sam Rohrabacher vice, and there were—ayes 180, noes 231, Goodlatte McCollum Schaffer, Bob Cramer Jones Ros-Lehtinen not voting 21, as follows: Goss McCrery Sensenbrenner Crapo Kasich Royce Graham McDade Sessions Cubin Kim Salmon [Roll No. 159] Granger McHugh Shadegg Cunningham King (NY) Sandlin AYES—180 Gutknecht McInnis Shaw Danner Kingston Sanford Hall (TX) McIntosh Sherman Abercrombie Green Nadler Davis (FL) Klug Scarborough Hamilton McIntyre Shimkus Ackerman Gutierrez Neal Davis (VA) Knollenberg Schaefer, Dan Hansen McKeon Skeen Allen Hall (OH) Oberstar Deal Kolbe Schaffer, Bob Hastert Metcalf Smith (MI) Andrews Hastings (FL) Obey DeLay LaHood Sensenbrenner Hastings (WA) Mica Smith (NJ) Baldacci Hefner Olver Diaz-Balart Largent Sessions Hayworth Moran (KS) Smith (OR) Barcia Hilliard Ortiz Dickey Latham Shadegg Hefley Moran (VA) Smith (TX) Barrett (WI) Hinchey Owens Dooley Lazio Shaw Herger Myrick Smith, Linda Becerra Hinojosa Pallone Doolittle Lewis (CA) Sherman Hill Nethercutt Snowbarger Bentsen Holden Pascrell Dreier Lewis (KY) Shimkus Hilleary Neumann Snyder Berman Hooley Pastor Duncan Linder Sisisky Hobson Ney Solomon Bilbray Hoyer Payne Dunn Lucas Skeen Hoekstra Northup Souder Bishop Jackson (IL) Pelosi Edwards Maloney (CT) Skelton Horn Norwood Spence Blagojevich Jackson-Lee Pomeroy Ehrlich Manzullo Smith (MI) Hostettler Nussle Stearns Blumenauer (TX) Poshard Emerson McCollum Smith (OR) Houghton Oxley Stenholm Bonior Jefferson Price (NC) English McCrery Smith (TX) Hulshof Packard Stump Borski Johnson (WI) Rahall Ensign McHugh Smith, Linda Hunter Pappas Sununu Boucher Johnson, E. B. Rangel Everett McInnis Snowbarger Hutchinson Parker Talent Brown (CA) Kanjorski Reyes Foley McIntosh Snyder Hyde Paul Tanner Brown (FL) Kaptur Rivers Fossella McIntyre Solomon Inglis Pease Tauzin Brown (OH) Kennedy (MA) Rodriguez Fowler McKeon Souder Istook Peterson (MN) Taylor (NC) Capps Kennedy (RI) Rothman Fox Metcalf Spence Jenkins Peterson (PA) Thomas Cardin Kennelly Roybal-Allard Gallegly Mica Stearns John Petri Thornberry Carson Kildee Rush Gekas Miller (FL) Stenholm Johnson (CT) Pickering Thune Chenoweth Kilpatrick Sabo Gibbons Minge Stump Johnson, Sam Pickett Tiahrt Clayton Kind (WI) Sanchez Gillmor Moran (KS) Sununu Jones Pitts Traficant Clement Kleczka Sanders Goode Myrick Talent Kasich Pombo Turner Clyburn Klink Sandlin Goodlatte Nethercutt Tanner Kelly Porter Upton Conyers Kucinich Sawyer Gordon Neumann Tauzin Kim Portman Walsh Costello LaFalce Scott Goss Ney Taylor (MS) King (NY) Pryce (OH) Wamp Coyne Lampson Serrano Graham Northup Taylor (NC) Kingston Quinn Watkins Cummings Lantos Shays Granger Norwood Thomas Klug Radanovich Watts (OK) Davis (FL) Lee Sisisky Gutknecht Nussle Thornberry Knollenberg Ramstad Weldon (FL) Davis (IL) Levin Skelton Hall (OH) Ortiz Thune Kolbe Redmond Weldon (PA) DeFazio Lewis (GA) Slaughter Hall (TX) Oxley Tiahrt LaHood Regula Weller DeGette Lofgren Smith, Adam Hamilton Packard Traficant Largent Riggs White Delahunt Lowey Spratt Hansen Pappas Turner Latham Riley Whitfield DeLauro Luther Stabenow Hastert Parker Wamp LaTourette Roemer Wicker Deutsch Maloney (CT) Stark Hastings (WA) Paul Watkins Lazio Rogers Wolf Dicks Maloney (NY) Stokes Hayworth Pease Watts (OK) Leach Rohrabacher Young (AK) Dingell Manton Strickland Hefley Peterson (MN) Weldon (FL) Lewis (CA) Ros-Lehtinen Young (FL) Dixon Markey Stupak Herger Peterson (PA) Weller Doggett Martinez Tauscher Hill Pickering White NOT VOTING—21 Dooley Mascara Taylor (MS) Hilleary Pickett Whitfield Doyle Matsui Thompson Baesler Gonzalez Miller (FL) Hobson Pitts Wicker Edwards McCarthy (MO) Thurman Bateman Goodling Paxon Hoekstra Pombo Wolf Engel McDermott Tierney Clay Greenwood Rogan Hostettler Portman Young (AK) Eshoo McGovern Torres Crane Harman Ryun Houghton Price (NC) Young (FL) Etheridge McHale Towns Ewing Livingston Schumer Hulshof Pryce (OH) Evans McKinney Velazquez Fattah McNulty Shuster Hunter Radanovich Farr Meehan Vento Ganske Meeks (NY) Skaggs NOT VOTING—20 Fazio Meek (FL) Visclosky Filner Menendez Waters b 1920 Baesler Gonzalez Paxon Forbes Millender- Watt (NC) Mr. GORDON changed his vote from Bateman Goodling Rogan Ford McDonald Waxman Clay Greenwood Ryun Fox Miller (CA) Wexler ‘‘no’’ to ‘‘aye.’’ Crane Harman Schumer Frank (MA) Minge Weygand So the amendment was rejected. Ewing Livingston Shuster Frost Mink Wise The result of the vote was announced Fattah McNulty Skaggs Furse Moakley Woolsey Ganske Meeks (NY) Gejdenson Mollohan Wynn as above recorded. Gephardt Morella Yates PERSONAL EXPLANATION f Gordon Murtha Mr. ROGAN. Mr. Chairman, on rollcall Nos. b 1912 NOES—231 156, 157, 158, 159 I was unavoidably de- Aderholt Bunning Cubin tained. Had I been present, I would have Mr. DINGELL, Mr. MORAN of Vir- Archer Burr Cunningham voted ``no.'' ginia and Mrs. ROUKEMA changed Armey Burton Danner Mr. GEPHARDT. Mr. Chairman, I rise in op- their vote from ‘‘no’’ to ‘‘aye.’’ Bachus Buyer Davis (VA) Baker Callahan Deal position to H.R. 3534. So the amendment was rejected. Ballenger Calvert DeLay I agree with the objective of this legisla- The result of the vote was announced Barr Camp Diaz-Balart tionÐwhich is to ensure that Congress fully as above recorded. Barrett (NE) Campbell Dickey Bartlett Canady Doolittle considers the costs of legislation to the private AMENDMENT OFFERED BY MR. BECERRA Barton Cannon Dreier sector prior to voting on that legislation. The CHAIRMAN pro tempore. The Bass Castle Duncan But once again, House Republican leaders pending business is the demand for a Bereuter Chabot Dunn have hijacked a common sense objectiveÐ Berry Chambliss Ehlers recorded vote on the amendment of- Bilirakis Christensen Ehrlich and turned it into a stealth attack on our laws fered by the gentleman from California Bliley Coble Emerson to protect public health and the environment. (Mr. BECERRA) on which further pro- Blunt Coburn English This bill establishes a procedural obstacleÐ Boehlert Collins Ensign ceedings were postponed and on which Boehner Combest Everett a point of orderÐagainst Congressional action the noes prevailed by voice vote. Bonilla Condit Fawell on a whole host of issues critical to the Amer- The Clerk will designate the amend- Bono Cook Foley ican peopleÐfrom future increases in the mini- ment. Boswell Cooksey Fossella mum wage to broader patient protections for Boyd Cox Fowler The Clerk designated the amend- Brady Cramer Franks (NJ) patients in managed care plans to the Senate- ment. Bryant Crapo Frelinghuysen passed IRS reform legislation. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3451 And it doesn't deliver relief from all private- The bill before us requires Congressional the Unfunded Mandates Act of 1995 and ap- sector mandates. The bill's protection from committees to include in their legislative re- plying them to the private sector. It is the next mandates is in fact arbitrary and inconsistent. ports detailed information on potential private logical step in an effort to ensure our govern- For example, assume that Congress ex- sector mandates in excess of $100 million that ment accomplishes its public policy initiatives tends the Superfund tax on big companies. If would result from the legislation. H.R. 3534 in the most cost effective manner. the bill used these revenues to clean up toxic also requires that the Committee reports pro- Mr. Chairman, I believe that this bill makes waste sitesÐthe very purpose of this taxÐthe vide information on a proposed bill's effect on good sense for the federal government, for in- bill would face a point of order under H.R. consumer prices and the supply of goods and dustry and for every American citizen trying to 3534. But if the bill used all the revenues to services in consumer markets, as well as on create a better way of life for themselves and provide tax breaks to wealthy special interests, matters relating to workers. their familiesÐI urge my colleagues to support there would be no point of order. In both Those of us supporting this bill dare not this legislation. cases a private sector mandate is imposedÐ oversell its merits. H.R. 3534 will not end pri- The CHAIRMAN. Are there other but in only one case is that mandate subject vate sector mandates. What it will do is force amendments to the bill? to review. Congress to honestly examine and make pub- If not, under the rule, the Committee Make no mistake about it. If this legislation, lic the consequences of its actions, consider- rises. as the Republicans have amended it, were to ing the effects of mandates on consumers, Accordingly, the Committee rose; become law, it would enact a procedural ob- workers and small businesses. Congress and the Speaker pro tempore (Mr. stacle to programs that command bipartisan would fully retain its right to pass whatever RIGGS) having assumed the chair, Mr. supportÐthe highway bill, our toxic waste legislation it chooses. There easily could be GILLMOR, Chairman pro tempore of the cleanup program, our airport and airline safety instances in which Congress determines that Committee of the Whole House on the programs, and legislation to reduce underage the benefit of the regulation is worth its cost. State of the Union, reported that that teen smoking, to name just a few. This measure would simply force Congress to Committee, having had under consider- In short, this bill gives House Republican reveal and consider more complete informa- ation the bill (H.R. 3534) to improve leaders a procedural device to kill important tion about the policies we approve. congressional deliberation on proposed health and environmental proposals without di- I do want to mention one reservation I have Federal private sector mandates, and rectly voting against them. It's all part of the about the bill before us. The current legislation for other purposes, pursuant to House Republican Congress' stealth agenda: to look states that points of order would not be per- Resolution 426, he reported the bill, as for ways to weaken our health and environ- mitted against bills that have net decreases in amended, back to the House with fur- mental laws without the glare of publicity. tax revenues over five years, even if the Instead of attacking our environmental laws, ther sundry amendments adopted by measure includes a tax increase. This provi- we should be protecting them. And instead of the Committee of the Whole. sion assumes that the mix of tax provisions re- sneak attacks mounted by Republican Lead- The SPEAKER pro tempore. Under sulting in a decrease in revenues automati- ers under cover of darkness, we should be de- the rule, the previous question is or- cally will be a net positive for businesses, bating all riders freely and openly. dered. That is why I have cosponsored Congress- workers and consumers. There is absolutely Is a separate vote demanded on any no reason for such an assumption. This provi- man WAXMAN's Defense of the Environment amendment? If not, the Chair will put Amendment. This amendment simply requires sion places tax cutting of any sort above all them en gros. a separate vote on all legislative riders that other priorities, including reducing business' The amendments were agreed to. weaken our environmental laws. If we are regulatory burdens, maintaining a balanced The SPEAKER pro tempore. The going to insist upon a careful analysis of the budget, or a wide array of other priorities question is on the engrossment and costs of legislation to the private sector, we which could be expressed through certain tax third reading of the bill. should do no less for the environment. cuts. While I trust the good intentions of the The bill was ordered to be engrossed Over the past four years, the House Repub- author of this language, I believe that those and read a third time, and was read the lican leadership has repeatedly weakened our supporting this language are looking at this third time. environmental laws by attaching legislative rid- issue from a narrow perspective which ignores The SPEAKER pro tempore. The ersÐoften in the dark of night and with little unintended consequences these supporters question is on the passage of the bill. debateÐon high-priority spending bills. would not appreciate. The question was taken; and the Americans want healthy forests. But Repub- Reducing the burdens imposed on small Speaker pro tempore announced that licans have used special-interest riders to business by the federal government is one of the ayes appeared to have it. clear-cut our forests and to undermine the pro- my highest priorities in Congress. I will con- RECORDED VOTE tection of endangered species. tinue to do whatever I can to encourage and Mr. MOAKLEY. Mr. Speaker, I de- Americans want our toxic waste sites promote a business climate which is condu- mand a recorded vote. cleaned up. But Republicans have used riders cive to maintaining and expanding small busi- A recorded vote was ordered. to stall our toxic waste cleanup program. ness opportunities. Enactment of this legisla- The vote was taken by electronic de- And Americans want to reduce oil import tion will assist me and other Representatives vice, and there were—ayes 279, noes 132, dependence and the risk of global climate in this effort. not voting 21, as follows: Mr. HALL of Texas. Mr. Chairman, I am change. But Republicans have used riders to [Roll No. 160] block new energy efficiency standards. pleased to rise today in support of H.R. 3534, In the recent supplemental spending bill, the Mandates Information Act. This bill directs AYES—279 Republican riders gave out special subsidies Members of Congress, for the first time, to Aderholt Bryant Costello carefully consider the burden that unfunded Archer Bunning Cox for the oil and gas industry and launched addi- Armey Burr Cramer tional assaults on our public lands. mandates impose on the groups they intend to Bachus Burton Crapo The Defense of the Environment amend- helpÐsmall businesses, consumers and em- Baker Callahan Cubin ment will give us a better chance to reign in ployees. Ballenger Calvert Cunningham Barcia Camp Danner these extremist attacks on the environment. It Mr. Chairman, H.R. 3534 is very simply a Barr Campbell Davis (FL) deserves approval. I urge your support. common sense bipartisan effort to ensure that Barrett (NE) Canady Davis (VA) Mr. STENHOLM. Mr. Chairman, I rise in policy-makers focus their attention on the Bartlett Cannon Deal strong support of H.R. 3534, the Mandates In- costs of legislation on the private sector before Barton Capps DeLay Bass Castle Dickey formation Act. This bill extends to the private it is passed. Bentsen Chabot Dooley sector comparable procedural limitations cur- In 1995, with the passage of the Unfunded Bereuter Chambliss Doolittle rently placed on legislation imposing unfunded Mandates Act, Congress addressed the signifi- Berry Chenoweth Doyle cant problem that federal government man- Bilirakis Christensen Dreier federal mandates on state or local govern- Bishop Clayton Duncan ments. dates have on the operation of state and local Bliley Clement Dunn Small businesses are the backbone of the governments. These mandates create equally Blunt Coble Edwards economy in my District and, in fact, across the burdensome problems on those in the private Boehner Coburn Ehlers Bonilla Collins Ehrlich country. It always has been my practice to sector, especially the small business owner. Bono Combest Emerson take the impact on small businesses into ac- H.R. 3534 will remedy the problem of federal Boswell Condit English count when legislation is being considered, mandates on our nation's small businesses Boyd Cook Ensign and it is for this reason that I support this bill. and their employees by taking the reforms of Brady Cooksey Etheridge H3452 CONGRESSIONAL RECORD — HOUSE May 19, 1998 Everett Largent Roemer Mink Rangel Thompson and Chinese businessman Ted Sieong and 11 Fawell Latham Rogan Moakley Ros-Lehtinen Tierney members of his family; Fazio LaTourette Rogers Mollohan Rothman Torres Whereas democratic fundraiser Johnny Foley Lazio Rohrabacher Morella Roybal-Allard Towns Chung has told Department of Justice inves- Ford Leach Roukema Nadler Rush Velazquez Fossella Lewis (CA) Royce Neal Sabo Vento tigators that he funneled more than $100,000 Fowler Lewis (KY) Salmon Oberstar Sanders Visclosky in illegal campaign contributions from a Fox Linder Sanchez Obey Sawyer Waters Chinese military officer to Democrats during Franks (NJ) Lipinski Sandlin Olver Saxton Watt (NC) the 1996 campaign cycle, according to a New Frelinghuysen LoBiondo Sanford Owens Scott Waxman York Times report on May 15, 1998; Frost Lofgren Scarborough Pallone Serrano Wexler Whereas Chung told Federal investigators Gallegly Lucas Schaefer, Dan Pascrell Shays Wise much of the $100,000 he gave to the Demo- Schaffer, Bob Pastor Slaughter Woolsey Gekas Luther cratic National Committee in the 1996 cam- Gibbons Maloney (CT) Sensenbrenner Payne Stark Wynn Gillmor Manzullo Sessions Pelosi Stokes Yates paign came from Communist China’s Peoples Gilman McCarthy (MO) Shadegg Rahall Stupak Liberation Army through Liu Chaoying, a Goode McCarthy (NY) Shaw Chineese Lieutenant Colonel and aerospace Goodlatte McCollum Sherman NOT VOTING—21 industry executive; Gordon McCrery Shimkus Baesler Ganske McNulty Whereas Chung’s account and supporting Goss McDade Sisisky Bateman Gonzalez Meeks (NY) evidence, such as financial records, is the Graham McHugh Skeen Buyer Goodling Paxon first direct evidence of Communist Chinese Skelton Granger McIntosh Clay Greenwood Ryun campaign contributions being funneled to Green McIntyre Smith (MI) Crane Harman Schumer Gutknecht McKeon Smith (NJ) Ewing Livingston Shuster the Democratic National Committee and Hall (OH) Metcalf Smith (OR) Fattah McInnis Skaggs Clinton-Gore ’96; Hall (TX) Mica Smith (TX) Whereas subsequent to the receipt of the Hamilton Miller (FL) Smith, Adam b 1940 illegal campaign contributions from Com- Hansen Minge Smith, Linda So the bill was passed. munist Chineese officials the Clinton Admin- Hastert Moran (KS) Snowbarger istration relaxed export controls and over- Hastings (WA) Moran (VA) Snyder The result of the vote was announced ruled a Pentagon ban on the sale and export Hayworth Murtha Solomon as above recorded. Hefley Myrick Souder of sophisticated satellite technology to Herger Nethercutt Spence A motion to reconsider was laid on China; Hill Neumann Spratt the table. Whereas on April 23 and May 13, 1998, the Hilleary Ney Stabenow f Committee on Government Reform and Over- Hinojosa Northup Stearns sight unsuccessfully sought to grant immu- Hobson Norwood Stenholm GENERAL LEAVE nity from prosecution to 4 important wit- Hoekstra Nussle Strickland nesses, including 2 former employees of Holden Ortiz Stump Mr. DREIER. Mr. Speaker, I ask Johnny Chung who have direct knowledge Hooley Oxley Sununu unanimous consent that all Members Horn Packard Talent concerning Communist Chinese attempts to Hostettler Pappas Tanner may have 5 legislative days in which to influence United States policy and make il- Houghton Parker Tauscher revise and extend their remarks on legal campaign contributions; Hulshof Paul Tauzin H.R. 3534, the bill just passed. Whereas these 4 witnesses, Irene Su, Nancy Hunter Pease Taylor (MS) The SPEAKER pro tempore (Mr. Lee, Larry Wong, and Kent La, each have di- Hutchinson Peterson (MN) Taylor (NC) rect information concerning the efforts em- RIGGS). Is there objection to the re- Hyde Peterson (PA) Thomas ployed by Johnny Chung, Ted Sieong, and Inglis Petri Thornberry quest of the gentleman from Califor- other foreigners to violate Federal campaign Istook Pickering Thune nia? Jenkins Pickett Thurman laws and exercise foreign influence over the John Pitts Tiahrt There was no objection. 1996 elections; Johnson (CT) Pombo Traficant f Whereas the Department of Justice does Johnson (WI) Pomeroy Turner not object to the Committee on Government Johnson, Sam Porter Upton SENSE OF CONGRESS THAT COM- Reform and Oversight’s desire to confer im- Jones Portman Walsh MITTEE ON GOVERNMENT RE- munity on Irene Wu, Nancy Lee, Larry Kasich Poshard Wamp Wong, and Kent La; Watkins FORM AND OVERSIGHT SHOULD Kelly Price (NC) Whereas Irene Wu, Johnny Chung’s office Kildee Pryce (OH) Watts (OK) CONFER IMMUNITY CONCERNING manager and primary assistant, would pro- Kim Quinn Weldon (FL) ILLEGAL FOREIGN FUNDRAISING Kind (WI) Radanovich Weldon (PA) vide the Committee on Government Reform King (NY) Ramstad Weller ACTIVITIES and Oversight firsthand information and Kingston Redmond Weygand Mr. COX of California. Mr. Speaker, I knowledge about Chung’s payments to Clin- White Kleczka Regula move to suspend the rules and agree to ton-Gore ’96 and his relationships with for- Klug Reyes Whitfield eign nationals; Wicker the resolution (H. Res. 440) expressing Knollenberg Riggs Whereas Nancy Lee, an engineer at Mr. Kolbe Riley Wolf the sense of the Congress that the Chung’s company, solicited contributions LaFalce Rivers Young (AK) Committee on Government Reform and LaHood Rodriguez Young (FL) from her colleagues for the benefit of Clin- Oversight should confer immunity ton-Gore ’96, and those contributions serve NOES—132 from prosecution for information and as the foundation of criminal charges Abercrombie Deutsch Kaptur testimony concerning illegal foreign brought against Mr. Chung; Ackerman Diaz-Balart Kennedy (MA) fundraising activities. Whereas Larry Wong, a long-time friend Allen Dicks Kennedy (RI) The Clerk read as follows: and associate of convicted felon Gene Lum, Andrews Dingell Kennelly has direct knowledge concerning Lum’s Baldacci Dixon Kilpatrick H. RES. 440 method of making illegal foreign money con- Barrett (WI) Doggett Klink tributions to Clinton-Gore ’96; Becerra Engel Kucinich Whereas the Committee on Government Whereas Kent La, the United States dis- Berman Eshoo Lampson Reform and Oversight is currently inves- Bilbray Evans Lantos tributor of Communist Chinese cigarettes, Blagojevich Farr Lee tigating the unprecedented flow of illegal has direct and relevant information about il- Blumenauer Filner Levin foreign contributions to the Clinton-Gore legal foreign money contributions made to Boehlert Forbes Lewis (GA) campaign during the 1996 Presidential cam- the Democratic National Committee by Ted Bonior Frank (MA) Lowey paign; Sioeng; and Borski Furse Maloney (NY) Whereas more than 90 witnesses in the in- Whereas the inability of the Committee on Boucher Gejdenson Manton vestigation have either asserted the fifth Government Reform and Oversight to confer Brown (CA) Gephardt Markey amendment or fled the United States to Brown (FL) Gilchrest Martinez immunity on these 4 important witnesses Brown (OH) Gutierrez Mascara avoid testifying, including 53 persons in- serves as an impediment to the important Cardin Hastings (FL) Matsui volved in raising money for the Democratic work of the committee in determining the Carson Hefner McDermott National Committee or the Clinton-Gore extent to which officials and associates of Clyburn Hilliard McGovern campaign; the Chinese and other foreign government Conyers Hinchey McHale Whereas among the 53 persons who have ei- sought to influence the 1996 elections and Coyne Hoyer McKinney ther asserted the fifth amendment or fled the United States policy in violation of Federal Cummings Jackson (IL) Meehan United States to avoid testifying are former Davis (IL) Jackson-Lee Meek (FL) campaign contribution laws and regulations: DeFazio (TX) Menendez Associate Attorney General Webster Hub- Now, therefore, be it DeGette Jefferson Millender- bell; former White House aide Mark Middle- Resolved, That it is the sense of the House Delahunt Johnson, E. B. McDonald ton; longtime Clinton friends John Huang, of Representatives that the Committee on DeLauro Kanjorski Miller (CA) Charlie Trie, and James and Mochtar Riady; Government Reform and Oversight should May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3453 vote to direct the General Counsel of the At the time the Commerce Depart- Why did the President overrule the House of Representatives to apply to a ment was headed by the late Ron State Department and turn such im- United States district court for an order im- Brown, who was previously chairman portant decisions over to the Com- munizing from use in prosecutions the testi- of the Democratic National Commit- merce Department? mony of, and other information provided by, tee. Irene Wu, Nancy Lee, Larry Wong, and Kent How did this transfer of technology La at proceedings before or ancillary to the One of the beneficiaries of that deci- jeopardize our national security and Committee. sion, according to the Times, was American lives? The SPEAKER pro tempore. Pursu- China Aerospace, a military-run Chi- No Member of this body should rest ant to the rule, the gentleman from nese company that employed Liu until we know the answers to these California (Mr. COX) and the gentleman Chaoying as an executive. The Times questions. Giving immunity to these from California (Mr. WAXMAN) each also reported that one-time Demo- four important witnesses is a first step will control 20 minutes. cratic fund-raiser Johnny Chung has in opening the door to the truth in The Chair recognizes the gentleman told the Justice Department investiga- these very important matters. from California (Mr. COX). tors that he funneled $100,000 in cash Mr. Speaker, I reserve the balance of Mr. COX of California. Mr. Speaker, I from Liu to the Democratic National my time. ask unanimous consent to yield my Committee during the 1996 presidential Mr. WAXMAN. Mr. Speaker, I yield time to the gentleman from Ohio (Mr. campaign. myself such time as may consume. BOEHNER) and that he may be able to b 1945 Mr. Speaker, I rise in support of the yield time as he sees fit. Liu is a lieutenant colonel in the Chi- Boehner resolution. I completely agree The SPEAKER pro tempore. Is there nese army and the daughter of a top that the four witnesses should be given objection to the request of the gen- Chinese military official. immunity. I believe every Democrat on tleman from California? The Times’ report is significant in the House Committee on Government There was in objection. that it represents the most solid evi- Reform and Oversight also supports Mr. BOEHNER. Mr. Speaker, I yield dence yet of a Chinese connection in immunity for the witnesses. myself such time as I may consume. the campaign finance scandal. More In fact, our only reservation on the Mr. Speaker, yesterday I introduced importantly, it opens the door to alle- merits has been that the witnesses still House Resolution 440. This resolution gations that the Chinese government have not provided proffers of their tes- expresses the sense of Congress that was able to jeopardize U.S. national se- timony, which is a standard and essen- the Committee on Government Reform curity because of illegal campaign con- tial procedure in an immunity case. and Oversight should confer immunity tributions. That is what we said when the commit- to four witnesses who have direct Mr. Speaker, one might logically tee first voted on immunity on April 3, knowledge about how the Chinese gov- ask, ‘‘How does this affect America’s it is what I said in a letter to the ernment made illegal campaign con- national security?’’ Well, I think the Speaker on May 10, and it is what we tributions in an apparent attempt to answer is quite obvious. Any tech- said again when the committee voted influence our foreign policy. This reso- nology transfer that benefits China’s on immunity on May 13. lution is not about titillating gossip, space program also benefits China’s On May 10, I sent a letter to the nor is it about partisan politics. Sim- missile program. Speaker, and I want to quote from that ply put, this resolution is about deter- In fact, a little over 2 weeks ago it letter. I wrote to the Speaker and I mining whether American lives have was reported in The Washington Times said: been put at risk and whether Com- that Communist China had aimed 13 I am writing in the spirit of bipartisanship munist-controlled companies and Chi- long-range strategic missiles at the to work with you to find a constructive solu- nese officials were given access to so- United States. These missiles have a tion to the difficult problems facing the phisticated technology that jeopardizes range of 8,000 miles and are capable of Committee on Government Reform and our national security. delivering nuclear warheads that can Oversight. During the past several weeks, To give my colleagues a sense as to obliterate an entire city in a single you have personally attacked me and ques- why this resolution is so important, I blast. tioned my integrity without justification. I believe, however, that the American people would like to ask them to consider We have also learned that China is aggressively pursuing development and expect more from us than name calling and some disturbing revelations that have partisan battles. Instead of escalating this come to light about the connection be- modernization of their entire missile program. Not only are they improving fight, I want to make a genuine attempt to tween the Clinton administration and work with you to meet these expectations. the accuracy of their short-range mis- Communist China. siles which threaten their neighbors, I said to the Speaker, and I further Last week various news sources, in- quote, cluding the New York Times, reported they are also developing an entirely new class of missiles capable of bring- I am prepared to recommend to my Demo- that the Clinton administration’s deci- ing their nuclear weapons to American cratic colleagues that they support the pend- sion to approve exports of satellite families. ing immunity requests, but before I do, I be- technology to China in 1996 may have So, Mr. Speaker, we need to know lieve the rules and procedures guiding the been connected with campaign con- why and if the President of the United committee’s campaign finance investigation tributions to the Democrat Party. In must be changed so that the committee can States changed the policy in a way conduct a fair and thorough investigation. short, it is alleged that the Clinton ad- that gave sensitive and sophisticated ministration granted waivers to two missile technology to a Nation that Well, 2 weeks have passed, and the companies in 1996, Loral Space and now aims nuclear weapons at our sons Speaker still has not responded to my Communications and Hughes Elec- and daughters. Mr. Speaker, I can only letter and my request that we work to- tronic Corporation, that allowed them ask all of my colleagues to join with gether. We have tried to make it as to export sophisticated satellite tech- me as we try to ensure whether or not clear as possible that our problem is nology to Communist China. our children grow up in a safe world or not with immunity, our problem is Loral’s chairman, Bernard Schwartz, in a world in the throes of another with the gentleman from Indiana (Mr. donated more than $600,000 to the Dem- arms race, or even another Cold War. DAN BURTON) and his handling of this ocrat Party. Last week the New York President Clinton is expected to trav- investigation. That is a problem the Times also reported that in March of el to China next month where he is also Speaker, the gentleman from Ohio (Mr. 1996, the President overruled both the expected to announce new space tech- BOEHNER), and the other Members of State Department and the Pentagon, nology cooperation agreements. Before the Republican leadership insist on ig- which wanted to keep sharp limits on he leaves, the American people must noring. China’s ability to launch American- know exactly if past cooperation with Since we last voted in committee, made satellites using Chinese rockets, China has undermined our national se- new information has come to light, and turned oversight of granting such curity. originally in The New York Times, permission for these launches over to Congress and the American people about the possibility that Johnny the Commerce Department, which was must have the answers to some very Chung may have been a conduit for po- in favor of permitting them. specific questions: litical contributions from China. The H3454 CONGRESSIONAL RECORD — HOUSE May 19, 1998 new allegations are serious and deserve drive partisan wedges between us and sions. If the Speaker is going to send thorough congressional investigation. trying to impede a serious investiga- this to the committee for another vote, Although there is no indication that tion. take some time first to meet with the the four witnesses seeking immunity Now, the Republicans have a major- minority Members and try to find com- have information relevant to these new ity in this House. When the chairman mon ground. If that does not occur, it allegations, the new evidence rein- of the investigation calls the President will be absolutely clear that this is all forces my belief that the witnesses of the United States a scum bag, when about cynical politics not genuine con- should be given immunity. The new he admits he is after the President, cern, and the American people will evidence also reinforces my belief that when he doctors transcripts that pur- have yet another reason to tune us all the gentleman from Indiana is the port to represent evidence the commit- out. wrong person to be leading this inves- tee obtained, when he issues over 600 Mr. Speaker, I provide for the tigation. unilateral subpoenas and targets 99 RECORD the letter to the Speaker and We are dealing with extremely seri- percent of his 1,000 subpoena and other information correcting the factual er- ous allegations. We owe the American information requests to Democrats, we rors contained in the resolution to people a serious, credible investigation. Republicans and Democrats have a which I referred to earlier: So here we are today, and the Repub- very real problem. U.S. HOUSE OF REPRESENTATIVES, lican leadership has made no attempt When the committee’s Republican COMMITTEE ON GOVERNMENT to work with us in a bipartisan way. chief counsel quits because he is not al- REFORM AND OVERSIGHT, Washington, DC, May 10, 1998. The Republican leadership is not send- lowed to conduct a professional inves- Hon. NEWT GINGRICH, ing this issue to another committee, it tigation, when the Republican chief in- Speaker, U.S. House of Representatives, Wash- is not bringing the issue up on the vestigator is fired, we have a very real ington, DC. House floor, it is not proposing to fix problem. We have a committee out of DEAR MR. SPEAKER: I am writing in the the Burton problem. The leadership is control. But because Republicans have spirit of bipartisanship to work with you to here telling us immunity is essential the majority in this House, it is a prob- find a constructive solution to the difficult and then insisting on the one immu- lem that they alone can solve. All the problems facing the Committee on Govern- nity option they know we will oppose. Democrats ask is what The New York ment Reform and Oversight. During the past several weeks, you have personally attacked It is rare that partisanship and cyni- Times proposed: Act responsibly, solve me and questioned my integrity without jus- cism are this transparent. the problem. We are prepared to vote tification. I believe, however, that the Amer- Two weeks ago The New York Times, for immunity if the majority is willing ican people expect more from us than name- which has been leading the call for a to work with us in even the most mini- calling and partisan battles. Instead of esca- thorough and aggressive investigation mal way. lating this fight, I want to make a genuine into the President’s 1996 campaign, I am going to vote for this resolution attempt to work with you to meet their ex- printed an editorial called ‘‘The Dan because it really is tantamount to a pectations. meaningless gimmick. It is an empty I am prepared to recommend to my Demo- Burton Problem,’’ and I want to take a cratic colleagues that they support the pend- moment and read in part from that edi- exercise in political posturing. I should ing immunity requests. But before I do, I be- torial. also point out for the record that the lieve that the rules and procedures guiding By now, even Representative DAN BURTON resolution contains a number of basic the Committee’s campaign finance investiga- ought to recognize that he has become an factual errors, and I will submit infor- tion must be changed so that the Committee impediment to a serious investigation of the mation correcting these mistakes. can conduct a fair and thorough investiga- 1996 campaign finance scandals. If the House A meaningful act would be to reform tion. inquiry is to be responsible, someone else on the procedures we have in the Commit- Of course, such changes also require that the chair of the investigation be fair and Mr. BURTON’s committee should run it. tee on Government Reform and Over- Coming on the heels of an impolitic re- credible. Mr. BURTON, the current chairman, sight, or send this matter to another mark by Mr. BURTON about the President 2 has disqualified himself by his actions. He weeks ago, the tapes fiasco is forcing the committee, so that we can get on with has called the President a vulgar name and House Republicans to confront two blunders: the investigation. said that he is out to get the President. And The first was to entrust the investigation of If this matter is as important to the he has ‘‘doctored’’ evidence by releasing al- campaign finance abuses to Mr. BURTON, the Speaker as he says it is, and it should tered and selectively edited transcripts of chairman of the House Government Reform be, we only ask that he work with us the Webster Hubbell tapes. There are several and Oversight Committee. The second was to for a constructive investigation. Please senior Republican members of the Commit- give him unilateral power to release con- do not posture on such an important tee who could immediately take his place and continue the investigation. For the in- fidential information. issue. Democrats are ready and have Mr. BURTON, a fierce partisan, not known vestigation to have any legitimacy, this for balanced judgment, was plainly the been ready to vote for immunity. All must happen. wrong man for a sensitive job. If Mr. BURTON we ask is that the investigation be fair, A fair investigation must have fair proce- will not step aside, Speaker NEWT GINGRICH bipartisan and competent. dures. Some have asserted that the Demo- should convene the Republican Caucus and And that means, by the way, that we cratic members want a veto over the conduct ask it to name a replacement. Mr. GINGRICH get the facts, and then see what con- of the investigation. This is not true. We are should also agree to rules both to provide a clusions those facts lead us to, not not seeking the right to block the issuance check on the new Chairman’s power and to reach the conclusions first and then of subpoenas or the release of documents. All we want is the opportunity to present our ar- enhance bipartisanship. try to see what facts will fit into those By agreeing to improvements in the rules, guments to the Committee if we raise objec- Republicans would remove a major criticism conclusions. tions that the chair is unwilling to acknowl- of the committee’s process as well as the I have heard incredible statements by edge. We recognize that we are in the minor- Democrats’ excuse for denying immunity. some of my Republican colleagues ity and that we can be outvoted. Fairness For now, Mr. GINGRICH seems determined to when they talk about money from the dictates, however, that we should at least back Mr. BURTON. That will only delay get- Chinese government going to the Presi- have the right to appeal our case to the Com- ting a truthful account of fund-raising in the dent of the United States and he know- mittee members if we are summarily re- 1996 election. jected by the chair. ingly then gives weapons technology to I am not asking for unusual procedures. My colleagues, this is a serious mat- the Chinese that may jeopardize our The exact opposite is the case. In the last ter, and that is why we have asked that national security. If that is the allega- year, Mr. BURTON issued over 600 subpoenas the Speaker give us leadership on this tion, we better have facts to back it up unilaterally, without minority concurrence issue to work with us in a bipartisan because, quite frankly, that is not just or a Committee vote. That is more than manner. It sometimes seems that the accusing the President of the United three unilateral subpoenas for every day the Speaker acts as if he thinks he is still States of a crime, that is accusing the House was in session. To the best of my in the minority; that he is an insur- President of the United States of the knowledge, however, no Democratic commit- gent. But the Speaker is the Speaker of tee chairman since the McCarthy era forty crime of treason. years ago ever issued a subpoena unilater- the House. He is the Speaker of the We ask the Speaker, bring us to- ally. The congressional subpoena power is an whole House, and he should be working gether to act rationally. We ask the awesome power. It compels an individual to to bring all of us together for a fair and Speaker to work with us. Give us bi- turn over documents to Congress or to tes- credible investigation, not trying to partisanship. Make some tough deci- tify before Congress against the individual’s May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3455 will. Prior to Mr. BURTON, committee chair- 21 individuals who are listed as having fled the problem. This has nothing to do men simply did not exercise this power uni- the country who in fact live in foreign coun- with the chairman of the committee. laterally. tries; What it has to do, and the American As LEE HAMILTON, the chair of the House 11 individuals who, while not cooperating Iran-Contra investigation, wrote me: with Congress, have been convicted by or are people have seen it, that if people real- As a matter of practice in the Iran-Contra cooperating with the Department of Justice. ly wanted to get to the truth, the rev- investigation, the four Congressional leaders Claim: ‘‘[S]ubsequent to the receipt of the elations that came over the weekend, of the Select Committee—Senators INOUYE illegal campaign contributions from Com- we would have known years ago, at and Rudman, Representative Cheney and I— munist Chinese officials the Clinton Admin- least months ago. made decisions jointly on all matter or pro- istration relaxed export controls . . . on the sale and export of sophisticated satellite cedural issues, including the issuance of sub- b poenas. I do not recall a single instance in technology to China.’’ 2000 which the majority acted unilaterally. Fact: This statement is inaccurate. The But the American people have seen Likewise, Mr. BURTON’s unilateral release Clinton administration relaxed export con- this administration stonewalling and trols before not after, June 1996, when John- of subpoenaed documents is the exception, dragging their feet, hiding documents, not the rule. I cannot think of a precedent ny Chung reportedly first met Liu Chaoying. for a committee chairman releasing such The Clinton administration announced its hiding behind their lawyers. We have personal information—such as Mr. Hubbell’s decision to move commercial communica- seen Members of the other party and private conversations with his wife and tions satellites from the Munitions List to the other body attacking Chairman daughters—unilaterally. the Commerce Control List of dual-use THOMPSON, attacking Chairman There are many precedents in congres- items, moving export licensing jurisdiction D’AMATO. And over here they attack sional history for fair investigative proce- from the Department of State to the Depart- the gentleman from Iowa (Mr. LEACH), dures. You have referred repeatedly to the ment of Commerce, In March 1996—three they attack the gentleman from Penn- Watergate investigation as a model of bipar- months before Mr. Chung allegedly met Ms. tisanship. The House Watergate investiga- Liu. Moreover, the practice of issuing waiv- sylvania (Mr. KLINK), and now they are tion had fair procedures that provided the ers was not begun by the Clinton Adminis- attacking the gentleman from Indiana minority the right to seek a committee vote tration. According to the New York Times (Mr. BURTON), all for one purpose; and if they objected to a proposed subpoena or (May 17, 1998), it was first used by the Bush that is they are scared to death to get document release. These Watergate proce- Administration. to the truth. dures would provide an excellent model for Claim: ‘‘[T]he Department of Justice does Well, if all the scandals surrounding this investigation. not object to the Committee on Government the Clinton administration had not Fair procedures do not lead to gridlock. To Reform and Oversight’s desire to confer im- meant much to the American people in the contrary, they lead to bipartisan co- munity on . . . Kent La.’’ operation and a more successful investiga- Fact: The Department of Justice does have the last 3 months, the latest revela- tion. They also are a safeguard against the serious reservations about immunizing Kent tions coming about the White House kind of abuses that have characterized Mr. La. In a letter dated April 22, 1998, the De- prove that they matter now. BURTON’s investigation. Under the rules fol- partment of Justice expressed its view that According to press accounts, the lowed in other congressional investigations, ‘‘if Mr. La were to testify publicly at this White House accepted campaign con- the entire committee is accountable for the time, the Department’s criminal investiga- tributions from officials of the Com- investigation. Under Mr. BURTON’s rules, the tion could in fact be compromised. Even if munist Chinese army and then later Mr. La were to testify in a closed session, Committee has transferred virtually all its approved the shipment of sensitive de- power to him alone and he is accountable to any disclosure or leak of that testimony, no one. The events of the past weeks make it whether intentional or inadvertent, could se- fense technology to that country. Now, clear why this model should never be used riously compromise the investigation and we do not know if there is a connection again. any subsequent prosecutions.’’ The numer- there or not. But the American people Senator THOMPSON followed fair procedures ous leaks of information during the course of have the right to know the truth. And in his campaign finance investigation, and Committee’s investigation suggests that the this was done over the objections of he was able to accomplish far more than Mr. confidentiality that the Department of Jus- several foreign policy advisors in this BURTON. In fact, he held 33 days of hearings tice has requested could not be maintained. administration. This technology has and filed a 1,100-page report before Mr. BUR- Claim: The four witnesses have ‘‘direct threatened the balance of power in TON held his twelfth day of hearings. The knowledge’’ concerning ‘‘Communist Chinese Thompson procedures would be another ex- attempts to influence United States policy Asia, giving India an excuse to test nu- cellent model for this investigation. and make illegal campaign contributions,’’ clear weapons, thereby threatening the You have accused me and other Democrats ‘‘illegal foreign money contributions made security of every human being on of ‘‘stonewalling’’ the investigation. That is to the Democratic National Committee by earth. not accurate. Mr. BURTON has had virtually Ted Sioeng,’’ or ‘‘convicted felon Gene So, Mr. Speaker, where were the limitless powers. Democrats have blocked Lum[’s] . . . method of making illegal for- Democrats when we asked them for eign money contributions to Clinton-Gore none of the 602 unilateral subpoenas he has their cooperation earlier this year in issued, nor have we blocked any of the 148 ’96.’’ depositions that his staff has conducted. In Fact: The four witnesses have had employ- finding out the facts about this serious fact, we even supported the only other three ment or business relationships with Johnny situation? Where were the Democrats immunity requests made by Mr. BURTON. I Chung, Ted Sioeng, and Gene Lum. It is not when the House Committee on Govern- want to be part of a thorough investigation yet clear, however, that any of the four wit- ment Reform and Oversight tried to of campaign finance abuses. I don’t want to nesses have significant information about interview witnesses who had important be in a position I am in now, where I must the alleged illegal activities involving for- information about this national secu- oppose immunity requests as a matter of eign contributions. Based on what is cur- rity crisis? principle. rently known about the witnesses, they Mr. Speaker, I am willing to put partisan- would appear to be relatively minor wit- Some of our friends on the other side ship aside in addressing the problems on the nesses with little new information to provide of the aisle appear to be turning their Committee on Government Reform and investigators. backs on the truth because they want Oversight. I hope you will join with me in Mr. Speaker, I reserve the balance of to play these partisan games. Well, Mr. this effort. my time. Speaker, this is no time for partisan Sincerely, Mr. BOEHNER. Mr. Speaker, I yield 3 games. Our national security is threat- HENRY A. WAXMAN, minutes to the gentleman from Texas ened by this new Asian arms race, Ranking Minority Member. (Mr. DELAY), the majority whip. which has been unwittingly jump- FACTUAL INACCURACIES IN H. RES. 440 Mr. DELAY. Mr. Speaker, I appre- started by the political hacks at the Claim: ‘‘[M]ore than 90 witnesses in the in- ciate the gentleman yielding me this White House. vestigation have either asserted the fifth time. This is really a sad day for the Now, I hope that these latest revela- amendment or fled the United States to House, that we have to bring a resolu- tions would give even the fiercest par- avoid testifying.’’ tion like this to the House, and I rise tisan a reason to seek the truth. My Fact: This number is misleading because it in strong support of the resolution. I friends, these events have put into mo- includes: wish we did not have to bring it. tion the greatest crisis the world has 12 individuals who have been given immu- nity and already testified; To some, bipartisan means as long as seen since the end of the Cold War. 8 Buddhist nuns who were never immu- they buy into their partisanship, they Now is the time for Congress to work nized because their testimony would have will go along. To some, they think it is together to find out the facts, and I duplicated other testimony; the chairman of the committee that is urge my Democrat colleagues to join H3456 CONGRESSIONAL RECORD — HOUSE May 19, 1998 us now in investigating these allega- Mr. Speaker, I suppose there are and 1974, and I would challenge my tions. The American people have a times when it is amusing and even en- friends on the other side to examine right to know the truth. tertaining to pretend a wide-eyed inno- the statements of then Speaker Carl Mr. BOEHNER. Mr. Speaker, I yield 2 cence as one joins the stonewalling ef- Albert, the Majority Leader, or at that minutes to the Majority Leader, the fort of the administration. If it were time the Majority Leader, and the Ma- gentleman from Texas (Mr. ARMEY). only a matter of domestic campaign fi- jority Whip and the Caucus Chairman Mr. ARMEY. Mr. Speaker, I thank nance law, violations, perhaps America and show us one instance where that the gentleman for yielding. could afford to give a wink and a nod leadership came to the floor of the Mr. Speaker, I will get to the point. to feigning moral outrage because one House of Representatives to assert an The point is we have long since now does not like the chairman of the com- indictment and a conviction for the passed the point at which we can be mittee, or that committee, or the other crime of treason against the President casual about this. We are not talking committee, or this committee. of the United States on the basis of about campaign finance violations. We But this is bigger than that. It is leaked information in a New York are not talking about small things. We more important than that. It is about newspaper by unnamed investigators have very big questions here and very the genuine security needs of the that have arrived at some facts that grave questions before the American American people in a world that may, they do not draw conclusions from. people. in fact, be increasingly more dangerous I would like to tell my friends on the Did the President of the United than we ever thought we would face other side, I have been a very serious States permit the sale of technology to again and about the President of the member of the Committee on Govern- China that would allow them to target United States being respected in the ment Reform and Oversight for 18 missiles against United States citi- international community so that he months now in this investigation. I zens? can give the leadership in world affairs have sat through hundreds of hours of Did the President of the United that this Nation feels it must give. hearings and depositions and things States allow that sale to be made by an This is a serious matter. It is time to that have been thrown around this American firm already under inves- get serious. It is time to put away all town and around this world. tigation for trespasses against Amer- the lawyer tricks. It is time to put The Majority Leader yesterday said ican law regarding the sale of such away all the cute politics. It is time to that he was going to see that the depo- merchandise? get serious and say to the President, to sition of Johnny Chung was released. Did the President of the United all with whom he has had association Well, by golly, if he can release it, I States allow that sale against the pro- in these matters, ‘‘Come forward. Tell wish he would tell me where it is. Be- test of his own State Department and the truth. Get it off your chest. You cause I sat in a meeting when Johnny his own Department of Defense and will feel better for it. It is possible that Chung and his lawyer refused to take a over the objections of his own Justice you may make it possible for us to deposition before this Committee but Department? make America safer for it.’’ was entertained by the Chairman of Did the President of the United Mr. WAXMAN. Mr. Speaker, may I our Committee for about 2 or 21⁄2 hours States know that the money received inquire how much time is remaining on in, quote, a friendly discussion; and at for his campaign, the campaign for each side? people of his party, came from an offi- The SPEAKER pro tempore (Mr. that time and through those 2 hours of testimony never did he remotely indi- cer in the Chinese Government who is RIGGS). Both the gentleman from Ohio cate where any funds came from from also a major officer in Chinese corpora- (Mr. BOEHNER) and the gentleman from foreign government, foreign agents, or tions that were under sanction by the California (Mr. WAXMAN) control 91⁄2 United States Government? minutes. that he, in fact, had any activity that Did the transfer of the missile tech- Mr. WAXMAN. Mr. Speaker, I yield 5 would castigate not only the national nology to China spark India’s nuclear minutes to the gentleman from Penn- Democratic party but certainly not the testing? sylvania (Mr. KANJORSKI). President of the United States. And did India’s nuclear testing, in re- Mr. KANJORSKI. Mr. Speaker, I am Suddenly, the deposition is to be re- sponse to China’s new capacity, spark not usually engaged in these type of leased on Wednesday. Apparently, my the desire to do so in Pakistan? discussions, but I made it a point to friend from Ohio has more information Does the Defense Department find come down tonight because I like the than I have. I have been 2 weeks at our national security is threatened? gentleman from Ohio (Mr. BOEHNER). I hearings asking for proffers. Is the President, as Bill Safire sug- have had the occasion to spend some In his opening statement, my col- gests, the ‘‘proliferation president’’? time with him and find him to be a league indicated what these four wit- Does the President of the United man of admirable quality. I came to nesses are going to testify to. Why did States have the standing in the inter- the House at the same time that the not the gentleman from Indiana (Mr. national community to be the leader Majority Leader came to the House, BURTON) allow to us have those proffers that America must have in its presi- and I find him to be a man of quality. if he is sharing it with the majority dent? Indeed, it is a sad day for the House side and conference chairman? Just last week, the President failed of Representatives and for this govern- Mr. Speaker, we are not going to to convince our major allies to join us ment. We seem to be ever increasingly solve this. But I want to say one thing. in sanctioning India over testing nu- accepting leaks, contentions, illogical I think the leaks that were made over clear weapons. Yesterday, he agreed to reasoning; and bright and intelligent the weekend are serious leaks. They waive Helms/Burton sanctions on Euro- men that exercise unusual influence in are not proper. They are not right. pean countries helping Iran develop its this House and in this country are will- They do not stand for anything. But oil industry, and I am still wondering ing to leap ahead and make conclu- they are things that we should be in- where did that come from. sions, as the gentleman from California vestigating. I think it is time to put Last year, the President could get said, making a charge that the Presi- politics and partisanship aside. We may very little support for efforts to force dent of the United States is guilty of have serious problems. And we may weapons inspections in Iraq. And, last treason. have none. year, the President could not even get I have served in this House probably If my colleagues want my belief, I am his own party in the House of Rep- longer than most Members here be- going to tell them this. If I conclude resentatives to give him fast track au- cause I started my service as a page that for an $80,000 contribution to the thority. and I followed the House through. So I Democratic National Committee that The President of the United States went through the McCarthy hearings. the President of the United States should command international respect And I am not going to make any ref- committed treason, I will tender my as the leader of the free world. Until erence that this reminds me of that be- resignation the day that fact is estab- President Clinton comes forward with cause that is something for historians lished to me. the truth, the cloud hanging over this to determine. I cannot believe that any responsible presidency in not only international af- But I have taken the time to read the Representative, Republican, Democrat, fairs but domestic affairs will grow. RECORD of the House in 1972 and 1973 Independent, in the Congress of the May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3457 United States could be so foolhardy to ing about $80,000. We are not talking Unlike Alice in Wonderland, Mr. think that the President of the United about $80,000 at all. We are talking Speaker, we are in the real world. Mr. States would risk that country’s secu- about hundreds of thousands, if not WAXMAN gets up here and pontificates rity, violate his oath of office, commit millions, of dollars that were funneled about how he will vote for this resolu- treason, and subject not only every into the President’s reelection effort tion knowing full well that then when man, woman, and child in America, but by people involved with these transfers he goes back to the committee, he and the 6 billion people of this world, to nu- of technology. all of his colleagues or at least those clear war. What a charge. What an in- I have never called to treason and I who still travel in lockstep with him credible charge. will not call to treason. I think what will vote against it. He means what he All I suggest, my colleagues, is before we have here is a betrayal of the inter- says, and he says what he means, but we make these wild allegations, state- est of the people of the United States neither is actually the case. ments and charges, please take the of America, especially if that had any- I did not object when the gentleman time to realize that a bipartisan inves- thing to do with those millions of dol- from California said he was going to in- tigation is necessary; and that is the lars that were funneled into the Presi- sert corrective language in his state- only thing the gentleman from Califor- dent’s reelection effort from the Red ment. The reason that I did not object nia (Mr. WAXMAN) requests. Chinese and the American companies to it was the fact that I certainly that were involved with transferring b 2015 hoped that he will correct the one the technology. misstatement that I find in the resolu- Mr. BOEHNER. Mr. Speaker, no one Why do we have to come to the floor tion on page 2, paragraph 4, which says is alleging any specific act. There are to insist that these four individuals that Mr. Chung’s account and support- questions, lots of questions that we are who know about these campaign con- ing evidence is the first direct evidence trying to get answers to. tributions be permitted to testify? It is of Communist Chinese campaign con- Mr. Speaker, I yield 2 minutes to the absolutely ridiculous that we have had tributions. gentlewoman from Florida (Mrs. to come this far. I presume that the gentleman from No one will ever be able to know for FOWLER). California (Mr. WAXMAN) will insert in sure what is going on if you are saying (Mrs. FOWLER asked and was given the RECORD the voluminous amounts of permission to revise and extend her re- what is happening here unless we hear material and evidence directly related their testimony. We need to get to the marks.) thereto that is already in the RECORD Mrs. FOWLER. Mr. Speaker, I rise in bottom of this. This is a national secu- of direct evidence of Communist Chi- support of this resolution. It is unfor- rity issue as well as a political corrup- nese campaign contributions. tunate that this has become a partisan tion issue. But no one will ever be per- He may want to go back and I pre- fect enough when a Democrat Presi- debate. I rise today, not as a Repub- sume he will correct the RECORD to in- lican, but as a member of the House dent is being investigated. dicate and set forth the eight trips that Ken Starr had impeccable credentials Committee on National Security. Ng Lap Seng made to this country in and now he has been vilified. The gen- Make no mistake about it. This is a 1994, 1995 and 1996, bringing large tleman from Indiana (Mr. BURTON) national security issue. This is about amounts, hundreds of thousands of dol- finding out how and why the Clinton makes one or two verbal mistakes and all of a sudden that is being used as a lars of cash in here and within 2 days of administration overruled Pentagon ex- each one of those entries into this perts to allow sensitive military tech- diversion to pull the public’s attention away from these very serious national country made a visit to the White nology to be transferred to the Chi- House, and on most occasions visited nese. security charges. We need to get to the bottom of this. directly with Mark Middleton at the My colleagues on the other side of We need to make sure, and we are not White House. the aisle are not happy with the course going to be diverted by some nonsense The gentleman from California might of the campaign finance investigation. about the gentleman from Indiana (Mr. also go back and review some of the They are opposing immunity for four BURTON) made a couple of verbal tapes in which Mr. Clinton, the Presi- key witnesses to register their protest abuses. That does not cut it with us dent of the United States, was meeting with the Chairman. But, Mr. Speaker, when we have weapons technology Chinese officials and others thanking who is really being punished? Who is going to improve the Communist Chi- them for attending a fund-raising hurt if there is a successful effort to nese capabilities of launching nuclear event. He might also review the volu- block Congress’ attempt to determine weapons against the United States of minous evidence we have of other the truth? A nation, Mr. Speaker. America. That is that serious. money coming from Macao and the Our Nation is at risk. Our men and Mr. WAXMAN. Mr. Speaker, may I Bank of China into the Clinton/Gore women in uniform are at risk. The inquire how much time is remaining on campaign in 1995 and 1996. American people deserve to know why each side. Mr. WAXMAN. Mr. Speaker, I yield 4 their Commander in Chief approved the The SPEAKER pro tempore (Mr. minutes to the gentleman from West sale of sensitive military technology to RIGGS). The gentleman from California Virginia (Mr. WISE). China, not once, but twice, over the ob- (Mr. WAXMAN) has 41⁄2 minutes remain- Mr. WISE. Mr. Speaker, the gen- jections of his Defense Department, ing, and the gentleman from Ohio (Mr. tleman from Ohio (Mr. BOEHNER) has State Department, Justice Depart- BOEHNER) has 6 minutes remaining. made very serious allegations and de- ment, and intelligence agencies. Mr. BOEHNER. Mr. Speaker, I yield manded an investigation. I think he is This is a national security issue that 21⁄4 minutes to the gentleman from correct in terms of requesting the in- should not be subject to the same par- Georgia (Mr. BARR). vestigation based on the allegations he tisanship that has characterized so Mr. BARR of Georgia. Mr. Speaker, I has made. much of the campaign finance inves- thank the gentleman from Ohio for The gentleman from Texas (Mr. tigation. yielding time to me. DELAY), the majority whip, the Repub- I urge my colleagues to consider this Mr. Speaker, as usual, when our col- lican whip, has made serious allega- Nation’s legitimate national security league from California (Mr. WAXMAN) tions, and they too should be inves- interest and vote yes on the Boehner speaks I think of many things. One tigated. The gentleman from Texas resolution. thing that I thought of was Alice in (Mr. ARMEY), the majority leader. Has Mr. BOEHNER. Mr. Speaker, I yield 2 Wonderland. When Alice is admonished made serious allegations. minutes to the gentleman from Califor- to say what she means, she says ‘‘I do. As a 16-year member of the Commit- nia (Mr. ROHRABACHER). At least I mean what I say. That is the tee on Government Reform and Over- Mr. ROHRABACHER. Mr. Speaker, same thing, you know.’’ ‘‘Not quite sight and one who is a subcommittee my colleague from Pennsylvania asks so,’’ she was then lectured. ‘‘Saying chair in my time, I, too, agree that be- how could we possibly think that a do- that you mean what you say is the cause those allegations have been made nation of $80,000 could cause the Presi- same as I mean what I say. I say what they should be investigated. dent to do something so terrible as has I mean would be like saying I say what The gentleman from Texas (Mr. been suggested here. We are not talk- I eat is the same as I eat what I see.’’ ARMEY), the majority leader, said H3458 CONGRESSIONAL RECORD — HOUSE May 19, 1998 something that stuck with me, and I there and they are serious, know that and Democrats, we recognize that we remember he said this is too big, in ef- those allegations are out there and the are Americans first, and we owe it to fect, for partisanship. He is absolutely American people want this investiga- the citizens of this Nation to get to the correct. That is why we ask that to not tion. But it has got to be credible if it bottom of these disturbing allegations. be a partisan investigation, because is to have any credibility. b 2030 these allegations are so serious that So we want to work with you, Mr. are being made that if the American Speaker, want to work with the other Mr. WAXMAN. Mr. Speaker, I yield people are to accept the results of any side. We want that investigation. If it myself 30 seconds. Mr. Speaker, I want a serious inves- investigation it must be a credible in- is, and I believe it is, these allegations tigation. I want us to be able to con- vestigation. are that important, simply by being duct this investigation responsibly, So what we have asked those of us raised, then it demands going the extra competently and fairly. We have a res- Democrats, and I hate to think on the level to make sure that that investiga- olution on the floor like this. After all Committee on Government Reform and tion has the credibility and the biparti- the months we have asked for biparti- Oversight we have now gotten to the sanship that is so important. sanship, it still seems to me like we are point of having to identify ourselves as That is why I will vote for this, be- in the process of kids’ play. partisan labels, we never had to do that cause I happen to believe that these in- Let us work together. This matter before, but those of us who voted dividuals ought to be given immunity. must be investigated in a way that against immunity do not vote against I also want to make sure that the com- speaks well of the House. I ask the immunity because we want to stop an mittee has to operate in such a way Speaker to work with us. This is not investigation. We voted because it is that the investigation and the product the time to fire up your base; this is not a credible investigation. is credible and not simply something the time for you to be a leader of the The gentleman from Ohio (Mr. that at the end of the day was not wor- House for the people of this country. BOEHNER) referred to allegations in the thy of the entire Congress. Mr. BOEHNER. Mr. Speaker, I yield Mr. BOEHNER. Mr. Speaker, I yield 1 New York Times, and that, on the basis the balance of my time to the gen- of those, the committee ought to look minute to my colleague from Ohio (Mr. tleman from California (Mr. COX), the at it. But it also should be mentioned TRAFICANT). chairman of the Republican Policy (Mr. TRAFICANT asked and was the New York Times editorial of May 8, Committee. which says, and I quote: given permission to revise and extend The SPEAKER pro tempore (Mr. his remarks.) By now, even Representative DAN BURTON RIGGS). The gentleman from California to recognize that he has become an impedi- Mr. TRAFICANT. Mr. Speaker, this (Mr. COX) is recognized for one and ment to a serious investigation of the 1996 debate is not about the gentleman from campaign finance scandals. three-quarter minutes. Indiana (Mr. BURTON) or Bill Clinton. It Mr. COX of California. Mr. Speaker, I If the 1996 campaign finance scandals is not about the Lincoln bedroom or thank the gentleman for yielding me are such that he is an impediment to Monica Lewinsky. This debate is about time. them, what about something as serious our national security. Mr. Speaker, what I hear from the as the allegations that have been made This is no fly on our face. This is an minority side is that they are in sup- by the gentleman from the other side? elephant eating our assets, and that port of granting immunity to these We have seen an investigation on our elephant is China, Communist China, witnesses; just not now, just not at this committee which was to be bipartisan; with a foothold on our soil that has time and this place, just not in this and, yet, 1,037 out of 1,049 subpoenas, missiles, as we speak, pointing and ca- way, because they are busy protesting depositions, interrogatories, and other pable of hitting every American city, a the committee and its existence. information requests, in this so-called nation that threatened Taiwan. What It is perhaps politically acceptable to bipartisan investigation have been tar- are we, nuts? Now we find out that engage in acts of political protest in an geted at whom? At Democrats, despite Johnny chunk got $300,000 from a mem- election year, but obstruction of jus- the fact that in Republican, in soft, de- ber of the Chinese Army to gain access tice is not an acceptable form of pro- spite the fact that in the soft money to the White House, and he boasts test. Today, the minority stands alone raising contest it was the Republican about it. in obstructing the grants of immunity Party that raised the most soft money Look, the White House is not a one- to these 4 witnesses, because the Clin- and indeed it is the soft money that is stop shopping mall for campaign head- ton administration—— the basis of 95 percent of all allega- quarters, folks. Congress must inves- POINT OF ORDER tions, whether directed at Republicans tigate this matter, and a Congress that Mr. WAXMAN. Mr. Speaker, I rise to or at Democrats. plays partisan politics with this is a a point of order. Mr. Speaker, we want immunity. We Congress that endangers the national The SPEAKER pro tempore. The gen- want a thorough investigation. We security of every citizen. tleman will state his point of order. want to walk with or talk and work I support the resolution, and I am Mr. WAXMAN. Mr. Speaker, I would with the leadership of the other side. glad to see that the Democrats will be inquire of the Chair whether an accusa- We want a credible investigation. supporting it as well. We must support tion of obstruction of justice is per- What is a credible investigation? It is this resolution, and we must inves- mitted on the House floor. one like they did in Watergate. It is tigate this matter. The SPEAKER pro tempore. The ref- one like they did in Iran Contra. It is Mr. BOEHNER. Mr. Speaker, I yield 1 erence to obstruction of justice should one like our committee did up until a minute to the gentleman from Arizona not be made with respect to specific or couple years ago in which, when there (Mr. HAYWORTH). certain Members of the House of Rep- is a subpoena to be issued, it cannot be Mr. HAYWORTH. Mr. Speaker, I resentatives. unilaterally issued by one person. That thank my colleague from Ohio on the Mr. COX of California. Mr. Speaker, is abuse of power. But that one person other side of the aisle for offering the with the permission of the gentleman, must consult with the minority. proper picture here. I will withdraw the remark, to the ex- If there is no agreement reached, we Mr. Speaker, I rise without venom or tent that it conveys violation of stat- take it to the committee. That is all. vitriol tonight. My colleague from ute. I do not mean to suggest that. Then the best sides wins. The side that West Virginia is correct. These are se- What I mean to suggest very explicitly demonstrates the merits of the argu- rious allegations that go to the heart is that the minority is obstructing ment decides whether or not that sub- of our constitutional republic. This what the Justice Department itself poena is issued. That is all. That is the must transcend partisanship. This Con- wishes to do. way this committee has operated and gress must do its constitutional duty. In its defense of the Clinton Adminis- that is the way this Congress has oper- Our founders wisely granted this tration, the minority is more tenden- ated until recently. branch oversight over the executive tious than is the administration itself. So, yes, the American people deserve branch. Accordingly, these witnesses The administration has no objection to that credible investigation. They must should be granted immunity for all the the grant of immunity to these wit- know that these allegations are out right reasons, because, as Republicans nesses. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3459 The most important of the four wit- Singe we last voted in committee, to transfer leadership of the inquiry to an- nesses whose testimony we seek to im- new information has come to light in other Republican on the committee. They munize is Kent La. Kent La is the the New York Times about the possi- will also ask the committee to adopt the United States distributor for Red Pa- bility that Johnny Chung may have same bipartisan rules for issuing subpoenas and releasing documents that have been fol- goda Mountain Cigarettes, the largest been a conduit for political contribu- lowed by all previous Congressional inves- Communist Chinese brand. The man tions from China. The new allegations tigations. who is a distributor for these ciga- are serious and deserve thorough con- But it should not come to that. If Mr. Bur- rettes in the United States is the per- gressional investigation. Although ton will not step aside, Speaker Newt Ging- son whose testimony we seek to hear. there is no indication that the four rich should convene the Republican caucus The contributions that Mr. La is witnesses seeking immunity have in- and ask it to name a replacement. Mr. Ging- going to testify about, from Com- formation relevant to these new allega- rich should also agree to rules both to pro- munist Chinese tobacco billionaire Ted tions, the new evidence reinforces my vide a check on the new chairman’s power and to enhance bipartisanship. Sioeng, his family and their associates belief that the witnesses should be At the same meeting, the committee will in the worldwide tobacco business, to- given immunity. wrestle with whether to grant immunity talled over $400,000 to the Democratic The new evidence also reinforces my from prosecution to four witnesses who are National Committee in 1996 alone. All belief that DAN BURTON is the wrong expected to testify about questionable dona- these contributions were solicited by person to be leading the investigation. tions to Democrats in the 1996 campaign. John Huang. $50,000 of them came from We are dealing with extremely serious House Democrats have threatened to block Kent La himself. allegations. We owe the American peo- immunity as leverage to win a rules change We can differ about the facts, but we ple a serious, credible investigation. granting them more say. By agreeing to im- should not differ about whether to get provements in the rules, Republicans would The Committee's Democrats have said we remove a major criticism of the committee’s the facts. Let us get the truth. Let us would vote for immunity if the Dan Burton process as well as the Democrats’ excuse for grant immunity to these witnesses, as problem were fixed. We have said we would denying immunity. the Clinton administration agrees we encourage the Democrats on either the House For now, Mr. Gingrich seems determined can and must. Oversight Committee or the House Inter- to back Mr. Burton. That will only delay Mr. WAXMAN. Mr. Speaker, I rise in national Relations Committee to vote for im- getting a truthful account of fund-raising in support of the Boehner Resolution. munity if this issue were sent to those commit- the 1996 election. I completely agree that the four wit- tees. We have said we would support immu- There is a Dan Burton problem. It's very nesses should be given immunity. I be- nity on the floor. But we have been as clear real. When the Chairman leading the inves- lieve every Democrat on the House as we can that we will not support immunity tigation calls the President a scumbag, when Government Reform and Oversight without first addressing the Dan Burton prob- he admits he's ``after'' the President, when he Committee also supports immunity for lem. doctors transcripts that purport to represent the witnesses. In fact, our only reserva- So here we are today and the Republican evidence the committee obtained, when he tion on the merits has been that the leadership has made no attempt to work with issues over 600 unilateral subpoenas and tar- witnesses still haven’t provided prof- us in a bipartisan way. The Republican leader- gets 99% of his 1000 subpoena and other in- fers of their testimony, which is a ship is not sending this issue to another com- formation request to Democrats, weÐRepub- standard and essential procedure in im- mittee, it's not bringing the issue up for a floor licans and DemocratsÐhave a very real prob- munity cases. vote, it's not proposing to fix the Burton prob- lem. When the committee's Republican Chief That is what we said when the Com- lem. The leadership is here telling us immunity Counsel quits because he's not allowed to mittee first voted on immunity on is essential and then insisting on the one im- conduct a professional investigation, when the April 23. It’s what I said in a letter to munity option they know we will oppose. It's Republican Chief Investigator is fired, we have the Speaker on May 10. And it’s what rare that partisanship and cynicism are this a very real problem and a committee out of we said again when the Committee transparent. control. But because Republicans have a ma- voted on immunity on May 13. Two weeks ago, the New York Times, which jority in the House, it's a problem only they In my May 10 letter to the Speaker, has been leading the call for a thorough and can solve. I wrote: aggressive investigation into the President's All the Democrats ask in what the New York I am writing in the spirit of bipartisanship 1996 campaign, printed an editorial entitled Times proposed. Act responsibly. Solve the to work with you to find a constructive solu- ``The Dan Burton Problem.'' I want to take a problem. We are prepared to vote for immu- tion to the difficult problems facing the moment and read it. nity if you are willing to work with us in even Committee on Government Reform an Over- [From the New York Times, May 8, 1998] the most minimal way. sight. During the past several weeks, you I'm voting for this resolution today because have personally attacked me and questioned THE DAN BURTON PROBLEM my integrity without justification. I believe, By now even Representative Dan Burton it's a meaningless gimmick. It's an empty ex- however, that the American people expect ought to recognize that he has become an ercise in political posturing. I also should point more from us than name-calling and partisan impediment to a serious investigation of the out for the record that the Resolution contains battles. Instead of escalating this fight, I 1996 campaign finance scandals. He has dis- a number of basic factual errors, and I ask want to make a genuine attempt to work missed David Bossie, the mischievous aide unanimous consent that information correcting with you to meet their expectations. who helped issue inaccurate transcripts of these mistakes be inserted after my state- I am prepared to recommend to my Demo- Webster Hubbell’s jailhouse conversation’s, ment. cratic colleagues that they support the pend- and has apologized to his fellow Republicans. ing immunity requests. But before I do, I be- But: that cannot compensate for inept be- A meaningful act would be to reform the lieve the rules and procedures guiding the havior that has hobbled the inquiry and com- procedures we have in the Government Re- Committee’s campaign finance investigation plicated Independent: Counsel Kenneth form Committee, or to send this matter to an- must be changed so that the Committee can Starr’s criminal investigation of intriguing other committee so that we can get on with conduct a fair and thorough investigation. comments on the tapes. If the House inquiry the investigation. Mr. Speaker, if this matter is I ask unanimous consent that the is to be responsible, someone else on Mr. as important to you as you say it isÐand as full text of this letter be inserted in Burton’s committee should run it. it should beÐwork with us for a constructive Coming on the heels of an impolitic re- investigation. Don't posture on such an impor- the RECORD. mark by Mr. Burton about the President two Two weeks have passed, and the weeks ago, the tapes fiasco is forcing House tant issue. Democrats are readyÐhave been Speaker still has not responded to my Republicans to confront two blunders. The readyÐto vote for immunity. All we ask is that letter and my request that we work to- first was to entrust the investigation of cam- the investigation be fair, bipartisan, and com- gether. We have tried to make it as paign finance abuses to Mr. Burton, the petent. clear as possible that our problem isn’t chairman of the House Government Reform Instead of bringing us together and acting with immunity; our problem is with and Oversight Committee. The second was to rationally, the Republican leadership is bring- DAN BURTON and his handling of the in- give him unilateral power to release con- ing a gimmick to the floor and continuing to vestigation. fidential information. Mr. Burton, a fierce allow what should have been a serious inves- partisan not known for balanced judgment, That’s a problem the Speaker, Mr. was plainly the wrong man for a sensitive tigation to degenerate into a circus. Instead of BOEHNER, and the other members of the job. dealing with the Dan Burton problem, which is Republican leadership insist on ignor- When the committee convenes next unpleasant for them to confront, they pretend ing. Wednesday, Democrats plan to offer motions it doesn't exist. H3460 CONGRESSIONAL RECORD — HOUSE May 19, 1998 I urge all my colleagues to vote for this gim- Chung, Ted Sioeng, and Gene Lum. It is not Hoekstra McKinney Sanford mick. But I ask the Republican leadership to yet clear, however, that any of the four wit- Holden Meehan Sawyer nesses have significant information about Hooley Menendez Saxton show some genuine leadership. Make some Horn Metcalf Scarborough the alleged illegal activities involving for- Hostettler Mica Schaefer, Dan tough decisions. Give true bipartisanship a try. eign contributions. Based on what is cur- And work with us so that we can have a Houghton Millender- Schaffer, Bob rently known about the witnesses, they Hoyer McDonald Scott meaningful investigation. would appear to be relatively minor wit- Hulshof Miller (CA) Sensenbrenner If you are going to send this to the commit- nesses with little new information to provide Hunter Miller (FL) Serrano tee for another vote, take some time first to investigators. Hutchinson Minge Sessions Hyde Mink Shadegg meet with the minority members and try to find The SPEAKER pro tempore. The Inglis Moakley Shaw common ground. If you don't, it will be abso- question is on the motion offered by Istook Mollohan Shays lutely clear that this is all about cynical politics, the gentleman from California (Mr. Jackson (IL) Moran (KS) Sherman not genuine concern. And the American peo- Jackson-Lee Moran (VA) Shimkus Cox) that the House suspend the rules (TX) Morella Sisisky ple will have yet another reason to tune us all and agree to the resolution, House Res- Jefferson Murtha Skeen out. olution 440. Jenkins Myrick Skelton John Nadler Slaughter FACTUAL INACCURACIES IN H. RES. 440 The question was taken. Johnson (CT) Neal Smith (MI) Claim: ‘‘[M]ore than 90 witnesses in the in- Mr. WAXMAN. Mr. Speaker, I object Johnson (WI) Nethercutt Smith (NJ) vestigation have either asserted the fifth to the vote on the ground that a Johnson, E. B. Neumann Smith (OR) amendment or fled the United States to Johnson, Sam Ney Smith (TX) quorum is not present and make the Jones Northup Smith, Adam avoid testifying.’’ point of order that a quorum is not Fact: This number is misleading because it Kanjorski Norwood Smith, Linda Kaptur Nussle Snowbarger includes: 12 individuals who have been given present. The SPEAKER pro tempore. Evi- Kasich Oberstar Snyder immunity and already testified; 8 Buddhist Kelly Obey Solomon nuns who were never immunized because dently a quorum is not present. Kennedy (MA) Olver Souder their testimony would have duplicated other The Sergeant at Arms will notify ab- Kennedy (RI) Ortiz Spence testimony; 21 individuals who are listed as sent Members. Kennelly Owens Spratt Kildee Oxley Stabenow having fled the country who in fact live in Without objection, the three suspen- foreign countries; 11 individuals who, while Kilpatrick Packard Stark sion votes postponed earlier today will Kim Pallone Stearns not cooperating with Congress, have been be 5 minute votes immediately follow- Kind (WI) Pappas Stenholm convicted by or are cooperating with the De- King (NY) Parker Stokes partment of Justice. ing this vote, so there will be a 15 Kingston Pascrell Strickland Claim: ‘‘[S]ubsequent to the receipt of the minute vote, followed by three 5 Kleczka Pastor Stump illegal campaign contributions from Com- minute votes. Klink Paul Stupak munist Chinese officials the Clinton Admin- There was no objection. Klug Payne Sununu istration relaxed export controls . . . on the Knollenberg Pease Talent The vote was taken by electronic de- Kolbe Pelosi Tanner sale and export of sophisticated satellite vice, and there were—yeas 402, nays 0, Kucinich Peterson (MN) Tauscher technology to China.’’ not voting 30, as follows: LaFalce Peterson (PA) Tauzin Fact: This statement is inaccurate. The LaHood Petri Taylor (MS) Clinton administration relaxed export con- [Roll No. 161] Lampson Pickering Taylor (NC) trols before, not after, June 1996, when John- YEAS—402 Lantos Pickett Thomas Largent Pitts Thompson ny Chung reportedly first met Liu Chaoying. Abercrombie Cardin Ensign The Clinton administration announced its Latham Pombo Thornberry Ackerman Carson Eshoo LaTourette Pomeroy Thune decision to move commercial communica- Aderholt Castle Etheridge Lazio Porter Thurman tions satellites from the Munitions List to Allen Chabot Evans Leach Portman Tiahrt the Commerce Control List of dual-use Andrews Chambliss Everett Lee Poshard Tierney items, moving export licensing jurisdiction Armey Chenoweth Farr Levin Price (NC) Torres from the Department of State to the Depart- Bachus Christensen Fazio Lewis (CA) Pryce (OH) Towns Baker Clayton Filner Lewis (GA) Quinn Traficant ment of Commerce, in March 1996—three Baldacci Clement Foley months before Mr. Chung allegedly met Ms. Lewis (KY) Radanovich Turner Ballenger Clyburn Forbes Linder Rahall Upton Liu. Moreover, the practice of issuing waiv- Barcia Coble Ford Lipinski Ramstad Velazquez ers was not begun by the Clinton Adminis- Barrett (NE) Coburn Fossella LoBiondo Rangel Vento tration. According to the New York Times Barrett (WI) Collins Fowler Lofgren Redmond Visclosky (May 17, 1998), it was first used by the Bush Bartlett Combest Fox Lowey Regula Walsh Administration. Barton Condit Frank (MA) Lucas Reyes Wamp Bass Conyers Franks (NJ) Luther Riggs Watkins Claim: ‘‘[T]he Department of Justice does Becerra Cook Frelinghuysen not object to the Committee on Government Maloney (CT) Riley Watt (NC) Bentsen Costello Frost Maloney (NY) Rivers Watts (OK) Reform and Oversight’s desire to confer im- Bereuter Cox Furse Manton Rodriguez Waxman munity on . . . Kent La.’’ Berman Coyne Gallegly Manzullo Roemer Weldon (FL) Fact: The Department of Justice does have Berry Cramer Gejdenson Markey Rogan Weldon (PA) serious reservations about immunizing Kent Bilirakis Crapo Gekas Martinez Rogers Weller La. In a letter dated April 22, 1998, the De- Bishop Cubin Gephardt Mascara Rohrabacher Wexler Blagojevich Cunningham Gibbons Matsui Ros-Lehtinen Weygand partment of Justice expressed its view that Bliley Danner Gilchrest ‘‘if Mr. La were to testify publicly at this McCarthy (MO) Rothman White Blumenauer Davis (FL) Gillmor McCarthy (NY) Roukema Whitfield time, the Department’s criminal investiga- Blunt Davis (IL) Gilman McCollum Roybal-Allard Wicker tion could in fact be compromised. Even if Boehlert Davis (VA) Goode McCrery Royce Wise Mr. La were to testify in a closed session, Boehner Deal Goodlatte McDermott Rush Wolf any disclosure or leak of that testimony, Bonilla DeFazio Gordon McGovern Ryun Woolsey whether intentional or inadvertent, could se- Bonior DeGette Goss McHale Sabo Wynn Bono Delahunt Graham McHugh Salmon Yates riously compromise the investigation and Borski DeLauro Granger any subsequent prosecutions.’’ The numer- McInnis Sanchez Young (AK) Boswell DeLay Green McIntyre Sanders Young (FL) ous leaks of information during the course of Boucher Deutsch Gutierrez McKeon Sandlin Committee’s investigation suggests that the Boyd Diaz-Balart Gutknecht confidentiality that the Department of Jus- Brady Dickey Hall (OH) NOT VOTING—30 tice has requested could not be maintained. Brown (CA) Dingell Hall (TX) Archer Ewing McDade Claim: The four witnesses have ‘‘direct Brown (FL) Dixon Hamilton Baesler Fattah McIntosh Brown (OH) Doggett Hansen knowledge’’ concerning ‘‘Communist Chinese Barr Fawell McNulty Bryant Dooley Hastert Bateman Ganske Meek (FL) attempts to influence United States policy Bunning Doolittle Hastings (FL) and make illegal campaign contributions,’’ Bilbray Gonzalez Meeks (NY) Burr Doyle Hastings (WA) Clay Goodling Paxon ‘‘illegal foreign money contributions made Burton Dreier Hayworth Cooksey Greenwood Schumer to the Democratic National Committee by Buyer Duncan Hefley Crane Harman Shuster Ted Sioeng,’’ or ‘‘convicted felon Gene Callahan Dunn Hefner Cummings Hinchey Skaggs Lum[’s] . . . method of making illegal for- Calvert Edwards Herger Dicks Livingston Waters Camp Ehlers Hill eign money contributions to Clinton-Gore Campbell Ehrlich Hilleary b 2054 ’96.’’ Canady Emerson Hilliard Fact: The four witnesses have had employ- Cannon Engel Hinojosa Mr. ABERCROMBIE changed his vote ment or business relationships with Johnny Capps English Hobson from ‘‘nay’’ to ‘‘yea.’’ May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3461 So (two-thirds having voted in favor Diaz-Balart Kildee Pickett Waters Weller Wolf Dickey Kilpatrick Pitts Watkins Wexler Woolsey thereof) the rules were suspended and Dingell Kim Pombo Watt (NC) Weygand Wynn the resolution was agreed to. Dixon Kind (WI) Pomeroy Watts (OK) White Yates The result of the vote was announced Doggett King (NY) Porter Waxman Whitfield Young (AK) as above recorded. Dooley Kingston Portman Weldon (FL) Wicker Young (FL) Doolittle Kleczka Poshard Weldon (PA) Wise A motion to reconsider was laid on Doyle Klink Price (NC) the table. Dreier Klug Pryce (OH) NAYS—1 f Duncan Knollenberg Quinn Sanford Dunn Kolbe Radanovich NOT VOTING—26 PERSONAL EXPLANATION Edwards Kucinich Rahall Ehlers LaFalce Ramstad Archer Fawell McIntosh Mr. BILBRAY. Mr. Speaker, on Rollcall No. Ehrlich LaHood Rangel Baesler Ganske McNulty 161, I was unavoidably detained. Had I been Emerson Lampson Redmond Bateman Gonzalez Meek (FL) Engel Lantos Regula Clay Goodling Meeks (NY) present, I would have voted ``Yes''. English Largent Reyes Cooksey Greenwood Paxon f Ensign Latham Riggs Crane Harman Schumer Eshoo LaTourette Riley Dicks Hinchey Shuster ANNOUNCEMENT BY THE SPEAKER Etheridge Lazio Rivers Ewing Kennedy (MA) Skaggs Evans Leach Rodriguez Fattah McDade PRO TEMPORE Everett Lee Roemer b The SPEAKER pro tempore (Mr. Farr Levin Rogan 2103 Fazio Lewis (CA) Rogers RIGGS). Pursuant to clause 5, rule I, the Filner Lewis (GA) Rohrabacher So (two-thirds having voted in favor Chair will now put the question on Foley Lewis (KY) Ros-Lehtinen thereof) the rules were suspended and each motion to suspend the rules on Forbes Linder Rothman the bill, as amended, was passed. which further proceedings were post- Ford Lipinski Roukema The result of the vote was announced Fossella Livingston Roybal-Allard poned earlier today in the order in Fowler LoBiondo Royce as above recorded. which that motion was entertained. Fox Lofgren Rush A motion to reconsider was laid on Votes will be taken in the following Frank (MA) Lowey Ryun the table. order: Franks (NJ) Lucas Sabo Frelinghuysen Luther Salmon f H.R. 3039, by the yeas and nays; Frost Maloney (CT) Sanchez H.R. 3718, de novo; and Furse Maloney (NY) Sanders LIMITING JURISDICTION OF FED- H.R. 3809, by the yeas and nays. Gallegly Manton Sandlin ERAL COURTS WITH RESPECT TO Gejdenson Manzullo Sawyer PRISON RELEASE ORDERS The Chair will reduce to 5 minutes Gekas Markey Saxton the time for all electronic votes in this Gephardt Martinez Scarborough The SPEAKER pro tempore (Mr. series. Gibbons Mascara Schaefer, Dan PEASE). The pending business is the Gilchrest Matsui Schaffer, Bob f Gillmor McCarthy (MO) Scott question de novo of suspending the Gilman McCarthy (NY) Sensenbrenner rules and passing the bill, H.R. 3718. VETERANS TRANSITIONAL HOUS- Goode McCollum Serrano The Clerk read the title of the bill. ING OPPORTUNITIES ACT OF 1998 Goodlatte McCrery Sessions The SPEAKER pro tempore. The Gordon McDermott Shadegg The SPEAKER pro tempore. The Goss McGovern Shaw question is on the motion offered by pending business is the question of sus- Graham McHale Shays the gentleman from North Carolina pending the rules and passing the bill, Granger McHugh Sherman (Mr. COBLE) that the House suspend the Green McInnis Shimkus H.R. 3039, as amended. Gutierrez McIntyre Sisisky rules and pass the bill, H.R. 3718. The Clerk read the title of the bill. Gutknecht McKeon Skeen The question was taken. The SPEAKER pro tempore. The Hall (OH) McKinney Skelton RECORDED VOTE question is on the motion offered by Hall (TX) Meehan Slaughter Hamilton Menendez Smith (MI) Mr. SCOTT. Mr. Speaker, I demand a the gentleman from Arizona (Mr. Hansen Metcalf Smith (NJ) recorded vote. STUMP) that the House suspend the Hastert Mica Smith (OR) A recorded vote was ordered. rules and pass the bill, H.R. 3039, as Hastings (FL) Millender- Smith (TX) Hastings (WA) McDonald Smith, Adam The SPEAKER pro tempore. This amended, on which the yeas and nays Hayworth Miller (CA) Smith, Linda will be a 5-minute vote. are ordered. Hefley Miller (FL) Snowbarger The vote was taken by electronic de- The vote was taken by electronic de- Hefner Minge Snyder vice, and there were—ayes 352, noes 53, vice, and there were—yeas 405, nays 1, Herger Mink Solomon Hill Moakley Souder not voting 27, as follows: not voting 26, as follows: Hilleary Mollohan Spence [Roll No. 163] [Roll No. 162] Hilliard Moran (KS) Spratt Hinojosa Moran (VA) Stabenow AYES—352 YEAS—405 Hobson Morella Stark Abercrombie Borski Condit Abercrombie Boehner Christensen Hoekstra Murtha Stearns Ackerman Boswell Cook Ackerman Bonilla Clayton Holden Myrick Stenholm Aderholt Boucher Costello Aderholt Bonior Clement Hooley Nadler Stokes Allen Boyd Cox Allen Bono Clyburn Horn Neal Strickland Andrews Brady Coyne Andrews Borski Coble Hostettler Nethercutt Stump Armey Brown (CA) Cramer Armey Boswell Coburn Houghton Neumann Stupak Bachus Brown (FL) Crapo Bachus Boucher Collins Hoyer Ney Sununu Baker Brown (OH) Cubin Baker Boyd Combest Hulshof Northup Talent Baldacci Bryant Cummings Baldacci Brady Condit Hunter Norwood Tanner Ballenger Bunning Cunningham Ballenger Brown (CA) Conyers Hutchinson Nussle Tauscher Barcia Burr Danner Barcia Brown (FL) Cook Hyde Oberstar Tauzin Barr Burton Davis (FL) Barr Brown (OH) Costello Inglis Obey Taylor (MS) Barrett (NE) Buyer Davis (VA) Barrett (NE) Bryant Cox Istook Olver Taylor (NC) Bartlett Callahan Deal Barrett (WI) Bunning Coyne Jackson (IL) Ortiz Thomas Barton Calvert DeFazio Bartlett Burr Cramer Jackson-Lee Owens Thompson Bass Camp DeLauro Barton Burton Crapo (TX) Oxley Thornberry Becerra Canady DeLay Bass Buyer Cubin Jefferson Packard Thune Bentsen Cannon Deutsch Becerra Callahan Cummings Jenkins Pallone Thurman Bereuter Capps Diaz-Balart Bentsen Calvert Cunningham John Pappas Tiahrt Berman Cardin Dickey Bereuter Camp Danner Johnson (CT) Parker Tierney Berry Castle Doggett Berman Campbell Davis (FL) Johnson (WI) Pascrell Torres Bilbray Chabot Dooley Berry Canady Davis (IL) Johnson, E. B. Pastor Towns Bilirakis Chambliss Doolittle Bilbray Cannon Davis (VA) Johnson, Sam Paul Traficant Bishop Chenoweth Doyle Bilirakis Capps Deal Jones Payne Turner Blagojevich Christensen Dreier Bishop Cardin DeFazio Kanjorski Pease Upton Bliley Clayton Duncan Blagojevich Carson DeGette Kaptur Pelosi Velazquez Blunt Clement Dunn Bliley Castle Delahunt Kasich Peterson (MN) Vento Boehlert Coble Edwards Blumenauer Chabot DeLauro Kelly Peterson (PA) Visclosky Boehner Coburn Ehlers Blunt Chambliss DeLay Kennedy (RI) Petri Walsh Bonilla Collins Ehrlich Boehlert Chenoweth Deutsch Kennelly Pickering Wamp Bono Combest Emerson H3462 CONGRESSIONAL RECORD — HOUSE May 19, 1998 Engel Lantos Rivers Meehan Payne Stark Ensign Lampson Roemer English Largent Rodriguez Millender- Pelosi Stokes Eshoo Lantos Rogan Ensign Latham Roemer McDonald Rangel Stupak Etheridge Largent Rogers Eshoo LaTourette Rogan Miller (CA) Rush Thompson Everett Latham Rohrabacher Etheridge Lazio Rogers Oberstar Sabo Tierney Farr LaTourette Ros-Lehtinen Everett Levin Rohrabacher Obey Sanders Towns Foley Lazio Rothman Farr Lewis (CA) Ros-Lehtinen Olver Scott Velazquez Forbes Leach Roukema Fazio Lewis (KY) Rothman Owens Serrano Watt (NC) Ford Levin Royce Foley Linder Roukema Fossella Lewis (CA) Ryun Forbes Lipinski Roybal-Allard NOT VOTING—27 Fowler Lewis (KY) Salmon Fossella Livingston Royce Archer Fawell McNulty Fox Linder Sanchez Fowler LoBiondo Ryun Baesler Ganske Meek (FL) Franks (NJ) Lipinski Sandlin Fox Lofgren Salmon Bateman Gonzalez Meeks (NY) Frelinghuysen Livingston Saxton Franks (NJ) Lowey Sanchez Clay Goodling Paxon Frost LoBiondo Scarborough Frelinghuysen Lucas Sandlin Cooksey Greenwood Schumer Gallegly Lofgren Schaefer, Dan Frost Luther Sanford Crane Harman Shuster Gekas Lowey Schaffer, Bob Gallegly Maloney (CT) Sawyer Dicks Hinchey Skaggs Gephardt Lucas Sensenbrenner Gejdenson Maloney (NY) Saxton Ewing McDade Waters Gibbons Luther Sessions Gekas Manton Scarborough Fattah McIntosh Woolsey Gilchrest Maloney (CT) Shadegg Gephardt Manzullo Schaefer, Dan Gillmor Maloney (NY) Shaw Gibbons Markey Schaffer, Bob b 2111 Gilman Manzullo Shays Gilchrest Martinez Sensenbrenner Goode Mascara Sherman Gillmor Mascara Sessions Ms. PELOSI and Mr. RUSH changed Goodlatte Matsui Shimkus Gilman Matsui Shadegg their vote from ‘‘aye’’ to ‘‘no.’’ Gordon McCarthy (MO) Sisisky Goode McCarthy (MO) Shaw So (two-thirds having voted in favor Goss McCarthy (NY) Skeen Goodlatte McCarthy (NY) Shays Graham McCollum Skelton Gordon McCollum Sherman thereof) the rules were suspended and Granger McCrery Slaughter Goss McCrery Shimkus the bill was passed. Gutknecht McHale Smith (MI) Graham McGovern Sisisky The result of the vote was announced Hall (OH) McHugh Smith (NJ) Granger McHale Skeen as above recorded. Hall (TX) McInnis Smith (OR) Green McHugh Skelton Hamilton McIntyre Smith (TX) Gutknecht McInnis Slaughter A motion to reconsider was laid on Hansen McKeon Smith, Linda Hall (OH) McIntyre Smith (MI) the table. Hastert Meehan Snowbarger Hall (TX) McKeon Smith (NJ) Hastings (WA) Menendez Snyder Hamilton Menendez Smith (OR) f Hayworth Metcalf Solomon Hansen Metcalf Smith (TX) Hefley Mica Souder Hastert Mica Smith, Adam PERSONAL EXPLANATION Hefner Millender- Spence Hastings (WA) Miller (FL) Smith, Linda Herger McDonald Spratt Hayworth Minge Snowbarger Mr. CUMMINGS. Mr. Speaker, on rollcall Hill Miller (FL) Stabenow Hefley Mink Snyder number 163, my vote on H. Res. 440, I was Hilleary Minge Stearns Hefner Moakley Solomon unavoidably detained and missed the vote. Hinojosa Mink Stenholm Herger Mollohan Souder Had I been present, I would have voted in Hobson Moran (KS) Strickland Hill Moran (KS) Spence Hoekstra Moran (VA) Stump Hilleary Moran (VA) Spratt favor of the resolution. Holden Morella Stupak Hinojosa Morella Stabenow f Hooley Murtha Sununu Hobson Murtha Stearns Horn Myrick Talent Hoekstra Myrick Stenholm DRUG FREE BORDERS ACT OF 1998 Hostettler Nethercutt Tanner Holden Nadler Strickland Houghton Neumann Tauscher Hooley Neal Stump The SPEAKER pro tempore. The Hulshof Ney Tauzin Horn Nethercutt Sununu pending business is the question of sus- Hunter Northup Taylor (MS) Hostettler Neumann Talent Hutchinson Norwood Taylor (NC) Houghton Ney Tanner pending the rules and passing the bill, Hyde Nussle Thomas Hoyer Northup Tauscher H.R. 3809, as amended. Inglis Oxley Thornberry Hulshof Norwood Tauzin The Clerk read the title of the bill. Istook Packard Thune Hunter Nussle Taylor (MS) The SPEAKER pro tempore. The Jackson-Lee Pallone Thurman Hutchinson Ortiz Taylor (NC) (TX) Pappas Tiahrt Hyde Oxley Thomas question is on the motion offered by Jefferson Parker Traficant Inglis Packard Thornberry the gentleman from Texas (Mr. AR- Jenkins Pascrell Turner Istook Pallone Thune CHER) that the House suspend the rules John Pease Upton Jackson-Lee Pappas Thurman Johnson (CT) Peterson (PA) Walsh (TX) Parker Tiahrt and pass the bill, H.R. 3809, as amend- Johnson (WI) Petri Wamp Jefferson Pascrell Torres ed, on which the yeas and nays are or- Johnson, Sam Pickering Watkins Jenkins Pastor Traficant dered. Jones Pickett Watts (OK) John Paul Turner This will be a 5-minute vote. Kanjorski Pitts Waxman Johnson (CT) Pease Upton Kaptur Pombo Weldon (FL) Johnson (WI) Peterson (MN) Vento The vote was taken by electronic de- Kasich Pomeroy Weldon (PA) Johnson, Sam Peterson (PA) Visclosky vice, and there were—yeas 320, nays 86, Kelly Porter Weller Jones Petri Walsh not voting 26, as follows: Kennelly Portman Weygand Kanjorski Pickering Wamp Kildee Price (NC) White Kaptur Pickett Watkins [Roll No. 164] Kim Pryce (OH) Whitfield Kasich Pitts Watts (OK) YEAS—320 Kind (WI) Quinn Wicker Kelly Pombo Waxman King (NY) Radanovich Wise Kennedy (MA) Pomeroy Weldon (FL) Abercrombie Brady Cook Kingston Rahall Wolf Kennelly Porter Weldon (PA) Ackerman Brown (CA) Cox Kleczka Ramstad Woolsey Kildee Portman Weller Aderholt Brown (FL) Coyne Klink Rangel Wynn Kim Poshard Wexler Andrews Bryant Cramer Klug Redmond Yates Kind (WI) Price (NC) Weygand Bachus Bunning Crapo Knollenberg Regula Young (AK) King (NY) Pryce (OH) White Baker Burr Cubin Kolbe Riggs Young (FL) Kingston Quinn Whitfield Ballenger Burton Cummings LaFalce Riley Klink Radanovich Wicker Barcia Buyer Cunningham LaHood Rivers Klug Rahall Wise Barr Callahan Danner Knollenberg Ramstad Wolf Barrett (NE) Calvert Davis (FL) NAYS—86 Bartlett Kolbe Redmond Wynn Camp Davis (VA) Allen Delahunt Johnson, E. B. Barton Kucinich Regula Yates Campbell Deal Baldacci DeLauro Kennedy (MA) Bass LaFalce Reyes Young (AK) Canady DeLay Barrett (WI) Deutsch Kennedy (RI) Bentsen LaHood Riggs Young (FL) Cannon Diaz-Balart Becerra Dingell Kilpatrick Bereuter Lampson Riley Capps Dickey Berman Engel Kucinich Berry Cardin Dixon Bilbray Evans Lee Bilirakis NOES—53 Castle Doggett Blumenauer Fazio Lewis (GA) Bishop Chabot Dooley Bonilla Filner Manton Barrett (WI) Dingell Jackson (IL) Blagojevich Chambliss Doolittle Bonior Frank (MA) Markey Blumenauer Dixon Johnson, E. B. Bliley Chenoweth Doyle Brown (OH) Furse Martinez Bonior Evans Kennedy (RI) Blunt Christensen Dreier Carson Gejdenson McDermott Campbell Filner Kilpatrick Boehlert Clayton Duncan Clyburn Green McGovern Carson Ford Kleczka Boehner Clement Dunn Conyers Gutierrez McKinney Clyburn Frank (MA) Leach Bono Coble Edwards Costello Hastings (FL) Miller (CA) Conyers Furse Lee Borski Coburn Ehlers Davis (IL) Hilliard Moakley Davis (IL) Gutierrez Lewis (GA) Boswell Collins Ehrlich DeFazio Hoyer Mollohan DeGette Hastings (FL) McDermott Boucher Combest Emerson DeGette Jackson (IL) Nadler Delahunt Hilliard McKinney Boyd Condit English May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3463 Neal Reyes Stokes NOTICE OF INTENT TO OFFER MO- This rule is necessary simply to get Oberstar Rodriguez Thompson Obey Roybal-Allard Tierney TION TO INSTRUCT CONFEREES the ball rolling on this massive, com- Olver Rush Torres ON H.R. 2400, BUILDING EFFI- plex bill which always requires a great Ortiz Sabo Towns CIENT SURFACE TRANSPOR- deal of floor time. Owens Sanders Velazquez TATION AND EQUITY ACT OF 1998 Mr. Speaker, the annual defense au- Pastor Sanford Vento Paul Sawyer Visclosky Mr. OBEY. Mr. Speaker, pursuant to thorization bill is without question one Payne Scott Waters clause 1(c) of House Rule XXVIII, I of the most important bills we consider Pelosi Serrano Watt (NC) hereby notify the House of my inten- in this body each year. In doing our Peterson (MN) Smith, Adam Wexler business that sometimes seems rou- Poshard Stark tion tomorrow to offer the following tine, we should never lose sight of the NOT VOTING—26 motion to instruct House conferees on H.R. 2400, Building Efficient Surface fact that the number one duty of the Archer Fattah McIntosh Transportation and Equity Act of 1998: Federal Government is the protection Armey Fawell McNulty of national security and that is exactly Baesler Ganske Meek (FL) I move that the managers on the part Bateman Gonzalez Meeks (NY) of the House at the conference on the what this bill is all about here tonight. Clay Goodling Paxon disagreeing votes of the two Houses on As usual, the gentleman from South Cooksey Greenwood Schumer Carolina (Mr. SPENCE) and the gen- Crane Harman Shuster the bill, H.R. 2400, be instructed to in- Dicks Hinchey Skaggs sist that no provisions to prohibit or tleman from Missouri (Mr. SKELTON) Ewing McDade reduce service-connected disability and their staffs have done outstanding work, and I commend them and urge b 2119 compensation to veterans for smoking- related illnesses be included in the con- support for the rule so that they can Mr. DOGGETT changed his vote from ference report on H.R. 2400 to offset get on with their business tonight. Mr. Speaker, it is absolutely impera- ‘‘nay’’ to ‘‘yea.’’ spending for highway or transit pro- tive that this bill contain adequate Mr. MOLLOHAN changed his vote grams. from ‘‘yea’’ to ‘‘nay.’’ funding for our military personnel who So (two-thirds having voted in favor f are right now out in the field standing thereof) the rules were suspended and NATIONAL DEFENSE AUTHORIZA- vigilant on behalf of all Americans all the bill, as amended, was passed. TION ACT FOR FISCAL YEAR 1999 over this world. The result of the vote was announced Mr. Speaker, it is imperative that Mr. SOLOMON. Mr. Speaker, by di- as above recorded. this bill set out the policies which are rection of the Committee on Rules, I The title of the bill was amended so consistent with and seek to maintain call up House Resolution 435 and ask as to read: ‘‘A bill to authorize appro- the unique warrior culture of our mili- for its immediate consideration. priations for the United States Cus- tary, and that is exactly what it is, it The Clerk read the resolution, as fol- toms Service for drug interdiction, and is a warrior culture and that is what it lows: for other purposes.’’. has to be, for without that we cannot A motion to reconsider was laid on H. RES. 435 win wars, and that is what militaries the table. Resolved, That at any time after the adop- are for. Some people seem to have for- tion of this resolution the Speaker may, pur- f gotten that over the course of years. suant to clause 1(b) of rule XXIII, declare the Mr. Speaker, to the best extent pos- House resolved into the Committee of the sible this bill does all of that within PERSONAL EXPLANATION Whole House on the state of the Union for the budget restrictions we have to live Mr. ARMEY. Mr. Speaker, on rollcall No. consideration of the bill (H.R. 3616) to au- thorize appropriations for fiscal year 1999 for by. I congratulate and I commend both 164, I was unavoidably detained. Had I been the gentleman from South Carolina present, I would have voted ``aye.'' military activities of the Department of De- fense, to prescribe military personnel (Mr. SPENCE) and the gentleman from f strengths for fiscal year 1999, and for other Missouri (Mr. SKELTON) and again their purposes. The first reading of the bill shall staffs for their outstanding work on be- LEGISLATIVE PROGRAM be dispensed with. All points of order against half of military preparedness. (Mr. SOLOMON asked and was given consideration of the bill are waived. General At $270.8 billion, this bill once again permission to address the House for 1 debate shall be confined to the bill and shall adds money to the President’s annually minute.) not exceed two hours equally divided and controlled by the chairman and ranking mi- inadequate defense budget request. Mr. SOLOMON. Mr. Speaker, the last nority member of the Committee on Na- Very importantly, the bill provides for order of business this evening will be a tional Security. After general debate the the first time in 13 years an inflation rule which will make in order two Committee of the Whole shall rise without adjusted increase in procurement hours of general debate only, no motion. No further consideration of the bill spending. That means in being able to amendments, and then tomorrow the shall be in order except pursuant to subse- purchase the hardware that is going to first order of business will be taking up quent order of the House. give the best state of the art to young another rule on the defense authoriza- The SPEAKER pro tempore. The gen- men and women that serve in the mili- tion bill which will then make in order tleman from New York (Mr. SOLOMON) tary today. This is exceedingly impor- amendments. But for this evening, is recognized for 1 hour. tant. there will be no further votes if there is Mr. SOLOMON. Mr. Speaker, for the This account provides for the weap- no vote on this rule. purpose of debate only, I yield the cus- ons and equipment that we send our I would ask the gentleman from tomary 30 minutes to the gentleman young men into battle with and it has Texas if it is his understanding that he from Texas (Mr. FROST), a very strong been cut by nearly 70 percent since does not intend to ask for a vote on supporter of the defense budget, pend- 1985. I will bet Members did not know this rule. ing which I yield myself such time as I that, did they? It is well past time that Mr. FROST. Mr. Speaker, will the may consume. During consideration of we reversed this trend. gentleman yield? this resolution, all time yielded is for These accounts contain adequate Mr. SOLOMON. I yield to the gen- the purpose of debate only. funding for the President’s request of tleman from Texas. Mr. Speaker, House Resolution 435 is $36 billion for research and develop- Mr. FROST. Mr. Speaker, I do not in- a rule providing for general debate con- ment. Again, if we do not have the re- tend to ask for a vote on this rule. I sideration of H.R. 3616, the Fiscal 1999 search and development, we will not know of no one on my side of the aisle Defense Authorization Bill. The rule have that state of the art equipment who is going to ask for a vote on this waives points of order against consider- that will give our men and women the rule. ation of the bill and provides two hours best. These accounts contain adequate Mr. SOLOMON. Mr. Speaker, if we of general debate only, which we will funding for the weapons systems of to- can then proceed with the debate on take up in just a few minutes. Further morrow, such as the F–22 Stealth the rule, we do not intend to use much consideration of the bill will be gov- Fighter, the Marine Corps V–22 troop time on it and then we can go right to erned by a rule that the Committee on carrier, and the next generation of air- the general debate. Rules will report out later today. craft carriers and submarines. These H3464 CONGRESSIONAL RECORD — HOUSE May 19, 1998 accounts also contain funding to bring going to be able to advance up the pro- substantive issues relating to the oper- us one step closer to developing and de- motion ladder? And under today’s mili- ations of the Department of Defense. ploying defenses against ballistic mis- tary level of funding, the answer is no. Mr. Speaker, there is a matter relat- siles, something we may need even They know they will be cashiered out ed to the consideration of this rule by sooner if certain U.S. businesses con- at an early age and, therefore, how can the Committee on Rules I would like to tinue to assist China missile programs they afford to stay in the military and call to the attention of the House. Last with a wink and a nod from the Clinton still support their families? They can- Thursday afternoon, just minutes be- administration, and we will be debat- not. And that is why we have to pass fore the Committee on Rules convened ing this at length during this upcoming this bill today. to consider this noncontroversial rule, debate. All this, as the world just gets more the chairman announced from the floor This bill also contains, very impor- and more dangerous. We have a nuclear that the committee would be consider- tantly, a 3.6 percent pay raise for our arms race going on right now in South ing two resolutions which had not been military personnel and adds significant Asia, aided and abetted by the increas- previously noticed to the committee. funding increases for the barracks, for ingly aggressive Communist China, and This chairman said these matters were the family housing and for child care we will debate that at length for about being brought to the Committee on centers. We have to keep in mind, Mr. 4 hours tomorrow morning. The Middle Rules solely because the Democratic Speaker, that when I served with some East peace process is in deep trouble. leadership had earlier that day offered of my colleagues in the Marine Corps Saddam Hussein, according to the U.N. a privileged resolution relating to the more than 45 years ago, almost all of weapons inspectors, continues to con- conduct of the investigation on cam- us, noncommissioned officers, as I was, ceal his weapons of mass destruction paign finance by the chairman of the were single. Almost all of the commis- capabilities, and North Korea remains Committee on Government Reform and sioned officers were single under the as dangerous as ever. Oversight. grade of colonel. Today that is abso- Unfortunately, Mr. Speaker, history Mr. Speaker, I only raise this issue lutely reversed. Therefore, it is impera- has not ended and conflict among na- because these matters were brought to tive that we do provide housing and tions has not ceased, nor will it in my the Committee on Rules with no notice child care centers for our military in colleagues’ lifetime and mine. But in to the Democratic members. The chair- order to keep the kind of personnel order to deter conflict and to prepare man of the committee, my friend the that we want in the military. for all contingencies, we need the gentleman from New York (Mr. SOLO- Despite all of these excellent provi- strongest, best trained, best equipped MON), did call the ranking member to sions in this bill, Mr. Speaker, let me and most ready military force that we inform him of his decision to bring go on the record once again as I have can possibly have. We have had that, these matters before the committee as for several years now. We continue to but have taken ourselves to the verge emergency matters, but he did so only provide inadequate, yes, I will repeat, of squandering it over the past several moments before going to the floor to inadequate funds for this Nation’s de- years with these budget cuts. make this general announcement, dur- fenses. Despite our additions to the For several years running, the Com- ing which he said the committee was President’s request, this bill will rep- mittee on National Security and the due to meet in 3 minutes. resent the 14th straight year of infla- Committee on Appropriations have Mr. Speaker, I do not dispute the au- tion adjusted cuts to this budget. Our made valiant and worthy attempts to thority of the chairman to bring those military is vastly smaller and it is correct this increasingly dangerous sit- matters that he chooses before the older than during Desert Storm and, uation by adding to the President’s committee for its consideration. What God forbid, if we had to go back and budget request. But it has not been I would merely like to point out is that have the same kind of rearm go that enough. Mr. Speaker, somehow we are the manner in which these resolution we had in Desert Storm, we could not all going to have to figure out a way to were brought to the committee only do it today and that means the men get more money allocated to defense perpetuates a problem he is seeking to and women that we put in danger’s way before we come to regret what we have remedy. are going to be very, in very serious done here on this floor over the years. That being said, Mr. Speaker, let me condition. Most experts agree, not just Despite all this, I nonetheless urge add that I have no objection to this with me, that such a mission would support of the rule and this bill as we rule providing for general debate on simply be impossible today. debate through this week. It is vital the authorization for the programs of legislation and it is simply the best we b 2130 the Department of Defense for fiscal can do at this juncture. And once again year 1999, and I urge its adoption. Worse, this smaller force is being I would commend the gentleman from Mr. Speaker, I reserve the balance of asked to do more and more and more South Carolina (Mr. FLOYD SPENCE), my time. and more by the administration. We the gentleman from Missouri (Mr. IKE Mr. SOLOMON. Mr. Speaker, I ask are bogged down in a fanciful nation- SKELTON), and the Committee on Na- building mission in Bosnia. We also tional Security and their staff for the unanimous consent that the gentleman have a seemingly never-ending mission excellent work on bringing this bill to from Colorado (Mr. MCINNIS) be al- in Iraq. the floor. lowed to manage the rest of the time And I support the Iraq mission, but Let us pass this rule quickly, get on on this rule. my point is that our military is to the general debate, and then get The SPEAKER pro tempore (Mr. stretched almost to its breaking point, into the amendment process tomorrow. PEASE). Is there objection to the re- my colleagues. Our men and women are Mr. Speaker, I reserve the balance of quest of the gentleman from New being asked to do too much, with less my time. York? training, less support and with older Mr. FROST. Mr. Speaker, I yield my- There was no objection. and older equipment. self such time as I may consume. Mr. MCINNIS. Mr. Speaker, I yield The predictable results are that the Mr. Speaker, this is a noncontrover- 31⁄2 minutes to the gentleman from recruiters are unable to meet the sial rule which merely facilitates the Utah (Mr. HANSEN). quotas. If my colleagues do not believe work of the House. The Committee on (Mr. HANSEN asked and was given it, they should go back into their dis- Rules has also reported a rule which permission to revise and extend his re- tricts and go and sit down with the Ma- provides for the consideration of the marks.) rine Corps and the Navy and the Army amendments to the Department of De- Mr. HANSEN. Mr. Speaker, I rise in and the Air Force recruiters, and they fense authorization for fiscal year 1999. support of this bill and of this rule as will tell my colleagues that they are However, as in the years past, the the minimum support necessary to having trouble recruiting a real cross- Committee on Rules has recommended meet our basic security requirements section of America today. this separate rule providing for general around the world. I sincerely hope that Air Force and Navy pilots are resign- debate on the DOD authorization in an- over the year we can begin to debate ing in droves today because they do not ticipation of another rule which will our responsibility in solving the many think that the career is there. Are they set the terms of debate on the many challenges facing our military. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3465 With the passage of this bill, the Con- our armed forces. They can only bear submarines, even more sophisticated, gress has joined the President in re- this burden so long before health, safe- even though there are none as sophisti- sponsibility for underfunding the criti- ty and family fall victim to relentless cated as the last ones we are still cal functions of national security. The operational tempo. launching. duty now rests squarely with the Con- I salute these people and thank them We are still going to invest $3.8 bil- gress to provide sufficient resources for for all they do. We owe it to them to lion in ballistic missile defense, some a strong and ready military force capa- show our full support before we ask the of it oriented toward theater defense to ble of meeting our global responsibil- last full measure of their devotion. I defend our troops, but some of it still ities while keeping faith with the men hope we in the Congress can show that following the fantasy launched by Star and women in uniform who sacrifice so kind of leadership. Wars $50 billion ago with not yet one much for this country. Mr. FROST. Mr. Speaker, I yield 3 successful test. There will be no I had hoped the President would lead minutes to the gentleman from Oregon amendments on that issue here on the on this issue, laying out the case for (Mr. DEFAZIO). floor of the House. There will be very the American people that it is still a Mr. DEFAZIO. Mr. Speaker, I thank little discussion of that issue here on dangerous world and the United States the gentleman for yielding me this the floor of the House. must be prepared to lead and to act time. These are things that deserve scru- whenever our interests are at stake. I I think it is unfortunate that we are tiny. These are things that should have am not hopeful that he will. having and will have the debate to- amendments oriented toward them. The revelations of China’s influence night on the largest single expenditure But the process that was adopted here, in White House policy and the very of the government of the United two reports available, amendments due troubling transfer of missile tech- States, late at night with virtually no by Thursday, reports issued today to nology to the Chinese military have Members in attendance. Members, did not lead to that and the gravely damaged our national security Further, it is unfortunate that as the debate late at night does not either. and may have ignited a new wave of bill moved forward, that there were Mr. MCINNIS. Mr. Speaker, I yield proliferation and arms race throughout two copies of the report on this bill myself such time as I may consume. Asia. Meanwhile, at home, the Presi- available in the anteroom of the com- The gentleman from Oregon, I know dent continues to put campaign prom- mittee for the 435 Members of the Con- he is getting ready to leave the Cham- ises and jobs in California ahead of gress. If any Member wanted to at- ber, but I think he needs to be aware, complying with the base closure law tempt to develop an amendment, they because he is probably going to be em- and hundreds of millions of dollars in could have gone down and sat in the barrassed by the fact that he was not, savings represented by the consolida- anteroom and tried to pore through the that hundreds of copies of the commit- tion of excess capacity. hundreds of pages of the bill, because tee print were available a week ago I do not expect too much leadership the amendments were due on Thursday Monday. Last Monday a week. from a White House that promised a 1- and the reports were issued to the Mr. DEFAZIO. Mr. Speaker, will the year mission to Bosnia for a cost of $1 Members’ offices today. I think that is gentleman yield? billion, and now our military is stuck equally unfortunate. Mr. MCINNIS. I will not yield. in an endless stalemate that will cost And what we can expect from that is Mr. DEFAZIO. If the gentleman will well over $10 billion and even more in that many vital issues will not get the yield. eroded military readiness. scrutiny that they should have on the Mr. MCINNIS. I have not yielded. That leaves it to us. It is the prin- floor of the House of Representatives The SPEAKER pro tempore. The gen- cipal job of the Congress to provide for or in the Congress. tleman from Colorado (Mr. MCINNIS) the national defense. We do not need a Procurement reform. No one can has the time. bigger Department of Defense, but we argue that the procurement system of Mr. DEFAZIO. That is an inaccurate do need a more modern one with ade- the Pentagon works well. The scandals statement. quately supported professionals and are still there. If it is not toilet seats, Mr. MCINNIS. Mr. Speaker, I ask for clearly defined goals. it is screwdrivers. If it is not screw- order on the floor. I have time on the After 14 straight years of real decline drivers, it is fasteners. If it is not fas- floor. in defense spending, it is long past time teners, it is whole weapon systems that The SPEAKER pro tempore. The gen- for a change. If we are to remain great do not work. tleman from Colorado (Mr. MCINNIS) and free and respected around the These things should be adequately re- has the time. world, we need the courage and fore- viewed. But profits come before effi- Mr. MCINNIS. Furthermore, I would sight to provide for a strong and ready ciency, or even come before national advise the gentleman that over 100 force. George Washington warned that security, and certainly come before the amendments have been filed. So what I the only way to ensure peace was to be troops. would surmise from this is that a num- prepared for war. I am afraid today We are not going to address effec- ber of our colleagues have determined that we are prepared for neither. tively in this bill the fact that 15,000 that this is a very open process. They The Joint Chiefs of Staff and the CBO enlisted families are eligible for food have taken the time to file over 100 tell us the national military strategy stamps in the military. The small amendments. is underfunded by nearly $15 billion per across-the-board raise given in this bill The fact that the gentleman from Or- year for the next 6 years. At less than is not going to boost those families up egon neglected to do this or neglected 1 percent of the Federal budget and above that level. to watch the schedule, he should not one-tenth percent of our GDP, I ask We are not going to effectively ad- then come down here on the floor and each of my colleagues, if we cannot af- dress the much more cost-effective al- say that this rule is not fair. ford this investment now, when times ternative of the National Guard as an Mr. Speaker, I reserve the balance of are good and we have the first balanced alternative to full-time standing mili- my time. budget in a generation, when will we tary for the defense needs of our coun- Mr. FROST. Mr. Speaker, I yield 1 afford it? Let us commit what modest try. We are still going to short the Na- minute to the gentleman from Oregon investment in national defense will be tional Guard in this bill. (Mr. DEFAZIO). included with debt reduction and fam- People say, well, there is not enough Mr. DEFAZIO. Mr. Speaker, my staff ily tax cuts as we reprioritize Federal money to go around. Well, the Penta- contacted the committee. They were expenditures under a budget surplus. gon is spending a lot of time pushing told two copies were available in the Our military readiness is already bro- some other big programs that are of anteroom. Beyond that, we know that ken. Retention and recruiting are at dubious value, another generation of the process is preloaded. nearly all-time lows. Morale is falling. attack submarines. When the last one, I have just reviewed the list of The only thing holding our military to- Seawolf, was launched, a senior chief amendments that are being allowed. gether is the tireless effort, dedication, said, ‘‘Now, if we could just find some- There is not one single amendment patriotism and self-sacrifice of the men body to fight with.’’ Well, now we are that would cut $1 from any program. and women who volunteer to serve in going to develop another generation of There is not one single amendment H3466 CONGRESSIONAL RECORD — HOUSE May 19, 1998 being allowed that would review the ef- The legislation before us today will ment of Defense, as a matter of fact, ficiency or the effectiveness of the pro- require that the DOD submit a plan to the American people deserve a Federal curement program. Congress by March 1, 1999. This plan workforce that is drug free. And the This has been going on for years here must provide for a system-wide rede- best way to see to it that that happens on the floor of the House. Members can sign of the military mail-order phar- is to allow drug testing as a condition take the amendments up there and macy system, which includes a system- of employment. they will not be allowed to talk to wide drug benefit for all beneficiaries, That is why I must express my deep them on the floor. The only amend- including Medicare-eligible bene- anger that every single Republican ments here on the floor are going to be ficiaries. member of the Committee on Rules amendments that enhance the spending I think the DOD and this Congress voted against bringing this amendment under this bill. have an implied moral commitment to to the floor. I do want to congratulate Mr. MCINNIS. Mr. Speaker, I yield provide this care to all military bene- my Democratic colleagues who voted myself such time as I may consume ficiaries. By supporting the expansion for that. But that is one of the 100 once again to correct. I mean the gen- of the mail-order program, we can send amendments that should have been tleman from Oregon makes it sound a clear message that the passage of voted on. That is why I will be voting like there were lots of amendments up time does not either erase the service against the rule both tonight and to- there to decrease spending and none of of our military retirees and what they morrow. them were allowed on the floor. have given to us nor our Government’s Mr. McINNIS. Mr. Speaker, I yield Only one amendment was filed, Mr. obligation to their well-being. myself such time as I may consume. Speaker. Only one amendment. I think Mr. McINNIS. Mr. Speaker, may I The amendment of the gentleman we need to show the whole story, show ask how much time is remaining? sounds good. I think the amendment the whole picture here before we re- The SPEAKER pro tempore (Mr. has a lot of merit to it. However, this flect upon our colleagues some kind of PEASE). The gentleman from Colorado amendment was offered last year. It is Committee on Rules that is theoreti- (Mr. MCINNIS) has 17 minutes remain- going to be addressed at the Committee cally disorderly and not fair. It is emi- ing. The gentleman from Texas (Mr. on Government Oversight and Reform. nently fair. FROST) has 22 minutes remaining. Other committees are going to take a This rule has had over 100 amend- Mr. McINNIS. Mr. Speaker, I reserve look at it. That is a more appropriate ments. We are going to have lots of de- the balance of my time. location. bate in the next few days. And, quite Mr. FROST. Mr. Speaker, I yield 2 I would urge my colleague to go frankly, the gentleman needs to be a minutes to the gentleman from Mis- ahead and support the rule. That is little more accurate, in my opinion, in sissippi (Mr. TAYLOR). what is going to allow us some good de- regards to the action the Committee on Mr. TAYLOR of Mississippi. Mr. bate. Rules has taken. Speaker, I would like to take this op- Mr. FROST. Mr. Speaker, I yield my- Mr. Speaker, I reserve the balance of portunity to speak against this rule self such time as I may consume. my time. and the rule that will come up tomor- Mr. FROST. Mr. Speaker, I yield 2 This is the rule for general debate row. minutes to the gentlewoman from only. We will have the opportunity to- Mr. Speaker, about $18 billion of our morrow to consider a rule which will Florida (Mrs. THURMAN). Mrs. THURMAN. Mr. Speaker, I Nation’s money, most of it coming provide for the consideration of various thank the gentleman for yielding me from the Department of Defense, is amendments. I urge the adoption of this time, and I also want to take this spent on the war on drugs. In February, this rule, and I yield back the balance opportunity to thank the chairman, to my knowledge, we had a special of my time. the gentleman from South Carolina forces aid team in Colombia training Mr. McINNIS. Mr. Speaker, I yield the Lance Arrows. I visited that group (Mr. SPENCE), and the ranking member, myself such time as I may consume. the gentleman from Missouri (Mr. a week before the Lance Arrows were I also urge that we pass this bill. We ambushed. Out of 125, I think 18 strag- are going to have appropriate time for SKELTON), for what I see as a very im- portant issue that has been included in gled back. The rest were killed or cap- general debate this evening. The next this authorization bill, which is to ex- tured. few days are going to be consumed on We also have Seals down there. We tend the national mail order pharmacy the issue of defense. It is absolutely have E–3s flying. We have P–3s flying. program to Medicare eligibles. critical. We have surveillance C–130s, one of I think the good congressman, the b 2145 which was shot up by the Peruvians. gentleman from the State of Utah (Mr. While Congress has authorized a An American airman fell to his death I HANSEN), stated it very well in his re- mail-order pharmacy program and al- think 11,000 feet out of the plane. marks. He quoted George Washington, lowed retirees who live near those The point that I am trying to make, ‘‘The best way to be prepared for peace areas that the bases have been des- Mr. Speaker, is that I offered an is to be prepared for war.’’ ignated to be closed, they are allowed amendment to the Committee on Rules I think these are key issues. I think to participate, but this has left out to require all Department of Defense both sides of the aisle have a lot of hundreds of thousands of other brave, employees to be tested for drugs. Be- keen interest in seeing that our defense retired servicemen and women who cause we have some Department of De- is strong and appropriate. And, there- have continued to be locked out of this fense employees, particularly our uni- fore, I urge the first step in this proc- process. formed personnel, who are literally ess, and that is passage of the bill. I Currently, this program does not in- putting their lives on the line as we urge a yes vote. clude the vast majority of our Nation’s speak. So should we not know that all Mr. Speaker, I yield back the balance Medicare-eligible military retirees. of the people within the Department of of my time, and I move the previous That is why last year I introduced Defense are pulling for the same team? question on the resolution. some legislation, H.R. 1773, to expand The uniformed military personnel The previous question was ordered. the mail-order program to all Medi- and some civilians are required to be The resolution was agreed to. care-eligible military retirees. This drug tested. We know from conversa- A motion to reconsider was laid on measure has been supported by both tions that have been intercepted from the table. the Air Force Sergeants Association the drug lords that they know when The SPEAKER pro tempore (Mr. and the Army Retirement Council, the planes are flying, they know when HEFLEY). Pursuant to House Resolution both of which have worked tirelessly the ships are patrolling; and I suspect 435 and rule XXIII, the Chair declares on this issue. there are some people within the De- the House in the Committee of the I would also like to point out that partment of Defense that are giving Whole House on the State of the Union the hard work of one of my constitu- this information away. for the consideration of the bill, H.R. ents who serves on one of these com- Is it for money? Is it for drugs? I 3616. mittees, Mr. Ebitz, first brought this think we deserve to know. And I think The Chair appoints the gentleman issue to my attention. the American people deserve a Depart- from Michigan (Mr. CAMP) as chairman May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3467 of the Committee of the Whole, and re- rent defense spending levels and is $54 sensus view held by the Committee on quests the gentleman from Indiana billion short of even keeping pace with National Security’s senior leadership (Mr. PEASE) to assume the chair tem- record low inflation over the next 5 on both sides of the aisle. porarily. years. The spending levels authorized Back on April 22, I joined the gen- b 2153 in this bill are almost 40 percent lower tleman from Missouri (Mr. Skelton) than those of little more than a decade and the committee’s senior Republican IN THE COMMITTEE OF THE WHOLE ago and, in fact, represent the lowest and Democrat members in publicly Accordingly, the House resolved level of inflation-adjusted defense calling upon the President and the con- itself into the Committee of the Whole spending since before the Korean War. gressional leadership to provide for in- House on the State of the Union for the Earlier this year, the Joint Chiefs of creased defense spending in the face of consideration of the bill (H.R. 3616) to Staff, the Nation’s military leaders, these worsening military shortfalls. authorize appropriations for fiscal year testified that their fiscal year 1999 The letter we signed stated, in part, 1999 for military activities of the De- budgets contained shortfalls of more and I will read from that: partment of Defense, to prescribe mili- than $10 billion. Over the 5-year de- Despite several years of aggressive Penta- tary personnel strengths for fiscal year fense plan, the Chiefs of Staff testified gon reform, it is apparent that even if the 1999, and for other purposes, with Mr. that their shortfalls amounted to more most optimistic estimates of reform-gen- PEASE (Chairman pro tempore) in the than $58 billion. erated savings materialize, they will fall far chair. Mr. Chairman, I will submit a sum- short of adequately addressing underfunded The Clerk read the title of the bill. mary of the shortfalls identified by the quality of life, readiness and modernization The CHAIRMAN pro tempore. Pursu- requirements as well as the inevitable de- Service Chiefs along with my state- ant to the rule, the bill is considered as ployments in the years ahead. Having just ment. having been read the first time. concluded our initial oversight hearings on Unfortunately, it is not hard to ap- Under the rule, the gentleman from the fiscal year 1999 defense budget request, it preciate why the unofficial motto of is our collective judgment that, short of an South Carolina (Mr. SPENCE) and the today’s military is ‘‘doing more with unwise retrenchment and overhaul of United gentleman from Missouri (Mr. SKEL- less.’’ Force structure and resources States national military strategy, fixing the TON) each will control 1 hour. continue to decline, while missions Nation’s long-term defense program will re- The Chair recognizes the gentleman quire increased defense spending. Without from South Carolina (Mr. SPENCE). continue to increase. Since 1987, active duty personnel additional defense resources to reverse the Mr. SPENCE. Mr. Chairman, I yield 14-year pattern of spending decline, the mili- myself such time as I may consume. have been cut by more than 800,000. tary services will be unable to stabilize their (Mr. SPENCE asked and was given Since 1990, the Army has been re- shrinking force structures, protect quality of permission to revise and extend his re- duced from 18 to 10 divisions. life and readiness and modernize rapidly marks.) Since 1988, the Navy has reduced its aging equipment. Mr. SPENCE. Mr. Chairman, on May ships from 565 down to 346. b 2200 6, the Committee on National Security Since 1990, the Air Force has reduced reported H.R. 3616 on a bipartisan vote its fighter wings from 24 down to 12. Mr. Chairman, I will submit a copy of of 50–1. Although this kind of support And since 1988, the United States the complete April 22 bipartisan letter may leave everyone with the impres- military has closed more than 900 bases along with my statement. sion that all is well with our military and facilities around the world and 97 Despite the Committee on National and that crafting this bill was easy, the bases and facilities here at home. Security’s attempt to manage the truth was far different. At the same time, our military is growing risk, we can only make im- Caught between an international geo- shrinking, operations around the world provements at the margin in the ab- political environment that requires an are increasing: sence of additional defense resources. expansive United States national secu- Between 1960 and 1991, the Army con- The magnitude of the shortfalls is so rity strategy and a domestic political ducted 10 operational events. In just great that they cannot be eliminated environment bounded by declining de- the last 7 years, they have conducted 26 simply through a wiser allocation of fense budgets locked in place by the such operational events. resources contained in the President’s Balanced Budget Act, the Committee is In the 7-year period from 1982 to 1989, request. left to figure out how best to manage the Marine Corps participated in 15 By reprioritizing the President’s re- risk; and there should be no illusions contingency operations. However, since quest, the committee has provided the about the level of risk associated with 1989 and the fall of the Berlin Wall, military services some of the tools the problems that our military con- they have participated in 62 such con- they need to better recruit and train fronts in carrying out its mission. tingency operations. quality personnel, better train person- The Joint Chiefs of Staff recently as- Similarly high operation national nel to the highest possible standards, sessed it as moderate to high. Thus, tempos are also impacting the Navy and better equip them with advanced our actions in this bill are intended to and the Air Force. military technology. protect as best we can those programs The threats and challenges America At the same time, the committee has that will help lower the risks to our confronts around the world today and tried to provide those who wear their national security interests by improv- the resulting pressures they have uniform and their families with a qual- ing readiness, enhancing quality of life, placed on a still shrinking United ity of life more commensurate with and increasing the pace of which the States military have been that of the American citizens they are rapidly aging equipment is modernized. underestimateed by the administration sworn to protect. As a result of these When the fiscal year 1999 defense and by many in Congress. At this criti- improvements, H.R. 3616 received budget is measured by any of last cal point in history, the mismatch be- strong bipartisan support in committee year’s Quadrennial Defense Reviews tween the Nation’s military strategy and should receive the same in the full three central requirements for the U.S. and the resources required to imple- House. military, shaping the international en- ment it grows larger every day. Con- Nonetheless, every Member of the vironment, preparing for uncertain fu- sequently, a wide range of quality of House should be deeply troubled that 14 ture or responding to the crisis of war, life, readiness and modernization years of a shrinking military and de- it is inadequate. shortfalls have developed. If left unre- clining budgets have left the world’s Despite the Nation’s extensive na- solved, these shortfalls threaten the vi- only superpower running a moderate- tional security requirements and the ability of today’s all-volunteer force, to-high risk when it comes to protect- administration’s heavy use of the mili- risk a return to the hollow military of ing and promoting its national security tary all over the world, the fiscal year the late 1970s and jeopardize America’s interests around the world. 1999 defense budget continues for the ability to effectively protect and pro- Mr. Chairman, I will leave discussion 14th consecutive year a pattern of real mote its national interests around the of the many specific initiatives in the decline in defense spending. world. bill to my colleagues on the Committee The President’s budget request rep- And these are not just my own per- on National Security who have worked resents a 1.1 percent decline from cur- sonal conclusions. They reflect a con- very hard since February to get us to H3468 CONGRESSIONAL RECORD — HOUSE May 19, 1998 the point here tonight. However, I you have to do is take a look at the over $10 billion; for the five-year period end- would like to recognize the hard work size and complexity of this bill to un- ing in fiscal year 2003, the shortfalls amount of the subcommittee and panel chair- derstand the importance of the com- to over $58 billion. Moreover, if you study man and ranking members. Their lead- mittee staff to the defense authoriza- the chiefs’ responses, I believe a compelling ership and bipartisan approach to tion process. case can be made that the shortfalls may be issues have permitted the committee, Mr. Chairman, I urge support of this understated. It is particularly troubling that these shortfalls have been identified at a even without additional resources, to bipartisan bill. time when the Balanced Budget Act of 1997 significantly improve upon the admin- Mr. Chairman, the material I referred (BBA) has set defense spending at levels that istration’s request in this bill. to is as follows: continue the fourteen year trend of real de- I would specifically like to single out HOUSE OF REPRESENTATIVES, cline for the next five years. and thank the gentleman from Mis- COMMITTEE ON NATIONAL SECURITY, It is also interesting to note that the five- souri (Mr. SKELTON), the committee’s Washington, DC, April 21, 1998. year defense budget plan called for in the new ranking member, for all of his MEMORANDUM FOR HNSC MEMBERS BBA falls more than $54 billion short of help, support, and hard work. The gen- From: Chairman Floyd D. Spence keeping pace even with today’s record low tleman from Missouri (Mr. SKELTON) is Re unfunded requirements of the military inflation (see attached chart). And, were in- not only a relentless advocate for a services flation to increase even modestly to histori- strong military defense, he works very During the committee’s March 12, 1998 cal averages, the five-year plan could fall hard to ensure an open committee hearing, I asked each of the four service short of inflation by as much as $100 billion. process. His handiwork is evident in chiefs to identify all underfunded or unmet The attached table presents the under- the overwhelming bipartisan support quality of life, readiness and modernization funded or unmet requirements by service in requirements in the five year budget plan H.R. 3616 received in the committee. each of the next five years. Should you re- and to estimate how much it would cost to Finally, Mr. Chairman, I would like quire additional information or have any fur- fully fund these requirements over the next ther questions, please contact Andrew Ellis to thank the staff for their enormous five years. dedication and effort. While the staff is The lists that the services forwarded reveal (5–9648) or Dino Aviles (6–0533) on the com- usually the first to get the blame, they substantial underfunded requirements. In fis- mittee staff. rarely receive any of the credit. All cal year 1999 alone, these shortfalls total Attachments (2) MILITARY SERVICES UNFUNDED PRIORITIES [millions of current year dollars]

Fiscal year— Total 1999 2000 2001 2002 2003

Army: FY 99 Contingency Ops (Bosnia) ...... 1,390.0 ...... 1,390.0 MIL-Tech Restoration ...... 36.5 ...... 36.5 Real Property Maintenance ...... 463.5 500.0 500.0 500.0 500.0 2,463.5 Base Operations ...... 500.0 500.0 500.0 500.0 500.0 2,500.0 ARNG & USAR OPTEMPO ...... 199.8 250.0 250.0 250.0 250.0 1.999.8 Military Pay ...... 120.0 ...... 120.0 MILCON ...... 214.4 ...... 214.4 Soldier Life Support ...... 72.1 ...... 72.1 Embedded Diagnostics (TMDE) ...... 39.5 ...... 39.5 Comanche (2nd prototype acceleration) ...... 24.0 ...... 24.0 Crusader ...... 11.5 ...... 11.5 AFATDS ...... 20.7 ...... 20.7 HMMWV ...... 65.7 ...... 65.7 Apache 2nd FLIR ...... 50.3 ...... 50.3 Command and Control ...... 22.5 ...... 22.5 Engineer Equipment ...... 46.9 ...... 46.9 Demonstration of New Technology ...... 39.8 ...... 39.8 Tactical Vehicles and Trailers ...... 92.7 ...... 92.7 Family of Medium Tactical Vehicles ...... 88.0 ...... 88.0 Blackhawk Helicopters (8 for ARNG) ...... 78.5 ...... 78.5 C3 Equipment ...... 92.9 ...... 92.9 Apacher Longbow (training devices) ...... 40.2 ...... 40.2 Small Arms ...... 41.8 ...... 41.8 Javelin ...... 37.9 ...... 37.9 Test Equipment and Facilities ...... 10.0 ...... 10.0 Ammunition Production Base ...... 39.3 ...... 39,3 Test Equiipment and Range Improvements ...... 34.6 ...... 34.6 Depot Maintenance ...... 400.0 400.0 400.0 400.0 1,600.0 Training and Support ...... 350.0 350.0 350.0 350.0 1,400.0 Ammunition, Force XXI, night vision, soldier modernization, combat support/combat service support, and C3I ...... 2,000,0 2,000.0 2,000.0 2,000.0 8,000.0 Critical Modernization (Abrams tank, Bradley FV, Apache Longbow 2nd gen FLIR, digitization) ...... 1,000 1,000 1,000 1,000.0 4,000.0 Army total ...... 3,873.0 5,000.0 5,000.0 5,000.0 5,000.0 23,873.0 Navy: Aviation Spares ...... 45.0 ...... 45.0 OPTEMPO (Steaming days for mine warfare) ...... 20.0 ...... 20.0 Ship Depot Maintenance ...... 90.0 ...... 90.0 Real Property Maintenance ...... 391.0 ...... 391.0 Reserve Pay (ADT & ADSW) ...... 20.0 ...... 20.0 TOMAHAWK Missile Recertification ...... 27.0 ...... 27.0 Shipbuilding (CVN–77 and ADCX) ...... 550.0 ...... 550.0 Aircraft Procurement (E–2C and AIP) ...... 143.0 ...... 143.0 MILCON–QOL and Other ...... 273.0 ...... 273.0 RDT&E (Aviation Programs) ...... 45.0 ...... 45.0 LANTIRN Pods ...... 8.0 ...... 8.0 Submarine equipment and RDT&E ...... 94.0 ...... 94.0 Ship Self Defense systems ...... 30.0 ...... 30.0 CVN RDT&E (technology insertion) ...... 33.0 ...... 33.0 Cooperative Engagement Capability (CEC) ...... 20.0 ...... 20.0 IT–21 Procurement and O&M ...... 143.0 ...... 143.0 O&M–QOL (BEQ furnishings) ...... 10.0 ...... 10.0 O&M–Other (NSIPS, ATMs, Recruiting) ...... 93.0 ...... 93.0 STANDARD Missile Procurement ...... 48.0 ...... 48.0 Family Housing ...... 53.0 ...... 53.0 Shipbuilding Rates ...... 600.0 600.0 600.0 600.0 2,400.0 Aircraft Procurement Rates ...... 750.0 750.0 750.0 750.0 3,000.0 RDT&E (next generation combatants) ...... 400.0 400.0 400.0 400.0 1,600.0 Recruiting, Training and Retention ...... 400.0 400.0 400.0 400.0 1,600.0 MILCON ...... 700.0 700.0 700.0 700.0 2,800.0 Navy total ...... 2,136.0 2,850.0 2,850.0 2,850.0 2,850.0 13,536.0 Marine Corps: Personnel Support Equip/Initial Issue ...... 64.0 ...... 64.0 Other Personnel Education and Training ...... 2.6 ...... 2.6 Family Housing ...... 82.1 ...... 82.1 MILCON—QOL ...... 100.7 ...... 100.7 USMCR OPTEMPO & ADSW ...... 6.7 ...... 6.7 Recruiting & Advertising ...... 22.4 30.0 30.0 30.0 30.0 142.4 May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3469 MILITARY SERVICES UNFUNDED PRIORITIES—Continued [millions of current year dollars]

Fiscal year— Total 1999 2000 2001 2002 2003

Depot Maintenance ...... 20.7 ...... 20.7 Base Operations Support ...... 10.4 ...... 10.4 Operating Forces Support ...... 16.1 ...... 16.1 Miscellaneous Readiness Activities ...... 23.0 ...... 23.0 Aviation Modernization (MV–22, AV–8B, etc) ...... 290.5 750.0 750.0 750.0 750.0 3,290.5 Ground Equipment Modernization ...... 265.4 650.0 650.0 650.0 650.0 2,865.4 Amphibious Equipment Modernization (LCAC) ...... 32.8 ...... 32.8 Real Property Maintenance ...... 72.0 120.0 132.9 102.8 95.5 523.2 MILCON—Other ...... 74.0 176.0 181.0 143.0 141.0 715.0 Personnel Mgmt & Other ...... 2.6 ...... 2.6 Increase Equipment Maintenance ...... 100.0 100.0 100.0 100.0 400.0 Total Marine Corps ...... 1,086.0 1,826.0 1,843.9 1,775.8 1,766.5 8,298.2 Air Force: Spares ...... 219.6 295.8 311.5 240.9 208.8 1,276.6 Depot Maintenance ...... 182.4 121.9 168.7 198.2 208.2 879.4 Engines ...... 274.4 321.7 254.6 221.9 231.8 1,304.4 Training ...... 73.3 59.5 60.8 62.1 63.4 319.1 Technical Orders ...... 24.0 57.5 38.4 29.5 26.2 175.6 Real Property Maint ...... 363.0 424.0 499.0 608.0 508.0 2,402.0 Base Operating Support ...... 294.4 205.9 170.6 172.5 189.9 988.3 Aircraft Systems ...... 157.3 157.3 166.5 182.3 255.5 918.9 Space Launch Ranges ...... 28.3 24.3 32.3 33.4 22.2 140.5 MILCON—Readiness ...... 310.6 272.3 231.3 216.2 209.8 1,240.2 War Reserve Material ...... 64.0 13.0 ...... 77.0 MILCON—QOL ...... 464.4 439.9 416.2 410.8 411.1 2,142.4 Communications ...... 96.4 99.7 99.1 85.5 87.4 468.1 Special Purpose Vehicles ...... 50.0 52.8 46.9 41.7 42.6 234.0 Air Force Total ...... 2,557.1 2,545.6 2,495.9 2,503.0 2,464.9 12,566.5

Total, All Services ...... 9,652.1 12,221.6 12,189.8 12,128.8 12,081.4 58,273.7

HOUSE OF REPRESENTATIVES, requirements as well as the inevitable de- tary Installations COMMITTEE ON NATIONAL SECURITY, ployments in the years ahead. Having just and Facilities. Washington, DC, April 22, 1998. concluded our initial oversight hearings on IKE SKELTON, Hon. WILLIAM J. CLINTON, President of the the fiscal year 1999 defense budget request, it Ranking Member, United States of America. is our collective judgment that, short of an Committee on Na- Hon. NEWT GINGRICH, Speaker of the House. unwise retrenchment and overhaul of U.S. tional Security. Hon. RICHARD A. GEPHARDT, House Minority national military strategy, fixing the na- NORMAN SISISKY, Leader. tion’s long-term defense program will re- Ranking Member, Hon. TRENT LOTT, Senate Majority Leader. quire increased defense spending. Without Subcommittee on Hon. TOM DASCHLE, Senate Minority Leader. additional defense resources to reverse the Military Procure- DEAR SIRS: The fiscal year 1999 defense fourteen year pattern of spending decline, ment. budget request represents the fourteenth the military services will be unable to sta- OWEN B. PICKETT, consecutive year of real decline in defense bilize their shrinking force structures, pro- Ranking Member, spending that has occurred under Adminis- tect quality of life and readiness and mod- Subcommittee on trations and Congressional majorities of ernize rapidly aging equipment. Military Research, both parties. In the context of the first federal budget and Development. The fall of the Berlin Wall brought with it surplus in three decades and today’s strong SOLOMON P. ORTIZ, an opportunity to reduce the nation’s Cold economy, we call on you, the nation’s bipar- Ranking Member, War defense structure. We believe, however, tisan political leadership, to reopen negotia- Subcommittee on that the threats and challenges America con- tions on the Balanced Budget Act of 1997 in Military Readiness. fronts today and the resulting pressures they order to provide for a sustained period of real NEIL ABERCROMBIE, have placed on a still shrinking U.S. mili- growth in defense spending. We understand Ranking Member, tary have been underestimated. At what we that other issues would be part of any such Subcommittee on believe to be a critical point in history, the agenda. However, the inevitable result of ad- Military Installa- mismatch between the nation’s military hering to an agreement that ensures declin- tions and Facili- strategy and the resources required to imple- ing defense budgets indefinitely will be the ties. ment it is growing. Consequently, a wide hollowing of the U.S. military. Because we GENE TAYLOR, range of quality of life, readiness and mod- believe that to ‘‘provide for the common de- Ranking Member, ernization shortfalls have developed that, if fense’’ is the federal government’s first, and Subcommittee on left unchecked, threaten the long-term via- most important, responsibility, we stand Military Personnel. bility of today’s all-volunteer force. Compel- ready to work with you to ensure that Amer- Mr. Chairman, I reserve the balance ling our men and women in uniform to ‘‘do ica maintains a military befitting our na- of my time. more with less’’ risks a return to a hollow tion’s superpower status—a military that re- Mr. SKELTON. Mr. Chairman, I yield military and jeopardizes America’s ability to mains second to none. myself such time as I may consume. effectively protect and promote its national Sincerely, Mr. Chairman, Members of the interests around the world. FLOYD D. SPENCE, House, I rise to offer my support and Make no mistake, the men and women who Chairman, Commit- make the following observations on serve in uniform today comprise the finest tee on National Se- military force in the world. They are truly curity. H.R. 3616, the National Defense Author- America’s best and brightest. It took almost DUNCAN HUNTER, ization Act For Fiscal Year 1999. a generation following the Vietnam War to Chairman, Sub- Allow me, first, to congratulate the build the force that quickly and decisively committee on Mili- distinguished gentleman from South won the Persian Gulf War just seven years tary Procurement. Carolina (Mr. SPENCE) for his commit- ago. Yet as the pace of military operations CURT WELDON, ment to having the work on the com- increases against a backdrop of declining re- Chairman, Sub- mittee carried on in a bipartisan fash- sources, we must recognize that our all-vol- committee on Mili- ion, as was reflected as such in this unteer force is under stress. We need to take tary Research and bill. Not only did he and I work to- better care of our men and women in uni- Development. gether on a number of issues, but the form. HERBERT H. BATEMAN, staff that worked for the minority had Despite several years of aggressive Penta- Chairman, Sub- gon reform, it is apparent that even if the committee on Mili- numerous occasions to work with the most optimistic estimates of reform-gen- tary Readiness. staff on the majority to influence and erated savings materialize, they will fall far JOEL HEFLEY, improve the overall product of this short of adequately addressing underfunded Chairman, Sub- bill. Overall, this truly was a biparti- quality of life, readiness and modernization committee on Mili- san effort and can be best summarized H3470 CONGRESSIONAL RECORD — HOUSE May 19, 1998 by the overwhelming support that the vironment in ways favorable to United world than those of us who lived bill received in the committee, 50 votes States interests, responding to the full through the troubling middle years of for with only one against. spectrum of crises when it is in our in- this century would ever have thought This will also be the last time, Mr. terest to do so, and preparing now for possible. However, we must be vigilant Chairman, that the gentlewoman from an uncertain future. and remain engaged abroad. An impor- California (Ms. HARMAN) and the gen- In short, Mr. Chairman, we are trying tant part of that engagement effort is tleman from Pennsylvania (Mr. to deal with the problems of today in a properly sized, trained, equipped, and MCHALE) will participate in these de- anticipating the needs of tomorrow. It ready military to protect our national liberations. I want to thank them for is the right strategy to have at a time interests. their fine work over the years and of change and uncertainty. As we consider this bill, I hope my their contributions to the work in this However, as we have reduced the size colleagues will keep these concerns in committee. Their presence will cer- of our forces since 1989, we have also mind. Despite the constraints of the tainly be missed. increased the pace of our military de- Balanced Budget Act, I believe we have As we begin consideration of this bill, ployments. This is serious. An Army fashioned a pretty good bill. let me underline the point that this cut almost 40 percent since 1988 has ex- We have provided a pay raise of 3.6 year we are operating under the re- perienced a 300 percent increase in its percent, half a percent more than the strictions of the Balanced Budget Act operational pace. An Air Force that Department of Defense requested, sup- of 1997. The totals on defense were has undergone similar personnel reduc- ported the Department’s requested real agreed to by both executive and legis- tions has experienced a fourfold in- increase in the procurement budget for lative branches last summer. As a re- crease in its operational pace. modernization, and maintained strong sult, the overall total for the defense Each of the services is struggling support for the cooperative threat re- budget today, $270 billion in budget au- with a task of adjusting the size, com- duction program, which is very impor- thority, which we handle on our com- position, mission of its forces to deal tant, to accelerate the dismantlement mittee, is as much a reflection of con- with the implications of operating in of former Soviet strategic offensive gressional priorities as it is of execu- this more demanding post-Cold War en- arms that threaten our country. tive priorities. vironment. One important matter that I want to As a result of that agreement, the Our Armed Forces today are ready. highlight concerns a report the com- task of trying to address the many However, if we keep up the current mittee has requested by the Depart- issues affecting the Armed Forces has pace of operations and deployments, we ment on Counterterrorism and Defense become much more difficult to manage may not be ready 5 years from now. against the use by terrorists of weap- this year than in past years. Over the Let me just say again, I believe we ons of mass destruction on United past 3 years, the committee and this were right to reduce our forces and de- States territory. Congress added funds to defense. We fense spending when the Cold War came Since 1994, Congress has expressed in- did not have that option this year and to an end. I also believe we are right to creasing concern about this threat. It worked within the confines of the Bal- have a defense strategy that promotes is a very difficult, complex issue re- anced Budget Act of 1997. our involvement in the world. quiring Federal, State, local efforts, Let me try to set the scene a bit as But I believe that we may have re- and coordination. Our effort is simply we consider this defense bill. The fallen duced the size of our forces and the size one more step to try to deal with the Berlin wall in 1989 and the subsequent of the defense budget a little too much. issue in a comprehensive fashion. Much collapse of the Soviet Union 2 years I believe we have a mismatch between work has been done in this area, and later brought with it the end of the the demanding goals we have set for much more needs to be done. My con- Cold War. It also brought with it the ourselves and the resources we are will- cern is that we do so in a well-planned, opportunity to substantially reduce ing to spend to obtain those goals. well-coordinated effort at the State, both the size of our Armed Forces and That is why, about a month ago, sen- Federal, and local levels. reduce the burden of defense expendi- ior committee leaders of both parties In addition to the report, I will co- tures on our Nation. wrote the President and senior leaders sponsor, Mr. Chairman, an amendment In 1989, we had over 2.1 million active in this Congress that the current strat- with the gentleman from Pennsylvania duty service members in an Army of 18 egy required increased defense spend- (Mr. WELDON) addressing this impor- divisions, a Navy of over 540 ships, and ing. tant anti- and counterterrorism issue. an Air Force of 24 fighter wing equiva- Because of the changed economic In a defense bill recommending $270.8 lents. Today, the military is about 1.4 conditions in which we find ourselves, I billion in budget authority, there were, million active duty service members in believe we should place an increase in of course, issues of contention. The de- an Army of 10 divisions, a Navy with defense spending on the national agen- cision to include two recommendations 315 ships, and an Air Force with 20 da. I believe that we can increase de- of the Kassebaum-Baker panel on gen- fighter wing equivalents. fense spending without having to re- der-integrated training stirred one of The percentage of Gross Domestic duce domestic spending; that we can the most substantive debates at both Product, the GDP, devoted to defense increase defense spending and also re- the subcommittee and full committee in 1989 was 5.7 percent. For the current duce the national debt; that we can in- mark-up sessions. I did not support in- fiscal year, we are spending 3.2 percent crease defense spending by also saving cluding those recommended in our bill. of the Gross Domestic Product on de- Social Security. But we will also have As one who believes that we need to fense. Next year will be 3.1 percent, the to arrive at a new national consensus provide for a sustained period of real smallest share we will have spent on to do so. growth in defense spending, I believe defense since 1941 when the Japanese The world is still a complex, ever- that we undermine our case by funding attacked Pearl Harbor. changing, and dangerous place. In unnecessary programs and weapons. In I cite these figures simply to high- many ways, yesterday’s solutions have our bill, we have added seven C–130s light the point that, with the end of spawned today’s problems. The chal- that were neither requested by the the Cold War, we made substantial re- lenges we face are numerous: the pro- Pentagon in its budget request nor ductions in both the size of our Armed liferation of weapons of mass destruc- even placed on the services’ unfunded Forces and the burden of defense spend- tion, the intentions and actions of requirements list. At the same time, ing. It was proper to do both. rogue states, the threat of terrorism, we did not fully fund the administra- Since the end of the Cold War, we the possible emergence of China as a tion’s request for the F–18 E/Fs, which have had five different reviews of our hostile power in the 21st century, the the Navy has told us is their number defense structure. uncertain future of Russia, drug traf- one requirement. Our current defense strategy is a sub- ficking, the security of our information Despite these flaws, overall, this is a set of our national security strategy. systems, regional hot spots, and last, good bill. As described in the Quadrennial De- but not least, humanitarian crises. I will defer to other members of the fense Review, our defense strategy We have an opportunity to promote a committee on both sides to discuss the calls for shaping the international en- more peaceful, prosperous, and stable many important initiatives found in May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3471 this bill. They have worked hard, and I money problem. It is a fact that we from South Carolina (Mr. SPENCE), I compliment all of the members of the have such a small force now and such appreciate everything he has done. Of committee. Those on our side of the major obligations around the world course, to our ranking member, the aisle have been very, very cooperative, that our pilots are not able to spend gentleman from Missouri (Mr. SKEL- and they have worked very hard. This that graduation with their daughter, or TON), and, of course, my chairman of is especially true of the subcommittee go to their son’s wedding, or do the the Subcommittee on Procurement, and panel chairman and ranking mem- other things that the men and women the gentleman from San Diego, Califor- bers. in uniform like to do, that is, to have nia (Mr. HUNTER), my sincere thanks. Allow me to thank the staff who so a family life. So we are dropping down It is strange, this is my 16th bill, and ably assist us. Their dedication and ex- radically on personnel. it is very strange what we are doing. pertise and capacity for hard work, Mr. The Commandant of the Marine We are not talking about a lot of Chairman, cannot be underestimated. Corps told us a couple of months ago things that happened in the bill. What Mr. SPENCE. Mr. Chairman, I yield 5 that at times he has had the highest we are talking about is why we are minutes to the gentleman from Califor- OPTEMPO, that means the most Ma- short in the bill. I am not opposed to nia (Mr. HUNTER), the Chairman of our rines staying the longest time away that, because I am going to say the Subcommittee on Military Procure- from home since World War II. You can same thing, after I talk a little bit ment. go right through the personnel prob- about the procurement bill. Mr. HUNTER. Mr. Chairman, I want lems and see that we are in fact ap- Before I do that, let me ask all of my to thank the gentleman from South proaching that time in 1979 when, as a colleagues to support this defense au- Carolina (Mr. SPENCE), chairman of the guy in San Diego, I could look at our thorization bill. It is not a perfect bill, full committee, who wrapped this naval personnel and see that we had but it is about as perfect as we can package together along with his coun- 1,000 chief petty officers a month leav- make it within current budget limita- terpart, the gentleman from Missouri ing the Navy. That was a dramatic tions. As ranking member of the Sub- (Mr. SKELTON), and commend them for problem. We are approaching that same committee on Military Procurement, I doing more with less this year. problem today across the array of mili- am all too aware of how budget limits I want to thank also the wise gen- tary services. impact procurement. tleman from Virginia (Mr. SISISKY), Now, with respect to our moderniza- Let me just pick two items. I am de- who is my good partner on the Sub- tion accounts, this account is about $60 lighted that we were able to fund the committee on Military Procurement, billion less in real dollars than it was advance funding for CVN–77, which is a for all the work that he did. in the 1980s. That means we are using transition carrier between the CVX, Having thanked those gentlemen, Mr. tanks, planes and ships much longer the last of the Nimitz carriers. My big- Chairman, let me say that this has than we used them in the past. We are gest concern, however, on the other been a thankless year for this commit- running out their lifetime. As a result side, is we had to cut 36 F–18 E/Fs from tee, because we have been forced to of that, we have grounded some 907 the Navy. preside over the decline of America’s Huey helicopters because they are not We have reduced this program so defenses, a very dramatic decline. safe to fly anymore. We are building much that these reductions threaten to Anyone who looks at this chart and five ships this year. We are building to postpone the initial operational capa- a 200 ship Navy. Just a few years ago looks at the various functions, manda- bility and first deployment, yet this we had almost a 600 ship Navy, and tory outlays which have increased from aircraft is on time, under budget and none of our projections for projecting 1991 to fiscal year 2001 by over 38 per- meeting all performance specifications. the American power and foreign policy cent, domestic discretionary outlays, Even these marginal reductions will have lessened. So we have dramatically that includes all the social programs force the unit costs up by $2.4 million cut the national security budget. for each of the remaining 27 aircraft. I that have increased some 15 percent in We had just a few cents to spend on completely understand why this reduc- that same period of time. what I call platform items this year. tion is made, but I cannot help but Finally, look at defense going down We bought a few Blackhawk heli- think there might have been a better 33 percent over that period of time. We copters, two F–16 fighters, probably solution, and I appreciate the commit- understand that we have reversed our fewer F–16’s than Sweden is going to ment of the gentleman from California priorities and that we no longer con- buy this year, and just a few other (Chairman HUNTER) to look for a better sider the security of this Nation to be platforms. That is all we could afford solution in the conference. the number one priority. That mistake to add to the budget this year. We are Other than that, all Members should we have made in the past, my friends; buying some 66 total tactical aircraft, and, in the past, it has cost American realize their requests for additional and that is in fact about 11⁄2 times the funding totalled about $6 billion. Even lives. buy that Switzerland made a couple of with the shifting of funds from other b 2215 years ago on aircraft. So we are rapidly disserving our mili- accounts to the procurement account, If we get specific, we can talk about tary people in a most critical way. we were only able to come up with less the reductions in force structure that That is, we are not giving them the than $1 billion. we have made. We have gone down equipment they need to do the job. Nevertheless, this bill authorizes $49 since Desert Storm from the 18 Army That is just as important as giving billion for procurement, an increase of divisions we had to only 10 today, the them pay, giving them quality of life, $2.8 billion over last year, and $300 mil- same number of divisions we had when giving them good living quarters. So, lion more than the President’s request. South Korea was invaded in 1950; we Mr. Chairman, we can a lot with the Despite these small gains, there re- have gone down from 24 to 13 fighter few dollars that we had this year. mains very serious shortfalls, as shown air wings, cut our air power almost in I want to thank all of the folks that by the unfunded priority list submitted half; and we have cut our ships from 546 worked so hard on the other side of the by the military services. These short- ships to about 333 ships. aisle, all of our staff members. I hope falls occur in all DOD accounts, and At the same time, we have put enor- the House will pass this defense budget, most of our chairmen and ranking mous strain on our people, and we are and then come back to raise the top members have written the leadership, losing our people. The other day, when line, spend more on defense, and give as you heard, in both houses, maybe I had a chance to go up with the C–5 re- us more security. even asking to open the 1997 budget fueling with some of our great Air Mr. SKELTON. Mr. Chairman, I yield agreement. Force personnel and had a chance to 5 minutes to the gentleman from Vir- The reason is we really are in danger talk with some of those personnel ginia (Mr. SISISKY). of having a hollow force. Our military about whether or not they wanted to Mr. SISISKY. Mr. Chairman, I thank and civilian leaders persist in saying stay in the Air Force, the answer that the gentleman for yielding me this that our forces are ‘‘adequate’’ or all of us got back was disturbing, be- time. ‘‘barely adequate.’’ I am concerned, cause we are projected to be 835 pilots Mr. Chairman, let me say to our dis- however, that words like ‘‘adequate’’ or short this year. And it is not just a tinguished chairman, the gentleman ‘‘barely adequate’’ are not good enough H3472 CONGRESSIONAL RECORD — HOUSE May 19, 1998 to send our young warriors into harm’s significant deterioration in funding Mr. SKELTON. Mr. Chairman, I yield way. My concern is that over the last programs by the Department of De- five minutes to the gentleman from 14 years, so this is bipartisan now, of fense for military construction. Over- Virginia (Mr. PICKETT). declining defense budgets, we have cut all, the administration proposed 7 per- Mr. PICKETT. Mr. Chairman, I thank so deep that we simply may not be cent less in military construction’s ac- the gentleman for yielding me time. good enough to meet current threats counts than one year ago, and 15 per- Mr. Chairman, I commend the com- with an acceptable level of risk. cent less than the program authorized mittee chairman and the members and Our problem is that procurement, by Congress. Yet the military services staff for the balanced and responsive readiness, training and other things continue to provide testimony and bill we have before us. This bill has that contribute to effective military other evidence that their needs are not been thoughtfully and carefully put to- operations are on very thin ice, and I being met adequately by the adminis- gether within the constraints of a de- worry that the risks we take because tration’s program. fense budget that continues to decline in purchasing power. we do not have enough money in the Based on the record, it is clear that defense budget will come back to haunt In any undertaking of this kind, the the construction programs of the serv- defining of and the adherence to a sys- us. I worry we may not wake up until ices would need to be at least twice as we suffer some disaster, like when the tem of priorities is absolutely essential large as they currently are to begin to for a realistic and responsive program. hostage rescue fell apart in 1980, or address the backlog of serious short- when our positions were overrun dur- My comments will relate primarily to falls in facilities. The evidence that an- the research and development part of ing the early stages of Korea. tiquated, obsolete, overused inadequate I worry that their can-do attitude this bill. facilities and military housing are an will lead our young men and women to The investment for basic research impediment to effective training and stand up and salute, even when we as- and for science and technology pro- readiness and to the assurance of de- sign a task for which they are not ade- grams has been maintained at current cent quality of life for military person- quately equipped or trained, and they levels. It is widely acknowledged that nel is clear to anyone who would care have done that before. these basic research and technology The bottom line is that it took a bi- to examine the record built by the sub- programs have been the crucial compo- partisan effort to get us in this hole, committee. nent in developing and fielding techno- and I think it will take a bipartisan ef- Earlier this year, in response to a logically superior weapons systems fort to get us out. question from the gentleman from that have given our military forces a So I ask all of my colleagues to sup- South Carolina (Chairman SPENCE) decided advantage over their adversar- port this bill, which is the best we can about their unfunded requirements, the ies. do under the circumstances. But I also service chiefs provided a list of short- In spite of the success in developing ask you to ponder the risk of cutting falls across the broad spectrum of need. and fielding improved weapons systems national security this close to the The unfunded MILCON requirement and weapon systems upgrades, there a bone. In my opinion, this budget is no identified by the chiefs is $7.6 billion. constant struggle to appropriately and adequately prepare our forces for the longer ‘‘adequate’’ or ‘‘barely ade- The recommendations the committee unpredictable and speculative battle- quate.’’ We already passed that point a brings to the House today will help al- field of the 21st Century. The Army is year or two ago. leviate a portion of the backlog and Mr. SPENCE. Mr. Chairman, I yield critical shortfalls. continuing development of its top pri- four minutes to the gentleman from ority new weapons systems, the Cru- H.R. 3616 does not go as far as I would sader Self-Propelled Howitzer and the Colorado (Mr. HEFLEY), the chairman like. The fiscal constraints faced by Comanche helicopter. The Navy is of the Subcommittee on Military In- the committee prevented us from pro- stallations and Facilities. moving ahead with the DD–21 de- viding as much in the way of additional stroyer, the follow-on to the Nimitz Mr. HEFLEY. Mr. Chairman, I have resources as we have over the past always felt that the Subcommittee on aircraft carrier, and a new class of at- three years. This bill, however, con- tack submarine. Military Installations and Facilities tains an additional $450 million in has been the most bipartisan commit- added funding for military construc- b 2230 tee that I have seen since being in the tion and military family housing, The Air Force is reaching the end of Congress, and I think this year the full which would permit us to buy back its development of the F–22 and is mov- committee has indicated that they, about one-third of the administration’s ing forward along with the Navy and too, are a very bipartisan committee, $1.4 billion cut in the MILCON top line. Marine Corps in the development of the and has produced a product, which, Given the condition of facilities and Joint Strike Fighter. These visible pri- while we are not totally satisfied with the needs identified by the services, it ority programs point the way to the it, at least it is a product that I think is not enough, but I believe we will military of the future. Nevertheless, every Member should support in a bi- make good use of these limited funds. the pursuit of lighter and more lethal partisan way. weapons, the development of speedier I rise to support H.R. 3616, the Na- The bipartisan bill would provide an additional $183 million for quality of and more stealthy equipment, and the tional Defense Authorization Act for quest for successful leap-ahead tech- 1999. It is a bipartisan bill, it deserves life enhancements. These funds would provide additional military family nologies continues. strong bipartisan support, and I want The Department of Defense has said housing, troop housing, child develop- to spend just the few brief moments many times that if our forces are ment centers, fitness centers and other that I have available to highlight the called into combat, we do not want a military construction aspects of this community support facilities that are fair fight. We want our forces to have a legislation. integral to the support of military per- clearly superior capability, both in The Subcommittee on Military In- sonnel and their families. In addition, weapons systems and technology. That stallations and Facilities continues to it would provide additional funding for is the direction in which this bill con- be deeply concerned about the serious military construction to support the tinues to move our defense program, shortfalls in basic infrastructure. We training, readiness and maintenance although I must say that the move is are all talking about shortfalls, and requirements of the active and reserve at a slower pace than I believe is desir- they are there, and every single sub- components. able. committee chairman and ranking In closing, I want to express again The committee and committee staff member will probably mention this, in my appreciation to the members of the have been alert and diligent in reallo- military housing and other facilities subcommittee, especially the ranking cating resources to higher priority and that affect the readiness and training Democrat member, the gentleman from more timely projects. Additional sup- of the Armed Forces and the quality of Hawaii (Mr. ABERCROMBIE), for their port has been provided to missile de- life for military personnel and their contributions to this legislation. This fense programs in an effort to make families. is truly a bipartisan effort, as I stated certain that these programs are not re- The budget requested by the adminis- at the outset, and I urge all Members source constrained. With alarming re- tration for 1999 continued a pattern of to support H.R. 3616. ports of continuing advances by other May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3473 nations in missile technology, every ef- The readiness provisions in the bill sions, the Navy is on a track to elimi- fort must be made to develop and de- reflect some of the steps I believe are nate nearly 250 ships, or almost 45 per- ploy workable and defendable missile necessary with the dollars available to cent of the fleet, and the Air Force has defense systems on behalf of our Na- make their task easier. It does not pro- been reduced from 24 to 12 fighter tion at the earliest possible time. vide all that is needed. I would be more wings. The level of readiness of our military pleased if the migration of O&M funds Among the disturbing problems iden- forces continues to be the subject of in- to other accounts did not take place. tified in the committee’s hearings and tense debate and discussion. After Much more could be used. I remain per- investigations were indications of a thoughtful and careful consideration of plexed when I reflect on the impact growing shortage of spare parts which a wide variety of materials and testi- that the resource shortages are having has led to the increased cannibaliza- mony, I am persuaded that the readi- on every facet of our military. That in- tion of frontline equipment, combat ness of our military has indeed de- cludes the stability of our dedicated ci- systems being operated at a pace that clined. This is an ominous sign at a vilian employees who are also being requires far more extensive mainte- time when the shortfall for funding the asked to remain productive while at nance and repair, and the deterioration procurement necessary to modernize the same time the department appears of facilities where personnel live and our forces is approaching a deficiency to be trying to take away their jobs. work to levels below acceptable stand- of 25 percent of the amount needed. It Mr. Chairman, I share the comments ards. is time for the Congress to provide that have often been repeated by our Mr. Chairman, these are indicators of more resources to our military. subcommittee members and other broader trends throughout the force Mr. Chairman, within the limits of Members that readiness across the that are raising doubts about present the 1999 level of resources available to board is in bad shape, and we need to and future readiness. To address many our committee, I believe the defense do something about it. At the same of these issues, H.R. 3616 includes pro- program incorporated in this bill is as time, I believe that the readiness provi- visions to increase funding for critical robust and effective as can be devised. sions represent a step in the right di- readiness areas, including depot main- For this, I compliment the committee rection. I would hope that as we con- tenance, replacement spare parts and and our staff and encourage all Mem- tinue through the passage of this bill real property maintenance. Because bers to fully support H.R. 3616. and go into conference with the Sen- there are no additional funds to pay for Mr. SKELTON. Mr. Chairman, I yield ate, that we will continue to search for these increases, the committee had to 4 minutes to the gentleman from Texas opportunities to increase the resources reprioritize several of the nonreadiness (Mr. ORTIZ). available for the readiness accounts. I related administrative and support ac- Mr. ORTIZ. Mr. Chairman, I want to ask my colleagues to support this great counts. thank the gentleman for yielding me bill. Now, according to senior Pentagon this time. Mr. SPENCE. Mr. Chairman, I yield leaders, readiness is at acceptable lev- I rise in strong support of H.R. 3616, 61⁄2 minutes to the gentlewoman from els, or readiness is as good as it has the National Defense Authorization Jacksonville, Florida (Mrs. FOWLER), ever been, yet when we go out in the Act for fiscal year 1999. I want to spe- the vice-chair of the Subcommittee on field and talk to individual military cifically address the provisions in the Readiness. members, we hear a very different Act relating to military readiness. (Mrs. FOWLER asked and was given story. To get at these discrepancies First, I would like to express my per- permission to revise and extend her re- concerning the condition of our armed sonal appreciation to the Subcommit- marks.) forces, H.R. 3616 contains provisions tee on Readiness leadership and to my Mrs. FOWLER. Mr. Chairman, I rise that require DOD to expand and im- colleagues on both the subcommittee today in strong support of H.R. 3616, prove its readiness reporting system. I and the full committee for the manner the National Defense Authorization believe these and other provisions in which they conducted the business Act for fiscal year 1999, and I want to found in this bill will provide necessary of the subcommittee this session. I especially thank our Chairman, the up-to-date readiness information to the want to specifically thank the gen- gentleman from South Carolina (Mr. senior leadership of the Pentagon and tleman from South Carolina (Mr. SPENCE) and ranking member, the gen- to Congress, and will offer visibility SPENCE), my chairman, and the rank- tleman from Missouri (Mr. SKELTON) into readiness deficiencies before they ing member, the gentleman from Mis- for their strong commitment to na- can become full-scale breakdowns. souri (Mr. SKELTON). Although the gen- tional defense and for the bipartisan Now, there is one other point I would tleman from Virginia (Mr. BATEMAN) is manner in which they fashioned this like to make. The committee has re- not with us today, I want to express excellent piece of legislation. cently heard from the Secretary of De- my appreciation for his personal in- In its continuing effort to assess fense and the entire Joint Chiefs of volvement and the extraordinary steps force readiness, this year our commit- Staff emphasizing the importance of that he took in getting us to where we tee once again conducted a series of fully funding the Operations and Main- are. field hearings at various military in- tenance budget to ensure readiness. We had the opportunity to see the stallations throughout the country to Now, although I emphatically agree readiness through a different set of hear from our operational field com- that readiness must be kept at the eyes, the eyes of the brave soldiers, manders and senior noncommissioned highest possible level, it is important sailors and airmen who are entrusted officers from all the military services. to stress that not all of the operations with the awesome responsibility of car- The overwhelming impression left with and maintenance budget is directly rying out our national military strat- the committee was of a force working tied to military readiness. egy. We heard them talk about the harder, longer, and with fewer person- Of all the major elements of the de- shortage of repair parts while we were nel than ever before. Funding and fense budget, perhaps the least under- conducting hearings throughout the forces continue to shrink while de- stood is the O&M account. At $94.8 bil- continental United States, and the mands of the job increase. lion, O&M funding accounts for the extra hours spent trying to maintain For example, the Army has con- largest share of the President’s defense old equipment, and the shortage of ducted 26 operational events, now these budget request for fiscal year 1999, and critical personnel. While we in this are actions other than routine training it is traditionally considered the readi- body might differ on some policy and and alliance operations, since 1991, ness account. But the O&M account, or program objectives, we on the sub- compared to only 10 during the preced- more precisely, accounts, includes committee were able to get a better ap- ing 31 years. The Marine Corps has con- much more than critical readiness preciation of the challenges that these ducted 62 contingency operations since spending. In addition to paying for day- brave souls faced in trying to do more 1997, compared to only 15 such oper- to-day military operations, training, with less. For their effort we can all be ations since 1982 to 1989. These in- supply and equipment maintenance, proud. I personally remain concerned creases in operational tempo are occur- O&M funds administrative functions, about how long they will be able to ring at the same time that the Army environmental restoration, cooperative keep up the pace. has been reduced from 18 to 10 divi- threat reduction efforts, humanitarian H3474 CONGRESSIONAL RECORD — HOUSE May 19, 1998 assistance, and many other programs. ancing the budget, so let us give our for the thing that should count the Now, whatever the merits of these wealthiest contributors a big tax most? Where will they be when some- other programs, they are related only break. Some of my other colleagues one launches a biological attack on our marginally to the readiness of U.S. come to the House floor and say, well, Nation and we are not ready to re- forces to fight the Nation’s wars. In we are almost balancing the budget, so spond? fact, only about one-half of the total let us pass a whole bunch of new social If Members do not think it could hap- O&M account is directly related to programs. They are both wrong. pen, they should pick up a book called readiness. The highest priority of this Nation The Cobra Event. Our Supreme Allied After a thorough subcommittee re- has to be to defend this Nation, the Commander in Europe, General Wesley view of the administration’s O&M States can do almost everything else, Clark, made his staff read it because it budget request for fiscal year 1999, I am and I am troubled that we are not is so believable. convinced that it is riddled with ac- doing it well enough. I am also trou- What is good about the bill? Some- countant-inspired gamesmanship de- bled that of the 5 people who put to- thing that I think is important is we signed to inflate the O&M top line and gether the defense budget, I am sorry, are going to return to separate gender create the appearance of an adminis- the overall budget for this Nation, the training at the basic level. A kid going tration fully committed to funding President of the United States, the to boot camp goes from being a high readiness. H.R. 3616 addresses the President of the Senate, the Speaker of school senior, where he is on top of the under-funding of critical readiness ac- the House, the Chairman of the Com- world, to suddenly he cannot do or she counts by realigning funds from non- mittee on the Budget in the House, the cannot do anything right. They are, in readiness accounts. Chairman of the Committee on the my opinion, at their most vulnerable. Mr. Chairman, frankly, I would pre- Budget in the Senate, not one of them When they are at their most vulner- fer to be taking up legislation that has spent one second in the uniform of able, we do not need them being led by would provide more funding for defense our country. It does not surprise me a sexual predator. By separating the than is authorized by this bill. Fiscal that they do not think this is impor- sexes, by separating the gender of the year 1999 will represent the fourteenth tant. They never did. people running them through boot year in a row in which real defense We have to ask ourselves, what is camp, we can minimize the oppor- spending declined, but given the budget going to be our legacy? President Jef- tunity for that to go wrong. We can get constraints under which we have to op- ferson has the legacy of sending Lewis our drill instructors back to doing erate, I believe H.R. 3616 goes as far as and Clark out to chart the American their job and our troops going back to it can to ensure that the Defense De- West and the Louisiana Purchase as a basic training. partment receives the resources nec- result of it. Earlier in this century an We restore the funding for the Youth essary to provide for the most impor- America that thought they could do Challenge Program, a beautiful pro- tant readiness requirements for our anything anywhere built the Panama gram by the National Guard that takes military forces. Canal. at-risk youth between the ages of 16 Mr. Chairman, let me close by thank- What is this committee’s legacy? I and 19 years old and gives them a Gen- ing the Chairman of the Subcommittee am sorry to say it is treading water. eral Equivalency Diploma. They go on Readiness, my good friend, the gen- Treading water because we know we through a boot-camp-type environment tleman from Virginia (Mr. BATEMAN) have an op tempo problem and yet we and get themselves drug-free. To date, who was recuperating from surgery could not find the money, the rest of on a nationwide basis, 96 percent of during markup, but whose good counsel the Congress would not give us the those kids have gone on to get a job, was invaluable to me as I stood in as money to properly budget the use of join the American military, or further acting chairman, as well as the rank- the Guard and Reserve so that we could their education. ing member the gentleman from Texas give some of the standing force a As the Chairman, the gentleman (Mr. ORTIZ), for his outstanding leader- break. from California (Mr. HUNTER), pointed ship and for his contributions and his We know we have health care prob- out, we have done as good as we could good friendship. The Subcommittee on lems, not only for active duty, but for on procurement: stepped forward fund- Readiness had to deal with several dif- our retirees. We know we could fix that ing for LST8, 3 DDGs and some Navy ficult issues transcending political with Medicare subvention for about $2 vessels. lines, and our task would have been far billion a year, yet the rest of the Con- But, again, as he mentioned, there more difficult if not for the expertise gress will not let us do that. are 900 Huey aircraft that we will not and assistance of these 2 distinguished allow to fly because we are afraid that b 2245 Members and the cooperation of all of they and the crews in them will fall the subcommittee’s Members. Every single American over the age out of the sky, because the rest of this I urge my colleagues to vote ‘‘yes’’ of 65 now gets health care, but those Congress is not putting forward enough for the bill. people who were promised it in return funds to defend our Nation. Mr. SKELTON. Mr. Chairman, I yield for serving their country for 20 years, Mr. Chairman, we have to ask our- 6 minutes to the distinguished gen- they are being turned away at the base selves, what will be our legacy as Mem- tleman from Mississippi (Mr. TAYLOR). hospital for lack of funds. That is not bers of Congress? We are only here for Mr. TAYLOR of Mississippi. Mr. right. so long. We need to do the best we can Chairman, a while back I was visiting A brilliant plan was put together by with what we have. the honors class at Hattiesburg High our Armed Forces for a mail order My challenge to all of us, Democrats School. One of my students asked me pharmacy plan for our retirees, and for and Republicans, is not to fight with that in my capacity as a member of the lack of funds it will not be put into ef- each other but spread the message to Committee on National Security, fect. the rest of the Congress that this has ‘‘What are you? Are you the cheer- There are still 12,000 fine young to be our Nation’s greatest priority, be- leaders or the critics for America’s Americans in uniform who have to get cause nothing else matters if we can- military?’’ And my answer to her was, food stamps in order to feed their kids. not defend ourselves. we are both. That is wrong. It costs about $100 mil- Mr. SPENCE. Mr. Chairman, I yield 5 The cheerleader in me wants to re- lion to fix it, yet the rest of the Con- minutes to the gentleman from Penn- port that I think we did the very best gress will not give this committee the sylvania (Mr. WELDON), chairman of we could with what we had. The critic money to fix it. our Subcommittee on Military Re- in me wants to point out that I do not Let me make this perfectly clear. I search and Development. think this Congress as a whole is ap- think this committee is bipartisan. (Mr. WELDON of Pennsylvania asked propriating enough to our Nation’s de- The people who care about the military and was given permission to revise and fense. are on this committee. Whether they extend his remarks.) I hear on a daily basis some of my are Democrats or Republicans, they Mr. WELDON of Pennsylvania. Mr. colleagues come to the House floor and care. The problem is, what is happen- Chairman, first of all, let me thank our say, well, we are pretty close to bal- ing with the other 435? Where are they distinguished committee chairman, May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3475 who is one of our outstanding leaders Let us compare the last 6 years to country to modernize and take care of in this body on issues involving na- the previous 40 years, where our troops our R&D needs, or if we do not begin to tional security and support for our were only deployed 10 times. In these 25 reduce the deployment level, or get our troops and our veterans, and the rank- deployments in the last 6 years, while allies to put more money on the table ing member. defense spending has gone down dra- to pay for these deployments, we are The two of them are a dynamic team. matically, none of those deployments going to face I think one of the most They work together. They both come have been budgeted for. So to pay for politically damaging situations that from the same common perspective on all those deployments, Haiti, Somalia, this country will have ever faced in- the defense for this Nation, and they Bosnia, and the domestic deployments volving national security. really set the right tone for the com- here at home, we have had to take I urge my colleagues to pay attention mittee. It is because of their leadership money out of the modernization of the to this debate tomorrow on this bill. that we had a 50 to 1 vote to get our next generation of equipment to sup- Mr. SKELTON. Mr. Chairman, I yield bill out of committee, and most of our port our troops. We have had to rob the 4 minutes to the distinguished gen- subcommittees likewise had very solid R&D accounts. In fact, Bosnia alone tleman from Texas (Mr. REYES). votes in reporting out their portions of will have cost us, by the end of this fis- Mr. REYES. Mr. Chairman, I thank this bill, so I want to applaud both of cal year, $9.4 billion. the gentleman for yielding me the them and all the members of our com- We are facing a crisis, Mr. Chairman. time. mittee who work so well together on We do not have the money to put into Mr. Chairman, I rise tonight in sup- the issue of our country’s national se- modernization. We do not have the port of this bill. I want to thank both curity. money for R&D. The President says, the gentleman from South Carolina Mr. Chairman, I rise for this brief pe- close more bases. We are not going to (Chairman SPENCE) and the ranking riod of time to say that, unfortunately, get around to base closing because the member, the gentleman from Missouri I think we are facing a train wreck un- process was politicized 3 years ago. (Mr. SKELTON), for their hard work to like any that we have seen, certainly All of this happens at a time when, in produce the best budget possible in this in the 12 years I have been in Congress the year 2000, we are being asked to time of ever-increasing defense budg- and I think really in the history of this fund a new aircraft carrier, a new at- ets. country, involving national security. tack submarine, DD–21s. We are being Although I believe the committee The train wreck is being caused by, un- asked to fund three new tactical avia- produced a good bill under the cir- fortunately, a number of things coming tion programs, the F–22, the joint cumstances, I also believe this Nation together all at one time. I think it is strike fighter, and the F/A–18 E&F, the is not providing enough for national going to peak at around the turn of the Commanche for the Army, the V–22 for defense. If we continue on the course century. the Marine Corps. We are being asked set out in the balanced budget agree- I want to go through that briefly. to fund national missile defense, thea- ment, the national security of this Na- The American people have been led to ter missile defense systems, none of tion will be jeopardized. This is the believe that we are spending so much which are properly budgeted. For the 14th straight year of real declines in more money on defense today than we Army after next, digitize the battle- the defense budget. The fiscal year 1999 have in the past. I use a simple com- field, and give the Navy the spy war defense budget request represents the parison. When John Kennedy was system they need to get on the cutting lowest real level of U.S. spending since President, it was a time of relative edge of technology. In addition, we are before the Korean War. peace. It was after Korea and before being asked by the Defense Science Although I do not endorse a $400 bil- Vietnam. We were spending 52 cents of Board to put $4 million more into in- lion budget like those of the 1980s, I do every tax dollar on the military, 9 per- formation warfare, and we are being believe that this budget and the ones cent of our GNP. In this year’s budget asked to put more money into planned for the next 5 years are criti- we are spending 16 cents of the Federal antiterrorism. cally insufficient to maintain a strong tax dollar on the military, about 2.9 Mr. Chairman, all of those factors military with a decent quality of life percent of our GNP on defense. So, in add up to disaster. By the turn of the for the personnel and high-tech weap- fact, the relative percentage of total century, if this Congress does not begin ons needed to protect our country and Federal dollars on the military has to address defense in a realistic way, defeat any enemy. dwindled dramatically. This is the 14th this country is going to be in for a rude Not only is the funding level too low, consecutive year of real cuts in defense awakening. In fact, some of our gen- but the size of our force is insufficient spending. erals are already telling us, as we had for all of the missions they are being Unfortunately, as that defense num- General Tilelli come in and General required to accomplish. As an example, ber comes down, some other things Prueher of the U.S. Pacific Command. Army deployments have increased 300 have happened. First of all, in John U.S. Pacific Command reported defi- percent since 1989. The Army is cur- Kennedy’s era, we had the draft. Young ciencies in six of the eight measured rently funded at 488,000 soldiers. The people were taken out of high school, areas that they have responsibility for. budget request only provided for they served the country for 2 years, The Navy’s U.S. Pacific fleet has only 480,000. How can we expect the Army to and they were paid far below the mini- 73 percent of the young sailors it needs. handle an increase of 300 percent with mum wage. They were not married. There is an almost 10 percent short- these continued decreases in the end They did not have the expenses a mar- age in Navy noncommissioned officers. strength? ried person would have. The Hawaii-based fleet lacks 1,900 sail- At a time when the Army deploy- That is not the case today. We have ors who have key technical skills. The ments are the highest in history, I be- an all-volunteer force, well-educated, Air Force units in the Pacific area, a lieve it is ill-advised to endorse de- maybe with college degrees, many mar- serious manning shortage, which we creasing the end strength of our Army. ried and with children, education costs, can correct in the short term. Our Army is losing outstanding young housing costs, transportation costs to We do not have enough spare parts. men and women, both enlisted and offi- move these families around the world, We have some air wings where one- cers, because they are away from home so a much larger percentage of that third of the planes are not flying be- far too often. When they are home, smaller amount of money goes for the cause we have cannibalized them to they are required to work long hours quality of life of our troops. keep the other two-thirds flying. This and not spend quality time with their Mr. Chairman, we know we are al- same pattern exists for both the Army families. Because of the strain and the ways going to fund quality of life for and the Marine Corps. pressure, many choose to end mar- our troops. But some other things have Mr. Chairman, we are doing the best riages or, as an alternative, to save occurred since the John Kennedy era. we can this year in an impossible budg- marriages by leaving the service. In the last 6 years alone, Mr. Chair- et situation, but this Congress had bet- Our soldiers should not be forced to man, we have seen our troops deployed ter understand that if we do not change make such unacceptable choices. It ap- 25 times at home and abroad. That is a direction and begin to put some addi- pears that the United States military lot of deployments. tional dollars into the defense of this operations throughout the world are H3476 CONGRESSIONAL RECORD — HOUSE May 19, 1998 not decreasing. As such, reducing the If not, then I would ask the leadership again on the previous item that I had end strength of the Army can only ex- and the conference committee that as talked to you on the segregation of the acerbate this problem. they go into the conference with the armed forces and not allowing the I am one of those many current and Senate, that they strike out that lan- women to have equal opportunity. If former soldiers who believes that the guage because I think it is very det- we expect them to be able to partici- Army should be maintained at a mini- rimental. pate, they should be able to practice. mum level of 500,000. Of course, this When we hear the arguments as it Mr. Chairman, I rise today to express con- strength level also requires an increase deals with the separate but equal doc- cern with a provision in the Defense Author- in the Department of Defense budget. trine and what we want to do with ization bill regarding the maintenance of the I also want to remind this Congress women in the military, I think that I C±17 cargo aircraft. The provision added in of our duty to protect our military per- hear what I used to recall back in the committee will significantly increase the costs sonnel. Although the Cold War has 1960s, when we talked about co-ed edu- of maintaining the C±17 by potentially billions ended, new and different threats have cation in our universities and some of of dollars. This increased cost will likely re- emerged. It is our duty to ensure that the same language, and it is unfortu- duce the procurement of future C±17 aircraft, the weapons systems to protect our nate that that is the case. decrease Air Force readiness and airlift capa- soldiers in the field are sufficiently I want to also share with my col- bility, and force the Air Force to hire more ac- funded. leagues an additional concern that I quisition personnel. The C±17 is essential for One of the greatest current and fu- have as it deals with cost. I know we our nation's sustained global power projection ture threats is from weapons of mass have had a great number of individuals and the future backbone of our expeditionary destruction delivered on short- and me- come up here and talk about the need force. dium-range ballistic and cruise mis- for more resources. We also need to Specifically, the bill preempts the Secretary siles. Countries throughout the world look in terms of the language and what of Defense's authority to determine what sys- are working feverishly to develop or it is in there. tems of the C±17 must be maintained in- procure the technology to deliver these Number one, I want you to look very house, abrogating the depot provisions adopt- types of weapons. specifically as it deals with the C–17 ed in last years defense bill. The C±17 provi- We talk about our concerns with language. That particular language, sion structures weapons systems support with- North Korea, Iran, Iraq, and Libya, but number one, sets a very negative prece- out regard to Air Force readiness require- what about other countries? India’s ac- dent. Number two, it is extremely cost- ments; hobbles partnerships and competition tions last week should serve as a wake- ly, and number three, when it comes to essential for maximizing limited budgets, and up call that there are other nations to readiness, puts us in danger. I want to delays defense acquisition reforms. For years Congress called on the Depart- watch and that countries may be closer be able to share a little bit with you ment of Defense to implement acquisition re- to obtaining the technology than we when it comes to the President. form. The C±17 program is a prime example are aware of. We must continue to sup- At this particular time, the language of the Department's acquisition reform ad- port theater missile defense programs that we have there begins to tell the vances in significantly reducing the life cycle to ensure that we deploy systems to de- Department of Defense what should be costs of new aircraft. However, this bills re- fend against these threats as soon as core and what should not. As you well strictive C±17 provision will reverse those ad- possible. know, the last time we did the piece of vances. In addition, last years authorization bill I believe that my colleagues should legislation, we indicated that that is attempted to reduce the Department of De- support this bill before us, but I also the responsibility of the Department of Defense, not the Congress. I think we fense's acquisition workforce, or ``professional urge this Congress and the administra- shoppers,'' by 25,000. However, this bill would tion to work together and increase the are setting a very negative precedent. Secondly, as it deals with cost, one of require the Air Force to hire hundreds more of budget for the Department of Defense. professional shoppers rather than streamlining Mr. SKELTON. Mr. Chairman, I yield the estimates is $500 million in terms of the cost just by that particular the bureaucracy. 4 minutes to the gentleman from Texas Other fiscally irresponsible aspects of the amendment alone in terms of what it is (Mr. RODRIGUEZ). C±17 provision discourage public-private part- doing, not to mention that if you begin (Mr. Rodriguez asked and was given nerships that would save taxpayers millions of to move the C–17 work from the private permission to revise and extend his re- dollars while maintaining a high mission-capa- sector where it is right now into the marks.) ble rate for the C±17. The bill forces the Air depots, we are going to have a situa- Mr. RODRIGUEZ. Mr. Chairman, let Force to waste more than $500 million to cre- tion that it might be up to $1.5- to $2 me, first of all, thank the gentleman ate in-house maintenance capabilities before billion in cost. So I would ask you seri- from South Carolina (Chairman an intelligent decision can be made on this ously to look at that language and be SPENCE) for giving the opportunity to new weapon system. In addition, the engine able to take that into consideration me to serve on that committee, and on the C±17 is a commercial engine devel- also to the gentleman from Missouri when you make those decisions. oped for the Boeing 757. To create an in- Thirdly, I think we are all concerned (Mr. IKE SKELTON) for allowing me also house capability for the engine, which the au- about readiness so that if, as we move, to work with him. thorization would, would cost the Air Force be- and if you look at that language on the Let me just share two concerns that tween $1 billion and $2 billion for the purchase C–17, when it comes to the readiness I have with the existing bill, and I of propriety data alone. think they are very important. One of issue, it really sets a situation in In today's constrained defense budget, we the first ones is the fact, and I was real which the depots are not ready to deal cannot expect the Department of Defense to disappointed that the Committee on with that. They have not been working come up with billions of additional dollars to Rules did not allow an opportunity for with that. As Members well know, one maintain the C±17 in an antiquated manner the language that would have struck of the engines is a commercial engine that doesn't capitalize on the strengths of both out the segregation language that ex- on the commercial flights, and moving the public and private sector and advances in ists in the bill. I think we have a real them towards that would be extremely manufacturing. The C±17 was efficiently de- serious problem in that particular bill costly and, in terms of readiness, is signed to be maintained on the flight line to re- if we are going to segregate women. We going to cause a situation where it duce maintenance costs. The billions of dol- are going in the wrong direction in might take a year and a half to 2 to 3 lars the C±17 provision would likely decrease that area. years before we would even be capable, procurement of future C±17 aircraft. This is to- not to mention the cost of $ 1.5- to $2 b 2300 tally unacceptable. billion, so that as we talk about cost In closing, Congress should not preempt the When we talk about separate but and our concerns regarding readiness warfighter on the decision of maintenance of equal, it was not equal for blacks, and and regarding other options, we also the C±17, the C±17 provision will force the Air I can assure my colleagues that it is need to look at the existing language Force to spend billions on the tail instead of not going to be equal for women. There that is extremely detrimental. the essential tooth, and the measure will have is a need for us and I would ask the I would ask that you consider those a detrimental impact on readiness. leadership to ask the Committee on options as we move forward as it deals Mr. SPENCE. Mr. Chairman, I yield Rules to reconsider that opportunity. with the language on the C–17 and back the balance of my time. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3477

Mr. SKELTON. Mr. Chairman, I yield No bill is perfect, and this bill is no excep- committee Chairman HUNTER, and Research myself such time as I may consume. tion. Consider the fact that our military is find- and Development Subcommittee Chairman I would like to add a word or two. ing it increasingly difficult to get permission to WELDON for their very hard work to produce a Out of this early general debate this use forward bases. This calls for an increased bill that meets the needs of our armed serv- evening, it does appear that there is a emphasis on power projection. ices at a time when overall defense spending bipartisan consensus in favor of doing To me, that means the B±2 Bomber, which is in its fourteenth year of real decline. better for our national security. It is a can strike any target in the world from Whit- H.R. 3616 conforms to the defense spend- matter of resources. It is a matter of man Air Force Base, Missouri, within 24 ing limits established in the Balanced Budget spending. In this good bill, we have, as hours. It also means the Super Hornet, which Act of 1997. However, I share Chairman has been said, we have done well with offers a leap ahead in naval aviation attack SPENCE's and the defense community's con- what we had, but I think there is that capabilities over the aging planes on carrier cerns that these funding levels are inadequate growing understanding that we need to decks today. But the B±2 production line has to meet the increasing number of threats to place national security at the top of been allowed to close, and three Super Hornet our national security. the list, and I hope that this debate has aircraft were cut from the request this year. If you question the need to strengthen brought the attention to the other I think we could have done more to increase America's defenses, just take a look around Members of this body as well as to the efficiency of the Defense DepartmentÐto the world: those others who are interested. squeeze savings out of the bureaucracy that Unstable and unfriendly nations around the I have a couple of other messages, we could use for more modern weapons sys- world are developing medium and long range Mr. Chairman. One is to the, if they tems. I know that this body takes defense re- missile capabilities that directly threaten U.S. were here in front of me, parents of the form seriously, though, and will continue to forces deployed abroad, and may pose a young men and young women in uni- pursue it, if not in this bill. threat to the continental U.S. in the near fu- form. I would tell them that they I am particularly troubled by a couple of sig- ture. should be so very, very proud of what nals this bill sends to women. India and Pakistan are engaged in a nuclear their family members are doing. They First, it perpetuates the policy of barring arms race that could destabilize all of South are professionals. They are dedicated. women serving overseas from using their own Asia. Their operational tempo at times is funds to obtain legal abortion services in mili- U.S. forces are still in Bosnia, with no end horrendous, and yet they are doing tary hospitals. Women who volunteer to serve to that operation in sight. what their Nation is calling upon them in our Armed Forces already give up many And, Saddam Hussein is continuing to ig- to do without complaining as commit- freedoms and risk their lives to defend our nore the terms and conditions that Iraq agreed ted young Americans. So I would tell country. They should not have to sacrifice to at the end of the Persian Gulf War. them, Mr. Chairman, that I and all of their privacy, their health, and their basic con- Moreover, serious personnel problems are us on this committee thank them for stitutional rights to a policy with no valid mili- emerging throughout the services. Readiness their efforts. tary purposes. has been sacrificed as the size of our military Mr. Chairman, if the young people in Second, the bill prejudges its own congres- has been reduced. Morale and retention are uniform were sitting here watching us sionally-created commission studying basic low as quality of life issues are ignored or this evening, I would have a message training and instead forces the services to postponed in order to pay for ongoing oper- for them as well. My message to them segregate men and women. ations. would be to stay the course. If they are Such a requirement is premature, may af- Our military is nothing without our brave in the Navy, steady as you go, because fect unit cohesion and readiness, and will not service men and women, and they need to they are so very, very important to the address the serious problems of sexual mis- know they have this Congress' strong support. future of our country, to the national Strong support also means the best weap- security of our country, to where we conduct and harassment confronting the serv- ons available. This is why it is so important are as the world leader bringing stabil- ices. The segregated training provision is op- that the committee included funding for two F± ity to the various corners of this globe. 16s, eight V±22s, two F±22s, and continued I would tell them not to get discour- posed by the Army, Navy and Air Force. All R&D for the multi-service, multi-role joint strike aged. I would tell them that sooner or believe that the best way to train soldiers, sail- fighter. later they will write some brilliant ors and airmen is to ``train the way we fight.'' Many members may not realize that pro- pages in the history books of this coun- That means in integrated units. curement of new weapons systems have de- try. Those would be my two messages, As Navy Vice Chief of Staff Admiral Pilling clined by 70 percent over the last decade. Mr. Chairman. I am proud of the young testified before the Personnel Subcommittee, if folks in uniform. I hope they stay the men and women do not learn how to live and These are the very weapons that were crucial course, not to get discouraged but to work together during basic training, are the to winning the Persian Gulf War. This is why know how so very, very important they confined quarters aboard ship the next-best it is essential to maintain the F±16, which is are. place? I think not. the workhorse of the Air Force's fighter fleet, I again thank the members of this The provision is also opposed by the top and to proceed with procurement of innovative committee, the gentleman from South enlisted men of all four services, including the new planes like the V±22 and the F±22. Carolina (Mr. SPENCE), the Chairman. sergeant major of the Marine Corps, Lewis G. In closing, Mr. Chairman, I strongly support This has been an absolute thrill for me Lee. passage of H.R. 3616, and I want to thank to be the ranking member on this com- And implementing the segregated living re- Chairman SPENCE, and the other subcommit- mittee, and I appreciate the courtesies quirements required with the bill is expen- tee chairman, once again, for all of their hard that he has extended to me personally siveÐ$159 million for the Army alone. It is work on this legislation. and that the entire committee has ex- deeply troubling that, at a time of increasingly But, I also want to warn my colleagues that tended to those of us on this side of the scarce resources, the Committee has opted our national security cannot be taken for aisle. for this expensive and unnecessary course of granted. Current defense levels cannot be Mr. Chairman, I yield back the bal- action. sustained at the funding levels contained in ance of my time. Lastly, Mr. Chairman, in my view, the long the budget, and we cannot wait for a crisis sit- Ms. HARMAN. Mr. Chairman, I rise in sup- term consequences of this provision will be to uation to revisit this issue. port of this bill. The Committee has worked roll back opportunities for women in the mili- I am looking forward to working with Chair- hard to develop a good, bipartisan bill, and I tary. It will reduce training resources for fe- man SPENCE, and other concerned members, commend our chairman and ranking member male recruits. And it will not reduce the inci- to improve the condition of our armed forces for their leadership. dents of sexual harassment and misconduct. and to ensure that our military remains the The Cold War is long gone, Mr. Chairman, Nearly 50 years ago, the Supreme Court best fighting force in the world. but the world is still a dangerous place. Look told us that ``separate but equal'' is inherently The CHAIRMAN pro tempore (Mr. at the nuclear tests last week in India. Look at unequal. Mr. Chairman, I regret the Committee PEASE). All time for general debate has the advanced ballistic missiles under develop- has failed to recognize this admonition. expired. ment in Iran. Dangers can emerge anywhere, Ms. GRANGER. Mr Chairman, I rise today Under the rule, the Committee rises. and with little warning. I think this bill reflects in strong support of the 1999 National De- Accordingly the Committee rose; and a determination to maintain our position of fense Authorization Act. I particularly want to the Speaker pro tempore (Mr. MORAN of strength within that uncertain world. thank Chairman SPENCE, Procurement Sub- Kansas) having assumed the chair, Mr. H3478 CONGRESSIONAL RECORD — HOUSE May 19, 1998 PEASE, Chairman pro tempore of the space, sea, or land-based systems are re- under a previous order of the House, Committee of the Whole House on the quired to include them and the common- the following Members will be recog- State of the Union, reported that that wealths, when a system is deployed in the fu- nized for 5 minutes each. Committee, having had under consider- ture. f ation the bill (H.R. 3616) to authorize A year ago the Alaska State Legislature The SPEAKER pro tempore. Under a appropriations for fiscal year 1999 for passed a resolution expressing the view of the previous order of the House, the gentle- military activities of the Department people of Alaska that they, along with other woman from Maryland (Mrs. MORELLA) of Defense, to prescribe military per- Americans, should be defended against a mis- is recognized for 5 minutes. sonnel strengths for fiscal year 1999, sile attack. Why are Alaskans concerned (Mrs. MORELLA addressed the and for other purposes, had come to no about their vulnerability to missile attack? In House. Her remarks will appear here- resolution thereon. 1995, the Administration adopted a national in- after in the Extensions of Remarks.) f telligence estimate (NIE) asserting that the f U.S. did not face a threat of missile attack for PROVIDING FOR FURTHER CONSID- at least 15 years. To arrive at this conclusion, The SPEAKER pro tempore. Under a ERATION OF H.R. 3616, NATIONAL the Administration excluded from the National previous order of the House, the gen- DEFENSE AUTHORIZATION ACT Intelligence Estimate (NIE) an assessment of tleman from Texas (Mr. EDWARDS) is FOR FISCAL YEAR 1999 the threat of missile attack to Alaska and Ha- recognized for 5 minutes. Mr. SOLOMON, from the Committee waii. Excluding Alaska and Hawaii from the (Mr. EDWARDS addressed the House. on Rules, submitted a privileged report NIE served to bypass an earlier assessment His remarks will appear hereafter in (H. Rept. No. 105–544) on the resolution by then-Deputy Secretary of Defense John the Extensions of Remarks.) (H. Res. 441) providing for further con- Deutch that territories in these two states f sideration of the bill (H.R. 3616) to au- could be subject to attack by a North Korean The SPEAKER pro tempore. Under a thorize appropriations for fiscal year missile, the Taepo Dong 2, by the end of this previous order of the House, the gen- 1999 for military activities of the De- decade. In fact, the Secretary of Defense tleman from Georgia (Mr. KINGSTON) is partment of Defense, to prescribe mili- issued a report titled Proliferation: Threat and recognized for 5 minutes. tary personnel strengths for fiscal year Response (November 1997) which exemplifies (Mr. KINGSTON addressed the House. 1999, and for other purposes, which was the possible threat to Alaska from both North His remarks will appear hereafter in referred to the House Calendar and or- Korea and China. the Extensions of Remarks.) dered to be printed. I believe it is reprehensible to prepare the f f NIE while leaving some Americans The SPEAKER pro tempore. Under a THE ALL-AMERICAN RESOLUTION undefended in its pursuit of the most minimal previous order of the House, the gentle- missile defense capability possible. My resolu- woman from North Carolina (Mrs. (Mr. YOUNG of Alaska asked and was tion also provides that Alaska and Hawaii, ter- given permission to address the House CLAYTON) is recognized for 5 minutes. ritories and commonwealths must be included (Mrs. CLAYTON addressed the House. for 1 minute and to revise and extend in any NIE prepared by the Administration. his remarks.) Her remarks will appear hereafter in While Alaska and Hawaii were the only two the Extensions of Remarks.) Mr. YOUNG of Alaska. Mr. Speaker, states excluded from consideration under the today I rise to introduce the All-Amer- NIE, most states and territories will be vulner- f ican Resolution expressing the sense of able as well. The Administration's missile de- OPEN MARKETS, REMOVE SANC- Congress that any missile defense sys- fense plan calls for the development of a sys- tem deployed to protect the U.S. from TIONS AND AGGRESSIVELY PRO- tem in which a deployment decision may be MOTE AGRICULTURAL EXPORTS missile attacks would include protec- made in 2000 and deployment completed by The SPEAKER pro tempore. Under a tion for Alaska, Hawaii and territories. 2003. This could leave the vast majority of previous order of the House, the gen- As we can see on this diagram right U.S. territory vulnerable to missile strikes. The tleman from Kansas (Mr. MORAN) is now, Alaska comes into direct threat Administration's policy views the ABM Treaty recognized for 5 minutes. by India, China, et cetera, and now the as ``the cornerstone of strategic stability.'' Mr. MORAN of Kansas. Mr. Speaker, administration sought to avoid pro- I will give a quick history of the ABM Treaty. I rise today to address a serious prob- tecting Alaska, avoid protecting Ha- Article I of the ABM Treaty barred the deploy- lem facing the First District of Kansas waii, and I think it is reprehensible to ment of a national missile defense system ca- and, indeed, all of rural America. have that occur. pable of defending all the nations' territory. In It is time for us to recognize that Over the past 2 years, prices for fact, Article III of the Treaty, as amended by Alaska and Hawaii are part of the wheat and other major agricultural a 1974 Protocol, permitted the deployment of United States and ought to be pro- commodities have been in a free-fall. a single missile defense site that is capable of tected. In fact, we ought to set up our Cash wheat today in Dodge City, Kan- protecting only the region in which it is de- own missile system in Alaska so that sas, closed at $2.86 per bushel. That is ployed. The U.S. designated Grand Forks, we can counterattack in this uncertain almost $2 less per bushel than just 1 North Dakota as this site, although the system time. I urge the passage of this legisla- year ago and other commodities have located there is mothballed. Taking the Grand tion. experienced similar price declines. Forks system out of mothballs and upgrading Soon the combines will start their Today I rise to introduce ``The All-American its capabilities may allow it to provide protec- annual trek north from the Great Resolution'' expressing the sense of the Con- tion to all of America. Whether you agree with Plains of Texas to Canada. If current gress that any missile defense system de- the ABM Treaty, or not, I believe we would all harvest projections hold true, a large ployed to protect U.S. from missile attack agree on the necessity to defend all of Amer- U.S. wheat crop will put further down- should include protection for Alaska, Hawaii, ica, including Alaska, Hawaii, the territories ward pressure on already depressed territories and commonwealths of the United and commonwealths from the threat of ballistic prices. States. missile attacks. While there is no silver bullet, there The U.S. Constitution provides that it is an I call on all my colleagues who wish to see are several important steps the Presi- essential responsibility of the federal govern- their constituents protected, to look seriously dent and Congress can take to improve ment to protect to all United States citizens at the resolution introduced today. My friends, the economic outlook for this Nation’s against foreign attack. However, the Adminis- this act will improve the interests of all Ameri- farmers and ranchers. According to tration's development plan is based on a pol- cans, now and into the future. icy of observing the restrictions of the 1972 USDA, exports are predicted to be Anti-Ballistic Missile (ABM) Treaty, which pro- f down at least $4 billion this year. This hibits the deployment of a missile defense b 2310 is a clear signal that Congress and the system capable of defending all U.S. territory. President must be aggressive in open- As such, the plan excludes Alaska, Hawaii, SPECIAL ORDERS ing markets and promoting agricul- and territories. While this legislation does not The SPEAKER pro tempore (Mr. tural exports. attempt to abrogate or amend the ABM Trea- PEASE). Under the Speaker’s an- We should start by using the tools we ty, it does express the sense of Congress that nounced policy of January 7, 1997, and already have at our disposal. Since May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3479 coming to Congress about a year and a in a more market-oriented direction. creation, is destructive of wealth on the long half ago, I have communicated regu- But in order to have true market ori- run. This is what we are witnessing in Indo- larly with Agriculture Secretary Dan entation, we need markets. The only nesiaÐthe long runÐand it's a much more Glickman on the importance of using way to improve prices on a long-term destructive scenario than the currently collaps- the Export Enhancement Program for basis is to pursue aggressive, even- ing financial system in Japan. All monetary in- wheat and flour. While wheat flour and handed trade initiatives. The decisions flation, something all countries of the world are wheat exports have been seriously in- made here in Washington, D.C. have now participating in, must by their very nature jured by European trade barriers and real world implications for agricultural lead to an economic slump. sizable foreign subsidies, under USDA’s producers. Now is the time to open The crisis in Indonesia is the predictable current plan wheat and flour will re- markets, remove sanctions and aggres- consequence of decades of monetary inflation. ceive no assistance from EEP. sively promote agricultural exports to Timing, severity, and duration of the correc- I know Secretary Glickman cares give our farmers a fighting chance. Mr. tion, is unpredictable. These depend on politi- deeply about the problems faced by Speaker, it is time to trade. cal perceptions, realities, subsequent eco- Kansas wheat farmers, but I am con- f nomic policies, and the citizen's subjective re- cerned that he receives insufficient The SPEAKER pro tempore (Mr. action to the ongoing events. The issue of support from the Clinton administra- TAYLOR of North Carolina). Under a trust in the future and concerns for personal tion in implementing policy changes previous order of the House, the gentle- liberties greatly influences the outcome. Even that could assist agricultural produc- woman from California (Ms. a false trust, or an ill-founded sense of secu- ers. Recently Secretary Glickman an- MILLENDER-MCDONALD) is recognized rity from an authoritarian leader, can alter the nounced the use of EEP to combat spe- for 5 minutes. immediate consequences of the economic cor- cific injurious trade barriers. While I (Ms. MILLENDER-MCDONALD ad- rections, but it cannot prevent the inevitable support this action, I remain concerned dressed the House. Her remarks will contraction of wealth as is occurring slowly in that when the Europeans spent $7.7 bil- appear hereafter in the Extensions of the more peaceful Japan and rapidly and vio- lion on export subsidies, the United Remarks.) lently in Indonesia. States only spent $56 million. f The illusion of prosperity created by infla- This is an example of what we face. tion, and artificially high currency values, en- The European Community is spending The SPEAKER pro tempore. Under a courage over-expansion, excessive borrowing almost $47 billion annually in 1997 in previous order of the House, the gen- and delusions that prosperity will last forever. assistance and subsidies to agriculture. tleman from Arkansas (Mr. HUTCH- This attitude was certainly present in Indo- Of that, about $7.7 billion is in assist- INSON) is recognized for 5 minutes. nesia prior to the onset of the economic crisis ance and subsidies toward exports, (Mr. HUTCHINSON addressed the in mid 1997. Even military spending by the In- while in the United States we spend House. His remarks will appear here- donesian government was enjoying hefty in- only $5.3 billion annually, almost an 8- after in the Extensions of Remarks.) creases during the 1990's. All that has quickly time difference we face as a disadvan- f ended as the country now struggles for sur- tage. And this line we cannot even see, The SPEAKER pro tempore. Under a vival. this blue line, is what we spend in as- previous order of the House, the gen- But what we cannot lose sight of is that the sisting agricultural exports in this tleman from American Samoa (Mr. Indonesia economic bubble was caused by a United States for American agricul- FALEOMAVAEGA) is recognized for 5 flawed monetary policy which led to all the tural producers. minutes. other problems. Monetary inflation is the moth- We may not be waving the white flag (Mr. FALEOMAVAEGA addressed the er of all crony ``capitalism.'' in defeat, but we are certainly far from House. His remarks will appear here- CHARACTERISTICS OF THE CORRECTION putting up the necessary fight on be- after in the Extensions of Remarks.) half of the American farmer. This is One important characteristic of an economic f not to say that all efforts have been in correction, after a period of inflation (credit ex- vain. This past year Secretary Glick- THE INDONESIA CRISIS pansion) is its unpredictable nature because man has been successful in increasing subjective reactions of all individuals con- The SPEAKER pro tempore. Under a cerned influence both political and economic the GSM 102, export credit guarantee previous order of the House, the gen- program, from $3 billion last year to al- events. Therefore, it's virtually impossible to tleman from Texas (Mr. PAUL) is recog- predict when and how the bubble will burst. most $6 billion this year. This support nized for 5 minutes. has been beneficial but much more It's duration likewise is not scientifically ascer- needs to be done. BACKGROUND tainable. Market access for agricultural prod- Mr. PAUL. Mr. Speaker, the Soviet system, A correction can be either deflationary or in- ucts must also be improved. Our farm- along with the Berlin Wall, came crashing flationary or have characteristics of both. ers continue to suffer the consequences down in 1989, the same year the new, never- Today, in Indonesia, the financial instruments of foreign policy decisions that shut to-end, era came to a screeching halt in and real estate are deflating in price, while them out of markets around the world. Japan. The Japanese economic miracle of the consumer prices are escalating at the most It is time for these markets to be 1970's and the 1980's, with its ``guaranteed'' rapid rate in 30 years due to the depreciation opened. safeguards, turned out to be a lot more vulner- of the rupiah. Indonesia is in the early stages Wheat imports to North Korea, Cuba, able than any investor wanted to believe. of an inflationary depressionÐa not unheard Iran and Iraq have all doubled since Today the Nikkei stock average is still down of result of sustained Central Bank inflationary 1995 and now account for over 10 mil- 60% from 1989, and the Japanese banking policy. Many believe price inflation only occurs lion tons of wheat. These growing mar- system remains vulnerable to its debt burden, with rapid growth. This is not so. kets are off-limits to U.S. producers a weakening domestic economy and a grow- Blame is misplaced. Rarely is the Central but not to Canadians and not to Aus- ing Southeast Asian crisis spreading like a Bank and paper money blamedÐunless a cur- tralian farmers. Our sanctions now wild fire. That which started in 1989 in rency value goes to zero. In Indonesia the wall off 11 percent of the world wheat JapanÐand possibly was hinted at even in the most vulnerable scapegoat has been the Chi- market, a segment larger than the lost 1987 stock market ``crash''Ðis now sweeping nese businessmen, now in threat of their lives sales of the Soviet grain embargo sev- the Asian markets. The possibility of what is and fleeing the country. eral years ago. In today’s global econ- happening in Asia spreading next to Europe A much more justifiable ``scapegoat'' is the omy, unilateral sanctions by the U.S. and then to America should not be summarily IMF and the American influence on the strin- unfairly penalize our producers, reward dismissed. gent reforms demanded in order to receive the our competitors, and have little impact ECONOMIC FALLACY $43 billion IMF bailout. IMF policy on aggra- on changing behavior in the target Belief that an artificial boom, brought about vates and prolongs the agony while helping country. The American farmer is tired by Central Bank credit creation, can last for- the special interest rich at the expense of the of paying the price for failed U.S. for- ever is equivalent to finding the philosopher's poor. The IMF involvement should not be a eign policy. stone. Wealth cannot be created out of thin distraction from the fundamental cause of the Mr. Speaker, the last farm bill asked air, and new money and credit, although it can financial problem, monetary inflation, even if it American farmers to take agriculture on the short-term give an illusion of wealth did allow three decades of sustained growth. H3480 CONGRESSIONAL RECORD — HOUSE May 19, 1998 ``Crony capitalism'' was not the cause of In- property. Let us make sure our own govern- vigilant enough to keep the administration donesia's trouble. Inflationism and political cor- ment acts responsibly in all matters of law and from accomplishing the same bail-out through ruption allows crony capitalism to exist. It order here at home before we pretend we can Executive Orders outside the law. would be better to call it economic interven- save the worldÐa responsibility not achiev- MESSAGE tionism for the benefit of special interestsÐa able even if motivated with the best of inten- What should the message be to the Con- mild form of fascismÐthan to abuse the free tions. gress and the American people regarding this market term of capitalism. Effort to prop up an ailing economy after the sudden and major change in the economic cli- Any serious economic crisis eventually gen- financial bubble has been popped, prolongs mate in Indonesia? First and foremost is that erates political turmoil, especially if political the agony and increases the severity of the since we operate with a fiat currency, as do all dissent has been held in check by force for correction. Japan's bubble burst in 1989 and the countries of the world, we are not immune any significant period of time. There should be there is not yet any sign of the cleansing of from a sudden and serious economic adjust- no surprise to see the blood in the streets of the system of bad debt and mal-investment mentÐat any time. Dollar strength and our JakartaÐsoon to spread and build. Political which is necessary before sound growth will ability to spend dollars overseas, without pen- events serve to aggravate and magnify the resume. And Indonesia is embarking on the alty, will not last forever. Confidence in the logical but subjectively sensitive declining cur- same predictable course. Restoration of free U.S. economy, and the dollar will one day be rency values and the faltering economy. The markets, and establishing sound monetary pol- challenged. The severity of the repercussion is snowballing effect makes the political crisis icy has not yet been considered. The people not predictable but it could be enormous. Our much more serious than the economic crisis of Indonesia and the rest of the world should obligation, as Members of Congress, is to pro- since it distracts from the sound reforms that prepare for the worst as this crisis spreads. tect the value of the dollar, not to deliberately could restore economic growth. These cir- For Congress, the most important thing is to destroy it, in an attempt to prop up investors, cumstances, instead of leading to more free- forget the notion that further taxing American foreign governments or foreign currencies. dom, invite marshal law for the purpose of re- workers to finance a bail-out, that won't work, That policy will only lead to a greater crisis for storing stability and the dangers that go with is the worst policy of all for us to pursue. all Americans. it. The Indonesian government had one idea As the Asian crisis spreads, I would expect Errors in economic thinking prompt de- worth considering under these very difficult cir- Europe to feel the crunch next. Unemployment mands from the masses for more government cumstances. They wanted to replace their is already at a 12% level in Germany and programs to ``take care'' of the rapidly growing central bank with a currency board. It's not the France. The events can be made worse and number of poor. Demands for more socialism gold standard, but it would have been a wise accelerated by outside events like a Middle and price controls results whether it's in edu- choice under current conditions. But the Eastern crisis or a war between India and cation, medical care, unemployment benefits United States and the IMF insisted that in Pakistan both now rattling their nuclear weap- or whateverÐall programs that Indonesia can- order to qualify for IMF funding this idea had ons. Eventually though, our system of ``crony not afford even if they tried to appease the ri- to be rejected outright and the new central capitalism'' and fiat money system will come oting populous. bank for Indonesia had to be patterned after under attack. Our system of favoring industries SOLUTIONS ATTEMPTED the Federal Reserve with, I'm sure, ties to it is different than the family oriented favoritism The IMF's $43 billion bailout promise has for directions from Greenspan and company. of Suharto, but none-the-less is built on a sys- done nothing to quell the panic in the streets A currency board would allow a close linkage tem of corporate welfare that prompts constant of Jakarta. If anything, conditions have wors- of the rupiah to the dollar, its value controlled lobbying of Congress and the Administration ened the Indonesians deeply resent the aus- by market forces, and would have prevented for each corporation's special interests. We tere conditions demanded by the IMF. Since domestic Indonesia monetary inflationÐthe have little to talk about as we preach austerity, the U.S. is the biggest contributor to the IMF principle cause of the economic bubble now balanced budgets and sound money to the and the world financial and military cop, re- collapsed. The shortcoming of a currency current victims. Our day will come when we sentment toward the United States is equal to board is that the Indonesian currency and will humble ourselves before world opinion as that of the IMF. The Indonesian people know economy would be dependent on dollar stabil- our house of cards comes crashing down. they won't be helped by the bailout. They al- ity which is far from guaranteed. We will all know we are on the right track ready see their jobs disappearing and prices REFUSAL when the people and our leaders are talking of soaring. The political and economic future, just In the approximately 8 months since the cri- restoring liberty to all equally, and establishing a few months ago looking rosy, but it is now sis hit Indonesia there has been no serious a sound money system that prevents the Fed bleak beyond all description. Indonesians look at the underlying causeÐmonetary infla- from manufacturing money and credit out of know what the American taxpayers know; the tion brought about by a central bank. Nor has thin air for the benefit of politicians, corpora- IMF bailout helps the rich lenders who for dec- any serious thought gone into the internation- tions and bankers who directly benefit. ades made millions but now want their losses alization of credit as United States exports of f covered by weak victims. Is there any wonder billions of dollars, and thus our own inflation, resentment and rage prevails in Indonesia? to most nations of the world who hold these PREVENTING TEEN PREGNANCY The U.S. has just sent a military delegation dollars in reserve and use them to further in- The SPEAKER pro tempore. Under a to study and obviously advise the Indonesian flate their own currencies. Our huge negative previous order of the House, the gentle- government regarding the law and order crisis trade balance and foreign debt is not consid- woman from Texas (Ms. JACKSON-LEE) now in process. Our officials say that we're ered by conventional wisdom to be relevant to is recognized for 5 minutes. there to watch that the Indonesian military do the Asian currency problems, yet undoubtedly Ms. JACKSON-LEE of Texas. Mr. Speaker, not abuse the rights of Indonesian citizens. it is. True reform to deal with the growing first of all, I am pleased to have the time to Even if true, and well motivated, where did worldwide crisis can only be accomplished by speak here today about the importance of pre- this authority come from for us to run to the us first recognizing the underlying economic venting teen pregnancy, and I think it is cru- scene of the crimeÐon the other side of the errors that caused the current crisis. cially important that we recognize this month world and pretend we have all the answers. The philosophy of the free market, holds a as Teen Pregnancy Prevention month. Proper authority or not put aside, the Indo- lot of answers, yet the difference between free As a member of the Women's Congres- nesian people perceive even a few U.S. mili- market capitalism and interventionist political sional Caucus and the Chair of the Children's tary advisors as a further threat to them. The cronyism has not been considered by any of Congressional Caucus, I have been a strong U.S. is seen as an extension of the IMF and the world banking and political leaders cur- advocate of teen pregnancy prevention. is expected to more likely side with the Indo- rently addressing the exploding Southeast I recently offered an amendment to H.R. nesian military than with the demonstrators. Asian crisis. 2264, a labor and appropriations bill which No government likes to see any dissolution of Concern for personal liberty is not a subject was to increase funding by $2 million for teen government power even the questionable associated with the crisis and is an ongoing pregnancy programs sponsored by the CDC. ones. It might encourage others unhappy with casualty of past and current policy. A greater The consequences of teenage pregnancy their own government. And it is not like the concern for individual liberty will be required if and child-bearing are serious and contribute to U.S. government is innocent and benign, con- a positive outcome is to be expected from the many of the nation's enduring social problems. sidering our recent history at Kent State, fall-out of the Indonesian crisis. Let's hope we Becoming pregnant and having a baby early Waco, and Ruby Ridge and the hundreds of can get our priorities straight. Congress has in life makes it difficult to create an emotion- no-knock entries made in error, causing loss an obligation not to worsen the crisis by ally and financially sound environment for chil- of life, multiple injuries and destruction of capitulating to more bail-outs and to remain dren. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3481 Yet every year, approximately one million (Mr. FRANKS addressed the House. well commented that Jason would not have teenagers in this country become pregnant His remarks will appear hereafter in any intention of running for the office, but if and 90 percent of those pregnancies are unin- the Extensions of Remarks.) Jason were asked by the Kuomintang, Jason will run. Why? Jason is very loyal to the f tended. party. Teenage girls have a higher risk of preg- The SPEAKER pro tempore. Under a If the Kuomintang can’t find any other nancy complications, including maternal mor- previous order of the House, the gentle- candidate to run for the office and if the tality and morbidity, miscarriages, still births, woman from Florida (Ms. BROWN) is Kuomintang leaders keep asking Jason to premature births and nutritional deficiencies recognized for 5 minutes. run, Jason will run. than adult women. (Ms. BROWN addressed the House. Jason is not a career diplomat. During his Fewer than 60% of these teen mothers tenure as Taipei’s highest ranking diplomat Her remarks will appear hereafter in in Washington, D.C., Jason shed outdated graduate from high school by age 25, and in the Extensions of Remarks.) conventions and emerged a winner in gaining addition to a lower educational status, early f new friends for his country during a period of childbearing has an impact on the economic The SPEAKER pro tempore. Under a diplomatic low tide between Washington and status of teens by affecting employment op- previous order of the House, the gen- Taipei. portunities, marital options, and family struc- In June 1996, Jason assumed the post as tleman from California (Mr. RIGGS) is ture. Taipei’s representative in Washington, D.C. recognized for 5 minutes. Immediately after arrival in Washington, he Teen mothers are four times as likely as (Mr. RIGGS addressed the House. His women who have their first child after adoles- was an enthusiastic participant in activities remarks will appear hereafter in the sponsored by other diplomats, the U.S. Con- cence to be poor in their 20's and early thir- Extensions of Remarks.) gress, think-tanks, international organiza- ties, and are likely to have lower family in- f tions, U.S. Government officials and any comes later in life. other persons or groups, whether or not their In my home state of Texas, the birth rate for The SPEAKER pro tempore. Under a countries recognize Taipei. teenagers 15±18 years of age is 78.9%. previous order of the House, the gentle- He would meet with anyone if he thought Although this is a decrease by 3.9% since woman from the Virgin Islands (Ms. that person would enhance Taipei’s diplo- 1991, far too many of our communities' chil- CHRISTIAN-GREEN) is recognized for 5 matic interests. Jason is a man full of self- dren across the United States are having chil- minutes. confidence, wit, humor, sincerity and consid- (Ms. CHRISTIAN-GREEN addressed erable personal charm. During his short ten- dren of their own. ure in Washington, he was a highly visible Teenage pregnancy and childbearing come the House. Her remarks will appear hereafter in the Extensions of Re- diplomat and even earned the admiration of hand in hand with a levels of risk for all in- diplomats in the U.S. State Department for volved. marks.) his professionalism. In fact, during Jason’s We all carry the potential burden when chil- f fifteen months in Washington, he won the dren themselves have children, personally, so- The SPEAKER pro tempore. Under a confidence of the United States Government, cietally and economically. previous order of the House, the gen- acceptance of the diplomatic corps, respect Our country spends more than $20 billion tleman from Michigan (Mr. SMITH) is of the overseas Chinese in the United States dollars each year assisting teen parents and recognized for 5 minutes. and loyalty of his colleagues. He was also popular with the press. their children. (Mr. SMITH addressed the House. His It has been less than 8 years since Jason Only through education and programs such remarks will appear hereafter in the Hu entered government office. as campaigns such as The National Campaign Extensions of Remarks.) When he first served as the government’s to Prevent Pregnancy, and a similar program f spokesman, he impressed everyone with his through the Texas Southern University in leadership abilities. But what distinguished JASON HU—A MODERN DIPLOMAT Houston, Texas that focuses on the prevention him the most was his service as Taipei’s top WITH VISION of pregnancy in pre-adolescents and adoles- diplomat in Washington. Before he came to Washington, Taipei maintained low-level cents. The SPEAKER pro tempore. Under a previous order of the House, the gen- contacts with the U.S. Government. But Our children and our adolescents carry the with Jason’s efforts, within half a year after future of tomorrow. We must do everything we tleman from New York (Mr. SOLOMON) Jason’s arrival in Washington, the level of can to help our children prolong childbearing is recognized for 5 minutes. contacts between Taipei and Washington was and parenting until they can truly be respon- Mr. SOLOMON. Mr. Speaker, in the April 10 significantly upgraded. Moreover, being a sible adults and parents. edition of the Central Daily News, published in non-career diplomat, Jason was an innova- f Taipei, there was an excellent article about tive diplomat with new ideas. His activities in Washington extended far The SPEAKER pro tempore. Under a Taiwan's Foreign Minister Jason Hu. Jason was the former Taiwan representative in beyond traditional diplomatic circles; he had previous order of the House, the gen- direct contacts with many international or- tleman from Colorado (Mr. MCINNIS) is Washington, D.C. and a friend to many of us ganizations stationed in Washington. on the Hill. recognized for 5 minutes. PERSISTENT JASON HU I would like to ask the permission to print (Mr. McINNIS addressed the House. A man full of self-confidence Jason is gift- His remarks will appear hereafter in the article, in an English translation by Profes- ed with the ability to foster a favorable envi- the Extensions of Remarks.) sor N. Mao, for the reference of my colleagues ronment for talks with friends and strangers. and friends. f For protocol reasons, he could not be for- JASON HU—A MODERN DIPLOMAT WITH VISION mally addressed as ‘‘Ambassador Hu’’ in The SPEAKER pro tempore. Under a Will Jason Hu be the ruling Kuomintang Washington but could be properly addressed previous order of the House, the gentle- candidate to run for Mayor of the city of as ‘‘Doctor Hu’’ of Oxford University. woman from California (Mrs. CAPPS) is Taipei? No one could ignore his impressive Oxo- recognized for 5 minutes. This topic stirred up considerable specula- nian credentials. In 1995 Jason held a face-to- (Mrs. CAPPS addressed the House. tion in the offices of the Taipei Economic face dialogue with Dr. Kissinger and he Her remarks will appear hereafter in Cultural Representative Office in Washing- equaled Kissinger in terms of knowledge and the Extensions of Remarks.) ton, D.C. Most of Jason Hu’s former assist- sharp analytical ability. Jason is a confident man but definitely not an arrogant man. f ants professed high confidence in Jason Hu’s waging a successful campaign for the job, In fact, Jason can make any adversary The SPEAKER pro tempore. Under a but they would prefer to see Jason stay on as happy to be in his company. previous order of the House, the gen- the Republic of China’s Foreign Minister. After a few witty introductory remarks, tleman from Washington (Mr. One close aide of Jason’s commented that Jason will make his listener eager for more the Republic of China’s diplomatic work conversation. When the ‘‘chemistry’’ is METCALF) is recognized for 5 minutes. right, Jason tries his best to persuade his ad- (Mr. METCALF addressed the House. needs someone like Jason, a non-career but highly innovative diplomat with fresh ideas versary of his viewpoints. Even though dif- His remarks will appear hereafter in ferences of opinion may persist Jason never the Extensions of Remarks.) and vision. Nearly all of Jason’s former aides expressed the view that they would not want allows his adversary to feel confrontational. Even though Jason Hu has left Washington f to see Jason leave his current post as For- for more than six months, friends still talk The SPEAKER pro tempore. Under a eign Minister. about his innovative personal style in ap- previous order of the House, the gen- BREAKTHROUGH IN TAIPEI-U.S. RELATIONS proaching friends and foe. tleman from New Jersey (Mr. FRANKS) Will Jason Hu run for the office of the Another characteristic of Jason’s is his is recognized for 5 minutes. Mayor of Taipei? Someone who knows Jason persistence. In April 1997, during Speaker H3482 CONGRESSIONAL RECORD — HOUSE May 19, 1998

Gingrich’s Asian tour the Speaker and his Ms. JACKSON-LEE of Texas, for 5 min- Mr. SMITH of Michigan, in two in- delegation made a whirlwind 4-hour stop in utes, today. stances. Taipei. Mrs. CAPPS, for 5 minutes, today. (The following Members (at the re- At first, everyone, including Gingrich him- quest of Mr. MORAN of Kansas) and to self, believed that it was not possible to add Mr. PALLONE, for 5 minutes, today. Taipei to the Speaker’s Asian itinerary, but Ms. BROWN of Florida, for 5 minutes, include extraneous matter:) Jason Hu persisted in asking the Speaker to today. Mr. REYES. reconsider his itinerary. Finally, he con- Ms. CHRISTIAN-GREEN, for 5 minutes, Mr. HALL of Texas. vinced the Speaker of the uttermost impor- today. Mr. GOODLATTE. tance for the delegation to stop in Taipei. The following Members (at the re- Mr. GILLMOR. Gingrich relented and squeezed in four pre- quest of Mr. MORAN of Kansas) to re- cious hours in Taipei. Mr. LAZIO of New York. At about the same time, in a number of ar- vise and extend their remarks and in- Mr. BLUMENAUER. ticles the New York Times mentioned the clude extraneous material: Mr. CLYBURN. ‘‘Taiwan factor,’’ implying Taiwan was a Mr. KINGSTON, for 5 minutes, today. Mr. MORAN of Kansas. troublemaker in U.S. relations with China. Mr. MORAN of Kansas, for 5 minutes, Mr. PAPPAS. Jason Hu repeatedly communicated with the today. editors of the New York Times, trying to Mr. KILDEE. Mr. HUTCHINSON, for 5 minutes each Mr. CONDIT. convince them of Taipei’s perspectives. As a day, today and on May 20, 21 and 22. result of Jason’s efforts, the New York Mr. PAYNE. Mr. PAUL, for 5 minutes, today. Times has not again mentioned the ‘‘Taiwan Mr. PACKARD. factor.’’ Mr. MCINNIS, for 5 minutes each day, JASON HU—A MAN OF POTENTIAL today and on May 20. f After the 1996 U.S. elections, Jason Hu vis- Mr. METCALF, for 5 minutes, today. ited former Senator Robert Dole, former Na- Mr. FRANKS of New Jersey, for 5 min- SENATE BILL REFERRED tional Security Advisor Tony Lake and utes each day, today and on May 20, 21 former Secretary of Defense William Perry, and 22. A bill of the Senate of the following title was taken from the Speaker’s briefing them of the developments in Tai- Mr. EHRLICH, for 5 minutes, on June wan. 2. table and, under the rule, referred as It appears that Messrs Dole, Lake and follows: Mr. RIGGS, for 5 minutes, today. Perry all have now developed a good under- S. 1723. An act to amend the Immigration standing of the issues affecting Taiwan. Mr. SMITH of Michigan, for 5 minutes each day, today and on May 20. and Nationality Act to assist the United Jason Hu deserves credit for making these States to remain competitive by increasing opinion-makers aware of Taiwan’s develop- Mr. SOLOMON, for 5 minutes, today. the access of United States firms and insti- ments. f tutions of higher education to skilled person- Will Jason Hu run for the Taipei mayoral nel and by expanding educational and train- seat? The answer will come in May of this EXTENSION OF REMARKS ing opportunities for American students and year. Considering Jason Hu’s electability By unanimous consent, permission to workers; to the committee on the judiciary, and potential, he will be a winning card for and in addition, to the Committee(s) on Edu- revise and extend remarks was granted the Kuomintang. cation and the Workforce, and the Commit- f to: tee on International Relations, for a period (The following Members (at the re- to be subsequently determined by the Speak- LEAVE OF ABSENCE quest of Mr. REYES) and to include ex- er, in each case for consideration of such pro- By unanimous consent, leave of ab- traneous matter:) visions as fall within the jurisdiction of the sence was granted to: Ms. ESHOO. committee concerned. Mr. KIND. Mr. CRANE (at the request of Mr. f ARMEY) for today on account of illness. Mr. KENNEDY of Rhode Island. Mr. BATEMAN (at the request of Mr. Mr. HALL of Ohio. ENROLLED BILL SIGNED ARMEY) for today and the balance of Mr. BONIOR. the week on account of medical rea- Mr. SHERMAN. Mr. THOMAS, from the Committee sons. Mr. VISCLOSKY. on House Oversight, reported that that Mr. MEEKS of New York (at the re- Mr. KILDEE. committee had examined and found quest of Mr. GEPHARDT) for today and Mr. EDWARDS. truly enrolled a bill of the House of the following title, which was thereupon the balance of the week on account of Mr. SKELTON. signed by the Speaker: family matters. Mr. THOMPSON. Mr. UNDERWOOD (at the request of Mrs. MALONEY of New York. H.R. 3565. An act to amend Part L of the Omnibus Crime Control and Safe Streets Act Mr. GEPHARDT) for today and the bal- Ms. PELOSI. ance of the week on account of official of 1968. Mr. SCHUMER. business. Mrs. CAPPS. f Mr. MCNULTY (at the request of Mr. Ms. SANCHEZ. GEPHARDT) for today on account of Mr. STARK. family business. SENATE ENROLLED BILL SIGNED Ms. HARMAN. f The SPEAKER announced his signa- Mr. RUSH. ture to enrolled bill of the Senate of SPECIAL ORDERS GRANTED (The following Members (at the re- the following title: quest of Mr. MORAN of Kansas) and to By unanimous consent, permission to include extraneous matter:) S. 1605. An act to establish a matching address the House, following the legis- grant program to help State and local juris- Mr. RADANOVICH. lative program and any special orders dictions purchase armor vests for use by law heretofore entered, was granted to: Mr. SMITH of New Jersey. enforcement departments. (The following Members (at the re- Mr. NEY. f quest of Mr. REYES) to revise and ex- Mr. YOUNG of Alaska. tend their remarks and include extra- Mr. ARCHER. neous material:) Mr. GILMAN. ADJOURNMENT Mr. EDWARDS, for 5 minutes, today. Mr. MCCOLLUM. Mr. MORAN of Kansas. Mr. Speaker, Mrs. CLAYTON, for 5 minutes, today. Mr. WALSH. I move that the House do now adjourn. Ms. MILLENDER-MCDONALD, for 5 min- Mr. HORN. The motion was agreed to; accord- utes, today. Mr. SHAW. ingly (at 11 o’clock and 19 minutes Mr. FALEOMAVAEGA, for 5 minutes, Mr. DELAY. p.m.), the House adjourned until today. Mr. PORTMAN. Wednesday, May 20, 1998, at 10 a.m. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3483 EXPENDITURE REPORTS CONCERNING OFFICIAL FOREIGN TRAVEL Reports and amended reports concerning the foreign currencies and U.S. dollars utilized for official foreign travel dur- ing the fourth quarter of 1997 and first quarter of 1998 by Committees of the House of Representatives, as well as a consoli- dated report of foreign currencies and U.S. dollars utilized for speaker-authorized official travel during April of 1998, pur- suant to Public Law 95–384 are as follows: AMENDED REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON AGRICULTURE, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN OCT. 1 AND DEC. 31. 1997

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. Bob Smith ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon Bill Barrett ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon Richard Pombo ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon. Tom Ewing ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon Frank Lucas ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon. Sam Farr ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon. Eva Clayton ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon. Gary Condit ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon. John Boehner ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Hon. Collin Peterson ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Paul Unger ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Andrew Baker ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Lynn Gallagher ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Bryce Quick ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Jason Vaillancourt ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 William O’Conner ...... 12/7 12/14 Australia ...... 152.46 ...... 152.46 Committee total ...... 2,439.36 ...... 2,439.36 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. BOB SMITH, Chairman, Apr. 29, 1998

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. Frank R. Wolf ...... 1/11 1/14 Russia ...... 670.00 ...... 670.00 Commercial airfare ...... 4,961.00 ...... 4,961.00 Hon. John P. Murtha ...... 1/7 1/9 Japan ...... 354.00 ...... 354.00 1/9 1/11 South Korea ...... 456.00 ...... 456.00 Commercial airfare ...... 5,747.00 ...... 5,747.00 Gregory R. Dahlberg ...... 1/7 1/9 Japan ...... 354.00 ...... 354.00 1/9 1/11 South Korea ...... 456.00 ...... 456.00 Commercial airfare ...... 5,747.00 ...... 5,747.00 Hon Esteban Torres ...... 1/15 1/18 Belgium ...... 852.00 ...... (3) ...... 852.00 1/18 1/20 Poland ...... 556.00 ...... 556.00 Charles Flickner ...... 2/20 2/26 Mongolia ...... 1,399.00 ...... 1,399.00 Commercial airfare ...... 5,456.00 ...... 5,456.00 William B. Inglee ...... 2/15 2/17 Hungary ...... 494.00 ...... 494.00 2/17 2/19 Czech Republic ...... 564.00 ...... 564.00 2/19 2/21 Poland ...... 556.00 ...... 556.00 Commercial airfare ...... 3,999.38 ...... 3,999.38 John G. Shank ...... 2/12 2/16 Bosnia/Herzegovina ...... 1,204.00 ...... 1,204.00 2/16 2/19 Czech Republic ...... 696.00 ...... 696.00 2/19 2/21 Poland ...... 456.00 ...... 456.00 Commercial airfare ...... 4,103.91 ...... 4,103.91 James W. Dyer ...... 2/13 2/16 Bosnia ...... 903.00 ...... 903.00 2/16 2/18 Czech Republic ...... 464.00 ...... 464.00 Commercial airfare ...... 5,533.81 ...... 5,533.81 Scott Lilly ...... 2/16 2/19 Thailand ...... 720.00 ...... 720.00 2/19 2/22 Indonesia ...... 802.75 ...... 802.75 2/22 2/25 Japan ...... 849.00 ...... 849.00 Commercial airfare ...... 4,965.00 ...... 4,965.00 Mark W. Murray ...... 2/16 2/19 Thailand ...... 720.00 ...... 720.00 2/19 2/22 Indonesia ...... 802.75 ...... 802.75 2/22 2/25 Japan ...... 849.00 ...... 849.00 Commercial airfare ...... 4,965.00 ...... 4,965.00 Hon. Charles Taylor ...... 2/14 2/19 Russia ...... 1,350.00 ...... 1,350.00 Commercial airfare ...... 5,838.00 ...... 5,838.00 Committee total ...... 17,125.50 ...... 51,316.10 ...... 68,441.60

Committee on Appropriations, Surveys and Inves- tigations Staff: Bertram F. Dunn ...... 2/15 2/19 Turkey ...... 723.00 ...... 5,110.22 ...... 89.90 ...... 5,923.12 2/19 2/21 Germany ...... 390.25 ...... 390.25 Carroll L. Hauver ...... 2/15 2/19 Turkey ...... 723.00 ...... 5,110.22 ...... 82.85 ...... 5,916.07 2/19 2/21 Germany ...... 390.25 ...... 390.25 William P. Haynes, Jr ...... 3/29 4/1 Panama ...... 470.25 ...... 1,898.00 ...... 51.00 ...... 2,419.25 Patricia M. Murphy ...... 3/29 4/1 Panama ...... 470.25 ...... 2,173.00 ...... 61.00 ...... 2,704.25 Michael Welsh ...... 3/29 4/1 Panama ...... 470.25 ...... 2,173.00 ...... 100.75 ...... 2,744.00 Committee total ...... 3,637.25 ...... 16,464.44 ...... 385.50 ...... 20,487.19 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. 3 Military air transportation. BOB LIVINGSTON, Chairman.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON BANKING AND FINANCIAL SERVICES, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. James Leach ...... 1/17 1/19 Hong Kong ...... 786.00 ...... (3) ...... 4,121.43 ...... 4,907.43 H3484 CONGRESSIONAL RECORD — HOUSE May 19, 1998 REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON BANKING AND FINANCIAL SERVICES, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998—Continued

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

1/19 1/21 China ...... 514.00 ...... (3) ...... 514.00 1/21 1/22 Korea ...... 228.00 ...... (3) ...... 228.00 1/22 1/25 Japan ...... 843.00 ...... (3) ...... 843.00 Hon. Bruce Vento ...... 1/17 1/19 Hong Kong ...... 786.00 ...... (3) ...... 786.00 1/19 1/21 China ...... 514.00 ...... (3) ...... 514.00 1/21 1/22 Korea ...... 228.00 ...... (3) ...... 228.00 1/22 1/25 Japan ...... 843.00 ...... (3) ...... 843.00 Hon. Ken Bentsen ...... 1/17 1/19 Hong Kong ...... 786.00 ...... (3) ...... 786.00 1/19 1/21 China ...... 514.00 ...... (3) ...... 514.00 1/21 1/22 Korea ...... 228.00 ...... (3) ...... 228.00 1/22 1/23 Japan ...... 281.00 ...... 2,249.00 ...... 2,530.00 Hon. Maurice Hinchey ...... 1/17 1/19 Hong Kong ...... 786.00 ...... (3) ...... 786.00 1/19 1/21 China ...... 514.00 ...... (3) ...... 514.00 1/21 1/22 Korea ...... 228.00 ...... (3) ...... 228.00 1/22 1/25 Japan ...... 843.00 ...... (3) ...... 843.00 Hon. Jesse Jackson, Jr...... 1/17 1/19 Hong Kong ...... 786.00 ...... (3) ...... 786.00 1/19 1/21 China ...... 514.00 ...... (3) ...... 514.00 1/21 1/22 Korea ...... 228.00 ...... (3) ...... 228.00 1/22 1/25 Japan ...... 843.00 ...... (3) ...... 843.00 James McCormick ...... 1/17 1/19 Hong Kong ...... 786.00 ...... (3) ...... 786.00 1/19 1/21 China ...... 514.00 ...... (3) ...... 514.00 1/21 1/22 Korea ...... 228.00 ...... (3) ...... 228.00 1/22 1/25 Japan ...... 843.00 ...... (3) ...... 843.00 David Runkel ...... 1/17 1/19 Hong Kong ...... 786.00 ...... (3) ...... 786.00 1/19 1/21 China ...... 514.00 ...... (3) ...... 514.00 1/21 1/22 Korea ...... 228.00 ...... (3) ...... 228.00 1/22 1/25 Japan ...... 843.00 ...... (3) ...... 843.00 Committee total ...... 16,035.00 ...... 2,249.00 ...... 4,121.43 ...... 22,405.43 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. 3 Military air transportation. JIM LEACH, Chairman, Apr. 30, 1998. REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON COMMERCE, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2 Hon. John Dingell ...... 1/15 1/18 Belgium ...... 852.00 ...... 852.00 1/18 1/20 France ...... 598.00 ...... 598.00 1/20 1/22 Poland ...... 556.00 ...... 556.00 Hon. Tom Sawyer ...... 1/15 1/18 Belgium ...... 852.00 ...... 1,732,72 ...... 2,584.72 Committee total ...... 2,858.00 ...... 1,732.72 ...... 4,590.72 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. TOM BLILEY, Chairman, Apr. 29, 1998. REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON NATIONAL SECURITY, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2 Visit to Bosnia, Croatia and Germany, December 30, 1997–January 1, 1998: Hon. John M. Spratt, Jr...... 12/30 12/31 Bosnia ...... 175.00 ...... 175.00 12/31 12/31 Croatia ...... 12/31 1/1 Germany ...... 200.00 ...... 200.00 Commercial airfare ...... 4,968.80 ...... 4,968.80 Visit to Malaysia, Indonesia and Australia, January 7–19, 1998: Hon. Floyd D. Spence ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Hon. Herbert H. Bateman ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Hon. Owen B. Pickett ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Hon. Tillie K. Fowler ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Hon. John M. McHugh ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/13 Australia ...... 472.00 ...... 472.00 Commercial airfare ...... 2,755.08 ...... 2,755.08 Hon. Paul McHale ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Hon. Lindsey Graham ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Hon. Van Hilleary ...... 1/7 1/9 Malaysia ...... 1/9 1/11 Indonesia ...... 1/11 1/19 Australia ...... Peter M. Steffes ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Steven A. Thompson ...... 1/7 1/9 Malaysia ...... 324.00 ...... 324.00 1/9 1/11 Indonesia ...... 494.00 ...... 494.00 1/11 1/19 Australia ...... 1,891.00 ...... 1,891.00 Delegation expenses ...... 1/7 1/9 Malaysia ...... 354.12 ...... 581.13 ...... 935.25 1/11 1/19 Australia ...... 3,522.00 ...... 2,730.00 ...... 6,252.00 Visit to Italy, Bosnia, Macedonia, Azerbaijan and Belgium, January 4–12, 1998: Hon. Ike Skelton ...... 1/4 1/6 Italy ...... 796.00 ...... 796.00 May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3485 REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON NATIONAL SECURITY, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998— Continued

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

1/6 1/6 Bosnia ...... 1/6 1/8 Macedonia ...... 372.00 ...... 372.00 1/8 1/9 Azerbaijan ...... 346.00 ...... 346.00 1/9 1/12 Belgium ...... 540.00 ...... 540.00 Hon. Gene Taylor ...... 1/4 1/6 Italy ...... 796.00 ...... 796.00 1/6 1/6 Bosnia ...... 1/6 1/8 Macedonia ...... 372.00 ...... 372.00 1/8 1/9 Azerbaijan ...... 346.00 ...... 346.00 1/9 1/12 Belgium ...... 540.00 ...... 540.00 Hon. Silvestre Reyes ...... 1/4 1/6 Italy ...... 796.00 ...... 796.00 1/6 1/6 Bosnia ...... 1/6 1/8 Macedonia ...... 372.00 ...... 372.00 1/8 1/9 Azerbaijan ...... 346.00 ...... 346.00 1/9 1/12 Belgium ...... 540.00 ...... 540.00 Michael R. Higgins ...... 1/4 1/6 Italy ...... 796.00 ...... 796.00 1/6 1/6 Bosnia ...... 1/6 1/8 Macedonia ...... 372.00 ...... 372.00 1/8 1/9 Azerbaijan ...... 346.00 ...... 346.00 1/9 1/12 Belgium ...... 540.00 ...... 540.00 Delegation expenses ...... 1/4 1/6 Italy ...... 359.41 ...... 359.41 Visit to Peru and Colombia, January 8–17, 1998: Andrea K. Aquino ...... 1/08 1/13 Peru ...... 1,194.00 ...... 1,194.00 1/13 1/17 Colombia ...... 772.00 ...... 772.00 Commercial airfare ...... 2,340.00 ...... 2,340.00 George O. Withers ...... 1/08 1/13 Peru ...... 1,194.00 ...... 1,194.00 1/13 1/17 Colombia ...... 772.00 ...... 772.00 Commercial airfare ...... 2,340.00 ...... 2,340.00 Visit to Germany, Hungary, Bosnia and Belgium, January 20–25, 1998: John D. Chapla ...... 1/20 1/21 Germany ...... 206.00 ...... 206.00 1/21 1/23 Hungary ...... 494.00 ...... 494.00 1/22 1/22 Bosnia ...... 1/23 1/23 Bosnia ...... 1/23 1/25 Belgium ...... 552.00 ...... 552.00 Commercial airfare ...... 4,154.20 ...... 4,154.20 Donna L. Hoffmeier ...... 1/20 1/21 Germany ...... 206.00 ...... 206.00 1/21 1/23 Hungary ...... 494.00 ...... 494.00 1/22 1/22 Bosnia ...... 1/23 1/23 Bosnia ...... 1/23 1/25 Belgium ...... 552.00 ...... 552.00 Commercial airfare ...... 4,154.20 ...... 4,154.20 David J. Trachtenberg ...... 1/20 1/21 Germany ...... 206.00 ...... 206.00 1/21 1/22 Hungary ...... 247.00 ...... 247.00 1/22 1/23 Bosnia ...... 351.00 ...... 351.00 1/23 1/25 Belgium ...... 552.00 ...... 552.00 Commercial airfare ...... 4,154.20 ...... 4,154.20 Thomas J. Donnelly ...... 1/20 1/21 Germany ...... 206.00 ...... 206.00 1/21 1/22 Hungary ...... 247.00 ...... 247.00 1/22 1/23 Bosnia ...... 351.00 ...... 351.00 1/23 1/25 Belgium ...... 552.00 ...... 552.00 Commercial airfare ...... 4,154.20 ...... 4,154.20 Lara L. Roholt ...... 1/20 1/21 Germany ...... 206.00 ...... 206.00 1/21 1/22 Hungary ...... 494.00 ...... 494.00 1/22 1/23 Bosnia ...... 1/23 1/25 Belgium ...... 552.00 ...... 552.00 Commercial airfare ...... 4,154.20 ...... 4,154.20 Joseph F. Boessen ...... 1/20 1/21 Germany ...... 206.00 ...... 206.00 1/21 1/22 Hungary ...... 247.00 ...... 247.00 1/23 1/24 Germany ...... 281.00 ...... 281.00 Commercial airfare ...... 2,978.20 ...... 2,978.20 Thomas P. Glakas ...... 1/20 1/21 Germany ...... 206.00 ...... 206.00 1/21 1/22 Hungary ...... 247.00 ...... 247.00 1/22 1/23 Bosnia ...... 351.00 ...... 351.00 1/23 1/25 Belgium ...... 552.00 ...... 552.00 Commercial airfare ...... 4,154.20 ...... 4,154.20 Visit to Sweden, January 30–February 2, 1998: Hon. Curt Weldon ...... 1/30 2/2 Sweden ...... 800.00 ...... 800.0 Commercial airfare ...... 3,936.58 ...... 3,936.58 Visit to Germany and Bosnia, February 6–8, 1998: Hon. Norman Sisisky ...... 2/6 2/8 Germany ...... 472.00 ...... 472.00 2/6 2/6 Bosnia ...... Visit to Panama, Peru and Colombia, February 12– 20, 1998: Hon. Gene Taylor ...... 2/12 2/14 Panama ...... 366.00 ...... 366.00 2/14 2/17 Peru ...... 602.00 ...... 602.00 2/17 2/20 Colombia ...... 660.00 ...... 660.00 Commercial airfare ...... 1,929.00 ...... 1,929.00 Visit to Russia, February 16–19, 1998: Hon. Curt Weldon ...... 2/16 2/19 Russia ...... 1,000.00 ...... 1,000.00 Commercial airfare ...... 5,474.00 ...... 5,474.00 Committee total ...... 47,943.00 ...... 55,522.98 ...... 3,670.54 ...... 107,136.52 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. FLOYD SPENCE, Chairman, Apr. 30, 1998.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. Jim Oberstar ...... 2/16 1/16 Canada ...... Commercial airfare ...... 902.19 ...... 902.19 Art Chan ...... 2/16 2/16 Canada ...... Commercial airfare ...... 866.00 ...... Committee total ...... 1,768.19 ...... 1,768.19 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. BUD SHUSTER, Chairman, May 1, 1998. H3486 CONGRESSIONAL RECORD — HOUSE May 19, 1998 REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, COMMITTEE ON VETERANS’ AFFAIRS, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

FOR HOUSE COMMITTEES Please Note: If there were no expeditures during the calendar quarter noted above, please check the box at right to so indicate and return. ◊

1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. BOB STUMP, Chairman, Apr. 27, 1998.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, PERMANENT SELECT COMMITTEE ON INTELLIGENCE, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN JAN. 1 AND MAR. 31, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. Porter Goss ...... 1/3 1/9 Middle East ...... 1,037.00 ...... (3) ...... 1,037.00 Thomas Newcomb ...... 1/3 1/9 Middle East ...... 1,563.00 ...... (3) ...... 1,563.00 Michael Sheehy ...... 1/4 1/2 Europe & Asia ...... 2,054.00 ...... (3) ...... 2,054.00 Hon. Sanford Bishop ...... 1/19 1/26 Asia ...... 1,636.00 ...... 105.00 ...... 1,741.00 Commercial airfare ...... 7,041.93 ...... 7,041.93 Calvin Humphrey ...... 1/19 1/26 Asia ...... 1,636.00 ...... 105.00 ...... 1,741.00 Commercial airfare ...... 7,206.62 ...... 7,062.62 Hon. Porter Goss ...... 1/29 2/2 North & Central America ...... 936.00 ...... (3) ...... 936.00 Hon. Bill McCollum ...... 1/29 2/2 North & Central America ...... 1,043.00 ...... (3) ...... 1,043.00 John Millis ...... 1/29 2/2 North & Central America ...... 1,043.00 ...... (3) ...... 1,043.00 Patrick Murray ...... 1/29 2/2 North & Central America ...... 1,043.00 ...... (3) ...... 1,043.00 Christopher Barton ...... 1/29 2/2 North & Central America ...... 1,043.00 ...... (3) ...... 1,043.00 Wendy Selig ...... 1/29 2/2 North & Central America ...... 1,043.00 ...... (3) ...... 1,043.00 Patrick Murray ...... 2/12 2/14 South America ...... 542.00 ...... 542.00 Commercial airfare ...... 1,438.77 ...... 1,438.77 Hon. Porter Goss ...... 2/14 2/22 Europe ...... 2,428.00 ...... (3) ...... 2,428.00 Thomas Newcomb ...... 2/14 2/22 Europe ...... 2,463.00 ...... (3) ...... 2,463.00 John Millis ...... 2/19 2/21 Middle East ...... 480.00 ...... 480.00 Commercial airfare ...... 5,451.49 ...... 5,451.49 Mary Engebreth ...... 3/3 3/8 Oceania ...... 1,273.00 ...... 1,273.00 Commercial airfare ...... 7,714.97 ...... 7,714.97 Patrick Murray ...... 3/6 3/10 Europe ...... 1,021.00 ...... 1021.00 Commercial airfare ...... 1,269.00 ...... 1,269.00

Committee total ...... 19,684.00 ...... 30,122.78 ...... 50,016.78

1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. 3 Military air transportation. PORTER J. GOSS, Chairman, Apr. 29, 1998.

REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, DELEGATION TO BOSNIA, MACEDONIA, CROATIA, GERMANY, HUNGARY AND IRELAND, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN APR. 2 AND APR. 7, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Hon. Bob Riley ...... 4/2 4/3 Germany ...... 156.00 ...... 156.00 Hon. Ernest Istook ...... 4/2 4/3 Germany ...... 156.00 ...... 156.00 Hon. Bob Etheridge ...... 4/2 4/3 Germany ...... 156.00 ...... 156.00 Dan Gans ...... 4/2 4/3 Germany ...... 156.00 ...... 156.00 Carolyn Bartholomew ...... 4/2 4/3 Germany ...... 156.00 ...... 156.00 Hon. Bob Riley ...... 4/3 4/5 Hungary ...... 494.00 ...... 494.00 Hon. Ernest Istook ...... 4/3 4/5 Hungary ...... 494.00 ...... 494.00 Hon. Bob Etheridge ...... 4/3 4/5 Hungary ...... 494.00 ...... 494.00 Dan Gans ...... 4/3 4/5 Hungary ...... 494.00 ...... 494.00 Carolyn Bartholomew ...... 4/3 4/5 Hungary ...... 494.00 ...... 494.00 Hon. Bob Riley ...... 4/5 4/6 Croatia ...... 278.00 ...... 278.00 Hon. Ernest Istook ...... 4/5 4/6 Croatia ...... 478.00 ...... 278.00 Hon. Bob Etheridge ...... 4/5 4/6 Croatia ...... 278.00 ...... 278.00 Dan Gans ...... 4/5 4/6 Croatia ...... 278.00 ...... 278.00 Carolyn Bartholomew ...... 4/5 4/6 Croatia ...... 278.00 ...... 278.00 Hon. Bob Riley ...... 4/6 4/7 Ireland ...... 168.00 ...... 168.00 Hon. Ernest Istook ...... 4/6 4/7 Ireland ...... 168.00 ...... 168.00 Hon. Bob Etheridge ...... 4/6 4/7 Ireland ...... 168.00 ...... 168.00 Dan Gans ...... 4/6 4/7 Ireland ...... 168.00 ...... 168.00 Carolyn Bartholomew ...... 4/6 4/7 Ireland ...... 168.00 ...... 168.00 Dan Gans ...... 3 360.00 ...... 360.00 Hon. Bob Riley ...... 4/2 4/7 ...... 4 32.00 ...... 32.00 Hon. Ernest Istook ...... 4/2 4/7 ...... 4 32.00 ...... 32.00 Hon. Bob Etheridge ...... 4/2 4/7 ...... 4 32.00 ...... 32.00 Dan Gans ...... 4/2 4/7 ...... 4 32.00 ...... 32.00 Carolyn Bartholomew ...... 4/2 4/7 ...... 4 32.00 ...... 32.00

Committee total ...... 5,640.00 ...... 360.00 ...... 6,000.00

1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. 3 Film and film processing. 4 In-flight meals. BOB RILEY, May 7, 1998. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3487 REPORT OF EXPENDITURES FOR OFFICIAL FOREIGN TRAVEL, TRAVEL TO SPAIN, HOUSE OF REPRESENTATIVES, EXPENDED BETWEEN APR. 21 AND APR. 24, 1998

Date Per diem 1 Transportation Other purposes Total U.S. dollar U.S. dollar U.S. dollar U.S. dollar Name of Member or employee Country Foreign equivalent Foreign equivalent Foreign equivalent Foreign equivalent Arrival Departure currency or U.S. currency or U.S. currency or U.S. currency or U.S. currency 2 currency 2 currency 2 currency 2

Fred L. Turner ...... 4/21 4/24 Spain ...... 98,879 645.00 ...... 98,879 645.00 Committee total ...... 98,879 645.00 ...... 98,879 645.00 1 Per diem constitutes lodging and meals. 2 If foreign currency is used, enter U.S. dollar equivalent; if U.S. currency is used, enter amount expended. h FRED L. TURNER, May 5, 1998.

EXECUTIVE COMMUNICATIONS, 9190. A letter from the General Counsel, for printing and reference to the proper ETC. Department of Transportation, transmitting calendar, as follows: the Department’s final rule—Airworthiness Mr. YOUNG of Alaska: Committee on Re- Under clause 2 of rule XXIV, execu- Directives; Bell Helicopter Textron (Bell) sources. H.R. 2863. A bill to amend the Mi- tive communications were taken from Model 204B, 205A, and 205A–1 Helicopters gratory Bird Treaty Act to clarify restric- the Speaker’s table and referred as fol- [Docket No. 97–SW–32–AD; Amendment 39– tions under that Act on baiting, to facilitate lows: 10520; AD 97–18–11] (RIN: 2120–AA64) received acquisition of migratory bird habitat, and May 14, 1998, pursuant to 5 U.S.C. 9183. A letter from the Chairman, Postal for other purposes; with an amendment 801(a)(1)(A); to the Committee on Transpor- Rate Commission, transmitting a copy of the (Rept. 105–542). Referred to the Committee of Postal Rate Commission’s recommended de- tation and Infrastructure. the Whole House on the State of the Union. cision in the Omnibus Rate Case R97–1; to 9191. A letter from the General Counsel, Mr. CANADY: Committee on the Judici- the Committee on Government Reform and Department of Transportation, transmitting ary. House Joint Resolution 78. Resolution Oversight. the Department’s final rule—Airworthiness proposing an amendment to the Constitution 9184. A letter from the the Chief Adminis- Directives; Burkhart Grob Luft-und of the United States restoring religious free- trative Officer, the U.S. House of Represent- Raumfahrt Models G115C, G115C2, G115D, and dom; with an amendment (Rept. 105–543). Re- atives, transmitting the quarterly report of G115D2 Airplanes [Docket No. 98–CE–24–AD; ferred to the House Calendar. receipts and expenditures of appropriations Amendment 39–10517; AD 98–10–06] (RIN: 2120– Mr. SOLOMON: Committee on Rules. and other funds for the period January 1, 1998 AA64) received May 14, 1998, pursuant to 5 House Resolution 441. Resolution providing through March 31, 1998 as compiled by the U.S.C. 801(a)(1)(A); to the Committee on for further consideration of the bill (H.R. Chief Administrative Officer, pursuant to 2 Transportation and Infrastructure. 3616) to authorize appropriations for fiscal U.S.C. 104a; (H. Doc. No. 105—254); to the 9192. A letter from the General Counsel, year 1999 for military activities of the De- Committee on House Oversight and ordered Department of Transportation, transmitting partment of Defense, to prescribe military to be printed. the Department’s final rule—Prohibition personnel strengths for fiscal year 1999, and 9185. A letter from the General Counsel, Against Certain Flights Within the Territory for other purposes (Rept. 105–544). Referred Department of Transportation, transmitting and Airspace of Afghanistan [Docket No. to the House Calendar. the Department’s final rule—SPECIAL 27744; SFAR67] (RIN: 2120–AG56) received LOCAL REGULATIONS; River Race Au- May 14, 1998, pursuant to 5 U.S.C. f gusta, Augusta, GA [CGD07–98–013] (RIN: 801(a)(1)(A); to the Committee on Transpor- 2115–AE46) received May 14, 1998, pursuant to tation and Infrastructure. PUBLIC BILLS AND RESOLUTIONS 5 U.S.C. 801(a)(1)(A); to the Committee on 9193. A letter from the General Counsel, Under clause 5 of Rule X and clause 4 Transportation and Infrastructure. Department of Transportation, transmitting 9186. A letter from the General Counsel, of Rule XXII, public bills and resolu- the Department’s final rule—Airworthiness Department of Transportation, transmitting tions were introduced and severally re- Directives; McDonnell Douglas Model DC–9– the Department’s final rule—Airworthiness ferred, as follows: 10, -20, -30, -40, and -50 Series Airplanes, and Directives; Boeing Model 747 and 767 Series C–9 (Military) Airplanes [Docket No. 97–NM– By Mr. GILMAN (for himself and Mr. Airplanes [Docket No. 98–NM–111–AD; 40–AD; Amendment 39–10473; AD 98–08–24] PAYNE): Amendment 39–10522; AD 98–10–10] (RIN: 2120– (RIN: 2120–AA64) received May 14, 1998, pur- H.R. 3890. A bill to promote democracy and AA64) received May 14, 1998, pursuant to 5 good governance in Nigeria, and for other U.S.C. 801(a)(1)(A); to the Committee on suant to 5 U.S.C. 801(a)(1)(A); to the Commit- tee on Transportation and Infrastructure. purposes; to the Committee on International Transportation and Infrastructure. Relations, and in addition to the Committees 9187. A letter from the General Counsel, 9194. A letter from the General Counsel, Department of Transportation, transmitting on Banking and Financial Services, and the Department of Transportation, transmitting Judiciary, for a period to be subsequently de- the Department’s final rule—Airworthiness the Department’s final rule—Airworthiness termined by the Speaker, in each case for Directives; Bell Helicopter Textron (Bell)- Directives; Eurocopter France Model SA– consideration of such provisions as fall with- manufactured Model HH–1K, TH–1F, TH–1L, 365N1, AS–365N2, and SA–366G1 Helicopters in the jurisdiction of the committee con- UH–1A, UH–1B, UH–1E, UH–1F, UH–1H, UH– [Docket No. 97–SW–49–AD; Amendment 39– cerned. 1L, and UH–1P Helicopters; and Southwest 10515; AD 98–10–04] (RIN: 2120–AA64) received By Mr. GOODLATTE: Florida Aviation SW204, SW204HP, SW205, May 14, 1998, pursuant to 5 U.S.C. H.R. 3891. A bill to amend the Trademark and SW205A–1 Helicopters [Docket No. 97– 801(a)(1)(A); to the Committee on Transpor- Act of 1946 to prohibit the unauthorized de- SW–35; Amendment 39–10521; AD 97–20–09] tation and Infrastructure. struction, modification, or alteration of (RIN: 2120–AA64) received May 14, 1998, pur- 9195. A letter from the General Counsel, product identification codes, and for other suant to 5 U.S.C. 801(a)(1)(A); to the Commit- Department of Transportation, transmitting tee on Transportation and Infrastructure. the Department’s final rule—Standard In- purposes; to the Committee on the Judici- 9188. A letter from the General Counsel, strument Approach Procedures; Miscellane- ary. Department of Transportation, transmitting ous Amendments [Docket No. 29214; Amdt. By Mr. RIGGS: the Department’s final rule—Airworthiness No. 1866] (RIN: 2120–AA65) received May 14, H.R. 3892. A bill to amend the Elementary Directives; Alexander Schleicher 1998, pursuant to 5 U.S.C. 801(a)(1)(A); to the and Secondary Education Act of 1965 to es- Segelflugzeugbau Model ASK 21 Sailplanes Committee on Transportation and Infra- tablish a program to help children and youth [Docket No. 97–CE–103–AD; Amendment 39– structure. learn English, and for other purposes; to the 10518; AD 98–10–07] (RIN: 2120–AA64) received 9196. A letter from the General Counsel, Committee on Education and the Workforce. May 14, 1998, pursuant to 5 U.S.C. Department of Transportation, transmitting By Mr. ENSIGN (for himself and Mr. 801(a)(1)(A); to the Committee on Transpor- the Department’s final rule—Aviation Char- GIBBONS): tation and Infrastructure. ter Rules [Docket OST–97–2356] (RIN: 2105– H.R. 3893. A bill to amend the Crime Con- 9189. A letter from the General Counsel, AB91) received May 14, 1998, pursuant to 5 trol Act of 1990 with respect to the work re- Department of Transportation, transmitting U.S.C. 801(a)(1)(A); to the Committee on quirement for Federal prisoners and to the Department’s final rule—Airworthiness Transportation and Infrastructure. amend title 18, United States Code, with re- spect to the use of Federal prison labor by Directives; Construcciones Aeronauticas, f S.A. (CASA) Model C–212 Series Airplanes nonprofit entities, and for other purposes; to [Docket No. 97–NM–297–AD; Amendment 39– REPORTS OF COMMITTEES ON the Committee on the Judiciary. 10519; AD 98–10–08] (RIN: 2120–AA64) received PUBLIC BILLS AND RESOLUTIONS By Mr. HALL of Ohio (for himself, Mr. May 14, 1998, pursuant to 5 U.S.C. BOEHLERT, and Mr. HOBSON): 801(a)(1)(A); to the Committee on Transpor- Under clause 2 of rule XIII, reports of H.R. 3894. A bill to reinvigorate science and tation and Infrastructure. committees were delivered to the Clerk technology functions of the Department of H3488 CONGRESSIONAL RECORD — HOUSE May 19, 1998

the Air Force; to the Committee on National sequently determined by the Speaker, in H.R. 1378: Mr. SUNUNU. Security. each case for consideration of such provi- H.R. 1382: Mr. PAUL, Mr. WAXMAN, and Ms. By Mrs. KENNELLY of Connecticut: sions as fall within the jurisdiction of the STABENOW. H.R. 3895. A bill to provide grants to im- committee concerned. H.R. 1401: Mr. LEVIN. prove firearms safety, and to provide for the By Ms. STABENOW (for herself and H.R. 1425: Ms. DEGETTE. study of the effects of developing firearms Mrs. MORELLA): H.R. 1548: Mr. PAUL. technology on firearms safety; to the Com- H.R. 3901. A bill to amend the Omnibus H.R. 1560: Mr. SHIMKUS and Mr. BURR of mittee on the Judiciary. Crime Control and Safe Streets Act of 1968 to North Carolina. By Mr. OWENS (for himself, Mr. reauthorize funding for the grant program to H.R. 1766: Mr. BENTSEN and Mr. PACKARD. ENGEL, Mr. FORD, Ms. EDDIE BERNICE encourage arrest policies in dealing with do- H.R. 1842: Mr. INGLIS of South Carolina. JOHNSON of Texas, Mr. HILLIARD, Mr. mestic violence; to the Committee on the H.R. 1884: Mr. PAUL. HINOJOSA, Ms. KILPATRICK, Mr. Judiciary. H.R. 1951: Mr. GREENWOOD and Ms. LEE. KUCINICH, Mr. LEWIS of Georgia, Ms. By Ms. STABENOW (for herself and H.R. 2004: Mr. STRICKLAND. NORTON, Mr. MCGOVERN, Mr. SAND- Mrs. MORELLA): H.R. 2023: Mr. SCHUMER, Mr. ABERCROMBIE, ERS, and Mr. PAYNE): H.R. 3902. A bill to amend the Omnibus and Ms. EDDIE BERNICE JOHNSON of Texas. H.R. 3896. A bill to authorize the Secretary Crime Control and Safe Streets Act of 1968 to H.R. 2124: Mr. NEUMANN. of Education to make grants to institutions reauthorize funding for court-appointed spe- H.R. 2290: Mr. SANDLIN. of higher education for postsecondary infor- cial advocates for victims of child abuse, H.R. 2352: Mr. BRYANT. mation technology education and employ- training programs on child abuse for judicial H.R. 2478: Mr. FRANK of Massachusetts. ment assistance projects; to the Committee personnel and attorneys, and closed-circuit H.R. 2504: Mr. ENGLISH of Pennsylvania and on Education and the Workforce. television and video taping of child victim Mrs. MEEK of Florida. By Mr. RUSH (for himself, Mr. testimony; to the Committee on Education H.R. 2519: Mr. LAMPSON. SERRANO, Mr. CUMMINGS, Ms. KIL- and the Workforce, and in addition to the H.R. 2538: Mr. DOOLITTLE, Mr. DUNCAN, Mr. PATRICK, Mr. HILLIARD, Mr. JACKSON, Committee on the Judiciary, for a period to ENSIGN, Mr. GALLEGLY, Mr. HEFLEY, Mr. PE- Mr. CLAY, Ms. DELAURO, Ms. FURSE, be subsequently determined by the Speaker, TERSON of Pennsylvania, Mr. RADANOVICH, Mr. FROST, Mr. TOWNS, Mr. GUTIER- in each case for consideration of such provi- and Mr. GILCHREST. REZ, Mr. LIPINSKI, Mr. STOKES, and sions as fall within the jurisdiction of the H.R. 2613: Mr. PASTOR, Mr. RAHALL, Mr. Mr. DAVIS of Illinois): committee concerned. DOOLEY of California, Mr. OLVER, Mr. H.R. 3897. A bill to provide for programs to By Mr. YOUNG of Alaska: FALEOMAVAEGA, Mr. ORTIZ, Mr. COSTELLO, develop and implement integrated cockroach H.R. 3903. A bill to provide for an exchange Mr. WISE, Mr. MCHUGH, Mr. PAUL, Ms. DAN- management programs in urban commu- of lands located near Gustavus, Alaska, and NER, Mr. HALL of Texas, and Mr. POSHARD. nities that are effective in reducing health for other purposes; to the Committee on Re- H.R. 2721: Mr. LEWIS of Kentucky. risks to inner city residents, especially chil- sources, and in addition to the Committee on H.R. 2863: Mr. ISTOOK, Mr. HOEKSTRA, Mr. dren, suffering from asthma and asthma-re- Commerce, for a period to be subsequently RAMSTAD, Mr. MANZULLO, And Mr. MCINNIS. lated illnesses; to the Committee on Com- determined by the Speaker, in each case for H.R. 2879: Mr. MCKEON and Mr. INGLIS of merce. consideration of such provisions as fall with- South Carolina. By Mr. SESSIONS (for himself, Mr. in the jurisdiction of the committee con- H.R. 2888: Mr. WATTS of Oklahoma. GILMAN, Mr. DOOLITTLE, Mr. KING- cerned. H.R. 2923: Mr. MANTON. STON, Mr. FOSSELLA, Mr. REDMOND, By Mr. YOUNG of Alaska (for himself, H.R. 2946: Ms. PELOSI. Mr. PAPPAS, Mr. TRAFICANT, Mr. GIB- Mr. ABERCROMBIE, Mr. ADERHOLT, Mr. H.R. 3032: Mr. ANDREWS and Mr. SMITH of BONS, Mr. COOK, Mr. CALVERT, Mr. BARTLETT of Maryland, Mr. BRADY, Texas. DELAY, Mr. COOKSEY, Mrs. EMERSON, Mr. DOOLITTLE, Mr. ENGLISH of Penn- H.R. 3048: Mrs. THURMAN. Mr. NETHERCUTT, Mr. RYUN, Mr. sylvania, Mr. EVERETT, Mr. SAM H.R. 3050: Mr. SKELTON and Mr. BROWN of LATOURETTE, Mrs. CHENOWETH, Mr. JOHNSON, Mrs. MINK of Hawaii, Mr. California. SAXTON, Mr. GOSS, Mr. PETERSON of NETHERCUTT, Mr. PORTMAN, Mr. RO- H.R. 3131: Mr. LANTOS and Mr. UNDERWOOD. Pennsylvania, Mr. SMITH of Oregon, MERO-BARCELO, Mr. SMITH of New H.R. 3181: Mr. ROMERO-BARCELO. Ms. GRANGER, Mr. SOUDER, Mr. SMITH Jersey, Mr. SPENCE, Mr. UNDERWOOD, H.R. 3217: Mr. CRANE, Mrs. THURMAN, and of Texas, Mr. NUSSLE, Mr. FOX of Mr. WELDON of Pennsylvania, Mr. Mr. WATTS of Oklahoma. Pennsylvania, Mr. BOB SCHAFFER, HOSTETTLER, Mr. TALENT, Mr. GIL- H.R. 3234: Mr. NORWOOD. Mr. BONILLA, Mr. BRADY, Mr. SAM MAN, Mr. GIBBONS, Mr. RYUN, Mr. H.R. 3242: Mr. PAUL. JOHNSON, Mr. MICA, Mr. BARR of GOSS, Mr. GILLMOR, Mr. SKEEN, Mr. H.R. 3304: Mrs. EMERSON. Georgia, Mr. MANZULLO, Mr. WATTS LIVINGSTON, Mr. HERGER, Mr. ARMEY, H.R. 3341: Mr. FILNER and Mr. UNDERWOOD. of Oklahoma, Mr. SCARBOROUGH, Mr. Mr. RIGGS, and Mr. DAVIS of Illinois): H.R. 3342: Mr. ALLEN and Mr. MCGOVERN. PORTMAN, Mr. MCCOLLUM, and Mr. H. Con. Res. 278. Concurrent resolution H.R. 3398: Mr. FROST. BAKER): stating the sense of Congress that any na- H.R. 3400: Mr. BALDACCI. H.R. 3898. A bill to amend the Controlled tional missile defense program to provide H.R. 3464: Mr. FROST. Substances Act and the Controlled Sub- protection for the United States against the H.R. 3470: Ms. KAPTUR. stances Import and Export Act to conform threat of ballistic missile attack should pro- H.R. 3514: Mr. THOMPSON. penalties for violations involving certain vide for the protection of Alaska, Hawaii, H.R. 3526: Mr. STENHOLM, Mr. MILLER of amounts of methamphetamine to penalties and the territories and commonwealths of California, and Mr. LEWIS of Georgia. for violations involving similar amounts co- the United States on the same basis as the H.R. 3550: Mr. ETHERIDGE and Ms. KIL- caine base; to the Committee on the Judici- contiguous States; to the Committee on Na- PATRICK. ary, and in addition to the Committee on tional Security. H.R. 3566: Mr. SMITH of New Jersey. Commerce, for a period to be subsequently f H.R. 3567: Mr. MCINTYRE, Mr. SANDLIN, Mr. determined by the Speaker, in each case for DOOLEY of California, Mr. KLUG, Mr. EHLERS, consideration of such provisions as fall with- ADDITIONAL SPONSORS and Mr. KNOLLENBERG. in the jurisdiction of the committee con- Under clause 4 of rule XXII, sponsors H.R. 3570: Mr. ACKERMAN. cerned. H.R. 3605: Mr. DAVIS of Florida, Mr. KLECZ- were added to public bills and resolu- By Mr. LAZIO of New York (for him- KA, Mr. BLUMENAUER, Mr. LEVIN, Mr. KAN- self, Mr. LEACH, Mr. BAKER, Mr. tions as follows: JORSKI, Mr. MEEHAN, Mr. MCHALE, and Ms. CAMPBELL, Mrs. KELLY, Mr. NEY, Mr. [Omitted from the Record of May 18, 1998] SLAUGHTER. FOX of Pennsylvania, Mr. REDMOND, H.R. 3809: Mr. WAMP and Mr. THOMAS. H.R. 3615: Mr. THOMPSON and Ms. MCCAR- THY of Missouri. Mr. RYUN, Mr. SHAYS, Mr. NUSSLE, [Submitted May 19, 1998] and Mr. METCALF): H.R. 3629: Mr. LARGENT. H.R. 3899. A bill to expand homeownership H.R. 7: Mr. SHAW. H.R. 3636: Ms. JACKSON-LEE and Mr. H.R. 135: Ms. LEE and Mr. KANJORSKI. in the United States; to the Committee on BONIOR. H.R. 676: Mr. BOEHLERT. Banking and Financial Services. H.R. 3644: Mr. CAMP. H.R. 678: Mr. GEKAS, Mr. QUINN, and Mr. By Mr. SHAYS (for himself and Mr. H.R. 3648: Mr. HYDE, Mr. CRANE, Mr. SNY- ALLEN. DER EREUTER BARRETT of Wisconsin): H.R. 754: Mr. BOSWELL and Ms. ROYBAL-AL- , and Mr. B . H.R. 3900. A bill to establish Federal pen- H.R. 3651: Mr. FORBES and Mr. FROST. LARD. alties for prohibited uses and disclosures of H.R. 815: Mr. TAUZIN. H.R. 3674: Mr. VISCLOSKY. individually identifiable health information, H.R. 902: Ms. PRYCE of Ohio. H.R. 3688: Mr. LARGENT, Mr. SKEEN, and to establish a right in an individual to in- H.R. 953: Mrs. THURMAN and Mr. BERMAN. Mr. MORAN of Kansas. spect and copy their own health information, H.R. 1054: Mr. EHLERS, Mr. SOLOMON, and H.R. 3735: Mr. ADERHOLT. and for other purposes; to the Committee on Mr. FOSSELLA. H.R. 3764: Mr. LOBIONDO, Mr. ROHR- Commerce, and in addition to the Commit- H.R. 1126: Mr. CRAMER, Mr. WALSH, Mr. ABACHER, Mr. CUNNINGHAM, Mr. NETHERCUTT, tees on Ways and Means, and Government DEUTSCH, Ms. PRYCE of Ohio, Mr. GILCHREST, Mr. PORTER, and Mr. HYDE. Reform and Oversight, for a period to be sub- Mr. JEFFERSON, and Mr. BATEMAN. H.R. 3802: Mr. BROWN of Ohio. May 19, 1998 CONGRESSIONAL RECORD — HOUSE H3489

H.R. 3833: Ms. DELAURO. H. Con. Res. 203: Mr. MCDERMOTT, Mr. PAXON, Mr. HOBSON, Mr. GORDON, Mr. HUTCH- H.R. 3849: Mr. EHLERS, Mr. SOLOMON, and OLVER, Mr. FRANKS of New Jersey, Mr. COOK, INSON, Mr. LEWIS of Kentucky, Mr. GRAHAM, Mr. FOSSELLA. Mr. BILBRAY, Mr. BERMAN, Mr. BEREUTER, Mr. DOYLE, Mr. HINCHEY, and Mr. MCINTYRE. H.R. 3877: Mr. BISHOP. Mr. PASTOR, and Mrs. CLAYTON. H. Con. Res. 233: Mr. WATTS of Oklahoma. H.R. 3879: Mr. JOHN, Mr. HALL of Texas, Mr. H. Con. Res. 258: Mr. PITTS, Mr. SANDERS, CRAMER, Mr. SESSIONS, Mr. REDMOND, Mr. H. Con. Res. 208: Mr. LAMPSON, Ms. Mr. BROWN of Ohio, Mrs. MORELLA, Mr. MAN- DICKEY, Mr. NETHERCUTT, Mr. MCCOLLUM, SLAUGHTER, Mr. COSTELLO, Mr. CLYBURN, Mr. TON, Ms. FURSE, and Mr. BLUMENAUER. Mr. WATTS of Oklahoma, Mr. GOODE, Mr. DOOLEY of California, Mrs. FOWLER, Mr. PAPPAS, Mr. MCKEON, and Mr. BONILLA. MCINTOSH, Mr. BATEMAN, Mr. SISISKY, Mr. H. Con. Res. 267: Mr. ROGAN. H. Con. Res. 126: Ms. NORTON and Mr. ROTH- EVANS, Mr. EDWARDS, Mr. WEYGAND, Mr. H. Res. 363: Mr. SANDLIN. MAN. BRADY, Mr. BALDACCI, Mr. GREENWOOD, Mr. H. Res. 404: Mrs. MINK of Hawaii. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 105 CONGRESS, SECOND SESSION

Vol. 144 WASHINGTON, TUESDAY, MAY 19, 1998 No. 64 Senate The Senate met at 9:30 a.m. and was APPRECIATION OF THE OPENING think, ‘‘That was their choice. They called to order by the President pro PRAYER were adults.’’ tempore (Mr. THURMOND). Mr. HUTCHINSON. Mr. President, I But chances are, they were not adults The PRESIDENT pro tempore. To- join my colleagues in thanking our vis- when they made the decision to pick up day’s prayer will be offered by our iting Chaplain for the opening prayer that first cigarette. guest Chaplain, Dr. Jere Allen, Execu- today. Ninety percent of adult smokers started smoking at or before the age of tive Director, District of Columbia f Baptist Convention. 18—before they were even old enough SCHEDULE to buy cigarettes legally. We are very pleased to have you with Mr. HUTCHINSON. Mr. President, for The average youth smoker starts us. the information of all Senators, today smoking at 13, and is addicted by the there will be a period of morning busi- time he or she is 14. One out of every PRAYER ness until 10 a.m. Following morning three of those children will eventually die from smoking. The guest Chaplain, Dr. Jere Allen, business, the Senate will resume con- sideration of S. 1415, the tobacco legis- It may take another 20 or 30—or even offered the following prayer: lation. It is hoped that Members will 50—years until that decision catches up Let us pray. come to the floor to debate this impor- with them. But the decision is made Dear Heavenly Father, we acknowl- tant legislation and other amendments when they are children. edge that Thou art the creator and sus- under short time agreements. Rollcall That is what this debate is really tainer of this, Thy universe, and we are votes may occur prior to the 12:30 pol- about. Are we willing, as a nation, to called to be caretakers of all Thou hast icy luncheons, and Members should ex- protect our children from an epidemic made for an appointed time. Guide the pect those throughout today’s session that may eventually kill them? inner control centers of these Thy serv- in order to make good progress on the During the first half of this century, ants in the Senate that they might be tobacco bill. another epidemic threatened America’s responsible stewards of the power of de- I thank my colleagues for their at- children: polio. cision granted to them. Bring to their tention. Summer was a time of fear for Amer- consciousness that evil rewards with The PRESIDENT pro tempore. The ican parents and their children. Par- temporary power and impermanent able minority leader is recognized. ents kept their children out of swim- gain, but righteousness is eternally on (Mr. HUTCHINSON assumed the ming pools, movie theaters—anywhere the scaffolds and will ultimately sway Chair.) the virus might be spread. Still, thousands of children died the future. Move their consciousness f every year from polio, and tens of upward toward the crystal clear purity TOBACCO AND PUBLIC HEALTH thousands were crippled. of Thyself. Grant those who serve here Mr. DASCHLE. Mr. President, the de- The worst polio epidemic in U.S. his- the ability to hear Thy voice in the bate on tobacco legislation that we will tory occurred in 1952, when nearly midst of a cacophony of conflicting begin again at 10 o’clock this morning 60,000 new cases were reported. opinions that vie for attention. Endow is one of the most significant in which Back then, America marshaled all its them with wisdom, patience, courage any of us will ever be involved. resources and all its resolve and, in and peace as they make and live with Smoking is, in the words of former 1953, Jonas Salk discovered a vaccine. decisions that affect so many. In Your Surgeon General C. Everett Koop, ‘‘the As a result, polio has all but vanished holy Name we pray. Amen. chief, single avoidable cause of death from this nation. in our society, and the most important We may not be able to eliminate all f public health issue of our time.’’ tobacco-related disease, as we elimi- Every year, tobacco kills more than nated polio. But we can dramatically RECOGNITION OF THE ACTING 400,000 Americans—accounting for reduce the number of people who pick MAJORITY LEADER more than one out of every five deaths up that first cigarette as teenagers and in our country. Smoking kills more become addicted and eventually die The PRESIDENT pro tempore. The people than die from AIDS, alcohol, car from smoking. able acting majority leader is recog- accidents, murders, suicides and fires— The bill that will be pending in just nized. combined. a few moments provides the com- Mr. HUTCHINSON. I thank the So often, when we hear that someone prehensive approach that is needed to Chair. has died as a result of smoking, we do that.

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

S5031

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5032 CONGRESSIONAL RECORD — SENATE May 19, 1998 It is supported by a majority of this kill this bill. We have all heard their dollars—to treat smoking-related ill- Senate—Democrats and Republicans— arguments. nesses. and by the President. First, they are trying to convince the This bill would raise $516 billion over More importantly, it is supported by American people that the only reason 25 years, $516 billion over 25 years to the American people. Congress wants to pass a tobacco bill is save $1 trillion over 20 years—and 5 CIGARETTE COMPANIES TARGET KIDS to raise mountains of money. million children. Mr. President, that Smoking by teenagers is now at a 19- The truth is, 40 percent of the money sounds like a pretty good deal to me. year high. that would be raised by this bill Several years ago, internal docu- Every day, 3,000 kids become regular wouldn’t go to the federal government ments that the tobacco industry had smokers. That’s more than a million at all. for years kept secret—that the indus- kids a year. It would go to state taxpayers, to re- try had for years denied even existed— The increase in teen smoking is not imburse them for money they’ve al- began to trickle out. After a while, the an accident. It is the result of a delib- ready spent treating tobacco-related trickle became a flood. As a result of erate and aggressive marketing cam- illnesses. these documents, we now know ciga- paign. The rest of the money would be used rette manufacturers have known for Once-secret internal industry docu- for three purpose: To support medical decades that tobacco is addictive. ments make it clear that the tobacco research on treating smoking-related We now know that cigarettes kill industry targets kids—and has for illness and preventing smoking; to dra- people directly, and they are a contrib- more than 25 years. matically reduce teen smoking; and to uting cause of illnesses from heart dis- The tobacco industry spends $13 mil- help tobacco farmers make the transi- ease to sudden infant death syndrome. lion a day—$5 billion a year—on adver- tion to other crops. We now know that tobacco companies tising. Many of their ads are specifi- The industry’s second argument is manipulate the level of nicotine in cally targeted to kids. that this bill will create a black mar- cigarettes to hook smokers. We now A 1981 Philip Morris internal memo ket for cigarettes. know that the industry aggressively makes clear why. They point to the cigarette smug- targets children. We now know that According to that memo, ‘‘The over- gling problems Canada experienced in the price of cigarettes influences kids’ whelming majority of smokers first the early 1990s when it raised tobacco decision to smoke. We know that’s begin to smoke while still in their prices. true. But we also know it’s not enough. teens . . . The smoking patterns of The reality is, our bill includes tough The only way we are going to break teenagers are particularly important anti-smuggling, anti-black market pro- the deadly cycle of teen smoking and to Philip Morris.’’ visions that Canada lacked. addiction and death is with a com- A 1984 RJ Reynolds internal memo— It is worth mentioning, I think, that prehensive bill that includes price written just before RJR launched its a lobbyist who enlisted several law en- hikes, plus strong counter-advertising ‘‘Joe Camel’’ campaign—is even more forcement groups to warn that this bill efforts and effective retail licensing, blunt. could create a black market in ciga- and sets goals for reducing teen smok- ‘‘If younger adults turn away from rettes also has another employer: a ing and sanctions against tobacco com- smoking,’’ it says, ‘‘the (tobacco) in- leading tobacco company. panies for failure to attain them. That dustry must decline, just as a popu- The third argument the tobacco in- is what this bill contains. If we can im- lation that does not give birth will dustry makes is that our bill would prove it, we should. And then we should eventually dwindle . . . Younger adult drive cigarette companies into bank- pass this bill, and urge the House to smokers are our only source of replace- ruptcy. pass it as well. ment smokers.’’ Mr. President, the tobacco industry Teen smoking is an epidemic. If this ‘‘Replacement smokers.’’ That’s how makes $100 billion a year. Congress can’t protect children from a RJR sees children: as ‘‘replacements’’ Even if it made only $100 million a deadly health threat, what in the world for older smokers who quit—or die year, it still would not be in danger of can we do? from tobacco-related disease. bankruptcy because, under this bill, it In 1973, a senior RJ Reynolds em- If we can keep kids from smoking is smokers—not tobacco companies— ployee wrote a memo entitled ‘‘re- when they’re young, chances are they who pay. search planning memorandum on some will never smoke. Finally, the tobacco industry wants thoughts about new brands of ciga- Tobacco companies know that. people to believe that we’re on a slip- rettes for the youth market.’’ In that That’s one reason they’re spending $50 pery slope; that today, tobacco is the memo, he argued—and I quote—‘‘there million to try to kill this bill. whipping boy, but next it will be alco- is certainly nothing immoral or uneth- hol or some other product. ical about our company attempting to THE TOBACCO INDUSTRY IS SCARED This argument ignores one crucial attract (teen) smokers to our prod- Another reason is because they don’t distinction: tobacco is the only legal ucts.’’ want to be held accountable for the product sold in the United States that Mr. President, most Americans dis- damage they knowingly caused in the will kill you when used as intended. agree with that assertion. Most Ameri- past. Mr. President, the companies that cans believe that aggressively market- The tobacco industry is being sued by are making these claims are the same ing to children a product you know states across the country. States are companies whose CEOs raised their could eventually kill them is both im- demanding to be reimbursed for bil- hands and swore before Congress that moral and unethical. And, they believe lions of dollars they have already spent cigarettes are not addictive. it ought to be illegal. treating smoking-related illnesses. They were blowing smoke then, and As the industry’s own documents re- The cases aren’t going well for the they are blowing smoke now. veal, most adult smokers start smok- industry. In the last year alone, it has As I said, this is a historic oppor- ing as teenagers. Victor Crawford was settled out of court with four states, tunity. If we fail to grasp it, our Na- one of those kids. rather than risk going into court and tion will pay a terrible price. Unless we He started smoking when he was 13 losing even more. reverse current trends, 5 million chil- years old. He died 50 years later, after The $6.6 billion the tobacco industry dren who are under the age of 18 today the cancer that was caused by smoking agreed to earlier this month to pay will die from smoking-related illnesses. had spread from his throat to his pel- Minnesota is the third-largest court Have you ever known anyone who has vis, lungs and liver. As a adult Victor settlement in U.S. history. It is topped died from cancer or emphysema or Crawford served 16 years as a member only by the $11.3 billion it agreed to some other tobacco-related disease? of Maryland’s House of Delegates and pay Florida, and the $15.3 billion it will It’s torture—on them, and for the its state Senate. He was a colorful and pay Texas. people who love them. Unless we act effective politician. He was also a 21⁄2 THE TRUTH ABOUT THE TOBACCO BILL now to reverse current trends, Ameri- pack-a-day smoker. In 1986, Victor The tobacco industry is scared. So cans will spend $1 trillion over the next Crawford left politics and went to work they are spending $50 million to try to 20 years—$1 trillion, a thousand-billion in Maryland’s state capital into the

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5033 work of lobbying. One of his clients TROUBLING NEW DEVELOPMENTS on Indonesia, and the world commu- was the Tobacco Institute, the propa- IN SOUTH ASIA nity has spoken out forcefully against ganda arm of the tobacco industry. The Mr. HARKIN. Mr. President, I wanted what Indonesia has done in East Tobacco Institute paid him $200 an to take just a little bit of time this Timor. But the world community is hour to help kill whatever tobacco re- morning to again alert Senators and standing silently by while the same strictions came before the Maryland others about troubling new develop- kind of slaughter and repression is oc- General Assembly. ments in South Asia after India curring in the tiny state of Kashmir. Six years later, in 1992, he was diag- thumbed its nose at the world commu- If you go back to when India and nosed with throat cancer. His doctors nity and exploded five underground nu- Pakistan were partitioned off, this tiny told him he had three months to live. clear weapons. Conditions seem to be area up in northwest India on the bor- But, with the help of new and experi- spiraling out of control in the nation of der of Pakistan and India, the United mental treatments, he managed to India. We now see that a key Indian of- Nations recognized in the late 1940s hang on for three years. ficial, according to the news this morn- that this issue needed to be resolved, Victor Crawford used those last three ing, a key Indian official is warning and urged for it to be resolved through years of his life to prevent other young Pakistan and making very threatening, a plebiscite, to have a vote of the peo- people from making the same mistake provocative statements, about the area ple in this area: Did they want to stay he had made when he picked up that that we know as Jammu-Kashmir. In- with Pakistan, or did they want to go first cigarette at 13. dian Home Minister Advani—there is a with India? A first reluctantly, then passion- picture of him here clenching his fist, But India refuses outside mediation, ately, he spoke about the pain of his saying they were, basically, not going even from the UN. I had always hoped, illness, and his remorse over having to have a peaceful resolution at all of as many have hoped, that we would contributed, through his work, to the the situation in Kashmir. I am quoting have some kind of a peaceful resolution suffering of others. from the article: of Kashmir. But now India is shaking He described his former employers, While India’s previous government had a its fist at Pakistan and speaking pro- the tobacco industry, as ‘‘hard-nosed, policy of not making hostile statements vocatively of reclaiming certain areas brilliant and ruthless. I can also state about Pakistan, the BJP [that is the party of Kashmir that have already been rec- without question,’’ he said, ‘‘that the that is now in power in India] as recently as ognized as being at least an adjunct to, profit motive is supreme, and that two years ago advocated ‘‘reclaiming’’ Paki- adhering to Pakistan, an area called there is no avenue they will not ex- stan’s portion of Kashmir. Azad Kashmir. plore and no means they will not use to It is interesting that: Mr. President, I don’t think we can that end.’’ In the course [it says here] of broadening idly stand by and let India continue He told his story to state legisla- its platforms for this year’s parliamentary these kinds of provocative measures. tures, on ‘‘60 Minutes,’’ in Ann elections—and cobbling together a coalition The world community must speak with Landers’ column—wherever he thought government of 14 disparate parties—such ref- one voice in condemning the actions by erences to Kashmir were dropped. But India with strong sanctions. I will have it would get through. Advani [the Home Minister] was pointed in A year and a half before he died, he his reference today to the disputed state, al- a sense-of-the-Senate resolution, which returned to the Maryland Statehouse— though he couched it more in terms of Paki- I hope we can bring up sometime this to the place where he had worked as a stan’s stance toward Kashmir than India’s. week in conjunction with others, deal- legislator and lobbyist. Only this time But now Advani said, and I quote ing with the Indian explosion of nu- he as a witness, testifying in support of from the article: clear weapons and dealing with the a law regulating public smoking. He [Nuclear weapons tests] has brought about Pressler amendment that Senator wore a wig to hid the baldness caused a qualitatively new stage in Indo-Pakistan BROWNBACK and I will be offering some- by chemotherapy, and he was terribly relations and signifies—even while adhering time this week, I hope. gaunt. But everyone who heard him to the principle of no first strike—[that] I have a sense-of-the-Senate resolu- was deeply moved. India is resolved to deal firmly with Paki- tion calling upon the United States to Said on of his former colleagues after stan’s hostile activities in Kashmir. take the lead in getting other nations his testimony, ‘‘Yours was the voice of Wait a minute, Mr. President. He is together to act as an intermediary in truth.’’ talking about Pakistan’s hostile activi- the dispute on Kashmir. Better that we Mr. President, Victor Crawford’s ties in Kashmir? It is India that has act now, better that we try to seek voice—and the voice of America’s chil- around 300,000 troops in Kashmir. It is peaceful resolutions of Kashmir before dren—are calling to us today. India that is spending about a large this whole thing blows up, before the They are asking us to protect them portion of its military budget every BJP of India is able to take it to a from addiction. year in Kashmir. It is by Indian troops higher level, a more provocative level They are asking us to protect them that human rights groups have said that would involve the use of arms. from painful and premature death. that in the last several years, perhaps I hope we can get the support of Are we listening? in the last 10 years, upwards of 13,000 other Senators in asking the United It is time for Congress to pass a na- people have been killed in Kashmir— States to act as a mediator to this very tional bill to reduce teen smoking and not by Pakistani troops, but by Indian dangerous situation that now exists in to tell the cigarette manufacturers, troops. Kashmir and South Asia. ‘‘Our children are not ‘replacement What this Home Minister Advani is I thank the President. I yield the smokers,’ and you cannot prey on them doing is trying to cover what India has floor. anymore.’’ done in Kashmir by blaming it on Mr. GRAMS addressed the Chair. I yield the floor. Pakistan. The PRESIDING OFFICER. The Sen- Quite frankly, Kashmir is the East ator from Minnesota. f Timor of South Asia, to those of us Mr. GRAMS. Mr. President, I am on who have followed the problems of East the floor this morning to introduce a MORNING BUSINESS Timor, a tiny little island nation on bill called the Emergency Medical The PRESIDING OFFICER. Under the eastern tip of Indonesia. It was a Services Efficiency Act. My statement the previous order there will now be a Portuguese colony for several hundred is going to take about 10 or 15 minutes. period for the transaction of morning years. When the Portuguese left, the I ask unanimous consent that I be al- business not to extend beyond the hour Indonesians came in to claim East lowed to have up to 15 minutes, even of 10 a.m., with Senators permitted to Timor, but they have no rightful claim though I know it is going to run into speak therein for up to 5 minutes each. to it; it is a separate island nation. the time of 10 o’clock. The Senator from Iowa. Since that time, East Timorese have The PRESIDING OFFICER. Without Mr. HARKIN. Mr. President, I under- been put to death by the Indonesians, objection, it is so ordered. stand we are in morning business? slaughtered, people driven out of their Mr. GRAMS. Thank you very much. The PRESIDING OFFICER. The Sen- homes, driven out of their jobs. What (The remarks of Mr. GRAMS pertain- ator is correct. has happened in East Timor is a blight ing to the introduction of S. 2091 are

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5034 CONGRESSIONAL RECORD — SENATE May 19, 1998

located in today’s RECORD under Subtitle C—Tobacco Use Prevention and TITLE X—LONG-TERM ECONOMIC ‘‘Statements on Introduced Bills and Cessation Initiatives ASSISTANCE FOR FARMERS Joint Resolutions.’’) Sec. 261. Tobacco use prevention and ces- Sec. 1001. Short title. Mr. GRAMS. Thank you very much, sation initiatives. Sec. 1002. Definitions. Mr. President, for the time. I yield the TITLE III—TOBACCO PRODUCT WARN- Subtitle A—Tobacco Community floor. INGS AND SMOKE CONSTITUENT DIS- Revitalization CLOSURE Sec. 1011. Authorization of appropriations. f Subtitle A—Product Warnings, Labeling and Sec. 1012. Expenditures. Sec. 1013. Budgetary treatment. CONCLUSION OF MORNING Packaging BUSINESS Sec. 301. Cigarette label and advertising Subtitle B—Tobacco Market Transition warnings. Assistance The PRESIDING OFFICER. Morning Sec. 302. Authority to revise cigarette warn- Sec. 1021. Payments for lost tobacco quota. business is closed. ing label Statements. Sec. 1022. Industry payments for all depart- f Sec. 303. Smokeless tobacco labels and ad- ment costs associated with to- vertising warnings. bacco production. NATIONAL TOBACCO POLICY AND Sec. 304. Authority to revise smokeless to- Sec. 1023. Tobacco community economic de- YOUTH SMOKING REDUCTION ACT bacco product warning label velopment grants. statements. Sec. 1024. Flue-cured tobacco production The PRESIDING OFFICER. Under Sec. 305. Tar, nicotine, and other smoke con- permits. the previous order, the Senate will now stituent disclosure to the pub- Sec. 1025. Modifications in Federal tobacco resume consideration of S. 1415, which lic. programs. the clerk will report. Subtitle B—Testing and Reporting of Subtitle C—Farmer and Worker Transition The legislative clerk read as follows: Tobacco Product Smoke Constituents Assistance A bill (S. 1415) to reform and restructure Sec. 311. Regulation requirement. Sec. 1031. Tobacco worker transition pro- gram. the processes by which tobacco products are TITLE IV—NATIONAL TOBACCO TRUST Sec. 1032. Farmer opportunity grants. manufactured, marketed, and distributed, to FUND Subtitle D—Immunity prevent the use of tobacco products by mi- Sec. 401. Establishment of trust fund. nors, to redress the adverse health effects of Sec. 402. Payments by industry. Sec. 1041. General immunity for tobacco tobacco use, and for other purposes. Sec. 403. Adjustments. producers and tobacco ware- The Senate resumed consideration of Sec. 404. Payments to be passed through to house owners. the bill. consumers. TITLE XI—MISCELLANEOUS PROVISIONS Sec. 405. Tax treatment of payments. MODIFIED COMMITTEE SUBSTITUTE Subtitle A—International Provisions Sec. 406. Enforcement for nonpayment. (The text of the committee sub- Sec. 1101. Policy. Subtitle B—General Spending Provisions Sec. 1102. Tobacco control negotiations. stitute, as modified to incorporate the Sec. 1103. Report to Congress. text of amendment No. 2420, submitted Sec. 451. Allocation accounts. Sec. 452. Grants to States. Sec. 1104. Funding. on May 18, 1998, reads as follows:) Sec. 453. Indian health service. Sec. 1105. Prohibition of funds to facilitate Strike out all after the enacting clause and Sec. 454. Research at the National Science the exportation or promotion of insert the following: Foundation. tobacco. Sec. 1106. Health labeling of tobacco prod- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. Sec. 455. Medicare cancer patient dem- ucts for export. (a) SHORT TITLE.—This Act may be cited as onstration project; evaluation Sec. 1107. International tobacco control the ‘‘National Tobacco Policy and Youth and report to Congress. awareness. Smoking Reduction Act’’. TITLE V—STANDARDS TO REDUCE IN- Subtitle B—Anti-smuggling Provisions (b) TABLE OF CONTENTS.—The table of con- VOLUNTARY EXPOSURE TO TOBACCO tents for this Act is as follows: SMOKE Sec. 1131. Definitions. Sec. 1132. Tobacco product labeling require- Sec. 1. Short title; table of contents. Sec. 501. Definitions. ments. Sec. 2. Findings. Sec. 502. Smoke-free environment policy. Sec. 1133. Tobacco product licenses. Sec. 3. Purpose. Sec. 503. Citizen actions. Sec. 1134. Prohibitions. Sec. 4. Scope and effect. Sec. 504. Preemption. Sec. 1135. Labeling of products sold by Na- Sec. 5. Relationship to other, related Fed- Sec. 505. Regulations. tive Americans. eral, State, local, and Tribal Sec. 506. Effective date. Sec. 1136. Limitation on activities involving laws. Sec. 507. State choice. tobacco products in foreign Sec. 6. Definitions. TITLE VI—APPLICATION TO INDIAN trade zones. Sec. 7. Notification if youthful cigarette TRIBES Sec. 1137. Jurisdiction; penalties; com- smoking restrictions increase Sec. 601. Short title. promise of liability. youthful pipe and cigar smok- Sec. 602. Findings and purposes. Sec. 1138. Amendments to the Contraband ing. Sec. 603. Application of title to Indian lands Cigarette Trafficking Act. Sec. 8. FTC jurisdiction not affected. and to Native Americans. Sec. 1139. Funding. Sec. 9. Congressional review provisions. Sec. 1140. Rules and regulations. TITLE VII—TOBACCO CLAIMS TITLE I—REGULATION OF THE TOBACCO Subtitle C—Other Provisions INDUSTRY Sec. 701. Definitions. Sec. 702. Application; preemption. Sec. 1161. Improving child care and early Sec. 101. Amendment of Federal Food, Drug, Sec. 703. Rules governing tobacco claims. childhood development. and Cosmetic Act of 1938. Sec. 1162. Ban of sale of tobacco products Sec. 102. Conforming and other amendments TITLE VIII—TOBACCO INDUSTRY AC- through the use of vending ma- to general provisions. COUNTABILITY REQUIREMENTS AND chines. Sec. 103. Construction of current regula- EMPLOYEE PROTECTION FROM RE- Sec. 1163. Amendments to the Employee Re- tions. PRISALS tirement Income Security Act TITLE II—REDUCTIONS IN UNDERAGE Sec. 801. Accountability requirements and of 1974. TOBACCO USE oversight of the tobacco indus- TITLE XII—ASBESTOS-RELATED try. TOBACCO CLAIMS Subtitle A—Underage Use Sec. 802. Tobacco product manufacturer em- Sec. 1201. National tobacco trust funds Sec. 201. Findings. ployee protection. Sec. 202. Purpose. available under future legisla- TITLE IX—PUBLIC DISCLOSURE OF tion. Sec. 203. Goals for reducing underage to- TOBACCO INDUSTRY DOCUMENTS bacco use. TITLE XIII—VETERANS’ BENEFITS Sec. 901. Findings. Sec. 204. Look-back assessment. Sec. 1301. Recovery by Secretary of Veter- Sec. 902. Applicability. Sec. 205. Definitions. ans’ Affairs. Sec. 903. Document disclosure. Subtitle B—State Retail Licensing and Sec. 904. Document review. TITLE XIV—EXCHANGE OF BENEFITS Enforcement Incentives Sec. 905. Resolution of disputed privilege FOR AGREEMENT Sec. 231. State retail licensing and enforce- and trade secret claims. Sec. 1401. Conferral of benefits on partici- ment block grants. Sec. 906. Appeal of panel decision. pating tobacco product manu- Sec. 232. Block grants for compliance bo- Sec. 907. Miscellaneous. facturers in return for their as- nuses. Sec. 908. Penalties. sumption of specific obliga- Sec. 233. Conforming change. Sec. 909. Definitions. tions.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00004 Fmt 4624 Sfmt 0655 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5035 Sec. 1402. Participating tobacco product use, marketing, and sale of tobacco products. (24) Through advertisements during and manufacturer. Among these actions are cases brought by sponsorship of sporting events, tobacco has Sec. 1403. General provisions of protocol. the attorneys general of more than 40 States, become strongly associated with sports and Sec. 1404. Tobacco product labeling and ad- certain cities and counties, and the Com- has become portrayed as an integral part of vertising requirements of pro- monwealth of Puerto Rico, and other parties, sports and the healthy lifestyle associated tocol. including Indian tribes, and class actions with rigorous sporting activity. Sec. 1405. Point-of-sale requirements. brought by private claimants (such as in the (25) Children are exposed to substantial Sec. 1406. Application of title. Castano Civil Actions), seeking to recover and unavoidable tobacco advertising that Sec. 1407. Governmental claims. monies expended to treat tobacco-related leads to favorable beliefs about tobacco use, Sec. 1408. Addiction and dependency claims; diseases and for the protection of minors and plays a role in leading young people to over- Castano Civil Actions. consumers, as well as penalties and other re- estimate the prevalence of tobacco use, and Sec. 1409. Substantial non-attainment of re- lief for violations of antitrust, health, con- increases the number of young people who quired reductions. sumer protection, and other laws. begin to use tobacco. Sec. 1410. Public health emergency. (14) Civil actions have been filed through- (26) Tobacco advertising increases the size Sec. 1411. Tobacco claims brought against out the United States against tobacco prod- of the tobacco market by increasing con- participating tobacco product uct manufacturers and their distributors, sumption of tobacco products including in- manufacturers. trade associations, law firms, and consult- creasing tobacco use by young people. Sec. 1412. Payment of tobacco claim settle- ants on behalf of individuals or classes of in- (27) Children are more influenced by to- ments and judgments. dividuals claiming to be dependent upon and bacco advertising than adults, they smoke Sec. 1413. Attorneys’ fees and expenses. injured by tobacco products. the most advertised brands, and children as Sec. 1414. Effect of court decisions. (15) These civil actions are complex, time- young as 3 to 6 years old can recognize a Sec. 1415. Criminal laws not affected. consuming, expensive, and burdensome for character associated with smoking at the Sec. 1416. Congress reserves the right to both the litigants and Federal and State same rate as they recognize cartoons and enact laws in the future. courts. To date, these civil actions have not fast food characters. Sec. 1417. Definitions. resulted in sufficient redress for smokers or (28) Tobacco company documents indicate SEC. 2. FINDINGS. non-governmental third-party payers. To the that young people are an important and The Congress finds the following: extent that governmental entities have been often crucial segment of the tobacco market. (1) The use of tobacco products by the Na- or may in the future be compensated for to- (29) Comprehensive advertising restrictions tion’s children is a pediatric disease of epic bacco-related claims they have brought, it is will have a positive effect on the smoking and worsening proportions that results in not now possible to identify what portions of rates of young people. new generations of tobacco-dependent chil- such past or future recoveries can be attrib- (30) Restrictions on advertising are nec- dren and adults. uted to their various antitrust, health, con- essary to prevent unrestricted tobacco ad- (2) A consensus exists within the scientific sumer protection, or other causes of action. vertising from undermining legislation pro- and medical communities that tobacco prod- (16) It is in the public interest for Congress hibiting access to young people and provid- ucts are inherently dangerous and cause can- to adopt comprehensive public health legis- ing for education about tobacco use. cer, heart disease, and other serious adverse lation because of tobacco’s unique position (31) International experience shows that health effects. in the Nation’s history and economy; the advertising regulations that are stringent (3) Nicotine is an addictive drug. need to prevent the sale, distribution, mar- and comprehensive have a greater impact on (4) Virtually all new users of tobacco prod- keting and advertising of tobacco products overall tobacco use and young people’s use ucts are under the minimum legal age to to persons under the minimum legal age to than weaker or less comprehensive ones. purchase such products. purchase such products; and the need to edu- Text-only requirements, while not as strin- (5) Tobacco advertising and marketing cate the public, especially young people, re- gent as a ban, will help reduce underage use contribute significantly to the use of nico- garding the health effects of using tobacco of tobacco products while preserving the in- tine-containing tobacco products by adoles- products. formational function of advertising. cents. (17) The public interest requires a timely, (32) It is in the public interest for Congress (6) Because past efforts to restrict adver- fair, equitable, and consistent result that to adopt legislation to address the public tising and marketing of tobacco products will serve the public interest by (A) provid- health crisis created by actions of the to- have failed adequately to curb tobacco use ing that a portion of the costs of treatment bacco industry. by adolescents, comprehensive restrictions for diseases and adverse health effects asso- (33) If, as a direct or indirect result of this on the sale, promotion, and distribution of ciated with the use of tobacco products is Act, the consumption of tobacco products in such products are needed. borne by the manufacturers of these prod- the United States is reduced significantly, (7) Federal and State governments have ucts, and (B) restricting throughout the Na- then tobacco farmers, their families, and lacked the legal and regulatory authority tion the sale, distribution, marketing, and their communities may suffer economic and resources they need to address com- advertising of tobacco products only to per- hardship and displacement, notwithstanding prehensively the public health and societal sons of legal age to purchase such products. their lack of involvement in the manufactur- problems caused by the use of tobacco prod- (18) Public health authorities estimate ing and marketing of tobacco products. ucts. that the benefits to the Nation of enacting (34) The use of tobacco products in motion (8) Federal and State public health offi- Federal legislation to accomplish these goals pictures and other mass media glamorizes its cials, the public health community, and the would be significant in human and economic use for young people and encourages them to public at large recognize that the tobacco in- terms. use tobacco products. dustry should be subject to ongoing over- (19) Reducing the use of tobacco by minors SEC. 3. PURPOSE. sight. by 50 percent would prevent well over 60,000 The purposes of this Act are— (9) Under Article I, Section 8 of the Con- early deaths each year and save up to $43 bil- (1) to clarify the authority of the Food and stitution, the Congress is vested with the re- lion each year in reduced medical costs, im- Drug Administration to regulate tobacco sponsibility for regulating interstate com- proved productivity, and the avoidance of products under the Federal Food, Drug, and merce and commerce with Indian tribes. premature deaths. Cosmetic Act (21 U.S.C. 301 et seq.), by rec- (10) The sale, distribution, marketing, ad- (20) Advertising, marketing, and promotion ognizing it as the primary Federal regu- vertising, and use of tobacco products are ac- of tobacco products have been especially di- latory authority with respect to the manu- tivities in and substantially affecting inter- rected to attract young persons to use to- facture, marketing, and distribution of to- state commerce because they are sold, mar- bacco products and these efforts have re- bacco products; keted, advertised, and distributed in inter- sulted in increased use of such products by (2) to require the tobacco industry to fund state commerce on a nationwide basis, and youth. Past efforts to oversee these activi- both Federal and State oversight of the to- have a substantial effect on the Nation’s ties have not been successful in adequately bacco industry from on-going payments by economy. preventing such increased use. tobacco product manufacturers; (11) The sale, distribution, marketing, ad- (21) In 1995, the tobacco industry spent (3) to require tobacco product manufactur- vertising, and use of such products substan- close to $4,900,000,000 to attract new users, ers to provide ongoing funding to be used for tially affect interstate commerce through retain current users, increase current con- an aggressive Federal, State, and local en- the health care and other costs attributable sumption, and generate favorable long-term forcement program and for a nationwide li- to the use of tobacco products. attitudes toward smoking and tobacco use. censing system to prevent minors from ob- (12) The citizens of the several States are (22) Tobacco product advertising often taining tobacco products and to prevent the exposed to, and adversely affected by, envi- misleadingly portrays the use of tobacco as unlawful distribution of tobacco products, ronmental smoke in public buildings and socially acceptable and healthful to minors. while expressly permitting the States to other facilities which imposes a burden on (23) Tobacco product advertising is regu- adopt additional measures that further re- interstate commerce. larly seen by persons under the age of 18, and strict or eliminate the products’ use; (13) Civil actions against tobacco product persons under the age of 18 are regularly ex- (4) to ensure that the Food and Drug Ad- manufacturers and others are pending in posed to tobacco product promotional ef- ministration and the States may continue to Federal and State courts arising from the forts. address issues of particular concern to public

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5036 CONGRESSIONAL RECORD — SENATE May 19, 1998 health officials, especially the use of tobacco ments made by this Act shall not affect any by consumers in a cigarette. Unless other- by young people and dependence on tobacco; authority of the Secretary of the Treasury wise stated, the requirements for cigarettes (5) to impose financial surcharges on to- (including any authority assigned to the Bu- shall also apply to cigarette tobacco. bacco product manufacturers if tobacco use reau of Alcohol, Tobacco and Firearms) or of (4) COMMERCE.—The term ‘‘commerce’’ has by young people does not substantially de- State or local governments with regard to the meaning given that term by section 3(2) cline; taxation for tobacco or tobacco products. of the Federal Cigarette Labeling and Adver- (6) to authorize appropriate agencies of the (c) AGRICULTURAL ACTIVITIES.—The provi- tising Act (15 U.S.C. 1332(2)). Federal government to set national stand- sions of this Act which authorize the Sec- (5) DISTRIBUTOR.—The term ‘‘distributor’’ ards controlling the manufacture of tobacco retary to take certain actions with regard to as regards a tobacco product means any per- products and the identity, public disclosure, tobacco and tobacco products shall not be son who furthers the distribution of ciga- and amount of ingredients used in such prod- construed to affect any authority of the Sec- rette or smokeless tobacco, whether domes- ucts; retary of Agriculture under existing law re- tic or imported, at any point from the origi- (7) to provide new and flexible enforcement garding the growing, cultivation, or curing nal place of manufacture to the person who authority to ensure that the tobacco indus- of raw tobacco. sells or distributes the product to individuals try makes efforts to develop and introduce SEC. 5. RELATIONSHIP TO OTHER, RELATED FED- for personal consumption. Common carriers less harmful tobacco products; ERAL, STATE, LOCAL, AND TRIBAL are not considered distributors for purposes (8) to confirm the Food and Drug Adminis- LAWS. of this Act. tration’s authority to regulate the levels of (a) AGE RESTRICTIONS.—Nothing in this Act (6) INDIAN COUNTRY; INDIAN LANDS.—The tar, nicotine, and other harmful components or the Federal Food, Drug, and Cosmetic Act terms ‘‘Indian country’’ and ‘‘Indian lands’’ of tobacco products; (21 U.S.C. 301 et seq.), as amended by this have the meaning given the term ‘‘Indian (9) in order to ensure that adults are better Act, shall prevent a Federal agency (includ- country’’ by section 1151 of title 18, United informed, to require tobacco product manu- ing the Armed Forces), a State or its politi- States Code, and includes lands owned by an facturers to disclose research which has not cal subdivisions, or the government of an In- Indian tribe or a member thereof over which previously been made available, as well as dian tribe from adopting and enforcing addi- the United States exercises jurisdiction on research generated in the future, relating to tional measures that further restrict or pro- behalf of the tribe or tribal member. the health and dependency effects or safety hibit tobacco product sale to, use by, and ac- of tobacco products; (7) INDIAN TRIBE.—The term ‘‘Indian tribe’’ cessibility to persons under the legal age of has the meaning given such term in section (10) to impose on tobacco product manufac- purchase established by such agency, State, turers the obligation to provide funding for a 4(e) of the Indian Self Determination and subdivision, or government of an Indian Education Assistance Act (25 U.S.C. 450b(e)). variety of public health initiatives; tribe. (11) to establish a minimum Federal stand- (8) LITTLE CIGAR.—The term ‘‘little cigar’’ (b) ADDITIONAL MEASURES.—Except as oth- has the meaning given that term by section ard for stringent restrictions on smoking in erwise expressly provided in this Act, noth- public places, while also to permit State, 3(7) of the Federal Cigarette Labeling and ing in this Act, the Federal Food, Drug, and Advertising Act (15 U.S.C. 1332(7)). Tribal, and local governments to enact addi- Cosmetic Act (21 U.S.C. 301 et seq.), or rules tional and more stringent standards or elect (9) NICOTINE.—The term ‘‘nicotine’’ means promulgated under such Acts, shall limit the the chemical substance named 3-(1-Methyl-2- not to be covered by the Federal standard if authority of a Federal agency (including the that State’s standard is as protective, or pyrrolidinyl) pyridine or C[10]H[14]N[2], in- Armed Forces), a State or its political sub- more protective, of the public health; cluding any salt or complex of nicotine. divisions, or the government of an Indian (12) to authorize and fund from payments (10) PACKAGE.—The term ‘‘package’’ means tribe to enact, adopt, promulgate, and en- by tobacco product manufacturers a continu- a pack, box, carton, or container of any kind force any law, rule, regulation, or other ing national counter-advertising and tobacco or, if no other container, any wrapping (in- measure with respect to tobacco products, control campaign which seeks to educate cluding cellophane), in which cigarettes or including laws, rules, regulations, or other consumers and discourage children and ado- smokeless tobacco are offered for sale, sold, measures relating to or prohibiting the sale, lescents from beginning to use tobacco prod- or otherwise distributed to consumers. distribution, possession, exposure to, or use ucts, and which encourages current users of (11) POINT-OF-SALE.—The term ‘‘point-of- of tobacco products by persons of any age tobacco products to discontinue using such sale’’ means any location at which a con- products; that are in addition to the provisions of this sumer can purchase or otherwise obtain ciga- (13) to establish a mechanism to com- Act and the amendments made by this Act. rettes or smokeless tobacco for personal con- pensate the States in settlement of their No provision of this Act or amendment made sumption. various claims against tobacco product man- by this Act shall limit or otherwise affect (12) RETAILER.—The term ‘‘retailer’’ means ufacturers; any State, Tribal, or local taxation of to- any person who sells cigarettes or smokeless (14) to authorize and to fund from pay- bacco products. tobacco to individuals for personal consump- ments by tobacco product manufacturers a (c) NO LESS STRINGENT.—Nothing in this tion, or who operates a facility where self- nationwide program of smoking cessation Act or the amendments made by this Act is service displays of tobacco products are per- administered through State and Tribal gov- intended to supersede any State, local, or mitted. ernments and the private sector; Tribal law that is not less stringent than (13) ROLL-YOUR-OWN TOBACCO.—The term (15) to establish and fund from payments this Act, or other Acts as amended by this ‘‘roll-your-own tobacco’’ means any tobacco by tobacco product manufacturers a Na- Act. which, because of its appearance, type, pack- tional Tobacco Fund; (d) STATE LAW NOT AFFECTED.—Except as aging, or labeling, is suitable for use and (16) to affirm the rights of individuals to otherwise expressly provided in this Act, likely to be offered to, or purchased by, con- access to the courts, to civil trial by jury, nothing in this Act, the Federal Food, Drug, sumers as tobacco for making cigarettes. and to damages to compensate them for and Cosmetic Act (21 U.S.C. 301 et seq.), or (14) SECRETARY.—Except in title VII and harm caused by tobacco products; rules promulgated under such Acts, shall su- where the context otherwise requires, the (17) to continue to permit the sale of to- persede the authority of the States, pursuant term ‘‘Secretary’’ means the Secretary of bacco products to adults in conjunction with to State law, to expend funds provided by Health and Human Services. measures to ensure that they are not sold or this Act. (15) SMOKELESS TOBACCO.—The term accessible to underage purchasers; SEC. 6. DEFINITIONS. ‘‘smokeless tobacco’’ means any product (18) to impose appropriate regulatory con- In this Act: that consists of cut, ground, powdered, or trols on the tobacco industry; and (1) BRAND.—The term ‘‘brand’’ means a va- leaf tobacco and that is intended to be placed (19) to protect tobacco farmers and their riety of tobacco product distinguished by the in the oral or nasal cavity. communities from the economic impact of tobacco used, tar content, nicotine content, (16) STATE.—The term ‘‘State’’ means any this Act by providing full funding for and the flavoring used, size, filtration, or packaging, State of the United States and, for purposes continuation of the Federal tobacco program logo, registered trademark or brand name, of this Act, includes the District of Colum- and by providing funds for farmers and com- identifiable pattern of colors, or any com- bia, the Commonwealth of Puerto Rico, munities to develop new opportunities in to- bination of such attributes. Guam, the Virgin Islands, American Samoa, bacco-dependent communities. (2) CIGARETTE.—The term ‘‘cigarette’’ has Wake Island, Midway Islands, Kingman Reef, SEC. 4. SCOPE AND EFFECT. the meaning given that term by section 3(1) Johnston Atoll, the Northern Mariana Is- (a) INTENDED EFFECT.—This Act is not in- of the Federal Cigarette Labeling and Adver- lands, and any other trust territory or pos- tended to— tising Act (15 U.S.C. 1332(1)), but also in- session of the United States. (1) establish a precedent with regard to any cludes tobacco, in any form, that is func- (17) TOBACCO PRODUCT.—The term ‘‘tobacco other industry, situation, circumstance, or tional in the product, which, because of its product’’ means cigarettes, cigarette to- legal action; or appearance, the type of tobacco used in the bacco, smokeless tobacco, little cigars, roll- (2) except as provided in this Act, affect filler, or its packaging and labeling, is likely your-own tobacco, and fine cut products. any action pending in State, Tribal, or Fed- to be offered to, or purchased by, consumers (18) TOBACCO PRODUCT MANUFACTURER.—Ex- eral court, or any agreement, consent decree, as a cigarette or as roll-your-own tobacco. cept in titles VII, X, and XIV, the term ‘‘to- or contract of any kind. (3) CIGARETTE TOBACCO.—The term ‘‘ciga- bacco product manufacturer’’ means any per- (b) TAXATION.—Notwithstanding any other rette tobacco’’ means any product that con- son, including any repacker or relabeler, provision of law, this Act and the amend- sists of loose tobacco that is intended for use who—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5037 (A) manufactures, fabricates, assembles, provisions of part 897 of title 21, Code of Fed- ‘‘(1) if its labeling is false or misleading in processes, or labels a finished cigarette or eral Regulations, and to any other tobacco any particular; smokeless tobacco product; or products that the Secretary by regulation ‘‘(2) if in package form unless it bears a (B) imports a finished cigarette or smoke- deems to be subject to this chapter. label containing— less tobacco product for sale or distribution ‘‘(c) SCOPE.— ‘‘(A) the name and place of business of the in the United States. ‘‘(1) Nothing in this chapter, any policy tobacco product manufacturer, packer, or (19) UNITED STATES.—The term ‘‘United issued or regulation promulgated there- distributor; and States’’ means the 50 States of the United under, or the National Tobacco Policy and ‘‘(B) an accurate statement of the quantity States of America and the District of Colum- Youth Smoking Reduction Act, shall be con- of the contents in terms of weight, measure, bia, the Commonwealth of Puerto Rico, strued to affect the Secretary’s authority or numerical count, over, or the regulation of, products under Guam, the Virgin Islands, American Samoa, except that under subparagraph (B) of this this Act that are not tobacco products under Wake Island, Midway Islands, Kingman Reef, paragraph reasonable variations shall be per- chapter V of the Federal Food, Drug and Cos- Johnston Atoll, the Northern Mariana Is- mitted, and exemptions as to small packages metic Act or any other chapter of that Act. lands, and any other trust territory or pos- shall be established, by regulations pre- session of the United States. ‘‘(2) The provisions of this chapter shall not apply to tobacco leaf that is not in the scribed by the Secretary; SEC. 7. NOTIFICATION IF YOUTHFUL CIGARETTE possession of the manufacturer, or to the ‘‘(3) if any word, statement, or other infor- SMOKING RESTRICTIONS INCREASE mation required by or under authority of YOUTHFUL PIPE AND CIGAR SMOK- producers of tobacco leaf, including tobacco growers, tobacco warehouses, and tobacco this chapter to appear on the label or label- ING. ing is not prominently placed thereon with The Secretary shall notify the Congress if grower cooperatives, nor shall any employee of the Food and Drug Administration have such conspicuousness (as compared with the Secretary determines that underage use other words, statements or designs in the la- of pipe tobacco and cigars is increasing. any authority whatsoever to enter onto a farm owned by a producer of tobacco leaf beling) and in such terms as to render it SEC. 8. FTC JURISDICTION NOT AFFECTED. without the written consent of such pro- likely to be read and understood by the ordi- (a) IN GENERAL.—Except where expressly ducer. Notwithstanding any other provision nary individual under customary conditions provided in this Act, nothing in this Act of this subparagraph, if a producer of tobacco of purchase and use; shall be construed as limiting or diminishing leaf is also a tobacco product manufacturer ‘‘(4) if it has an established name, unless the authority of the Federal Trade Commis- or controlled by a tobacco product manufac- its label bears, to the exclusion of any other sion to enforce the laws under its jurisdic- turer, the producer shall be subject to this nonproprietary name, its established name tion with respect to the advertising, sale, or chapter in the producer’s capacity as a man- prominently printed in type as required by distribution of tobacco products. ufacturer. Nothing in this chapter shall be the Secretary by regulation; (b) ENFORCEMENT BY FTC.—Any advertis- construed to grant the Secretary authority ‘‘(5) if the Secretary has issued regulations ing that violates this Act or part 897 of title to promulgate regulations on any matter requiring that its labeling bear adequate di- 21, Code of Federal Regulations, is an unfair that involves the production of tobacco leaf rections for use, or adequate warnings or deceptive act or practice under section or a producer thereof, other than activities against use by children, that are necessary 5(a) of the Federal Trade Commission Act (15 by a manufacturer affecting production. For for the protection of users unless its labeling U.S.C. 45(a)) and shall be considered a viola- purposes of the preceding sentence, the term conforms in all respects to such regulations; tion of a rule promulgated under section 18 ‘controlled by’ means a member of the same ‘‘(6) if it was manufactured, prepared, prop- of that Act (15 U.S.C. 57a). controlled group of corporations as that agated, compounded, or processed in any SEC. 9. CONGRESSIONAL REVIEW PROVISIONS. term is used in section 52(a) of the Internal State in an establishment not duly reg- In accordance with section 801 of title 5, Revenue Code of 1986, or under common con- istered under section 905(b), if it was not in- United States Code, the Congress shall re- trol within the meaning of the regulations cluded in a list required by section 905(i), if view, and may disapprove, any rule under promulgated under section 52(b) of such a notice or other information respecting it this Act that is subject to section 801. This Code. was not provided as required by such section section does not apply to the rule set forth ‘‘SEC. 902. ADULTERATED TOBACCO PRODUCTS. or section 905(j), or if it does not bear such in part 897 of title 21, Code of Federal Regu- ‘‘A tobacco product shall be deemed to be symbols from the uniform system for identi- lations. adulterated if— fication of tobacco products prescribed under TITLE I—REGULATION OF THE TOBACCO ‘‘(1) it consists in whole or in part of any section 905(e) as the Secretary by regulation INDUSTRY filthy, putrid, or decomposed substance, or is requires; otherwise contaminated by any poisonous or ‘‘(7) if, in the case of any tobacco product SEC. 101. AMENDMENT OF FEDERAL FOOD, DRUG, distributed or offered for sale in any State— AND COSMETIC ACT OF 1938. deleterious substance that may render the product injurious to health; ‘‘(A) its advertising is false or misleading (a) DEFINITION OF TOBACCO PRODUCTS.—Sec- ‘‘(2) it has been prepared, packed, or held in any particular; or tion 201 of the Federal Food, Drug, and Cos- under insanitary conditions whereby it may ‘‘(B) it is sold, distributed, or used in viola- metic Act (21 U.S.C. 321) is amended by add- have been contaminated with filth, or where- tion of regulations prescribed under section ing at the end the following: by it may have been rendered injurious to 906(d); ‘‘(kk) The term ‘tobacco product’ means health; ‘‘(8) unless, in the case of any tobacco any product made or derived from tobacco ‘‘(3) its container is composed, in whole or product distributed or offered for sale in any that is intended for human consumption, in- in part, of any poisonous or deleterious sub- State, the manufacturer, packer, or distribu- cluding any component, part, or accessory of stance which may render the contents injuri- tor thereof includes in all advertisements a tobacco product (except for raw materials ous to health; and other descriptive printed matter issued other than tobacco used in manufacturing a ‘‘(4) it is, or purports to be or is rep- or caused to be issued by the manufacturer, component, part, or accessory of a tobacco resented as, a tobacco product which is sub- packer, or distributor with respect to that product).’’. ject to a performance standard established tobacco product— (b) FDA AUTHORITY OVER TOBACCO PROD- under section 907 unless such tobacco prod- ‘‘(A) a true statement of the tobacco prod- UCTS.—The Federal Food, Drug, and Cos- uct is in all respects in conformity with such uct’s established name as defined in para- metic Act (21 U.S.C. 301 et seq.) is amended— standard; graph (4) of this subsection, printed promi- (1) by redesignating chapter IX as chapter ‘‘(5) it is required by section 910(a) to have nently; and X; premarket approval, is not exempt under ‘‘(B) a brief statement of— (2) by redesignating sections 901 through section 906(f), and does not have an approved ‘‘(i) the uses of the tobacco product and 907 as sections 1001 through 1007; and application in effect; relevant warnings, precautions, side effects, (3) by inserting after section 803 the follow- ‘‘(6) the methods used in, or the facilities and contraindications; and ing: or controls used for, its manufacture, pack- ‘‘(ii) in the case of specific tobacco prod- ‘‘CHAPTER IX—TOBACCO PRODUCTS ing or storage are not in conformity with ap- ucts made subject to a finding by the Sec- ‘‘SEC. 901. FDA AUTHORITY OVER TOBACCO plicable requirements under section 906(e)(1) retary after notice and opportunity for com- PRODUCTS or an applicable condition prescribed by an ment that such action is necessary to pro- ‘‘(a) IN GENERAL.—Tobacco products shall order under section 906(e)(2); or tect the public health, a full description of be regulated by the Secretary under this ‘‘(7) it is a tobacco product for which an ex- the components of such tobacco product or chapter and shall not be subject to the provi- emption has been granted under section the formula showing quantitatively each in- sions of chapter V, unless— 906(f) for investigational use and the person gredient of such tobacco product to the ex- ‘‘(1) such products are intended for use in who was granted such exemption or any in- tent required in regulations which shall be the diagnosis, cure, mitigation, treatment, vestigator who uses such tobacco product issued by the Secretary after an opportunity or prevention of disease (within the meaning under such exemption fails to comply with a for a hearing; of section 201(g)(1)(B) or section 201(h)(2)); or requirement prescribed by or under such sec- ‘‘(9) if it is a tobacco product subject to a ‘‘(2) a health claim is made for such prod- tion. performance standard established under sec- ucts under section 201(g)(1)(C) or 201(h)(3). ‘‘SEC. 903. MISBRANDED TOBACCO PRODUCTS. tion 907, unless it bears such labeling as may ‘‘(b) APPLICABILITY.—This chapter shall ‘‘(a) IN GENERAL.—A tobacco product shall be prescribed in such performance standard; apply to all tobacco products subject to the be deemed to be misbranded— or

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5038 CONGRESSIONAL RECORD — SENATE May 19, 1998 ‘‘(10) if there was a failure or refusal— turer adds to its tobacco products a new to- provide the information required by sub- ‘‘(A) to comply with any requirement pre- bacco additive, increases or decreases the section (i) of this section and shall include scribed under section 904 or 908; quantity of an existing tobacco additive or provisions for registration of any such estab- ‘‘(B) to furnish any material or informa- the nicotine content, delivery, or form, or lishment upon condition that adequate and tion required by or under section 909; or eliminates a tobacco additive from any to- effective means are available, by arrange- ‘‘(C) to comply with a requirement under bacco product, the manufacturer shall with- ment with the government of such foreign section 912. in 60 days of such action so advise the Sec- country or otherwise, to enable the Sec- ‘‘(b) PRIOR APPROVAL OF STATEMENTS ON retary in writing and reference such modi- retary to determine from time to time LABEL.—The Secretary may, by regulation, fication in submissions made under sub- whether tobacco products manufactured, require prior approval of statements made on section (b). prepared, compounded, or processed in such establishment, if imported or offered for im- the label of a tobacco product. No regulation ‘‘SEC. 905. ANNUAL REGISTRATION. issued under this subsection may require port into the United States, shall be refused ‘‘(a) DEFINITIONS.—As used in this section— prior approval by the Secretary of the con- admission on any of the grounds set forth in ‘‘(1) the term ‘manufacture, preparation, tent of any advertisement and no advertise- section 801(a). compounding, or processing’ shall include re- ment of a tobacco product, published after ‘‘(i) REGISTRATION INFORMATION.— packaging or otherwise changing the con- the date of enactment of the National To- ‘‘(1) PRODUCT LIST.—Every person who reg- bacco Policy and Youth Smoking Reduction tainer, wrapper, or labeling of any tobacco isters with the Secretary under subsection Act shall, with respect to the matters speci- product package in furtherance of the dis- (b), (c), or (d) of this section shall, at the fied in this section or covered by regulations tribution of the tobacco product from the time of registration under any such sub- issued hereunder, be subject to the provi- original place of manufacture to the person section, file with the Secretary a list of all sions of sections 12 through 15 of the Federal who makes final delivery or sale to the ulti- tobacco products which are being manufac- Trade Commission Act (15 U.S.C. 52 through mate consumer or user; and tured, prepared, compounded, or processed 55). This subsection does not apply to any ‘‘(2) the term ‘name’ shall include in the by that person for commercial distribution printed matter which the Secretary deter- case of a partnership the name of each part- and which has not been included in any list mines to be labeling as defined in section ner and, in the case of a corporation, the of tobacco products filed by that person with 201(m). name of each corporate officer and director, the Secretary under this paragraph or para- ‘‘SEC. 904. SUBMISSION OF HEALTH INFORMA- and the State of incorporation. graph (2) before such time of registration. TION TO THE SECRETARY. ‘‘(b) REGISTRATION BY OWNERS AND OPERA- Such list shall be prepared in such form and ‘‘(a) REQUIREMENT.—Not later than 6 TORS.—On or before December 31 of each year manner as the Secretary may prescribe and months after the date of enactment of the every person who owns or operates any es- shall be accompanied by— National Tobacco Policy and Youth Smoking tablishment in any State engaged in the ‘‘(A) in the case of a tobacco product con- Reduction Act, each tobacco product manu- manufacture, preparation, compounding, or tained in the applicable list with respect to facturer or importer of tobacco products, or processing of a tobacco product or tobacco which a performance standard has been es- agents thereof, shall submit to the Secretary products shall register with the Secretary tablished under section 907 or which is sub- the following information: the name, places of business, and all such es- ject to section 910, a reference to the author- ‘‘(1) A listing of all tobacco ingredients, tablishments of that person. ity for the marketing of such tobacco prod- substances and compounds that are, on such ‘‘(c) REGISTRATION OF NEW OWNERS AND OP- uct and a copy of all labeling for such to- date, added by the manufacturer to the to- ERATORS.—Every person upon first engaging bacco product; bacco, paper, filter, or other component of in the manufacture, preparation, ‘‘(B) in the case of any other tobacco prod- each tobacco product by brand and by quan- compounding, or processing of a tobacco uct contained in an applicable list, a copy of tity in each brand and subbrand. product or tobacco products in any establish- all consumer information and other labeling ‘‘(2) A description of the content, delivery, ment owned or operated in any State by that for such tobacco product, a representative and form of nicotine in each tobacco product person shall immediately register with the sampling of advertisements for such tobacco measured in milligrams of nicotine. Secretary that person’s name, place of busi- product, and, upon request made by the Sec- ‘‘(3) All documents (including underlying ness, and such establishment. retary for good cause, a copy of all advertise- scientific information) relating to research ‘‘(d) REGISTRATION OF ADDED ESTABLISH- ments for a particular tobacco product; and activities, and research findings, conducted, MENTS.—Every person required to register ‘‘(C) if the registrant filing a list has deter- supported, or possessed by the manufacturer under subsection (b) or (c) shall immediately mined that a tobacco product contained in (or agents thereof) on the health, behavioral, register with the Secretary any additional such list is not subject to a performance or physiologic effects of tobacco products, establishment which that person owns or op- standard established under section 907, a their constituents, ingredients, and compo- erates in any State and in which that person brief statement of the basis upon which the nents, and tobacco additives, described in begins the manufacture, preparation, registrant made such determination if the paragraph (1). compounding, or processing of a tobacco Secretary requests such a statement with re- ‘‘(4) All documents (including underlying product or tobacco products. spect to that particular tobacco product. scientific information) relating to research ‘‘(e) UNIFORM PRODUCT IDENTIFICATION SYS- ‘‘(2) BIANNUAL REPORT OF ANY CHANGE IN activities, and research findings, conducted, TEM.—The Secretary may by regulation pre- PRODUCT LIST.—Each person who registers supported, or possessed by the manufacturer scribe a uniform system for the identifica- with the Secretary under this section shall (or agents thereof) that relate to the issue of tion of tobacco products and may require report to the Secretary once during the whether a reduction in risk to health from that persons who are required to list such to- month of June of each year and once during tobacco products can occur upon the employ- bacco products under subsection (i) of this the month of December of each year the fol- ment of technology available or known to section shall list such tobacco products in lowing: the manufacturer. accordance with such system. ‘‘(A) A list of each tobacco product intro- ‘‘(5) All documents (including underlying ‘‘(f) PUBLIC ACCESS TO REGISTRATION INFOR- duced by the registrant for commercial dis- scientific information) relating to marketing MATION.—The Secretary shall make available tribution which has not been included in any research involving the use of tobacco prod- for inspection, to any person so requesting, list previously filed by that person with the ucts. any registration filed under this section. Secretary under this subparagraph or para- An importer of a tobacco product not manu- ‘‘(g) BIENNIAL INSPECTION OF REGISTERED graph (1) of this subsection. A list under this factured in the United States shall supply ESTABLISHMENTS.—Every establishment in subparagraph shall list a tobacco product by the information required of a tobacco prod- any State registered with the Secretary its established name and shall be accom- uct manufacturer under this subsection. under this section shall be subject to inspec- panied by the other information required by ‘‘(b) ANNUAL SUBMISSION.—A tobacco prod- tion under section 704, and every such estab- paragraph (1). uct manufacturer or importer that is re- lishment engaged in the manufacture, ‘‘(B) If since the date the registrant last quired to submit information under sub- compounding, or processing of a tobacco made a report under this paragraph that per- section (a) shall update such information on product or tobacco products shall be so in- son has discontinued the manufacture, prep- an annual basis under a schedule determined spected by one or more officers or employees aration, compounding, or processing for com- by the Secretary. duly designated by the Secretary at least mercial distribution of a tobacco product in- ‘‘(c) TIME FOR SUBMISSION.— once in the 2-year period beginning with the cluded in a list filed under subparagraph (A) ‘‘(1) NEW PRODUCTS.—At least 90 days prior date of registration of such establishment or paragraph (1), notice of such discontinu- to the delivery for introduction into inter- under this section and at least once in every ance, the date of such discontinuance, and state commerce of a tobacco product not on successive 2-year period thereafter. the identity of its established name. the market on the date of enactment of this ‘‘(h) FOREIGN ESTABLISHMENTS MAY REG- ‘‘(C) If since the date the registrant re- chapter, the manufacturer of such product ISTER.—Any establishment within any for- ported under subparagraph (B) a notice of shall provide the information required under eign country engaged in the manufacture, discontinuance that person has resumed the subsection (a) and such product shall be sub- preparation, compounding, or processing of a manufacture, preparation, compounding, or ject to the annual submission under sub- tobacco product or tobacco products, may processing for commercial distribution of section (b). register under this section under regulations the tobacco product with respect to which ‘‘(2) MODIFICATION OF EXISTING PRODUCTS.— promulgated by the Secretary. Such regula- such notice of discontinuance was reported, If at any time a tobacco product manufac- tions shall require such establishment to notice of such resumption, the date of such

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00008 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5039 resumption, the identity of such tobacco wise obtained by the Secretary or the Sec- ferent tobacco product manufacturers, and product by established name, and other in- retary’s representative under section 904, 907, the state of their existing manufacturing fa- formation required by paragraph (1), unless 908, 909, or 910 or 704, or under subsection (e) cilities; and shall provide for a reasonable the registrant has previously reported such or (f) of this section, which is exempt from period of time for such manufacturers to resumption to the Secretary under this sub- disclosure under subsection (a) of section 552 conform to good manufacturing practices. paragraph. of title 5, United States Code, by reason of ‘‘(2) EXEMPTIONS; VARIANCES.— ‘‘(D) Any material change in any informa- subsection (b)(4) of that section shall be con- ‘‘(A) Any person subject to any require- tion previously submitted under this para- sidered confidential and shall not be dis- ment prescribed under paragraph (1) may pe- graph or paragraph (1). closed, except that the information may be tition the Secretary for a permanent or tem- ‘‘(j) REPORT PRECEDING INTRODUCTION OF disclosed to other officers or employees con- porary exemption or variance from such re- CERTAIN SUBSTANTIALLY-EQUIVALENT PROD- cerned with carrying out this chapter, or quirement. Such a petition shall be submit- UCTS INTO INTERSTATE COMMERCE.— when relevant in any proceeding under this ted to the Secretary in such form and man- ‘‘(1) IN GENERAL.—Each person who is re- chapter. ner as the Secretary shall prescribe and quired to register under this section and who ‘‘(d) RESTRICTIONS.— shall— proposes to begin the introduction or deliv- ‘‘(1) The Secretary may by regulation re- ‘‘(i) in the case of a petition for an exemp- ery for introduction into interstate com- quire that a tobacco product be restricted to tion from a requirement, set forth the basis merce for commercial distribution of a to- sale, distribution, or use upon such condi- for the petitioner’s determination that com- bacco product intended for human use that tions, including restrictions on the access to, pliance with the requirement is not required was not commercially marketed (other than and the advertising and promotion of, the to- to assure that the tobacco product will be in for test marketing) in the United States as bacco product, as the Secretary may pre- compliance with this chapter; of August 11, 1995, as defined by the Sec- scribe in such regulation if, because of its po- ‘‘(ii) in the case of a petition for a variance retary by regulation shall, at least 90 days tentiality for harmful effect or the collateral from a requirement, set forth the methods before making such introduction or delivery, measures necessary to its use, the Secretary proposed to be used in, and the facilities and report to the Secretary (in such form and determines that such regulation would be ap- controls proposed to be used for, the manu- manner as the Secretary shall by regulation propriate for the protection of the public facture, packing, and storage of the tobacco prescribe)— health. The finding as to whether such regu- product in lieu of the methods, facilities, and ‘‘(A) the basis for such person’s determina- lation would be appropriate for the protec- controls prescribed by the requirement; and tion that the tobacco product is substan- tion of the public health shall be determined ‘‘(iii) contain such other information as tially equivalent, within the meaning of sec- with respect to the risks and benefits to the the Secretary shall prescribe. tion 910, to a tobacco product commercially population as a whole, including users and ‘‘(B) The Secretary may refer to an advi- marketed (other than for test marketing) in non-users of the tobacco product, and taking sory committee any petition submitted the United States as of August 11, 1995, that into account— under subparagraph (A). The advisory com- is in compliance with the requirements of ‘‘(A) the increased or decreased likelihood mittee shall report its recommendations to this Act; and that existing users of tobacco products will the Secretary with respect to a petition re- ‘‘(B) action taken by such person to com- stop using such products; and ferred to it within 60 days after the date of ply with the requirements under section 907 ‘‘(B) the increased or decreased likelihood the petition’s referral. Within 60 days after— that are applicable to the tobacco product. that those who do not use tobacco products ‘‘(i) the date the petition was submitted to ‘‘(2) APPLICATION TO CERTAIN POST-AUGUST will start using such products. the Secretary under subparagraph (A); or 11TH PRODUCTS.—A report under this sub- No such condition may require that the sale ‘‘(ii) the day after the petition was referred section for a tobacco product that was first or distribution of a tobacco product be lim- to an advisory committee, introduced or delivered for introduction into ited to the written or oral authorization of a whichever occurs later, the Secretary shall interstate commerce for commercial dis- practitioner licensed by law to prescribe by order either deny the petition or approve tribution in the United States after August medical products. it. 11, 1995, and before the date of enactment of ‘‘(2) The label of a tobacco product shall ‘‘(C) The Secretary may approve— the National Tobacco Policy and Youth bear such appropriate statements of the re- ‘‘(i) a petition for an exemption for a to- Smoking Reduction Act shall be submitted strictions required by a regulation under bacco product from a requirement if the Sec- to the Secretary within 6 months after the subsection (a) as the Secretary may in such retary determines that compliance with such date of enactment of that Act. regulation prescribe. requirement is not required to assure that ‘‘SEC. 906. GENERAL PROVISIONS RESPECTING ‘‘(3) No restriction under paragraph (1) the tobacco product will be in compliance CONTROL OF TOBACCO PRODUCTS. may prohibit the sale of any tobacco product with this chapter; and ‘‘(a) IN GENERAL.—Any requirement estab- in face-to face transactions by a specific cat- ‘‘(ii) a petition for a variance for a tobacco lished by or under section 902, 903, 905, or 909 egory of retail outlets. product from a requirement if the Secretary applicable to a tobacco product shall apply ‘‘(e) GOOD MANUFACTURING PRACTICE RE- determines that the methods to be used in, to such tobacco product until the applicabil- QUIREMENTS.— ity of the requirement to the tobacco prod- and the facilities and controls to be used for, uct has been changed by action taken under ‘‘(1) METHODS, FACILITIES, AND CONTROLS TO the manufacture, packing, and storage of the section 907, section 910, or subsection (d) of CONFORM.— tobacco product in lieu of the methods, con- this section, and any requirement estab- ‘‘(A) The Secretary may, in accordance trols, and facilities prescribed by the re- lished by or under section 902, 903, 905, or 909 with subparagraph (B), prescribe regulations quirement are sufficient to assure that the which is inconsistent with a requirement im- requiring that the methods used in, and the tobacco product will be in compliance with posed on such tobacco product under section facilities and controls used for, the manufac- this chapter. 907, section 910, or subsection (d) of this sec- ture, pre-production design validation (in- ‘‘(D) An order of the Secretary approving a tion shall not apply to such tobacco product. cluding a process to assess the performance petition for a variance shall prescribe such ‘‘(b) INFORMATION ON PUBLIC ACCESS AND of a tobacco product), packing and storage of conditions respecting the methods used in, COMMENT.—Each notice of proposed rule- a tobacco product, conform to current good and the facilities and controls used for, the making under section 907, 908, 909, or 910, or manufacturing practice, as prescribed in manufacture, packing, and storage of the to- under this section, any other notice which is such regulations, to assure that the public bacco product to be granted the variance published in the Federal Register with re- health is protected and that the tobacco under the petition as may be necessary to as- spect to any other action taken under any product is in compliance with this chapter. sure that the tobacco product will be in com- such section and which states the reasons for ‘‘(B) The Secretary shall— pliance with this chapter. such action, and each publication of findings ‘‘(i) before promulgating any regulation ‘‘(E) After the issuance of an order under required to be made in connection with rule- under subparagraph (A), afford an advisory subparagraph (B) respecting a petition, the making under any such section shall set committee an opportunity to submit rec- petitioner shall have an opportunity for an forth— ommendations with respect to the regulation informal hearing on such order. ‘‘(1) the manner in which interested per- proposed to be promulgated; ‘‘(3) Compliance with requirements under sons may examine data and other informa- ‘‘(ii) before promulgating any regulation this subsection shall not be required before tion on which the notice or findings is based; under subparagraph (A), afford opportunity the period ending 3 years after the date of and for an oral hearing; enactment of the National Tobacco Policy ‘‘(2) the period within which interested per- ‘‘(iii) provide the advisory committee a and Youth Smoking Reduction Act. sons may present their comments on the no- reasonable time to make its recommenda- ‘‘(f) EXEMPTION FOR INVESTIGATIONAL tice or findings (including the need therefor) tion with respect to proposed regulations USE.—The Secretary may exempt tobacco orally or in writing, which period shall be at under subparagraph (A); and products intended for investigational use least 60 days but may not exceed 90 days un- ‘‘(iv) in establishing the effective date of a from this chapter under such conditions as less the time is extended by the Secretary by regulation promulgated under this sub- the Secretary may prescribe by regulation . a notice published in the Federal Register section, take into account the differences in ‘‘(g) RESEARCH AND DEVELOPMENT.—The stating good cause therefor. the manner in which the different types of Secretary may enter into contracts for re- ‘‘(c) LIMITED CONFIDENTIALITY OF INFORMA- tobacco products have historically been pro- search, testing, and demonstrations respect- TION.—Any information reported to or other- duced, the financial resources of the dif- ing tobacco products and may obtain tobacco

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5040 CONGRESSIONAL RECORD — SENATE May 19, 1998 products for research, testing, and dem- shops, or other means, by informed persons it is appropriate for the Congress to have the onstration purposes without regard to sec- representative of scientific, professional, in- opportunity to review such a decision. tion 3324(a) and (b) of title 31, United States dustry, or consumer organizations who in Therefore, any such standard may not take Code, and section 5 of title 41, United States the Secretary’s judgment can make a signifi- effect before a date that is 2 years after the Code. cant contribution. President notifies the Congress that a final ‘‘SEC. 907. PERFORMANCE STANDARDS. ‘‘(b) ESTABLISHMENT OF STANDARDS.— regulation imposing the restriction has been ‘‘(1) NOTICE.— ‘‘(a) IN GENERAL.— issued. (A) The Secretary shall publish in the Fed- ‘‘(1) FINDING REQUIRED.—The Secretary ‘‘(4) AMENDMENT; REVOCATION.— may adopt performance standards for a to- eral Register a notice of proposed rule- ‘‘(A) The Secretary, upon the Secretary’s making for the establishment, amendment, bacco product if the Secretary finds that a own initiative or upon petition of an inter- or revocation of any performance standard performance standard is appropriate for the ested person may by a regulation, promul- for a tobacco product. protection of the public health. This finding gated in accordance with the requirements of ‘‘(B) A notice of proposed rulemaking for shall be determined with respect to the risks paragraphs (1) and (2)(B) of this subsection, the establishment or amendment of a per- and benefits to the population as a whole, in- amend or revoke a performance standard. formance standard for a tobacco product cluding users and non-users of the tobacco ‘‘(B) The Secretary may declare a proposed shall— product, and taking into account— amendment of a performance standard to be ‘‘(i) set forth a finding with supporting jus- ‘‘(A) the increased or decreased likelihood effective on and after its publication in the tification that the performance standard is that existing users of tobacco products will Federal Register and until the effective date appropriate for the protection of the public of any final action taken on such amend- stop using such products; and health; ‘‘(B) the increased or decreased likelihood ment if the Secretary determines that mak- ‘‘(ii) set forth proposed findings with re- ing it so effective is in the public interest. that those who do not use tobacco products spect to the risk of illness or injury that the will start using such products. ‘‘(5) REFERENCE TO ADVISORY COMMITTEE.— performance standard is intended to reduce The Secretary— ‘‘(2) CONTENT OF PERFORMANCE STAND- or eliminate; and ARDS.—A performance standard established ‘‘(A) may, on the Secretary’s own initia- ‘‘(iii) invite interested persons to submit tive, refer a proposed regulation for the es- under this section for a tobacco product— an existing performance standard for the to- ‘‘(A) shall include provisions to provide tablishment, amendment, or revocation of a bacco product, including a draft or proposed performance standard; or performance that is appropriate for the pro- performance standard, for consideration by tection of the public health, including provi- ‘‘(B) shall, upon the request of an inter- the Secretary. ested person which demonstrates good cause sions, where appropriate— ‘‘(C) A notice of proposed rulemaking for for referral and which is made before the ex- ‘‘(i) for the reduction or elimination of nic- the revocation of a performance standard piration of the period for submission of com- otine yields of the product; shall set forth a finding with supporting jus- ments on such proposed regulation, ‘‘(ii) for the reduction or elimination of tification that the performance standard is other constituents or harmful components of no longer necessary to be appropriate for the refer such proposed regulation to an advisory the product; or protection of the public health. committee, for a report and recommendation ‘‘(iii) relating to any other requirement ‘‘(D) The Secretary shall consider all infor- with respect to any matter involved in the under (B); mation submitted in connection with a pro- proposed regulation which requires the exer- ‘‘(B) shall, where necessary to be appro- posed standard, including information con- cise of scientific judgment. If a proposed reg- priate for the protection of the public health, cerning the countervailing effects of the per- ulation is referred under this subparagraph include— formance standard on the health of adoles- to the advisory committee, the Secretary ‘‘(i) provisions respecting the construction, cent tobacco users, adult tobacco users, or shall provide the advisory committee with components, ingredients, and properties of non-tobacco users, such as the creation of a the data and information on which such pro- the tobacco product; significant demand for contraband or other posed regulation is based. The advisory com- ‘‘(ii) provisions for the testing (on a sample tobacco products that do not meet the re- mittee shall, within 60 days after the referral basis or, if necessary, on an individual basis) quirements of this chapter and the signifi- of a proposed regulation and after independ- of the tobacco product; cance of such demand, and shall issue the ent study of the data and information fur- ‘‘(iii) provisions for the measurement of standard if the Secretary determines that nished to it by the Secretary and other data the performance characteristics of the to- the standard would be appropriate for the and information before it, submit to the Sec- bacco product; protection of the public health. retary a report and recommendation respect- ‘‘(iv) provisions requiring that the results ‘‘(E) The Secretary shall provide for a com- ing such regulation, together with all under- of each or of certain of the tests of the to- ment period of not less than 60 days. lying data and information and a statement bacco product required to be made under ‘‘(2) PROMULGATION.— of the reason or basis for the recommenda- clause (ii) show that the tobacco product is ‘‘(A) After the expiration of the period for tion. A copy of such report and recommenda- in conformity with the portions of the stand- comment on a notice of proposed rulemaking tion shall be made public by the Secretary. ard for which the test or tests were required; published under paragraph (1) respecting a ‘‘SEC. 908. NOTIFICATION AND OTHER REMEDIES and performance standard and after consider- ‘‘(a) NOTIFICATION.—If the Secretary deter- ‘‘(v) a provision requiring that the sale and ation of such comments and any report from mines that— distribution of the tobacco product be re- an advisory committee, the Secretary shall— ‘‘(1) a tobacco product which is introduced stricted but only to the extent that the sale ‘‘(i) promulgate a regulation establishing a or delivered for introduction into interstate and distribution of a tobacco product may be performance standard and publish in the commerce for commercial distribution pre- restricted under a regulation under section Federal Register findings on the matters re- sents an unreasonable risk of substantial 906(d); and ferred to in paragraph (1); or harm to the public health; and ‘‘(C) shall, where appropriate, require the ‘‘(ii) publish a notice terminating the pro- ‘‘(2) notification under this subsection is use and prescribe the form and content of la- ceeding for the development of the standard necessary to eliminate the unreasonable risk beling for the proper use of the tobacco prod- together with the reasons for such termi- of such harm and no more practicable means uct. nation. is available under the provisions of this ‘‘(3) PERIODIC RE-EVALUATION OF PERFORM- ‘‘(B) A regulation establishing a perform- chapter (other than this section) to elimi- ANCE STANDARDS.—The Secretary shall pro- ance standard shall set forth the date or nate such risk, vide for periodic evaluation of performance dates upon which the standard shall take ef- the Secretary may issue such order as may standards established under this section to fect, but no such regulation may take effect be necessary to assure that adequate notifi- determine whether such standards should be before one year after the date of its publica- cation is provided in an appropriate form, by changed to reflect new medical, scientific, or tion unless the Secretary determines that an the persons and means best suited under the other technological data. The Secretary may earlier effective date is necessary for the circumstances involved, to all persons who provide for testing under paragraph (2) by protection of the public health. Such date or should properly receive such notification in any person. dates shall be established so as to minimize, order to eliminate such risk. The Secretary ‘‘(4) INVOLVEMENT OF OTHER AGENCIES; IN- consistent with the public health, economic may order notification by any appropriate FORMED PERSONS.—In carrying out duties loss to, and disruption or dislocation of, do- means, including public service announce- under this section, the Secretary shall, to mestic and international trade. ments. Before issuing an order under this the maximum extent practicable— ‘‘(3) SPECIAL RULE FOR STANDARD BANNING subsection, the Secretary shall consult with ‘‘(A) use personnel, facilities, and other CLASS OF PRODUCT OR ELIMINATING NICOTINE the persons who are to give notice under the technical support available in other Federal CONTENT.—Because of the importance of a de- order. agencies; cision of the Secretary to issue a regulation ‘‘(b) NO EXEMPTION FROM OTHER LIABIL- ‘‘(B) consult with other Federal agencies establishing a performance standard— ITY.—Compliance with an order issued under concerned with standard-setting and other ‘‘(A) eliminating all cigarettes, all smoke- this section shall not relieve any person nationally or internationally recognized less tobacco products, or any similar class of from liability under Federal or State law. In standard-setting entities; and tobacco products, or awarding damages for economic loss in an ‘‘(C) invite appropriate participation, ‘‘(B) requiring the reduction of nicotine action brought for the enforcement of any through joint or other conferences, work- yields of a tobacco product to zero, such liability, the value to the plaintiff in

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5041 such action of any remedy provided under turer or importer, taking into account the commerce for commercial distribution in the such order shall be taken into account. cost of complying with such requirements United States after August 11, 1995, and be- ‘‘(c) RECALL AUTHORITY.— and the need for the protection of the public fore the date of enactment of the National ‘‘(1) IN GENERAL.—If the Secretary finds health and the implementation of this chap- Tobacco Policy and Youth Smoking Reduc- that there is a reasonable probability that a ter; tion Act; and tobacco product contains a manufacturing or ‘‘(4) when prescribing the procedure for ‘‘(ii) for which a report was submitted other defect not ordinarily contained in to- making requests for reports or information, under section 905(j) within 6 months after bacco products on the market that would shall require that each request made under such date, cause serious, adverse health consequences such regulations for submission of a report until the Secretary issues an order that the or death, the Secretary shall issue an order or information to the Secretary state the tobacco product is substantially equivalent requiring the appropriate person (including reason or purpose for such request and iden- for purposes of this section or requires pre- the manufacturers, importers, distributors, tify to the fullest extent practicable such re- market approval. or retailers of the tobacco product) to imme- port or information; ‘‘(2) SUBSTANTIALLY EQUIVALENT DEFINED.— diately cease distribution of such tobacco ‘‘(5) when requiring submission of a report ‘‘(A) For purposes of this section and sec- product. The order shall provide the person or information to the Secretary, shall state tion 905(j), the term ‘substantially equiva- subject to the order with an opportunity for the reason or purpose for the submission of lent’ or ‘substantial equivalence’ mean, with an informal hearing, to be held not later such report or information and identify to respect to the tobacco product being com- than 10 days after the date of the issuance of the fullest extent practicable such report or pared to the predicate tobacco product, that the order, on the actions required by the information; and the Secretary by order has found that the to- order and on whether the order should be ‘‘(6) may not require that the identity of bacco product— amended to require a recall of such tobacco any patient or user be disclosed in records, ‘‘(i) has the same characteristics as the product. If, after providing an opportunity reports, or information required under this predicate tobacco product; or for such a hearing, the Secretary determines subsection unless required for the medical ‘‘(ii) has different characteristics and the that inadequate grounds exist to support the welfare of an individual, to determine risks information submitted contains information, actions required by the order, the Secretary to public health of a tobacco product, or to including clinical data if deemed necessary shall vacate the order. verify a record, report, or information sub- by the Secretary, that demonstrates that it ‘‘(2) AMENDMENT OF ORDER TO REQUIRE RE- mitted under this chapter. is not appropriate to regulate the product CALL.— In prescribing regulations under this sub- under this section because the product does ‘‘(A) If, after providing an opportunity for section, the Secretary shall have due regard not raise different questions of public health. an informal hearing under paragraph (1), the for the professional ethics of the medical ‘‘(B) For purposes of subparagraph (A), the Secretary determines that the order should profession and the interests of patients. The term ‘characteristics’ means the materials, be amended to include a recall of the tobacco prohibitions of paragraph (6) of this sub- ingredients, design, composition, heating product with respect to which the order was section continue to apply to records, reports, source, or other features of a tobacco prod- issued, the Secretary shall, except as pro- and information concerning any individual uct. vided in subparagraph (B), amend the order who has been a patient, irrespective of ‘‘(C) A tobacco product may not be found to require a recall. The Secretary shall whether or when he ceases to be a patient. to be substantially equivalent to a predicate specify a timetable in which the tobacco ‘‘(b) REPORTS OF REMOVALS AND CORREC- tobacco product that has been removed from TIONS.— product recall will occur and shall require the market at the initiative of the Secretary (1) Except as provided in paragraph (3), the periodic reports to the Secretary describing or that has been determined by a judicial Secretary shall by regulation require a to- the progress of the recall. order to be misbranded or adulterated. bacco product manufacturer or importer of a ‘‘(B) An amended order under subparagraph ‘‘(3) HEALTH INFORMATION.— tobacco product to report promptly to the (A)— ‘‘(A) As part of a submission under section Secretary any corrective action taken or re- ‘‘(i) shall not include recall of a tobacco 905(j) respecting a tobacco product, the per- moval from the market of a tobacco product product from individuals; and son required to file a premarket notification undertaken by such manufacturer or im- ‘‘(ii) shall provide for notice to persons under such section shall provide an adequate porter if the removal or correction was un- summary of any health information related subject to the risks associated with the use dertaken— of such tobacco product. to the tobacco product or state that such in- ‘‘(A) to reduce a risk to health posed by the formation will be made available upon re- In providing the notice required by clause tobacco product; or quest by any person. (ii), the Secretary may use the assistance of ‘‘(B) to remedy a violation of this chapter ‘‘(B) Any summary under subparagraph (A) retailers and other persons who distributed caused by the tobacco product which may respecting a tobacco product shall contain such tobacco product. If a significant num- present a risk to health. detailed information regarding data concern- ber of such persons cannot be identified, the A tobacco product manufacturer or importer ing adverse health effects and shall be made Secretary shall notify such persons under of a tobacco product who undertakes a cor- available to the public by the Secretary section 705(b). rective action or removal from the market of within 30 days of the issuance of a deter- ‘‘(3) REMEDY NOT EXCLUSIVE.—The remedy a tobacco product which is not required to be mination that such tobacco product is sub- provided by this subsection shall be in addi- reported under this subsection shall keep a stantially equivalent to another tobacco tion to remedies provided by subsection (a) record of such correction or removal. product. of this section. ‘‘(2) No report of the corrective action or ‘‘(b) APPLICATION.— ‘‘SEC. 909. RECORDS AND REPORTS ON TOBACCO removal of a tobacco product may be re- ‘‘(1) CONTENTS.—An application for pre- PRODUCTS. quired under paragraph (1) if a report of the market approval shall contain— ‘‘(a) IN GENERAL.—Every person who is a corrective action or removal is required and ‘‘(A) full reports of all information, pub- tobacco product manufacturer or importer of has been submitted under subsection (a) of lished or known to or which should reason- a tobacco product shall establish and main- this section. ably be known to the applicant, concerning tain such records, make such reports, and ‘‘SEC. 910. PREMARKET REVIEW OF CERTAIN TO- investigations which have been made to provide such information, as the Secretary BACCO PRODUCTS. show the health risks of such tobacco prod- may by regulation reasonably require to as- ‘‘(a) IN GENERAL.— uct and whether such tobacco product pre- sure that such tobacco product is not adul- ‘‘(1) PREMARKET APPROVAL REQUIRED.— sents less risk than other tobacco products; terated or misbranded and to otherwise pro- ‘‘(A) NEW PRODUCTS.—Approval under this ‘‘(B) a full statement of the components, tect public health. Regulations prescribed section of an application for premarket ap- ingredients, and properties, and of the prin- under the preceding sentence— proval for any tobacco product that is not ciple or principles of operation, of such to- ‘‘(1) may require a tobacco product manu- commercially marketed (other than for test bacco product; facturer or importer to report to the Sec- marketing) in the United States as of August ‘‘(C) a full description of the methods used retary whenever the manufacturer or im- 11, 1995, is required unless the manufacturer in, and the facilities and controls used for, porter receives or otherwise becomes aware has submitted a report under section 905(j), the manufacture, processing, and, when rel- of information that reasonably suggests that and the Secretary has issued an order that evant, packing and installation of, such to- one of its marketed tobacco products may the tobacco product is substantially equiva- bacco product; have caused or contributed to a serious unex- lent to a tobacco product commercially mar- ‘‘(D) an identifying reference to any per- pected adverse experience associated with keted (other than for test marketing) in the formance standard under section 907 which the use of the product or any significant in- United States as of August 11, 1995, that is in would be applicable to any aspect of such to- crease in the frequency of a serious, expected compliance with the requirements of this bacco product, and either adequate informa- adverse product experience; Act. tion to show that such aspect of such to- ‘‘(2) shall require reporting of other signifi- ‘‘(B) PRODUCTS INTRODUCED BETWEEN AU- bacco product fully meets such performance cant adverse tobacco product experiences as GUST 11, 1995, AND ENACTMENT OF THIS CHAP- standard or adequate information to justify determined by the Secretary to be necessary TER.—Subparagraph (A) does not apply to a any deviation from such standard; to be reported; tobacco product that— ‘‘(E) such samples of such tobacco product ‘‘(3) shall not impose requirements unduly ‘‘(i) was first introduced or delivered for in- and of components thereof as the Secretary burdensome to a tobacco product manufac- troduction into interstate commerce for may reasonably require;

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5042 CONGRESSIONAL RECORD — SENATE May 19, 1998

‘‘(F) specimens of the labeling proposed to ing users and non-users of the tobacco prod- ‘‘(2) APPEAL.—The holder of an application be used for such tobacco product; and uct, and taking into account— subject to an order issued under paragraph ‘‘(G) such other information relevant to ‘‘(A) the increased or decreased likelihood (1) withdrawing approval of the application the subject matter of the application as the that existing users of tobacco products will may, by petition filed on or before the thirti- Secretary may require. stop using such products; and eth day after the date upon which he re- ‘‘(2) REFERENCE TO ADVISORY COMMITTEE.— ‘‘(B) the increased or decreased likelihood ceives notice of such withdrawal, obtain re- Upon receipt of an application meeting the that those who do not use tobacco products view thereof in accordance with subsection requirements set forth in paragraph (1), the will start using such products. (e) of this section. Secretary— ‘‘(5) BASIS FOR ACTION.— ‘‘(3) TEMPORARY SUSPENSION.—If, after pro- ‘‘(A) may, on the Secretary’s own initia- ‘‘(A) For purposes of paragraph (2)(A), viding an opportunity for an informal hear- tive; or whether permitting a tobacco product to be ing, the Secretary determines there is rea- ‘‘(B) shall, upon the request of an appli- marketed would be appropriate for the pro- sonable probability that the continuation of cant, tection of the public health shall, when ap- distribution of a tobacco product under an refer such application to an advisory com- propriate, be determined on the basis of well- approved application would cause serious, mittee and for submission (within such pe- controlled investigations, which may include adverse health consequences or death, that is riod as the Secretary may establish) of a re- one or more clinical investigations by ex- greater than ordinarily caused by tobacco port and recommendation respecting ap- perts qualified by training and experience to products on the market, the Secretary shall proval of the application, together with all evaluate the tobacco product. by order temporarily suspend the approval of underlying data and the reasons or basis for ‘‘(B) If the Secretary determines that there the application approved under this section. the recommendation. exists valid scientific evidence (other than If the Secretary issues such an order, the ‘‘(c) ACTION ON APPLICATION.— evidence derived from investigations de- Secretary shall proceed expeditiously under ‘‘(1) DEADLINE.— scribed in subparagraph (A)) which is suffi- paragraph (1) to withdraw such application. ‘‘(A) As promptly as possible, but in no cient to evaluate the tobacco product the ‘‘(e) SERVICE OF ORDER.—An order issued event later than 180 days after the receipt of Secretary may authorize that the determina- by the Secretary under this section shall be an application under subsection (b) of this tion for purposes of paragraph (2)(A) be made served— section, the Secretary, after considering the on the basis of such evidence. ‘‘(1) in person by any officer or employee of report and recommendation submitted under ‘‘(d) WITHDRAWAL AND TEMPORARY SUSPEN- the department designated by the Secretary; paragraph (2) of such subsection, shall— SION.— or ‘‘(i) issue an order approving the applica- ‘‘(1) IN GENERAL.—The Secretary shall, ‘‘(2) by mailing the order by registered tion if the Secretary finds that none of the upon obtaining, where appropriate, advice on mail or certified mail addressed to the appli- grounds for denying approval specified in scientific matters from an advisory commit- cant at the applicant’s last known address in paragraph (2) of this subsection applies; or tee, and after due notice and opportunity for the records of the Secretary. ‘‘(ii) deny approval of the application if the informal hearing to the holder of an ap- ‘‘SEC. 911. JUDICIAL REVIEW. Secretary finds (and sets forth the basis for proved application for a tobacco product, ‘‘(a) IN GENERAL.—Not later than 30 days such finding as part of or accompanying such issue an order withdrawing approval of the after— denial) that one or more grounds for denial application if the Secretary finds— ‘‘(1) the promulgation of a regulation specified in paragraph (2) of this subsection ‘‘(A) that the continued marketing of such under section 907 establishing, amending, or apply. tobacco product no longer is appropriate for revoking a performance standard for a to- ‘‘(B) An order approving an application for the protection of the public health; bacco product; or a tobacco product may require as a condition ‘‘(B) that the application contained or was ‘‘(2) a denial of an application for approval to such approval that the sale and distribu- accompanied by an untrue statement of a under section 910(c), tion of the tobacco product be restricted but material fact; any person adversely affected by such regu- only to the extent that the sale and distribu- ‘‘(C) that the applicant— lation or order may file a petition with the tion of a tobacco product may be restricted ‘‘(i) has failed to establish a system for United States Court of Appeals for the Dis- under a regulation under section 906(d). maintaining records, or has repeatedly or de- trict of Columbia or for the circuit wherein ‘‘(2) DENIAL OF APPROVAL.—The Secretary liberately failed to maintain records or to such person resides or has his principal place shall deny approval of an application for a make reports, required by an applicable reg- of business for judicial review of such regula- tobacco product if, upon the basis of the in- ulation under section 909; tion or order. A copy of the petition shall be formation submitted to the Secretary as ‘‘(ii) has refused to permit access to, or transmitted by the clerk of the court to the part of the application and any other infor- copying or verification of, such records as re- Secretary or other officer designated by the mation before the Secretary with respect to quired by section 704; or Secretary for that purpose. The Secretary such tobacco product, the Secretary finds ‘‘(iii) has not complied with the require- shall file in the court the record of the pro- that— ments of section 905; ceedings on which the Secretary based the ‘‘(A) there is a lack of a showing that per- ‘‘(D) on the basis of new information before Secretary’s regulation or order and each mitting such tobacco product to be marketed the Secretary with respect to such tobacco record or order shall contain a statement of would be appropriate for the protection of product, evaluated together with the evi- the reasons for its issuance and the basis, on the public health; dence before the Secretary when the applica- the record, for its issuance. For purposes of ‘‘(B) the methods used in, or the facilities tion was approved, that the methods used in, this section, the term ‘record’ means all no- or controls used for, the manufacture, proc- or the facilities and controls used for, the tices and other matter published in the Fed- essing, or packing of such tobacco product do manufacture, processing, packing, or instal- eral Register with respect to the regulation not conform to the requirements of section lation of such tobacco product do not con- or order reviewed, all information submitted 906(e); form with the requirements of section 906(e) to the Secretary with respect to such regula- ‘‘(C) based on a fair evaluation of all mate- and were not brought into conformity with tion or order, proceedings of any panel or ad- rial facts, the proposed labeling is false or such requirements within a reasonable time visory committee with respect to such regu- misleading in any particular; or after receipt of written notice from the Sec- lation or order, any hearing held with re- ‘‘(D) such tobacco product is not shown to retary of nonconformity; spect to such regulation or order, and any conform in all respects to a performance ‘‘(E) on the basis of new information before other information identified by the Sec- standard in effect under section 907, compli- the Secretary, evaluated together with the retary, in the administrative proceeding held ance with which is a condition to approval of evidence before the Secretary when the ap- with respect to such regulation or order, as the application, and there is a lack of ade- plication was approved, that the labeling of being relevant to such regulation or order. quate information to justify the deviation such tobacco product, based on a fair evalua- ‘‘(b) COURT MAY ORDER SECRETARY TO from such standard. tion of all material facts, is false or mislead- MAKE ADDITIONAL FINDINGS.—If the peti- ‘‘(3) DENIAL INFORMATION.—Any denial of ing in any particular and was not corrected tioner applies to the court for leave to ad- an application shall, insofar as the Secretary within a reasonable time after receipt of duce additional data, views, or arguments re- determines to be practicable, be accom- written notice from the Secretary of such specting the regulation or order being re- panied by a statement informing the appli- fact; or viewed and shows to the satisfaction of the cant of the measures required to place such ‘‘(F) on the basis of new information before court that such additional data, views, or ar- application in approvable form (which meas- the Secretary, evaluated together with the guments are material and that there were ures may include further research by the ap- evidence before the Secretary when the ap- reasonable grounds for the petitioner’s fail- plicant in accordance with one or more pro- plication was approved, that such tobacco ure to adduce such data, views, or arguments tocols prescribed by the Secretary). product is not shown to conform in all re- in the proceedings before the Secretary, the ‘‘(4) BASIS FOR FINDING.—For purposes of spects to a performance standard which is in court may order the Secretary to provide ad- this section, the finding as to whether ap- effect under section 907, compliance with ditional opportunity for the oral presen- proval of a tobacco product is appropriate for which was a condition to approval of the ap- tation of data, views, or arguments and for the protection of the public health shall be plication, and that there is a lack of ade- written submissions. The Secretary may determined with respect to the risks and quate information to justify the deviation modify the Secretary’s findings, or make benefits to the population as a whole, includ- from such standard. new findings by reason of the additional

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5043

data, views, or arguments so taken and shall the manufacturer of the product (or other re- ‘‘(2) PREEMPTION OF CERTAIN STATE AND file with the court such modified or new find- sponsible person) that— LOCAL REQUIREMENTS.— ings, and the Secretary’s recommendation, if ‘‘(i) demonstrates through testing on ani- ‘‘(A) Except as provided in subparagraph any, for the modification or setting aside of mals and short-term human testing that use (B), no State or political subdivision of a the regulation or order being reviewed, with of such product results in ingestion or inha- State may establish or continue in effect the return of such additional data, views, or lation of a substantially lower yield of toxic with respect to a tobacco product any re- arguments. substances than use of conventional tobacco quirement which is different from, or in ad- ‘‘(c) STANDARD OF REVIEW.—Upon the filing products in the same category as the pro- dition to, any requirement applicable under of the petition under subsection (a) of this posed reduced risk product; and the provisions of this chapter relating to per- section for judicial review of a regulation or ‘‘(ii) if required by the Secretary, includes formance standards, premarket approval, order, the court shall have jurisdiction to re- studies of the long-term health effects of the adulteration, misbranding, registration, re- view the regulation or order in accordance product. porting, good manufacturing standards, or with chapter 7 of title 5, United States Code, If such studies are required, the manufac- reduced risk products. and to grant appropriate relief, including in- turer may consult with the Secretary re- ‘‘(B) Subparagraph (A) does not apply to terim relief, as provided in such chapter. A garding protocols for conducting the studies. requirements relating to the sale, use, or dis- regulation or order described in paragraph ‘‘(B) BASIS FOR FINDING.—In making the tribution of a tobacco product including re- (1) or (2) of subsection (a) of this section finding under subparagraph (A), the Sec- quirements related to the access to, and the shall not be affirmed if it is found to be un- retary shall take into account— advertising and promotion of, a tobacco supported by substantial evidence on the ‘‘(i) the risks and benefits to the popu- product. record taken as a whole. lation as a whole, including both users of to- ‘‘(b) RULE OF CONSTRUCTION REGARDING ‘‘(d) FINALITY OF JUDGMENT.—The judg- bacco products and non-users of tobacco PRODUCT LIABILITY.—No provision of this ment of the court affirming or setting aside, products; chapter relating to a tobacco product shall in whole or in part, any regulation or order ‘‘(ii) the increased or decreased likelihood be construed to modify or otherwise affect shall be final, subject to review by the Su- that existing users of tobacco products will any action or the liability of any person preme Court of the United States upon cer- stop using such products including reduced under the product liability law of any State. tiorari or certification, as provided in sec- risk tobacco products; ‘‘(c) WAIVERS.—Upon the application of a tion 1254 of title 28, United States Code. ‘‘(iii) the increased or decreased likelihood State or political subdivision thereof, the ‘‘(e) OTHER REMEDIES.—The remedies pro- that those who do not use tobacco products Secretary may, by regulation promulgated vided for in this section shall be in addition will start to use such products, including re- after notice and an opportunity for an oral to and not in lieu of any other remedies pro- duced risk tobacco products; and hearing, exempt from subsection (a), under vided by law. ‘‘(iv) the risks and benefits to consumers such conditions as may be prescribed in such ‘‘(f) REGULATIONS AND ORDERS MUST RECITE from the use of a reduced risk tobacco prod- regulation, a requirement of such State or BASIS IN RECORD.—To facilitate judicial re- uct as compared to the use of products ap- political subdivision applicable to a tobacco view under this section or under any other proved under chapter V to reduce exposure product if— provision of law of a regulation or order to tobacco. ‘‘(1) the requirement is more stringent issued under section 906, 907, 908, 909, 910, or ‘‘(3) MARKETING REQUIREMENTS.—A tobacco than a requirement applicable under the pro- 914, each such regulation or order shall con- product may be marketed and labeled as a visions described in subsection (a)(3) which tain a statement of the reasons for its reduced risk tobacco product if it— would be applicable to the tobacco product if issuance and the basis, in the record of the ‘‘(A) has been designated as a reduced risk an exemption were not in effect under this proceedings held in connection with its tobacco product by the Secretary under subsection; or issuance, for its issuance. paragraph (2); ‘‘(2) the requirement— ‘‘SEC. 912. POSTMARKET SURVEILLANCE ‘‘(B) bears a label prescribed by the Sec- ‘‘(A) is required by compelling local condi- ‘‘(a) DISCRETIONARY SURVEILLANCE.—The retary concerning the product’s contribution tions; and Secretary may require a tobacco product to reducing harm to health; and ‘‘(B) compliance with the requirement manufacturer to conduct postmarket sur- ‘‘(C) complies with requirements pre- would not cause the tobacco product to be in veillance for a tobacco product of the manu- scribed by the Secretary relating to market- violation of any applicable requirement of facturer if the Secretary determines that ing and advertising of the product, and other this chapter. postmarket surveillance of the tobacco prod- provisions of this chapter as prescribed by ‘‘SEC. 915. EQUAL TREATMENT OF RETAIL OUT- uct is necessary to protect the public health the Secretary. LETS. or is necessary to provide information re- ‘‘(b) REVOCATION OF DESIGNATION.—At any –‘‘The Secretary shall issue regulations to garding the health risks and other safety time after the date on which a tobacco prod- require that retail establishments for which issues involving the tobacco product. uct is designated as a reduced risk tobacco the predominant business is the sale of to- ‘‘(b) SURVEILLANCE APPROVAL.—Each to- product under this section the Secretary bacco products comply with any advertising bacco product manufacturer required to con- may, after providing an opportunity for an restrictions applicable to retail establish- duct a surveillance of a tobacco product informal hearing, revoke such designation if ments accessible to individuals under the under subsection (a) of this section shall, the Secretary determines, based on informa- age of 18.’’. within 30 days after receiving notice that the tion not available at the time of the designa- SEC. 102. CONFORMING AND OTHER AMEND- manufacturer is required to conduct such tion, that— MENTS TO GENERAL PROVISIONS. surveillance, submit, for the approval of the ‘‘(1) the finding made under subsection (a) AMENDMENT OF FEDERAL FOOD, DRUG, Secretary, a protocol for the required sur- (a)(2) is no longer valid; or AND COSMETIC ACT.—Except as otherwise ex- veillance. The Secretary, within 60 days of ‘‘(2) the product is being marketed in viola- pressly provided, whenever in this section an the receipt of such protocol, shall determine tion of subsection (a)(3). amendment is expressed in terms of an if the principal investigator proposed to be ‘‘(c) LIMITATION.—A tobacco product that amendment to, or repeal of, a section or used in the surveillance has sufficient quali- is designated as a reduced risk tobacco prod- other provision, the reference is to a section fications and experience to conduct such sur- uct that is in compliance with subsection (a) or other provision of the Federal Food, Drug, veillance and if such protocol will result in shall not be regulated as a drug or device. and Cosmetic Act (21 U.S.C. 301 et seq.). collection of useful data or other informa- ‘‘(d) DEVELOPMENT OF REDUCED RISK TO- (b) SECTION 301.—Section 301 (21 U.S.C. 331) tion necessary to protect the public health. BACCO PRODUCT TECHNOLOGY.—A tobacco is amended— The Secretary may not approve such a proto- product manufacturer shall provide written (1) by inserting ‘‘tobacco product,’’ in sub- col until it has been reviewed by an appro- notice to the Secretary upon the develop- section (a) after ‘‘device,’’; priately qualified scientific and technical re- ment or acquisition by the manufacturer of (2) by inserting ‘‘tobacco product,’’ in sub- view committee established by the Sec- any technology that would reduce the risk of section (b) after ‘‘device,’’; retary. a tobacco product to the health of the user (3) by inserting ‘‘tobacco product,’’ in sub- ‘‘SEC. 913. REDUCED RISK TOBACCO PRODUCTS. for which the manufacturer is not seeking section (c) after ‘‘device,’’; ‘‘(a) REQUIREMENTS.— designation as a ‘reduced risk tobacco prod- (4) by striking ‘‘515(f), or 519’’ in subsection ‘‘(1) IN GENERAL.—For purposes of this sec- uct’ under subsection (a). (e) and inserting ‘‘515(f), 519, or 909’’; tion, the term ‘reduced risk tobacco product’ ‘‘SEC. 914. PRESERVATION OF STATE AND LOCAL (5) by inserting ‘‘tobacco product,’’ in sub- means a tobacco product designated by the AUTHORITY. section (g) after ‘‘device,’’; Secretary under paragraph (2). ‘‘(a) ADDITIONAL REQUIREMENTS.— (6) by inserting ‘‘tobacco product,’’ in sub- ‘‘(2) DESIGNATION.— ‘‘(1) IN GENERAL.—Except as provided in section (h) after ‘‘device,’’; ‘‘(A) IN GENERAL.—A product may be des- paragraph (2), nothing in this Act shall be (7) by striking ‘‘708, or 721’’ in subsection ignated by the Secretary as a reduced risk construed as prohibiting a State or political (j) and inserting ‘‘708, 721, 904, 905, 906, 907, tobacco product if the Secretary finds that subdivision thereof from adopting or enforc- 908, or 909’’; the product will significantly reduce harm to ing a requirement applicable to a tobacco (8) by inserting ‘‘tobacco product,’’ in sub- individuals caused by a tobacco product and product that is in addition to, or more strin- section (k) after ‘‘device,’’; is otherwise appropriate to protect public gent than, requirements established under (9) by striking subsection (p) and inserting health, based on an application submitted by this chapter. the following:

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5044 CONGRESSIONAL RECORD — SENATE May 19, 1998 ‘‘(p) The failure to register in accordance (2) by striking ‘‘device.’’ in subsection ‘‘(B) under section 906(f) is exempt from ei- with section 510 or 905, the failure to provide (a)(2) and inserting a comma and ‘‘(E) Any ther such section, any information required by section 510(j), adulterated or misbranded tobacco prod- is adulterated, misbranded, and in violation 510(k), 905(i), or 905(j), or the failure to pro- uct.’’; of such sections or Act unless the export of vide a notice required by section 510(j)(2) or (3) by inserting ‘‘tobacco product,’’ in sub- the drug, device, or tobacco product is, ex- 905(J)(2).’’; section (d)(1) after ‘‘device,’’; cept as provided in subsection (f), authorized (10) by striking subsection (q)(1) and in- (4) by inserting ‘‘or tobacco product’’ in under subsection (b), (c), (d), or (e) of this serting the following: subsection (g)(1) after ‘‘device’’ each place it section or section 801(e)(2) or 801(e)(4). If a ‘‘(q)(1) The failure or refusal— appears; and drug, device, or tobacco product described in ‘‘(A) to comply with any requirement pre- (5) by inserting ‘‘or tobacco product’’ in paragraph (1), (2), or (3) may be exported scribed under section 518, 520(g), 906(f), or 908; subsection (g)(2)(A) after ‘‘device’’ each place under subsection (b) and if an application for ‘‘(B) to furnish any notification or other it appears. such drug or device under section 505, 515, or material or information required by or under (e) SECTION 702.—Section 702(a) (21 U.S.C. 910 of this Act or section 351 of the Public section 519, 520(g), 904, 906(f), or 909; or 372(a)) is amended— Health Service Act (42 U.S.C. 262) was dis- ‘‘(C) to comply with a requirement under (1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and approved, the Secretary shall notify the ap- section 522 or 912.’’; (2) by adding at the end thereof the follow- propriate public health official of the coun- (11) by striking ‘‘device,’’ in subsection ing: try to which such drug, device, or tobacco ‘‘(2) For a tobacco product, to the extent (q)(2) and inserting ‘‘device or tobacco prod- product will be exported of such dis- feasible, the Secretary shall contract with uct,’’; approval.’’; the States in accordance with paragraph (1) (12) by inserting ‘‘or tobacco product’’ in (4) by inserting ‘‘or tobacco product’’ in to carry out inspections of retailers in con- subsection (r) after ‘‘device’’ each time that subsection (b)(1)(A) after ‘‘device’’ each time it appears; and nection with the enforcement of this Act.’’. (f) SECTION 703.—Section 703 (21 U.S.C. 373) it appears; (13) by adding at the end thereof the fol- is amended— (5) by inserting ‘‘or tobacco product’’ in lowing: (1) by inserting ‘‘tobacco product,’’ after subsection (c) after ‘‘device’’ and inserting ‘‘(aa) The sale of tobacco products in viola- ‘‘device,’’ each place it appears; and ‘‘or section 906(f)’’ after ‘‘520(g).’’; tion of a no-tobacco-sale order issued under (2) by inserting ‘‘tobacco products,’’ after (6) by inserting ‘‘or tobacco product’’ in section 303(f).’’. ‘‘devices,’’ each place it appears. subsection (f) after ‘‘device’’ each time it ap- ECTION 303 (c) S .—Section 303(f) (21 U.S.C. (g) SECTION 704.—Section 704 (21 U.S.C. 374) pears; and 333(f)) is amended— is amended— (7) by inserting ‘‘or tobacco product’’ in (1) by amending the caption to read as fol- (1) by inserting ‘‘tobacco products,’’ in sub- subsection (g) after ‘‘device’’ each time it ap- lows: section (a)(1)(A) after ‘‘devices,’’ each place pears. ‘‘(f) CIVIL PENALTIES; NO-TOBACCO-SALE OR- it appears; (l) SECTION 1003.—Section 1003(d)(2)(C) (as DERS.—’’; (2) by inserting ‘‘or tobacco products’’ in redesignated by section 101(a)) is amended— (2) by inserting ‘‘or tobacco products’’ subsection (a)(1)(B) after ‘‘restricted de- (1) by striking ‘‘and’’ after ‘‘cosmetics,’’; after ‘‘devices’’ in paragraph (1)(A); vices’’ each place it appears; and and (3) by redesignating paragraphs (3), (4), and (3) by inserting ‘‘tobacco product,’’ in sub- (2) inserting a comma and ‘‘and tobacco (5) as paragraphs (4), (5), and (6), and insert- section (b) after ‘‘device,’’. products’’ after ‘‘devices’’. ing after paragraph (2) the following: (h) SECTION 705.—Section 705(b) (21 U.S.C. (m) EFFECTIVE DATE FOR NO-TOBACCO-SALE ‘‘(3) If the Secretary finds that a person 375(b)) is amended by inserting ‘‘tobacco ORDER AMENDMENTS.—The amendments made has committed repeated violations of restric- products,’’ after ‘‘devices,’’. by subsection (c), other than the amendment tions promulgated under section 906(d) at a (i) SECTION 709.—Section 709 (21 U.S. C. 379) made by paragraph (2) thereof, shall take ef- particular retail outlet then the Secretary is amended by inserting ‘‘or tobacco prod- fect only upon the promulgation of final reg- may impose a no-tobacco-sale order on that uct’’ after ‘‘device’’. ulations by the Secretary— person prohibiting the sale of tobacco prod- (j) SECTION 801.—Section 801 (21 U.S.C. 381) (1) defining the term ‘‘repeated violation’’, ucts in that outlet. A no-tobacco-sale order is amended— as used in section 303(f) of the Federal Food, may be imposed with a civil penalty under (1) by inserting ‘‘tobacco products,’’ after Drug, and Cosmetic Act (21 U.S.C. 333(f)) as paragraph (1).’’; ‘‘devices,’’ in subsection (a) the first time it amended by subsection (c), by identifying (4) by striking ‘‘assessed’’ the first time it appears; the number of violations of particular re- appears in subparagraph (A) of paragraph (4), (2) by inserting ‘‘or subsection (j) of sec- quirements over a specified period of time as redesignated, and inserting ‘‘assessed, or a tion 905’’ in subsection (a) after ‘‘section that constitute a repeated violation; no-tobacco-sale order may be imposed,’’; 510’’; and (2) providing for notice to the retailer of (5) by striking ‘‘penalty’’ in such subpara- (3) by striking ‘‘drugs or devices’’ each each violation at a particular retail outlet; graph and inserting ‘‘penalty, or upon whom time it appears in subsection (a) and insert- (3) providing that a person may not be a no-tobacco-order is to be imposed,’’; ing ‘‘drugs, devices, or tobacco products’’; charged with a violation at a particular re- (6) by inserting after ‘‘penalty,’’ in sub- (4) by inserting ‘‘tobacco product,’’ in sub- tail outlet unless the Secretary has provided paragraph (B) of paragraph (4), as redesig- section (e)(1) after ‘‘device,’’; notice to the retailer of all previous viola- nated, the following: ‘‘or the period to be (2) by redesignating paragraph (4) of sub- tions at that outlet; covered by a no-tobacco-sale order,’’; section (e) as paragraph (5) and inserting (4) establishing a period of time during (7) by adding at the end of such subpara- after paragraph (3), the following: which, if there are no violations by a par- graph the following: ‘‘A no-tobacco-sale ‘‘(4) Paragraph (1) does not apply to any to- ticular retail outlet, that outlet will not order permanently prohibiting an individual bacco product— considered to have been the site of repeated retail outlet from selling tobacco products ‘‘(A) which does not comply with an appli- violations when the next violation occurs; shall include provisions that allow the out- cable requirement of section 907 or 910; or and let, after a specified period of time, to re- ‘‘(B) which under section 906(f) is exempt (5) providing that good faith reliance on quest that the Secretary compromise, mod- from either such section. false identification does not constitute a vio- ify, or terminate the order.’’; This paragraph does not apply if the Sec- lation of any minimum age requirement for (8) by adding at the end of paragraph (4), as retary has determined that the exportation the sale of tobacco products. redesignated, the following: of the tobacco product is not contrary to the SEC. 103. CONSTRUCTION OF CURRENT REGULA- ‘‘(D) The Secretary may compromise, mod- public health and safety and has the ap- TIONS. ify, or terminate, with or without condi- proval of the country to which it is intended (a) IN GENERAL.—The final regulations pro- tions, any no-tobacco-sale order.’’; for export or the tobacco product is eligible mulgated by the Secretary in the August 28, (9) by striking ‘‘(3)(A)’’ in paragraph (5), as for export under section 802.’’. 1996, issue of the Federal Register (62 Red. resdesignated, and inserting ‘‘(4)(A)’’; (k) SECTION 802.—Section 802 (21 U.S.C. 382) Reg. 44615-44618) and codified at part 897 of (10) by inserting ‘‘or the imposition of a is amended— title 21, Code of Federal Regulations, are no-tobacco-sale order’’ after ‘‘penalty’’ the (1) by striking ‘‘device—’’ in subsection (a) hereby deemed to be lawful and to have been first 2 places it appears in such paragraph; and inserting ‘‘device or tobacco product—’’; lawfully promulgated by the Secretary under (11) by striking ‘‘issued.’’ in such para- (2) by striking ‘‘and’’ after the semicolon chapter IX and section 701 of the Federal graph and inserting ‘‘issued, or on which the in subsection (a)(1)(C); Food, Drug, and Cosmetic Act, as amended no-tobacco-sale order was imposed, as the (3) by striking subparagraph (C) of sub- by this Act, and not under chapter V of the case may be.’’; and section (a)(2) and all that follows in that sub- Federal Food, Drug, and Cosmetic Act. The (12) by striking ‘‘paragraph (4)’’ each place section and inserting the following: provisions of part 897 that are not in effect it appears in paragraph (6), as redesignated, ‘‘(C) is a banned device under section 516; on the date of enactment of this Act shall and inserting ‘‘paragraph (5)’’. or take effect as in such part or upon such later (d) SECTION 304.—Section 304 (21 U.S.C. 334) ‘‘(3) which, in the case of a tobacco prod- date as determined by the Secretary by is amended— uct— order. The Secretary shall amend the des- (1) by striking ‘‘and’’ before ‘‘(D)’’ in sub- ‘‘(A) does not comply with an applicable ignation of authority in such regulations in section (a)(2); requirement of section 907 or 910; or accordance with this subsection.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5045

(b) LIMITATION ON ADVISORY OPINIONS.—As (b) REQUIRED REDUCTIONS FOR CIGA- turer) based on the point estimates of the of the date of enactment of this Act, the fol- RETTES.—With respect to cigarettes, the re- percentage of young individuals reporting lowing documents issued by the Food and quired percentage reduction in underage use, use of a type of tobacco product (or, in the Drug Administration shall not constitute ad- as set forth in section 204, means— case of the manufacturer-specific surcharge, visory opinions under section 10.85(d)(1) of the use of a type of tobacco product of a title 21, Code of Federal Regulations, except Required Percentage Reduction as a Percentage manufacturer) from the annual performance Calendar Year After of Base Incidence Percentage in Underage Ciga- as they apply to tobacco products, and shall Date of Enactment rette Use survey. not be cited by the Secretary or the Food (2) CRITERIA FOR DEEMING POINT ESTIMATES and Drug Administration as binding prece- Years 3 and 4 15 percent CORRECT.—Point estimates under paragraph Years 5 and 6 30 percent dent. Years 7, 8, and 9 50 percent (1)(E) are deemed conclusively to be correct (1) The preamble to the proposed rule in Year 10 and thereafter 60 percent and accurate for calculating actual percent- the document entitled ‘‘Regulations Re- age reductions in underage use of a type of stricting the Sale and Distribution of Ciga- (c) REQUIRED REDUCTIONS FOR SMOKELESS tobacco product (or, in the case of the manu- rettes and Smokeless Tobacco Products to TOBACCO.—With respect to smokeless to- facturer-specific surcharge, the use of a type Protect Children and Adolescents’’ (60 Fed. bacco products, the required percentage re- of tobacco product of a particular manufac- Reg. 41314-41372 (August 11, 1995)). duction in underage use, as set forth in sec- turer) for the purpose of measuring compli- (2) The document entitled ‘‘Nicotine in tion 204, means— ance with percent reduction targets and cal- Cigarettes and Smokeless Tobacco Products culating surcharges provided that the preci- is a Drug and These Products Are Nicotine Required Percentage Reduction as a Percentage sion of estimates (based on sampling error) Calendar Year After of Base Incidence Percentage in Underage Delivery Devices Under the Federal Food, Date of Enactment Smokeless Tobacco Use of the percentage of young individuals re- Drug, and Cosmetic Act;; (60 Fed. Reg. 41453- porting use of a type of tobacco product (or, 41787 (August 11, 1995)). Years 3 and 4 12.5 percent in the case of the manufacturer-specific sur- Years 5 and 6 25 percent (3) The preamble to the final rule in the Years 7, 8, and 9 35 percent charge, the use of a type of tobacco product document entitled ‘‘Regulations Restricting Year 10 and thereafter 45 percent of a manufacturer) is such that the 95-per- the Sale and Distribution of Cigarettes and cent confidence interval around such point Smokeless Tobacco to Protect Children and SEC. 204. LOOK-BACK ASSESSMENT. estimates is no more than plus or minus 1 Adolescents’’ (61 Fed. Reg. 44396-44615 (Au- (a) ANNUAL PERFORMANCE SURVEY.—Begin- percent. gust 28, 1996)). ning no later than 1999 and annually there- (3) SURVEY DEEMED CORRECT, PROPER, AND (4) The document entitled ‘‘Nicotine in after the Secretary shall conduct a survey, ACCURATE.—A survey using the methodology Cigarettes and Smokeless Tobacco is a Drug in accordance with the methodology in sub- required by this subsection is deemed con- and These Products are Nicotine Delivery section (d)(1), to determine— clusively to be proper, correct, and accurate Devices Under the Federal Food, Drug, and (1) the percentage of all young individuals for purposes of this Act. Cosmetic Act; Jurisdictional Determina- who used a type of tobacco product within (4) SECRETARY MAY ADOPT DIFFERENT METH- tion;; (61 Fed. Reg. 44619-45318 (August 28, the past 30 days; and ODOLOGY.—The Secretary by notice and com- 1996)). (2) the percentage of young individuals who ment rulemaking may adopt a survey meth- identify each brand of each type of tobacco TITLE II—REDUCTIONS IN UNDERAGE odology that is different than the methodol- product as the usual brand of that type TOBACCO USE ogy described in paragraph (1) if the different smoked or used within the past 30 days. methodology is at least as statistically pre- Subtitle A—Underage Use (b) ANNUAL DETERMINATION.—The Sec- cise as that methodology. SEC. 201. FINDINGS. retary shall make an annual determination, (e) INDUSTRY-WIDE NON-ATTAINMENT SUR- The Congress finds the following: based on the annual performance survey con- CHARGES.— (1) Reductions in the underage use of to- ducted under subsection (a), of whether the (1) SECRETARY TO DETERMINE INDUSTRY- bacco products are critically important to required percentage reductions in underage WIDE NON-ATTAINMENT PERCENTAGE.—The the public health. use of tobacco products for a year have been Secretary shall determine the industry-wide (2) Achieving this critical public health achieved for the year involved. The deter- non-attainment percentage for cigarettes goal can be substantially furthered by in- mination shall be based on the annual per- and for smokeless tobacco for each calendar creasing the price of tobacco products to dis- cent prevalence of the use of tobacco prod- year. courage underage use if reduction targets are ucts, for the industry as a whole and of par- (2) NON-ATTAINMENT SURCHARGE FOR CIGA- not achieved and by creating financial incen- ticular manufacturers, by young individuals RETTES.—For each calendar year in which tives for manufacturers to discourage youth (as determined by the surveys conducted by the percentage reduction in underage use re- from using their tobacco products. the Secretary) for the year involved as com- quired by section 203b) is not attained, the (3) When reduction targets in underage use pared to the base incidence percentages. Secretary shall assess a surcharge on ciga- are not achieved on an industry-wide basis, (c) CONFIDENTIALITY OF DATA.—The Sec- rette manufacturers as follows: the price increases that will result from an retary may conduct a survey relating to to- bacco use involving minors. If the informa- industry-wide assessment will provide an ad- If the non-attainment The surcharge is: ditional deterrence to youth tobacco use. tion collected in the course of conducting percentage is: (4) Manufacturer-specific incentives that the annual performance survey results in the Not more than 5 percent $80,000,000 multiplied by the non-attainment will be imposed if reduction targets are not individual supplying the information or de- percentage met by a manufacturer provide a strong in- scribed in it to be identifiable, the informa- More than 5% but not more than 10% $400,000,000, plus $160,000,000 multiplied by centive for each manufacturer to make all tion may not be used for any purpose other the non-attainment percentage in excess of 5% efforts to discourage youth use of its brands than the purpose for which it was supplied but not in excess of 10% and ensure the effectiveness of the industry- unless that individual (or that individual’s More than 10% $1,200,000,000, plus $240,000,000 multiplied by the non-attainment percentage in excess of wide assessments. guardian) consents to its use for such other 10% SEC. 202. PURPOSE. purpose. The information may not be pub- More than 21.6% $4,000,000,000 This title is intended to ensure that, in the lished or released in any other form if the in- event that other measures contained in this dividual supplying the information or de- (3) NON-ATTAINMENT SURCHARGE FOR SMOKE- Act prove to be inadequate to produce sub- scribed in it is identifiable unless that indi- LESS TOBACCO.—For each year in which the stantial reductions in tobacco use by minors, vidual (or that individual’s guardian) con- percentage reduction in underage use re- tobacco companies will pay additional as- sents to its publication or release in other quired by section 203c) is not attained, the sessments. These additional assessments are form. Secretary shall assess a surcharge on smoke- designed to lower youth tobacco consump- (d) METHODOLGY.— less tobacco product manufacturers as fol- tion in a variety of ways: by triggering fur- (1) IN GENERAL.—The survey required by lows: ther increases in the price of tobacco prod- subsection (a) shall— ucts, by encouraging tobacco companies to (A) be based on a nationally representative If the non-attainment percentage is: The surcharge is: work to meet statutory targets for reduc- sample of young individuals; tions in youth tobacco consumption, and (B) be a household-based, in person survey Not more than 5 percent $8,000,000 multiplied by the non-attainment providing support for further reduction ef- (which may include computer-assisted tech- percentage More than 5% but not forts. nology); more than 10% $40,000,000, plus $16,000,000 multiplied by the SEC. 203. GOALS FOR REDUCING UNDERAGE TO- (C) measure use of each type of tobacco non-attainment percentage in excess of 5% but BACCO USE. product within the past 30 days; not in excess of 10% More than 10% $120,000,000, plus $24,000,000 multiplied by (a) GOALS.—As part of a comprehensive na- (D) identify the usual brand of each type of the non-attainment percentage in excess of 10% tional tobacco control policy, the Secretary, tobacco product used within the past 30 days; More than 21.6% $400,000,000 working in cooperation with State, Tribal, and and local governments and the private sec- (E) permit the calculation of the actual (4) STRICT LIABILITY; JOINT AND SEVERAL LI- tor, shall take all actions under this Act nec- percentage reductions in underage use of a ABILITY.—Liability for any surcharge im- essary to ensure that the required percent- type of tobacco product (or, in the case of posed under subsection (e) shall be— age reductions in underage use of tobacco the manufacturer-specific surcharge, the use (A) strict liability; and products set forth in this title are achieved. of a type of tobacco product of a manufac- (B) joint and several liability—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5046 CONGRESSIONAL RECORD — SENATE May 19, 1998

(i) among all cigarette manufacturers for date of the enactment of this Act or a manu- (i) BUSINESS EXPENSE DEDUCTION.—Any surcharges imposed under subsection (e)(2); facturer for which the baseline level as surcharge paid by a tobacco product manu- and measured by the annual performance survey facturer under this section shall not be de- (ii) among all smokeless tobacco manufac- is equal to or less than the de minimis level ductible as an ordinary and necessary busi- turers for surcharges imposed under sub- described in paragraph (4), the base incidence ness expense or otherwise under the Internal section (e)(3). percentage is the de minimis level, and the re- Revenue Code of 1986. (5) SURCHARGE LIABILITY AMONG MANUFAC- quired percentage reduction in underage use (j) APPEAL RIGHTS.—The amount of any TURERS.—A tobacco product manufacturer for a type of tobacco product with respect to surcharge is committed to the sound discre- shall be liable under this subsection to one a manufacturer for a year shall be deemed to tion of the Secretary and shall be subject to or more other manufacturers if the plaintiff be the number of percentage points nec- judicial review by the United States Court of tobacco product manufacturer establishes by essary to reduce the actual percent preva- Appeals for the District of Columbia Circuit, a preponderance of the evidence that the de- lence of young individuals identifying a based on the arbitrary and capricious stand- fendant tobacco product manufacturer, brand of such tobacco product of such manu- ard of section 706(2)(A) of title 5, United through its acts or omissions, was respon- facturer as the usual brand smoked or used States Code. Notwithstanding any other pro- sible for a disproportionate share of the non- for such year to the de minimis level. visions of law, no court shall have authority attainment surcharge as compared to the re- (6) SURCHARGE AMOUNT.— to stay any surcharge payments due the Sec- sponsibility of the plaintiff manufacturer. (A) IN GENERAL.—If the Secretary deter- retary under this Act pending judicial re- (6) EXEMPTIONS FOR SMALL MANUFACTUR- mines that the required percentage reduc- view. ERS.— tion in use of a type of tobacco product has (k) RESPONSIBILITY FOR AGENTS.—In any (A) ALLOCATION BY MARKET SHARE.—The not been achieved by such manufacturer for action brought under this subsection, a to- Secretary shall make such allocations ac- a year, the Secretary shall impose a sur- bacco product manufacturer shall be held re- cording to each manufacturer’s share of the charge on such manufacturer under this sponsible for any act or omission of its attor- domestic cigarette or domestic smokeless to- paragraph. neys, advertising agencies, or other agents bacco market, as appropriate, in the year for (B) AMOUNT.—The amount of the manufac- that contributed to that manufacturer’s re- which the surcharge is being assessed, based turer-specific surcharge for a type of tobacco sponsibility for the surcharge assessed under on actual Federal excise tax payments. product for a year under this paragraph is this section. (B) EXEMPTION.—In any year in which a $1,000, multiplied by the number of young in- SEC. 205. DEFINITIONS. surcharge is being assessed, the Secretary dividuals for which such firm is in non- shall exempt from payment any tobacco In this subtitle: compliance with respect to its target reduc- (1) BASE INCIDENCE PERCENTAGE.—The term product manufacturer with less than 1 per- tion level. cent of the domestic market share for a spe- ‘‘base incidence percentage’’ means, with re- (C) DETERMINATION OF NUMBER OF YOUNG IN- cific category of tobacco product unless the spect to each type of tobacco product, the DIVIDUALS.—For purposes of subparagraph Secretary finds that the manufacturer’s percentage of young individuals determined (B) the number of young individuals for to have used such tobacco product in the products are used by underage individuals at which a manufacturer is in noncompliance a rate equal to or greater than the manufac- first annual performance survey for 1999. for a year shall be determined by the Sec- (2) MANUFACTURERS BASE INCIDENCE PER- turer’s total market share for the type of to- retary from the annual performance survey bacco product. CENTAGE.—The term ‘‘manufacturers base in- and shall be calculated based on the esti- (f) MANUFACTURER-SPECIFIC SURCHARGES.— cidence percentage’’ is, with respect to each mated total number of young individuals in (1) REQUIRED PERCENTAGE REDUCTIONS.— type of tobacco product, the percentage of Each manufacturer which manufactured a such year and the actual percentage preva- young individuals determined to have identi- brand or brands of tobacco product on or be- lence of young individuals identifying a fied a brand of such tobacco product of such fore the date of the enactment of this Act brand of such tobacco product of such manu- manufacturer as the usual brand smoked or shall reduce the percentage of young individ- facturer as the usual brand smoked or used used in the first annual performance survey uals who use such manufacturer’s brand or in such year as compared to such manufac- for 1999. brands as their usual brand in accordance turer’s target reduction level for the year. (3) YOUNG INDIVIDUALS.—The term ‘‘young with the required percentage reductions de- (7) DE MINIMIS RULE.—The Secretary may individuals’’ means individuals who are over scribed under subsections (b) (with respect to not impose a surcharge on a manufacturer 11 years of age and under 18 years of age. cigarettes) and (c ) (with respect to smoke- for a type of tobacco product for a year if the (4) CIGARETTE MANUFACTURERS.—The term less tobacco). Secretary determines that actual percent ‘‘cigarette manufacturers’’ means manufac- (2) APPLICATION TO LESS POPULAR BRANDS.— prevalence of young individuals identifying turers of cigarettes sold in the United Each manufacturer which manufactured a that manufacturer’s brands of such tobacco States. brand or brands of tobacco product on or be- product as the usual products smoked or (5) NON-ATTAINMENT PERCENTAGE FOR CIGA- fore the date of the enactment of this Act for used for such year is less than 1 percent. RETTES.—The term ‘‘non-attainment per- which the base incidence percentage is equal (g) SURCHARGES TO BE ADJUSTED FOR IN- centage for cigarettes’’ means the number of to or less than the de minimis level shall en- FLATION.— percentage points yielded— sure that the percent prevalence of young in- (1) IN GENERAL.—Beginning with the fourth (A) for a calendar year in which the per- dividuals who use the manufacturer’s to- calendar year after the date of enactment of cent incidence of underage use of cigarettes bacco products as their usual brand remains this Act, each dollar amount in the tables in is less than the base incidence percentage, by equal to or less than the de minimis level de- subsections (e)(2), (e)(3), and (f)(6)(B) shall be subtracting— scribed in paragraph (4). increased by the inflation adjustment. (i) the percentage by which the percent in- (3) NEW ENTRANTS.—Each manufacturer of (2) INFLATION ADJUSTMENT.—For purposes cidence of underage use of cigarettes in that a tobacco product which begins to manufac- of paragraph (1), the inflation adjustment for year is less than the base incidence percent- ture a tobacco product after the date of the any calendar year is the percentage (if any) age, from enactment of this Act shall ensure that the by which— (ii) the required percentage reduction ap- percent prevalence of young individuals who (A) the CPI for the preceding calendar plicable in that year; and use the manufacturer’s tobacco products as year, exceeds (B) for a calendar year in which the per- their usual brand is equal to or less than the (B) the CPI for the calendar year 1998. cent incidence of underage use of cigarettes de minimis level. (3) CPI.—For purposes of paragraph (2), the is greater than the base incidence percent- (4) DE MINIMIS LEVEL DEFINED.—The de CPI for any calendar year is the average of age, adding— minimis level is equal to 1 percent prevalence the Consumer Price Index for all-urban con- (i) the percentage by which the percent in- of the use of each manufacturer’s brands of sumers published by the Department of cidence of underage use of cigarettes in that tobacco product by young individuals (as de- Labor. year is greater than the base incidence per- termined on the basis of the annual perform- (4) ROUNDING.—If any increase determined centage; and ance survey conducted by the Secretary) for under paragraph (1) is not a multiple of (ii) the required percentage reduction ap- a year. $1,000, the increase shall be rounded to the plicable in that year. (5) TARGET REDUCTION LEVELS.— nearest multiple of $1,000. (6) NON-ATTAINMENT PERCENTAGE FOR (A) EXISTING MANUFACTURERS.— For pur- (h) METHOD OF SURCHARGE ASSESSMENT.— SMOKELESS TOBACCO PRODUCTS.—The term poses of this section, the target reduction The Secretary shall assess a surcharge for a ‘‘non-attainment percentage for smokeless level for each type of tobacco product for a specific calendar year on or before May 1 of tobacco products’’ means the number of per- year for a manufacturer is the product of the the subsequent calendar year. Surcharge centage points yielded— required percentage reduction for a type of payments shall be paid on or before July 1 of (A) for a calendar year in which the per- tobacco product for a year and the manufac- the year in which they are assessed. The Sec- cent incidence of underage use of smokeless turers base incidence percentage for such to- retary may establish, by regulation, interest tobacco products is less than the base inci- bacco product. at a rate up to 3 times the prevailing prime dence percentage, by subtracting— (B) NEW MANUFACTURERS; MANUFACTURERS rate at the time the surcharge is assessed, (i) the percentage by which the percent in- WITH LOW BASE INCIDENCE PERCENTAGES.— and additional charges in an amount up to 3 cidence of underage use of smokeless tobacco With respect to a manufacturer which begins times the surcharge, for late payment of the products in that year is less than the base in- to manufacture a tobacco product after the surcharge. cidence percentage, from

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5047 (ii) the required percentage reduction ap- license privileges, or community service re- under section 1926 of the Public Health Serv- plicable in that year; and quirements, for underage youths who pos- ice Act (42 U.S.C. 300x—26) as such section (B) for a calendar year in which the per- sess, purchase, or attempt to purchase to- was in effect before its repeal by this Act cent incidence of underage use of smokeless bacco products. through the third fiscal year after the date tobacco products is greater than the base in- (iii) JUDICIAL REVIEW.—Judicial review pro- of enactment of this Act; cidence percentage, by adding— cedures for an action of the State suspend- (B) at least 80 percent in the fourth fiscal (i) the percentage by which the percent in- ing, revoking, denying, or refusing to renew year after such date; cidence of underage use of smokeless tobacco any license under its program. (C) at least 85 percent in the fifth and sixth products in that year is greater than the (c) ENFORCEMENT.— fiscal years after such date; and base incidence percentage; and (1) UNDERTAKING.—Each State that re- (D) at least 90 percent in every fiscal year (ii) the required percentage reduction ap- ceives a grant under this subtitle shall un- beginning with the seventh fiscal year after plicable in that year. dertake to enforce compliance with its to- such date, bacco retailing licensing program in a man- (7) SMOKELESS TOBACCO PRODUCT MANUFAC- an amount equal to one percentage point for ner that can reasonably be expected to re- TURERS.—The term ‘‘smokeless tobacco prod- each percentage point by which the State duce the sale and distribution of tobacco uct manufacturers’’ means manufacturers of failed to meet the percentage set forth in smokeless tobacco products sold in the products to individuals under 18 years of age. this subsection for that year from the United States. If the Secretary determines that a State is amount otherwise payable under this sub- not enforcing the law in accordance with Subtitle B—State Retail Licensing and title for that fiscal year. Enforcement Incentives such an undertaking, the Secretary may withhold a portion of any unobligated funds (e) RELEASE AND DISBURSEMENT.— SEC. 231. STATE RETAIL LICENSING AND EN- (1) Upon notice from the Secretary that an FORCEMENT BLOCK GRANTS. under this section otherwise payable to that State. amount payable under this section has been (a) IN GENERAL.—The Secretary shall make ordered withheld under subsection (d), a (2) ACTIVITIES AND REPORTS REGARDING EN- State retail licensing and enforcement block State may petition the Secretary for a re- FORCEMENT.—A State that receives a grant grants in accordance with the provisions of lease and disbursement of up to 75 percent of this section. There are authorized to be ap- under this subtitle shall— (A) conduct monthly random, unannounced the amount withheld, and shall give timely propriated to the Secretary from the Na- written notice of such petition to the attor- tional Tobacco Trust Fund $200,000,000 for inspections of sales or distribution outlets in the State to ensure compliance with a law ney general of that State and to all tobacco each fiscal year to carry out the provisions product manufacturers. of this section. prohibiting sales of tobacco products to indi- (2) The agency shall conduct a hearing on (b) REQUIREMENTS.— viduals under 18 years of age; such a petition, in which the attorney gen- (1) ESTABLISHMENT.—The Secretary shall (B) annually submit to the Secretary a re- provide a block grant, based on population, port describing in detail— eral of the State may participate and be under this subtitle to each State that has in (i) the activities carried out by the State heard. effect a law that— to enforce underage access laws during the (3) The burden shall be on the State to (A) provides for the licensing of entities fiscal year; prove, by a preponderance of the evidence, engaged in the sale or distribution of tobacco (ii) the extent of success the State has that the release and disbursement should be products directly to consumers; achieved in reducing the availability of to- made. The Secretary’s decision on whether (B) makes it illegal to sell or distribute to- bacco products to individuals under the age to grant such a release, and the amount of bacco products to individuals under 18 years of 18 years; any such disbursement, shall be based on of age; and (iii) how the inspections described in sub- whether— (C) meets the standards described in this paragraph (A) were conducted and the meth- (A) the State presents scientifically sound section. ods used to identify outlets, with appropriate survey data showing that the State is mak- (2) STATE AGREEMENT REQUIRED.—In order protection for the confidentiality of informa- ing significant progress toward reducing the to receive a block grant under this section, a tion regarding the timing of inspections and use of tobacco products by individuals who State— other investigative techniques whose effec- have not attained the age of 18 years; (A) shall enter into an agreement with the tiveness depends on continued confidential- (B) the State presents scientifically-based Secretary to assume responsibilities for the ity; and data showing that it has progressively de- implementation and enforcement of a to- (iv) the identity of the single State agency creased the availability of tobacco products bacco retailer licensing program; designated by the Governor of the State to to such individuals; (B) shall prohibit retailers from selling or be responsible for the implementation of the (C) the State has acted in good faith and in otherwise distributing tobacco products to requirements of this section. full compliance with this Act, and any rules individuals under 18 years of age in accord- (3) MINIMUM INSPECTION STANDARDS.—In- or regulations promulgated under this Act; ance with the Youth Access Restrictions reg- spections conducted by the State shall be (D) the State provides evidence that it ulations promulgated by the Secretary (21 conducted by the State in such a way as to plans to improve enforcement of these laws C.F.R. 897.14(a) and (b)); ensure a scientifically sound estimate (with in the next fiscal year; and (C) shall make available to appropriate a 95 percent confidence interval that such es- (E) any other relevant evidence. Federal agencies designated by the Sec- timates are accurate to within plus or minus (4) A State is entitled to interest on any retary requested information concerning re- 3 percentage points), using an accurate list withheld amount released at the average tail establishments involved in the sale or of retail establishments throughout the United States 52-Week Treasury Bill rate for distribution of tobacco products to consum- State. Such inspections shall cover a range the period between the withholding of the ers; and of outlets (not preselected on the basis of amount and its release. (D) shall establish to the satisfaction of prior violations) to measure overall levels of (5) Any State attorney general or tobacco the Secretary that it has a law or regulation compliance as well as to identify violations. product manufacturer aggrieved by a final that includes the following: The sample must reflect the distribution of decision on a petition filed under this sub- (i) LICENSURE; SOURCES; AND NOTICE.—A re- the population under the age of 18 years section may seek judicial review of such de- quirement for a State license for each retail throughout the State and the distribution of cision within 30 days in the United States establishment involved in the sale or dis- the outlets throughout the State accessible Court of Appeals for the District of Columbia tribution of tobacco products to consumers. to youth. Except as provided in this para- Circuit. Unless otherwise specified in this A requirement that a retail establishment graph, any reports required by this para- Act, judicial review under this section shall may purchase tobacco products only from graph shall be made public. As used in this be governed by sections 701 through 706 of Federally-licensed manufacturers, import- paragraph, the term ‘‘outlet’’ refers to any title 5, United States Code. ers, or wholesalers. A program under which location that sells at retail or otherwise dis- (6) No stay or other injunctive relief en- notice is provided to such establishments tributes tobacco products to consumers, in- joining a reduction in a State’s allotment and their employees of all licensing require- cluding to locations that sell such products pending appeal or otherwise may be granted ments and responsibilities under State and over-the-counter. by the Secretary or any court. Federal law relating to the retail distribu- (d) NONCOMPLIANCE.— (f) NON-PARTICIPATING STATES LICENSING tion of tobacco products. (1) INSPECTIONS.—The Secretary shall with- REQUIREMENTS.—For retailers in States (ii) PENALTIES.— hold from any State that fails to meet the which have not established a licensing pro- (I) CRIMINAL.—Criminal penalties for the requirements of subsection (b) in any cal- gram under subsection (a), the Secretary sale or distribution of tobacco products to a endar year an amount equal to 5 percent of shall promulgate regulations establishing consumer without a license. the amount otherwise payable under this Federal retail licensing for retailers engaged (II) CIVIL.—Civil penalties for the sale or subtitle to that State for the next fiscal in tobacco sales to consumers in those distribution of tobacco products in violation year. States. The Secretary may enter into agree- of State law, including graduated fines and (2) COMPLIANCE RATE.—The Secretary shall ments with States for the enforcement of suspension or revocation of licenses for re- withhold from any State that fails to dem- those regulations. A State that enters into peated violations. onstrate a compliance rate of— such an agreement shall receive a grant (III) OTHER.—Other programs, including (A) at least the annual compliance targets under this section to reimburse it for costs such measures as fines, suspension of driver’s that were negotiated with the Secretary incurred in carrying out that agreement.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5048 CONGRESSIONAL RECORD — SENATE May 19, 1998

(g) DEFINITION.—For the purposes of this ‘‘(2) Not more than 10 percent of the uation of any program or service carried out section, the term ‘‘first applicable fiscal amount available for any fiscal year under pursuant to the program involved. The Sec- year’’ means the first fiscal year beginning subsection (a)(1) shall be available to the retary may provide such technical assistance after the fiscal year in which funding is Secretary to carry out activities under sec- or training directly, through contract, or made available to the States under this sec- tion 1981D(d). through grants. tion. ‘‘SEC. 1981A. ALLOTMENTS. ‘‘(b) PROVISION OF SUPPLIES AND SERVICE IN SEC. 232. BLOCK GRANTS FOR COMPLIANCE BO- ‘‘(a) AMOUNT.— LIEU OF GRANT FUNDS.—The Secretary, at NUSES. ‘‘(1) IN GENERAL.—From the amount made the request of a State, may reduce the (a) IN GENERAL.—The Secretary shall make available under section 1981 for any fiscal amount of payments to the State under sec- block grants to States determined to be eli- year the Secretary, acting through the Di- tion 1981A(c) by— gible under subsection (b) in accordance with rector of the Centers for Disease Control and ‘‘(1) the fair market value of any supplies the provisions of this section. There are au- Prevention (referred to in this subpart as the or equipment furnished by the Secretary to thorized to be appropriated to the Secretary ‘Director’), shall allot to each State an the State; and from the National Tobacco Trust Fund amount based on a formula to be developed ‘‘(2) the amount of the pay, allowances, $100,000,000 for each fiscal year to carry out by the Secretary that is based on the to- and travel expenses of any officer or em- the provisions of this section. bacco prevention and cessation needs of each ployee of the Federal Government when de- (b) ELIGIBLE STATES.—To be eligible to re- State including the needs of the State’s mi- tailed to the State and the amount of any ceive a grant under subsection (a), a State nority populations. other costs incurred in connection with the shall— ‘‘(2) MINIMUM AMOUNT.—In determining the detail of such officer or employee; (1) prepare and submit to the Secretary an amount of allotments under paragraph (1), when the furnishing of such supplies or application, at such time, in such manner, the Secretary shall ensure that no State re- equipment or the detail of such an officer or and containing such information as the Sec- ceives less than 1⁄2 of 1 percent of the amount employee is for the convenience of and at the retary may require; and available under section 1981(a) for the fiscal request of the State and for the purpose of (2) with respect to the year involved, dem- year involved. conducting activities described in section onstrate to the satisfaction of the Secretary ‘‘(b) REALLOTMENT.—To the extent that 1981C. The amount by which any payment is that fewer than 5 percent of all individuals amounts made available under section 1981 so reduced shall be available for payment by under 18 years of age who attempt to pur- for a fiscal year are not otherwise allotted to the Secretary of the costs incurred in fur- chase tobacco products in the State in such States because— nishing the supplies or equipment or in de- year are successful in such purchase. ‘‘(1) 1 or more States have not submitted tailing the personnel, on which reduction of (c) PAYOUT.— an application or description of activities in the payment is based, and the amount shall (1) PAYMENT TO STATE.—If one or more accordance with section 1981D for the fiscal States are eligible to receive a grant under be deemed to be part of the payment and year; shall be deemed to have been paid to the this section for any fiscal year, the amount ‘‘(2) 1 or more States have notified the Sec- payable for that fiscal year shall be appor- State. retary that they do not intend to use the full ‘‘SEC. 1981C. PERMITTED USERS OF CESSATION tioned among such eligible States on the amount of their allotment; or basis of population. BLOCK GRANTS AND OF COMMU- ‘‘(3) the Secretary has determined that the NITY-BASED PREVENTION BLOCK (2) YEAR IN WHICH NO STATE RECEIVES State is not in compliance with this subpart, GRANTS. GRANT.—If in any fiscal year no State is eli- and therefore is subject to penalties under ‘‘(a) TOBACCO USE CESSATION ACTIVITIES.— gible to receive a grant under this section, section 1981D(g); Except as provided in subsections (d) and (e), then the Secretary may use not more than 25 amounts described in subsection (a)(1) may percent of the amount appropriated to carry such excess amount shall be reallotted be used for the following: out this section for that fiscal year to sup- among each of the remaining States in pro- ‘‘(1) Evidence-based cessation activities de- port efforts to improve State and local en- portion to the amount otherwise allotted to scribed in the plan of the State, submitted in forcement of laws regulating the use, sale, such States for the fiscal year involved with- accordance with section 1981D, including— and distribution of tobacco products to indi- out regard to this subsection. ‘‘(A) evidence-based programs designed to viduals under the age of 18 years. ‘‘(c) PAYMENTS.— ‘‘(1) IN GENERAL.—The Secretary, acting assist individuals, especially young people (3) AMOUNTS AVAILABLE WITHOUT FISCAL through the Director of the Centers for Dis- and minorities who have been targeted by to- YEAR LIMITATION.—Any amount appropriated bacco product manufacturers, to quit their under this section remaining unexpended and ease Control and Prevention, shall utilize use of tobacco products; unobligated at the end of a fiscal year shall the funds made available under this section ‘‘(B) training in cessation intervention remain available for obligation and expendi- to make payments to States under allot- methods for health plans and health profes- ture in the following fiscal year. ments under this subpart as provided for under section 203 of the Intergovernmental sionals, including physicians, nurses, den- SEC. 233. CONFORMING CHANGE. Cooperation Act of 1968. tists, health educators, public health profes- Section 1926 of the Public Health Service ‘‘(2) FEDERAL GRANTEES.—From amounts sionals, and other health care providers; Act (42 U.S.C. 300x—26) is hereby repealed. available under section 1981(b)(2), the Sec- ‘‘(C) programs to encourage health insurers Subtitle C—Tobacco Use Prevention and retary may make grants, or supplement ex- and health plans to provide coverage for evi- Cessation Initiatives isting grants, to entities eligible for funds dence-based tobacco use cessation interven- SEC. 261. TOBACCO USE PREVENTION AND CES- under the programs described in section tions and therapies, except that the use of SATION INITIATIVES. 1981C(d)(1) and (10) to enable such entities to any funds under this clause to offset the cost Title XIX of the Public Health Service Act carry out smoking cessation activities under of providing a smoking cessation benefit (42 U.S.C. 300w et seq.) is amended by adding this subpart, except not less than 25 percent shall be on a temporary demonstration basis at the end the following: of this amount shall be used for the program only; ‘‘PART D—TOBACCO USE PREVENTION AND described in 1981C(d)(6). ‘‘(D) culturally and linguistically appro- CESSATION INITIATIVES ‘‘(3) AVAILABILITY OF FUNDS.—Any amount priate programs targeted toward minority ‘‘SUBPART I—CESSATION AND COMMUNITY- paid to a State for a fiscal year under this and low-income individuals, individuals re- BASED PREVENTION BLOCK GRANTS subpart and remaining unobligated at the siding in medically underserved areas, unin- ‘‘SEC. 1981. FUNDING FROM TOBACCO SETTLE- end of such year shall remain available to sured individuals, and pregnant women; MENT TRUST FUND. such State for the next fiscal year for the ‘‘(E) programs to encourage employer- ‘‘(a) IN GENERAL.—From amounts con- purposes for which such payment was made. based wellness programs to provide evidence- tained in the Public Health Allocation Ac- ‘‘(d) REGULATIONS.—Not later than 9 based tobacco use cessation intervention and count under section 451(b)(2)(A) and (C) of months after the date of enactment of this therapies; and the National Tobacco Policy and Youth part, the Secretary shall promulgate regula- ‘‘(F) programs that target populations Smoking Reduction Act for a fiscal year, tions to implement this subpart. This sub- whose smoking rate is disproportionately there are authorized to be appropriated part shall take effect regardless of the date high in comparison to the smoking rate pop- (under subsection (d) of such section) to on which such regulations are promulgated. ulation-wide in the State. carry out this subpart— ‘‘SEC. 1981B. TECHNICAL ASSISTANCE AND PRO- ‘‘(2) Planning, administration, and edu- (1) for cessation activities, the amounts ap- VISION OF SUPPLIES AND SERVICES cational activities related to the activities propriated under section 451 (b)(2)(A); and IN LIEU OF FUNDS. described in paragraph (1). (2) for prevention and education activities, ‘‘(a) TECHNICAL ASSISTANCE.—The Sec- ‘‘(3) The monitoring and evaluation of ac- the amounts appropriated under section 451 retary, acting through the Director of the tivities carried out under paragraphs (1) and (b)(2)(C). Centers for Disease Control and Prevention, (2), and reporting and disseminating result- ‘‘(b) NATIONAL ACTIVITIES.— shall, without charge to a State receiving an ing information to health professionals and ‘‘(1)Not more than 10 percent of the allotment under section 1981A, provide to the public. amount made available for any fiscal year such State (or to any public or nonprofit pri- ‘‘(4) Targeted pilot programs with evalua- under subsection (a) shall be made available vate entity within the State) technical as- tion components to encourage innovation to the Secretary to carry out activities sistance and training with respect to the and experimentation with new methodolo- under section 1981B and 1981D(d). planning, development, operation, and eval- gies.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5049

‘‘(b) STATE AND COMMUNITY ACTION ACTIVI- under title XIX of the Public Health Service cluding physicians, nurses, dentists, health TIES.—Except as provided in subsections (d) Act (42 U.S.C. 300w et seq.); educators, public health professionals, and and (e), amounts described in subsection ‘‘(9) the Medicaid program under title XIX other health care providers; (a)(2) may be used for the following: of the Social Security Act (42 U.S.C. 1396 et ‘‘(D) shall ensure access to tobacco use ces- ‘‘(1) Evidence-based activities for tobacco seq.); and sation programs for rural and underserved use prevention and control described in the ‘‘(10) programs administered by the De- populations; plan of the State, submitted in accordance partment of Defense and the Department of ‘‘(E) shall recognize that some individuals with section 1981D, including— Veterans Affairs. may require more than one attempt for suc- ‘‘(A) State and community initiatives; ‘‘(d) LIMITATION.—A State may not use cessful cessation; and ‘‘(B) community-based prevention pro- amounts paid to the State under section ‘‘(F) shall be tailored to the needs of spe- grams, similar to programs currently funded 1981A(c) to— cific populations, including minority popu- by NIH; ‘‘(1) make cash payments except with ap- lations; and ‘‘(C) programs focused on those popu- propriate documentation to intended recipi- ‘‘(2) with respect to State and community- lations within the community that are most ents of tobacco use cessation services; based prevention activities described in sec- at risk to use tobacco products or that have ‘‘(2) fund educational, recreational, or tion 1981C(c), shall specify the activities au- been targeted by tobacco advertising or mar- health activities not based on scientific evi- thorized under such section that the State keting; dence that the activity will prevent smoking intends to carry out. ‘‘(D) school programs to prevent and re- or lead to success of cessation efforts ‘‘(c) CERTIFICATION.—The certification re- duce tobacco use and addiction, including ‘‘(3) purchase or improve land, purchase, ferred to in subsection (a)(3) shall be consist- school programs focused in those regions of construct, or permanently improve (other ent with the certification required under sec- the State with high smoking rates and tar- than minor remodeling) any building or tion 1905(c), except that geted at populations most at risk to start other facility, or purchase major medical ‘‘(1) the State shall agree to expend pay- smoking; equipment; ments under section 1981A(c) only for the ac- ‘‘(E) culturally and linguistically appro- ‘‘(4) satisfy any requirement for the ex- tivities authorized in section 1981C; priate initiatives targeted towards minority penditure of non-Federal funds as a condi- ‘‘(2) paragraphs (9) and (10) of such section and low-income individuals, individuals re- tion of the receipt of Federal funds; or shall not apply; and siding in medically underserved areas, and ‘‘(5) provide financial assistance to any en- ‘‘(3) the State is encouraged to establish an women of child-bearing age; tity other than a public or nonprofit private advisory committee in accordance with sec- ‘‘(F) the development and implementation entity or a private entity consistent with tion 1981E. ‘‘(d) REPORTS, DATA, AND AUDITS.—The pro- of tobacco-related public health and health subsection (b)(1)(C). visions of section 1906 shall apply with re- promotion campaigns and public policy ini- This subsection shall not apply to the sup- spect to a State that receives payments tiatives; port of targeted pilot programs that use in- under section 1981A(c) and be applied in a ‘‘(G) assistance to local governmental enti- novative and experimental new methodolo- manner consistent with the manner in which ties within the State to conduct appropriate gies and include an evaluation component. such provisions are applied to a State under anti-tobacco activities. ‘‘(e) ADMINISTRATION.—Not more than 5 part, except that the data sets referred to in ‘‘(H) strategies to ensure that the State’s percent of the allotment of a State for a fis- section 1905(a)(2) shall be developed for uni- smoking prevention activities include mi- cal year under this subpart may be used by formly defining levels of youth and adult use nority, low-income, and other undeserved the State to administer the funds paid to the of tobacco products, including uniform data populations; and State under section 1981A(c). The State shall for racial and ethnic groups, for use in the ‘‘(I) programs that target populations pay from non-Federal sources the remaining reports required under this subpart. whose smoking rate is disproportionately costs of administering such funds. ‘‘(e) WITHHOLDING.—The provisions of 1907 high in comparison to the smoking rate pop- ‘‘SEC. 1981D. ADMINISTRATIVE PROVISIONS. shall apply with respect to a State that re- ulation-wide in the State. ‘‘(a) APPLICATION.—The Secretary may ceives payments under section 1981A(c) and ‘‘(2) Planning, administration, and edu- make payments under section 1981A(c) to a be applied in a manner consistent with the cational activities related to the activities State for a fiscal year only if— manner in which such provisions are applied described in paragraph (1). ‘‘(1) the State submits to the Secretary an to a State under part A. ‘‘(3) The monitoring and evaluation of ac- application, in such form and by such date as ‘‘(f) NONDISCRIMINATION.—The provisions of 1908 shall apply with respect to a State that tivities carried out under paragraphs (1) and the Secretary may require, for such pay- receives payments under section 1981A(c) and (2), and reporting and disseminating result- ments; be applied in a manner consistent with the ing information to health professionals and ‘‘(2) the application contains a State plan manner in which such provisions are applied the public. prepared in a manner consistent with section to a State under part A. ‘‘(4) Targeted pilot programs with evalua- 1905(b) and in accordance with tobacco-relat- tion components to encourage innovation ‘‘(g) CRIMINAL PENALTIES.—The provisions ed guidelines promulgated by the Secretary; of 1909 shall apply with respect to a State and experimentation with new methodolo- ‘‘(3) the application contains a certifi- gies. that receives payments under section cation that is consistent with the certifi- 1981A(c) and be applied in a manner consist- ‘‘(c) COORDINATION.—Tobacco use cessation cation required under section 1905(c); and ent with the manner in which such provi- and community-based prevention activities ‘‘(4) the application contains such assur- sions are applied to a State under part A. permitted under subsections (b) and (c) may ances as the Secretary may require regard- ‘‘SEC. 1981E. STATE ADVISORY COMMITTEE. be conducted in conjunction with recipients ing the compliance of the State with the re- ‘‘(a) IN GENERAL.—For purposes of sections of other Federally—funded programs within quirements of this subpart (including assur- 1981D(c)(3), an advisory committee is in ac- the State, including— ances regarding compliance with the agree- cordance with this section if such committee ‘‘(1) the special supplemental food program ments described in subsection (c)). meets the conditions described in this sub- under section 17 of the Child Nutrition Act of ‘‘(b) STATE PLAN.—A State plan under sub- section. 1966 (42 U.S.C. 1786); section (a)(2) shall be developed in a manner ‘‘(b) DUTIES.—The recommended duties of ‘‘(2) the Maternal and Child Health Serv- consistent with the plan developed under the committee are— ices Block Grant program under title V of section 1905(b) except that such plan— ‘‘(1) to hold public hearings on the State the Social Security Act (42 U.S.C. 701 et ‘‘(1) with respect to activities described in plans required under sections 1981D; and seq.); section 1981C(b)— ‘‘(2) to make recommendations under this ‘‘(3) the State Children’s Health Insurance ‘‘(A) shall provide for tobacco use cessation subpart regarding the development and im- Program of the State under title XXI of the intervention and treatment consistent with plementation of such plans, including rec- Social Security Act (42 U.S.C. 13397aa et the tobacco use cessation guidelines issued ommendations on— seq.); by the Agency for Health Care Policy and ‘‘(A) the conduct of assessments under the ‘‘(4) the school lunch program under the Research, or another evidence-based guide- plans; National School Lunch Act (42 U.S.C. 1751 et line approved by the Secretary, or treat- ‘‘(B) which of the activities authorized in seq.); ments using drugs, human biological prod- section 1981C should be carried out in the ‘‘(5) an Indian Health Service Program; ucts, or medical devices approved by the State; ‘‘(6) the community, migrant, and home- Food and Drug Administration, or otherwise ‘‘(C) the allocation of payments made to less health centers program under section 330 legally marketed under the Federal Food, the State under section 1981A(c); of the Public Health Service Act (42 U.S.C. Drug and Cosmetic Act for use as tobacco ‘‘(D) the coordination of activities carried 254b); use cessation therapies or aids; out under such plans with relevant programs ‘‘(7) state-initiated smoking cessation pro- ‘‘(B) may, to encourage innovation and ex- of other entities; and grams that include provisions for reimburs- perimentation with new methodologies, pro- ‘‘(E) the collection and reporting of data in ing individuals for medications or thera- vide for or may include a targeted pilot pro- accordance with section 1981D. peutic techniques; gram with an evaluation component; ‘‘(c) COMPOSITION.— ‘‘(8) the substance abuse and mental health ‘‘(C) shall provide for training in tobacco ‘‘(1) IN GENERAL.—The recommended com- services block grant program, and the pre- use cessation intervention methods for position of the advisory committee is mem- ventive health services block grant program, health plans and health professionals, in- bers of the general public, such officials of

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5050 CONGRESSIONAL RECORD — SENATE May 19, 1998

the health departments of political subdivi- appropriate at the time of appointment by ‘‘(f) COORDINATION.—The Secretary shall sions of the State, public health profes- the Secretary. Any vacancy in the Board ensure that programs and activities under sionals, teenagers, minorities, and such ex- shall not affect its powers, but shall be filled this section are coordinated with programs perts in tobacco product research as may be in the same manner as the original appoint- and activities carried out under this title. necessary to provide adequate representation ment. ‘‘(g) ALLOCATION OF FUNDS.—Not to ex- of the general public and of such health de- ‘‘(4) TRAVEL EXPENSES.—The members of ceed— partments, and that members of the commit- the Board shall be allowed travel expenses, ‘‘(1) 25 percent of the amount made avail- tee shall be subject to the provisions of sec- including per diem in lieu of subsistence, at able under subsection (h) for each fiscal year tions 201, 202, and 203 of title 18, United rates authorized for employees of agencies shall be provided to States for State and States Code. under subchapter I of chapter 57 of title 5, local media-based and nonmedia-based edu- ‘‘(2) REPRESENTATIVES.—With respect to United States Code, while away from their cation, prevention and cessation campaigns; compliance with paragraph (1), the member- homes or regular places of business in the ‘‘(2) no more than 20 percent of the amount ship of the advisory committee may include performance of services for the Board. made available under subsection (h) for each representatives of community-based organi- ‘‘(5) AWARDS.—In carrying out subsection fiscal year shall be used specifically for the zations (including minority community- (a), the Secretary may— development of new messages and cam- based organizations), schools of public ‘‘(A) enter into contracts with or award paigns; health, and entities to which the State in- grants to eligible entities to develop mes- ‘‘(3) the remainder shall be used specifi- volved awards grants or contracts to carry sages and campaigns designed to prevent and cally to place media messages and carry out out activities authorized under section 1981C. reduce the use of tobacco products that are other dissemination activities described in ‘‘SUBPART II—TOBACCO-FREE COUNTER- based on effective strategies to affect behav- subsection (d); and ADVERTISING PROGRAMS ioral changes in children and other targeted ‘‘(4) half of 1 percent for administrative populations, including minority populations; costs and expenses. ‘‘SEC. 1982. FEDERAL-STATE COUNTER-ADVERTIS- RIGGER ING PROGRAMS. ‘‘(B) enter into contracts with or award ‘‘(h) T .—No expenditures shall be made under this section during any fiscal ‘‘(a) NATIONAL CAMPAIGN.— grants to eligible entities to carry out public year in which the annual amount appro- ‘‘(1) IN GENERAL.—The Secretary shall con- informational and educational activities de- duct a national campaign to reduce tobacco signed to reduce the use of tobacco products; priated for the Centers for Disease Control usage through media-based (such as counter- ‘‘(6) POWERS AND DUTIES.—The Board may— and Prevention is less than the amount so advertising campaigns) and nonmedia-based ‘‘(A) hold such hearings, sit and act at such appropriated for the prior fiscal year.’’. education, prevention and cessation cam- times and places, take such testimony, and ‘‘PART E—REDUCING YOUTH SMOKING AND TO- paigns designed to discourage the use of to- receive such evidence as the Board considers BACCO-RELATED DISEASES THROUGH RE- bacco products by individuals, to encourage advisable to carry out the purposes of this SEARCH those who use such products to quit, and to section; and ‘‘SEC. 1991. FUNDING FROM TOBACCO SETTLE- educate the public about the hazards of expo- ‘‘(B) secure directly from any Federal de- MENT TRUST FUND. sure to environmental tobacco smoke. partment or agency such information as the No expenditures shall be made under sec- ‘‘(2) REQUIREMENTS.—The national cam- Board considers necessary to carry out the tions 451(b) or (c)— paign under paragraph (1) shall— provisions of this section. ‘‘(1) for the National Institutes of Health ‘‘(A) target those populations that have ‘‘(c) ELIGIBILITY.—To be eligible to receive during any fiscal year in which the annual been targeted by tobacco industry advertis- funding under this section an entity shall— amount appropriated for such Institutes is ing using culturally and linguistically appro- ‘‘(1) be a— less than the amount so appropriated for the priate means; ‘‘(A) public entity or a State health depart- prior fiscal year; ‘‘(B) include a research and evaluation ment; or ‘‘(2) for the Centers for Disease Control and component; and ‘‘(B) private or nonprofit private entity Prevention during any fiscal year in which ‘‘(C) be designed in a manner that permits that— the annual amount appropriated for such the campaign to be modified for use at the ‘‘(i)(I) is not affiliated with a tobacco prod- Centers is less than the amount so appro- State or local level. uct manufacturer or importer; priated for the prior fiscal year; or ‘‘(b) ESTABLISHMENT OF AN ADVISORY ‘‘(II) has a demonstrated record of working ‘‘(3) for the Agency for Health Care Policy BOARD.— effectively to reduce tobacco product use; or and Research during any fiscal year in which ‘‘(1) IN GENERAL.—The Secretary shall es- ‘‘(III) has expertise in conducting a multi- the annual amount appropriated for such tablish a board to be known as the ‘National media communications campaign; and Agency is less than the amount so appro- Tobacco Free Education Advisory Board’ (re- ‘‘(ii) has expertise in developing strategies priated for the prior fiscal year. ferred to in this section as the ‘Board’) to that affect behavioral changes in children ‘‘SEC. 1991A. STUDY BY THE INSTITUTE OF MEDI- evaluate and provide long range planning for and other targeted populations, including CINE. the development and effective dissemination minority populations; ‘‘(a) CONTRACT.—Not later than 60 days of public informational and educational cam- ‘‘(2) prepare and submit to the Secretary after the date of enactment of this title, the paigns and other activities that are part of an application at such time, in such manner, Secretary shall enter into a contract with the campaign under subsection (a). and containing such information as the Sec- the Institute of Medicine for the conduct of ‘‘(2) COMPOSITION.—The Board shall be retary may require, including a description a study on the framework for a research composed of— of the activities to be conducted using agenda and research priorities to be used ‘‘(A) 9 non-Federal members to be ap- amounts received under the grant or con- under this part. pointed by the President, after consultation tract; ‘‘(b) CONSIDERATIONS.— and agreement with the Majority and Minor- ‘‘(3) provide assurances that amounts re- ‘‘(1) IN GENERAL.—In developing the frame- ity Leaders of the Senate and the Speaker ceived under this section will be used in ac- work for the research agenda and research and Minority Leader of the Health or Rep- cordance with subsection (c); and priorities under subsection (a) the Institute resentatives, of which— ‘‘(4) meet any other requirements deter- of Medicine shall focus on increasing knowl- ‘‘(i) at least 3 such members shall be indi- mined appropriate by the Secretary. edge concerning the biological, social, behav- viduals who are widely recognized by the ‘‘(d) USE OF FUNDS.—An entity that re- ioral, public health, and community factors general public for cultural, educational, be- ceives funds under this section shall use involved in the prevention of tobacco use, re- havioral science or medical achievement; amounts provided under the grant or con- duction of tobacco use, and health con- ‘‘(ii) at least 3 of whom shall be individuals tract to conduct multi-media and non-media sequences of tobacco use. who hold positions of leadership in major public educational, informational, market- ‘‘(2) SPECIFIC CONSIDERATIONS.—In the public health organizations, including mi- ing and promotional campaigns that are de- study conducted under subsection (a), the In- nority public health organizations; and signed to discourage and de-glamorize the stitute of Medicine shall specifically include ‘‘(iii) at least 3 of whom shall be individ- use of tobacco products, encourage those research on— uals recognized as experts in the field of ad- using such products to quit, and educate the ‘‘(A) public health and community re- vertising and marketing, of which— public about the hazards of exposure to envi- search relating to tobacco use prevention ‘‘(I) 1 member shall have specific expertise ronmental tobacco smoke. Such amounts methods, including public education, media, in advertising and marketing to children and may be used to design and implement such community strategies; teens; and activities and shall be used to conduct re- ‘‘(B) behavioral research relating to addic- ‘‘(II) 1 member shall have expertise in mar- search concerning the effectiveness of such tion, tobacco use, and patterns of smoking, keting research and evaluation; and programs. including risk factors for tobacco use by ‘‘(B) the Surgeon General, the Director of ‘‘(e) NEEDS OF CERTAIN POPULATIONS.—In children, women, and racial and ethnic mi- the Centers for Disease Control and Preven- awarding grants and contracts under this norities; tion, or their designees, shall serve as an ex section, the Secretary shall take into consid- ‘‘(C) health services research relating to officio members of the Board. eration the needs of particular populations, tobacco product prevention and cessation ‘‘(3) TERMS AND VACANCIES.—The members including minority populations, and use treatment methodologies; of the Board shall serve for a term of 3 years. methods that are culturally and linguis- ‘‘(D) surveillance and epidemiology re- Such terms shall be staggered as determined tically appropriate. search relating to tobacco;

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5051

‘‘(E) biomedical, including clinical, re- ‘‘(c) GUARANTEED MINIMUM.—Of the funds search shall carry out outcomes, effective- search relating to prevention and treatment made available to the National Institutes of ness, cost-effectiveness, and other health of tobacco-related diseases, including a focus Health under this section, such sums as may services research related to effective inter- on minorities, including racial and ethnic be necessary, may be used to support epide- ventions for the prevention and cessation of minorities; miological, behavioral, and social science re- tobacco use and appropriate strategies for ‘‘(F) the effects of tobacco products, ingre- search related to the prevention and treat- implementing those services, the outcomes dients of tobacco products, and tobacco ment of tobacco addiction. and delivery of care for diseases related to smoke on the human body and methods of ‘‘(d) NATURE OF RESEARCH.—Funds made tobacco use, and the development of quality reducing any negative effects, including the available under subsection (d) may be used measures for evaluating the provision of development of non-addictive, reduced risk to conduct or support research with respect those services. tobacco products; to one or more of the following— ‘‘(b) ANALYSES AND SPECIAL PROGRAMS.— ‘‘(G) differentials between brands of to- ‘‘(1) the epidemiology of tobacco use; The Secretary, acting through the Adminis- bacco products with respect to health effects ‘‘(2) the etiology of tobacco use; trator of the Agency for Health Care Policy or addiction; ‘‘(3) risk factors for tobacco use by chil- and Research, shall support— ‘‘(H) risks associated with environmental dren; ‘‘(1) and conduct periodic analyses and exposure to tobacco smoke, including a focus ‘‘(4) prevention of tobacco use by children, evaluations of the best scientific informa- on children and infants; including school and community-based pro- tion in the area of smoking and other to- ‘‘(I) effects of tobacco use by pregnant grams, and alternative activities; bacco product use cessation; and women; and ‘‘(5) the relationship between tobacco use, ‘‘(2) the development and dissemination of ‘‘(J) other matters determined appropriate alcohol abuse and illicit drug abuse; special programs in cessation intervention by the Institute. ‘‘(6) behavioral and pharmacological smok- for health plans and national health profes- ‘‘(c) REPORT.—Not later than 10 months ing cessation methods and technologies, in- sional societies.’’. after the date on which the Secretary enters cluding relapse prevention; TITLE III—TOBACCO PRODUCT WARNINGS into the contract under subsection (a), the ‘‘(7) the toxicity of tobacco products and AND SMOKE CONSTITUENT DISCLOSURE Institute of Medicine shall prepare and sub- their ingredients; Subtitle A—Product Warnings, Labeling and mit to the Secretary, the Committee on ‘‘(8) the relative harmfulness of different Packaging tobacco products; Labor and Human Resources, and the Com- SEC. 301. CIGARETTE LABEL AND ADVERTISING mittee on Appropriations of the Senate, and ‘‘(9) environmental exposure to tobacco WARNINGS. the Committee on Commerce of the House of smoke; (a) IN GENERAL.—Section 4 of the Federal Representatives, a report that shall contain ‘‘(10) the impact of tobacco use by preg- Cigarette Labeling and Advertising Act (15 the findings and recommendations of the In- nant women on their fetuses; U.S.C. 1333) is amended to read as follows: stitute for the purposes described in sub- ‘‘(11) the redesign of tobacco products to ‘‘SEC. 4. LABELING. section (b). reduce risks to public health and safety; and ‘‘(a) LABEL REQUIREMENTS.— ‘‘SEC. 1991B. RESEARCH COORDINATION. ‘‘(12) other appropriate epidemiological, ‘‘(1) IN GENERAL.—It shall be unlawful for ‘‘(a) IN GENERAL.—The Secretary shall fos- behavioral, and social science research. any person to manufacture, package, or im- ‘‘(e) COORDINATION.—In carrying out to- ter coordination among Federal research port for sale or distribution within the bacco-related research under this section, agencies, public health agencies, academic United States any cigarettes the package of the Director of the National Institutes of bodies, and community groups that conduct which fails to bear, in accordance with the Health shall ensure appropriate coordination or support tobacco-related biomedical, clini- requirements of this section, one of the fol- with the research of other agencies, and cal, behavioral, health services, public lowing labels: shall avoid duplicative efforts through all health and community, and surveillance and ‘‘WARNING: Cigarettes are addictive’’ appropriate means. epidemiology research activities. ‘‘WARNING: Tobacco smoke can harm your ‘‘(h) ADMINISTRATION.—The director of the ‘‘(b) REPORT.—The Secretary shall prepare children’’ NIH Office of Behavioral and Social Sciences and submit a report on a biennial basis to ‘‘WARNING: Cigarettes cause fatal lung dis- Research may— the Committee on Labor and Human Re- ease’’ ‘‘(1) identify tobacco-related research ini- sources, and the Committee on Appropria- ‘‘WARNING: Cigarettes cause cancer’’ tiatives that should be conducted or sup- tions of the Senate, and the Committee on ‘‘WARNING: Cigarettes cause strokes and ported by the research institutes, and de- Commerce of the House of Representatives heart disease’’ velop such projects in cooperation with such on the current and planned tobacco-related ‘‘WARNING: Smoking during pregnancy can institutes; research activities of participating Federal harm your baby’’ ‘‘(2) coordinate tobacco-related research agencies. ‘‘WARNING: Smoking can kill you’’ that is conducted or supported by the Na- ‘‘WARNING: Tobacco smoke causes fatal ‘‘SEC. 1991C. RESEARCH ACTIVITIES OF THE CEN- tional Institutes of Health; TERS FOR DISEASE CONTROL AND lung disease in non-smokers’’ ‘‘(3) annually recommend to Congress the PREVENTION. ‘‘WARNING: Quitting smoking now greatly allocation of anti-tobacco research funds ‘‘(a) DUTIES.—The Director of the Centers reduces serious risks to your health’’ among the national research institutes; and for Disease Control and Prevention shall, ‘‘(2) PLACEMENT; TYPOGRAPHY; ETC..— ‘‘(4) establish a clearinghouse for informa- from amounts provided under section 451(c), ‘‘(A) IN GENERAL.—Each label statement re- tion about tobacco-related research con- and after review of the study of the Institute quired by paragraph (1) shall be located in ducted by governmental and non-govern- of Medicine, carry out tobacco-related sur- the upper portion of the front and rear pan- mental bodies. veillance and epidemiologic studies and de- ‘‘(f) TRIGGER.—No expenditure shall be els of the package, directly on the package velop tobacco control and prevention strate- made under subsection (a) during any fiscal underneath the cellophane or other clear gies; and year in which the annual amount appro- wrapping. Except as provided in subpara- OUTH SURVEILLANCE SYSTEMS.—From ‘‘(b) Y priated for the National Institutes of Health graph (B), each label statement shall com- amounts provided under section 451(b), the is less than the amount so appropriated for prise at least the top 25 percent of the front Director of the Centers for Disease Control the prior fiscal year. and rear panels of the package. The word and Prevention shall provide for the use of ‘‘(g) REPORT.—The Director of the NIH ‘‘WARNING’’ shall appear in capital letters youth surveillance systems to monitor the shall every 2 years prepare and submit to the and all text shall be in conspicuous and leg- use of all tobacco products by individuals Congress a report ———— research activi- ible 17-point type, unless the text of the label under the age of 18, including brands-used to ties, including funding levels, for research statement would occupy more than 70 per- enable determinations to be made of com- made available under subsection (c). cent of such area, in which case the text may pany-specific youth market share. (b) MEDICAID COVERAGE OF OUTPATIENT be in a smaller conspicuous and legible type ‘‘SEC. 1991D. RESEARCH ACTIVITIES OF THE NA- SMOKING CESSATION AGENTS.—Paragraph (2) size, provided that at least 60 percent of such TIONAL INSTITUTES OF HEALTH. of section 1927(d) of the Public Health Serv- area is occupied by required text. The text ‘‘(a) FUNDING.—There are authorized to be ice Act (42 U.S.C. 1396r-8(d)) is amended— shall be black on a white background, or appropriated, from amounts in the National (1) by striking subparagraph (E) and redes- white on a black background, in a manner Tobacco Settlement Trust Fund established ignating subparagraphs (F) through (J) as that contrasts, by typography, layout, or by section 401 of the National Tobacco Pol- subparagraphs (E) through (I); and color, with all other printed material on the icy and Youth Smoking Reduction Act. (2) by striking ‘‘drugs.’’ in subparagraph package, in an alternating fashion under the ‘‘(b) EXPENDITURE OF FUNDS.—The Director (F), as redesignated, and inserting ‘‘drugs, plan submitted under subsection (b)(4). of the National Institutes of Health shall except agents, approved by the Food and ‘‘(B) FLIP-TOP BOXES.—For any cigarette provide funds to conduct or support epide- Drug Administration, when used to promote brand package manufactured or distributed miological, behavioral, biomedical, and so- smoking cessation.’’. before January 1, 2000, which employs a flip- cial science research, including research re- ‘‘SEC. 1991E. RESEARCH ACTIVITIES OF THE top style (if such packaging was used for lated to the prevention and treatment of to- AGENCY FOR HEALTH CARE POLICY that brand in commerce prior to June 21, bacco addiction, and the prevention and AND RESEARCH. 1997), the label statement required by para- treatment of diseases associated with to- ‘‘(a) IN GENERAL.—The Administrator of graph (1) shall be located on the flip-top area bacco use. the Agency for Health Care Policy and Re- of the package, even if such area is less than

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5052 CONGRESSIONAL RECORD — SENATE May 19, 1998 25 percent of the area of the front panel. Ex- provide for adjustments in the format and shall comprise at least 25 percent of each cept as provided in this paragraph, the provi- type sizes of any text required to appear in such display panel; and sions of this subsection shall apply to such such area to ensure that the total text re- ‘‘(B) in 17-point conspicuous and legible packages. quired to appear by law will fit within such type and in black text on a white back- ‘‘(3) DOES NOT APPLY TO FOREIGN DISTRIBU- area. ground, or white text on a black background, TION.—The provisions of this subsection do ‘‘(4) MARKETING REQUIREMENTS.— in a manner that contrasts by typography, not apply to a tobacco product manufacturer ‘‘(A) The label statements specified in sub- layout, or color, with all other printed mate- or distributor of cigarettes which does not section (a)(1) shall be randomly displayed in rial on the package, in an alternating fash- manufacture, package, or import cigarettes each 12-month period, in as equal a number ion under the plan submitted under sub- for sale or distribution within the United of times as is possible on each brand of the section (b)(3), except that if the text of a States. product and be randomly distributed in all label statement would occupy more than 70 ‘‘(b) ADVERTISING REQUIREMENTS.— areas of the United States in which the prod- percent of the area specified by subparagraph ‘‘(1) IN GENERAL.—It shall be unlawful for uct is marketed in accordance with a plan (A), such text may appear in a smaller type any tobacco product manufacturer, im- submitted by the tobacco product manufac- size, so long as at least 60 percent of such porter, distributor, or retailer of cigarettes turer, importer, distributor, or retailer and warning area is occupied by the label state- to advertise or cause to be advertised within approved by the Secretary. ment. the United States any cigarette unless its ‘‘(B) The label statements specified in sub- ‘‘(3) The label statements required by para- advertising bears, in accordance with the re- section (a)(1) shall be rotated quarterly in al- graph (1) shall be introduced by each tobacco quirements of this section, one of the labels ternating sequence in advertisements for product manufacturer, packager, importer, specified in subsection (a) of this section. each brand of cigarettes in accordance with distributor, or retailer of smokeless tobacco ‘‘(2) TYPOGRAPHY, ETC..—Each label state- a plan submitted by the tobacco product products concurrently into the distribution ment required by subsection (a) of this sec- manufacturer, importer, distributor, or re- chain of such products. tion in cigarette advertising shall comply tailer to, and approved by, the Secretary. ‘‘(4) The provisions of this subsection do with the standards set forth in this para- ‘‘(C) The Secretary shall review each plan not apply to a tobacco product manufacturer graph. For press and poster advertisements, submitted under subparagraph (B) and ap- or distributor of any smokeless tobacco each such statement and (where applicable) prove it if the plan— product that does not manufacture, package, any required statement relating to tar, nico- ‘‘(i) will provide for the equal distribution or import smokeless tobacco products for tine, or other constituent yield shall com- and display on packaging and the rotation sale or distribution within the United prise at least 20 percent of the area of the ad- required in advertising under this sub- States. vertisement and shall appear in a conspicu- section; and ous and prominent format and location at ‘‘(b) REQUIRED LABELS.— ‘‘(ii) assures that all of the labels required the top of each advertisement within the ‘‘(1) It shall be unlawful for any tobacco under this section will be displayed by the trim area. The Secretary may revise the re- product manufacturer, packager, importer, tobacco product manufacturer, importer, quired type sizes in such area in such man- distributor, or retailer of smokeless tobacco distributor, or retailer at the same time.’’. ner as the Secretary determines appropriate. products to advertise or cause to be adver- (b) REPEAL OF PROHIBITION ON STATE RE- The word ‘‘WARNING’’ shall appear in cap- tised within the United States any smoke- STRICTION.—Section 5 of the Federal Ciga- ital letters, and each label statement shall less tobacco product unless its advertising rette Labeling and Advertising Act (15 U.S.C. bears, in accordance with the requirements appear in conspicuous and legible type. The 1334) is amended— text of the label statement shall be black if of this section, one of the labels specified in (1) by striking ‘‘(a) ADDITIONAL STATE- the background is white and white if the subsection (a). MENTS.—’’ IN SUBSECTION (A); AND ‘‘(2) Each label statement required by sub- background is black, under the plan submit- (2) by striking subsection (b). ted under paragraph (4) of this subsection. section (a) in smokeless tobacco advertising SEC. 302. AUTHORITY TO REVISE CIGARETTE shall comply with the standards set forth in The label statements shall be enclosed by a WARNING LABEL STATEMENTS. this paragraph. For press and poster adver- rectangular border that is the same color as Section 4 of the Federal Cigarette Labeling tisements, each such statement and (where the letters of the statements and that is the and Advertising Act ( 15 U.S.C. 1333), as applicable) any required statement relating width of the first downstroke of the capital amended by section 301 of this title, is fur- ‘‘W’’ of the word ‘‘WARNING’’ in the label ther amended by adding at the end the fol- to tar, nicotine, or other constituent yield statements. The text of such label state- lowing: shall— ments shall be in a typeface pro rata to the ‘‘(c) CHANGE IN REQUIRED STATEMENTS.— ‘‘(A) comprise at least 20 percent of the following requirements: 45-point type for a The Secretary may, by a rulemaking con- area of the advertisement, and the warning whole-page broadsheet newspaper advertise- ducted under section 553 of title 5, United area shall be delineated by a dividing line of ment; 39-point type for a half-page States Code, adjust the format, type size, contrasting color from the advertisement; broadsheet newspaper advertisement; 39- and text of any of the warning label state- and point type for a whole-page tabloid news- ments required by subsection (a) of this sec- ‘‘(B) the word ‘‘WARNING’’ shall appear in paper advertisement; 27-point type for a half- tion, or establish the format, type size, and capital letters and each label statement page tabloid newspaper advertisement; 31.5- text of any other disclosures required under shall appear in conspicuous and legible type. point type for a double page spread magazine the Federal Food, Drug, and Cosmetic Act The text of the label statement shall be or whole-page magazine advertisement; 22.5- (21 U.S.C. 301 et seq.), if the Secretary finds black on a white background, or white on a point type for a 28 centimeter by 3 column that such a change would promote greater black background, in an alternating fashion advertisement; and 15-point type for a 20 cen- public understanding of the risks associated under the plan submitted under paragraph timeter by 2 column advertisement. The with the use of smokeless tobacco prod- (3). label statements shall be in English, except ucts.’’. ‘‘(3)(A) The label statements specified in that in the case of— SEC. 303. SMOKELESS TOBACCO LABELS AND AD- subsection (a)(1) shall be randomly displayed ‘‘(A) an advertisement that appears in a VERTISING WARNINGS. in each 12-month period, in as equal a num- newspaper, magazine, periodical, or other Section 3 of the Comprehensive Smokeless ber of times as is possible on each brand of publication that is not in English, the state- Tobacco Health Education Act of 1986 (15 the product and be randomly distributed in ments shall appear in the predominant lan- U.S.C. 4402) is amended to read as follows: all areas of the United States in which the guage of the publication; and ‘‘SEC. 3. SMOKELESS TOBACCO WARNING. product is marketed in accordance with a ‘‘(B) in the case of any other advertisement ‘‘(a) GENERAL RULE.— plan submitted by the tobacco product man- that is not in English, the statements shall ‘‘(1) It shall be unlawful for any person to ufacturer, importer, distributor, or retailer appear in the same language as that prin- manufacture, package, or import for sale or and approved by the Secretary. cipally used in the advertisement. distribution within the United States any ‘‘(B) The label statements specified in sub- ‘‘(3) ADJUSTMENT BY SECRETARY.—The Sec- smokeless tobacco product unless the prod- section (a)(1) shall be rotated quarterly in al- retary may, through a rulemaking under sec- uct package bears, in accordance with the re- ternating sequence in advertisements for tion 553 of title 5, United States Code, adjust quirements of this Act, one of the following each brand of smokeless tobacco product in the format and type sizes for the label state- labels: accordance with a plan submitted by the to- ments required by this section or the text, ‘‘WARNING: This product can cause mouth bacco product manufacturer, importer, dis- format, and type sizes of any required tar, cancer’’ tributor, or retailer to, and approved by, the nicotine yield, or other constituent disclo- ‘‘WARNING: This product can cause gum dis- Secretary. sures, or to establish the text, format, and ease and tooth loss’’ ‘‘(C) The Secretary shall review each plan type sizes for any other disclosures required ‘‘WARNING: This product is not a safe alter- submitted under subparagraph (B) and ap- under the Federal Food, Drug, and Cosmetic native to cigarettes’’ prove it if the plan— Act (21 U.S.C. 301 et. seq.). The text of any ‘‘WARNING: Smokeless tobacco is addict- ‘‘(i) will provide for the equal distribution such label statements or disclosures shall be ive’’ and display on packaging and the rotation required to appear only within the 20 percent ‘‘(2) Each label statement required by para- required in advertising under this sub- area of cigarette advertisements provided by graph (1) shall be— section; and paragraph (2) of this subsection. The Sec- ‘‘(A) located on the 2 principal display pan- ‘‘(ii) assures that all of the labels required retary shall promulgate regulations which els of the package, and each label statement under this section will be displayed by the

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5053 tobacco product manufacturer, importer, enactment of this Act, the Secretary, SEC. 402. PAYMENTS BY INDUSTRY. distributor, or retailer at the same time. through the Commissioner of the Food and (a) INITIAL PAYMENT.— ‘‘(c) TELEVISION AND RADIO ADVERTISING.— Drug Administration, shall promulgate regu- (1) CERTAIN TOBACCO PRODUCT MANUFACTUR- It is unlawful to advertise smokeless tobacco lations under the Federal Food, Drug, and ERS.—The following participating tobacco on any medium of electronic communica- Cosmetic Act (21 U.S.C. 301 et seq.) that meet product manufacturers, subject to the provi- tions subject to the jurisdiction of the Fed- the requirements of subsection (b) of this eral Communications Commission.’’. sions of title XIV, shall deposit into the Na- section. tional Tobacco Trust Fund an aggregate pay- SEC. 304. AUTHORITY TO REVISE SMOKELESS TO- ONTENTS OF RULES.—The rules promul- (b) C ment of $10,000,000,000, apportioned as fol- BACCO PRODUCT WARNING LABEL gated under subsection (a) of this section lows: STATEMENTS. shall require the testing, reporting, and dis- (A) Phillip Morris Incorporated—65.8 per- Section 3 of the Comprehensive Smokeless closure of tobacco product smoke constitu- cent. Tobacco Health Education Act of 1986 (15 ents and ingredients that the Secretary de- (B) Brown and Williamson Tobacco Cor- U.S.C. 4402), as amended by section 303 of termines should be disclosed to the public in this title, is further amended by adding at poration—17.3 percent. order to protect the public health. Such con- the end the following: (C) Lorillard Tobacco Company—7.1 per- stituents shall include tar, nicotine, carbon ‘‘(d) AUTHORITY TO REVISE WARNING LABEL cent. monoxide, and such other smoke constitu- STATEMENTS.—The Secretary may, by a rule- (D) R.J. Reynolds Tobacco Company—6.6 ents or ingredients as the Secretary may de- making conducted under section 553 of title percent. termine to be appropriate. The rule may re- 5, United States Code, adjust the format, (E) United States Tobacco Company—3.2 quire that tobacco product manufacturers, type size, and text of any of the warning percent. packagers, or importers make such disclo- label statements required by subsection (a) (2) NO CONTRIBUTION FROM OTHER TOBACCO sures relating to tar and nicotine through la- of this section, or establish the format, type PRODUCT MANUFACTURERS.—No other tobacco size, and text of any other disclosures re- bels or advertising, and make such disclo- product manufacturer shall be required to quired under the Federal Food, Drug, and sures regarding other smoke constituents or contribute to the payment required by this Cosmetic Act (21 U.S.C. 301 et seq.), if the ingredients as the Secretary determines are subsection. necessary to protect the public health. Secretary finds that such a change would (3) PAYMENT DATE; INTEREST.—Each to- (c) AUTHORITY.—The Food and Drug Ad- promote greater public understanding of the bacco product manufacturer required to ministration shall have authority to conduct risks associated with the use of smokeless make a payment under paragraph (1) of this or to require the testing, reporting, or dis- tobacco products.’’. subsection shall make such payment within closure of tobacco product smoke constitu- SEC. 305. TAR, NICOTINE, AND OTHER SMOKE 30 days after the date of compliance with ents. CONSTITUENT DISCLOSURE TO THE this Act and shall owe interest on such pay- PUBLIC. TITLE IV—NATIONAL TOBACCO TRUST ment at the prime rate plus 10 percent per Section 4(a) of the Federal Cigarette La- FUND annum, as published in the Wall Street Jour- beling and Advertising Act (15 U.S.C. 1333 SEC. 401. ESTABLISHMENT OF TRUST FUND. nal on the latest publication date on or be- (a)), as amended by section 301 of this title, (a) CREATION.—There is established in the fore the date of enactment of this Act, for is further amended by adding at the end the Treasury of the United States a trust fund to payments made after the required payment following: be known as the ‘‘National Tobacco Trust date. ‘‘(4)(A) The Secretary shall, by a rule- Fund’’, consisting of such amounts as may making conducted under section 553 of title (b) ANNUAL PAYMENTS.—Each calendar be appropriated or credited to the trust fund. 5, United States Code, determine (in the Sec- year beginning after the required payment (b) TRANSFERS TO NATIONAL TOBACCO retary’s sole discretion) whether cigarette date under subsection (a)(3) the tobacco TRUST FUND.—There shall be credited to the and other tobacco product manufacturers trust fund the net revenues resulting from product manufacturers shall make total pay- shall be required to include in the area of the following amounts: ments into the Fund for each calendar year each cigarette advertisement specified by (1) Amounts paid under section 402. in the following applicable base amounts, subsection (b) of this section, or on the pack- (2) Amounts equal to the fines or penalties subject to adjustment as provided in section age label, or both, the tar and nicotine yields paid under section 402, 403, or 405, including 403: of the advertised or packaged brand. Any interest thereon. (1) year 1—$14,400,000,000. such disclosure shall be in accordance with (3) Amounts equal to penalties paid under (2) year 2—$15,400,000,000. the methodology established under such reg- section 202, including interest thereon. (3) year 3—$17,700,000,000. ulations, shall conform to the type size re- (c) NET REVENUES.—For purposes of sub- (4) year 4—$21,400,000,000. quirements of subsection (b) of this section, section (b), the term ‘‘net revenues’’ means (5) year 5—$23,600,000,000. and shall appear within the area specified in the amount estimated by the Secretary of (6) year 6 and thereafter—the adjusted ap- subsection (b) of this section. the Treasury based on the excess of— plicable base amount under section 403. ‘‘(B) Any differences between the require- (1) the amounts received in the Treasury (c) PAYMENT SCHEDULE; RECONCILIATION.— ments established by the Secretary under under subsection (b), over (1) ESTIMATED PAYMENTS.—Deposits toward subparagraph (A) and tar and nicotine yield (2) the decrease in the taxes imposed by the annual payment liability for each cal- reporting requirements established by the chapter 1 and chapter 52 of the Internal Rev- endar year under subsection (d)(2) shall be Federal Trade Commission shall be resolved enue Code of 1986, and other offsets, resulting made in 3 equal installments due on March by a memorandum of understanding between from the amounts received under subsection 1st, on June 1st, and on August 1st of each the Secretary and the Federal Trade Com- (b). mission. year. Each installment shall be equal to one- (d) EXPENDITURES FROM THE TRUST FUND.— third of the estimated annual payment li- ‘‘(C) In addition to the disclosures required Amounts in the Trust Fund shall be avail- ability for that calendar year. Deposits of in- by subparagraph (A) of this paragraph, the able in each fiscal year, as provided in appro- stallments paid after the due date shall ac- Secretary may, under a rulemaking con- priation Acts. The authority to allocate net crue interest at the prime rate plus 10 per- ducted under section 553 of title 5, United revenues as provided in this title and to obli- cent per annum, as published in the Wall States Code, prescribe disclosure require- gate any amounts so allocated is contingent Street Journal on the latest publication date ments regarding the level of any cigarette or upon actual receipt of net revenues. on or before the payment date. other tobacco product smoke constituent. (e) BUDGETARY TREATMENT.—The amount ECONCILIATION.—If the liability for a Any such disclosure may be required if the of net receipts in excess of that amount (2) R calendar year under subsection (d)(2) exceeds Secretary determines that disclosure would which is required to offset the direct spend- the deposits made during that calendar year, be of benefit to the public health, or other- ing in this Act under section 252 of the Bal- the manufacturer shall pay the unpaid liabil- wise would increase consumer awareness of anced Budget and Emergency Deficit Control ity on March 1st of the succeeding calendar the health consequences of the use of to- Act of 1985 (2 U.S.C. 902) shall be available year, along with the first deposit for that bacco products, except that no such pre- exclusively to offset the appropriations re- succeeding year. If the deposits during a cal- scribed disclosure shall be required on the quired to fund the authorizations of appro- endar year exceed the liability for the cal- face of any cigarette package or advertise- priations in this Act (including the amend- endar year under subsection (d)(2), the manu- ment. Nothing in this section shall prohibit ments made by this Act), and the amount of facturer shall subtract the amount of the ex- the Secretary from requiring such prescribed such appropriations shall not be included in cess deposits from its deposit on March 1st of disclosure through a cigarette or other to- the estimates required under section 251 of the succeeding calendar year. bacco product package or advertisement in- that Act (2 U.S.C. 901). sert, or by any other means under the Fed- (f) ADMINISTRATIVE PROVISIONS.—Section (d) APPORTIONMENT OF ANNUAL PAYMENT.— eral Food, Drug, and Cosmetic Act (21 U.S.C. 9602 of the Internal Revenue Code of 1986 (1) IN GENERAL.—Each tobacco product 301 et seq.).’’. shall apply to the trust fund to the same ex- manufacturer is liable for its share of the ap- Subtitle B—Testing and Reporting of tent as if it were established by subchapter A plicable base amount payment due each year Tobacco Product Smoke Constituents of chapter 98 of such Code, except that, for under subsection (b). The annual payment is SEC. 311. REGULATION REQUIREMENT. purposes of section 9602(b)(3), any interest or the obligation and responsibility of only (a) TESTING, REPORTING, AND DISCLOSURE.— proceeds shall be covered into the Treasury those tobacco product manufacturers and Not later than 24 months after the date of as miscellaneous receipts. their affiliates that directly sell tobacco

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5054 CONGRESSIONAL RECORD — SENATE May 19, 1998

products in the domestic market to whole- (3) TOBACCO PRODUCT MANUFACTURERS TO after the date on which such fee is due is lia- salers, retailers, or consumers, their succes- WHICH SUBSECTION APPLIES.—A tobacco prod- ble for a civil penalty computed on the un- sors and assigns, and any subsequent fraudu- uct manufacturer is described in this para- paid balance at a rate of prime plus 10 per- lent transferee (but only to the extent of the graph if it— cent per annum, as published in the Wall interest or obligation fraudulently trans- (A) resolved tobacco-related civil actions Street Journal on the latest publication date ferred). with more than 25 States before January 1, on or before the payment date, during the (2) DETERMINATION OF AMOUNT OF PAYMENT 1998, through written settlement agreements period the payment remains unmade. DUE.—Each tobacco product manufacturer is signed by the attorneys general (or the (b) NONCOMPLIANCE PERIOD.—For purposes liable for its share of each installment in equivalent chief legal officer if there is no of- of this section, the term ‘‘noncompliance pe- proportion to its share of tobacco products fice of attorney general) of those States; and riod’’ means, with respect to any failure to sold in the domestic market for the calendar (B) provides to all other States, not later make a payment required under section 402 year. One month after the end of the cal- than December 31, 1998, the opportunity to or 404, the period— endar year, the Secretary shall make a final enter into written settlement agreements (1) beginning on the due date for such pay- determination of each tobacco product man- that— ment; and ufacturer’s applicable base amount payment (i) are substantially similar to the agree- (2) ending on the date on which such pay- obligation. ments entered into with those 25 States; and ment is paid in full. (3) CALCULATION OF TOBACCO PRODUCT MAN- (ii) provide the other States with annual (c) LIMITATIONS.— UFACTURER’S SHARE OF ANNUAL PAYMENT.— payment terms that are equivalent to the (1) IN GENERAL.—No penalty shall be im- The share of the annual payment appor- most favorable annual payment terms of its posed by subsection (a) on any failure to tioned to a tobacco product manufacturer written settlement agreements with those 25 make a payment under section 402 during shall be equal to that manufacturer’s share States. any period for which it is established to the of adjusted units, taking into account the SEC. 403. ADJUSTMENTS. satisfaction of the Secretary of the Treasury manufacturer’s total production of such The applicable base amount under section that none of the persons responsible for such units sold in the domestic market. A tobacco 402(b) for a given calendar year shall be ad- failure knew or, exercising reasonable dili- product manufacturer’s share of adjusted justed as follows in determining the annual gence, should have known, that such failure units shall be determined as follows: payment for that year: existed. (A) UNITS.—A tobacco product manufactur- (1) INFLATION ADJUSTMENT.— (2) CORRECTIONS.—No penalty shall be im- er’s number of units shall be determined by (A) IN GENERAL.—Beginning with the sixth posed under subsection (a) on any failure to counting each— calendar year after the date of enactment of make a payment under section 402 if— (i) pack of 20 cigarettes as 1 adjusted unit; this Act, the adjusted applicable base (A) such failure was due to reasonable (ii) 1.2 ounces of moist snuff as 0.75 ad- amount under section 402(b)(6) is the amount cause and not to willful neglect; and justed unit; and of the annual payment made for the preced- (B) such failure is corrected during the 30- (iii) 3 ounces of other smokeless tobacco ing year increased by the greater of 3 percent day period beginning on the 1st date that product as 0.35 adjusted units. or the annual increase in the CPI, adjusted any of the persons responsible for such fail- (B) DETERMINATION OF ADJUSTED UNITS.— (for calendar year 2002 and later years) by ure knew or, exercising reasonable diligence, Except as provided in subparagraph (C), a the volume adjustment under paragraph (2). should have known, that such failure ex- smokeless tobacco product manufacturer’s (B) CPI.—For purposes of subparagraph isted. number of adjusted units shall be determined (A), the CPI for any calendar year is the av- (3) WAIVER.—In the case of any failure to under the following table: erage of the Consumer Price Index for all- make a payment under section 402 that is urban consumers published by the Depart- due to reasonable cause and not to willful For units: Each unit shall be treated as: ment of Labor. neglect, the Secretary of the Treasury may waive all or part of the penalty imposed Not exceeding 150 mil- (C) ROUNDING.—If any increase determined lion 70% of a unit under subparagraph (A) is not a multiple of under subsection (a) to the extent that the Exceeding 150 million 100% of a unit $1,000, the increase shall be rounded to the Secretary determines that the payment of nearest multiple of $1,000. such penalty would be excessive relative to (C) ADJUSTED UNITS DETERMINED ON TOTAL (2) VOLUME ADJUSTMENT.—Beginning with the failure involved. DOMESTIC PRODUCTION.—For purposes of de- calendar year 2002, the applicable base Subtitle B—General Spending Provisions termining a manufacturer’s number of ad- amount (as adjusted for inflation under para- SEC. 451. ALLOCATION ACCOUNTS. justed units under subparagraph (B), a manu- graph (1)) shall be adjusted for changes in (a) STATE LITIGATION SETTLEMENT AC- facturer’s total production of units, whether volume of domestic sales by multiplying the COUNT.— intended for domestic consumption or ex- applicable base amount by the ratio of the (1) IN GENERAL.—There is established with- port, shall be taken into account. actual volume for the calendar year to the in the Trust Fund a separate account, to be (D) SPECIAL RULE FOR LARGE MANUFACTUR- base volume. For purposes of this paragraph, known as the State Litigation Settlement ERS.—If a tobacco product manufacturer has the term ‘‘base volume’’ means 80 percent of Account. Of the net revenues credited to the more than 200 million units under subpara- the number of units of taxable domestic re- Trust Fund under section 401(b)(1) for each graph (A), then that manufacturer’s number movals and taxed imports of cigarettes in fiscal year, 40 percent of the amounts des- of adjusted units shall be equal to the total calendar year 1997, as reported to the Sec- ignated for allocation under the settlement number of units, and not determined under retary of the Treasury. For purposes of this payments shall be allocated to this account. subparagraph (B). subsection, the term ‘‘actual volume’’ means Such amounts shall be reduced by the addi- (E) SMOKELESS EQUIVALENCY STUDY.—Not the number of adjusted unites as defined in tional estimated Federal expenditures that later than January 1, 2003, the Secretary section 402(d)(3)(A). will be incurred as a result of State expendi- shall submit to the Congress a report detail- SEC. 404. PAYMENTS TO BE PASSED THROUGH TO tures under section 452, which amounts shall ing the extent to which youths are substitut- CONSUMERS. be transferred to the miscellaneous receipts ing smokeless tobacco products for ciga- Each tobacco product manufacturer shall of the Treasury. If, after 10 years, the esti- rettes. If the Secretary determines that sig- use its best efforts to adjust the price at mated 25-year total amount projected to re- nificant substitution is occurring, the Sec- which it sells each unit of tobacco products ceived in this account will be different than retary shall include in the report rec- in the domestic market or to an importer for amount than $196,500,000,000, then beginning ommendations to address substitution, in- resale in the domestic market by an amount with the eleventh year the 40 percent share cluding consideration of modification of the sufficient to pass through to each purchaser will be adjusted as necessary, to a percent- provisions of subparagraph (A). on a per-unit basis an equal share of the an- age not in excees of 50 percent and not less (e) COMPUTATIONS.—The determinations re- nual payments to be made by such tobacco than 30 percent, to achieve that 25-year total quired by subsection (d) shall be made and product manufacturer under this Act for the amount. certified by the Secretary of Treasury. The year in which the sale occurs. (2) APPROPRIATION.—Amounts so calculated parties shall promptly provide the Treasury SEC. 405. TAX TREATMENT OF PAYMENTS. are hereby appropriated and available until Department with information sufficient for All payments made under section 402 are expended and shall be available to States for it to make such determinations. ordinary and necessary business expenses for grants authorized under this Act. (f) NONAPPLICATION TO CERTAIN MANUFAC- purposes of chapter 1 of the Internal Revenue (3) DISTRIBUTION FORMULA.—The Secretary TURERS.— Code of 1986 for the year in which such pay- of the Treasury shall consult with the Na- (1) EXEMPTION .—A manufacturer described ments are made, and no part thereof is either tional Governors Association, the National in paragraph (3) is exempt from the pay- in settlement of an actual or potential liabil- Association of Attorneys General, and the ments required by subsection (b). ity for a fine or penalty (civil or criminal) or National Conference of State Legislators on (2) LIMITATION.—Paragraph (1) applies only the cost of a tangible or intangible asset or a formula for the distribution of amounts in to assessments on cigarettes to the extent other future benefit. the State Litigation Settlement Account that those cigarettes constitute less than 3 SEC. 406. ENFORCEMENT FOR NONPAYMENT. and report to the Congress within 90 days percent of all cigarettes manufactured and (a) PENALTY.—Any tobacco product manu- after the date of enactment of this Act with distributed to consumers in any calendar facturer that fails to make any payment re- recommendations for implementing a dis- year. quired under section 402 or 404 within 60 days tribution formula.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00024 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5055

(4) USE OF FUNDS.—A State may use to the trust fund under section 401(b)(1), 22 (A) the State program under the maternal amounts received under this subsection as percent shall be allocated to this account. and child health services block grant under the State determines appropriate, consistent (2) AUTHORIZATION OF APPROPRIATIONS.— title V of the Social Security Act (42 U.S.C. with the other provisions of this Act. Amounts in the Health and Health-Related 701 et seq.); (5) FUNDS NOT AVAILABLE AS MEDICAID RE- Research Account shall be available to the (B) funding for child care under section 418 IMBURSEMENT.—Funds in the account shall extent and in the amounts provided in ad- of the Social Security Act, notwithstanding not be available to the Secretary as reim- vance in appropriations acts, to remain subsection (b)(2) of that section; bursement of Medicaid expenditures or con- available until expended, only for the follow- (C) federally funded child welfare and sidered as Medicaid overpayments for pur- ing purposes: abuse programs under title IV-B of the So- poses of recoupment. (A) $750,000 shall be made vailable in fiscal cial Security Act; (b) PUBLIC HEALTH ALLOCATION ACCOUNT.— year 1999 for the study to be conducted under (D) programs administered within the (1) IN GENERAL.— There is established with- section 1991 of the Public Health Service Act. State under the authority of the Substance in the trust fund a separate account, to be (B) National Institutes of Health Research Abuse and Mental Health Services Adminis- known as the Public Health Account. Twen- under section 1991D of the Public Health tration under title XIX, part B of the Public ty-two percent of the net revenues credited Service Act, as added by this Act. Of the Health Service Act; to the trust fund under section 401(b)(1) and total amounts allocated to this account, not (E) Safe and Drug-Free Schools Program all the net revenues credited to the trust less than 75 percent, but not more than 87 under title IV, part A, of the Elementary and fund under section 401(b)(3) shall be allocated percent shall be used for this purpose. Secondary Education Act of 1965 (20 U.S.C. to this account. (C) Centers for Disease Control under sec- 7111 et seq.); (2) AUTHORIZATION OF APPROPRIATIONS.— tion 1991C of the Public Health Service Act, (F) the Department of Education’s Dwight Amounts in the Public Health Account shall as added by this Act, and Agency for Health D. Eisenhower Professional Development be available to the extent and only in the Care Policy and Research under section program under title II of the Elementary and amounts provided in advance in appropria- 1991E of the Public Health Service Act, as Secondary Education Act of 1965 (20 U.S.C. tions Acts, to remain available until ex- added by this Act. authorized under sections 6601 et seq.); and pended, only for the purposes of: 2803 of that Act, as so added. Of the total (G) The State Children’s Health Insurance (A) CESSATION AND OTHER TREATMENTS.—Of amounts allocated to this account, not less Program authorized under title XXI of the the total amounts allocated to this account, than 12 percent, but not more than 18 per- Social Security Act (42 U.S.C. 1397aa et seq.), not less than 25 percent, but not more than cent shall be used for this purpose. provided that the amount expended on this 35 percent are to be used to carry out smok- (D) National Science Foundation Research program does not exceed 6 percent of the ing cessation activities under part D of title under section 454. Of the total amounts allo- total amount of restricted funds available to XIX of the Public Health Service Act, as cated to this account, not less than 1 per- the State each fiscal year. added by title II of this Act. cent, but not more than 1 percent shall be (B) INDIAN HEALTH SERVICE.—Of the total (c) NO SUBSTITUTION OF SPENDING.— used for this purpose. amounts allocated to this account, not less Amounts referred to in subsection (b)(2) shall (E) Cancer Clinical Trials under section than 3 percent, but not more than 7 percent 455. Of the total amounts allocated to this be used to supplement and not supplant are to be used to carry out activities under account, $750,000,000 shall be used for the other Federal, State, or local funds provided section 453. first 3 fiscal years for this purpose. for any of the programs described in subpara- (C) EDUCATION AND PREVENTION.—Of the (d) FARMERS ASSISTANCE ALLOCATION AC- graphs (A) through (G) of subsection (b)(2). total amounts allocated to this account, not COUNT.— Restricted funds, except as provided for in less than 50 percent, but not more than 65 (1) IN GENERAL.— There is established with- subsection (b)(2)(G), shall not be used as percent are to be used to carry out— in the trust fund a separate account, to be (i) counter-advertising activities under State matching funds. Amounts provided to known as the Farmers Assistance Account. section 1982 of the Public Health Service Act the State under any of the provisions of law Of the net revenues credited to the trust as amended by this Act; referred to in such subparagraph shall not be fund under section 401(b)(1) in each fiscal (ii) smoking prevention activities under reduced solely as a result of the availability year— section 223; of funds under this section. (A) 16 percent shall be allocated to this ac- (iii) surveys under section 1991C of the count for the first 10 years after the date of (d) FEDERAL-STATE MATCH RATES.—Cur- Public Health Service Act, as added by this enactment of this Act; and rent (1998) matching requirements apply to Act (but, in no fiscal year may the amounts (B) 4 percent shall be allocated to this ac- each program listed under subsection (b)(2), used to carry out such surveys be less than count for each subsequent year until the ac- 10 percent of the amounts available under except for the program described under sub- count has received a total of $28,500,000,000. this subsection); and section (b)(2)(B). For the program described (2) APPROPRIATION.—Amounts allocated to (iv) international activities under section under subsection (b)(2)(B), after an individ- this account are hereby appropriated and 1132. ual State has expended resources sufficient shall be available until expended for the pur- (D) ENFORCEMENT.—Of the total amounts to receive its full Federal amount under sec- poses of section 1012. allocated to this account, not less than 17.5 tion 418(a)(2)(B) of the Social Security Act (e) MEDICARE PRESERVATION ACCOUNT.— percent nor more than 22.5 percent are to be There is established within the trust fund a (subject to the matching requirements in used to carry out the following: separate account, to be known as the Medi- section 418(a)(2)(C) of such Act), the Federal (i) Food and Drug Administration activi- care Preservation Account. If, in any year, share of expenditures shall be 80 percent. ties. the net amounts credited to the trust fund (I) The Food and Drug Administration (e) MAINTENANCE OF EFFORT.—To receive for payments under section 402(b) are greater funds under this subsection, States must shall receive not less than 15 percent of the than the net revenues originally estimated demonstrate a maintenance of effort. This funds provided in subparagraph (D) in the under section 401(b), the amount of any such first fiscal year beginning after the date of excess shall be credited to the Medicare maintenance of effort is defined as the sum enactment of this Act, 35 percent of such Preservation Account. Beginning in the elev- of— funds in the second year beginning after the enth year beginning after the date of enact- (1) an amount equal to 95 percent of Fed- date of enactment, and 50 percent of such ment of this Act, 12 percent of the net reve- eral fiscal year 1997 State spending on the funds for each fiscal year beginning after the nues credited to the trust fund under seciton programs under subsections (b)(2)(B), (c), and date of enactment, as reimbursements for 401(b)(1) shall be allocated to this account. (d); and the costs incurred by the Food and Drug Ad- Funds credited to this account shall be (2) an amount equal to the product of the ministration in implementing and enforcing transferred to the Medicare Hospital Insur- amount described in paragraph (1) and— requirements relating to tobacco products. ance Trust Fund. (A) for fiscal year 1999, the lower of— (II) No expenditures shall be made under SEC. 452. GRANTS TO STATES. (i) general inflation as measured by the subparagraph (D) during any fiscal year in (a) AMOUNTS.—From the amount made consumer price index for the previous year; which the annual amount appropriated for available under section 402(a) for each fiscal or the Food and Drug Administration is less year, each State shall receive a grant on a (ii) the annual growth in the Federal ap- than the amount so appropriated for the quarterly basis according to a formula. propriation for the program in the previous prior fiscal year. (b) USE OF FUNDS.— fiscal year; and (ii) State retail licensing activities under (1) UNRESTRICTED FUNDS.—A State may use (B) for subsequent fiscal years, the lower section 251. funds, not to exceed 50 percent of the amount of— (iii) Anti-Smuggling activities under sec- received under this section in a fiscal year, (i) the cumulative general inflation as tion 1141. for any activities determined appropriate by measured by the consumer price index for (c) HEALTH AND HEALTH-RELATED RESEARCH the State. the period between 1997 and the previous ALLOCATION ACCOUNT.— (2) RESTRICTED FUNDS.—A State shall use year; or (1) IN GENERAL.— There is established with- not less than 50 percent of the amount re- (ii) the cumulative growth in the Federal in the trust fund a separate account, to be ceived under this section in a fiscal year to appropriation for the program for the period known as the Health and Health-Related Re- carry out additional activities or provide ad- between fiscal year 1997 and the previous fis- search Account. Of the net revenues credited ditional services under— cal year.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00025 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5056 CONGRESSIONAL RECORD — SENATE May 19, 1998 The 95-percent maintenance-of-effort re- (1) clinic and facility design, construction, (B) any item or service supplied without quirement in paragraph (1), and the adjust- repair, renovation, maintenance and im- charge by the sponsor of the approved clini- ments in paragraph (2), apply to each pro- provement; cal trial program. gram identified in paragraph (1) on an indi- (2) provider services and equipment; (e) STUDY.—The Secretary shall study the vidual basis. (3) domestic and community sanitation as- impact on the Medicare program under title (f) OPTIONS FOR CHILDREN’S HEALTH OUT- sociated with clinic and facility construction XVIII of the Social Security Act of covering REACH.—In addition to the options for the and improvement; and routine patient care costs for individuals use of grants described in this section, the (4) other programs and service provided with a diagnosis of cancer and other diag- following are new options to be added to through the Indian Health Service or noses, who are entitled to benefits under States’ choices for conducting children’s through tribal contracts, compacts, grants, such title and who are enrolled in an ap- health outreach: or cooperative agreements with the Indian proved clinical trial program. (1) EXPANSION OF PRESUMPTIVE ELIGIBILITY Health Service and which are deemed appro- (f) REPORT TO CONGRESS.—Not later than 30 OPTION FOR CHILDREN.— priate to raising the health status of Indians. months after the date of enactment of this Act, the Secretary shall submit a report to (A) IN GENERAL.—Section 1920A(b)(3)(A)(I) SEC. 454. RESEARCH AT THE NATIONAL SCIENCE of the Social Security Act (42 U.S.C. 1396r- FOUNDATION. Congress that contains a detailed description of the results of the study conducted under 1a(b)(3)(A)(I)) is amended— Amounts available under section subsection (e) including recommendations (i) by striking ‘‘described in subsection (a) 451(c)(2)(C) shall be made available for nec- regarding the extension and expansion of the or (II) is authorized’’ and inserting ‘‘de- essary expenses in carry out the National demonstration project conducted under this scribed in subsection (a), (II) is authorized’’; Science Foundation Act of 1950 (U.S.C. 1861- section. and 1875), and the Act to establish a National (ii) by inserting before the semicolon ‘‘, Medal of Science (42 U.S.C. 1880-1881). TITLE V—STANDARDS TO REDUCE INVOL- eligibility for benefits under part A of title UNTARY EXPOSURE TO TOBACCO IV, eligibility of a child to receive benefits SEC. 455. MEDICARE CANCER PATIENT DEM- SMOKE under the State plan under this title or title ONSTRATION PROJECT; EVALUA- TION AND REPORT TO CONGRESS. SEC. 501. DEFINITIONS. XXI, (III) is a staff member of a public In this title: (a) ESTABLISHMENT.—The Secretary shall school, child care resource and referral cen- (1) ASSISTANT SECRETARY.—The term ‘‘As- ter, or agency administering a plan under establish a 3-year demonstration project which provides for payment under the Medi- sistant Secretary’’ means the Assistant Sec- part D of title IV, or (IV) is so designated by retary of the Occupational Safety and Health the State’’. care program under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) of rou- Administration of the Department of Labor. (B) TECHNICAL AMENDMENTS.—Section tine patient care costs— (2) PUBLIC FACILITY.— 1920A of that Act (42 U.S.C. 1396r-1a) is (A) IN GENERAL.—The term ‘‘public facil- amended— (1) which are provided to an individual di- agnosed with cancer and enrolled in the ity’’ means any building used for purposes (i) in subsection (b)(3)(A)(ii), by striking that affect interstate or foreign commerce ‘‘paragraph (1)(A)’’ and inserting ‘‘paragraph Medicare program under such title as part of the individual’s participation in an approved that is regularly entered by 10 or more indi- (2)(A)’’; and viduals at least 1 day per week including any (ii) in subsection (c)(2), in the matter pre- clinical trial program; and (2) which are not otherwise eligible for building owned by or leased to an agency, ceding subparagraph (A), by striking ‘‘sub- independent establishment, department, or section (b)(1)(A)’’ and inserting ‘‘subsection payment under such title for individuals who are entitled to benefits under such title. the executive, legislative, or judicial branch (b)(2)(A)’’. of the United States Government. (b) APPLICATION.—The beneficiary cost (2) REMOVAL OF REQUIREMENT THAT CHIL- (B) EXCLUSIONS.—The term ‘‘public facil- sharing provisions under the Medicare pro- DREN’S HEALTH INSURANCE PROGRAM ALLOT- ity’’ does not include a building or portion gram, such as deductibles, coinsurance, and MENTS BE REDUCED BY COSTS RELATED TO PRE- thereof which is used for residential purposes copayment amounts, shall apply to any indi- SUMPTIVE ELIGIBILITY DETERMINATIONS.— or as a restaurant (other than a fast food res- vidual in a demonstration project conducted (A) IN GENERAL.—Section 2104(d) of the So- taurant), bar, private club, hotel guest room under this section. cial Security Act (42 U.S.C. 1397dd(d)) is or common area, casino, bingo parlor, tobac- amended by striking ‘‘the sum of—’’ and all (c) APPROVED CLINICAL TRIAL PROGRAM.— conist’s shop, or prison. that follows through the paragraph designa- (1) IN GENERAL.—For purposes of this sec- (C) FAST FOOD RESTAURANT DEFINED.—The tion ‘‘(2)’’ and merging all that remains of tion, the term ‘‘approved clinical trial pro- term ‘‘fast food restaurant’’ means any res- subsection (d) into a single sentence. gram’’ means a clinical trial program which taurant or chain of restaurants that pri- (B) EFFECTIVE DATE.—The amendment is approved by— marily distributes food through a customer made by subsection (a) shall be deemed to (A) the National Institutes of Health; pick-up (either at a counter or drive-through have taken effect on August 5, 1997. (B) a National Institutes of Health cooper- window). The Assistant Secretary may pro- (3) INCREASED FUNDING FOR ADMINISTRATIVE ative group or a National Institutes of mulgate regulations to clarify this subpara- COSTS RELATED TO OUTREACH AND ELIGIBILITY Health center; and graph to ensure that the intended inclusion DETERMINATIONS FOR CHILDREN.—Section (C) the National Cancer Institute, of establishments catering to individuals 1931(h) of the Social Security Act (42 U.S.C. with respect to programs that oversee and under 18 years of age is achieved. 1396u-1(h)) is amended— coordinate extramural clinical cancer re- (3) RESPONSIBLE ENTITY.—The term ‘‘re- (A) by striking the subsection caption and search, trials sponsored by such Institute sponsible entity’’ means, with respect to any inserting ‘‘(h) INCREASED FEDERAL MATCHING and conducted at designated cancer centers, public facility, the owner of such facility ex- RATE FOR ADMINISTRATIVE COSTS RELATED TO clinical trials, and Institute grants that sup- cept that, in the case of any such facility or OUTREACH AND ELIGIBILITY DETERMINATIONS port clinical investigators. portion thereof which is leased, such term FOR CHILDREN.—’’; (2) MODIFICATIONS IN APPROVED TRIALS.— means the lessee if the lessee is actively en- (B) in paragraph (2), by striking ‘‘eligi- Beginning 1 year after the date of enactment gaged in supervising day-to-day activity in bility determinations’’ and all that follows of this Act, the Secretary, in consultation the leased space. and inserting ‘‘determinations of the eligi- with the Cancer Policy Board of the Insti- SEC. 502. SMOKE-FREE ENVIRONMENT POLICY. bility of children for benefits under the State tute of Medicine, may modify or add to the (a) POLICY REQUIRED.—In order to protect plan under this title or title XXI, outreach requirements of paragraph (1) with respect to children and adults from cancer, respiratory to children likely to be eligible for such ben- an approved clinical trial program. disease, heart disease, and other adverse efits, and such other outreach- and eligi- (d) ROUTINE PATIENT CARE COSTS.— health effects from breathing environmental bility-related activities as the Secretary (1) IN GENERAL.—For purposes of this sec- tobacco smoke, the responsible entity for may approve.’’; tion, the term ‘‘routine patient care costs’’ each public facility shall adopt and imple- (C) in paragraph (3), by striking ‘‘and end- include the costs associated with the provi- ment at such facility a smoke-free environ- ing with fiscal year 2000 shall not exceed sion of items and services that— ment policy which meets the requirements $500,000,000’’ and inserting ‘‘shall not exceed (A) would otherwise be covered under the of subsection (b). $525,000,000’’; and Medicare program if such items and services (b) ELEMENTS OF POLICY.— (D) by striking paragraph (4). were not provided in connection with an ap- (1) IN GENERAL.—The responsible entity for (g) PERIODIC REASSESSMENT OF SPENDING proved clinical trial program; and a public facility shall— OPTIONS.—Spending options under subsection (B) are furnished according to the design of (A) prohibit the smoking of cigarettes, ci- (b)(2) will be reassessed jointly by the States an approved clinical trial program. gars, and pipes, and any other combustion of and Federal government every 5 years and be (2) EXCLUSION.—For purposes of this sec- tobacco within the facility and on facility reported to the Secretary. tion, the term ‘‘routine patient care costs’’ property within the immediate vicinity of SEC. 453. INDIAN HEALTH SERVICE. does not include the costs associated with the entrance to the facility; and Amounts available under section the provision of— (B) post a clear and prominent notice of 451(b)(2)(B) shall be provided to the Indian (A) an investigational drug or device, un- the smoking prohibition in appropriate and Health Service to be used for anti-tobacco- less the Secretary has authorized the manu- visible locations at the public facility. related consumption and cessation activities facturer of such drug or device to charge for (2) EXCEPTION.—The responsible entity for including— such drug or device; or a public facility may provide an exception to

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5057 the prohibition specified in paragraph (1) for ment of this Act at which, under the proce- shall promulgate regulations to implement 1 or more specially designated smoking areas dural rules of that legislature, a measure this section as necessary to apply this Act within a public facility if such area or areas under section 507 may be considered. and the Food, Drug, and Cosmetic Act (21 meet the requirements of subsection (c). SEC. 507. STATE CHOICE. U.S.C. 301 et seq.) with respect to tobacco (c) SPECIALLY DESIGNATED SMOKING Any State or local government may opt products manufactured, distributed, or sold AREAS.—A specially designated smoking out of this title by promulgating a State or on Indian lands. area meets the requirements of this sub- local law, subject to certification by the As- (2) SCOPE.—This Act and the Federal Food, section if— sistant Secretary that the law is as or more Drug, and Cosmetic Act (21 U.S.C. 301 et seq.) (1) the area is ventilated in accordance protective of the public’s health as this title, shall apply to the manufacture, distribution with specifications promulgated by the As- based on the best available science. Any and sale of tobacco products on Indian lands, sistant Secretary that ensure that air from State or local government may opt to en- including such activities by Indian tribes the area is directly exhausted to the outside force this title itself, subject to certification and members of such tribes. and does not recirculate or drift to other by the Assistant Secretary that the enforce- (3) TRIBAL TOBACCO RETAILER LICENSING areas within the public facility; ment mechanism will effectively protect the PROGRAM.— (2) the area is maintained at negative pres- public health. (A) IN GENERAL.—The requirements of this sure, as compared to adjoining nonsmoking TITLE VI—APPLICATION TO INDIAN Act with respect to the licensing of tobacco areas, as determined under regulations pro- TRIBES retailers shall apply to all retailers that sell mulgated by the Assistant Secretary; tobacco or tobacco products on Indian lands, (3) nonsmoking individuals do not have to SEC. 601. SHORT TITLE. This title may be cited as the ‘‘Reduction including Indian tribes, and members there- enter the area for any purpose while smok- in Tobacco Use and Regulation of Tobacco of. ing is occurring in such area; and Products in Indian Country Act of 1998’’. (B) IMPLEMENTATION.— (4) cleaning and maintenance work are SEC. 602. FINDINGS AND PURPOSES. (i) IN GENERAL.—An Indian tribe may im- conducted in such area only when no smok- plement and enforce a tobacco retailer li- ing is occurring in the area. (a) FINDINGS.—Congress finds that Native Americans have used tobacco products for censing and enforcement program on its In- SEC. 503. CITIZEN ACTIONS. recreational, ceremonial, and traditional dian lands consistent with the provisions of (a) IN GENERAL.—An action may be purposes for centuries. section 231 if the tribe is eligible under sub- brought to enforce the requirements of this (b) PURPOSE.—It is the purpose of this title paragraph (D). For purposes of this clause, title by any aggrieved person, any State or to— section 231 shall be applied to an Indian tribe local government agency, or the Assistant (1) provide for the implementation of this by substituting ‘‘Indian tribe’’ for ‘‘State’’ Secretary. Act with respect to the regulation of tobacco each place it appears, and an Indian tribe (b) VENUE.—Any action to enforce this products, and other tobacco-related activi- shall not be ineligible for grants under that title may be brought in any United States ties on Indian lands; section if the Secretary applies that section district court for the district in which the (2) recognize the historic Native American to the tribe by modifying it to address tribal defendant resides or is doing business to en- traditional and ceremonial use of tobacco population, land base, and jurisdictional fac- join any violation of this title or to impose products, and to preserve and protect the tors. a civil penalty for any such violation in the cultural, religious, and ceremonial uses of (ii) COOPERATION.—An Indian tribe and amount of not more than $5,000 per day of tobacco by members of Indian tribes; State with tobacco retailer licensing pro- violation. The district courts shall have ju- (3) recognize and respect Indian tribal sov- grams within adjacent jurisdictions should risdiction, without regard to the amount in ereignty and tribal authority to make and consult and confer to ensure effective imple- controversy or the citizenship of the parties, enforce laws regarding the regulation of to- mentation of their respective programs. to enforce this title and to impose civil pen- bacco distributors and tobacco products on (C) ENFORCEMENT.—The Secretary may alties under this title. Indian lands; and vest the responsibility for implementation (c) NOTICE.—An aggrieved person shall give (4) ensure that the necessary funding is and enforcement of a tobacco retailer licens- any alleged violator notice at least 60 days made available to tribal governments for li- ing program in— prior to commencing an action under this censing and enforcement of tobacco distribu- (i) the Indian tribe involved; section. No action may be commenced by an tors and tobacco products on Indian lands. (ii) the State within which the lands of the aggrieved person under this section if such Indian tribe are located pursuant to a vol- alleged violator complies with the require- SEC. 603. APPLICATION OF TITLE TO INDIAN LANDS AND TO NATIVE AMERICANS. untary cooperative agreement entered into ments of this title within such 60-day period (a) IN GENERAL.—The provisions of this Act by the State and the Indian tribe; or and thereafter. shall apply to the manufacture, distribution, (iii) the Secretary pursuant to subpara- (d) COSTS.—The court, in issuing any final graph (F). order in any action brought under this sec- and sale of tobacco or tobacco products on Indian lands, including such activities of an (D) ELIGIBILITY.—To be eligible to imple- tion, may award costs of litigation (includ- ment and enforce a tobacco retailer licensing ing reasonable attorney and expert witness Indian tribe or member of such tribe. (b) TRADITIONAL USE EXCEPTION.— program under section 231, the Secretary, in fees) to any prevailing plaintiff, whenever (1) IN GENERAL.—In recognition of the reli- consultation with the Secretary of Interior, the court determines such award is appro- gious, ceremonial, and traditional uses of to- must find that— priate. bacco and tobacco products by Indian tribes (i) the Indian tribe has a governing body (e) PENALTIES.—The court, in any action and the members of such tribes, nothing in that has powers and carries out duties that under this section to apply civil penalties, this Act shall be construed to permit an in- are similar to the powers and duties of State shall have discretion to order that such civil fringement upon upon the right of such or local governments; penalties be used for projects which further tribes or members of such tribes to acquire, (ii) the functions to be exercised relate to the policies of this title. The court shall ob- possess, use, or transfer any tobacco or to- activities conducted on its Indian lands; and tain the view of the Assistant Secretary in bacco product for such purposes, or to in- (iii) the Indian tribe is reasonably expected exercising such discretion and selecting any fringe upon the ability of minors to partici- to be capable of carrying out the functions such projects. pate and use tobacco products for such reli- required by the Secretary. (f) APPLICATION WITH OSHA.—Nothing in (E) DETERMINATIONS.—Not later than 90 this section affects enforcement of the Occu- gious, ceremonial, or traditional purposes. days after the date on which an Indian tribe pational Safety and Health Act of 1970. (2) APPLICATION OF PROVISIONS.—Paragraph (1) shall apply only to those quantities of to- submits an application for authority under SEC. 504. PREEMPTION. bacco or tobacco products necessary to ful- subparagraph (D), the Secretary shall make Nothing in this title shall preempt or oth- fill the religious, ceremonial, or traditional a determination concerning the eligibility of erwise affect any other Federal, State, or purposes of an Indian tribe or the members such tribe for such authority. Each tribe local law which provides greater protection of such tribe, and shall not be construed to found eligible under subparagraph (D) shall from health hazards from environmental to- permit the general manufacture, distribu- be eligible to enter into agreements for bacco smoke. tion, sale or use of tobacco or tobacco prod- block grants under section 231, to conduct a SEC. 505. REGULATIONS. ucts in a manner that is not in compliance licensing and enforcement program pursuant The Assistant Secretary is authorized to with this Act or the Federal Food, Drug, and to section 231, and for bonuses under section promulgate such regulations, after consult- Cosmetic Act (21 U.S.C. 301 et seq.) 232. ing with the Administrator of the Environ- (c) LIMITATION.—Nothing in this Act shall (F) IMPLEMENTATION BY THE SECRETARY.—If mental Protection Agency, as the Assistant be construed to permit an Indian tribe or the Secretary determines that the Indian Secretary deems necessary to carry out this member of such a tribe to acquire, possess, tribe is not willing or not qualified to admin- title. use, or transfer any tobacco or tobacco prod- ister a retail licensing and enforcement pro- SEC. 506. EFFECTIVE DATE. uct in violation of section 2341 of title 18, gram, the Secretary, in consultation with Except as provided in section 507, the pro- United States Code, with respect to the the Secretary of Interior, shall promulgate visions of this title shall take effect on the transportation of contraband cigarettes. regulations for a program for such tribes in first day of January next following the next (d) APPLICATION ON INDIAN LANDS.— the same manner as for States which have regularly scheduled meeting of the State leg- (1) IN GENERAL.—The Secretary, in con- not established a tobacco retailer licensing islature occurring after the date of enact- sultation with the Secretary of Interior, program under section 231(f).

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5058 CONGRESSIONAL RECORD — SENATE May 19, 1998

(G) DEFICIENT APPLICATIONS; OPPORTUNITY (v) other programs and services which have which the tobacco product manufacturer or TO CURE.— as their goal raising the health status of In- its other affiliates owned a 50 percent or (i) If the Secretary determines under sub- dians. greater interest; paragraph (F) that a Indian tribe is not eligi- (f) PREEMPTION.— (D) is a successor or assign of any of the ble to establish a tobacco retailer licensing (1) IN GENERAL.—Except as otherwise pro- foregoing; program, the Secretary shall— vided in this section, nothing in this Act (E) is an entity to which any of the fore- (I) submit to such tribe, in writing, a state- shall be construed to prohibit an Indian tribe going directly or indirectly makes, after the ment of the reasons for such determination from imposing requirements, prohibitions, date of enactment of this Act, a fraudulent of ineligibility; and penalties, or other measures to further the conveyance or a transfer that would other- (II) shall assist such tribe in overcoming purposes of this Act that are in addition to wise be voidable under part 5 of title 11 of any deficiencies that resulted in the deter- the requirements, prohibitions, or penalties the United States Code, but only to the ex- mination of ineligibility. required by this Act. tent of the interest or obligation transferred; (ii) After an opportunity to review and (2) PUBLIC EXPOSURE TO SMOKE.—Nothing in or cure such deficiencies, the tribe may re- this title shall be construed to preempt or (F) is an affiliate of a tobacco product apply to the Secretary for assistance under otherwise affect any Indian tribe rule or manufacturer. this subsection. practice that provides greater protections (9) CASTANO CIVIL ACTIONS.—The term (H) SECRETARIAL REVIEW.—The Secretary from the health hazard of environmental to- ‘‘Castano Civil Actions’’ means the following may periodically review the tribal tobacco bacco smoke. civil actions: Gloria Wilkinson Lyons et al. retailer licensing program of a tribe ap- (g) DISCLAIMER.—Nothing in this Act shall v. American Tobacco Co., et al. (USDC Ala- proved pursuant to subparagraph (E), includ- be construed to increase or diminish tribal bama 96-0881-BH; Agnes McGinty, et al. v. ing the effectiveness of the program, the or State jurisdiction on Indian lands with re- American Tobacco Co., et al. (USDC Arkan- tribe’s enforcement thereof, and the compat- spect to tobacco-related activities. sas LR-C-96-881); Willard R. Brown, et al. v. ibility of the tribe’s program with the pro- TITLE VII—TOBACCO CLAIMS R.J. Reynolds Co., et al. (San Diego, Califor- gram of the State in which the tribe is lo- SEC. 701. DEFINITIONS. nia-00711400); Gray Davis & James Ellis, et cated. The program shall be subject to all ap- In this title: al. R.J. Reynolds Tobacco Co., et al. (San plicable requirements of section 231. (1) AFFILIATE.—The term ‘‘affiliate’’ means Diego, California-00706458); Chester Lyons, et a person who directly or indirectly owns or al. v. Brown & Williamson Tobacco Corp., et (e) ELIGIBILITY FOR PUBLIC HEATH FUNDS.— controls, is owned or controlled by, or is al. (Fulton County, Georgia-E-59346); (1) ELIGIBILITY FOR GRANTS.— under common ownership or control with, Rosalyn Peterson, et al. v. American To- (A) For each fiscal year the Secretary may another person. For purposes of this defini- bacco Co., et al. (USDC Hawaii-97-00233-HG); award grants to Indian tribes from the fed- tion, ownership means ownership of an eq- Jean Clay , et al. v. American Tobacco Co., eral Account or other federal funds, except a uity interest, or the equivalent thereof, of et al. (USDC Illinois Benton Division-97-4167- tribe that is not a participating tobacco ten percent or more, and person means an in- JPG); William J. Norton, et al. v. RJR Na- product manufacturer (as defined in section dividual, partnership, committee, associa- bisco Holdings Corp., et al. (Madison County, 1402(a), for the same purposes as States and tion, corporation, or any other organization Indiana 48D01-9605-CP-0271); Alga Emig, et al. local governments are eligible to receive or group of persons. v. American Tobacco Co., et al. (USDC Kan- grants from the Federal Account as provided (2) CIVIL ACTION.—The term ‘‘civil action’’ sas-97-1121-MLB); Gloria Scott, et al. v. for in this Act. Indian tribes shall have the means any action, lawsuit, or proceeding American Tobacco Co., et al. (Orleans Par- flexibility to utilize such grants to meet the that is not a criminal action. ish, Louisiana-97-1178); Vern Masepohl, et al. unique health care needs of their service pop- (3) COURT.—The term ‘‘court’’ means any v. American Tobacco Co., et al. (USDC Min- ulations consistent with the goals and pur- judicial or agency court, forum, or tribunal nesota-3-96-CV-888); Matthew Tepper, et al. v. poses of Federal Indian health care law and within the United States, including without Philip Morris Incorporated, et al (Bergen policy. limitation any Federal, State, or tribal County, New Jersey-BER-L-4983-97-E); Carol (B) In promulgating regulations for the ap- court. A. Connor, et al. v. American Tobacco Co., et proval and funding of smoking cessation pro- (4) FINAL JUDGMENT.—The term ‘‘final al. (Bernalillo County, New Mexico-CV96- grams under section 221 the Secretary shall judgment’’ means a judgment on which all 8464); Edwin Paul Hoskins, et al. v. R.J. Rey- ensure that adequate funding is available to rights of appeal or discretionary review have nolds Tobacco Co., et al.; Josephine Stewart- address the high rate of smoking among Na- been exhausted or waived or for which the Lomantz v. Brown & Williamson Tobacco, et tive Americans. time to appeal or seek such discretionary re- al.; Rose Frosina, et al. v. Philip Morris In- (2) HEALTH CARE FUNDING.— view has expired. corporated, et al.; Catherine Zito, et al. v. (A) INDIAN HEALTH SERVICE.—Each fiscal (5) FINAL SETTLEMENT.—The term ‘‘final American Tobacco Co., et al.; Kevin year the Secretary shall disburse to the In- settlement’’ means a settlement agreement Mroczkowski, et al. v. Lorillard Tobacco dian Health Service from the National To- that is executed and approved as necessary Company, et al. (Supreme Court, New York bacco Settlement Trust Fund an amount de- to be fully binding on all relevant parties. County, New York-110949 thru 110953); Judith termined by the Secretary in consultation (6) INDIVIDUAL.—The term ‘‘individual’’ E. Chamberlain, et al. v. American Tobacco with the Secretary of the Interior equal to means a human being and does not include a Co., et al. (USDC Ohio-1:96CV2005); Brian the product of— corporation, partnership, unincorporated as- walls, et al. v. American Tobacco Co., et al. (i) the ratio of the total Indian health care sociation, trust, estate, or any other public (USDC Oklahoma-97-CV-218-H); Steven R. service population relative to the total popu- or private entity, State or local government, Arch, et al. v. American Tobacco Co., et al. lation of the United States; and or Indian tribe. (USDC Pennsylvania-96-5903-CN); Barreras- (ii) the amount allocated to the States (7) TOBACCO CLAIM.—The term ‘‘tobacco Ruiz, et al. v. American Tobacco Co., et al. each year from the State Litigation Trust claim’’ means a claim directly or indirectly (USDC Puerto Rico-96-2300-JAF); Joanne An- Account. arising out of, based on, or related to the derson, et al. v. American Tobacco Co., et al. (B) FUNDING.—The trustees of the Trust health-related effects of tobacco products, (Know County, Tennessee); Carlis Cole, et al. Fund shall for each fiscal year transfer to including without limitation a claim arising v. The Tobacco institute, Inc., et al. (USDC the Secretary from the State Litigation out of, based on or related to allegations re- Beaumont Texas Division-1:97CV0256); Carrol Trust Account the amount determined pur- garding any conduct, statement, or omission Jackson, et al. v. Philip Morris Incorporated, suant to paragraph (A). respecting the health-related effects of such et al. (Salt Lake County, Utah-CV No. 98- (C) USE OF HEALTH CARE TRUST FUNDS.— products. 0901634PI). Amounts made available to the Indian (8) TOBACCO PRODUCT MANUFACTURER.—The SEC. 702. APPLICATION; PREEMPTION. Health Service under this paragraph shall be term ‘‘tobacco product manufacturer’’ means (a) APPLICATION.—The provisions of this made available to Indian tribes pursuant to a person who— title govern any tobacco claim in any civil the provisions of the Indian Self Determina- (A) manufactures tobacco products for sale action brought in an State, Tribal, or Fed- tion and Education Assistance Act (25 U.S.C. in the United States after the date of enact- eral court, including any such claim that has 450b et seq.), shall be used to reduce tobacco ment of this Act, including tobacco products not reached final judgment or final settle- consumption, promote smoking cessation, for sale in the United States through an im- ment as of the date of enactment of this Act. and shall be used to fund health care activi- porter; (b) PREEMPTION.—This title supersedes ties including— (B) is, after the date of enactment of this State law only to the extent that State law (i) clinic and facility design, construction, Act, the first purchaser for resale in the applies to a matter covered by this title. Any repair, renovation, maintenance, and im- United States of tobacco products manufac- matter that is not governed by this title, in- provement; tured for sale outside of the United States; cluding any standard of liability applicable (ii) health care provider services and equip- (C) engaged in activities described in sub- to a manufacturer, shall be governed by any ment; paragraph (A) or (B) prior to the date of en- applicable State, Tribal, or Federal law. (iii) domestic and community sanitation actment of this Act, has not engaged in such (c) CRIMINAL LIABILITY UNTOUCHED.—Noth- associated with clinic and facility construc- activities after the date of enactment of this ing in this title shall be construed to limit tion and improvement; Act, and was not as of June 20, 1997, an affili- the criminal liability of tobacco product (iv) inpatient and outpatient services; and ate of a tobacco product manufacturer in manufacturers, retailers, or distributors, or

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5059 their officers, directors, employees, succes- (3) recommend, where necessary, addi- on a complaint without the participation sors, or assigns. tional measures individual tobacco compa- and consent of the complainant. SEC. 703. RULES GOVERNING TOBACCO CLAIMS. nies should undertake to meet those targets; (B) If, in response to a complaint under (a) GENERAL CAUSATION PRESUMPTION.—In and paragraph (1) of this subsection, the Sec- any civil action to which this title applies (4) include, where applicable, the extent to retary determines that a violation of this brought involving a tobacco claim, there which prior panel recommendations have paragraph has occurred, the Secretary shall shall be an evidentiary presumption that been adopted by each tobacco product manu- order the person who committed such viola- nicotine is addictive and that the diseases facturer. tion to (i) take affirmative action to abate identified as being caused by use of tobacco SEC. 802. TOBACCO PRODUCT MANUFACTURER the violation, and (ii) reinstate the com- products in the Center for Disease Control EMPLOYEE PROTECTION. plainant to his or her former position to- and Prevention Reducing the Health Con- (a) PROHIBITED ACTS.—No tobacco product gether with compensation (including back sequences of Smoking: 25 Years of Progress: manufacturer may discharge, demote, or pay), terms, conditions, and privileges of his A Report of the Surgeon General (United otherwise discriminate against any em- or her employment. The Secretary may States Public Health Service 1989), The ployee with respect to compensation, terms, order such person to provide compensatory Health Consequences of Smoking: Involun- conditions, benefits, or privileges of employ- damages to the complainant. If an order is tary Smoking, (USPHS 1986); and The Health ment because the employee (or any person issued under this subparagraph, the Sec- Consequences of Using Smokeless Tobacco, acting under a request of the employee)— retary, at the request of the complainant, (USPHS 1986), are caused in whole or in part (1) notified the manufacturer, the Commis- shall assess the person against whom the by the use of tobacco products, (hereinafter sioner of Food and Drugs, the Attorney Gen- order is issued a sum equal to the aggregate referred to as the ‘‘general causation pre- eral, or any Federal, State, or local public amount of all costs and expenses (including sumption’’), and a jury empaneled to hear a health or law enforcement authority of an attorneys’ and expert witness fees) reason- tobacco claim shall be so instructed. In all alleged violation of this or any other Act; ably incurred (as determined by the Sec- other respects, the burden of proof as to the (2) refused to engage in any practice made retary), by the complainant for, or in con- issue of whether a plaintiff’s specific disease unlawful by such Acts, if the employee has nection with, the bringing of the complaint or injury was caused by smoking shall be identified the alleged illegality to the manu- upon which the order is issued. governed by the law of the State or Tribe in facturer; (3)(A) The Secretary shall dismiss a com- which the tobacco claim was brought. This (3) testified before Congress or at any Fed- plaint filed under paragraph (1) of this sub- general causation presumption shall in no eral or State proceeding regarding any provi- section, and shall not conduct the investiga- way affect the ability of the defendant to in- sion (or proposed provision) of such Acts; tion required under paragraph (2) of this sub- troduce evidence or argument which the de- (4) commenced, caused to be commenced, section, unless the complainant has made a fendant would otherwise be entitled to or is about to commence or cause to be com- prima facie showing that any behavior de- present under the law of the State or Tribe menced a proceeding under such Acts, or a scribed in subsection (a) of this section was in which the tobacco claim was brought to proceeding for the administration or enforce- a contributing factor in the unfavorable per- rebut the general causation presumption, or ment of any requirement imposed under such sonnel action alleged in the complaint. with respect to general causation, specific (B) Notwithstanding a finding by the Sec- causation, or alternative causation, or to in- Acts; (5) testified or is about to testify in any retary that the complainant has made the troduce any other evidence or argument showing required by subparagraph (A) of this which the defendant would otherwise be enti- such proceeding; or (6) assisted or participated, or is about to paragraph, no investigation required under tled to make. paragraph (2) of this subsection shall be con- (b) ACTIONS AGAINST PARTICIPATING TO- assist or participate, in any manner in such a proceeding or in any other manner in such ducted if the manufacturer demonstrates by BACCO PRODUCT MANUFACTURERS.—In any clear and convincing evidence that it would civil action brought involving a tobacco a proceeding or in any other action to carry out the purposes of such Acts. have taken the same unfavorable personnel claim against participating tobacco product action in the absence of such behavior. Relief (b) EMPLOYEE COMPLAINT.— manufacturers, as that term is defined in may not be ordered under paragraph (1) of (1) Any employee of a tobacco product title XIV, the provisions of title XIV apply this subsection if the manufacturer dem- manufacturer who believes that he or she in conjunction with the provisions of this onstrates by clear and convincing evidence has been discharged, demoted, or otherwise title. that it would have taken the same unfavor- discriminated against by any person in viola- TITLE VIII—TOBACCO INDUSTRY AC- able personnel action in the absence of such tion of subsection (a) of this section may, COUNTABILITY REQUIREMENTS AND behavior. within 180 days after such violation occurs, EMPLOYEE PROTECTION FROM REPRIS- (C) The Secretary may determine that a file (or have any person file on his or her be- ALS violation of subsection (a) of this section has half) a complaint with the Secretary alleg- SEC. 801. ACCOUNTABILITY REQUIREMENTS AND occurred only if the complainant has dem- ing such discharge, demotion, or discrimina- OVERSIGHT OF THE TOBACCO IN- onstrated that any behavior described in tion. Upon receipt of such a complaint, the DUSTRY. subsection (a) of this section was a contrib- Secretary shall notify the person named in (a) ACCOUNTABILITY.—The Secretary, fol- uting factor in unfavorable personnel action the complaint of its filing. lowing regular consultation with the Com- alleged in the complaint. (2)(A) Upon receipt of a complaint under missioner of Food and Drugs, the Surgeon (c) JUDICIAL REVIEW.— paragraph (1) of this subsection, the Sec- General, the Director of the Center for Dis- (1) Any person adversely affected or ag- retary shall conduct an investigation of the ease Control or the Director’s delegate, and grieved by an order issued under subsection violation alleged in the complaint. Within 30 the Director of the Health and Human Serv- (a) of this section may obtain review of the days after the receipt of such complaint, the ices Office of Minority Health shall annually order in the United States court of appeals Secretary shall complete such investigation issue a report as provided for in subsection for the circuit in which the violation, with and shall notify in writing the complainant (c). respect to which the order was issued, alleg- (and any such person acting in his or her be- (b) TOBACCO COMPANY PLAN.—Within a year edly occurred. The petition for review must half) and the person alleged to have commit- after the date of enactment of this Act, each be filed within 60 days after the issuance of ted such violation of the results of the inves- participating tobacco product manufacturer the Secretary’s order. Judicial review shall tigation conducted under this paragraph. shall adopt and submit to the Secretary a be available as provided in chapter 7 of title Within 90 days after the receipt of such com- plan to achieve the required percentage re- 5, United States Code. The commencement of plaint, the Secretary shall (unless the pro- ductions in underage use of tobacco products proceedings under this subsection shall not, ceeding on the complaint is terminated by set forth in section 201, and thereafter shall unless ordered by the court, operate as a the Secretary on the basis of a settlement update its plan no less frequently than annu- stay of the Secretary’s order. entered into by the Secretary and the person ally. The annual report of the Secretary may (2) An order of the Secretary with respect alleged to have committed such violation) recommend amendment of any plan to incor- to which review could have been obtained issue an order either providing the relief pre- porate additional measures to reduce under- under paragraph (1) of this subsection shall scribed in subparagraph (B) of this paragraph age tobacco use that are consistent with the not be subject to judicial review in any or denying the complaint. An order of the provisions of this Act. criminal or civil proceeding. (c) ANNUAL REPORT.—The Secretary shall Secretary shall be made on the record after (d) NONCOMPLIANCE.—Whenever a person submit a report to the Congress by January notice and the opportunity for a hearing in has failed to comply with an order issued 31 of each year, which shall be published in accordance with sections 554 and 556 of title under subsection (b)(2) of this section, the the Federal Register. The report shall— 5, United States Code. Upon the conclusion Secretary may file a civil action in the (1) describe in detail each tobacco product of such a hearing and the issuance of a rec- United States district court for the district manufacturer’s compliance with the provi- ommended decision that the complaint has in which the violation occurred to enforce sions of this Act and its plan submitted merit, the Secretary shall issue a prelimi- such order. In actions brought under this under subsection (b); nary order providing the relief prescribed in subsection, the district courts shall have ju- (2) report on whether each tobacco product subparagraph (B) of this paragraph, but may risdiction to grant all appropriate relief, in- manufacturer’s efforts to reduce underage not order compensatory damages pending a cluding injunctive relief and compensatory smoking are likely to result in attainment of final order. The Secretary may not enter and exemplary damages. smoking reduction targets under section 201; into a settlement terminating a proceeding (e) ACTION TO ENSURE COMPLIANCE.—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5060 CONGRESSIONAL RECORD — SENATE May 19, 1998

(1) Any person on whose behalf an order U.S.C. 379) and the regulations promulgated (c) DOCUMENT CATEGORIES.—Each tobacco was issued under subsection (b)(2) of this sec- thereunder. Nothing herein shall limit the product manufacturer shall submit— tion may commence a civil action to require authority of the Administration to obtain (1) every existing document (including any compliance with such order against the per- and use, in accordance with any provision of document subject to a claim of attorney-cli- son to whom such order was issued. The ap- the Federal Food, Drug, and Cosmetic Act ent privilege, attorney work product, or propriate United States district court shall and the regulations promulgated thereunder, trade secret protection) in the manufactur- have jurisdiction to enforce such order, with- any document constituting or containing er’s possession, custody, or control relating, out regard to the amount in controversy or trade secret material. Documents and mate- referring, or pertaining to— the citizenship of the parties. rials received by the Administration under (A) any studies, research, or analysis of (2) The court, in issuing any final order this provision shall not be obtainable by or any possible health or pharmacological ef- under this subsection, may award costs of releasable to the public through section 552 fects in humans or animals, including addic- litigation (including reasonable attorneys’ of title 5, United States Code, or any other tion, associated with the use of tobacco prod- and expert witness fees) to any party when- provision of law, and the only recourse to ob- ucts or components of tobacco products; ever the court determines such award is ap- tain these documents shall be through the (B) the engineering, manipulation, or con- propriate. process established by section 905. trol of nicotine in tobacco products; (f) ENFORCEMENT.—Any non-discretionary (3) If a document depository is not estab- (C) the sale or marketing of tobacco prod- duty imposed by this section shall be en- lished under title XIV, the Secretary shall ucts; forceable in a mandamus proceeding brought establish by regulation a procedure for mak- (D) any research involving safer or less under section 1361 of title 28, United States ing public all documents submitted under hazardous tobacco products; Code. paragraph (1) except documents for which (E) tobacco use by minors; or (g) APPLICABILITY TO CERTAIN EMPLOY- trade secret protection has been claimed and (F) the relationship between advertising or EES.—Subsection (a) of this section shall not for which there has not been a final judicial promotion and the use of tobacco products; apply with respect to any employee who, act- determination that the document does not (2) all documents produced by any tobacco ing without direction from the manufacturer contain a trade secret. product manufacturer, the Center of Tobacco (or the agent of the manufacturer) delib- Research or Tobacco Institute to the Attor- (b) SEPARATE SUBMISSION OF DOCUMENTS.— erately causes a violation of any require- ney General of any State during discovery in (1) (1) PRIVILEGED TRADE SECRET DOCU- ment of this Act, the Federal Food, Drug, any action brought on behalf of any State MENTS.—Any document required to be sub- and commenced after January 1, 1994; and Cosmetic Act (21 U.S.C. 301 et seq), or mitted under subsection (c) or (d) that is any other law or regulation relating to to- (3) all documents produced by any tobacco subject to a claim by a tobacco product man- product manufacturer, Center for Tobacco bacco products. ufacturer of attorney-client privilege, attor- (h) EFFECT ON OTHER LAWS.—This section Research or Tobacco Institute to the Federal ney work product, or trade secret protection shall not be construed to expand, diminish, Trade Commission in connection with its in- shall be so marked and shall be submitted to or otherwise affect any right otherwise vestigation into the ‘‘Joe Camel’’ advertising the panel under section 904 within 30 days available to an employee under Federal or campaign and any underage marketing of to- after its appointment. Compliance with this State law to redress the employee’s dis- bacco products to minors; subsection shall not be deemed to be a waiv- charge or other discriminatory action taken (4) all documents produced by any tobacco er of any applicable claim of privilege or by a tobacco product manufacturer against product manufacturers, the Center for To- trade secret protection. the employee. bacco Research or the Tobacco Institute to (2) PRIVILEGE AND TRADE SECRET LOGS.— (i) POSTING.—The provisions of this section litigation adversaries during discovery in shall be prominently posted in any place of (A) IN GENERAL.—Within 15 days after sub- any private litigation matters; employment to which this section applies. mitting documents under paragraph (1), each (5) all documents produced by any tobacco tobacco product manufacturer shall submit a product manufacturer, the Center for To- TITLE IX—PUBLIC DISCLOSURE OF comprehensive log which identifies on a doc- TOBACCO INDUSTRY DOCUMENTS bacco Research, or the Tobacco Institute in ument-by-document basis all documents pro- any of the following private litigation mat- SEC. 901. FINDINGS. duced for which the manufacturer asserts at- ters: The Congress finds that— torney-client privilege, attorney work-prod- (A) Philip Morris v. American Broadcast- (1) the American tobacco industry has uct, or trade secrecy. With respect to docu- ing Co., Law No. 7609CL94x00181-00 (Cir. Ct. made claims of attorney-client privilege, at- ments for which the manufacturer pre- Va. filed Mar. 26, 1994); torney work product, and trade secrets to viously has asserted one or more of the (B) Estate of Butler v. R.J. Reynolds To- protect from public disclosure thousands of aforementioned privileges or trade secret bacco Co., Civ. A. No. 94-5-53 (Cir. Ct. Miss., internal documents sought by civil litigants; protection, the manufacturer shall conduct a filed May 12, 1994); (2) a number of courts have found that good faith de novo review of such documents (C) Haines v. Liggett Group, No. 84-CV-678 these claims of privilege were not made in to determine whether such privilege or trade (D.N.J., filed Feb. 22, 1984); and good faith; and secret protection is appropriate. (D) Cipollone v. Liggett Group, No. 83-CV- (3) a prompt and full exposition of tobacco (B) ORGANIZATION OF LOG.—The log shall be 284 (D.N.J., filed Aug. 1, 1983); documents will— organized in numerical order based upon the (6) any document produced as evidence or (A) promote understanding by the public of document identifier assigned to each docu- potential evidence or submitted to the De- the tobacco industry’s research and prac- ment. For each document, the log shall con- pository by tobacco product manufacturers tices; and tain— in any of the actions described in paragraph (B) further the purposes of this Act. (i) a description of the document, including (5), including briefs and other pleadings, SEC. 902. APPLICABILITY. type of document, title of document, name memoranda, interrogatories, transcripts of This title applies to all tobacco product and position or title of each author, ad- depositions, and expert witnesses and con- manufacturers. dressee, and other recipient who was in- sultants materials, including correspond- SEC. 903. DOCUMENT DISCLOSURE. tended to receive a copy, document date, ence, reports, and testimony; (a) DISCLOSURE TO THE FOOD AND DRUG AD- document purpose, and general subject mat- (7) any additional documents that any to- MINISTRATION.— ter; bacco product manufacturer, the Center for (1) Within 60 days after the date of enact- (ii) an explanation why the document or a Tobacco Research, or the Tobacco Institute ment of this Act, each tobacco product man- portion of the document is privileged or sub- have agreed or been required by any court to ufacturer shall submit to the Food and Drug ject to trade secret protection; and produce to litigation adversaries as part of Administration the documents identified in (iii) a statement whether any previous discovery in any action listed in paragraph subsection (c), including documents for claim of privilege or trade secret was denied (2), (3), (4), or (5) but have not yet completed which trade secret protection is claimed, and, if so, in what proceeding. producing as of the date of enactment of this with the exception of any document for (C) PUBLIC INSPECTION.—Within 5 days of Act; which privilege is claimed, and identified in receipt of such a log, the Depository shall (8) all indices of documents relating to to- accordance with subsection (b). Each such make it available for public inspection and bacco products and health, with any such in- manufacturer shall provide the Administra- review. dices that are maintained in computerized tion with the privilege and trade secret logs (3) DECLARATION OF COMPLIANCE.—Each to- form placed into the depository in both a identified under subsection (b). bacco product manufacturer shall submit to computerized and hard-copy form; (2) With respect to documents that are the Depository a declaration, in accordance (9) a privilege log describing each docu- claimed to contain trade secret material, un- with the requirements of section 1746 of title ment or portion of a document otherwise less and until it is finally determined under 28, United States Code, by an individual with subject to production in the actions enumer- this title, either through judicial review or responsibility for the de novo review of docu- ated in this subsection that any tobacco because time for judicial review has expired, ments, preparation of the privilege log, and product manufacturer, the Center for To- that such a document does not constitute or knowledge of its contents. The declarant bacco Research, or the Tobacco Institute contain trade secret material, the Adminis- shall attest to the manufacturer’s compli- maintains, based upon a good faith de novo tration shall treat the document as a trade ance with the requirements of this sub- re-review conducted after the date of enact- secret in accordance with section 708 of the section pertaining to the review of docu- ment of this Act is exempt from public dis- Federal Food, Drug, and Cosmetic Act (21 ments and preparation of a privilege log. closure under this title; and

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5061 (10) a trade secrecy log describing each Court for the District of Columbia under sec- The court shall review the panel’s legal con- document or portion of a document that any tion 2284 of title 28, United States Code. The clusions de novo. The judgment of the court tobacco product manufacturer, the Center panel may appoint special masters, employ affirming or setting aside the panel’s deci- for Tobacco Research, or the Tobacco Insti- such personnel, and establish such proce- sion shall be final, subject to review by the tute maintains is exempt from public disclo- dures as it deems necessary to carry out its Supreme Court of the United States upon sure under this title. functions under this title. certiorari or certification, as provided in sec- (d) FUTURE DOCUMENTS.—With respect to (b) PRIVILEGE.—The panel shall apply the tion 1254 of title 28, United States Code. documents created after the date of enact- attorney-client privilege, the attorney work- (d) PUBLIC DISCLOSURE AFTER FINAL DECI- ment of this Act, the tobacco product manu- product doctrine, and the trade secret doc- SION.—Within 30 days after a final decision facturers and their trade associations shall— trine in a manner consistent with Federal that a document, as redacted by the panel or (1) place the documents in the depository; law. in its entirety, is not protected from disclo- and SEC. 905. RESOLUTION OF DISPUTED PRIVILEGE sure by a claim of attorney-client privilege, (2) provide a copy of the documents to the AND TRADE SECRET CLAIMS. attorney work product, or trade secret pro- Food and Drug Administration (with the ex- (a) IN GENERAL.—The panel shall deter- tection, the panel shall direct that the docu- ception of documents subject to a claim of mine whether to uphold or reject disputed ment be made available to the Commissioner attorney-client privilege or attorney work claims of attorney client privilege, attorney of Food and Drugs under section 903(a). No product). work product, or trade secret protection Federal, Tribal, or State court shall have ju- (1) Every existing document (including any with respect to documents submitted. Any risdiction to review a claim of attorney-cli- document subject to a claim of attorney-cli- person may petition the panel to resolve a ent privilege, attorney work product, or ent privilege, attorney work product, or claim that a document submitted may not be trade secret protection for a document that trade secret protection) in the manufactur- disclosed to the public. Such a determina- has lawfully been made available to the pub- er’s possession, custody, or control relating, tion shall be made by a majority of the lic under this subsection. referring, or pertaining to— panel, in writing, and shall be subject to ju- (e) EFFECT OF NON-DISCLOSURE DECISION ON (A) any studies, research, or analysis of dicial review as specified in this title. All JUDICIAL PROCEEDINGS.—The panel’s decision any possible health or pharmacological ef- such determinations shall be made solely on that a document is protected by attorney- fects in humans or animals, including addic- consideration of the subject document and client privilege, attorney work product, or tion, associated with the use of tobacco prod- written submissions from the person claim- trade secret protection is binding only for ucts or components of tobacco products; ing that the document is privileged or pro- the purpose of protecting the document from (B) the engineering, manipulation, or con- tected by trade secrecy and from any person disclosure by the Depository. The decision trol of nicotine in tobacco products; seeking disclosure of the document. The by the panel shall not be construed to pre- (C) the sale or marketing of tobacco prod- panel shall cause notice of the petition and vent a document from being disclosed in a ucts; the panel’s decision to be published in the judicial proceeding or interfere with the au- (D) any research involving safer or less Federal Register. thority of a court to determine whether a hazardous tobacco products; (b) FINAL DECISION.—The panel may uphold document is admissible or whether its pro- (E) tobacco use by minors; or a claim of privilege or protection in its en- duction may be compelled. (F) the relationship between advertising or tirety or, in its sole discretion, it may redact SEC. 907. MISCELLANEOUS. promotion and the use of tobacco products; that portion of a document that it deter- The disclosure process in this title is not (2) Every existing document (including any mines is protected from public disclosure intended to affect the Federal Rules of Civil document subject to a claim of attorney-cli- under subsection (a). Any decision of the or Criminal Procedure or any Federal law ent privilege, attorney work product, or panel shall be final unless judicial review is which requires the disclosure of documents trade secret protection) in the manufactur- sought under section 906. In the event that or which deals with attorney-client privi- er’s possession, custody, or control— judicial review is so sought, the panel’s deci- lege, attorney work product, or trade secret (A) produced, or ordered to be produced, by sion shall be stayed pending a final judicial protection. the tobacco product manufacturer in any decision. SEC. 908. PENALTIES. health-related civil or criminal proceeding, SEC. 906. APPEAL OF PANEL DECISION. (a) GOOD FAITH REQUIREMENT.—Each to- judicial or administrative; and (a) PETITION; RIGHT OF APPEAL.—Any per- bacco product manufacturer shall act in (B) that the panel established under sec- son may obtain judicial review of a final de- good faith in asserting claims of privilege or tion 906 determines is appropriate for sub- cision of the panel by filing a petition for re- trade secret protection based on fact and mission. view with the United States Court of Appeals law. If the panel determines that a tobacco (3) All studies conducted or funded, di- for the Federal Circuit within 60 days after product manufacturer has not acted in good rectly or indirectly, by any tobacco product the publication of such decision in the Fed- faith with full knowledge of the truth of the manufacturer, relating to tobacco product eral Register. A copy of the petition shall be facts asserted and with a reasonable basis use by minors. transmitted by the Clerk of the Court to the under existing law, the manufacturer shall (4) All documents discussing or referring to panel. The panel shall file in the court the be assessed costs, which shall include the full the relationship, if any, between advertising record of the proceedings on which the panel administrative costs of handling the claim of and promotion and the use of tobacco prod- based its decision (including any documents privilege, and all attorneys’ fees incurred by ucts by minors. reviewed by the panel in camera) as provided the panel and any party contesting the privi- (5) A privilege log describing each docu- in section 2112 of title 28, United States lege. The panel may also impose civil pen- ment or each portion of a document other- Code. Upon the filing of such petition, the alties of up to $50,000 per violation if it deter- wise subject to public disclosure under this court shall have exclusive jurisdiction to af- mines that the manufacturer acted in bad subsection that any tobacco product manu- firm or set aside the panel’s decision, except faith in asserting a privilege, or knowingly facturer maintains is exempt from public that until the filing of the record the panel acted with the intent to delay, frustrate, de- disclosure under this title. may modify or set aside its decision. fraud, or obstruct the panel’s determination (6) A trade secrecy log describing each doc- (b) ADDITIONAL EVIDENCE AND ARGU- of privilege, attorney work product, or trade ument or each portion of a document other- MENTS.—If the any party applies to the court secret protection claims. wise subject to public disclosure under this for leave to adduce additional evidence re- (b) FAILURE TO PRODUCE DOCUMENT.—A subsection that any tobacco product manu- specting the decision being reviewed and failure by a tobacco product manufacturer to facturer, the Center for Tobacco Research, or shows to the satisfaction of the court that produce indexes and documents in compli- the Tobacco Institute maintains is exempt such additional evidence or arguments are ance with the schedule set forth in this title, from public disclosure under this Act. material and that there were reasonable or with such extension as may be granted by (e) DOCUMENT IDENTIFICATION AND INDEX.— grounds for the failure to adduce such evi- the panel, shall be punished by a civil pen- Documents submitted under this section dence or arguments in the proceedings before alty of up to $50,000 per violation. A separate shall be sequentially numbered and marked the panel, the court may order the panel to violation occurs for each document the man- to identify the tobacco product manufac- provide additional opportunity for the pres- ufacturer has failed to produce in a timely turer. Within 15 days after submission of entation of evidence or arguments in such manner. The maximum penalty under this documents, each tobacco product manufac- manner and upon such terms as the court subsection for a related series of violations is turer shall supply the panel with a com- deems proper. The panel may modify its $5,000,000. In determining the amount of any prehensive document index which references findings or make new findings by reason of civil penalty, the panel shall consider the the applicable document categories con- the additional evidence or arguments and number of documents, length of delay, any tained in subsection (b). shall file with the court such modified or history of prior violations, the ability to SEC. 904. DOCUMENT REVIEW. new findings, and its recommendation, if pay, and such other matters as justice re- (a) AJUDICATION OF PRIVILEGE CLAIMS.—An any, for the modification or setting aside of quires. Nothing in this title shall replace or claim of attorney-client privilege, trade se- the decision being reviewed. supersede any criminal sanction under title cret protection, or other claim of privilege (c) STANDARD OF REVIEW; FINALITY OF 18, United States Code, or any other provi- with respect to a document required to be JUDGMENTS.—The panel’s findings of fact, if sion of law. submitted by this title shall be heard by a 3- supported by substantial evidence on the SEC. 909. DEFINITIONS. judge panel of the United States District record taken as a whole, shall be conclusive. For the purposes of this title—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5062 CONGRESSIONAL RECORD — SENATE May 19, 1998

(1) DOCUMENT.—The term ‘‘document’’ in- bacco farm marketing quota or farm acreage ment to provide payments to States and eli- cludes originals and drafts of any kind of allotment established under the Agricultural gible persons in accordance with this title. written or graphic matter, regardless of the Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) Subtitle B—Tobacco Market Transition manner of production or reproduction, of any for any of the 1995, 1996, or 1997 crop years; Assistance kind or description, whether sent or received and SEC. 1021. PAYMENTS FOR LOST TOBACCO or neither, and all copies thereof that are (B) is not a quota holder or quota lessee. QUOTA. different in any way from the original (5) SECRETARY.—The term ‘‘Secretary’’ (a) IN GENERAL.—Beginning with the 1999 (whether by interlineation, receipt stamp, means— marketing year, the Secretary shall make notation, indication of copies sent or re- (A) in subtitles A and B, the Secretary of payments for lost tobacco quota to eligible ceived or otherwise) regardless of whether Agriculture; and quota holders, quota lessees, and quota ten- confidential, privileged, or otherwise, includ- (B) in section 1031, the Secretary of Labor. ants as reimbursement for lost tobacco ing any paper, book, account, photograph, (6) TOBACCO PRODUCT IMPORTER.—The term quota. blueprint, drawing, agreement, contract, ‘‘tobacco product importer’’ has the meaning (b) ELIGIBILITY.—To be eligible to receive memorandum, advertising material, letter, given the term ‘‘importer’’ in section 5702 of payments under this section, a quota holder, telegram, object, report, record, transcript, the Internal Revenue Code of 1986. quota lessee, or quota tenant shall— study, note, notation, working paper, intra- (7) TOBACCO PRODUCT MANUFACTURER.— (1) prepare and submit to the Secretary an office communication, intra-department (A) IN GENERAL.—The term ‘‘tobacco prod- application at such time, in such manner, communication, chart, minute, index sheet, uct manufacturer’’ has the meaning given and containing such information as the Sec- routing sheet, computer software, computer the term ‘‘manufacturer of tobacco prod- retary may require, including information data, delivery ticket, flow sheet, price list, ucts’’ in section 5702 of the Internal Revenue sufficient to make the demonstration re- quotation, bulletin, circular, manual, sum- Code of 1986. quired under paragraph (2); and mary, recording of telephone or other con- (B) EXCLUSION.—The term ‘‘tobacco prod- (2) demonstrate to the satisfaction of the versation or of interviews, or of conferences, uct manufacturer’’ does not include a person Secretary that, with respect to the 1997 mar- or any other written, recorded, transcribed, that manufactures cigars or pipe tobacco. keting year— punched, taped, filmed, or graphic matter, (8) TOBACCO WAREHOUSE OWNER.—The term (A) the producer was a quota holder and re- regardless of the manner produced or repro- ‘‘tobacco warehouse owner’’ means a ware- alized income (or would have realized in- duced. Such term also includes any tape, re- houseman that participated in an auction come, as determined by the Secretary, but cording, videotape, computerization, or market (as defined in the first section of the for a medical hardship or crop disaster dur- other electronic recording, whether digital Tobacco Inspection Act (7 U.S.C. 511)) during ing the 1997 marketing year) from the pro- or analog or a combination thereof. the 1998 marketing year. duction of tobacco through— (2) TRADE SECRET.—The term ‘‘trade se- (9) FLUE-CURED TOBACCO.—The term ‘‘flue- (i) the active production of tobacco; cret’’ means any commercially valuable cured tobacco’’ includes type 21 and type 37 (ii) the lease and transfer of tobacco quota plan, formula, process, or device that is used tobacco. to another farm; for making, compounding, processing, or pre- (iii) the rental of all or part of the farm of Subtitle A—Tobacco Community the quota holder, including the right to paring trade commodities and that can be Revitalization said to be the end-product of either innova- produce tobacco, to another tobacco pro- SEC. 1011. AUTHORIZATION OF APPROPRIATIONS. ducer; or tion or substantial effort, for which there is There are appropriated and transferred to a direct relationship between the plan, for- (iv) the hiring of a quota tenant to produce the Secretary for each fiscal year such tobacco; mula, process, or device and the productive amounts from the National Tobacco Trust process. (B) the producer was a quota lessee; or Fund established by section 401, other than (C) the producer was a quota tenant. (3) CERTAIN ACTIONS DEEMED TO BE PRO- from amounts in the State Litigation Settle- (c) BASE QUOTA LEVEL.— CEEDINGS.—Any action undertaken under ment Account, as may be necessary to carry (1) IN GENERAL.—The Secretary shall deter- this title, including the search, indexing, and out the provisions of this title. mine, for each quota holder, quota lessee, production of documents, is deemed to be a SEC. 1012. EXPENDITURES. and quota tenant, the base quota level for ‘‘proceeding’’ before the executive branch of The Secretary is authorized, subject to ap- the 1995 through 1997 marketing years. the United States. propriations, to make payments under— (2) QUOTA HOLDERS.—The base quota level (4) OTHER TERMS.—Any term used in this (1) section 1021 for payments for lost to- for a quota holder shall be equal to the aver- title that is defined in section 701 has the bacco quota for each of fiscal years 1999 age tobacco farm marketing quota estab- meaning given to it by that section. through 2023, but not to exceed $1,650,000,000 lished for the farm owned by the quota hold- TITLE X—LONG-TERM ECONOMIC for any fiscal year except to the extent the er for the 1995 through 1997 marketing years. ASSISTANCE FOR FARMERS payments are made in accordance with sub- (3) QUOTA LESSEES.—The base quota level SEC. 1001. SHORT TITLE. section (d)(12) or (e)(9) of section 1021; for a quota lessee shall be equal to— This title may be cited as the ‘‘Long-Term (2) section 1022 for industry payments for (A) 50 percent of the average number of Economic Assistance for Farmers Act’’ or all costs of the Department of Agriculture pounds of tobacco quota established for the the ‘‘LEAF Act’’. associated with the production of tobacco; farm for the 1995 through 1997 marketing SEC. 1002. DEFINITIONS. (3) section 1023 for tobacco community eco- years— In this title: nomic development grants, but not to ex- (i) that was leased and transferred to a (1) PARTICIPATING TOBACCO PRODUCER.—The ceed— farm owned by the quota lessee; or term ‘‘participating tobacco producer’’ (A) $375,000,000 for each of fiscal years 1999 (ii) that was rented to the quota lessee for means a quota holder, quota lessee, or quota through 2008, less any amount required to be the right to produce the tobacco; less tenant. paid under section 1022 for the fiscal year; (B) 25 percent of the average number of (2) QUOTA HOLDER.—The term ‘‘quota hold- and pounds of tobacco quota described in sub- er’’ means an owner of a farm on January 1, (B) $450,000,000 for each of fiscal year 2009 paragraph (A) for which a quota tenant was 1998, for which a tobacco farm marketing through 2023, less any amount required to be the principal producer of the tobacco quota. quota or farm acreage allotment was estab- paid under section 1022 during the fiscal (4) QUOTA TENANTS.—The base quota level lished under the Agricultural Adjustment year; for a quota tenant shall be equal to the sum Act of 1938 (7 U.S.C. 1281 et seq.). (4) section 1031 for assistance provided of— (3) QUOTA LESSEE.—The term ‘‘quota les- under the tobacco worker transition pro- (A) 50 percent of the average number of see’’ means— gram, but not to exceed $25,000,000 for any pounds of tobacco quota established for a (A) a producer that owns a farm that pro- fiscal year; and farm for the 1995 through 1997 marketing duced tobacco pursuant to a lease and trans- (5) subpart 9 of part A of title IV of the years— fer to that farm of all or part of a tobacco Higher Education Act of 1965 for farmer op- (i) that was owned by a quota holder; and farm marketing quota or farm acreage allot- portunity grants, but not to exceed— (ii) for which the quota tenant was the ment established under the Agricultural Ad- (A) $42,500,000 for each of the academic principal producer of the tobacco on the justment Act of 1938 (7 U.S.C. 1281 et seq.) for years 1999–2000 through 2003–2004; farm; and any of the 1995, 1996, or 1997 crop years; or (B) $50,000,000 for each of the academic (B) 25 percent of the average number of (B) a producer that rented land from a years 2004–2005 through 2008–2009; pounds of tobacco quota for the 1995 through farm operator to produce tobacco under a to- (C) $57,500,000 for each of the academic 1997 marketing years— bacco farm marketing quota or farm acreage years 2009–2010 through 2013–2014; (i)(I) that was leased and transferred to a allotment established under the Agricultural (D) $65,000,000 for each of the academic farm owned by the quota lessee; or Adjustment Act of 1938 (7 U.S.C. 1281 et seq.) years 2014–2015 through 2018–2019; and (II) for which the rights to produce the to- for any of the 1995, 1996, or 1997 crop years. (E) $72,500,000 for each of the academic bacco were rented to the quota lessee; and (4) QUOTA TENANT.—The term ‘‘quota ten- years 2019–2020 through 2023–2024. (ii) for which the quota tenant was the ant’’ means a producer that— SEC. 1013. BUDGETARY TREATMENT. principal producer of the tobacco on the (A) is the principal producer, as deter- This subtitle constitutes budget authority farm. mined by the Secretary, of tobacco on a farm in advance of appropriations Acts and rep- (5) MARKETING QUOTAS OTHER THAN POUND- where tobacco is produced pursuant to a to- resents the obligation of the Federal Govern- AGE QUOTAS.—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5063

(A) IN GENERAL.—For each type of tobacco (A) REALLOCATION TO LESSEE OR TENANT.— tion to relinquish a tobacco farm marketing for which there is a marketing quota or al- If a quota holder exercises an option to relin- quota or farm acreage allotment under para- lotment (on an acreage basis), the base quota quish a tobacco farm marketing quota or graph (2), the farm marketing quota or farm level for each quota holder, quota lessee, or farm acreage allotment under paragraph (2), acreage allotment shall be divided evenly be- quota tenant shall be determined in accord- a quota lessee or quota tenant that was the tween, and the option of reallocating the ance with this subsection (based on a pound- primary producer during the 1997 marketing farm marketing quota or farm acreage allot- age conversion) by multiplying— year of tobacco pursuant to the farm mar- ment shall be offered in equal portions to, (i) the average tobacco farm marketing keting quota or farm acreage allotment, as the quota lessee and to the quota tenant, if— quota or allotment for the 1995 through 1997 determined by the Secretary, shall be given (i) during the 1997 marketing year, the marketing years; and the option of having an allotment of the farm marketing quota or farm acreage allot- (ii) the average yield per acre for the farm farm marketing quota or farm acreage allot- ment was leased and transferred to a farm for the type of tobacco for the marketing ment reallocated to a farm owned by the owned by the quota lessee; and years. quota lessee or quota tenant. (ii) the quota tenant was the primary pro- (B) YIELDS NOT AVAILABLE.—If the average (B) CONDITIONS FOR REALLOCATION.— ducer, as determined by the Secretary, of to- yield per acre is not available for a farm, the (i) TIMING.—A quota lessee or quota tenant bacco pursuant to the farm marketing quota Secretary shall calculate the base quota for that is given the option of having an allot- or farm acreage allotment. the quota holder, quota lessee, or quota ten- ment of a farm marketing quota or farm (5) PAYMENTS FOR LOST TOBACCO QUOTA TO ant (based on a poundage conversion) by de- acreage allotment reallocated to a farm QUOTA HOLDERS.— termining the amount equal to the product owned by the quota lessee or quota tenant (A) IN GENERAL.—Except as otherwise pro- obtained by multiplying— under subparagraph (A) shall have 1 year vided in this subsection, during any market- (i) the average tobacco farm marketing from the date on which a farm marketing ing year in which the national marketing quota or allotment for the 1995 through 1997 quota or farm acreage allotment is relin- quota for a type of tobacco is less than the marketing years; and quished under paragraph (2) to exercise the average national marketing quota for the (ii) the average county yield per acre for option. 1995 through 1997 marketing years, the Sec- the county in which the farm is located for (ii) LIMITATION ON ACREAGE ALLOTMENT.—In retary shall make payments for lost tobacco the type of tobacco for the marketing years. the case of a farm acreage allotment, the quota to each quota holder, for types of to- acreage allotment determined for any farm bacco other than flue-cured tobacco, that is (d) PAYMENTS FOR LOST TOBACCO QUOTA subsequent to any reallocation under sub- eligible under subsection (b), and has not ex- FOR TYPES OF TOBACCO OTHER THAN FLUE- paragraph (A) shall not exceed 50 percent of ercised an option to relinquish a tobacco CURED TOBACCO.— the acreage of cropland of the farm owned by farm marketing quota or farm acreage allot- (1) ALLOCATION OF FUNDS.—Of the amounts the quota lessee or quota tenant. ment under paragraph (2), in an amount that made available under section 1011(d)(1) for (iii) LIMITATION ON MARKETING QUOTA.—In is equal to the product obtained by multiply- payments for lost tobacco quota, the Sec- the case of a farm marketing quota, the mar- ing— retary shall make available for payments keting quota determined for any farm subse- (i) the number of pounds by which the under this subsection an amount that bears quent to any reallocation under subpara- basic farm marketing quota (or poundage the same ratio to the amounts made avail- graph (A) shall not exceed an amount deter- conversion) is less than the base quota level able as— mined by multiplying— for the quota holder; and (A) the sum of all national marketing (I) the average county farm yield, as deter- (ii) $4 per pound. quotas for all types of tobacco other than mined by the Secretary; and (B) POUNDAGE CONVERSION FOR MARKETING flue-cured tobacco during the 1995 through (II) 50 percent of the acreage of cropland of QUOTAS OTHER THAN POUNDAGE QUOTAS.— 1997 marketing years; bears to the farm owned by the quota lessee or quota (i) IN GENERAL.—For each type of tobacco (B) the sum of all national marketing tenant. for which there is a marketing quota or al- quotas for all types of tobacco during the (C) ELIGIBILITY OF LESSEE OR TENANT FOR lotment (on an acreage basis), the poundage 1995 through 1997 marketing years. PAYMENTS.—If a farm marketing quota or conversion for each quota holder during a (2) OPTION TO RELINQUISH QUOTA.— farm acreage allotment is reallocated to a marketing year shall be determined by mul- (A) IN GENERAL.—Each quota holder, for quota lessee or quota tenant under subpara- tiplying— types of tobacco other than flue-cured to- graph (A)— (I) the basic farm acreage allotment for bacco, shall be given the option to relinquish (i) the quota lessee or quota tenant shall the farm for the marketing year; and the farm marketing quota or farm acreage not be eligible for any additional payments (II) the average yield per acre for the farm allotment of the quota holder in exchange under paragraph (5) or (6) as a result of the for the type of tobacco. for a payment made under paragraph (3). reallocation; and (ii) YIELD NOT AVAILABLE.—If the average (B) NOTIFICATION.—A quota holder shall (ii) the base quota level for the quota les- yield per acre is not available for a farm, the give notification of the intention of the see or quota tenant shall not be increased as Secretary shall calculate the poundage con- quota holder to exercise the option at such a result of the reallocation. version for each quota holder during a mar- time and in such manner as the Secretary (D) REALLOCATION TO QUOTA HOLDERS WITH- keting year by multiplying— may require, but not later than January 15, IN SAME COUNTY OR STATE.— (I) the basic farm acreage allotment for 1999. (i) IN GENERAL.—Except as provided in the farm for the marketing year; and (3) PAYMENTS FOR LOST TOBACCO QUOTA TO clause (ii), if there was no quota lessee or (II) the average county yield per acre for QUOTA HOLDERS EXERCISING OPTIONS TO RELIN- quota tenant for the farm marketing quota the county in which the farm is located for QUISH QUOTA.— or farm acreage allotment for a type of to- the type of tobacco. (A) IN GENERAL.—Subject to subparagraph bacco, or if no quota lessee or quota tenant (6) PAYMENTS FOR LOST TOBACCO QUOTA TO (E), for each of fiscal years 1999 through 2008, exercises an option of having an allotment of QUOTA LESSEES AND QUOTA TENANTS.—Except the Secretary shall make annual payments the farm marketing quota or farm acreage as otherwise provided in this subsection, dur- for lost tobacco quota to each quota holder allotment for a type of tobacco reallocated, ing any marketing year in which the na- that has relinquished the farm marketing the Secretary shall reapportion the farm tional marketing quota for a type of tobacco quota or farm acreage allotment of the quota marketing quota or farm acreage allotment is less than the average national marketing holder under paragraph (2). among the remaining quota holders for the quota for the type of tobacco for the 1995 (B) AMOUNT.—The amount of a payment type of tobacco within the same county. through 1997 marketing years, the Secretary made to a quota holder described in subpara- (ii) CROSS-COUNTY LEASING.—In a State in shall make payments for lost tobacco quota graph (A) for a marketing year shall equal which cross-county leasing is authorized pur- to each quota lessee and quota tenant, for 1⁄10 of the lifetime limitation established suant to section 319(l) of the Agricultural types of tobacco other than flue-cured to- under subparagraph (E). Adjustment Act of 1938 (7 U.S.C. 1314e(l)), the bacco, that is eligible under subsection (b) in (C) TIMING.—The Secretary shall begin Secretary shall reapportion the farm mar- an amount that is equal to the product ob- making annual payments under this para- keting quota among the remaining quota tained by multiplying— graph for the marketing year in which the holders for the type of tobacco within the (A) the percentage by which the national farm marketing quota or farm acreage allot- same State. marketing quota for the type of tobacco is ment is relinquished. (iii) ELIGIBILITY OF QUOTA HOLDER FOR PAY- less than the average national marketing (D) ADDITIONAL PAYMENTS.—The Secretary MENTS.—If a farm marketing quota is re- quota for the type of tobacco for the 1995 may increase annual payments under this apportioned to a quota holder under this sub- through 1997 marketing years; paragraph in accordance with paragraph paragraph— (B) the base quota level for the quota les- (7)(E) to the extent that funding is available. (I) the quota holder shall not be eligible for see or quota tenant; and (E) LIFETIME LIMITATION ON PAYMENTS.— any additional payments under paragraph (5) (C) $4 per pound. The total amount of payments made under or (6) as a result of the reapportionment; and (7) LIFETIME LIMITATION ON PAYMENTS.—Ex- this paragraph to a quota holder shall not (II) the base quota level for the quota hold- cept as otherwise provided in this sub- exceed the product obtained by multiplying er shall not be increased as a result of the re- section, the total amount of payments made the base quota level for the quota holder by apportionment. under this subsection to a quota holder, $8 per pound. (E) SPECIAL RULE FOR TENANT OF LEASED quota lessee, or quota tenant during the life- (4) REISSUANCE OF QUOTA.— TOBACCO.—If a quota holder exercises an op- time of the quota holder, quota lessee, or

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5064 CONGRESSIONAL RECORD — SENATE May 19, 1998

quota tenant shall not exceed the product made that are attributable to the quota that (1) ALLOCATION OF FUNDS.—Of the amounts obtained by multiplying— is sold and transferred. made available under section 1011(d)(1) for (A) the base quota level for the quota hold- (10) SALE OR TRANSFER OF FARM.—On the payments for lost tobacco quota, the Sec- er, quota lessee, or quota tenant; and sale or transfer of ownership of a farm that retary shall make available for payments (B) $8 per pound. is owned by a quota holder, the base quota under this subsection an amount that bears (8) LIMITATIONS ON AGGREGATE ANNUAL PAY- level established under subsection (c), the the same ratio to the amounts made avail- MENTS.— right to payments under paragraph (5), and able as— (A) IN GENERAL.—Except as otherwise pro- the lifetime limitation on payments estab- (A) the sum of all national marketing vided in this paragraph, the total amount lished under paragraph (7) shall transfer to quotas for flue-cured tobacco during the 1995 payable under this subsection for any mar- the new owner of the farm to the same ex- through 1997 marketing years; bears to keting year shall not exceed the amount tent and in the same manner as those provi- (B) the sum of all national marketing made available under paragraph (1). sions applied to the previous quota holder. quotas for all types of tobacco during the (B) ACCELERATED PAYMENTS.—Paragraph (11) DEATH OF QUOTA LESSEE OR QUOTA TEN- 1995 through 1997 marketing years. (1) shall not apply if accelerated payments ANT.—If a quota lessee or quota tenant that (2) RELINQUISHMENT OF QUOTA.— for lost tobacco quota are made in accord- is entitled to payments under this subsection (A) IN GENERAL.—Each quota holder of flue- ance with paragraph (12). dies and is survived by a spouse or 1 or more cured tobacco shall relinquish the farm mar- (C) REDUCTIONS.—If the sum of the dependents, the right to receive the pay- keting quota or farm acreage allotment in amounts determined under paragraphs (3), ments shall transfer to the surviving spouse exchange for a payment made under para- (5), and (6) for a marketing year exceeds the or, if there is no surviving spouse, to the sur- graph (3) due to the transition from farm amount made available under paragraph (1), viving dependents in equal shares. marketing quotas as provided under section the Secretary shall make a pro rata reduc- (12) ACCELERATION OF PAYMENTS.— 317 of the Agricultural Adjustment Act of tion in the amounts payable under para- (A) IN GENERAL.—On the occurrence of any 1938 for flue-cured tobacco to individual to- graphs (5) and (6) to quota holders, quota les- of the events described in subparagraph (B), bacco production permits as provided under sees, and quota tenants under this sub- the Secretary shall make an accelerated section 317A of the Agricultural Adjustment section to ensure that the total amount of lump sum payment for lost tobacco quota as Act of 1938 for flue-cured tobacco. payments for lost tobacco quota does not ex- established under paragraphs (5) and (6) to (B) NOTIFICATION.—The Secretary shall no- ceed the amount made available under para- each quota holder, quota lessee, and quota tify the quota holders of the relinquishment graph (1). tenant for any affected type of tobacco in ac- of their quota or allotment at such time and (D) ROLLOVER OF PAYMENTS FOR LOST TO- cordance with subparagraph (C). in such manner as the Secretary may re- BACCO QUOTA.—Subject to subparagraph (A), (B) TRIGGERING EVENTS.—The Secretary quire, but not later than November 15, 1998. if the Secretary makes a reduction in ac- shall make accelerated payments under sub- (3) PAYMENTS FOR LOST FLUE-CURED TO- cordance with subparagraph (C), the amount paragraph (A) if after the date of enactment BACCO QUOTA TO QUOTA HOLDERS THAT RELIN- of the reduction shall be applied to the next of this Act— QUISH QUOTA.— marketing year and added to the payments (i) subject to subparagraph (D), for 3 con- (A) IN GENERAL.—For each of fiscal years for lost tobacco quota for the marketing secutive marketing years, the national mar- 1999 through 2008, the Secretary shall make year. keting quota or national acreage allotment annual payments for lost flue-cured tobacco (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- for a type of tobacco is less than 50 percent to each quota holder that has relinquished ERS EXERCISING OPTION TO RELINQUISH of the national marketing quota or national the farm marketing quota or farm acreage QUOTA.—If the amount made available under acreage allotment for the type of tobacco for allotment of the quota holder under para- paragraph (1) exceeds the sum of the the 1998 marketing year; or graph (2). amounts determined under paragraphs (3), (ii) Congress repeals or makes ineffective, (B) AMOUNT.—The amount of a payment (5), and (6) for a marketing year, the Sec- directly or indirectly, any provision of— made to a quota holder described in subpara- retary shall distribute the amount of the ex- (I) section 316 of the Agricultural Adjust- graph (A) for a marketing year shall equal cess pro rata to quota holders that have ex- ment Act of 1938 (7 U.S.C. 1314b); 1⁄10 of the lifetime limitation established ercised an option to relinquish a tobacco (II) section 319 of the Agricultural Adjust- under paragraph (6). farm marketing quota or farm acreage allot- ment Act of 1938 (7 U.S.C. 1314e); (C) TIMING.—The Secretary shall begin ment under paragraph (2) by increasing the (III) section 106 of the Agricultural Act of making annual payments under this para- amount payable to each such holder under 1949 (7 U.S.C. 1445); graph for the marketing year in which the paragraph (3). (IV) section 106A of the Agricultural Act of farm marketing quota or farm acreage allot- (9) SUBSEQUENT SALE AND TRANSFER OF 1949 (7 U.S.C. 1445–1); or ment is relinquished. QUOTA.—Effective beginning with the 1999 (V) section 106B of the Agricultural Act of (D) ADDITIONAL PAYMENTS.—The Secretary marketing year, on the sale and transfer of a 1949 (7 U.S.C. 1445–2). may increase annual payments under this farm marketing quota or farm acreage allot- (C) AMOUNT.—The amount of the acceler- paragraph in accordance with paragraph ment under section 316(g) or 319(g) of the Ag- ated payments made to each quota holder, (7)(E) to the extent that funding is available. ricultural Adjustment Act of 1938 (7 U.S.C. quota lessee, and quota tenant under this (4) PAYMENTS FOR LOST FLUE-CURED TO- 1314b(g), 1314e(g))— subsection shall be equal to— BACCO QUOTA TO QUOTA LESSEES AND QUOTA (A) the person that sold and transferred (i) the amount of the lifetime limitation TENANTS THAT HAVE NOT RELINQUISHED PER- the quota or allotment shall have— established for the quota holder, quota les- MITS.— (i) the base quota level attributable to the see, or quota tenant under paragraph (7); less (A) IN GENERAL.—Except as otherwise pro- person reduced by the base quota level at- (ii) any payments for lost tobacco quota vided in this subsection, during any market- tributable to the quota that is sold and received by the quota holder, quota lessee, or ing year in which the national marketing transferred; and quota tenant before the occurrence of any of quota for flue-cured tobacco is less than the (ii) the lifetime limitation on payments es- the events described in subparagraph (B). average national marketing quota for the tablished under paragraph (7) attributable to (D) REFERENDUM VOTE NOT A TRIGGERING 1995 through 1997 marketing years, the Sec- the person reduced by the product obtained EVENT.—A referendum vote of producers for retary shall make payments for lost tobacco by multiplying— any type of tobacco that results in the na- quota to each quota lessee or quota tenant (I) the base quota level attributable to the tional marketing quota or national acreage that— quota; and allotment not being in effect for the type of (i) is eligible under subsection (b); (II) $8 per pound; and tobacco shall not be considered a triggering (ii) has been issued an individual tobacco (B) if the quota or allotment has never event under this paragraph. production permit under section 317A(b) of been relinquished by a previous quota holder (13) BAN ON SUBSEQUENT SALE OR LEASING OF the Agricultural Adjustment Act of 1938; and under paragraph (2), the person that acquired FARM MARKETING QUOTA OR FARM ACREAGE AL- (iii) has not exercised an option to relin- the quota shall have— LOTMENT TO QUOTA HOLDERS EXERCISING OP- quish the permit. (i) the base quota level attributable to the TION TO RELINQUISH QUOTA.—No quota holder (B) AMOUNT.—The amount of a payment person increased by the base quota level at- that exercises the option to relinquish a made to a quota lessee or quota tenant de- tributable to the quota that is sold and farm marketing quota or farm acreage allot- scribed in subparagraph (A) for a marketing transferred; and ment for any type of tobacco under para- year shall be equal to the product obtained (ii) the lifetime limitation on payments es- graph (2) shall be eligible to acquire a farm by multiplying— tablished under paragraph (7) attributable to marketing quota or farm acreage allotment (i) the number of pounds by which the indi- the person— for the type of tobacco, or to obtain the lease vidual marketing limitation established for (I) increased by the product obtained by or transfer of a farm marketing quota or the permit is less than twice the base quota multiplying— farm acreage allotment for the type of to- level for the quota lessee or quota tenant; (aa) the base quota level attributable to bacco, for a period of 25 crop years after the and the quota; and date on which the quota or allotment was re- (ii) $2 per pound. (bb) $8 per pound; but linquished. (5) PAYMENTS FOR LOST FLUE-CURED TO- (II) decreased by any payments under para- (e) PAYMENTS FOR LOST TOBACCO QUOTA BACCO QUOTA TO QUOTA LESSEES AND QUOTA graph (5) for lost tobacco quota previously FOR FLUE-CURED TOBACCO.— TENANTS THAT HAVE RELINQUISHED PERMITS.—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5065

(A) IN GENERAL.—For each of fiscal years transfer to the surviving spouse or, if there amount of the crop insurance premiums as- 1999 through 2008, the Secretary shall make is no surviving spouse, to the surviving de- sessed to participating tobacco producers annual payments for lost flue-cured tobacco scendants in equal shares. under the Federal Crop Insurance Act (7 quota to each quota lessee and quota tenant (9) ACCELERATION OF PAYMENTS.— U.S.C. 1501 et seq.). that has relinquished an individual tobacco (A) IN GENERAL.—On the occurrence of any (c) DETERMINATIONS.—Not later than Sep- production permit under section 317A(b)(5) of of the events described in subparagraph (B), tember 30, 1998, and each fiscal year there- the Agricultural Adjustment Act of 1938. the Secretary shall make an accelerated after, the Secretary shall determine— (B) AMOUNT.—The amount of a payment lump sum payment for lost flue-cured to- (1) the amount of costs described in sub- made to a quota lessee or quota tenant de- bacco quota as established under paragraphs section (a); and scribed in subparagraph (A) for a marketing (3), (4), and (5) to each quota holder, quota (2) the amount that will be provided under year shall be equal to 1⁄10 of the lifetime limi- lessee, and quota tenant for flue-cured to- this section as reimbursement for the costs. tation established under paragraph (6). bacco in accordance with subparagraph (C). SEC. 1023. TOBACCO COMMUNITY ECONOMIC DE- (C) TIMING.—The Secretary shall begin (B) TRIGGERING EVENTS.—The Secretary VELOPMENT GRANTS. making annual payments under this para- shall make accelerated payments under sub- (a) AUTHORITY.—The Secretary shall make graph for the marketing year in which the paragraph (A) if after the date of enactment grants to tobacco-growing States in accord- individual tobacco production permit is re- of this Act— ance with this section to enable the States linquished. (i) subject to subparagraph (D), for 3 con- to carry out economic development initia- (D) ADDITIONAL PAYMENTS.—The Secretary secutive marketing years, the national mar- tives in tobacco-growing communities. may increase annual payments under this keting quota or national acreage allotment (b) APPLICATION.—To be eligible to receive paragraph in accordance with paragraph for flue-cured tobacco is less than 50 percent payments under this section, a State shall (7)(E) to the extent that funding is available. of the national marketing quota or national prepare and submit to the Secretary an ap- (E) PROHIBITION AGAINST PERMIT EXPAN- acreage allotment for flue-cured tobacco for plication at such time, in such manner, and SION.—A quota lessee or quota tenant that the 1998 marketing year; or containing such information as the Sec- receives a payment under this paragraph (ii) Congress repeals or makes ineffective, retary may require, including— shall be ineligible to receive any new or in- directly or indirectly, any provision of— (1) a description of the activities that the creased tobacco production permit from the (I) section 316 of the Agricultural Adjust- State will carry out using amounts received county production pool established under ment Act of 1938 (7 U.S.C. 1314b); under the grant; section 317A(b)(8) of the Agricultural Adjust- (II) section 319 of the Agricultural Adjust- (2) a designation of an appropriate State ment Act of 1938. ment Act of 1938 (7 U.S.C. 1314e); agency to administer amounts received (6) LIFETIME LIMITATION ON PAYMENTS.—Ex- (III) section 106 of the Agricultural Act of under the grant; and cept as otherwise provided in this sub- 1949 (7 U.S.C. 1445); (3) a description of the steps to be taken to section, the total amount of payments made (IV) section 106A of the Agricultural Act of ensure that the funds are distributed in ac- under this subsection to a quota holder, 1949 (7 U.S.C. 1445–1); cordance with subsection (e). quota lessee, or quota tenant during the life- (V) section 106B of the Agricultural Act of (c) AMOUNT OF GRANT.— time of the quota holder, quota lessee, or 1949 (7 U.S.C. 1445–2); or (1) IN GENERAL.—From the amounts avail- quota tenant shall not exceed the product (VI) section 317A of the Agricultural Ad- able to carry out this section for a fiscal obtained by multiplying— justment Act of 1938. year, the Secretary shall allot to each State (A) the base quota level for the quota hold- (C) AMOUNT.—The amount of the acceler- an amount that bears the same ratio to the er, quota lessee, or quota tenant; and ated payments made to each quota holder, amounts available as the total farm income (B) $8 per pound. quota lessee, and quota tenant under this of the State derived from the production of (7) LIMITATIONS ON AGGREGATE ANNUAL PAY- subsection shall be equal to— tobacco during the 1995 through 1997 market- MENTS.— (i) the amount of the lifetime limitation ing years (as determined under paragraph (A) IN GENERAL.—Except as otherwise pro- established for the quota holder, quota les- (2)) bears to the total farm income of all vided in this paragraph, the total amount see, or quota tenant under paragraph (6); less States derived from the production of to- payable under this subsection for any mar- (ii) any payments for lost flue-cured to- bacco during the 1995 through 1997 marketing keting year shall not exceed the amount bacco quota received by the quota holder, years. made available under paragraph (1). quota lessee, or quota tenant before the oc- (2) TOBACCO INCOME.—For the 1995 through (B) ACCELERATED PAYMENTS.—Paragraph currence of any of the events described in 1997 marketing years, the Secretary shall de- (1) shall not apply if accelerated payments subparagraph (B). termine the amount of farm income derived for lost flue-cured tobacco quota are made in (D) REFERENDUM VOTE NOT A TRIGGERING from the production of tobacco in each State accordance with paragraph (9). EVENT.—A referendum vote of producers for and in all States. (C) REDUCTIONS.—If the sum of the flue-cured tobacco that results in the na- (d) PAYMENTS.— amounts determined under paragraphs (3), tional marketing quota or national acreage (1) IN GENERAL.—A State that has an appli- (4), and (5) for a marketing year exceeds the allotment not being in effect for flue-cured cation approved by the Secretary under sub- amount made available under paragraph (1), tobacco shall not be considered a triggering section (b) shall be entitled to a payment the Secretary shall make a pro rata reduc- event under this paragraph. under this section in an amount that is equal tion in the amounts payable under paragraph SEC. 1022. INDUSTRY PAYMENTS FOR ALL DE- to its allotment under subsection (c). (4) to quota lessees and quota tenants under PARTMENT COSTS ASSOCIATED (2) FORM OF PAYMENTS.—The Secretary this subsection to ensure that the total WITH TOBACCO PRODUCTION. may make payments under this section to a amount of payments for lost flue-cured to- (a) IN GENERAL.—The Secretary shall use State in installments, and in advance or by bacco quota does not exceed the amount such amounts remaining unspent and obli- way of reimbursement, with necessary ad- made available under paragraph (1). gated at the end of each fiscal year to reim- justments on account of overpayments or (D) ROLLOVER OF PAYMENTS FOR LOST FLUE- burse the Secretary for— underpayments, as the Secretary may deter- CURED TOBACCO QUOTA.—Subject to subpara- (1) costs associated with the administra- mine. graph (A), if the Secretary makes a reduc- tion of programs established under this title (3) REALLOTMENTS.—Any portion of the al- tion in accordance with subparagraph (C), and amendments made by this title; lotment of a State under subsection (c) that the amount of the reduction shall be applied (2) costs associated with the administra- the Secretary determines will not be used to to the next marketing year and added to the tion of the tobacco quota and price support carry out this section in accordance with an payments for lost flue-cured tobacco quota programs administered by the Secretary; approved State application required under for the marketing year. (3) costs to the Federal Government of car- subsection (b), shall be reallotted by the Sec- (E) ADDITIONAL PAYMENTS TO QUOTA HOLD- rying out crop insurance programs for to- retary to other States in proportion to the ERS EXERCISING OPTION TO RELINQUISH QUOTAS bacco; original allotments to the other States. OR PERMITS, OR TO QUOTA LESSEES OR QUOTA (4) costs associated with all agricultural (e) USE AND DISTRIBUTION OF FUNDS.— TENANTS RELINQUISHING PERMITS.—If the research, extension, or education activities (1) IN GENERAL.—Amounts received by a amount made available under paragraph (1) associated with tobacco; State under this section shall be used to exceeds the sum of the amounts determined (5) costs associated with the administra- carry out economic development activities, under paragraphs (3), (4), and (5) for a mar- tion of loan association and cooperative pro- including— keting year, the Secretary shall distribute grams for tobacco producers, as approved by (A) rural business enterprise activities de- the amount of the excess pro rata to quota the Secretary; and scribed in subsections (c) and (e) of section holders by increasing the amount payable to (6) any other costs incurred by the Depart- 310B of the Consolidated Farm and Rural De- each such holder under paragraphs (3) and ment of Agriculture associated with the pro- velopment Act (7 U.S.C. 1932); (5). duction of tobacco. (B) down payment loan assistance pro- (8) DEATH OF QUOTA HOLDER, QUOTA LESSEE, (b) LIMITATIONS.—Amounts made available grams that are similar to the program de- OR QUOTA TENANT.—If a quota holder, quota under subsection (a) may not be used— scribed in section 310E of the Consolidated lessee or quota tenant that is entitled to (1) to provide direct benefits to quota hold- Farm and Rural Development Act (7 U.S.C. payments under paragraph (4) or (5) dies and ers, quota lessees, or quota tenants; or 1935); is survived by a spouse or 1 or more descend- (2) in a manner that results in a decrease, (C) activities designed to help create pro- ants, the right to receive the payments shall or an increase relative to other crops, in the ductive farm or off-farm employment in

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5066 CONGRESSIONAL RECORD — SENATE May 19, 1998 rural areas to provide a more viable eco- (f) PREFERENCES IN HIRING.—A State may ‘‘(A) prior to— nomic base and enhance opportunities for require recipients of funds under this section ‘‘(i) any increase or decrease in the number improved incomes, living standards, and con- to provide a preference in employment to— due to undermarketings or overmarketings; tributions by rural individuals to the eco- (1) an individual who— and nomic and social development of tobacco (A) during the 1998 calendar year, was em- ‘‘(ii) any reduction under subsection (i); communities; ployed in the manufacture, processing, or and (D) activities that expand existing infra- warehousing of tobacco or tobacco products, ‘‘(B) in a manner that ensures that— structure, facilities, and services to capital- or resided, in a county described in sub- ‘‘(i) the total of all individual marketing ize on opportunities to diversify economies section (e)(2); and limitations is equal to the national market- in tobacco communities and that support the (B) is eligible for assistance under the to- ing quota, less the reserve provided under development of new industries or commer- bacco worker transition program established subsection (h); and cial ventures; under section 1031; or ‘‘(ii) the individual marketing limitation (E) activities by agricultural organizations (2) an individual who— for a marketing year is obtained by mul- that provide assistance directly to partici- (A) during the 1998 marketing year, carried tiplying the individual acreage limitation by pating tobacco producers to assist in devel- out tobacco quota or relevant tobacco pro- the permit yield, prior to any adjustment for oping other agricultural activities that sup- duction activities in a county described in undermarketings or overmarketings. plement tobacco-producing activities; subsection (e)(2); ‘‘(3) INDIVIDUAL TOBACCO PRODUCTION PER- (F) initiatives designed to create or expand (B) is eligible for a farmer opportunity MIT.—The term ‘individual tobacco produc- locally owned value-added processing and grant under subpart 9 of part A of title IV of tion permit’ means a permit issued by the marketing operations in tobacco commu- the Higher Education Act of 1965; and Secretary to a person authorizing the pro- nities; (C) has successfully completed a course of duction of flue-cured tobacco for any mar- (G) technical assistance activities by per- study at an institution of higher education. keting year during which this section is ef- sons to support farmer-owned enterprises, or (g) MAINTENANCE OF EFFORT.— fective. agriculture-based rural development enter- (1) IN GENERAL.—Subject to paragraph (2), a ‘‘(4) NATIONAL ACREAGE ALLOTMENT.—The prises, of the type described in section 252 or State shall provide an assurance to the Sec- term ‘national acreage allotment’ means the 253 of the Trade Act of 1974 (19 U.S.C. 2342, retary that the amount of funds expended by quantity determined by dividing— 2343); and the State and all counties in the State de- ‘‘(A) the national marketing quota; by (H) initiatives designed to partially com- scribed in subsection (e)(2) for any activities ‘‘(B) the national average yield goal. pensate tobacco warehouse owners for lost funded under this section for a fiscal year is ‘‘(5) NATIONAL AVERAGE YIELD GOAL.—The revenues and assist the tobacco warehouse not less than 90 percent of the amount of term ‘national average yield goal’ means the owners in establishing successful business funds expended by the State and counties for national average yield for flue-cured tobacco enterprises. the activities for the preceding fiscal year. during the 5 marketing years immediately (2) TOBACCO-GROWING COUNTIES.—Assistance (2) REDUCTION OF GRANT AMOUNT.—If a preceding the marketing year for which the may be provided by a State under this sec- State does not provide an assurance de- determination is being made. tion only to assist a county in the State that scribed in paragraph (1), the Secretary shall ‘‘(6) NATIONAL MARKETING QUOTA.—For the has been determined by the Secretary to reduce the amount of the grant determined 1999 and each subsequent crop of flue-cured have in excess of $100,000 in income derived under subsection (c) by an amount equal to tobacco, the term ‘national marketing from the production of tobacco during 1 or the amount by which the amount of funds quota’ for a marketing year means the quan- more of the 1995 through 1997 marketing expended by the State and counties for the tity of flue-cured tobacco, as determined by years. For purposes of this section, the term activities is less than 90 percent of the the Secretary, that is not more than 103 per- ‘‘tobacco-growing county’’ includes a politi- amount of funds expended by the State and cent nor less than 97 percent of the total of— cal subdivision surrounded within a State by counties for the activities for the preceding ‘‘(A) the aggregate of the quantities of a county that has been determined by the fiscal year, as determined by the Secretary. flue-cured tobacco that domestic manufac- Secretary to have in excess of $100,000 in in- (3) FEDERAL FUNDS.—For purposes of this turers of cigarettes estimate that the manu- come derived from the production of tobacco subsection, the amount of funds expended by facturers intend to purchase on the United during 1 or more of the 1995 through 1997 a State or county shall not include any States auction markets or from producers marketing years. amounts made available by the Federal Gov- during the marketing year, as compiled and (3) DISTRIBUTION.— ernment. determined under section 320A; (A) ECONOMIC DEVELOPMENT ACTIVITIES.— SEC. 1024. FLUE-CURED TOBACCO PRODUCTION ‘‘(B) the average annual quantity of flue- Not less than 20 percent of the amounts re- PERMITS. cured tobacco exported from the United ceived by a State under this section shall be The Agricultural Adjustment Act of 1938 is States during the 3 marketing years imme- used to carry out— amended by inserting after section 317 (7 diately preceding the marketing year for (i) economic development activities de- U.S.C. 1314c) the following: which the determination is being made; and scribed in subparagraph (E) or (F) of para- ‘‘SEC. 317A. FLUE-CURED TOBACCO PRODUCTION ‘‘(C) the quantity, if any, of flue-cured to- graph (1); or PERMITS. bacco that the Secretary, in the discretion of (ii) agriculture-based rural development ‘‘(a) DEFINITIONS.—In this section: the Secretary, determines is necessary to in- activities described in paragraph (1)(G). ‘‘(1) INDIVIDUAL ACREAGE LIMITATION.—The crease or decrease the inventory of the pro- (B) TECHNICAL ASSISTANCE ACTIVITIES.—Not term ‘individual acreage limitation’ means ducer-owned cooperative marketing associa- less than 4 percent of the amounts received the number of acres of flue-cured tobacco tion that has entered into a loan agreement by a State under this section shall be used to that may be planted by the holder of a per- with the Commodity Credit Corporation to carry out technical assistance activities de- mit during a marketing year, calculated— make price support available to producers of scribed in paragraph (1)(G). ‘‘(A) prior to— flue-cured tobacco to establish or maintain (C) TOBACCO WAREHOUSE OWNER INITIA- ‘‘(i) any increase or decrease in the number the inventory at the reserve stock level for TIVES.—Not less than 6 percent of the due to undermarketings or overmarketings; flue-cured tobacco. amounts received by a State under this sec- and ‘‘(7) PERMIT YIELD.—The term ‘permit tion during each of fiscal years 1999 through ‘‘(ii) any reduction under subsection (i); yield’ means the yield of tobacco per acre for 2008 shall be used to carry out initiatives de- and an individual tobacco production permit scribed in paragraph (1)(H). ‘‘(B) in a manner that ensures that— holder that is— (D) TOBACCO-GROWING COUNTIES.—To be eli- ‘‘(i) the total of all individual acreage limi- ‘‘(A) based on a preliminary permit yield gible to receive payments under this section, tations is equal to the national acreage al- that is equal to the average yield during the a State shall demonstrate to the Secretary lotment, less the reserve provided under sub- 5 marketing years immediately preceding that funding will be provided, during each 5- section (h); and the marketing year for which the determina- year period for which funding is provided ‘‘(ii) the individual acreage limitation for a tion is made in the county where the holder under this section, for activities in each marketing year bears the same ratio to the of the permit is authorized to plant flue- county in the State that has been deter- individual acreage limitation for the pre- cured tobacco, as determined by the Sec- mined under paragraph (2) to have in excess vious marketing year as the ratio that the retary, on the basis of actual yields of farms of $100,000 in income derived from the pro- national acreage allotment for the market- in the county; and duction of tobacco, in amounts that are at ing year bears to the national acreage allot- ‘‘(B) adjusted by a weighted national yield least equal to the product obtained by mul- ment for the previous marketing year, sub- factor calculated by— tiplying— ject to adjustments by the Secretary to ac- ‘‘(i) multiplying each preliminary permit (i) the ratio that the tobacco production count for any reserve provided under sub- yield by the individual acreage limitation, income in the county determined under para- section (h). prior to adjustments for overmarketings, graph (2) bears to the total tobacco produc- ‘‘(2) INDIVIDUAL MARKETING LIMITATION.— undermarketings, or reductions required tion income for the State determined under The term ‘individual marketing limitation’ under subsection (i); and subsection (c); and means the number of pounds of flue-cured to- ‘‘(ii) dividing the sum of the products (ii) 50 percent of the total amounts re- bacco that may be marketed by the holder of under clause (i) for all flue-cured individual ceived by a State under this section during a permit during a marketing year, cal- tobacco production permit holders by the na- the 5-year period. culated— tional acreage allotment.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5067

‘‘(b) INITIAL ISSUANCE OF PERMITS.— bacco during the 1997 marketing year shall ‘‘(ii) REALLOCATION.—The Secretary shall ‘‘(1) TERMINATION OF FLUE-CURED MARKET- be considered the individual acreage limita- add the authority to produce flue-cured to- ING QUOTAS.—On the date of enactment of the tion for the previous marketing year. bacco under the individual tobacco produc- National Tobacco Policy and Youth Smoking ‘‘(C) INDIVIDUAL MARKETING LIMITATIONS.— tion permit forfeited under this subpara- Reduction Act, farm marketing quotas as In establishing the individual marketing graph to the county production pool estab- provided under section 317 shall no longer be limitation for the 1999 marketing year under lished under paragraph (8) for reallocation by in effect for flue-cured tobacco. this section, the individual marketing limi- the appropriate county committee. ‘‘(2) ISSUANCE OF PERMITS TO QUOTA HOLD- tation for the previous year for an individual ‘‘(D) NOTICE.—Notice of any determination ERS THAT WERE PRINCIPAL PRODUCERS.— described in this paragraph shall be cal- made by a county committee under subpara- ‘‘(A) IN GENERAL.—By January 15, 1999, culated by multiplying— graph (C) shall be mailed, as soon as prac- each individual quota holder under section ‘‘(i) the farm marketing quota that was al- ticable, to the person involved. 317 that was a principal producer of flue- lotted to a farm owned by a quota holder for ‘‘(E) REVIEW.—If the person is dissatisfied cured tobacco during the 1998 marketing whom the quota lessee or quota holder was with the determination, the person may re- year, as determined by the Secretary, shall the principal producer of flue-cured tobacco quest, not later than 15 days after notice of be issued an individual tobacco production during the 1997 marketing year, by the determination is received, a review of permit under this section. ‘‘(ii) the ratio that— the determination by a local review commit- ‘‘(B) NOTIFICATION.—The Secretary shall ‘‘(I) the sum of all flue-cured tobacco farm tee under the procedures established under notify the holder of each permit of the indi- marketing quotas for the 1997 marketing section 363 for farm marketing quotas. vidual acreage limitation and the individual year prior to adjusting for undermarketing ‘‘(7) COUNTY OF ORIGIN REQUIREMENT.—For marketing limitation applicable to the hold- and overmarketing; bears to the 1999 and each subsequent crop of flue- er for each marketing year. ‘‘(II) the sum of all flue-cured tobacco farm cured tobacco, all tobacco produced pursuant ‘‘(C) INDIVIDUAL ACREAGE LIMITATION FOR marketing quotas for the 1998 marketing to an individual tobacco production permit 1999 MARKETING YEAR.—In establishing the in- year, after adjusting for undermarketing and shall be produced in the same county in dividual acreage limitation for the 1999 mar- overmarketing. which was produced the tobacco produced keting year under this section, the farm ‘‘(D) SPECIAL RULE FOR TENANT OF LEASED during the 1997 marketing year pursuant to acreage allotment that was allotted to a FLUE-CURED TOBACCO.—If the farm marketing the farm marketing quota or farm acreage farm owned by the quota holder for the 1997 quota or farm acreage allotment of a quota allotment on which the individual tobacco marketing year shall be considered the indi- holder was produced pursuant to an agree- production permit is based. vidual acreage limitation for the previous ment under which a quota lessee rented land ‘‘(8) COUNTY PRODUCTION POOL.— marketing year. from a quota holder and a quota tenant was ‘‘(A) IN GENERAL.—The authority to ‘‘(D) INDIVIDUAL MARKETING LIMITATION FOR the primary producer, as determined by the produce flue-cured tobacco under an individ- 1999 MARKETING YEAR.—In establishing the in- Secretary, of flue-cured tobacco pursuant to ual tobacco production permit that is for- dividual marketing limitation for the 1999 the farm marketing quota or farm acreage feited, relinquished, or surrendered within a marketing year under this section, the farm allotment, the farm marketing quota or county may be reallocated by the appro- marketing quota that was allotted to a farm farm acreage allotment shall be divided pro- priate county committee to tobacco produc- owned by the quota holder for the 1997 mar- portionately between the quota lessee and ers located in the same county that apply to keting year shall be considered the individ- quota tenant for purposes of issuing individ- the committee to produce flue-cured tobacco ual marketing limitation for the previous ual tobacco production permits under this under the authority. marketing year. paragraph. ‘‘(B) PRIORITY.—In reallocating individual ‘‘(3) QUOTA HOLDERS THAT WERE NOT PRIN- ‘‘(5) OPTION OF QUOTA LESSEE OR QUOTA TEN- tobacco production permits under this para- CIPAL PRODUCERS.— ANT TO RELINQUISH PERMIT.— graph, a county committee shall provide a ‘‘(A) IN GENERAL.—Except as provided in ‘‘(A) IN GENERAL.—Each quota lessee or priority to— subparagraph (B), on approval through a ref- quota tenant that is issued an individual to- ‘‘(i) an active tobacco producer that con- erendum under subsection (c)— bacco production permit under paragraph (4) trols the authority to produce a quantity of ‘‘(i) each person that was a quota holder shall be given the option of relinquishing the flue-cured tobacco under an individual to- under section 317 but that was not a prin- permit in exchange for payments made under bacco production permit that is equal to or cipal producer of flue-cured tobacco during section 1021(e)(5) of the LEAF Act. less than the average number of pounds of the 1997 marketing year, as determined by ‘‘(B) NOTIFICATION.—A quota lessee or flue-cured tobacco that was produced by the the Secretary, shall not be eligible to own a quota tenant that is issued an individual to- producer during each of the 1995 through 1997 permit; and bacco production permit shall give notifica- marketing years, as determined by the Sec- ‘‘(ii) the Secretary shall not issue any per- tion of the intention to exercise the option retary; and mit during the 25-year period beginning on at such time and in such manner as the Sec- ‘‘(ii) a new tobacco producer. the date of enactment of this Act to any per- retary may require, but not later than 45 ‘‘(C) CRITERIA.—Individual tobacco produc- son that was a quota holder and was not the days after the permit is issued. tion permits shall be reallocated by the ap- principal producer of flue-cured tobacco dur- ‘‘(C) REALLOCATION OF PERMIT.—The Sec- propriate county committee under this para- ing the 1997 marketing year. retary shall add the authority to produce graph in a fair and equitable manner after ‘‘(B) MEDICAL HARDSHIPS AND CROP DISAS- flue-cured tobacco under the individual to- taking into consideration— TERS.—Subparagraph (A) shall not apply to a bacco production permit relinquished under ‘‘(i) the experience of the producer; person that would have been the principal this paragraph to the county production pool ‘‘(ii) the availability of land, labor, and producer of flue-cured tobacco during the established under paragraph (8) for realloca- equipment for the production of tobacco; 1997 marketing year but for a medical hard- tion by the appropriate county committee. ‘‘(iii) crop rotation practices; and ship or crop disaster that occurred during ‘‘(6) ACTIVE PRODUCER REQUIREMENT.— ‘‘(iv) the soil and other physical factors af- the 1997 marketing year. ‘‘(A) REQUIREMENT FOR SHARING RISK.—No fecting the production of tobacco. ‘‘(C) ADMINISTRATION.—The Secretary shall individual tobacco production permit shall ‘‘(D) MEDICAL HARDSHIPS AND CROP DISAS- issue regulations— be issued to, or maintained by, a person that TERS.—Notwithstanding any other provision ‘‘(i) defining the term ‘person’ for the pur- does not fully share in the risk of producing of this Act, the Secretary may issue an indi- pose of this paragraph; and a crop of flue-cured tobacco. vidual tobacco production permit under this ‘‘(ii) prescribing such rules as the Sec- ‘‘(B) CRITERIA FOR SHARING RISK.—For pur- paragraph to a producer that is otherwise in- retary determines are necessary to ensure a poses of this paragraph, a person shall be eligible for the permit due to a medical hard- fair and reasonable application of the prohi- considered to have fully shared in the risk of ship or crop disaster that occurred during bition established under this paragraph. production of a crop if— the 1997 marketing year. ‘‘(4) ISSUANCE OF PERMITS TO PRINCIPAL ‘‘(i) the investment of the person in the ‘‘(c) REFERENDUM.— PRODUCERS OF FLUE-CURED TOBACCO.— production of the crop is not less than 100 ‘‘(1) ANNOUNCEMENT OF QUOTA AND ALLOT- ‘‘(A) IN GENERAL.—By January 15, 1999, percent of the costs of production associated MENT.—Not later than December 15, 1998, the each individual quota lessee or quota tenant with the crop; Secretary pursuant to subsection (b) shall (as defined in section 1002 of the LEAF Act) ‘‘(ii) the amount of the person’s return on determine and announce— that was the principal producer of flue-cured the investment is dependent solely on the ‘‘(A) the quantity of the national market- tobacco during the 1997 marketing year, as sale price of the crop; and ing quota for flue-cured tobacco for the 1999 determined by the Secretary, shall be issued ‘‘(iii) the person may not receive any of the marketing year; and an individual tobacco production permit return before the sale of the crop. ‘‘(B) the national acreage allotment and under this section. ‘‘(C) PERSONS NOT SHARING RISK.— national average yield goal for the 1999 crop ‘‘(B) INDIVIDUAL ACREAGE LIMITATIONS.—In ‘‘(i) FORFEITURE.—Any person that fails to of flue-cured tobacco. establishing the individual acreage limita- fully share in the risks of production under ‘‘(2) SPECIAL REFERENDUM.—Not later than tion for the 1999 marketing year under this this paragraph shall forfeit an individual to- 30 days after the announcement of the quan- section, the farm acreage allotment that was bacco production permit if, after notice and tity of the national marketing quota in 2001, allotted to a farm owned by a quota holder opportunity for a hearing, the appropriate the Secretary shall conduct a special ref- for whom the quota lessee or quota tenant county committee determines that the con- erendum of the tobacco production permit was the principal producer of flue-cured to- ditions for forfeiture exist. holders that were the principal producers of

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5068 CONGRESSIONAL RECORD — SENATE May 19, 1998 flue-cured tobacco of the 1997 crop to deter- transfer, of an individual tobacco production for the marketing of excess tobacco and the mine whether the producers approve or op- permit issued under this section. other provisions contained in section 314 pose the continuation of individual tobacco ‘‘(2) TRANSFER TO DESCENDANTS.— shall apply in the same manner and to the production permits on an acreage-poundage ‘‘(A) DEATH.—In the case of the death of a same extent as they would apply under sec- basis as provided in this section for the 2002 person to whom an individual tobacco pro- tion 317(g) if farm marketing quotas were in through 2004 marketing years. duction permit has been issued under this effect. ‘‘(3) APPROVAL OF PERMITS.—If the Sec- section, the permit shall transfer to the sur- ‘‘(2) PRODUCTION ON OTHER FARMS.—If a pro- retary determines that more than 662⁄3 per- viving spouse of the person or, if there is no ducer falsely identifies tobacco as having cent of the producers voting in the special surviving spouse, to surviving direct de- been produced on or marketed from a farm referendum approve the establishment of in- scendants of the person. to which an individual acreage limitation or dividual tobacco production permits on an ‘‘(B) TEMPORARY INABILITY TO FARM.—In individual marketing limitation has been as- acreage-poundage basis— the case of the death of a person to whom an signed, future individual acreage limitations ‘‘(A) individual tobacco production permits individual tobacco production permit has and individual marketing limitations shall on an acreage-poundage basis as provided in been issued under this section and whose de- be forfeited.’’. this section shall be in effect for the 2002 scendants are temporarily unable to produce SEC. 1025. MODIFICATIONS IN FEDERAL TO- through 2004 marketing years; and a crop of tobacco, the Secretary may hold BACCO PROGRAMS. ‘‘(B) marketing quotas on an acreage- the license in the name of the descendants (a) PROGRAM REFERENDA.—Section 312(c) of poundage basis shall cease to be in effect for for a period of not more than 18 months. the Agricultural Adjustment Act of 1938 (7 the 2002 through 2004 marketing years. ‘‘(3) VOLUNTARY TRANSFERS.—A person that U.S.C. 1312(c)) is amended— ‘‘(4) DISAPPROVAL OF PERMITS.—If individ- is eligible to obtain an individual tobacco (1) by striking ‘‘(c) Within thirty’’ and in- ual tobacco production permits on an acre- production permit under this section may at serting the following: age-poundage basis are not approved by more any time transfer all or part of the permit to ‘‘(c) REFERENDA ON QUOTAS.— ‘‘(1) IN GENERAL.—Not later than 30’’; and than 662⁄3 percent of the producers voting in the person’s spouse or direct descendants (2) by adding at the end the following: the referendum, no marketing quotas on an that are actively engaged in the production ‘‘(2) REFERENDA ON PROGRAM CHANGES.— acreage-poundage basis shall continue in ef- of tobacco. ‘‘(A) IN GENERAL.—In the case of any type fect that were proclaimed under section 317 ‘‘(h) RESERVE.— of tobacco for which marketing quotas are in prior to the referendum. ‘‘(1) IN GENERAL.—For each marketing year for which individual tobacco production per- effect, on the receipt of a petition from more ‘‘(5) APPLICABLE MARKETING YEARS.—If in- mits are in effect under this section, the Sec- than 5 percent of the producers of that type dividual tobacco production permits have retary may establish a reserve from the na- of tobacco in a State, the Secretary shall been made effective for flue-cured tobacco on tional marketing quota in a quantity equal conduct a statewide referendum on any pro- an acreage-poundage basis pursuant to this to not more than 1 percent of the national posal related to the lease and transfer of to- subsection, the Secretary shall, not later marketing quota to be available for— bacco quota within a State requested by the than December 15 of any future marketing ‘‘(A) making corrections of errors in indi- petition that is authorized under this part. year, announce a national marketing quota vidual acreage limitations and individual ‘‘(B) APPROVAL OF PROPOSALS.—If a major- for that type of tobacco for the next 3 suc- marketing limitations; ity of producers of the type of tobacco in the ceeding marketing years if the marketing ‘‘(B) adjusting inequities; and State approve a proposal in a referendum year is the last year of 3 consecutive years ‘‘(C) establishing individual tobacco pro- conducted under subparagraph (A), the Sec- for which individual tobacco production per- duction permits for new tobacco producers retary shall implement the proposal in a mits previously proclaimed will be in effect. (except that not less than two-thirds of the manner that applies to all producers and ‘‘(d) ANNUAL ANNOUNCEMENT OF NATIONAL reserve shall be for establishing such permits quota holders of that type of tobacco in the MARKETING QUOTA.—The Secretary shall de- for new tobacco producers). State.’’. termine and announce the national market- ‘‘(2) ELIGIBLE PERSONS.—To be eligible for a (b) PURCHASE REQUIREMENTS.—Section 320B ing quota, national acreage allotment, and new individual tobacco production permit, a of the Agricultural Adjustment Act of 1938 (7 national average yield goal for the second producer must not have been the principal U.S.C. 1314h) is amended— and third marketing years of any 3-year pe- producer of tobacco during the immediately (1) in subsection (c)— riod for which individual tobacco production preceding 5 years. (A) by striking ‘‘(c) The amount’’ and in- permits are in effect on or before the Decem- ‘‘(3) APPORTIONMENT FOR NEW PRODUCERS.— serting ‘‘(c) AMOUNT OF PENALTY.—For the ber 15 immediately preceding the beginning The part of the reserve held for apportion- 1998 and subsequent marketing years, the of the marketing year to which the quota, ment to new individual tobacco producers amount’’; and allotment, and goal apply. shall be allotted on the basis of— (B) by striking paragraph (1) and inserting ‘‘(e) ANNUAL ANNOUNCEMENT OF INDIVIDUAL ‘‘(A) land, labor, and equipment available the following: TOBACCO PRODUCTION PERMITS.—If a national for the production of tobacco; ‘‘(1) 105 percent of the average market marketing quota, national acreage allot- ‘‘(B) crop rotation practices; price for the type of tobacco involved during ment, and national average yield goal are de- ‘‘(C) soil and other physical factors affect- the preceding marketing year; and’’. (c) ELIMINATION OF TOBACCO MARKETING termined and announced, the Secretary shall ing the production of tobacco; and ASSESSMENT.— provide for the determination of individual ‘‘(D) the past tobacco-producing experience (1) IN GENERAL.—Section 106 of the Agricul- tobacco production permits, individual acre- of the producer. tural Act of 1949 (7 U.S.C. 1445) is amended by age limitations, and individual marketing ‘‘(4) PERMIT YIELD.—The permit yield for striking subsection (g). limitations under this section for the crop any producer for which a new individual to- (2) CONFORMING AMENDMENT.—Section and marketing year covered by the deter- bacco production permit is established shall 422(c) of the Uruguay Round Agreements Act minations. be determined on the basis of available pro- (Public Law 103–465; 7 U.S.C. 1445 note) is ‘‘(f) ASSIGNMENT OF TOBACCO PRODUCTION ductivity data for the land involved and amended by striking ‘‘section 106(g), 106A, or PERMITS.— yields for similar farms in the same county. 106B of the Agricultural Act of 1949 (7 U.S.C. ‘‘(1) LIMITATION TO SAME COUNTY.—Each in- ‘‘(i) PENALTIES.— 1445(g), 1445–1, or 1445–2)’’ and inserting ‘‘sec- dividual tobacco production permit holder ‘‘(1) PRODUCTION ON OTHER FARMS.—If any shall assign the individual acreage limita- quantity of tobacco is marketed as having tion 106A or 106B of the Agricultural Act of tion and individual marketing limitation to been produced under an individual acreage 1949 (7 U.S.C. 1445–1, 1445–2)’’. (d) ADJUSTMENT FOR LAND RENTAL COSTS.— 1 or more farms located within the county of limitation or individual marketing limita- Section 106 of the Agricultural Act of 1949 (7 origin of the individual tobacco production tion assigned to a farm but was produced on permit. U.S.C. 1445) is amended by adding at the end a different farm, the individual acreage limi- the following: ‘‘(2) FILING WITH COUNTY COMMITTEE.—The tation or individual marketing limitation ‘‘(h) ADJUSTMENT FOR LAND RENTAL assignment of an individual acreage limita- for the following marketing year shall be COSTS.—For each of the 1999 and 2000 mar- tion and individual marketing limitation forfeited. keting years for flue-cured tobacco, after shall not be effective until evidence of the ‘‘(2) FALSE REPORT.—If a person to which consultation with producers, State farm or- assignment, in such form as required by the an individual tobacco production permit is ganizations and cooperative associations, the Secretary, is filed with and determined by issued files, or aids or acquiesces in the fil- Secretary shall make an adjustment in the the county committee for the county in ing of, a false report with respect to the as- price support level for flue-cured tobacco which the farm involved is located. signment of an individual acreage limitation equal to the annual change in the average ‘‘(3) LIMITATION ON TILLABLE CROPLAND.— or individual marketing limitation for a cost per pound to flue-cured producers, as de- The total acreage assigned to any farm quantity of tobacco, the individual acreage termined by the Secretary, under agree- under this subsection shall not exceed the limitation or individual marketing limita- ments through which producers rent land to acreage of cropland on the farm. tion for the following marketing year shall produce flue-cured tobacco.’’. ‘‘(g) PROHIBITION ON SALE OR LEASING OF be forfeited. (e) FIRE-CURED AND DARK AIR-CURED TO- INDIVIDUAL TOBACCO PRODUCTION PERMITS.— ‘‘(j) MARKETING PENALTIES.— BACCO PROGRAMS.— ‘‘(1) IN GENERAL.—Except as provided in ‘‘(1) IN GENERAL.—When individual tobacco (1) LIMITATION ON TRANSFERS.—Section paragraphs (2) and (3), the Secretary shall production permits under this section are in 318(g) of the Agricultural Adjustment Act of not permit the sale and transfer, or lease and effect, provisions with respect to penalties 1938 (7 U.S.C. 13l4d(g)) is amended—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00038 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5069 (A) by striking ‘‘ten’’ and inserting ‘‘30’’; of the criteria described in paragraph (1) in not feasible or appropriate to approve a and making preliminary findings under sub- training program for a worker, shall not be (B) by inserting ‘‘during any crop year’’ section (b) and determinations under sub- applicable to payment of allowances under after ‘‘transferred to any farm’’. section (c). this section; and (2) LOSS OF ALLOTMENT OR QUOTA THROUGH (b) PRELIMINARY FINDINGS AND BASIC AS- (ii) notwithstanding the provisions of sec- UNDERPLANTING.—Section 318 of the Agricul- SISTANCE.— tion 233(b) of that Act (19 U.S.C. 2293(b)), in tural Adjustment Act of 1938 (7 U.S.C. 1314d) (1) FILING OF PETITIONS.—A petition for cer- order for a worker to qualify for tobacco re- is amended by adding at the end the follow- tification of eligibility to apply for adjust- adjustment allowances under this section, ing: ment assistance under this section may be the worker shall be enrolled in a training ‘‘(k) LOSS OF ALLOTMENT OR QUOTA filed by a group of workers (including work- program approved by the Secretary of the THROUGH UNDERPLANTING.—Effective for the ers in any firm or subdivision of a firm in- type described in section 236(a) of that Act 1999 and subsequent marketing years, no volved in the manufacture, processing, or (19 U.S.C. 2296(a)) by the later of— acreage allotment or acreage-poundage warehousing of tobacco or tobacco products) (I) the last day of the 16th week of the quota, other than a new marketing quota, or by their certified or recognized union or worker’s initial unemployment compensa- shall be established for a farm on which no other duly authorized representative with tion benefit period; or fire-cured or dark air-cured tobacco was the Governor of the State in which the work- (II) the last day of the 6th week after the planted or considered planted during at least ers’ firm or subdivision thereof is located. week in which the Secretary issues a certifi- 2 of the 3 crop years immediately preceding (2) FINDINGS AND ASSISTANCE.—On receipt cation covering the worker. of a petition under paragraph (1), the Gov- the crop year for which the acreage allot- In cases of extenuating circumstances relat- ment or acreage-poundage quota would oth- ernor shall— (A) notify the Secretary that the Governor ing to enrollment of a worker in a training erwise be established.’’. program under this section, the Secretary (f) EXPANSION OF TYPES OF TOBACCO SUB- has received the petition; (B) within 10 days after receiving the peti- may extend the time for enrollment for a pe- JECT TO NO NET COST ASSESSMENT.— riod of not to exceed 30 days. (1) NO NET COST TOBACCO FUND.—Section tion— (i) make a preliminary finding as to wheth- (D) Job search allowances of the type de- 106A(d)(1)(A) of the Agricultural Act of 1949 scribed in section 237 of the Trade Act of 1974 (7 U.S.C. 1445–1(d)(1)(A)) is amended— er the petition meets the criteria described in subsection (a)(1); and (19 U.S.C. 2297). (A) in clause (ii), by inserting after ‘‘Bur- (E) Relocation allowances of the type de- ley quota tobacco’’ the following: ‘‘and fire- (ii) transmit the petition, together with a statement of the finding under clause (i) and scribed in section 238 of the Trade Act of 1974 cured and dark air-cured quota tobacco’’; (19 U.S.C. 2298). and reasons for the finding, to the Secretary for action under subsection (c); and (e) INELIGIBILITY OF INDIVIDUALS RECEIVING (B) in clause (iii)— PAYMENTS FOR LOST TOBACCO QUOTA.—No (i) in the matter preceding subclause (I), by (C) if the preliminary finding under sub- paragraph (B)(i) is affirmative, ensure that benefits or services may be provided under striking ‘‘Flue-cured or Burley tobacco’’ and this section to any individual who has re- inserting ‘‘each kind of tobacco for which rapid response and basic readjustment serv- ices authorized under other Federal laws are ceived payments for lost tobacco quota price support is made available under this under section 1021. Act, and each kind of like tobacco,’’; and made available to the workers. (c) REVIEW OF PETITIONS BY SECRETARY; (f) FUNDING.—Of the amounts appropriated (ii) by striking subclause (II) and inserting CERTIFICATIONS.— to carry out this title, the Secretary may the following: (1) IN GENERAL.—The Secretary, within 30 use not to exceed $25,000,000 for each of fiscal ‘‘(II) the sum of the amount of the per days after receiving a petition under sub- years 1999 through 2008 to provide assistance pound producer contribution and purchaser section (b)(2)(B)(ii), shall determine whether under this section. assessment (if any) for the kind of tobacco the petition meets the criteria described in (g) EFFECTIVE DATE.—This section shall payable under clauses (i) and (ii); and’’. subsection (a)(1). On a determination that take effect on the date that is the later of— (2) NO NET COST TOBACCO ACCOUNT.—Section the petition meets the criteria, the Sec- (1) October l, 1998; or 106B(d)(1) of the Agricultural Act of 1949 (7 retary shall issue to workers covered by the (2) the date of enactment of this Act. U.S.C. 1445–2(d)(1)) is amended— (h) TERMINATION DATE.—No assistance, petition a certification of eligibility to apply (A) in subparagraph (B), by inserting after vouchers, allowances, or other payments for the assistance described in subsection (d). ‘‘Burley quota tobacco’’ the following: ‘‘and may be provided under this section after the (2) DENIAL OF CERTIFICATION.—On the de- fire-cured and dark air-cured tobacco’’; and date that is the earlier of— nial of a certification with respect to a peti- (B) in subparagraph (C), by striking ‘‘Flue- (1) the date that is 10 years after the effec- tion under paragraph (1), the Secretary shall cured and Burley tobacco’’ and inserting tive date of this section under subsection (g); review the petition in accordance with the ‘‘each kind of tobacco for which price sup- or requirements of other applicable assistance port is made available under this Act, and (2) the date on which legislation establish- programs to determine if the workers may be each kind of like tobacco,’’. ing a program providing dislocated workers certified under the other programs. with comprehensive assistance substantially Subtitle C—Farmer and Worker Transition (d) COMPREHENSIVE ASSISTANCE.— similar to the assistance provided by this Assistance (1) IN GENERAL.—Workers covered by a cer- section becomes effective. SEC. 1031. TOBACCO WORKER TRANSITION PRO- tification issued by the Secretary under sub- GRAM. section (c)(1) shall be provided with benefits SEC. 1032. FARMER OPPORTUNITY GRANTS. (a) GROUP ELIGIBILITY REQUIREMENTS.— and services described in paragraph (2) in the Part A of title IV of the Higher Education (1) CRITERIA.—A group of workers (includ- same manner and to the same extent as Act of 1965 (20 U.S.C. 1070 et seq.) is amended ing workers in any firm or subdivision of a workers covered under a certification under by adding at the end the following: firm involved in the manufacture, process- subchapter A of title II of the Trade Act of ‘‘Subpart 9—Farmer Opportunity Grants ing, or warehousing of tobacco or tobacco 1974 (19 U.S.C. 2271 et seq.), except that the ‘‘SEC. 420D. STATEMENT OF PURPOSE. products) shall be certified as eligible to total amount of payments under this section ‘‘It is the purpose of this subpart to assist apply for adjustment assistance under this for any fiscal year shall not exceed in making available the benefits of post- section pursuant to a petition filed under $25,000,000. secondary education to eligible students (de- subsection (b) if the Secretary of Labor de- (2) BENEFITS AND SERVICES.—The benefits termined in accordance with section 420F) in termines that a significant number or pro- and services described in this paragraph are institutions of higher education by providing portion of the workers in the workers’ firm the following: farmer opportunity grants to all eligible stu- or an appropriate subdivision of the firm (A) Employment services of the type de- dents. have become totally or partially separated, scribed in section 235 of the Trade Act of 1974 ‘‘SEC. 420E. PROGRAM AUTHORITY; AMOUNT AND or are threatened to become totally or par- (19 U.S.C. 2295). DETERMINATIONS; APPLICATIONS. tially separated, and— (B) Training described in section 236 of the ‘‘(a) PROGRAM AUTHORITY AND METHOD OF (A) the sales or production, or both, of the Trade Act of 1974 (19 U.S.C. 2296), except that DISTRIBUTION.— firm or subdivision have decreased abso- notwithstanding the provisions of section ‘‘(1) PROGRAM AUTHORITY.—From amounts lutely; and 236(a)(2)(A) of that Act, the total amount of made available under section 1011(d)(5) of the (B) the implementation of the national to- payments for training under this section for LEAF Act, the Secretary, during the period bacco settlement contributed importantly to any fiscal year shall not exceed $12,500,000. beginning July 1, 1999, and ending September the workers’ separation or threat of separa- (C) Tobacco worker readjustment allow- 30, 2024, shall pay to each eligible institution tion and to the decline in the sales or pro- ances, which shall be provided in the same such sums as may be necessary to pay to duction of the firm or subdivision. manner as trade readjustment allowances each eligible student (determined in accord- (2) DEFINITION OF CONTRIBUTED IMPOR- are provided under part I of subchapter B of ance with section 420F) for each academic TANTLY.—In paragraph (1)(B), the term ‘‘con- chapter 2 of title II of the Trade Act of 1974 year during which that student is in attend- tributed importantly’’ means a cause that is (19 U.S.C. 2291 et seq.), except that— ance at an institution of higher education, as important but not necessarily more impor- (i) the provisions of sections 231(a)(5)(C) an undergraduate, a farmer opportunity tant than any other cause. and 231(c) of that Act (19 U.S.C. 2291(a)(5)(C), grant in the amount for which that student (3) REGULATIONS.—The Secretary shall 2291(c)), authorizing the payment of trade re- is eligible, as determined pursuant to sub- issue regulations relating to the application adjustment allowances on a finding that it is section (b). Not less than 85 percent of the

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00039 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5070 CONGRESSIONAL RECORD — SENATE May 19, 1998 sums shall be advanced to eligible institu- ‘‘(B) exclude from eligibility programs of is attending, a document, that need not be tions prior to the start of each payment pe- study abroad that are approved for credit by notarized, but that shall include— riod and shall be based on an amount re- the home institution at which the student is ‘‘(A) a statement of educational purpose quested by the institution as needed to pay enrolled. stating that the money attributable to the eligible students, except that this sentence ‘‘(3) PROHIBITION.—No student is entitled to grant will be used solely for expenses related shall not be construed to limit the authority receive farmer opportunity grant payments to attendance or continued attendance at of the Secretary to place an institution on a concurrently from more than 1 institution or the institution; and reimbursement system of payment. from the Secretary and an institution. ‘‘(B) the student’s social security number; ‘‘(2) CONSTRUCTION.—Nothing in this sec- ‘‘(d) APPLICATIONS FOR GRANTS.— and tion shall be construed to prohibit the Sec- ‘‘(1) IN GENERAL.—The Secretary shall from ‘‘(6) be a citizen of the United States. retary from paying directly to students, in time to time set dates by which students ‘‘(b) TOBACCO FARM FAMILIES.— advance of the beginning of the academic shall file applications for grants under this ‘‘(1) IN GENERAL.—For the purpose of sub- term, an amount for which the students are subpart. The filing of applications under this section (a)(1), a student is a member of a to- eligible, in cases where the eligible institu- subpart shall be coordinated with the filing bacco farm family if during calendar year tion elects not to participate in the disburse- of applications under section 401(c). 1998 the student was— ment system required by paragraph (1). ‘‘(2) INFORMATION AND ASSURANCES.—Each ‘‘(A) an individual who— ‘‘(3) DESIGNATION.—Grants made under this student desiring a grant for any year shall ‘‘(i) is a participating tobacco producer (as subpart shall be known as ‘farmer oppor- file with the Secretary an application for the defined in section 1002 of the LEAF Act); or tunity grants’. grant containing such information and as- ‘‘(ii) is otherwise actively engaged in the ‘‘(b) AMOUNT OF GRANTS.— surances as the Secretary may deem nec- production of tobacco; ‘‘(1) AMOUNTS.— essary to enable the Secretary to carry out ‘‘(B) a spouse, son, daughter, stepson, or ‘‘(A) IN GENERAL.—The amount of the grant the Secretary’s functions and responsibil- stepdaughter of an individual described in for a student eligible under this subpart ities under this subpart. subparagraph (A); shall be— ‘‘(e) DISTRIBUTION OF GRANTS TO STU- ‘‘(C) an individual— ‘‘(i) $1,700 for each of the academic years DENTS.—Payments under this section shall ‘‘(i) who was a brother, sister, stepbrother, 1999–2000 through 2003–2004; be made in accordance with regulations pro- stepsister, son-in-law, or daughter-in-law of ‘‘(ii) $2,000 for each of the academic years mulgated by the Secretary for such purpose, an individual described in subparagraph (A); 2004–2005 through 2008–2009; in such manner as will best accomplish the and ‘‘(iii) $2,300 for each of the academic years purpose of this section. Any disbursement al- ‘‘(ii) whose principal place of residence was 2009–2010 through 2013–2014; lowed to be made by crediting the student’s the home of the individual described in sub- ‘‘(iv) $2,600 for each of the academic years account shall be limited to tuition and fees paragraph (A); or 2014–2015 through 2018–2019; and and, in the case of institutionally owned ‘‘(D) an individual who was a dependent housing, room and board. The student may ‘‘(v) $2,900 for each of the academic years (within the meaning of section 152 of the In- elect to have the institution provide other 2019–2020 through 2023–2024. ternal Revenue Code of 1986) of an individual such goods and services by crediting the stu- ‘‘(B) PART-TIME RULE.—In any case where a described in subparagraph (A). dent’s account. student attends an institution of higher edu- ‘‘(2) ADMINISTRATION.—On request, the Sec- ‘‘(f) INSUFFICIENT FUNDING.—If, for any fis- retary of Agriculture shall provide to the cation on less than a full-time basis (includ- cal year, the funds made available to carry ing a student who attends an institution of out this subpart are insufficient to satisfy Secretary such information as is necessary higher education on less than a half-time fully all grants for students determined to be to carry out this subsection. basis) during any academic year, the amount eligible under section 420F, the amount of ‘‘(c) SATISFACTORY PROGRESS.— of the grant for which that student is eligi- the grant provided under subsection (b) shall ‘‘(1) IN GENERAL.—For the purpose of sub- ble shall be reduced in proportion to the de- be reduced on a pro rata basis among all eli- section (a)(3), a student is maintaining satis- gree to which that student is not so attend- gible students. factory progress if— ing on a full-time basis, in accordance with ‘‘(g) TREATMENT OF INSTITUTIONS AND STU- ‘‘(A) the institution at which the student is a schedule of reductions established by the DENTS UNDER OTHER LAWS.—Any institution in attendance reviews the progress of the Secretary for the purposes of this subpara- of higher education that enters into an student at the end of each academic year, or graph, computed in accordance with this agreement with the Secretary to disburse to its equivalent, as determined by the institu- subpart. The schedule of reductions shall be students attending that institution the tion; and established by regulation and published in amounts those students are eligible to re- ‘‘(B) the student has at least a cumulative the Federal Register. ceive under this subpart shall not be deemed, C average or its equivalent, or academic ‘‘(2) MAXIMUM.—No grant under this sub- by virtue of the agreement, to be a contrac- standing consistent with the requirements part shall exceed the cost of attendance (as tor maintaining a system of records to ac- for graduation, as determined by the institu- described in section 472) at the institution at complish a function of the Secretary. Recipi- tion, at the end of the second such academic which that student is in attendance. If, with ents of farmer opportunity grants shall not year. respect to any student, it is determined that be considered to be individual grantees for ‘‘(2) SPECIAL RULE.—Whenever a student the amount of a grant exceeds the cost of at- purposes of the Drug-Free Workplace Act of fails to meet the eligibility requirements of tendance for that year, the amount of the 1988 (41 U.S.C. 701 et seq.). subsection (a)(3) as a result of the applica- grant shall be reduced to an amount equal to ‘‘SEC. 420F. STUDENT ELIGIBILITY. tion of this subsection and subsequent to the cost of attendance at the institution. ‘‘(a) IN GENERAL.—In order to receive any that failure the student has academic stand- ‘‘(3) PROHIBITION.—No grant shall be award- grant under this subpart, a student shall— ing consistent with the requirements for ed under this subpart to any individual who ‘‘(1) be a member of a tobacco farm family graduation, as determined by the institu- is incarcerated in any Federal, State, or in accordance with subsection (b); tion, for any grading period, the student local penal institution. ‘‘(2) be enrolled or accepted for enrollment may, subject to this subsection, again be eli- ‘‘(c) PERIOD OF ELIGIBILITY FOR GRANTS.— in a degree, certificate, or other program (in- gible under subsection (a)(3) for a grant ‘‘(1) IN GENERAL.—The period during which cluding a program of study abroad approved under this subpart. a student may receive grants shall be the pe- for credit by the eligible institution at which ‘‘(3) WAIVER.—Any institution of higher riod required for the completion of the first the student is enrolled) leading to a recog- education at which the student is in attend- undergraduate baccalaureate course of study nized educational credential at an institu- ance may waive paragraph (1) or (2) for being pursued by that student at the institu- tion of higher education that is an eligible undue hardship based on— tion at which the student is in attendance, institution in accordance with section 487, ‘‘(A) the death of a relative of the student; except that any period during which the stu- and not be enrolled in an elementary or sec- ‘‘(B) the personal injury or illness of the dent is enrolled in a noncredit or remedial ondary school; student; or course of study as described in paragraph (2) ‘‘(3) if the student is presently enrolled at ‘‘(C) special circumstances as determined shall not be counted for the purpose of this an institution of higher education, be main- by the institution. paragraph. taining satisfactory progress in the course of ‘‘(d) STUDENTS WHO ARE NOT SECONDARY ‘‘(2) CONSTRUCTION.—Nothing in this sec- study the student is pursuing in accordance SCHOOL GRADUATES.—In order for a student tion shall be construed to— with subsection (c); who does not have a certificate of graduation ‘‘(A) exclude from eligibility courses of ‘‘(4) not owe a refund on grants previously from a school providing secondary education, study that are noncredit or remedial in na- received at any institution of higher edu- or the recognized equivalent of the certifi- ture and that are determined by the institu- cation under this title, or be in default on cate, to be eligible for any assistance under tion to be necessary to help the student be any loan from a student loan fund at any in- this subpart, the student shall meet either 1 prepared for the pursuit of a first under- stitution provided for in part D, or a loan of the following standards: graduate baccalaureate degree or certificate made, insured, or guaranteed by the Sec- ‘‘(1) EXAMINATION.—The student shall take or, in the case of courses in English language retary under this title for attendance at any an independently administered examination instruction, to be necessary to enable the institution; and shall achieve a score, specified by the student to utilize already existing knowl- ‘‘(5) file with the institution of higher edu- Secretary, demonstrating that the student edge, training, or skills; and cation that the student intends to attend, or can benefit from the education or training

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00040 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5071

being offered. The examination shall be ap- ‘‘(1) PENDING VERIFICATION.—Except as pro- tifying the international fora wherein inter- proved by the Secretary on the basis of com- vided in paragraphs (2) and (3), an institution national tobacco control efforts may be ne- pliance with such standards for development, shall not deny, reduce, delay, or terminate a gotiated. administration, and scoring as the Secretary student’s eligibility for assistance under this SEC. 1104. FUNDING. may prescribe in regulations. subpart because social security number ver- There are authorized such sums as are nec- ‘‘(2) DETERMINATION.—The student shall be ification is pending. essary to carry out the provisions of this determined as having the ability to benefit ‘‘(2) DENIAL OR TERMINATION.—If there is a subtitle. from the education or training in accordance determination by the Secretary that the so- SEC. 1105. PROHIBITION OF FUNDS TO FACILI- with such process as the State shall pre- cial security number provided to an eligible TATE THE EXPORTATION OR PRO- scribe. Any such process described or ap- institution by a student is incorrect, the in- MOTION OF TOBACCO. proved by a State for the purposes of this stitution shall deny or terminate the stu- (a) IN GENERAL.—No officer, employee, de- section shall be effective 6 months after the dent’s eligibility for any grant under this partment, or agency of the United States date of submission to the Secretary unless subpart until such time as the student pro- may promote the sale or export of tobacco or the Secretary disapproves the process. In de- vides documented evidence of a social secu- tobacco products, or seek the reduction or termining whether to approve or disapprove rity number that is determined by the insti- removal by any foreign country of restric- the process, the Secretary shall take into ac- tution to be correct. tions on the marketing of tobacco or tobacco count the effectiveness of the process in ena- ‘‘(3) CONSTRUCTION.—Nothing in this sub- products, unless such restrictions are not ap- bling students without secondary school di- section shall be construed to permit the Sec- plied equally to all tobacco and tobacco plomas or the recognized equivalent to bene- retary to take any compliance, disallowance, products. The United States Trade Rep- fit from the instruction offered by institu- penalty, or other regulatory action against— resentative shall consult with the Secretary tions utilizing the process, and shall also ‘‘(A) any institution of higher education regarding inquiries, negotiations, and rep- take into account the cultural diversity, eco- with respect to any error in a social security resentations with respect to tobacco and to- nomic circumstances, and educational prepa- number, unless the error was a result of bacco products, including whether proposed ration of the populations served by the insti- fraud on the part of the institution; or restrictions are reasonable protections of tutions. ‘‘(B) any student with respect to any error public health. (b) NOTIFICATION.—Whenever such inquir- ‘‘(e) SPECIAL RULE FOR CORRESPONDENCE in a social security number, unless the error ies, negotiations, or representations are COURSES.—A student shall not be eligible to was a result of fraud on the part of the stu- made, the United States Trade Representa- receive a grant under this subpart for a cor- dent.’’. tive shall notify the Congress within 10 days respondence course unless the course is part Subtitle D—Immunity of a program leading to an associate, bach- afterwards regarding the nature of the in- elor, or graduate degree. SEC. 1041. GENERAL IMMUNITY FOR TOBACCO quiry, negotiation, or representation. PRODUCERS AND TOBACCO WARE- ‘‘(f) COURSES OFFERED THROUGH TELE- SEC. 1106. HEALTH LABELING OF TOBACCO HOUSE OWNERS. COMMUNICATIONS.— PRODUCTS FOR EXPORT. Notwithstanding any other provision of ‘‘(1) RELATION TO CORRESPONDENCE (a) IN GENERAL.— this title, a participating tobacco producer, COURSES.—A student enrolled in a course of (1) EXPORTS MUST BE LABELED.—It shall be instruction at an eligible institution of high- tobacco-related growers association, or to- unlawful for any United States person, di- er education (other than an institute or bacco warehouse owner or employee may not rectly or through approval or facilitation of school that meets the definition in section be subject to liability in any Federal or a transaction by a foreign person, to make 521(4)(C) of the Carl D. Perkins Vocational State court for any cause of action resulting use of the United States mail or of any in- and Applied Technology Education Act (20 from the failure of any tobacco product man- strument of interstate commerce to author- U.S.C. 2471(4)(C))) that is offered in whole or ufacturer, distributor, or retailer to comply ize or contribute to the export from the in part through telecommunications and with the National Tobacco Policy and Youth United States any tobacco product unless leads to a recognized associate, bachelor, or Smoking Reduction Act. the tobacco product packaging contains a graduate degree conferred by the institution TITLE XI—MISCELLANEOUS PROVISIONS warning label that— shall not be considered to be enrolled in cor- Subtitle A—International Provisions (A) complies with Federal requirements for labeling of similar tobacco products manu- respondence courses unless the total amount SEC. 1101. POLICY. factured, imported, or packaged for sale or of telecommunications and correspondence It shall be the policy of the United States distribution in the United States; or courses at the institution equals or exceeds government to pursue bilateral and multilat- (B) complies with the specific health haz- 50 percent of the courses. eral agreements that include measures de- ard warning labeling requirements of the for- ‘‘(2) RESTRICTION OR REDUCTIONS OF FINAN- signed to— eign country to which the product is ex- CIAL AID.—A student’s eligibility to receive a (1) restrict or eliminate tobacco advertis- ported. grant under this subpart may be reduced if a ing and promotion aimed at children; (2) U.S. REQUIREMENTS APPLY IF THE DES- financial aid officer determines under the (2) require effective warning labels on discretionary authority provided in section packages and advertisements of tobacco TINATION COUNTRY DOES NOT REQUIRE SPECIFIC HEALTH HAZARD WARNING LABELS.—Subpara- 479A that telecommunications instruction products; graph (B) of paragraph (1) does not apply to results in a substantially reduced cost of at- (3) require disclosure of tobacco ingredient exports to a foreign country that does not tendance to the student. information to the public; have any specific health hazard warning ‘‘(3) DEFINITION.—For the purposes of this (4) limit access to tobacco products by label requirements for the tobacco product subsection, the term ‘telecommunications’ young people; being exported. means the use of television, audio, or com- (5) reduce smuggling of tobacco and to- (b) UNITED STATES PERSON DEFINED.—For puter transmission, including open broad- bacco products; purposes of this section, the term ‘‘United cast, closed circuit, cable, microwave, or sat- (6) ensure public protection from environ- States person’’ means— ellite, audio conferencing, computer con- mental tobacco smoke; and (1) an individual who is a citizen, national, ferencing, or video cassettes or discs, except (7) promote tobacco product policy and or resident of the United States; and that the term does not include a course that program information sharing between or (2) a corporation, partnership, association, is delivered using video cassette or disc re- among the parties to those agreements. joint-stock company, business trust, unin- cordings at the institution and that is not SEC. 1102. TOBACCO CONTROL NEGOTIATIONS. delivered in person to other students of that corporated organization, or sole proprietor- The President, in consultation with the ship which has its principal place of business institution. Secretary of State, the Secretary of Health ‘‘(g) STUDY ABROAD.—Nothing in this sub- in the United States. and Human Services, and the United States part shall be construed to limit or otherwise (c) REPORT TO CONGRESS ON ENFORCEMENT; Trade Representative, shall— prohibit access to study abroad programs ap- FEASIBILITY REGULATIONS.— (1) act as the lead negotiator for the proved by the home institution at which a (1) THE PRESIDENT.—The President shall— student is enrolled. An otherwise eligible United States in the area of international to- (A) report to the Congress within 90 days student who is engaged in a program of bacco control; after the date of enactment of this Act— study abroad approved for academic credit (2) coordinate among U.S. foreign policy (i) regarding methods to ensure compliance by the home institution at which the student and trade negotiators in the area of effective with subsection (a); and is enrolled shall be eligible to receive a grant international tobacco control policy; (ii) listing countries whose health warn- under this subpart, without regard to wheth- (3) work closely with non-governmental ings related to tobacco products are substan- er the study abroad program is required as groups, including public health groups; and tially similar to those in the United States; part of the student’s degree program. (4) report annually to the Congress on the and ‘‘(h) VERIFICATION OF SOCIAL SECURITY progress of negotiations to achieve effective (B) promulgate regulations within 1 year NUMBER.—The Secretary, in cooperation international tobacco control policy. after the date of enactment of this Act that with the Commissioner of Social Security, SEC. 1103. REPORT TO CONGRESS. will ensure compliance with subsection (a). shall verify any social security number pro- Not later than 150 days after the enact- (2) THE SECRETARY.—The Secretary shall vided by a student to an eligible institution ment of this Act and annually thereafter, determine through regulation the feasibility under subsection (a)(5)(B) and shall enforce the Secretary of Health and Human Services and practicability of requiring health warn- the following conditions: shall transmit to the Congress a report iden- ing labeling in the language of the country

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00041 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5072 CONGRESSIONAL RECORD — SENATE May 19, 1998

of destination weighing the health and other (c) AUTHORIZATION OF APPROPRIATIONS.— (9) MANUFACTURER.— The term ‘‘manufac- benefits and economic and other costs. To There are authorized to be appropriated, turer’’ means any person engaged in the the greatest extent practicable, the Sec- from the National Tobacco Trust Fund, to business of manufacturing a tobacco product retary should design a system that requires carry out the provisions of this section, in- for purposes of sale or distribution, except the language of the country of destination cluding the administrative costs incurred by that such term shall not include a person while minimizing the dislocative effects of any agency of the United States in carrying who manufactures less than 30,000 cigarettes, such a system. out this section, $350,000,000 for each of the or its equivalent as determined by regula- SEC. 1107. INTERNATIONAL TOBACCO CONTROL fiscal years 1999 through 2004, and such sums tions, in any twelve month period;; and the AWARENESS. as may be necessary for each fiscal year term ‘‘licensed manufacturer’’ means any (a) ESTABLISHMENT OF INTERNATIONAL TO- thereafter. A substantial amount of such such person licensed under the provisions of BACCO CONTROL AWARENESS.—The Secretary funds shall be granted to non-governmental this subtitle, except that such term shall not is authorized to establish an international organizations. Any amount appropriated include a person who produces cigars, ciga- tobacco control awareness effort. The Sec- pursuant to this authorization shall remain rettes, smokeless tobacco, or pipe tobacco retary shall— available without fiscal year limitation until solely for his own personal consumption or (1) promote efforts to share information expended. use. and provide education internationally about Subtitle B—Anti-smuggling Provisions (10) WHOLESALER.—The term ‘‘wholesaler’’ the health, economic, social, and other costs SEC. 1131. DEFINITIONS. means any person engaged in the business of of tobacco use, including scientific and epi- purchasing tobacco products for resale at demiological data related to tobacco and to- (a) INCORPORATION OF CERTAIN DEFINI- TIONS.—In this subtitle, the terms ‘‘cigar’’, wholesale, or any person acting as an agent bacco use and enhancing countries’ capacity or broker for any person engaged in the busi- to collect, analyze, and disseminating such ‘‘cigarette’’, ‘‘person’’, ‘‘pipe tobacco’’, ‘‘roll- your-own tobacco’’, ‘‘smokeless tobacco’’, ness of purchasing tobacco products for re- data; sale at wholesale, and the term ‘‘licensed (2) promote policies and support and co- ‘‘State’’, ‘‘tobacco product’’, and ‘‘United States ‘‘, shall have the meanings given such wholesaler’’ means any such person licensed ordinate international efforts, including under the provisions of this subtitle. international agreements or arrangements, terms in sections 5702(a), 5702(b), 7701(a)(1), SEC. 1132. TOBACCO PRODUCT LABELING RE- that seek to enhance the awareness and un- 5702(o), 5702(n)(1), 5702(p), 3306(j)(1), 5702(c), and 3306(j)(2) respectively of the Internal QUIREMENTS. derstanding of the costs associated with to- (a) IN GENERAL.—It is unlawful for any per- bacco use; Revenue Code of 1986. (b) OTHER DEFINITIONS.—In this subtitle: son to sell, or ship or deliver for sale or ship- (3) support the development of appropriate ment, or otherwise introduce in interstate or (1) AFFILIATE.—The term ‘‘affiliate’’ means governmental control activities in foreign foreign commerce, or to receive therein, or countries, such as assisting countries to de- any one of 2 or more persons if 1 of such per- sons has actual or legal control, directly or to remove from Customs custody for use, any sign, implement, and evaluate programs and tobacco product unless such product is pack- indirectly, whether by stock ownership or policies used in the United States or other aged and labeled in conformity with this sec- otherwise, of other or others of such persons, countries; including the training of United tion. and any 2 or more of such persons subject to States diplomatic and commercial represent- (b) LABELING.— common control, actual or legal, directly or atives outside the United States; (1) IDENTIFICATION.—Not later than 1 year (4) undertake other activities as appro- indirectly, whether by stock ownership or after the date of enactment of this Act, the priate in foreign countries that help achieve otherwise. Secretary shall promulgate regulations that NTERSTATE OR FOREIGN COMMERCE.— a reduction of tobacco use; (2) I require each manufacturer or importer of to- The term ‘‘interstate or foreign commerce’’ (5) permit United States participation in bacco products to legibly print a unique se- means any commerce between any State and annual meetings of government and non-gov- rial number on all packages of tobacco prod- any place outside thereof, or commerce with- ernment representatives concerning inter- ucts manufactured or imported for sale or in any Territory or the District of Columbia, national tobacco use and efforts to reduce distribution. The serial number shall be de- or between points within the same State but tobacco use; signed to enable the Secretary to identify through any place outside thereof. (6) promote mass media campaigns, includ- the manufacturer or importer of the product, (3) SECRETARY.—The term ‘‘Secretary’’ ing paid counter-tobacco advertisements to and the location and date of manufacture or means the Secretary of the Treasury. reverse the image appeal of pro-tobacco mes- importation. The Secretary shall determine (4) PACKAGE.—The term ‘‘package’’ means sages, especially those that glamorize and the size and location of the serial number. the innermost sealed container irrespective ‘‘Westernize’’ tobacco use to young people; (2) MARKING REQUIREMENTS FOR EXPORTS.— and of the material from which such container is Each package of a tobacco product that is (7) create capacity and global commitment made, in which a tobacco product is placed exported shall be marked for export from the to reduce international tobacco use and pre- by the manufacturer and in which such to- United States. The Secretary shall promul- vent youth smoking, including the use of bacco product is offered for sale to a member gate regulations to determine the size and models of previous public health efforts to of the general public. location of the mark and under what cir- ETAILER.—The term ‘‘retailer’’ means address global health problems. (5) R cumstances a waiver of this paragraph shall CTIVITIES.— any dealer who sells, or offers for sale, any (b) A be granted. (1) IN GENERAL.—The activities under sub- tobacco product at retail. The term ‘‘re- (c) PROHIBITION ON ALTERATION.—It is un- section (a) shall include— tailer’’ includes any duty free store that lawful for any person to alter, mutilate, de- (A) public health and education programs; sells, offers for sale, or otherwise distributes stroy, obliterate, or remove any mark or (B) technical assistance; at retail in any single transaction 30 or less label required under this subtitle upon a to- (C) cooperative efforts and support for re- packages, or it equivalent for other tobacco bacco product in or affecting commerce, ex- lated activities of multilateral organization products. cept pursuant to regulations of the Sec- and international organizations; (6) EXPORTER.—The term ‘‘exporter’’ means retary authorizing relabeling for purposes of (D) training; and any person engaged in the business of export- compliance with the requirements of this (E) such other activities that support the ing tobacco products from the United States section or of State law. objectives of this section as may be appro- for purposes of sale or distribution; and the SEC. 1133. TOBACCO PRODUCT LICENSES. priate. term ‘‘licensed exporter’’ means any such (a) IN GENERAL.—Not later than 1 year (2) GRANTS AND CONTRACTS.—In carrying person licensed under the provisions of this after the date of enactment of this Act, the out this section, the Secretary shall make subtitle. Any duty-free store that sells, of- Secretary shall establish a program under grants to, enter into and carry out agree- fers for sale, or otherwise distributes to any which tobacco product licenses are issued to ments with, and enter into other trans- person in any single transaction more than manufacturers, importers, exporters, and actions with any individual, corporation, or 30 packages of cigarettes, or its equivalent wholesalers of tobacco products. other entity, whether within or outside the for other tobacco products as the Secretary (b)(1) ELIGIBILITY.—A person is entitled to United States, including governmental and shall by regulation prescribe, shall be a license unless the Secretary finds— nongovernmental organizations, inter- deemed an ‘‘exporter’’ under this subtitle. (A) that such person has been previously national organizations, and multilateral or- (7) IMPORTER.—The term ‘‘importer’’ means convicted of a Federal crime relating to to- ganizations. any person engaged in the business of im- bacco, including the taxation thereof; (3) TRANSFER OF FUNDS TO AGENCIES.—The porting tobacco products into the United (B) that such person has, within 5 years Secretary may transfer to any agency of the States for purposes of sale or distribution; prior to the date of application, been pre- United States any part of any funds appro- and the term ‘‘licensed importer’’ means any viously convicted of any felony under Fed- priated for the purpose of carrying out this such person licensed under the provisions of eral or State law; or section. Funds authorized to be appropriated this subtitle. (C) that such person is, by virtue of his by this section shall be available for obliga- (8) INTENTIONALLY.—The term ‘‘inten- business experience, financial standing, or tion and expenditure in accordance with the tionally’’ means doing an act, or omitting to trade connections, not likely to maintain provisions of this section or in accordance do an act, deliberately, and not due to acci- such operations in conformity with Federal with the authority governing the activities dent, inadvertence, or mistake. An inten- law. of the agency to which such funds are trans- tional act does not require that a person (2) CONDITIONS.—The issuance of a license ferred. knew that his act constituted an offense. under this section shall be conditioned upon

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00042 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5073 the compliance with the requirements of this identify the shipment and assure that it SEC. 1136. LIMITATION ON ACTIVITIES INVOLV- subtitle, all Federal laws relating to the tax- reaches its intended destination. ING TOBACCO PRODUCTS IN FOR- ation of tobacco products, chapter 114 of title EIGN TRADE ZONES. (3) AGREEMENTS WITH FOREIGN GOVERN- (a) MANUFACTURE OF TOBACCO PRODUCTS IN 18, United States Code, and any regulations MENTS.—The Secretary is authorized to enter issued pursuant to such statutes. FOREIGN TRADE ZONES.—No person shall into agreements with foreign governments to manufacture a tobacco product in any for- (c) REVOCATION, SUSPENSION, AND ANNUL- exchange or share information contained in eign trade zone, as defined for purposes of MENT.—The program established under sub- reports received from exporters of tobacco the Act of June 18, 1934 (19 U.S.C. 81a et seq.). section (a) shall permit the Secretary to re- products if the Secretary believes that such (b) EXPORTING OR IMPORTING FROM OR INTO voke, suspend, or annul a license issued an agreement will assist in— A FOREIGN TRADE ZONE.—Any person export- under this section if the Secretary deter- (A) insuring compliance with any law or ing or importing tobacco products from or mines that the terms or conditions of the li- regulation enforced or administered by an into a foreign trade zone, as defined for pur- cense have not been complied with. Prior to agency of the United States; or poses of the Act of June 18, 1934 (19 U.S.C. 81a any action under this subsection, the Sec- (B) preventing or detecting violation of the et seq.), shall comply with the requirements retary shall provide the licensee with due no- laws or regulations of a foreign government provided in this subtitle. In any case where tice and the opportunity for a hearing. with which the Secretary has entered into an the person operating in a foreign trade zone (d) RECORDS AND AUDITS.—The Secretary agreement. is acting on behalf of a person licensed under shall, under the program established under this subtitle, qualification as an importer or subsection (a), require all license holders to Such information may be exchanged or exporter will not be required, if such person keep records concerning the chain of custody shared with a foreign government only if the complies with the requirements set forth in of the tobacco products that are the subject Secretary obtains assurances from such gov- section 1134(d)(2) and (3) of this subtitle. of the license and make such records avail- ernment that the information will be held in SEC. 1137. JURISDICTION; PENALTIES; COM- able to the Secretary for inspection and confidence and used only for the purpose of PROMISE OF LIABILITY. audit. preventing or detecting violations of the (a) JURISDICTION.—The District Courts of (e) RETAILERS.—This section does not laws or regulations of such government or the United States, and the United States apply to retailers of tobacco products, except the United States and, provided further that Court for any Territory, of the District that retailers shall maintain records of re- no information may be exchanged or shared where the offense is committed or of which ceipt, and such records shall be available to with any government that has violated such the offender is an inhabitant or has its prin- the Secretary for inspection and audit. An assurances. cipal place of business, are vested with juris- ordinary commercial record or invoice will (e) UNLAWFUL ACTS.— diction of any suit brought by the Attorney satisfy this requirement provided such (1) UNLICENSED RECEIPT OR DELIVERY.—It is General in the name of the United States, to record shows the date of receipt, from whom unlawful for any licensed importer, licensed prevent and restrain violations of any of the such products were received and the quan- manufacturer, or licensed wholesaler inten- provisions of this subtitle. tity of tobacco products received. tionally to ship, transport, deliver or receive (b) PENALTIES.—Any person violating any of the provisions of this subtitle shall, upon SEC. 1134. PROHIBITIONS. any tobacco products from or to any person conviction, be fined as provided in section (a) IMPORTATION AND SALE.—It is unlawful, other than a person licensed under this chap- 3571 of title 18, United States Code, impris- except pursuant to a license issued by the ter or a retailer licensed under the provi- oned for not more than 5 years, or both. Secretary under this subtitle— sions of this Act, except a licensed importer (c) CIVIL PENALTIES.—The Secretary may, (1) to engage in the business of importing may receive foreign tobacco products from a in lieu of referring violations of this subtitle tobacco products into the United States; or foreign manufacturer or a foreign distributor for criminal prosecution, impose a civil pen- (2) for any person so engaged to sell, offer, that have not previously entered the United alty of not more than $10,000 for each of- or deliver for sale, contract to sell, or ship, States. fense. in or affecting commerce, directly or indi- (2) RECEIPT OF RE-IMPORTED GOODS.—It is (d) COMPROMISE OF LIABILITY.—The Sec- rectly or through an affiliate, tobacco prod- unlawful for any person, except a licensed retary is authorized, with respect to any vio- ucts so imported. manufacturer or a licensed exporter to re- lation of this subtitle, to compromise the li- (b) MANUFACTURE AND SALE.—It is unlaw- ceive any tobacco products that have pre- ability arising with respect to a violation of ful, except pursuant to a license issued by viously been exported and returned to the this subtitle— the Secretary under this subtitle— United States. (1) upon payment of a sum not in excess of (1) to engage in the business of manufac- (3) DELIVERY BY EXPORTER.—It is unlawful $10,000 for each offense, to be collected by the turing, packaging or warehousing tobacco for any licensed exporter intentionally to Secretary and to be paid into the Treasury products; or ship, transport, sell or deliver for sale any as miscellaneous receipts; and (2) for any person so engaged to sell, offer, tobacco products to any person other than a (2) in the case of repetitious violations and or deliver for sale, contract to sell, or ship, licensed manufacturer or foreign purchaser. in order to avoid multiplicity of criminal in or affecting commerce, directly or indi- (4) SHIPMENT OF EXPORT-ONLY GOODS.—It is proceedings, upon agreement to a stipula- rectly or through an affiliate, tobacco prod- unlawful for any person other than a li- tion, that the United States may, on its own ucts so manufactured, packaged, or censed exporter intentionally to ship, trans- motion upon 5 days notice to the violator, warehoused. port, receive or possess, for purposes of re- cause a consent decree to be entered by any (c) WHOLESALE.—It is unlawful, except pur- sale, any tobacco product in packages court of competent jurisdiction enjoining suant to a license issued by the Secretary marked ‘‘FOR EXPORT FROM THE UNITED the repetition of such violation. under this subtitle— STATES,’’ other than for direct return to (e) FORFEITURE.— (1) to engage in the business of purchasing the manufacturer or exporter for re-packing (1) The Secretary may seize and forfeit any for resale at wholesale tobacco products, or, or for re-exportation. conveyance, tobacco products, or monetary as a principal or agent, to sell, offer for sale, (5) FALSE STATEMENTS.—It is unlawful for instrument (as defined in section 5312 of title negotiate for, or hold out by solicitation, ad- any licensed manufacturer, licensed ex- 31, United States Code) involved in a viola- vertisement, or otherwise as selling, provid- porter, licensed importer, or licensed whole- tion of this subtitle, or any property, real or ing, or arranging for, the purchase for resale saler to make intentionally any false entry personal, which constitutes or is derived at wholesale of tobacco products; or in, to fail willfully to make appropriate from proceeds traceable to a violation of this (2) for any person so engaged to receive or entry in, or to fail willfully to maintain chapter. For purposes of this paragraph, the sell, offer or deliver for sale, contract to sell, properly any record or report that he is re- provisions of subsections (a)(2), (b)(2), and (c) or ship, in or affecting commerce, directly or quired to keep as required by this chapter or through (j) of section 981 of title 18, United indirectly or through an affiliate, tobacco the regulations promulgated thereunder. States Code, apply to seizures and forfeitures products so purchased. (h) EFFECTIVE DATE.—The provisions of under this paragraph insofar as they are ap- (d) EXPORTATION.— this section shall become effective on the plicable and not inconsistent with the provi- (1) IN GENERAL.—It is unlawful, except pur- date that is 365 days after the date of enact- sions of this subtitle. suant to a license issued by the Secretary ment of this Act. (2) The court, in imposing sentence upon a under this subtitle— person convicted of an offense under this (A) to engage in the business of exporting SEC. 1135. LABELING OF PRODUCTS SOLD BY NA- subtitle, shall order that the person forfeit TIVE AMERICANS. tobacco products from the United States; or to the United States any property described (B) for any person so engaged to sell, offer, The Secretary, in consultation with the in paragraph (1). The seizure and forfeiture or deliver for sale, contract to sell, or ship, Secretary of the Interior, shall promulgate of such property shall be governed by sub- in or affecting commerce, directly or indi- regulations that require that each package sections (b), (c), and (e) through (p) of sec- rectly or through an affiliate, tobacco prod- of a tobacco product that is sold on an In- tion 853 of title 21, United States Code, inso- ucts received for export. dian reservation (as defined in section 403(9) far as they are applicable and not inconsist- (2) REPORT.—Prior to exportation of to- of the Indian Child Protection and Family ent with the provisions of this subtitle. bacco products from the United States, the Violence Prevention Act (25 U.S.C. 3202(9)) be SEC. 1138. AMENDMENTS TO THE CONTRABAND exporter shall submit a report in such man- labeled as such. Such regulations shall in- CIGARETTE TRAFFICKING ACT. ner and form as the Secretary may by regu- clude requirements for the size and location (a) DEFINITIONS.—Section 2341 of title 18, lation prescribe to enable the Secretary to of the label. United States Code, is amended—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00043 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5074 CONGRESSIONAL RECORD — SENATE May 19, 1998 (1) by striking ‘‘60,000’’ and inserting (4) by striking ‘‘60,000’’ in subsection (b) this chapter or any other Federal law relat- ‘‘30,000’’ in paragraph (2); and inserting ‘‘30,000’’; ing to the unlawful trafficking in tobacco (2) by inserting after ‘‘payment of ciga- (5) by inserting after ‘‘transaction’’ in sub- products (including expenses incurred for the rette taxes,’’ in paragraph (2) the following: section (b) the following: ‘‘or, in the case of salaries and expenses of individuals em- ‘‘or in the case of a State that does not re- other tobacco products an equivalent quan- ployed to provide such services). None of the quire any such indication of tax payment, if tity as determined by regulation,’’; and funds deposited into such account shall be the person in possession of the cigarettes is (6) by adding at the end thereof the follow- available for any purpose other than making unable to provide any evidence that the ciga- ing: payments authorized under the preceding rettes are moving legally in interstate com- ‘‘(c)(1) Any person who ships, sells, or dis- sentence. merce,’’; tributes for resale tobacco products in inter- SEC. 1140. RULES AND REGULATIONS. (3) by striking ‘‘and’’ at the end of para- state commerce, whereby such tobacco prod- The Secretary shall prescribe all needful graph (4); ucts are shipped into a State taxing the sale rules and regulations for the enforcement of (4) by striking ‘‘Treasury.’’ in paragraph or use of such tobacco products or who ad- this chapter, including all rules and regula- (5) and inserting ‘‘Treasury;’’; and vertises or offers tobacco products for such tions that are necessary to ensure the lawful (5) by adding at the end thereof the follow- sale or transfer and shipment shall— distribution of tobacco products in inter- ing: ‘‘(A) first file with the tobacco tax admin- state or foreign commerce. ‘‘(6) the term ‘tobacco product’ means ci- istrator of the State into which such ship- Subtitle C—Other Provisions gars, cigarettes, smokeless tobacco, roll your ment is made or in which such advertise- own and pipe tobacco (as such terms are de- ment or offer is disseminated, a statement SEC. 1161. IMPROVING CHILD CARE AND EARLY CHILDHOOD DEVELOPMENT. fined in section 5701 of the Internal Revenue setting for the persons name, and trade name (a) IN GENERAL.—There are authorized to Code of 1986); and (if any), and the address of the persons prin- be appropriated to the Secretary from the ‘‘(7) the term ‘contraband tobacco product’ cipal place of business and of any other place National Tobacco Trust Fund such sums as means— of business; and may be necessary for each fiscal year to be ‘‘(A) a quantity in excess of 30,000 of any ‘‘(B) not later than the 10th day of each used by the Secretary for the following pur- tobacco product that is manufactured, sold, month, file with the tobacco tax adminis- poses: shipped, delivered, transferred, or possessed trator of the State into which such shipment (1) Improving the affordability of child in violation of Federal laws relating to the is made a memorandum or a copy of the in- care through increased appropriations for distribution of tobacco products; and voice covering each and every shipment of child care under the Child Care and Develop- ‘‘(B) a quantity of tobacco product that is tobacco products made during the previous ment Block Grant Act of 1990 (42 U.S.C. 9859 equivalent to an excess of 30,000 cigarettes, month into such State; the memorandum or et seq.). as determined by regulation, which bears no invoice in each case to include the name and (2) Enhancing the quality of child care and evidence of the payment of applicable State address of the person to whom the shipment early childhood development through the tobacco taxes in the State where such to- was made, the brand, and the quantity there- provision of grants to States under the Child bacco products are found, if such State re- of. Care and Development Block Grant Act of quires a stamp, impression, or other indica- ‘‘(2) The fact that any person ships or de- 1990 (42 U.S.C. 9859 et seq.). tion to be placed on packages or other con- livers for shipment any tobacco products (3) Expanding the availability and quality tainers of product to evidence payment of to- shall, if such shipment is into a State in of school-age care through the provision of bacco taxes, or in the case of a State that which such person has filed a statement with grants to States under the Child Care and does not require any such indication of tax the tobacco tax administrator under para- Development Block Grant Act of 1990 (42 payment, if the person in possession of the graph (1)(A) of this subsection, be presump- U.S.C. 9859 et seq.). tobacco product is unable to provide any evi- tive evidence that such tobacco products (4) Assisting young children by providing dence that the tobacco products are moving were sold, shipped, or distributed for resale grants to local collaboratives under the legally in interstate commerce and which by such person. Child Care and Development Block Grant are in the possession of any person other ‘‘(3) For purposes of this subsection— Act of 1990 (42 U.S.C. 9859 et seq.) for the pur- than a person defined in paragraph (2) of this ‘‘(A) the term ‘use’ includes consumption, pose of improving parent education and sup- section.’’. storage, handling, or disposal of tobacco portive services, strengthening the quality of (b) UNLAWFUL ACTS.—Section 2342 of title products; and child care, improving health services, and 18, United States Code, is amended— ‘‘(B) the term ‘tobacco tax administrator’ improving services for children with disabil- (1) by inserting ‘‘or contraband tobacco means the State official authorized to ad- ities. products’’ before the period in subsection (a); minister tobacco tax laws of the State.’’. (b) SUPPLEMENT NOT SUPPLANT.—Amounts and (e) PENALTIES.—Section 2344 of title 18, made available to a State under this section (2) by adding at the end thereof the follow- United States Code, is amended— shall be used to supplement and not supplant ing: (1) by inserting ‘‘or (c)’’ in subsection (b) other Federal, State, and local funds pro- ‘‘(c) It is unlawful for any person— after ‘‘section 2344(b)’’; vided for programs that serve the health and ‘‘(1) knowingly to make any false state- (2) by inserting ‘‘or contraband tobacco developmental needs of children. Amounts ment or representation with respect to the products’’ after ‘‘cigarettes’’ in subsection provided to the State under any of the provi- information required by this chapter to be (c); and sions of law referred to in this section shall kept in the records or reports of any person (3) by adding at the end thereof the follow- not be reduced solely as a result of the avail- who ships, sells, or distributes any quantity ing: ability of funds under this section. of cigarettes in excess of 30,000 in a single ‘‘(d) Any proceeds from the unlawful dis- SEC. 1162. BAN OF SALE OF TOBACCO PRODUCTS transaction, or tobacco products in such tribution of tobacco shall be subject to sei- THROUGH THE USE OF VENDING MA- equivalent quantities as shall be determined zure and forfeiture under section CHINES. by regulation; or 981(a)(1)(C).’’. (a) BAN OF SALE OF TOBACCO PRODUCTS ‘‘(2) knowingly to fail or knowingly to fail (f) REPEAL OF FEDERAL LAW RELATING TO THROUGH THE USE OF VENDING MACHINES.— to maintain distribution records or reports, COLLECTION OF STATE CIGARETTE TAXES.— Effective 12 months after the date of enact- alter or obliterate required markings, or The Act of October 19, 1949, (63 Stat. 884; 15 ment of this Act, it shall be unlawful to sell interfere with any inspection as required U.S.C. 375-378) is hereby repealed. tobacco products through the use of a vend- with respect to such quantity of cigarettes SEC. 1139. FUNDING. ing machine. or other tobacco products. (a) LICENSE FEES.—The Secretary may, in (b) COMPENSATION FOR BANNED VENDING ‘‘(d) It shall be unlawful for any person the Secretary’s sole discretion, set the fees MACHINES.— knowingly to transport cigarettes or other for licenses required by this chapter, in such (1) IN GENERAL.—The owners and operators tobacco products under a false bill of lading amounts as are necessary to recover the of tobacco vending machines shall be reim- or without any bill of lading.’’. costs of administering the provisions of this bursed, subject to the availability of appro- (d) RECORDKEEPING.—Section 2343 of title chapter, including preventing trafficking in priations under subsection (d), for the fair 18, United States Code, is amended— contraband tobacco products. market value of their tobacco vending ma- (1) by striking ‘‘60,000’’ in subsection (a) (b) DISPOSITION OF FEES.—Fees collected by chines. and inserting ‘‘30,000’’; the Secretary under this chapter shall be de- (2) TOBACCO VENDING REIMBURMENT COR- (2) by inserting after ‘‘transaction’’ in sub- posited in an account with the Treasury of PORATION.— section (a) the following: ‘‘or, in the case of the United States that is specially des- (A) CORPORATION.—Reimbursment shall be other tobacco products an equivalent quan- ignated for paying the costs associated with directed through a private, nonprofit cor- tity as determined by regulation,’’ ; the administration or enforcement of this poration established in the District of Co- (3) by striking the last sentence of sub- chapter or any other Federal law relating to lumbia, known as the Tobacco Vending section (a) and inserting the following: the unlawful trafficking of tobacco products. Reimburment Corporation (in this section ‘‘Except as provided in subsection (c) of this The Secretary is authorized and directed to referred to as the ‘‘Corporation’’). Except as section, nothing contained herein shall au- pay out of any funds available in such ac- otherwise provided in this section, the Cor- thorize the Secretary to require reporting count any expenses incurred by the Federal poration is subject to, and has all the powers under this section.’’; Government in administering and enforcing conferred upon a nonprofit corporation by

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00044 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5075 the District of Columbia Nonprofit Corpora- (C) RETURN OF ACCOUNT FUNDS NOT DISTRIB- be delivered to the participant upon enroll- tion Act (D.C. Code section 29-501 et seq.). UTED TO VENDORS.—The Corporation shall be ment and annually thereafter. (B) DUTIES.—The Corporation shall— dissolved on the date that is 4 years after the ‘‘(c) NOTICE.—A group health plan, and a (i) disburse compensation funds to vending date of enactment of this Act. Any funds not health insurance issuer providing health in- companies under this section; dispersed or allocated to claims pending as surance coverage in connection with a group (ii) verify operational machines; and of that date shall be transferred to a public health plan shall provide notice to each par- (iii) maintain complete records of machine anti-smoking trust, or used for such other ticipant and beneficiary under such plan re- verification and accountings of disburse- purposes as Congress may designate. garding the coverage required by this section ments and administration of the compensa- (c) SETTLEMENT OF LEGAL CLAIMS PENDING in accordance with regulations promulgated tion fund established under paragraph (4). AGAINST THE UNITED STATES.—Acceptance of by the Secretary. Such notice shall be in writing and prominently positioned in any (3) MANAGEMENT OF CORPORATION.— a compensation payment from the Corpora- literature or correspondence made available (A) BOARD OF DIRECTORS.—The Corporation tion by a vending machine owner or operator or distributed by the plan or issuer and shall shall be managed by a Board of Directors shall settle all pending and future claims of be transmitted— that— the owner or operator against the United ‘‘(1) in the next mailing made by the plan (i) consists of distinguished Americans States that are based on, or related to, the or issuer to the participant or beneficiary; with experience in finance, public policy, or ban of the use of tobacco vending machines ‘‘(2) as part of any yearly informational fund management; imposed under this section and any other packet sent to the participant or beneficiary; (ii) includes at least 1 member of the laws or regulations that limit the use of to- or United States tobacco vending machine in- bacco vending machines. ‘‘(3) not later than January 1, 1998; dustry; (d) AUTHORIZATION OF APPROPRIATIONS.— There are authorized to be appropriated to whichever is earlier. (iii) shall be paid an annual salary in an ‘‘(d) NO AUTHORIZATION REQUIRED.— amount determined by the President of the the Corporation from funds not otherwise ob- ligated in the Treasury or out of the Na- ‘‘(1) IN GENERAL.—An attending physician Corporation not to exceed $40,000 individ- shall not be required to obtain authorization ually, out of amounts transferred to the Cor- tional Tobacco Trust Fund, such sums as may be necessary to carry out this section. from the plan or issuer for prescribing any poration under paragraph (4)(A); length of stay in connection with a mastec- SEC. 1163. AMENDMENTS TO THE EMPLOYEE RE- (iv) shall appoint a President to manage tomy, a lumpectomy, or a lymph node dis- the day-to-day activities of the Corporation; TIREMENT INCOME SECURITY ACT OF 1974. section for the treatment of breast cancer. (v) shall develop guidelines by which the (a) IN GENERAL.—Subpart B of part 7 of ‘‘(2) PRENOTIFICATION.—Nothing in this sec- President shall direct the Corporation; subtitle B of title I of the Employee Retire- tion shall be construed as preventing a group (vi) shall retain a national accounting firm ment Income Security Act of 1974 (29 U.S.C. health plan from requiring prenotification of to verify the distribution of funds and audit 1185 et seq.) is amended by adding at the end an inpatient stay referred to in this section the compensation fund established under the following new section: if such requirement is consistent with terms paragraph (4); and conditions applicable to other inpatient (vii) shall retain such legal, management, ‘‘SEC. 713. REQUIRED COVERAGE FOR MINIMUM HOSPITAL STAY FOR benefits under the plan, except that the pro- or consulting assistance as is necessary and MASTECTOMIES AND LYMPH NODE vision of such inpatient stay benefits shall reasonable; and DISSECTIONS FOR THE TREATMENT not be contingent upon such notification. (viii) shall periodically report to Congress OF BREAST CANCER AND COVERAGE ‘‘(e) PROHIBITIONS.—A group health plan, regarding the activities of the Corporation. FOR RECONSTRUCTIVE SURGERY and a health insurance issuer offering group (B) DUTIES OF THE PRESIDENT OF THE COR- FOLLOWING MASTECTOMIES. health insurance coverage in connection PORATION.—The President of the Corporation ‘‘(a) INPATIENT CARE.— with a group health plan, may not— shall— ‘‘(1) IN GENERAL.—A group health plan, and ‘‘(1) deny to a patient eligibility, or contin- (i) hire appropriate staff; a health insurance issuer providing health ued eligibility, to enroll or to renew cov- (ii) prepare the report of the Board of Di- insurance coverage in connection with a erage under the terms of the plan, solely for rectors of the Corporation required under group health plan, that provides medical and the purpose of avoiding the requirements of subparagraph (A)(viii); and surgical benefits shall ensure that inpatient this section; (iii) oversee Corporation functions, includ- coverage with respect to the surgical treat- ‘‘(2) provide monetary payments or rebates ing verification of machines, administration ment of breast cancer (including a mastec- to individuals to encourage such individuals and disbursement of funds, maintenance of tomy, lumpectomy, or lymph node dissection to accept less than the minimum protections complete records, operation of appeals proce- for the treatment of breast cancer) is pro- available under this section; dures, and other directed functions. vided for a period of time as is determined by ‘‘(3) penalize or otherwise reduce or limit (4) COMPENSATION FUND.— the attending physician, in his or her profes- the reimbursement of an attending provider (A) RULES FOR DISBURSEMENT OF FUNDS.— sional judgment consistent with generally because such provider provided care to an in- (i) PAYMENTS TO OWNERS AND OPERATORS.— accepted medical standards, in consultation dividual participant or beneficiary in accord- The Corporation shall disburse funds to com- with the patient, and subject to subsection ance with this section; pensate the owners and operators of tobacco (d), to be medically appropriate. ‘‘(4) provide incentives (monetary or other- vending machines in accordance with the fol- ‘‘(2) EXCEPTION.—Nothing in this section wise) to an attending provider to induce such lowing: shall be construed as requiring the provision provider to provide care to an individual par- (I) The fair market value of each tobacco of inpatient coverage if the attending physi- ticipant or beneficiary in a manner incon- vending machine verified by the Corporation cian in consultation with the patient deter- sistent with this section; and President in accordance with subparagraph mine that a shorter period of hospital stay is ‘‘(5) subject to subsection (f)(3), restrict (C), and proven to have been in operation be- medically appropriate. benefits for any portion of a period within a fore August 10, 1995, shall be disbursed to the ‘‘(b) RECONSTRUCTIVE SURGERY.—A group hospital length of stay required under sub- owner of the machine seeking compensation. health plan, and a health insurance issuer section (a) in a manner which is less favor- (II) No compensation shall be made for a providing health insurance coverage in con- able than the benefits provided for any pre- spiral glass front vending machine. nection with a group health plan, that pro- ceding portion of such stay. (ii) OTHER PAYMENTS.—Funds appropriated vides medical and surgical benefits with re- ‘‘(f) RULES OF CONSTRUCTION.— to the Corporation under subsection (d) may spect to a mastectomy shall ensure that, in ‘‘(1) IN GENERAL.—Nothing in this section be used to pay the administrative costs of a case in which a mastectomy patient elects shall be construed to require a patient who is the Corporation that are necessary and prop- breast reconstruction, coverage is provided a participant or beneficiary— er or required by law. The total amount paid for— ‘‘(A) to undergo a mastectomy or lymph by the Corporation for administrative and ‘‘(1) all stages of reconstruction of the node dissection in a hospital; or overhead costs, including accounting fees, breast on which the mastectomy has been ‘‘(B) to stay in the hospital for a fixed pe- legal fees, consultant fees, and associated ad- performed; riod of time following a mastectomy or ministrative costs shall not exceed 1 percent ‘‘(2) surgery and reconstruction of the lymph node dissection. of the total amount appropriated to the Cor- other breast to produce a symmetrical ap- ‘‘(2) LIMITATION.—This section shall not poration under subsection (d). pearance; and apply with respect to any group health plan, (B) VERIFICATION OF VENDING MACHINES.— ‘‘(3) the costs of prostheses and complica- or any group health insurance coverage of- Verification of vending machines shall be tions of mastectomy including fered by a health insurance issuer, which based on copies of official State vending li- lymphedemas; does not provide benefits for hospital lengths censes, company computerized or hand- in the manner determined by the attending of stay in connection with a mastectomy or written sales records, or physical inspection physician and the patient to be appropriate. lymph node dissection for the treatment of by the Corporation President or by an in- Such coverage may be subject to annual breast cancer. spection agent designated by the President. deductibles and coinsurance provisions as ‘‘(3) COST SHARING.—Nothing in this section The Corporation President and the Board of may be deemed appropriate and as are con- shall be construed as preventing a group Directors of the Corporation shall work vig- sistent with those established for other bene- health plan or issuer from imposing orously to prevent and prosecute any fraudu- fits under the plan or coverage. Written no- deductibles, coinsurance, or other cost-shar- lent claims submitted for compensation. tice of the availability of such coverage shall ing in relation to benefits for hospital

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00045 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5076 CONGRESSIONAL RECORD — SENATE May 19, 1998 lengths of stay in connection with a mastec- TITLE XII—ASBESTOS-RELATED or disease, in a State or Federal court, either tomy or lymph node dissection for the treat- TOBACCO CLAIMS alone (in its own name or in the name of the ment of breast cancer under the plan (or SEC. 1201. NATIONAL TOBACCO TRUST FUNDS injured veteran, his or her guardian, per- under health insurance coverage offered in AVAILABLE UNDER FUTURE LEGIS- sonal representative, estate, dependents, or connection with a group health plan), except LATION. survivors) or in conjunction with the injured that such coinsurance or other cost-sharing If the Congress enacts qualifying legisla- or diseased veteran, his or her guardian, per- for any portion of a period within a hospital tion after the date of enactment of this Act sonal representative, estate, dependents, or length of stay required under subsection (a) to provide for the payment of asbestos survivors. may not be greater than such coinsurance or claims, then amounts in the National To- ‘‘(c) CREDITS TO APPROPRIATIONS.—Any cost-sharing for any preceding portion of bacco Trust Fund established by title IV of amount recovered or collected under this such stay. this Act set aside for public health expendi- section for compensation paid, and medical ‘‘(4) LEVEL AND TYPE OF REIMBURSEMENTS.— tures shall be available, as provided by ap- care services provided, by the Secretary Nothing in this section shall be construed to propriation Acts, to make those payments. shall be credited to a revolving fund estab- prevent a group health plan or a health in- For purposes of this section, the term lished in the Treasury of the United States surance issuer offering group health insur- ‘‘qualifying legislation’’ means a public law known as the Department of Veterans Af- ance coverage from negotiating the level and that amends this Act and changes the sub- fairs Tobacco Recovery Fund (hereafter type of reimbursement with a provider for allocations of funds set aside for public called the Fund). The Fund shall be available care provided in accordance with this sec- health expenditures under title IV of this to the Secretary without fiscal year limita- tion. Act to provide for the payment of those tion for purposes of veterans programs, in- claims. cluding administrative costs. The Secretary ‘‘(g) PREEMPTION, RELATION TO STATE TITLE XIII—VETERANS’ BENEFITS may transfer such funds as deemed necessary LAWS.— SEC. 1301. RECOVERY BY SECRETARY OF VETER- to the various Department of Veterans Af- ‘‘(1) IN GENERAL.—Nothing in this section ANS AFFAIRS. fairs appropriations, which shall remain shall be construed to preempt any State law Title 38, United States Code, is amended by available until expended. in effect on the date of enactment of this adding after part VI the following: ‘‘§ 9102. Regulations section with respect to health insurance cov- ‘‘PART VII—RECOVERY OF COSTS FOR ‘‘(a) DETERMINATION AND ESTABLISHMENT OF erage that— TOBACCO-RELATED DISABILITY OR PRESENT VALUE OF COMPENSATION AND MEDI- ‘‘(A) such State law requires such coverage DEATH CAL CARE SERVICES TO BE PAID.—The Sec- to provide for at least a 48-hour hospital ‘‘CHAPTER 91—TORT LIABILITY FOR DISABILITY, retary may prescribe regulations to carry length of stay following a mastectomy per- out this chapter, including regulations with formed for treatment of breast cancer and at INJURY, DISEASE, OR DEATH DUE TO TOBACCO USE respect to the determination and establish- least a 24-hour hospital length of stay follow- ment of the present value of compensation to ing a lymph node dissection of breast cancer; ‘‘Sec. be paid to an injured or diseased veteran or ‘‘(B) requires coverage of at least the cov- ‘‘9101. Recovery by Secretary of Veterans Af- his or her surviving spouse, child, or parent, erage of reconstructive breast surgery other- fairs and medical care services provided to a vet- wise required under this section; or ‘‘9102. Regulations eran. ‘‘9103. Limitation or repeal of other provi- ‘‘(C) requires coverage for breast cancer ‘‘(b) SETTLEMENT, RELEASE AND WAIVER OF sions for recovery of compensa- treatments (including breast reconstruction) CLAIMS.—To the extent prescribed by regula- tion in accordance with scientific evidence-based tions under subsection (a) of this section, the ‘‘9104. Exemption from annual limitation on practices or guidelines recommended by es- Secretary may— damages tablished medical associations. ‘‘(1) compromise, or settle and execute a ‘‘(2) APPLICATION OF SECTION.—With respect ‘‘§ 9101. Recovery by Secretary of Veterans Affairs release of, any claim which the Secretary to a State law— ‘‘(a) CONDITIONS; EXCEPTIONS; PERSONS LIA- has by virtue of the right established by sec- ‘‘(A) described in paragraph (1)(A), the pro- BLE; AMOUNT OF RECOVERY; SUBROGATION.—In tion 9101 of this title; or visions of this section relating to breast re- any case in which the Secretary is author- ‘‘(2) waive any such claim, in whole or in construction shall apply in such State; and ized or required by law to provide compensa- part, for the convenience of the Government, ‘‘(B) described in paragraph (1)(B), the pro- tion and medical care services under this or if he or she determines that collection visions of this section relating to length of title for disability or death from injury or would result in undue hardship upon the vet- stays for surgical breast treatment shall disease attributable in whole or in part to eran who suffered the injury or disease or his apply in such State. the use of tobacco products by a veteran dur- or her surviving spouse, child or parent re- ing the veterans active military, naval, or ‘‘(3) ERISA.—Nothing in this section shall sulting in payment of compensation, or re- be construed to affect or modify the provi- air service under circumstances creating a ceipt of medical care services. tort liability upon a tobacco product manu- sions of section 514 with respect to group ‘‘(c) DAMAGES RECOVERABLE FOR PERSONAL facturer (other than or in addition to the health plans.’’. INJURY UNAFFECTED.—No action taken by the United States) to pay damages therefor, the Secretary in connection with the rights af- (b) CLERICAL AMENDMENT.—The table of Secretary shall have a right to recover (inde- forded under this chapter shall operate to contents in section 1 of the Employee Retire- pendent of the rights of the injured or dis- deny to the injured veteran or his or her sur- eased veteran) from said tobacco product ment Income Security Act of 1974 (29 U.S.C. viving spouse, child or parent the recovery manufacturer the cost of the compensation 1001 note) is amended by inserting after the for that portion of his or her damage not paid or to be paid and the costs of medical item relating to section 712 the following covered hereunder. new item: care services provided, and shall, as to this right, be subrogated to any right or claim ‘‘§ 9103. Limitation or repeal of other provisions for ‘‘Sec. 713. Required coverage for minimum that the injured or diseased veteran, his or recovery of compensation and medical care services hospital stay for mastectomies her guardian, personal representative, es- and lymph node dissections for tate, dependents, or survivors has against ‘‘This chapter does not limit or repeal any the treatment of breast cancer such third person to the extent of the cost of other provision of law providing for recovery and coverage for reconstructive the compensation paid or to be paid and the by the Secretary of the cost of compensation surgery following costs of medical services provided. and medical care services described in sec- mastectomies.’’. ‘‘(b) ENFORCEMENT PROCEDURE; INTERVEN- tion 9101 of this title. TION; JOINDER OF PARTIES; STATE OR FEDERAL ‘‘§ 9104. Exemption from annual limitation on dam- (c) EFFECTIVE DATES.— COURT PROCEEDINGS.—The Secretary may, to ages (1) IN GENERAL.—The amendments made by enforce such right under subsection (a) of ‘‘Any amount recovered under section 9101 this section shall apply with respect to plan this section— of this title for compensation paid or to be years beginning on or after the date of enact- ‘‘(1) intervene or join in any action or pro- paid, and the cost of medical care services ment of this Act. ceeding brought by the injured or diseased provided, by the Secretary for disability or (2) SPECIAL RULE FOR COLLECTIVE BARGAIN- veteran, his or her guardian, personal rep- death from injury or disease attributable in ING AGREEMENTS.—In the case of a group resentative, estate, dependents, or survivors, whole or in part to the use of tobacco prod- health plan maintained pursuant to 1 or against the tobacco product manufacturer ucts by a veteran during the veterans active more collective bargaining agreements be- who is liable for the injury or disease; or military, naval, or air service shall not be tween employee representatives and 1 or ‘‘(2) if such action or proceeding is not subject to the limitation on the annual more employers, any plan amendment made commenced within 6 months after the first amount of damages for which the tobacco pursuant to a collective bargaining agree- day on which compensation is paid, or the product manufacturers may be found liable ment relating to the plan which amends the medical care services are provided, by the as provided in the National Tobacco Policy plan solely to conform to any requirement Secretary in connection with the injury or and Youth Smoking Reduction Act and shall added by this section shall not be treated as disease involved, institute and prosecute not be counted in computing the annual a termination of such collective bargaining legal proceedings against the tobacco prod- amount of damages for purposes of that sec- agreement. uct manufacturer who is liable for the injury tion.’’.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00046 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5077 TITLE XIV—EXCHANGE OF BENEFITS (1) contains the provisions described in records and documents submitted to the De- FOR AGREEMENT TO TAKE ADDI- subsection (b); and pository (or, to the alternative depository, if TIONAL MEASURES TO REDUCE YOUTH (2) is enforceable at law. any, established by the Secretary by regula- SMOKING (b) REQUIRED PROVISIONS.—The protocol tion under title IX of this Act) in the same SEC. 1401. CONFERRAL OF BENEFITS ON PAR- shall include the following provisions: manner and to the same extent as if they TICIPATING TOBACCO PRODUCT (1) The tobacco product manufacturer exe- were records submitted to the National Ar- MANUFACTURERS IN RETURN FOR cuting the protocol will not engage in any chives of the United States required by stat- THEIR ASSUMPTION OF SPECIFIC conduct that was, either on the date of en- ute to be retained indefinitely. OBLIGATIONS. actment of this Act, or at any time after the SEC. 1404. TOBACCO PRODUCT LABELING AND Participating tobacco product manufactur- date of enactment of this Act— ADVERTISING REQUIREMENTS OF ers shall receive the benefits, and assume the (A) prohibited by this Act; PROTOCOL. obligations, set forth in this title. (B) prohibited by any regulation promul- (a) IN GENERAL.—For purposes of section SEC. 1402. PARTICIPATING TOBACCO PRODUCT gated by the Food and Drug Administration 1402, a protocol meets the requirements of MANUFACTURER. that applies to tobacco products; or this section if it requires that— (a) IN GENERAL.—Except as provided in (C) prohibited by any other statute. (1) no tobacco product will be sold or dis- subsection (b), a tobacco product manufac- (2) The tobacco product manufacturer exe- tributed in the United States unless its ad- turer that— cuting the protocol will contract with only vertising and labeling (including the pack- (1) executes a protocol with the Secretary such distributors and retailers who have op- age)— of Health and Human Services that meets erated in compliance with the applicable (A) contain no human image, animal the requirements of sections 1403, 1404, and provisions of Federal, State, or local law re- image, or cartoon character; 1405; and garding the marketing and sale of tobacco (B) are not outdoor advertising, including (2) makes the payment required under sec- products and who agree to comply with ad- advertising in enclosed stadia and on mass tion 402(a)(1), vertising and marketing provisions in para- transit vehicles, and advertising from within is, for purposes of this title, a participating graph (3). a retail establishment that is directed to- tobacco products manufacturer. (3) The tobacco product manufacturer exe- ward or visible from the outside of the estab- (b) DISQUALIFICATION.— cuting the protocol will be bound in market- lishment; (1) INELIGIBILITY.—Notwithstanding sub- ing tobacco products by the following provi- (C) at the time the advertising or labeling section (a), a tobacco product manufacturer sions, whether or not these provisions have is first used are submitted to the Secretary may not become a participating tobacco legal force and effect against manufacturers so that the Secretary may conduct regular products manufacturer if— who are not signatories to the protocol— review of the advertising and labeling; (A) the tobacco product manufacturer or (A) the advertising and marketing provi- (D) comply with any applicable require- any of its principal officers (acting in that sions of part 897 of title 21, Code of Federal ment of the Federal Food, Drug, and Cos- official’s corporate capacity), is convicted Regulations, that were published in the Fed- metic Act, the Federal Cigarette Labeling of— eral Register on August 28, 1996, and which and Advertising Act, and any regulation pro- (i) manufacturing or distributing mis- shall be adopted and incorporated as inde- mulgated under either of those Acts; branded tobacco products in violation of the pendent terms of the protocol; (E) do not appear on the international criminal prohibitions on such misbranding (B) the requirements of section 1404; and computer network of both Federal and non- established under section 301 or 303 of the (C) the requirements of section 1405. Federal interoperable packet switches data Federal Food, Drug, and Cosmetic Act (21 (4) The tobacco product manufacturer exe- networks (the ‘‘Internet’’), unless such ad- U.S.C. 331 or 333); cuting the protocol will make any payments vertising is designed to be inaccessible in or (ii) violating reporting requirements estab- to the National Tobacco Trust Fund in title from the United States to all individuals lished under section 5762(a)(4) of the Internal IV that are required to be made under that under the age of 18 years; Revenue Code of 1986 (26 U.S.C. 5762(a)(4)); title or in any other title of this Act. (F) use only black text on white back- (iii) violating, or aiding and abetting the (5) The tobacco product manufacturer exe- ground, other than— violation of chapter 114 of title 18, United cuting the protocol will be bound by the pro- (i) those locations other than retail stores States Code; or where no person under the age of 18 is per- (iv) violating Federal prohibitions on mail visions of title IV, and any other title of this Act with respect to payments required under mitted or present at any time, if the adver- fraud, wire fraud, or the making of false tising is not visible from outside the estab- statements to Federal officials in the course title IV, without regard to whether those lishment and is affixed to a wall or fixture in of making reports or disclosures required by provisions have legal force and effect against the establishment; and this Act; or manufacturers who have not become signato- (ii) advertisements appearing in any publi- (B) the tobacco product manufacturer, at ries. cation which the tobacco product manufac- the end of the 1-year period beginning on the (6) The tobacco product manufacturer exe- turer, distributor, or retailer demonstrates date on which such manufacturer fails to cuting the protocol will make the industry- to the Secretary is a newspaper, magazine, make a required assessment payment under wide and manufacturer-specific look-back periodical, or other publication whose read- title IV of this Act, has not fully made such assessment payments that may be required ers under the age of 18 years constitute 15 payment. under title II. percent or less of the total readership as (2) DISQUALIFICATION.—A tobacco product (7) The tobacco product manufacturer exe- manufacturer that has become a participat- cuting the protocol will be bound by the pro- measured by competent and reliable survey ing tobacco product manufacturer shall visions of title II that require a manufac- evidence, and that is read by less than 2 mil- cease to be treated as a participating to- turer to make look-back assessments, and lion persons under the age of 18 years as bacco product manufacturer if— any other title of this Act with respect to measured by competent and reliable survey (A) it, or any of its principal officers (act- such assessments, without regard to whether evidence; ing in that official’s corporate capacity) is such terms have legal force and effect (G) for video formats, use only static black convicted of an offense described in para- against manufacturers who have not become text on a white background, and any accom- graph (1)(A); or signatories. panying audio uses only words without (B) it fails to make such a payment within (8) The tobacco product manufacturer exe- music or sound effects; the time period described in paragraph cuting the protocol will, within 180 days (8) for audio formats, use only words with- (1)(B). after the date of enactment of this Act and out music or sound effects; (c) NON-PARTICIPATING TOBACCO MANUFAC- in conjunction with other participating to- (2) if a logo, symbol, motto, selling mes- TURERS.—Any tobacco product manufacturer bacco product manufacturers, establish a Na- sage, recognizable color or pattern of colors, that— tional Tobacco Document Depository in the or any other indicia of brand-name product (1) does not execute a protocol in accord- Washington, D.C. area— identification of the tobacco product is con- ance with subsection (a); (A) that is not affiliated with, or con- tained in a movie, program, or video game (2) fails to make the payment required by trolled by, any tobacco product manufac- for which a direct or indirect payment has section 402(a)(1) (if applicable to that manu- turer; been made to ensure its placement; facturer); (B) the establishment and operational (3) if a direct or indirect payment has been (3) is not eligible, under subsection (b)(1), costs of which are allocated among partici- made by any tobacco product manufacturer, to become a participating tobacco product pating tobacco product manufacturers; and distributor, or retailer to any entity for the manufacturer; or (C) that will make any document submit- purpose of promoting use of the tobacco (4) ceases to be treated as a participating ted to it under title IX of this Act and fi- product through print or film media that ap- tobacco product manufacturer under sub- nally determined not to be subject to attor- peals to individuals under the age of 18 years section (b)(2), ney-client privilege, attorney work product, or through a live performance by an enter- is, for purposes of this title, a non-partici- or trade secret exclusions, available to the tainment artist that appeals to such individ- pating tobacco product manufacturer. public using the Internet or other means uals; SEC. 1403. GENERAL PROVISIONS OF PROTOCOL. within 30 days after receiving the document. (4) if a logo, symbol, motto, selling mes- (a) IN GENERAL.—For purposes of section (c) PROVISIONS APPLICABLE TO DOCU- sage, recognizable color or pattern of colors, 1402, a protocol meets the requirements of MENTS.—The provisions of section 2116(a) and or any other indicia or product identification this section if it— (b) of title 44, United States Code, apply to identical to, similar to, or identifiable with

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00047 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5078 CONGRESSIONAL RECORD — SENATE May 19, 1998 the tobacco product is used for any item for any brand of cigarettes or smokeless to- a civil action involving a tobacco claim (other than a tobacco product) or service bacco, which, when used for its intended pur- against a participating tobacco product marketed, licensed, distributed or sold or pose, can reasonably be anticipated to be manufacturer may elect to settle such action caused to be marketed, licensed, distributed, seen by customers at a location where to- against said tobacco product manufacturer. or sold by the tobacco product manufacturer bacco products are offered for sale. If a State makes such an election to enter or distributor of the tobacco product; and SEC. 1406. APPLICATION OF TITLE. into a settlement or a consent decree, it may (5)(A) except as provided in subparagraph (a) IN GENERAL.—The provisions of this maintain a civil action involving a tobacco (B), if advertising or labeling for such prod- title apply to any civil action involving a to- claim only to the extent necessary to permit uct that is otherwise in accordance with the bacco claim brought pursuant to title VII of continuing court jurisdiction over the settle- requirements of this section bears a tobacco this Act, including any such claim that has ment or consent decree. Nothing herein shall product brand name (alone or in conjunction not reached final judgment or final settle- preclude any State from bringing suit or with any other word) or any other indicia of ment as of the date of enactment of this Act, seeking a court order to enforce the terms of such settlement or decree. tobacco product identification and is dis- only if such claim is brought or maintained (c) STATE OPTION FOR ONE-TIME OPT OUT.— seminated in a medium other than news- against— papers, magazines, periodicals or other pub- Any State that does not make the election (1) a participating tobacco product manu- described in subsection (b) may continue its lications (whether periodic or limited dis- facturer or its predecessors; lawsuit, notwithstanding subsection (a) of tribution), nonpoint-of-sale promotional ma- (2) an importer, distributor, wholesaler, or this section. A State that does not make terial (including direct mail), point-of-sale retailer of tobacco products— such an election shall not be eligible to re- promotional material, or audio or video for- (A) that, after the date of enactment of ceive payments from the trust fund in title mats delivered at a point-of-sale; but this Act, does not import, distribute, or sell IV. (B) notwithstanding subparagraph (A), ad- tobacco products made or sold by a non-par- (d) 30-DAY DELAY.—No settlement or con- vertising or labeling for cigarettes or smoke- ticipating tobacco manufacturer; sent decree entered into under subsection (b) less tobacco may be disseminated in a me- (B) whose business practices with respect may take effect until 30 days after the date dium that is not specified in paragraph (1) if to sales or operations occurring within the of enactment of this Act. the tobacco product manufacturer, distribu- United States, conform to the applicable re- (f) PRESERVATION OF INSURANCE CLAIMS.— tor, or retailer notifies the Secretary not quirements of the protocol; and (1) IN GENERAL.—If all participating to- later than 30 days prior to the use of such (C) that is not itself a non-participating to- bacco product manufacturers fail to make medium, and the notice describes the me- bacco product manufacturer; the payments required by title IV for any dium and the extent to which the advertising (3) a supplier of component or constituent calendar year, then— or labeling may be seen by persons under the parts of tobacco products— (A) beginning on the first day of the next age of 18 years. (A) whose business practices with respect calendar year, subsection (a) does not apply (b) COLOR PRINT ADS ON MAGAZINES.—The to sales or operations occurring within the to any insurance claim (including a direct protocol shall also provide that no tobacco United States, conform to the applicable re- action claim) that is a tobacco claim, re- product may be sold or distributed in the quirements of the protocol; and gardless of when that claim arose; United States if any advertising for that (B) that is not itself a non-participating (B) any statute of limitations or doctrine product on the outside back cover of a maga- tobacco product manufacturer; of laches under applicable law shall be tolled zine appears in any color or combination of (4) a grower of tobacco products, unless for the period— colors. such person is itself a non-participating to- (i) beginning on the date of enactment of SEC. 1405. POINT-OF-SALE REQUIREMENTS. bacco product manufacturer; or this Act; and (a) IN GENERAL.—For purposes of section (5) an insurer of any person described in (ii) ending on the last day of that calendar 1402, a protocol meets the requirements of paragraph (1), (2), (3), or (4) based on, arising year; and this section if it provides that, except as pro- out of, or related to tobacco products manu- (C) an insurance claim (including a direct vided in subsection (b), point-of-sale adver- factured, imported, distributed, or sold (or action claim) that is a tobacco claim and tising of any tobacco product in any retail tobacco grown) by such person (other than that is pending on the date of enactment of establishment is prohibited. an action brought by the insured person), un- this Act shall be preserved. PPLICATION OF TITLE 11 NITED TATES (b) PERMITTED POS LOCATIONS.— less such insurer is itself a non-participating (2) A , U S CODE.—For purposes of this subsection, noth- (1) PLACEMENT.—One point-of-sale adver- tobacco product manufacturer. tisement may be placed in or at each retail (b) EXCEPTIONS.—The provisions of this ing in this Act shall be construed to modify, establishment for its brand or the contracted title shall not apply to any tobacco claim— suspend, or otherwise affect the application house retailer or private label brand of its (1) brought against any person other than of title 11, United States Code, to participat- wholesaler. those described in subsection (a) or to any ing tobacco manufacturers that fail to make such payments. (2) SIZE.—The display area of any such tobacco claim that reached final judgment (3) STATE LAW NOT AFFECTED.—Nothing in point-of-sale advertisement (either individ- or final settlement prior to the date of en- this subsection shall be construed to expand ually or in the aggregate) shall not be larger actment of this Act; or abridge State law. than 576 square inches and shall consist of (2) against an employer under valid work- black letters on white background or an- ers’ compensation laws; SEC. 1408. ADDICTION AND DEPENDENCY CLAIMS; CASTANO CIVIL ACTIONS. other recognized typography. (3) arising under the securities laws of a (a) ADDICTION AND DEPENDENCE CLAIMS (3) PROXIMITY TO CANDY.—Any such point- State or the United State; BARRED.—In any civil action to which this (4) brought by the United States; of-sale advertisement shall not be attached title applies, no addiction claim or depend- (5) brought under this title by a State or a to or located within 2 feet of any display fix- ence claim may be filed or maintained participating tobacco product manufacturer ture on which candy is displayed for sale. against a participating tobacco product to enforce this Act; (c) AUDIO OR VIDEO.—Any audio or video manufacturer. format permitted under regulations promul- (6) asserting damage to the environment (b) CASTANO CIVIL ACTIONS.— gated by the Secretary may be played or from exposures other than environmental (1) The rights and benefits afforded in this shown in, but not distributed, at any loca- smoke or second-hand smoke; or Act, and the various research activities envi- tion where tobacco products are offered for (7) brought against a supplier of a compo- sioned by this Act, are provided in settle- sale. nent or constituent part of a tobacco prod- ment of, and shall constitute the exclusive (d) NO RESTRICTIVE COVENANTS.—No to- uct, if the component or constituent part remedy for the purpose of determining civil bacco product manufacturer or distributor of was sold after the date of enactment of this liability as to those claims asserted in the tobacco products may enter into any ar- Act, and the supplier knew that the tobacco Castano Civil Actions, and all bases for any rangement with a retailer that limits the re- product giving rise to the claim would be such claim under the laws of any State are tailer’s ability to display any form of adver- manufactured in the United States by a non- preempted (including State substantive, pro- tising or promotional material originating participating tobacco product manufacturer. cedural, remedial, and evidentiary provi- with another supplier and permitted by law SEC. 1407. GOVERNMENTAL CLAIMS. sions) and settled. The Castano Civil Actions to be displayed in a retail establishment. (a) IN GENERAL.—Except as provided in shall be dismissed with full reservation of (e) DEFINITIONS.—As used in this section, subsection (b) and (c), no State, political the rights of individual class members to the terms ‘‘point-of-sale advertisement’’ and subdivision of a State, municipal corpora- pursue claims not based on addiction or de- ‘‘point-of-sale advertising’’ mean all printed tion, governmental entity or corporation, In- pendency in civil actions, as defined in sec- or graphical materials (other than a pack, dian tribe, or agency or subdivision thereof, tion 1417(2), in accordance with this Act. For box, carton, or container of any kind in or other entity acting in parens patriae, may purposes of determining application of stat- which cigarettes or smokeless tobacco is of- file or maintain any civil action involving a utes of limitation or repose, individual ac- fered for sale, sold, or otherwise distributed tobacco claim against a participating to- tions filed within one year after the effective to consumers) bearing the brand name (alone bacco product manufacturer. date of this Act by those who were included or in conjunction with any other word), logo, (b) EFFECT ON EXISTING STATE SUITS OF within a Castano Civil Action shall be con- symbol, motto, selling message, or any other SETTLEMENT AGREEMENT OR CONSENT DE- sidered to have been filed as of the date of indicia of product identification identical or CREE.—Within 30 days after the date of en- the Castano Civil Action applicable to said similar to, or identifiable with, those used actment of this Act, any State that has filed individual.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00048 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5079 (2) For purposes of awarding attorneys fees preme Court by writ of certiorari granted claims may be filed or maintained only and expenses for those actions subject to this upon the petition of any party. The applica- against— subsection, the matter at issue shall be sub- bility of subsection (d) shall be stayed during (1) a participating tobacco product manu- mitted to arbitration before one panel of ar- the pendency of any such petition or review. facturer; or bitrators. In any such arbitration, the arbi- (g) CONTINUING EFFECT.—Subsection (d) (2) a surviving entity established by a par- tration panel shall consist of 3 persons, one shall cease to apply to a tobacco product ticipating tobacco product manufacturer. of whom shall be chosen by the attorneys of manufacturer found to have engaged in con- (b) ACTIONS INVOLVING PARTICIPATING AND the Castano Plaintiffs’ Litigation Commit- duct described in subsection (c) upon the NON-PARTICIPATING MANUFACTURERS.—In any tee who were signatories to the Memoran- later of— civil action involving both a tobacco claim dum of Understanding dated June 20, 1997, by (1) a determination by the Secretary under against a participating tobacco product and between tobacco product manufacturers, section 201 after the commencement of ac- manufacturer based in whole or in part upon the Attorneys General, and private attor- tion under subsection (a) that the non-at- conduct occurring prior to the date of enact- neys, one of whom shall be chosen by the tainment percentage for the tobacco product ment of this Act and a claim against 1 or participating tobacco product manufactur- in question is 20 or fewer percentage points; more non-participating tobacco product ers, and one of whom shall be chosen jointly or manufacturers, the court, upon application by those 2 arbitrators. (2) a finding by the court in an action filed of a participating tobacco product manufac- (3) The participating tobacco product man- against the Secretary by the manufacturer, turer, shall require the jury to or shall itself ufacturers shall pay the arbitration award. not earlier than 2 years after the determina- apportion liability as between the partici- tion described in subsection (c) becomes SEC. 1409. SUBSTANTIAL NON-ATTAINMENT OF pating tobacco product manufacturer and REQUIRED REDUCTIONS. final, that the manufacturer has shown by a non-participating tobacco product manufac- (a) ACTION BY SECRETARY.—If the Secretary preponderance of the evidence that, in the turers. determines under title II that the non-at- period since that determination, the manu- SEC. 1412. PAYMENT OF TOBACCO CLAIM SETTLE- tainment percentage for any year is greater facturer— MENTS AND JUDGMENTS. than 20 percentage points for cigarettes or (A) has complied with the provisions of (a) IN GENERAL.—Except as provided in this smokeless tobacco, then the Secretary shall this Act regarding underage tobacco use, of section, any judgment or settlement in any determine, on a brand-by-brand basis, using any rules or regulations promulgated there- civil action to which this subtitle applies data that reflects a 1999 baseline, which to- under, and of any other applicable Federal, shall be subject to the process for payment bacco product manufacturers are responsible State, or local laws, rules, or regulations; of judgments and settlements set forth in within the 2 categories of tobacco products (B) has not taken any action to undermine this section. No participating tobacco prod- for the excess. The Secretary may commence the achievement of the required percentage uct manufacturer shall be obligated to pay a an action under this section against the to- reduction for the tobacco product in ques- judgment or settlement on a tobacco claim bacco product manufacturer or manufactur- tion; and in any civil action to which this title applies ers of the brand or brands of cigarettes or (C) has used its best efforts to attain the except in accordance with this section. This smokeless tobacco products for which the required percentage reduction for the to- section shall not apply to the portion, if any, non-attainment percentage exceeded 20 per- bacco product in question. of a judgment that imposes punitive dam- centage points. A judgment or settlement against the to- ages based on any conduct that— (b) PROCEDURES.—Any action under this bacco product manufacturer that becomes (1) occurs after the date of enactment of section shall be commenced by the Secretary final after a determination or finding de- this Act; and in the United States District Court for the scribed in paragraph (1) or (2) of this sub- (2) is other than the manufacture, develop- District of Columbia within 90 days after section is not subject to subsection (d). An ment, advertising, marketing, or sale of to- publication in the Federal Register of the de- action under paragraph (2) of this subsection bacco products in compliance with this Act termination that the non-attainment per- shall be commenced in the United States and any agreement incident thereto. centage for the tobacco product in question District Court for the District of Columbia, (b) REGISTRATION WITH THE SECRETARY OF is greater than 20 percentage points. Any and shall be heard and determined by a 3- THE TREASURY.— such action shall be heard and determined by judge court under section 2284 of title 28, (1) The Secretary shall maintain a record a 3-judge court under section 2284 of title 28, United States Code. A decision by the court of settlements, judgments, and payments in United States Code. under paragraph (2) of this subsection is re- civil actions to which this title applies. (c) DETERMINATION BY COURT.—In any ac- viewable only by the Supreme Court by writ (2) Any party claiming entitlement to a tion under this section, the court shall deter- of certiorari granted upon the petition of monetary payment under a final judgment or mine whether a tobacco product manufac- any party, and the decision shall be stayed final settlement on a tobacco claim shall turer has shown, by a preponderance of the during the pendency of the petition or re- register such claim with the Secretary by fil- evidence that it— view. A determination or finding described ing a true and correct copy of the final judg- (1) has complied substantially with the in paragraph (1) or (2) of this subsection does ment or final settlement agreement with the provisions of this Act regarding underage to- not limit the Secretary’s authority to bring Secretary and providing a copy of such filing a subsequent action under this section bacco use, of any rules or regulations pro- to all other parties to the judgment or set- against any tobacco product manufacturer mulgated thereunder, or of any Federal or tlement. or the applicability of subsection (d) with re- State laws regarding underage tobacco use; (3) Any participating tobacco product man- spect to any such subsequent action. (2) has not taken any material action to ufacturer making a payment on any final undermine the achievement of the required SEC. 1410. PUBLIC HEALTH EMERGENCY. judgment or final settlement to which this If the Secretary, in consultation with the percentage reduction for the tobacco product section applies shall certify such payment to Commissioner of Food and Drugs, the Sur- in question; and the Secretary by filing a true and correct geon General, the Director of the Center for (3) has used its best efforts to reduce un- copy of the proof of payment and a state- Disease Control or the Director’s delegate, derage tobacco use to a degree at least equal ment of the remaining unpaid portion, if and the Director of the Health and Human any, of such final judgment or final settle- to the required percentage reductions. Services Office of Minority Health deter- (d) REMOVAL OF ANNUAL AGGREGATE PAY- ment with the Secretary and shall provide a mines at any time that a tobacco product MENT LIMITATION.—Except as provided in copy of such filing to all other parties to the manufacturer’s actions or inactions with re- judgment or settlement. subsections (e) and (g), if the court deter- spect to its compliance with the Act are of (c) LIABILITY CAP.— mines that a tobacco product manufacturer such a nature as to create a clear and has failed to make the showing described in (1) IN GENERAL.—The aggregate payments present danger that the manufacturer will made by all participating tobacco product subsection (c) then sections 1411 and 1412 of not attain the targets for underage smoking manufacturers in any calendar year may not this Act do not apply to the enforcement reduction, the Secretary may bring an ac- exceed $8,000,000,000. against, or the payment by, such tobacco tion under section 1409 seeking the imme- (2) IMPLEMENTATION.—The Secretary shall product manufacturer of any judgment or diate suspension of the tobacco product man- initiate a rulemaking within 30 days after settlement that becomes final after that de- ufacturer’s annual limitation cap on civil termination is made. judgments. If the court determines that the the date of enactment of this Act to estab- (e) DEFENSE.—An action under this section Secretary has proved by clear and convinc- lish a mechanism for implementing this sub- shall be dismissed, and subsection (d) shall ing evidence that the subject manufacturer’s section in such a way to ensure the fair and not apply, if the court finds that the Sec- actions or inactions are of such a nature that equitable payment of final judgments or retary’s determination under subsection (a) they present a clear and present danger that final settlements on tobacco claims under was unlawful under subparagraph (A), (B), the manufacturer will not attain the targets this title. Amounts not payable because of (C), or (D) of section 706(2) of title 5, United for underage smoking reduction, the court the application of this subsection, shall be States Code. Any judgments paid under sec- may suspend the subject manufacturer’s an- carried forward and paid in the next year, tion 1412 of this Act prior to a final judgment nual limitation cap on civil judgments. subject to the provisions of this subsection. determining that the Secretary’s determina- SEC. 1411. TOBACCO CLAIMS BROUGHT AGAINST (3) INFLATION ADJUSTMENT.— tion was erroneous shall be fully credited, PARTICIPATING TOBACCO PRODUCT (A) IN GENERAL.—The amount in paragraph with interest, under section 1412 of this Act. MANUFACTURERS. (1) shall be increased annually, beginning (f) REVIEW.—Decisions of the court under (a) PERMISSIBLE DEFENDANTS.—In any civil with the second calendar year beginning this section are reviewable only by the Su- action to which this title applies, tobacco after the date of enactment of this Act, by

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00049 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5080 CONGRESSIONAL RECORD — SENATE May 19, 1998

the greater of 3 percent or the annual in- (2) OPERATION.—Not later than 30 days (b) NONSEVERABILITY.—If a court of com- crease in the CPI. after the date on which all members of an ar- petent jurisdiction enters a final decision (B) CPI.—For purposes of subparagraph bitration panel are appointed under para- substantially limiting or impairing the es- (A), the CPI for any calendar year is the av- graph (1), the panel shall establish the proce- sential elements of title XIV, specifically the erage of the Consumer Price Index for all- dures under which the panel will operate requirements of sections 1404 and 1405, then urban consumers published by the Depart- which shall include— the provisions of section 1412 are null and ment of Labor. (A) a requirement that any finding by the void and of no effect. (C) ROUNDING.—If any increase determined arbitration panel must be in writing and sup- SEC. 1415. CRIMINAL LAWS NOT AFFECTED. under subparagraph (A) is not a multiple of ported by written reasons; Nothing in this title shall be construed to $1,000, the increase shall be rounded to the (B) procedures for the exchanging of exhib- limit the criminal liability of tobacco prod- nearest multiple of $1,000. its and witness lists by the various claim- uct manufacturers, retailers, or distributors (d) INJUNCTIVE RELIEF.—A participating to- ants for awards; or their directors, officers, employees, suc- bacco product manufacturer may commence (C) to the maximum extent practicable, re- cessors, or assigns. an action to enjoin any State court proceed- quirements that proceedings before the panel SEC. 1416. CONGRESS RESERVES THE RIGHT TO ing to enforce or execute any judgment or be based on affidavits rather than live testi- ENACT LAWS IN THE FUTURE. settlement where payment has not been au- mony; and The right to alter, amend, or repeal any thorized under this section. Such an action (D) a requirement that all claims be sub- provision of this Act is hereby reserved to shall arise under the laws of the United mitted to an arbitration panel not later than the Congress in accordance with the provi- States and may be commenced in the district 3 months after the date of this Act and a de- sions of Article I of the Constitution of the court of the United States for the district in termination made by the panel with respect United States and more than 200 years of his- which the State court proceeding is pending. to such claims not later than 7 months after tory. (e) JOINT AND SEVERAL LIABILITY.—All par- such date of enactment. SEC. 1417. DEFINITIONS. ticipating tobacco product manufacturers (3) RIGHT TO PETITION.—Any individual at- In this title: shall be jointly and severally liable for, and torney or group of attorneys involved in liti- (1) TERMS DEFINED IN TITLE VII.—Any term shall enter into an agreement to apportion gation affected by this Act shall have the used in this title that is defined in title VII among them, any amounts payable under right to petition an arbitration panel for at- has the meaning given to it in title VII. judgments and settlements governed by this torneys’ fees and expenses. (2) ADDITIONAL DEFINITIONS.— section arising in whole or in part from con- (4) CRITERIA.—In making any award under (A) ADDICTION CLAIM; DEPENDENCE CLAIM.— duct occurring prior to the date of enact- this section, an arbitration panel shall con- The term ‘‘addiction claim’’ or ‘‘dependence ment of this Act. sider the following criteria: claim’’ refers only to any cause of action to (f) BANKRUPTCY OF PARTICIPATING MANU- (A) The time and labor required by the the extent that the prayer for relief seeks a FACTURER.—No participating tobacco prod- claimant. cessation program, or other public health uct manufacturer shall cease operations (B) The novelty and difficulty of the ques- program that is to be available to members without establishing a surviving entity tions involved in the action for which the of the general public and is designed to re- against which a tobacco claim may be claimant is making a claim. duce or eliminate the users’ addiction to, or brought. Any obligation , interest, or debt of (C) The skill requisite to perform the legal dependence on, tobacco products, and as used a participating, tobacco product manufac- service involved properly. herein is brought by those who claim the turer arising under such liability apportion- (D) The preclusion of other employment by need for nicotine reduction assistance. Nei- ment agreement shall be given priority and the attorney due to acceptance of the action ther addiction or dependence claims include shall not be rejected, avoided, discharged, or involved. claims related to or involving manifestation otherwise modified or diminished in a pro- (E) Whether the fee is fixed or a percent- of illness or tobacco-related diseases. ceeding, under title 11, United States Code, age. (B) COMPENSATORY DAMAGES.—The term or in any liquidation, reorganization, receiv- (F) Time limitations imposed by the client ‘‘compensatory damages’’ refers to those ership, or other insolvency proceeding under or the circumstances. damages necessary to reimburse an injured State law. A trustee or receiver in any pro- (G) The amount involved and the results party, and includes actual, general, and spe- ceeding under title 11, United States Code, or obtained. cial damages. in liquidation, reorganization, receivership, (H) The experience, reputation, and ability (C) PROTOCOL.—The term ‘‘protocol’’ or other insolvency proceeding under State of the attorneys involved. means the agreement to be entered into by law, may avoid any transfer of an interest of (I) The undesirability of the action. the Secretary of Health and Human Services the participating tobacco product manufac- (J) Such other factors as justice may re- with a participating tobacco product manu- turer, or any obligation incurred by such quire. facturers under this title. manufacturer, that was made or incurred on (5) APPEAL AND ENFORCEMENT.—The find- (D) PUNITIVE DAMAGES.—The term ‘‘puni- or within 2 years before the date of the filing ings of an arbitration panel shall be final, tive damages’’ means damages in addition to of a bankruptcy petition, if such manufac- binding, nonappealable, and payable within compensatory damages having the character turer made such transfer or incurred such 30 days after the date on which the finding is of punishment or penalty. obligation to hinder or defeat in any fashion made public, except that if an award is to be (E) SECRETARY.—The term ‘‘Secretary’’ the payment of any obligation, interest, or paid in installments, the first installment means the Secretary of the Treasury, except debt of the manufacturer arising under the shall be payable within such 30 day period where the context otherwise requires. liability apportionment agreement. Any and succeeding installments shall be paid an- TITLE XV—TOBACCO TRANSITION property vesting in the participating tobacco nually thereafter. SEC. 1501. SHORT TITLE. product manufacturer following such a pro- (b) VALIDITY AND ENFORCEABILITY OF PRI- This title may be cited as the ‘‘Tobacco ceeding shall be subject to all claims and in- VATE AGREEMENTS.—Notwithstanding any Transition Act’’. terest of creditors arising under the liability other provision of this Act, nothing in this SEC. 1502. PURPOSES. apportionment agreement. section shall be construed to abrogate or re- The purposes of this title are— (f) LIMITATION ON STATE COURTS.—No court strict in any way the rights of any parties to (1) to authorize the use of binding con- of any State, Tribe, or political subdivision mediate, negotiate, or settle any fee or ex- tracts between the United States and to- of a State may take any action to inhibit the pense disputes or issues to which this section bacco quota owners and tobacco producers to effective operation of subsection (c). applies, or to enter into private agreements compensate them for the termination of Fed- SEC. 1413. ATTORNEYS’ FEES AND EXPENSES. with respect to the allocation or division of eral programs that support the production of (a) ARBITRATION PANEL.— fees among the attorneys party to any such tobacco in the United States; (1) RIGHT TO ESTABLISH .—For the purpose agreement. (2) to make available to States funds for of awarding of attorneys’ fees and expenses (c) OFFSET FOR AMOUNTS ALREADY PAID.— economic assistance initiatives in counties relating to litigation affected by, or legal In making a determination under this sec- of States that are dependent on the produc- services that, in whole or in part, resulted in tion with regard to a dispute between a tion of tobacco; and or created a model for programs in, this Act, State that pursued independent civil action (3) to terminate Federal programs that and with respect to which litigation or serv- against tobacco product manufacturers and support the production of tobacco in the ices the attorney involved is unable to agree its attorney, the arbitration panel shall take United States. with the plaintiff who employed that attor- into account any amounts already paid by SEC. 1503. DEFINITIONS. ney with respect to any dispute that may the State under the agreement in dispute. In this title: arise between them regarding the fee agree- SEC. 1414. EFFECT OF COURT DECISIONS. (1) ASSOCIATION.—The term ‘‘association’’ ment, the matter at issue shall be submitted (a) SEVERABILITY.—If any provision of ti- means a producer-owned cooperative mar- to arbitration. In any such arbitration, the tles I through XIII, or the application there- keting association that has entered into a arbitration panel shall consist of 3 persons, of to any person, manufacturer or cir- loan agreement with the Commodity Credit one of whom shall be chosen by the plaintiff, cumstance, is held invalid, the remainder of Corporation to make price support available one of whom shall be chosen by the attorney, the provisions of those titles, and the appli- to producers. and one of whom shall be chosen jointly by cation of such provision to other persons or (2) BUYOUT PAYMENT.—The term ‘‘buyout those 2 arbitrators. circumstances, shall not be affected thereby. payment’’ means a payment made to a quota

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5081

owner under section 1514 for each of the 1999 (c) USE.—Funds in the Trust Fund shall be (b) TRANSITION PAYMENTS LIMITED TO through 2001 marketing years. available for making— LEASED QUOTA.—A producer shall be eligible (3) CONTRACT.—The term ‘‘contract’’ or (1) buyout payments; for transition payments only for the portion ‘‘tobacco transition contract’’ means a con- (2) transition payments; and of the production of the producer that is sub- tract entered into under section 1512. (3) rural economic assistance block grants ject to quota that is leased (as defined in sec- (4) GOVERNOR.—The term ‘‘Governor’’ under section 1521. tion 1503(5) of this Act) during the 3 crop means the chief executive officer of a State. (d) TRANSFER FROM NATIONAL TOBACCO SET- years described in subsection (a)(1). (5) LEASE.—The term ‘‘lease’’ means— TLEMENT TRUST FUND.—The Secretary of the (c) COMPENSATION FOR LOST REVENUE.—The (A) the rental of quota on either a cash Treasury shall transfer from the National payments shall constitute compensation for rent or crop share basis; Tobacco Settlement Trust Fund to the Trust the lost revenue incurred by a tobacco pro- (B) the rental of farmland to produce to- Fund such amounts as the Secretary of Agri- ducer for a kind of tobacco. bacco under a farm marketing quota; or culture determines are necessary to carry (d) PRODUCTION HISTORY; PRODUCTION.— (C) the lease and transfer of quota for the out this title. (1) PRODUCTION HISTORY.—The Secretary marketing of tobacco produced on the farm (e) TERMINATION.—The Trust Fund shall shall base a transition payment made to a of a lessor. terminate effective September 30, 2003. producer on the average quantity of tobacco (6) MARKETING YEAR.—The term ‘‘market- SEC. 1512. OFFER AND TERMS OF TOBACCO subject to a marketing quota that is pro- ing year’’ means— TRANSITION CONTRACTS. duced by the producer for each of the 1995 (A) in the case of Flue-cured tobacco, the (a) OFFER.—The Secretary shall offer to through 1997 crops. period beginning July 1 and ending the fol- enter into a tobacco transition contract with (2) PRODUCTION.—The producer shall have lowing June 30; and each owner and producer. the burden of demonstrating to the Sec- (B) in the case of each other kind of to- (b) TERMS.— retary the production of tobacco for each of bacco, the period beginning October 1 and (1) OWNERS.—In exchange for a payment the 1995 through 1997 crops. ending the following September 30. made under section 1514, an owner shall (e) PAYMENT CALCULATION.—Under this sec- (7) OWNER.—The term ‘‘owner’’ means a agree to relinquish the quota owned by the tion, the total amount of the transition pay- person that, at the time of entering into a owner. ment made to a producer shall be determined tobacco transition contract, owns quota pro- (2) PRODUCERS.—In exchange for a payment by multiplying— vided by the Secretary. made under section 1515, a producer shall (1) $4.00; by (8) PRICE SUPPORT.—The term ‘‘price sup- agree to relinquish the value of the quota (2) the average quantity of the kind of to- port’’ means a nonrecourse loan provided by leased by the producer. bacco produced by the producer for each of the Commodity Credit Corporation through (c) RIGHT TO GROW TOBACCO.—Each owner the 1995 through 1997 crops. an association for a kind of tobacco. or producer that enters into a contract shall CHAPTER 2—RURAL ECONOMIC (9) PRODUCER.—The term ‘‘producer’’ have the right to continue the production of ASSISTANCE BLOCK GRANTS means a person that for each of the 1995 tobacco for each of the 1999 and subsequent SEC. 1521. RURAL ECONOMIC ASSISTANCE BLOCK through 1997 crops of tobacco (as determined crops of tobacco. GRANTS. by the Secretary) that were subject to SEC. 1513. ELEMENTS OF CONTRACTS. (a) IN GENERAL.—From funds transferred quota— (a) DEADLINES FOR CONTRACTING.— from the Trust Fund, the Secretary shall use (A) leased quota or farmland; (1) COMMENCEMENT.—To the maximum ex- $200,000,000 for each of fiscal years 1999 (B) shared in the risk of producing a crop tent practicable, the Secretary shall com- through 2003 to provide block grants to to- of tobacco; and mence entering into contracts under this bacco-growing States to assist areas of such (C) marketed the tobacco subject to quota. chapter not later than 90 days after the date a State that are economically dependent on (10) QUOTA.—The term ‘‘quota’’ means the of enactment of this Act. the production of tobacco. right to market tobacco under a basic mar- (2) DEADLINE.—The Secretary may not (b) PAYMENTS BY SECRETARY TO TOBACCO- keting quota or acreage allotment allotted enter into a contract under this chapter GROWING STATES.— to a person under the Agricultural Adjust- after June 30, 1999. (1) IN GENERAL.—The Secretary shall use ment Act of 1938 (7 U.S.C. 1281 et seq.). (b) DURATION OF CONTRACT.—The term of a the amount available for a fiscal year under (11) SECRETARY.—The term ‘‘Secretary’’ contract shall— subsection (a) to make block grant payments means the Secretary of Agriculture. (1) begin on the date that is the beginning to the Governors of tobacco-growing States. (12) STATE.—The term ‘‘State’’ means each of the 1999 marketing year for a kind of to- (2) AMOUNT.—The amount of a block grant of the several States of the United States, bacco; and paid to a tobacco-growing State shall be the District of Columbia, the Commonwealth (2) terminate on the date that is the end of based on, as determined by the Secretary— of Puerto Rico, and any other territory or the 2001 marketing year for the kind of to- (A) the number of counties in the State in possession of the United States. bacco. which tobacco production is a significant (13) TOBACCO.—The term ‘‘tobacco’’ means (c) TIME FOR PAYMENT.—A buyout payment part of the county’s economy; and any kind of tobacco for which— or transition payment shall be made not (B) the level of economic dependence of the (A) a marketing quota is in effect; later than the date that is the beginning of counties on tobacco production. (B) a marketing quota is not disapproved the marketing year for a kind of tobacco for (c) GRANTS BY STATES TO ASSIST TOBACCO- by producers; or each year of the term of a tobacco transition GROWING AREAS.— (C) price support is available. contract of an owner or producer. (1) IN GENERAL.—A Governor of a tobacco- (14) TOBACCO PRODUCT MANUFACTURER.—The SEC. 1514. BUYOUT PAYMENTS TO OWNERS. growing State shall use the amount of the term ‘‘tobacco product manufacturer’’ has (a) IN GENERAL.—The Secretary shall make block grant to the State under subsection (b) the meaning given the term ‘‘manufacturer buyout payments in 3 equal installments, 1 to make grants to counties or other public or of tobacco products’’ in section 5702 of the installment for each of the 1999 through 2001 private entities in the State to assist areas Internal Revenue Code of 1986. marketing years for each kind of tobacco in- that are dependent on the production of to- (15) TRANSITION PAYMENT.—The term volved, to an owner that owns quota at the bacco, as determined by the Governor. ‘‘transition payment’’ means a payment time of entering into a tobacco transition (2) AMOUNT.—The amount of a grant paid made to a producer under section 1515 for contract. to a county or other entity to assist an area each of the 1999 through 2001 marketing (b) COMPENSATION FOR LOST VALUE.—The shall be based on— years. payment shall constitute compensation for (A) the ratio of gross tobacco sales receipts (16) TRUST FUND.—The term ‘‘Trust Fund’’ the lost value to the owner of the quota. in the area to the total farm income in the means the Tobacco Community Revitaliza- (c) PAYMENT CALCULATION.—Under this sec- area; and tion Trust Fund established by section 1511. tion, the total amount of the buyout pay- (B) the ratio of all tobacco related receipts (17) UNITED STATES.—The term ‘‘United ment made to an owner shall be determined in the area to the total income in the area. States’’, when used in a geographical sense, by multiplying— (3) USE OF GRANTS.—A county or other en- means all of the States. (1) $8.00; by tity that receives a grant under this sub- Subtitle A—Tobacco Production Transition (2) the average annual quantity of quota section may use the grant in a manner deter- CHAPTER 1—TOBACCO TRANSITION owned by the owner during the 1995 through mined appropriate by the county or entity CONTRACTS 1997 crop years. (with the approval of the State) to assist producers and other persons that are eco- SEC. 1511. TOBACCO COMMUNITY REVITALIZA- SEC. 1515. TRANSITION PAYMENTS TO PRODUC- TION TRUST FUND. ERS. nomically dependent on the production of to- (a) ESTABLISHMENT.—There is established (a) IN GENERAL.—The Secretary shall make bacco, including use for— in the Treasury of the United States a trust transition payments in 3 equal installments, (A) on-farm diversification, alternatives to fund to be known as the ‘‘Tobacco Commu- 1 installment for each of the 1999 through the production of tobacco, and risk manage- nity Revitalization Trust Fund’’, consisting 2001 marketing years for each kind of to- ment; of amounts paid into the Trust Fund under bacco produced, to a producer that— (B) off-farm activities such as education, subsection (d). (1) produced the kind of tobacco for each of retraining, and development of non-tobacco (b) ADMINISTRATION.—The Trust Fund shall the 1995 through 1997 crops; and related jobs; and be administered by the Secretary of the (2) entered into a tobacco transition con- (C) assistance to tobacco warehouse owners Treasury. tract. or operators.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5082 CONGRESSIONAL RECORD — SENATE May 19, 1998

(d) TERMINATION OF AUTHORITY.—The au- ‘‘(A) a marketing quota is in effect; (f) TRANSITION PROVISIONS.— thority provided by this section terminates ‘‘(B) a marketing quota is not disapproved (1) LIABILITY.—The amendments made by September 30, 2003. by producers; or this section shall not affect the liability of Subtitle B—Tobacco Price Support and ‘‘(C) price support is available;’’; any person under any provision of law as in Production Adjustment Programs (3) in subsection (c)(1), by striking ‘‘pro- effect before the effective date of this sec- CHAPTER 1—TOBACCO PRICE SUPPORT ducers, purchasers,’’ and inserting ‘‘pur- tion. PROGRAM chasers’’; and (2) TOBACCO INVENTORIES.—The Secretary (4) in subsection (d)— shall issue regulations that require the or- SEC. 1531. INTERIM REFORM OF TOBACCO PRICE SUPPORT PROGRAM. (A) in paragraph (1)— derly sale of tobacco inventories held by as- (i) by striking subparagraph (A); (a) PRICE SUPPORT RATES.—Section 106(f) sociations. of the Agricultural Act of 1949 (7 U.S.C. (ii) by redesignating subparagraphs (B) and (3) NO NET COST TOBACCO FUND.— 1445(f)) is amended by adding at the end the (C) as subparagraphs (A) and (B), respec- (A) IN GENERAL.—Section 106A of the Agri- following: tively; and cultural Act of 1949 (7 U.S.C. 1445–1) is ‘‘(9) TOBACCO PRICE SUPPORT RATES.—Not- (iii) in subparagraph (A) (as redesignated), amended by adding at the end the following: withstanding any other provision of this sub- by striking ‘‘also’’; ‘‘(i) ASSESSMENTS TO COVER NET LOSSES section, the price support rate for each kind (B) in paragraph (2)— AFTER 2001 MARKETING YEAR.— of tobacco for which quotas were approved (i) in subparagraph (A)— ‘‘(1) IN GENERAL.—Effective the day after for the 1998 crop shall be reduced by— (I) in the first sentence, by striking ‘‘the the last day of the 2001 marketing year for ‘‘(A) for the 1999 crop, 25 percent from the amount of the marketing assessment’’ the kind of tobacco involved, purchasers and 1998 support rate for a kind of tobacco; through ‘‘association’s area and’’; and importers of tobacco shall pay no net cost ‘‘(B) for the 2000 crop, 10 percent from the (II) by striking the second sentence; assessments as determined by an associa- 1999 support rate for a kind of tobacco; and (ii) in subparagraph (C)(ii)— tion, with the approval of Secretary, and as ‘‘(C) for the 2001 crop, 10 percent from the (I) by striking ‘‘sum of the’’; provided in this subsection. (II) by striking ‘‘producer and’’; and 2000 support rate for a kind of tobacco.’’. ‘‘(2) BASIS.—The amount of the assessment (b) NO NET COST TOBACCO FUND.—Section (III) by striking ‘‘producers and’’; and shall be based on any unpaid past losses, and 106A of the Agricultural Act of 1949 (7 U.S.C. (C) in paragraph (3)— anticipated future losses, from sales of to- (i) by striking ‘‘(3)(A)’’ and all that follows 1445–1) is amended— bacco inventory. through the end of subparagraph (B) and in- (1) by striking ‘‘quota tobacco’’ each place ‘‘(3) COLLECTION.—Assessments shall be serting the following: it appears and inserting ‘‘tobacco’’; collected as provided in subsection (d)(2). ‘‘(3) COLLECTION OF ASSESSMENTS.— (2) in subsection (a), by striking paragraph ‘‘(4) PENALTY FOR FAILURE TO PAY ASSESS- ‘‘(A) PURCHASERS.—Except as provided in (7) and inserting the following: MENT.—Penalties for failure to pay assess- subparagraphs (B) and (C), an assessment to ‘‘(7) the term ‘tobacco’ means any kind of ments shall be calculated as provided in sub- be paid by a purchaser under paragraph (1) tobacco for which— section (h). shall be collected from the person who ac- ‘‘(A) a marketing quota is in effect; ‘‘(5) DURATION OF ASSESSMENTS.—Assess- quired the tobacco involved from the pro- ‘‘(B) a marketing quota is not disapproved ments required under this subsection shall ducer. by producers; or be required until— ‘‘(C) price support is available.’’; ‘‘(B) WAREHOUSEMAN OR AGENT.—If tobacco of the kind for which an account is estab- ‘‘(A) all tobacco price support loans, in- (3) in the second sentence of subsection (c), cluding interest, are repaid to the Commod- by striking ‘‘contributed by producer-mem- lished is marketed by a producer through a warehouseman or agent, the purchaser as- ity Credit Corporation; and bers or’’; ‘‘(B) the Commodity Credit Corporation (4) in subsection (d)— sessment shall be collected from the ware- houseman or agent, who may add an amount has been reimbursed for all net losses sus- (A) in paragraph (1)— tained as a result of price support loans pro- (i) in subparagraph (A)— equal to the purchaser assessment to the price paid by the purchaser.’’; and vided through the 2001 crop of the kind of to- (I) by striking clause (i); bacco involved.’’. (II) by redesignating clauses (ii) and (iii) as (ii) in subparagraph (C), by striking ‘‘both (B) CONFORMING AMENDMENTS.—Section clauses (i) and (ii), respectively; and the producer and’’. 106A of the Agricultural Act of 1949 (7 U.S.C. (III) in clause (ii) (as so redesignated), by (d) ADMINISTRATIVE COSTS.—Section 1109 of 1445–1) (as amended by section 1531(b)) is striking subclause (II) and inserting the fol- the Agriculture and Food Act of 1981 (Public amended— lowing: Law 97–98; 7 U.S.C. 1445 note) is repealed. (i) in subsection (a)— ‘‘(II) the amount of per pound purchaser (e) CROPS.—This section and the amend- ments made by this section shall apply with (I) in paragraph (5), by inserting ‘‘and’’ assessments that are payable by domestic respect to the 1999 through 2001 marketing after the semicolon; purchasers of Flue-cured and Burley tobacco years. (II) in paragraph (6), by striking ‘‘; and’’ under clause (i); and’’; and and inserting a period; and (ii) in subparagraph (B)— SEC. 1532. TERMINATION OF TOBACCO PRICE SUPPORT PROGRAM. (I) by striking ‘‘that, upon’’ and all that (III) by striking paragraph (7); (a) PARITY PRICE SUPPORT.—Section 101 of follows through ‘‘In making’’ and inserting (ii) by striking subsection (b); the Agricultural Act of 1949 (7 U.S.C. 1441) is ‘‘in making’’; and (iii) in subsection (d)— amended— (II) in the last sentence, by striking ‘‘con- (I) in the last sentence of paragraph (1), by (1) in the first sentence of subsection (a), tributions and’’; striking ‘‘the amounts which the Corpora- by striking ‘‘tobacco (except as otherwise (B) in paragraph (2)— tion will lend to the association under such provided herein), corn,’’ and inserting (i) by striking ‘‘producer contribution or’’; agreements and’’; ‘‘corn’’; and (II) by striking paragraph (2) and inserting (2) by striking subsections (c), (g), (h), and (ii) by striking subparagraphs (A) and (B) the following: (i); and inserting the following: ‘‘(2) collect the assessment due under para- (3) in subsection (d)(3)— ‘‘(A) from the person that acquired the to- graph (1) by directly notifying the purchaser (A) by striking ‘‘, except tobacco,’’; and bacco involved from the producer; or importer of the amount of the assessment ‘‘(B) if the tobacco involved is marketed by (B) by striking ‘‘and no price support shall and how payment should be made;’’; and a producer through a warehouseman or be made available for any crop of tobacco for (III) in paragraph (3), by striking ‘‘: Pro- agent, from the warehouseman or agent, who which marketing quotas have been dis- vided, That,’’ and all that follows and insert- may add an amount equal to the purchaser approved by producers;’’; and ing ‘‘, except that, notwithstanding any assessment to the price paid by the pur- (4) by redesignating subsections (d) and (e) other provision of law, the association may chaser;’’; as subsections (c) and (d), respectively. use amounts in the Fund (including interest (b) TERMINATION OF TOBACCO PRICE SUP- (C) in paragraph (3), by striking ‘‘, and use and other earnings) for the purposes of re- PORT.—Sections 106 of the Agricultural Act of’’ and all that follows through ‘‘of the ducing the association’s outstanding indebt- of 1949 (7 U.S.C. 1445) is amended by striking edness to the Corporation associated with Fund’’; and subsections (a) through (f). (D) in paragraph (7), by striking ‘‘contribu- 1982 and subsequent crops of tobacco;’’; (c) DEFINITION OF BASIC AGRICULTURAL (iv) in subsection (e)— tions and’’; and COMMODITY.—Section 408(c) of the Agricul- (I) in the first sentence, by striking ‘‘or (5) in subsection (h), by striking ‘‘contribu- tural Act of 1949 (7 U.S.C. 1428(c)) is amended provide’’ and all that follows through ‘‘the tion or’’ each place it appears. by striking ‘‘tobacco,’’. association’’; and (c) NO NET COST TOBACCO ACCOUNT.—Sec- (d) REVIEW OF BURLEY TOBACCO IMPORTS.— tion 106B of the Agricultural Act of 1949 (7 Section 3 of Public Law 98–59 (7 U.S.C. 625) is (II) by striking the second sentence; and U.S.C. 1445–2) is amended— repealed. (v) in subsection (h), by striking (1) by striking ‘‘quota tobacco’’ each place (e) POWERS OF COMMODITY CREDIT CORPORA- ‘‘(h)(1)(A)’’ and all that follows through the it appears and inserting ‘‘tobacco’’; TION.—Section 5 of the Commodity Credit end of subparagraph (B) and inserting the (2) in subsection (a), by striking paragraph Corporation Charter Act (15 U.S.C. 714c) is following: (5) and inserting the following: amended by inserting ‘‘(other than tobacco)’’ ‘‘(h) FAILURE TO PAY CONTRIBUTIONS OR AS- ‘‘(5) the term ‘tobacco’ means any kind of after ‘‘agricultural commodities’’ each place SESSMENTS.— tobacco for which— it appears. ‘‘(1) IN GENERAL.—

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5083

‘‘(A) PURCHASERS.—Each purchaser that (II) by striking paragraph (3) and inserting (5) in paragraph (11)(B), by striking ‘‘and fails to pay an assessment as required by the following: tobacco’’; subsection (d)(2) at such time and in such ‘‘(3) COLLECTION.—Any assessment to be (6) in paragraph (12), by striking ‘‘to- manner as may be prescribed by the Sec- paid by a purchaser or importer under para- bacco,’’; retary, shall be liable, in addition to any graph (1) shall be collected from the pur- (7) in paragraph (14)— amount due, to a marketing penalty at a chaser or importer by the Secretary.’’; and (A) in subparagraph (A), by striking ‘‘(A)’’; rate equal to 75 percent of the average mar- (iv) in subsection (j), by striking ‘‘(j)(1)(A)’’ and ket price (calculated to the nearest whole and all that follows through the end of sub- (B) by striking subparagraphs (B), (C), and cent) for the kind of tobacco involved for the paragraph (B) and inserting the following: (D); 2001 marketing year on the quantity of to- ‘‘(j) FAILURE TO PAY CONTRIBUTIONS OR AS- (8) by striking paragraph (15); bacco as to which the failure occurs. SESSMENTS.— (9) in paragraph (16)— ‘‘(B) IMPORTERS.—Each importer that fails ‘‘(1) IN GENERAL.— (A) by striking subparagraph (B); and to pay an assessment as required by sub- ‘‘(A) PURCHASERS.—Each purchaser that (B) by redesignating subparagraph (C) as section (d)(2) at such time and in such man- fails to pay to the Secretary an assessment subparagraph (B); and ner as may be prescribed by the Secretary, as required by subsection (d)(3) at such time (10) by redesignating paragraphs (16) and shall be liable, in addition to any amount and in such manner as may be prescribed by (17) as paragraphs (15) and (16), respectively. due, for a marketing penalty at a rate equal the Secretary, shall be liable, in addition to (c) PARITY PAYMENTS.—Section 303 of the to 75 percent of the average market price any amount due, to a marketing penalty at Agricultural Adjustment Act of 1938 (7 U.S.C. (calculated to the nearest whole cent) for the a rate equal to 75 percent of the average 1303) is amended in the first sentence by respective kind of tobacco for the 2001 mar- market price (calculated to the nearest striking ‘‘rice, or tobacco,’’ and inserting ‘‘or keting year on the quantity of tobacco as to whole cent) for the kind of tobacco involved rice,’’. for the 2001 marketing year on the quantity which the failure occurs.’’. (d) MARKETING QUOTAS.—Part I of subtitle (4) NO NET COST TOBACCO ACCOUNT.— of tobacco as to which the failure occurs. B of title III of the Agricultural Adjustment (A) IN GENERAL.—Section 106B of the Agri- ‘‘(B) IMPORTERS.—Each importer that fails Act of 1938 (7 U.S.C. 1311 et seq.) is repealed. to pay to the Secretary an assessment as re- cultural Act of 1949 (7 U.S.C. 1445–2) is (e) ADMINISTRATIVE PROVISIONS.—Section quired by subsection (d)(3) at such time and amended by adding at the end the following: 361 of the Agricultural Adjustment Act of in such manner as may be prescribed by the ‘‘(k) ASSESSMENTS TO COVER NET LOSSES 1938 (7 U.S.C. 1361) is amended by striking Secretary, shall be liable, in addition to any AFTER 2001 MARKETING YEAR.— ‘‘tobacco,’’. ‘‘(1) IN GENERAL.—Subject to subsection amount due, for a marketing penalty at a (f) ADJUSTMENT OF QUOTAS.—Section 371 of rate equal to 75 percent of the average mar- (b), effective the day after the last day of the the Agricultural Adjustment Act of 1938 (7 ket price (calculated to the nearest whole 2001 marketing year for the kind of tobacco U.S.C. 1371) is amended— cent) for the respective kind of tobacco for involved, purchasers and importers of to- (1) in the first sentence of subsection (a), the 2001 marketing year on the quantity of bacco shall pay no net cost assessments as by striking ‘‘peanuts, or tobacco’’ and insert- tobacco as to which the failure occurs.’’. determined by an association, with the ap- ing ‘‘or peanuts’’; and (g) NET GAINS HELD BY COMMODITY CREDIT proval of Secretary, and as provided in this (2) in the first sentence of subsection (b), subsection. CORPORATION.—The Secretary shall ensure that the net gains in the No Net Cost To- by striking ‘‘peanuts or tobacco’’ and insert- ‘‘(2) BASIS.—The amount of the assessment ing ‘‘or peanuts’’. shall be based on any unpaid past losses, and bacco Account of the Commodity Credit Cor- poration as of September 30, 2002, equal or (g) REPORTS AND RECORDS.—Section 373 of anticipated future losses, from sales of to- the Agricultural Adjustment Act of 1938 (7 bacco inventory. exceed the balance in the Account that ex- isted on September 30, 1998. U.S.C. 1373) is amended— ‘‘(3) COLLECTION.—Assessments shall be (1) by striking ‘‘peanuts, or tobacco’’ each collected as provided in subsection (d)(3). (h) CROPS.— (1) IN GENERAL.—Except as provided in place it appears in subsections (a) and (b) ‘‘(4) PENALTY FOR FAILURE TO PAY ASSESS- paragraph (2), this section and the amend- and inserting ‘‘or peanuts’’; and MENT.—Penalties for failure to pay assess- ments made by this section shall apply the (2) in subsection (a)— ments shall be calculated as provided in sub- (A) in the first sentence, by striking ‘‘all section (j). day after the last day of the 2001 marketing year for the kind of tobacco involved. persons engaged in the business of redrying, ‘‘(5) DURATION OF ASSESSMENTS.—Assess- prizing, or stemming tobacco for produc- ments required under this subsection shall (2) NET LOSSES TO THE COMMODITY CREDIT CORPORATION.—Sections 106A and 106B of the ers,’’; and be required until— (B) in the last sentence, by striking ‘‘$500;’’ ‘‘(A) all tobacco price support loans, in- Agricultural Act of 1949 (7 U.S.C. 1445–1, 1445– 2) are repealed effective on the date on which and all that follows through the period at cluding interest, are repaid to the Commod- the end of the sentence and inserting ‘‘$500.’’. ity Credit Corporation; and the Secretary— (h) REGULATIONS.—Section 375(a) of the Ag- ‘‘(B) the Commodity Credit Corporation (A) determines that— ricultural Adjustment Act of 1938 (7 U.S.C. has been reimbursed for all net losses sus- (i) all tobacco price support loans, plus in- 1375(a)) is amended by striking ‘‘peanuts, or tained as a result of price support loans pro- terest, have been repaid by associations; and tobacco’’ and inserting ‘‘or peanuts’’. vided through the 2001 crop of the kind of to- (ii) the Commodity Credit Corporation has (i) EMINENT DOMAIN.—Section 378 of the bacco involved.’’. been reimbursed for all net losses sustained as a result of price support loans provided Agricultural Adjustment Act of 1938 (7 U.S.C. (B) CONFORMING AMENDMENTS.—Section 1378) is amended— 106B of the Agricultural Act of 1949 (7 U.S.C. through the 2001 crop of the kind of tobacco (1) in the first sentence of subsection (c), 1445–2) (as amended by section 1531(c)) is involved; and by striking ‘‘cotton, tobacco, and peanuts’’ amended— (B) publishes a notice of the determination and inserting ‘‘cotton and peanuts’’; and (i) in subsection (a)— in the Federal Register. (2) by striking subsections (d), (e), and (f). (I) by striking paragraph (5); and CHAPTER 2—TOBACCO PRODUCTION (j) BURLEY TOBACCO FARM RECONSTITU- (II) by redesignating paragraphs (6) ADJUSTMENT PROGRAMS TION.—Section 379 of the Agricultural Ad- through (8) as paragraphs (5) through (7), re- SEC. 1541. TERMINATION OF TOBACCO PRODUC- justment Act of 1938 (7 U.S.C. 1379) is amend- spectively; TION ADJUSTMENT PROGRAMS. ed— (ii) by striking subsection (b) and inserting (a) DECLARATION OF POLICY.—Section 2 of (1) in subsection (a)— the following: the Agricultural Adjustment Act of 1938 (7 (A) by striking ‘‘(a)’’; and ‘‘(b) ESTABLISHMENT.—Notwithstanding U.S.C. 1282) is amended by striking ‘‘to- section 106A, the Secretary shall, on the re- bacco,’’. (B) in paragraph (6), by striking ‘‘, but this quest of any association, and may, if the (b) DEFINITIONS.—Section 301(b) of the Ag- clause (6) shall not be applicable in the case Secretary determines, after consultation ricultural Adjustment Act of 1938 (7 U.S.C. of burley tobacco’’; and with the association, that the accumulation 1301(b)) is amended— (2) by striking subsections (b) and (c). of the No Net Cost Tobacco Fund for the as- (1) in paragraph (3)— (k) ACREAGE-POUNDAGE QUOTAS.—Section 4 sociation under section 106A is, and is likely (A) by striking subparagraph (C); and of the Act entitled ‘‘An Act to amend the Ag- to remain, inadequate to reimburse the Cor- (B) by redesignating subparagraph (D) as ricultural Adjustment Act of 1938, as amend- poration for net losses that the Corporation subparagraph (C); ed, to provide for acreage-poundage market- sustains under its loan agreement with the (2) in paragraph (6)(A), by striking ‘‘to- ing quotas for tobacco, to amend the tobacco association, establish and maintain in ac- bacco,’’; price support provisions of the Agricultural cordance with this section a No Net Cost To- (3) in paragraph (7), by striking the follow- Act of 1949, as amended, and for other pur- bacco Account for the association in lieu of ing: poses’’, approved April 16, 1965 (Public Law the No Net Cost Tobacco Fund established ‘‘tobacco (flue-cured), July 1—June 30; 89–12; 7 U.S.C. 1314c note), is repealed. within the association under section 106A.’’; ‘‘tobacco (other than flue-cured), October (l) BURLEY TOBACCO ACREAGE ALLOT- (iii) in subsection (d)— 1–September 30;’’; MENTS.—The Act entitled ‘‘An Act relating (I) in the third sentence of paragraph (4) in paragraph (10)— to burley tobacco farm acreage allotments (2)(A), by striking ‘‘the amounts which the (A) by striking subparagraph (B); and under the Agricultural Adjustment Act of Corporation will lend to such association (B) by redesignating subparagraph (C) as 1938, as amended’’, approved July 12, 1952 (7 under such agreements and’’; and subparagraph (B); U.S.C. 1315), is repealed.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5084 CONGRESSIONAL RECORD — SENATE May 19, 1998 (m) TRANSFER OF ALLOTMENTS.—Section (1) the assessment rate for the kind of to- ments. All amendments which are in 703 of the Food and Agriculture Act of 1965 (7 bacco purchased; by the first degree will be open, obviously, U.S.C. 1316) is repealed. (2) the number of pounds of the kind of to- to second-degree amendments. As the (n) ADVANCE RECOURSE LOANS.—Section bacco purchased. Faircloth amendment would be open to 13(a)(2)(B) of the Food Security Improve- (h) PENALTIES.—If any purchaser fails to ments Act of 1986 (7 U.S.C. 1433c–1(a)(2)(B)) is remit the assessment required by this sec- second-degree amendment, so will the amended by striking ‘‘tobacco and’’. tion or fails to comply with such require- next Democrat amendment be open to (o) TOBACCO FIELD MEASUREMENT.—Section ments for recordkeeping as are established second-degree amendments. 1112 of the Omnibus Budget Reconciliation by the Secretary to carry out this section, I expect shortly the Senator from Act of 1987 (Public Law 100–203) is amended the purchaser shall be liable to the Secretary Kentucky to come to speak for ap- by striking subsection (c). for a civil penalty in an amount determined proximately half an hour. The Senator (p) LIABILITY.—The amendments made by by the Secretary that does not exceed the from North Carolina is agreeable. I this section shall not affect the liability of amount obtained by multiplying— yield the floor. any person under any provision of law as in (1) the quantity of the kind of tobacco in- Mr. KERRY addressed the Chair. effect before the effective date under sub- volved in the violation; by The PRESIDING OFFICER. The Sen- section (q). (2) the assessment rate for the kind of to- ator from Massachusetts is recognized. (q) CROPS.—This section and the amend- bacco. Mr. KERRY. Mr. President, if I could ments made by this section shall apply with (i) ENFORCEMENT.—The Secretary may en- respect to the 1999 and subsequent crops of force this section in the courts of the United simply clarify that, also I think we the kind of tobacco involved. States. would put it in the context of the Subtitle C—Funding SEC. 1553. COMMODITY CREDIT CORPORATION. unanimous consent request that first recognition be for the half hour to the SEC. 1551. TRUST FUND. The Secretary may use the funds, facili- (a) REQUEST.—The Secretary of Agri- ties, and authorities of the Commodity Cred- Senator from Kentucky. But if I could culture shall request the Secretary of the it Corporation to carry out this title and the clarify it, we would request that the Treasury to transfer from the Trust Fund amendments made by this title. second-degree amendments would be amounts authorized under sections 1514, 1515, Subtitle D—Miscellaneous the right of the Democrat leader, and, and 1521 to the account of the Commodity SEC. 1561. LIABILITY FOR OBLIGATIONS OF TO- likewise, the first-degree amendment Credit Corporation. BACCO PRODUCT MANUFACTURERS. placed on the Democrat side would be (b) TRANSFER.—On receipt of such a re- A person that owns or produces tobacco, or subject to a second-degree amendment quest, the Secretary of the Treasury shall owns or operates a tobacco warehouse, shall by the Republican side. With that un- transfer amounts requested under subsection not be liable for— derstanding, we ask unanimous con- (a). (1) any action or legal penalty or obliga- (c) USE.—The Secretary of Agriculture sent the Senate accept that as the pro- tion of a manufacturer of a tobacco product cedure for the first two amendments. shall use the amounts transferred under sub- under this Act; or section (b) to carry out the activities de- (2) any financial penalty or payment owed Mr. MCCAIN. Will the Senator yield? scribed in subsection (a). by a manufacturer of a tobacco product I am afraid at this time we just have to (d) TERMINATION OF AUTHORITY.—The au- under this Act. have an understanding because it has thority provided under this section shall ex- SEC. 1562. FDA REGULATION OF TOBACCO PRO- not been cleared on either side. I am pire on September 30, 2003. DUCTION AND FARMS. confident that understanding would be SEC. 1552. TOBACCO RELATED ADMINISTRATIVE Notwithstanding any other provision of honored. But I don’t think we can lock COSTS AND SUBSIDIES. law, an officer, employee, or agent of the it in as a unanimous consent agree- (a) IN GENERAL.—The Secretary shall pro- Food and Drug Administration shall not— vide, by regulation, for a nonrefundable mar- ment at this time. I would like to have (1) regulate the production of a crop of to- the Senator from Kentucky, if it is keting assessment paid by purchasers of to- bacco by a person; or bacco during each of the 1999 through 2024 (2) enter the farm of a person that owns or agreeable to my friends from South fiscal years. produces tobacco without the consent of the Carolina and Massachusetts, to have (b) BASIS.—The assessment shall be— person. the Senator from Kentucky recognized (1) on a per pound basis, as determined by Mr. MCCAIN. Mr. President, I suggest for his statement. the Secretary; and I yield the floor. the absence of a quorum. (2) based on estimated annual costs to the Mr. FORD addressed the Chair. Federal Government of tobacco related ad- The PRESIDING OFFICER (Mr. ROB- The PRESIDING OFFICER. The Sen- ministrative costs and subsidies in accord- ERTS). The clerk will call the roll. ator from Kentucky is recognized. ance with this section. The assistant legislative clerk pro- Mr. FORD. Mr. President, we are (c) AGGREGATE ASSESSMENT AMOUNT.—For ceeded to call the roll. each fiscal year, the Secretary shall esti- going into probably what can be called Mr. MCCAIN. Mr. President, I ask mate the costs to the Federal Government a frustrating period. It is difficult for relating to tobacco that involve— unanimous consent that the order for me to in 30 minutes say what is in my (1) agricultural extension; the quorum call be rescinded. heart and on my mind as it relates to (2) handling, sampling, grading, inspecting, The PRESIDING OFFICER. Without the tobacco legislation. and weighing; objection, it is so ordered. The PRESIDING OFFICER. If the (3) administering and providing subsidies Mr. MCCAIN addressed the Chair. Senator will suspend, we need order in for crop insurance; and The PRESIDING OFFICER. The dis- the Senate please. If Senators and staff (4) administering the tobacco price support tinguished Senator from Arizona is rec- will take their audible conversations to program for each of the 1999 through 2001 fis- ognized. cal years. the cloakroom, it would be appre- Mr. MCCAIN. Mr. President, I have (d) ASSESSMENT AMOUNT FOR EACH KIND OF ciated. The Senator from Kentucky is TOBACCO.—For each fiscal year, the Sec- reached an understanding with the recognized. retary shall determine the amount of the Senator from South Carolina and the Mr. FORD. I thank the Chair for his total costs determined under subsection (c) Senator from Kentucky and the Sen- courtesies. He is a gentleman and a that benefit each kind of tobacco. ator from Massachusetts that the Sen- scholar. (e) ESTIMATED MARKETINGS.—For each fis- ator from Kentucky would like to Mr. President, today the Senate be- cal year, the Secretary shall estimate the speak for half an hour. Senator FAIR- gins what I hope is a productive debate pounds marketed during the fiscal year for CLOTH will be recognized for his first- each kind of tobacco. on S. 1415, the National Tobacco Policy degree amendment following the state- (f) ASSESSMENT RATE.—For each kind of to- and Youth Smoking Reduction Act. We bacco for each fiscal year, the Secretary ment by the Senator from Kentucky. have come a long way in this debate. shall calculate an assessment rate per pound Following that it is our understanding But in the 15 weeks left in this session by dividing— there will either be a second-degree we also have a long way to go. (1) the amount determined under sub- amendment to the Faircloth amend- Nothing surprises me anymore con- section (d); by ment, or, if not, the Faircloth amend- cerning tobacco legislation. Yesterday (2) the estimated pounds marketed as esti- ment will be disposed of, and following afternoon they asked me if I was sur- mated under (e). that it was our understanding that the prised. I said no. I was angry. So, (g) REMITTANCE BY PURCHASER.—For each fiscal year, each purchaser of tobacco shall other side of the aisle would have the therefore, I wasn’t surprised. Last remit to the Commodity Credit Corporation next amendment, and go back and year, I would not have believed the to- a nonrefundable marketing assessment equal forth as is the tradition of this body, bacco manufacturers, attorneys gen- to the amount obtained by multiplying— from one side to the other with amend- eral, and public health groups would

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5085 have agreed on a comprehensive settle- fathers, their grandfathers, and in third the size of the average U.S. farm. ment. But on June 20, 1997, a national some cases their great grandfathers on So we’re talking about small, family settlement was announced. I would not the same farm and on the same ground. farm operations. have believed that the Senate Com- Just like most Americans, tobacco In Kentucky, tobacco is produced in merce Committee could have reported farmers also don’t want to see young 119 of 120 counties. Two-thirds of the a bill of this magnitude, and to do so in people smoke. The poll in my State farmers in my state produce tobacco. only one day of markup. But on April was something over 90 percent that op- They average about 4 acres of tobacco. 1st, under the leadership of the Senator posed youth smoking. But they are It is less than 3 percent of their crop- from Arizona, the Commerce Commit- having a hard time figuring out what land, yet it brings about 25 percent of tee did just that by a vote of 19 to 1. some of the difficulties in Congress their farm income. Most tobacco farm- Last Thursday, the Finance Committee have to do with youth smoking. To ers in my state have family incomes of modified the bill again in only one day. most tobacco farmers much of the dis- less than $35,000—including non-farm But part of the explanation for the cussion in Congress sounds like an at- income. Make no mistake, we’re talk- success of the chairman of the Com- tempt to punish an industry with the ing about middle to low-income fami- merce Committee was his ability to get youth smoking issue finishing a dis- lies. Senators to wait to debate many tant second. Tobacco farmers are being The tobacco settlement will have a issues. A lot of them were left to the lumped in with tobacco manufacturers. significant negative impact on the Senate floor. This bill raises hundreds A recent Congressional Quarterly ar- family farms in my state, and this im- of billions of dollars. Estimates of the ticle about the plight of tobacco farm- pact must be considered in any tobacco Commerce Committee product range ers quoted one farmer from King, NC, legislation. from $516 billion to almost $1 trillion. about the tobacco debate in Congress. Tobacco farmers started meeting last This is a tremendous amount of money He said, and I quote: summer to deal with the impact of the settlement. They came up with three by any standard. The Finance Commit- They are making us feel like drug dealers. tee increased the taxes raised by this That just burns me up. They put us in the to- general principles for tobacco settle- bill even further. bacco industry when all we are doing is ment legislation: (1) the legislation But not surprisingly, there is no growing a legal crop. must preserve the federal tobacco pro- shortage of ideas around here on what Tobacco farmers have been on a roll- gram; (2) fair compensation should be to do with the money. Some want to er coaster ride for several years. But provided to tobacco farmers should use it to offset tax cuts. Some want to that ride has been almost out of con- their ability to produce the crop be di- expand existing spending programs. trol for the last year. Among the great- minished; and (3) the impact on to- Some want to fund new spending pro- est disappointments was the June 20th bacco farming communities should be grams. The one thing nearly all of settlement agreement itself. That taken into account. Mr. President, farms in my State and these ideas have in common is that agreement, which threatens to throw other States are valued with the quota. they have nothing to do with youth the lives of tobacco farmers into tur- If the quota under the so-called Lugar- smoking. We have taken our eye off the moil, did not provide one thin dime for McConnell bill is implemented, from $2 problem of youth smoking. It is how tobacco farmers. Zero. Zip. The tobacco companies, attorneys billion to $4 billion in reduction of can we raise more money and spend it farmland value will occur in the fourth general, and public health groups who on other programs. year because we lose the quota. What Somehow, almost miraculously, the were huddled in hotel rooms putting does that do? It has a rippling effect on two committee chairmen were able to the deal together did not even invite local taxes, the tax base, the income get members of their committee to tobacco farmers to the table. They for the cities and the counties, our defer the debate on how to spend all of would not let them in the door. It is school systems, to say nothing of the tough to find words to express how in- this money. But that debate cannot be business community of these small sulting I found this. deferred any longer, Mr. President—not communities. if the Senate is actually going to pass The June 20th tobacco settlement in- After countless meetings among to- a bill. With the confusion that was ex- cluded money for event sponsors who bacco farming groups from states like pressed here yesterday, there are some would lose tobacco sponsorship under Kentucky, North Carolina, South Caro- who are beginning to wonder if a bill the settlement. The settlement had lina, Tennessee, Virginia, and Georgia, can be passed. money for teams or entries in such an outline of a tobacco farmer proposal How all of this money is used goes to events. They had money for NASCAR came together. We worked hard to iron the very heart of the bill, and until we races. They had money for rodeos. out details and put ‘‘meat on the answer these fundamental questions, it Somehow, they found $750 million for bones.’’ is impossible to say with any certainty these people. But there was nothing for I daresay, Mr. President, there are what kind of bill we have. Mr. Presi- tobacco farmers. not many Senators who have sat on the dent, there is an equally important Mr. President, tobacco farmers in my porch of many grocery stores and issue that goes to the heart of the bill state were at first shocked by news of talked to farmers. There are not many as well. It will define what this legisla- the settlement. Then they became Senators in this body who have sat in tion is really all about. There is no angry. I encouraged them not to get the kitchen and had a cup of coffee more important issue to me personally mad, but to get to work. I urged them with farm families, talking about what than how we treat tobacco farmers and to come up with a plan for themselves, is about to happen to them and their rural and tobacco-growing commu- to help tobacco farmers and tobacco future. I think I understand and feel nities under this bill. growing communities deal with the what they say because I grew up on a In many ways, tobacco farmers and settlement. And Mr. President, tobacco farm and I raised tobacco until I was tobacco-growing communities are the farmers did go to work. I pledged to drafted into World War II. innocent victims in this whole debate. them last summer that I would do ev- Finally, last October, I introduced They have not been sued. They have erything in my power to represent the Long-term Economic Assistance not been accused of withholding docu- their interests, and to see to it that a for Farmers Act, or one we refer to as ments or information. They have not proposal drafted by tobacco farmers the LEAF Act. It was cosponsored by 9 been accused of manipulating the to- would be included in any legislation tobacco state Senators. bacco grown on their farms. considered by Congress. I’m here today But our work didn’t stop there. We Mr. President, tobacco farmers and to keep my word. continued to work through the winter tobacco-growing communities are Mr. President, there are 124,000 to- and spring to improve the proposal. Fi- scared about what is going on in Wash- bacco farm families producing the crop nally, after nine months of work, a ington, DC. They are bewildered at the across 20 states in this country. That consensus proposal was developed to almost daily barrage of hostile com- represents 6 percent of the farms in the assist tobacco farmers and their com- ments coming from various sources in United States. Most of these farms are munities. this city. Most tobacco farmers are en- in the southeast. On average, these to- We have provided direct payments to gaged in the same livelihood as their bacco farms are 126 acres—about one- farmers in the event their ability to

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5086 CONGRESSIONAL RECORD — SENATE May 19, 1998 produce declines. This is the very heart Mr. President, I’m grateful to Sen- place. That is why people don’t like us. of the LEAF Act. It is designed to ator MCCAIN for his leadership in in- There are 98 percent of a group saying, make farmers whole as the value of cluding the LEAF Act as Title Ten of ‘‘This is what we would like to have their assets decline. S.1415. It’s an essential part of the and what we would like to keep.’’ And We also made changes to make to- overall picture. It must be included in what do we say up here? ‘‘You don’t bacco companies pay for any possible any tobacco settlement legislation. know what you are talking about. This administrative provisions associated The LEAF Act has broad support is what is good for you. This is what is with the tobacco program. Mr. Presi- among tobacco farming groups. It’s good for you. So you don’t know what dent, I have been working for 16 years supported by the public health commu- you are talking about, and we are to eliminate any opportunity for crit- nity. President Clinton, who visited going to take care of it for you.’’ ics to claim that there is a tobacco Kentucky in April, announced that the So, 98 percent of those down there ‘‘subsidy.’’ In 1982, we started requiring LEAF Act satisfies his fifth principle who voted, it doesn’t make any dif- tobacco farmers to pay for the tobacco for tobacco legislation of providing as- ference what you do. This is typical loan program. I worked closely with sistance to tobacco farmers and to- Washington, DC, arrogance. I have al- Senator HELMS to achieve these bacco growing communities. ready discussed how my small, average changes. Senators THURMOND, HOL- But let me provide fair warning, Mr. tobacco farmer—there are 124,000 of LINGS, and WARNER were all in the Sen- President. I will keep my pledge to my those, but there are only 4 large manu- ate at that time, and will remember tobacco farmers. I will do everything in facturers, controlling over 98 percent of these changes. my power to oppose attempts to under- the cigarette market. This disparity in In 1986, we required tobacco compa- mine the LEAF Act, or attack the fed- bargaining power could not be greater. nies to share in these costs. The to- eral tobacco program, or threaten the Unless tobacco farmers have some bacco loan program has operated at no ability of tobacco farmers in my state mechanism to bargain together jointly, net cost to taxpayers since that time. to deal with the impact of the national they are helpless; they are helpless in Still, there were criticisms. Salaries at tobacco settlement. dealing with the large tobacco manu- USDA, crop insurance, and extension How many farmers out there have 98 facturers. The tobacco program pro- services all are partially attributable percent of their product controlled by vides that mechanism, and it must not to tobacco. Mr. President, under the four companies? There is no leverage. be tampered with as a part of this leg- LEAF Act, all of these costs—and any The tobacco farmers have no leverage islation. other conceivable USDA cost associ- if we don’t have a tobacco program. We The focus of the bill should be, must ated with tobacco—will now be paid by have four companies that handle 98 be, youth smoking. I voted for smoke- tobacco companies. There will no percent of all the product, so if we free schools. I have voted, tried every longer be any basis, directly or indi- don’t have that, we are at their mercy. way I can, to stop youth smoking. So I rectly, to allege that there is a tobacco I don’t know how many farmers have no apologies to make, because I subsidy. All possible taxpayer costs around here have heard of ‘‘farm buy.’’ want to stop it. Over 90 percent of the have been eliminated under the LEAF They just go directly to the farm and people polled in my State want to stop Act. buy it from big farmers, and the small it. But the focus of this bill must be on And you know something, Mr. Presi- farmer is gone, has no leverage whatso- youth smoking, which is to focus on dent. Our tobacco farmers make an ever. And, as we see, people attack the what will work to reduce youth smok- extra payment, a deficit reduction pay- farm program. A proposal has been ing. ment that is taken out of their check made which is nothing short of a thinly Youth smoking rates peaked in the before they get it from the warehouse veiled bribe to offer larger tobacco 1970s. Starting in about 1979, youth and it goes to the general fund. Last farmers a promised lump-sum payment smoking rates began to decline and year, it was almost $32 million. And in exchange for eliminating the to- continued to decline through the 1980s. not another farmer in this country— bacco program. We found out yesterday Then, about 1991 or 1992, they started maybe the peanuts—makes a payment it is not a lump sum payment, it is 3 to climb again. No one knows exactly out of their check called a budget re- years. And if you look at the bill that why. And guess what; youth alcohol duction payment. It was over $32 mil- was introduced, that is before the Sen- use started to go up at the same time, lion last year. ate, 50 percent of all the money goes to binge drinking started to go up, mari- Mr. President, we have wanted to the States and 40 percent of that juana use started to go back up. In look beyond the tobacco farmer and money will be taken up by the McCon- fact, youth usage of marijuana has the tobacco program. The LEAF Act nell-Lugar bill. That leaves 10 percent been increasing faster than cigarette attempts to take a broader view and for everybody else. But in the bill it smoking during the 1990s. So far, Con- deal with the entire impact on tobacco says only 16 percent of the money can gress has failed to look broadly at all communities and the next generation. go to the farmer. these trends. Surely this is more than Why is it so important? We had to Where are we on this—40 percent we a coincidence. When we look at the have some financial underwriting of would have to take in order to pay for causes of youth smoking increases, we the 13 colonies—and that was tobacco it, yet the bill says only 16 percent? We should also look at drinking and illegal through Virginia. They underwrote the are going to try to correct that if we drug use. debt of the colonies. It has been around can, because it is talking out of both The American people seem to have a a long time. ‘‘Mr. Jones came in to buy sides of the mouth, and you can’t do better sense of that than Congress. his spring planting and paid for it with that around here—only for awhile. They seem to realize that teenage be- some of the finest tobacco I have This is a classic example of Washing- havioral changes are more complex seen’’—a quote from history. That was ton telling people, ‘‘We are smarter than just tobacco, and the youth to- before we became colonies. The pages than you.’’ But it simply won’t work. bacco rates have been influenced by of Virginia history are splattered with Tobacco farmers want to keep a supply more than just slick advertising by the tobacco juice. Just think about it. And management program. For 3 years, tobacco industry. In fact, one recent they want to do away with it over- every 3 years, farmers vote on whether poll verified these opinions. A Tarrance night. It cannot be done. to keep the tobacco program. Earlier Group/KRC research poll conducted We’ve included economic develop- this year, farmers of flue-cured and earlier this month asked people why ment assistance. We’ve included grants burley tobacco, the two largest types they thought youth smoking rates had for higher education for the children of of tobacco, voted overwhelmingly to been going up. Mr. President, 58 per- tobacco farm families. And we have in- keep the program. In a referendum con- cent said the influence of peers and cluded assistance for displaced workers ducted by USDA for both types of to- friends was the main reason; 18 percent who have jobs in warehousing, process- bacco, almost 98 percent of tobacco said the parents’ example was the main ing, and manufacturing tobacco. We farmers voted to keep the program. reason; 12 percent said Hollywood, tele- understand things are changing for to- But now some in Congress want to tell vision, and popular culture were the bacco and we want to prepare these farmers that, ‘‘We are smarter than main reasons; and only 6 percent said communities. you.’’ That is what is wrong with this the tobacco industry and advertising

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5087 were the main reasons—only 6 percent. hope can be corrected or improved dur- grams than it was about reducing So we have a lot more to learn about ing the debate. youth smoking. We have a chance to this issue, and I think, really, how lit- First, we have continuing concerns change some views with the way this tle we do know should have an influ- about the potential for a black market. debate on the bill is conducted and the ence on how broad we make this legis- We say we can stop that, but Mexico final product. lation. sells cigarettes that I smoke for 90 I have two overriding tests for the I have serious concerns about the size cents to $1 a pack at retail. Indian res- final product produced on this floor: of the legislation. These concerns ex- ervations are selling cigarettes at a re- No. 1, does the bill adequately com- isted even before the Finance Commit- tail of around $1.20. If these new esti- pensate and protect farmers and farm- tee took its action to increase the size mates are correct, we are creating a ing communities? And No. 2, is the bill of the bill. First, the bill as reported by disparity in price of up to $4 a pack. more about reducing youth smoking or the Commerce Committee appears to This is well above the level experts say punishing an industry? contain language never considered by will cause black market activity. In I look forward to the debate and the the committee on April 1. I am specifi- fact, we already have a considerable opportunity to find the answers to cally referring to the annual payments amount of smuggling in this country many of these problems. I say to the made by the industry. In the McCain because of the large State excise tax Chair and to my colleagues in the Sen- committee amendment adopted by the increases in recent years. A disparity ate that I am going to do whatever I can to be sure that the farming com- committee, the annual payment start- in price of only 50 to 60 cents per pack munity is protected in this bill. With ing in the sixth year was set at $21 bil- has already proven to be enough to cre- the procedure that occurred late yes- lion, plus an adjustment up for infla- ate black market incentives, and they terday, to undo all of the work for 10 tion and down for volume. However, in are going on right now within our own the reported bill, the sixth-year pay- long months that many of us have put country. Canada fussed at us, you into this legislation, to undo it in a ment is the ‘‘adjusted applicable base know, when they raised their prices. amount,’’ which it defined as the motion is a serious thing. I think it Now we have two borders. rubbed some of us a little bit the wrong amount of the preceding year, which We raised prices that come from Can- appears to be $23.6 billion. I do not way, as we say. There will be some ada and from Mexico, the Caribbean scorched-Earth approach as we develop know where the language came from. I and wherever. These fellows do pretty do not recall it ever being approved by this. If we can work out something, I good out there. They are called cartels. would love to do it. But I will not work the committee. However, it appears We have had a hard time stopping they add $2.6 billion per year for 20 out anything that does not compensate drugs from coming in. What are we and take care of the farmers who I am years to the cost of the bill. In other going to do when cigarettes are added words, it appears that $52 billion has here to represent, and I intend to rep- to that? When you go down to the skid, resent them as long as I can stand and been added to the cost of the bill. I ‘‘You want some cheap cigarettes or I hope we can clear up some of these as long as people will listen to me. I have another menu on the other side yield the floor. things. over here starting with marijuana.’’ It Mr. President, OMB proceeded to Mr. GRAMM addressed the Chair. is interesting how we are going to pro- The PRESIDING OFFICER. The Sen- take a number of misleading steps to vide for that and are playing into the ator from Texas is recognized. achieve competing objectives. They to- hands of those people. Mr. KERRY. Mr. President, if I can tally omitted the bill’s revenue impact The international provisions of title just inquire, it was my understanding— on prices in several respects. They ig- XI sets dangerous precedents, Mr. if I can just inquire—— nored any costs from future legislation President. If it were any other product, Mr. GRAMM. I yield without losing and attorneys’ fees. They ignored addi- this would not even be tolerated. I hope my right to the floor, Mr. President. tional regulatory costs of complying title XI can be eliminated or substan- Mr. KERRY. I understand. I ask the with the bill. They ignored price in- tially improved. Senator from Texas how long he will be creases resulting from higher sales I have concerns that the bill gives speaking, because I understood the taxes, State excise taxes, wholesale the FDA excessive authority to do Senator from North Carolina was going and retail margin increases, manufac- what I suspect they wanted to do for to offer an amendment. turers’ future price increases, and they the last several years—ban the prod- Mr. GRAMM. Mr. President, I want ignored the new licensing fee in title uct. It is my hope that we can place to make an opening statement on the XI. reasonable limits on the unbridled au- bill. I want to cover quite a few areas. But perhaps the most offensive ma- thority. I always try to be brief but it is going nipulation by OMB involved their con- Several serious constitutional con- to take me a reasonable amount of flicting projected volume declines. cerns have been identified, particularly time to complete my statement. What OMB projected youth smoking would since the tobacco manufacturers are I would like to suggest is that I go decline by 60 percent when calculating unlikely to sign on to this legislation. ahead and make my opening state- the look-back penalties, but they pro- ment—and I will try to do it as briefly Late last month, four State attorneys jected youth smoking to decline by as I can—and then I will yield the floor general sent a letter to Senator HATCH only 29 percent when calculating the and allow the normal process to con- outlining these concerns. Constitu- price-per-pack increase. tinue. As we say down in Kentucky, there is tional concerns throw into jeopardy Mr. KERRY. I thank the Senator. something about that that ain’t right. the advertising and marketing restric- The PRESIDING OFFICER (Mr. But you need a small consumption de- tions, the upfront payment, the look- BROWNBACK). The Senator is recog- cline to make the price-per-pack in- back provisions, the document disclo- nized. crease smaller. OMB just had it both sure section, and the so-called cor- Mr. GRAMM. Mr. President, I begin ways. They changed the projections to porate culture language. by congratulating our dear colleague, say the bill costs $516 billion and raises These are legitimate concerns. Each Senator MCCAIN, for the leadership he the price by $1.10. one will have a suit filed. It will be has provided on this bill. Senator Mr. President, I have Wall Street completed. They will file another suit. MCCAIN was asked to report a bill out Journal analyses, I have all these It will be completed, and we will be in of the Commerce Committee. He didn’t things I could read here this morning. court under these provisions for a long, get an opportunity to choose who was I don’t know how much time I have long time. I hope these concerns can be on the committee. He didn’t get the op- left. It is probably getting close to the addressed as well. portunity to write the bill as he would time. Mr. President, a recent Wall Street have chosen to write it. But his mis- The PRESIDING OFFICER. The Sen- Journal poll showed that Americans sion, as assigned him by the majority ator has approximately 4 minutes re- have serious doubt about the motives leader, was to report a bill from the maining. behind this debate. By a nearly 2-to-1 Commerce Committee. Mr. FORD. Good. I thank the Chair. margin, a majority of the people Serving as a member of the Finance Let me also outline several other thought the current debate was more Committee which got sequential refer- concerns I have with S. 1415 which I about raising taxes to pay for new pro- ral of this bill and, in the process,

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5088 CONGRESSIONAL RECORD — SENATE May 19, 1998 made the bill worse, I begin by saying you get to $500 or $600 billion, arguing the price of that product. But you that no matter where I end up on this about another $100 or $200 billion does would try to offset the bulk of that bill, I congratulate Senator MCCAIN for not really add much to the debate. with a tax cut that was more or less the work he has done in bringing the The bottom line is this bill is a huge aimed at giving tax cuts to people in best bill he could, given the committee tax bill by any definition of ‘‘tax bill.’’ the same income groups as those who he had to work with and the many in- It is also a massive spending bill. In would be paying the higher taxes so terests competing against each other fact, we will have never passed a bill— that you would not be lowering their on this bill. let me state it as my opinion. In trying real income. While we are not on the same side to look back and attempt to fit this But in this case, I simply note, Mr. today, I hope that at the end of the bill into the broad range of legislation President, in looking at this bill we do process, after conference, perhaps we dealt with by Congress, it is hard for not see that happening. In this bill, we will be on the same side, but I want to me to find an initiative that is this big are seeing hundreds of billions of dol- make it clear that, in my opinion, it is in terms of its fiscal impact since Lyn- lars of new taxes, but we are seeing unfortunate that when we debate a big don Johnson was President in the first none of this money given back to the issue—and this is a very big issue— year after the Kennedy assassination. people who are paying these taxes. So I often we stand on the floor of the Sen- So this is a big bill—big taxes, big would think that is evidence that rais- ate and talk about things that not only spending, and a big and noble objective. ing revenues to fund new spending don’t mean very much to the American The first point I would like to com- plays a significant role in this bill and public, but often don’t mean very much ment on is, Is this about tax and spend, in the final outcome of the bill, wheth- to us. or is this about children smoking? We er or not that is the stated objective of Today we are debating a very big have ads in the newspapers every day the legislation. issue: hundreds of billions of dollars of arguing one point or another. We have I think a second hallmark of a bill taxes, hundreds of billions of dollars of ads running in many of the States urg- that has turned into a giant piggy bank spending, a high and noble purpose try- ing our colleagues to not band together would be the kind of spending which ing to prevent children from smoking with the cigarette companies against occurs—have you ever noticed when and, in the process, affecting their our children. We have ads in the paper you are spending your own money you health. So this is a big issue. urging other colleagues to not partici- tend to spend it pretty prudently, but I simply lament that so much of the pate in tax or spend. How can you fer- when suddenly you have an oppor- debate is tainted by trying to impugn ret out what the truth is? Well, obvi- tunity, a financial bonanza to spend the motives of people who are engaged ously, it is a very difficult task. But let someone else’s money, the spending be- in the debate. We have all seen ads run me tell you what I think are some of comes very, very careless? in the paper that refer to this as the the hallmarks we ought to look at in Well, I would pose as a question, in McCain bill which is aimed at raising trying to ferret out the truth. trying to determine if this is about taxes and increasing spending. The bill Let me try first to define the ques- children or about money—what evi- does raise taxes, it does increase spend- tion more precisely. Are we raising to- dence is there in this bill of careless ing, but that is not the intent of the bacco taxes to prevent children from spending? I want to just present two Senator from Arizona. There is no smoking or to fund new spending pro- pieces of evidence. The first has to do doubt in my mind that he has brought grams? It seems to me that is a fair with payments to attorneys. I know us the best bill that his committee was question to begin with in this debate. many Members of this body are attor- capable of writing. And let me tell you what I think would neys, and I am not going to get into all Let me also say that anyone who op- be some of the hallmarks you would this business about ‘‘some of my best poses the bill knows that they are im- find if the tax increase were to deter friends are attorneys,’’ and I am not mediately going to be tarred as being smoking rather than to fund programs trying to bash attorneys, but I am try- the spokesman for the tobacco indus- and the hallmarks you would find if it ing to make a point about spending at try, which in this debate has become had instead become a piggy bank for a level that could only suggest this bill the embodiment of all evil on this massive new spending. has become a piggy bank for massive Earth. I just lament, going into the de- If the objective of the tax increase new spending. bate, that we cannot simply debate the was simply to discourage smoking, Let me begin by looking at the issues without getting into impugning then I think what we would find would amount of money going to attorneys the motives of the people who are in- be an effort to give the money back in out of this bill. volved in the debate. tax cuts because the objective would be By almost anybody’s measure, this While it may sound trite to many to affect the price of cigarettes, not— bill will, if adopted, set out a procedure people who might watch this debate, Mr. President, could we have order? where attorneys who have been in- let me say that I believe that for all The PRESIDING OFFICER. The Sen- volved in these cases will get a pay- practical purposes, everyone involved ator is correct. If we could take audible ment of at least $4 billion. Now, nobody in this debate in the Senate is trying conversations from the floor to the knows what $1 billion is. Maybe Ross to do what they believe is right, and cloakroom. Perot does, but few others know what they are neither the servant, in their Mr. FORD. I am glad it is audible. $1 billion is, so let me try to convert it own minds, at least, of those who want The PRESIDING OFFICER. If we down to English. a massive increase in taxes and spend- could take the less audible conversa- In the lawsuits which have been set- ing, nor are they the servant of the to- tions to the cloakroom, it would be ap- tled and where billings have been sub- bacco industry. preciated. mitted lawyers are said to be seeking It is a shame that when you debate a Mr. GRAMM. I thank the Chair. $5.7 billion. really important issue, that rather The PRESIDING OFFICER. The dis- Now, let me try to convert that into than being able to simply focus on the tinguished Senator from Texas is rec- something which people can under- substance of the issue, you end up ognized. stand. If the lawyers who have worked being pigeonholed, with the debate fo- Mr. GRAMM. Mr. President, I think on these cases were paid $1,000 an hour cused around whose interest you sup- if you were looking at a rational policy for an estimated total of 200,000 hours posedly speak for. to deter the consumption of an item by they have spent on the lawsuits which Obviously, the first question we have raising its price, but your objective have occurred to date, they would be to ask on this bill is, What is the pri- was not to collect a huge amount of owed $200 million, but they are re- mary effect of the bill? This bill, obvi- money to spend and your objective was ported to be seeking $5.7 billion or ously, raises taxes by hundreds of bil- solely to get people to reduce their close to an average of $30,000 an hour lions of dollars. Depending on the esti- consumption of that product, it seems and the effective rate of compensation mates you look at—they vary greatly— to me that one of the hallmarks of in this bill could be—let me swallow there is as much as a $200 billion dif- such a program, one of the outward and before I say the number—$100,000 an ference in the estimates as to how visible signs of that objective, would be hour. Now, I ask my colleagues, what much money this bill raises. But once the imposition of an excise tax to raise kind of legislation would we ever pass,

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5089 in representing the 260 million people how the program started. The program ers, we are paying them $125 an acre. who live in this country, that would was an effort to use Government power That is to phase out the wheat pro- pay anybody $100,000 an hour to do any- to benefit tobacco farmers, something gram. We pay it over 7 years, $125 an thing? The plain answer, we all know, not uncommon. We use Government acre. For corn, we pay $200 an acre, is that we would never, ever, pass an power all the time to promote the in- paid out over 7 years. For grain sor- appropriations bill that compensated terests of many groups, generally at ghum, we pay $131 an acre. For barley, somebody at $100,000 an hour. In fact, the expense of the consumer. we pay $70 an acre. For oats, we are we would be very much challenged and Now, what has happened over time is paying $8.38 an acre. For upland cot- probably criticized—and probably just- that more and more of the people who ton, we are paying $245.99 an acre. For ly—if we were compensating people own these quotas have moved off to the rice, we are paying $714.09 an acre. $1,000 an hour. big cities, and when we are talking Now, how much do you think we are Now, what does it suggest about this about compensating tobacco farmers, paying per acre in the least costly to- bill? Let me make it clear, we are you get the idea that we are talking bacco bill which has been proposed? going to have a debate about lawyers’ about compensating people who are ac- Let me give you a hint. It is about fees, and I will have a lot to say when tually growing tobacco. The great bulk $18,000 an acre. Let me repeat that we have the debate, but my purpose of every proposal that has been made— number. If we paid tobacco quota own- here is not to mock the fact that we from the Ford proposal to the Lugar ers—not tobacco farmers; we are pay- could be paying $100,000 an hour to law- proposal, to the Kennedy proposal, to ing the people that own the Govern- yers under this bill. My point is a far the Robb proposal—a lot of proposals, ment license; relatively little of the more important point, and that is, how but virtually all of these proposals are money is going to the farmer—if we could you have a bill that paid $100,000 focused fairly narrowly on compensat- paid them the total of the amount per an hour? The only way you could have ing people who own the quotas, not the acre that we paid all of the other seven a bill that paid $100,000 an hour is if people who grow the tobacco. crops combined—in other words, we you had put together a bill that had Now, why is this important? It is im- paid them every penny we pay corn, massive amounts of money that are portant because 63 percent of the wheat, grain sorghum, barley, oats, up- not viewed as money that has come quotas that the Government gave away land cotton, and rice combined—we from real taxpayers and, therefore, you in the first place are owned by people would pay them $1,495.78 per acre. If we have sort of a ‘‘slam it up against the who don’t grow tobacco. So when we paid them the combined amount for all wall’’ kind of approach to distribute are going to compensate under this 7 crops, it would be that amount, but the money. Only in a bill where the ob- program in the name of helping to- yet we are paying almost 18 times the jective was to raise revenue and spend bacco farmers, the truth is that the amount we paid every other crop com- it without any regard for the priorities great bulk of the money is going to bined to buy out tobacco producers. of spending it could you possibly end people who don’t grow tobacco but And the final incredible paradox is up with a bill that would compensate they have often become very wealthy that we have a market for tobacco attorneys at $100,000 an hour—espe- people by owning a benefit which the quotas. In other words, I could go out cially a bill that is sanctioned by the Government gave them, and they then this afternoon—I do not know if I could Federal Government and especially a leased that quota to grow tobacco to do it this afternoon because this bill is bill where the money is coming not farmers who actually get out and farm on the floor and I guess people think it from tobacco companies but from peo- tobacco, which is a tough, backbreak- might pass. But last week, I could have ple who are in families, 73 percent of ing business. bought a quota to grow tobacco for them, that make less than $50,000. Now, getting to my point. What do $3,784. I could have bought a quota to A look at the lawyer fees in this bill you think would be a reasonable com- grow tobacco for $3,784. That was the is an important piece of evidence, it pensation for us to give to the holders average cost of a quota, at least the seems to me, that needs to be looked at of these quotas to, in essence, end the only number I could find last week. If in this debate as to whether this is program? Let me remind my colleagues people have other numbers, I would be about smoking or whether it is about that unless the bill has been changed happy to be educated. money. and it has been rewritten—and I am But we are getting ready to pay The next issue is equally controver- eager to hear what the new provisions somebody who went out on Friday and sial, and I am not going to debate it are—but unless they have been bought that quota five times what they here. I will probably get into the de- changed, we are not talking about tak- paid for the quota, and then we are bate when we have amendments about ing the land when we pay people. We still going to let them grow tobacco, compensation to tobacco growers, but I are not talking about barring them and we are still going to let them own want to make the same point about the from growing tobacco. We are simply the land. tobacco settlement with farmers that I compensating them for an effect that I am not here today to criticize the made about the lawyers. Let me give a we believe this bill will have on de- tobacco program. I am here to raise the little short course on the history of mand. And while we throw around question, Is this bill about smoking or American tobacco policy. Again, my numbers, the plain truth is, nobody is it about money? purpose is not to criticize the policy of knows what effect the bill will have on When we are paying lawyers $100,000 the settlement but to make the point the demand for tobacco. an hour and when we are paying to- about how careless we have been in We are in the midst of a program bacco growers, or at least the people spending the hundreds of billions of where we are phasing out Government who own the right to grow tobacco dollars that are entailed in this bill. price supports in the broad base of under a Federal licensing program, 18 The tobacco program started in 1938 American agriculture through a bill re- times what we paid all 7 major crops as a way of trying to raise the price of ferred to as Freedom to Farm. Under combined to phase out their program, tobacco. It was a program instituted by this bill, we set up a 7-year program does it not suggest that this bill is the Government to benefit the tobacco where we provide transition payments about money, and not only the use of grower, and it was a program where we to farmers so that at the end of the 7 money, the vulgar use of money? How provided a production quota where the years they have the freedom to farm, can we justify these kind of numbers? people who were growing tobacco in the freedom to succeed, and the free- Let me make it clear. I have many 1938 received quota based on the num- dom to fail. Let me say, it is one of the colleagues from tobacco-producing ber of acres they were growing. The most enlightened policies we have in- States. I don’t have tobacco in my idea was to limit production, to keep stituted. State. It is easy to pile on some State people out of the tobacco-growing in- Here is my point: We have evidence when you don’t have the product grown dustry, and to make the price of to- for seven crops as to how much we have in your State. I experienced that with bacco products higher than they would paid people who grow those crops in re- sheep and goat raisers. I am willing to be in a competitive market. Not sin- turn for phasing out the Government support a buy out of tobacco growers gling out tobacco here, we did it for program. Let me just run through and the people who hold quotas. But I virtually every other crop, but that is some of these costs. For wheat grow- cannot justify the kind of figures we

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5090 CONGRESSIONAL RECORD — SENATE May 19, 1998 are talking about—18 times the com- to pass the whole thing through but I objection. We are debating it and I bined buy out of all 7 other basic agri- would like more of the market.’’ want to make it clear that we are cultural products when added together. Who pays this tax? I would like to going to debate this bill. We are going What does all of this suggest? It sug- suggest that my colleagues ought to go to have a full airing of views. It is im- gests that this bill is not only about out in Washington, DC, and walk the perative that we all understand what is money and quantities of money, the streets and try to take a look at who is in the bill. I intend to object to the likes of which we have seldom seen smoking. What they are going to find unanimous consent requests that here, but it is also about the perilous when they do that is that basically would limit my right or the right of use of this money where we are taking smoking in America, while there are other Senators. This is the Senate. money and collecting taxes and we are exceptions to every rule, smoking I remind my colleagues that when distributing it to various interest today is basically a blue-collar phe- Jefferson came back from France groups and the lack of care with which nomenon. When you look at the dis- where he had been Minister to France we are distributing it is clearly in- tribution of the tax burden, you see it when the Constitution was written and dicted by the amounts of money that as clearly as anything that is visible. he asked Washington what the Senate we are giving people. The tax that this bill imposes, hun- was for—and many of you know the We are going to get a chance to vote dreds of billions of dollars of taxes, will story—Washington, being a southerner, on both of these issues. I do not want be borne overwhelmingly by blue-collar often cooled his tea in a saucer before to enter into a debate about them here. workers. he drank it. Jefferson asked him what I will debate both of them when we get According to the Joint Tax Commit- the Senate was for. If you had the to them. tee, 74 percent of the taxes that will be House, what did you need the Senate But the point I want to make is this: collected under this bill will be paid for for? And Washington explained to Jef- This is evidence that this bill is about by Americans who are in families who ferson that in moments of heated pub- money and not about teenage smoking. have incomes of less than $50,000 a lic passion, the heat of public opinion It is clear evidence, it seems to me, year. would overwhelm the House but the that in distributing this money the to- So the rhetoric is we are taxing these Senate would be like this saucer, as he tals are so big that there has not been big, evil, conspiring tobacco compa- poured his tea into his saucer to cool, great care taken with the distribution. nies. But the cold reality is that not and it will cool passions before it acts. Please recognize that if working people only are we not taxing these tobacco So I do not intend to delay, but I do got to keep the money, they would companies, but we have provisions in not intend to be hurried either, nor do spend it wisely. Even if it were in the the bill that protect the tobacco com- I intend to have my rights limited even appropriations process in Congress, panies from anyone not passing the tax by my dearest of all friends, Senator much of it might be thrown away but through to the consumer. MCCAIN. some of it might be used for some good So every penny, for all practical pur- Now, 74 percent of the taxes that are or objective effort. poses, of hundreds of billions of dollars collected under this bill are collected I simply say this bill stands indicted we are going to collect is coming from from Americans who are in families in how careless we have spent hundreds real honest to goodness people who are that have incomes of less than $50,000 a of billions of dollars in dividing up this buying tobacco products, the very vic- year. Far from taxing the evil tobacco windfall, this winning of the lottery, tims of the conspiracy that this bill is companies, the cold reality is, as much by the designation of this industry as said to rectify. The very victims of the as we would like it to be otherwise, as the enemy of the people and thereby conspiracy that this bill is aimed at much as we would like to convince our- creating a right and a public demand rectifying are the people who will pay selves and others that it is otherwise, these taxes. And 74 percent of them are that we seize this money. this is a massive, regressive, crushing The next issue I want to talk about is members of families who earn less than tax on blue-collar America. Let me give you a figure which is as- the tax itself. On this issue, I think we $50,000 a year. I don’t have any intention, with all tounding to me, and if it weren’t from have one of the greatest gulfs between due respect, of hurrying up my state- the Joint Tax Committee I would ques- the rhetoric of the bill and the reality ment. I intend to cover each of these tion its validity. But listen to this of the bill that exists. The rhetoric of issues, and I am not going to delay number. Of Americans who make the bill is that we are taxing these to- them. I am certainly not filibustering. $10,000 a year or less—very-low-income bacco companies. The rhetoric of the Mr. MCCAIN. Will the Senator from Americans—if we pass this bill, we will bill is these tobacco companies have Texas yield for a comment? raise the percentage of their income conspired to deceive; these tobacco Mr. GRAMM. I would be happy to coming to the Federal Government by companies have conspired to induce yield without losing my right to the 41.2 percent. children to smoke. I don’t dispute that. floor. Let me give you that number again. I think it is true. I think there is in- Mr. MCCAIN. The Senator from For people in America who earn $10,000 creasing evidence that is true. But the Texas was not on the floor but we did or less, so substantial is the impact of rhetoric is that somehow we are penal- have an understanding that we would this cigarette tax on the amount of izing the tobacco companies and the move forward with an amendment. I their income coming to the Federal tobacco industry with this massive ask the Senator not to deprive us of Government that the percentage of bone-crushing tax of hundreds of bil- any information or knowledge that we their income going in Federal taxes lions of dollars. That is the rhetoric. need from him. But we did have an un- will increase by 41.2 percent from this But what is the cold, hard reality? derstanding before the Senator came to cigarette tax increase alone. The cold, hard reality is that virtually the floor. I could have blocked the Sen- Who is paying this tax? Americans none of these taxes are being paid for ator from taking the floor. But I didn’t who make less than $10,000 a year are by tobacco companies, and, in fact, we choose to. seeing their Federal taxes rise by 40 have an incredible provision in the So I would appreciate it, if at least at percent as a result of this bill. Those committee bill to make it a crime if some point we could move forward. I who make between $10,000 and $20,000 the tobacco company absorbs any of thank my dear friend from Texas. will see their Federal taxes rise by 9.8 the tax and does not pass it through to Mr. GRAMM. Let me say, I under- percent. Those who make between the consumer. So not only does the to- stand the Senator from Arizona want- $20,000 and $30,000 will see their Federal bacco company not pay these hundreds ing to move the bill forward. There are taxes rise by 4.4 percent. Needless to of billions of dollars of taxes, but we some key points that need, I believe, to say, by the time you get down to us, have in this bill a provision—almost be made before we start voting on Members of the Senate, we see our Fed- unimaginable—that makes it a crime amendments. I am not going to be in eral taxes—relatively few of us smoke, for the companies not to force the con- any way dilatory. I have several other but on average people who make more sumer to pay the tax. So not only do issues I want to cover. But I will move than $100,000 will see their Federal we not tax the tobacco companies but with all due speed in covering them. taxes rise by only .1 percent. we protect them in case any of them But I do want to say that we have a So I think we are going to have to would say, ‘‘Well, look, I do not want bill that has come to the floor without come to grips with one clear fact about

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5091 taxes: We are not taxing tobacco com- into stopping smoking is phased in so one who was an alcoholic, who doesn’t panies. We are not taxing evildoers. We as to minimize the ‘‘consumer back- believe you can get addicted to whis- are not taxing conspirers. We are tax- lash’’ to it? If the purpose of the tax key? ing victims. was to get people to stop smoking, you Next month, are we going to have I hate pulling my mama into the de- would hit people with a tax at its high- this same—or next year—are we going bate, but it is such a beautiful exam- est level on day 1. Consumer backlash to have the same process with regard ple, I can’t resist. My mother is 85 would be what you want. But if the to hard whiskey and beer and wine? years old. She smokes Marlboros. I purpose was to raise money, then you Are we going to discover somewhere in have spent my 55 years of life trying to would phase in the tax. the deep files of the liquor companies get her to quit smoking, and I have I submit that the proposal before us, 10 years from now that they targeted failed. And now the doctors tell me the amendment to raise the tax to their ads to today’s 15 year olds? that one part of her that is still in rel- $1.50, and every proposal save the one Are we going to discover that the atively good shape is her lungs. So I in Finance where I raised this point, beer brewers have figured out what ads have quit trying to get my mother to each of these proposals phases in the to run to get us to go to the refrig- stop smoking. I still believe it would be tax, and you would never phase in the erator and get a cool one? And are we good for her not to smoke, but I can’t tax if the purpose of the tax was to get going to start this process next year on get her to stop. people to respond to it and stop smok- alcohol? I don’t see how it can be oth- But here is the point. The whole logic ing. You would phase in the tax only if erwise. Does it end there? you wanted to minimize their response of this bill is saying to Florence When I go to McDonald’s, attracted, to it and their awareness of it. I think Gramm, ‘‘Florence, you have been ex- as our President is attracted, against that is additional evidence that the ob- ploited. Joe Camel has made you my will—I would like to be as thin as jective of this bill, or at least the like- smoke for 65 years. The tobacco compa- the Senator from South Carolina. But ly result of it, is to raise hundreds of nies, through their advertising, have McDonald’s and every other fast food billions of dollars and spend the forced you to smoke. And in doing so, producer in America conspire against money. The bill is not structured in a they have affected your health. They me. They fill up the television with ads way one would believe it would be if its have perpetrated a terrible evil, and we that attract me to go and to eat. They sole objective was to get people to quit are going to do something about it.’’ do studies to try to determine my So Florence asks, ‘‘Well, what are smoking. weakness. Am I not victimized by you going to do about it?’’ Well, what I have three final issues I want to McDonald’s and Burger King? And, if I are we going to do about it? We are talk about. The first issue is one that am victimized, are they not liable? If I going to make my 85-year-old mother weighs heavily on my mind. Maybe I am not responsible, are they not re- pay higher taxes. So we tell her she is am the only Member of the Senate who sponsible? exploited. We are outraged about it. is concerned about this, but it is an The President is outraged about it. We issue that I am greatly concerned Here is my point. I hope my col- are outraged about it. So what do we about. We are setting a precedent for leagues will not take it as a trivial do to her to show her how outraged we America’s future with this bill. There point because I don’t mean it as a triv- are? We raise her taxes. are many elements of the bill that I am ial point. Where does this end? If we Now, please forgive me if I seem to be sympathetic to, but there is one ele- don’t hold people accountable for deci- struck by the incredible paradox that ment I am very frightened about. Here sions they make, does it end with to- under this bill the victim is penalized is that element. It is stated in a clear bacco? Does it end with alcohol? Does and the perpetrator of the fraud is not form—maybe overstated, but I don’t it end with fattening foods? Where does only not penalized, not taxed, but pro- think so. What has happened in this this debate end? tected by an incredible provision that bill is we have picked, in this case an Let me submit the plain truth is ev- forces those who might not pass industry, and it has been so vilified erybody who has thought for a milli- through all of the tax to my mother to that it is popular to tax the product it second about this issue has thought do so. produces, even though the tax is on about this and nobody knows the an- One final point before I leave taxes in blue collar workers and not the to- swer to it. And I submit this is a pro- my effort to get on and finish my open- bacco companies. And the logic of this found question we need to pray over for ing comment goes back to this evi- is, because of the negative impact on an extended period of time before we dence. What is the evidence that this is people’s health of consuming this prod- set a precedent which says people are about getting people to quit smoking, uct, that tobacco, nicotine, is addict- not responsible for the decisions they and what is the evidence that this is ive, and the people who sell the product make and, therefore, somebody else is about money? Well, let me give you a know that and market it in such a way responsible, and they can be made lia- clear-cut piece of evidence. If the ob- as to get people to consume the prod- ble. jective of the bill was to get people to uct. So as a result, we are getting Two final points: Nobody is looking quit smoking, you would put the tax on ready to impose one of history’s larger at black markets. We have a bunch of full tilt on day 1. When an amendment tax increases on the consumers of this people who are talking as if they are was offered in the Finance Committee product. economists and they know what they to raise the tax to $1.50 a pack, the pro- This is a view which basically says are talking about. You know, we have ponent of the amendment offered it my mother is not to blame for having all seen—many have repeated the phased in over a 10-year period so as to smoked for 65 years, it is not her fault; study—if you raise the price of tobacco prevent a consumer backlash. she was induced to smoke by an indus- by 10 percent, you are going to have a What is a consumer backlash? Why try which conspired to attract her as a 6-percent decline in consumption. If would you phase a tax in if the objec- customer, and to hold her as a cus- you think about that, everybody knows tive is to get people to respond to the tomer. Now, if we take that view in that is nonsense. So you could, by dou- tax? Well, we all know. Many of us this bill, there is no way you can look bling the price of cigarettes, eliminate have served on the Finance Committee. at this bill without reaching the con- smoking in America? Does anybody All of us have been involved in debates clusion that we have decided my moth- really believe that? But yet ads run that entailed tax increases. The reason er and the millions of other people who every day with that figure in it. People you phase a tax in is to try to hide it smoke are victims and they have, repeat it. Somebody made it up. It from the taxpayer and to try to reduce against their will, made a decision—if makes no sense whatsoever. the backlash to it or the economic or we divorce them from responsibility Europe has imposed very, very high political response to it, and the way for their own decisions, where does this taxes on tobacco. Has it stopped teen- you do it is, you start it out small and end? Does anybody here who has ever age smoking? No. Has it stopped adult then each year you make it bigger, known an alcoholic not believe that smoking? No. Will raising the price of hoping nobody notices. But isn’t it an spirits, whiskey, alcohol is addictive? cigarettes—other things being the incredible paradox that a tax which is Is there anyone listening to this debate same—have some marginal impact on supposed to be a tax to shock people anywhere, who has ever known some- tobacco use? Yes. But can we say for

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5092 CONGRESSIONAL RECORD — SENATE May 19, 1998 every 10 percent we raise prices, con- our constituencies, are focused on and Let me say that I don’t have any sumption will decline by 6 percent? Ab- nothing else. One of the things I try to doubt that the 1,400 people who called solutely not. Any good freshman stu- do is to find out what exists within the me against this bill on the WATS line dent in economics would laugh at such beltway and what exists in America, were triggered by the tobacco compa- an assertion. and try to determine what the public nies, but I also don’t have any doubt But even more laughable is the arro- really thinks and what is it they want that almost all of the 300 people who gance of government. Let me just give us to do. called me for it were triggered by the you some facts. Great Britain has im- So last month I got my office to keep groups that hope to get billions of dol- posed a very high price on tobacco. But pretty meticulous records about the lars from this bill. have they been able to enforce the tax? amount of information we were getting As I see this thing, the only two The answer is no. Fifty percent of the in our office about this bill and the to- clearly defined constituencies here are British market for cigarettes today, bacco issue. And, as of that period, ads people who have a direct interest in the according to an article by Bruce Bart- had been run in the Dallas Morning bill. I think we ought to listen to them lett in the Wall Street Journal, and a News and the Houston Chronicle— to see if they have anything to say, but fairly comprehensive study he has done those are the two biggest papers in my I don’t believe we should be frightened at the National Center for Policy Anal- State. Some television ads, I believe, of them. I believe we should try to fer- ysis and the De Tocqueville Institute— had been run. So the question was, over ret out what are the facts. I think we what he has found is that countries a 30-day period, how many of the 19 need to look at each and every one of that have imposed high tobacco taxes million people in my State thought these issues: Who is paying the taxes? have seen an explosion in black market this was a big enough issue to pick up Who is hurt? Who is helped? How is the sales of cigarettes and, as a result, the the telephone and call my office? money being spent? Is the money being cigarettes sell at substantially below Let me give you the results. We had spent wisely? Are we going to affect the price with the tax, and in some about 1,400 people call our Washington teenage smoking? Is this the best way cases they sell at less than they sold office and say, ‘‘Don’t raise taxes on to do it? Is there a better way to do it? for before the new tax. cigarettes.’’ Every one of them was Do we do it without reallocating hun- When Britain has 50 percent of its generated, as best we could tell—every- dreds of billions of dollars from blue- cigarettes that are bought on the black one called in on a WATTS number and collar workers to basically bureaucrats market and smuggled into the country, they had been triggered to do so. and public interest advocates who—I or are produced illegally there, when Three hundred people called in and don’t know how they determine what Italy has 20 percent, when Spain has 23 said, ‘‘Raise taxes on cigarettes; save the public interest is to advocate it, percent, when even States in our coun- our children.’’ But as best we can de- and I am always suspicious of anybody try at the low level we now tax relative termine, almost every one of them was who advocates the public interest, to the levels we are talking about here triggered with the use of a WATS line other than myself. have experienced that, when there is and by an organized group. These are the things that I urge my more money in smuggling cigarettes in Here is the most revealing and im- colleagues to look at. Let’s not delay, Great Britain than in smuggling 20 portant thing. Last month, in my seven but let’s take the time to know what pounds of marijuana—should not we at offices in the State, so far as I am we are doing. Let’s give some prayerful least look and make some objective aware, virtually no one called on this thought about where we are going to be judgment as to whether or not we are issue. It is the No. 1 issue in Washing- next year if the same thing is happen- taking an action which will fill our ton, DC. Ads are being run here, there, ing to alcohol. Where are we going to country up with illegal cigarettes, and and everywhere. And in 30 days, vir- be the next year if the same thing is so we will have some hood on the cor- tually nobody who actually had to pick happening to the fast food industry? ner who is saying to our children: up their phone and call, as they nor- Where does all this end once you start Look, I can sell you these cigarettes, mally would call an office—not trig- it? I don’t know the answer to this, but these brands at this price; I can sell gered by a special interest group— I think we ought to know the answer you marijuana for this price; a little called my office on this issue. before we start down this road. crack cocaine for this price. But you Why is that relevant? Why it is rel- Let me conclude by simply repeating know the response you get when you evant is, I think the Senate, as the the remark I made earlier, and that is, raise this issue? The response is that greatest deliberative body in the world, I congratulate Senator MCCAIN for his people who wouldn’t know economics needs to take a step back and not stop work in the Commerce Committee. from ethnic studies say: There is noth- considering the bill—far from it. But Having had a little opportunity to try ing to this. we need to not let the special interests to have a positive impact in the Fi- There is everything to this. It is a that are opposed to the bill or the spe- nance Committee, I have a greater ap- cold reality that in Europe black mar- cial interests that are for the bill domi- preciation of the difficulty he faced. I kets in cigarettes are now a way of life. nate our thinking on this bill. think it is clear the Finance Commit- I think in setting out a policy that is We need a broader perspective, and tee made the bill worse in every re- aimed at, at least nominally, getting the plain truth is, this is not the be all spect than if they had never touched it. our children not to smoke, we need and end all of America. My view is, we The question is, Given that we now some hard evidence about black mar- need to be sure we know what we are have the bill on the floor, what can we kets. If we have black markets in Can- doing, and we need to do the right do to make it better? ada, if we have black markets all over thing, because the truth is, obviously I hope at the end of the process that Europe, if we have black markets in we have all been told—every time I I might be on the same side as the Sen- Asia, what is the reason to believe that raise this issue in one of our closed ator from Arizona. I think the better we are not going to have black markets meetings, people say, ‘‘Yeah, but they we understand the bill, the better the in the United States of America? I be- haven’t run the TV commercial yet at- chances are that we will serve the pub- lieve this is an issue which needs to be tacking you,’’ or whomever. Let’s not lic interest and that that will happen. dealt with. underestimate the American people. I yield the floor. A final point and I will be through My urging here is that we take a long, Several Senators addressed the with my opening statement. I am hard look at this thing and we try to Chair. loathe to do this because I know when figure out what the right thing is and The PRESIDING OFFICER (Mr. SES- I do it my telephones are going to ring that we do it. SIONS). The Senator from Arizona. off the wall, so people who work for me This is a very important issue. There Mr. MCCAIN. Mr. President, very please forgive me. But you get the idea is a lot of money involved here. A lot of briefly, I thank the Senator from in reading the newspaper in Washing- hard-working, blue-collar people are Texas, as always, for his thoughtful ton, DC and in working in the Senate going to suffer, as a result of this tax, and insightful views. Obviously, I am that this issue is the all-consuming a lower standard of living. A lot of peo- not in agreement on a number of the issue in America; that this is an issue ple are going to get huge quantities of things he said, but his and my dis- the whole world, at least our part of it, money. agreements have always been very

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5093 agreeable. I believe he has contributed table. But the tobacco companies, to- We live in the real world. I think it is an enormous amount. I do agree with gether with the States attorneys gen- $4 or $5 or something in downtown Lon- him, I don’t know what would have eral and the White House and the don. I was visiting with a friend not happened if we had given the Finance health community, announced a dra- long ago from Canada. He picked out of Committee another 24 hours, which I matic settlement of $368 billion. That his pocket and lit up a cigarette. And I think is, as he mentioned, a cautionary is without a Congressman or Senator said, ‘‘How much, by the way, was that lesson as to what we have had to go even thinking in these terms. pack?’’ He said, ‘‘This one is $7, but in through and what we will go through I have been up here 30 years. And I Canada it is $6 to $10.’’ You see, that on the floor and what might have hap- have worked with the Cancer Institute, shocks us who really have not paid pened if it had gone to other commit- Dr. Koop and Dr. Kessler and others. that close attention. tees. Thirty-some years ago, yes, we put no- I never heard of any $360 billion, and Just one other point I want to make tification on a pack of cigarettes. And I have been working on the defense for my friend from Texas. Yes, the at- we have admonished—I have seen dem- budget for years on end. That is only tacks have started. Millions of dollars onstrations by the Cancer Institute $245 billion. Here we come with an have been directed at me, so I do know that stopped me from smoking. But we amount that they agreed to pay them- what it is like. You say you don’t know have not done near what was an- selves with an increase in the cost. The what it is like. I know what it is like. nounced last June. politicians coming around hollering, I am a big boy, and I can take it, but Last June, the communities got to- tax, tax, tax—tax and spend, tax and I have been rather interested at the fe- gether on the basis of the companies spend, and everything else, including rocity of these attacks and how per- stating, in essence, ‘‘Look, we’re tired the companies. Under the whole cloth, sonal they have been. Obviously, I will of winning these cases.’’ As we speak the tobacco companies are the ones not respond in kind. I would have liked on the floor of the Congress today, no who thought of the idea of taxing $368 to have seen the tobacco companies one has won a jury verdict against a billion. And this just carries it up to spend some of this money on trying to tobacco company, period. I think it is $500 billion. stop kids from smoking and other in the main, on account of the public- So they are the ones who gave us the worthwhile efforts. But it is their right ity and the health and the notification idea that let us go ahead and see how as corporate citizens to do so. of the assumption of risk, that smok- much, if you please, Mr. President, you I mention to my colleagues, Senator ing is dangerous to your health. The could charge on cigarettes, as much as companies themselves are engaged in HOLLINGS has remarks that he would possible, to try to stop the smoking, like to make, and it is my understand- advertising Miller High Life Beer, pay for the advertising, pay the States Kraft Foods; different other things of ing, after that, I say to Senator FAIR- back for their Medicaid costs, start that kind, Ritz Crackers, what have CLOTH, that we will propound a unani- some children’s programs. Yes, they you. talk about it—tax and spend. The mous consent request which will make They are good businessmen. They are spending is on children, on helping to his amendment in order, with a motion not a bunch of crooks, as they are try- get children to stop smoking. The dis- to table at a time certain after that. ing to be depicted here once the politi- tinguished Senator from Texas knows That will be at the completion of Sen- cians got this particular issue. They that. We are doing that, and we are ator HOLLINGS’ remarks, so we can have run a touchdown in all the direc- move forward with the amending proc- tions and in all extremes. But what going to use that money to try to stop ess. happened was the companies said, children from smoking. And, you know, Mr. President, they I thank Senator FAIRCLOTH for his ‘‘Look, rather than paying out all went even further than I would have patience and good humor throughout these costs to lawyers and winning gone if I had been their lawyer or I had this delay this morning. I yield the every case after case, why don’t we get been the CEO, and that is take some floor. together and continue in an orderly Mr. HOLLINGS addressed the Chair. fashion.’’ kind of pledge and penalty for what The PRESIDING OFFICER. The Sen- We are not going to have prohibition. they call ‘‘look back.’’ It took me a ator from South Carolina is recognized. Even I heard Dr. Koop testify to that long time—they said, ‘‘We’re going to Mr. HOLLINGS. Mr. President, the before our committee that no, he was be responsible for stopping smoking in distinguished Senator from Texas re- not attesting to having prohibition. We America.’’ minds me of that youngster who went are not going to have prohibition of to- Now, whoever heard of that? We have to the psychiatrist. The psychiatrist bacco. Tobacco was here. The Indians been trying to do it with notification drew some circles on the blackboard were smoking it when we arrived. on the packages. The health commu- and said, ‘‘Now what do you think of?’’ Just the other day we had a celebra- nity has been trying it. Every doctor He said, ‘‘Sex.’’ tion with our role model, the former now will counsel you. So there is noth- He drew lines up and down. The distinguished majority leader, Mike ing new. But the tobacco companies youngster said, ‘‘Sex.’’ Mansfield, whom when you go to the are supposed to advertise in an adverse He drew some crosses. He said, Mansfield Room, he is very proud of fashion and pay a penalty that goes up, ‘‘Sex.’’ that portrait of himself smoking that up and away if, as a company, they do The psychiatrist said, ‘‘Young man, pipe. And he is 95 years of age. not comply or accomplish it. you’re the most oversexed person.’’ So we live in the world of reality. Now, that was a pretty solid agree- The youngster said, ‘‘Doc, you’re the Hopefully, this Congress will get back ment that has been distorted in every one drawing the dirty pictures.’’ to reality and not the nonsense that we fashion here which does not seem to The Senator from Texas is the one have just heard of about taxes and get any understanding because the drawing the dirty pictures. I have what the idea was and everything else jackals have taken over now, cackling never heard so many extreme of that kind. up here about tax and spend and every- nonsensicals in my life. We want to The idea was to get an arrangement thing else of that kind, going into keep his dear mother here. No one is whereby the companies who could win $18,000 an acre, $100,000-an-hour law- victimizing her. What we are going to every advertising case about Joe Camel yers’ fees, and all these other things. try to do is help the doctors to counsel and everything else of that kind says, Mr. President, my distinguished col- her to stop smoking. ‘‘We’ll stop advertising in this manner. league from North Carolina has an Let’s get back to last June, almost a We’ll stop spending that money on ad- amendment that he wants to put in— year ago, to show you how far out of vertising. We’ll stop spending this and I want to yield to him just as kilter this thing has gotten. money on lawyers. And we’ll make an promptly as I can—relative to legal What happened was, to the surprise agreement with you to pay in so much fees. And we will debate that and the of many—I did not know, and I do not of our profits. Necessarily, you say contribution made by trial lawyers. know of any Congressman or Senator that you want to raise the price be- Let me just state ahead of time, cat- who participated. I do not think there cause that is the best control of to- egorically—and I am looking over here was a Congressman at the table. I do bacco consumption, so we’ll go along at a chart that says ‘‘Minimal Ethics.’’ not think there was a Senator at the with raising the price.’’ Not at all, absolutely not at all. I have

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5094 CONGRESSIONAL RECORD — SENATE May 19, 1998 to say something about that chart. I big cash crop. So when we saw that, we instrument in that you cannot have to- cannot resist the temptation. I have moved. I want to say this categorically bacco farmers, Senator, unless there been at the trial bar, and if they think and just dispassionately, how shocked are tobacco companies. You can put it is anything unethical, we could go to and dismayed I am to get into this par- the companies out of business. We have the company lawyers who are now ticular situation. The record ought to a mob scene here, a lynch mob coming being investigated for conspiring with reflect it. When we saw the chairman forward; get rid of the company. the company executives on how to of the Agriculture Committee who said Every time we agreed on something, avoid these charges and everything else he had seen polls and everybody in to- Senator MCCAIN and I heard from dif- of that kind. bacco farming wanted to get out of it, ferent groups, ‘‘more, more, more, they Man, oh, man, talk about being un- which is out of the whole cloth. I have are liars,’’ they are this, they are that. ethical, after the abuse and the chal- been traveling to tobacco farmers, Let’s agree on all of that, you can put lenge they have been through. There is campaigning, crisscrossing all over the them out of business. Then MCCAIN and a little attorney general down there in State. I never saw the tobacco farmers HOLLINGS can start their own tobacco Mississippi. I was just watching it the trying to get out of the business, but company or maybe it would be SES- other night. I was not that familiar that is what he said. SIONS and HOLLINGS. It would be a pret- with him—Mike Moore. He literally I said we are really in trouble. The ty good business. All we have to do is was sued by his own Governor trying to distinguished Senator from Kentucky, get the tobacco from Turkey. We don’t bring tobacco to the bar of justice. But Senator FORD, and I, we have the have any false records they can go and he stuck to his guns. Maybe they call LEAF Act and, yes, we positioned it. embarrass us with—juries and every- that unethical bringing that case We knew what we were doing because thing else of that kind. We can go back against the industry, or a contingent the distinguished chairman of the Com- and get old Joe Camel and start adver- fee is unethical. But it goes for the merce Committee came to me and said, tising again. Ain’t nothing wrong with ‘‘every mother’s son’’ the best of coun- ‘‘Evidently, they are going to have a that. They tried end on end before the sel. And corporate America and the tough time getting a bill out of any courts to kick out their advertising, Chamber of Commerce does not like committee, and the majority leader constitutional right, first amendment, that. asked if we can get one out of our com- and we can go make a living, and what Billable hours, good Lord have mittee. I would like to have it biparti- has happened? Nothing for the chil- mercy, we are going to get into a good san,’’ the chairman said. I said, ‘‘I dren. debate on billable hours. And there are would like to have it bipartisan, too, So that is a pretty good political cha- 60,000 of them registered to practice in but we have to take care of the farm- rade to come out on the floor of the the District of Columbia, 60,000—oh, ers.’’ Senate and say, now, is it tax or is it they got all lawyers in Japan right He hesitated a few days and came for the children, and analyze it in this here in the District—59,000 will never back and said, ‘‘All right, we will take tricky mind as being just a tax. It is an see a courtroom or know anything care of the farmers.’’ And we went all increase in price. You don’t have to about law. It’s fixing me and fixing this the way down to Florence and said the pay it. It is voluntary. I quit smoking. one and that one. It’s fixing the jury. LEAF Act was taken care of, taking They say more than half of the people Unethical? Unethical? I want to hear care of the farmers. The President of could quit smoking. Yes, it is addictive what is unethical about trial lawyers the United States went out to Ken- to some, just like alcohol. We could say compared to the billable hour crowd. tucky and said the LEAF Act is taking get rid of Ronald McDonald, advertis- But back to the Senator from Texas, care of farmers. We had five con- ing fat for the children. Go after that. and he was talking about the amount ferences trying to get this bill finalized With that, I can agree with the Senator of money, the billions here, to buy out with the White House, with the Repub- from Texas. the farmers. At least we are paying the lican majority and with the Demo- When you come right down to it, it is farmers who have been making a good cratic minority to work out what we a balancing act that we are engaged in, living to get out of that, not for those could, to get a comprehensive policy and nobody wants to acknowledge it. who didn’t make a living, went broke, and get it over to the House side. Each We can get rid of the tobacco compa- and we came and gave them food time we checked, the LEAF Act was nies, but that does nothing for us at stamps to the tune of 431 billion bucks, there, undisturbed. all. It doesn’t do anything for the Resolution Trust Company. Half of it Now, last night, out of the clear health community. It doesn’t do any- was in the State of Texas. We bought blue—which is one of the reasons I thing for the children. It doesn’t do every swimming pool, every tennis wanted the floor—we get Senator anything for the payments to be made. court, every golf course, every country LUGAR’s bill which had one hearing last This is money going back to the club that you could possibly imagine. fall, I think last September, according States. It doesn’t do anything for the It was improperly financed. You and I to the record, never a markup, and get programs. It doesn’t do anything for know it. Over $200 billion to one State. this whining out here about equal the look back. It doesn’t do anything But they want to talk about honest, treatment. Why we have to give him— to anything. hard-working tobacco farmers out the Agriculture Committee likes the So these people that run around and there at the sweat of their brow being bill, had been marked up and reported, want $1.50 and more and more and bought out of this particular business, like ours had been worked upon. No, we more, don’t even understand the prob- coming up here with all these fanciful have been hedging against that non- lem, don’t even understand what we figures; $18,000 an acre—that takes care sense of the Lugar approach since last are trying to do on the floor of the Sen- of the warehouse, that takes care of fall and working around the clock, ate with the tobacco bill. the bank on the loan, that takes care locking down everything, and they We are trying to go along with re- of the equipment, that takes care of come and tell us that they couldn’t spectable companies—yes, they did the community, that takes care of his avoid it. They had to get a majority of stand up and falsely state that they children. the Commerce Committee members. I didn’t think it was addicting and ev- When he is out of the business, how am dismayed the chairman voted with erything, but those folks are gone. If do you send them to college? So you let that majority. After all our work try- you don’t think they have exactly, just them come in on Pell grants. Yes, it is ing to work together. That explains my tell the truth. Go over to the Defense a comprehensive approach. The LEAF statement yesterday about the biparti- Department and get their civil and Act is intended, because we saw last sanship. criminal docket and you will find true fall that the chairman of the Agri- Now, back to just exactly what we blue chip corporations of America try- culture Committee wanted to just put have here with respect to being victim- ing to defraud the government at every them out of business, and not take care ized and everything else of that kind. I turn. It is a sad thing. of the communities. think that agreement, having been Then I have to look up here at mini- I have I don’t know how many farm- worked out within the Commerce Com- mal ethics in the business crowd. I ers in South Carolina, I think about mittee and all of these conferences and talked to my friend, Tom Donohue, 2,000 tobacco farms, over $200 million, a everything else, was a pretty judicious yesterday and I worked with him. I

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5095 have every chamber of commerce charge, because we won. When we lost, The legislative clerk read as follows: award that you could possibly get. we assumed all the costs. Everybody The Senator from North Carolina (Mr. But to get up here and let this legal- knows just that. What has been unethi- FAIRCLOTH), for himself, Mr. SESSIONS, and istic crowd take over and start control- cal, according to the testimony made Mr. MCCONNELL, proposes an amendment ling—here is the Republican movement to that attorney general down there, is numbered 2421 to the modified committee that doesn’t want to have price con- the companies have been unethically amendment. trols, wants to deregulate, wants to get engaged and the Chamber of Commerce Mr. FAIRCLOTH. Mr. President, I rid of the Government, and now wants has been supporting them. ask unanimous consent that reading of to fix prices, wants to fix fees. How can I hope the Senator from North Caro- the amendment be dispensed with. you tell when these lawyers have really lina will amend the words there on The PRESIDING OFFICER. Without made the case? It isn’t an hourly thing. ‘‘minimal ethics.’’ objection, it is so ordered. Until last June, there wasn’t any case. I yield the floor. The amendment is as follows: At the appropriate place, insert the follow- Nobody has made any—they have got- Mr. MCCAIN addressed the Chair. ing: ten some settlements. I know the best The PRESIDING OFFICER. The Sen- Sec. . Limit on Attorney’s Fees. of the best from my hometown tried ator from Arizona. (a) FEE ARRANGEMENTS.—Subsection (f) one for ancillary smoke—what do you Mr. MCCAIN. Mr. President, I ask at shall apply to attorneys’ fees provided for or call it? Voluntary smoke? Involuntary this time unanimous consent that Sen- in connection with an action of the type de- smoke? Whatever it is—up in Indiana ator FAIRCLOTH be recognized to offer scribed in such subsection under any— during the months of February and an amendment. (1) court order; March, and even he lost that. Mr. President, we still have one (2) settlement agreement; We are saying that you are not going Member on our side who needs to be (3) contingency fee arrangement; (4) arbitration procedure; to have any more immunity, or have a contacted. (5) alternative dispute resolution proce- limit on the immunity. They can still I seek at this time that Senator dure (including mediation); bring individuals. They can still bring FAIRCLOTH be recognized to offer an (6) retainer agreements; or class actions. Everything is still in the amendment, and that we proceed under (7) other arrangement providing for the commerce bill. the understanding that no second-de- payment of attorneys’ fees. I would like to have given what they gree amendment be in order to the (b) REQUIREMENTS.—No award of attorneys’ promised last June—the immunity. amendment until the motion to table fees under any action to which this Act ap- plies shall be made under this Act until the But we did put an $8 billion cap on it. is made at 4 p.m.; that, if the amend- attorneys involved have— But the reason for giving any immu- ment is not tabled, the Senator from (1) provided to the Congress a detailed time nity is that the juries of America have South Carolina, Senator HOLLINGS, be accounting with respect to the work per- given them immunity, period. They recognized to offer a relevant second- formed in relation to the legal action in- know the assumption of risk and every- degree amendment; and the time be- volved; and thing else of that kind. It has been out tween now and 4 be equally divided. (2) made public disclosure of the time ac- there 30 some years. By the time we Mr. President, this body proceeds on counting under paragraph (1) and any fee ar- get along with some petitions before comity. I would like to proceed under rangements entered into, or fee arrange- ments made, with respect to the legal action the court and everything, it will be 40 that understanding, and as soon as we involved. to 50 years, and everybody will have contact one Member, then we will put (c) APPLICATION.—This section shall apply known about it; you won’t be able to this into a formal unanimous consent to fees paid or to be paid to attorneys under get a verdict against the companies. agreement. any arrangement described in subsection So we who are responsible for public At the moment, I would like to ask (a)— policy are also at a crossroads. There is for my colleagues’ indulgence so that (1) who acted on behalf of a State or politi- cal subdivision of a State in connection with a pool of opportunity draining out on Senator FAIRCLOTH can be recognized any past litigation of an action maintained us. We ought to be acting this year. We to offer his amendment. by a State against one or more tobacco com- ought to be acting this week. We ought Mr. HOLLINGS. If the distinguished panies to recover tobacco-related medicaid to get with this thing on a realistic leader will yield, I understand we are expenditures; basis and how we brought this bill out, coming back at 2:15. I was trying to get (2) who acted on behalf of a State or politi- and not engage in trickery and come an hour on our side. cal subdivision of a State in connection with back in and take a bill that never was Mr. McCAIN. We will proceed under any future litigation of an action maintained reported out of the committee, never that understanding, and we will at- by a State against one or more tobacco com- onto the floor, never in debate, and tempt to put it into a unanimous con- panies to recover tobacco-related medicaid expenditures; say, ‘‘Stick it in, because we can fix sent agreement between now and the (3) who act at some future time on behalf the majority on the Commerce Com- next 5 or 10 minutes, and, if not, to try of a State or political subdivision of a State mittee.’’ I am saddened to see that. I to have it between now and by 2:15 in connection with any past litigation of an never have seen that happen before. I when we return. action maintained by a State against one or checked with the Parliamentarian. I yield the floor. more tobacco companies to recover tobacco- They said yes, it could happen. But I Mr. FAIRCLOTH addressed the related medicaid expenditures; never have seen that and it was sad to Chair. (4) who act at some future time on behalf of a State or political subdivision of a State see. The PRESIDING OFFICER. The Sen- ator from North Carolina. in connection with any future litigation of I have a lot of other things here that an action maintained by a State against one we could touch upon, but the distin- Mr. FAIRCLOTH. Mr. President, I or more tobacco companies to recover to- guished Senator from North Carolina suggest the absence of a quorum. bacco-related medicaid expenditures; has been waiting. I hope when he does The PRESIDING OFFICER. The (5) who acted on behalf of a plaintiff class present his amendment, that he clerk will call the roll. in civil actions to which this Act applies amends the words ‘‘minimal ethics.’’ I The legislative clerk proceeded to that are brought against participating or don’t know that any trial lawyer—they call the roll. nonparticipating tobacco manufacturers; (6) who act at some future time on behalf win some cases, but they lose a lot of Mr. FAIRCLOTH. Mr. President, I ask unanimous consent that the order of a plaintiff class in civil actions to which cases. this Act applies that are brought against As between the billable hour crowd for the quorum call be rescinded. participating or nonparticipating tobacco and those working for the client rather The PRESIDING OFFICER. Without manufacturers; than for themselves, because the clock objection, it is so ordered. (7) who acted on behalf of a plaintiff in keeps running, that is the most vicious AMENDMENT NO. 2421 TO MODIFIED COMMITTEE civil actions to which this Act applies that thing that ever happened to my profes- AMENDMENT are brought against participating or non- sion—this billable hour group. That is (Purpose: To limit attorneys’ fees) participating tobacco manufacturers; (8) who act at some future time on behalf the worst thing I have ever seen occur, Mr. FAIRCLOTH. Mr. President, I of a plaintiff in civil actions to which this because I practiced law—never with send an amendment to the desk. Act applies that are brought against partici- billable hours; I got results for that cli- The PRESIDING OFFICER. The pating or nonparticipating tobacco manufac- ent. Then he understood that was the clerk will report. turers;

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5096 CONGRESSIONAL RECORD — SENATE May 19, 1998 (9) who expended efforts that in whole or in Mr. FAIRCLOTH. I do not object. taken place so far, take a wild guess at part resulted in or created a model for pro- The PRESIDING OFFICER. The Sen- what the major issue of controversy grams in this Act; ator is recognized until 12:45. has been? (10) who acted on behalf of a defendant in Mr. FAIRCLOTH. So, Mr. President, For those of you who have not been any of the matters set forth in paragraphs (1) who are these ‘‘superman’’ lawyers who paying attention, it has been attor- through (9) of this subsection; or (11) who act at some future time on behalf deserve to be paid more than 20,000 neys’ fees for the private plaintiffs’ at- of a defendant in any of the matters set forth times the salary of a working Amer- torneys who were brought in to help in paragraphs (1) through (9) of this sub- ican? the states sue the tobacco companies. section. Well, one of them is Hugh Rodham, In the State of Texas, for example, (d) REPORT.— the President’s brother-in-law. He is on their $15 billion settlement is tied up (1) Each attorney whose fees for services line to get $50 million as a Castano because the Texas trial lawyers de- already rendered are subject to subsection group lawyer. Let me tell you about manded over $2.3 billion for their work. (a) shall, within 60 days of the date of the en- the hard work that he has done to get These demands are ridiculous, and if actment of this Act, submit to Committees on the Judiciary of the House of Representa- this big fee. Let me tell you about his we approve the McCain bill, we will be tives and the Senate a comprehensive record background that made him so impor- approving such billion dollar deals for of the time and expenses for which the fees tant to this group of trial lawyers. these trial lawyers. are to be paid. Such record shall be subject Well, actually, let me just read a cou- Yes, the McCain bill provides the op- to section 1001(a) of title 18, United States ple of quotes from major newspapers to tion for attorneys to use an arbitration Code. describe his work. panel to determine reasonable fees, but (2) Each attorney whose fees for services ‘‘And just for good measure, the state what attorney would be foolish enough rendered in the future are subject to sub- of Florida has hired Hugh Rodham (Hil- to seek reasonable fees if they can get section (a) shall, within 60 days of the com- lary Clinton’s brother) to be a part of $2.8 billion. And, what is considered pletion of the attorney’s services, submit to Committees on the Judiciary of the House of their litigation team, despite his com- ‘‘reasonable’’ in this climate? Representatives and the Senate a com- plete lack of experience in these types It is ironic that these trial lawyers prehensive record of the time and expenses of cases.’’ That’s from the Knoxville were brought in by the various States for which the fees are to be paid. Such record News-Sentinel on July 20, 1997. to pursue claims on behalf of the tax- shall be subject to section 1001(a) of title 18, Here is another choice description of payers in those States. United States Code. the fifty-million-dollar man and his in- That is, they have been brought in to (e) SEVERABILITY.—If any provision of this valuable work. stand in the shoes of our State govern- section or the application of such provision Hugh Rodham ‘‘spen[t] the last hours ments and their taxpayers. But I ask to any person or circumstances is held to be of the June 20th settlement talks in a you: who ultimately will be the great- unconstitutional, the remainder of this sec- est beneficiaries—the taxpayers or the tion and the application of the provisions of corner reading a paperback by Jack such to any person or circumstance shall not Higgins, ‘Drink with the Devil.’ ’’ lawyers? Experience has already pro- be affected thereby. That’s from the Washington Post on vided us with an answer. (f) GENERAL LIMITATION.—Notwithstanding June 23, 1997. We should not forget how the deck any other provision of law, for each hour Mr. President, I don’t believe that has been stacked with respect to these spent productively and at risk, separate from this amendment needs much more jus- State lawsuits. It was only when State the reimbursement of actual out-of-pocket tification than that. Fifty million dol- governments decided to use their expenses as approved by the court in such ac- lars to sit there reading a book. weight, leverage, and resources to go tion, any attorneys’ fees or expenses paid to But, if that isn’t enough, let me talk toe-to-toe with the tobacco companies attorneys for matters described in sub- about the Texas trial lawyers. These that these companies decided to settle section (c) shall not exceed $250 per hour. fine lawyers will get $88,000 per hour. the cases. Mr. FAIRCLOTH. Mr. President, I am This means $88 million per lawyer. States legislatures have even offering this important amendment be- What more can I say? changed the laws mid-stream and cause we cannot allow this tobacco bill Well, here’s something. The money retroactively to tilt the balance in to turn into ‘‘Wheel of Fortune’’ for will be paid from money that was sup- their favor. trial lawyers. That is why my amend- posed to go for Medicare. Who do we The most recent example of this was ment caps attorney fees at $250 per pay—the sick and elderly or the greedy in April when the Maryland General hour. lawyers? Assembly voted to change the law to Under the current bill, trial lawyers Mr. President, there is a major politi- permit the State of Maryland to seek will get some $4 billion per year. Bil- cal force at work behind the scenes in compensation for taxpayer money paid lion—with a ‘‘b’’. And this is a conserv- this tobacco legislative effort. I’m not for smoking-related illnesses. ative estimate—assuming a 15 percent talking about so-called ‘‘big tobacco.’’ They first sued the companies, then contingent fee. The Medicaid cases will What I’m talking about is the trial realized winning the lawsuit perhaps generate $1.2 billion per year. The tort lawyers. was not going to be quite as easy as cases will yield some $2.8 billion per They negotiate settlements in the they first thought. They then went to year. millions of dollars, and they take fees the Maryland legislature and had the A Florida circuit court judge, Harold in the millions of dollars, dwarfing law changed retroactively so that their Cohen, estimated their fees at $185,186 what their clients get. They also stand lawsuit against tobacco companies per hour. to be the biggest winners if the tobacco would be considerably easier. Let’s see how this compares to regu- settlement is enacted—a fact that ap- You can be sure that the Maryland lar Americans. pears to have become obscured in this plaintiffs’ attorneys who stand to have The average physician earns $96.15 debate. a huge pay day as a result of this law- per hour, the average lawyer makes Now, with this national tobacco liti- suit were closely involved in lobbying $48.07 per hour, pharmacists make gation settlement before us, we’re not the legislature on changing the liabil- $25.98 per hour, police officers earn just talking about millions of dollars, ity law. $16.65 per hour, carpenters make $13.03 or tens of millions of dollars, or even I’m not saying that the attorneys’ per hour, automobile mechanics earn hundreds of millions of dollars. should not be reasonably compensated $12.35 per hour, barbers make $8.37 per We are talking about tens of bil- for the hours and energy they have hour, and bakers earn $7.65 per hour. lions—with a ‘‘b’’—of dollars that will spent in helping the States reach these The PRESIDING OFFICER. Under be transferred from the pockets of av- settlements. the previous order, the Senate is to re- erage smokers in this country into the All I am saying is that it is out- cess at 12:30. That hour having ar- coffers of a handful of trial lawyers. rageous to say that a group of plain- rived—— I have read published reports that tiffs’ attorneys should be allowed to Mr. HOLLINGS. Mr. President, I ask the trial lawyers are estimating that enrich themselves under the guise of unanimous consent it be extended until they will make upwards of $15 billion claims on behalf of taxpayers. These 12:45. to $20 billion. That is hard to fathom. are the same taxpayers on whose back The PRESIDING OFFICER. Is there To illustrate, in the two biggest indi- the spending in the McCain bill will objection? vidual State settlements that have fall.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5097

Let’s also look at how this relates to Mr. MCCAIN. I yield the floor. friends. Incidentally, I should say this, our past debates over tort reform. The The PRESIDING OFFICER. Who that the corporate friends have been motivation behind national tort reform yields time? mine over the many, many years, as is that our system of justice has been Mr. HOLLINGS addressed the Chair. they well know from my votes here in distorted by a group of trial lawyers The PRESIDING OFFICER. The Sen- the U.S. Senate. And we are very proud who caused the litigation explosion in ator from South Carolina. of the industrial development we have this country. AMENDMENT NO. 2421 in South Carolina and the efforts of our At a minimum, it is highly ironic Mr. HOLLINGS. Mr. President, in re- Chamber of Commerce there. They are that we are now talking about passing sponse to my distinguished colleague highly regarded, highly respected. But a national tobacco settlement bill that from North Carolina, Senator FAIR- they had not gotten into this limbo, so will handsomely reward the very same CLOTH, as the saying goes around to speak, of being unethical when you trial lawyers who have so badly cor- here—and it is genuine—I have the win a case. rupted our justice system. greatest respect and friendship for the Specifically speaking, going to law- None of us should turn a blind eye to distinguished Senator. He and I have yers generally, it is the genius of the fact that the debate on tobacco set- known each other for a good 30, 40 America that fashioned this great Re- tlement legislation, under the guise of years almost. public. Lawyers, if you please, you can protecting youth, is really a debate I really am a little dismayed and dis- go back, Mr. President, to the earliest about the pot of gold that potentially appointed to see this assault on attor- days. ‘‘Is life so dear or peace so sweet awaits the trial bar. neys’ fees in the context of what is eth- as to be purchased at the price of And that’s not to mention the ‘‘tax ical on behalf of trial lawyers. When chains and slavery? Forbid it, Al- and spenders’’ who want to fund a host they put a billboard up with respect to mighty God. I know not what course of social programs unrelated to to- ethical practices and making mil- others may take, but as for me, give bacco. Not only are we standing here lions—we will get the board, I guess, debating a huge tax increase on work- me liberty or give me death!’’—a law- and have it displayed. ing men and women, we are simulta- yer, Patrick Henry. But let me say a word, Mr. President, Or otherwise that 30-some-year-old, neously opening a can of worms. We’re talking about sanctioning a about lawyers themselves. A lot has oc- with quill in hand, seated at that table, handful of attorneys’ attempts to en- curred over my few years of public ‘‘We hold these truths self-evident, rich themselves at the expense of the service. In the early days, what we had that all men are created equal.’’— clients—in this case, taxpayers—they in the State legislature was about 85 Thomas Jefferson, the lawyer. purport to represent. I urge all my col- percent of the membership was practic- The most applicable one, Mr. Presi- leagues to give this serious thought. ing attorneys. Today, fewer than 15 dent, to this present day, ‘‘But what is This tobacco bill is not a lottery. percent are practicing attorneys. That government itself, but the greatest of This is not ‘‘jackpot justice’’ for trial has come about, in a sense, as a result all reflections on human nature? If lawyers. The trial lawyers are playing of billable hours. men were angels, no government would ‘‘Wheel of Fortune’’ with the taxpayers When we came out of the war and set be necessary. If angels were to govern money and it must be stopped. up our practices, what really occurred men, neither external nor internal con- I urge you to support my amend- was we had to do services for the cli- trols on government would be nec- ment. ent, whether it was in the field of real essary. In framing a government which f estate, whether it was in the field of a is to be administered by men over men, criminal charge, or whatever. It was an the greatest difficulty lies in this: you RECESS agreed-to fee or, in many instances, a must first enable the government to The PRESIDING OFFICER. The Sen- contingent fee on winning the case. control the governed and in the next ate stands in recess until 2:15. That is how I grew up as an attorney, place oblige it to control itself.’’—that Thereupon, at 12:47 p.m., the Senate which characterizes me now as a ‘‘trial is our problem now—James Madison, a recessed until 2:14 p.m.; whereupon, the lawyer’’—I hope not an unethical one. lawyer. Senate reassembled when called to I was listening very closely to the Or the Emancipation Proclamation— order by the Presiding Officer (Mr. Senator from North Carolina. The best Abraham Lincoln, a lawyer. Or in the COATS). I can tell is he used the expression darkest days of the Depression, bring- f ‘‘litigation explosion.’’ We can get into ing about not only economic revival, NATIONAL TOBACCO POLICY AND that. We have debated that, and we but equal justice under law, ‘‘All we YOUTH SMOKING REDUCTION ACT found through various studies made by have to fear is fear itself.’’—Franklin the Rand Corporation for corporate Roosevelt, a lawyer. Or giving sub- The Senate continued with the con- America that there is no litigation ex- stance to equal justice under law— sideration of the bill. plosion. Thurgood Marshall. Mr. MCCAIN. Mr. President, I suggest ‘‘Corrupted our justice system.’’ The I know the abhorrence some have for the absence of a quorum. nearest thing I could find out was the my friend, Morris Dees, down there The PRESIDING OFFICER. The fee itself, and it was too large, as the with the Southern Poverty Law Cen- clerk will call the roll. The legislative clerk proceeded to distinguished Senator surmised, and ter, or with Ralph Nader keeping the call the roll. that in itself was unethical. conscience clear with respect to con- We know that people make money. I Mr. MCCAIN. Mr. President, I ask sumer safety in America. But these are unanimous consent that the order for understand that the fellow on Headline lawyers who are out leading the way. the quorum call be rescinded. News today, William Gates, a very, There is no question, Mr. President, The PRESIDING OFFICER. Without very successful entrepreneur, never that there is no higher calling for a objection, it is so ordered. completed college, but he is a genius profession than to eliminate itself. If Mr. MCCAIN. Mr. President, I ask with a business worth some $39 billion. the ministers could eliminate all sin unanimous consent that no second-de- He makes, doing nothing, just $125,000. and the doctors all disease, we lawyers gree amendments be in order to amend- I know he has a modest salary, but it are burdened with the challenge of try- ment No. 2421 prior to a motion to would only go to the tax folks. But he ing to eliminate injury in cases. When table to be made at 5 p.m. I further ask operates, and he operates very success- I first came to the Senate that was unanimous consent that if the amend- fully. They have 21,000 employees there really what was at hand, what you ment is not tabled, Senator HOLLINGS at that Microsoft entity. Every one of might call class actions. be recognized to offer a relevant sec- the 21,000 is a millionaire due to the Up there in Buffalo, NY, Love Canal, ond-degree amendment and that the leadership and accomplishment of Mr. toxic fumes, poisonous air. And as a re- time between now and 5 p.m. be equally Gates. sult of the class actions there, the next divided. Now, that is what is to be considered thing you know what we had was the The PRESIDING OFFICER. Is there when we talk about trial lawyers tak- Environmental Protection Agency, objection to the request? Without ob- ing on a noncase and developing a case. which in and of itself, despite those jection, it is so ordered. That really nettles my corporate who criticize the bureaucracy of it, has

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5098 CONGRESSIONAL RECORD — SENATE May 19, 1998 eliminated not only the injury and not only to get nothing had it not suc- one thing unethical other than they drinking their own sewage and breath- ceeded—and none have succeeded so won the case and they will get a good ing their own toxic fumes, but elimi- far. I repeat, no one has sued a tobacco fee. They deserve every dime of it and nated thousands and thousands of indi- company and gotten a jury verdict as more. They ought to get some kind of vidual cases. of this minute, period. But they said, award from the health community be- Then next, of course, we had the mat- we think we can do it if you let us try; cause this will save us billions and bil- ter of the asbestos cases. We had the and we will take it on a contingent lions of dollars in cost, in health care, cases with respect to the Dalkon basis. I do not know what the percent- hundreds and thousands and perhaps Shield, breast implants; we had the age is down in Florida or Texas or Mis- millions of lives from cancer deaths. cases of the little children burning up sissippi where they have settled—some- Not Dr. Kessler, not Dr. Koop, but in flammable blankets in their cribs. where around 10, 15 percent or what- Mike Moore, Dickey Scruggs, Ron Mot- And we got the Consumer Product ever. ley have done more to save people from Safety Commission. I just talked the The States, the health community, cancer than Koop and Kessler com- other day to the chairman there who is the U.S. Government had nothing to bined, and Koop and Kessler have tried doing the outstanding job that she is lose. The lawyers bringing this pioneer- their best, but there is more than one doing at the Consumer Product Safety ing, if you please, health care for all of way to skin a cat. No one in Congress Commission looking at all of these par- America, they had everything to lose. was at that table. There wasn’t any ticular instrumentalities. In fact, a fine attorney general down Senator—‘‘I introduced the bill.’’ There And good corporate America does there, Mike Moore, had to really with- wasn’t any Congressman, ‘‘I sponsored, just that. The J.C. Penney Company— stand being sued by his own Governor I cosponsored,’’ all of this ‘‘I’’ stuff. there is no more outstanding firm. I of his own State of Mississippi trying Now they have a lynch mob going on have visited their laboratories where to prevent him from bringing the case. because the polls show that lawyers are they have instituted safety tests of all Don’t give me this billable hours or unpopular, particularly trial lawyers. the articles to be sold, particularly in $180,000 an hour or $5 an hour or what- I have a friend in town here, sends the field of children’s toys, and what ever it is. This isn’t any hourly thing. me a thank-you note at Christmas, have you. So the trial lawyers brought This is a no-case situation whereby you Victor Schwartz. We have been in this that about. turn around and have to pay legal fees routine 20 years. Victor represents the And, Mr. President, just this past to defend yourself in order to bring the business round table and the Chamber week I noticed a little squib in the case, and he withstood that for a year of Commerce, and he gets the con- Times. They had down there that Ford in the courts with his reputation rel- ference board and he gets all these re- Motor Company had recalled an engine. atively ruined, but holding on. Then tainers so long as he doesn’t win the They took the initiative of recalling after they won that, they literally had case. It reminds me of Sam Ervin’s fa- 1,700,000 pickup trucks because the link to hide the witness and secure his safe- mous story about the doctor who prac- bolt on the wheel was loose. The wheel ty because they had a whistleblower in ticed there in Monroe, NC, for some 32 threatened to come off and cause an in- one of the companies who was willing years all by himself. Finally, he had a jury. to bring forth the records and say here young son who graduated from medical Now, Ford Motor Company was not they are, here is the actual fact within school and he turned to him and said, particularly enthused about safety, we the company records, here is what they ‘‘Son, I haven’t had a vacation in 32 know, because back in 1978 Mark Rob- stated, here is what their research years. I am taking off with your moth- inson had to bring that Pinto case. And found, here are their plans on advertis- er for a couple of weeks.’’ He comes they got a verdict of $3.5 million actual ing and here are the ingredients they back and the son walks up to him and damages and a verdict of $125 million also included in order to bring about he says, ‘‘You know Ms. Smith, punitive damages. No, they never col- addiction. They had to hide the wit- Daddy?’’ ‘‘What about her?’’ He said, lected a dime, I don’t believe, for those ness. ‘‘There is really no arthritis in her punitive damages. Don’t give me billable hours. I don’t back, I got that thing cured.’’ He said, But I say to the Senator from North know how much hog farmers make. I ‘‘Oh, my heavens. That is the patient Carolina, I can tell you now, that saved am waiting for my friend to come back, that sent you through med school. Why a lot of injury and a lot of cases, be- but I know the lawyers make nothing did you do that?’’ cause Chrysler has just had a recall unless they succeed in bringing this You can solve cases, but that is our that I saw in the news. And you can go case. Now, of course, having done that, problem with most lawyers now. As right on down. That brought about at- and getting these other lawyers in, his long as they can get a continuance, as tention to safety and people not burn- friend, Dickey Scruggs, and Ron Mot- long as they can make a motion, as ing up and having the wheels lock on ley from my State of South Carolina, long as they can delay, as long as they them, and those kinds of things, and they had an expert approach. If a bureaucratize the judicial system—and coming off and causing that injury. painter paints a $10 million painting, I that is the corporate defendant crowd. That brings us, Mr. President, to the don’t know how much he gets an hour The plaintiff doesn’t win until he con- present case at hand, which, in essence, for painting it, but you have to have cludes a case. He has no time; he has was not a case at all. I never heard of expertise. about five or six cases waiting, a lot of bringing in, in a class action, the to- The ingenuity of using the RICO pro- time out there, a lot of money, a lot of bacco companies and getting them to vision of the distinguished Senator time investigating everything else. agree not to sell their product, but from Utah, that is what they did. They What happens is that he finally scores, rather to advertise adversely not to said we can use the RICO provision and but he not only scores for himself, he sell, not to attract; on the other hand, really go after them. And that was a scores here in this particular case for agreeing, if you please, to a look-back wonderful, ingenious approach to the all of America, because they met last provision whereby they would be bur- actual trial of this particular class ac- June and they had the sensibility not dened with the beauty of diminishing tion. You have to understand all along to be greedy. The inference is that you business for themselves, tobacco con- nobody over the 3-year period is paying have a greedy bunch that is unethical; sumption, particularly in the field for anybody a red cent when they talk they are getting too much. Not at all. little children, and raising the price of about billable hours. So they brought The fact is, they had the sensibility their product whereby the moneys their case, they struggled along, and to say, like Kansas City, there is only would go then to the attorneys general they got right to the point where it so far that we can go. There has to be and the U.S. Government to help pay was going to be exposed, that particu- balance. If we put them out of business, these expenses, and so forth. That was lar record of the unethical. if we continue to pressure and take le- not a case that was just filed and tried My distinguished friend on the other gitimate companies out of business, a few weeks later, and they got a ver- side of the aisle has a sign up there then what will happen is that new- dict. about ethical; it is the unethical con- comers without these records that are On the contrary, it was a long, hard, duct of the corporate lawyers, not the really bringing about the settlements contingency struggle with a guarantee trial lawyers. They have not mentioned for us, they won’t have any records of

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5099 any kind of additives. They won’t have new War on Tobacco, in exchange for packs sold in California today is con- any records of any kind of lies to Mem- certain changes in the law, such as a traband. Can you imagine what is bers of Congress or anything of that more predictable litigation environ- going to happen if this bill forces to- kind. They won’t have any records of ment. bacco prices up to between $4.50 and agreeing not to advertise or agreeing In order to devise a bill which is $5.00 per pack? to advertise adversely to children, or workable and which will not be liti- There is an additional implication agreeing to a look-back provision. gated for years, we have to respect the that, with the exception of our col- What we will do, like Samson, is pull legal boundaries imposed by our Con- league from Texas, Senator GRAMM, down the temple walls and ruin us all stitution, that great document upon and our colleague from Illinois, Sen- and we will have gotten nowhere. which our Country was founded. Con- ator MOSELEY-BRAUN, no one is focus- Now, we understand here this week stitutional scholars have examined the ing on. we can get nowhere. We can start with provisions incorporated in the Com- Who will bear the brunt of these in- lawyer fees. We can start with $1.50, $2 merce bill, and have found them to be creased costs, of these new payments a pack, up, up and away. We can have lacking. intended to curb youth smoking? It is impossible look-back penalties and ev- For example, public health experts adults at the lower end of the economic erything else of that kind, but this have testified before our Committee spectrum. For example, almost one- isn’t the end of Congress. We will be that advertising restrictions are an im- third of people with incomes below back and we can always amend what portant weapon in any new War on To- $10,000 per year are smokers. we never have tried before, like look- bacco. But legal scholars have also cau- It would be better to bring this back and nonadvertising agreements. tioned that those restrictions must be agreement into some perspective where But my counsel is let’s move on with drafted in a manner which is constitu- we can get the tobacco companies on the provision of the commerce bill tionally permissible—which, by the board, however reluctantly. which says simply as to the agree- way, this bill is not. I would like nothing more than for ments made within the States, we As chairman of the Judiciary Com- them to pay $1 trillion per year. But don’t disturb them—all of them, as mittee and as someone who has been the practical reality is that that will best I can tell, are under arbitration. concerned about constitutional prin- not happen. They will either move off- But as to the new agreements made for ciples during my tenure in office, I shore or go bankrupt first, and they lawyers, they are subject to arbitration must caution that unless this bill is will be totally beyond our control. for both sides and approved by the changed in some very fundamental as- If we design a program which does court itself. Now, there is nothing un- pects, we will wind up in 10 years of not have their open opposition, which ethical or untoward or whatever it is. litigation over a variety of issues, not is modeled on their voluntary agree- The beginning lawyers who made the the least of which will be constitu- ment of June 20, 1997, we will have ef- case are deserving. The others who are tional issues that will literally cause fective accountability, because we will piling on deserve a heck of a lot less. more problems than anyone ever envi- have look-back provisions that are con- We all know that. sioned. stitutional. We will have an effect ban So we are not just setting an example During each of those years, one mil- on advertising provisions, because here of $185,000 for nothing but trial lion more kids will become addicted to without their compliance Congress lawyers as the thing is depicted at the tobacco and will die prematurely be- cannot enact stringent advertising re- present time. cause the Congress is pursuing a con- strictions. In short, without the reluc- I can see we have some others that stitutional collision course which could tant agreement of the tobacco compa- would like to be heard at this particu- ultimately render substantial parts of nies, we will not have the comprehen- lar time. I yield the floor. the Commerce bill null. sive program that many of us want. The PRESIDING OFFICER. Who It is important to note that, while Having said that, I have listened yields time? the tobacco companies voluntarily carefully to my colleague from South Mr. HOLLINGS. I yield time to the agreed to the $368.5 billion amount, Carolina. distinguished Senator from Utah. they have refused to agree to the Com- It is well known that I have been an Mr. HATCH. I am very concerned merce bill’s $516 billion price tag. advocate for legal reforms. about this and a whole raft of other We have all seen estimates that the It is well known that I am supportive amendments as well. Commerce bill will add $1.10 to the of product liability reform. First of all, I think we need to exam- price of a pack of cigarettes in the next It is well known that I have not been ine the context in which this amend- five years. What that Treasury esti- someone who just is a rubber stamp for ment is being debated. mate does not take into account are the trial lawyers of America, even If the members of this body succumb any increases due to State excise taxes, though I have been one myself. to the temptation to ‘‘pile on’’, to wholesaler or retailer markups, attor- It is well known that I think there ‘‘out-tobacco’’ Big Tobacco—and that neys fees, reductions in volume due to are excesses in the law. is surely where we are headed—we will increases in black market sales, or im- But I think we go a long way toward guarantee that the tobacco companies position of ‘‘look-back’’ penalties. being excessive as a Congress if we are not part of the equation. Let us be real. The manufacturers, start setting fees for professionals in Why should we care about this? To- for instance, added 5 cents per pack our society, professionals who are not bacco causes cancer and a panoply of solely because of just one State settle- directly participating in a government other serious diseases. The companies ment, the Minnesota settlement. program. have known this for literally decades; The $1.10 figure is a myth. If we allow ourselves to start dictat- they have known nicotine makes their During the course of 10 hearings on ing what fees have to be paid to certain products addictive. They have contin- the tobacco issue, the Judiciary Com- professions in our society, however ued to market their products, and to mittee heard an abundance of evidence tempting, then I think we are starting target their marketing plans and their on this issue. down a dangerous road. advertising to children. We had three financial analysts tes- How can conservatives support set- That being said, I implore my col- tify at our hearings, each of whom did ting fees in a free market system? That leagues to recognize that if the tobacco independent analyses, using very de- is as bad as setting prices. companies are not part of the equation, tailed economic models, and none of I have extensively examined the to- then we will not have a meaningful bill them concurred with an estimate as bacco issue. One thing has become evi- that can work. It is as simple as that. low as $1.10. Their estimates ranged as dent. We would not be here today de- Last June 20, the tobacco companies high as $2.50 to $3.00, for a total cost of bating this legislation were it not for agreed voluntarily to make payments about $5.00 per pack. the Castano attorneys. which will range up to $368.5 billion If that happens, there will be a rag- The distinguished Senator from over the next 25 years. They freely ing black market. It will be even worse South Carolina has made some very chose to make those payments, pay- than it is now. We have received testi- telling points. Yes, there are excesses. ments which will help Congress fund a mony that one out of five cigarette Yes, there are things we can criticize.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5100 CONGRESSIONAL RECORD — SENATE May 19, 1998 Yes, we know that many of the trial bating this issue; we would not have amendment is flawed and, in fact, is lawyers have been associated with one been able to bring national debate to unlawful. political party. the point of considering a bill which As much as I dislike this Commerce That irritates some people, and penalizes the tobacco industry any- Committee bill, and as much as I think rightly so. But the fact of the matter is where between $368.5 billion and esti- it is a piling on, the approach it uses to that he is right. It has been the contin- mates as high as $800 billion over 25 resolve the attorneys’ fees issue is far gent fee system that has allowed peo- years. more preferable than an arbitrary price ple who do not have any money to be I believe that members of the cap. able to defend themselves, to assert Castano group alone have spent some- For Congress to interfere retro- their rights, and to obtain verdicts in where between $20 million and $40 mil- actively with private contracts would their best interests. And without the lion in basic time alone. That is a lot be, in my opinion, unconstitutional. attorneys being willing to take cases of money. Some have argued that this Congress should not break private con- on a contingent fee basis, many of the figure could approach $100 million. tracts. wrongs in our society would not be This has been going on for years, in The June 20, 1997, settlement recog- righted. State after State. It has been going on nized that a private agreement between Frankly, I have been on both sides. I at the expense of the attorneys, with- a plaintiff and his or her attorney is a started out as an insurance defense out whom we would not be having this legally enforceable contract with lawyer. I tried medical liability defense opportunity to start a whole new na- which we should not unilaterally inter- cases. I know what it is like to have tional War on Tobacco. fere, however well-intentioned our mo- people, plaintiffs lawyers, bringing I have to admit, at times my angst tives are. lawsuits, some of which are trumped over the trial lawyers’ support for one Such interference by capping a con- up. side or another shows at times. That is tractual fee might very well constitute But I have also been on the other side true for most Senators. And the trial a taking under the Fifth Amendment where people who were humble, with- bar has brought a lot of this criticism to the Constitution. The Supreme out money, had no recourse other than upon itself, to be fair. They seem to be Court cases clearly say that the Fed- to hope they could find an attorney looking out only for their interests eral Government cannot confiscate who would take their case on a contin- sometimes, which is not unusual in the money or interfere with a lawful con- gent fee. business community. tract. This meant that if I didn’t win the But we should not allow that to cloud Under any view of federalism, there the facts on this issue. We should think case, I didn’t get paid. If I won the is no justification whatsoever for Con- twice before we move toward having case, then I got somewhere between 25 gress, entering the field of pure State the Congress of the United States set and 40 percent of the verdict. I never activity to alter the rights and rem- attorneys’ fees. edies of private parties and then dis- had a case where my client got less as What is it going to be next? Account- pensing, with no due process, protec- a result of the contingent fee paid to ing fees? What is it going to be? Pri- tions guaranteed by the Constitution. me than they would have gotten by a vate doctors’ fees? Our public attempts Regulation of attorneys’ fees prop- settlement before a verdict—never, at at rate setting already have proven erly belongs in the domain of the least not to my recollection. how government interference can dis- States. Such usurpation of State pre- On this particular issue, Senator tort the marketplace. MCCAIN and those who have written But I agree with the Senator from rogatives may very well violate the this bill—basically the White House, if South Carolina—this is the last bastion Tenth Amendment. Recent court opin- you will—inserted a reasonable provi- of freedom there is. ions such as New York v. United States sion. That provision says that, for the Whether you like the trial lawyers or and Prinz v. United States have made purposes of awarding attorneys’ fees not, they take cases that nobody else the Tenth Amendment a shield against and expenses for those actions, the will take. They do it at their own ex- Federal imposition on the sovereign matters of issue shall be submitted to pense many times. Yes, they make a authority of the States. arbitration before a panel of arbitra- lot of money, if they are good enough. State courts have already shown a tors. But the fact of the matter is they play willingness to step in and prevent un- In other words, they are not going to a very significant and important role reasonable and excessive fees in to- give the trial lawyers a free ride here. in our society. It is just that simple. bacco settlements. For example, in the They are going to require them to sub- I agree with many of my colleagues Florida case, the Court threw out a mit their fees to arbitration. They are on the other side. Large hourly legal contingency fee arrangement where it going to have to come in and justify fees are a concern. That is why the bill was found to be clearly excessive. This those fees. sets up an arbitration panel which will shows that the State courts will be In any such arbitration, the panel examine fees based on set criteria such best equipped to address this issue by shall consist of three attorneys, one of as the time spent and the complexity utilizing the arbitration clause of the whom will be chosen by the Castano of the case. Attorneys should have to Commerce Committee bill. plaintiffs’ litigation committee, that justify their fees; I don t disagree with I think we must also examine the is, the plaintiffs’ attorneys who were that position. precedent we are setting here in having signatories to the June 20, 1997 settle- I cannot condone legal fees which ap- the U.S. Congress consider singling out ment agreement. proach $1,000 per hour. But that is not any profession for a cap on their earn- It seems to me that our distinguished the real issue. When we start setting ings. We do not do this for corporate Senator from Arizona did a good job in attorneys’ fees, whether they are $100, CEOs, although we have tried in the putting this provision in. A similar $250, $500, or $1,000, it is a very serious past. We don’t do it for sports figures provision is in the legislation I filed on matter. or entertainers, for that matter. November 13. PRIVILEGE OF THE FLOOR Should we consider capping Jerry This represents a reasonable ap- I ask unanimous consent that Bruce Seinfeld’s pay because he makes tens proach to the problem. Artim and Marlon Priest of my staff be of millions of dollars a year, or my The fact of the matter is that I have permitted privileges of the floor dear friend Karl Malone because he devoted a lot of study to the Castano throughout this session. makes millions of dollars every year as group. The PRESIDING OFFICER. Without one of the greatest basketball players And, yes, most of them are Demo- objection, it is so ordered. who ever lived? crats. Most of them are liberal Demo- Mr. HATCH. Let me close with this. No, we don’t do that, and we should crats at that. But there are a number I am very sympathetic to the motiva- not be doing it here, even though I do of them who are Republicans, a very tion of this amendment and to the ar- have some sympathy for what moti- small percentage of them. guments that the Senator from North vates the distinguished Senators on the The fact of the matter is that politics Carolina has made. other side of this issue. should not play a part in this. Without However, there are a number of rea- I compliment my friend from South the Castano group, we would not be de- sons that I have given here that this Carolina in his statements here today.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5101 They are fair statements for the most attorneys, these tobacco companies on.’’ And guess what. They are about to part, arguing that, without the trial would continue to make billions of dol- win. If we do the right thing, they will lawyers being able to take contingent lars, would continue to exploit our win. In at least four States, they have fee cases and to be able to uphold the children, would continue to be the won. It just angers the tobacco compa- rights of the downtrodden and those source of the No. 1 preventable cause of nies to think that they are going to who don’t have any money and those death in America month after month, have to pay the fees of the attorneys who can’t afford any attorneys, we year after year, and decade after dec- who sued them. would not have nearly the justice ideal ade. Why did we need these attorneys? Be- we have today. So it is no wonder that the Senator cause, honestly, ladies and gentlemen, I also compliment my colleagues from North Carolina wants to get even when it came to Congress, when it from Alabama and North Carolina, who with these attorneys. They have upset came to State legislatures, when it have argued very forcefully and po- the applecart for Tobacco Row. These came to many Governors’ offices, and, tently for this amendment. They make attorneys have joined with States’ at- yes, even when it came to the White a number of compelling arguments. torneys general, 42 of them, to bring House year after year and time after I know I have taken too long and I lawsuits which have successfully time, the tobacco companies had a cozy apologize to my colleagues. I feel deep- brought the tobacco companies to their relationship. They knew no one was ly about this. knees. And if this Senate has the cour- going to go in and challenge them. I recognize I have irritated just about age this week that I hope it does, we Mr. FAIRCLOTH. Will the Senator everybody in the debate. I haven’t will pass the most comprehensive his- yield? meant to. It isn’t my desire. toric legislation this Nation has ever Mr. DURBIN. But in a courtroom, it I feel very deeply we need to pass a seen to protect our children from con- is a different story. In a courtroom—I strong anti-tobacco bill which is con- tinued exploitation by these tobacco will when I finish; I will be happy to stitutionally sound and which will not companies. yield when I finish. In a courtroom, it be litigated for years. The best way to So here comes the Senator from is one attorney against another. It is a do this is to model it after the agree- North Carolina, and he says, well, I jury of peers, 12 Americans sitting in ment reached last year between all the think it is only reasonable that we judgment, and that is when the tobacco parties. limit these attorneys to fees of no companies are being brought to their That, I believe, would be in the best more than $250 an hour. At least I knees. They could not buy it through interests of our children. think that is what his amendment lobbyists. They could not buy it I cannot tolerate the fact we are says; it has been written over a couple through political contributions. They going to have 10 years of litigation be- times. But I think that is what he had to walk into a courtroom. And cause we are considering faulty legisla- ended up concluding. For most people when it happened in 42 different States, tion. We should be pulling the compa- in America, $250 an hour is an amazing they said, ‘‘It is time to settle. The nies in, albeit kicking and screaming, amount of money. To anybody who game is over.’’ So naturally they are and making them be active partici- would think about making $10,000 a angry with these attorneys, these trial pants. I want them to be part of the so- week, that is an amazing amount of lawyers who have brought them to lution. Some may view that as naive, money. But, ladies and gentlemen, we their knees. And think about the limitation of but I am optimistic. are talking about attorneys who are The fact that we are considering leg- playing in the big leagues here. $250 an hour. Not a word about limiting islation with such obvious flaws both- Isn’t it interesting that all of his ran- the amount of money paid to the to- bacco company attorneys, and cer- ers me terribly. I am also bothered by cor and all of his anger about attor- tainly not one word about limiting the the fact that we will go so far as to neys’ fees only affect the fees that are money paid to the tobacco company ex- start setting professional fees here in being paid to attorneys who are fight- ecutives. Four years ago, do you re- the Congress of the United States. ing tobacco companies. I have searched member that shameful scene when Having said that, I yield the floor. this amendment, line for line and page Mr. HOLLINGS. Mr. President, I for page, to find some limitation on the seven tobacco company executives, under oath, in the House of Represent- think the distinguished Senator from amount of money paid to the attorneys atives swore to God on a stack of Bi- Utah has made a very, very powerful for the tobacco companies. No, not a bles that tobacco was not addictive? statement. We are most grateful. single word of limitation. Pay them Tobacco is not addictive. Imagine they I yield to the distinguished Senator what you will. But the plaintiffs’ attor- would say that. And these men, who from Illinois 10 minutes. neys, representing the children who are were being paid millions of dollars a The PRESIDING OFFICER. The Sen- being exploited by these companies, year by exploiting our children and ator from Illinois. the plaintiffs’ attorneys who come in selling their products, are not even Mr. DURBIN. Mr. President, let me here representing flight attendants to say to my friend, the Senator from mentioned in this amendment. try to make sure in a courtroom that Now, if we are going to work out Utah, I appreciated his oration and his they are protected from the kind of some moral outrage about how much irritation. He plays a valuable role in secondhand smoke that is damaging, money we are going to pay people, then the Senate, and he raises issues that those are the targets of the Senator let us include not just trial lawyers. are important to all of us regardless of from North Carolina. Let’s include the attorneys for the to- on which side of the aisle we fall. Isn’t it an amazing thing that these bacco companies. Let’s include the to- This amendment, sponsored by the tobacco companies, when they put bacco company executives. Or let’s call Senator from North Carolina, Mr. their enemies list together, put at the this amendment for what it is. This is FAIRCLOTH, is one which we should un- very top these attorneys. Well, why did an effort to get rid of the element that derstand what it stands for. This is an these State attorneys general bring in has brought the tobacco companies fi- amendment to limit the attorneys’ fees these private attorneys as part of the nally to this Senate floor and brought that will be payable to plaintiffs’ attor- lawsuits? For one simple reason: They us finally to comprehensive legislation. neys who joined with all the States’ at- didn’t have the resources in many I yield to the Senator from North torneys general to bring the lawsuits States to really go after these tobacco Carolina. against tobacco companies. giants, so they brought in the trial at- Mr. KERRY. Not on your time. Now, to paraphrase my friend, the torneys and they said, ‘‘If you are Mr. FAIRCLOTH. Does the Senator Senator from Arkansas, Mr. BUMPERS, going to sue the tobacco firms, do it on have a copy of the amendment? the tobacco companies hate these at- a contingent basis. If you win the law- Mr. KERRY. Mr. President, I would torneys like the Devil hates holy suit, which has never been done—never ask the Senator to yield on the time of water. Were it not for these attorneys, been done—if you win the lawsuit, you the Senator from North Carolina. there would be no McCain bill in the will win a substantial fee. If you lose, Mr. FAIRCLOTH. I am satisfied. Chamber this week. Were it not for you go home emptyhanded.’’ These at- The PRESIDING OFFICER. Is there these attorneys, there would have been torneys said, ‘‘We will take it on; on a objection? Without objection, it is so no State lawsuits. Were it not for these contingent fee basis, we will take it ordered.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5102 CONGRESSIONAL RECORD — SENATE May 19, 1998 Mr. FAIRCLOTH. Does the Senator accomplish. I don’t think it is going to Mr. KERRY. I thank the Chair. I un- have a copy of the amendment? happen. What the Senator is asking—— derstand the Senator wants to yield Mr. DURBIN. I have the amendment Mr. FAIRCLOTH. It is difficult to see some time now. I think we can go back 2421. $185,000 an hour paid to plaintiffs’ at- and forth. Mr. FAIRCLOTH. Look at the top of torneys that come out of the working The PRESIDING OFFICER. Who page 2 and line 10 at the bottom. What people of this country, too. And that yields time? does it say? bothers me considerably. Mr. FAIRCLOTH. Thank you. I yield Mr. DURBIN. I am sorry. Page 2? Mr. DURBIN. Mr. President, I say to the time, I yield whatever time is de- Mr. FAIRCLOTH. Page 2. Read the the Senator the money that comes into sired by the Senator from Alabama, top line. this comes from tobacco companies Mr. SESSIONS. Mr. DURBIN. ‘‘* * * made public dis- which have made a profit at the ex- The PRESIDING OFFICER. The Sen- closure of the time accounting under pense of children and Americans for a ator from Alabama is recognized. paragraph (1) and any fee * * *’’ long period of time. Mr. KERRY. Mr. President, point of Mr. FAIRCLOTH. Now read the bot- Mr. FAIRCLOTH. I beg to correct inquiry? tom, line 10. It clearly includes the at- you. It comes from the taxpayers of The PRESIDING OFFICER. The Sen- torneys for the tobacco companies. this country. The tax is on cigarettes ator from Massachusetts. Mr. DURBIN. I am sorry, Senator. I and cigarettes are smoked by generally Mr. KERRY. If I could ask the Sen- do not see that reference in here in the people with incomes of less than $40,000 ator from Alabama how much time he copy I have. to $50,000 a year. They are going to pay might use so other colleagues can plan, Mr. FAIRCLOTH. If the Senator will 70 percent of this tax. We are going to so we can proceed down? read, at the top, it clearly says—in the buy Lear jets for attorneys out of the Mr. SESSIONS. Mr. President, 15 English language it is pretty clear— working people of this country because minutes. that it includes all matters, defendant 70 percent of this money we are going Mr. KERRY. I thank the Chair. or otherwise. to pay to these attorneys comes from The PRESIDING OFFICER. The Sen- Mr. DURBIN. I am sorry, but I do not people making less than $40,000 a year. ator from Alabama is recognized. see that reference, unless this is an- And how anybody can justify paying an Mr. SESSIONS. Mr. President, this other copy of the amendment. attorney $100,000-plus an hour, and tak- is, indeed, an important issue. We have Mr. FAIRCLOTH. ‘‘* * * who acted at heard a lot today about validity of con- some future time on behalf of a defend- ing it out of the pockets of people mak- ing less than $40,000 a year, I don’t tingent fees. Historically, contingent ant in any of the matters set forth in fees have not been favored by the law. paragraphs (1) through (9) of this sub- know. Mr. DURBIN. Let me say to the Sen- They have been scrutinized. Lawyers section.’’ ethically were supposed to take fees on Mr. DURBIN. Will the Senator clar- ator from North Carolina, what I un- derstand this bill to include is an arbi- a paying basis unless the person could ify then, is he saying that any of the not afford to hire a lawyer—but we attorneys hired by the tobacco compa- tration proceeding, if there is any ques- tion about the fees to be paid to attor- have always affirmed a contingency fee nies and paid by the tobacco companies basis. I am not here to criticize that. I relative to this litigation will be lim- neys, and in the case of the State of Florida, that in fact occurred. The at- am not. This legislation in no way ited to how much they will be paid—— would stop private attorneys from Mr. FAIRCLOTH. Yes. torneys’ fees were reduced. But let’s going forward with contingent fee ar- Mr. DURBIN. By the tobacco compa- not lose site of the bottom line here. rangements with their clients. As an nies? Were it not for these attorneys bring Mr. FAIRCLOTH. That is exactly these lawsuits, we wouldn’t be here attorney, I have filed cases on an hour- what I am saying. today. We would not be discussing that ly fee basis and on a contingency fee Mr. DURBIN. Whether that money legislation. basis. I don’t think there is anything comes through this agreement or not? Mr. FAIRCLOTH. I don’t know that wrong with that and I don’t mean to Mr. FAIRCLOTH. That is exactly that is true. But they arbitrated it in suggest there is. right. Florida down to $180,000 an hour. But I But in the history of litigation, in Mr. DURBIN. How will the Senator would like to yield the floor now to the history of America, in the history possibly monitor that and police that Senator SESSIONS. of law, in the history of the world there in terms of the banks and hoards of at- The PRESIDING OFFICER (Mr. have never been fees equivalent to the torneys who represent these tobacco KEMPTHORNE). The Senator from Illi- ones we are talking about today. They companies? In the issue of the plain- nois controls the floor—has the floor. go beyond anything we can imagine. tiffs, we clearly have a case with an at- Mr. DURBIN. How much time do I These fees are beyond any payments torney general and we have a law firm have? that have ever been known in the world that has reached an agreement and Mr. KERRY. Mr. President, I believe of law. I call them the mother of all at- contract with them. Is the Senator the time agreement was the time torney’s fees. This is a serious matter. from North Carolina saying, then, that would come from the Senator from The attorneys general of the United as to all the activities of attorneys for North Carolina. States have come to this Congress, this tobacco companies that he is going to The PRESIDING OFFICER. That is Senate, and they have asked us to ap- limit their fees to $250 an hour? correct. prove a settlement, to add things to it, Mr. FAIRCLOTH. If they submit a Mr. FAIRCLOTH. The time was to review it and comprehensively deal record, they will have to submit a yielded to me, Mr. President. Our de- with this matter. So one of the things record to the Congress. And of course it bate was on my time. that we have to deal with is attorneys’ would be perjury to lie about it. They The PRESIDING OFFICER. Right. fees. have to submit the record. Yes, I am The Senator from Illinois does control Under the Constitution, the Congress saying they are going to be held re- the floor. The time was charged to the is empowered to regulate. We do it sponsible. And to the same fees that we Senator from North Carolina. So the when we enact a minimum wage. A per- are paying the plaintiffs’ attorneys. Senator from Illinois still has the son has a contract with somebody at $4 Mr. DURBIN. What if they have al- floor. an hour, and we say the wage ought to ready been paid? Mr. DURBIN. I believe the Senator be $5 an hour; that contract is vitiated. Mr. FAIRCLOTH. Then it will be up from South Carolina recognized me for We have a lot of containment of attor- to the tobacco companies to make an 10 minutes. Do I have any time remain- ney’s fees in America. adjustment. ing on that? Indeed, with regard to Social Secu- Mr. DURBIN. The tobacco companies The PRESIDING OFFICER. The Sen- rity cases, there is a limitation on at- will have to call their attorneys in and ator has 41⁄2 minutes. torney’s fees. With regard to the Crimi- make an adjustment under your act? Mr. DURBIN. Mr. President, 41⁄2 min- nal Justice Act, the limit is $75 an Mr. FAIRCLOTH. Yes. utes? I yield that back to the Senator hour. Under the Equal Access to Jus- Mr. DURBIN. I say to the Senator, I from Massachusetts, who has been kind tice Act, attorney’s fees are limited to believe that is a very difficult thing to enough to wait. $125 an hour. Limitation of attorney’s

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5103 fees is common. We have had a number JOHN STOSSEL. The inside of the house is Then Mr. Stossel asked Mr. Levin of research papers written on fee limi- even more grand. Montgomery has a vast art why the Governor was spending the tations. A professor from Cardozo collection. night at this trial lawyer Montgom- School of Law has written comprehen- Another attorney, Mr. Fred Levin, ery’s house. sively on this legislation and says it is, defends the fees. FRED LEVIN. Well, when he’s in Pensacola, indeed, constitutional. FRED LEVIN. It was contracted. he sleeps at my house, so— To illustrate the amount of money at JOHN STOSSEL. So who made this contract? JOHN STOSSEL. That week, Levin threw a issue in these cases, I would like the FRED LEVIN. Well, the State did. It was a big party. His estate’s so big he buses the people of this country and the Members valid, legitimate contract. guests in from where they’ve parked their JOHN STOSSEL. Fred Levin helped the gov- cars. The Governor came, of course. of this body to think about this: The ernor put the deal together. yearly general fund budget for the You’re a private lawyer? (Asked of Mr. And they talked about how the Gov- State of Alabama is less than $1 bil- Levin.) ernor’s guests had raised a lot of lion. In Texas, a judge has approved FRED LEVIN. Right. money for him. payment of $2.3 billion to a handful of JOHN STOSSELL. What are you doing there? As Professor Lester Brickman of lawyers for this litigation. They ap- Just giving advice? Cardozo Law School said: FRED LEVIN. Well, yes. proved that kind of fee. JOHN STOSSEL. Friendly advice? It’s an outrage. It’s more than greed, it’s a In Florida, attorneys are still bat- FRED LEVIN. Yes, I was a—I’m a good scam. tling to obtain $2.8 billion in fees—that friend of the governor’s. JOHN STOSSEL. Law professor Lester is two thousand eight hundred million JOHN STOSSEL. Friendship starts to explain Brickman, who’s an expert on legal fees, says dollars—two thousand eight hundred how some of these private lawyers were se- it’s not right to hand such a lucrative-fee case to a friend. million dollars. That is absolutely un- lected and ended up with a contract that says each now is entitled to hundreds of mil- This is the issue we are talking about conscionable, as a judge in Florida lions of dollars. It began four years ago, said, and as anyone who has any sense today. I was attorney general of Ala- when Levin came up with a scheme to use bama when this litigation was being of decency ought to understand. We Florida’s legislature to make it easier to win have been asked to pass legislation a suit against big tobacco. suggested. I had groups of trial lawyers dealing with this health care problem FRED LEVIN. I took a little-known statute come to me and ask me to file the liti- and try to do something about teen- called a Florida Medicaid recovery statute, gation. We had meetings and we dis- agers and smoking? We have a right to changed a few words here and a few words cussed it. They wanted a contingent pass legislation dealing with attorney’s there, which allowed the state of Florida to fee, as I recall, 25 percent of the recov- sue tobacco companies without ever men- fees. ery. tioning the word ‘‘tobacco’’ or cigarettes. I remember saying, ‘‘Well, some of Let me share something with you. The statute passed in both the house and the People may not understand exactly senate. No one voted against it. the States are moving along fine in how all of this has occurred. I have a JOHN STOSSEL. Well, did the people know this litigation. If they win, I assume transcript of a recent 20/20 program what they were voting for? Alabama will be able to win with our about the Florida attorney’s fees de- FRED LEVIN. No. And if I told them, they’d own staff. I don’t believe we need you bate. Let me share some of what was have stood up and made a—you know, they’d to represent us.’’ said in that program. The segment is have been able to keep—keep me from pass- They said, ‘‘Well, you don’t just hire ing the bill. us, you can hire some of your law firm entitled, ‘‘What A Deal.’’ JOHN STOSSEL. This made the suit much HUGH DOWNS. What is your time worth? more winnable? friends, too. You can cut them in on How does $7,000 an hour sound? That’s what FRED LEVIN. Oh, God. It meant it was a the deal.’’ That was one of the things some lawyers want to be paid for their work slam dunk. they suggested to me. on Florida’s suit against the tobacco indus- JOHN STOSSEL. And who would get to be I said, ‘‘We’re not hiring lawyers for try. Each and every one of them could be- the lead lawyer on this slam-dunk offense? friendship. We’re not hiring lawyers to come a millionaire many times over, just FRED LEVIN. Initially, I was assuming that pass out funds to people we want to from this one case. I would be bringing the case. But then they said, ‘‘Fred Levin’s going to make all the give money to. If we need a lawyer, So, did they really earn their fee? we’ll hire a lawyer.’’ I didn’t do so. Well, John Stossel tells us how the money.’’ JOHN STOSSEL. Fred Levin’s doing a scam Basically, what I had predicted came lawyers came to demand a king’s ran- here. He’s changing the law so he can get true. When the end came, the tobacco som for their work. rich. companies settled all over America. JOHN STOSSEL. The children are supposed FRED LEVIN. So I went to the governor and Some States had hired lawyers on a to benefit from the new money for anti- I said, ‘‘Listen, let me help you get a group contingent-fee basis, lawyers that may smoking programs. And later the governor of lawyers together, our dream team, and I’ll invited in some children and dummied up a get out.’’ have only worked a few weeks or check to celebrate the first $750 million pay- months, and then began to come in and Mr. Montgomery suggests that if he claim 25 percent of $2 billion, $3 billion, ment. But now it turns out that Florida’s lost the case, he would have been out taxpayers may not get as much of that $15 billion. This is supposed to be fair $500,000. He probably has that much in- money as they thought because Florida law- and just? I submit that it is not. yers are in a legal battle over how much vested in all of his automobiles in this My good friend and chairman of the money they should get. mansion he has. He suggested his cost Judiciary Committee, on which I serve, Montgomery, the plaintiff’s lawyer in the was $500,000. case, says they deserve $2.8 billion. That’s expressed real concern that we ought JOHN STOSSEL. Am I missing something not attack contingency-fee contracts, right—billion, says Stossel. here? The controversy has become, should He (referring to Mr. Montgomery) doesn’t the dream team get billions from the 25-per- as these contracts benefit people who exactly need the money. cent deal they have with the State or from cannot afford to hire lawyers on an This is his multimillion-dollar house in arbitration? My question is, why do private hourly basis. I don’t intend to under- luxurious Palm Beach right next to the lawyers get so much of the State’s money in mine normal contingent-fee contracts, ocean. the first place? When this construction com- The house is so huge, it looks more like a and nothing in our amendment does pany got the contract to replace this Florida palace. Even his Rolls Royce and his Bentley that. bridge, they had to compete against other live in a garage that’s bigger than many I think everyone needs to know that construction companies. There was competi- houses. Montgomery got this rich suing this McCain bill that the administra- tive bidding. To win the job, they had to carmakers and hospitals and insurance com- show they were qualified and submit the low- tion has approved and signed off on, panies. est bid. All States have such rules to prevent and the trial lawyers, I suppose, have BOB MONTGOMERY. So this is my putting signed off on, calls for a panel of arbi- green, and this is my sand trap. And what I politicians from funneling projects to their do is I have these balls, and this is where I friends. But that’s not what happened with trators. It consists of three people: The drive them. the lawyers. Here, Fred Levin called some Castano plaintiffs; I understand one of JOHN STOSSEL. Out into the water? friends. You picked the dream team. them may get $50 million out of this BOB MONTGOMERY. Out into the water. Then Mr. Stossel discussed how the litigation. Plaintiffs would have one He has so much money, he doesn’t deal was negotiated and the fact that member on the arbitration panel. The worry about his golf balls. He hits Mr. Levin and the Governor were close, other members of the group would be them out into the ocean. riding in the same car together. the manufacturers and the attorney

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5104 CONGRESSIONAL RECORD — SENATE May 19, 1998 general. They get to pick the second Do you know how many billionaires But after that, if ever there was a one. there are in the United States accord- violation of what I thought the Repub- But you see, there is a problem there, ing to Forbes? I had my staff check. lican Party stood for, here it is. ‘‘This because the accord really is between There are about 60. I wonder how many section shall apply to fees paid or to be the manufacturers and the attorneys new billionaires these attorneys’ fees paid to attorneys under any arrange- general and the plaintiffs’ lawyers. I will make? Who will pay for this ment * * *’’ i.e., retroactively. They submit that they are not defending the wealth transfer? Who will be making are going to go back and say, no mat- best interests of the people—they more Montgomerys with multimillion- ter how many hours attorneys may signed those contracts together. dollar mansions on the beach, who hit have worked, no matter how much In this situation, the plaintiff law- their golf balls out into the water be- their firm may have put in, they are yers have placed themselves in—and I cause they have so many they don’t going to have to live by a certain fee don’t know any other way to say it—a care, and have world-renowned paint- that may be well below what they have conflict-of-interest position. When the ing collections? already invested in a case. tobacco companies agreed to settle, I am not weeping at all over the poor But even more importantly, they do they went to the lawyers on the other state of these attorneys. I think it is this for any attorney ‘‘who acted on be- side and said, ‘‘Now, let’s talk about time for us to have a clear policy about half of a State or a political subdivi- your fee. We won’t pay all the money what we ought to pay. This body voted sion of a State in connection with any to the State and let you be paid by the last year that $250 was a fair wage for past litigation,’’ ‘‘who acted on behalf State, because that would look bad. them to be paid per hour, and I think it of a State or [any] political subdivision We’ll just have a little side agreement, is, too. I support this amendment. of a State in connection with any fu- and we’ll pay your fee, and it won’t The PRESIDING OFFICER. Who ture litigation,’’ ‘‘who acted at some come out of the State’s money.’’ yields time? future time on behalf of a State or a The attorneys general agreed to that. Mr. SESSIONS. How much time do I political subdivision of a State in con- So the attorneys general are in on the have left? nection with any past litigation,’’ agreement. And the plaintiff lawyers The PRESIDING OFFICER. The pro- ‘‘who act at some future time on behalf are in on the agreement. And the to- ponents have 58 minutes 30 seconds. of a State or a political subdivision of bacco companies are in on the agree- Mr. SESSIONS. The 15 minutes? a State in connection with any future ment. Anybody who knows anything The PRESIDING OFFICER. The 15 litigation of an action maintained by a about economics and thinks realisti- minutes have expired. State against one or more tobacco cally about this matter will know Who yields time? companies * * *’’ there are not two separate pots of Mr. KERRY. I presume the Senator Here is the most extraordinary long- money. can yield himself more time if he arm reach of the Federal Government The attorneys’ fees and the recovery wants to. into the affairs of States from the very by the States are all payments by the Mr. SESSIONS. I will reserve the people who are most consistently on tobacco companies to get these people time on this side. the floor of the U.S. Senate saying, off their backs. The tobacco companies The PRESIDING OFFICER. Who ‘‘Keep the Federal Government out of do not care whether lawyers get the yields time? our business. Keep the Federal Govern- money or whether the children of the Mr. KERRY. Mr. President, I yield State or the children of the United myself such time as I use. I will not use ment away from intruding. Don’t put States get the money. They are not that much time. mandates on the State. Don’t preempt concerned about that. They want this The PRESIDING OFFICER. The Sen- State action.’’ And here we are with litigation over. ator from Massachusetts is recognized. the greatest single preemption, intru- So this is what we have. The more Mr. KERRY. Mr. President, it is time sion, and nit-picking, micromanaging you pay the lawyers, the more likely we really talked about what is really that I have ever seen. they may be to compromise the inter- happening here. And it is time that we That said, they are not even dealing ests of the State and the children. face reality with respect to this amend- with reality, Mr. President. They are Every dollar that goes to them is a dol- ment. coming in here and talking about lar that would not go to the children. I am just astounded listening to the $180,000 fees. That is not what they got The third member of this arbitration Senator from North Carolina and the in Florida. In point of fact, that is panel is picked by the plaintiffs and Senator from Alabama suggest they what the attorneys may have asked for the manufacturers and the Attorney know better than their own attorneys because that was their agreement, but General. So you have more of the same. general, who are elected, after all, who that is not—they are subject to arbi- This is not an effective arbitration are accountable to the people of their tration. panel. It is a stacked deck. I am not States, just as we are as Senators, and Every single State is subject to arbi- sure some of the people who defended who suddenly, representing the Repub- tration. This bill honors the notion this panel have fully thought that lican Party, are attacking people be- that there will be arbitration. No one through. We will need to talk to them cause they have made some money and expects attorneys to be paid the kind about that. But this is not an accept- they do not like the way they have of money that is being thrown around able panel. made some money. on the floor of the U.S. Senate. That is Some people say, ‘‘Well, Congress This is an unprecedented situation as not going to happen. And they cannot can’t undermine contracts.’’ We limit far as I know. The Senator from Utah, point to an instance where it actually the minimum wage. And Florida has the distinguished chairman of the Judi- has happened. limited attorney’s fees—at least so far ciary Committee, could not have put it In Minnesota, they settled for 7.5 per- they have tried to. People on the other more strongly or directly. He asked the cent. The Attorney General settled, all side say, ‘‘Well, it’s not so bad. Florida question, What is our party coming to of the parties settled. And what is real- limited their attorney’s fees contracts. if this is what we stand for? ly fascinating is my friend from Ala- So if Florida can limit that contract, Now, I ask my colleagues just to read bama says there are not two pots of why can’t we limit their fee?’’ But in this amendment. This amendment money. Well, that is not true. In Min- Texas they did not. In Texas a judge says: nesota there are two pots of money, be- has approved $2.3 billion in attorneys’ No award of attorneys’ fees under any ac- cause they came to an agreement that fees. tion to which this Act applies shall be made one pot would pay the people what I will point this out to you: I have a * * * until * * * [they] have provided to the they get by virtue of a settlement, and recent article about the owner of the Congress a detailed time accounting with re- the companies, the tobacco companies Baltimore Orioles making over $1 bil- spect to the work performed. will wind up paying the attorney fees lion from these attorneys’ fees, $1 bil- They want to turn the U.S. Congress outside of it. That can happen in each lion—B-I-L-L-L-I-O-N—$1 billion. I sus- into an accounting committee for at- and every other State subject to the pect he probably is making more off torneys, private attorneys who have determination of the arbitration proc- the lawsuit than he has made on all of contracted privately with the attor- ess, subject to the courts, subject to his other investments. neys general of their States. the attorneys general and others.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5105 Who is the Senator from North Caro- what happens for the cases that are ery driver ran a red light and hit her, lina, who is the Senator from Alabama won that create a big stir. There are because the policy was, you have to to say that the attorney general of a dozens of cases that are lost. There are push delivery. They changed their pol- State does not know what he is doing, dozens of cases litigated where people icy because a lawyer brought that con- that the attorney general of a State is make an effort and they don’t win. And cept to court, and it was rectified. incompetent to decide that he wants to that is our system of jurisprudence in An 81-year-old died from a fatal kid- run for reelection based on what he America. That is how we provide the ney ailment after taking an arthritis thought was a fair approach to arriving average citizen, the person who doesn’t pain relief drug called Oraflex for at a settlement? have the bucks, access to the court- about 2 months. The manufacturer had Why is it fair? It is fair, Mr. Presi- house. And here we are with a system known of the serious problems associ- dent, because no one wanted to take that we have worked out in this bill ated with the drug but failed to warn these cases. No one wanted to take which sets up arbitration which says, the doctors, and, in fact, Eli Lilly re- these cases. I stand with my friend in section 1407, that in any case where moved the drug, as a result of that from South Carolina as somebody who the State and their litigation counsel suit, from the world market after it has tried a case and who has taken a failed to agree on attorney fees and re- had been available in the United States contingency case. lated expenses, the matter of attorney for less than a year. When I first got out of school I start- fees and extensions shall be submitted Eight punitive damages awards were ed a law firm. We did not have the to arbitration. required before the A.H. Robins Com- money to carry the case. We did not There is no automatic payout in this pany recalled the Dalkon Shield, the have anybody supporting us. But about bill. No attorney walks away with fees IUD, and we all know what happened six or seven people who had hairs im- that any attorney general or any State with respect to that. planted in their head from rug fibers thinks are wrong. That is not going to All of these were instances, Mr. came to us. It turned out that the hairs happen. And there are people account- President, where American citizens were cancer, carcinogenic, and they got able at the State level if it did happen. were protected by virtue of the capac- extraordinary blisters and reactions to It is not the business of the U.S. Sen- ity of a lawyer to take a case. I can tell this and spent days in hospitals and ate to step in and suggest that, because you, if you limit these fees to the level being treated. the Senator from Alabama finds the they want, what you are really doing is But how were they going to get re- lifestyle of a particular individual who limiting the access of the average dress? Well, they got a couple of young may not even have made the money American to the courtroom, because lawyers who took the cases on a con- through that case, other cases—finds it you will make it impossible for lawyers tingency. And we took those cases onerous, to say we will limit it. to take those fees under those cir- based on the notion that we invested I bet any one of us could find any cumstances—not to mention the un- our money in the depositions. We in- number of corporate executives, chief- constitutionality and questionable vested our money and the time put tains, in this country who have their practice of how you regulate defend- into it. And we worked for 2 long years, airplanes, who have their nice cars, ants’ fees in totally private contrac- Mr. President, in order to be able to fi- who may or may not choose to hit a tual relationships outside of anything nally take that case to court, win the golf ball in the ocean. I am sure you to do with State action, outside of any- case in court, and ultimately force the could say they have a lifestyle that thing to do with a compelling straight rest of the cases to settlement. There somehow people find a little bit objec- interest, with no appropriate rational are countless examples like that. tionable or they are jealous of, but nexus that the court requires for that America is going to have an oppor- since when in this country do we say kind of test. tunity to see a movie soon in which we will limit their capacity for earn- This doesn’t work. It is not needed. It John Travolta will play Jan ings and step in and become the ac- is wrong. It is an exaggerated problem Schlichtmann, a young attorney up in counting agency for those kinds of seeking some kind of solution. This is Massachusetts who took a case of peo- transactions? not the solution. ple in the City of Woburn, who had I hope my colleagues will measure I reserve the remainder of my time. been poisoned by toxics put into the carefully the capacity in this bill. This Mr. FAIRCLOTH. I yield whatever well system and their kids were dying would interfere with private contracts. time is desired to the Senator from of leukemia. This was a case that no- The amendment is not necessary, be- Alabama. body wanted to take. This was a case cause a bill has a means of resolving The PRESIDING OFFICER. The Sen- that took years to prove, and they these. The courts have already shown ator from Alabama is recognized. brought experts from all over the coun- an unwillingness to prevent any unrea- Mr. SESSIONS. I will share a few try. They invested in it themselves to sonable fee, and these contingency fees thoughts as we discuss this thing. I the point, Mr. President, they were preserve the rights of our citizens to be think the feelings are strong on both floating their own credit cards to the able to have access to the court. sides. point of bankruptcy. They mortgaged Let me share why that is so impor- I suggest that Federal action is ap- their home to the point of bankruptcy. tant. It was the result of a suit brought propriate here because the States have This lawyer lost his automobile. It was on contingency that helped make auto- asked for a comprehensive settlement repossessed because he was going to matic teller machine operators respon- of this matter. The legislation that we win on behalf of these people. Ulti- sible to put those machines in a way have proposed is a comprehensive piece mately, he was able to pay off all the that people weren’t attacked or some- of legislation. It involves where the bills and he barely made any money at how there was a sense of responsibility money goes. We don’t agree with the all. about the locations. That is one of States on everything that they say, That is a case you win. Most cases in those victories that you win because and we will be doing things differently America are stacked against the plain- people took a case. in a number of ways. It will represent tiffs. In most cases in America, cor- Another case, where a $10 million pu- the consensus of the House and the porations have all the money. That we nitive damage award against Playtex Senate and the President, if he signs it. have seen from the tobacco industry removed from the market tampons I think it is perfectly appropriate for over the last years. And that is why, as linked to toxic shock syndrome—those us to deal with the problem of just how the Senator from South Carolina point- problems had been deliberately over- much these litigators make. When you ed out, in all the years of litigation, looked by the company. It was only be- have a young lawyer taking on a big not one single penny has been paid out cause of the suit that people were pro- company and winning a contingent fee in the court as a result of a victory tected. verdict and making some money off of won in the court at this point in time. In St. Louis, a jury returns a $79 mil- it—we are not trying to undo that. We Who will bring those cases? This isn’t lion award against Domino’s Pizza be- are talking about a massive effort, na- the only example of that. There is the cause of its fast delivery policy. We had tionwide, that has resulted in incred- most extraordinary misunderstanding a woman, Jean Kinder, who suffered ibly huge profits or windfall attorney in America about contingency fees and head and spinal injuries when a deliv- fees that ought to be contained by the

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5106 CONGRESSIONAL RECORD — SENATE May 19, 1998 very nature of this. We have a right to the people to pay their fee, and that is governments and State attorneys gen- legislate that. not going to affect the overall settle- eral which have negotiated these deci- Whereas at this stage Florida has re- ment, is not sound thinking. It is the sions or made these judgments. duced the attorney’s fees that were to same money, and every dollar they The McCain legislation deals with be awarded of $2.8 million, one of the agree to give is one dollar less that this, in what I believe is a proper fash- lawyers, I think, is still contesting goes to the people and victims of smok- ion, in setting arbitration panels where that, and they may not prevail. Or if ing. arbitrators can pay what expenses the they do, it is just proof of the fact that I believe the present proposal is not lawyers had, what they had to pay, the courts and legislative bodies have the effective at all. I object to it. I believe risk they took, the time involved, and power to deal with excessive fees in the Senator from North Carolina has a then, on a professional, informed basis, this kind of circumstance. proposal that will fix this matter. It decide on proper compensation. Finally, they say, well, there is an will be a generous fee for these attor- Alternatively, that judgment will be arbitration panel in this agreement. I neys. They worked on it for 4 years, made here, and on what basis? Who must tell you, the configuration of and they have 10,000 hours. They get here knows the risks involved, what ex- that panel is unacceptable. It is unac- paid $250 for every one of those hours. penses were incurred, what professional ceptable for two different reasons, real- That is perfectly generous. judgments were required? Never in my ly. It is unacceptable, No. 1, because it I yield the floor. limited experience in this institution doesn’t even come into play unless the Mr. HOLLINGS. I yield to the distin- would we be making a less informed de- attorney involved is unavailable to guished Senator from New Jersey 5 cision. agree with the plaintiff. The plaintiff is minutes. Mr. President, I strongly urge the de- the attorney general or, I guess, rep- Mr. TORRICELLI. Although I have feat of this amendment. The attorneys resenting the State, of the people. I am not been in this institution long, I have general of this country have availed on page 438 of the agreement. It says already discovered one thing about the themselves of a right that individual you can’t have arbitration unless the Senate. Things are not often as they Americans have used for generations. attorney involved—that is, the private appear. This discussion has been al- They made a judgment to the tax- plaintiff lawyer—is unable to agree most entirely about money, what fees payers of this country who could not with the plaintiff—that is, the attor- are paid, and who pays them. afford to pay private attorneys the ney general who employed that attor- But in truth, this amendment is not enormous fees, the enormous costs ney—the attorney general, with re- about money, it is about power. It is through recent years, to avail them- spect to any dispute that may arise be- about whether or not the individual selves of contingency fees to protect tween them regarding their fee agree- American who has little or no money, the taxpayers just as individual Ameri- ment. cannot afford expert testimony, cannot cans have done for years. Now it is Why, this is the fox guarding the hen afford to pay the fees with extensive time to ensure that system worked— house. These are the same people that and complex litigation, can stand in a that freedom to remain with the indi- agreed to the fees. We don’t have a courtroom face to face with the largest vidual States to reach their own final good thing there. and richest, most powerful corpora- judgments. Then, when it talks about submitting tions in the world and get justice. Finally, Mr. President, let me sug- it to arbitration, the makeup of the Through almost all of the history of gest to you this legislation is not only panel shall consist of three persons, this Republic, we have assured that inappropriate for the institution, it is one of them chosen by the plaintiff— right to every American. But today, not only denying Americans a power of that is, the attorney general—one of this Congress is at a point of judgment equal justice against the strong and them chosen by the attorney—that is, about the tobacco industry because the powerful, which they have enjoyed the plaintiff’s attorney—and one of those individual lawyers, on contin- for generations, it is also, finally, if them chosen jointly by the two of gency fees, representing individual nothing else, patently, clearly, un- them. That is who is making the deci- American citizens, have brought us to equivocally unconstitutional. On what sion—the same people that got us into this point of decision. basis will the Federal Government take this fix. I submit that is not an effec- Make no mistake about it, Ameri- this judgment away from the States tive arbitration panel and it is not cans are dealing with the reality of under the 10th amendment? And on something that at all deals with the se- health care and tobacco and the financ- what basis would this Congress decide riousness of the problem. ing of our future health care as a result to take this compensation away from Lester Brickman, when he was inter- of a potential tobacco settlement, not individual Americans in what is clearly viewed on ‘‘20/20,’’ the professor from because of this Congress, not because an unconstitutional seizure of property Cardozo Law School, made these state- of the good graces of American indus- without compensation? ments: ‘‘These are politicians involved try, not because the leadership of the Mr. President, this amendment is bad who are stroking the backs of lawyers President, but because of the threat in on a variety of bases. Collectively, it is because lawyers have stroked their courts of law that individual attorneys, almost unthinkable. I am very pleased backs before and may yet stroke their on contingency fees, have found justice that Senator HOLLINGS and Senator backs again. So I think the public per- for individual American citizens. KERRY have led us in the debate, and ception here, which is probably pretty This fight is not about money. There am more than a little proud that the accurate, is that it smells.’’ are ample resources in any tobacco set- chairman of the Judiciary Committee, I want to make one more point. I tlement. The fees would be paid. It is on which I am proud to serve, Senator think this is really important. I can about whether or not this door to HATCH, once again, as has been his tra- see how that could be of confusion. The American justice is to be closed. And dition, has come to the floor of this in- Senator from Massachusetts says there that is the decision. stitution in the protection of the pre- really are two pots. This is fundamen- The great irony of it is, on the other rogative of the institution and the Con- tal when you think about it. It is not side of the aisle, the party which has stitution of the United States. two pots. There is one pot of money; always claimed to represent the rights I thank the Senator from South that is the tobacco companies; and of the individual, the founding wisdom Carolina for yielding the time. they will pay it over to get rid of this of our constitutional system, and the I yield the remainder of my time. lawsuit. And they are willing to pay as prerogatives of individual State gov- The PRESIDING OFFICER. Who much to the lawyers to get them to ernments, would be bringing this yields time? agree to the settlement. It is not a amendment at all. If it were to suc- Mr. FAIRCLOTH. I do. I yield 15 min- healthy relationship. It is not a ceed, the Senate of the United States utes to the Senator from Kentucky. healthy relationship. And the sugges- would be setting professional fees, a The PRESIDING OFFICER. The Sen- tion that the tobacco company can go judgment that not only does not belong ator from Kentucky is recognized for 15 over here to the side and enter into a here but demeans the institution. The minutes. side deal with the lawyers who are sup- Senate of the United States would be Mr. McCONNELL. Thank you, Mr. posed to be representing the State and taking prerogatives away from State President.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5107 I thank my friend from North Caro- a week, including holidays, for over 3 like to have that kind of take-home lina. years, they would earn over $7,000 an pay. I know there are a lot of folks in The FAIRCLOTH cap is an attempt to hour—$7,000 an hour. In fact, we know America who would be more than insert a bit of sanity into a world of at- the actual hourly rate for the Florida happy for $250 an hour. torney-fee madness. The national to- attorneys is immensely higher because This cap is extremely generous and bacco settlement has turned into the no one can seriously contend that any eminently reasonable. In fact, the Fed- ‘‘national lawyer enrichment deal.’’ lawyer, much less every lawyer, eral Government has established nu- Let me tell you a little about the cur- worked 24 hours a day, 7 days a week, merous attorney fee caps over the rent ‘‘national lawyer enrichment on tobacco litigation for 31⁄2 years. years that prove the point. Under the deal.’’ But it gets better. The final stop on Equal Access to Justice Act, the fee Under the current bill, conservative our lawyer enrichment tour is Texas. cap is $125 an hour; under the Criminal estimates say that we are about to There a handful of lawyers are going Justice Act, $75 an hour; under the In- hand over approximately $4 billion a after $2.2 billion. Well, let’s see what ternal Revenue Code, $110 an hour. year to lawyers —$4 billion a year— kind of hourly fee the lawyers want in We ought to pass the Faircloth cap. every year—for at least the next 25 Texas. Texas did not go to trial so it is It is fair and it is constitutional. A years. This, Mr. President, is abso- reasonable to assume Texas put in far sweeping Federal regulatory bill can- lutely outrageous. less time than Minnesota. not leave out the matter of lawyers’ I am sure the friends of the trial bar Again, assuming that 25 lawyers fees, especially when omitting the will stand up and say I am exaggerat- worked a total of 25,000 hours, then issue would allow for such abuse. ing. They will say we are stretching each of these lawyers could earn $88 Let me spell this out. this one. Lawyers aren’t really asking million. And what kind of hourly fee is The tobacco bill is an all-encompass- for that much money, it will be said. that for our Texas trial lawyers? That ing Federal regulatory scheme. The They aren’t that greedy, some will is $88,000 an hour—$88,000 an hour for scheme will expand the Federal juris- claim. They just want to be paid a fair the plaintiffs’ lawyers in Texas. And if diction over tobacco products, regulate wage for a good day’s work. Well, let’s that is not outrageous enough, the $2.2 the manufacture, advertising, and sale see if I am exaggerating. Let’s see if billion for attorneys in Texas have to of tobacco products, fundamentally af- the trial lawyers just want a fair wage be paid out of the Medicare money. So fect and alter past, present, and future for a good day’s work. Let’s take a lit- who do we pay, the sick and the elderly litigation over tobacco products, and tle tour of the ‘‘national lawyer enrich- or the greedy and the lawyerly? facilitate the implementation of the ment deal.’’ Let’s compare the tobacco trial law- settlement reached between 40-some- In Minnesota, where a few lawyers yers to the rest of the world. Let’s see odd States and the cigarette manufac- are reportedly seeking to rake in ap- how $88,000 an hour compares to the av- turers. proximately $450 million, the lawyers erage wage of others in our booming It would defy all logic and reason to in Minnesota actually took the case to national economy. pass this type of sweeping Federal reg- trial, so it is reasonable to assume that First, we know that minimum wage ulation without including some type of they employed more attorneys and put mandates that workers be paid $5.15 an minimal regulation for the payment of in more hours than some lawyers in hour. We certainly know that the to- attorneys’ fees for civil actions af- other States. So let’s assume that 50 bacco trial lawyers are making a heck fected by the bill. Basic fairness re- lawyers worked a total of 100,000 hours. of a lot more than the minimum wage quires that we not neglect this critical These 50 lawyers would each take home earner. Senator KENNEDY will have to issue. $9 million for his or her labor—$9 mil- pass an awful lot of minimum wage Throughout the debate over the to- lion. And what is the hourly fee for the hikes this year to keep up with the bacco settlement, we have constantly hard-working plaintiffs’ lawyers in plaintiffs’ lawyers. In fact, we are heard assertions that the tobacco com- Minnesota? It is $4,500 an hour, Mr. going to authorize the trial lawyers to panies have gone after women, chil- President, $4,500 an hour for the plain- earn nearly 50 times the minimum dren, and the elderly. If we don’t pass tiffs’ lawyers in Minnesota. wage under the Faircloth amendment. this sensible fee cap, then we will not Well, let’s take a look at Mississippi. Simply put, the tobacco trial lawyer only be creating an exclusive club of We will stop off in Mississippi on our is also making a heck of a lot more trial lawyer billionaires—that is with a national tour. The latest reports out of money than every other wage earner in ‘‘b,’’ Mr. President, billionaires—but Mississippi are that the lawyers are our country—everybody. As Senator we will be unleashing a legion of law- seeking $250 million. Assuming that 25 FAIRCLOTH has pointed out, the baker yers to prey upon these very same per- lawyers worked on these cases for earns $7.65 an hour; the barber, $8.37 an sons in future tobacco cases affected by 25,000 hours, the Congress would be au- hour; the auto mechanic, $12.35 an this bill. Surely, nobody in the Senate thorizing each lawyer to receive $10 hour; the carpenter, $13.03 an hour; the would want such a result. million a piece. police officer, $16.65 an hour; the phar- No one is trying to deny any lawyer Let’s break that down on an hourly macist, $25.98 an hour; all the rest of a fair wage. Surely, $250 an hour, which basis. If each of these lawyers worked the lawyers, $48.07 an hour; and the is in the Faircloth amendment, is more 1,000 hours exclusively on the tobacco doctors, $96.15 an hour. That is what than a fair wage by the standard of litigation, that would enable them to everybody else is making. The Fair- anybody else living in our country. earn $10,000 an hour. Pretty good day’s cloth cap would bring the trail lawyers’ A vote for the Faircloth amendment pay, I would say—$10,000 an hour. stake back to the edge of reason. The is a vote for reason and sanity. Let’s Now let’s stop off in Florida, and this cap would allow lawyers to recover stop the National Lawyer Enrichment is better than Disney World. A handful their costs as well as a reasonable Tour before it starts. of trial lawyers in Florida are trying to hourly rate as high as $250 an hour. Mr. President, just a couple of other take us for a ride, the ride of our lives. I might say even the $250-an-hour observations that I would like to make These fellows are looking to receive as rate sort of makes me cringe. I suspect before relinquishing the floor. much as $2.8 billion. One lawyer has al- if the Senator from North Carolina had Neither the Contracts Clause nor the ready sued for his $750 million share of his way about it, it would be lower Due Process clause prohibit regulation the pot. And we don’t even have to than that. But that is what the amend- of attorney fees as part of a broad, make assumptions in Florida because ment states. comprehensive regulatory bill. the judge has already done the math I know that amount is not exactly The Court has pointed out that a for us. The judge looked at the greedy $88,000 an hour. I would not argue that ‘‘party complaining of unconstitution- grab by the lawyers and concluded that $250 an hour is as good as $88,000 an ality . . . must overcome a presump- the demands for attorneys’ fees—and hour. But it is not exactly chicken tion of constitutionality and ‘establish this is quoting the judge—‘‘Simply feed, and it is way the heck more than that the legislature acted in an arbi- shock[ed] the conscience of the court.’’ anybody else in America is making on trary and irrational way.’’’ The judge concluded that even if the an hourly basis. I would say there are It is neither arbitrary nor irrational lawyers worked 24 hours a day, 7 days a lot of us in the Senate who would to regulate attorney fees as part of a

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00077 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5108 CONGRESSIONAL RECORD — SENATE May 19, 1998 comprehensive federal effort to expand ity in future cases, (4) making it easier And the irony, I say to my colleague federal jurisdiction over tobacco prod- for plaintiffs to recover by changing from South Carolina, is that much of ucts, regulate the manufacture, adver- the burden of proof and establishing a what we know about all of the tobacco tising and sale of tobacco products, presumption that certain diseases are companies’ tactics of misinformation fundamentally affect and alter past, caused by use of tobacco products, and and deceit come from those docu- present, and future litigation over to- (5) creating a national public database ments—from the State of Minnesota, bacco products, and facilitate the im- with incriminating documents to use from that case, from that settlement. plementation of the settlement against tobacco companies in present It has a lot to do with the fact that reached between forty-some-odd states and future litigation. people in the country want us to pass and cigarette manufacturers. In fact, it No court would view these substan- tough legislation. It has a lot to do would defy all logic and reason to pass tial benefits for plaintiffs’ attorneys with the fact that Minnesota led the this type of sweeping federal regulation and conclude that they have suffered way. without including some type of mini- an unconstitutional taking. Even the What we are really talking about mal regulation for the payment of at- CRS document referenced by the oppo- here is something very historic. These torney fees for civil actions affected by nents of this amendment clearly spells States went on a contingent fee basis this bill. out that ‘‘indeed, the Supreme Court with lawyers, took on the tobacco com- Even CRS—when looking at a stand- has never found a taking based on fed- panies, and these settlements were his- alone fee cap last October—determined eral legislative alteration of existing toric because these were the first time that ‘‘it seems very likely that the pro- private contracts.’’ that this tobacco industry had ever posal in question would not violate due Mr. President, I commend the distin- lost in court. Despite the long odds, At- process.’’ guished Senator from North Carolina torney General Humphrey and other Federal courts have routinely upheld for an outstanding and important attorneys general took on the indus- laws that abrogate past contracts, so amendment. There should be no to- try, went with contingent fee, and the long as those laws have a rational bacco bill at all—at all—unless this un- tobacco industry tried to stop it. They basis. It is certainly a rational basis to just enrichment of this select group of lost in Minnesota. And because of this regulate fees as part of a broad regu- lawyers is curbed. The Faircloth work, with 34 million documents, addi- latory package. Moreover, it is rational amendment would do that. I commend tional information, a record of deceit to ensure that an equitable amount of the distinguished Senator from North and misinformation by this industry— finite resources will be available to Carolina for his good work, and I am that is what this debate is all about. protect the national public health and happy to be a cosponsor of his amend- This is not about anything other welfare and to compensate those who ment, and I yield the floor. than making sure that when consumers suffer from tobacco-related diseases. Mr. WELLSTONE addressed the want to take on a powerful industry In fact, the Supreme Court has de- Chair. like the tobacco industry, or the State clared that ‘‘Congress may set mini- The PRESIDING OFFICER (Mr. GOR- of Minnesota wants to take on a power- mum wages, control prices, or create TON). Who yields time? ful industry like the tobacco industry, causes of action that did not previously Mr. HOLLINGS. I yield 5 minutes to they won’t be able to do so. As a mat- exist.’’ the distinguished Senator from Min- ter of fundamental fairness, this In one classic Supreme Court case, nesota. amendment should be defeated. I just the Court held that Congress could The PRESIDING OFFICER. The Sen- have to simply say, I don’t know where retroactively cancel a ‘‘free rail pass ator from Minnesota is recognized for 5 my colleague from Kentucky gets all of for life’’ given as part of a settlement minutes. his arithmetic from—I am talking of litigation. Moreover, to accept the Mr. WELLSTONE. I thank Senator about Senator MCCONNELL from Ken- trial lawyers’ takings argument, one HOLLINGS. tucky—— would also have to consider it a con- Mr. President, here we go again. Now Mr. FORD. Thank you. Thank you. Mr. WELLSTONE. Not Senator stitutional violation for Congress to re- we find out that this bill covers not FORD—dividing up how many lawyers quire States to abrogate contracts with only prospective actions but it also has worked on this and how much they got state employees in order to increase been expanded to cover, and thereby af- paid and all the rest of it. I never heard the minimum wage. fect, four State settlements that have any of that before. Professor Brickman has explained already been finalized in Mississippi, that ‘‘[i]f individual parties could insu- Here is what I do know. It is true the Florida, Texas, and Minnesota. State of Minnesota took on this indus- late themselves from congressional leg- We have been through this before in islation by entering into private con- try. It is true the tobacco industry, Minnesota. The tobacco industry chal- just like some of my colleagues, don’t tracts before such legislation were en- lenged the State entering into a con- acted, then: want that to happen. It is true they tingent fee with attorneys. They took challenged the contingency fee, just the result would be that individuals and cor- this challenge to the trial court, to ap- porations could, by contracts between them- like my colleagues are trying to do pellate court, and the Minnesota Su- here today on the floor of the Senate. selves, in anticipation of legislation, render preme Court, and they lost every time. of no avail the exercise by Congress, to the But the tobacco industry lost in Min- full extent authorized by the Constitution, of This amendment is another tobacco nesota in a case that went to the Su- its power to regulate commerce. No power of company amendment, and I believe preme Court. Minnesota, working with Congress can be thus restricted. The mis- they will lose again on the floor of the lawyers and working with consumers, chiefs that would result from a different in- U.S. Senate. unearthed—what is it again; let me terpretation of the Constitution will be read- Mr. President, I have to respond to make sure I have the exact figure—34 ily perceived. some of what I have heard my col- million pages of documents. Finally, the ‘‘constitutionality of the leagues on the other side say about Mr. President, this amendment amendment under a Taking Clause how these attorneys have done so lit- should be defeated. If it is adopted, it analysis is further buttressed by the tle. That is a bitter irony, from the would be great for the tobacco indus- fact that attorneys affected by the reg- point of view of a Senator from the try, but it would not be great for the ulation are receiving substantial finan- State of Minnesota. Minnesota, for in- consumers and people we represent, cial benefits from [the Tobacco Bill].’’ stance, from August 1994, when the and I think Minnesota is living proof of (Brickman Letter at 2.) These substan- case commenced, until January 1998— that. tial benefits for attorneys, financial and we had numerous, unprecedented pre- I yield back the remainder of my otherwise, include the fact that the trial and discovery proceedings. Over 34 time. federal government is: (1) ratifying the million pages of documents were re- The PRESIDING OFFICER. Who national tobacco settlement, (2) estab- viewed. The majority of them had yields time? lishing a national trust fund to provide never been disclosed. The tobacco com- Mr. WELLSTONE. Will my colleague States with Medicaid reimbursements panies fought this over and over and be kind enough to give me 10 seconds? and attorneys with a basis for recov- over again on privilege claims. They Mr. HOLLINGS. I yield 3 or 4 more ery, (3) removing limits on tort liabil- lost. minutes.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5109 Mr. WELLSTONE. I thank my col- The PRESIDING OFFICER. The Sen- know what you’re doing, you paid too league. I won’t need that much time. ator from South Carolina has less than much.’’ We weren’t even in on it. We PRIVILEGE OF THE FLOOR 15 minutes. didn’t even help. But now in the end, Mr. WELLSTONE. Mr. President, I Mr. FORD. About 4 minutes. we say, ‘‘No, you can’t have that, ask unanimous consent that Joe Good- The PRESIDING OFFICER. The Sen- that’s too much.’’ win, who is an intern, be allowed the ator from Kentucky. They took the chance. How much did privilege of the floor for the duration Mr. FORD. I thank the Chair, and I it cost? How much did they pay? Ev- of this debate. thank my friend from South Carolina. erything they have paid comes out of The PRESIDING OFFICER. Without I am not a lawyer, and I don’t under- this hourly cap. I am sure that some objection, it is so ordered. Who yields stand all the work that lawyers do. lawyers do better than others. Lord, time? When I was growing up, my dad said a when I was in the insurance business, I Mr. FAIRCLOTH. Mr. President, I little knowledge of the law is dan- would have loved to have had a boat. I yield myself 3 minutes. gerous. Get yourself a good lawyer and had a johnboat I fished in, and I was We have had a lot of conversation stay with him or her. That is what I proud of it. I had a decent automobile— today about limiting attorneys’ fees, have tried to do. I didn’t have a jet to fly around in that this would be a new thing, that I have been in the insurance business, —but I was proud of it. I made it by and I understand that very well. How the Federal Government should never being competitive. I went to the people many times has an independent agent get into limiting the fees that these who had an opportunity to give me a down in some small community—and I magnificent saviors of society, the chance, and I asked them, ‘‘Can I bid?’’ have done it on many occasions—been trial lawyers, have done for us. We worked it that way. asked to make bids on a piece of prop- We limit attorneys’ fees to every The PRESIDING OFFICER. The 4 erty or on a fleet of trucks or liability, other attorney under the Equal Access minutes yielded has expired. or whatever it might be, and the staff to Justice Act. We limit to $125 attor- Mr. FORD. I ask for 1 more minute. in that little agency work for hours, ney fees against the Federal Govern- Now we are saying you can’t just do day and night, putting together a com- ment in civil rights cases. Now, maybe it. If there ever was an intrusion in pri- prehensive bid. Lo and behold, we lose. they are less important than the to- vate practice, private business—I am That is part of the game. surprised at the Republican side. Nine- bacco case, but they only get $125 an Then we get another bid. It may be ty-eight percent of the farmers say we hour. on a county or on a city, and we work The Criminal Justice Act has a cap want it one way, and they say, ‘‘You for days and into the nights putting to- can’t have it because you don’t know in most criminal cases of $75 an hour, gether a comprehensive bid. And we and the Internal Revenue Code limits lose. what you’re talking about.’’ to $110 an hour a cap for winning par- But lo and behold, one time we sub- Lawyers go out and win a case, and ties in tax cases. And here we are talk- mit a comprehensive bid and what hap- they say, ‘‘You’ve got too much by ing about $88,000 an hour in Texas, and pens? We win. It makes us feel good. winning, we’re going to take it away this is a fixed, done deal. This is not a But then somebody comes along and from you.’’ guess—$88,000 an hour. says, ‘‘Ford, you’ve made too much I don’t understand what this body is I just had to think what that meant. money.’’ Well, I have lost 100 times and trying to do. I don’t want you to take A trial lawyer makes more in an hour finally win one and they say, ‘‘Ford, anything out of my pocket, but that is and a half than a U.S. Senator makes you’ve made too much money, you just the name of the game, as I see it, and in a year. Now, maybe he is worth can’t do that.’’ So they limit the when you win, you win; when you lose, more, according to the testimony we amount of money I can make as an in- you lose. When you lose, you pay it all. have heard, but in an hour and a half, surance agent. When you win, you get to pay off what a Texas trial lawyer makes almost ex- It is the same thing that happened it cost you. You don’t put all that in actly the same amount of money that yesterday. Ninety-eight percent of the your pocket. we pay a U.S. Senator for a full year’s farmers who have tobacco quotas voted So I go back to the insurance busi- work. And they are saying, ‘‘No, you to keep the farm program. But in here, ness. We spent hours and hours trying cannot cap these great people, they on the Senate floor yesterday after- to be competitive and win one. But we have saved society.’’ Time after time noon, they said that 98 percent didn’t did not win them all. We lost a lot of we hear what they have done to save know what they were talking about— them. But when we did win one, I mankind. Well, I don’t think they are ‘‘We’re going to wipe out the quotas be- would not want somebody coming saving mankind. They are saving their cause we know more than you do.’’ along saying, ‘‘You have made too own kind, and that is exactly what That is why they don’t like politicians much.’’ they are working on. in Washington. They don’t want to do It is like gambling. You have to We go back to what they are worth. what their constituents want them to pay—they had an amendment around I don’t see how anybody can justify do. here saying, ‘‘If you win, you have to this. They say we are setting fees. We Here we are saying after 98 percent of pay tax on it; but if you lose, you can’t set fees on doctors of all types—anes- the people voted one way, ‘‘You don’t deduct it.’’ thesiologists. For all doctors, we set know what you want, and we’re going Oh, we are doing pretty good around fees. We set hospital rates. We set law- to take care of you.’’ It is the same here, Mr. President. I hope that some- yer’s fees. But yet, when it comes to way with the attorneys general. Over day we can come down and have a little these exorbitant, ridiculous fees that 40 of them took on the tobacco indus- common sense and we can try to work the American taxpayers are paying— try. It was a pretty awesome cause, and this to the advantage of everybody in and I repeat that 70 percent of this tax they have won. They worked out a this country under the basis that we that is being collected and given to deal. are competitive. It is a free system. these attorneys is coming from people Now we say, ‘‘After you have done all And if you come out ahead, Lord, let’s making less than $40,000 a year. Ex- that, you can’t charge that much.’’ don’t say, ‘‘You made too much.’’ Let trapolated, that is about 26 minutes’ You sign a contingency fee. What is a us praise them for being good. The work for a Texas trial lawyer. contract for? Are we the ‘‘big brothers’’ prize is being good. You made it work. The PRESIDING OFFICER. The Sen- that vitiate contracts? I don’t think so. So we are saying, ‘‘If you are good, ator has used the 3 minutes he has You talk about protecting little fel- you are going to be handicapped.’’ That yielded himself. lows. As I understand the tobacco deal, sounds like a horse race to me. I come Mr. FAIRCLOTH. I thank the Chair. it came from a little fellow whose sec- from Kentucky. We race Does Senator SESSIONS wish to speak? retary lost her mother, and he figured thoroughbreds. If you have one that is Mr. FORD. Mr. President, are we out that the States could sue. A little way out front, you better put 126 swapping sides now? fellow made it, and he came along and pounds on him. If you have one that is Mr. HOLLINGS. I yield such time as others joined with him. light, you put 112 or 114. necessary to the distinguished Senator We are now saying to these 40-some- So that is what we are trying to do from Kentucky. odd attorneys general, ‘‘You don’t here. If you are a thoroughbred doing a

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5110 CONGRESSIONAL RECORD — SENATE May 19, 1998 good job, we are trying to handicap you are not required to be bound by this any fee arrangements entered into, and from running a race. and, therefore, the 10th amendment, in it would limit the payments of attor- Well, Mr. President, I hope this my opinion, would not be implicated. neys’ fees to $250 an hour. That is not amendment is not approved. I hope my They could opt out and not be bound by $250 an hour total for the firm; that is friend from South Carolina wins on this agreement. for the lawyers that are involved in this one. Then we can get on to other But they have sought our legislation this, and there may be more than one things and help the farmers that have to comprehensively deal with this in a lawyer involved in it. So it isn’t a com- a tobacco quota. Let them win a little fair way. And that would call upon us, plete limitation. something in the days to come. I submit, to contain the abuses of the I have heard some comments that I yield the floor. attorneys fees. this may just be the start of limiting The PRESIDING OFFICER. Who Mr. President, I conclude my re- other kinds of occupations. Perhaps it yields time? marks at this time and recognize Sen- is, and perhaps it ought to be. Again, I Mr. SESSIONS. Mr. President, I ator ENZI from Wyoming, who I under- think the people would be appalled to would like to make a—— stand wishes to make remarks, unless find out that people might make up to The PRESIDING OFFICER. Does the our time has expired and you want to $88,000 an hour. And that might not Senator from Alabama ask unanimous go back to your side, which you should even be the highest case in it. consent to use time from the Senator be entitled to. I do have to give some reference to from North Carolina? Mr. HOLLINGS. We only have about the accountants who were mentioned. Mr. SESSIONS. I did not hear the 7 minutes left. So you have a half-hour In accounting ethics, the amount that President. or more. you charge cannot be based on what The PRESIDING OFFICER. The Sen- Mr. ENZI addressed the Chair. you find or the amount that you are ator from North Carolina controls The PRESIDING OFFICER. The Sen- working with. It is based on hours time. ator from Wyoming. worked. We already have that kind of a Does the Senator ask unanimous con- Does the Senator from Wyoming ask limitation. sent that he be allowed the use that unanimous consent to take time from I don’t know of any other occupation time? the Senator from North Carolina? where you get to find a pot of money Mr. SESSIONS. Yes. I ask unanimous Mr. ENZI. I ask unanimous consent. and then, without being injured or consent that I be allowed to use time The PRESIDING OFFICER. Without damaged in the case, be able to share from the Senator from North Carolina. objection, it is so ordered. in that pot of money. Usually you have The PRESIDING OFFICER. Without Mr. ENZI. Thank you, Mr. President. to have some separate arrangement for objection, it is so ordered. And I say thank you to the Senator it, some kind of a limitation. Part of Mr. SESSIONS. Mr. President, I from North Carolina. that is to discourage greed. would like to mention a few things. Mr. President, I do rise to support What is happening with the tobacco First of all, attorneys’ fees do affect the amendment numbered 2421 which is bill is that there are some wealthy and the settlement because it is money offered by the Senator from North connected trial lawyers that are lining otherwise available to be paid by the Carolina, Senator FAIRCLOTH. I am their pockets from the settlement sup- tobacco companies that could be used very much in support of this amend- posedly made on behalf of the Amer- for health of the children and the good ment. And part of it is as a protection ican public. This bill would impose one things this bill seeks to do, for that to the attorneys. I know they are very of the most regressive taxes in Amer- money is directly usable for good sensitive to the kind of reputation they ican history with outrageous legal fees things, and it ought not to be given get in a lot of instances, and this is one charged by insider lawyers, some of away in unprecedented windfalls for at- of those ‘‘save the reputation of the whom become billionaires as a result of torneys, many of whom did little work. lawyers’’ amendments. I am sure a lot their reputation for the States and I know the distinguished Senator of people out there are not used to class actions. from Minnesota said that his lawyers making $88,000 an hour, and as a result A document here mentions that the did a lot of work. And I think that is they are probably a little upset with attorney general of Mississippi, Mike probably true. Perhaps the Minnesota the attorneys who might get that in Moore, got to pick the No. 1 campaign attorneys have done more work than some of these tobacco cases. contributor, Richard Scruggs, who re- any other group of attorneys in the One of the things that people are see- ceived $2.4 million in fees for the country. And they were paid, I believe, ing in this country is a new lottery. State’s asbestos litigation. Then he got $450 million. That is not $2.8 billion. And this new lottery is one that re- to lead the Medicaid recovery suit. That is 5, 10 times what they made. So quires you have an attorney to scratch Minnesota lawyers might want to they did a lot of work in Minnesota, your card for you. The tobacco situa- know why Attorney General Humphrey and they are going to get fees far less tion is probably one of the new easy chose Robins, Kaplan, with a 25 percent than this settlement would call for. targets. In fact, I am predicting that fee arrangement when Texas, Illinois, People say we should not mess with the courts are soon going to be clogged Indiana, and West Virginia all had the contracts. But the other arguments with lawsuits, and part of that is be- lower percentages than that. They from the people opposing the Faircloth cause there are attorneys out there were the ones that had to do the harder amendment are: Don’t worry about it. who can see this as a retirement bill as work, the initial action. Florida reduced their fees. Although well as an easy target. It has been ad- The Wall Street Journal reported Texas hasn’t yet, they may yet. And judicated, it has been worked, and it is last fall that four lawyers who helped there are arbitration policies to reduce easy to see that the tobacco companies to settle Florida’s billion-dollar wind- fees. have been hiding documents and doing fall were now demanding 25 percent of So they are already admitting it is a number of other things. the settlement, or $1.4 billion. Florida appropriate to reduce these fees. And Along with these remarks, I want to Attorney General Bob Butterworth has as was noted, we contain fees for doc- state I am probably one of the few who called that enough to choke a horse. tors and lawyers and every other kind has not received any money from the In Texas, Governor Bush has filed a of litigation—on many other kinds of tobacco lobby. I have been very con- legal challenge to the $2.3 billion con- litigation in the country. And we are cerned about these issues. I grew up in tingency fee, part of the recent Texas comprehensively dealing with a health a house where both of my parents settlement. He did that in the interests problem that is significant. smoked, and my dad paid probably the of the taxpayers who may end up pay- Now, we are here setting about to ultimate price for that, even though he ing for that. pass legislation to control abuses by quit before he passed away. This is not a defense of tobacco or tobacco. And I submit we can control The amendment would only require the executives who run the industry. It abuses by attorneys. lawyers to provide an accounting of is quite the opposite. In fact, I am get- Let me make one more important their legal work to the Congress in re- ting a lot of comments from folks in point. With regard to this litigation, lation to the legal actions that are cov- my State. One lady said, ‘‘Let’s see States have the right to opt out. They ered by the underlying bill, including now, the tobacco companies have been

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5111 abusing my body for all of these years ticular amendment has nothing to do plaintiff lawyers who have not yet been while I have been smoking, and now with the tobacco deal. This applies paid would be subject to the cap, many you are going to punish them, and the whether or not a company is making a tobacco company lawyers have already way you are going to punish them is to deal with the government or not. It ap- been paid an hourly rate that is signifi- tax me?’’ plies to Federal lawsuits. It applies to cantly higher than $250 per hour. They are figuring that out all over State lawsuits. This has nothing to do While I strongly disagree with this this country. It isn’t the companies with the tax money we are going to be one-size-fits-all approach, I share Sen- that are going to be paying the tab. In raising if this bill passes, which I will ator FAIRCLOTH’s concern with exces- these lawsuits, it isn’t the companies oppose. It is dipping into a completely sive attorneys fees. I suggest, however, that are going to be paying the tab on different area that has nothing to do that there are other methods and other that either. Sometimes it is the tax- with the tobacco legislation because we limits that are far less burdensome on payers. feel like trial lawyers are getting fees Congress, and will provide a more equi- In a lot of these lawsuits, it comes di- that are too great. table outcome. I urge my colleagues to rectly out of the amount of money that Mr. President, I don’t care what the join me in opposing this amendment. the individuals might have gotten. trial lawyers get, if it is something The PRESIDING OFFICER. Who They don’t have control over how that is agreed to by the parties and is yields time? much those lawsuits are going to be. If something that is supervised by the Mr. FAIRCLOTH. I yield 15 minutes that amount of money holds for the courts. It has been pointed out that in to the Senator from Texas. State of Texas, those attorneys will one case in Florida the courts found The PRESIDING OFFICER. The Sen- earn $88,000 per hour for their legal rep- that the fee was outrageous. That is ator has just under 20 minutes. Does he resentation. The American taxpayers the very point. If a court determines yield 15 minutes? Mr. FAIRCLOTH. I yield 10 minutes are going to be left holding the tab for that a fee is outrageous, they can set it to the Senator from Texas. a number of outrageous fees. aside. It is regulated by the courts. It The PRESIDING OFFICER. The Sen- I think it is proper for us, again, in is regulated by the States. Every State ator from Texas. defense of the legal institution, to in this Union regulates attorneys’ fees. Mr. GRAMM. Mr. President, let me limit those fees so people aren’t seeing If it is outrageous, if it is not justified, first say that I always enjoy hearing these as a lottery for attorneys where people can take a claim to the States. our colleague from Tennessee speak. I everybody else gets the pain and the Should the Federal Government and find myself agreeing with everything attorneys get the dollars. should we on our side of the aisle, of all he said. But it really has no applica- I ask that you support the amend- people, be urging the Federal Govern- tion to the bill which is before the Sen- ment. ment to get into the middle of private ate and the amendment which is sub- The PRESIDING OFFICER. Who lawsuits and deciding what fees ought mitted to that bill. I agree with the yields time? to be in cases where there is a Federal Senator from Tennessee. We ought not Mr. HOLLINGS. Mr. President, I court or a State court that has already to be involved in these things. But that yield 4 minutes to the distinguished decided, and has nothing to do with is what has brought us to the floor of Senator from Tennessee. Federal legislation otherwise? I think Mr. THOMPSON. Thank you, Mr. the Senate today because we are in- that is tremendously bad policy. volved in that. We are getting ready, as President. I think this whole tobacco approach, he said—his words are better than any Mr. President, I rise in opposition to quite frankly, is bad policy. I think words I could come up with—we are this amendment, not because I favor this idea of taxing waitresses and cab getting ready to tax waitresses and the underlying bill. I do not favor the drivers in order to give these same law- taxi drivers to collect $500 billion to underlying bill. yers attorneys’ fees of any kind is a $700 billion, which will be used, among I want to specifically address this bad idea. But the tobacco companies amendment and what is going on with other things, to pay lawyers. are bad guys, the trial lawyers are bad So to lament that we are in this de- regard to this amendment. We need to guys, and we are forgetting the prin- bate, I think, is something that I agree get back to the basic question of what ciples that we came up here and are with but it is not relevant to the de- we are all doing here, why we came supposed to be supporting; that is, let bate that is before us, which I want to here, and what we ought to be doing as the Federal Government do what they be engaged in. U.S. Senators. We who pretend to call are supposed to be doing, let individ- I spoke at some length this morning, ourselves conservatives ought to really uals have individual responsibility, let so I don’t need to repeat a speech I ask the question, whether or not we sovereign States make the laws, if they have already given. But, in watching want to get into lawsuits that have al- want to, and let private litigants go to this debate unfold, there are several ready been decided pursuant to con- court and fight it out before a jury of issues that have been raised that I tracts that have already been executed their peers. want to answer. between private practitioners of the Therefore, I oppose the amendment. The first issue is we should not be law and sovereign States, and to go in I thank the Chair. setting fees. I want to ask the Senator and say that we are going to abrogate Mr. GORTON. Mr. President, I ap- from North Carolina a couple of ques- what you have done to private citizens prove the Faircloth amendment that tions, if I could have his attention. Are agreeing to cases that have already seeks to limit attorneys fees in tobacco we not setting the equivalent of excise been decided and say we will undo all cases to $250 an hour. In addition to taxes to be paid by blue-collar workers of that. We, the Federal Government, being impracticable—it makes the all over America in this bill? we, the U.S. Senate, are going to get United States Congress bookkeepers Mr. FAIRCLOTH. Absolutely we are. right into the middle of that and we charged with tabulating every lawyer Mr. GRAMM. Are we, in this bill, not are going to require you to send billing hour in tobacco cases—the amendment setting out in detail, in fact in 753 records to the Judiciary Committee simply is unfair. While $250 per hour pages of detail, how we are going to that I sit on. may be just compensation in some spend every penny of this $500 billion I did not come to the U.S. Senate to cases, I do not agree that this arbitrary to $700 billion? review billing records from lawyers in cap is appropriate in all instances. Mr. FAIRCLOTH. We have detailed private lawsuits. Attorneys who took tremendous every dime of the expenditure, and now Now, we need to get away from decid- risks and initiated cases on novel theo- we have opposition to detailing the at- ing who the good guys are and the bad ries deserve, I believe, to be com- torney fees. guys are and just jumping on the bad pensated for more than those who filed Mr. GRAMM. Mr. President, the guys. Nobody likes trial lawyers. You the just-add-water complaints. Even point I make is that we have set out in heard a defense already about how late-coming attorneys in these ground- detail how we are going to take $500 great contingent fees are and they are breaking cases deserve to be paid at billion to $700 billion out of the pockets necessary, and all that is true, and so least as much as the tobacco company of blue-collar workers. forth. It is beside the point with regard lawyers. This amendment would not Let me remind my colleagues that 73 to this. The point is really us. This par- allow this, however, because, while the percent of this money will be collected

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5112 CONGRESSIONAL RECORD — SENATE May 19, 1998 from people and families who earn less we are going to have fees set, let’s let But I wanted to make my point, that than $50,000 a year, and people who Members of the Senate stand up and to say we shouldn’t be setting this fee make less than $10,000 a year will see cast a vote on this issue. Let’s not hide when we are setting everything else their Federal taxes rise by 41 percent behind some arbitration panel, which doesn’t make any sense. To say we as a result of this cigarette tax. That is will be made up exclusively, I assume, shouldn’t be abrogating contracts when set out in detail in the 753 pages of this of lawyers to make this decision. the bill specifically abrogates con- bill. The 753 pages of this bill set out in What is really the issue here? The tracts, it just does it through this arbi- detail how we are going to undertake issue here boils down to this: We under- tration board, which we shouldn’t hide the largest expenditure of taxpayer stand that when we are looking at a behind. money since we initiated in the Great payment, which has been estimated— I think the choice is clear, and I am Society the year Lyndon Johnson be- and I think correctly—at roughly $4 for the amendment. came President, and each and every billion to attorneys, given the billing Mr. THOMPSON. Will the Senator part is set out in here. records on the cases that have been yield for a question? My answer to the question is we tried, that comes—there are about Mr. GRAMM. If I have the time, I shouldn’t. We shouldn’t be setting 45,454 hours—what this really comes would. these fees. The assertion is we are set- down to is about $88,000 an hour as a Mr. FAIRCLOTH. I yield whatever ting everything else. We are setting an potential payment. time the Senator needs. Does anybody believe we would pass Mr. THOMPSON. I have a question. excise tax equivalent. We are setting an appropriation bill paying some It seems to me that we both agree that the expenditure in minute detail for $88,000 an hour? Well, maybe some be- we have a bill that we do not like and everything else. The legal fees will lieve it. Maybe we would. But I think that we have an arbitration provision arise from this settlement, which will that you would be kind of embarrassed in that bill that we do not like. That be adopted by Congress and signed by if you went back home and it became legislation has not passed yet. The the President. known that you were going to pay Senator says we are doing all of these So, if we are doing all of those somebody more for working 3 hours things—we might; we might not; that things, why shouldn’t we set fees? Ob- than we pay the President of the has not passed. viously, we should. United States for the entire year. I Would it not be better for the Sen- Mr. FAIRCLOTH. Will the Senator don’t think so. Why do we have this ator from Texas and me to join in try- from Texas yield for a question? kind of money in this bill? Because we ing to defeat that arbitration provision Mr. GRAMM. I would be happy to are spending somebody else’s money. and trying to defeat that bill instead of yield. Because as a prominent Democrat poli- adding to a bad provision an even Mr. FAIRCLOTH. There is great con- tician in my State said of this whole worse provision that goes against our versation that we are going into these tobacco issue, ‘‘We won the lottery. We principles, that gets us involved in pri- attorney settlements with tobacco won the lottery.’’ vate litigation, and that causes people companies; that that is wrong; that we All the Senator from North Carolina to have to send billing records up to shouldn’t do that; we are interfering in is doing is saying we are going to set the Judiciary Committee where we go a private contract. Yet, we are telling the fee at five times the normal fee through and try to justify some kind of the tobacco companies, without any that is set. It seems to me that is im- an hourly rate? question, cancel your contracts in ad- minently reasonable. As a matter of Mr. GRAMM. Let me respond to the vertising, whether it is television, bill- principle, if we were debating what our Senator’s question. Generally, the case boards, newspapers, racetracks. All rules should be in this debate, my view goes directly to the heart of the mat- those you cancel. You go back and is the States have settled these law- ter. If I thought that we could correct retroactively do it. And because we are suits and those settlements ought to every problem with the bill, then I trying to set caps on attorneys’ fees, stand. I believe that the Federal Gov- don’t think there would be a need for they say we are interfering in the pri- ernment ought to be looking at Federal this amendment. But my concern is vate sector. What is the other part of interests and letting the States settle that, given that anyone who opposes the bill? these issues. the bill is immediately tarred as being Mr. GRAMM. I would say the argu- If that were the case, then I think the lackey of the tobacco industry, ment is even stronger than that. The setting this arbitrary cap would make given the head of steam, at least out- whole purpose of this 753 pages is to ab- no sense. But the point is that is not side the beltway that the bill has, I am rogate all of those court settlements. what we are debating. We are debating not confident we can correct it, and if The whole purpose of this bill, the this great big, thick bill that goes back the bill ends up passing so that my 85- whole purpose of this 753 pages, is to in and changes the settlement which year-old mother has to pay more for interfere with each and every one of sets out the amount of money that is her cigarettes, which I wish she would those court decisions. That is the going to be paid, which pays a payment quit smoking, I would at least be able whole purpose. to the States that is not directly relat- to say that we guaranteed that no So if we are going to set out how we ed to what they settled for, which sets plaintiff’s attorney is buying a Lear jet are going to collect the money, if we out in detail how we are going to spend with that money. are going to set out how we are going this almost unbelievable amount of So this amendment will make the to spend the money, should we not set money, even for Washington, DC. The plaintiffs’ attorneys millionaires but it out how we are going to spend the idea that we would do all these things will not make them billionaires. money that relates to the portion of and then we would suddenly get Now, should we have the power to the settlement that will go to attor- squeamish when it comes down to stop them from being billionaires? If neys’ fees? guaranteeing that we are not going to this were a State matter and we were The second statement is we are abro- pay plaintiffs’ attorneys $88,000 an not involved in it, my answer would be gating contracts. Do we not have in hour, I think if we are suddenly going no. But this bill is a preemption of all this bill an arbitration panel that is to become immodest about what we are those State settlements, so how can we supposed to set these legal fees? The doing in this bill, if shame is suddenly do all those other things, set out in de- answer is yes. We do. In fact, this bill going to enter into our thinking, it is a tail where the money is coming from sets out in some detail an arbitration little bit late at this point. and how it is going to be spent, and panel that is going to set legal fees. So I agree that this whole exercise then leave the potential that we are So the argument that by setting out has us doing things we ought not to be going to be reading in the newspaper in law what the maximum legal fee is doing. But this is not my bill. I per- next month that a plaintiff’s attorney we are abrogating the contract, that is fectly well understand this is not the got $88,000 an hour from the tax im- a house we passed 15 miles down the bill of the Senator from Tennessee. His posed on blue-collar workers? I don’t road in this bill, because this bill sets sentiments on the bill are the same as want to risk that happening. That is up an arbitration panel to set the fees. mine. I hope we can improve it. I hope why I am for the amendment. All the Senator from North Carolina we can find something we can all be The PRESIDING OFFICER. Who is doing is saying, having decided that for. yields time?

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5113 Mr. FAIRCLOTH. I yield 5 minutes to more appropriate figure, $100,000 an and they haven’t gotten anything yet— the Senator from Kansas, Mr. hour or $250 an hour? zero hours. And yet you all want to BROWNBACK. With that, everything having been come in here and play this game about The PRESIDING OFFICER (Mr. said four or five times, I yield back the you are all worried about who is get- SMITH of Oregon). The Senator from remainder of my time to the manager ting the money. Kansas. of the bill. Mr. President, it is absolutely ludi- Mr. BROWNBACK. Mr. President, I The PRESIDING OFFICER. Who crous for this group to come in. It is thank the Senator from North Carolina yields time? another design. It is just that you take for yielding me 5 minutes. I want to Mr. HOLLINGS. How much time do I a poll. They don’t like lawyers in the stand up and speak on behalf of Grand- have remaining? poll, so they make the little TV short ma Gramm, that her money not go to The PRESIDING OFFICER. Three in the campaign this fall and they say lawyers as well. minutes 45 seconds. so-and-so is in the pocket of the trial Mr. President, I have been following Mr. HOLLINGS. Mr. President, if lawyers, yak, yak, yak, and everything this debate back in the office. I fol- there was any real sincerity or concern else of that kind. But I will show where lowed it for some period of time. I about money—and, incidentally, I the attorneys general and the Gov- serve on the Commerce Committee. I never have seen my Republican friends ernors and the parties all agreed and initiated this debate in the Commerce ever worry about people making the work did it. And we didn’t do it up Committee and discussed it there. It money. You all really are worried here in Washington. Now is no time to about people making money? Come on. seems as if the points have been pretty come in here and start preying on peo- You know and I know they would come well made, pretty significantly made ple on an agreement that has already in here and say, here is the head of and repeated in the true tradition of been made. Philip Morris—and I got all these the Senate about five times, so we all The PRESIDING OFFICER. All time things, billable hours—$85,779,000 with get it pretty clearly. yielded to the Senator from South One thing that I want to point out, stock options there. That is his pay, Carolina has expired. though, at this juncture, because the according to the Wall Street Journal. The Senator from North Carolina. But I can play that game of so much debate has been engaging, is whether Mr. FAIRCLOTH. How much time do an hour. Let’s talk about the 5 years or not the Senate should set legal fees, I have? with nothing an hour. ‘‘He either fears The PRESIDING OFFICER. Three whether we should get involved in this. his fate too much or his dessert is And I generally, as a principle, would minutes 9 seconds. small,’’ we say in the practice, ‘‘to fail Mr. FAIRCLOTH. I yield 2 of those say no, we should not, but the fact is, to put it to the touch and win or lose in this bill we already are setting legal minutes to the Senator from Alabama. it all.’’ The PRESIDING OFFICER. The Sen- fees. We are setting them in this bill. And the lawyers in Florida, in Texas, ator from Alabama. And so to the extent that we are going in Minnesota—nothing an hour as of Mr. SESSIONS. Mr. President, we are to set them, I think the only question now. Instead of a jackpot, they are hit- looking at a situation that is literally for us to ask ourselves is how much. ting a hijacking on the floor of the intolerable. It is not acceptable to have Should it be nearly $100,000 an hour Senate by a crowd that is trying to these kinds of fees. I know contracts or should it be $250 an hour? As to the make TV shorts that HOLLINGS is in were entered into, but nobody expected question of whether or not we are set- the pocket of the trial lawyers. The it to break the way it did. We have law ting legal fees, they are being set in truth of it is, I am trying to get into firms in States that literally did only a this bill. In this bill, we are providing their pocket. I can tell you that right few weeks’ worth of work; States are the money. We are setting in place the now. And I might succeed. I got some going to recover billions of dollars, and mechanism to give this money to the names here from the different Senators they are going to get 15, 20, 25 percent trial lawyers. around that seem to know them better of that recovery. We already have pro- That is happening. I don’t care how than I do. visions in this bill, agreed to by the you cut it. That is what happens if this But in any event, the comeuppance is President and the trial lawyers and the bill passes. If this bill doesn’t pass, that blood, sweat, and tears. There members of the other party, to contain that doesn’t happen. We are setting the isn’t any question about it, by gosh, some of these fees in a poor and inef- amount the lawyers are going to get. when you take the little lady who fective way. I say if we can do it that The only question that remains is how came in, and they decided to bring the way, let’s do it straight up. Let’s have much per hour is good compensation. case, and he got his friends in and they a fair fee per hour: The more hours you Now, I understand the good Senator worked it. And I asked them. I said, ‘‘I work, the more money you get paid. from South Carolina. He and I debated saw one account they had $5 million in- We have evolving all sorts of contracts this in the Commerce Committee. He vested in the Mississippi case.’’ They in this case and abrogating them, and thinks they are entitled to whatever said, ‘‘Well, they got that from the as- we can certainly make a rational they can get because they were the bestos cases and everything else.’’ agreement on attorneys’ fees. ones willing to put forward this litiga- Maybe that is what it is; the Chamber I yield the floor. tion. They were the ones willing to put of Commerce just doesn’t like class ac- Mr. FAIRCLOTH. I thank the Sen- themselves on the line. They were the tions. But that is cleaning up bad med- ator. ones willing to say, I am going to go ical devices, the implants, the asbesto- The PRESIDING OFFICER. The Sen- out here, and I may not get a dime or sis, and now cleaning up tobacco. ator from North Carolina. I may hit the jackpot. I hit the jack- This is not a billable hours thing. Mr. FAIRCLOTH. We have been on pot. They haven’t got billable hours. Zero this now for several hours, and we have So they are entitled to get that. I un- hours, 1993; zero hours, 1994, 1995, 1996, come down to two things: Should we derstand that. But I can’t vote for that. 1997, 1998. They haven’t gotten a dime. abrogate contracts or not? They say I can’t in the Senate say I am going to And you all are trying to hijack them they are contracts with these attor- tax the people so that we can transfer on what has been agreed to by the at- neys, they have made these contracts. $100,000 per hour in legal fees. torneys general, by the Governors, by Well, maybe they have. But we are I think Grandma Gramm would say the clients and everything else, preying writing 750 pages of law abrogating $250 an hour is too much, too, but it is around like vultures on agreements contracts that the tobacco companies a lot closer and a lot better than made. Ex post facto now, they want to have written with advertising agencies, $100,000 per hour. And this bill sets come in and show how concerned they every condition conceivable. It is 750 those legal fees. No matter how you are. If you had been concerned, you pages of abrogating contracts. cut it, it puts the money in place to set would have done something about it. I Now, if anyone can sit here and tell those legal fees. Without this bill, that have been up here 30 years, and they me that they believe that $88,000 an money doesn’t go. With this bill, that haven’t done anything other than put hour, which is the established fee on money does go to lawyers. So it is only the ad on a packet of cigarettes. the Texas attorneys, is a reasonable a question of how much. I just ask my Now we have somebody who has fee, now, this is being paid by tax- colleagues to look at it. Which is the brought tobacco to the bar of justice, payers’ dollars; we are collecting this

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5114 CONGRESSIONAL RECORD — SENATE May 19, 1998 money from the working people. Sev- Santorum Snowe Thurmond I might mention, some of us also enty percent, as has been said by Sen- Sessions Thomas Warner have statements we would like to make ator GRAMM and many others, 70 per- ANSWERED ‘‘PRESENT’’—2 on the bill. We have been on the bill cent of it is coming from people mak- Boxer Lott now for a day. This is a very extensive, ing less than $40,000 a year. This is Fed- NOT VOTING—1 expensive bill. Some of us wish to eral tax dollars. It might not have Smith (NH) speak on the bill. We wish to tell our started out to have been Federal tax constituents what is in this bill, maybe The motion to lay on the table the dollars, but that is what it has become why we have some concerns, maybe so amendment (No. 2421) was agreed to. when we tax cigarettes and put the tax we might be able to influence people on Mr. HOLLINGS. I move to reconsider on these people. how various amendments might go. the vote. When I look at the reality, as I be- But I just tell my friend and col- Mr. MCCAIN. I move to lay that mo- league from Arizona, certainly the idea lieve was mentioned by Senator tion on the table. GRAMM, when a Texas lawyer makes in The motion to lay on the table was of going back and forth on amendments 3 hours more than the President makes agreed to. is acceptable, I think, for all Senators in a year, and a Texas lawyer makes Several Senators addressed the certainly on this side. But in all likeli- more in an hour and a half than a U.S. Chair. hood, there will be additional amend- Senator makes in a year, there is The PRESIDING OFFICER. The Sen- ments dealing with the issue we just something wrong with the system. We ator from Arizona. debated. might not be that good, but we aren’t Mr. MCCAIN. Mr. President, it is now Mr. MCCAIN. I say to my friend from that bad. our intention—— Oklahoma, I greatly fear there are lots The PRESIDING OFFICER (Mr. Mr. FORD. I apologize to the chair- of amendments right now that are SMITH of Oregon). The Senator’s time man. Could we have order? The Senate being contemplated on both sides. That has expired. is not in order. is why I think we have to start through Mr. HOLLINGS. Mr. President, under The PRESIDING OFFICER. The Sen- this process. the agreement I move to table the ate will come to order. I ask Members on this side to provide amendment. Mr. President, I ask for Mr. MCCAIN. Mr. President, I have us with their amendments—so we can the yeas and nays. several comments to make. start through this process. The PRESIDING OFFICER. Is there a First of all, it is time we started get- Mr. HOLLINGS. We are prepared on sufficient second? ting a list of the amendments. So we this side with the Kennedy amend- There is a sufficient second. would appreciate it if on both sides we ment. The yeas and nays were ordered. could have Members get their amend- Mr. MCCAIN. IT IS STILL OUR DESIRE The PRESIDING OFFICER. The ments so that we could start in the TO FINISH THIS BILL BEFORE THE WEEK- question is on agreeing to the motion process, as we always do, of narrowing END. by the Senator from South Carolina to down the amendments and seeing I yield the floor. Mr. GREGG. Reserving the right to lay on the table the Faircloth amend- which can be agreed to and start look- object. Is the unanimous consent re- ment, No. 2421. ing at time agreements. quest propounded? The yeas and nays have been ordered. Mr. President, the second thing I mention is that we will now be going, Mr. MCCAIN. No. The clerk will call the roll. as we have agreed amongst us to go, to The PRESIDING OFFICER. There is The bill clerk called the roll. the other side for an amendment. It is no unanimous consent request. Mrs. BOXER (when her name was my understanding that amendment Mr. GREGG. Mr. President, do I now called). Present. will be the issue of raising from $1.10 to have the floor? Mr. LOTT (when his name was $1.50 a pack. We would like to work on The PRESIDING OFFICER. Yes. called). Present. a unanimous consent agreement so Mr. GREGG. Mr. President, since I Mr. NICKLES. I announce that the that it would read that there would be have the floor, I understand there is Senator from New Hampshire (Mr. the amendment relative to $1.50, and some comity here on amendments back SMITH) is necessarily absent. no second-degree amendments be in and forth. But what I would like is to The result was announced—yeas 58, order to the amendment prior to the get an understanding, as we move nays 39, as follows: motion to table. Further, we would ask through this process, that those of us [Rollcall Vote No. 142 Leg.] if the amendment is not tabled, it be who have amendments which have YEAS—58 open to relevant second-degree amend- some impact on this bill and which Akaka Feinstein Mikulski ments, and the time between now and need some time to be debated are going Baucus Ford Moseley-Braun that time to be determined be equally to get a commitment for time and a Bennett Glenn Moynihan place when they will be brought up. Biden Gorton Murray divided, with a vote occurring on or in Bingaman Graham Reed relation to the amendment. I can offer my amendment at this Breaux Harkin Reid The Senator from New Hampshire time. It is not my inclination to do Bryan Hatch Robb wants assurance as to when his amend- that, if I can get an understanding Bumpers Hollings Rockefeller without losing the floor that I am Cleland Inouye Roth ment will be considered. We are trying Cochran Jeffords Sarbanes to work that out with the majority going to get a time to bring up my Collins Johnson Shelby leader. I know there are people on the amendment. Conrad Kennedy Smith (OR) I ask the leader of the bill if he would D’Amato Kerrey Specter other side who also want assurances for Daschle Kerry Stevens their amendments. I believe the Sen- be willing to agree—and opposing DeWine Kohl Thompson ator from Missouri, Senator ASHCROFT, side—if they would be willing to agree Dodd Landrieu Torricelli is also looking for the same. But it that the amendment on immunities, Domenici Lautenberg Wellstone which I think everybody is familiar Dorgan Leahy Wyden would be our intention at this time, Durbin Levin after the usual formalities, to move to with and is sponsored by myself and Feingold Lieberman the amendment on that side. Senator LEAHY, would be available to NAYS—39 Mr. NICKLES. Will the Senator be brought up at a time specific on Thursday so that there will be a rea- Abraham Enzi Kempthorne yield? Allard Faircloth Kyl Mr. MCCAIN. I am glad to yield to sonable lead time here, and that time Ashcroft Frist Lugar the Senator from Oklahoma. would be at 10 o’clock, assuming that Bond Gramm Mack Mr. NICKLES. Just for the Senators’ is agreeable to everybody and we have Brownback Grams McCain Burns Grassley information, now the Senate just had a 3 hours on that amendment and no sec- McConnell vote on limiting legal fees. That prob- Byrd Gregg Murkowski ond-degrees be in order and we proceed Campbell Hagel Nickles ably is not the only vote that we are to vote on it. Chafee Helms Roberts going to have on that issue. And the Without that sort of an assurance, I Coats Hutchinson Coverdell Hutchison Senator managing the bill, I com- am going to offer my amendment at Craig Inhofe pliment him for doing a very good job. this time.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5115 Mr. DOMENICI. Will the Senator other is the practice when we have a The Senator from Massachusetts yield? unanimous consent agreement. The wants to be recognized now as the next Mr. GREGG. I will not yield the Senate procedure is recognizing people Senator to propose an amendment. floor, but I yield for a question. I yield who, in a timely fashion, ask to be rec- Mr. NICKLES. Mr. President, I will to the Senator from New Mexico for a ognized, and they are the first on their be very brief. I am not trying to delay question. feet and they are recognized. my colleague from Massachusetts. Mr. DOMENICI. Senator GREGG, I went to great effort to try to see I am telling my colleague from Ari- doesn’t it seem like this is a very im- that no one objected to bringing the zona—and actually I told him in pri- portant bill? I gather that it is prob- bill up, because I think the bill needs vate what my colleague from Texas ably, in one fell swoop, adding more to be debated and I think we all need to just said—I am not going to agree to a money to government than anything be educated. But I am not going to unanimous consent. This proposal was we have ever done in any single bill in agree to a time limit on an amendment to vote on a $1.50 tax increase, and vote modern history. Don’t you think we that I have not seen, nor am I going to on or in relation to the amendment at have rules and we ought to take our agree to not having a second-degree 10 a.m. tomorrow morning. I am not time and do this in a normal manner amendment on an amendment that I going to. That is one of the largest tax that befits the Senate for one of the have not read, nor am I in any way increases in history. It says no second- most important spending bills that we going to limit my ability as one Mem- degree amendments. Some of us aren’t have had in decades? ber of the Senate to have a full debate. quite ready to go quite that fast. Mr. GREGG. I think that is probably So I would be happy to have the Sen- This idea of saying submit all your true. The Senator from New Mexico is ator be recognized to offer his amend- amendments—I am working on a bunch accurate. The normal manner is to ment tonight if we want a gentleman’s of amendments, but I will tell you we offer my amendment at this time, since agreement. It is a major amendment. If just got the bill last night. We were I have the floor. the Senator wants to require some de- being pretty collegial saying we are I am willing to wait until Thursday bate, we will want to look at it and see not going to object to going to the bill. to do that if I get assurance—— if we want to second degree. We may or We could have tied the Senate up for 3 Mr. MCCAIN. Will the Senator yield? may not agree tomorrow to having a days and had more time to study the Mr. GREGG. I yield. time limit on it. bill. Some of us need time to study the Mr. MCCAIN. Let me mention, the Not having seen the amendment and bill. Some of us are reading the bill and Senator and I just had a conversation not knowing exactly where we are, I there are interesting things to find. where I said he would achieve his goal just say to the Senator from Arizona, I On the first day the bill is on the of a date certain for his amendment am ready to move ahead. I would be floor to say we will have an amend- and he said he would agree to a time happy to have the Senator recognized ment introduced at 6 p.m. and we will agreement. but I am not ready to waive my right vote tomorrow morning at 10 a.m. on Mr. GREGG. If I have the representa- and the right of every other Senator to the largest tax increase, without giving tion of the Senator from Arizona that a full debate to offer second-degree us a chance to offset it, without giving sometime on Thursday, hopefully early amendments. I want to put people on us a chance to amend it, I think is a se- in the day, we will get this amendment notice of that. rious mistake. up, it will have a reasonable amount of Mr. MCCAIN. Let me say—I believe I Now, we are not going to be rail- time and will not be subject to second- have the floor—that is exactly what we roaded. It takes unanimous consent to degrees, to the extent if that is in the are doing. I just wanted to allow the pass this kind of amendment or get capacity of the Senator from Arizona, other side to propose an amendment this kind of agreement. I told my good and the representation from the other and then we will work on making sure friend from Arizona he is not going to side that that is possible, I am per- everybody has their views and this get it. So we can have the debate. We fectly happy to go forward. amendment is debated and discussed need to have the debate. We need to Mr. GRAMM. Will the Senator yield? thoroughly, and then we would look talk about whether this is a tax in- Mr. MCCAIN. May I say in response forward, obviously, to a time where we crease or price increase. I think we to the Senator from New Hampshire could vote on the issue. need to study this thing a little bit fur- that it has been the custom in this Mr. KERRY. Mr. President, if I could ther and not try to railroad it through body to go from one side to the other say to colleagues, there has been a re- the Senate. with amendments to start with. We quest for some colleagues to be able to I am happy to yield to my friend just finished with an amendment from speak on the bill. Last night, we were from Utah. this side and would like to move to here for a period of time and there Mr. HATCH. This is not some itty- that side. weren’t many Senators here. Again, to- bitty bill. This involves as much as $860 I, again, assure the Senator from night, depending on the time that Sen- billion, according to some. New Hampshire that the only reason I ator KENNEDY is engaged in debate, Is the Senator aware of that? cannot assure him right now is the ma- there will be time, I am confident, for Mr. NICKLES. Yes, I am. jority leader is making these decisions, people to be able to speak on the bill. Mr. HATCH. Is the Senator aware but I can assure him that the amend- So I hope that Senators who have that that there are all kinds of viewpoints ment will be considered. I will work on desire will take advantage of that. about this bill? having it done sometime in the next 48 Secondly, I think there has been no Mr. NICKLES. Absolutely. hours, with a reasonable time agree- effort whatever to try to limit the de- Mr. HATCH. On both sides of the ment, if that is reasonable to the Sen- bate at this point. It is rather an effort floor. ator from New Hampshire. to try to gather all the amendments, Is the Senator aware that, frankly, Mr. GREGG. I think that is probably find out what the second-degree there is no way of getting voluntary a reasonable statement from the Sen- amendments are, share them with ev- protocols under this bill that would re- ator from Arizona, who has a fine rep- erybody on both sides, and have a sense solve the constitutional issues involved utation in this institution, and I will of how we can proceed in an orderly in this bill, especially with regard to yield the floor. fashion. the look-back provisions, the ban on Mr. MCCAIN. Mr. President, we need But as colleagues know, the manager advertising, and other issues? to move forward. I would like to move of the bill could have come to the floor, Mr. NICKLES. I appreciate my col- forward with an amendment, and I filled a tree, held the floor, gone league’s remarks, the chairman of the hope my colleagues would show that through an alternative process. We are Judiciary Committee. I know he has comity. It is the other side’s turn. trying to avoid that, trying to do this had hearings on at least tobacco legis- I ask that after my friend from Texas in a cooperative, bipartisan way, mov- lation. I don’t know that anybody has makes any comment, if we could move ing from side to side, recognizing the had hearings on this bill. forward. I yield for a question. needs of a lot of Senators to be heard. Right now we are being asked to vote Mr. GRAMM. Mr. President, first of So we hope Senators will take advan- on some of the most significant amend- all, going back from one side to the tage of that. ments of this bill and we really have

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5116 CONGRESSIONAL RECORD — SENATE May 19, 1998 had very little time to even debate the The PRESIDING OFFICER. The Sen- year, along with the first deposit for that general provisions of the bill, to maybe ator from Arizona. succeeding year. If the deposits during a cal- ask the sponsor of the bill and the pro- Mr. MCCAIN. Just a brief comment: I endar year exceed the liability for the cal- ponents of the bill to explain some sec- thank the Senator from Oklahoma for endar year under subsection (d)(2), the manu- facturer shall subtract the amount of the ex- tions. his concerns, and the Senator from cess deposits from its deposit on March 1st of Just to give you an example, there is Texas, the Senator from Utah as well. the succeeding calendar year. a look-back provision. The Senator We would like to get amendments to- (d) APPORTIONMENT OF ANNUAL PAYMENT.— from Utah said maybe it is unconstitu- gether so we can move forward. I un- (1) IN GENERAL.—Each tobacco product tional. There was a look-back provision derstand the concerns. They have been manufacturer is liable for its share of the ap- that was added that wasn’t passed out made to me, and on this floor. We look plicable base amount payment due each year of the Commerce Committee and that under subsection (b). The annual payment is forward to a vigorous debate. the obligation and responsibility of only wasn’t passed out of the Finance Com- I thank the Senator for his willing- mittee. It was just added. It was intro- those tobacco product manufacturers and ness to work, all of us together. I their affiliates that directly sell tobacco duced last night. The look-back provi- thank the Senator from Massachusetts products in the domestic market to whole- sion says we are going to do sampling for his indulgence. salers, retailers, or consumers, their succes- and find out. If we don’t meet the tar- I yield the floor. sors and assigns, and any subsequent fraudu- get for teenage consumption, as speci- The PRESIDING OFFICER. The Sen- lent transferee (but only to the extent of the fied, there will be a penalty of $1,000 ator from Massachusetts is recognized. interest or obligation fraudulently trans- per teenager who smokes specific ferred). AMENDMENT NO. 2422 TO MODIFIED COMMITTEE (2) DETERMINATION OF AMOUNT OF PAYMENT brands. SUBSTITUTE It looks very bureaucratic and, DUE.—Each tobacco product manufacturer is (Purpose: To modify provisions relating to liable for its share of each installment in frankly, unworkable to this Senator. industry payments) Mr. HATCH. Will the Senator yield? proportion to its share of tobacco products Mr. NICKLES. Yes. Mr. KENNEDY. Mr. President, I send sold in the domestic market for the calendar Mr. HATCH. I have to tell the distin- an amendment to the desk. year. One month after the end of the cal- The PRESIDING OFFICER. The endar year, the Secretary shall make a final guished Senator from Oklahoma that determination of each tobacco product man- we had constitutional experts come in clerk will report. ufacturer’s applicable base amount payment and say there is no way that look-back The assistant legislative clerk read obligation. provision is constitutional. They are as follows: (3) CALCULATION OF TOBACCO PRODUCT MAN- also saying that, of course, they tried The Senator from Massachusetts (Mr. KEN- UFACTURER’S SHARE OF ANNUAL PAYMENT.— to cure the advertising restrictions by NEDY), for himself, and Mr. LAUTENBERG, Mr. The share of the annual payment appor- adopting the FDA regulation. But we CONRAD, and Mr. GRAHAM proposes an tioned to a tobacco product manufacturer have top-flight, from the left to the amendment numbered 2422 to the modified shall be equal to that manufacturer’s share right, constitutional experts saying committee substitute. of adjusted units, taking into account the that is unconstitutional. The text of the amendment reads as manufacturer’s total production of such follows: units sold in the domestic market. A tobacco Then, last but not least, we have a product manufacturer’s share of adjusted section 14 on here that basically talks Beginning in section 402, strike subsection units shall be determined as follows: about the other advertising restric- (b) and all that follows through section 403(2) (A) UNITS.—A tobacco product manufactur- tions that almost everybody agrees are and insert the following: er’s number of units shall be determined by essential if we want to do something (b) ANNUAL PAYMENTS.—Each calendar counting each— about teen smoking, and, by gosh, year beginning after the required payment (i) pack of 20 cigarettes as 1 adjusted unit; those other advertising provisions have date under subsection (a)(3) the participating (ii) 1.2 ounces of moist snuff as 0.75 ad- tobacco product manufacturers shall make got to have a voluntary protocol, have justed unit; and total payments into the Fund for each cal- (iii) 3 ounces of other smokeless tobacco to have the tobacco companies on endar year in the following applicable base board in order to be effective, or they product as 0.35 adjusted units. amounts, subject to adjustment as provided (B) DETERMINATION OF ADJUSTED UNITS.— are unconstitutional. What are we in paragraph (4) and section 403: Except as provided in subparagraph (C), a going to do? Vote for an unconstitu- (1) For year 1—$14,400,000,000; smokeless tobacco product manufacturer’s tional bill, or work on it, and work, as (2) For year 2, an amount equal to the number of adjusted units shall be determined the Senate should, on a bill that could product of $1.00 and the total number of under the following table: amount to as much as close to $900 bil- units of tobacco products that were sold in lion? the United States in the previous year. For units: Each unit shall be treated as: Mr. NICKLES. I appreciate the Sen- (3) For year 3, an amount equal to the product of $1.50 and the total number of Not exceeding 150 mil- ator’s comments. I will yield the floor lion 70% of a unit units of tobacco products that were sold in Exceeding 150 million 100% of a unit in just a moment. I just make the com- the United States in the previous year. ment to my good friend and colleague, (4) For year 4, and each subsequent year, (C) ADJUSTED UNITS DETERMINED ON TOTAL I stand willing to work with him. I an amount equal to the amount paid in the DOMESTIC PRODUCTION.—For purposes of de- have no intention of unduly delaying. I prior year, multiplied by a ratio in which the termining a manufacturer’s number of ad- know my colleague from Massachu- numerator is the number of units of tobacco justed units under subparagraph (B), a manu- setts has an amendment to increase—I products sold in the prior year and the de- facturer’s total production of units, whether don’t know if it is taxes or fees of $1.50. nominator is the number of units of tobacco intended for domestic consumption or ex- I know there are other amendments products sold in the year before the prior port, shall be taken into account. dealing with the taxes, or the fees, and year, adjusted in accordance with section (D) SPECIAL RULE FOR LARGE MANUFACTUR- 403. we need to address those. We can do so. ERS.—If a tobacco product manufacturer has (c) PAYMENT SCHEDULE; RECONCILIATION.— more than 200 million units under subpara- I just do not think we can do it in that (1) ESTIMATED PAYMENTS.—Deposits toward graph (A), then that manufacturer’s number short of a timeframe that was pro- the annual payment liability for each cal- of adjusted units shall be equal to the total posed. endar year under subsection (d)(2) shall be number of units, and not determined under Several Senators addressed the made in 3 equal installments due on March subparagraph (B). Chair. 1st, on June 1st, and on August 1st of each (E) SMOKELESS EQUIVALENCY STUDY.—Not The PRESIDING OFFICER. The Sen- year. Each installment shall be equal to one- later than January 1, 2003, the Secretary ator from Massachusetts. third of the estimated annual payment li- shall submit to the Congress a report detail- Mr. MCCAIN. Mr. President, I believe ability for that calendar year. Deposits of in- ing the extent to which youths are substitut- I have the right of first recognition. stallments paid after the due date shall ac- ing smokeless tobacco products for ciga- The PRESIDING OFFICER. The Sen- crue interest at the prime rate plus 10 per- rettes. If the Secretary determines that sig- ator from Massachusetts has been rec- cent per annum, as published in the Wall nificant substitution is occurring, the Sec- Street Journal on the latest publication date retary shall include in the report rec- ognized. on or before the payment date. Mr. KENNEDY. The Senator from Ar- ommendations to address substitution, in- (2) RECONCILIATION.—If the liability for a cluding consideration of modification of the izona, as I remember, had the floor. calendar year under subsection (d)(2) exceeds provisions of subparagraph (A). Mr. MCCAIN. Mr. President, I seek the deposits made during that calendar year, (e) COMPUTATIONS.—The determinations re- recognition. I thank the Senator from the manufacturer shall pay the unpaid liabil- quired by subsection (d) shall be made and Massachusetts. ity on March 1st of the succeeding calendar certified by the Secretary of Treasury. The

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00086 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5117 parties shall promptly provide the Treasury of raising this issue with my friend and because their children would not be ad- Department with information sufficient for colleague from New Jersey, Senator dicted. I thanked him, for all Ameri- it to make such determinations. LAUTENBERG, who has been one of the cans, for his willingness to take a (f) NONAPPLICATION TO CERTAIN MANUFAC- TURERS.— really important leaders here in the stand on this issue. (1) EXEMPTION .—A manufacturer described Senate on the tobacco issues; also, our Mr. President, the amendment we are in paragraph (3) is exempt from the pay- friend and colleague, Senator CONRAD, bringing here this evening is not an ments required by subsection (b). who has been the chair of a task force issue which is strange to the Members (2) LIMITATION.—Paragraph (1) applies only on the tobacco-related issues, and has of this body over the period of these to assessments on cigarettes to the extent been really tireless in terms of develop- past weeks and months. I think all that those cigarettes constitute less than 3 ing a command of this issue, and has Americans have probably had the op- percent of all cigarettes manufactured and also been tireless in trying to work out portunity to listen to the public health distributed to consumers in any calendar year. bipartisan support, not just on this community, represented, as I said, by (3) TOBACCO PRODUCT MANUFACTURERS TO issue but on other issues as well; our Dr. Koop, and Dr. Kessler, and the rep- WHICH SUBSECTION APPLIES.—A tobacco prod- friend, Senator DURBIN, who has been resentatives of many of those that uct manufacturer is described in this para- so involved in this issue, in particular have been afflicted with the kinds of graph if it— on the price, as well as a number of my illnesses and diseases that have been (A) resolved tobacco-related civil actions other colleagues; my colleague from caused by addiction. with more than 25 States before January 1, Massachusetts; Senator REED; and so We have heard the uniform appeal— 1998, through written settlement agreements many others. I am grateful to all of the uniform appeal of all of those who signed by the attorneys general (or the have really studied this issue in any equivalent chief legal officer if there is no of- them. fice of attorney general) of those States; and We look forward over the period of detail—that if we are going to have a (B) provides to all other States, not later these next several hours and hopefully significant impact on reducing the ad- than December 31, 1998, the opportunity to at a time during tomorrow morning to diction of children in our country, the enter into written settlement agreements be able to present this issue to the U.S. best way to do this is by having an in- that— Senate. crease in the cost per pack of ciga- (i) are substantially similar to the agree- We are very mindful that only a few rettes, and to do it in a timely way. ments entered into with those 25 States; and hours ago, just a few yards from where By ‘‘in a timely way,’’ we mean doing (ii) provide the other States with annual we gathered this evening, we had the it rapidly. We have devised this amend- payment terms that are equivalent to the ment to be a stepped-up process over a most favorable annual payment terms of its good opportunity to be with Dr. Koop, written settlement agreements with those 25 who is really the foremost public period of 3 years. There are others who States. health official in this country and who have favored a $1.50 increase a pack in SEC. 403. ADJUSTMENTS. has been such a leader in protecting a 2-year period. We have accepted that The applicable base amount under section the children in this Nation on this particular challenge and followed their 402(b) for a given calendar year shall be ad- issue, as well as many others. I think guidance. This amendment, more than justed as follows in determining the annual that all of us who were gathered there any other proposal or amendment that payment for that year: were impressed that Dr. Koop was is going to come in this Chamber, is (1) IN GENERAL.—Beginning with the fourth motivated by protecting the children of calendar year after the date of enactment of speaking on behalf of all of the public this Act, the adjusted applicable base health community. It was really a sin- this country. That is the reason behind amount under section 402(b)(4) is the amount gular voice in which he spoke for all of this amendment, clear and simple. If of the annual payment made for the preced- the public health communities. We can you are interested in public health, you ing year increased by the greater of 3 percent spell out the reasons why as we get support this amendment. If you are in- or the annual increase in the CPI. into the debate and discussion on this terested in protecting children, you (2) CPI.—For purposes of subparagraph (A), issue. He was speaking not as a par- support this amendment. If you are in- the CPI for any calendar year is the average tisan, not as a Republican, not as a terested in doing something about the of the Consumer Price Index for all-urban problems of addiction and children, you consumers published by the Department of Democrat, but for all Americans, be- Labor. cause that is what his service has been support this amendment. If you are in- (3) ROUNDING.—If any increase determined to this country as our Surgeon Gen- terested in trying to provide some lim- under subparagraph (A) is not a multiple of eral. He has been the defender of the itation on children being involved in $1,000, the increase shall be rounded to the public health, and also as one who is a gateway drugs, you support this nearest multiple of $1,000. keen analyst as to what has been the amendment. Mr. KENNEDY. Mr. President, I want real strategy of the tobacco industry For all of these reasons and many to express my appreciation to the Sen- over the period of these past years, who more, this is a compelling amendment, ator from Arizona, who, as I under- recognized what their strategy was in and it is supported overwhelmingly by stand, was trying to work out a decent order to meet their financial require- the American people, by families all process so that we might debate this ments, that it was going to have to over this Nation, Republican and Dem- during the course of the evening, and make a particular appeal to the chil- ocrat, North and South alike. We will then at least work out some process dren in this country. have the charts available that will in- where we could have a fair allocation He spelled that strategy out long be- dicate what the various data reflect. of balance in terms of time as we de- fore it became evident as a result of That is important and useful perhaps bated it tomorrow. I hope those who the various publications of various doc- for some. support that position would, if we don’t uments that have been made available But what we are motivated by and get a formal agreement, at least follow to the American people during the why we are offering this amendment is that process tonight and also in the process of the various State suits. He is because of public health. Those who morning. Then the leaders and those really one of the great giants. have studied this issue in terms of chil- who are interested in either extending I took the opportunity at that time dren believe that this is the first and debate, or amendment, or whatever to thank him for his strong support of most important step we can take to re- they want to, will proceed and will ob- an amendment that was going to raise duce the smoking addiction of chil- viously have the right to do it. the price of a package of cigarettes to dren. I want to thank the Senator from Ar- $1.50, because this would mean any- This chart, Mr. President, points out izona, who was trying in his conversa- where from 750,000 to 900,000 young peo- very quickly and easily for the benefit tions with us to work out a process so ple who would not be engaged in smok- of the Members the number of children there could be an adequate time for de- ing and anywhere from 250,000 to about who will be deterred from smoking by bate and discussion, and also balance 300,000 young people children who an increase of $1.10, 3 million; $1.50, in terms of time between those who would not die a premature death. 3,750,000. The difference of the proposal favor this position and those who are I thanked Dr. Koop on that occasion that is in this Chamber will be 750,000. opposed to it. for the families. I thanked him for the That is what we are talking about by I want to express our appreciation to children who would not have the addic- accepting this particular amendment. all of our Members for the opportunity tion. I thanked him for their parents We will come back to elaborate on that

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00087 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5118 CONGRESSIONAL RECORD — SENATE May 19, 1998 in a while. We are talking about the amendment is the amendment that tobacco and move on through. By the number of children whose lives will be deals with addiction. If you are inter- age of 16, 62 percent of those who even- saved by the cigarette price increase. ested in trying to do something in the tually are going to become addicted We are talking about 125,000 who will interest of public health, this is the have already started down that path, have an early death. amendment, with all due respect to the and they are the ones who have been I think one of the questions we are other amendments. We understand the targeted by the tobacco industry for going to be asked sometime during this relationship that they have to each marketing—for addiction. It is for debate is, well, this is fine and well other, and I am a strong supporter of these children that the studies dem- that you talk about increasing the cost the other provisions of the legislation. onstrate that the increase in the costs per pack to $1.50, but how do we know With the dramatic proposals that we of tobacco, because of the limitations this is really going to have the impact are making here on the increase in the in their purchasing power, will be a that you are stating here this evening? cost, when you have the other pro- very, very powerful and important dis- We will have a chance again either grams that are built in to deter indi- incentive to these young people. Added later tonight or tomorrow to go viduals from beginning smoking and to the other features of the program, it through a number of the public health the other reductions in advertising, all will be a serious disincentive for them reviews and the studies and the testi- of it has a symbiotic effect that will to get started smoking. mony that has been taken by a number have an important impact on children. Mr. President, I will wind up now to of the committees over the period of We are doing everything we can. let my colleagues speak. I hear often: these past weeks. We have had a num- The basic support for the proposal we Isn’t this really a disservice to those ber of committee hearings on this very are advocating today is a culmination families who may be involved in smok- issue. But perhaps one of the most im- of everything that has been rec- ing, that they will have to pay, really, pressive factors has been what hap- ommended to us by the public health a disproportionate share because we pened with the significant price in- community. We have taken their rec- will have an increase in the costs of crease in our neighboring country of ommendations and now are bringing these cigarettes? I must say, that is an Canada that moved up to a $5 per pack them to the Senate. We know the argument that you hear out here occa- price increase in 1991 and what hap- American people are for it. The ques- sionally on the floor of the U.S. Sen- pened to youth smoking over that pe- tion is going to be, are we going to ate, but the fact is I don’t hear that riod of time. You see the dramatic re- have the support of the Members or is back home in my State of Massachu- duction of youth smoking as a result of the power of the cigarette and tobacco setts. People, even in blue-collar areas, the significant increase in the price of industry, which has been reflected in so who perhaps smoke more than others cigarettes. many ways over the period of recent in a community, are saying we are not I hope we will not have to take a months and in recent years, going to be less concerned about our children than great deal of time to review that par- again demonstrated in this Chamber in those who may come from a different ticular phenomenon. It is irrefutable. terms of resisting these issues. socioeconomic background. Those It is absolutely irrefutable. The public Senator CONRAD, who has held hear- working families are concerned about health information is irrefutable; that ings with regard to the issues of smug- their children. Time in and time out, with a dramatic and significant in- gling and what will the impact of this when you ask working families, ‘‘Do be on the tobacco industry. All of these crease in the price we see a significant you want to do something about reduc- issues are important, but make no mis- reduction in youth smoking. This is ing the opportunity for your children take about it, Mr. President, those of one of the clearest examples to dem- to start smoking,’’ their answer is yes, us who are advocating this amendment onstrate what we hope will be and overwhelmingly yes. Because they are advocating it for a very fundamen- achieved. understand, as all of us understand, We have set a goal of a 60-percent re- tal reason, and that is to protect chil- that these children, once they get duction in youth smoking over 5 years dren in our country and in our society, started down the path towards addic- and we believe that the kinds of protec- by increasing the price per pack of tion, find it extremely difficult if not tions we are offering here are the kinds cigarettes. That is a national goal, and impossible, to begin to get control. of protections that are going to have Mr. President, I will yield the floor that has been one that has been stated the most important impact for our now. I look forward to our continued and reaffirmed by many, even those country. discussion of this. who do not support this particular pro- We offer this amendment which is I ask unanimous consent to add the posal. The only way we will get the 60- really one we believe the Senate should names of Senators HARKIN and percent reduction over the 5-year pe- move towards and be willing to accept. WELLSTONE as cosponsors of the riod is by going to $1.50 per pack. That We can go back in terms of the time amendment. is basic and that is fundamental. But I and understand what is really happen- The PRESIDING OFFICER. Without just mention here that after a period of ing out there in America, the impact objection, it is so ordered. time we saw there was a growth in that tobacco has on the young people The Senator from Arizona. terms of the black market in Canada. of this country. Mr. McCAIN. Mr. President, I do not Mr. President, 85 percent of the Cana- I see my colleagues from New Jersey support this amendment. I don’t doubt dian people live proximate to the and North Dakota are here and ready that the goals of the Senator from United States. There was an increase to address this issue, but let me just Massachusetts and those who support in smuggling, and there was a decision take a few moments to go through the this amendment are the same as those that was made by the Government of way children become involved in the who support the underlying bill, which Canada to basically leave it up to the addiction of tobacco. is $1.10. I reject the notion that more is Provinces as to whether they were Smoking begins early, Mr. President. automatically better. There is a point going to maintain their increase in the 16 percent of adults who are daily at which we have gone too far. Some higher cost per pack. So they left it up smokers began smoking—and these are believe strongly we have already to the particular Provinces, and the re- the cumulative figures—by age 12. Just passed that threshold. We just had a sult from leaving it up to the Provinces think about it. By the age of 12, 16 per- little discussion while we were waiting, is in the Provinces that maintained the cent; by the age of 14, 37 percent. By 16 while the Senator from Massachusetts higher cost, we saw the continuation of or under, we are talking about 62 per- was waiting to propose his amendment, a significant reduction in youth smok- cent. These are the children who be- that amplified the concerns of many ing—a significant reduction. come addicted. These are the children who believe this legislation has gone We will have a chance perhaps, if nec- who do not have the benefit of being too far. On the other side, there are essary, to go Province by Province, able to make a balanced and informed some, including the sponsor of this but, nonetheless, that was the result. judgment about going ahead and in- amendment, who believe we have not We cannot make the case any clearer volving themselves in the use of to- gone far enough. I don’t want us to en- than has been made, that this particu- bacco. gage in a bidding war. If $1.50 is accept- lar amendment is the amendment that We are talking about very young able, then why not $2 or $3 or $5, et deals with children; this particular children who begin the utilization of cetera?

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5119 I point out to my colleagues a very have no protections of any kind nor that consumers bear this cost. They important point here. The bill already anything for the tobacco industry. will bear the cost in the form of higher has a mechanism for increasing the Frankly, I believe that would just kill prices, and there are actually penalties price of tobacco if other methods fail. the tobacco industry. in this proposed law for the companies That is what we call the look-back pro- We are not in the business of trying if they do not transfer to the consum- visions. The look-back provisions are to kill the tobacco industry. Let’s keep ers any of these costs. penalties that are both company spe- that in mind. Because, if 40 million ‘‘Section 405. Payments to be passed cific and industry wide, if there is not Americans are going to smoke, they through to consumers.’’ Here is the a decrease in teenage smoking. are going to continue to smoke, and we text of the law itself: If our goal is to reduce teenage smok- are not going to be able to prohibit Target price. Each participating tobacco ing, which it is, then these look-back that. We tried that with alcohol many product manufacturer shall use its best ef- provisions achieve what the amend- years ago. But if we are trying to at- forts to adjust the price at which it sells ment of the Senator from Massachu- tack the issue of kids smoking, we do each unit of tobacco products in the domes- setts seeks. I have not been around as have a problem with too high a cost for tic market or to an importer for resale in the domestic market by an amount sufficient to long as some, but too often our fidelity a pack of cigarettes. That has been pass through to each purchaser on a per-unit to a cause is measured only by how highlighted by the Senator from Utah basis an equal share of the annual payments high a price we can extract and how concerning the possibility of contra- to be made by such participating tobacco much we are willing to bid up. band. There is a problem, obviously, product manufacturer under this Act and the It was back in March when the Com- with too high a cost for a pack of ciga- Master Settlement agreement for the year in merce Committee began work on this rettes, that there would be a black which the sale occurs. issue. We worked for a long time and market that would spring up in Amer- The specific law of the statute re- we came out with a package by a 19 to ica. We used the best advice that we quires that these so-called penalties 1 vote. As part of that package, it was could get from throughout the admin- are really not penalties on the tobacco determined that $1.10 was the appro- istration, from the public health com- companies at all—that these so-called priate cost—the price of a pack of ciga- munity, and from many others, which penalties penalize the consumers. It is rettes. I might add that was also the allowed us to come up with $1.10 as the strange, indeed, to say to individuals, position of the White House, the ad- cost of a pack of cigarettes to achieve ‘‘The tobacco companies have been ministration, that $1.10 was the appro- the goal of reducing teenage smoking, misbehaving. For years, they have been priate number. along with the other aspects of this targeting you unduly, they have been Since then, we have toughened the comprehensive settlement. providing you with a product which is look-back provisions. We have raised I point out again to my colleague deleterious to your health, and what the cap on how much liability the to- from Massachusetts, we have a look- we are going to do to them is nothing, bacco companies would have on an an- back provision in the bill. For every basically, except to protect their mar- nual basis. We have toughened up this child over the quota in the percentage kets, make sure their market shares bill to the point where it has been of that is not reduced by the tobacco are locked in, and give them protection great concern on the other side of the companies, there is a $1,000-per-child from civil prosecution. But because aisle. The $1.10 was part of a carefully penalty provision in this bill. That ef- you have been the recipient of the dis- negotiated package. In and of itself it fectively achieves the goal which I be- ease and the difficulty you have from was not a magic number. The $1.10 was lieve this amendment seeks. smoking, we are going to pass through a tradeoff in return for a cap on liabil- Mr. President, I know there are many the payments to you.’’ ity, in return for the look-back provi- other speakers. We will probably dis- This is adding insult to injury in the sions, in return for a number of other cuss this some more between now and most classic of all ways. Remember, things—the language concerning the final passage. these are not penalties on tobacco com- authority of the FDA. So, this was all Several Senators addressed the panies, they are taxes levied on the put together in a package. Chair. users of tobacco products. I say to the Senator from Massachu- The PRESIDING OFFICER (Mr. Tobacco companies will still pay setts that he was not part of those ne- BROWNBACK). The Senator from Mis- hefty penalties if teenage smoking tar- gotiations because he is not part of the souri. gets are not met, but consumers will be committee. That is very understand- AMENDMENT NO. 2427 TO AMENDMENT NO. 2422 safe from hundreds of billions of dollars able, although I noted during the time (Purpose: To strike provisions relating to in new taxes if my amendment is we were doing those negotiations the consumer taxes) adopted. Senator from Massachusetts was very Mr. ASHCROFT. Mr. President, I rise The so-called look-back provisions of vociferous in his opposition to almost today to offer an amendment. My this proposed law say that tobacco anything that we did. In fact, he was amendment addresses this massive tax companies are going to have stiff pen- quoted in the newspaper, much to my that is to be imposed on the people of alties to pay if teenage smoking surprise, as criticizing the committee, this country, particularly on hard- doesn’t decline, and those stiff pen- which I chair. I was somewhat in- working, poor people in America. My alties are left in place by the amend- trigued by that, but that certainly is amendment strips this legislation of ment which I am offering. the right of the Senator from Massa- the provisions which will impose $755 It is only the consumer, who is being chusetts to question the credibility of billion in new taxes on the American asked to pay substantially higher the Commerce, Science, and Transpor- people. prices by way of what really amounts tation Committee. More precisely, my amendment to a tax, who will be saved the $755 bil- I respect the commitment of the Sen- strikes the upfront payment of $10 bil- lion which will otherwise be occasioned ator from Massachusetts to the chil- lion. Tobacco companies won’t bear the on those consumers in the event my dren of America. I respect his belief cost of this payment; consumers will. amendment is not adopted. that $1.50 will do more than will $1.10. This bill, which purports to vilify the Americans today are working longer But I urge my colleagues to understand tobacco companies—and I am certainly and harder than ever to pay their that the $1.10 was not plucked out of not here to defend them. As a non- taxes. The Federal budget is in surplus. the air. The $1.10 was the best expert smoker, and having watched a number Congress should be debating how to re- advice we could get and with the con- of my friends die as a result of smok- turn money to the taxpayer, not how currence of the administration. There ing, I am not here to defend the to- to siphon more out of the pockets of are those in the public health commu- bacco companies. But the bill specifi- working Americans. nity who agree with the Senator from cally provides that tobacco companies This is nothing more, nor less, than a Massachusetts that it is not high will not bear the cost of these pay- massive tax increase on the American enough. There are others in the public ments, consumers will. This bill re- people—$755 billion, which the law re- health community who say that $1.50 is quires and would make law the fact quires to be passed through to consum- not enough. There are those on both that tobacco companies can’t bear this ers. Not that they receive $755 billion; sides of the aisle who think we should cost of $755 billion. This bill requires the law requires that consumers end up

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5120 CONGRESSIONAL RECORD — SENATE May 19, 1998 paying $755 billion more as a means of this because they choose to continue to refer to the chart which has just been punishing the tobacco companies— smoke. Whether they choose to or not, set up here. The Crude Oil Windfall three-quarters of a trillion dollars in someone who earns $10,000 a year, al- Profit Act of 1980; the Omnibus Rec- penalties to consumers whom we are ready spending a couple hundred, onciliation Act of 1980; the Tax Equity trying to protect. maybe $1,000 of that $10,000 on ciga- and Fiscal Responsibility Act of 1982; As currently drafted, the proposed rettes, now has to pay the Government the Social Security Amendments of tobacco bill is nothing more than an of the United States an additional $803 1983; the Deficit Reduction Act of 1984; excuse for Washington to raise taxes annually. Frankly, my amendment the Consolidated Omnibus Budget Rec- and spend money. It seems strange would prevent that from happening. onciliation Act of 1985; the Omnibus that, in this town, virtually anything As currently drafted, this legislation Reconciliation Act of 1986; the Omni- will be an adequate excuse for raising allows tobacco companies to deduct the bus Budget Reconciliation Act of 1987; taxes. Bad decisions by free people be- mandatory payments ultimately paid the Technical and Miscellaneous Reve- come excuses for massive tax increases by consumers as a regular business ex- nue Act of 1988; the Omnibus Budget in this country. pense. So what we have here is really Reconciliation Act of 1989; the Omni- This is the largest proposed increase an implied subsidy of the tobacco in- bus Reconciliation Act of 1990; the En- in Government since President Clinton dustry, tobacco companies being able ergy Policy Act of 1992; the Omnibus proposed his health care scheme. Oddly to pass through costs to the consumer Budget Reconciliation Act of 1993—15 enough, his health care scheme was which the tobacco company then gets years, 13 major tax increases. greeted initially with a relatively high to deduct. Mr. KERRY. Mr. President, will the level of support. But as the public Again, we find ourselves, here in this Senator yield for a question? learned more about the health care setting, subsidizing tobacco companies, Mr. ASHCROFT. I will yield for a scheme, they understood that it was megatobacco companies, the cash cows question. more scheme than health care, and, of American industry, we are subsidiz- Mr. KERRY. Didn’t most of those frankly, as the public learns more ing these companies by placing on ordi- also have tax cuts in them? about this so-called tobacco settle- nary human beings, working families— Mr. ASHCROFT. I think it is pretty ment, they will realize that it is far we are subsidizing them by placing this clear that the amount of money being more tax and Government than it is $755 billion tax on working families. taken from the American family is anything else—17 boards, commissions, Over 5 years, that write-off would be going up and up. This year, for exam- and agencies. worth about $36 billion to the tobacco ple, the average American family had This huge tax increase will be levied industry. I cannot imagine anything to work until the 10th day of May—we against those who will be least capable more inappropriate than to take just passed it—for Government. That of paying. According to the Congres- money from the hard-working families was the time it took for people to sat- sional Research Service, right now we of America and then to use that money isfy the obligation to Government. know that tobacco taxes are perhaps which we have taken from the hard- That time has been extending into the the most regressive tax levied in Amer- working families of America to provide year very rapidly through this entire ica. Tobacco taxes are perhaps the a $36 billion subsidy through special time period. most regressive taxes levied in Amer- write-off provisions for the tobacco in- It is true that very frequently the ica. About 60 percent—60 percent, 59.4 dustry. Congress gives a little bit here and percent I think is the number; yes—59.4 By eliminating the annual payments, takes a lot here, so that there are in percent of the new $755 billion tax will my amendment would prevent the to- this time setting different changes in land on people who make less than bacco companies from claiming the de- the taxes. But if you want to look over $30,000 a year. duction. I think we should stop the the period of time—and I think it These are young families. They are subsidy for tobacco, in particular for would be a fair thing to do; and I will working families. To take a three- tobacco companies, especially provid- be happy to do that; and I will bring in- pack-a-day figure from those families, ing a subsidy for them by allowing formation about that to the floor—that some $1,600 a year, is to take their ca- them to deduct payments that are not over time—over time—the Congress of pacity to provide for their families and really going to be made by them—pay- the United States has taken a bigger require it to be spent in Government ments that are going to be passed and bigger and bigger bite of the in- on something else, something that the through to consumers, hard-working come of workers in the United States. bureaucrats in Washington will con- families with children to feed and And, as a matter of fact, this would be sume, something that will not go to clothe, families with payments to another huge bite it would take out of benefit their families. make, families of individuals who the workers, especially of low-income Sixty percent of the tax will fall on might want to quit smoking but can- families. families earning $30,000 a year or less. not. This bill is predicated upon the Mr. KERRY. Mr. President, I appre- Households earning $10,000 will feel the fact that these families will continue. ciate the Senator being willing to bite of this tax increase most of all. This massive Government bureauc- yield. And I just wanted to make it Listen to this: The Joint Committee racy that is planned and the massive clear that the record was clear in his on Taxation estimates that these amounts of spending that are projected answer that there were tax cuts of sig- households will see their Federal taxes are all based on this willingness ex- nificance. You can make adjustments rise by 44.6 percent. As currently draft- pressed in this bill to tax ordinary as to who might have benefited and ed, this legislation will cause someone working families—ordinary working who did not, but those were not just who smokes two packs daily to pay the families—massive amounts. And 59.4 tax increases. I think that is an impor- Government an annual additional fee percent of the money will be paid by tant point. of $803—an additional $803. Smoking is families under $30,000; 3.7 percent by I thank the Senator. already an expensive habit, and the families making $115,000 or more. This Mr. ASHCROFT. I thank the Senator collection of this money is predicated is the most regressive graph of tax- from Massachusetts. upon the fact that people will not quit, ation that I have seen since I have had These items, which I have listed here, not that people will quit. You can’t get the opportunity to serve in the U.S. are times when the taxes were raised these kinds of numbers, $755 billion, Senate. on American families and American in- from people who quit. You are going to Before we consider passing a massive dustry. I think over time most of us get this amount of money because you tax increase like this, it would behoove understand that we are paying more in know people won’t quit and can’t quit, us to review the Government’s record taxes now than ever before. As a mat- and the reason by those who come for- thus far with respect to taxes, spend- ter of fact, right now Americans work ward with this tax is, it is necessary, ing, and Government employment. In harder and longer in peace and prosper- they say, because this is addictive. Washington, DC, taxes and spending ity than we have worked at any time in They say people can’t quit. That is are more addictive than nicotine. history to pay our taxes. what is wrong with tobacco. And yet In the 15 years prior to 1995, Congress So whether or not there were a few they say that people will choose to pay passed 13 major tax increases. Let me things in this list where someone was

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00090 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5121 given a tax break while someone else agencies to enforce and oversee the with this bill, in saying that every- had a tax increase, that may have been code; 17,000 is the number of pages of thing has to be passed on to the con- the case, but the truth of the matter is, IRS laws and regulations, 12,000 not in- sumer, that as a way of punishing to- we have been taking two steps back- cluding Tax Court decisions and IRS bacco companies we will take money wards at least for every step forward. letter rulings—12,000. from consumers. We are going to try to Government has been taking a bigger And 5.5 million is the number of make it very difficult. If a guy smokes and bigger and bigger share. And now words in the income tax laws and regu- a couple of packs a day, we are going to Americans work further and further lations; 820, the number of pages added make sure that he spends 800 bucks into the year every year in order just to the Tax Code by the 1997 Budget Act; more a year just for the Government, to satisfy the appetite of Government 250 is the number of pages needed to ex- not to be able to address the needs of rather than to provide for themselves. plain just one paragraph in the Inter- his family, not to provide for his fam- Last year’s Taxpayer Relief Act was nal Revenue Code; 271 is the number of ily, not to provide for himself. But we the first meaningful tax cut since— new regulations issued by the IRS in are going to just say because tobacco well, since about 1981. And the tobacco 1997; 261 is the number of pages of regu- companies have done things that are tax increase would more than erase lations needed to clarify the Tax Code’s improper, we are going to punish hard- every bit of what we did last year in ‘‘arms-length standard’’ for inter- working American citizens. terms of taking more from the Amer- national intercompany transactions, My own view is that is a misplaced ican people. It seems to me that what and on and on and on. effort. If we really want to try to make we need to do is not go back on what Incidentally, 293,760 is the number of sure that we curtail teen smoking, we did last year; we need to extend trees it takes each year to supply the 8 there are a lot of things we could do. I what we did last year. We do not need billion pages of paper used to file in- don’t even think this bill makes it ille- to increase taxes. Taxes are at an all- come taxes in the United States. gal for teens to possess tobacco. I don’t time high. Many years ago, Senator Everett think it even makes it illegal to pos- Tax freedom day, as I mentioned, was Dirksen quipped, ‘‘a billion dollars sess tobacco in the District of Colum- May 10 this year. Federal, State, and here, a billion dollars there, and pretty bia. This bill doesn’t even curtail, in local taxes claimed 37.6 percent of the soon you’re talking about real money.’’ my understanding, doesn’t curtail income of a median two-income family Unfortunately, because of Washing- smoking in the Capitol. We criticize in 1997. Now, these taxes were more ton’s profligate ways, what was once Joe Camel, a cartoon character. We than the couple spent on food, shelter, real money has become little more criticize a cartoon character for being clothing, and transportation—more than a rounding error. The budget reso- a role model for young people who than they spent on their cars, their lution passed by the Senate last month want to emulate and smoke. But we houses, their food, and their clothing. recommended the Federal Government don’t curtail, I don’t believe—and I It seems to me that we ought to be spend $9.15 trillion over the next 5 would be glad to be corrected—I don’t wondering about how we could reduce years. That is a 17.3-percent increase think we stop smoking in the U.S. Cap- taxes. During Bill Clinton’s first 5 from the previous 5 years. itol. In the District of Columbia, we years in office, the Federal Govern- According to a recent Cato report, don’t make it illegal for teens to pos- ment collected 29 cents in taxes for the Government’s fiscal record is noth- sess tobacco. Now, it is virtually uni- every dollar increase in the gross do- ing to brag about. Over the past 10 form around the country that it is ille- mestic product. According to the Joint years, the Federal domestic expendi- gal to sell tobacco to teens, but there Economic Committee, ‘‘The federal tures have soared by 79 percent. After are things we can and ought to do to government is now taking a higher adjusting for inflation, this is an enor- curtail tobacco use among teens. share of economic growth than under mous 34-percent increase. Over that And I leave with this amendment, I any president in recent history.’’ same period, family income adjusted leave in the bill the penalties on to- The Joint Economic Committee con- for inflation has grown by 9 percent. bacco companies for failure to meet tinues: ‘‘The average rate during the There is the contrast. There is the the targets. I simply, with this amend- entire era before President Clinton— problem: a 34-percent increase in Gov- ment, take the penalties against con- from Presidents Eisenhower to Bush— ernment, Federal domestic expendi- sumers out of the bill. I simply do not was 19%.’’ We are now taking 29 cents tures; a 9-percent increase in the in- provide for the punishment of poor of each dollar increase in domestic come of the average family. American families, working families. I product. So today I provide an opportunity for do not provide for their punishment for Obviously, the Federal Government this body, the Senate of the United what the tobacco companies have done. has yet to reject the sentiment ex- States, I provide an opportunity for the I think it is inappropriate. pressed by King Henry IV nearly 600 Senate to say to the American people, So I send an amendment to the desk years ago. He put it this way: ‘‘You ‘‘Enough is enough.’’ Even if you make and ask for its immediate consider- have gold. I want gold. Where is it?’’ a bad decision as a free person to ation. Well, I think we have a bill here that smoke, we are not going to decide that The PRESIDING OFFICER. The says, ‘‘You have gold. We want gold. we are going to take from you the ca- clerk will report. The legislative clerk read as follows: And we don’t care how poor you are. pacity to spend money and resources We don’t care how you’re struggling to on your own family. We are not going The Senator from Missouri [Mr. ASHCROFT] proposes an amendment numbered 2427 to make ends meet.’’ As a matter of fact, to say that the tobacco companies are amendment numbered 2422. we will make a very repressive tax, but bad operators and bad companies, and Mr. ASHCROFT. I ask unanimous we want to spend. Tax-and-spend as as a result of their problems and their consent reading of the amendment be tax-and-spend—it does not matter poor conduct, we are going to punish dispensed with. which party sponsors it, who does it. you, the individuals who smoke. The PRESIDING OFFICER. Without Tax-and-spend is the invasion of Gov- We are not going to provide that 59.4 objection, it is so ordered. ernment in the province of the lives of percent of all the $755 billion to be col- The amendment is as follows: individuals, and we have every reason lected by individuals trapped in the In lieu of the language proposed to be in- to want to reject it. habit of smoking is to be provided by serted, insert the following: To collect this bounty, the Federal individuals who make less than $30,000. (1) Amounts equivalent to penalties paid Government has developed a complex We are not going to continue to inflict under section 202, including interest thereon. system. A recent report by the Herit- that kind of harm on individuals who (c) REPAYABLE ADVANCES.— age Foundation reveals just how com- are low income and compound the (1) AUTHORIZATION.—There are authorized plex. problem. Now Government will come in to be appropriated to the trust fund, as re- Mr. President, 136,000 employees at payable advances, such sums as may from and sweep from them their capacity to time to time be necessary to make the ex- IRS and elsewhere in the Government provide for their own families. penditures authorized by this Act. who are responsible for the tax laws; That is not something that we are in- (2) REPAYMENT WITH INTEREST.—Repayable $13.7 billion is the amount of tax terested in doing. We are interested in- advances made to the trust fund shall be re- money spent by the IRS and other stead of saying we don’t really agree paid, and interest on such advances shall be

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00091 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5122 CONGRESSIONAL RECORD — SENATE May 19, 1998 paid, to the general fund of the Treasury as Medicaid overpayments for purposes of one of the most important health when the Secretary of the Treasury deter- recoupment. issues of our time, because today we mines that moneys are available in the trust (d) PAYMENTS TO BE TRANSFERRED begin the questions to finally reform PROMPTLY TO STATES.—The Secretary of the fund for such purposes. the way tobacco products are sold in (3) RATE OF INTEREST.—Interest on ad- Treasury shall transfer amounts available vances made under this subsection shall be under subsection (c) to each State as this country and the way the tobacco at a rate determined by the Secretary of the amounts are credited to the State Litigation industry operates. Treasury (as of the close of the calendar Settlement Account without undue delay. Getting to this point has not been an month preceding the month in which the ad- ( ) PROVISIONS RELATING TO AMOUNTS IN easy journey. Despite the fact that the vance is made) to be equal to the current av- TRUST FUND.— tobacco industry has for decades en- erage market yield on outstanding market- (1) CERTAIN PROVISIONS NULL AND VOID.— gaged in shameless corporate conduct, able obligations of the United States with re- Notwithstanding any other provision of law, the following provisions of this Act shall be the Congress has never acted in a com- maining period to maturity comparable to prehensive way to get this industry the anticipated period during which the ad- null and void and not given effect: vance will be outstanding. (B) Sections 402 through 406. under control. However, we have now (d) EXPENDITURES FROM TRUST FUND.— Mr. MCCAIN. Mr. President, for the reached a point where the American Amounts in the trust fund shall be available information of all Senators, I have people no longer tolerate inaction on in each calendar year, as provided by appro- been authorized by the majority leader this issue. priations Acts, except that distributions to to announce there will be no further I have been fighting to protect Amer- the States from amounts credited to the votes this evening. The Senate will re- icans from the dangers of smoking for State Litigation Settlement Account shall main in session for those Members in- over a decade in the U.S. Senate, along not require further authorization or appro- with the distinguished Senator from Il- priation and shall be as provided in the Mas- terested in debating this important ter Settlement Agreement and this Act, and issue. linois, Senator DURBIN. We authored not less than 15 percent of the amounts shall By mid to late morning tomorrow, I the first ban on smoking in airplanes be expended, without further appropriation, intend to move to table the pending in 1987. Just a few weeks ago, we cele- notwithstanding any other provision of this Ashcroft amendment and the Kennedy brated the tenth anniversary of the im- Act, from the trust fund for each fiscal year, amendment, all in an effort to move plementation of that legislation. in the aggregate, for activities under this this bill along. Again, the next vote Frankly, I believe that ban, that op- Act related to— portunity for people to fly and to trav- (1) the prevention of smoking; should occur around 11 a.m. on Wednes- (2) education; day. el in that close space free of tobacco (3) State, local, and private control of to- While I have the floor, Mr. President, smoke, was a catalyst for further bacco product use; and I make one comment. I am the father antitobacco activity. They saw how (4) smoking cessation. of four children. I come from a high-in- pleasant it was. When people rode on (e) BUDGETARY TREATMENT OF TRUST FUND come bracket. I love my children. I be- airplanes, they saw how nice it was to OPERATIONS.—The receipts and disburse- lieve that low-income Americans love have smoke-free travel, freedom from ments of the National Tobacco Settlement their children, as well. And I have other people’s tobacco smoke. Many Trust Fund shall not be included in the to- who suffered from allergies, or had res- tals of the budget of the United States Gov- talked to many low-income Americans, ernment as submitted by the President or of both in person and by mail and on talk piratory problems, or just couldn’t en- the congressional budget and shall be exempt shows, who have said, ‘‘Senator dure being trapped in a smoking air- from any general budget limitation imposed MCCAIN, I smoke. I wish I didn’t plane cabin finally felt free to travel by statute on expenditures and net lending smoke. My children are beginning to by airplane in what they considered a (budget outlays) of the United States Gov- smoke. Please do everything you can personally safer environment. ernment. to stop it.’’ But, despite the wishes of the Amer- (f) ADMINISTRATIVE PROVISIONS.—Section ican people, we had a tough time get- 9602 of the Internal Revenue Code of 1986 Mr. President, to believe somehow shall apply to the trust fund to the same ex- that low-income families aren’t as con- ting that legislation in place. It was a tent as if it were established by subchapter A cerned about their children and wheth- long, tough battle. We argued. We ne- of chapter 95 of such Code. er they are going to smoke or not, gotiated. We finally settled for a 2-hour SEC. 402. STATE LITIGATION SETTLEMENT AC- frankly, is not something that I agree ban, with the promise that we would COUNT. with, nor I believe is it fair to low-in- wait 18 months for studies to come in. (a) IN GENERAL.—There is established with- come families all over America. Low- But the interest of the public was so in the trust fund a separate account, to be income families in America love their overwhelming that we didn’t have to known as the State Litigation Settlement wait 18 months. It began to become a Account. children as I love my children. (b) TRANSFERS TO ACCOUNT.—From I yield the floor. cry across the country: Please, if you amounts received by the trust fund under The PRESIDING OFFICER. The Sen- are going to ban smoking in airplane section 403, the State Litigation Settlement ator from New Jersey. flights for 2 hours, for goodness sake, if Account shall be credited with all settlement AMENDMENT NO. 2421 it is a 6-hour flight, give us a break. payments designated for allocation, without Mr. LAUTENBERG. Mr. President, And we immediately changed what had further appropriation, among the several this obviously is going to be a fairly been a 2-hour ban to a 6-hour ban and States. now all flights across this country and (c) REIMBURSEMENT FOR STATE EXPENDI- long debate. We are going to hear TURES.— about everything from tax policy to many across the ocean. (1) PAYMENT.—Amounts credited to the ac- love of country to how we deal with But despite the wishes of the Amer- count are available, without further appro- our budgets. We are going to hear all ican people, the tobacco industry has priation, in each fiscal year to provide funds kinds of things. been able to use its power and its influ- to each State to reimburse such State for Mr. President, I join with my distin- ence to stop real reform of tobacco in- amounts expended by the State for the treat- guished friend and colleague from Mas- dustry behavior until this week. ment of individuals with tobacco-related ill- sachusetts in proposing the $1.50 Now, we are poised to finally act in a nesses or conditions. amendment, if I can call it that, that comprehensive way to tackle the major (2) AMOUNT.—The amount for which a State is eligible for under subparagraph (A) both he and I have had a longtime in- problems this industry has caused our for a fiscal year shall be based on the Master terest in. I want to make some com- Nation. First and foremost is the issue Settlement Agreement and its ancillary doc- ments on the entire bill before I go into of teen tobacco use. uments in accordance with such agreements the specifics of the $1.50. Mr. President, newly released indus- thereunder as may be entered into after the Senator KENNEDY has been the leader try documents show how the tobacco date of enactment of this Act by the gov- in all matters of health and concern for industry specifically and deliberately ernors of the several States. young people, always out in the front, targeted our kids for addiction. They (3) USE OF FUNDS.—A State may use helping to defend what is right in our knew what they were doing. They put amounts received under this subsection as up fancy drawings and beautiful pic- the State determines appropriate. country. I have great respect for him (4) FUNDS NOT AVAILABLE AS MEDICAID REIM- and I am pleased to share this particu- tures of healthy people riding horse- BURSEMENT.—Funds in the account shall not lar interest in reducing teen smoking. back and playing sports. They knew be available to the Secretary as reimburse- Today we begin consideration of leg- what was happening. They knew very ment of Medicaid expenditures or considered islation that is long overdue. It tackles well they were creating addiction for

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5123 the children. They were seducing them Additionally, we will likely vote on million people—1.25 million children into picking up the smoking habit. look-back surcharges to see whether or whose lives will be saved by responding In addition, the industry’s very own not the companies will use all of their to that pressure from the price in- documents talk about ways to further skills and knowledge to reduce teen crease. entrap young smokers into a lifetime smoking. And we will likely vote on We have heard everything here today of addiction by manipulating the qual- preemption of local laws and on adver- about tax increases and how we are ity of nicotine in these cigarettes. The tising restrictions. These will all be taxing those unfortunate people of documents recently revealed also con- key votes, and the American people modest income. tain strategies on how to spread fake will be watching. The Senator from Arizona said every- science to confuse their customers I will not make my final decision on body loves their children just as much about the health effects of tobacco this legislation until I see the outcome regardless of their income class. The products. of these votes and see what difference fact is we would like, all of us, to see Mr. President, not only did the indus- the amendments make in the quality the cessation of smoking or the reduc- try commit these acts but it came be- and the extent of this bill. I hope, Mr. tion of smoking among children. fore the Congress and lied about it. President, we can head into the Memo- One of the things that happens as we Now these very same companies have rial Day weekend proud of what we did discuss this $1.50-a-pack possibility is decided that they are going to fight this week. that we would then be extracting from back against the popular will. They are As we remember our brave men and those whose use costs us more because going to fight back against the Con- women who sacrificed their lives fight- of their habit to pay for some of the gress’ final awakening to the evils of ing for our country, I ask my col- costs that they incur. If someone wants smoking and to do something about it. leagues to join the fight to protect our to use their car more often, they buy They have decided that they are going people from premature death and sick- more gasoline. They pay a higher price. to take a chance and spend $50 million ness as we would have if a foreign in- If they want a bigger house, they pay a or more for deceit with a misleading vader was to declare war on us and in higher price. If they want to use more advertising campaign to stop the Sen- 1 year killed more than 400,000 Ameri- fuel to warm or cool their house, they ate action this week. You have seen it cans—400,000 Americans. It is more pay a bigger price. If they use more of the health care system, they should on TV. You hear it on the radio. You deaths in 1 year than all of the combat pay a bigger price. It is an unfortunate see it in print: After all, we were will- deaths in all of the wars fought by reality, but smoking costs this country ing to pay $500 million. After all, we Americans in the 20th century. We are $50 billion a year in increased health want to be proper citizens. But the looking at World War I, World War II, costs—$50 billion a year. And we are Senate and the House want to take Korea, Vietnam, and other wars fought talking about something that is con- away our right. They want to invade in this century. Once again, more siderably less of a tax, less of a cost on people’s lives. Americans die each and every year those companies and the individuals It is for that very reason that we from tobacco-caused disease than died who pick up the smoking habit. have to act now and pass strong com- in combat in all of the wars that I have We want to stop people from smok- prehensive tobacco legislation. The just mentioned. ing. Just think about it. We heard talk So we want to fight back against the Senate must prove to the American about the fact that this is a tax in- attackers, as we should. What if we people this week that we have broken crease on hard-working families. Well, were invaded by a foreign enemy? Now from the past; we will no longer trade hard-working families ought to be in- the future of our children for cold, hard is the time to respond to a call to terested in the money that they save. tobacco industry campaign cash. This arms. Imagine if we stopped people from Mr. President, this $1.50 amendment is effectively our Bastille Day. The smoking. Here we say a million and a will test whether or not we are serious reign of the tobacco industry on Cap- quarter people. It will cost them over about cutting teen smoking or whether itol Hill must end today, now. We have $2,000 a year, or they will save $2,000 a we are going to once again appease the an opportunity to prove to the Amer- year as a result of dropping the smok- industry. If we are serious about cut- ican people that big tobacco’s free ride ing habit. Two packs of cigarettes a is over. ting teen smoking, then we must raise day, estimated at the lowest, perhaps Mr. President, there are going to be the price of cigarettes by at least $1.50 $4 a pack, if the $1.50 increase goes into lots of votes for us this week to prove a pack. We have to get to that level effect. But let’s say it is $3 a pack. our good faith. quickly, within 3 years. Three dollars a pack, twice a day; $6 I want to point out on this chart The chairman of the Commerce Com- times 7, $42 a week, times 52 weeks a what we understand. The source of this mittee, Senator MCCAIN, and the com- year; over $2,000 a year that poor, hard- mittee itself have given us a founda- is the Department of the Treasury. It working families could very well use to tion to build on. I congratulate them says the number of children who will buy other things they need far more and thank them for this and commend be deterred from smoking based on than cigarettes. them for all of their hard work. these prices: A $1.10 increase will stop Smoking among children and teens But we have more heavy lifting to do, 3 million kids from picking up the has reached epidemic proportions. because what we see in front of us has smoking habit; a $1.50 increase will Three thousand children begin smoking to be amended and has to be expanded stop 3.75 million children from picking each and every day, and a third of in order to do the job that we want to up the smoking habit. We know that them, 1,000, will die prematurely as a see done. Our Nation’s leading health once they start—we have seen it on the result of the smoking habit. Every year experts tell us that we have a way to chart displayed by the Senator from we lose over 400,000 Americans to to- go this week before this bill should be Massachusetts about when people start bacco-related illness and over 90 per- approved by the U.S. Senate. Names smoking at a very young age. I know I cent of them started as kids. that Americans trust, like Dr. C. Ever- did. It took me some 25 years to recog- The managers’ amendment claims to ett Koop, Dr. David Kessler, tell us nize what a foolish thing I was doing. I raise the price of a pack of cigarettes that this bill needs improvement. didn’t recognize it until my youngest $1.10 in 5 years, but the public health That is why it is imperative that the daughter said one day, ‘‘Daddy, we community tells us that $1.10 just Senate adopt amendments that will be learned in school today that if you won’t do the job. The goal we have set offered to put some more teeth into smoke, you will get a black box in your in Congress is to cut teen smoking in this bill. We will have votes this week throat, and I love you, and I do not half, and if you examine the $1.10 pro- on the Kennedy-Lautenberg amend- want you to have a black box in your posal, it is clear that it doesn’t cut it. ment that would call for a $1.50 price throat. Daddy, please stop smoking.’’ Independent economists tell us that a increase on a pack of cigarettes to real- Within 3 days I stopped smoking, after $1.10 increase will only result in a 33- ly discourage youth smoking. numerous attempts. percent reduction in teen smoking over We will also vote on whether Con- The number of children whose lives 5 years. gress should provide this industry with will be saved by the cigarette price in- Hallelujah, I would love to see that special protections on legal liability. creases is 1 million at $1.10; $1.50, 1.25 happen—even that. But on the other

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5124 CONGRESSIONAL RECORD — SENATE May 19, 1998 hand, these same economists say a way, for inflation. Otherwise, we will I am going to close in just a couple of $1.50 price increase will result in the 50- fall short of meeting our goals of cut- minutes here. I listened to the debate. percent reduction target in 5 years. ting teen smoking in half. I listened to the cries that this is just What an accomplishment that would A variety of factors contribute to a another scheme, a scheme to tax the be. Imagine that in a few years when teenager’s decision to try that first public so those of us who are respon- those kids who would have started cigarette or chew that first bit of spit sible for legislation and operation of smoking are not smoking. More than tobacco, as we call it. But the price of Government can spend the money. 200,000 Americans who would have oth- tobacco is a critical factor. The higher That is the biggest hoax in the world. erwise died would be alive. Families the price, the less likely the child will Nobody, this Senator or any other would not be grief stricken at the loss be to continue to use tobacco. Senator, on the right, on the left, in of someone they care about because of Again, the U.S. Department of the the Republican Party or the Demo- the smoking habit, or watch someone Treasury says it—the number of chil- crats, enjoys spending the public’s who was a good athlete unable to func- dren who will be deterred from smok- money. That is pure baloney, as we say tion, unable to run, unable to breathe ing if we adjust the prices, according to in polite circles. We don’t like taxing without lots of labor because we were this chart. anybody. But people who smoke cause in this early stage able to stop teen I would also like to ask my col- this society to spend $100 billion a year leagues not to be fooled by the indus- smoking. as a result of their smoking. We have The reason we are not focused on try’s deceptions that this price in- the unfortunate experience of seeing a adults so much in this as teen smoking crease will bankrupt them. I remind loved one die, or with a tracheotomy, is because it doesn’t have the same im- my colleagues that these are the same as we saw last week at a hearing here. pact on adult smokers. We have over 40 folks who testified before Congress We heard a woman who was induced to million people who are addicted to to- under oath that nicotine is not addict- represent a tobacco company as a model when she was 17 years old, and bacco. I never met anybody who is a ive. The tobacco industry made $7.2 bil- she said her employer said unless you smoker who will not tell me about the lion in profit in 1997. And according to an MIT analysis, a $1.50 price increase smoke also, actually smoke, you don’t number of times they stopped and how would not bankrupt the industry by quite have the real action that shows long. They remember those as key mo- any stretch of the truth or imagina- the satisfaction a smoker gets. And ments in their life: I once stopped for 2 tion. In fact, the MIT analysis shows now she smokes through a trache- weeks, for 2 solid weeks I didn’t have a an industry profit of $5.2 billion with a otomy in her throat. She was barely cigarette. What do you think? And $1.50 price increase. able to utter the sounds. It was pa- then I was watching the ball game or And further, the industry claims that thetic, Mr. President, to see that hap- my friend Charlie at the office had a this price increase will create a black pen. problem and got sick and I started market. Well, this black market looks I also had the benefit of a hearing smoking again. And I will be darned; I like a red herring to me, I must tell where we had a famous male model for just haven’t been able to stop. But one you. We can pass tough antismuggling one of the tobacco companies who said of these days I am going to do it, I laws that will prevent a black market. he is dying. He said he was so ashamed promise you that. I wish I could. It doesn’t, unfortunately, hurt the to- of himself, when he went into the doc- Talk to people who stand outside bacco companies if their product is tors office, went in for surgery, and the buildings all over America who are pro- sold in a black market. I want every- doctor said to him, ‘‘For goodness hibited by the rules from smoking in body to keep that in mind. If company sake, don’t smoke for a couple of weeks the building and you see them puffing X sells its products and it gets by with- before you get to the hospital, what- away. I was one. I don’t make fun of out the $1.50 user fee imposed on it, ever you do,’’ and his doctor caught them, I promise you that. See them they still get the same profit back in him smoking in the waiting room, standing out there in the cold weather Winston Salem, NC, or wherever they waiting to be admitted to the hospital freezing to finally get that puff on the are based. So that black market, so to so he could have a lung taken out. cigarette. speak, is not something that, frankly, I That is how addicting tobacco is. The other day I took the train from see making the tobacco companies We ought not feel sorry for the peo- Philadelphia to Newark, and I watched very unhappy. In fact, the managers’ ple who run the tobacco companies. a fellow get off the train, light up amendment includes antismuggling They ought to be ashamed. They ought quickly on the platform, take two or language that I coauthored. This lan- to pay the price. It is time for them to three drags on the cigarette and chuck guage is tough. It will go a long way come clean with the American public it and get back in the train. He is not towards cracking down on smuggling— and say, ‘‘OK, we have done it wrong. happy with his habit. He may have the same way we have cracked down on We have made a mistake. We want to been happy to have a puff on that ciga- alcohol smuggling in recent years. cooperate.’’ Instead, they are mounting rette, but I assure you, when that man This $1.50 proposal has bipartisan all kinds of spurious campaigns to try thinks about what he is doing, he is not support. I offered it as a sense of the to deceive the public that the Senate, happy that he is an addict. No addict, Senate in the Budget Committee, and that the Congress, is trying to hurt whether illegal drugs or tobacco, is it passed overwhelmingly. It passed in them or hurt their families. It is not happy with the condition, but they are the Budget Committee. A similar pro- true. We ought not let them get away committed to it. posal passed with a bipartisan vote last with it. So when I hear the stories, oh, And so our mission is to stop them week in the Finance Committee. There we are going to just tax the American before they start, because it is unreal- is a bipartisan Hansen-Meehan bill in public, and a recitation of when these istic to say stop after they have been the House that also increased the price tax increases go through—I would like doing it for a long time. You can never by $1.50 over 3 years. to recite just a few numbers in re- get to it. So what we will do is make Mr. President, this amendment has sponse. an investment now that will start to bipartisan support because the Amer- There has never been a time in the pay off 5 years from now, 10 years from ican people strongly support it. A re- history of this country when the econ- now, 20 years from now, when we will cent poll by the American Cancer Soci- omy is better than it is these very see our costs for health care and our ety showed that 59 percent of the days, and it is better because we took costs for lost productivity will dimin- American people support a $1.50 price some specific actions. It is better be- ish considerably, and maybe even end, increase—people who are going to be cause we had a balanced budget on our and we will be looking at a Nation that affected by it. agenda, and we approved one last year. is considerably healthier. I think it is time for the full Senate I am a member of the Budget Commit- Why should the Senate stand for half to pass a $1.50 price increase and pro- tee and we saw it happen. We decided measures? Public health organizations tect our children once and for all. We we were going to control our expenses. and Drs. Koop and Kessler agree that are going to see it in the voting. That And the economy is booming. Look at the price of tobacco products must be voting is a public document that every- the stock market. Look at interest increased by at least $1.50 in 3 years, one can see, a public action that every- rates—low; stock market, high. Inter- and be continuously indexed, by the one can see. est rates, low; mortgage rates, low;

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5125 home ownership high—we have not was discussing what he termed the By the way, these are not KENT ever seen that kind of affluence in this very high tax rates we currently face. CONRAD’s figures, these are the figures society. I wanted to bring some historical of the U.S. Treasury Department. That Everybody is not participating. I am perspective to that question. This is for a family of four earning about not saying that at all. But to suggest chart shows the outlays of the Federal $55,000 next year. That is what their that we have done things wrong in this Government in blue, the receipts of the tax burden is going to be. country, in the management of this Federal Government in red, over the For a family of four at half the me- economy, and that what we have done last 20 years. As one can see, the spend- dian income, at $27,450, their tax bur- is just picked people’s pockets and ing of the Federal Government as a den will have been cut in half. These taken the money and thrown it away is percentage of our national income has are facts. In 1984, a family of four earn- nonsense and the public will see been coming down since President ing $27,450 paid 13.2 percent. In 1999, through it. They are not going to be- Clinton came into office. Spending has they are going to pay 6.5 percent. Their lieve that stuff. They have heard it be- been coming down. Yes, revenue has tax burden, income and payroll taxes fore. They have seen it before. They been going up. And the result has been combined, has been cut in half. Now, know their children have a chance at a balanced budgets. That is how you bal- those are facts. good job, they have a chance to get an ance a budget. We had $290 billion defi- Let’s start talking about the issue education, that health care for their cits, and it required cutting spending that is in front of us. The tobacco industry has a history of grandparents is going to be more as- and, yes, revenue coming up to balance making statements that, frankly, are the budget. sured, Social Security has moved up in false. I don’t know how else to say it. We heard a lot of talk about bal- its solvency— 2032 is the prospect. It is I don’t know how to say it diplomati- ancing the budget before the 1993 budg- incredible. People can feel a lot better cally when somebody is saying some- et deal was passed that, in fact, cut about their lives. thing that just ‘‘ain’t’’ so. Let’s look at spending and, yes, raised revenue to And longevity? Mr. President, I hate the record. to admit how old I am, but I can tell balance the budget. But what hap- I talk about these as the top 10 to- you if you want to run or jog or go ski- pened? All we got was rhetoric. Let’s bacco tall tales and the truths. ing or do all the other things, I am just look at the record here. If we want Tall tale No. 1: They came before there, because there is an opportunity to start talking about budgets and defi- Congress and they said tobacco has no in this country to have a full life as cits, if that is what this debate is going ill health effects. one ages. I was a soldier in World War to be about, let’s have the debate. Here The truth: This is from their own II. I served 3 years in the Army. I count is what happened under President documents. This is a 1950s Hill and my blessings every day for the good Reagan. The deficit skyrocketed. We Knowlton memo quoting an unnamed health I have seen and the five—and had a lot of rhetoric about balancing tobacco company research director. sixth grandchild, maybe today or the budget, but what we got were a lot And he said: maybe tomorrow that child will arrive. of deficits, a lot of red ink, tripling the Boy, wouldn’t it be wonderful if our com- I can’t wait for my daughter to say, national debt. What we got under pany was first to produce a cancer-free ciga- ‘‘Hey, Dad, we have a new one in the President Bush was even worse. The rette. What we could do to the competition. family.’’ I can assure you that child deficit nearly doubled from already This is the industry that says their will never smoke if the parents or the high levels. products cause no ill health effects. grandparents have anything to say Now, what happened when President Tall tale No. 2: Tobacco has no ill about it. Clinton and the Democrats passed a health effects. We want our children to be healthy. budget plan to reduce the deficit? Yes, Truth: From a 1978 Brown and That is the purpose of this. It is to we did cut spending. Yes, we did raise Williamson document: bring health to the younger part of our revenue from the wealthiest 1.5 percent Very few customers are aware of the ef- society so that, as they age they, too, of the people in this country to balance fects of nicotine, i.e., its addictive nature and that nicotine is a poison. can enjoy their grandchildren, enjoy the budget. And that is what has trig- their life, be in good health, do what- gered this economic resurgence in this These are the industry’s own words. ever they want to do—run, dance, country—that is what I believe. I think This is why this industry has no credi- bility anymore, when they come up whatever, and feel good about the life the record is absolutely clear. Here are with all this scare talk about black they have led. That is the kind of the facts. The deficit each and every markets and bankruptcy and all the America we have today. That is the year came down after we passed that rest. And we will get to those issues kind of America that developed be- 1993 budget plan, and now they are ac- one by one. This is their record for cause it had leadership and a willing- tually talking about budget surpluses credibility. ness to pay the price with some tough this year. Tall tale No. 3: Nicotine is not ad- That is the record. Those are the votes, some which I didn’t make that I dictive, they told the American people. wish I had. facts. But it doesn’t tell the full story. The truth: From their own docu- So I want to see us pass this to tell Because while revenues went up, over- ment, a 1972 research planning memo the American people we are finished all revenues went up, what happened to by R.J. Reynolds Tobacco Company re- fooling around. We mean it when we the individual tax burden—the individ- searcher Claude Teague: say we want to stop teen smoking. We ual tax burden? This shows, in 1984, the Happily for the tobacco industry, nicotine mean it when we say we are going to tax burden for a family of four with a is both habituating— eliminate this scourge from our soci- median income level of $54,900 in 1999. Addictive— This is income plus payroll tax bur- ety. And we mean it when we stand up and unique in its variety of physiological here and we vote and we say: OK, let den. These are the Federal taxes people actions. are paying. In 1984, that burden on a the public see how we are doing it. That is tall tale No. 3. I yield the floor. family of four was 17 percent of their Tall tale No. 4: Again, the industry The PRESIDING OFFICER (Mr. AL- income. In 1999, it will be 15.1 percent. says nicotine is not addictive. LARD). The Senator from North Da- The tax burden on a family of four at This is from a 1992 memo from Bar- kota. the median income in this country has bara Reuter, director of portfolio man- Mr. CONRAD. Mr. President, I thank gone down. It has gone down, because agement for Philip Morris’ domestic my colleagues, Senator KENNEDY and while revenues are up, we have changed tobacco business: Senator LAUTENBERG, for offering this the distribution by giving targeted tax Different people smoke cigarettes for dif- important amendment. I would like to relief to moderate-income people. ferent reasons. But, the primary reason is to start by answering some of what our That was our plan. That is what deliver nicotine into their bodies. Similar or- colleague from Missouri, Senator passed. That is what has made that dif- ganic chemicals include nicotine, quinine, ASHCROFT, was referring to in terms of ference in the lives of American fami- cocaine, atropine and morphine. tax increases. The Senator from Mis- lies. Their tax burden has gone down, I don’t know how these guys can run souri, Senator ASHCROFT, was referring looking at the income and payroll around the country saying their prod- to tax increases that have occurred. He taxes that they pay. ucts aren’t addictive, which their own

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00095 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5126 CONGRESSIONAL RECORD — SENATE May 19, 1998 documents—which we only received Marlboro’s phenomenal growth rate in the But we do not have to rely on stud- through the disclosure of the lawsuit in past has been attributable in large part to ies. We do not have to look at econo- Minnesota—reveal that they know per- our high market penetration among young metrics analysis and we do not have to fectly well they are addictive. They smokers, 15- to 19-years-old. My own data listen to the Congressional Research shows even higher Marlboro market penetra- have known it a long time, and they tion among 15- to 17-year-olds.’’ Service. We do not have to listen to have run around the country saying Drs. Koop and Kessler. All we have to These are the industry’s words. These things that just aren’t so. That is tall do is look to our neighbors to the are their words. This is their credibil- tale No. 4. north. Here is what happened there. ity that they have shredded. I don’t Tall tale No. 5: Tobacco companies Youth smoking declined sharply when know how many more examples we did not manipulate nicotine levels. they saw a significant price increase. need to understand that this industry The truth, from a 1991 R.J. Reynolds This isn’t some academic study. This is comes before us and they don’t have report: what happened in the real world. clean hands. They don’t come here We are basically in the nicotine busi- Well, the experts, as I have said, have with credibility, because they have un- ness. . . . Effective control of nicotine in all testified to precisely that fact. And our products should equate to a significant dermined their own credibility with here is what two of the noted experts product performance and cost advantage. their statements of the past. tell us about different levels of pricing Tall tale No. 10: Again, their claim They are in the nicotine business, and what it will mean to reductions in tobacco companies don’t market to and nicotine is addictive. Their pre- youth smoking. vious document, it is like cocaine, it is children. The Treasury Department tells us This is from a Brown and Williamson like morphine—who are they kidding? over 5 years that under the proposed document. We know better. We have read their settlement we would get an 18-percent The truth: documents. That is the problem with reduction in youth smoking. Under the the credibility of this industry. We The studies reported on youngsters’ moti- legislation before us, by Senator vation for starting their brand preferences, have now actually had a chance to read as well as the starting behavior of children MCCAIN, we get a 32-percent reduction. their documents that they had hidden as young as 5 years old— Under the amendment before us, we away for so long. Five years old— would get a 40-percent reduction. Now This is tall tale No. 6: Tobacco com- that is the Treasury Department. panies did not manipulate nicotine lev- the studies examined young smokers’ atti- Dr. Chaloupka, who is perhaps the tudes toward ‘‘addiction’’ and contain mul- els. tiple references to how very young smokers most widely recognized expert because The truth can be found in a 1984 Brit- at first believe they cannot become addicted, he has studied all the studies, has con- ish-American Tobacco memo: only to later discover, to their regret, that cluded that the proposed settlement Irrespective of the ethics involved— they are. would reduce teen smoking 20 percent, That is an interesting way to begin a Well, it seems to me the record on the work by Senator MCCAIN and the memo— the credibility of this industry is quite bill before us would reduce youth Irrespective of the ethics involved, we clear. smoking over 5 years by 33 percent, but should develop alternative designs (that do So that brings us to the question of the amendment before us would reduce not invite obvious criticism)— this amendment. And the importance youth smoking by 51 percent. These are You’ve got to love these guys— of this amendment has everything to what the experts are telling us. which will allow the smoker to obtain sig- do with reducing youth smoking. That I ask unanimous consent to have nificant enhanced deliveries of [nicotine] really is the reason for this amend- printed in the RECORD a letter I have should he so wish. ment, because we have held over 24 just received from Dr. Koop and Dr. ‘‘Yeah, let’s go out and give them hearings in our task force and we have Kessler. It is addressed to me. double doses of nicotine so we hook heard repeatedly from the experts. And There being no objection, the letter them even further.’’ we have looked at the evidence. was ordered to be printed in the Tall tale No. 7: Tobacco companies The evidence shows, first of all, that RECORD, as follows: don’t market to children. the percentage of teens who smoked in THE ADVISORY COMMITTEE ON They came up to Congress, and they the past month is going up. It has gone TOBACCO POLICY AND PUBLIC HEALTH, said, ‘‘We don’t target children. We from 28 percent of 12th graders in 1991 May 19, 1998. to this year, 36 percent. The pattern is Hon. KENT CONRAD, wouldn’t do that.’’ U.S. Senate, Washington, DC. Here is a 1978 memo from a Lorillard the same for 10th graders and 8th grad- ers. Smoking among high school sen- DEAR SENATOR CONRAD: I am writing to tobacco executive: urge that you and your colleagues support an The base of our businesses are high school iors is at unprecedented levels. The amendment to the Commerce Committee bill students. percentage of seniors who smoked in to raise and accelerate the price increase on They don’t target kids? What is that? the last month: in 1991, it was 28.3 per- tobacco products. I do so because I believe That is their own words in their own cent; 1997, 36.5 percent. Teenage smok- that such an increase will be one of the most ing is going up. Eighth graders, 10th effective means available to the Senate to documents. Of course, they were hidden reduce the number of children who start away a long time, but now that we graders, 12th graders, the pattern is the same. smoking or using spit tobacco. have them, we know what these folks The Advisory Committee on Tobacco and The question before the body is, well, have been up to. We know what these Public Health Policy that we chaired last companies have been up to. is there any indication that a price in- summer recommended that the price per Tall tale No. 8: Again, their claim to- crease will change that? And the evi- pack increase by at least $1.50. This in itself bacco companies don’t market to chil- dence is overwhelming. Our own Con- was moderate and realistic: Other studies dren. gressional Research Service tells us for have recommended that the price increase every 10-percent increase in price, you by $2.00 or more. But the message is clear: Let’s just look at their own words Raising prices reduces youth smoking. again. A 1976 R.J. Reynolds research will get about a 7-percent reduction in teen smoking; a 10-percent increase in It is as simple as this: Price affects de- department forecast: mand, and price affects demand steeply Evidence is now available to indicate that price, a 7-percent reduction in youth among children. Study after study has dem- the 14- to 18-year-old age group is an increas- smoking. onstrated that when prices go up, fewer chil- ing segment of the smoking population. RJR It is not just the Congressional Re- dren start to smoke. This is important be- must soon establish a successful new brand search Service. The studies that have cause children are not yet addicted and they in this market if our position in the industry been done on the econometrics of de- can refrain from tobacco use. Moreover, is to be maintained over the long term. mand versus price show the same there is good evidence that if people do not I don’t know what could be more thing. Dr. Chaloupka did the break- start smoking by the age of 18, they do not through study. He concluded much the start at all. clear than the industry’s own words. And the size of the price hike matters. The Tall tale No. 9: Again, their claim same thing as the Congressional Re- most prominent experts on tobacco sales, es- they don’t market to children. search Service: for every 10-percent in- timate that a price increase of $1.10 will re- This is from a 1975 report from Philip crease in price, about a 7-percent re- sult in a 34% decline in children smoking, Morris researcher Myron Johnston: duction in youth usage. while an increase of $1.50 will result in a 56%

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00096 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5127 decline. The amendment would result in a bacco-related illnesses. It is by far and $1.10 under the McCain bill or $1.50 22% further decline in children smoking. away the biggest health threat that is under the Kennedy-Lautenberg amend- So we urge you to move decisively and to controllable. So this vote tomorrow is ment, they are not telling the truth, act on the behalf of the Nation’s children. In- crease the price. Lower the demand. Save going to be a vote on 800,000 American just like they didn’t tell the truth children from this addictive and deadly prod- lives. Are we going to save them? Or when they said their products didn’t uct. are we going to condemn them to cause health problems, just like they Sincerely, death? And it is an awful death. didn’t tell the truth when they said C. EVERETT KOOP, M.D. At hearing after hearing we have their products weren’t addictive, just DAVID A. KESSLER, M.D. heard the stories of those who have like they didn’t tell the truth when Mr. CONRAD. The letter says: been through the agonizing experience they said they didn’t market to kids, [We are] writing to urge that you and your of being told they are dying of cancer. just like they didn’t tell the truth colleagues support an amendment . . . to The last hearing we had we had a man when they said these products were not raise and accelerate the price increase on to- who had been a Winston model. Now he manipulated to further addict young bacco products. [We] do so because [we] be- has lung cancer. We had a woman who people. lieve such an increase will be one of the most had been a Lucky Strike spokesperson, Look, the record is clear on every effective means available to the Senate to issue: They are not telling the Amer- reduce the number of children who start and by the terms of her contract was required to start smoking. Now she ican people the full truth. smoking or use spit tobacco. When we investigate this question They go on to point out: speaks through a voice box. Over and over, we had the testimony further, they say it will bankrupt It is as simple as this: Price affects de- them. They say it will create this mas- mand, and price affects demand steeply of people, the devastation of using to- bacco products, what it has meant to sive black market. Let’s look. Let’s among children. Study after study has dem- look at where we fit in terms of tax onstrated that when prices go up, fewer chil- their families and to themselves. dren start to smoke. This is important be- I can remember very well being in and prices and where the rest of the in- dustrialized world fits in. cause children are not yet addicted and they New Jersey at a hearing Senator LAU- This chart came out of the Washing- can refrain from tobacco use. Moreover, TENBERG organized. We had a young ton Post last Saturday. These are not there is good evidence that if people do not woman there named Gina Seagraves. my numbers; these are from the Wash- start smoking by the age of 18, they do not And she testified telling of the effect start at all. ington Post last Saturday. Prices in on her family of the loss of her mother Norway on a pack are well over $6, This is Dr. Koop, the former Surgeon at an early age, how it devastated their about $7 a pack in Norway. In Britain, General of the United States, and Dr. family. She broke down and cried. And prices are about $5 a pack; in Denmark, Kessler, the former head of the Food she said, ‘‘Please have the courage to and Drug Administration. They go on just under $5 a pack; in Finland, just stand up to the tobacco companies and under $5 a pack; in New Zealand, about to say: do what you can to keep kids from get- And the size of the price hike matters. The $4.20 a pack; in France, about $3.75 a ting hooked.’’ pack; in Canada, about $3.50 a pack; in most prominent experts on tobacco sales, es- Well, that is what this debate is timate that a price increase of $1.10 will re- the Netherlands, about $3.30 a pack; in sult in a 34% decline in children smoking, about. That is what this vote is about. Singapore, nearly $4 a pack; in Brazil, And when the industry says, ‘‘Well, while an increase of $1.50 will result in a 56% Thailand, and the United States, under you’re going to bankrupt us,’’ here is decline. The amendment would result in a $2. Our average price, about $1.94. 22% further decline in children smoking. what the experts at the Treasury—the So they talk about this massive That is from Dr. Koop and Dr. secretary for Financial Markets testi- black market. How is it that these Kessler, men who have served both Re- fied before our task force. And I quote, countries that have much higher prices publican administrations and Demo- ‘‘We do not believe that the proposed don’t have much of a black market cratic administrations, telling us to legislation will materially affect the problem? And even if we added $1.10 to support this amendment. industry’s risk of insolvency.’’ $1.94—which is in the McCain bill, tak- Now, what does it mean when we talk He went on and said in the very next ing it to $3.04—we would be well below about more teenagers not smoking? sentence, ‘‘Even under conservative as- most of the rest of the industrialized What does it mean in terms of lives? sumptions with respect to price, do- world in terms of a price. Even if we Well, here is what it means: A $1.50 mestic sales volume, and operating had $1.50, we would be well below the price means 2.7 million additional teen- margins, the tobacco industry will re- average price in the rest of the indus- agers not smoking, that is over the bill main very profitable.’’ They are not trialized world. before us. And it means 800,000 children going bankrupt. They are going to have Again on this question of black mar- over time not dying because of the use their profits nicked a little bit. They ket activity, we had an international of tobacco products. are not going bankrupt. expert before our task force. He pro- What we are talking about in this In fact, here is what is going to hap- vided us with this chart. It showed the amendment is not just dollars and pen to them. When you do a financial price of cigarettes and the level of cents. It is much more important than analysis of these companies—this was smuggling in the countries of the Euro- that. It is children’s lives. We are talk- done by the U.S. Treasury Depart- pean Union. It was a very, very inter- ing about a vote that means 800,000 ment—under a $1.10 increase, their esting report. This man is an inter- more people will live if we pass it. So profits in the year 2003 will be $5 bil- national consultant to countries on the choice before this body is really lion. If, instead, we raise the price to how to combat smoking. Here is what very simple: Do you want 800,000 more $1.50, their profits will be $4.3 billion in his report shows. Countries with high people to live or do you want them to the year 2003. They are not going bank- smuggling levels are in red; medium die? rupt. are in yellow; low smuggling rates are This is going to be an important vote That is flawed. They run around the in green. On this axis, we have the and an important question before every country saying they will be bank- price per pack. Member of this Senate. I hope it is on rupted. Every objective analyst has What you find is very interesting. everybody’s conscience tonight: What said they are not going bankrupt. The countries with the highest prices are we going to do? How are we going Their profits will be somewhat reduced, have the least smuggling. The coun- to vote? What difference are we going but they will still enjoy massive prof- tries with lower prices have the smug- to make? What are we going to say? its. If fact, this industry is three times gling problem. Spain has the lowest Are we going to save 800,000 people— as profitable as the average consumer price, yet it has the highest smuggling 800,000 children—or are we going to goods industry in America today. Their problem of any country in Europe. Por- condemn them to death by using the profit margins are 30 percent. The aver- tugal has a medium level of smuggling only legal product in America, when age consumer goods company has a 10 and has among the lowest prices. You used as intended by the manufacturer, percent margin. can see right up the line. But the coun- that addicts and kills its customers? Let’s not cry any crocodile tears for tries with the highest prices have the Mr. President, 400,000 people are this industry. When they come before lowest rates of smuggling—France, Ire- going to die this year because of to- us and say they will be bankrupted by land, U.K., Finland, Denmark.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00097 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5128 CONGRESSIONAL RECORD — SENATE May 19, 1998 Now, these guys come around and say I also want to mention again our other kinds of cigarettes. There are a there will be this massive black mar- friends, the attorneys general who whole lot of ingredients that work ket—massive black market. It hasn’t began this process. Forty of them set- against the smuggling argument, and developed in these other countries in tled a suit with the industry back on we will get to that. the European Union that have much June 20. This legislation that we are I thank the Senator for his efforts. higher prices than we do. Why not? Be- considering now is a direct result of f cause they have control mechanisms. that initial effort on their part. They REGARDING PLACEMENT OF THE They have labeling. They have licens- have been extremely helpful as we REQUIRED INSCRIPTIONS ON ing of those who sell. moved this process along. Here is what the Treasury Depart- It is my understanding that the Sen- QUARTER DOLLARS ISSUED ment, Larry Summers, Deputy Sec- ator from Massachusetts has agreed to UNDER THE 50 STATES COM- retary, said just at the end of last conclude his remarks after the wrap- MEMORATIVE COIN PROGRAM month: ‘‘The black market can and up. Is that correct? Mr. McCAIN. Mr. President, I ask should be minimized through careful Mr. KENNEDY. That is correct. unanimous consent that the Senate legislation.’’ He said, ‘‘By closing the Mr. MCCAIN. I yield the floor. proceed to the immediate consider- distribution chain for tobacco prod- Mr. KERRY. I thank the Chair. I will ation of H.R. 3301, which was received ucts, we will be able to ensure that be very brief. I join in thanking Sen- from the House. these products flow through legitimate ator CONRAD for his very generous com- The PRESIDING OFFICER. Without channels and effectively police any ments about the Commerce Committee objection, it is so ordered. leakages that do take place.’’ and about Senator MCCAIN’s and my ef- The clerk will report. I close as I began. This is a question forts in it. The assistant legislative clerk read of saving children’s lives. This vote to- The truth is that so much of the en- as follows: morrow is a question of, do we save ergy of the Senate has been focused as A bill (H.R. 3301) to amend chapter 51 of 800,000 lives or don’t we? A very simple a result of Senator CONRAD’s leader- title 31, U.S. Code to allow the Secretary of choice—a profound choice, but it is ship. The task force effort that he put the Treasury greater discretion with regard very simple. That is what this vote will together was really exemplary. It to the placement of the required inscriptions be tomorrow. Are we going to keep an reached every corner of every commu- on quarter dollars issued under the 50 States additional 2.7 million kids from taking nity that has anything to do with this commemorative coin program. up the habit of smoking? That trans- issue. It is one of the most thorough The PRESIDING OFFICER. Is there lates into 800,000 lives saved. Or do we and exacting pieces of work that I have objection to the immediate consider- miss the opportunity to throw those seen in the Senate. I think Senator ation of the bill? kids a lifeline and prevent them from MCCAIN would agree with me that There being no objection, the Senate taking up a habit that will addict there are significant components of the proceeded to consider the bill. them, that will create disease in them, product that has been brought to the Mr. McCAIN. Mr. President, I ask and that will ultimately kill a third of floor as a result of his efforts and lead- unanimous consent that the bill be them? That is the record. ership and his vision about this issue. considered read the third time, and The factual base could not be more So I think the quality of the presen- passed, the motion to reconsider be clear. Every health expert that came tation he just made to the Senate and laid upon the table, and that any state- before our task force said that is the to the country is a tribute to the ments relating to the bill be placed at issue. That is why Dr. Koop and Dr. groundwork he has done in order to get the appropriate place in the RECORD. Kessler have written us this day and us here. The PRESIDING OFFICER. Without urged us to have the courage to act. I Likewise, for years, my colleague objection, it is so ordered. hope our colleagues will have the cour- from Massachusetts, the senior Sen- The bill (H.R. 3301), was considered age to act. ator from Massachusetts, has been at read the third time, and passed. I want to commend Senator MCCAIN. the forefront of all of the health issues f I want to commend Senator KERRY and with respect to children and, particu- the other Members of the Commerce THE VERY BAD DEBT BOXSCORE Committee who have done a Herculean larly, leading the effort with respect to the awareness of tobacco, and his lead- Mr. HELMS. Mr. President, at the job to get us an excellent package to close of business yesterday, Monday, begin deliberations on. They have done ership on this has been essential to our May 18, 1998, the federal debt stood at a superb job and have shown remark- ability to have this product. So I thank $5,497,225,027,113.83 (Five trillion, four able public courage. I think every them for that. I will say more about hundred ninety-seven billion, two hun- American should stand up and com- this particular issue tomorrow. dred twenty-five million, twenty-seven mend them for what they have done. Very quickly, I might say to the Sen- thousand, one hundred thirteen dollars They have brought to this floor the ator from North Dakota that a few and eighty-three cents). most sweeping, the most comprehen- weeks ago there was an article in the Five years ago, May 18, 1993, the fed- sive, the most profound bill in terms of New York Times that showed that the eral debt stood at $4,284,320,000,000 tobacco policy we have ever had before smuggling, to the degree there was a (Four trillion, two hundred eighty-four us. They have done it against long problem, has fundamentally been be- odds. We are in their debt. But it is tween countries, our cigarettes going billion, three hundred twenty million). also true we have an opportunity to out from the United States to Europe Ten years ago, May 18, 1988, the fed- make this bill somewhat better. I hope as a consequence of the price differen- eral debt stood at $2,523,270,000,000 (Two we take that chance. tial. If anything, as a result of the in- trillion, five hundred twenty-three bil- I yield the floor. crease in price, there is a potential of lion, two hundred seventy million). Mr. MCCAIN. I want to thank the closing that gap, No. 1. Fifteen years ago, May 18, 1983, the Senator from North Dakota for not No. 2, with respect to those who federal debt stood at $1,268,788,000,000 only his kind remarks but for the enor- worry about Mexico or an infusion into (One trillion, two hundred sixty-eight mous contributions he has made to this this country, we have an increase in billion, seven hundred eighty-eight effort. He has worked tirelessly. He has the law enforcement and inspection ca- million). appeared with our committee—not be- pacity. Most people in the law enforce- Twenty-five years ago, May 18, 1973, fore our committee, but with our com- ment community accept that the re- the federal debt stood at $453,126,000,000 mittee, where we had one of the most turns on heroin and cocaine are so (Four hundred fifty-three billion, one stimulating, I think, dialog and ex- much more significant than the bulk hundred twenty-six million) which re- change of views since I have been a difficulties of transferring cigarettes, flects a debt increase of more than $5 member of that committee. and that is a deterrent to those becom- trillion—$5,044,099,027,113.83 (Five tril- I want to thank him. I know there ing a problem. lion, forty-four billion, ninety-nine will continue to be areas where we are Most people want the quality of the million, twenty-seven thousand, one not in agreement. The fact is, we dis- American cigarette. They are not par- hundred thirteen dollars and eighty- agree very agreeably. ticularly prepared to smoke Chinese or three cents) during the past 25 years.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00098 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5129 MESSAGES FROM THE PRESIDENT William Joseph Burns, of Pennsylvania, a by the Senate and appeared in the RECORD of Career Member of the Senior Foreign Serv- April 22, 1998 Messages from the President of the ice, Class of Minister-Counselor, to be Am- f United States were communicated to bassador Extraordinary and Plenipotentiary the Senate by Mr. Williams, one of his of the United States of America to the INTRODUCTION OF BILLS AND secretaries. Hashemite Kingdom of Jordan. JOINT RESOLUTIONS EXECUTIVE MESSAGES REFERRED Federal Campaign Contribution Report The following bills and joint resolu- As in executive session the Presiding Nominee: William J. Burns. tions were introduced, read the first Officer laid before the Senate messages Post: Ambassador to Jordan. and second time by unanimous con- from the President of the United The following is a list of all members of sent, and referred as indicated: my immediate family and their spouses. I States submitting one nomination By Mr. GRAMS: which was referred to the Committee have asked each of these persons to inform S. 2091. A bill to amend title XVIII of the me of the pertinent contributions made by Social Security Act to ensure medicare re- on the Judiciary. them. To the best of my knowledge, the in- (The nomination received today is imbursement for certain ambulance services, formation contained in this report is com- and to improve the efficiency of the emer- printed at the end of the Senate pro- plete and accurate. gency medical system, and for other pur- ceedings.) Contributions, amount, date, and donee: poses; to the Committee on Finance. f 1. Self: William J. Burns, none. By Mr. SMITH of Oregon (for himself, 2. Spouse: Lisa A. Carty, none. Mr. WYDEN, Mr. THOMAS, and Mr. MESSAGES FROM THE HOUSE 3. Children: Elizabeth and Sarah Burns, BROWNBACK): AT 11:55 a.m., a message from the none. S. 2092. A bill to promote full equality at House of Representatives, delivered by 4. Parents: William F. Burns, $100, 1996, Re- the United Nations for Israel; to the Com- publican National Committee; Margaret C. Mr. Hays, one of its reading clerks, an- mittee on Foreign Relations. Burns, none. By Mr. FEINGOLD: nounced that pursuant to the provi- 5. Grandparents: William H. and Eleanor S. 2093. A bill to provide class size dem- sions of section 806(c)(1) of Public Law Burns (deceased); John and Mary Cassady onstration grants; to the Committee on 104–132, the Speaker appoints the fol- (deceased). Labor and Human Resources. lowing member on the part of the 6. Brothers and spouses: John R. and Ann f House to the Commission on the Ad- Davis Burns, none; Robert P. and Vicki vancement of Federal Law Enforce- Burns, none. SUBMISSION OF CONCURRENT AND 7. Sisters and spouses: Mark E. and Jen- SENATE RESOLUTIONS ment to fill the existing vacancy there- nifer Burns, none. on: Mr. Robert E. Sanders of Florida. The following concurrent resolutions ENROLLED BILLS SIGNED Ryan Clark Crocker, of Washington, a Ca- and Senate resolutions were read, and At 2:55 p.m., a message from the reer Member of the Senior Foreign Service, referred (or acted upon), as indicated: House of Representatives, delivered by Class of Minister-Counselor, to be Ambas- By Mr. DORGAN (for himself, Mr. Ms. Goetz, one of its reading clerks, an- sador Extraordinary and Plenipotentiary of KEMPTHORNE, Mr. WYDEN, Mrs. MUR- RAY, Mr. JOHNSON, Mr. BAUCUS, Mr. nounced that the Speaker has signed the United States of America to the Syrian Arab Republic. CRAIG, Mr. BURNS, Mr. SMITH of Or- the following enrolled bills: Federal Campaign Contribution Report egon, Mr. CONRAD, Mr. GORTON, Mr. S. 1065. An act to establish a matching DASCHLE, Mr. ENZI, and Mr. THOMAS): grant program to help State and local juris- Nominee: Ryan Clark Crocker. S. Res. 232. A resolution to express the dictions purchase armor vests for use by law Post: Ambassador to Syrian Arab Repub- sense of the Senate that the European Union enforcement departments. lic. should waive the penalty for failure to use H.R. 3565. An act to amend Part L of the The following is a list of all members of restitution subsidies for barley to the United Omnibus Crime control and Safe Streets Act my immediate family and their spouses. I States and ensure that restitution or other of 1968. have asked each of these persons to inform subsidies are not used for similar sales in the me of the pertinent contributions made by The enrolled bills were signed subse- United States and that the President, the them. To the best of my knowledge, the in- United States Trade Representative, and the quently by the President pro tempore formation contained in this report is com- Secretary of Agriculture should conduct an (Mr. THURMOND). plete and accurate. investigation of and report on the sale and f Contributions, amount, date, and donee: subsidies; to the Committee on Finance. 1. Self: none. f REPORTS OF COMMITTEES 2. Spouse: Christine Barns Crocker, none. The following reports of committees 3. Children and spouses: none. STATEMENTS ON INTRODUCED 4. Parents: Carol Crocker, none; Howard BILLS AND JOINT RESOLUTIONS were submitted: Crocker (deceased). By Mr. CHAFEE, from the Committee on 5. Grandparents: All deceased since 1926. By Mr. GRAMS: Environment and Public Works, with an 6. Brothers and spouses: none. S. 2091. A bill to amend title XVIII of amendment in the nature of a substitute: 7. Sisters and spouses: none. the Social Security Act to ensure S. 8. A bill to reauthorize and amend the medicare reimbursement for certain Comprehensive Environmental Response, Li- (The above nominations were re- ambulance services, and to improve the ability, and Compensation Act of 1980, and ported with the recommendation that efficiency of the emergency medical for other purposes (Rept. No. 105–192). they be confirmed, subject to the nomi- By Mr. HELMS, from the Committee on system, and for other purposes; to the Foreign Relations, without amendment and nees’ commitment to respond to re- Committee on Finance. with a preamble: quests to appear and testify before any EMERGENCY MEDICAL SERVICES EFFICIENCY ACT S. Res. 172. A resolution congratulating duly constituted committee of the Sen- OF 1998 President Chandrika Bandaranaike ate.) Mr. GRAMS. Mr. President, I rise Kumaratunga and the people of the Demo- (The nominations ordered to lie on this morning on behalf of all those who cratic Socialist Republic of Sri Lanka on the the Secretary’s desk were printed in serve their fellow citizens through celebration of 50 years of independence. the RECORD of March 26, 1998 and April their active participation in the Na- S. Res. 188. A resolution expressing the 22, 1998, at the end of the Senate pro- tion’s emergency care system to intro- sense of the Senate regarding Israeli mem- bership in a United Nations regional group. ceedings.) duce the Emergency Medical Services f In the Foreign Service nominations begin- Act. ning Alexander Almasov, and ending James Mr. President, as a Senator who is EXECUTIVE REPORTS OF Hammond Williams, which nominations were deeply concerned about the ever-ex- COMMITTEE received by the Senate and appeared in the panding size and scope of the Federal RECORD of March 26, 1998 Government, I have long believed The following executive reports of In the Foreign Service nominations begin- committees were submitted: Washington is too big, too clumsy and ning Joan E. La Rosa, and ending Morton J. too removed to deal effectively with By Mr. HELMS, from the Committee on Holbrook, III, which nominations were re- Foreign Relations: ceived by the Senate and appeared in the many of the issues in which it already Charles H. Dolan, Jr., of Virginia, to be a RECORD of March 26, 1998 meddles. Member of the United States Advisory Com- In the Foreign Service nominations begin- However, I also believe there’s an mission on Public Diplomacy for a term ex- ning Michael Farbman, and ending Mary C. overriding public health interest in en- piring July 1, 2000. (Reappointment) Pendleton, which nominations were received suring a viable, seamless, nationwide

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00099 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5130 CONGRESSIONAL RECORD — SENATE May 19, 1998

EMS system. By designating this week WILLIAM ROTH indicating my under- navigate and comply with the tangled as National EMS Week, the Nation rec- standing that ambulance services mess of laws and regulations from the ognizes those individual who make the would be considered part of ‘‘emer- Federal level on down, only to receive EMS system work. gency services’’ as defined in the BBA. either a reimbursement that doesn’t There is no more appropriate time to I have been given no assurances from cover the costs of providing the service reaffirm our commitment to EMS by HCFA that they intend to include am- or otherwise a flat denial of the pay- addressing some of the problems the bulance services as part of the ‘‘emer- ment. system is presented with daily. gency services’’ definition in the bal- Mr. President, I came across this I have been privileged to get to know anced budget agreement. chart last year, the chart I have with the men and women who dedicate their To illustrate how prevalent this me on the floor this morning, that talents to serving others in an emer- problem is, I want to share with you a demonstrates how a Medicare claim gency. We have together discussed case my staff worked on relating to moves from submittal to payment, de- problems within the EMS system and Medicare reimbursement for ambu- nial, or write-off by the ambulance pro- concluded there are areas in which the lance services. Please keep in mind vider. Federal Government can help. that this is the fee-for-service Medicare If you look at this chart, I ask you, The original result of our discussions program. tell me how a rural ambulance provider concerning the Federal role in EMS It was back in 1994 that Andrew who depends on volunteers has the was S. 238, the Emergency Medical Bernecker of Braham, MN, was mowing manpower or the expertise to navigate Services Act [EMSEA]. When I intro- with a power scythe and tractor when through this entire mess. And, in the duced S. 238 on January 30, 1997, I ac- he fell. The rotating blades of the event that it is navigated successfully, knowledged that it wasn’t intended to scythe severely cut his upper arm. Mr. ambulance services are regularly reim- solve all the problems EMS faces; it Bernecker tried to walk toward his bursed at a level that doesn’t even was merely a first step toward a mean- home but was too faint from the blood cover their costs. ingful national dialog on EMs. Indeed, loss, so he crawled the rest of the way. Now let us talk about how much it this first step was a productive one. Afraid that his wife, who was 86 years costs to run just one ambulance. There Last summer, I assembled EMS and old at the time, would panic—or worse, is the cost of the dispatcher who re- health care leaders in Minnesota, asked have a heart attack—he crawled to the mains on the line to give prearrival as- them to take another look at the pump and washed as much blood and sistance, the ambulance itself, which EMSEA, and report back to me with dirt off as he could. His wife saw him costs from $85,000 to $100,000 to put on their thoughts. In January, I received a and immediately called 911 for an am- the road, the radios, beepers, and the copy of their report. bulance. cellular telephones used to commu- I was extremely pleased with their ef- He was rushed to the hospital where nicate between the dispatcher, the am- forts and have used those suggestions Mr. Bernecker ultimately had ortho- bulance, and the hospital, the supplies as the basis for the legislative language pedic surgery and spent some time in and equipment in the ambulance, in- comprising the new Emergency Medi- the intensive care unit. cluding defibrillators, stretchers, EKG cal Services Efficiency Act I am intro- In response to the bills submitted to monitors, and bandages, and the two ducing today. Medicare, the Government sent this emergency medical technicians or I have often said that Congress has a reply with respect to the ambulance paramedics who both drive the ambu- tendency to wait until there’s a crisis billing: lance and provide care to the patient, before it acts, but Congress cannot Medicare Regulations Provide that certain the vehicle repair, maintenance, and wait until there’s a crisis in the EMS conditions must be met in order for ambu- insurance costs, and the liability insur- system before we take steps to improve lance services to be covered. ance for the paramedics. As you can Medicare pays for ambulance services only it. There is simply too much at stake. see, the list goes on and on. Whether we realize it or not, we de- when the use of any other method of trans- Yes, the costs can be high, but it is pend on and expect the constant readi- portation would endanger your health. clear to me that, with the uncertainty ness of emergency medical services. To The Government denied payment, ambulance providers face out in the ensure that readiness, we need to make claiming the ambulance wasn’t medi- field each day, they need to be prepared efficient and effective efforts to secure cally necessary. for every type of injury or condition. the stability of the system. Apparently, Medicare believed the Mr. President, that is expensive, but This has been my focus in redrafting man’s wife—who was, remember, 86 we as consumers expect that in the this legislation. years old—should have been able to There are many similarities between drive him to the hospital for treat- case of an emergency. S. 238 and the new bill I am introducing ment. Mr. and Mrs. Bernecker ap- I am convinced those who complain today. pealed, but were denied, and they about the high costs of emergency care For instance, we continue to assert began paying what they could afford would be aghast if the ambulance that that the most important thing we can each month on the ambulance bill. arrived to care for them in an emer- do to maintain the vitality of the EMS After several years of paying $20 a gency didn’t have the lifesaving equip- system is to compel the government to month, they finally paid off the ambu- ment needed for their treatment. reimburse for the services it says it lance bill. Medicare however, later re- Let us be honest with ourselves: We will pay for under Medicare. opened the case and reimbursed the want the quickest and best service In the meetings I have had with am- Berneckers. when we face an emergency—and the bulance providers, emergency medical I believe the experience this family bottom line is that costs money. technicians emergency physicians, had with Medicare’s denial of payment Mr. President, many of our political nurses, and other EMS-related person- for ambulance services happens far too debates in Washington center around nel, their most common request is to often, and Congress needs to make sure how to better prepare for the 21st cen- base reimbursement on a ‘‘prudent it doesn’t happen again. tury. layperson’’ standard, rather than the Another similarity between the two I have always supported research and ultimate diagnosis reached in the versions of this bill is the creation of a efforts to expand the limits of tech- emergency room. Federal commission on emergency nology and continue to believe techno- While the Balanced Budget Act of medical services to make recommenda- logical innovations and advances in 1997 [BBA] contained a provision basing tions and to help provide input on how biomedical and basic scientific re- reimbursement for emergency services Federal regulatory actions affect all search hold tremendous promise. on the prudent layperson standard, we types of EMS providers. Under the new bill I am introducing have yet to see HCFA’s interpretation EMS needs a seat at the table when today, Federal grant programs will be of the provision and whether it will in- health care and other regulatory policy clarified to ensure that EMS agencies clude ambulance services. is made. are eligible for programs that relate to I have written letters to HCFA and Few things are more frustrating for highway safety, rural development, and Senate Finance Committee Chairman ambulance services than trying to tele-health technology.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00100 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5131 Emergency medical services have Roughly 20 to 25 percent of those vis- Nebraska—Jodi Kozol. come a long way since the first ambu- its started with a call for an ambu- New Jersey—Kimberly Matthews and Mi- lance services began in Cleveland and lance. Each one of those calls is impor- chael Maciejczyk. New York City way back during the New Mexico—Gergory Pollard. tant, especially to those seeking assist- Nevada—Mike Denton and Eric Guevin. 1860’s. ance and the responding EMS person- New York—Thomas Murphy, Vicki Knarr, Indeed, the scientific and techno- nel. Tina Pawlukovich-Cross, Lynn Pulaski, logical advances have created a new The Nation owes a great deal to the Stacey Wallace, Larry Abbey, Edward practice of medicine in just 2 short dec- EMS personnel who have dedicated Schaeffer, Brent Sala, Dana Peritore, Jean ades, and have dramatically improved themselves to their profession because Zambrano, Darrel Grigg, Debra Yandow, the prospects of surviving any serious they care about people and they want John Falgitano, Sam Lubin, and Jim trauma. to help those who are suffering. Mazzucca. Ohio—Kenton Kirkland, Robert Good, and There is reason to believe further ad- Nobody gets rich as a professional vances will have equally meaningful James Drake. paramedic, and there is even less com- Oklahoma—Terri Farmer. results. pensation as a volunteer. The field of Oregon—Gregory Sanders, Doug Carlson, Innovations like tele-health tech- emergency medical services presents and Shawn Hunt. nology may soon allow EMT’s, nurses, many challenges—but offers the reward Pennsylvania—Lisa Mauger, Stephanie and paramedics to perform more so- of knowing you helped someone in need Schmoyer, and Christine Webster. phisticated procedures under a physi- of assistance. Tennessee—James Quilliams. cian’s supervision via real-time, ambu- Texas—Cory Jeffcoat, Eric Silva, Christine Every year, the American Ambulance Saucedo, Elaine Tyler, and Brad Redden. lance-mounted monitors and cameras Association recognizes EMS personnel networked to emergency departments Utah—Marcie Mehl, Charles Cruz, and Pat- across the country for their contribu- rick Eden. in specific service areas. tions to the profession, and bestows By not considering EMS agencies for Virginia—Gerrit ‘‘Bip’’ Terhune. upon them the Stars of Life Award. Vermont—Eric Davenport and Paul Federal grant dollars, we may cause This year, 124 individuals have been Jardine. significant delays in the application of chosen by their peers to be honored for Washington—George McGibbon and Jim current technologies. That would be a demonstrating exceptional kindness Hogenson. mistake. and selflessness in performing their du- Mr. GRAMS. Mr. President, in clos- Perhaps the most dramatic departure ing I have talked with many EMT’s, the reintroduced bill takes from S. 238 ties. I ask unanimous consent to have paramedics, and emergency nurses, and related to the designation of a lead printed the 1998 American Ambulance most tell me that they wouldn’t think Federal agency for EMS. of doing anything else for their chosen In August of 1996, the National High- Association Stars of Life honorees in career. way Traffic and Safety Administration the RECORD. There being no objection, the mate- So, in honoring them during this Na- and the Health Resources and Services tional EMS Week, I can think of no Administration, Maternal and Child rial was ordered to be printed in the RECORD, as follows: better way to recognize their service Health Bureau issued their report, than through the introduction of legis- ‘‘Emergency Medical Services: Agenda 1998 STARS OF LIFE HONOREES Alaska—Monica Helmuth. lation that will help them to help oth- for the Future.’’ ers. The report outlined specific ways Arizona—Jeff Mayhew, Michael Norling, I ask my colleagues to support them EMS can be improved, and one of the Tammy Smith, Karen Deo, and Sharon R. Featherston. by supporting the Emergency Medical stated goals was the authorization of a California—Eva Eveland, John Erie Henry, Services Act. ‘‘lead Federal agency.’’ Chris McGeragle, Nephty Landin, Victor My original legislation instructed Oseguera, Todd Hombs, Kathy Hester, Les By Mr. SMITH of Oregon (for the Secretaries of Health and Trans- Hutchison, David Pratt, Ted Boorkman, and himself, Mr. WYDEN, Mr. THOM- portation to confer on and facilitate Paul Maxwell. AS, and Mr. BROWNBACK): Colorado—Kurt Dennison and Jed Swank. the transfer of all EMS-related func- S. 2092. A bill to promote full equal- tions to the Department of Transpor- Connecticut—Leonard Sudniek, Michael Pederson, and Alfonso Anglero. ity at the United Nations for Israel; to tation. the Committee on Foreign Relations. While we recognized that there would Delaware—Mary McGuire. Florida—Sean Kelley, Kenneth Warner, be some who would applaud the notion EQUALITY FOR ISRAEL AT THE UNITED NATIONS David Meck, and John Morrow. ACT OF 1998 and others who would berate it, the Georgia—Damon Wisdom and Dwayne Fri- suggestion compelled people to con- Mr. SMITH of Oregon. Mr. President, day. today I introduce legislation requiring sider the issue and offer alternative ap- Hawaii—Thomas Sodoma. proaches. Iowa—Elaine Snell and Gary Soderstrom. the Secretary of State report on ac- The recommendations of the advisory Illinois—Julie Burke. tions taken by our Ambassador to the committee and the comments I have Indiana—Thomas Shoemaker, Rebecca United Nations to push the nations of received from national groups indicate Johnson, and Betty Nickens. the Western Europe and Others Group Kansas—Darren Root. we have yet to reach a solution to the (WEOG) to accept Israel into their Kentucky—Aaron Gutermuth. group. problematic designation of a lead Fed- Louisiana—Mark Reis, Wilson ‘‘Billy’’ eral agency. Hughes, Patrice Shows, and Dennis McKin- As you may know, Israel is the only As such, under the new legislation, ley. nation among the 185 member states we call for an independent study to de- Massachusetts—Warren F. Nicklas, Shawn that does not hold membership in a re- termine which existing agency or new Payton, Bernard Underwood, Chester gional group. Membership in a regional board would best serve as the lead Fed- ‘‘Chuck’’ Cummens, Michael Ward, Dana group is the prerequisite for any nation eral entity for EMS. Gerrard, Priscilla Gerrard, and John to serve on key United Nations bodies The concerns expressed to me about Conceison, Jr. such as the Security Council. In order Maryland—James Pirtle, John Dimitriadis, to correct this inequality, I am intro- designating the Department of Trans- Chad Packard, and Jeff Meyer. portation as the lead Federal agency Maine—Paul Knowlton and Doug Chapelle. ducing ‘‘The Equality for Israel at the were virtually identical to the con- Michigan—Nancy Hunger, Craig Veldheer, United Nations Act of 1998.’’ I believe cerns about granting lead-agency des- Jeffrey Buchanan, Timothy Waters, Lydia that this legislation will prompt our ignation to the Department of Health Paulus, Thomas Scott, and Tonya Prescott. United Nations Representative to and Human Services. It just didn’t Minnesota—Daryl Howe, Dan Anger, and make equality for Israel at the United seem to fit. John Hall. Nations a high priority. Therefore, I believe the most appro- Missouri—David Michael, Royce McGuire, I am proud to be joined by Senators and Kirk N. Wattman. Wyden, Brownback and Thomas as priate action is to take our time and Mississippi—Denise Pilgreen. get it right by conducting this study. North Carolina—Cynthia Seamon, Amy original co-sponsors of this important Mr. President, in 1995, there were ap- Beinke, Jerry Cornelison, Ronald Corrado, legislation. proximately 100 million visits to emer- Thomas Wright, Tim Marshburn, and Heath- Mr. President, Israel has been a gency departments across the country. er VanRaalte. member of the United Nations since

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00101 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5132 CONGRESSIONAL RECORD — SENATE May 19, 1998 1949, yet it has been continuously pre- (3) Specific responses solicited and received In addition to vital input from these cluded from membership in any re- by the Secretary of State from each of the Wisconsin educators, other studies con- gional bloc. Most member states from nations of Western Europe and Others Group firm that small class size promotes ef- the Middle East would block the vote (WEOG) on their position concerning Israel’s fective teaching and learning. The acceptance into their organization. needed to join their own regional (4) Other measures being undertaken, and leading scientific studies of the impact group. The Western Europe and Others which will be undertaken, to ensure and pro- of small class size, Tennessee’s STAR Group, however, has accepted countries mote Israel’s full and equal participation in study and its follow up, the Lasting from other geographical areas—the the United Nations. Benefit Study, found that students in United States and Australia for exam- small classes in the early years earned ple. By Mr. FEINGOLD: significantly higher scores on basic Recently United Nations Secretary S. 2093. A bill to provide class size skill tests in all four years and in all General Kofi Annan announced that demonstration grants; to the Commit- types of schools. Follow-up studies ‘‘It’s time to usher in a new era of rela- tee on Labor and Human Resources. have shown that these achievement tions between Israel and the United ∑ Mr. FEINGOLD. Mr. President, today gains were sustained in later years Nations . . . One way to rectify that I introduce the National SAGE Act. even if students are placed in larger new chapter would be to rectify an This legislation would authorize a lim- classes. While I certainly recognize anomaly: Israel’s position as the only ited number of innovative demonstra- that teacher quality, high expectations Member State that is not a member of tion grant programs to assist states in an parental involvement are important one of the regional groups, which their efforts to reduce public school factors in quality education, the sig- class size and improve learning in the means it has no chance of being elected nificance of small class size should not earliest grades. to serve on main organs such as the Se- be underestimated and cannot be ig- Mr. President, my own state of Wis- curity Council or the Economic and So- consin has been a leader in the effort to nored. Mr. President, Wisconsin is not the cial Council. This anomaly would be reduce class size in public schools. This only state fighting to reduce class size corrected.’’ legislation is modeled after Wisconsin’s I believe it is time to back Secretary and implement educational reforms in successful pilot program, the Student General Annan’s idea with strong sup- its public schools. Several states have Achievement Guarantee in Education port from the United States Senate and made small class size a priority, in- of SAGE program. I am proud that my I ask all my colleagues to join me in cluding California, Tennessee, Indiana bill bears the same name as that sending this message to the UN to stop and Nevada to name a few. My legisla- groundbreaking program. this discrimination against Israel. SAGE is a very appropriate acronym tion, the National SAGE Act, author- Mr. President, I ask unanimous con- for this legislation, for a sage is a izes $75 million over a period of five sent to have this legislation printed in teacher who imparts knowledge and years to fund a limited number of dem- the RECORD. wisdom through direct engagement onstration grants to state that create There being no objection, the bill was with his or her students. By providing innovative programs to reduce public ordered to be printed in the RECORD, as grants to states trying to reduce class school class size and improve edu- follows: size and implement educational re- cational performance, as Wisconsin has S. 2092 forms, the National SAGE Act would done. The Secretary of Education Be it enacted by the Senate and House of Rep- give students and teachers more oppor- would choose the states to receive resentatives of the United States of America in tunities to interact directly. The result funding based on several criteria, in- Congress assembled, will be better teacher morale, better cluding the state’s need to reduce class SECTION 1. SHORT TITLE. student performance and a happier, size, the ability of a state education This Act may be cited as the ‘‘Equality for agency to furnish 50 percent of the Israel at the United Nations Act of 1998’’. more successful school. funds and the degree to which parents, SEC. 2. EFFORTS TO PROMOTE FULL EQUALITY Mr. President, I have heard about the AT THE UNITED NATIONS FOR need for smaller classes from parents, teachers, school administrators and ISRAEL. teachers and school administrators local teacher organizations are con- (a) CONGRESSIONAL STATEMENT.—It is the around Wisconsin—including my moth- sulted in designing the program. The sense of the Congress that— er-in-law, who has been a 1st grade funding for the National SAGE Act (1) the United States must help promote an would be fully offset by cuts in a end to the persistent inequity experienced by teacher for more than 20 years in Israel in the United Nations whereby Israel Waunakee. They all tell me by reduc- wasteful federal program that sub- is the only longstanding member of the orga- ing class size students receive more at- sidizes research and development for a nization to be denied acceptance into any of tention from teachers, and it stands to huge aircraft manufacturer. That’s the United Nations regional blocs, which reason that more attention will trans- classic corporate welfare and by elimi- serve as the basis for participation in impor- late into more learning. nating it, we can fund this important tant activities of the United Nations, includ- When asked to evaluate the Wiscon- SAGE program and still reduce federal ing rotating membership on the United Na- sin SAGE program, eight-year teaching spending by more than $1.7 billion over tions Security Council; and veteran Shelia Briggs, of Glendale Ele- a five year period. (2) the United States Ambassador to the mentary School in Madison, Wisconsin The National SAGE Act also includes United Nations should take all steps nec- essary to ensure Israel’s acceptance in the said, ‘‘SAGE is just phenomenal. I have a comprehensive research and evalua- Western Europe and Others Group (WEOG) kindergarteners who are writing para- tion component to document the bene- regional bloc, whose membership includes graphs. In addition, behavior is a huge fit of smaller class size in the earliest the non-European countries of Canada, Aus- benefit of SAGE. With too many little grades, and support efforts to reduce tralia, and the United States. bodies, you will have difficulties. class size in schools all over America. (b) REPORTS TO CONGRESS.—Not later than Things are so much more manageable.’’ Mr. President, I want to take a mo- 60 days after the date of the enactment of Additionally, second grade teacher ment to say how pleased I am that the this Act and on a quarterly basis thereafter, Amy Kane says, ‘‘I have taught second Clinton Administration has been push- the Secretary of State shall submit to the appropriate congressional committees a re- grade for nine years and never had this ing the issue of class size to the fore- port which includes the following informa- high a percentage of readers. Their front of the education debate. In Janu- tion (in classified or unclassified form as ap- writing skills are much higher, and ary I wrote to the President requesting propriate): they are able to behave better. I make that he make reducing class size a pri- (1) Actions taken by representatives of the contact with parents now that I could ority in his FY 99 education budget. I United States, including the United States never make with 34 students.’’ was pleased that the President’s budget Ambassador to the United Nations, to en- Wisconsin’s SAGE program has again includes an incentive to help schools courage the nations of the Western Europe demonstrated empirically what we provide small classes in the early and Others Group (WEOG) to accept Israel know instinctively: students in smaller into their regional bloc. grades. (2) Efforts undertaken by the Secretary classes get more attention from teach- While I support the intent of the General of the United Nations to secure ers, and teachers with fewer students President’s class size proposal, it is not Israel’s full and equal participation in that will have more time and energy to de- funded. I was uncomfortable with the body. vote to each child. President’s original proposal to fund a

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00102 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5133 small class size initiative with money critical difference additional teacher ods of reducing class size that may provide from a tobacco settlement that did not attention can make for their child’s information meaningful to other State edu- yet exist. I am hopeful that Congress educational achievement. cational agencies and local educational will soon pass tobacco legislation, Mr. The parent’s highlighted in the Post agencies. ‘‘(2) FEDERAL SHARE.—The Federal share President, but it is best that we not tie article, Mr. President, are fed up with shall be 50 percent. class size legislation to something as public school classes made up of twen- ‘‘(b) RESERVATION.—The Secretary may re- controversial and decisive as the to- ty-five to thirty students or more, fed serve not more than 5 percent of the amount bacco bill. up with the lack of individual atten- appropriated under section 565A for each fis- My fear is that the end of the 105th tion their children are receiving in the cal year to carry out the activities described session will come and Congress will go classroom; and finally, Mr. President, in section 565. ‘‘(c) SELECTION CRITERIA.—The Secretary home having done nothing to assist parents are fed up with the discipline shall make grants to State educational agen- States trying to reduce class size. My problems created by too many children cies on the basis of— bill approaches this issue more di- and too few adults in one classroom. ‘‘(1) the need and the ability of a State rectly, without the baggage of the to- While I support the choices of fami- educational agency to reduce the class size bacco bill and without expanding the lies who send their children to public of an elementary school or secondary school deficit. schools or home school their children, served by such agency; I have been very active on the class the growing trend to move public re- ‘‘(2) the ability of a State educational size issue over the last year because sources away from the public schools, agency to furnish the non-Federal share of again—I believe that there is a great the costs of the demonstration project for where more than 90% of our nation’s which assistance is sought; national purpose of helping our chil- children are educated, is disturbing. In- ‘‘(3) the ability of a State educational dren to learn by doing all we can to re- stead of abandoning public education agency to continue the project for which as- duce class sizes for children in the ear- with tax breaks for private schools or sistance is sought after the termination of liest grades. While I embrace that na- spending time and energy designing a Federal financial assistance under this sub- tional purpose, I do not seek a national Constitutionally flawed voucher pro- part; and mandate for smaller classes. That is gram, Congress should be working to ‘‘(4) the degree to which a State edu- not a proper federal goal. Instead, I ensure that we target federal dollars to cational agency demonstrates in the applica- support smaller classes as a national tion submitted pursuant to section 564 con- meet the needs of local school dis- sultation in program implementation and goal, to be achieved by the local school tricts. Those of us who believe a high design with parents, teachers, school admin- boards. I think we all can agree that quality public education system is es- istrators, and local teacher organizations, there are no magic remedies to the sential to the productivity of our na- where applicable. problems in our public schools and no tion should be very alarmed by this ‘‘(d) PRIORITY.—In awarding grants under instant fix to improve learning. How- growing effort to move resources away this subpart, the Secretary shall give prior- ever, I believe that targeting federal from our public schools. ity to demonstration projects that involve funds matched on a 50–50 basis by state at-risk students in the earliest grades, in- Mr. President, the federal govern- cluding educationally or economically dis- funding, to assist school districts mov- ment has a responsibility during the advantaged students, students with disabil- ing toward smaller class size, is an ef- 105th Congress to take a positive step ities, and limited English proficient stu- fective use of federal dollars. toward helping school districts reduce dents. At its core, Mr. President, the small class size as part of an overall effort to ‘‘(e) GRANTS MUST SUPPLEMENT OTHER class size issue is really about protect- improve education and ensure that our FUNDS.—A State educational agency shall ing pubic education. The promising use the Federal funds received under this children have the best chance to excel subpart to supplement and not supplant achievements of state efforts in edu- and reach their full potential. I look cation reform merit strong federal sup- other Federal, State, and local funds avail- forward to continued debate on this able to the State educational agency to port. We have an obligation to issue and hope that my colleagues will carry out the purpose of this subpart. strengthen public schools, because they consider the National SAGE Act as a ‘‘SEC. 563. PROGRAM REQUIREMENTS. are the principal institution for edu- reasonable, fiscally responsible pro- ‘‘(a) ANNUAL COMPETITION.—In each fiscal cating American children. posal to assist states in their efforts to year, the Secretary shall announce the fac- Public schools are all-inclusive; they reduce public school class size and im- tors to be examined in a demonstration accept all students, regardless of in- prove learning in the earliest grades. project assisted under this subpart. Such fac- come, race, religion or ethnicity. In in- tors may include— Mr. President, I ask unanimous con- ‘‘(1) the magnitude of the reduction in troducing the National SAGE Act sent that the full text of the bill be today, I want to reiterate my strong class size to be achieved; printed in the RECORD. ‘‘(2) the level of education in which the commitment to quality public edu- There being no objection, the bill was demonstration projects shall occur; cation. I am proud of the education I ordered to be printed in the RECORD, as ‘‘(3) the form of the instructional strategy received from Wisconsin’s public follows: to be demonstrated; and schools; proud to have graduated from ‘‘(4) the duration of the project. S. 2093 them, and proud that my children at- ‘‘(b) RANDOM TECHNIQUES AND APPROPRIATE tend them. I am committed to helping Be it enacted by the Senate and House of Rep- COMPARISON GROUPS.—Demonstration resentatives of the United States of America in our public schools improve and adapt projects assisted under this subpart shall be Congress assembled, designed to utilize randomized techniques or and respond to the increased burdens SECTION. 1. CLASS SIZE DEMONSTRATION appropriate comparison groups. placed on them. I feel strongly that the GRANTS. ‘‘SEC. 564. APPLICATION. federal government has a limited—but Subpart 3 of part D of title V of the Higher ‘‘(a) IN GENERAL.—In order to receive a important role to play in public edu- Education Act of 1965 (20 U.S.C. 1109 et seq.) grant under this subpart, a State edu- cation. is amended to read as follows: cational agency shall submit an application Mr. President, the Washington Post ‘‘Subpart 3—Class Size Demonstration Grants to the Secretary that is responsive to the an- nouncement described in section 563(a), at recently wrote an article about the ‘‘SEC. 561. PURPOSE. such time, in such manner, and containing growing number of families in the ‘‘It is the purpose of this subpart to pro- or accompanied by such information as the Washington area deciding to educate vide grants to State educational agencies to Secretary may reasonably require. their children at home, rather than enable such agencies to determine the bene- ‘‘(b) DURATION.—The Secretary shall en- participate in the public school system. fits, in various school settings, of reducing courage State educational agencies to sub- Mr. President, this trend is not happen- class size on the educational performance of mit applications under this subpart for a pe- ing in Washington alone, but around students and on classroom management and riod of 5 years. organization. the nation. ‘‘(c) CONTENTS.—Each application submit- The Post article states that one of ‘‘SEC. 562. PROGRAM AUTHORIZED. ted under subsection (a) shall include— their biggest complaints for families ‘‘(a) PROGRAM AUTHORIZED.— ‘‘(1) a description of the objectives to be at- ‘‘(1) IN GENERAL.—The Secretary shall tained with the grant funds and the manner opting out of the public schools is large award grants, on a competitive basis, to in which the grant funds will be used to re- class size. Parents understand the im- State educational agencies to pay the Fed- duce class size; portance of a low teacher to child ratio eral share of the costs of conducting dem- ‘‘(2) a description of the steps to be taken in the classroom. They understand the onstration projects that demonstrate meth- to achieve target class sizes, including,

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00103 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5134 CONGRESSIONAL RECORD — SENATE May 19, 1998 where applicable, the acquisition of addi- S. 1251 CLELAND] was added as a cosponsor of tional teaching personnel and classroom At the request of Mr. D’AMATO, the S. 2054, a bill to amend title XVIII of space; name of the Senator from Georgia [Mr. the Social Security Act to require the ‘‘(3) a statement of the methods for the CLELAND] was added as a cosponsor of collection of data necessary for the evalua- Secretary of Veterans Affairs and the tion of the impact of class size reduction pro- S. 1251, a bill to amend the Internal Secretary of Health and Human Serv- grams on student achievement; Revenue Code of 1986 to increase the ices to carry out a model project to ‘‘(4) an assurance that the State edu- amount of private activity bonds which provide the Department of Veterans cational agency will pay, from non-Federal may be issued in each State, and to Affairs with Medicare reimbursement sources, the non-Federal share of the costs of index such amount for inflation. for Medicare health-care services pro- the demonstration project for which assist- S. 1252 ance is sought; and vided to certain Medicare-eligible vet- ‘‘(5) such additional assurances as the Sec- At the request of Mr. D’AMATO, the erans. retary may reasonably require. name of the Senator from Maryland S. 2064 ‘‘(d) SUFFICIENT SIZE AND SCOPE RE- [Ms. MIKULSKI] was added as a cospon- QUIRED.—The Secretary shall award grants sor of S. 1252, a bill to amend the Inter- At the request of Ms. MIKULSKI, the under this subpart only to State educational nal Revenue Code of 1986 to increase names of the Senator from Connecticut agencies submitting applications which de- the amount of low-income housing [Mr. LIEBERMAN], and the Senator from scribed projects of sufficient size and scope credits which may be allocated in each Oregon [Mr. WYDEN] were added as co- to contribute to carrying out the purpose of State, and to index such amount for in- this subpart. sponsors of S. 2064, a bill to prohibit flation. ‘‘SEC. 565. EVALUATION AND DISSEMINATION. the sale of naval vessels and Maritime ‘‘(a) NATIONAL EVALUATION.—The Sec- S. 1464 Administration vessels for purposes of retary shall conduct a national evaluation of At the request of Mr. HATCH, the scrapping abroad, to establish a dem- the demonstration projects assisted under name of the Senator from North Da- onstration program relating to the this subpart to determine the costs incurred kota [Mr. DORGAN] was added as a co- breaking up of such vessels in United in achieving the reduction in class size and sponsor of S. 1464, a bill to amend the States shipyards, and for other pur- the effects of the reductions on results, such Internal Revenue Code of 1986 to per- as student performance in the affected sub- poses. jects or grades, attendance, discipline, class- manently extend the research credit, S. 2084 room organization, management, and teach- and for other purposes. er satisfaction and retention. S. 1534 At the request of Mrs. BOXER, the ‘‘(b) COOPERATION.—Each State educational At the request of Mr. TORRICELLI, the names of the Senator from New Jersey agency receiving a grant under this subpart name of the Senator from Georgia [Mr. [Mr. TORRICELLI] and the Senator from shall cooperate in the national evaluation described in subsection (a) and shall provide CLELAND] was added as a cosponsor of California [Mrs. FEINSTEIN] were added such information to the Secretary as the S. 1534, a bill to amend the Higher Edu- as cosponsors of S. 2084, a bill to amend Secretary may reasonably require. cation Act of 1965 to delay the com- the Outer Continental Shelf Lands Act ‘‘(c) REPORTS.—The Secretary shall report mencement of the student loan repay- to direct the Secretary of the Interior to Congress on the results of the evaluation ment period for certain students called to cease mineral leasing activity on conducted under subsection (a). to active duty in the Armed Forces. ‘‘(d) DISSEMINATION.—The Secretary shall submerged land of the Outer Continen- S. 1645 widely disseminate information about the tal Shelf that is adjacent to a coastal results of the class size demonstration At the request of Mr. ABRAHAM, the State that has declared a moratorium projects assisted under this subpart. name of the Senator from Nebraska on mineral exploration, development, ‘‘SEC. 565A. AUTHORIZATION OF APPROPRIA- [Mr. HAGEL] was added as a cosponsor or production activity in adjacent TIONS. of S. 1645, a bill to amend title 18, State waters. ‘‘There are authorized to be appropriated United States Code, to prohibit taking to carry out this subpart $15,000,000 for fiscal minors across State lines to avoid laws SENATE CONCURRENT RESOLUTION 30 year 1999 and each of the 4 succeeding fiscal years.’’. requiring the involvement of parents in At the request of Mr. HELMS, the SEC. 2. PRIVATE SECTOR FUNDING FOR RE- abortion decisions. name of the Senator from Iowa [Mr. SEARCH AND DEVELOPMENT BY S. 1700 GRASSLEY] was added as a cosponsor of NASA RELATING TO AIRCRAFT PER- At the request of Mr. MOYNIHAN, the Senate Concurrent Resolution 30, a FORMANCE. The Administrator of the National Aero- name of the Senator from Massachu- concurrent resolution expressing the nautics and Space Administration may not setts [Mr. KENNEDY] was added as a co- sense of the Congress that the Republic carry out research and development activi- sponsor of S. 1700, a bill to designate of China should be admitted to multi- ties relating to the performance of aircraft the headquarters building of the De- lateral economic institutions, includ- (including supersonic aircraft and subsonic partment of Housing and Urban Devel- ing the International Monetary Fund aircraft) unless the Administrator receives opment in Washington, District of Co- and the International Bank for Recon- payment in full for such activities from the lumbia, as the ‘‘Robert C. Weaver Fed- struction and Development. private sector.∑ eral Building’’. f SENATE CONCURRENT RESOLUTION 84 S. 1758 ADDITIONAL COSPONSORS At the request of Mr. LUGAR, the At the request of Mr. KEMPTHORNE, S. 374 name of the Senator from North Caro- the names of the Senator from Ala- At the request of Ms. SNOWE, her lina [Mr. HELMS] was added as a co- bama [Mr. SESSIONS], and the Senator name was added as a cosponsor of S. sponsor of S. 1758, a bill to amend the from Hawaii [Mr. INOUYE] were added 374, a bill to amend title 38, United Foreign Assistance Act of 1961 to facili- as cosponsors of Senate Concurrent States Code, to extend eligibility for tate protection of tropical forests Resolution 84, a concurrent resolution hospital care and medical services through debt reduction with developing expressing the sense of Congress that under chapter 17 of that title to veter- countries with tropical forests. the Government of Costa Rica should ans who have been awarded the Purple S. 1997 take steps to protect the lives of prop- Heart, and for other purposes. At the request of Ms. MIKULSKI, the erty owners in Costa Rica, and for S. 772 name of the Senator from South Caro- other purposes. At the request of Mr. SPECTER, the lina [Mr. HOLLINGS] was added as a co- SENATE RESOLUTION 188 name of the Senator from Indiana [Mr. sponsor of S. 1997, a bill to protect the COATS] was added as a cosponsor of S. right of a member of a health mainte- At the request of Mr. MOYNIHAN, the 772, a bill to establish an Office of Reli- nance organization to receive continu- name of the Senator from Alabama gious Persecution Monitoring, to pro- ing care at a facility selected by that [Mr. SESSIONS] was added as a cospon- vide for the imposition of sanctions member. sor of Senate Resolution 188, a resolu- against countries engaged in a pattern S. 2054 tion expressing the sense of the Senate of religious persecution, and for other At the request of Mr. JEFFORDS, the regarding Israeli membership in a purposes. name of the Senator from Georgia [Mr. United Nations regional group.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00104 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5135 SENATE RESOLUTION 232—EX- (B) establish procedures to ensure that res- by a State against one or more tobacco com- PRESSING THE SENSE OF THE titution and other subsidies are not used for panies to recover tobacco-related medicaid SENATE RELATIVE TO EURO- sales of agricultural commodities to the expenditures; PEAN UNION SUBSIDIES OF BAR- United States or other countries of North (2) who acted on behalf of a State or politi- America; LEY cal subdivision of a State in connection with (2) the President of the United States, the any future litigation of an action maintained Mr. DORGAN (for himself, Mr. KEMP- United States Trade Representative, and the by a State against one or more tobacco com- THORNE, Mr. WYDEN, Mrs. MURRAY, Mr. Secretary of Agriculture should immediately panies to recover tobacco-related medicaid JOHNSON, Mr. BAUCUS, Mr. CRAIG, Mr. consult with the European Union regarding expenditures; the sale of European feed barley to the BURNS, Mr. SMITH of Oregon, Mr. (3) who act at some future time on behalf United States in order to avoid any future CONRAD, Mr. GORTON, Mr. DASCHLE, Mr. of a State or political subdivision of a State sale of any European barley to the United in connection with any past litigation of an ENZI, and Mr. THOMAS) submitted the States that is based on restitution or other following resolution; which was re- action maintained by a State against one or subsidies; and more tobacco companies to recover tobacco- ferred to the Committee on Finance: (3) not later than 60 days after approval of related medicaid expenditures; this resolution, the United States Trade Rep- S. RES. 232 (4) who act at some future time on behalf resentative and the Secretary of Agriculture of a State or political subdivision of a State should report to Congress on— Whereas, in an unprecedented sale, the Eu- in connection with any future litigation of (A) the terms and conditions of the sale of ropean Union entered into a contract with a an action maintained by a State against one European barley to the United States; United States buyer to sell heavily sub- or more tobacco companies to recover to- (B) the results of the consultations under sidized European barley to the United bacco-related medicaid expenditures; States; paragraph (2); (C) other steps that are being taken or will (5) who acted on behalf of a plaintiff class Whereas the sale of almost 1,400,000 bushels in civil actions to which this Act applies (30,000 metric tons) of feed barley was be taken to address to such situations in the future; and that are brought against participating or shipped from Finland to Stockton, Califor- nonparticipating tobacco manufacturers; nia; (D) any additional authorities that may be necessary to carry out subparagraphs (B) and (6) who act at some future time on behalf Whereas news of the sale depressed feed of a plaintiff class in civil actions to which barley prices in the California feed barley (C). f this Act applies that are brought against market; participating or nonparticipating tobacco Whereas, since the market sets national AMENDMENTS SUBMITTED manufacturers; pricing patterns for both feed and malting (7) who acted on behalf of a plaintiff in barley, the sale would mean enormous mar- civil actions to which this Act applies that ket losses for barley producers throughout NATIONAL TOBACCO POLICY AND are brought against participating or non- the United States, at a time when the United participating tobacco manufacturers; States barley producers are already suffering YOUTH SMOKING REDUCTION ACT from low prices; (8) who act at some future time on behalf Whereas the European restitution sub- of a plaintiff in civil actions to which this sidies for this barley amounts to $1.11 per FAIRCLOTH (AND OTHERS) Act applies that are brought against partici- bushel ($51 per metric ton); AMENDMENT NO. 2421 pating or nonparticipating tobacco manufac- turers; Whereas the price-depressing effects of this Mr. FAIRCLOTH (for himself, Mr. one sale will continue to adversely affect (9) who expended efforts that in whole or in SESSIONS, and Mr. MCCONNELL) pro- market prices for at least a 9-month period part resulted in or created a model for pro- as this grain moves through the United posed an amendment to the bill (S. grams in this Act; States marketing system; 1415) to reform and restructure the (10) who acted on behalf of a defendant in Whereas this shipment is part of about 2.1 processes by which tobacco products any of the matters set forth in paragraphs (1) million metric tons of European feed barley are manufactured, marketed, and dis- through (9) of this subsection; or that have been approved for restitution sub- tributed, to prevent the use of tobacco (11) who act at some future time on behalf sidies by the European Union this year; products by minors, to redress the ad- of a defendant in any of the matters set forth Whereas the availability of the additional verse health effects of tobacco use, and in paragraphs (1) through (9) of this sub- subsidized European barley in the inter- for other purposes; as follows: section. national market not only artificially de- (d) REPORT.— pressed market prices, but also threatens to At the appropriate place, insert the follow- ing: (1) Each attorney whose fees for services open new import channels into the United already rendered are subject to subsection Sec. . Limit on Attorney’s Fees. States; (a) shall, within 60 days of the date of the en- (a) FEE ARRANGEMENTS.—Subsection (f) Whereas, as the world’s largest feed grain actment of this Act, submit to Committees shall apply to attorneys’ fees provided for or producer and the world’s largest exporter of on the Judiciary of the House of Representa- in connection with an action of the type de- feed grains, the United States does not re- tives and the Senate a comprehensive record scribed in such subsection under any— quire imported feed grains; of the time and expenses for which the fees (1) court order; Whereas, at the same time that subsidized are to be paid. Such record shall be subject (2) settlement agreement; European barley is being imported into the to section 1001(a) of title 18, United States (3) contingency fee arrangement; United States, some United States feed Code. grains are prevented from entering European (4) arbitration procedure; (2) Each attorney whose fees for services markets under European Union food regula- (5) alternative dispute resolution proce- rendered in the future are subject to sub- tions; dure (including mediation); section (a) shall, within 60 days of the com- Whereas United States barley growers con- (6) retainer agreements; or pletion of the attorney’s services, submit to tinue to suffer the negative impacts of the (7) other arrangement providing for the Committees on the Judiciary of the House of sale, regardless of whether the subsidized Eu- payment of attorneys’ fees. Representatives and the Senate a com- ropean barley was originally targeted for (b) REQUIREMENTS.—No award of attorneys’ prehensive record of the time and expenses sale into the United States and whether the fees under any action to which this Act ap- for which the fees are to be paid. Such record subsidies comply with the letter of current plies shall be made under this Act until the shall be subject to section 1001(a) of title 18, World Trade Organization export subsidy attorneys involved have— United States Code. rules; and (1) provided to the Congress a detailed time Whereas the sale not only undermines the accounting with respect to the work per- (e) SEVERABILITY.—If any provision of this intent and the spirit of free trade agree- formed in relation to the legal action in- section or the application of such provision ments and negotiations, it also moves away volved; and to any person or circumstance is held to be from the goals of level playing fields and (2) made public disclosure of the time ac- unconstitutional, the remainder of this sec- fairness in trade relationships: Now, there- counting under paragraph (1) and any fee ar- tion and the application of the provisions of fore, be it rangements entered into, or fee arrange- such to any person or circumstance shall not Resolved, ments made, with respect to the legal action be affected thereby. SECTION 1. SENSE OF SENATE ON EXPORT OF involved. (f) GENERAL LIMITATION.—Notwithstanding EUROPEAN BARLEY TO THE UNITED (c) APPLICATION.—This section shall apply any other provision of law, for each hour STATES. to fees paid or to be paid to attorneys under spent productively and at risk, separate from It is sense of the Senate that— any arrangement described in subsection the reimbursement of actual out-of-pocket (1) the European Union should— (a)— expenses as approved by the court in such ac- (A) take immediate steps to waive the pen- (1) who acted on behalf of a State or politi- tion, any attorneys’ fees or expenses paid to alty for failure to use restitution subsidies cal subdivision of a State in connection with attorneys for matters described in sub- for barley exported to the United States; and any past litigation of an action maintained section (c) shall not exceed $250 per hour.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00105 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5136 CONGRESSIONAL RECORD — SENATE May 19, 1998 KENNEDY (AND OTHERS) (3) CALCULATION OF TOBACCO PRODUCT MAN- most favorable annual payment terms of its AMENDMENT NO. 2422 UFACTURER’S SHARE OF ANNUAL PAYMENT.— written settlement agreements with those 25 The share of the annual payment appor- States. Mr. KENNEDY (for himself, Mr. LAU- tioned to a tobacco product manufacturer SEC. 403. ADJUSTMENTS. TENBERG, Mr. CONRAD, Mr. GRAHAM, Mr. shall be equal to that manufacturer’s share The applicable base amount under section WELLSTONE, and Mr. HARKIN) proposed of adjusted units, taking into account the 402(b) for a given calendar year shall be ad- an amendment to the bill, S. 1415, manufacturer’s total production of such justed as follows in determining the annual supra; as follows: units sold in the domestic market. A tobacco payment for that year: product manufacturer’s share of adjusted Beginning in section 402, strike subsection (1) IN GENERAL.—Beginning with the sixth units shall be determined as follows: (b) and all that follows through section 403(2) calendar year after the date of enactment of (A) UNITS.—A tobacco product manufactur- and insert the following: this Act, the adjusted applicable base er’s number of units shall be determined by amount under section 402(b)(4) is the amount (b) ANNUAL PAYMENTS.—Each calendar counting each— year beginning after the required payment of the annual payment made for the preced- (i) pack of 20 cigarettes as 1 adjusted unit; date under subsection (a)(3) the participating ing year increased by the greater of 3 percent (ii) 1.2 ounces of moist snuff as 0.75 ad- tobacco product manufacturers shall make or the annual increase in the CPI. justed unit; and total payments into the Fund for each cal- (2) CPI.—For purposes of subparagraph (A), (iii) 3 ounces of other smokeless tobacco endar year in the following applicable base the CPI for any calendar year is the average product as 0.35 adjusted units. amounts, subject to adjustment as provided of the Consumer Price Index for all-urban (B) DETERMINATION OF ADJUSTED UNITS.— in paragraph (4) and section 403: consumers published by the Department of Except as provided in subparagraph (C), a Labor. (1) For year 1—$14,400,000,000; smokeless tobacco product manufacturer’s (2) For year 2, an amount equal to the (3) ROUNDING.—If any increase determined number of adjusted units shall be determined under subparagraph (A) is not a multiple of product of $1.00 and the total number of under the following table: units of tobacco products that were sold in $1,000, the increase shall be rounded to the nearest multiple of $1,000. the United States in the previous year. For units: Each unit shall be treated as: (3) For year 3, an amount equal to the AMENDMENT NO. 2423 Not exceeding 150 million 70% of a unit Add at the end the following new sections: product of $1.50 and the total number of Exceeding 150 million 100% of a unit units of tobacco products that were sold in SEC. ll. CONGRESSIONAL STATEMENT OF POL- ICY. the United States in the previous year. (C) ADJUSTED UNITS DETERMINED ON TOTAL It is the sense of Congress that the Presi- (4) For year 4, and each subsequent year, DOMESTIC PRODUCTION.—For purposes of de- dent should make freedom of religion one of an amount equal to the amount paid in the termining a manufacturer’s number of ad- the major objectives of United States foreign prior year, multiplied by a ratio in which the justed units under subparagraph (B), a manu- policy with respect to China. As part of this numerator is the number of units of tobacco facturer’s total production of units, whether policy, the Department of State should raise products sold in the prior year and the de- intended for domestic consumption or ex- in every relevant bilateral and multilateral nominator is the number of units of tobacco port, shall be taken into account. products sold in the year before the prior forum the issue of individuals imprisoned, (D) SPECIAL RULE FOR LARGE MANUFACTUR- detained, confined, or otherwise harassed by year, adjusted in accordance with section ERS.—If a tobacco product manufacturer has 403. the Chinese Government on religious more than 200 million units under subpara- grounds. In its communications with the (c) PAYMENT SCHEDULE; RECONCILIATION.— graph (A), then that manufacturer’s number (1) ESTIMATED PAYMENTS.—Deposits toward Chinese Government, the Department of of adjusted units shall be equal to the total State should provide specific names of indi- the annual payment liability for each cal- number of units, and not determined under endar year under subsection (d)(2) shall be viduals of concern and request a complete subparagraph (B). and timely response from the Chinese Gov- made in 3 equal installments due on March (E) SMOKELESS EQUIVALENCY STUDY.—Not 1st, on June 1st, and on August 1st of each ernment regarding the individuals’ where- later than January 1, 2003, the Secretary abouts and condition, the charges against year. Each installment shall be equal to one- shall submit to the Congress a report detail- third of the estimated annual payment li- them, and sentence imposed. The goal of ing the extent to which youths are substitut- these official communications should be the ability for that calendar year. Deposits of in- ing smokeless tobacco products for ciga- stallments paid after the due date shall ac- expeditious release of all religious prisoners rettes. If the Secretary determines that sig- in China and Tibet and the end of the Chi- crue interest at the prime rate plus 10 per- nificant substitution is occurring, the Sec- cent per annum, as published in the Wall nese Government’s policy and practice of retary shall include in the report rec- harassing and repressing religious believers. Street Journal on the latest publication date ommendations to address substitution, in- ll on or before the payment date. SEC. . PROHIBITION ON USE OF FUNDS FOR cluding consideration of modification of the THE PARTICIPATION OF CERTAIN (2) RECONCILIATION.—If the liability for a provisions of subparagraph (A). CHINESE OFFICIALS IN CON- calendar year under subsection (d)(2) exceeds (e) COMPUTATIONS.—The determinations re- FERENCES, EXCHANGES, PRO- the deposits made during that calendar year, quired by subsection (d) shall be made and GRAMS, AND ACTIVITIES. the manufacturer shall pay the unpaid liabil- certified by the Secretary of Treasury. The (a) PROHIBITION.—Notwithstanding any ity on March 1st of the succeeding calendar parties shall promptly provide the Treasury other provision of law, for fiscal years after year, along with the first deposit for that Department with information sufficient for fiscal year 1997, no funds appropriated or succeeding year. If the deposits during a cal- it to make such determinations. otherwise made available for the Depart- endar year exceed the liability for the cal- (f) NONAPPLICATION TO CERTAIN MANUFAC- ment of State, the United States Informa- endar year under subsection (d)(2), the manu- TURERS.— tion Agency, and the United States Agency facturer shall subtract the amount of the ex- (1) EXEMPTION .—A manufacturer described for International Development may be used cess deposits from its deposit on March 1st of in paragraph (3) is exempt from the pay- for the purpose of providing travel expenses the succeeding calendar year. ments required by subsection (b). and per diem for the participation of nation- (d) APPORTIONMENT OF ANNUAL PAYMENT.— (2) LIMITATION.—Paragraph (1) applies only als of the People’s Republic of China de- (1) IN GENERAL.—Each tobacco product to assessments on cigarettes to the extent scribed in paragraphs (1) and (2) in con- manufacturer is liable for its share of the ap- that those cigarettes constitute less than 3 ferences, exchanges, programs, and activi- plicable base amount payment due each year percent of all cigarettes manufactured and ties: under subsection (b). The annual payment is distributed to consumers in any calendar (1) The head or political secretary of any of the obligation and responsibility of only year. the following Chinese Government-created those tobacco product manufacturers and (3) TOBACCO PRODUCT MANUFACTURERS TO or approved organizations: their affiliates that directly sell tobacco WHICH SUBSECTION APPLIES.—A tobacco prod- (A) The Chinese Buddhist Association. products in the domestic market to whole- uct manufacturer is described in this para- (B) The Chinese Catholic Patriotic Asso- salers, retailers, or consumers, their succes- graph if it— ciation. sors and assigns, and any subsequent fraudu- (A) resolved tobacco-related civil actions (C) The National Congress of Catholic Rep- lent transferee (but only to the extent of the with more than 25 States before January 1, resentatives. interest or obligation fraudulently trans- 1998, through written settlement agreements (D) The Chinese Catholic Bishops’ Con- ferred). signed by the attorneys general (or the ference. (2) DETERMINATION OF AMOUNT OF PAYMENT equivalent chief legal officer if there is no of- (E) The Chinese Protestant ‘‘Three Self’’ DUE.—Each tobacco product manufacturer is fice of attorney general) of those States; and Patriotic Movement. liable for its share of each installment in (B) provides to all other States, not later (F) The China Christian Council. proportion to its share of tobacco products than December 31, 1998, the opportunity to (G) The Chinese Taoist Association. sold in the domestic market for the calendar enter into written settlement agreements (H) The Chinese Islamic Association. year. One month after the end of the cal- that— (2) Any military or civilian official or em- endar year, the Secretary shall make a final (i) are substantially similar to the agree- ployee of the Government of the People’s Re- determination of each tobacco product man- ments entered into with those 25 States; and public of China who carried out or directed ufacturer’s applicable base amount payment (ii) provide the other States with annual the carrying out of any of the following poli- obligation. payment terms that are equivalent to the cies or practices:

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00106 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5137

(A) Formulating, drafting, or implement- (A) Although it is the stated position of AMENDMENT NO. 2425 ing repressive religious policies. the politburo of the Chinese Communist Add at the end the following new title: (B) Imprisoning, detaining, or harassing in- Party that forced abortion and forced steri- TITLE ll—OPPOSITION TO dividuals on religious grounds. lization have no role in the population con- CONCESSIONAL LOANS TO CHINA (C) Promoting or participating in policies trol program, in fact the Communist Chinese SEC. ll. SHORT TITLE. or practices which hinder religious activities Government encourages both forced abortion This title may be cited as the ‘‘Communist or the free expression of religious beliefs. and forced sterilization through a combina- China Subsidy Reduction Act of 1998’’. (b) CERTIFICATION.— tion of strictly enforced birth quotas and im- SEC. ll. FINDINGS. (1) Each Federal agency subject to the pro- munity for local population control officials Congress finds that— hibition of subsection (a) shall certify in who engage in coercion. Officials acknowl- (1) the People’s Republic of China has en- writing to the appropriate congressional edge that there have been instances of forced joyed ready access to international capital committees no later than 120 days after the abortions and sterilization, and no evidence through commercial loans, direct invest- date of enactment of this Act, and every 90 has been made available to suggest that the ment, sales of securities, bond sales, and for- days thereafter, that it did not pay, either perpetrators have been punished. eign aid; directly or through a contractor or grantee, (B) People’s Republic of China population (2) regarding international commercial for travel expenses or per diem of any na- control officials, in cooperation with em- lending, the People’s Republic of China had tional of the People’s Republic of China de- ployers and works unit officials, routinely $48,000,000,000 in loans outstanding from pri- scribed in subsection (a). monitor women’s menstrual cycles and sub- vate creditors in 1995; (2) Each certification under paragraph (1) ject women who conceive without govern- (3) regarding international direct invest- shall be supported by the following informa- ment authorization to extreme psychological ment, international direct investment in the tion: pressure, to harsh economic sanctions, in- People’s Republic of China from 1993 through (A) The name of each employee of any cluding unpayable fines and loss of employ- 1995 totaled $97,151,000,000, and in 1996 alone agency of the Government of the People’s ment, and often to physical force. totaled $47,000,000,000; Republic of China whose travel expenses or (C) Official sanctions for giving birth to (4) regarding investment in Chinese securi- per diem were paid by funds of the reporting unauthorized children include fines in ties, the aggregate value of outstanding Chi- agency of the United States Government. amounts several times larger than the per nese securities currently held by Chinese na- (B) The procedures employed by the report- capita annual incomes of residents of the tionals and foreign persons is $175,000,000,000, ing agency of the United States Government People’s Republic of China. In Fujian, for ex- and from 1993 through 1995 foreign persons to ascertain whether each individual under ample, the average fine is estimated to be invested $10,540,000,000 in Chinese stocks; subparagraph (A) did or did not participate twice a family’s gross annual income. Fami- (5) regarding investment in Chinese bonds, in activities described in subsection (a)(2). lies which cannot pay the fine may be sub- entities controlled by the Government of the (C) The reporting agency’s basis for con- ject to confiscation and destruction of their People’s Republic of China have issued 75 cluding that each individual under subpara- homes and personal property. bonds since 1988, including 36 dollar-denomi- graph (A) did not participate in such activi- (D) Especially harsh punishments have nated bond offerings valued at more than ties. been inflicted on those whose resistance is $6,700,000,000, and the total value of long- (c) DEFINITION OF APPROPRIATE CONGRES- motivated by religion. For example, accord- term Chinese bonds outstanding as of Janu- SIONAL COMMITTEES.—For purposes of this ing to a 1995 Amnesty International report, ary 1, 1996, was $11,709,000,000; section the term ‘‘appropriate congressional the Catholic inhabitants of 2 villages in (6) regarding international assistance, the committees’’ means the Committee on For- Hebei Province were subjected to population People’s Republic of China received almost eign Relations of the Senate and the Com- control under the slogan ‘‘better to have $1,000,000,000 in foreign aid grants and an ad- mittee on International Relations of the more graves than one more child’’. Enforce- ditional $1,566,000,000 in technical assistance House of Representatives. ment measures included torture, sexual grants from 1993 through 1995, and in 1995 re- SEC. ll. CERTAIN OFFICIALS OF THE PEOPLE’S abuse, and the detention of resisters’ rel- ceived $5,540,000,000 in bilateral assistance REPUBLIC OF CHINA INELIGIBLE TO atives as hostages. loans, including concessional aid, export RECEIVE VISAS AND EXCLUDED (E) Forced abortions in Communist China credits, and related assistance; and FROM ADMISSION. often have taken place in the very late (7) regarding international financial insti- (a) REQUIREMENT.—Notwithstanding any stages of pregnancy. tutions— other provision of law, any national of the (F) Since 1994 forced abortion and steriliza- (A) despite the People’s Republic of China’s People’s Republic of China described in sec- tion have been used in Communist China not access to international capital and world fi- ll tion (a)(2) (except the head of state, the only to regulate the number of children, but nancial markets, international financial in- head of government, and cabinet level min- also to eliminate those who are regarded as stitutions have annually provided it with isters) shall be ineligible to receive visas and defective in accordance with the official eu- more than $4,000,000,000 in loans in recent shall be excluded from admission into the genic policy known as the ‘‘Natal and Health years, amounting to almost a third of the United States. Care Law’’. loan commitments of the Asian Development (b) WAIVER.—The President may waive the Bank and 17.1 percent of the loan approvals requirement in subsection (a) with respect to SEC. ll. DENIAL OF ENTRY INTO THE UNITED STATES OF PERSONS IN THE PEO- by the International Bank for Reconstruc- an individual described in such subsection if tion and Development in 1995; and the President— PLE’S REPUBLIC OF CHINA EN- GAGED IN ENFORCEMENT OF (B) the People’s Republic of China borrows (1) determines that it is vital to the na- FORCED ABORTION POLICY. more from the International Bank for Recon- tional interest to do so; and struction and Development and the Asian (2) provides written notification to the ap- The Secretary of State may not issue any visa to, and the Attorney General may not Development Bank than any other country, propriate congressional committees (as de- and loan commitments from those institu- ll admit to the United States, any national of fined in section (c)) containing a jus- tions to the People’s Republic of China quad- tification for the waiver. the People’s Republic of China, including any official of the Communist Party or the rupled from $1,100,000,000 in 1985 to SEC. ll. SUNSET PROVISION. Government of the People’s Republic of $4,300,000,000 by 1995. Sections ll and ll shall cease to have China and its regional, local, and village au- SEC. ll. OPPOSITION OF UNITED STATES TO effect 4 years after the date of the enactment thorities (except the head of state, the head CONCESSIONAL LOANS TO THE PEO- of this Act. of government, and cabinet level ministers) PLE’S REPUBLIC OF CHINA. Title XV of the International Financial In- AMENDMENT NO. 2424 who the Secretary finds, based on credible stitutions Act (22 U.S.C. 262o–262o–1) is information, has been involved in the estab- Add at the end the following new title: amended by adding at the end the following: TITLE ll—FORCED ABORTIONS IN lishment or enforcement of population con- trol policies resulting in a woman being ‘‘SEC. 1503. OPPOSITION OF UNITED STATES TO CHINA CONCESSIONAL LOANS TO THE PEO- forced to undergo an abortion against her SEC. ll. SHORT TITLE. PLE’S REPUBLIC OF CHINA. free choice, or resulting in a man or woman ‘‘(a) IN GENERAL.—The Secretary of the This title may be cited as the ‘‘Forced being forced to undergo sterilization against Abortion Condemnation Act’’. Treasury shall instruct the United States his or her free choice. Executive Directors at each international fi- SEC. ll. FINDINGS. SEC. ll. WAIVER. nancial institution (as defined in section Congress makes the following findings: 1702(c)(2) of the International Financial In- (1) Forced abortion was rightly denounced The President may waive the requirement stitutions Act) to use the voice and vote of as a crime against humanity by the Nurem- contained in section ll with respect to a the United States to oppose the provision by berg War Crimes Tribunal. national of the People’s Republic of China if the institution of concessional loans to the (2) For over 15 years there have been fre- the President— People’s Republic of China, any citizen or quent and credible reports of forced abortion (1) determines that it is in the national in- national of the People’s Republic of China, and forced sterilization in connection with terest of the United States to do so; and or any entity established in the People’s Re- the population control policies of the Peo- (2) provides written notification to Con- public of China. ple’s Republic of China. These reports indi- gress containing a justification for the waiv- ‘‘(b) CONCESSIONAL LOANS DEFINED.—As cate the following: er. used in subsection (a), the term ‘concessional

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00107 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5138 CONGRESSIONAL RECORD — SENATE May 19, 1998

loans’ means loans with highly subsidized in- (10) Undertake to prevent harassment of AMENDMENT NO. 2426 terest rates, grace periods for repayment of 5 workers who, consistent with the United Na- Add at the end the following new titles: years or more, and maturities of 20 years or tions World Population Plan of Action, de- ll more.’’. cide freely and responsibly the number and TITLE —MONITORING OF HUMAN RIGHTS ABUSES IN CHINA SEC. ll. PRINCIPLES THAT SHOULD BE AD- spacing of their children; and prohibit com- HERED TO BY ANY UNITED STATES pulsory population control activities on the SEC. ll. SHORT TITLE. NATIONAL CONDUCTING AN INDUS- premises of the industrial cooperation This title may be cited as the ‘‘Political TRIAL COOPERATION PROJECT IN project. Freedom in China Act of 1998’’. THE PEOPLE’S REPUBLIC OF CHINA. (c) PROMOTION OF PRINCIPLES BY OTHER NA- ll (a) PURPOSE.—It is the purpose of this sec- SEC. . FINDINGS. TIONS.—The Secretary of State shall forward Congress makes the following findings: tion to create principles governing the con- a copy of the principles set forth in sub- duct of industrial cooperation projects of (1) Congress concurs in the following con- section (b) to the member nations of the Or- clusions of the United States State Depart- United States nationals in the People’s Re- ganization for Economic Cooperation and ment on human rights in the People’s Repub- public of China. Development and encourage them to pro- (b) STATEMENT OF PRINCIPLES.—It is the lic of China in 1996: mote principles similar to these principles. (A) The People’s Republic of China is ‘‘an sense of Congress that any United States na- (d) REGISTRATION REQUIREMENT.— tional conducting an industrial cooperation authoritarian state’’ in which ‘‘citizens lack (1) IN GENERAL.—Each United States na- project in the People’s Republic of China tional conducting an industrial cooperation the freedom to peacefully express opposition should: project in the People’s Republic of China to the party-led political system and the (1) Suspend the use of any goods, wares, ar- shall register with the Secretary of State right to change their national leaders or ticles, or merchandise that the United States and indicate that the United States national form of government’’. national has reason to believe were mined, agrees to implement the principles set forth (B) The Government of the People’s Repub- produced, or manufactured, in whole or in in subsection (b). No fee shall be required for lic of China has ‘‘continued to commit wide- part, by convict labor or forced labor, and registration under this subsection. spread and well-documented human rights refuse to use forced labor in the industrial abuses, in violation of internationally ac- (2) PREFERENCE FOR PARTICIPATION IN cooperation project. cepted norms, stemming from the authori- TRADE MISSIONS.—The Secretary of Com- (2) Seek to ensure that political or reli- merce shall consult the register prior to the ties’ intolerance of dissent, fear of unrest, gious views, sex, ethnic or national back- selection of private sector participants in and the absence or inadequacy of laws pro- ground, involvement in political activities or any form of trade mission to China, and un- tecting basic freedoms’’. nonviolent demonstrations, or association dertake to involve those United States na- (C) ‘‘[a]buses include torture and mistreat- with suspected or known dissidents will not tionals that have registered their adoption of ment of prisoners, forced confessions, and ar- prohibit hiring, lead to harassment, demo- the principles set forth above. bitrary and incommunicado detention’’. tion, or dismissal, or in any way affect the (e) DEFINITIONS.—As used in this section— (D) ‘‘[p]rison conditions remained harsh status or terms of employment in the indus- (1) the term ‘‘industrial cooperation [and] [t]he Government continued severe re- trial cooperation project. The United States project’’ refers to a for-profit activity the strictions on freedom of speech, the press, national should not discriminate in terms or business operations of which employ more assembly, association, religion, privacy, and conditions of employment in the industrial than 25 individuals or have assets greater worker rights’’. cooperation project against persons with than $25,000; and (E) ‘‘[a]lthough the Government denies past records of arrest or internal exile for (2) the term ‘‘United States national’’ that it holds political prisoners, the number nonviolent protest or membership in unoffi- means— of persons detained or serving sentences for cial organizations committed to non- (A) a citizen or national of the United ‘counterrevolutionary crimes’ or ‘crimes violence. States or a permanent resident of the United against the state’, or for peaceful political or (3) Ensure that methods of production used States; and religious activities are believed to number in in the industrial cooperation project do not (B) a corporation, partnership, or other the thousands’’. pose an unnecessary physical danger to business association organized under the (F) ‘‘[n]onapproved religious groups, in- workers and neighboring populations or laws of the United States, any State or terri- cluding Protestant and Catholic groups * * * property, and that the industrial cooperation tory thereof, the District of Columbia, the experienced intensified repression’’. project does not unnecessarily risk harm to Commonwealth of Puerto Rico, or the Com- (G) ‘‘[s]erious human rights abuses persist the surrounding environment; and consult monwealth of the Northern Mariana Islands. in minority areas, including Tibet, Xinjiang, with community leaders regarding environ- SEC. ll. PROMOTION OF EDUCATIONAL, CUL- and Inner Mongolia[, and] [c]ontrols on reli- mental protection with respect to the indus- TURAL, SCIENTIFIC, AGRICULTURAL, gion and on other fundamental freedoms in trial cooperation project. MILITARY, LEGAL, POLITICAL, AND these areas have also intensified’’. (4) Strive to establish a private business ARTISTIC EXCHANGES BETWEEN (H) ‘‘[o]verall in 1996, the authorities enterprise when involved in an industrial co- THE UNITED STATES AND CHINA. stepped up efforts to cut off expressions of operation project with the Government of (a) EXCHANGES BETWEEN THE UNITED protest or criticism. All public dissent the People’s Republic of China or other state STATES AND CHINA.—Agencies of the United against the party and government was effec- entity. States Government which engage in edu- tively silenced by intimidation, exile, the (5) Discourage any Chinese military pres- cational, cultural, scientific, agricultural, imposition of prison terms, administrative ence on the premises of any industrial co- military, legal, political, and artistic ex- detention, or house arrest. No dissidents operation projects which involve dual-use changes shall endeavor to initiate or expand were known to be active at year’s end.’’. technologies. such exchange programs with regard to (2) In addition to the State Department, (6) Undertake to promote freedom of asso- China. credible independent human rights organiza- ciation and assembly among the employees (b) SENSE OF CONGRESS.—It is the sense of tions have documented an increase in repres- Congress that a federally chartered not-for- of the United States national. The United sion in China during 1995, and effective de- profit organization should be established to States national should protest any infringe- struction of the dissident movement through fund exchanges between the United States ment by the Government of the People’s Re- the arrest and sentencing of the few remain- and China through private donations. public of China of these freedoms to the ing pro-democracy and human rights activ- International Labor Organization’s office in f ists not already in prison or exile. Beijing. NATIONAL DEFENSE AUTHORIZA- (3) Among those were Wang Dan, a student (7) Provide the Department of State with TION ACT FOR FISCAL YEAR 1999 leader of the 1989 pro-democracy protests, information relevant to the Department’s ef- sentenced on October 30, 1996, to 11 years in forts to collect information on prisoners for prison on charges of conspiring to subvert the purposes of the Prisoner Information HUTCHINSON AMENDMENTS NOS. the government; Li Hai, sentenced to 9 years Registry, and for other purposes. in prison on December 18, 1996, for gathering (8) Discourage or undertake to prevent 2423–2426 information on the victims of the 1989 crack- compulsory political indoctrination pro- (Ordered to lie on the table.) down, which according to the court’s verdict grams from taking place on the premises of Mr. HUTCHINSON submitted four constituted ‘‘state secrets’’; Liu Nianchun, the industrial cooperation project. amendments intended to be proposed an independent labor organizer, sentenced to (9) Promote freedom of expression, includ- by him to the bill (S. 2057) to authorize 3 years of ‘‘re-education through labor’’ on ing the freedom to seek, receive, and impart appropriations for the fiscal year 1999 July 4, 1996, due to his activities in connec- information and ideas of all kinds, regardless for military activities of the Depart- tion with a petition campaign calling for of frontiers, either orally, in writing or in ment of Defense, for military construc- human rights reforms; and Ngodrup print, in the form of art, or through any Phuntsog, a Tibetan national, who was ar- media. To this end, the United States na- tion, and for defense activities of the rested in Tibet in 1987 immediately after he tional should raise with appropriate authori- Department of Energy, to prescribe returned from a 2-year trip to India, where ties of the Government of the People’s Re- personnel strengths for such fiscal year the Tibetan government in exile is located, public of China concerns about restrictions for the Armed Forces, and for other and following a secret trial was convicted by on the free flow of information. purposes; as follows: the Government of the People’s Republic of

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00108 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5139 China of espionage on behalf of the ‘‘Min- use funds available in the East Asia-Pacific TITLE ll—AGREEMENT ON NUCLEAR istry of Security of the Dalai clique’’. Regional Democracy Fund to provide grants COOPERATION (4) Many political prisoners are suffering to nongovernmental organizations to pro- SEC. ll. AMENDMENT TO JOINT RESOLUTION from poor conditions and ill-treatment lead- mote democracy, civil society, and the devel- RELATING TO AGREEMENT FOR NU- ing to serious medical and health problems, opment of the rule of law in China. CLEAR COOPERATION. including— The joint resolution entitled ‘‘Joint Reso- SEC. ll. HUMAN RIGHTS IN CHINA. (A) Wei Jingsheng, sentenced to 14 years in lution relating to the approval and imple- prison on December 13, 1996, for conspiring to (a) REPORTS.—Not later than March 30, mentation of the proposed agreement for nu- subvert the government and for ‘‘commu- 1998, and each subsequent year thereafter, clear cooperation between the United States nication with hostile foreign organizations the Secretary of State shall submit to the and the People’s Republic of China (Public and individuals, amassing funds in prepara- International Relations Committee of the Law 99–183; approved December 16, 1985) is tion for overthrowing the government and House of Representatives and the Foreign amended— publishing anti-government articles Relations Committee of the Senate an an- (1) in subsection (b)— abroad,’’ is currently held in Jile No. 1 Pris- nual report on human rights in China, in- (A) by inserting ‘‘and subject to section 2,’’ on (formerly the Nanpu New Life Salt Farm) cluding religious persecution, the develop- after ‘‘or any international agreement,’’; and in Hebei province, where he reportedly suf- ment of democratic institutions, and the (B) in paragraph (1) by striking ‘‘thirty’’ fers from severe high blood pressure and a rule of law. Reports shall provide informa- and inserting ‘‘120’’; and heart condition, worsened by poor conditions tion on each region of China. (2) by adding at the end the following: ‘‘SEC. 2. (a) ACTION BY CONGRESS TO DIS- of confinement; (b) PRISONER INFORMATION REGISTRY.—The APPROVE CERTIFICATION.—No license may be (B) Gao Yu, a journalist sentenced to 6 Secretary of State shall establish a Prisoner issued for the export to the People’s Repub- years in prison in November 1994 and hon- Information Registry for China which shall lic of China of any nuclear material, facili- ored by UNESCO in May 1997, has a heart provide information on all political pris- ties, or components subject to the Agree- oners, prisoners of conscience, and prisoners condition; and ment, and no approval for the transfer or re- of faith in China. Such information shall in- (C) Chen Longde, a leading human rights transfer to the People’s Republic of China of advocate now serving a 3-year reeducation clude the charges, judicial processes, admin- any nuclear material, facilities, or compo- through labor sentence imposed without istrative actions, use of forced labor, nents subject to the Agreement shall be trial in August 1995, has reportedly been sub- incidences of torture, length of imprison- given if, during the 120-day period referred to ject to repeated beatings and electric shocks ment, physical and health conditions, and in subsection (b)(1) of the first section, there at a labor camp for refusing to confess his other matters related to the incarceration of is enacted a joint resolution described in guilt. such prisoners in China. The Secretary of subsection (b) of this section. (5) The People’s Republic of China, as a State is authorized to make funds available ‘‘(b) DESCRIPTION OF JOINT RESOLUTION.—A member of the United Nations, is expected to to nongovernmental organizations presently joint resolution is described in this sub- abide by the provisions of the Universal Dec- engaged in monitoring activities regarding section if it is a joint resolution which has a laration of Human Rights. Chinese political prisoners to assist in the provision disapproving the President’s cer- (6) The People’s Republic of China is a creation and maintenance of the registry. tification under subsection (b)(1), or a provi- party to numerous international human SEC. ll. SENSE OF CONGRESS CONCERNING ES- sion or provisions modifying the manner in rights conventions, including the Convention TABLISHMENT OF A COMMISSION which the Agreement is implemented, or Against Torture and Other Cruel, Inhuman ON SECURITY AND COOPERATION IN both. or Degrading Treatment or Punishment. ASIA. ‘‘(c) PROCEDURES FOR CONSIDERATION OF JOINT RESOLUTIONS.— SEC. ll. CONDUCT OF FOREIGN RELATIONS. It is the sense of Congress that Congress, ‘‘(1) REFERENCE TO COMMITTEES.—Joint res- (a) RELEASE OF PRISONERS.—The Secretary the President, and the Secretary of State olutions— of State, in all official meetings with the should work with the governments of other ‘‘(A) may be introduced in either House of Government of the People’s Republic of countries to establish a Commission on Se- Congress by any Member of such House; and China, should request the immediate and un- curity and Cooperation in Asia which would ‘‘(B) shall be referred, in the House of Rep- conditional release of Ngodrup Phuntsog and be modeled after the Commission on Secu- resentatives, to the Committee on Inter- other prisoners of conscience in Tibet, as rity and Cooperation in Europe. well as in the People’s Republic of China. national Relations and, in the Senate, to the (b) ACCESS TO PRISONS.—The Secretary of SEC. ll. SENSE OF CONGRESS REGARDING DE- Committee on Foreign Relations. State should seek access for international MOCRACY IN HONG KONG. It shall be in order to amend such joint reso- humanitarian organizations to Drapchi pris- It is the sense of Congress that the people lutions in the committees to which they are on and other prisons in Tibet, as well as in of Hong Kong should continue to have the referred. the People’s Republic of China, to ensure right and ability to freely elect their legisla- ‘‘(2) FLOOR CONSIDERATION.—(A) The provi- that prisoners are not being mistreated and tive representatives, and that the procedure sions of section 152(d) and (e) of the Trade are receiving necessary medical treatment. for the conduct of the elections of the first Act of 1974 (19 U.S.C. 2192(d) and (e)) (relating (c) DIALOGUE ON FUTURE OF TIBET.—The legislature of the Hong Kong Special Admin- to the floor consideration of certain resolu- Secretary of State, in all official meetings istrative Region should be determined by the tions in the House and Senate) apply to joint with the Government of the People’s Repub- people of Hong Kong through an election law resolutions described in subsection (b). lic of China, should call on that country to convention, a referendum, or both. ‘‘(B) It is not in order for— begin serious discussions with the Dalai ll ‘‘(i) the House of Representatives to con- Lama or his representatives, without pre- SEC. . SENSE OF CONGRESS RELATING TO ORGAN HARVESTING AND TRANS- sider any joint resolution described in sub- conditions, on the future of Tibet. PLANTING IN THE PEOPLE’S REPUB- section (b) that has not been reported by the SEC. ll. AUTHORIZATION OF APPROPRIATIONS LIC OF CHINA. Committee on International Relations; and FOR ADDITIONAL PERSONNEL AT ‘‘(ii) the Senate to consider any joint reso- DIPLOMATIC POSTS TO MONITOR It is the sense of Congress that— (1) the Government of the People’s Repub- lution described in subsection (b) that has HUMAN RIGHTS IN THE PEOPLE’S not been reported by the Committee on For- lic of China should stop the practice of har- REPUBLIC OF CHINA. eign Relations. There are authorized to be appropriated to vesting and transplanting organs for profit ‘‘(c) CONSIDERATION OF SECOND RESOLUTION from prisoners that it executes; support personnel to monitor political re- NOT IN ORDER.—It shall not be in order in ei- pression in the People’s Republic of China in (2) the Government of the People’s Repub- ther the House of Representatives or the the United States Embassies in Beijing and lic of China should be strongly condemned Senate to consider a joint resolution de- Kathmandu, as well as the American con- for such organ harvesting and transplanting scribed in subsection (b) (other than a joint sulates in Guangzhou, Shanghai, Shenyang, practice; resolution described in subsection (b) re- Chengdu, and Hong Kong, $2,200,000 for fiscal (3) the President should bar from entry ceived from the other House), if that House year 1998 and $2,200,000 for fiscal year 1999. into the United States any and all officials has previously adopted such a joint resolu- SEC. ll. DEMOCRACY BUILDING IN CHINA. of the Government of the People’s Republic tion. (a) AUTHORIZATION OF APPROPRIATIONS FOR of China known to be directly involved in ‘‘(d) PROCEDURES RELATING TO CONFERENCE NED.—In addition to such sums as are other- such organ harvesting and transplanting REPORTS IN THE SENATE.— wise authorized to be appropriated for the practice; ‘‘(1) CONSIDERATION.—Consideration in the ‘‘National Endowment for Democracy’’ for (4) individuals determined to be participat- Senate of the conference report on any joint fiscal years 1998 and 1999, there are author- ing in or otherwise facilitating the sale of resolution described in subsection (b), in- ized to be appropriated for the ‘‘National En- such organs in the United States should be cluding consideration of all amendments in dowment for Democracy’’ $5,000,000 for fiscal prosecuted to the fullest possible extent of disagreement (and all amendments thereto), year 1998 and $5,000,000 for fiscal year 1999, the law; and and consideration of all debatable motions which shall be available to promote democ- (5) the appropriate officials in the United and appeals in connection therewith, shall be racy, civil society, and the development of States should interview individuals, includ- limited to 10 hours, to be equally divided be- the rule of law in China. ing doctors, who may have knowledge of tween, and controlled by, the majority lead- (b) EAST ASIA-PACIFIC REGIONAL DEMOC- such organ harvesting and transplanting er and the minority leader or their des- RACY FUND.—The Secretary of State shall practice. ignees. Debate on any debatable motion or

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00109 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5140 CONGRESSIONAL RECORD — SENATE May 19, 1998

appeal related to the conference report shall tals of the budget of the United States Gov- ‘‘(i) COMMUNITY-BASED ACTIVITIES OF TO- be limited to 1 hour, to be equally divided be- ernment as submitted by the President or of BACCO SCHOLARS.— tween, and controlled by, the mover and the the congressional budget and shall be exempt ‘‘(1) IN GENERAL.—Of the sums made avail- manager of the conference report. from any general budget limitation imposed able to the National Institutes of Health ‘‘(2) DEBATE ON AMENDMENTS IN DISAGREE- by statute on expenditures and net lending under this section, the Director shall make MENT.—In any case in which there are (budget outlays) of the United States Gov- available a portion of such sums to support amendments in disagreement, time on each ernment. the community-based activities of the to- amendment shall be limited to 30 minutes, to (f) ADMINISTRATIVE PROVISIONS.—Section bacco scholars assigned to States in accord- be equally divided between, and controlled 9602 of the Internal Revenue Code of 1986 ance with paragraph (2). by, the manager of the conference report and shall apply to the trust fund to the same ex- ‘‘(2) TOBACCO SCHOLARS.—The Director of the minority leader or his designee. No tent as if it were established by subchapter A the National Institutes of Health shall— amendment to any amendment in disagree- of chapter 95 of such Code. ‘‘(A) designate individuals to serve as to- ment shall be received unless it is a germane SEC. 402. STATE LITIGATION SETTLEMENT AC- bacco scholars from among individuals who amendment. COUNT. receive funding through the National Insti- ‘‘(3) CONSIDERATION OF VETO MESSAGE.— (a) IN GENERAL.—There is established with- tutes of Health for tobacco-related research; Consideration in the Senate of any veto mes- in the trust fund a separate account, to be and sage with respect to a joint resolution de- known as the State Litigation Settlement ‘‘(B) assign a tobacco scholar to each scribed in subsection (b), including consider- Account. State. ation of all debatable motions and appeals in (b) TRANSFERS TO ACCOUNT.—From ‘‘(3) COMMUNITY-BASED ACTIVITIES.—For connection therewith, shall be limited to 10 amounts received by the trust fund under purposes of paragraph (1), the term ‘commu- hours, to be equally divided between, and section 403, the State Litigation Settlement nity-based activities’ includes— controlled by, the majority leader and the Account shall be credited with all settlement ‘‘(A) public forums for sharing research by minority leader or their designees.’’. payments designated for allocation, without tobacco scholars and other tobacco-related f further appropriation, among the several research with the medical community within States. States; and NATIONAL TOBACCO POLICY AND (c) REIMBURSEMENT FOR STATE EXPENDI- ‘‘(B) dissemination of information to the YOUTH SMOKING REDUCTION ACT TURES.— public on tobacco-related research and the (1) PAYMENT.—Amounts credited to the ac- health-related implications of the conclu- count are available, without further appro- sions of such research through means such as ASHCROFT AMENDMENT NO. 2427 priation, in each fiscal year to provide funds public forums, public service announce- to each State to reimburse such State for ments, advertisements, and television broad- Mr. ASCHCROFT proposed an amend- amounts expended by the State for the treat- casts. ment to amendment No. 2422 proposed ment of individuals with tobacco-related ill- by Mr. KENNEDY to the bill, S. 1415, nesses or conditions. KERREY (AND KENNEDY) (2) AMOUNT.—The amount for which a supra; as follows: AMENDMENT NO. 2430 In lieu of the language proposed to be in- State is eligible for under subparagraph (A) serted, insert the following: for a fiscal year shall be based on the Master (1) Amounts equivalent to penalties paid Settlement Agreement and its ancillary doc- Mr. KERREY (for himself and Mr. uments in accordance with such agreements under section 202, including interest thereon. KENNEDY) submitted an amendment in- thereunder as may be entered into after the (c) REPAYABLE ADVANCES.— date of enactment of this Act by the gov- tended to be proposed by them to the (1) AUTHORIZATION.—There are authorized bill, S. 1415, supra; as follows: to be appropriated to the trust fund, as re- ernors of the several States. SE OF FUNDS.—A State may use At the end of title XI, add the following: payable advances, such sums as may from (3) U amounts received under this subsection as SEC. ll. PROGRAM OF PAYMENTS TO CHIL- time to time be necessary to make the ex- the State determines appropriate. DREN’S HOSPITALS THAT OPERATE penditures authorized by this Act. GRADUATE MEDICAL EDUCATION (4) FUNDS NOT AVAILABLE AS MEDICAID REIM- (2) REPAYMENT WITH INTEREST.—Repayable PROGRAMS. BURSEMENT.—Funds in the account shall not advances made to the trust fund shall be re- (a) PAYMENTS.— be available to the Secretary as reimburse- paid, and interest on such advances shall be (1) IN GENERAL.—The Secretary shall make ment of Medicaid expenditures or considered paid, to the general fund of the Treasury payments under this section to each chil- as Medicaid overpayments for purposes of when the Secretary of the Treasury deter- dren’s hospital for each hospital cost report- recoupment. mines that moneys are available in the trust ing period beginning after fiscal year 1998 (d) PAYMENTS TO BE TRANSFERRED fund for such purposes. and before fiscal year 2003 for the direct and PROMPTLY TO STATES.—The Secretary of the (3) RATE OF INTEREST.—Interest on ad- indirect expenses associated with operating Treasury shall transfer amounts available vances made under this subsection shall be approved medical residency training pro- under subsection (c) to each State as at a rate determined by the Secretary of the grams. amounts are credited to the State Litigation Treasury (as of the close of the calendar (2) CAPPED AMOUNT.—The payments to Settlement Account without undue delay. month preceding the month in which the ad- children’s hospitals established in this sub- ( ) PROVISIONS RELATING TO AMOUNTS IN vance is made) to be equal to the current av- section for cost reporting periods ending in a TRUST FUND.— erage market yield on outstanding market- (1) CERTAIN PROVISIONS NULL AND VOID.— fiscal year are limited to the extent of funds able obligations of the United States with re- Notwithstanding any other provision of law, appropriated under subsection (d) for that maining period to maturity comparable to the following provisions of this Act shall be fiscal year. the anticipated period during which the ad- null and void and not given effect: (3) PRO RATA REDUCTIONS.—If the Secretary vance will be outstanding. (B) Sections 402 through 406. determines that the amount of funds appro- (d) EXPENDITURES FROM TRUST FUND.— priated under subsection (d) for cost report- Amounts in the trust fund shall be available ing periods ending in a fiscal year is insuffi- in each calendar year, as provided by appro- KERREY AMENDMENTS NOS. 2428– cient to provide the total amount of pay- priations Acts, except that distributions to 2429 ments otherwise due for such periods, the the States from amounts credited to the (Ordered to lie on the table.) Secretary shall reduce the amount payable State Litigation Settlement Account shall Mr. KERREY submitted two amend- under this section for such period on a pro not require further authorization or appro- ments intended to be proposed by him rata basis to reflect such shortfall. priation and shall be as provided in the Mas- to the bill, S. 1415, supra; as follows: (b) AMOUNT OF PAYMENT.— ter Settlement Agreement and this Act, and (1) IN GENERAL.—The amount payable not less than 15 percent of the amounts shall AMENDMENT NO. 2428 under this section to a children’s hospital for be expended, without further appropriation, At the end of subtitle C of title XI add the direct and indirect expenses relating to ap- notwithstanding any other provision of this following: proved medical residency training programs Act, from the trust fund for each fiscal year, SEC. ll. LIMITATION ON FUNDING OF PRO- for a cost reporting period is equal to the in the aggregate, for activities under this GRAMS AND ACTIVITIES. sum of— Act related to— Notwithstanding any other provision of (A) the product of— (1) the prevention of smoking; law, only amounts deposited into the Na- (i) the per resident rate for direct medical (2) education; tional Tobacco Trust Fund may used to fund education, as determined under paragraph (3) State, local, and private control of to- the programs and activities authorized under (2), for the cost reporting period; and bacco product use; and this Act. (ii) the weighted average number of full- (4) smoking cessation. time equivalent residents in the hospital’s (e) BUDGETARY TREATMENT OF TRUST FUND AMENDMENT NO. 2429 approved medical residency training pro- OPERATIONS.—The receipts and disburse- Section 1991D of the Public Health Service grams (as determined under section 1886(h)(4) ments of the National Tobacco Settlement Act, as added by section 221, is amended by of the Social Security Act) for the cost re- Trust Fund shall not be included in the to- inserting after subsection (g) the following: porting period; and

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00110 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5141 (B) the product of— the Social Security Act and shall be subject the fiscal and economic implications of (i) the per resident rate for indirect medi- to review under that section in the same Puerto Rico status. cal education, as determined under para- manner as the amount of payment under sec- The PRESIDING OFFICER. Without graph (3), for the cost reporting period; and tion 1886(d) is subject to review under such objection, it is so ordered. (ii) the number of full-time equivalent resi- section. dents in the hospital’s approved medical resi- (d) LIMITATION ON EXPENDITURES.— COMMITTEE ON FOREIGN RELATIONS dency training programs for the cost report- (1) IN GENERAL.—Subject to paragraph (2), Mr. MCCAIN. Mr. President, I ask ing period. there are hereby appropriated, out of any unanimous consent that the Commit- (2) PER RESIDENT RATE FOR DIRECT MEDICAL money in the Treasury not otherwise appro- tee on Foreign Relations be authorized EDUCATION.— priated, for payments under this section for to meet during the session of the Sen- (A) IN GENERAL.—The per resident rate for cost reporting periods beginning in— ate on Tuesday, May 19, 1998 at 2:30 direct medical education for a hospital for a (A) fiscal year 1999 $100,000,000; cost reporting period ending in or after fiscal p.m. to hold a Business Meeting. (B) fiscal year 2000, $285,000,000; The PRESIDING OFFICER. Without year 1999 is the updated rate determined (C) fiscal year 2001, $285,000,000; and under subparagraph (B), as adjusted for the (D) fiscal year 2002, $285,000,000. objection, it is so ordered. hospital under subparagraph (C). (2) CARRYOVER OF EXCESS.—If the amount COMMITTEE ON GOVERNMENTAL AFFAIRS (B) COMPUTATION OF UPDATED RATE.—The of payments under this section for cost re- Mr. MCCAIN. Mr. President, I ask Secretary shall— porting periods ending in fiscal year 1999, unanimous consent on behalf of the (i) compute a base national DME average 2000, or 2001 is less than the amount provided Governmental Affairs Committee to per resident rate equal to the average of the under this subsection for such payments for per resident rates computed under section meet on Tuesday, May 19, 1998, at 10:00 such periods, then the amount available a.m. for a hearing on ‘‘Government 1886(h)(2) of the Social Security Act for cost under this subsection for cost reporting peri- reporting periods ending during fiscal year ods ending in the following fiscal year shall Computer Security.’’ 1998; and be increased by the amount of such dif- The PRESIDING OFFICER. Without (ii) update such rate by the applicable per- ference. objection, it is so ordered. centage increase determined under section (e) RELATION TO MEDICARE AND MEDICAID COMMITTEE ON LABOR AND HUMAN RESOURCES 1886(b)(3)(B)(i) of such Act for the fiscal year PAYMENTS.—Notwithstanding any other pro- Mr. MCCAIN. Mr. President, I ask involved. vision of law, payments under this section to (C) ADJUSTMENT FOR VARIATIONS IN LABOR- unanimous consent that the Commit- a hospital for a cost reporting period— tee on Labor and Human Resources be RELATED COSTS.—The Secretary shall adjust (1) are in lieu of any amounts otherwise for each hospital the portion of such updated payable to the hospital under section 1886(h) authorized to meet for a hearing on rate that is related to labor and labor-relat- or 1886(d)(5)(B) of the Social Security Act to ‘‘Health Care Quality: Grievance Pro- ed costs to account for variations in wage the hospital for such cost reporting period, cedures’’ during the session of the Sen- costs in the geographic area in which the but ate on Tuesday, May 19, 1998, at 10:00 hospital is located using the factor deter- (2) shall not affect the amounts otherwise a.m. mined under section 1886(d)(3)(E) of the So- payable to such hospitals under a State med- The PRESIDING OFFICER. Without cial Security Act. icaid plan under title XIX of such Act. ER RESIDENT RATE FOR INDIRECT MEDI objection, it is so ordered. (3) P - (f) DEFINITIONS.—In this section: CAL EDUCATION.— SUBCOMMITTEE ON ANTITRUST, BUSINESS (1) APPROVED MEDICAL RESIDENCY TRAINING (A) IN GENERAL.—The per resident rate for RIGHTS AND COMPETITION PROGRAM.—The term ‘‘approved medical resi- indirect medical education for a hospital for dency training program’’ has the meaning Mr. MCCAIN. Mr. President, I ask a cost reporting period ending in or after fis- given such term in section 1886(h)(5)(A) of unanimous consent that the Sub- cal year 1999 is the updated amount deter- the Social Security Act (42 U.S.C. committee on Antitrust, Business mined under subparagraph (B). 1395ww(h)(5)(A)). Rights, and Competition, of the Senate (B) COMPUTATION OF UPDATED AMOUNT.— (2) CHILDREN’S HOSPITAL.—The term ‘‘chil- The Secretary shall— Judiciary Committee, be authorized to dren’s hospital’’ means a hospital described (i) determine, for each hospital with a meet during the session of the Senate in section 1886(d)(1)(B)(iii) of the Social Se- graduate medical education program which on Tuesday, May 19, 1998 at 10:00 a.m. curity Act (42 U.S.C. 1395ww(d)(1)(B)(iii)). is paid under section 1886(d) of the Social Se- to hold a hearing in room 226, Senate (3) DIRECT GRADUATE MEDICAL EDUCATION curity Act, the amount paid to that hospital COSTS.—The term ‘‘direct graduate medical Dirksen Building, on ‘‘Consolidation in pursuant to section 1886(d)(5)(B) of such Act education costs’’ has the meaning given such the Telephone Industry: Good or Bad for the equivalent of a full twelve-month term in section 1886(h)(5)(C) of the Social Se- for Consumers?’’ cost reporting period ending during the pre- curity Act (42 U.S.C. 1395ww(h)(5)(C)). ceding fiscal year and divide such amount by The PRESIDING OFFICER. Without (4) SECRETARY.—The term ‘‘Secretary’’ the number of full-time equivalent residents objection, it is so ordered. means the Secretary of Health and Human participating in its approved residency pro- SUBCOMMITTEE ON ADMINISTRATIVE OVERSIGHT Services. grams and used to calculate the amount of AND THE COURTS payment under such section in that cost re- f Mr. MCCAIN. Mr. President, I ask porting period; AUTHORITY FOR COMMITTEES TO unanimous consent that the Sub- (ii) take the sum of the amounts deter- MEET committee on Administrative Over- mined under clause (i) for all the hospitals sight and the Courts, of the Senate Ju- described in such clause and divide that sum COMMITTEE ON COMMERCE, SCIENCE, AND diciary Committee, be authorized to by the number of hospitals so described; and TRANSPORTATION meet during the session of the Senate (iii) update the amount computed under Mr. MCCAIN. Mr. President, I ask clause (ii) for a hospital by the applicable unanimous consent that the Commu- on Tuesday, May 19, 1998 at 2:30 p.m. to percentage increase determined under sec- nications Subcommittee of the Senate hold a hearing in room 226, Senate tion 1886(b)(3)(B)(i) of such Act for the fiscal Dirksen Building, on: ‘‘S. 1914, The year involved. Committee on Commerce, Science, and Transportation be authorized to meet Business Bankruptcy Reform Act: (c) MAKING OF PAYMENTS.— Business Bankruptcy Issues in Re- (1) INTERIM PAYMENTS.—The Secretary on Tuesday, May 19, 1998, at 9:30 a.m. view.’’ shall estimate, before the beginning of each on Oversight of the Wireless Bureau of The PRESIDING OFFICER. Without cost reporting period for a hospital for which the Federal Communications Commis- objection, it is so ordered. a payment may be made under this section, sion. the amount of the payment to be made under The PRESIDING OFFICER. Without f this section to the hospital for such period and shall pay such amount in 26 equal in- objection, it is so ordered. ADDITIONAL STATEMENTS terim installments during such period. COMMITTEE ON ENERGY AND NATURAL (2) FINAL PAYMENT.—At the end of each RESOURCES such period, the hospital shall submit to the Mr. MCCAIN. Mr. President, I ask NATO WRAP UP Secretary such information as the Secretary unanimous consent that the Commit- ∑ Mr. BINGAMAN. Mr. President, I determines to be necessary to determine the tee on Energy and Natural Resources joined the majority of my Senate col- final payment amount due under this section be granted permission to meet during leagues in voting overwhelmingly in for the hospital for the period. Based on such the session of the Senate on Tuesday, favor of the resolution approving the determination, the Secretary shall recoup any overpayments made, or pay any balance May 19, for purposes of conducting a accession to NATO of Poland, Hungary, due. The final amount so determined shall be full committee hearing which is sched- and the Czech Republic. I believe that considered a final intermediary determina- uled to begin at 9:30 a.m. The purpose these three countries have made re- tion for purposes of applying section 1878 of of this oversight hearing is to consider markable progress in establishing

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00111 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5142 CONGRESSIONAL RECORD — SENATE May 19, 1998 democratic institutions and undertak- yet to be explained how the expansion testament to the strong leadership of ing fundamental economic reforms. In of a military alliance, formed during the team’s coach, Judy Woodring. addition, for the United States to the height of the Cold War to defend its Mr. President, Western Kentucky refuse their admission into NATO at members’ territory from external at- University’s debate team is building this stage would undermine U.S. lead- tack, serves our needs in today’s quite a tradition. I offer my congratu- ership both in the Atlantic Alliance changed security environment. The lations to Coach Woodring and to all and globally. threats we face today require careful the members of the Bivin Forensics So- However, my support for the admis- consideration of a full range of op- ciety for another great year. With two sion of Poland, Hungary, and the Czech tions—whether NATO, the Partnership national championships in three years, Republic into NATO should not be in- for Peace initiative between NATO and I expect that we may be seeing the be- terpreted as a green light for further 28 countries of Europe and the former ginning of a dynasty in Bowling rounds of NATO enlargement. I believe Soviet Union, or other collective secu- Green.∑ that there is no mandate for further rity arrangements—to increase the se- f rounds of NATO enlargement. As the curity and stability of all democratic MIGNON CLYBURN’S APPOINT- forty-one votes in support of the War- states. MENT TO THE SOUTH CAROLINA ner Amendment indicate, more than The Senate, as well, needs to turn its PUBLIC SERVICE COMMISSION enough Senators are concerned about attention to efforts that mutually en- moving too fast on NATO enlargement hance the security of the United ∑ Mr. HOLLINGS. Mr. President, I rise to block approval of the accession of States, its NATO allies, and the states today to congratulate Mignon Clyburn, any additional states to NATO in the of Eastern Europe, including Russia. daughter of U.S. Representative JAMES near-term. In addition, provisions of These include laying the groundwork CLYBURN, on her election to the South the NATO resolution makes clear that for Senate approval of the Comprehen- Carolina Public Service Commission. the Senate expects to be closely con- sive Test Ban Treaty, supporting the The PSC—which overseas electricity, sulted prior to any future negotiations elimination of Russian strategic arms gas, phone, water, and sewer rates—is on inviting other countries to join under the Cooperative Threat Reduc- crucial to safeguarding consumer NATO. tion program, and encouraging accel- rights for all the people of South Caro- lina. Its work will be especially impor- We must get answers to critical ques- eration of the START process to fur- tant and complex now that the tele- tions before we even begin to consider ther reduce Russian nuclear weapons. communications and utilities indus- whether additional countries should be In the long-run these initiatives offer tries have been deregulated. It is be- invited to join NATO. Before any fur- valuable alternatives to NATO enlarge- cause the work of the Public Service ther enlargement is contemplated, the ment for addressing the highest secu- Commission is so important that I am United States needs to know the costs rity concerns in today’s post-Cold War glad to see someone as capable and of the first several years of integrating security environment. ∑ dedicated as Mignon Clyburn appointed Poland, Hungary, and the Czech Repub- f lic into NATO, and the burden sharing to the Commission. arrangements for meeting those costs. TRIBUTE TO THE WILLIAM E. Public service flows in Mignon’s blood. Her father, the first black Rep- In addition, the Alliance must first BIVIN FORENSICS SOCIETY: 1998 resentative elected from South Caro- complete revising and updating its NATIONAL COLLEGIATE DEBATE lina since Reconstruction, served Strategic Concept, the statement of CHAMPIONS South Carolina for many years in var- NATO’s fundamental military mission. ∑ Mr. MCCONNELL. Mr. President, I ious community and state positions be- This will allow NATO members, and rise today to ask my colleagues to join fore entering the House of Representa- countries potentially seeking member- me in congratulating the William E. tives. ship, to judge for themselves whether Bivin Forensic Society—the debate Mignon has worked for over a decade further expansion strengthens—or un- team at Western Kentucky University, as the driving force behind The Coastal dermines—the Alliance’s ability to located in Bowling Green, Kentucky— Times newspaper. Her tireless work carry out its strategic mission. for their recent victories at the na- writing, editing, and marketing the I continue to have serious doubts tional collegiate debate champion- magazine has earned it well-deserved about the wisdom of any further en- ships. praise as one of the best community largement of NATO. In rushing to In mid-March, Western won the Delta papers in the Southeast. Mignon also bring the states of the former Warsaw Sigma Rho—Tau Kappa Alpha Lincoln- has served her community through ex- Pact and the former Soviet Union into Douglas Debate Championships at tensive volunteer work with the United the NATO military fold, we risk under- Miami University in Ohio. Two mem- Way and other organizations. mining our ability to work with Russia bers of the team, Mike McDonner and Mr. President, Mignon Clyburn will to reduce the most immediate threats Aaron Whaley—were co-national cham- make an excellent Commissioner. She to our security. In particular, I am pions in the individual competition. understands the importance of the concerned about the adverse impact Then, in April, Western also won at Public Service Commission for the peo- that the consideration of the Baltic the National Forensics Association ple of South Carolina. She said after states for NATO membership might tournament at Western Illinois Univer- accepting the position, ‘‘I think this is have on on-going U.S.-Russian coopera- sity, defeating Ohio State University the most significant agency . . . in the tive initiatives. These initiatives ad- by a 5–0 decision. Mike McDonner state. What’s more vital or fundamen- dress some of our highest security con- again captured the individual title, and tal than your utilities?’’ cerns, including the containment of the teammate Kerri Richardson was a Mignon Clyburn will make a wonder- proliferation of nuclear, chemical, and semifinalist. In addition, Kristin ful Public Service Commissioner. She biological technology and materials, Pamperin and Doug Morey were quar- is an intelligent, hard working, and and achieving mutual reductions in terfinalists. Other varsity members of committed to improving the life of strategic nuclear forces. With regard to the victorious Western Kentucky team every South Carolinian. I am confident the Baltics, I draw the attention of my were Amanda Gibson and Aaron she will be a dedicated and effective colleagues to a colloquy between Sen. Whaley. Novice debaters Mitchell Bai- guardian of South Carolina consum- BIDEN and myself recorded in the CON- ley, Jennifer Cloyd and Brian Sisk also ers.∑ GRESSIONAL RECORD of April 30th, on contributed to the team title. f page S3888. This colloquy clarifies that These two debates comprise the na- the United States has not pre-commit- tional championships in college debat- NATIONAL ASSOCIATION OF ted, either in the U.S.-Baltic Charter of ing circles, and it is extremely rare LETTER CARRIERS FOOD DRIVE Partnership or elsewhere, to support that one team wins both events. Amaz- ∑ Mr. SANTORUM. Mr. President, I NATO membership for the Baltic ingly, this is second time in three rise today to discuss the importance of states. years that Western Kentucky has the National Association of Letter Car- I hope now we can put the distraction claimed both debates. The winning tra- riers Food Drive. The National Asso- of NATO enlargement behind us. It has dition being built in Bowling Green is a ciation of Letter Carriers Food Drive,

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00112 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5143 held in conjunction with the U.S. Post- volvement with this organization led do everything from milk cows to de- al Service and local United Way, is the to the United Way’s Labor Support liver products out of an old farmhouse largest one-day collection of food in Committee, which raised millions of in Wilton, helped the Stonyfield Farm the nation. Last year almost 5,000 dollars for charity. family to grow to its current 150 em- pounds were collected in Horsham, As a touch negotiator, a coalition ployees and 21,000-square-foot, custom- Pennsylvania while some 73 million builder, and someone who always got designed ‘‘Yogurt Works’’ in London- pounds were collected nationwide. the job done, George’s unrivaled union derry. Having been raised on a farm On Saturday, May 9, letter carriers leadership will never be forgotten. He myself, I can appreciate the hard work in Horsham and across the nation served as president of the AFL-CIO done by Gary and his partner over the reached out to help their neighbors Central Labor Union for 16 years, was a years. As Gary watched the company’s who fell on hard times by collecting member of the International Brother- distribution expand to all 50 States and nonperishable food donations along hood of Electrical Workers Local 1448, Great Britain and annual sales exceed their mail routes. Each year, their ef- and became the international rep- $40 million, he never lost sight of his forts help to restock the shelves of resentative of the International Union commitment to family-owned farms. local food pantries. Likewise, the dona- of Electrical Workers. Under Gary Hirshberg’s leadership, tions raided through this annual event George and I shared the conviction Stonyfield Farm continues to promote prepare charities for the overwhelming that educational opportunity is critical awareness of the plight of the small demand for food during the Thanks- to a robust and stable democracy. farm through such programs as ‘‘Adopt giving and Christmas holiday seasons. George’s dedication to providing edu- a Cow,’’ and to raise environmental Mr. President, I commend the letter cational opportunities to others led to consciousness through the company’s carriers, the men and women of the his creation of the Peter J. McGuire use of operationally efficient natural U.S. Postal Service, and the United Scholarship Program in conjunction resources and its sponsorship of recy- Way for making this collection pos- with the American Federation of cling programs. sible. On behalf of the United States Teachers. These scholarships, pre- As a former small business owner, I Senate, I would like to recognize the sented every year at New Jersey’s appreciate the challenges faced by dedication of these public servants and Labor Day celebration, benefit children small business owners and understand the generosity of the families who do- of Southern New Jersey union mem- that these businesses are the backbone nated to this worthy cause. I ask my bers. And if my schedule didn’t permit of our economy. Consequently, I have colleagues to join me in extending the me to attend this annual event one worked throughout my tenure in Con- Senate’s best wishes for continued suc- year, I would get an earful from gress to lift the tax and regulatory bur- cess to all those who participated in George! den from the shoulders of small busi- George’s union leadership and sense the National Association of Letter Car- ness so that the dreams and aspirations of civic responsibility have benefitted riers Food Drive.∑ of people like Gary Hirshberg and countless New Jerseyans, including Stonyfield Farm may continue to grow f students able to go school on scholar- and prosper. Gary’s compassion and TRIBUTE TO GEORGE NORCROSS ship, people in need who receive help, commitment to local communities, en- ∑ Mr. LAUTENBERG. Mr. President, I and workers with grievances whose vironmental awareness, and social re- rise today to remember a dear friend rights are defended. sponsibility embodies the true New George Norcross will be dearly and treasured community leader in Hampshire spirit. I commend him for missed. I want to extend my heartfelt Southern New Jersey, George Norcross serving as a role model for not only the condolences to Carol, George’s wife of II. youth of the Granite State but for all 43 years, and his four sons, George III, George and I shared many experi- of us. It is with great pride that I rep- John, Don and Phil. I know I will con- ences and values and each of us ended resent Gary Hirshberg in the United tinue to cross paths and work with up in public service. States Senate.∑ them on behalf of New Jersey. We both grew up in a poor, urban en- ∑ f f vironment, he in Camden, and I in TRIBUTE TO MARJORY STONEMAN Paterson. We both lost our fathers at a TRIBUTE TO GARY HIRSHBERG DOUGLAS very young age, but continued to at- ∑ Mr. SMITH of New Hampshire. Mr. Mr. GRAHAM. Mr. President, I rise tend high school while beginning to ∑ President, I rise today to recognize today with a heavy heart and bearing work. We both served in the military Gary Hirshberg, president and chief ex- the sorrow that Floridians and Ameri- during World War II, he in the Navy ecutive officer of Stonyfield Farm in cans everywhere feel at the death of a and I in the Army. Londonderry, New Hampshire, who is national treasure—Marjory Stoneman After George returned from the war, being honored with the two most pres- Douglas. he built a career in union organizing tigious business leadership awards in Marjory Stoneman Douglas is and efforts and community service. His was New Hampshire. Dedicated to social will always be the ‘‘Mother of the Ever- a voice of strength and determination and environmental corporate respon- glades.’’ That title was made official in for working families in Camden Coun- sibility, Gary Hirshberg became the 1993, when President Clinton presented ty—and what a loud voice it was! He first New Hampshire entrepreneur to here with the Presidential Medal of fought tooth and nail for union work- be named both ‘‘Business Leader of the Freedom—our nation’s most pres- ers, never without a cigar in hand. But Year’’ by Business NH magazine and tigious civilian honor. his rough exterior was complemented ‘‘New Hampshire’s 1998 Small Business Over 130 years ago, upon meeting by his caring heart, and the effective- Person of the Year’’ by the United Harriet Beecher Stowe for the first ness of his work with organized labor States Small Business Administration. time, President Abraham Lincoln was reinforced through his numerous A New Hampshire native and third- greeted the author of Uncle Tom’s philanthropic activities. generation manufacturer, Gary’s vision Cabin with this salutation: ‘‘So this is The Union Organization of Social and commitment to social and environ- the little woman who started the great Services, of which George became mental issues played an integral role in war.’’ president in 1955, reflected his marriage the development of Stonyfield Farm. Marjory Stoneman Douglas was of organized labor and charity work. Gary Hirshberg was named CEO short- equally influential in her own time. The mission of UOSS is to deal with ly after joining Stonyfield. Together, She was the feisty woman who started drug and alcohol abuse, job training, with founder Samuel Kaymen, they the great effort to save the Everglades food banks, disaster relief, clothing embarked on an educational project de- from mankind’s abuse and neglect. drives and blood banks within its com- signed to revitalize family farms in the She was born on April 7, 1880 in Min- munity. New England dairy industry while posi- neapolis, Minnesota. Perhaps it was George was also active in the United tively impacting the environment and this connection to ‘‘The Land of Ten Way his entire life, serving as its gen- the local economy. Thousand Lakes’’ that was responsible eral chairman in 1992 and as chairman The same dedication and determina- for her intense passion for environ- emeritus after his retirement. His in- tion that prompted two individuals to mental preservation. She graduated

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00113 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5144 CONGRESSIONAL RECORD — SENATE May 19, 1998 from Wellesley College just over two message: we would safeguard the where he was the first U.S. medical of- decades later with the prophetic title health of the Everglades and if we ficer to be decorated in the war, when of ‘‘Class Orator.’’ didn’t, we would all spend an uncom- he saved personnel in a submerged These two characteristics—a love of fortable afterlife in hell. Brenn Gun Carrier. nature and a powerful determination to I took those words to heart. When I Dr. Poweleit spent over three years make her voice heard—would soon was Governor from 1979 to 1987, Mar- in Japanese POW camps in the Phil- come together to the benefit of the jory and I teamed up to launch a cam- ippines, and was a survivor of the Ba- Florida Everglades. In 1915, Marjory ar- paign to safeguard the Florida Ever- taan Death March. After the war, Dr. rived in Miami and joined the staff of glades. It is an effort that has at- Poweleit returned to Northern Ken- the Miami Herald. With the exception of tracted broad, bipartisan support over tucky, where he opened up his own a brief stint as a Red Cross worker dur- the years—a testament to Marjory’s practice in Covington as an eye, ear, ing World War I, she spent the next persuasive powers. nose and throat specialist. eighty-three years working to save the In 1997, I joined Senator CONNIE MACK For the last 50 years, the Poweleit Everglades from destruction. and U.S. Representative PETER family has maintained the office at the When Marjory Stoneman Douglas ar- DEUTSCH in introducing legislation to corner of Eighth and Scott in Coving- rived in South Florida, many people name over 1.3 million acres of the Ever- ton. It was a rare day that Dr. Poweleit thought of the Everglades as nothing glades after its modern saviour. Presi- didn’t work 14 hours. If there were sick more than another Florida swamp. In- dent Clinton signed that legislation in patients to be seen, Pepa Poweleit deed, Governor Napoleon Bonaparte mid-November, and I helped to dedi- would see every single one. At a time Broward, who served from 1905 to 1909, cate the ‘‘Marjory Stoneman Douglas when most people lived within walking had proposed draining the Everglades Wilderness’’ on December 4, 1997—Ever- distance of their family doctor, it to reclaim the land there. glades National Park’s 50th Birthday. wasn’t rare to see Dr. Poweleit still in Marjory did not brook ignorance Marjory’s ashes will be scattered over the office after midnight. about the Everglades. Instead, she that wilderness area. Pepa Poweleit retired from practice poured time, energy, blood, sweat, and Marjory Stoneman Douglas was a in 1981, leaving the family practice to tears into re-educating the people of friend and mentor to me for many his son Alvin D, an eye specialist Florida about the crowning jewel in years. I will miss her greatly. I want to known in the community as Dr. Alvin. Florida’s collection of environmental conclude today by reading from John Carrying on the tradition of family practice, Dr. Alvin remains a fixture treasures. Long before scientists be- Rothchild’s introduction to her auto- today in the Covington community. came alarmed about the effects on the biography. Recalling her appearance at Mr. President, last June, Pepa natural ecosystems of south Florida, a 1973 public meeting in Everglades Poweleit was tragically killed when she was taking public officials to task City, Mr. Rothchild offered this apt de- the car in which he was a passenger for destroying wetlands, eliminating scription: was run into by a truck. He was 89. the sheet flow of water across the Ever- Mrs. Douglas was half the size of her fellow Pepa Poweleit was a beloved figure in glades, and upsetting the natural cy- speakers and she wore huge dark glasses, the communities of Northern Ken- cles upon which the entire South Flor- which along with the huge floppy hat made her look like Scarlet O’Hara as played by tucky. Though nearly two decades have ida ecosystem depends. gone by since he retired, and almost a Marjory’s oratory and hustle pro- Igor Stravinsky. When she spoke, everybody year has passed since his death, Pepa duced tangible accomplishments. Her stopped slapping [mosquitoes] and more or less came to order. She reminded us all of Poweleit is still sorely missed.∑ crusade to win federal protection for our responsibility to nature. Her voice had f the wetlands scored a major victory the sobering effect of a one-room school- when President Harry Truman dedi- marm’s. The tone itself seemed to tame the NATIONAL EMS WEEK cated Everglades National Park in 1947. rowdiest of the local stone crabbers, devel- ∑ Mr. SANTORUM. Mr. President, I That same year, she published the opers, and the lawyers on both sides. I won- rise today to congratulate Lisa work that would jump-start the mod- der if it didn’t also intimidate the mosqui- Mauger, Mary McGuire, Stephanie toes. ern era of Everglades restoration: The Schmoyer and Christine Webster on Everglades: River of Grass. To this day, Marjory Stoneman Douglas always being honored with the Stars of Life that tome stands as the definitive de- got your attention—she was the most award by the American Ambulance As- scriptive of the national treasure she eloquent spokesperson that the Ever- sociation (AAA). fought so hard to protect. glades will ever have. The embattled For the past four years, AAA has Visitors travel thousands of miles to wetland lost is ‘‘Mother’’ last week, honored paramedics and emergency see the Everglades. Scientists and nat- but we must keep her memory and leg- medical service (EMS) personnel who uralists spend entire lifetimes studying acy alive by continuing our efforts to exemplify what is best about their the Everglades’ diverse habitats and preserve the Everglades for future gen- field. Past Stars of Life award recipi- unique collection of plants and animal erations of Floridians and Americans.∑ ents have included paramedics who life. Today, public officials from every f were part of the rescue efforts during ideological persuasion and geographic disasters like the Centennial Olympic location line up to support efforts to TRIBUTE TO DR. ALVIN C. POWELEIT: A FIXTURE IN Park and Oklahoma City bombings and protect the Everglades. None of this the severe flooding in the South and would have been possible without Mar- NORTHERN KENTUCKY FOR OVER 50 YEARS Midwest. jory Stoneman Douglas’ Herculean ef- Through a spirit of selflessness, Lisa, forts. ∑ Mr. MCCONNELL. Mr. President, I Mary, Stephanie and Christine have She supplemented her hard work and rise today to remember the life of Dr. dedicated themselves to serving others. determination with a disarming can- Alvin C. Poweleit. For nearly 50 years, Their spirit of community is a great dor. Some people will remember that the people of Covington were blessed to source of pride, not only for Pennsyl- Marjory co-authored a 1920’s anti-gang- have Dr. Poweleit as a member of their vania, but for the United States. ster play entitled Storm Warnings. community, and few families were not Mr. President, I hope my colleagues That title was well-suited to the per- touched by the kind gentleman known will join with me in honoring these sonality of its author. She would fre- as ‘‘Pepa.’’ women for their faithful service and quently blow in like a Florida summer Pepa Poweleit grew up in Northern extending best wishes for continued thunderstorm and give you her Kentucky in the town of Newport. success in the years to come.∑ thoughts in no uncertain terms, leav- After earning his medical degree, Dr. f ing you dazed and drained but unmis- Poweleit returned to Newport in the takably sure of her intentions. late 1930s as general practitioner. Like ORDERS FOR WEDNESDAY, MAY 19, When I was a state legislator in the most young men of his generation, he 1998 late 1960’s, Marjory came to Tallahas- left his hometown behind when he Mr. MCCAIN. Mr. President, I ask see to speak to the Dade County dele- signed up to serve in World War II. He unanimous consent that when the Sen- gation. She conveyed one simple, blunt soon found himself in the Philippines, ate completes its business today, it

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00114 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5145 stand in adjournment until 9:30 a.m. on this legislation through his leadership. look-back provisions of some $4 billion, Wednesday, May 20. Now we have an opportunity to that the best estimate, even if you are I further ask that, on Wednesday, im- strengthen and improve it. We are going to have the violations of the mediately following the prayer, the grateful for his leadership. look-back provisions, you are only routine requests through the morning Mr. President, I want to just take a talking about perhaps 15 or 20 cents hour be granted and the Senate resume few moments to respond to the issue more per pack. consideration of the pending amend- that Senator MCCAIN spoke to when we So you get up to maybe $1.30 or $1.35. ments to the tobacco legislation. were making the presentation about But you still are not getting to where The PRESIDING OFFICER. Without the importance of increasing the price the health economists and profes- objection, it is so ordered. per pack by $1.50. Senator MCCAIN at sionals say you have to get in order to f that time talked about, what is magi- have the significant reduction. cal about $1.50? What is really the dif- That is really the issue that is before PROGRAM ference between that and $2 or $2.50 or the Senate. That is the question that $3? we are going to decide on tomorrow. Mr. MCCAIN. Mr. President, a motion What is the justification for not tak- to table the Kennedy amendment and Mr. President, I think it is important to understand why we do have the $1.50. ing the recommendations of the public the Ashcroft amendment is expected to health community? What is possibly occur by midmorning. In addition, sev- It is, as I mentioned earlier, and as Senator LAUTENBERG and Senator the reason for not doing so? There are eral other amendments are expected to those who can say, ‘‘Well, if you do so be offered. Therefore, votes can be ex- CONRAD have pointed out, the rec- ommended figure by not just the ma- you are going to pay for the industry pected throughout the day and into the itself.’’ Senator CONRAD just responded evening on Wednesday. jority, but the entirety of the public health community, to be essential if we to that. f are going to have some impact in re- I come back to the excellent testi- mony we had before the Judiciary ORDER FOR ADJOURNMENT ducing cigarette smoking by teenagers in this country and also to achieve the Committee and before the task force Mr. MCCAIN. If there is no further goal that was established by the attor- that responds to that which estimates business to come before the Senate, I neys general in their own proposal. that even with $1.50 as Jeffrey Harris, now ask unanimous consent that the They established a 10-year goal of 60 who is probably the most thoughtful Senate stand in adjournment under the and competent unbiased health econo- percent. That was in the initial pro- previous order, following the remarks mist who has studied this for the long- posal made by the attorneys general— of Senator KENNEDY. est period of time, has estimated that the 60 percent. The PRESIDING OFFICER. Without In our Committee on Labor and even with an increase of $1.50, that by objection, it is so ordered. Human Resources, which had the con- the year 2003 the profits for the indus- The Senator from Massachusetts is sideration of this legislation for a short try will be in excess of $5 billion just recognized. period of time—we had the jurisdiction on the domestic sales of product here f because of the responsibility that the in the United States, a very, very gen- erous profit for this industry—a gener- committee has regarding the Food and NATIONAL TOBACCO POLICY AND ous profit for the industry even at Drug Administration, and we had a YOUTH SMOKING REDUCTION ACT $1.50. markup on the legislation—we had a The Senate continued with the con- What is possibly the reason not to majority of the members who said, ‘‘We support the recommendation of the sideration of the bill. don’t want to see a reduction of 60 per- Mr. KENNEDY. Mr. President, I join public health community which says cent, we want a reduction of 80 per- we ought to go to $1.50 a pack if we are all of my colleagues in thanking our cent.’’ If we are going to accept that, friend and colleague and chairman of serious about stopping young people then we have to find out how we are from smoking? our task force, Senator CONRAD, for the going to get and reach that particular That is overwhelming testimony. enormously informative presentation goal. That is really the fundamental That is overwhelming presentation. It that was made in support of our pro- issue. It doesn’t do much good to say is overwhelming evidence. It has not posal before the Senate now, which is we are going to set a goal of 30, 40, 50, been rebutted. It won’t be rebutted. It to raise the cost of a pack of cigarettes or 60 percent and then not take the hasn’t been rebutted tonight. It won’t by $1.50. steps to be able to achieve it. be rebutted tomorrow. And it has not I thank my colleague and friend, Sen- The attorneys general went with 60 been rebutted by any of the publica- ator KERRY, for his comments and for percent. The goal established out of the tions, including the tobacco industry all the work he has done, as well, in Commerce Committee was 60 percent. itself. It has not been rebutted. bringing us to where we are in this leg- So it is fair enough to ask ourselves, We will come back to what the to- islative session, so that we are having will we reach that goal of 60 percent bacco industry has been doing. So this an opportunity to debate these issues with the proposal of the Commerce is the issue. Why wouldn’t we want to on the floor of the Senate and having Committee? And what we are saying is do it? What is going to be the argu- an opportunity to express a judgment that we will not. You won’t reach that ment against it? I don’t find the argu- about these matters this afternoon, with $1.10. You will get maybe into a ments very persuasive. I do not hear again tomorrow, and the remainder of 34, 36 percent reduction, but you are them. It is just, ‘‘Well, we have a bet- this week. not going to get the 60 percent reduc- ter way of doing it.’’ But we are taking This is enormously important. Per- tion, which has been the goal—and I a very significant chance. Why do that haps, in many respects, it is the most think a worthwhile goal—to see that 60 when we have such overwhelming and important measure that we will have percent of the young people in this powerful evidence this amendment can before the Senate in this term—cer- country are going to stop smoking over make a significant difference, and tainly one of the most important pub- a period of 10 years. We will be able to based upon the human tragedy that is lic health issues that we will have be- reach that with $1.50. I will come back taking place among our teenagers fore the Senate. I think it is important and explain that in greater detail in a every single day across this country? It that the American people give focus few moments. We will be able to reach isn’t a problem that is becoming less and attention to this issue and, in par- that and give the authority for that. important. It is becoming more impor- ticular, to the amendments we are now The chairman of the Commerce Com- tant. It isn’t an issue that is resolving discussing and debating on the increase mittee says we will get there, and if we itself. It is becoming more acute. That of the per pack cost of cigarettes. don’t get there on the front end, we is the question that we can ask. I also mention our colleague and will get there on the back end by the We in this body tomorrow can take a friend, the chairman of the committee, requirements we have on the look-back major step in improving the quality of Senator MCCAIN. I, too, want to join in provisions. But I think it is fair to say life for young people in this country for expressing appreciation for the fact that with the look-back provisions, and years ahead. The overwhelming major- that we had the opportunity to get to the capping of the payments on the ity of the American people are for it.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00115 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5146 CONGRESSIONAL RECORD — SENATE May 19, 1998 The powerful special interests of the est tobacco company, Philip Morris, over this tax bill—can we afford it; it is tobacco industry are against it. And we fired the opening salvo in the new price regressive, and all the rest. are going to find out here on the floor strategy which reversed a decade-long If you want to stop teenagers from of the Senate when that rollcall is decline in youth smoking in the United smoking, there it is, according to the going to be there whether we are going States. Philip Morris slashed 40 cents industry itself. And now, Mr. Presi- to stand with the families and stand off the price of Marlboro, its most pop- dent, we see what has happened. Every with the children of this country and ular brand of cigarettes among chil- parent in this country ought to be con- stand with the future, or whether we dren. The strategy was defined to pro- cerned about the explosion in the num- are going to stand with an industry tect its profits against generic and dis- bers of teenage smokers in this country that has been so discredited in terms of count brands which were capturing an with an extraordinary rise, the fastest its representations and presentations increased share of the market. rise we have seen really in the history in this whole discussion and debate and Let me show this chart which gives of any kind of documentation about over the period of this past year. That the overall changes about what is hap- kids smoking. is the issue. I don’t think we can have pening with teenage smoking here in Now, you can say let’s look again at what many that are more clearly defined the United States. In 1991, it increased was really the reason for this. than the one we have before us and will 27 percent; in 1993, 30 percent; in 1995, Well, Mr. President, I suppose it is all have before us tomorrow. 34.5 percent; in 1997, 36.4 percent; a summarized best by this Philip Morris According to University of Illinois yearly average of a 32-percent rise memo. We can see now what they were Professor Chaloupka, the Nation’s since 1991. talking about when you look at what leading authority on the impact of This is going up so rapidly that we has happened to the real price—the im- higher cigarette prices on teenage have to ask ourselves what are we pact on teen smoking from 1980 to 1995. smoking, a $1.50 per pack increase in going to do to try to slow it down? Here is the steep increase in the price, cigarette prices will reduce the teenage What can we do to possibly stop it? and here is the decline in the teenage smoking by 56 percent over 10 years. A And the goals that have been set by the smoking. $1.10-a-pack increase, on the other attorneys general and by the Com- That is what Philip Morris was talk- hand, will reduce youth smoking rates merce Committee is 60 percent. Let’s ing about—the ‘1982–83 increase in the by only 34 percent. In fact, the $1.15 in- try to do that. The best way is with the price and the decline in the teenage crease will only return youth smoking $1.50. smoking, right there. There it is, Mr. to its 1991 level because of the recent Teenage smoking on the rise. Just President. And that represents the surge in teenage smoking rates. That is look at who has been the targets of the 420,000 Philip Morris potential smokers clearly unacceptable. tobacco companies. who didn’t get started—in just that FDA Commissioner David Kessler has Blacks and non-Hispanic increased short line here. called smoking a ‘‘pediatric disease 80.2 percent. They have been targeted But now let’s look at what has hap- with its onset in adolescents.’’ In fact, by the industry. They have been suc- pened with the price over the rest of studies show that over 90 percent of the cessful. Hispanic, up 34 percent, and the period of time. We had the gradual current adult smokers began to smoke white and non-Hispanic, 28 percent. increase. And we will hear more about before they reached the age of 18. They have been the targets of the to- that. That is basically the monitoring It makes sense for Congress to do bacco industry effort to expand their and increasing of what? You say, Sen- what we can to discourage young market to bring these young people ator, well, it is just the price that is Americans from starting to smoke dur- into addiction to be the source of prof- going up. How could they possibly— ing these critical years. A $1.50-a-pack its for future years. why would they do that? increase over 3 years is the right medi- The tobacco industry looks at a Well, there is no question the price cine. A $1.10 increase won’t do the job. child, and, says, ‘‘This is my profit for was on the rise all through here and Youth smoking in America has the future years. See what I can do to look what was happening with teenage reached epidemic proportions. Accord- get that child addicted.’’ smoking, Mr. President. Look what ing to a report issued last month by You say, ‘‘How can you say that, was happening with teenage smoking. the Centers for Disease Control and Senator? How can you make a state- As the prices were going up here, the Prevention, smoking rates among high ment like that on the floor of the U.S. number of teenage smokers was coming school students soared by nearly a Senate?’’ down here. third between 1991 and 1997. Among Af- Listen to what the Philip Morris We are challenged: Well, who are rican-Americans, the rates have soared memo says in 1987 at the Minnesota these public health officials? Where are by 80 percent. More than 36 percent of trial. these studies? What kind of findings is high school students smoke, a 1991 year The ‘82–‘83 round of price increases pre- Dr. Koop referring to? high. vented 500,000 teenagers from starting to Just look at this record. Just look at With youth smoking at crisis levels smoke. This means that 420,000 of the non- this record as to what is happening out and still increasing we cannot rely on starters would have been Philip Morris there in the countryside, the dramatic halfway measures. Congress must use smokers. We were hit hard. We don’t need increases in the number of kids that the strongest legislative tools avail- that to happen again. are going ahead and smoking and look able to reduce youth smoking as rap- This isn’t a statement made by the in the more recent times. And then idly as possible. Senators from Massachusetts, North look what happened where you have Mr. President, let’s take a look at Dakota or New Jersey. Here it is in the the increase in the price and the de- what has been happening to the teen- words of the tobacco industry. Listen cline here. And then we see the drop, agers in this country over the period of to what they say about an increase in the real price right here corresponding the recent years. Tobacco use, as men- price. to the dramatic increase and leveling tioned, is a ‘‘pediatric disease with its The ‘82–‘83 price increase prevented 500,000 off. onset in adolescents.’’ It is no coinci- teenagers from starting to smoke. This See the drop here, Mr. President. You dence that teenage smoking has con- means that 420,000 of the nonstarters would see the drop in the real price and the tinued to increase since the early 1990s. have been Philip Morris smokers. explosion of teenage smoking. How The industry has systematically re- That is their percent of the market. many times do we have to make this duced its prices on cigarettes and in- We were hit hard. We don’t need that to case? creased its spending on marketing and happen again. Well, you know something. People promotional strategies targeted at Well, they will have a chance to have can say, ‘‘Well, look, it is flattened youth. it happen to them again tomorrow at off.’’ This hasn’t flattened off. A significant date in this cynical ma- noontime when we do what the ciga- Well, what happened in the interim? nipulation is April 2, 1993, a day which rette companies dread the most, give What happened in the interim is the will live in infamy in the tobacco in- them an increase in price. That is what explosion of the tobacco industry in ad- dustry. On that day, often called they dread the most. We will hear, oh, vertising, $5 billion a year in advertis- ‘‘Marlboro Friday,’’ the Nation’s larg- my goodness, all this fluttering around ing. And that has made sure that these -

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00116 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — SENATE S5147 kids continued on with their smoking. have effective law enforcement provi- impact. But $1.10 over 5 years is not They monitor this carefully, what the sions. So you can say, ‘‘Well, what are going to have the kind of impact, even price and the necessary advertising is. you going to have in terms of law en- with the look-back provisions, that They take the focus groups; they do forcement provisions?’’ those who support that proposal are their polling; they do their marketing Mr. President, others will speak to supporting, particularly if you are surveys. And then they know exactly this. But just to mention briefly: talking about reductions of 60 percent. what to do, how to calculate this, and Closed distribution systems; require li- You cannot have it both ways. If you that is what they are doing. censing of everyone in the cigarette are going to reach 60 percent, you have This whole group, increasing 30 per- distribution chain, manufacturer or to have the increase in the price, and it cent a year during all of this period of wholesaler, distributor and retailer; all has to be fast. And you have to have time, are the kids that are being ad- cigarettes manufactured for export the corresponding counteradvertising dicted to smoking. As we found out in must be clearly marked so they can be measures and other supports, and a our Judiciary Committee, we are a Na- easily identified; additional law en- look-back provision that is going to be tion that is concerned about what we forcement resources for Customs and worthy of the name. But just to say we are going to do about the problems of ATF. are establishing a goal and then not to substance abuse, and just about every We hear excellent responses from have the real teeth in that proposal I professional will tell you that the gate- those who have responsibilities for think diminishes what we are stating way in terms of the use of heroin, co- smuggling, and they have answered to is our goal and what should be our caine, the other substance abuse starts that. So we know we are going to have goal, and that is to pass legislation with smoking—and starts with teenage minimal impact on the profits of the that is going to do something about smoking. And they can draw you a cor- industry. We know it can work effec- kids smoking in our country and relation about where those kids start tively on smuggling. And we know around the world. getting off the straight and narrow what group in our society is going to By raising the price by $1.50 instead path almost by the time they begin to benefit the most. of $1.10, we will prevent an additional smoke as kids. That record is out Let me just continue about the teen- 750,000 children from smoking over the there. I will put some of that in the agers and some of the things that hap- next 5 years. That will mean 250,000 RECORD and reference it tomorrow pen to these teenagers. Philip Morris fewer premature deaths from tobacco- morning, Mr. President, but that is a reduced prices by 50 cents in my own induced diseases. What other step could fact and they can demonstrate that to State of Massachusetts and New York, we take here in the U.S. Senate, what you. That makes the case about as well both of which had recently increased could we possibly do in this session, so as it can be made. their cigarette tax. This is some 3 we could say we will save the lives of I don’t know how much more con- years ago. A month later, R.J. Rey- 250,000 children in the action of a single vincing you have to be. I do not hear nolds, the Nation’s second largest ciga- day? You don’t find it. We won’t have the response from our colleagues and rette company, which manufactures it. It is not there. But it will be tomor- friends who are opposed to this. Ac- Camel cigarette, responded by match- row. We will have that kind of impact. cording to Jeffrey Harris, health econo- ing Philip Morris price cuts on its most And that is the issue. mist at MIT, who is the most experi- popular brands with teenagers, and the Public health experts have over- enced, thoughtful and knowledgeable, price cuts came at the same time the whelmingly concluded that the in- and certainly the most experienced in Federal tax was being increased from crease of $1.50 is the minimum price in- terms of these issues, the profit even 20 to 24 cents a pack and a larger to- crease necessary to achieve our youth with $1.50 for the industry itself will be bacco increase was being considered to smoking reduction. Dr. Koop, Dr. $5.1 billion—$5.1 billion—$5.7 billion fund the Clinton administration’s pro- Kessler, the Academy of Sciences, the under the McCain bill; with no legisla- posal for health care reform. In addi- American Cancer Society, the Amer- tion, $6.3 billion. Very, very profitable tion to the price cuts, the tobacco in- ican Heart Association, American Lung industry. And another $2 billion to $3 dustry continued to spend on advertis- Association, American Medical Asso- billion per year from international cig- ing, promotional giveaways, T-shirts, ciation, the ENACT Coalition, Save arette sales and from nontobacco prod- coupons, sports gear, buy-some-get- Lives Not Tobacco Coalition, have all ucts—Miller, Kraft, Nabisco. some-free offers to increase sales. stressed the importance of a price in- We are talking about economic dyna- And, as I mentioned, much of this ad- crease of at least $1.50 per pack—some mite when we are talking about these vertising was targeted to children and for $2, most for $1.50. And even those companies. And they shed these croco- adolescents, promising popularity, ex- that were for $2 believe $1.50 with ade- dile tears if we propose putting on a citement, success, for those who begin quate look-back can achieve the goal. $1.50 per pack. to smoke. It is no coincidence, then, It is the single most important step we The thing we do know, Mr. President, that the price cuts and increased ad- can take to reduce youth smoking. is that we will have a significant im- vertising aimed at kids led to the rise More than a third of the Members of pact in reducing teenage smoking. Why in teenage smoking. the Senate have already cosponsored take a chance? Why take a chance of I just show that, time in and time bills proposing $1.50 increase, because, not doing this job right? Why take a out, if you lower the price and you in- as our colleagues know, the Budget chance of not taking the steps that are crease the advertising, you increase Committee endorsed a $1.50 increase on necessary to move ahead to make a dif- the teenage smoking. That is as clear a bipartisan vote, 14 to 8, in March. ference for all of these kids? I do not as it is that we are standing tonight. Last Thursday, a bipartisan majority understand it. You just cannot argue with those facts; of the Finance Committee voted for a We have heard about some of the rea- they are indisputable. And, still, we are cigarette price increase of $1.50. Too sons why we should not do it. I think having to make this case for the in- many young people are at stake for us the Senator from North Dakota stated crease, for $1.50. The $1.50 per pack will to ignore the advice of all of our public it well. If we do it, the arguments have address these problems. We will see health experts. Those efforts were bi- been made, they won’t be profitable. this dramatic reduction in teenage partisan. Just as Dr. Koop speaks for That has been responded to. If we do it, smoking. It has been stated by those Republicans and Democrats, those ef- we are going to get into questions of who have studied and reviewed this. forts were bipartisan in the Finance smuggling. We will have to deal with The amendment we are proposing pro- Committee and the Budget Committee. this issue. And as Senator CONRAD had vides for the cigarette price index of It should be bipartisan tomorrow. pointed out, the smuggling is not tak- $1.50 a pack for the next 3 years. The The American people have had ing place in the countries with the $1.10 increase over 5 years in the man- enough of the tobacco industry’s dis- highest costs, which you would nor- agers’ amendment is not adequate to tortions and denials about the mally think. Countries where smug- achieve the youth smoking reduction addictiveness of nicotine. They have gling is the greatest is where the prices goals. had enough of the industry’s cynical are, in some instances, a quarter or a If you had the $1.10 in 1 year, even marketing of cigarettes to children. third of the higher price, but fail to $1.10 in 2 years, you would have some They have had enough of the industry’s

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00117 Fmt 4624 Sfmt 0634 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 S5148 CONGRESSIONAL RECORD — SENATE May 19, 1998 decades-long coverup of the health If nothing is done to reverse this prematurely. We can save those chil- risks associated with smoking. trend in adolescent smoking, the Cen- dren. We can save the 750,000 who would This is an industry which once ar- ters for Disease Control and Prevention otherwise smoke, and we can say to the gued that cigarettes are no more ad- estimate 5 million of today’s children 300,000 young people, the children in dictive than Gummy Bears. This is an will die prematurely from smoke- America today, ‘‘We can save your industry that used Joe Camel in adver- caused illnesses. Five million of to- lives as well.’’ The question is, Are we tising, blatantly designed to hook chil- day’s children will die from smoke- willing to take that step to raise the dren on smoking. Now they ask us to caused illnesses. The American public cost by $1.50? believe that a $1.50 increase will lead to has had enough of the daily tragedy of I certainly hope we will, Mr. Presi- the bankruptcy of big tobacco and a death and disease caused by tobacco dent. I point out that even raising it by rampant black market for illegal ciga- use. The tobacco industry has literally $1.50, we will be where most of the Eu- rettes. That argument by big tobacco had a license to kill for many decades. ropean countries are. Even with the has no more credibility than any of the Now the license is being revoked and $1.50 increase, the United States will be other false arguments that have been Americans are demanding dramatic ac- at $3.59; France at $3.50; United King- made over the past 30 years and more. tion by Congress to drastically curb dom at $4.40; Denmark at $5.10; and Over the years, big tobacco has proved youth smoking. Norway at $6.82. We will be right in the itself to be the master of the big lie. This Congress will be judged, in large middle of the industrial nations of the Congress should have learned this les- measure, by whether or not we respond world. son long ago, and it is time to trust the effectively to that challenge, and in- Let me say, the tobacco industry Nation’s public health leaders, not big creasing cigarette prices by $1.50 is the makes profits on all of those countries. tobacco’s public health prevaricators. most effective way to reduce teenage The tobacco industry makes generous smoking. The public health community The tobacco companies have known profits from all of these countries that agrees it is the minimum increase these facts about addiction. For years are a good deal higher than even the needed to achieve 60 percent over 10 they have been fully aware that they $3.50, as well as from the other coun- years. tries. need to persuade children to take up The $1.50 has the broad support of the smoking in order to preserve their fu- Mr. President, this actually is a mod- health community, and it deserves the est step, a very modest step, but one ture profits. That is why big tobacco broad support of the U.S. Senate as has targeted children, the billions of that is necessary in order to protect well. the young people of this country. I dollars in advertising and promotional In conclusion, I want to mention hope we will do so tomorrow when the giveaways, their promise of popularity, again what this issue is all about, and roll is called. excitement, and success for young men that is what this amendment will do and women who take up smoking. for the young people of this country. f The recent documents released in the We have the $1.10 increase over a 5- Minnesota case against the industry year period that is in the measure that ADJOURNMENT UNTIL 9:30 A.M. reveal the vast extent of the industry’s is before us this evening. The measure TOMORROW marketing strategy to children. In the that we offer will raise the price of The PRESIDING OFFICER. Under 1981 Philip Morris memo entitled cigarettes by $1.50. The number of chil- the previous order, the Senate will ‘‘Young Smokers, Prevalence, Implica- dren whose lives will be saved by the stand in adjournment until tomorrow, tions, Related Demographic Trends,’’ cigarette price increase by $1.10, over May 20, at 9:30 a.m. the authors wrote that it is important what it would otherwise be, will be 1 Thereupon, the Senate, at 8:23 p.m., to know as much as possible about million; increasing cigarettes by $1.50, adjourned until Wednesday, May 20, teenage smoking patterns and atti- an additional 1.25 million. There is for 1998, at 9:30 a.m. tudes. ‘‘Today’s teenager is tomorrow’s every 10 percent, some 7-percent in- f potential regular customer and the crease in reduced teenage smoking. overwhelming majority of smokers The difference from the $1.10 and the NOMINATIONS first beginning to smoke while still in $1.50 is 750,000 in terms of those teen- Executive nominations received by their teens and the smoking patterns agers who will smoke—750,000. Mr. the Senate May 19, 1998: of teenagers are particularly important Koop said today the new studies would to Philip Morris. Furthermore, it is bring it up to 900,000. But we are talk- THE JUDICIARY during the teenage years that the ini- ing between 750,000 to 900,000 children, CARL J. BARBIER, OF LOUISIANA, TO BE UNITED STATES DISTRICT JUDGE FOR THE EASTERN DISTRICT tial choice is made.’’ of which some 300,000 of those will die OF LOUISIANA, VICE OKLA JONES, II, DECEASED.

VerDate 12-JUN-98 13:48 Jun 18, 1998 Jkt 010199 PO 00000 Frm 00118 Fmt 4624 Sfmt 9801 E:\PICKUP\S19MY8.REC INET01 PsN: INET01 May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E883 EXTENSIONS OF REMARKS

RELIGIOUS GROUPS CHALLENGE regulates the quality of food for public con- out Frontiers are doing to highlight and chal- GROWING INTOLERANCE IN BEL- sumption. The Austrian Government's opinion lenge the governmental actions that violate the GIUM that the government must ``approve'' religious Helsinki Accords and other international com- belief before it is available for the public re- mitments to religious liberty. HON. CHRISTOPHER H. SMITH veals a shocking retreat from democratic prin- f ciples which encourage the free exchange of OF NEW JERSEY TRIBUTE TO LOU AND JUNE IN THE HOUSE OF REPRESENTATIVES ideas and the freedom of the individual to choose his or her own religious belief. LORCH Tuesday, May 19, 1998 Several western European parliaments have Mr. SMITH of New Jersey. Mr. Speaker, as or are currently investigating the reporting on HON. BRAD SHERMAN Chairman of the Subcommittee on Inter- the activities of minority religious groups. OF CALIFORNIA national Operations and Human Rights, and These parliamentary investigations have also IN THE HOUSE OF REPRESENTATIVES as Co-Chairman of the Helsinki Commission, I had a chilling effect on religious liberty and ap- Tuesday, May 19, 1998 am alarmed at the growing religious intoler- pear to cause a public backlash against Mr. SHERMAN. Mr. Speaker, I rise today to ance toward religious minorities that we are groups being investigated or labeled ``dan- pay tribute to Lou and June Lorch for their ef- observing in Western Europe. I am pleased gerous.'' For instance, the German Bundestag forts to improve the quality of life in our com- that a coalition of religious groups is building is currently conducting its investigation into munity. in Europe to combat the rising intolerance, ``dangerous sects'' and ``psycho-groups'' and Lou and June have exhibited exemplary and in fact a legal challenge to these onerous issued an interim report in January 1998. At leadership with their active participation in the actions is to be announced in Belgium on May the Helsinki Commission's September 1997, Jewish communities of Congregation Beth 20. hearing, independent evangelical church rep- Kodesh and Shomrei Torah Synagogue. Each In the last few years, we have witnessed resentatives reported a direct correlation be- has spent countless hours working for the disturbing government interference in the af- tween the harassment, vandalism and threats benefit of others, and together they have con- fairs of religious communities in Western Eu- of violence they experience and the investiga- tributed to the successful development of a rope through new religion laws, parliamentary tion by the German Bundestag's commission. growing Jewish community. investigations into minority beliefs and reli- The French Parliament's 1996 report con- Lou's positions and accomplishments illus- gious groups, and new government bureauc- tained a list of ``dangerous'' groups in order to trate a zest for life and a vigorous dedication racies created to disseminate government warn the public against them and the Belgian to the causes which he supports. At Temple propaganda on religious organizations. These Parliament's 1997 report had an informal ap- Beth Kodesh, Lou served at various times as new laws, parliamentary investigations and pendix, which was widely circulated, listing Religious Vice President, Ways and Means government information centers stigmatize as 189 groups and included various allegations Vice President, Executive Vice President and ``dangerous'' groups such as the Jehovah Wit- against many Protestant and Catholic groups, as the Men's Club President. After Shomrei nesses, Baha'i, Hindus, and charismatic Quakers, Hasidic Jews, Buddhists, and the Torah Synagogue was formed by the merging Catholic and Protestant groups. These govern- YWCA. of Temple Beth Kodesh and Temple Beth Ami, ment actions violate the religious liberty prin- Equally alarming has been the establish- Lou served as the co-chairman of the High ciples found in numerous international docu- ment of government information centers by Holy Days seating committee. Currently, he ments, including the Helsinki Final Act, par- Western European parliaments to alert the holds a seat on the Jewish National Fund's ticularly the commitment to ``foster a climate of public to ``dangerous'' groups. The Austrian Board of Directors and the Chatsworth Cham- mutual tolerance and respect between believ- and Belgian Governments have set up hot- ber of Commerce. ers of different communities as well as be- lines for the public and, through government June's contributions to the Jewish commu- tween believers and non-believers'' found in sponsored advisory centers, distributes infor- nity embody the spirit of enthusiasm and lead- the Vienna Concluding Document of 1989 mation on groups deemed ``dangerous.'' In ership as well. Having served most notably as (Paragraph 16.2). Austrian Government literature, Jehovah's Wit- Ways and Means Vice President on the Con- In January, I traveled to Moscow with my nesses are labeled ``dangerous'' and members gregation Beth Kodesh Sisterhood Executive good friends and colleagues Representatives of this group report that the stigma associated Board, she has also held positions including Frank Wolf and Tony Hall to raise our con- with this government label is difficult to over- Party Shop Chairperson and Chanukah craft cerns with the 1997 Russian religion law. come in Austrian society. These information and needlepoint workshops instructor. As a re- There, we met with minority religious groups centers directly violate the commitments that sult of her tireless efforts for the community, concerned that the new law would limit their Austria and Belgium have made as participat- June was awarded the Chayem Olam award, ability to freely practice their faith. While it re- ing States of the OSCE to ``foster a climate of the Sisterhood's highest honor. In addition, mains to be seen how this law will be imple- mutual tolerance and respect'' and excessively June was named an honorary member of the mented, on its face, the law clearly violates entangle the government in the public discus- Men's Club and served as the National Gov- numerous Helsinki human rights principles. sion on religious beliefs. ernor of the CAIR Evolution Versus Society. Also in January, another Helsinki Commis- On Wednesday (May 20), at the European Besides Lou and June's individual achieve- sion delegation led by fellow Commissioner Parliament, a coalition of religious groups, in- ments, they have joined forces to chair the Representative John Porter, raised concerns cluding Hasidic Jews, Baha'i, Seventh Day Congregational Blood Bank Drive and together with the Austrian Government regarding their Adventist and other leaders from the evan- played an integral role in planning the syna- new law restricting religious freedom. The gelical Protestant community representing 90 gogue's auction and annual dinner dance. Austrian law, passed by the Austrian Par- per cent of Belgium's Protestant community, The Lorch's achievements in the Jewish liament on December 10, 1997, requires that are holding a press conference. They are pub- community highlight a successful career in the a religious group prove a 20-year existence in lishing a petition to the Belgian authorities, an- insurance industry with the Lorch Insurance Austria, have a creed distinct from previously nouncing the launch of a court challenge to Agency. Lou has served as the President of registered groups, and have a membership of the Belgian Parliamentary Report, and high- the Independent Insurance Agents and Bro- at least 0.02% of the population or 16,000 lighting their concerns over the Belgian Gov- kers Association and as the State Director of members before they are granted full rights ernment's Advice and Information Center. The the California Insurance Agents and Brokers under law. The premise extended by the Aus- premise of the legal challenge is that these Association. A highlight of his career came in trian Government for such intense regulation actions by the Belgian Government violate 1988, when he was awarded the prestigious of religious groups is that the government is Belgium's international commitments to reli- Van Dawson Award. In the past, June has responsible for the content of belief available gious liberty. I commend the work that these served as the Lorch Insurance Agency's Chief for public consumption, just as the government and other groups such as Human Rights With- Financial Officer.

∑ 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. E884 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 Mr. Speaker, distinguished colleagues, demonstrated by his service in the U.S. Army Co-founder of the Chicano Educators Associa- please join me in paying tribute to two distin- from 1958 to 1960 and his activity with the tion in Marin, Napa, and Sonoma Counties guished members of our community. Lou and Civil Rights movement in the 60's and 70's, and a member of the Mexican American Edu- June Lorch epitomize community leadership marching with Cesar Chavez and the Farm cators Association, Planned Parenthood, His- and awareness, and should be recognized for Workers Union. panic Concilio of San Mateo County, the Child their contributions. Josue Hoyos began his teaching career in Care Coordinating Council, the Daly City/ f 1965 at Ridgeview Junior High School in Napa Colma Chamber of Commerce, the Hispanic where he was appointed to a faculty group to Chamber of Commerce and the Latino Lead- THE GLACIER BAY NATIONAL develop a team teaching approach to World ership Council of San Mateo County. PARK BOUNDARY ADJUSTMENT History, a major innovation in the teaching of Throughout his distinguished career, Josue ACT OF 1998 history at that time. He was appointed Director Hoyos has earned the respect and admiration of Adult Basic Education at Napa College in of his colleagues and peers and has done the HON. DON YOUNG 1969 and devoted himself to teaching ESL in utmost to improve the educational system. He OF ALASKA the fields to farm workers, serving as a liaison has touched the lives of countless students IN THE HOUSE OF REPRESENTATIVES to the Mexican American Community and and has served as an inspiration to many. I strengthening the ABE program. Josue Hoyos ask my colleagues to join me in congratulating Tuesday, May 19, 1998 developed the first EOPS program for Napa Josue Hoyos on his retirement, commending Mr. YOUNG of Alaska. Mr. Speaker, today College in 1970, began the development of a him for his tireless efforts and dedication, and I am introducing the Glacier Bay National Park Chicano Studies Curriculum and taught U.S. wishing him all the best in the years ahead. Boundary Adjustment Act of 1998. The legisla- and Chicano History. f tion is a manifestation of efforts to make the In 1972 Josue Hoyos was appointed to construction and operation of a small hydro- head the Open Education Program (EOPS) at IN CELEBRATION OF THE electric facility near the city of Gustavus, Alas- Skyline College. He was instrumental in form- DENNISON RAILROAD DEPOT MU- ka, possible through a land exchange. The ing a Traveling Seminar to visit community SEUM AND EAST OHIO GAS hydro project would be constructed and oper- colleges in California to learn about Learning ated by Gustavus Electric Company, and is in- Centers for Developmental Education. The re- HON. ROBERT W. NEY tended to benefit the city's residents by provid- sult of the Traveling Seminar and the propos- OF OHIO ing a cheap source of electricity as an alter- als which were written followed the plan for IN THE HOUSE OF REPRESENTATIVES native to using diesel-powered generators. the Learning Center developed at Skyline Col- Tuesday, May 19, 1998 The project could also supply low-cost power lege. Josue Hoyos was also the first Special Mr. NEY. Mr. Speaker, I commend the fol- to the National Park Service facilities in Gla- Program and Services Dean at Skyline. lowing article to my colleagues: cier Bay National Park. Josue Hoyos was appointed Dean of Stu- The Dennison Railroad Depot Museum and An Act of Congress is necessary to allow dents at CanÄada College in 1977, where he East Ohio Gas will celebrate on May 21, 1998, the development of this hydro project. The developed a School Relations Program and the Ribbon Cutting Ceremony and Preview project location is within designated wilderness continued to work closely with the community Opening in celebration of the East Ohio Gas of Glacier Bay National Park. Current law gov- and legislative bodies in the interest of the Centennial Exhibit titled ``A century of Service erning wilderness areas does not permit such College. Built on Trust.'' While Dean of Special Programs and Serv- construction and operation of hydro power fa- This exhibit is a traveling exhibit prepared ices at College of San Mateo in 1980, Josue cilities. The legislation I am introducing will by the Ohio Historical Society and will be mak- Hoyos was the operations administrator of the provide for a land exchange in which the ap- ing its debut in the museum's new Keystone first child care center in the San Mateo Com- propriate lands where the project is located Exhibition Hall. This is an honor for both the munity College District and established the are transferred to the State of Alaska, and the Dennison Railroad Depot Museum and East successful Parent's Night Program and Serv- Park Service acquires State lands of equal Ohio Gas. I am extremely proud to represent ices. value to compensate. Once the state acquires both companies and wish them the best of Josue Hoyos served in the first U.C. Berke- its lands under the exchange, construction of luck in their future endeavors. I know this will ley Community College Council in the early the facility will be possible. prove to be very successful. 1980's which developed processes to ease To reflect an understanding among the par- Mr. Speaker, I ask that my colleagues join the tension between the University of Califor- ties to this exchange, this legislation requires me in congratulating the Dennison Railroad nia system and Community Colleges, and to that the proper environmental and economic Depot Museum and East Ohio Gas. The increase the number of transfers to U.C. As a analyses and licensing procedures of the Fed- growth and economic opportunity they have result of the Council, several community col- eral Energy Regulatory Commission be fol- brought to the Ohio Valley is to be com- leges implemented the U.C. Guaranteed En- lowed prior to any transfer of lands. This stipu- mended. I wish both companies continued rollment Program or U.C. Scholars program lation assures the integrity of the lands and success and prosperity. for graduating high school seniors who were wildlife will be maintained before construction f of the project may begin. In addition, the bill eligible to be admitted to U.C., but because of requires an exchange that is of equal value to space limitation were not accepted. The Uni- CONGRATULATIONS TO THE the State and the federal government, and a versity guaranteed their admission as juniors if SPRECKELS SUGAR CO. ``no net loss'' of wilderness acreage. they went to selected community college that The major provisions of this bill were nego- had agreements with U.C. HON. GEORGE P. RADANOVICH tiated by people most directly affected by the In 1989 Josue Hoyos was appointed Vice OF CALIFORNIA President for Student Services at Skyline Col- land exchange. It is therefore a local solution IN THE HOUSE OF REPRESENTATIVES to a local problem. lege. He developed and implemented the Col- Tuesday, May 19, 1998 f lege's first Security Department, chaired the committee that developed the Student Equity Mr. RADANOVICH. Mr. Speaker, I rise TRIBUTE TO JOSUE HOYOS Plan, one out of eleven Community College today to congratulate Spreckels Sugar Com- Plans that were approved out of 107 colleges, pany as they celebrate their centennial anni- HON. ANNA G. ESHOO developed the Incident Command System for versary. The Spreckels family has created an OF CALIFORNIA disaster preparedness, initiated the planning important sugar company with the kind of hard IN THE HOUSE OF REPRESENTATIVES process for the Student Services Center and work and determination it takes to succeed in led the development of Skyline College's first the business world. This family-owned busi- Tuesday, May 19, 1998 Children's Center. ness has made a tremendous impact on both Ms. ESHOO. Mr. Speaker, I rise to honor Josue Hoyos has served on numerous the business and agricultural community. Their Josue Hoyos, Vice-President of Skyline Col- Community College Committees developing efforts in the sugar industry, combined with lege in San Mateo County, upon his retirement school policies. In addition, he has been an years of exceptional service, make the after 33 years of dedicated service to edu- active participant in community organizations Spreckels Sugar Company deserving of this cation. including the Napa City Planning Commission recognition. Josue Hoyos has always taken pride in where he was instrumental in pushing through Sugar and sugar beet history run deep in commitment to his country and to others, as the first low income housing plans in 1970, the annals of California. The first successful May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E885 sugar beet processing plant in California was mouth Middle School Annual Field Trip to of Texas is trying to establish in the town of built in 1870 in Alvarado. The second plant Washington, DC. Every year a group of stu- Sierra Blanca, Texas, and express their dis- was built in Watsonville in 1888. The dents from the school are taken to the capital agreement, concern and disapproval of the decisions, adopted and followed until now by Watsonville plant was eventually dismantled to have a tour. A number of people put a great the Government of the United States of and became part of the world's largest beet deal of time and effort into organizing this trip. America, which favor installation of dumps processing plant of its time. This plant, built by In fact these same dedicated individuals have on the southern border with Mexico, without Claus Spreckels, was the beginning of been making this trip for over twenty years. I taking into account the potential negative Spreckels Sugar Company. The plant was would like to acknowledge these people for impact that such decisions can have on built in the town bearing the Spreckels' family the work they have done. Richard Munch, human health and the environment in com- munities located on both sides of the border. name in the fertile Salinas Valley. Beverly Tavares, Paul Fuller, Andrew SECOND.—The Joint Committees of the Claus Spreckels died nine years after the Schlachter, Harold Weymouth, Beverly Chamber of Deputies have conducted an eval- opening of the Spreckels factory. At this point Mankofsky, Jackie Shearman, Heather Baker. uation of available information on this dump his sons, John D. and A.B. Spreckels, took the Without their constant help and support the project, the result of which shows that its reins of the company. They followed in the trip would not take place. operation would entail potential adverse im- footsteps of their father and planned the ex- The trip enables young students to see the pacts. THIRD.—The Joint Committees of the pansion of the Spreckels Sugar Company to Capital up close and they learn a great deal Chamber of Deputies kindly request that the meet the sugar requirements of California's of how the government works. It is important Office of the Secretary of Foreign Relations rapidly growing population. In time, they ex- that our young people get to see for them- transmit to the Government of the United panded to sell sugar to both the East and selves the legislative process. They get a tour States of America the Chamber of Deputies West Coasts. of the Capital which goes through all aspects complete rejection of the construction and The Mendota plant, where Spreckels' 100- of the legislature. They are able to learn the operation of a radioactive waste dump in Si- erra Blanca, Texas. year celebration is being held, was the past procedures of Congress and they get a taste FOURTH.—The Chamber of Deputies pre- plant built in California, in 1963. of how the process functions. This is a very sents to the Office of the Secretary of For- Historically, the Mendota factory has oper- educational tour as these students are able to eign Relations the possibility of considering ated from the time fields dried in the spring hear the history of the nation and the capital. the formulation of the following proposals to (March or April) until the ``spring crop'' is har- They go to Congressional offices, are shown the Government of the United States of vested. Following a short shutdown in June, through the Capitol and see the House in ac- America. (a) Insist on the relocation of the Sierra the factory is restarted in July and March tion. Blanca project to a site located outside the through October without a shutdown, produc- I believe that it is an important aspect of our 100 kilometers of the border zone. ing over 2,000,000 cwt. sugar per year, proc- democracy that people can come and see the (b) State the disapproval of the Chamber of essing approximately 735,000 tons of sugar political process themselves. Many members Deputies with respect to decisions of the beets. of the populace never get a chance to do this. United States of America which favor the in- The San Joaquin Valley has been the pri- Often the legislative process seems far re- stallation of hazardous and radioactive waste dumps within the border strip. mary source of the Mendota factory's beet moved from the average persons everyday (c) Begin negotiation of an amendment to supply, with this exception of several occa- life. It is often seen as a process that they the La Paz Agreement in which the installa- sions when beets were shipped by rail from cannot have any part in. We need to educate tion and operation of hazardous and radio- the Imperial Valley. Additionally, the San Joa- people in what we do. To show them that we active waste dumps are explicitly prohibited quin Valley has been the source of beets for are here to serve them and that we are an- in the 100-kilometer strip of the common the other California Spreckels factories during border. swerable to them. This is how our democracy (d) Demonstrate to the members of the the summer months. Millions of tons of beets works and young people should be aware of U.S. House of Representatives the desire of have been shipped over the years by rail and these principles. the Chamber of Deputies that they vote truck to Spreckels, California (near Salinas), The Capital tour gives a taste of history of against the Compact Law which authorizes Manteca, and Woodland and to this day are the United States. I believe that these young the dumping of wastes among the states of still being shipped to Tracy and Woodland. people need to learn about their history and Texas, Maine and Vermont, by virtue of [the In January 1996, Spreckels Sugar Company the work that our great leaders have put in to fact that] their approval signifies notable was purchased by Imperial Holly Corporation. support for the construction and operation of creating the nation we have today. It is the a radioactive waste dump in Sierra Blanca, The Woodland, Tracy, Mendota, and Brawley people that I mentioned above from Ports- Texas, and represents a violation of the spir- plants in California are now part of the Impe- mouth Middle School who make this trip pos- it of the La Paz Agreement. rial Holly family and are known as Spreckels sible. They have over the years acted beyond (e) Include the topic of radioactive and Sugar Company, a division of Holly Sugar the call of duty to make these trips work. I hazardous waste dumps on the agenda of the Corporation. Imperial's purchase of Savannah would like to acknowledge their efforts and next meeting of the Mexico-United States Sugar in October of last year makes Spreckels note that I appreciate the work they do to Binational Commission to negotiate the sus- a part of the largest sugar refiner, processor, pension of dump projects in the 100-kilo- show a new generation of young people our meter strip of the border. and marketer in the United States. democratic process. FIFTH.—The Joint Committees of the Mr. Speaker, it is with great honor that I f Chamber of Deputies and the Committee of congratulate Spreckels Sugar Company as International Affairs are instructed: they celebrate their centennial anniversary. I APPOINTMENT OF CONFEREES ON (a) To include this matter on the agenda of applaud their years of exceptional service and H.R. 629, TEXAS LOW—LEVEL the next Mexico-United States Inter- commitment to the Sugar Beet industry. RADIO ACTIVE WASTE DISPOSAL parliamentary Meeting. COMPACT CONSENT ACT (b) That the Ecology and Environment, Spreckels shows just how successful a small Border Issues and Foreign Relations Com- family owned business can become with hard mittees of the Chamber of Deputies propose work and determination. I ask my colleagues SPEECH OF that the Governors of the border states of to join me in wishing the Spreckels Sugar the Mexican Republic and their respective HON. SILVESTRE REYES Congresses be informed about projects at- Company many more years of success. OF TEXAS f tempting to be established in the border IN THE HOUSE OF REPRESENTATIVES zone, exhorting them to define a joint strat- PORTSMOUTH MIDDLE SCHOOL Tuesday, May 12, 1998 egy so that dumps not be implemented in the ANNUAL FIELD TRIP TO WASH- 100-kilometer border strip, and requesting Mr. REYES. Mr. Speaker, the following res- their support of the present Report. INGTON, D.C. olution was submitted in Spanish for the (c) To form a plural commission, made up RECORD following Mr. Reyes' remarks on H.R. of deputies [who are] members of the Joint HON. PATRICK J. KENNEDY 629 on Thursday, May 14. This is the English Committees to meet with federal, local and legislative authorities of the United States OF RHODE ISLAND translation to be inserted in the RECORD. of America to deal with the Sierra Blanca IN THE HOUSE OF REPRESENTATIVES FIRST.—The Joint Committees on Ecology case and demonstrate their rejection of Tuesday, May 19, 1998 and the Environment, Border Issues and For- same. eign Relations of the Chamber of Deputies SIXTH.—The Joint Committees express Mr. KENNEDY of Rhode Island. Mr. Speak- reiterate their complete rejection of the that the present case constitutes a valuable er, I want to take this opportunity to praise the planning, construction and operation of the opportunity for both countries to show their hard work of those who organized the Ports- Radioactive Waste Dump that the Governor will, responsibility and ability to cooperate E886 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 in dealing with similar matters of common dividuals of our community. Herb and Sheila ment positions. From 1968 to 1973, he was interest. Frankel are dedicated members of Shomrei Program Manager for the Airborne Surveil- SEVENTH.—To the effect that public opin- Torah Synagogue and role model for the West lance and Control System on the EC±121T ion has greater awareness of the subject, it is suggested that a document be drawn up, to San Fernando Valley Jewish community. aircraft. He was assigned special duties during be disseminated by the national and inter- f 1973 that involved detailed preparation of the national communication media, in which the operations and logistics plan for the Sinai IN RECOGNITION OF JOHN J. problems and current situation of the project Field Mission Program. From 1973 to 1978, he MURRAY in question are expressed. was the Integrated Logistics Support Program EIGHTH.—The Joint Committees of the Manager for the E±4A modification effort. Chamber of Deputies request that this report HON. RALPH M. HALL From 1978 to 1980, he served as the Program be sent to the Honorable Chamber of Sen- OF TEXAS ators so that, within the framework of the Manager for the 4950th Test Wing Class II faculties conferred on it by the Political IN THE HOUSE OF REPRESENTATIVES Modification Services Program. Constitution of the United Mexican States, Tuesday, May 19, 1998 Mr. Murray's management positions ranged it proposes the actions necessary for the re- from very high technologies with the Advanced port’s implementation. Mr. HALL. Mr. Speaker, it is with a great Given in the Committee Room of the San deal of personal gratification that I pay tribute Research Project Agency, where he success- Lazaro Legislative Palace, April 27, 1998. to the major accomplishments over the past fully managed the Multitude Chip Module Pro- gram and the Applied Specific Electronic Mod- f six decades of an individual who not only dedicated his military career to serving and ule Program during the 1990 to 1995 time TRIBUTE TO HERB AND SHEILA honoring our country, but also continued that frame, to very large and complex aircraft pro- FRANKEL service in his leadership positions at grams during the 1980s. His management ex- RaytheonÐformerly EÐSystems. On 29 May perience has also included service as the Ma- HON. BRAD SHERMAN 1998, Mr. John J. Murray will retire from terial Program Manager for the E±4B Ad- OF CALIFORNIA Raytheon Systems Company in Greenville, vanced Airborne Command Post Program. For TX, with 31 years of dedicated service on pro- IN THE HOUSE OF REPRESENTATIVES 19 of those years, Mr. Murray was honored by grams that contributed to the strength of our being appointed consecutively to serve as Tuesday, May 19, 1998 national defense and commercial welfare. chairman of the Employees' Political Action Mr. SHERMAN. Mr. Speaker, I rise today to Mr. Murray was born on January 6, 1922, in Committee (PAC). The Greenville PAC was pay tribute to Herb and Sheila Frankel for their Brooklyn, New York. He attended school there organized in September 1976, with a mission efforts to improve the quality of life in our com- and graduated in 1939. In 1957, he received to encourage Greenville employees to be bet- munity. a Bachelor of Science in Political Science from ter informed on federal, state, and local poli- Although Herb and Sheila both spent their St. Joseph's College in Pennsylvania while cies and action and, intensify the employees' childhoods in Chicago and the families knew teaching ROTC. That same year he graduated and company's networking effort with elected each other, the two met and married a year from the United States Air Force Command representatives. During this 19-year chairman later in Los Angeles. With Herb having already and Staff College at Maxwell Air Force Base, position, he inspired continued communica- served in the US Army and working in the Alabama. Mr. Murray retired from the United tions among members of our U.S. Congress, family retail business and Sheila working as a Staes Air Force in 1967. He continued his the PAC, and the population of Hunt County, dental assistant, the family moved to the San education in 1977 by earning his Master's of Texas by hosting informative political forums Fernando Valley in 1974 and began to focus Business Administration at the University of at Greenville. their energy on Jewish community involve- Dallas in Texas. ment. Mr. Murray served 24 years as an officer in On election years, people running for local, The Talmud states, ``He who gives charity the Air Force, retiring as a Lieutenant Colonel state, and national elected positions were in- serves the Holy One daily, and sanctifies his and Combat Rated Pilot with more than 5,000 vited to speak giving the employees a first name.'' The Jewish community of the Shomrei flying hours. His military career earned him the hand knowledge of each candidate's opinions. Torah Synagogue and the San Fernando Val- Air Medal with two oak leaf clusters and nu- Those elected were invited back to brief PAC ley have appreciated and enjoyed the charity merous other military service medals. During members of events in their respective jurisdic- of the Frankels for many years, as the devo- his Air Force Career, he served in a variety of tions. Some of the special guests over the tion of their energies have given the commu- operational and staff positions. In some of his past 19 years include: Governors Bill nity the strength to expand, and set into mo- early military assignments, between 1944 and Clements and George W. Bush; U.S. Senators tion programs that will not only benefit today's 1960, he served in several operational and ad- Lloyd Bentsen, Phil Gramm, Kay Bailey members, but also the next generation. ministrative positions and became qualified in Hutchison, John Tower; U.S. Representatives The Frankel family has devoted a large 20 different aircraft. Dick Armey, Joe Barton, Jim Chapman, Sam amount of time to the Jewish communities of Mr. Murray started his career flying ``The Hall, Sam Johnson, Max Sandlin, and myself. Temple Beth Ami and Shomrei Torah Syna- Hump'' in the China-Burma theater of WW II Mr. Murray has briefed influential people in gogue. Their efforts illuminate a zealous deter- in C±47 aircraft for the U.S. Army Air Corps. Washington on Raytheon Systems Com- mination to contribute to and support a grow- He then signed on as a Base Legal Officer at panyÐGreenville programs and shaped fund- ing Jewish community. Mitchell Field, New York and tried about 400 ing for many of the national security aircraft. Herb has held many leadership offices such cases. Mr. Murray served as Commander of a He represented the interest of Greenville em- as Financial Secretary, Vice President and a Tactical Reconnaissance Squadron from 1960 ployees, the company, and the American free three year term as President of Temple Beth until 1964. From 1064 through 1967, he was enterprise system. assigned as Operational Plans Officer, Head- Ami. He also co-chaired the merger committee Mr. Murray's career at Raytheon has been quarters North American Air Defense Com- of Temple Bet Ami and Congregation Beth one of ``can do'' and ``team spirit.'' He has mand. In this capacity, he was specifically re- Kodesh when the two Jewish communities been a leader, encourager, friend to all, and joined to form Shomrei Torah Synagogue. sponsible for planning the systems require- an anchor in times of difficulty. He has always Currently, Herb is the co-chairperson of the ments, operational employment concepts, and been ready to contribute in whatever capacity High Holy Days seating committee. force levels, as well as performing operational was needed and his range of experience has Sheila has served as an active member of analyses of the Improved Manned Interceptor been a benefit to many younger employees. the Sisterhood of Shomrei Torah Synagogue and Airborne Warning and Control System Mr. Murray is a native of New York as is his on the Donor Committee and as the chair- Programs. Mr. Murray continues to be a mem- wife, the former Terry Casey. They moved to person of numerous Donor luncheons. ber of the Air Force Association and has been Herb and Sheila have had three beautiful a member of the Greenville Flying club for Texas in 1967 and are 31-year residents of children, Paul, Laurie and Adam. Unfortu- many years. Greenville, Texas. They have three children: nately, Laurie was lost to cancer in 1995. Mr. Murray began his remarkable career two daughters, Laura Murray and Nancy Sheila's sister Roberta and Brother-in-law Ron with Raytheon System CompanyÐGreenville, Feuille; and one son Bill Murray. They also Katz are also members of Shomrei Torah Syn- then known as LTV Electro Systems, in 1967. have six grandchildren. agogue. His extensive 31 years of experience at Mr. Speaker, when we adjourn today's ses- Mr. Speaker, distinguished colleagues, Raytheon Systems CompanyÐGreenville has sionÐlet us do so in honor and respect for please join me in honoring two outstanding in- included a wide variety of program manage- this great American. May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E887 TRIBUTE TO ED WEINSTEIN combinations of letters, symbols, marks or The legislation will also prohibit goods that dates that allow manufacturers to ``fingerprint'' have undergone decoding from entering the HON. E. CLAY SHAW, JR. each product with vital production data, includ- country, prohibit the manufacture and distribu- OF FLORIDA ing the batch number, the date and place of tion of devices primarily used to alter or re- IN THE HOUSE OF REPRESENTATIVES manufacture, and the expiration date. These move product identification codes, and allow codes also enable manufacturers to trace the the seizure of decoded goods and decoding Tuesday, May 19, 1998 date and destination of shipments, if needed. devices. It will require offenders to pay mone- Mr. SHAW. Mr. Speaker, in just a few Product codes play a critical role in the reg- tary damages and litigation costs, and treble months, the accounting profession will bid ulation of goods and services. For example, damages in the event of repeal violations. The farewell to one of its illustrious members. Ed when problems arise over drugs or medical bill will also impose criminal sanctions, includ- Weinstein epitomizes what CPAs stand for: devices regulated by the Food and Drug Ad- ing fines and imprisonment for violators who honesty, integrity, and forthrightness in all ministration, the product codes play a vital role are knowingly engaged in decoding violations. matters. Ed majored in accounting at Colum- in conducting successful recalls. Similarly, the The bill would not require product codes, bia University and earned his MBA from the Consumer Product Safety Commission and prevent decoding by authorized manufactur- Wharton School. He then joined Touche Ross other regulators rely on product codes to con- ers, or prohibit decoding by consumers, It is a and Co., and is currently a senior partner in duct recalls of automobiles, dangerous toys the Deloitte & Touche firm. He has spent most and other items that pose safety hazards. good approach designed to strengthen the of his professional career in New York and Product codes are frequently used by law tools of law enforcement, provide greater se- Pennsylvania, and during part of that time he enforcement to conduct criminal investigations curity for the manufacturers or products, and managed the firm's Philadelphia office. as well. These codes have been used to pin- most importantly, provide consumers with im- But Ed has done more than serve his cli- point the location and sometimes the identity proved safety from tampered or counterfeit ents; he serves his community and gives self- of criminals. Recently, product codes aided in goods. I urge my colleagues to join me in sup- lessly of his time and talents to many worthy the investigation of terrorist acts, including the porting passage of this bill, which will go a and deserving causes. He is currently involved bombing of Olympic Park in Atlanta and the long way toward closing the final gap in fed- in the New York City Police Foundation, the bombing of Pan Am Flight 103 over Lockerbie, eral law enforcement tools to protect consum- Cooper-Hewitt National Museum of Design, Scotland. ers and the products they enjoy. and the New York City Public/Private Initia- At the same time, manufacturers have lim- tives Commission. He is a Public Member of ited weapons to prevent unscrupulous distribu- f the New York City Rent Guidelines Board and tors from removing the coding to divert prod- is actively involved in Operation Exodus, the ucts to unauthorized retailers or place fake THE AMERICAN HOMEOWNERSHIP United Israel Appeal. codes on counterfeit products. For example, ACT OF 1998 Fittingly, Ed has been acknowledged by his one diverter placed genuine, but outdated, la- peers for his professional and civic activities. bels of brand-name baby formula on sub- The New York Society of CPAs awarded Ed standard baby formula and resold the product HON. RICK LAZIO ``The Arthur J. Dixon Public Service Award'' to retailers. Infants who were fed the formula OF NEW YORK and he received the New York City Police De- suffered from rashes and seizures. partment's Certificate of Commendation of We cannot take the chance of any baby IN THE HOUSE OF REPRESENTATIVES 1994. being harmed by infant formula or any other Tuesday, May 19, 1998 As a fellow CPA, I know the accounting pro- product that might have been defaced, de- fession will surely miss him, but I also know coded or otherwise tampered with. FDA en- Mr. LAZIO of New York. Mr. Speaker, today that Ed intends to continue many of the impor- forcement of current law has been vigilant and I am proud to introduce with my colleagues tant community activities in which he is cur- thorough, but this potentially serious problem the ``American Homeownership Act of 1998.'' rently involved. must be dealt will even more effectively as For most Americans, the most important finan- On behalf of my colleagues, I extend to Ed counterfeiters and illicit distributors utilize the cial investment we make in our lives is the and his wonderful wife, Sandra, our very best advanced technologies of the digital age in purchase of a home. Homeownership creates wishes for a long and well-deserved retire- their crimes. a sense of community and common good, ment. Manufacturers have attempted, at great ex- binding neighbors together. Homeownership is f pense and with little success, to prevent de- the cornerstone of strong families, prosperous coding through new technologies designed to communities and a dynamic nation, and this INTRODUCTION OF THE TRADE- create ``invisible'' codes, incapable of detection important legislation is designed to provide all MARK ANTI-COUNTERFEITING or removal. However, decoders have proven families great opportunities to attain and pre- ACT OF 1998 to be equally diligent and sophisticated in their serve the American dream of owning their own efforts to identify and defeat new coding tech- home. HON. BOB GOODLATTE niques. We therefore must provide manufac- This Act will reduce barriers to the produc- OF VIRGINIA turers with the appropriate legal tools to pro- tion of affordable housing, protect our Nation's IN THE HOUSE OF REPRESENTATIVES tect their coding systems in order for them to protect the health and safety of American con- senior citizens when they obtain reverse mort- Tuesday, May 19, 1998 sumers. gages, and enable those who receive federal Mr. GOODLATTE. Mr. Speaker, I rise today Currently, federal law does not adequately housing assistance, such as public housing or to introduce the Trademark Anticounterfeiting address many of the common methods of de- Section 8 housing, to use these funds in cre- Act of 1998. This important legislation will pro- coding products and only applies to a limited ative ways to achieve homeownership. This vide law enforcement the tools they need to category of consumer products, including bill contains important provisions to assist self- combat the growing crime of altering or re- pharmaceuticals, medical devices and specific help housing providers, such as Habitat for moving product identification codes from foods. Moreover, current law only applies if Humanity, in achieving their goals of helping goods and packaging. This bill will also pro- the decoder exhibits criminal intent to harm our poor citizens move into their own homes. vide manufacturers and consumers with civil the consumer. It does not address the vast The American Homeownership Act provides and criminal remedies to fight those counter- majority of decoding cases which are moti- increased flexibility to State and local govern- feiters and illicit distributors of goods with al- vated by economic considerations, but may ul- ments to leverage federal housing funds, pro- tered or removed product codes. Finally, this timately result in harm to the consumer. vided through the HOME Program, to attain bill will protect consumers from the possible My legislation will provide federal measures higher levels of homeownership in their areas health risks that so often accompany tam- which will further discourage tampering and through local homeownership initiatives. This pered goods. protect the ability of manufacturers to imple- bill contains provisions to enhance and im- Most of us think of UPC codes when we ment successful recalls and trace product prove the manufactured housing industry. think of product identification codesÐthat when needed. It would prohibit the alteration Moreover, this legislation seeks to address block of black lines and numbers on the backs or removal of product identification codes on concerns raised by Native American groups of cans and other containers. However, prod- goods or packaging for sale in interstate or who fear that federal bureaucratic procedures uct ID codes are much more than simple UPC foreign commerce, including those held in will hinder their efforts to increase home- codes. Product ID codes can include various areas where decoding frequently occurs. ownership on Indian lands. E888 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 BARRIERS TO AFFORDABLE HOUSING vaulted ceilings and state of the art appli- es, and a member of the Board of Directors of We must eliminate the bureaucratic red tape ances. They are also very affordable for more the United Way of Genesee County, Reverend and excessive regulation that stifles home- than 18 million AmericansÐ$40,000 to Burgess has been a highly effective leader. ownership. Unnecessary governmental regula- $70,000 for a new, multi-sectioned manufac- His dedication to ensuring that everyone is af- tion adds 20 to 35 percent, thousands of dol- tured home, compared to $158,000 for the av- forded a quality education is evidenced by his lars, to the cost of a new home according to erage new home. tenure on the Advisory Committee for the Mott the National Association of Home Builders. I am pleased to join with my colleagues BOB Adult High School Continuing Education Pro- I am pleased to join with my good friends NEY, KEN CALVERT, DAVID MCINTOSH and oth- gram. and colleagues, TOM CAMPBELL, JACK ers in including legislation we previously intro- Reverend Burgess's tireless service and METCALF and JON FOX to incorporate legisla- duced to reform and modernize the Federal deeds have earned him recognition from var- tion Mr. CAMPBELL has previously introduced manufactured housing program. ious groups such as the Flint Optimist Inter- to reduce barriers to affordable housing. The American Homeownership Act of 1998 national, Western Michigan University's Black The Act requires all Federal agencies to in- promotes the quality, safety and affordability of Studies Department, the State of Michigan clude a housing impact analysis with any pro- manufactured homes by ensuring uniform House of Representatives, and the Flint Chap- posed regulations to certify such regulations standards and codes for construction across ter of the NAACP, to name a few. have no significant negative impact on the the country. The legislation improves the Fed- Mr. Speaker, it is with great pride that I ask availability of affordable housing. Local non- eral management of the program by establish- my colleagues in the House of Representa- profits and community development groups ing a consensus committee of consumers, in- tives to join me in saluting an inspirational in- are given the opportunity to offer alternatives dustry experts and government officials to ad- dividual, Reverend Braxton Vincent Burgess. if it is found that the rule would have a delete- vise HUD on regulation enforcement. He deserves our thanks for a lifelong commit- rious effect on affordable housing. HOUSING ON INDIAN LANDS ment to making our community a much better REVERSE MORTGAGES FOR SENIORS I am pleased to join with my colleague Mr. place. We must preserve and protect opportunities REDMOND of New Mexico to include in this bill f an Indian Lands Status Commission which will for senior citizens to remain in their own TRIBUTE TO HERB AND SHIRLEY develop recommended approaches to improv- homes near their families and friends. The CANE American Homeownership Act makes the ing how the Bureau of Indian Affairs conducts FHA-insured reverse mortgage program per- title reviews in connection with the sale of In- manent. A reverse mortgage offers sometimes dian lands. Receipt of a certificate from the HON. BRAD SHERMAN the only tool to for ``house-rich'', ``cash-poor'' Bureau of Indian Affairs is a prerequisite to OF CALIFORNIA seniors to remain in their own homes by pro- any sales transaction on Indian lands, and the IN THE HOUSE OF REPRESENTATIVES viding extra income for living and medial ex- current procedure is overly burdensome and Tuesday, May 19, 1998 penses or crucial home repairs. We also will presents a regulatory barrier to increasing Mr. SHERMAN. Mr. Speaker, I rise today to require HUD to prohibit financial entities from homeownership on Indian lands. This Com- pay tribute to Herb and Shirley Cane for their charging senior extortionate fees when obtain- mission is charged with providing Congress devoted efforts to improve the quality of life in ing a reverse mortgage in response to allega- with methods to address these concerns. our community. tions to fraud and abuse within the program Mr. Speaker, this homeownership legislation Herb and Shirley have played an instrumen- last year. recognizes that the strength of our Nation lies tal role in leading the Jewish community of the HOMEOWNERSHIP OPTION IN FEDERALLY-ASSISTED in its individual communities, and that federal government policy should be encouraging and San Fernando Valley. Their continued commu- HOUSING nity activism demonstrates a commitment to The American Homeownership Act of 1998 fostering, instead of hindering, the efforts of lo- calities and individuals to achieve the Amer- the further enhancement of the organization to will allow families receiving rental voucher as- which they have already dedicated so much sistance under the Section 8 program to use ican dream of homeownership. f valuable time and effort. those funds in a properly structured home- Herb Cane's rentless and unselfish dedica- ownership program that would help them buy HONORING REVEREND BRAXTON tion to the Jewish community has set the foun- their own homes. Residents and public hous- BURGESS dation for many growing Jewish youth pro- ing authorities are authorized to use funds grams. After his term as the first president of normally used to pay rents for either downpay- HON. DALE E. KILDEE the Kadima Hebrew Academy for two and a ment assistance or toward mortgage pay- half years, Herb headed the committee that ments. OF MICHIGAN IN THE HOUSE OF REPRESENTATIVES would establish Kadima as an independent HOME, HOME LOAN GUARANTEE PROGRAM, community school. In addition to this effort, he HOMEOWNERSHIP ZONES Tuesday, May 19, 1998 was also greatly committed to the fiscal stabil- The most innovative tools for expanding Mr. KILDEE. Mr. Speaker, it is an honor to ity of the young institution. Herb has served on homeownership opportunities are being cre- rise before you today to recognize the the advisory and grant selection committee of ated at the state and local level. The American achievements of Reverend Braxton Vincent the Ann Zatz Memorial Fund and the B'nai Homeownership Act creates a HOME Loan Burgess of Flint, Michigan. On Saturday, May Brith Youth Organization. This organization Guarantee program to allow communities to 30, the congregation of Flint's Quinn Chapel has provided yearly scholarships for youth tap into future HOME grants for affordable African Methodist Episcopal Church will honor leadership training in Israel. housing development. HOME is one of the Reverend Burgess for the many contributions Shirley has also shown a great commitment most successful Federal block grant programs, he has made to our community. to expanding the Jewish community in the San and is designed to create affordable housing Reverend Burgess earned his Bachelor of Fernando Valley. She played an integral role for low-income families. The Act also provides Science degree from Wilberforce University in in founding the Honor Chapter of B'nai Brith grant authority for use in ``Homeownership Ohio and continued his education at Payne Women in Canoga Park and presided over the Zones''Ðdesignated areas where large scale Theological Seminary where he received his Honor Chapter for a period. Shirley is a past development projects are designed to reclaim Master's of Divinity. To continue his mission of president of Kidney Infection Needs Detection distressed neighborhoods by creating home- peace and social change, he received a di- (K.I.N.D.) and served on the Cedars-Sinai Liai- ownership opportunities for low and moderate ploma in urban ministry from the Urban Train- son Council. In addition to these roles, she income families. Flexibility is also granted in ing Center of Chicago and served as a mem- has also held executive positions on the board defining metropolitan areas to allow greater ber of President Carter's White House Council of Congregation Beth Kodesh, the Congrega- homeownership opportunities for suburbs af- on Arms Control. tion's Sisterhood and served as President of fected by the high home prices of nearby cit- In 1967, Reverend Burgess was ordained Friends of Kadima. Shirley is currently serving ies. as an Itinerant Elder in the African Methodist on Kadima Hebrew Academy's Board of Direc- MANUFACTURED HOUSING Episcopal Church. Since that time he has tors. As a tribute for her hard work, Congrega- More and more families are living in manu- committed his life's work to providing spiritual tion Beth Kodesh awarded her with the Sister- factured homes than ever before. The days of guidance and counsel to countless individuals. hood Chayeh Olam Award. trailer parks filled with metallic shoebox- As a member of the Board of Directors of the Married for thirty-five years, Herb and Shir- shaped ``homes'' are gone. Many of today's Urban League of Flint, Past President of the ley are the founders and main supporters of manufactured homes are multi-sectioned with Greater Flint Association of Christian Church- the Stacey Cane Youth Theater, named after May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E889 their daughter whom they lost to breast can- When the office of U.S. Attorney opened, it Mr. Speaker, I am honored today to pay cer. Their continued support of the Shomrei was a pleasure for me to recommend him for tribute to this outstanding senior citizen from Torah Synagogue is greatly appreciated as it this position. There had been much turmoil in the Fourth District of Texas. Mrs. Lois Nelson continues to successfully expand into the next this office, and everyone who worked with Bob is an inspiration and role model to all Ameri- century. Genzman while he was U.S. Attorney says he cans. Mr. Speaker, distinguished colleagues, settled the office down and ran it with great f please join me in paying tribute to Herb and professionalism. Shirley Cane. They have shown an unwaver- Above all else, Bob Genzman was a family WESTHILL CHOIR WINS NORTH ing commitment to the community and de- man. He is survived by his wife, Martha; his 5 AMERICAN MUSIC FESTIVAL serve our recognition and praise. year old twin children, Rob and Jackie; and f his parents, Catherine and Glenn Genzman. HON. JAMES T. WALSH f OF NEW YORK ROBERT W. GENZMAN IN IN THE HOUSE OF REPRESENTATIVES MEMORIAM IN RECOGNITION OF LOIS NELSON Tuesday, May 19, 1998 HON. BILL McCOLLUM HON. RALPH M. HALL Mr. WALSH. Mr. Speaker, it is my privilege OF TEXAS OF FLORIDA today to recognize publicly the accomplish- IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES ments of scholastic musicians and singers Tuesday, May 19, 1998 across the United States, and in particular Tuesday, May 19, 1998 Mr. HALL of Texas. Mr. Speaker, I rise some of my constituents in Central New Mr. McCOLLUM. Mr. Speaker, I come be- today to pay tribute to an extraordinary senior YorkÐthe winners of the North American fore this body tonight to express my deep sad- citizen from Princeton, TexasÐMrs. Lois Nel- Music Festival in New York this spring, ness over the death of Robert W. Genzman, sonÐwhose success story is worthy of rec- Westhill High School Concert Choir. one of the finest individuals I have ever know. ognition. What makes Mrs. Nelson so extraor- The choir was awarded First Place with a Bob Genzman passed away in Orlando on dinary is that she entered the workforce for Superior rating. The Westhill High School May 12, 1998. He left a legacy of public serv- the first time in 1982 at the age of 68 and has Women's Ensemble also was awarded the ice and accomplishment that will serve as an been active ever since. First Place Trophy with a Superior rating. example for many in the years to come. In 1982 Mrs. Nelson began working through Members of the Ensemble also belong to the Bob Genzman received a B.A. from the Uni- the Green Thumb program as the site man- Concert Choir. versity of Pennsylvania, an M.S. degree from ager for the Senior Citizen's Center in Prince- I want to congratulate Choral Director Wil- the London School of Economics, and in 1977 ton. As site manager, Mrs. Nelson spent liam Black for his tireless dedication and tal- a J.D. from Cornell Law School. Following law countless hours recruiting members, organiz- ented instruction. I would also ask my col- school Bob spent 2 years as staff counsel to ing activities, counseling fellow seniors and leagues to join me in saluting the participants the House Select Committee on Assassina- distributing food to those less fortunate. Seven in such school groups in every district, in tions as one of several attorneys assigned to years ago, she began her quest to fulfill a life- every state. investigate the assassination of President time dreamÐto become a librarian. Mrs. Nel- This kind of extracurricular activity nurtures Kennedy. He participated in public hearings son became an aide in both the elementary sensitivity for beauty in music and song in and wrote and edited substantial portions of and high school libraries. In this capacity, she young people. I am very proud of the pro- the Committee's final report. Later he spent applied herself to learn and master the skills grams which address such an important as- several years as a Legislative Assistant to necessary to be a successful librarian, but she pect of education and especially proud of the Congressman Bob Livingston. was still lacking one credentialÐa high school Westhill participants this year who won the From 1980 to 1983 he was Assistant United diploma. At the age of 79, Mrs. Nelson re- American Music Festival. States Attorney in Orlando. After entering the turned to the classroom and in April of 1994, They are: Michael Aquayo, Jeffrey Aldrich, private practice of law, Bob was tapped in received her GED. Jaime Arnold, Kirstin Axford, Lacey Ballard, 1987 to take a leave of absence from his law On March 1, 1995, as a result of hard work Katie Balogh, Jessica Bartle, Betsy Bartle, Nell firm and serve as Associate Minority Counsel and determination, a dream came true for Mrs. Beadling, Claire Berkery, Erin Berkery, Kath- for the Republican Members of the House Se- Nelson when she received her County Librar- erine Bernstein, Brendan Brieaddy, Megan lect Committee to Investigate Covert Arms ian, Grade 3 Certification. As a librarian for the Brody, Sarah Brody, Kelley Burkett, Melody Transactions with Iran. In this capacity he did Princeton Independent School District, Mrs. Calley, John Carpenter, Bryant Carruth, Paul a great amount of research, deposed numer- Nelson not only performed her professional Cella, Margaret Chajka, Michael Cieply, Marie ous witnesses, questioned in open hearings duties but also recruited Green Thumb appli- Connell, Heather Cutler, Jessica Diaz, Laura several of these witnesses including Secretary cants and GED students, assisted in a com- DiSerio, Hilary Donegan, Erin Dowd, Brian of Defense Caspar Weinberger, and wrote and munity green house project, and helped with Dudiak, Victoria Duffy, Jennifer Ernestine, edited substantial portions of the Committee's the school tax office. Her boundless energy Catherine Evans, Jennifer Fetter, Kristen Finn, final report and enthusiasm were never more prevalent Meghann Finerghty, Jamir Flores, Robert In early 1988 Bob Genzman was selected than in 1996, when Mrs. Nelson had open- Flynn, Casey Foreman, Megan Foreman, Erin by President Reagan to serve as United heart surgery. Within six weeks and at the age Frost, Rebecca Fullan, Jenelle Gallardo, Nich- States Attorney for the Middle District of Flor- of 81, she was back at work, fulfilling her offi- olas Gambino, Elizabeth Garofano, Manjinder ida. Appointed by President Bush shortly after cial and voluntary duties. Gill, Stephanie Grosso, Rebekah Guss, Kath- he took office, Bob was U.S. Attorney for the Mrs. Nelson's enthusiasm for life, quest for leen Guyder, Kelly Hall, Colleen Harrington, Middle District until 1993. He supervised 94 knowledge, and willingness to give of herself Cara Hart, Sheehan Hayes, Benjamin Haynes, attorneys in a 35 county district with offices in set an example for all of us. In addition to ob- Erin Hogan, Julie Howard, Juliana Ingraham, Tampa, Orlando, Jacksonville and Fort Myers. taining her GED and receiving her County Li- Kristen Ingraham, Jonathan Jackowski, During his tenure he pioneered the use of the brarian Certification, she has been active in a Lyndsay Jesmain, Joelle Kearns, Patrick federal criminal law for possession and use of variety of community service efforts. Mrs. Nel- Keeler, Elizabeth Kelly, Margaret Kelly, Jes- a firearm by a convicted felon to prosecute son has participated in the 55-Alive class, at- sica LaFex, Margaret LaFex, Allison Lang, previously convicted felons serving relatively tended Gang Awareness Inservice and Citi- Sara Lange, Meghan Lantier, Colleen Lavin, short sentences in state or county jails so as zen's Crime class and served as a Pink Lady Marie Lebro, Emily Lemanczyk, Elizabeth to get them off the streets and locked up in a for the Ladies Volunteer Auxiliary at Columbia Lemmerman, Kimberly Majewicz, Erin McCor- federal prison for a lengthy period of time. At- Medical CenterÐall after the age of 75. mick, Meghan McClees, Bryan McMahon, torney General Richard Thornburgh embraced In recognition of her exemplary achieve- Molly Michaels, Rickard Mulligan, Kelly Mur- this as a national policy under the name ``Op- ments, Mrs. Nelson was nominated for the phy, Larissa Murphy, David Mushow, Andrea eration Triggerlock.'' 1997 Outstanding Older Worker of Texas Nedoshytko, Julie Nichols, Pamela Norton, I got to know Bob Genzman quite well while award. Today I am pleased to announce Mrs. Colleen O'Brien, William O'Sullivan, Amelia I served as a member of the Iran Contra Com- Nelson's selection for Honorable Mention in Ott, Emily Ott, Jeffrey Pacelli, Jonathan Patrei, mittee. He was an excellent counsel for the this statewide search. Mrs. Nelson is living Julie Patriarco, Leah Patriarco, Jason Paussa, Committee and struck me as bright, capable, proof that life can be challenging and filled Sarah Pelligrini, Ana Pinker, Jessica Pouliot, even tempered, gracious and compassionate. with opportunity, regardless of age. John Powers, Sarah Quintana, Rebecca E890 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 Reidy, Molly Rickert, Kathleen Roche, Carolyn Tony defeated the National Boxing Association board member and serves on the executive Rolince, Jessica Roliance, Lauren Ryan, Marie champion in July of 1940, became a world ti- board of My Discovery Place where she has Sampo, Michael Scheid, Elisa Sciscioli, Kelley tleholder when he defeated World Middle- chaired three major fund raisers. At the Seymour, Daniel Silky, Kimberly Smith, Kath- weight Champion, Georgie Abrams, in 1941, Maimonides Academy she has co-chaired two erine Snyder, Jennifer Sobecki, John Sondej, and successfully defended his title against fa- Chinese Auctions and has helped out in nu- Bryan Sparkes, Elizabeth Stebbins, Carissa mous boxer, Rocky Graziano, in 1945. When merous school related projects. Stepien, Lindsay Sterbank, Jillian Stevenson, Tony retired from boxing in 1948, he left the Sandy also serves on the Board of Directors Brian Stiles, Caitlin Sullican, Calleen Sullican, profession with the distinction of fighting and of the Sephardic Educational Center, and is Matthew Tiffault, Matthew Thornton, Jamie beating every contender in the middleweight active in the UJF Sephardic Women's Divi- Toth, Elizabeth Tucker, Erica Volpe, Kathryn division during his championship reign from sion, the Bureau of Jewish Education and the Walsh, Kimberly Walsh, Maureen Walsh, Jes- 1941 through 1948 and, in the 1950s, he was Women's League of the University of Judaism sica Waters, Joseph Waters, George Welch, inducted into the World Boxing Hall of Fame. where she received the coveted Torah Fund Shannon Wiktorowicz, Cassandra Williams, Tony Zale passed away in March of last year. Award. As a supporter of the humanities and and Nathaniel Wood. The distinguished speaker at last night's the arts she has assisted the American f event was former NFL quarterback and head Friends of Israel Museum, the Smithsonian, football coach, Sam Wyche. An NFL player the Metropolitan, the Los Angeles County Mu- HANK STRAM/TONY ZALE SPORTS and coach for 27 years, Sam was one of the seum, and has been appointed Chair of the AWARD BANQUET original Cincinnati Bengals in 1968, and he Levy Sephardic Museum. was the quarterback on the Bengals first play- Mrs. Candiotty has served her own family HON. PETER J. VISCLOSKY off team in 1970. Sam began his coaching ca- as well, and has raised both her son Stephen OF INDIANA reer with Bill Walsh and the San Francisco and her daughter Dana to be successful and IN THE HOUSE OF REPRESENTATIVES 49ers. He coached quarterback Joe Montana contributing members of the community. We Tuesday, May 19, 1998 from his rookie year through the 49ers first are told in the Talmud that ``When you teach Super Bowl victory in 1981. Sam was then your son you teach your son's sons,'' and Mr. VISCLOSKY. Mr. Speaker, it is my dis- head coach of the Bengals in Super Bowl Sandy has taken her commitment to education tinct pleasure to announce that Lodge 2365 of XXIII, which was against the 49ers. Sam has seriously. the Polish National Alliance of the United just completed his first year as one of the Mr. Speaker, distinguished colleagues, States, also known as the Silver Bell Club, members of NBC's pre-game show, ``NFL on please join me in paying tribute to Sandy held its 25th Annual Hank Stram/Tony Zale NBC''. Candiotty. Her dedication to charity and serv- Sports Award Banquet yesterday, May 18, Mr. Speaker, I ask you and my other distin- ice has improved the community and made 1998, at the Radisson Hotel at Star Plaza in guished colleagues to join me in commending her a role model for us all. Merrillville, Indiana. Eighteen Northwest Indi- the Silver Bell Club for hosting this celebration f ana high school students of Polish and Slavic of success in sports and academics. The hard descent received the prestigious Hank Stram/ work of all those involved in planning this TRIBUTE TO SISTER GLORIA JEAN Tony Zale Award plaque at last night's ban- worthwhile event is indicative of their devotion ZIESKE quet. These outstanding students were chosen to the very gifted young people in Indiana's to receive the award by their respective First Congressional District. HON. DAVID E. BONIOR schools on the basis of academic and athletic f OF MICHIGAN achievement. All proceeds from the banquet IN THE HOUSE OF REPRESENTATIVES will go toward a scholarship fund which will be TRIBUTE TO MRS. SANDY awarded to deserving students next year. CANDIOTTY Tuesday, May 19, 1998 This year's Hank Stram/Tony Zale Award Mr. BONIOR. Mr. Speaker, today I would recipients include: Andrew Bien of Boone HON. BRAD SHERMAN like to congratulate, Sister Gloria Jean Zieske Grove High School; Jeff Bozovich of OF CALIFORNIA for her hard work and dedication to education. Chesterton High School; Andrew Byrom of IN THE HOUSE OF REPRESENTATIVES Sister Gloria Jean is retiring after twenty years Merrillville High School; Luke DeBold of as Principal of St. Veronica's School in Andrean High School; Tania Fliter of Griffith Tuesday, May 19, 1998 Eastpointe, Michigan. Her friends, colleagues, High School; Stephen Hnatiuk of Hobart High Mr. SHERMAN. Mr. Speaker, I rise today to and students will honor her with a reception School; Cheryl Jakubczyk of Hammond High pay tribute to Mrs. Sandy Candiotty for her on Sunday, May 31st. School; Richard Jaryszak of Lowell High outstanding commitment to others that has Education has always been important to School; Dan Kaminski of Portage High School; done so much to improve the quality of life in Sister Gloria Jean. She has studied at Naza- Steve Kaminski of Portage High School; Annie our community. Both as a successful business reth College, University of Notre Dame, Uni- Knish of Munster High School; Ben Lyon of woman and as an avid supporter of charitable versity of Dayton, Marygrove College, Edge- Highland High School; Justin Marcinkewicz of projects, she has used her intelligence and wood College and Siena Heights College. As Bishop Noll Institute; Kelly O'Brien of Crown charisma to distinguish herself as a woman of both a teacher and administrator, Sister Gloria Point High School; Dan Perryman of Lake Sta- valor. Jean has been sharing the joys of learning tion Edison High School; Eileen Stahura of The Talmud tells us that ``He who does with children since 1949. In 1997, Sister Gloria Whiting High School; Becky Turek of charity and justice is as if he had filled the Jean received recognition from the University Valparaiso High School; and Melissa whole world with kindness.'' Sandy has had a of Notre Dame for her contributions to Catholic Wychocki of Lake Central High School. long tradition of service to the community education. She was also nominated by To- Hank Stram, one of the most successful through her family. Her father's family, the day's Catholic Teachers as one of the 25 most coaches in professional football history, was Taylors, founded Taylortown, Pennsylvania in influential individuals in Catholic education. present at yesterday's event. Hank was raised the 1700's as well as Belmont County in Ohio. She joined the faculty at St. Veronica's in in Gary, Indiana, and he graduated from Lew In addition to this, one of the family's most fa- 1978. Sister Gloria Jean has been more than Wallace High School where he played football, mous sons was Zachary Taylor, the 12th just a Principal, she has taught religion and basketball, baseball, and ran track. While at- president of the United States. coordinated the Elementary Religious Edu- tending college at Purdue University in West In the business community, Sandy served in cation Program. For more than twenty years, Lafayette, Hank won four letters in baseball management and supervisory positions at the students and parishioners of St. Veronica's and three letters in football. During his senior Bank of America, Great Western Savings and have been graced by Sr. Gloria Jean's spirit year, he received the coveted Big Ten Medal, Mercury Savings. While serving in these posi- and love of learning. which is awarded to the conference athlete tions she was involved in all aspects of mar- St. Veronica's School is a very special who best combines athletic and academic suc- keting. At Mercury, she also developed an en- place. As a graduate of this school, I Know cess. After college, Hank entered the NFL tirely new staff training program for the com- how hard the staff and faculty work to create where he became best noted for coaching the pany. Sandy converted to Judaism and mar- an educational and spiritual environment. Sis- Kansas City Chiefs to a Super Bowl victory in ried Max Candiotty on June 2, 1991. ter Glorida Jean's compassion and interest in 1970. At the Sephardic Temple-Tifereth Israel she improving the educational system have made The late Tony Zale was a champion boxer has served as Sisterhood Co-President and as her a compelling symbol of everything that from Gary, Indiana. During his boxing career, Vice-President of Programming. She is a education should embrace. I would like to give May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E891 my heartfelt congratulations to Sister Gloria was there, as a boy, that he learned his love and communal. In its efforts to assist Orthodox Jean as she celebrates her retirement. of reading and especially his love of history. A Jews in America, the Orthodox Union runs the f friend gave him a biography of Abraham Lin- renowned Kashruth Certification Program to coln, and that initiated John's lifelong dedica- guarantee certified kosher food for the observ- CONGRATULATING MISSION SAN tion to equality for Afro Americans. ant. The Orthodox Union's National Council for JOSE HIGH SCHOOL FOR WIN- John married Gertrude Van Dyke in 1925, the Jewish Disabled serves as an outreach NING EDUCATION DEPART- and they had six children. program for the deaf and the developmentally MENT’S BLUE RIBBON AWARD John loved his family and taught them to disabled which has helped thousands of dis- share his love of liberty and of history. He abled live fuller lives. The Orthodox Union has HON. FORTNEY PETE STARK worked for 30 years for the Erie Railroad, but always been at the forefront of the fight for the OF CALIFORNIA was a true renaissance man: in the 1930's, concerns of the world's Jewish population, IN THE HOUSE OF REPRESENTATIVES John began his career as a semi-pro baseball working to strengthen and protect the state of player. In one season, he had an astonishing Tuesday, May 19, 1998 Israel as well as defending Jewish civil rights .517 batting average. Those were the days and playing a vital role in the struggle to save Mr. STARK. Mr. Speaker, I would like to when professional baseball was closed to the Soviet Jewry. congratulate Mission San Jose High School Black Americans. However, when Jackie Rob- The Union of Orthodox Jewish Congrega- for winning the Blue Ribbon award from the inson broke that color barrier, forever, John tions of America was established in 1898 by Department of Education. Mission San Jose Bruen was one of the first to cheer him on. Dr. Henry Pereira Mendes, the leader of the was one of six California schools to win this John became an expert on the life stories of Spanish & Portuguese Synagogue in New prestigious award and one of 166 schools na- those heroes who paved the way for equality: York to promote Torah Judaism and help or- tionwide. Frederick Douglass, Harriet Tubman, W.E.B. ganize the fragmented American Orthodox Mission San Jose proves that public schools Dubois, Martin Luther King, Jr., as well as Jewish community. Since then, the Orthodox can be effective advocates for all students to Jackie Robinson, and a host of others. John Union has served the needs of over 1 million succeed in the 21st Century. Mission San was a good friend of another outstanding resi- members in more than 1,000 congregations Jose believes that all students can learn and dent of our regionÐFloyd PattersonÐand the nationwide. To address the need for Jewish all students will learn. The facts prove them two of them shared their love for boxing, at continuity the Orthodox Union created the correct. which John also tried his hand, and for hu- NCSY, a dynamic outreach movement for Mission San Jose High School has an at- manitarianism. teenagers. Through its efforts, the Orthodox tendance rate of over 95 percent and a drop- John had a gift for the written word, and Union has helped the modern orthodox out rate of .05 percent. The student average from 1959 until near his death, the daily and congregant prosper in a world which often SAT scores are in the top 5 percent of the na- weekly newspapers in Orange County, New seeks to strip them of their religious and cul- tion. 65 percent of the student body is on the York, published his views on the issues of the tural identity. In this role, the Orthodox Union honor roll and the most importantly to me is day. He was a consistent fighter against seg- has played a vital part in the worldwide ad- that 95 percent of students go on to post-sec- regation, prejudice, and racism. He was su- vancement of Judaism. ondary institutions. perb at quoting those figures from the past On this anniversary, I call upon all of my These numbers speak for themselves and who he so admired, and who he believed colleagues in the House to join me in giving for the faculty and administrators at Mission were living proof that all the races should live tribute to the Union of Orthodox Jewish Con- San Jose High. I congratulate Principal in harmony. gregations of America in recognition of the de- Mathog for her outstanding leadership and John was always of tremendous help to me fining role that it has played in the formation positive views. throughout my career in public service. He of modern American Judaism. I congratulate This success by one of our public schools is used his column effectively to promote the the Orthodox Union on its successful first one the best argument against some of the argu- causes he so believed in, and to remind us of hundred years, and wish it many more. ments of my colleagues. Eliminating the De- our responsibilities to human rights for all. partment of Education and advocating public John was quick to praise those of us who sup- f funds to be spent on scholarship vouchers for ported civil rights, but would not consider com- private schools is not the right step to provid- promise on those issues he considered basic BULLETPROOF VEST ing opportunity and hope for all students. Pub- to human dignity. PARTNERSHIP GRANT ACT OF 1998 lic schools work and I can prove it. To John's surviving children, to his many Mission San Jose deserves this award and loved ones, and to those who greatly admired SPEECH OF I congratulate them. him, we extend our heartfelt condolences. f While John Bruen Sr. may not be quoted in HON. JAMES T. WALSH our textbooks or popular histories, it is in great OF NEW YORK HONORING JOHN BRUEN SR. part due to the relentless trails blazed and IN THE HOUSE OF REPRESENTATIVES consciences stirred by individuals such as Tuesday, May 12, 1998 HON. BENJAMIN A. GILMAN John throughout our nation that we are closer Mr. WALSH. Mr. Speaker, I rise today to OF NEW YORK than ever to achieving the dream of Martin Lu- commend the House of Representatives for IN THE HOUSE OF REPRESENTATIVES ther King Jr. passing H.R. 2829, the Bulletproof Vest Part- Tuesday, May 19, 1998 John you left your markÐwe will long miss you. nership Grant Act of 1997. Mr. GILMAN. Mr. Speaker, it is with regret f I have met with law enforcement officials that I inform our colleagues of the passing of from across my district who feel this is an im- one of the most remarkable residents of my TRIBUTE TO THE UNION OF OR- portant and useful bill. Currently, 25 percent of 20th Congressional District of New York. THODOX JEWISH CONGREGA- our nation's state and local law enforcement John Bruen Sr. was 92 years young when TIONS OF AMERICA officials do not have access to bulletproof he died this past weekend, but right until the vests. Additionally, police officers not wearing end he remained the embodiment of the dig- HON. CHARLES E. SCHUMER a bulletproof vest have a fatality risk 14 times nity of the individual. OF NEW YORK that of officers wearing a vest. There is an ob- John Bruen was born in 1906 in Goshen, IN THE HOUSE OF REPRESENTATIVES vious need to make sure those who risk their NY, and lived in that community his entire life. lives on our behalf have access to these life- His grandfather was a runaway slave, who Tuesday, May 19, 1998 saving devices. had shown John the scars on his back from Mr. SCHUMER. Mr. Speaker, I am speaking H.R. 2829 will ensure that for the days to the whippings he had received as a slave, and today in honor of a leading organization in come, no police officer will be left unneces- which remained on him until the day he died. America's Jewish community, the Union of Or- sarily exposed in the line of duty. Bulletproof Because of his heritage, John was working thodox Jewish Congregations of America, in vests are one of the most basic forms of law for civil rights for all Americans long before it recognition of its 100th anniversary. enforcement protection, and America now became fashionable to do so. As a young The Orthodox Union represents over one sends a message to its law enforcement offi- man, he worked grooming horses at the Go- million members from one thousand congrega- cialsÐwe will protect you who valiantly protect shen Historic Track in Goshen, New York. It tions across the country in matters religious us every day. E892 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 HONORING THE CHINATOWN COM- 30, the congregation of Flint's Quinn Chapel We need to secure a full accounting of the MUNITY DEVELOPMENT CENTER African Methodist Episcopal Church will honor men and women who fought for our Nation's OF SAN FRANCISCO Reverend Burgess for the many contributions flag and who were captured by the enemy or he has made to our community. listed as missing. HON. NANCY PELOSI Reverend Burgess earned his Bachelor of We must work together to ensure the fullest OF CALIFORNIA Science degree from Wilberforce University in possible accounting of these men for their Ohio and continued his education at Payne IN THE HOUSE OF REPRESENTATIVES family and all Americans who have benefited Theological Seminary where he received his from their fight for freedom and liberty. Tuesday, May 19, 1998 Master's of Divinity. To continue his mission of Although this is a good first step to rec- Ms. PELOSI. Mr. Speaker, I rise today to peace and social change, he received a di- ognizing and remembering those missing sol- bring to the attention of my colleagues the ploma in urban ministry from the Urban Train- diers, I believe we must do more. Chinatown Community Development Center of ing Center of Chicago and served as a mem- Recently, I joined several of my colleagues San Francisco, which has been selected to re- ber of President Carter's White House Council in contacting the State Department expressing ceive the Fannie Mae Foundation Sustained on Arms Control. our concern about the POW/MIA who are still Excellence Award. In 1967, Reverend Burgess was ordained unaccounted for from the Korean War. For the past 21 years, the Chinatown Devel- as an Itinerant Elder in the African Methodist We felt that the POW/MIA subject should opment Center (CCDC) has served North- Episcopal Church. Since that time he has have been a priority subject during the nego- eastern San Francisco neighborhood's through committed his life's work to providing spiritual tiations in Geneva this past December. providing low-income housing development guidance and counsel to countless individuals. I strongly believe that any agreement for and management and by fostering a sense of As a member of the Board of Directors of the peace must include a serious commitment on community. CCDC incorporates a unique ap- Urban League of Flint, Past President of the the part of the government of North Korea to proach to community development that com- Greater Flint Association of Christian Church- locate missing soldiers of the thousands of bines housing advocacy with community in- es, and a member of the Board of Directors of Korean Veterans I represent. volvement through grassroots organizing and the United Way of Genesee County, Reverend As you know, a lasting peace on the Korean neighborhood planning. Supportive services Burgess has been a highly effective leader. Peninsula, underscored by a unified demo- empower residents to become self-sufficient His dedication to ensuring that everyone is af- cratic government is a goal for which our Vet- and to participate in formulating public policy forded a quality education is evidenced by his erans fought bravely during the conflict of issues that directly affect them. Throughout its tenure on the Advisory Committee for the Mott 1950±1953. 21-year history, CCDC's principal projects re- Adult High School Continuing Education Pro- Under adverse conditions, and sometimes flect how it has merged housing with commu- gram. against a numerically superior enemy, U.S. nity improvement. Reverend Burgess's tireless service and troops battled to preserve a non-communist The significant contributions that CCDC has deeds have earned him recognition from var- enclave on the Asian continent. made include managing more than 1,000 units ious groups such as the Flint Optimist Inter- At a time during the cold war when the of affordable housing with a multitude of ten- national, Western Michigan University's Black forces of communism seemed on the rise ant services and the creation of 10 commer- Studies Department, the State of Michigan across the world, the performance of our val- cial spaces for small businesses to help pro- House of Representatives, and the Flint Chap- iant soldiers, sailors and airmen affirmed the vide employment for local residents. The ter of the NAACP, to name a few. resolve of democracy. CCDC has also contributed to fostering neigh- Mr. Speaker, it is with great pride that I ask Now that the first steps to achieving peace borhood pride through the creation of a street my colleagues in the House of Representa- in Korea are being taken, it is paramount that cleaning venture called the Chinatown Envi- tives to join me in saluting an inspirational in- the US negotiators insist on POW/MIA closure ronmental Organizations and through coordi- dividual, Reverend Braxton Vincent Burgess. are subject to any formal accord. nation of neighborhood-based planning result- He deserves our thanks for a lifelong commit- By doing so, we honor the troops who put ing in the renovation of five new parks, gar- ment to making our community a much better forth the ultimate sacrifice; dens, and courtyards in neighborhoods with place. We honor their families, who have lived with limited safe, recreational areas. Additionally, f uncertainty about their loved ones for over 40 years; most importantly; CCDC provides citizenship and educational ARMED FORCES’ DAY ‘‘WE MUST We honor those veterans of the Korean War classes, as well as counseling and translation REMEMBER’’ services for its residents. still living, who will never forget their col- We in San Francisco are proud of our diver- leagues lost on the nameless hills, ridges and sity and CCDC has played a key role in sup- HON. LORETTA SANCHEZ valleys during those 3 long years. porting immigrant and low-income populations OF CALIFORNIA I will continue to urge the State Department throughout the city. By investing in low-income IN THE HOUSE OF REPRESENTATIVES to work with the Pentagon in articulating a residents, CCDC has brought new life and Tuesday, May 19, 1998 clear and resolute position for the United hope to San Francisco's low-income neighbor- Ms. SANCHEZ. Mr. Speaker, this weekend States on unresolved POW/MIA personnel hoods. CCDC is a model of sustained high I joined the veterans in my community to rec- cases as the talks continue. quality housing development and management ognize the first day the Prisoner of War and A lasting peace cannot be fully achieved un- combined with active grassroots community Missing in Action Flag was flown Nationally on less those who fought for it are accounted for organizing. CCDC possesses a clear vision for Armed Forces' Day. by a grateful nation. sustaining its communities for years to come. During the day, I had the opportunity to hear And I will continue to express my concern to I join with the people of San Francisco in con- the stories of America's POWs and MIAs. the federal government. gratulating and thanking Gordon Chin and Their stories weighed on my heart and an- It has been over 20 years since the war in CCDC for its 21 years of accomplishments gered my senses. These men deserve from Vietnam ended, yet our Government has still and send my very best wishes for continued the United States as much, if not more, than not accounted for so many of those men who success. they have given to us. went to a far away nation to defend an un- f For these reasons, I cosponsored Public known people against an unseen enemy. Law 105±85, legislation that requires the flying We have almost erased the scourge of HONORING REVEREND BRAXTON of the POW/MIA flag at Federal facilities, in- Communism from the face of the earth, yet we BURGESS cluding U.S. Post Offices. have not yet fully recognized all of the men Having the flag flown at Federal offices and who made this victory of democracy possible. HON. DALE E. KILDEE facilities will help us remember the work that Until we bring home these men, the war is OF MICHIGAN remains to honor these courageous individuals not over. We must continue to fight and re- IN THE HOUSE OF REPRESENTATIVES and their families. member those we have lost in our battle for The POW/MIA flag offers us an opportunity freedom. Tuesday, May 19, 1998 not only to remember and recognize those we Until all of the men, from throughout this Mr. KILDEE. Mr. Speaker, it is an honor to have lost, but also to rededicate ourselves to country, have been accounted for, we must rise before you today to recognize the the cause of finding these men or their re- not rest in our efforts. achievements of Reverend Braxton Vincent mains and bringing them home to their fami- As a member of the National Security Com- Burgess of Flint, Michigan. On Saturday, May lies and their grateful Nation. mittee, I commit myself to America's veterans. May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E893 I commit myself to working in the memory of to an outstanding teacher, Dr. Marjorie Partnership Act was approved by Congress the thousands of Americans who served in Slavens, who after nearly 40 years in the last week. This bill will provide Federal grants America's wars and were captured by the teaching profession, has decided to retire. to match State and local government funds in enemy or listed as missing in action. Dr. Slavens, who has been blind since a purchasing bulletproof vests for law enforce- I commit myself to the families of those small child, has dedicated her life to teaching ment officers. This bill will take steps to pro- whose fate has been unknown and who have others. She is a Phi Beta Kappa from the Uni- vide these brave men and women with the had to suffer tragic and continuing hardships. versity of Missouri at ColumbiaÐholding both tools they need to fight crime, protect society, In Washington, engraved at the Veterans's Bachelor of Arts and Master of Arts degrees. and insure that they make it home. Administration Building, is a quote from Abra- She earned her PH.D. from St. Louis Univer- We should not forget the hardworking, cou- ham Lincoln, ``To care for him who shall have sity in St. Louis, MO. After graduating, Dr. rageous men an women who every day step borne the battle, and for his orphan.'' Slavens began teaching Spanish in the De- into the role of peace officer to make our soci- I do not believe that America has sufficiently partment of Modern Languages at Rockford ety a safer place. I thank the Members for cared for all of those men who have been de- College in Rockford, IL, and continued at this supporting the Bulletproof Vest Partnership clared missing or captured. post for 33 years. During this period, student Act and observing National Police Week and Until we have a full accounting, we cannot workers proudly assisted Dr. Slavens by tak- Peace Officers' Memorial Day. fulfill this promise to America's veterans and ing attendance and proctoring tests, and tape- families. recording examinations for Slavens to grade. f f Dr. Slavens's unique teaching style has THE NIGERIAN DEMOCRACY AND earned recognition. In 1987, Dr. Slavens re- A SPECIAL TRIBUTE TO BLAIR J. CIVIL SOCIETY EMPOWERMENT ceived the Illinois Lieutenant Governor's ACT, H.R. 3890 NAHM ON HIS APPOINTMENT TO Award for service to the foreign language ATTEND THE UNITED STATES teaching profession. The college also ap- MILITARY ACADEMY AT WEST pointed her Director of Advising, and she pub- HON. BENJAMIN A. GILMAN POINT, NEW YORK lished Rockford College's first Academic Ad- OF NEW YORK vising Handbook. In 1989, she was awarded IN THE HOUSE OF REPRESENTATIVES HON. PAUL E. GILLMOR the Mary Ashby Cheek Award that recognized Tuesday, May 19, 1998 OF OHIO her as an Honorary Alumni of the college. In Mr. GILMAN. Mr. Speaker, today I am intro- IN THE HOUSE OF REPRESENTATIVES 1991, a committee composed of faculty, staff, ducing, along with Representative DONALD M. Tuesday, May 19, 1998 and students selected Dr. Slavens to receive the Sears Foundation Award for teaching ex- PAYNE of New Jersey, the Nigerian Democ- Mr. GILLMOR. Mr. Speaker, I rise today to cellence and campus leadership. racy and Civil Society Empowerment Act, H.R. pay special tribute to an outstanding young Mr. Speaker, I am certain that the Members 3890. Mr. PAYNE, a senior member of our man from Ohio's Fifth Congressional District, of the House will join me in congratulating Dr. International Relations Committee, has been a Blair J. Nahm. Blair recently accepted his offer Marjorie Slavens on a spectacular teaching true leader in Congress on this issue. He iden- of appointment to attend the United States career. As she prepares for her retirement and tified the corrupt, venal nature of the Nigerian Military Academy at West Point, New York. the enjoyment therein, Dr. Slavens will un- regime long before many of us, and I am The Nahm family has a long tradition with doubtedly take pride in her legacy as one of pleased to work with him on this bill. West Point, as Blair's older brother, Reid, is the nation's most special educators. Mr. Speaker, while many other African na- currently a Cadet Third Class. As Blair will f tions are moving toward democracy and join- soon be graduating from Tiffin Columbian High ing the world economy, the military govern- School, he, too, will be embarking on what fig- PEACE OFFICERS’ MEMORIAL DAY ment of Nigeria has become one of the most ures to be one of the most educational and brutal and corrupt dictatorships on the con- challenging opportunities of his life. HON. CHET EDWARDS tinent. While attending Columbian High School, OF TEXAS Nevertheless, Nigeria remains important to Blair excelled academically by attaining a IN THE HOUSE OF REPRESENTATIVES U.S. interests. With a population of more than 3.735 grade point average, placing him in the 100 million people, and the strongest military Tuesday, May 19, 1998 top ten percent of his class. Blair's academic in the region, Nigeria is the key to security and excellence was extended through his involve- Mr. EDWARDS. Mr. Speaker, on May 15 development in all of West Africa. If Nigeria ment in the National Honor Society. He also our Nation honored the brave men and descends into chaos, millions of people from participated in the Ohio Test of Scholastic women in law enforcement with Peace Offi- Senegal to Cameroon will suffer. Achievement, where he placed second in the cers' Memorial Day, designated 36 years ago Nigerian drug traffickers, who have thrived district in pre-calculus. by President John F. Kennedy. This day of ac- under this regime, are among the most skilled Blair is also a fine student-athlete, and has knowledgment for the selfless contributions in the world, reportedly delivering 70% of the distinguished himself on the fields of competi- made by hardworking individuals falls during heroin that enters Chicago alone, as part of tion. He was a key member of the Varsity National Police Week. I rise today to pay trib- their world-wide distribution networks. Football Team and Varsity Wrestling Team. In ute to all law enforcement professionals Our bill sends a clear message to the mili- fact, during his junior year of wrestling, Blair across our country and to honor those who tary regime in Nigeria that the status quo is received the Wrestling Iron Man Award for his have made the ultimate sacrifice. unacceptable. The Nigerian people want and accomplishments. Last year, 159 officers lost their lives in the deserve a real transition to democratic, civilian Mr. Speaker, I am confident that Blair will be line of duty. These fine individuals died serv- government, and this measure points U.S. for- very successful at West Point and in all of his ing the best interests of our society, working eign policy toward that goal. This legislation future endeavors. I would urge my colleagues hard to protect our citizens. Patrolling our does three things. to stand and join me in paying tribute to Blair streets and highways, protecting our homes It establishes a program to assist those in J. Nahm, and in wishing him well as he pre- and families, and seeking out criminals are in Nigeria who are willing to take risks for de- pares to enter the United States Military Acad- the job descriptions of law enforcement pro- mocracy and human rights. As was done dur- emy. fessionals. Yet we all too often take for grant- ing the apartheid regime in South Africa, the f ed these hardworking people. United States will aid those who stand against The National Association of Police Chiefs the illegitimate government of Nigeria and for A TRIBUTE TO DR. MARJORIE reported 21 confirmed line-or-duty deaths for a return to democratic, civilian rule. SLAVENS January of 1998, ten more than reported in The bill codifies into law the various sanc- January of 1997. Even as crime rates are tions that have been imposed on Nigeria by HON. IKE SKELTON dropping, peace officer fatalities are steadily executive order, from visa restrictions to prohi- OF MISSOURI rising. Since 1980, 1,182 officers have been bitions on weapons sales, and establishes IN THE HOUSE OF REPRESENTATIVES killed in the line of duty by firearms. According conditions under which these sanctions can be to the Federal Bureau of Investigation, 42 per- lifted. Tuesday, May 19, 1998 cent of those officers could have survived had The bill also mandates further measures if a Mr. SKELTON. Mr. Speaker, let me take they been wearing bulletproof vests. That is transition to a democratic government under this opportunity to say a few words in tribute why I am pleased that the Bulletproof Vest civilian control does not occur by the end of E894 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 this year. These include additional visa restric- (10)(A) The widely recognized winner of the age political, economic, and legal reforms tions and a prohibition against Nigerian ath- annulled June 6, 1993, presidential election, necessary to ensure rule of law and respect letes and teams participating in events in the Chief Moshood K. O. Abiola, remains in de- for human rights in Nigeria and support a tention on charges of treason. timely and effective transition to demo- United States. (B) General Olusegun Obassanjo (rt.), who cratic, civilian government in Nigeria. While there are no provisions for economic is a former head of state and the only mili- SEC. 3. SENSE OF CONGRESS. sanctions in the bill, we are considering addi- tary leader to turn over power to a demo- (a) INTERNATIONAL COOPERATION.—It is the tional measures that could be added in com- cratically elected civilian government and sense of Congress that the President should, mittee mark-up on the House floor. who has played a prominent role on the in any and all international fora, seek the Mr. Speaker, the Nigerian regime is among international stage as an advocate of peace cooperation of other countries as part of the the most venal, brutal, and corrupt regimes in and reconciliation, remains in prison serving United States policy of isolating the mili- the world. It is not enough to simply call them a life sentence following a secret trial that tary government of Nigeria. failed to meet international standards of due (b) UNITED NATIONS HUMAN RIGHTS COMMIS- names, however. We must continue to put process over an alleged coup plot that has pressure on the military government and iso- SION.—It is the sense of Congress that the never been proven to exist. President should instruct the United States late it from the civilized world. This bill will (C) Internationally renowned writer, Ken Representative to the United Nations Human help accomplish those goals, and I urge my Saro-Wiwa, and 8 other Ogoni activists were Rights Commission (UNHRC) to use the colleagues to support it. arrested in May 1994 and executed on Novem- voice and vote of the United States at the ber 10, 1995, despite the pleas to spare their H.R. 3890 annual meeting of the Commission— lives from around the world. (1) to condemn human rights abuses in Ni- Be it enacted by the Senate and House of Rep- (D) Frank O. Kokori, Secretary General of geria; and resentatives of the United States of America in the National Union of Petroleum and Natu- (2) to press for the appointment of a special Congress assembled, ral Gas Workers (NUPENG), who was ar- rapporteur on Nigeria, as called for in Com- SECTION 1. SHORT TITLE. rested in August 1994, and has been held in- mission Resolution 1997/53. communicado since, Chief Milton G. Dabibi, This Act may be cited as the ‘‘Nigerian De- (c) SPECIAL ENVOY FOR NIGERIA.—It is the mocracy and Civil Society Empowerment Secretary General of Staff Consultative As- sense of Congress that, because the United Act’’. sociation of Nigeria (SESCAN) and former States Ambassador to Nigeria, a resident of Secretary General of the Petroleum and Nat- SEC. 2. FINDINGS AND DECLARATION OF POLICY. both Lagos and Abuja, Nigeria, is the Presi- ural Gas Senior Staff Association (a) FINDINGS.—Congress makes the follow- dent’s representative to the Government of (PENGASSAN), who was arrested in January ing findings: Nigeria, serves at the pleasure of the Presi- 1996, remains in detention without charge, (1) The continued rule of the Nigerian mili- dent, and was appointed by and with the ad- for leading demonstrations against the can- tary government, in power since a 1993 coup, vice and consent of the Senate, the President celed elections and against government ef- undermines confidence in the Nigerian econ- should not send any other envoy to Nigeria forts to control the labor unions. omy, damages relations between Nigeria and without prior notification of Congress and (E) Among those individuals who have been the United States, threatens the political should not designate a special envoy to Nige- detained under similar circumstances and and economic stability of West Africa, and ria without consulting Congress. who remain in prison are Christine harms the lives of the people of Nigeria. Anyanwu, Editor-in-Chief and publisher of SEC. 4. ASSISTANCE TO PROMOTE DEMOCRACY (2) The transition plan announced by the AND CIVIL SOCIETY IN NIGERIA. The Sunday Magazine (TSM), Kunle Ajibade Government of Nigeria on October 1, 1995, EVELOPMENT SSISTANCE and George Mbah, editor and assistant editor (a) D A .— which includes a commitment to hold free (1) IN GENERAL.—Of the amounts made of the News, Ben Charles Obi, a journalist and fair elections, has so far failed to foster available for fiscal years 1999, 2000, and 2001 who was tried, convicted, and jailed by the an environment in which such elections to carry out chapter 1 of part I of the For- infamous special military tribunal during would be considered free and fair, nor was eign Assistance Act of 1961 (22 U.S.C. 2151 et the reason trials over the alleged 1995 coup the transition plan itself developed in a free seq.), not less than $10,000,000 for fiscal year plot, the ‘‘Ogoni 21’’ who were arrested on and open manner or with the participation of 1999, not less than $12,000,000 for fiscal year the same charges used to convict and exe- the Nigerian people. 2000, and not less than $15,000,000 for fiscal cute the ‘‘Ogoni 9’’ and Dr. Beko Ransome- (3) The international community would year 2001 should be available for assistance Kuti, a respected human rights activist and consider a free and fair election in Nigeria described in paragraph (2) for Nigeria. leader of the pro-democracy movement and one that involves a genuinely independent (2) ASSISTANCE DESCRIBED.— Shehu Sani, the Vice-Chairman of the Cam- electoral commission and an open and fair (A) IN GENERAL.—The assistance described paign for Democracy. process for the registration of political par- (11) Numerous decrees issued by the mili- in this paragraph is assistance provided to ties and the fielding of candidates and an en- tary government in Nigeria suspend the con- nongovernmental organizations for the pur- vironment that allows the full unrestricted stitutional protection of fundamental human pose of promoting democracy, good govern- participation by all sectors of the Nigerian rights, allow indefinite detention without ance, and the rule of law in Nigeria. population. charge, revoke the jurisdiction of civilian (B) ADDITIONAL REQUIREMENT.—In provid- (4) In particular, the process of registering courts, and criminalize peaceful criticism of ing assistance under this subsection, the Ad- voters and political parties has been signifi- the transition program. ministrator of the United States Agency for cantly flawed and subject to such extreme (12) As a signatory to the International International Development shall ensure that pressure by the military so as to guarantee Covenant on Civil and Political Rights nongovernmental organizations receiving the uncontested election of the incumbent or (ICCPR), the Harare Commonwealth Dec- such assistance represent a broad cross-sec- his designee to the presidency. laration, and the African Charter on Human tion of society in Nigeria, including— (5) The tenure of the ruling military gov- and Peoples’ Rights, Nigeria is obligated to (i) organizations with representation from ernment in Nigeria has been marked by egre- grant its citizens the right to fairly conduct various ethnic groups; gious human rights abuses, devastating eco- elections that guarantee the free expression (ii) organizations containing journalists, nomic decline, and rampant corruption. of the will of the electors. lawyers, accountants, doctors, teachers, and (6) Previous and current military regimes (13) Nigeria has played a major role in re- other professionals; have turned Nigeria into a haven for inter- storing elected, civilian governments in Li- (iii) business organizations; national drug trafficking rings and other beria and Sierra Leone as the leading mili- (iv) organizations that represent constitu- criminal organizations. tary force within the Economic Community encies from northern Nigeria; (7) On September 18, 1997, a social function of West African States (ECOWAS) peace- (v) religious organizations with a civic in honor of then-United States Ambassador keeping force, yet the military regime has focus; and Walter Carrington was disrupted by Nigerian refused to allow the unfettered return of (vi) other organizations that seek to pro- state security forces. This culminated a elected, civilian government in Nigeria. mote democracy, human rights, and account- campaign of political intimidation and per- (14) Despite organizing and managing the able government. sonal harassment against Ambassador June 12, 1993, elections, the Nigerian mili- (3) GRANTS FOR PROMOTION OF HUMAN Carrington by the ruling regime. tary regime nullified that election, impris- RIGHTS.—Of the amounts made available for (8) Since 1993, the United States and other oned the winner a year later, and continues fiscal years 1999, 2000, and 2001 under para- members of the international community to fail to provide a coherent explanation for graph (1), not less than $500,000 for each such have imposed limited sanctions against Ni- their actions. fiscal year should be available to the United geria in response to human rights violations (15) Nigeria has used its military and eco- States Agency for International Develop- and political repression. nomic strength to threaten the land and ment for the purpose of providing grants of (9) According to international and Nigerian maritime borders and sovereignty of neigh- not more than $25,000 each to support indi- human rights groups, at least several hun- boring countries, which is contrary to nu- viduals or nongovernmental organizations dred democracy and human rights activists merous international treaties to which it is that seek to promote, directly or indirectly, and journalists have been arbitrarily de- a signatory. the advancement of human rights in Nigeria. tained or imprisoned, without appropriate (b) DECLARATION OF POLICY.—Congress de- (b) USIA INFORMATION ASSISTANCE.—Of the due process of law. clares that the United States should encour- amounts made available for fiscal years 1999, May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E895

2000, and 2001 under subsection (a)(1), not less (1) IN GENERAL.—The Secretary of the which the United States is represented than $1,000,000 for fiscal year 1999, $1,500,000 Treasury shall instruct the United States ex- should refuse to invite the participation of for fiscal year 2000, and $2,000,000 for fiscal ecutive director to each of the international any national of Nigeria in any sporting event year 2001 should be made available to the financial institutions described in paragraph in the United States sponsored by that orga- United States Information Agency for the (2) to use the voice and vote of the United nization. purpose of supporting its activities in Nige- States to oppose any assistance to the Gov- SEC. 8. WAIVER OF PROHIBITIONS AGAINST NI- ria, including the promotion of greater ernment of Nigeria. GERIA IF CERTAIN REQUIREMENTS awareness among Nigerians of constitutional (2) INTERNATIONAL FINANCIAL INSTITUTIONS MET. democracy, the rule of law, and respect for DESCRIBED.—The international financial in- (a) IN GENERAL.—The President may waive human rights. stitutions described in this paragraph are any of the prohibitions contained in section (c) STAFF LEVELS AND ASSIGNMENTS OF the African Development Bank, the Inter- 5, 6, or 7 for any fiscal year if the President UNITED STATES PERSONNEL IN NIGERIA.— national Bank for Reconstruction and Devel- makes a determination under subsection (b) (1) FINDING.—Congress finds that staff lev- opment, the International Development As- for that fiscal year and transmits a notifica- els at the office of the United States Agency sociation, the International Finance Cor- tion to Congress of that determination under for International Development in Lagos, Ni- poration, the Multilateral Investment Guar- subsection (c). geria, are inadequate. anty Agency, and the International Mone- (b) PRESIDENTIAL DETERMINATION RE- (2) SENSE OF CONGRESS.—It is the sense of tary Fund. QUIRED.—A determination under this sub- Congress that the Administrator of the SEC. 6. EXCLUSION FROM ADMISSION INTO THE section is a determination that— United States Agency for International De- UNITED STATES OF CERTAIN NIGE- (1) the Government of Nigeria— velopment should— RIAN NATIONALS. (A) is not harassing human rights and de- (A) increase the number of United States Notwithstanding any other provision of mocracy advocates and individuals who personnel at such Agency’s office in Lagos, law, the Secretary of State shall deny a visa criticize the government’s transition pro- Nigeria, from within the current, overall to, and the Attorney General shall exclude gram; (B) has established a new transition proc- staff resources of such Agency in order for from the United States, any alien who is— ess developed in consultation with the pro- such office to be sufficiently staffed to carry (1) a current member of the Provisional democracy forces, including the establish- out subsection (a); and Ruling Council of Nigeria; ment of a genuinely independent electoral (B) consider placement of personnel else- (2) a current civilian minister of Nigeria commission and the development of an open where in Nigeria. not on the Provisional Ruling Council; and fair process for registration of political SEC. 5. PROHIBITION ON ECONOMIC ASSISTANCE (3) a military officer currently in the parties, candidates, and voters; TO THE GOVERNMENT OF NIGERIA; armed forces of Nigeria; PROHIBITION ON MILITARY ASSIST- (C) is providing increased protection for (4) a person in the Foreign Ministry of Ni- ANCE FOR NIGERIA; REQUIREMENT freedom of speech, assembly, and the media, geria who holds Ambassadorial rank, wheth- TO OPPOSE MULTILATERAL ASSIST- including cessation of harassment of journal- er in Nigeria or abroad; ANCE FOR NIGERIA. ists; (a) PROHIBITION ON ECONOMIC ASSISTANCE.— (5) a current civilian head of any agency of (D) has released individuals who have been (1) IN GENERAL.—Economic assistance (in- the Nigerian government with a rank com- imprisoned without due process or for politi- cluding funds previously appropriated for parable to the Senior Executive Service in cal reasons; economic assistance) may not be provided to the United States; (E) is providing access for international the Government of Nigeria. (6) a current civilian advisor or financial human rights monitors; (2) ECONOMIC ASSISTANCE DEFINED.—As used backer of the head of state of Nigeria; (F) has repealed all decrees and laws that— in this subsection, the term ‘‘economic as- (7) a high-ranking member of the inner cir- (i) grant undue powers to the military; sistance’’— cle of the Babangida regime of Nigeria on (ii) suspend the constitutional protection (A) means— June 12, 1993; of fundamental human rights; or (i) any assistance under part I of the For- (8) a high-ranking member of the inner cir- (iii) allow indefinite detention without eign Assistance Act of 1961 (22 U.S.C. 2151 et cle of the Shonekan interim national govern- charge, including the State of Security (De- seq.) and any assistance under chapter 4 of ment of Nigeria; tention of Persons) Decree No. 2 of 1984; and part II of such Act (22 U.S.C. 2346 et seq.) (re- (9) a civilian who there is reason to believe (G) has unconditionally withdrawn the Ni- lating to economic support fund); and is traveling to the United States for the pur- gerian internal security task force from re- (ii) any financing by the Export-Import pose of promoting the policies of the mili- gions in which the Ogoni ethnic group lives Bank of the United States, financing and as- tary government of Nigeria; and from other oil-producing areas where vi- sistance by the Overseas Private Investment (10) a current head of a parastatal organi- olence has been excessive; or Corporation, and assistance by the Trade and zation in Nigeria; or (2) it is in the national interests of the Development Agency; and (11) a spouse or minor child of any person United States to waive the prohibition in (B) does not include disaster relief assist- described in any of the paragraphs (1) section 5, 6, or 7, as the case may be. ance, refugee assistance, or narcotics control through (10). (c) CONGRESSIONAL NOTIFICATION.—Notifi- assistance under chapter 8 of part I of the SEC. 7. ADDITIONAL MEASURES. cation under this subsection is written noti- Foreign Assistance Act of 1961 (22 U.S.C. 2291 fication of the determination of the Presi- (a) IN GENERAL.—Unless the President de- et seq.). termines and certifies to the appropriate dent under subsection (b) provided to the ap- (b) PROHIBITION ON MILITARY ASSISTANCE congressional committees by December 31, propriate congressional committees not less OR ARMS TRANSFERS.— 1998, that a free and fair presidential election than 15 days in advance of any waiver of (1) IN GENERAL.—Military assistance (in- has occurred in Nigeria during 1998 and so anye prohibition in section 5, 6, or 7, subject cluding funds previously appropriated for to the procedures applicable to reprogram- military assistance) or arms transfers may certifies to the appropriate committees of Congress, the President, effective January 1, ming notifications under section 634A of the not be provided to Nigeria. Foreign Assistance Act of 1961 (22 U.S.C. (2) MILITARY ASSISTANCE OR ARMS TRANS- 1999— (1) shall exercise his authority under sec- 2394-1). FERS.—The term ‘‘military assistance or SEC. 9. PROHIBITION ON UNITED STATES ASSIST- arms transfers’’ means— tion 203 of the International Emergency Eco- nomic Powers Act (50 U.S.C. 1702) to prohibit ANCE OR CONTRIBUTIONS TO SUP- (A) assistance under chapter 2 of part II of PORT OR INFLUENCE ELECTION AC- the Foreign Assistance Act of 1961 (22 U.S.C. any financial transaction involving the par- TIVITIES IN NIGERIA. 2311 et seq.) (relating to military assistance), ticipation by a Nigerian national as a rep- (a) PROHIBITION.— including the transfer of excess defense arti- resentative of the Federal Republic of Nige- (1) IN GENERAL.—No department, agency, or cles under section 516 of that Act (22 U.S.C. ria in a sporting event in the United States; other entity of the United States Govern- 2321j); (2) shall expand the restrictions in Presi- ment shall provide any assistance or other (B) assistance under chapter 5 of part II of dential Proclamation No. 6636 of December contribution to any political party, group, the Foreign Assistance Act of 1961 (22 U.S.C. 10, 1993, to include a prohibition on entry organization, or person if the assistance or 2347 et seq.) (relating to international mili- into the United States of any employee or contribution would have the purpose of ef- tary education and training); military officer of the Nigerian government fect of supporting or influencing any elec- (C) assistance under the ‘‘Foreign Military and their immediate families; tion or campaign for election in Nigeria. Financing Program’’ under section 23 of the (3) shall submit a report to the appropriate (2) PERSON DEFINED.—As used in paragraph Arms Export Control Act (22 U.S.C. 2763); or congressional committees listing, by name, (1), the term ‘‘person’’ means any natural (D) the transfer of defense articles, defense senior Nigerian government officials and person, any corporation, partnership, or services, or design and construction services military officers who are suspended from other juridical entity. under the Arms Export Control Act (22 entry into the United States under section 6; (b) WAIVER.—The President may waive the U.S.C. 2751 et seq.), including defense articles and prohibition contained in subsection (a) if the and defense services licensed or approved for (4) shall consider additional economic President— export under section 38 of that Act (22 U.S.C. sanctions against Nigeria. (1) determines that— 2778). (b) ACTIONS OF INTERNATIONAL SPORTS OR- (A) the climate exists in Nigeria for a free (c) REQUIREMENT TO OPPOSE MULTILATERAL GANIZATIONS.—It is the sense of Congress and fair democratic election that will lead to ASSISTANCE.— that any international sports organization in civilian rule; or E896 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 (B) it is in the national interests of the first-ever nonstop flight from New York to acteristic that makes a community worthwhile. United States to do so; and Tokyo by a business jet; a climb to 51,000 While we can do much to create a climate that (2) notifies the appropriate congressional feet in just over 151¤2 minutes; and the first- brings jobs, builds roads, lowers taxes, and committees not less than 15 days in advance of the determination under paragraph (1), ever nonstop business aircraft flight between eliminates deficits, the most important deficit subject to the procedures applicable to re- Washington, DC, and Dubai. we as a nation and a community must face is programming notifications under section Amazingly, the Gulfstream V achieved these a deficit of values and character. 634A of the Foreign Assistance Act of 1961 (22 records while overcoming such challenges as For this reason, Mr. Speaker, I wanted to U.S.C. 2394-1). using a new airframe with a new engine. And tell my colleagues about those people who SEC. 10. REPORT ON CORRUPTION IN NIGERIA. the project stayed fundamentally on schedule. demonstratee the true meaning of community Not later than 3 months after the date of By listening to customers throughout the pro- service in my district in Michigan. So many the enactment of this Act, and annually for duction of the Gulfstream V, Gulfstream people talk about the need to get involved and the next 5 years thereafter, the Secretary of showed its commitment to superior service. pitch in when they see a problem, but Janet State shall prepare and submit to the appro- The Gulfstream V is not only a remarkable McDowell is one person who takes action. priate congressional committees, and make achievement in America's aviation history, but Janet has distinguished herself as a volun- available to the public, a report on govern- in our nation's business tradition as well. The mental corruption in Nigeria. This report teer for a number of local organizations, in- shall include— story of this aircraft's production fits well in cluding the United Way and the American Red (1) evidence of corruption by government America's heritage of bold, entrepreneurial Cross. She is an active member of the officials in Nigeria; risk-taking. When Gulfstream first decided to Lenawee Chamber and a vigorous participant (2) the impact of corruption on the delivery pursue this project in the early 1990s, it was in her chosen community. of government services in Nigeria; a relatively small, privately held company, and Mr. Speaker, on behalf of my constitutents, (3) the impact of corruption on United the Gulfstream V carried with it significant fi- States business interests in Nigeria; I extend my congratulations and appreciation (4) the impact of advance fee fraud, and nancial risks. Instead of backing down in the to Janet McDowell. May she continue to be a other fraudulent business schemes originat- face of economic adversity, Gulfstream source of encouragement to men and women ing in Nigeria, on United States citizens; and launched a series of partnerships under reve- whose professional accomplishments and pub- (5) the impact of corruption on Nigeria’s nue-sharing agreements that allowed the Gulf- lic service endeavors are worthy of recogni- foreign policy. stream V to become a reality. tion. SEC. 11. APPROPRIATE CONGRESSIONAL COM- The Collier Trophy has been awarded since f MITTEES DEFINED. 1911 ``for the greatest achievement in aero- Except as provided in section 6, in this Act, nautics or astronautics in America, with re- TRIBUTE TO DEBORAH R. the term ‘‘appropriate congressional com- spect to improving the performance, efficiency, JOHNSON mittees’’ means— (1) the Committee on International Rela- and safety of air or space vehicles, the value tions of the House of Representatives; and of which has been thoroughly demonstrated HON. JAMES E. CLYBURN (2) the Committee on Foreign Relations of by actual use during the preceding year.'' Until OF SOUTH CAROLINA the Senate. this century, men and women could only look IN THE HOUSE OF REPRESENTATIVES f at the sky and wonder what it was like to fly. Air and space travel was the stuff of science Tuesday, May 19, 1998 CONGRATULATING GULFSTREAM fiction and fantasy. But starting with that fate- Mr. CLYBURN. Mr. Speaker, I rise today to FOR WINNING THE 1997 COLLIER ful first flight in Kitty Hawk, America has led pay tribute to Ms. Deborah R. Johnson of Co- TROPHY the way in man's conquest of the skies. lumbia, South Carolina, a Richland School The list of the Collier Trophy's winners tells District One's 1998±1999 Teacher of the Year HON. STEPHEN HORN nearly the entire history of America``s leader- Finalist. Aside from being a recent finalist for OF CALIFORNIA ship in aviation and space travel. Past winners the district's top teaching honor, Ms. Johnson IN THE HOUSE OF REPRESENTATIVES include Orville Wright, Charles E. ``Chuck'' received her school's top honor by being Yeager, Neil Armstrong and the Apollo 11 named Virginia Pack Elementary School Tuesday, May 19, 1998 flight crew, Cessna, and Boeing. The Trophy Teacher of the Year. She is also a Richland Mr. HORN. Mr. Speaker, I rise today to call is on permanent display at the Smithsonian In- School District One Honor Roll Teacher of the the attention of the House to the winner of the stitution's National Air and Space Museum. Year. 1997 Robert J. Collier Trophy, aviation's most Gulfstream's employees and partners should Ms. Johnson received most of her formal prestigious award. The National Aeronautic take great pride in this historic achievement. education in the Sixth Congressional District, Association (NAA) recently awarded the Col- They deserve it. which I represent. She graduated from Burke lier Trophy to the Gulfstream Aerospace Cor- f High School in Charleston, South Carolina, poration and the Gulfstream V Industry Team and South Carolina State College, now South HONORING ATHENA AWARD for the Gulfstream VÐthe world's first ultra- Carolina State University, in Orangeburg. She WINNER long range business jet. The trophy honors the went on to receive her Masters in Education year's top aeronautical achievement in the and Computer Technology from the University United States. HON. NICK SMITH of Charleston, S.C. Gulfstream employs 5,800 people at five lo- OF MICHIGAN Ms. Johnson began her distinguished teach- cations, including approximately 800 at its IN THE HOUSE OF REPRESENTATIVES ing career in the Charleston County public Long Beach, California facility in my Congres- Tuesday, May 19, 1998 schools system. She was once Teacher of the sional District. The Gulfstream V is completed Mr. SMITH of Michigan. Mr. Speaker, I rise Month and twice the Distinguished Reading at the Long Beach facility. The Collier Trophy to pay special tribute to one of my constituents Teacher in the district. She was also Charles- brings a well-deserved honor to all of who has recently been honored with the ton County School District's Teacher of the Gulfstream's employees. ATHENA award by the Lenawee County Year for two consecutive years. During the The NAA specifically recognized Gulfstream Chamber of Commerce. 1994±1995 school year Ms. Johnson received and the Gulfstream V Industry Team ``for suc- Janet McDowell is an assistant to the super- both the President's Award and an Outstand- cessful application of advanced design and ef- intendent of the Lenawee Intermediate School ing Achievement Award for post-secondary ficient manufacturing techniques, together with District. She has been presented with the level teaching. innovative international business partnerships, ATHENA award for her outstanding contribu- Aside from having an impact on the lives of to place in customer service the Gulfstream tions to the Lenawee County community. many students, Ms. Johnson remains very ac- V.'' This aircraft is capable of flying 6,500 nau- It is gratifying that the Lenawee Chamber of tive in her community. She is often a poll man- tical miles at speeds up to Mach .885. It has Commerce has devoted itself to the task of ager for the election commission, a tutor for a superior cabin environment with a 100 per- recognizing those people who make such val- ``Community Helpers,'' a member of the Na- cent fresh air ventilation system, customized uable contributions to our community. And it is tional Association for the Advancement of Col- interiors, and the company's oversized signa- even more inspiring to know of the many good ored People (NAACP), and a member of the ture oval windows offering panoramic views. works of area residents such as Janet Alpha Kappa Alpha Sorority. The Gulfstream V has set 46 world and na- McDowell. As a former teacher in the school district tional records since receiving final certification As the Lenawee Chamber realizes, a where Ms. Johnson began teaching, I take on April 11, 1997. These records include: the healthy economic climate is not the sole char- great pleasure in her many accomplishments. May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E897 With a new millennium in sight, excellent The Borough was named for Richard Stock- ments of the bill provide for community notifi- teachers should be our nation's most prized ton, a signer of the Declaration of Independ- cation, a community comment period, annual possessions, for it is through their efforts the ence and member of the Continental Con- auditing of their expenditures, historical impact quality of our leaders of tomorrow will be de- gress. In the years to come, I sincerely hope statements and environmental impact state- termined. Mr. Speaker, I ask you to join me that Stockton will continue to build on the ments for new buildings and a separate de- today in honoring Deborah R. Johnson for her foundations of the past to ensure a happy and partment of recycling with public reports as to outstanding work as a role model and teacher. prosperous future for all its residents. the success of the recycling program. f I offer my congratulations and best wishes In addition, I would like to add that H.R. to Mayor Gigi Celli and the Borough Council. 1522 successfully addresses the codification RECOGNIZING READING It is my honor to have this municipality within of Executive Order 12072 and 13006. By COMMUNITY CITY SCHOOLS the boundaries of my district. And it is my drawing investment away from our cities, good fortune to be able to participate in its urban sprawl has been sucking the life out of HON. ROB PORTMAN very special day. our downtowns. Sprawling development leads OF OHIO f directly to traffic congestion, decreased air IN THE HOUSE OF REPRESENTATIVES quality, loss of farm and forest land, de- H.R. 1522 SPONSOR JOEL HEFLEY Tuesday, May 19, 1998 creased water quality and the need for costly AMENDS THE NATIONAL HIS- new infrastructure. As land development con- Mr. PORTMAN. Mr. Speaker, I rise today to TORIC PRESERVATION ACT tinues to press further and further out, many of recognize Reading Community City Schools our older suburbs have begun to deteriorate on their Celebration of Excellence, which will HON. EARL BLUMENAUER as well. be held on May 20, 1998. OF OREGON Despite the fact that Executive Order 12072 Reading Community City Schools have and 13006 require federal agencies to try to demonstrated a strong track record of aca- IN THE HOUSE OF REPRESENTATIVES locate in our cities, strong evidence suggests demic excellence, parental involvement and Tuesday, May 19, 1998 that federal agencies continue to abandon our community support. In fact, several Reading Mr. BLUMENAUER. Mr. Speaker, Congress cities in favor of suburban locations inacces- schools have been recognized as Blue Ribbon has a role to play in the design, preservation, sible to urban workers and urban transpor- award winners by the State of Ohio. and livability of our nation's capital. The land tation services. I am extremely pleased to see In particular, Reading Central Community that houses the nation's congressional offices, Elementary School has received national rec- the codification of these Executive Orders, so the Botanical Garden and several of the ad- that our federal agencies will no longer con- ognition for excellence by being named as a ministrative offices is under the stewardship of National Blue Ribbon School for 1996±1997. tribute to the blight of urban sprawl. the Architect of the Capitol. In the past, Con- f This designationÐgiven to only 268 public and gress has exempted the Architect of the Cap- private elementary schools nationwideÐis a itol from meeting the same building, design, CAMPAIGN FINANCE REFORM real tribute to the faculty, staff, students and and community notification guidelines it re- parents who have shown a great deal of dedi- quires other builders in the city and nation to HON. RON KIND cation, leadership and hard work. meet. These exemptions have not worked to OF WISCONSIN Too often, newspaper headlines are filled the public's benefit. IN THE HOUSE OF REPRESENTATIVES with stories about inadequate performance by In the early 1960's Congress spent over Tuesday, May 19, 1998 our schools and our students. It is my hope $100 million to build the Rayburn House Office that the achievements of Reading Community Building. It was designed by the Architect of Mr. KIND. Mr. Speaker, this could finally be City Schools will serve as a model and will in- the Capitol of the time, J. George Stewart. the week. After a year and a half of work by spire other schools in our region and through- The building sits on 50 acres and is widely members of Congress, reform groups and the out the country to work toward new levels of considered a waste of precious space. Only general public the pressure to schedule a vote academic excellence. 15 percent of the building is used for hearing on campaign finance reform may have suc- I commend Superintendent John Varis, rooms and offices. Forty-two percent is used ceeded. This week, if the leadership keeps it's Board of Education President Albert for parking. The appearance and design of the word, we will begin consideration of campaign Kretschmar, the faculty, staff, parents andÐ building since its inception has been consid- finance reform. most importantlyÐthe students themselves, ered architecturally void and barely functional This debate is long overdue. I have been for their hard work and dedication that have with its hallways that end without warning. delivering a daily statement in the House of made this Celebration of Excellence so richly Again, in 1997 the Architect of the Capitol, Representatives calling for a vote. Enough has deserved. without consulting the public, demolished an already been said about the abuses of the f historic row house built in 1890 to construct a system or the way that money has distorted our democratic process. It should be clear by RECOGNIZING THE 100TH ANNIVER- $2 million day care center. The location was now that the public is frustrated with the sys- SARY OF THE BOROUGH OF bitterly opposed by residents and local groups. tem and they want change. Now is the time to STOCKTON The Architect demolished the historic house and constructed a new structure with what ap- bring some control to the out of control money peared to be an act of very little coordination race that dominates our elections. HON. MICHAEL PAPPAS I will not stop my work until the leadership with the people who lived in the neighborhood. OF NEW JERSEY finally allows a vote on campaign finance re- Sadly enough, today the structure is nonfunc- IN THE HOUSE OF REPRESENTATIVES form on the floor of the House. We have seen tional due to a deadly toxin which developed promises broken in the past, but we will not let Tuesday, May 19, 1998 on site. the leadership break their promise this time. Mr. PAPPAS. Mr. Speaker, it is my privilege Fortunately, Representative JOEL HEFLEY's The people are demanding reform and it is to send congratulations and best wishes to the bill H.R. 1522 takes steps to bring the Archi- time for us to take action. citizens of the Borough of Stockton, New Jer- tect of the Capitol under the same guidelines f sey as they commemorate the 100th anniver- as other builders who are required to abide by sary of the incorporation of their community. the National Preservation Act. I am pleased CONGRATULATING TYLER SELL- This is a day of celebration and remem- and hopeful the mistakes of the past will not ERS OF VICKSBURG, MISSISSIPPI branceÐa time to celebrate the growth and have the opportunity to be repeated due to the achievements of Stockton while remembering building guidelines in this bill and other efforts HON. BENNIE G. THOMPSON the efforts and sacrifice of the good men and currently in process by my office. The Archi- OF MISSISSIPPI women, past and present, who helped to tect of the Capitol needs to update their serv- IN THE HOUSE OF REPRESENTATIVES make the Borough what it is today. ices by including the public in their decision On Saturday, May 16, 1998, the Borough making process and by following building Tuesday, May 19, 1998 will celebrate its centennial with a parade, guidelines established by Congress. Mr. THOMPSON. Mr. Speaker, I rise today music and a picnic. Local students will also Currently, I am working to expand the ef- to congratulate one of my constituents, Tyler present a time capsule during the celebration forts put forth in H.R. 1522 with legislation that Sellers of Vicksburg, Mississippi, for winning a as a way of passing along a piece of Stock- would address several areas of the operation Grand Prize during the recent international po- ton's history for future generations. of the Architect of the Capitol. The major ele- etry contests sponsored by the River of Words E898 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 Environmental Poetry and Art Project. A third form and worked to provide better health care 1998) the Centers for Disease Control re- grader at Culkin Elementary School, Tyler has to poor children and was the innovator of re- ported that costs related to asthma were esti- written a truly moving description of one of the forms that have resulted in a better education mated to be $6.2 billion in 1990, and expected pleasures we can all gain from a healthy natu- system for Michigan. Mike Nye's improve- to more than double by the year 2000. ral environment. I would like to read the poem ments in court reform, school reform, tort re- The Urban Asthma Reduction Act of 1998 into the CONGRESSIONAL RECORD in hopes that form, and juvenile justice reform will be a con- asks for action. The bill proposes to amend it will encourage all its readers to develop a tinuing legacy of his knowledge, ability and the Preventive Health and Health Services better appreciation of the great outdoors. leadership in the Michigan legislature. Block Grant Program, authorized by the Public Health Service Act, by adding integrated cock- FISHING ON THE OUACHITA In an era of overheated rhetoric and blatant partisanship, Mike Nye stands out as a concil- roach management to rodent control as an eli- I burn my lure beneath the surface, gible activity for funding. Several groups have Cordell redfin, real as rainbow iatorÐa legislator who brought people to- you like to feast on. gether. Mike Nye was often the man people expressed support in working on behalf of the Starving striped bass turned to when they needed a leader to final- legislation. These include the Chicago Asthma cruising for a bleeding shad, ize and pass legislation. Coalition, Southside Health Consortium Amer- you rise swift as white gulls above me, Mr. Speaker, my colleagues and I here in ican Lung Association, and the Safer Pest deep from your blue hidden kingdom. Washington can learn a lot from the service of Control Project, a statewide coalition that pro- I wait for the moment Mike Nye. His contributions to public policy motes pesticide use reduction throughout Illi- when I feel you strike are equaled by his and his wife, Marcie's, nois. like a flood swallowing a levee. Integrated cockroach management is a Your fight breaks the water, dedication to their community. Marcie's leader- ship in working in the prison system with her multi-faceted approach to controlling the prev- silver courage stronger than this line. alence of cockroaches while minimizing pes- It gives, you take, Kids Need Moms program is a great example becoming my wish for another day. of their commitment to help people. ticide use. It involves a range of techniques that include building cleaning and mainte- f I know Mike's future contributions will be just as worthwhile to all of us, regardless of nance, and using pesticides as a means of CONGRATULATIONS TO THE what path he may take. God bless you, Mike, last resort. The funds could be used for struc- REPUBLIC OF CHINA and good luck. tural rehabilitation of buildings. This includes f patching holes or open pipes that allow cock- roaches entry; caulking cracks in walls; mov- HON. DONALD M. PAYNE INTRODUCTION OF THE URBAN ing bushes away from buildings so cock- OF NEW JERSEY ASTHMA REDUCTION ACT OF 1998 roaches do not have easy access; and ensur- IN THE HOUSE OF REPRESENTATIVES ing that all windows are properly screened. Tuesday, May 19, 1998 HON. BOBBY L. RUSH Integrated cockroach management can work. One example comes from Chicago. Mr. PAYNE. Mr. Speaker, I rise today to OF ILLINOIS Residents of the Henry Horner Public Housing congratulate the Republic of China. If there is IN THE HOUSE OF REPRESENTATIVES Development successfully created and carried one country that deserves praise, it is the Re- Tuesday, May 19, 1998 public of China on Taiwan. It is a country with- out an integrated pest control program with out natural resources, yet it has become an Mr. RUSH. Mr. Speaker, I am pleased today assistance from the Safer Pest Control oasis of wealth in Asia. This economic miracle to join with several of my colleagues, to intro- Project. The Henry Horner Pest Control Pro- is due to the leadership of Taiwan's President duce The Urban Asthma Reduction Act of gram is illustrative of the type of pro-active Lee Teng-hui and Vice President Lien Chan. 1998. and preventive work that the Urban Asthma Sworn in as the ninth president and vice This bill takes an important step towards in- Reduction Act of 1998 would support. The Urban Asthma Reduction Act creates president of the Republic of China on May 20, creasing the federal commitment to reducing new possibilities for communities that are seri- 1996, President Lee and Vice President Lien the high rate of asthma-related illnesses and ous about making integrated pest manage- have worked very hard to maintain Taiwan's hospitalizations of inner city children who suf- ment a component of a comprehensive public economic growth and initiated all types of po- fer from asthma and who also are allergic to health policy. City-wide cockroach control car- litical reform. Today, Taiwan stands tall among cockroach allergen. In 1997, the National Insti- ried out in Budapest, Hungary between 1978 all nations. It is rich, free and respects human tutes of Health (National Institutes of Allergy and 1990 resulted in nearly cockroach-free rights. It is a full democracy. and Infectious Diseases) reported conclusively housing, schools, factories, hospitals, and On the occasion of President Lee and Vice that asthmatic children who were both allergic other public facilities. Budapest's experience is President Lien's second anniversary in office, to cockroaches, and exposed to high cock- documented in ``Efficacy of Large-Scale Rat I extend to them my best wishes and con- roach allergen levels, were hospitalized 3.3 and Cockroach Control Actions in Budapest gratulations. times more often than children who were ei- Shown by Experiences Over a 23-Year Pe- f ther only exposed or allergic. The link between asthma and allergy to riod,'' a paper presented at the 1996 Inter- HONORING REPRESENTATIVE cockroaches is a serious public health con- national Conference on Urban Pests held in MIKE NYE cern. In light of the NIH findings, there should Edinburgh, Scotland. be increased federal assistance to commu- Both the Henry Horner Pest Control pro- HON. NICK SMITH nities to address the problem. gram and the experience of Budapest dem- Asthma is on the rise, especially in inner cit- onstrate that a significant reduction in urban OF MICHIGAN cockroach prevalence can be achieved and IN THE HOUSE OF REPRESENTATIVES ies. Last month, the Centers for Disease Con- trol (CDC) and Prevention reported that more maintained. My hope is that the Urban Asthma Tuesday, May 19, 1998 than 15 million Americans suffer from asth- Reduction Act of 1998 will prove a viable tool Mr. SMITH of Michigan. Mr. Speaker, I rise maÐan increase of 75 percent between 1980 for urban communities to improve the quality to join the citizens of Hillsdale and Branch and 1994. of life and health of all residents, but espe- Counties to pay special tribute to our rep- Asthma is a growing concern for poor and cially children who suffer from asthma. I urge resentative in the Michigan legislature. minority communities, especially African Amer- all my Colleagues to join me in cosponsoring So many people talk about the kind of lead- ican and Latinos. In 1993, among children and this legislation. er they want to represent them in government adults, African Americans were 3 to 4 times f and Mike Nye fits that definition by every more likely than whites to be hospitalized for HONORING THE 57TH ANNIVER- measure. asthma. They were 4 to 6 times more likely to SARY OF THE BATTLE OF CRETE This week, my friends in Hillsdale County die from asthma. will honor Mike Nye for his sixteen years of The social and economic costs are high. dedicated leadership in Lansing. They know, These children are more likely to miss school HON. CAROLYN B. MALONEY OF NEW YORK as I do, that few people have accomplished more often, go to the doctor or emergency IN THE HOUSE OF REPRESENTATIVES more in that time for the people of Michigan. room more frequently, and lose sleep. Con- Mike Nye's retirement from the state legisla- sequently, the adults who care for these chil- Tuesday, May 19, 1998 ture is a great loss. As a member of the dren may have to miss work to care for them. Mrs. MALONEY. Mr. Speaker, I rise today House, he fought for commonsense legal re- According to The Washington Post (April 24, to mark the 57th anniversary of the Battle of May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E899 Crete. This is a historic event with direct sig- Minos, Emmanuel Piperakis, Cretan Brother- vided countless Central Coast families with nificance to the allies' victory of World War II. hood, George Filippakis, Erotokritos and hope and a home, People's Self-Help Hous- On May 20, 1941, thousands of German Aretousa, Marina Pefani, Pasifai, Cleo Aliferis, ing. paratroopers and gliders began landing on Cretan Sisterhood, Emmanuel Vlastakis, People's Self-Help Housing is being hon- Crete. Both the allies and Nazis wanted Crete Filoxenia, John Daskos, Diktamos, Andreas ored today by the Fannie Mae Foundation for because of its strategic location. At that time Fiotodimitrakis, Labris, Mr. Polihronakis, sustained excellence in their work. It is an the British controlled the island. It was a very Idomeneas and Mr. Berikakis, Kazatzakis are award of recognition that is justly deserved. strong point on the lifeline to India and pro- excellent representatives of their Cretan herit- Through the efforts of the good and hard- tected both Palestine and Egypt. age. working individuals at People's Self-Help, The Nazi invasion force included the elite I request my colleagues to join me in honor- more Central Coast families live in places they German paratroopers and glider troops. Hitler ing the Cretans in the United States, Greece want to call home. I extend to them my sincer- felt this was to be an easy victory, yet he is and the diaspora. est thanks for their years of dedication, and quoted to have said shortly after the invasion, f congratulations for achieving this well de- ``France fell in 8 days. Why is Crete free?'' served commendation for the Fannie Mae The invasion of Crete took 11 days. It resulted A SPECIAL TRIBUTE TO SCOTT B. Foundation. in more than 6,000 German troopers listed as RADCLIFFE ON HIS APPOINT- People's Self-Help Housing has been pro- killed, wounded or missing in action. The MENT TO ATTEND THE UNITED viding housing for low income families for losses to the elite 7th parachute division were STATES MILITARY ACADEMY AT more than 25 years. They have produced over felt so hard by the German Military it signified WEST POINT, NEW YORK 1400 units for low income seniors, families, the end of large-scale airborne operations. farmworkers, and other special needs groups. This valiant fight by the Cretan people HON. PAUL E. GILLMOR Expanding beyond their original ``sweat equity'' began in the first hour of the Nazi airborne in- OF OHIO program, People's Self-Help now handles af- vasion. In contrast of the European under- IN THE HOUSE OF REPRESENTATIVES fordable rental units, property management ground movements that took a year or more and complete construction services. They pro- after being invaded to activate. Young boys, Tuesday, May 19, 1998 vide well managed properties and ensure that old men and women displayed breathtaking Mr. GILLMOR. Mr. Speaker, I rise today to much needed health and education services bravery in defending their Crete. German sol- pay special tribute to a truly outstanding young are available to residents of these commu- diers never got used to Cretan women fighting man from Ohio's Fifth Congressional District, nities. them. They would tear the dress from the Scott B. Radcliffe. Scott recently accepted his Mr. Speaker, I have known the head of this shoulder of suspected women to find bruises offer of appointment to attend the United wonderful organization, Jeannette Duncan, for from the recoil of the rifle. The penalty was States Military Academy at West Point, New years and I have seen firsthand the fantastic death. The Times (London) July 28, 1941 re- York, and will soon enroll as part of the Cadet work that this group does. People's Self-Help port that ``five hundred Cretan women have Class of 2002. helps to fill a glaring need in our bucolic sea- been deported to Germany for taking part in Scott, who is from Perrysburg, Ohio, will side and inland rural communities. Housing is the defense of their native island.'' soon be graduating from Perrysburg High expensive on the Central Coast and finding Another surprise for the German soldiers School. After graduation, he will begin prepar- clean, affordable, quality homes and apart- who invaded Crete was the heroic resistance ing for what figures to be one of the most ex- ments can be a real struggle for people of lim- of the clergy. A priest leading his parishioners citing, challenging, and educational experi- ited means or extraordinary needs. into battle was not what the Germans antici- ences of his life: his four years at West Point. Among their many accomplishments, Peo- pated. At Paleochora, Father Stylianos While attending high school in Perrysburg, ple's Self-Help has provided farmworkers with Frantzeskis, hearing of the German airborne Scott distinguished himself as a talented stu- national award-winning townhouses in Santa invasion, rushed to his church, sounded the dent. His academic achievements in the class- Maria, updated the Victoria Street apartments bell, took his rifle and marched his volunteers room are certainly accomplishments of which in downtown Santa Barbara, and provided toward Maleme to write history. This struggle he can be proud. An honors student, Scott apartments for seniors in Templeton. Through became an example for all Europe to follow in has maintained a cumulative grade point aver- their creativity and persistence, the Central defying German occupation and aggression. age of 3.3, placing him near the top in his Coast has filled communities where low and The price paid by the Cretans' for their val- class of 315 students. moderate income families find an opportunity iant resistance to Nazi forces was high. Thou- In addition to his excellent work in the class- to participate in the American dream. sands of civilians died from random execu- room, Scott has proven himself to be a tal- They have done these things by working tions, starvation, and imprisonment. Entire ented and gifted student-athlete. Scott has ex- with developers, banks, local, state and Fed- communities were burned and destroyed by celled on the fields of competition throughout eral officials. But most of all, they have done the Germans as a reprisal for the Cretan re- his high school career. During his senior year, this by thinking first and foremost of the com- sistance movement. Yet this resistance lasted he was selected as the Captain of the Varsity munities they serve and the people who so for four years. The battle of Crete was to Football Team and the Varsity Basketball often are forgotten in our society. change the final outcome of World War II. Team. He has also been active in the This is an example of public-private partner- The Battle of Crete significantly contributed Perrysburg Show Choir, symphony, and the ship that works, providing services to commu- in delaying Hitler's plan to invade Russia. The school musical. nities that need them and opening the doors invasion was delayed from April to June of Mr. Speaker, each year, I have the oppor- of opportunity to all. 1941. The two month delay in the invasion tunity to nominate several outstanding young I commend Jeannette and everyone at Peo- made Hitler's forces face the Russian winter. men and women from the Fifth District to the ple's Self-Help for their years of service and The Russian snow storms and the sub zero nation's military academies. I am pleased that success, and in the recognition that is being temperatures eventually stalled the Nazi inva- Scott was among those nominated for the bestowed upon them today. sion before they could take Moscow or Lenin- West Point Class of 2002. I would urge my f grad. This was the beginning of the downfall colleagues to stand and join me in paying spe- HONORING CALVIN AND MARJORIE of the Nazi reign of terror. cial tribute to Scott Radcliffe, and in wishing BRIGHT This significant battle and the heroic drive of him well at West Point and in the future. the Cretan people must always be remem- f HON. GARY A. CONDIT bered and honored. Democracy came from OF CALIFORNIA Greece and the Cretan heroes exemplified the IN HONOR OF PEOPLE’S SELF- IN THE HOUSE OF REPRESENTATIVES courage it takes to preserve it. HELP HOUSING Today, the courage and fortitude of the Cre- Tuesday, May 19, 1998 tan people is seen in the members of the HON. LOIS CAPPS Mr. CONDIT. Mr. Speaker, I rise today to United Cretan Associations of New York, that OF CALIFORNIA honor a pair of very special friends of mineÐ is located in Astoria. The association's Chair- IN THE HOUSE OF REPRESENTATIVES Calvin and Marjorie BrightÐand to recognize man Steven Kohilakis and Co-Chairman them as they become the first recipients of the Tuesday, May 19, 1998 Charles Marangoudakis, together with the Bart Bennett Community Award. presidents of the member clubs: Emmanuel Mrs. CAPPS. Mr. Speaker, I rise today to This award, given by the City of Modesto in Taouganakis, Omonia, Emmanuel Velonakis, pay tribute to an organization that has pro- my district in California's great Central Valley, E900 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 is in honor of Calvin and Marjorie's tireless ef- and orating the best patriotic script in Kansas feated. As long as I know I am right and te- forts of putting others before themselves and entitled ``My Voice in Our Democracy'' for this naciously defend my opinions, I will never be working for the betterment of our community. nationwide competition. Her insight into the conquered. Even if I have to write a letter Not only are these people pioneers in local daily for years, make thousands of signs, or importance of each individual's role in our de- vote year after year for the same proposal, I housing, they have given back to the commu- mocracy and the eloquence with which she will eventually make a difference as long as nity time and time again. Perhaps Community states her ideas, exemplifies the principles this I believe in myself. Still, it’s hard to be con- Housing and Shelter Services Executive Direc- country was founded upon. I am proud to an- fident if I don’t know about the issue. tor Diana Olsen summed it up the best when nounce that as a result of her hard work, Ms. In order to have a strong voice in our de- she said, ``I can't think of anyone else that de- Baccus has been awarded $3,500. mocracy, I must be educated. First, without serves this award more.'' The men and women of the Veterans of being informed, I cannot know enough about Calvin and Marjorie were volunteering their Foreign Wars and its Ladies Auxiliary deserve issues to find the position I want to fight for, time and efforts before voluntarism became recognition for their generous sponsorship of and without fully understanding my views, I cannot adequately defend them. Finally, popular. I'd like to take a moment to focus on this scholarship program. I especially com- since affairs in a democracy are constantly some of their achievements. Not only did they mend VFW Post 3201 and its Ladies Auxiliary changing, education can never stop; it must establish the Bright Family Foundation which in Minneapolis, Kansas for their local sponsor- be ongoing. Overall, knowledge is power es- includes the Marjorie H. Bright Scholarship ship. This year fifty-six young leaders from pecially when it comes to democracy. Program for students at California State Uni- across the nation received scholarships total- Vibrant, overcoming, insightful, confident, versity Stanislaus, Modesto Junior College, ing $128,500. and educated. Although the use of the acro- University of the Pacific and San Jose State I am proud that the VFW have honored Ms. nym V.O.I.C.E. is clever, this actually is University and other universities in Utah and Mindy Baccus with this year's award. I wish what voice truly stands for. I know my voice in our democracy embodies all of these traits Oklahoma; they also sponsor a medical fellow- Ms. Baccus all the best in her chosen career and will as I continue to enter adulthood. ship at the University of California, San Fran- path and in her studies at William Jewell Col- Everyone has a voice in our democracy; they cisco School of Medicine. lege. must simply learn to use it. One person can Particularly poignant to me is the fact that ‘‘MY VOICE IN OUR DEMOCRACY’’ truly make a difference, and that one person despite their success, they have never forgot- Ballots! Ballots! Get’em while they’re hot! could be me * * * or you. Ballots! Ballots! ten their roots in helping provide scholarships Here sir, have a ballot! What!? You don’t Get’em while they’re hot. Here, would you for students from their high school alma mater, want one! You’re a US citizen 18 or over, like a ballot? Of course you would. Beggs High School, in Beggs, Oklahoma. I am aren’t you? Well, then take a ballot. Oh, you honored to call Calvin and Marjorie my friends. think one person can’t make a difference? f What about you ma’am. You want one, The Bright Foundation also actively supports AIR FORCE SCIENCE AND TECH- the Children's Crisis Center and the Boy right? After all, women fought for the right to vote for over a century. You’ll take ad- NOLOGY REINVIGORATION ACT Scouts of America. vantage of that privilege, won’t you? What, Calvin formed Bright Development in 1971 you think your opinion doesn’t matter. Well, in Modesto. The firm has built approximately you’re wrong. You need to sit down and let HON. TONY P. HALL 3,000 single-family homes, in addition to town- me tell you about my voice in our democ- OF OHIO houses, apartments and commercial office racy. In fact, all of you need to listen be- IN THE HOUSE OF REPRESENTATIVES buildings. He founded Bright Foods in Turlock cause anyone can have a voice in our democ- Tuesday, May 19, 1998 in 1956, one of the first frozen prepared food racy as long as they remember what voice processing plants on the West Coast. Bright truly stands for. My voice is vibrant, over- Mr. HALL of Ohio. Mr. Speaker, today I join coming, insightful, confident, and educated. my colleague Mr. Boehlert in introducing the Foods and FM Stamper of St. Louis were Never half-hearted, my voice is pulsing merged and renamed Banquet Foods in 1966. Air Force Science and Technology Reinvigora- with life, energy, and vigor. No one can re- tion Act, a bill to restore the role of scientific Banquet was later sold to RCA Victor in 1969. sist being drawn to my enthusiasm. Whether Marjorie Bright worked actively in the cou- writing letters to public officials, discussing research as a driving force in the decision- ple's food processing and building businesses. policy decisions with those around me, or en- making of the United States Air Force. The bill She was the personnel and labor relations couraging my peers to become more active establishes the new positions of Assistant manager of Bright Foods and now serves as in government; I always convey my beliefs Secretary of the Air Force for Science and the general manager of Woodside Manage- with energy and vitality. By doing so, I set Technology and Deputy Chief of Staff for an example that others are compelled to fol- Science and Technology. The bill will require ment Group. Woodside has more than 100 low because everyone can see that I truly be- employees and manages approximately 3,000 minimal expense. The two new positions are lieve in what I’m saying. However, regardless similar to positions which once existed in the apartments. of how vibrant my voice is, someone is usu- Mr. Speaker, it is with great pride that I ally waiting to stifle it. Air Force. These changes could help reinvigo- stand before the House of Representatives For that reason, my voice must be over- rate Air Force science and technology and and ask my colleagues to join me in honoring coming. I know that I must never let others help return the Air Force to the spirit of its Calvin and Marjorie Bright for their outstanding make me compromise what I truly believe. founding missionÐa mission that established service to our community. Because so many policies in our society and maintained the world's supreme air fight- today are controversial, viewpoints often en- f ing force.***HD***Background counter strong opposition, but in order to be Scientific investigation, accompanied by the CONGRATULATIONS TO MINDY as close to a democracy as possible, many di- new knowledge it generates and the founda- verse opinions must be heard. Obviously, BACCUS, VFW VOICE OF DEMOC- without a voice that’s overcoming, having tion it lays for development of new tech- RACY SCHOLARSHIP WINNER any voice in our democracy would be ex- nologies, is the cornerstone of air and space tremely difficult. Often, fully understanding superiority. The Air Force as no other military HON. JERRY MORAN a situation will help me overcome obstacles. service should recognize the singular impor- As a result, I must be insightful. By look- OF KANSAS tance of science to its beginning and survival. ing deeply into a situation, I can find details IN THE HOUSE OF REPRESENTATIVES Technology has been an engine that drives which support my opinion and by pointing the Air Force as an institution. More than the Tuesday, May 19, 1998 out aspects of an argument that others may other services, the Air Force is where sci- have missed, I can gain more support for my Mr. MORAN of Kansas. Mr. Speaker, I rise view. Additionally, thoroughly exploring a entists and engineers must do their work today to congratulate Ms. Mindy Baccus from policy helps me to make the right decision years before the battle begins. Ada, Kansas on being named a National win- from the beginning. Soon, others will recog- As critical as it is to military aviation, support ner in the 1998 Voice of Democracy Scholar- nize me as a strong analyst and will gain for science and technology has been feast or ship Competition sponsored by the Veterans more respect for my views, even if they don’t famine throughout Air Force history. In times of Foreign Wars and its Ladies Auxiliary. agree with them. Although my peers may of war or national emergency, science and Ms. Baccus is a senior at Minneapolis High not agree with me, I will never stop believing technology are almost always fully funded and in myself. School and hopes to pursue a career in com- That’s why my voice must be confident. If encouraged. However, as soon as the crisis is munications or Law. She has been honored I don’t believe in myself, no one else will be- over, science and technology are de-empha- for her scholastic and extracurricular activities lieve in me either. Regardless of the opposi- sized until the next crisis. As a result, in the and exhibits outstanding leadership qualities. tion I face or whether I feel like I’m alone in past the United States has found itself techno- She has again distinguished herself by writing my views, I can never let myself feel de- logically behind enemies and allies, and has May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E901 been forced to play catchup when responding gram which reached its height by 1939. Some The result was Toward New Horizons, a 12- to a national emergency. of the technological advances made during volume report delivered to Gen. Arnold on De- The feast-or-famine approach has not yet this period were all metal aircraft, pressurized cember 15, 1945. This work, written by 25 failed us. However, as technology becomes cabins, retractable landing gear, and auto- eminent scientists, became the blueprint of Air more complex, the lead time from the incep- matic landing systems. However, this tech- Force research and development. tion of new research to fully-deployed weapon nology was aimed at building better planes, Dr. von Karman believed that only a con- systems grows longer. For example, the smart not war fighting machines. stant inquisitive attitude toward science and weapons that worked so well in Desert Storm When World War II began, the Army Air ceaseless and swift adaptation to new devel- were the result of a technology build up that Forces had already started to dismantle its opments could maintain national security. He began in the 1960s. Unless the Air Force sta- aviation research programs and it was con- was convinced that the twentieth century had bilizes long-range research at sufficiently high ducting little research to develop military air- transformed war from a drama of human en- levels, our Nation could face a crisis without craft. Aircraft developed during and after the durance to a technological contest for control the technology necessary for vic- air mail crisis was retrofitted for war service. of the air. In the introduction to his report tory.***HD***Air Force Science and Tech- Once again the country had to ramp up avia- (called, ``Science, the Key to Air Supremacy,'' nology Policy tion research on a crisis basis. Dr. von Karman recommended a peacetime A HISTORICAL OVERVIEW By hiring outside expert scientific and engi- research and development budget equal to Air Force science and technology (S&T) neering consultants, the Army Air Forces five percent of the annual Army Air Forces grew from the technical revolution that began quickly developed a successful wartime re- wartime budget. Dr. von Karman forcefully ar- with development of the first airplane by the search and development effort. Some of the gued for an institutional alignment in which Wright brothers in Dayton, Ohio. The Army most important aircraft of World War II and im- science permeated the entire military struc- purchased a plane from the Wright brothers, mediately afterward were developed during ture. To do this, he recommended separating but the service did not appreciate the value of this period, including pursuit planes and giant, the management and funding of research from scientific research in the new field of aero- long range bombers, such as the B±29 and weapons systems procurement, working close- nautics. Few pilots received technical training. the B±36. Revolutionary new technologies in- ly with industrial research efforts, and provid- For the most part, they cared only about the cluded jet and rocket motor propulsion, ad- ing technical education of officers. finished product. Between 1909 and the begin- vanced aerodynamics, gun and bomb sights, The efforts of Gen. Arnold and Dr. von ning of World War I, the Army Signal Corps radars and communications equipment, and Karman came to fruition with the National Se- purchased 24 airplanes, but conducted no synthetic materials. However, after the war, it curity Act of 1947, which changed the Army aviation research. During World War I, the became apparent that the American program Air Forces to the independent U.S. Air Force Army designed no military aircraft, instead re- lagged behind both the German and British (USAF). The new USAF was no longer bound lying on foreign aircraft that were shipped to programs. This position was unacceptable to to the Army and its procurement-drive policies. the United States and copies. the men who would soon lead the new Air It was now free to pursue the research that In October 1917, the Army established the Force. They determined this would never hap- would be necessary to give the United States Experimental Engineering Division at McCook pen again. air and space supremacy. Field in Dayton, Ohio, to help the fledgling ESTABLISHMENT OF THE U.S. AIR FORCE RESEARCH AND DEVELOPMENT IN THE NEW U.S. AIR American aeronautical industry design and The experience of World War II clarified the FORCE produce military planes. McCook Field oper- problems that had plagued military aviation General Arnold was not able to complete his ated as no other Army Air Field. It employed from the beginning. The Army was not orga- vision of an Air Force lead by science and he primarily a civilian workforce of scientists, en- nized to conduct advanced research for two retired due to ill health. Dr. von Karman con- gineers, and support personnel who were ex- reasons: First the Army Air Forces was a tinued the effort, resulting in the establishment empted from many of the ordinary civil service branch of the Army and did not have control of a permanent Scientific Advisory Board rules, including those on hiring. The Army re- of its own budget, research, or weapons de- (1947) and the Office of Air Research (OAR) cruited the best and brightest scientists and velopment. Second, and perhaps even more in the Materiel Command's Engineering Divi- engineers in the country from industry and important, the Army's policy stated that military sion (1948). academia, both seasoned professionals and research and development should be confined In the late 1940s the Air Force issued a new graduates. to improving existing aircraft, tanks, and artil- master plan for research and development In the early 1920s, McCook Field was the lery. place to be for anyone interested in aeronauti- Gen Henry H. ``Hap'' Arnold, Commander of which was shaped by Brig. Gen. Donald L. cal science and engineering. It was the place the Army Air Forces in World War II, recog- Putt, Director of Research and Development. to discover how to design and build military nized the importance of the technological rev- Like Gen. Arnold and Dr. von Karman, Gen. aircraft, and more importantly, to develop new olution that had taken place during the war, Putt thought that scientific research and devel- concepts and technologies. It had beocme the especially its potential to project air power. He opment decisions were too much influenced United States' center of aeronautical research knew all too well the historical pattern of feast by the need for procurement. and development. and famine in aviation research and he set In keeping with the Arnold-von Karman vi- By the mid 1920s, the engineering staff de- about to preserve and expand the military sci- sion, the plan gave top billing in the Air Force signed and tested its own aircraft prototypes entific cooperation that had been built up dur- mission to research and development during and equipment, including engines. The experi- ing the war. peacetime. The plan also recommended that mental engineering activities at McCook field In 1944, Gen. Arnold told a group of sci- all research and development activities should came to an abrupt end when the aeronautical entists, ``For twenty years the Air Force was be unified under the direction of a Deputy industry complained of unfair competition. built around pilots and more pilots. The next Chief of Staff for Research and Development. World War I was over and industry leaders Air Force will be built around scientists.'' Putt's efforts eventually lead to the estab- thought there was no longer any need for the It was clear to Gen. Arnold that air power lishment in 1950 of the Air Research and De- Army Air Corps to experiment with aeronautics was essential to victory in World War II and velopment Command (ARDC) to concentrate or develop new military aircraft. TheyÐand the research was the key to air power. He felt that resources and facilities on turning out new and nation as a wholeÐfelt there would never be research should be continuous, without the fits radically improved materiel and techniques. another war like World War I. and starts of the past, and that it should tap These include supersonic flight, guided missile The Army Air Corps found new importance the best minds of the nation. His deepest con- technology, ``swing wing'' aircraft, ramjet pro- in scientific research after President Franklin cern what that in the next war, unlike previous pulsion, ballistic missiles, ``century series'' D. Roosevelt assigned the Corps the emer- conflicts, advanced enemy technology would fighters (F±100, F±102, et al.), and research gency role of carrying air mail in 1934. The not give the United States time to get ready aimed at reducing the radar cross section of Army Air Corps' men and equipment were un- after the outbreak of hostilities. air vehicles. prepared to accomplish the mission. The Gen. Arnold commissioned Dr. Theodore The outbreak of the Korean War and the Corps discovered that its inability to respond von Karman, the prominent aerodynamicist creation of ARDC in 1950 brought temporary successfully to the national emergency was a and mathematician and head of the funding and manpower relief to Air Force sci- direct result of the cancellation of its aero- Guggenheim Aeronautical Laboratory of the entific research and technology development. nautical experimental engineering program. California Institute of Technology, to survey However, the research laboratories were still This experience lead the Army Air Corps into wartime technological achievements and chart spending most of their resources on near-term an ambitious research and development pro- a future course for an independent Air Force. engineering development of new systems and E902 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 engineering in support of the maintenance de- The 1987 reorganization also removed the po- Likewise, another prediction of Gen. Arnold pots. ``Over the horizon'' (long-range tech- sition of Deputy Chief of Staff for Research, may yet come trueÐthat the next war will be nology) projects still took a decidedly back Development, and Acquisition. These adminis- won not by pilots, but by scientists. Unfortu- seat. trative actions left research and development nately, the Air Force is heading in a direction This lack of long-range planning hit home virtually without a voice at the highest levels of where our pilots will be inadequately sup- on October 4, 1957, when the Soviets placed Air Force headquarters. ported by the best technology. The continued the first artificial satellite in orbit around the The 15 volume New World Vistas Study un- erosion of funding for scientific research and earth. The shock to the U.S. public caused by dertaken by the Air Force Scientific Advisory the continued aging of the science and tech- Sputnik was profound. Board and reported to the Chief of Staff of the nology community will leave the Air Force The Air Force responded with a sustained Air Force in 1995 made a number of rec- where it startedÐdepending upon someone scientific research and technology develop- ommendations to reinvigorate Air Force else's technology. ment effort unparalleled in the history of avia- Science and Technology. Air Force leadership The vision of Gen. Arnold and Dr. von tion warfare. General Bernard Schriever, Com- has implemented very few if any of the rec- Karman is gone. What was intended to be the mander of ARDC, successfully advocated ex- ommendations. technology service is now behind the other panded emphasis in research and develop- In the mid±1990's, in a complete reversal of services in future thinking. In short, today's Air ment funding. As a result, in 1961 the Air Air Force policy, the Air Force decided to force is eating its own seed corn at such a Force established Air Force Systems Com- eliminate the graduate school of engineering rate that tomorrow's Air Force could be flying mand (AFSC), with responsibility for all re- within the Air Force Institute of Technology. with yesterday's technology. search, development, procurement, produc- This school ensured that scientific education The legislation I introduce today is a modest tion, testing, and evaluation. was integrated into the training of Air Force of- attempt to restore the role of science and With most of the elements in place, the Air ficers and it provided additional research for technology in the Air Force through organiza- Force came as close to the Arnold-von the Air Force laboratories. Only after a storm tional change. First, it would separate S&T Karmon vision as it has ever been. Some of of severe criticism did the Air Force agree to management and funding from the manage- the research conducted by Air Force labora- maintain the school. ment and funding of procurement. This would tories under AFSC at this time included the The strongest evidence that the Arnold-von ensure higher visibility of S&T funding and advanced turbine engine gas generator pro- Karmon model for the Air Force has collapsed make it more difficult to shift funds from S&T gram, a high-bypass turbofan engine for the is the initial science and technology budget to pay for other requirements. This is in keep- giant C±5A airlifter, ramjet and scramjet power the service submitted to the Secretary of De- ing with the Arnold-von Karman model, and plants, aircraft and spacecraft electrical sys- fense for fiscal 1999. Despite specific Defense was the procedure followed from the inception tems, composites (carbon-carbon) for use in Department guidance to maintain science and of the Air Force until the creation of the Air structures subject to extremely high tempera- technology funding at the previous year's Force Materiel Command in 1992. The histori- tures (i.e., jet and rocket engine nozzles and level, the Air Force tried to slash its science cal record shows that investment in S&T by leading edges of aerospace vehicles), early and technology funding by 15 percent below the Air Force and its processors provided tre- research into revolutionary active phased the fiscal 1998 level. This represented a cut of mendous returns when put under separate array radars, airborne lasers, electronic war- $250 million below the previously approved management (i.e., the Experimental Engineer- fare jammers, terminally guided laser weap- baseline for fiscal 1999. Apparently, this was ing Division, McCook Field; Materiel Division, ons, and forward looking infrared technology. done in an effort to support procurement, Wright Field; Air Research and Development Also, new developments included fly-by-wire maintenance, and supply accounts. Command, Wright Field; and Air Force Sys- technology, which revolutionized aircraft ma- The Air Force's budget request for fiscal tems Command). neuverability and control, and very large inte- 1999 would have set the level of funding for Second, the measure would create the posi- grated circuit chips which were forerunners of science and technology at only 1.3 percent of tion of Assistant Secretary of the Air Force for today's electronics revolution. the total Air Force budgetÐone of the lowest S&T. (A similar position existed under admin- Because of the long lead time from the in- levels in Air Force history. At this level, broad istrative action until 1987.) The Assistant Sec- ception of new technology to the deployment categories of scientific research would have retary would be responsible for the Air Force of a completed weapon system, much of this been eliminated, forcing the cancellation of laboratories, Air Force Office of Scientific Re- technology did not reach fruition until the long-standing Air Force programs and threat- search, and S&T funding. This would ensure 1990s when it performed with devastating ef- ening the irreversible loss of value institutional that S&T had an advocate at the highest lev- fectiveness in the Persian Gulf War. knowledge. This extraordinary attempt to cut els in the civilian leadership of the Air Force. America's involvement in Southeast Asia in science and technology funding represented a Third, the legislation will create the position the late 1960s and early 1970s resulted in the giant leap backwards to the Army Air corps of Deputy Chief of Staff for Science and Tech- diversion of funding from far-term research to mentality, when short-term expediency pre- nology. This change would not require an ad- support near term combat needs. Funding for vailed over ensured future excellence. ditional Deputy Chief of Staff since it would research and development continued to drop Fortunately, the Secretary of Defense over- designate one of the existing five Deputy with declines in the overall reductions in de- ruled the Air Force recommendations and re- Chiefs of Staff positions already authorized fense after the Vietnam War. Funding contin- stored some of the funding before sending the under law. Again, this provision represents ued a boom and bust cycle through the 1970s, budget to Congress. Still, the approved higher more of a return to the historical Air Force or- 1980s, and 1990s, resulting in some important level of science and technology funding rep- ganizational structure. Between 1950 and gains during the boom times. But the ups and resents only 1.5 percent of the Air Force's 1987, the Air Force maintained a position of downs resulted in inefficiency and lost knowl- total budgetÐthe lowest of any of the three Deputy Chief of Staff for Development. edge during the down timesÐexactly the situ- services in fiscal 1999 and unusually low for The legislation requires the Air Force to es- ation Gen. Arnold had feared and tried to peacetime. tablish an independent, outside panel to re- avoid. As we approach the 21st century, with fu- view priorities of S&T programs each year. AIR FORCE HAS RETURNED TO ``BAD OLD DAYS'' ture battles certain to be fought and won in The goal is to eliminate 5 percent of S&T pro- With the end of the Cold War, the Air Force the air and even space, technology looms as grams each year and apply funds from the science research and development budget en- the dominant factor. Now more than ever, discontinued programs to new developing S&T tered into a slide. Worse, reorganizations long-term investments are required to maintain programs. pushed advocates for science funding lower in technologicalÐand thus militaryÐsuperiority. The measure calls for the Secretary of the the Air Force bureaucracy. With the 1992 Once, in an era of simpler technology, Ameri- Air Force to contract with the National Re- merger of the Air Force Logistics and Systems ca's superior brainpower could overtake the search Council of the National Academy of Commands into the Materiel Command, a enemy's technology through sudden spurts of Sciences to study the technology base of the major voice was lost in the chain of command scientific development. But that era is gone Air Force and make recommendations. for scientific research. Science and technology forever. A gap in today's science and tech- In addition, the legislation establishes a non- fell to a distant third place behind procurement nology funding may not show up as a binding goal that S&T funding should be 2.5 and logistics/maintenance. With a 1987 reor- warfighting deficiency for a generation or two. percent of the annual Air Force total obligation ganization, the position of Assistant Secretary But by then, it will be impossible for even our authority. This level is slightly higher than the for Research, Development, and Logistics was nation's vast scientific resources to catch up. actual amount spent by the Air Force over the eliminated, reducing the voice for science Gen. Arnold's prediction more than half a cen- last 9 years, but it is well below the 5 percent among the civilian leadership of the Air Force. tury ago has come to pass. goal recommended by Dr. von Karman. May 19, 1998 CONGRESSIONAL RECORD — Extensions of Remarks E903 The legislation also establishes the goal that nology areas, including critical information mation technology by reducing funding over the next five years, 15 percent of science technology programs, for the next 5 years; below the minimum level described in para- and technology funding should be invested in (4) to maintain a sufficient base of sci- graph (1) of section 3; and entists and engineers to meet the techno- (3) recommend the appropriate level of ``new starts science and technology areas'' logical challenges of the future, the Air staff holding baccalaureate, masters, and identified in the 1997 New World Vistas study. Force should— doctorate degrees, and the optimal ratio of This investment policy will direct the Air Force (A) increase the number of Air Force offi- civilian and military staff holding such de- to invest in the long term key technologies cers and civilian employees holding doctor- grees, to ensure that science and technology needed to create the quantum leaps in capa- ate degrees in technical fields; and functions of the Air Force remain vital. bility in the next century. (B) increase the number and variety of (c) REPORT.—Not later than 120 days after These changes would have little or no direct technical degrees at the master’s level the date on which the study required under granted to Air Force officers and civilian effect on the total amount of Air Force spend- subsection (a) is completed, the Secretary employees from both the Air Force Institute shall submit to Congress a report on the re- ing. However, they are aimed at shifting prior- of Technology and civilian universities; and sults of the study. ities to give greater emphasis to S&T. But (5) to ensure Air Force science and tech- even more important, these changes would nology does not stagnate, a concentrated ef- f better integrate the needs of scientific re- fort should be made to eliminate 5 percent of THE BORDER PROTECTION AND science and technology programs each year, search into all levels of decision-making within INFRASTRUCTURE ACT OF 1998 the Air Force. with funds from the discontinued programs More and more, our Nation will depend on used for new science and technology pro- grams. air and space power for victory during military HON. RON PACKARD SEC. 4. AMENDMENTS RELATING TO SCIENCE OF CALIFORNIA conflict. More and more, air and space power AND TECHNOLOGY FUNCTIONS OF IN THE HOUSE OF REPRESENTATIVES will depend on technology. However, with THE DEPARTMENT OF THE AIR longer lead times for technology development, FORCE. Tuesday, May 19, 1998 the nation no longer has the luxury of ramping (a) SEPARATION OF RESEARCH AND DEVELOP- MENT FUNCTION FROM EQUIPPING FUNCTION OF Mr. PACKARD. Mr. Speaker, I would like to up scientific research only during the time of SECRETARY OF THE AIR FORCE.—Section take this opportunity to applaud Congressman crisis. Establishing science and technology as 8013(b) of title 10, United States Code, is DUNCAN HUNTER (R±CA) for his ongoing ef- a priority for military aviation has worked in the amended— forts to curb the importation of illegal drugs at past and should continue to work in the future (1) in paragraph (4), by striking ‘‘(including our Southwestern border. Last week Con- to maintain our Nation's security. research and development)’’ and gressman HUNTER introduced the Border Pro- The text of the bill follows: (2) by adding at the end the following new paragraph: tection and Infrastructure Act of 1998, an ini- H.R.— ‘‘(13) Research and development.’’. tiative that provides vital support along specific Be it enacted by the Senate and House of Rep- (b) RESEARCH AND DEVELOPMENT FUNCTION points of our border with Mexico. resentatives of the United States of America in OF THE OFFICE OF THE SECRETARY OF THE AIR This legislation falls in line with our recently Congress assembled, FORCE.—(1) Section 8014(c)(1) of such title is launched plan for winning the war on drugs: SECTION 1. SHORT TITLE. amended by adding at the end the following decreasing demand, stopping supply, increas- This Act may be cited as the ‘‘Air Force new subparagraph: ing accountability. Stopping supply hits close ‘‘(H) Research and Development.’’. Science and Technology Reinvigoration to home in my district, which lies just north of Act’’. (2) Section 8014 of such title is amended— (A) by striking out subsection (d); and the San Diego border with Mexico. Nearly SEC. 2. FINDINGS. (B) by redesignating subsections (e) and (f) 70% of the nation's illegal drug supply comes Congress finds the following: as subsections (d) and (e), respectively. across the borders in our region. (1) When the Air Force was established in (c) ESTABLISHMENT OF ASSISTANT SEC- Congressman HUNTER'S bill authorizes the 1947 as an independent service, its founders RETARY OF THE AIR FORCE FOR SCIENCE AND construction of multi-barrier fencing at high- expected that it would ensure that scientific TECHNOLOGY.—(1) Section 8016 of such title is research and technology development would amended— traffic corridors, including San Diego. The be a priority of America’s aeronautical de- (A) in subsection (a), by striking out areas outlined in this legislation are generally fenses. ‘‘four’’ and inserting in lieu thereof ‘‘five’’ stretches of border that have urban areas on (2) Scientific investigation, accompanied and either side and lack natural obstacles, making by the new knowledge it generates, is the (B) in subsection (b), by adding at the end them ideal locations of smuggling drugs. Mul- cornerstone of air, space, and information the following new paragraph: tiple barrier fencing has proved to be an effec- superiority. To maintain air, space, and in- ‘‘(4) One of the Assistant Secretaries shall formation superiority, a strong research base be the Assistant Secretary of the Air Force tive tool in the battle against the importation of is critical. Sustaining a strong research and for Science and Technology. The Assistant illicit substances. After the construction of development base is a continuous effort, tak- Secretary shall have as his principal duty fencing began in San Diego in 1991, cocaine ing place both inside and outside the Air the overall supervision of science and tech- interdiction increased by 1000% and murders Force and involving the best minds of the nology functions of the Department of the along this border are now virtually non-exist- Nation. Air Force.’’. ent. (3) The vision of Air Force founder General (2) Section 5315 of title 5, United States I am pleased to join Congressman HUNTER Henry H. Arnold and others—that the Air Code, is amended in the item relating to the in his effort to prevent illegal drug abuse by Assistant Secretaries of the Air Force by Force should be built around science—re- assuring that these substances never find their mains as vital today as it was more than 50 striking out ‘‘(4)’’ and inserting in lieu there- years ago. of ‘‘(5)’’. way into our country. Mr. Speaker, stopping (4) Investment in Air Force research and (d) ESTABLISHMENT OF DEPUTY CHIEF OF supply is a key battle in the war on drugs. I development has resulted in benefits to STAFF FOR SCIENCE AND TECHNOLOGY.—Sec- urge my colleagues to support the Border Pro- American industry, especially the aerospace tion 8035 of title 10, United States Code, is tection and Infrastructure Act of 1998. industry, and made significant contributions amended by adding at the end the following f to the American economy. new subsection: SEC. 3. SENSE OF CONGRESS REGARDING ‘‘(c) One of the Deputy Chiefs of Staff shall HONORING CLARISA F. HOWARD SCIENCE AND TECHNOLOGY FUNC- be the Deputy Chief of Staff for Science and TIONS OF THE DEPARTMENT OF THE Technology.’’. AIR FORCE. SEC. 5. STUDY. HON. JANE HARMAN It is the sense of Congress that— (a) REQUIREMENT.—The Secretary of the OF CALIFORNIA (1) to ensure sufficient financial resources Air Force shall enter into a contract with IN THE HOUSE OF REPRESENTATIVES are devoted to emerging technologies, not the National Research Council of the Na- Tuesday, May 19, 1998 less than 2.5 percent of the funds available tional Academy of Sciences to study the for obligation by the Air Force should be technology base of the Air Force. Ms. HARMAN. Mr. Speaker, I rise today to dedicated to science and technology; (b) MATTERS COVERED.—The study shall— recognize Clarisa F. Howard and her efforts (2) management and funding for science (1) recommend the minimum requirements on behalf of City of Hope National Medical and technology by the Air Force should be to maintain a technology base that is suffi- Center through her sponsorship of the cele- separate from management and funding for cient, based on both historical developments bration, ``Commitment to ExcellenceÐCommit- acquisition by the Air Force; and future projections, to project superiority (3) to increase long-term investments, not in air and space weapons systems, and infor- ment to Life.'' less than 15 percent of science and tech- mation technology; Twenty-six years ago, Mrs. Howard began nology funds available for obligation by the (2) address the effects on national defense her corporate leadership in financial manage- Air Force should be invested in new tech- and civilian aerospace industries and infor- ment, strategic business planning, operations E904 CONGRESSIONAL RECORD — Extensions of Remarks May 19, 1998 and personal administration. As the President/ OPPOSE THE ‘‘GEPHARDT CON- JOINT RESOLUTION CEO of bd Systems, Inc., a female-minority STITUTIONAL AMENDMENT’’ PROPOSING AN AMENDMENT TO THE CONSTITU- owned small aerospace and information tech- PROTECT THE FIRST AMEND- TION OF THE UNITED STATES TO LIMIT CAM- nologies firm, she had dedicated herself to de- MENT PAIGN SPENDING Resolved by the Senate and House of Rep- veloping quality products and customer serv- resentatives of the United States of America in ice. For these efforts, she has been recog- HON. TOM DeLAY Congress assembled (two-thirds of each House nized by the National Association of Women OF TEXAS concurring therein), That the following article is proposed as an amendment to the Con- Business Owners 1998 NAWBO Business- IN THE HOUSE OF REPRESENTATIVES woman of the Year Award, the 1997 Ronald stitution of the United States, which shall be Tuesday, May 19, 1998 valid to all intents and purposes as part of H. Brown Award for Courage, the 1996 AT&T the Constitution when ratified by the legis- Entrepreneur of the Year Award, and the 1996 Mr. DELAY. Mr. Speaker, I have submitted latures of three-fourths of the several States El Camino College Foundation Roundtable to the House Committee on Rules the ``Gep- within seven years after the date of its sub- Award. hardt Constitutional Amendment'' to amend mission for ratification: the First Amendment for consideration by the ‘‘Article—1 In addition to her professional accomplish- House during debate on campaign reform. ‘‘Section 1. To promote the fair and effec- ments, Mrs. Howard has an unwavering com- tive functioning of the democratic process, I have agreed to offer the amendment, not mitment to the community. She is a member Congress, with respect to elections for Fed- in the hope that it will pass, but in the hope eral office, and States, for all other elec- of the National Association of Women Busi- that the House will bury this dangerous idea tions, including initiatives and referenda, ness Owners, The Trusteeship, the Southern forever. may adopt reasonable regulations of funds California Chapter of the International Wom- The ``Gephardt Constitutional Amendment,'' expended, including contributions, to influ- en's Forum, the Association of Black Women would permit Congress and the states to enact ence the outcome of elections, provided that Entrepreneurs, and Emily's List. She supports such regulations do not impair the right of laws regulating federal campaign expenditures the public to a full and free discussion of all inner city youth programs through in-kind do- and contributions. H.J. Res. 47 would chal- issues and do not prevent any candidate for nations, monetary contributions and bd tech- lenge all pre-existing First Amendment juris- elected office from amassing the resources nical assistance. bd's internship program for prudence and would give to Congress and the necessary for effective advocacy. disadvantaged students provides mentoring states unprecedented, sweeping and unde- ‘‘Section 2. Such governments may reason- ably defined which expenditures are deemed and work experience while they pursue aca- fined authority to restrict speech protected by the First Amendment since 1791. to be for the purpose of influencing elections, demic studies. so long as such definition does not interfere Because it is vague and over-board, H.J. with the right of the people fully to debate Medical research became important to her Res. 47 would give Congress a virtual ``blank when her nephew, Anthony Nickols, was diag- issues. check'' to enact any legislation that may ‘‘Section 3. No regulation adopted under nosed with Non-Hodgkins Lymphoma. At the abridge a vast array of free speech and free this authority may regulate the content of celebration on June 13, 1998, Mrs. Howard in- association rights that we now enjoy. any expression or communication.’’. vites others to join her in support of the re- I request that the Amendment be printed in The Gephardt Amendment is nothing more searchers and Anthony's physician so they the RECORD pursuant to the Rules Committee than a direct attack on our First Amendment might continue to search for cures to give request prior to consideration by the full freedoms. It is my hope that the House con- hope to future generations. House. siders this amendment, and buries it forever Tuesday, May 19, 1998 Daily Digest

Highlights The House passed H.R. 3534, Mandates Information Act of 1998. The House passed 13 measures under Suspension of the Rules including H. Res. 440, Sense of Congress Re Conferring Immunity from Prosecu- tion for Testimony Concerning Illegal Foreign Fundraising Activities. Senate Rejected: Chamber Action Faircloth Amendment No. 2421 (to Amendment Routine Proceedings, pages S5031–S5148 No. 2420), to establish a limitation on attorney’s Measures Introduced: Three bills and one resolu- fees. (By 58 yeas to 39 nays, two responding present tion were introduced, as follows: S. 2091–2093, and (Vote No. 142), Senate tabled the amendment.) S. Res. 232. Page S5129 Pages S5095±S5114 Measures Reported: Reports were made as follows: Pending: S. 8, to reauthorize and amend the Comprehensive Kennedy/Lautenberg Amendment No. 2422 (to Environmental Response, Liability, and Compensa- Amendment No. 2420), to modify those provisions tion Act of 1980, with an amendment in the nature relating to revenues from payments made by partici- of a substitute. (S. Rept. No. 105–192) pating tobacco companies. Pages S5116±28 S. Res. 172, congratulating President Chandrika Ashcroft Amendment No. 2427 (to Amendment Bandaranaike Kumaratunga and the people of the No. 2422), to strike those provisions relating to con- Democratic Socialist Republic of Sri Lanka on the sumer taxes. Pages S5119±22 celebration of 50 years of independence. Senate will continue consideration of the bill and S. Res. 188, expressing the sense of the Senate re- the amendments pending thereto on Wednesday, garding Israeli membership in a United Nations re- May 20, 1998. gional group. Page S5129 Nominations Received: Senate received the follow- Measures Passed: ing nominations: Carl J. Barbier, of Louisiana, to be United States Commemorative Coin Program: Senate passed District Judge for the Eastern District of Louisiana. H.R. 3301, to amend chapter 51 of title 31, United Page S5148 States Code, to allow the Secretary of the Treasury greater discretion with regard to the placement of Messages From the House: Page S5129 the required inscriptions on quarter dollars issued Executive Reports of Committees: Page S5129 under the 50 States Commemorative Coin Program, Statements on Introduced Bills: Pages S5129±34 clearing the measure for the President. Page S5128 Additional Cosponsors: Page S5134 Universal Tobacco Settlement Act: Senate contin- ued consideration of S. 1415, to reform and restruc- Amendments Submitted: Pages S5135±41 ture the processes by which tobacco products are Authority for Committees: Page S5141 manufactured, marketed, and distributed, to prevent Additional Statements: Pages S5141±44 the use of tobacco products by minors, and to redress the adverse health effects of tobacco use, with a Record Votes: One record vote was taken today. modified committee amendment in the nature of a (Total—142) Page S5114 substitute (Amendment No. 2420), taking action on Adjournment: Senate convened at 9:30 a.m., and amendments proposed thereto, as follows: adjourned at 8:23 p.m., until 9:30 a.m., on Wednes- Pages S5034±28, S5145±48 day, May 20, 1998. (For Senate’s program, see the D526 May 19, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D527 remarks of the Acting Majority Leader in today’s S. 1758, to amend the Foreign Assistance Act of Record on page S5145.) 1961 to facilitate protection of tropical forests through debt reduction with developing countries Committee Meetings with tropical forests, with amendments; S. Res. 172, congratulating President Chandrika (Committees not listed did not meet) Bandaranaike Kumaratunga and the people of the Democratic Socialist Republic of Sri Lanka on the NUCLEAR TECHNOLOGY celebration of 50 years of independence; Committee on Appropriations: Subcommittee on Energy S. Res. 188, expressing the sense of the Senate re- and Water Development concluded hearings to ex- garding Israeli membership in a United Nations re- amine the state of advanced nuclear technologies, fo- gional group; cusing on the disposal of spent nuclear fuel from nu- An original bill to amend section 502B of the clear power reactors, the future strategic direction for Foreign Assistance Act to require information on for- nuclear energy and nuclear regulation, and the devel- eign government officials responsible for human opment of the Gas Turbine-Modular Helium Reac- rights abuses; tor, after receiving testimony from Hank C. Jenkins- S. Con. Res. 30, expressing the sense of Congress Smith, University of New Mexico, Albuquerque; Joe that the Republic of China on Taiwan should be ad- F. Colvin, Jr., Nuclear Energy Institute, Washing- mitted to multilateral economic institutions includ- ton, D.C.; Corbin A. McNeill, Jr., PECO Energy ing the IMF and IBRD; Company, Philadelphia, Pennsylvania; Richard Wil- H.R. 2232, to provide for increased international son, Harvard University, and Alan B. Smith, Massa- broadcasting activities to China, with amendments; chusetts Institute of Technology, both of Cambridge, The International Convention for the Protection of Massachusetts; Stan O. Schriber, Los Alamos Na- New Varieties of Plants (Treaty Doc. 104–17), with tional Laboratory, Los Alamos, New Mexico; Linden 1 reservation, 2 declarations, and 1 proviso; Blue, General Atomics, San Diego, California; and The International Grains Agreement (Treaty Doc. Charles E. Till, Argonne National Laboratory, Ar- 105–4), with 1 declaration and 1 proviso; gonne, Illinois. Amendments to the Convention on the Inter- FCC national Maritime Organization (Treaty Doc. 104–36), with 1 declaration and 1 proviso; Committee on Commerce, Science, and Transportation: Sub- The Trademark Law Treaty (Treaty Doc. 105–35), committee on Communications resumed oversight with 2 declarations and 1 proviso; and hearings to examine the Federal Communications The nominations of William Joseph Burns, of Commission, focusing on activities of the Mass Pennsylvania, to be Ambassador to the Hashemite Media Bureau, receiving testimony from Roy Stew- Kingdom of Jordan, Ryan Clark Crocker, of Wash- art, Chief, Mass Media Bureau, FCC. ington, to be Ambassador to the Syrian Arab Repub- Hearings were recessed subject to call. lic, Charles H. Dolan, Jr., of Virginia, to be a Mem- PUERTO RICO ber of the United States Advisory Commission on Committee on Energy and Natural Resources: Committee Public Diplomacy, and three Foreign Service Officer held oversight hearings to examine fiscal and eco- promotion lists, with an exception, received in the nomic implications of a change in the political status Senate on March 26, 1998 and April 2, 1998. of Puerto Rico, receiving testimony from James R. GOVERNMENT COMPUTER SECURITY White, Associate Director, Tax Policy and Adminis- tration Issues, General Accounting Office; J. Thomas Committee on Governmental Affairs: Committee held Hexner, International Institute for Advanced Studies, hearings to examine the state of computer security Cambridge, Massachusetts; Ivar A. Pietri, Peregrine within Federal, State and local agencies, focusing on Development Company, Guaynabo, Puerto Rico; and certain risks related to computer-communication Marcos Rodriguez-Ema, Government Development technology and efforts to reduce them, receiving tes- Bank for Puerto Rico, Fernando Martin-Garcia, timony from Peter G. Neumann, SRI International, Puerto Rican Independence Party, and Santos Menlo Park, California; and representatives from Negron Diaz, Puerto Rico Development Bank, all of LOpht Heavy Industries. San Juan. Hearings were recessed subject to call. Hearings were recessed subject to call. TELEPHONE INDUSTRY CONSOLIDATION BUSINESS MEETING Committee on the Judiciary: Subcommittee on Anti- Committee on Foreign Relations: Committee ordered fa- trust, Business Rights and Competition concluded vorably reported the following business items: hearings to examine the state of competition in the D528 CONGRESSIONAL RECORD — DAILY DIGEST May 19, 1998 telecommunications industry, focusing on how con- General James D. Newbold, on behalf of the Na- solidation within the industry will affect businesses tional Association of Attorneys General, both of Chi- and consumers, including the impact of the proposed cago, Illinois; H. Elizabeth Baird, NationsBank, merger between Ameritech and SBC Communica- Charlotte, North Carolina, on behalf of the American tions, Inc., after receiving testimony from Edward E. Bankers Association; Joyce Kuhns, Weinberg & Whitacre, Jr., SBC Communications, Inc., San Anto- Green, Baltimore, Maryland, on behalf of the Inter- nio, Texas; and Scott C. Cleland, Legg Mason Wood national Council of Shopping Centers; Grant W. Walker, Inc., and Gene Kimmelman, Consumers Newton, Pepperdine University, Malibu, California; Union, both of Washington, D.C. and Damon Silvers, AFL–CIO, Washington, D.C. Subcommittee recessed subject to call. BANKRUPTCY REFORM Committee on the Judiciary: Subcommittee on Admin- HEALTH CARE QUALITY istrative Oversight and the Courts held hearings on Committee on Labor and Human Resources: Committee S. 1914, to provide reforms to the business provi- concluded hearings to examine how to implement sions of the bankruptcy code, focusing on Title II improved health claim grievance procedures, focus- which updates and improves provisions of the bank- ing on the Employee Retirement Income Security ruptcy code designed to ensure liquidity in financial Act (ERISA) requirements regarding internal review markets, Title IV which establishes special fast-track of health benefit claims and the need for independ- bankruptcy procedures for businesses in Chapter 11 ent external review, and S. 1712, to improve the which have less than $5 million in debt, and certain quality of health plans and provide protections for tax provisions, receiving testimony from Linda consumers enrolled in such plans, after receiving tes- Ekstrom Stanley, United States Trustee for Region timony from Olena Berg, Assistant Secretary of 17 (San Francisco, California), Department of Justice; Labor for Pension and Welfare Benefits; Margaret A. Jere W. Glover, Chief Counsel for Advocacy, Small Hamburg, Assistant Secretary of Health and Human Business Administration; Roger L. Anderson, Dep- Services for Planning and Evaluation; Bernice uty Assistant Secretary of the Treasury for Federal Steinhardt, Director, Health Services Quality and Finance; Philip J. Hendel, Hendel, Collins & New- Public Health Issues, Health, Education, and ton, Springfield, Massachusetts, on behalf of the Human Services Division, General Accounting Of- Commercial Law League; Stephen H. Case, Davis, fice; Maryland State Delegate Marilyn Goldwater, Polk & Wardwell, former Adviser, National Bank- Annapolis, on behalf of the National Conference of ruptcy Review Commission, Ann Stern, Financial State Legislatures; Stephen deMontmollin, AvMed Guarantee Insurance Corporation, on behalf of the Health Plan, Gainesville, Florida, on behalf of the Association of Financial Guaranty Insurers, David American Association of Health Plans; Mark Smith, Warren, Morgan Stanley Dean Witter & Co., Inc., AMP Incorporated, Harrisburg, Pennsylvania, on be- on behalf of the Bond Market Association, and Kath- half of the Corporate Health Care Coalition; Peter leen J. Cahill, New York City Office of the Corpora- W. Thomas, Powers, Pyles, Sutter & Verville, Wash- tion Counsel, on behalf of the National League of ington, D.C., on behalf of the Health Task Force of Cities, all of New York, New York; Randal C. Pick- the Consortium for Citizens with Disabilities; and er, Sidley & Austin, on behalf of the National Bank- Thomas McAfee, Brown and Toland Medical Group, ruptcy Conference, and Illinois Assistant Attorney San Francisco, California. h House of Representatives Filed on May 18, H.R. 3809, to authorize appro- Chamber Action priations for the United States Customs Service for Bills Introduced: 14 public bills, H.R. 3890–3903; fiscal years 1999 and 2000. Amended (H. Rept. and 1 resolution, H. Con. Res. 278, were intro- 105–541); Page H3366 duced. Pages H3487±88 H.R. 2863, to amend the Migratory Bird Treaty Reports Filed: Reports were filed as follows: Act to clarify restrictions under that Act on baiting, Filed on May 18, H.R. 3150, to amend title 11 to facilitate acquisition of migratory bird habitat, of the United States Code, amended (H. Rept. amended (H. Rept. 105–542); 105–540); Page H3366 May 19, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D529 H.J. Res. 78, proposing an amendment to the toms Service for fiscal years 1999 and 2000 (passed Constitution of the United States restoring religious by yea and nay vote of 320 yeas to 86 nays, Roll freedom, amended (H. Rept. 105–543); and No. 164). Agreed to amend the title; H. Res. 441, providing for the further consider- Pages H3407±16, H3462±63 ation of H.R. 3616, to authorize appropriations for National Historic Preservation Fund Reauthor- fiscal year 1999 for military activities of the Depart- ization: H.R. 1522, amended, to extend the author- ment of Defense, to prescribe military personnel ization for the National Historic Preservation Fund; strengths for fiscal year 1999 (H. Rept. 105–544). Pages H3416±19 Page H3487 Wetlands and Wildlife Enhancement Act of Recess: The House recessed at 11:21 p.m. and re- 1997: H.R. 2556, amended, to reauthorize the convened at 12:00 noon. Page H3375 North American Wetlands Conservation Act and the Private Calendar: Agreed that the call of the Pri- Partnerships for Wildlife Act; Pages H3419±20 vate Calendar for today be dispensed with. New Wildlife Refuge Authorization Act: H.R. Page H3375 512, amended, to prohibit the expenditure of funds Presidential Message—Re Burma: Read a letter from the Land and Water Conservation Fund for the from the President, received on May 18, wherein he creation of new National Wildlife Refuges without transmitted his report concerning the National specific authorization from Congress pursuant to a Emergency with respect to Burma—referred to the recommendation from the United States Fish and Committee on International Relations and ordered Wildlife Service to create the refuge; Pages H3420±23 printed (H. Doc. 105–253). Page H3376 Honoring EMS Personnel Who Have Died in the Suspensions: The House agreed to suspend the rules Line of Duty: H. Con. Res. 171, amended, declar- and pass the following measures: ing the memorial service sponsored by the National Ricky Ray Hemophilia Relief Fund Act: Emergency Medical Services (EMS) Memorial Service H.R. 1023, amended, to provide for compassionate Board of Directors to honor emergency medical serv- payments with regard to individuals with blood-clot- ices personnel to be the ‘‘National Emergency Medi- ting disorders, such as hemophilia, who contracted cal Services Memorial Service.’’ Agreed to amend the human immunodeficiency virus due to contaminated title. Pages H3423±25 blood products. Agreed to amend the title; National Bone Marrow Donor Registry Reau- Pages H3377±92 thorization: H.R. 2202, amended, to amend the Veterans Transitional Housing Opportunities Public Health Service Act to revise and extend the Act: H.R. 3039, amended, to amend title 38, bone marrow donor program; Pages H3425±29 United States Code, to authorize the Secretary of Veterans Affairs to guarantee loans to provide multi- Energy Policy and Conservation Act Program family transitional housing for homeless veterans Extensions: Concurred in the Senate amendment to (passed by yea and nay vote of 405 yeas to 1 nays, the House amendment to the Senate amendment to H.R. 2472, to extend certain programs under the Roll No. 162); Pages H3392±95, H3461 Energy Policy and Conservation Act—clearing the Veterans Affairs Major Medical Facility measure for the President; and Pages H3429±30 Projects: H.R. 3603, amended, to authorize major medical facility projects and major medical facility Immunity from Prosecution for Testimony Re leases for the Department of Veterans Affairs for fis- Illegal Fundraising Activities: H. Res. 440, ex- cal year 1999; Pages H3395±98 pressing the sense of the Congress that the Commit- tee on Government Reform and Oversight should Collections of Information Antipiracy Act: confer immunity from prosecution for information H.R. 2652, amended, to amend title 17, United and testimony concerning illegal foreign fundraising States Code, to prevent the misappropriation of col- activities (agreed to by yea and nay vote of 402 yeas lections of information; Pages H3398±H3404 with none voting ‘‘nay’’, Roll No. 161). Limiting the Jurisdiction of the Federal Courts Pages H3452±61 Re Prison Release Orders: H.R. 3718, to limit the Mandates Information Act of 1998: The House jurisdiction of the Federal courts with respect to passed H.R. 3534, to improve congressional delib- prison release orders (passed by a recorded vote of eration on proposed Federal private sector mandates 352 ayes to 53 noes, Roll No. 163); by a recorded vote of 279 ayes to 132 noes, Roll No. Pages H3404±07, H3461±62 160. The House completed general debate and began Drug Free Borders Act: H.R. 3809, amended, to considering amendments to the bill on May 13. authorize appropriations for the United States Cus- Pages H3430±52 D530 CONGRESSIONAL RECORD — DAILY DIGEST May 19, 1998 Agreed To: was referred to the Committees on the Judiciary, The Traficant amendment that requires annual Education and the Workforce, and International Re- CBO reports on the economic impact of the Act on lations. Page H3482 employment and businesses in the United States. Quorum Calls—Votes: Three yea and nay votes and Page H3443 six recorded votes developed during the proceedings Rejected: of the House today and appear on pages H3448, The Moakley amendment that sought to strike H3449, H3449–50, H3450, H3451–52, H3460–61, language that exempts from points of order provi- H3461, H3461–62, and H3463. There were no sions that result in net decreases in tax and tariff quorum calls. revenues (rejected by a recorded vote of 176 ayes to 233 noes, Roll No. 156); Pages H3430±36, H3448 Adjournment: Met at 10:30 a.m. and adjourned at The Waxman amendment that sought to permit 11:19 p.m. points of order against provisions that prohibit or make less stringent any mandate established to pro- Committee Meetings tect human health, safety, or the environment (re- jected by a recorded vote of 190 ayes to 221 noes, SECURITIES LITIGATION UNIFORM Roll No. 157); Pages H3436±42, H3449 STANDARDS ACT The Boehlert amendment that sought to exclude Committee on Commerce: Subcommittee on Finance and points of order against amendments with respect to Hazardous Materials held a hearing on H.R. 1689, an increase in the direct costs of Federal private sec- Securities Litigation Uniform Standards Act of 1997. tor mandates (rejected by a recorded vote of 189 ayes Testimony was heard from Representatives Campbell to 223 noes, Roll No. 158); and and Eshoo; the following officials of the SEC: Arthur Pages H3443±46, H3449±50 Levitt, Jr., Chairman; and Richard Walker, Director The Becerra amendment that sought to permit of Enforcement; the following officials of the Securi- points of order against provisions that prohibit or ties Regulation Division, Department of Corpora- make less stringent any mandate established to pro- tions, State of California: Blake Campbell, Assistant tect civil rights (rejected by a recorded vote of 180 Commissioner; and A. Peter Kezirian, Jr., General ayes to 231 noes, Roll No. 159). Counsel; and public witnesses. Pages H3446±48, H3450 The House agreed to H. Res. 426, the rule that COMMERCIAL SOFTWARE—SAVINGS provided for consideration of the bill on May 13. THROUGH IMPLEMENTATION Motion to Instruct Conferees: Representative Obey Committee on Commerce: Subcommittee on Oversight notified the House of his intention to offer a motion and Investigations held a hearing on Medicare Bill- on Wednesday, May 20, to instruct House conferees ing: Savings Through Implementation of Commer- on H.R. 2400, Building Efficient Surface Transpor- cial Software. Testimony was heard from Senator tation and Equity Act. Page H3463 Grassley; Joel Willemssen, Director, Accounting and DOD Authorization: The House completed general Information Management Division, GAO; Adm. debate on H.R. 3616, to authorize appropriations for Tom Carrato, USN, Director, Military Health Sys- fiscal year 1999 for military activities of the Depart- tem Operations, Department of Defense; Michael W. ment of Defense, to prescribe military personnel Hartford, Director, Health Administration Center, strengths for fiscal year 1999. Consideration of Department of Veterans Affairs; and Nancy-Ann Min amendments will begin on Wednesday, May 20. DeParle, Administrator, Health Care Financing Ad- Pages H3467±78 ministration, Department of Health and Human H. Res. 435, the rule providing for general debate Services. only on the bill was agreed to earlier by a voice vote. TEAMSTERS’ ELECTION—WHO PAYS FOR Pages H3463±66 THE RERUN Senate Messages: Message received from the Senate Committee on Education and the Workforce: Subcommit- today appears on page H3367. tee on Oversight and Investigations held a hearing Referral: S. 1723, to amend the Illegal Immigration on ‘‘Who Pays for the Rerun Teamsters’ Election?’’ Reform and Immigrant Responsibility Act of 1996 Testimony was heard from Stephen R. Colgate, As- to make the restrictions on foreign students added sistant Attorney General, Department of Justice; by such Act inapplicable to students lawfully present Gary L. Kepplinger, Associate General Counsel, Ac- in the United States on the effective date of the re- counting and Financial Management, GAO; and strictions in cases where a public school or adult Tom Sever, Secretary-Treasurer, International Broth- education program evidences a desire for such result erhood of Teamsters. May 19, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D531 PROTECTING HEALTH INFORMATION 1998. Testimony was heard from Representative Committee on Government Reform and Oversight: Sub- Cook; Bruce Babbitt, Secretary of the Interior; Mi- committee on Government Management, Informa- chael Leavitt, Governor of Utah; and public wit- tion, and Technology held a hearing on protecting nesses. Health Information: Legislative Options. Testimony FALL RIVER WATER USERS DISTRICT was heard Representative Shays; and public wit- WATER SYSTEM ACT nesses. Committee on Resources: Subcommittee on Water and KYOTO PROTOCOL Power held a hearing on H.R. 1212, Fall River Committee on Government Reform and Oversight: Sub- Water Users District Rural Water System Act of committee on National Economic Growth, Natural 1997. Testimony was heard from David Cottingham, Resources, and Regulatory Affairs continued hearings Counselor to the Assistant Secretary, Water and on ‘‘The Kyoto Protocol: Is the Clinton-Gore Ad- Science, Department of the Interior; Douglas Hofer, ministration Selling Out Americans? Part II.’’ Testi- Director, Department of Game, Fish and Parks, Di- mony was heard from Janet L. Yellen, Chair, Council vision of Parks and Recreation, State of South Da- of Economic Advisers; and public witnesses. kota; and a public witness. Hearings continue tomorrow. NATIONAL DEFENSE AUTHORIZATION OVERSIGHT—AIRLINE INDUSTRY—STATE ACT OF COMPETITION Committee on Rules: Granted, by voice vote, a struc- Committee on the Judiciary: Held an oversight hearing tured rule on H.R. 3616, National Defense Author- on the State of Competition in the Airline Industry. ization Act for Fiscal Year 1998, providing that no Testimony was heard from Joel Klein, Assistant At- further general debate shall be in order. The rule torney General, Antitrust Division, Department of provides for consideration of the committee amend- Justice; Nancy McFadden, General Counsel, Depart- ment in the nature of a substitute now printed in ment of Transportation; and public witnesses. the bill as an original bill for amendment purposes, which shall be considered as read. The rule waives MISCELLANEOUS MEASURES all points of order against the amendment in the na- Committee on Resources: Subcommittee on Fisheries ture of a substitute. The rule makes in order only Conservation, Wildlife and Oceans held a hearing on those amendments printed in the report of the Com- the following bills: H.R. 2291, to amend the Fish mittee on Rules and the amendments en bloc de- and Wildlife Improvement Act of 1978 to enable scribed in section 3 of the resolution. The rule pro- the Secretary of the Interior to more effectively uti- vides that except as specified in section 5 of the res- lize the proceeds of sales of certain items; H.R. olution, amendments will be considered only in the 3460, to approve a governing international fishery order specified in the report, may be offered only by agreement between the United States and the Re- a Member designated in the report, shall be consid- public of Latvia; H.R. 3461, to approve a governing ered as read and shall not be subject to a demand international fishery agreement between the United for a division of the question. Except as otherwise States and the Republic of Poland; and H.R. 3647, provided in the report, amendments shall be debat- to direct the Secretary of the Interior to make tech- able for 10 minutes equally divided between a pro- nical corrections to a map relating to the Coastal ponent and an opponent. Amendments are not Barrier Resources System. Testimony was heard from amendable (except that the Chairman and ranking Representatives Skaggs and Deutsch; Gary Taylor, minority member of the National Security Commit- Acting Assistant Director, External Affairs, U.S. Fish tee each may offer one pro forma amendment for the and Wildlife Service, Department of the Interior; purpose of further debate on any pending amend- Brian Hallman, Deputy Director, Office of Marine ment). The rule waives all points of order against Conservation, Bureau of Oceans and International amendments printed in the report and those amend- Environmental and Scientific Affairs, Department of ments en bloc described in section 3 of the resolu- State; David Evans, Deputy Director, National Ma- tion. The rule provides for an additional 2 hours of rine Fisheries Service, NOAA, Department of Com- general debate on U.S. policy toward China, equally merce; and public witnesses. divided between the chairman and ranking minority member of the Committee on National Security, UTAH SCHOOLS AND LANDS EXCHANGE which shall precede consideration of the amendments ACT in part A of the Rules Committee report. The rule Committee on Resources: Subcommittee on National provides for an additional 30 minutes of general de- Parks and Public Lands held a hearing on H.R. bate on the subject of assigning members of the 3830, Utah Schools and Lands Exchange Act of armed forces to assist in border control, divided D532 CONGRESSIONAL RECORD — DAILY DIGEST May 19, 1998 equally between the chairman and ranking minority CHILD SUPPORT ENFORCEMENT member of the Committee on National Security, Committee on Ways and Means: Subcommittee on which precede the amendments printed in part C of Human Resources held a hearing on Child Support the report. The rule authorizes the Chairman of the Enforcement. Testimony was heard from Donna National Security Committee or his designee to offer Bonar, Director, Program Operations Division, Of- amendments en bloc consisting of the amendments fice of Child Support Enforcement, Department of in part D of the report or germane modifications Health and Human Services; Jeffrey Cohen, Director, thereto, which shall be considered as read (except Office of Child Support, State of Vermont; Diane that modifications shall be reported), shall be debat- Fray, IV-D Administrator, Department of Social able for 20 minutes divided between the chairman Services, Child Support Program, State of Connecti- and ranking minority member of the Committee on cut; Alisha Griffin, Acting Assistant Director, Divi- National Security or their designees and which shall sion of Family Development, State of New Jersey; not be subject to amendment or a demand for a di- Jacqueline M. Jennings, Manager, Office of Child vision of the question. The rule provides that, for Support Enforcement, Department of Human Re- the purposes of inclusion in such amendments en sources, State of Georgia; and public witnesses. bloc, an amendment printed in the form of a motion f to strike may be modified to the form of a germane perfecting amendment to the text originally pro- COMMITTEE MEETINGS FOR posed to be stricken. The original proponent of an WEDNESDAY, MAY 20, 1998 amendment included in such amendments en bloc may insert a statement in the Congressional Record (Committee meetings are open unless otherwise indicated) immediately before the dispositions of the en bloc Senate amendments. The rule permits the Chairman of the Committee of the Whole to postpone votes on any Committee on Appropriations, Subcommittee on Defense, to hold hearings on proposed budget estimates for fiscal amendment and to reduce to 5 minutes the time for year 1999 for the Department of Defense, focusing on voting after the first of a series of votes provided Army programs, 10 a.m., SD–192. that the first vote is not less than 15 minutes. The Subcommittee on Labor, Health and Human Services, rule also permits the chairman of the Committee of and Education, to hold hearings on proposed budget esti- the Whole to recognize for consideration of any mates for fiscal year 1999 for osteoporosis prevention, amendment printed in the report out of order in education and research, 12 Noon, SD–138. which printed, but not sooner than one hour after Committee on Commerce, Science, and Transportation, Sub- the Chairman of the National Security Committee or committee on Oceans and Fisheries, to hold hearings on a designee announces from the floor a request to that S. 1480, to authorize appropriations for the National effect. Finally, the rule provides one motion to re- Oceanic and Atmospheric Administration to conduct re- search, monitoring, education and management activities commit with or without instructions. Testimony was for the eradication and control of harmful algal blooms, heard from Chairman Spence and Representatives including blooms of Pfiesteria piscicida and other aquatic Weldon of Pennsylvania, Hefley, Saxton, Fowler, toxins, 9:30 a.m., SR–253. Watts of Oklahoma, Thornberry, Gibbons, McCol- Committee on Energy and Natural Resources, business lum, Smith of New Jersey, Doolittle, Bonilla, Camp- meeting, to consider pending calendar business, 9:30 bell, Wamp, Snowbarger, Graham, Skelton, Sisisky, a.m., SD–366. Spratt, Evans, Taylor of Mississippi, Abercrombie, Committee on Foreign Relations, Subcommittee on Euro- Reyes, Markey, Frank of Massachusetts, Traficant, pean Affairs, to hold hearings to review Russian foreign Pallone, Lowey, Engel, Moran of Virginia, Norton, and domestic policy, 10 a.m., SD–419. Sanders, Cramer, Bishop, Maloney of New York, Subcommittee on International Operations, to hold hearings to examine the certification of a United Nations Bentsen, and Etheridge. reform budget of $2,533 billion, 4:15 p.m., SD–419. Committee on the Judiciary, to hold hearings on S. 1645, COAST GUARD DEEPWATER CAPABILITY to prohibit taking minors across State lines to avoid laws REPLACEMENT ANALYSIS requiring the involvement of parents in abortion deci- Committee on Transportation and Infrastructure: Sub- sions, 10 a.m., SD–226. Subcommittee on Technology, Terrorism, and Govern- committee on Coast Guard and Maritime Transpor- ment Information, to hold hearings on S. 512, to amend tation held a hearing on Coast Guard Deepwater Ca- chapter 47 of title 18, United States Code, relating to pability Replacement Analysis. Testimony was heard identity fraud, 2:30 p.m., SD–226. from Adm. Robert Kramek, USCG, Commandant, Committee on Indian Affairs, business meeting, to mark U.S. Coast Guard, Department of Transportation; up S. 1691, to provide for Indian legal reform, and S. and public witnesses. 2069, to permit the leasing of mineral rights, in any case May 19, 1998 CONGRESSIONAL RECORD — DAILY DIGEST D533 in which the Indian owners of an allotment that is lo- Act of 1998; S. 170, Clone Pager Authorization Act; cated within the boundaries of the Fort Berthold Indian H.R. 3633, Controlled Substances Trafficking Prohibition Reservation and held in trust by the United States have Act; and H.R. 2592, Private Trustee Reform Act of executed leases to more than 50 percent of the mineral 1997, 10 a.m., 2141 Rayburn. estate of that allotment, 10 a.m., SR–485. Committee on Resources, to consider the following: H.R. Select Committee on Intelligence, to hold hearings on the 1154, Indian Federal Recognition Administrative Proce- nomination of Joan Avalyn Dempsey, of Virginia, to be dures Act of 1997; H.R. 1635, National Underground Deputy Director of Central Intelligence for Community Railroad Network to Freedom Act of 1997; H.R. 1865, Management, 2:30 p.m., SD–106. Spanish Peaks Wilderness Act of 1997; H.R. 2411, to Special Committee on the Year 2000 Technology Problem, to provide for a land exchange involving the Cape Cod Na- hold an organizational meeting to consider the committee tional Seashore and to extend the authority for the Cape rules of procedure, 10 a.m., SD–116. Cod National Seashore Advisory Commission; H.R. 2538, House Guadalupe-Hidalgo Treaty Land Claims Act of 1997; H.R. 2742, California Indian Land Transfer Act; H.R. Committee on Agriculture, Subcommittee on Department 2795, Irrigation Project Contract Extension Act of 1997; Operations, Nutrition, and Foreign Agriculture, hearing H.R. 2812, Unrecognized Southeast Alaska Native Com- on H.R. 3766, Plant Protection Act, 10 a.m., 1300 munities Recognition Act; H.R. 3267, Sonny Bono Me- Longworth. morial Salton Sea Reclamation Act; H.R. 3520, to adjust Subcommittee on Livestock, Dairy, and Poultry, hear- the boundaries of the Lake Chelan National Recreation ing on the implementation of Hazard Analysis and Criti- Area and the adjacent Wenatchee National Forest in the cal Control Point (HACCP) regulatory requirements, 1 State of Washington; H.R. 3796, to authorize the Sec- p.m., 1300 Longworth. retary of Agriculture to convey the administrative site for Committee on Appropriations, Subcommittee on Labor, the Rogue River National Forest and use the proceeds for Health and Human Services, and Education, on Nobel the construction or improvement of offices and support Laureate, 1:30 p.m., 2358 Rayburn. buildings for the Rogue River National Forest and the Committee on the Budget, to mark up the Budget Resolu- Bureau of Land Management; H.R. 3797, Wyandotte tion for fiscal year 1999, 11 a.m., 210 Cannon. Tribe Settlement Act of 1998; and a Committee Report Committee on Banking and Financial Services, Subcommit- on Mining Regulations promulgated by the Bureau of tee on Domestic and International Monetary Policy, hear- Land Management, 11 a.m., 1324 Longworth. ing on Biometrics and the Future of Money, 10 a.m., Committee on Rules, to consider H.R. 2183, Bipartisan 2128 Rayburn. Campaign Integrity Act of 1997, 1 p.m., H–313 Capitol. Committee on Commerce, Subcommittee on Energy and Committee on Science, Subcommittee on Energy and Envi- Power, hearing on External Regulation of Department of ronment, oversight hearing on EPA’s Rule on Paints and Energy Nuclear Facilities, 10:30 a.m., 2322 Rayburn. Coatings: Has EPA met the Research Requirements of Subcommittee on Finance and Hazardous Materials, the Clean Air Act? 9:30 a.m., 2318 Rayburn. hearing on H.R. 2021, Auto Choice Reform Act of 1997, 10 a.m., 2123 Rayburn. Committee on Small Business, Subcommittee on Govern- Committee on Education and the Workforce, Subcommittee ment Programs and Oversight and the Subcommittee on on Oversight and Investigations, to continue hearings on Benefits of the Committee on Veterans’ Affairs, joint American Worker Project: Innovative Workplaces for the hearing on the SBA’s Programs to Assist Veterans, 10 Future, 10 a.m., 2175 Rayburn. a.m., 311 Cannon. Committee on Government Reform and Oversight, Sub- Committee on Transportation and Infrastructure, Sub- committee on National Economic Growth, Natural Re- committee on Railroads, hearing on Federal Railroad Ad- sources, and Regulatory Affairs, to continue hearings on ministration Reauthorization: Regulatory Process, 9:30 ‘‘The Kyoto Protocol: Is the Clinton-Gore Administration a.m., 2167 Rayburn. Selling Out Americans? Part III’’, 10 a.m., 2154 Ray- Subcommittee on Water Resources and Environment, burn. to mark up the following: H.R. 3869, Disaster Mitiga- Committee on International Relations, hearing on Eradi- tion Act of 1998; and Natural Resources Conservation cation and Elimination of Six Infectious Diseases, 10 Service Small Watershed Projects, 1 p.m., 2167 Rayburn. a.m., 2172 Rayburn. Permanent Select Committee on Intelligence, executive, hear- Subcommittee on Africa, hearing on Anti-Corruption ing on Whistleblower, 2 p.m., H–405 Capitol. Efforts in Africa, 2 p.m., 2200 Rayburn. Subcommittee on Asia and the Pacific, hearing on Joint Meeting U.S.-Taiwan Relations, 1:30 p.m., 2172 Rayburn. Joint Economic Committee, to hold hearings to examine Committee on the Judiciary, to mark up the following the current state of intelligence operations in the United bills: H.R. 3736, Workforce Improvement and Protection States, 10 a.m., SD–106. D534 CONGRESSIONAL RECORD — DAILY DIGEST May 19, 1998

Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Wednesday, May 20 10 a.m., Wednesday, May 20

Senate Chamber House Chamber Program for Wednesday: Senate will continue consider- Program for Wednesday: Continue consideration of ation of S. 1415, Universal Tobacco Settlement Act. H.R. 3616, National Defense Authorization Act for Fiscal Year 1999 (structured rule); and Consideration of H. Res. 436, making in order H. Res. 432, expressing the Sense of the House of Representatives Concerning the President’s Assertions of Executive Privi- lege and H. Res. 433, calling upon the President of the United States to Urge Full Cooperation by his Former Political Appointees and Friends and their Associates with Congressional Investigations.

Extensions of Remarks, as inserted in this issue

HOUSE Harman, Jane, Calif., E903 Radanovich, George P., Calif., E884 Horn, Stephen, Calif., E896 Reyes, Silvestre, Tex., E885 Blumenauer, Earl, Ore., E897 Kennedy, Patrick J., R.I., E885 Rush, Bobby L., Ill., E898 Bonior, David E., Mich., E890 Kildee, Dale E., Mich., E888, E892 Sanchez, Loretta, Calif., E892 Capps, Lois, Calif., E899 Kind, Ron, Wisc., E897 Schumer, Charles E., N.Y., E891 Clyburn, James E., S.C., E896 Lazio, Rick, N.Y., E887 Shaw, E. Clay, Jr., Fla., E887 Condit, Gary A., Calif., E899 McCollum, Bill, Fla., E889 Sherman, Brad, Calif., E883, E886, E888, E890 DeLay, Tom, Tex., E904 Maloney, Carolyn B., N.Y., E898 Skelton, Ike, Mo., E893 Edwards, Chet, Tex., E893 Moran, Jerry, Kans., E900 Smith, Christopher H., N.J., E883 Eshoo, Anna G., Calif., E884 Ney, Robert W., Ohio, E884 Smith, Nick, Mich., E896, E898 Gillmor, Paul E., Ohio, E893, E899 Packard, Ron, Calif., E903 Stark, Fortney Pete, Calif., E891 Gilman, Benjamin A., N.Y., E891, E893 Pappas, Michael, N.J., E897 Thompson, Bennie G., Miss., E897 Goodlatte, Bob, Va., E887 Payne, Donald M., N.J., E898 Visclosky, Peter J., Ind., E890 Hall, Ralph M., Tex., E886, E889 Pelosi, Nancy, Calif., E892 Walsh, James T., N.Y., E889, E891 Hall, Tony P., Ohio, E900 Portman, Rob, Ohio, E897 Young, Don, Alaska, E884

E PL UR UM IB N U U S The public proceedings of each House of Congress, as reported by the Official Reporters thereof, are printed pursuant to directions Congressional Record of the Joint Committee on Printing as authorized by appropriate provisions of Title 44, United States Code, and published for each day that one or both Houses are in session, excepting very infrequent instances when two or more unusually small consecutive issues are printed at one time. ¶ Public access to the Congressional Record is available online through GPO Access, a service of the Government Printing Office, free of charge to the user. The online database is updated each day the Congressional Record is published. The database includes both text and graphics from the beginning of the 103d Congress, 2d session (January 1994) forward. It is available on the Wide Area Information Server (WAIS) through the Internet and via asynchronous dial-in. Internet users can access the database by using the World Wide Web; the Superintendent of Documents home page address is http://www.access.gpo.gov/suldocs, by using local WAIS client software or by telnet to swais.access.gpo.gov, then login as guest (no password required). Dial-in users should use communications software and modem to call (202) 512–1661; type swais, then login as guest (no password required). For general information about GPO Access, contact the GPO Access User Support Team by sending Internet e-mail to [email protected], or a fax to (202) 512–1262; or by calling Toll Free 1–888–293–6498 or (202) 512–1530 between 7 a.m. and 5 p.m. Eastern time, Monday through Friday, except for Federal holidays. ¶ The Congressional Record paper and 24x microfiche will be furnished by mail to subscribers, free of postage, at the following prices: paper edition, $150.00 for six months, $295.00 per year, or purchased for $2.50 per issue, payable in advance; microfiche edition, $141.00 per year, or purchased for $1.50 per issue payable in advance. The semimonthly Congressional Record Index may be purchased for the same per issue prices. Remit check or money order, made payable to the Superintendent of Documents, directly to the Government Printing Office, Washington, D.C. 20402. ¶ Following each session of Congress, the daily Congressional Record is revised, printed, permanently bound and sold by the Superintendent of Documents in individual parts or by sets. ¶ With the exception of copyrighted articles, there are no restrictions on the republication of material from the Congressional Record.