E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 112 CONGRESS, FIRST SESSION

Vol. 157 WASHINGTON, WEDNESDAY, NOVEMBER 9, 2011 No. 171 House of Representatives The House was not in session today. Its next meeting will be held on Thursday, November 10, 2011, at 2:30 p.m. Senate WEDNESDAY, NOVEMBER 9, 2011

The Senate met at 9:30 a.m. and was The bill clerk read the following let- The bill clerk proceeded to call the called to order by the Honorable ter: roll. KIRSTEN E. GILLIBRAND, a Senator from U.S. SENATE, Mr. MCCONNELL. Madam President, the State of New York. PRESIDENT PRO TEMPORE, I ask unanimous consent that the order Washington, DC, November 9, 2011. for the quorum call be rescinded. PRAYER To the Senate: The ACTING PRESIDENT pro tem- Under the provisions of rule I, paragraph 3, The Chaplain, Dr. Barry C. Black, of- pore. Without objection, it is so or- of the Standing Rules of the Senate, I hereby dered. fered the following prayer: appoint the Honorable KIRSTEN E. GILLI- Let us pray. BRAND, a Senator from the State of New f Almighty and everlasting God, in- York, to perform the duties of the Chair. RECOGNITION OF THE MINORITY crease our faith, hope, and love. DANIEL K. INOUYE, LEADER Give our lawmakers more faith to President pro tempore. trust You when the skies are dark and Mrs. GILLIBRAND thereupon as- The ACTING PRESIDENT pro tem- to believe that in everything You are sumed the chair as Acting President pore. The Republican leader is recog- working for the good of those who love pro tempore. nized. You. Give them more hope to refuse to f f despair, to accept disappointments NET NEUTRALITY REGULATIONS without cynicism, and to experience RECOGNITION OF THE ACTING Mr. MCCONNELL. Madam President, failure yet try again. Give them also MAJORITY LEADER later today the Senate will take up more love to be loyal to You, to per- The ACTING PRESIDENT pro tem- S.J. Res. 6, Senator HUTCHISON’s reso- severe, though pressed by many a foe, pore. The Senator from Illinois is rec- lution of disapproval of the FCC’s net and to do unto others as they would ognized. neutrality regulations. I would like to have others do unto them. f start by thanking Senator HUTCHISON We pray in Your merciful Name. SCHEDULE Amen. for her leadership on this important Mr. DURBIN. Madam President, fol- issue. f lowing leader remarks, the Senate will While we all understand the impor- PLEDGE OF ALLEGIANCE be in morning business for 70 minutes, tance of an open Internet, I think we The Honorable KIRSTEN E. GILLI- with the Republicans controlling the can also agree that the growth of the BRAND led the Pledge of Allegiance, as first 40 minutes and the majority con- Internet in the last 15 years is an follows: trolling the final 30 minutes. Following American success story that occurred absent any—any—heavyhanded regula- I pledge allegiance to the Flag of the morning business, the Senate will con- United States of America, and to the Repub- sider the motion to proceed to S.J. Res. tion here in Washington. We should lic for which it stands, one nation under God, 6, regarding net neutrality, with up to think long and hard before we allow indivisible, with liberty and justice for all. 4 hours of debate. Upon the use or unelected bureaucrats to tinker with it f yielding back of time, the Senate will now. resume debate on H.R. 674, the 3% Everywhere I go in Kentucky, I hear APPOINTMENT OF ACTING Withholding Repeal and Job Creation from businesses large and small that PRESIDENT PRO TEMPORE Act with the veterans jobs amendment. they are struggling to comply with the The PRESIDING OFFICER. The Madam President, I suggest the ab- mountains of rules and regulations clerk will please read a communication sence of a quorum. coming out of Washington. At a time to the Senate from the President pro The ACTING PRESIDENT pro tem- when the private sector would like to tempore (Mr. INOUYE). pore. The clerk will call the roll. create jobs and grow the economy, it

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

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VerDate Mar 15 2010 02:01 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00001 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.000 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7230 CONGRESSIONAL RECORD — SENATE November 9, 2011 seems as if too many here in Wash- opportunity to do the same. In order to sponsored on the Republican side by ington want to create regulations and protect the growth of the Internet and Senator HUTCHISON, among others, and grow government. So, like many Amer- its ability to create the jobs of the fu- on the Democratic side by Senator icans, I was heartened 2 months ago ture, I would encourage my colleagues PRYOR, among others. And Senator when the President came to the Capitol to support the Hutchison resolution. TOOMEY has a bill—S. 1825—to expand and laid out a very specific test for BIPARTISAN JOBS CREATION this legislation by applying it to busi- judging the merits of Federal regula- Madam President, I wish to speak nesses other than banks. tion. Like most of my colleagues, I ap- now on another issue. Now, we should take up these bills in plauded when the President told us When something good happens here the Senate and pass them as soon as that ‘‘we should have no more regula- in the Senate, I think it is important possible with the same show of bipar- tion than the health, safety and secu- that we all acknowledge it. So I would tisan support the two parties mustered rity of the American people require. like to start this morning by thanking on behalf of H.R. 1965 last week. Just Every rule should meet that common- our friends on the other side for finally like the bipartisan House-passed jobs sense test.’’ agreeing to join us in making some bill I highlighted yesterday, H.R. 1965 As it turns out, the FCC didn’t get progress on the nearly two dozen bipar- passed the House last week with nearly the memo. The net neutrality regula- tisan jobs bills the House has already unanimous support. The vote was 420 to tions we are debating today clearly fail passed, and I want to urge them to 2, with 184 Democrats voting in sup- that commonsense test. They are a so- keep at it, to keep pressing ahead with port. Only 2 people out of the entire lution in search of a problem. It is an jobs bills both parties will actually 435-Member House voted against the overreaching attempt to fix the Inter- support. That way, we will show the bill. The President’s jobs council has en- net when the Internet is not broken. American people we are capable of ac- dorsed the idea, and top Democrats According to the FCC’s own data, 93 complishing something together up have been vocal proponents of this leg- percent of broadband subscribers are here when it comes to jobs. islation proposed by House Repub- happy with their service. If Americans For months, House Republicans have licans. weren’t happy with their provider or been executing on a plan to identify Here is House minority leader Con- felt the provider was favoring some ideas which would not only help spur gressman HOYER on H.R. 1965 just last form of content over others, they could private sector job creation but which week: switch providers. But now the FCC says would also attract strong bipartisan We need to see lending to small businesses its regulations are necessary because of support. For weeks, I have been urging and homeowners, but they’re hamstrung in what might happen in the future—what the Democratic majority in the Senate their attempt to raise capital by outdated might happen in the future—if to take up these bills so they can be- SEC registration requirements. broadband providers have incentives to come law. I completely agree with STENY favor one type of content over another, This week, Senate Democrats finally HOYER. despite the fact that after 15 years, agreed to move ahead with two of these Here is Congresswoman SHEILA JACK- there is no evidence of this occurring bipartisan proposals—a repeal of the 3- SON LEE: in any significant way. If Internet pro- percent withholding rule that would Small businesses need access to loans and viders were so interested in doing this, ease the burden on government con- other lines of credit in order to build their wouldn’t they have done it by now? In- tractors and a veterans bill which not businesses and to create jobs. Before us is a stead, the FCC has exceeded its author- only helps returning service men and measure that would allow small businesses ity to grow the reach of government women find jobs but which also helps to get the support they need. under the guise of fixing a problem those who hire them. Neither of these I completely agree with Congress- that doesn’t even exist. bills is going to solve the jobs crisis, woman SHEILA JACKSON LEE. Look, it So why should this matter to any- but they will help a lot of Americans is not every day that Congresswoman one? Simply, the growth of the Inter- who deserve it, and they will go a long JACKSON LEE and I agree on legislation. net is one of the great success stories way in showing the American people So I think we should lock this down. of our lifetime. Just 15 years ago, the there is plenty we can agree on up Let’s pocket another bipartisan accom- thought that you could read a book, here. plishment right here and help the job watch a ball game, and video con- My suggestion now is that we don’t creators who need it. ference with your kids all on a device stop there. Let’s just keep it up. Let’s This is precisely the kind of approach the size of a magazine would have been take up and pass the rest of the bipar- we should be taking here in the Sen- something from science fiction. Today, tisan jobs bills House Republicans have ate—putting aside these giant partisan it is reality. The Internet has trans- already passed with bipartisan support bills that Democrats know Republicans formed society precisely because peo- right across the dome. I have high- won’t support and focusing on smaller ple have been able to create and inno- lighted one of those bills already this proposals that can actually garner sup- vate largely free from government in- week, one that makes it easier for busi- port from nearly everyone and make it trusion. nesses to raise the capital they need to onto the President’s for a signature. Businesses are free to invest and expand and create jobs. This morning, I These are small steps but they are grow on the Internet, safe in the would like to highlight another—the progress. Let’s keep at it. Madam President, I yield the floor. knowledge that consumers and tech- Shareholder Registration Thresholds nology will determine their fate, not Act, H.R. 1965. This is a bill that in- f the whims of Washington regulators. creases the number of shareholders RESERVATION OF LEADER TIME This investment in broadband infra- who are allowed to invest in a commu- The ACTING PRESIDENT pro tem- structure is the cornerstone of our nity bank before that bank is required pore. Under the previous order, the high-tech economy, which employs to shoulder costly new burdens from leadership time is reserved. nearly 3.5 million Americans. But the the SEC. f FCC’s regulations could jeopardize its For 3 years now we have been talking future growth by dictating what sort of about the urgent need for growing busi- MORNING BUSINESS return businesses can earn on their in- nesses to have access to capital so they The ACTING PRESIDENT pro tem- vestment. As my colleague Senator can expand and hire. Yet, because of an pore. Under the previous order, the HUTCHISON and I recently noted, outdated law, the smaller community Senate will be in a period of morning ‘‘Lower returns mean less investment, banks that want to make loans to help business for 70 minutes, with Senators which in turn means fewer jobs.’’ Some these growing businesses are subject to permitted to speak therein for up to 10 estimates suggest we could lose 300,000 burdensome regulations that shouldn’t minutes each, with the time equally di- jobs as a result of these rules. even apply to them. H.R. 1965 will in- vided and controlled by the two leaders Thankfully, it is not too late to act. crease the threshold of shareholders or their designees, with the Repub- A bipartisan majority in the House that triggers the requirement from 500 licans controlling the first 40 minutes voted to overturn these rules earlier to 2,000. A companion bill in the Senate and the majority controlling the final this year. The Senate should take the that would do the same thing is co- 30 minutes.

VerDate Mar 15 2010 02:01 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00002 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.001 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7231 The Senator from Nebraska. The National Federation of Inde- a few regulations have been issued add- Mr. JOHANNS. Madam President, I pendent Businesses said: ing up to that 10,000 pages. ask unanimous consent to enter into a Small business owners everywhere are People can read this 2,700-page bill colloquy with my Republican col- rightfully concerned that the unconstitu- and understand what is in it, and most leagues, Senator GRASSLEY of Iowa and tional new mandates, countless rules and of them read it and understood what Senator COBURN of Oklahoma, for up to new taxes in the health care law will dev- was in it before Speaker PELOSI said, 30 minutes. astate their businesses and their ability to ‘‘We have got to pass it to find out The ACTING PRESIDENT pro tem- create jobs. what is in it,’’ and didn’t like what was pore. Without objection, it is so or- What we are seeing with this law is a in it. But in this bill, there are 1,693 dered. massive amount of overregulation. Ac- delegations of authority to write regu- f cording to a recent Wells Fargo-Gallup lations. So if you have 10,000 pages so small business poll, government regu- HEALTH INSURANCE far based upon the new regulations lations are the most important prob- that have been written, just think Mr. JOHANNS. Recently, the Des lem facing our small business owners. what it is going to be like when all of Moines Register reported that an Iowa- If we just focus again on the health the pages are printed for the 1,693 regu- based insurance company has decided care law, that legislation alone has re- lations. So I think we are at the tip of to exit the health insurance market, sulted in 10,000 pages of new Federal abandoning insurance sales directly to the iceberg so far in this legislation, regulations and notices—10,000 pages. and the damage that is done to employ- individuals and families. So what is the How could any small business comply? net effect of all of that? Thirty-five ment and lack of job creation has just The employer mandate penalizes em- started. That is my comment on that. thousand policyholders will lose their ployers for growing. It is as simple as insurance. It calls to mind the famous I have some remarks I wish to make, that. It forces employers who do not if it is okay with the Senator; and if he promise by the President: If you like provide acceptable coverage to pay a your plan, you can keep it. has to go to a committee meeting, I penalty of $2,000 per full-time em- The story doesn’t stop there. It has understand. an even more profound impact on the ployee. But, you see, the penalty is ap- This is not the first time this situa- lives of real people. The impact goes plied to firms with more than 50 em- tion has happened in Iowa, and it is on. One hundred ten employees will ployees. And as a small business owner coming at a time when people need sta- lose their jobs. Seventy of those em- in the Bellevue, NE, area recently ex- bility. American families are strug- ployees are in Nebraska. That calls to plained to me: gling to put food on their table, pay mind Speaker PELOSI’s broken promise: I’m not growing my business over 50 em- their utility bills as winter arrives, and The law will create 4 million jobs— ployees. I don’t want to deal with your purchase health insurance as costs are 400,000 jobs almost immediately. health care law. skyrocketing. The driving factor for all of this is a Well, as I mentioned, this discussion In other words, the President has Health and Human Services regulation starts, at least today, with that article promised: Pass this legislation and it is required by the health care law which in the Des Moines Register. going to keep health care premiums micromanages how insurance compa- With me today is the very respected down, but that is misleading people, nies can spend their revenues. Senator from the State of Iowa, Sen- and at a time when, as Senator Unfortunately, this job loss in Ne- ator GRASSLEY. I would ask Senator JOHANNS said, another promise made braska is not an anomaly. A recent GRASSLEY, what impact does he see was: If you like what you have, you are survey of nearly 2,400 independent arising out of this health care law in going to be able to keep it. health insurance agents and brokers his State and, even more broadly, Well, I don’t know exactly the fig- from all over came to this conclusion. across this country? ure—I have got it here coming up. One month after this HHS regulation Mr. GRASSLEY. I thank Senator There is a figure of several thousand took effect, more than 70 percent had JOHANNS for his leadership in this area. people in our State who aren’t going to experienced a decline in their revenues. He has spoken on regulations quite reg- be able to keep the health insurance And, more shocking, nearly 5 percent ularly on the Senate floor and also in they like and they already have be- had lost their jobs. our caucus, and I thank the Senator for cause of this company closing down in- The Government Accountability Of- his leadership in that area. dividual policies. fice reported that most of the insurers No. 1, I would say there is a certain Unemployment continues to hover they interviewed were reducing indi- irony between a President who is going around 9 percent and 1 million Ameri- viduals’ commissions. These are not around the country now and talking cans are underemployed, and here we the big insurance companies that were about, We have got to pass legislation have a health care bill that is causing railed against in the health care de- to create jobs, at the very same time as more people to be unemployed, as well bate. These are not the big insurance the Senator demonstrated in his re- as not keeping the health insurance companies that are being squeezed. The marks that there is a health care bill they want. With the economic situa- good folks who are being squeezed are law being instituted that is making tion our country is facing, Congress the mom-and-pop agencies that we find people unemployed. must reexamine its actions and realize on Main Street throughout the United There is also a certain irony in what the errors that were made because of States. Yes, these are the folks we go the President does and the Secretary of partisan votes. This bill was an en- to to support the local football team, HHS does with what Speaker PELOSI tirely partisan piece of legislation, un- the local high school, the local 4–H said at the time the bill was up: You like most social contracts in America club, whatever the civic cause may be. know, we have got to pass this bill to that have been passed, such as Social And yet, with unemployment hovering see what this bill does. Well, now we around 9 percent, the health care law Security, Medicare, and Medicaid, civil puts the hammer on these people. I are finding out what it does, and people rights legislation. Those were bipar- reached the conclusion long ago that don’t like what it does. tisan pieces of legislation because it the health care law is bad for job cre- You spoke about regulations causing was felt that when you are making this ation and it is bad for keeping your unemployment, and you spoke about difference in America, you ought to job. 10,000 pages of regulations. That is have a broad consensus that major The Des Moines-based insurance com- probably 10,000 pages of regulations out changes such as this ought to be made. pany’s CEO’s job loss, according to of the 66,000 pages of regulation that But in this particular case, it was very him, was: we have had this year, and 10,000 of partisan. A fairly predictable consequence of the that deals with health care. But think I want to go over to what Senator regulation. about the other 57,000 pages that deal JOHANNS said about the Des Moines UBS Investment Research called the with other pieces of legislation that Register article. The American Enter- health care law: are a problem for small businesses— prise Group, an insurance company The biggest impediment to hiring . . . particularly small businesses. I guess it participating in individual health in- which has the added drawback of straining is a problem for all business, but par- surance markets in Iowa and Nebraska, State and Federal budgets. ticularly for small business. And so far, is leaving the market. This action

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00003 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.003 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7232 CONGRESSIONAL RECORD — SENATE November 9, 2011 shows the importance of repealing and pecially detrimental when these indi- be fined $2,000 per employee who seeks replacing the health care overhaul viduals have preexisting conditions or health insurance through one of the ex- passed by Democrats in Congress and acute chronic disease. The President changes created under the health care signed by the President last year be- specifically promised that if these peo- overhaul, and any employer-sponsored fore the situation deteriorates even ple want to keep their health care cov- plan must meet the definitions of HHS further. Just think what it is going to erage, they would be able to do it with on what an adequate plan is under the be like when we get the rest of these the passage of that law. This is just mandate. 1,693 delegations of authority to the one of the many examples of how this This requirement will increase insur- bureaucracy to write regulations. overhaul has led to broken promises ance costs for employers and employ- American Enterprise notified 110 em- made by the President when pushing ees when they must upgrade health in- ployees in Iowa and Nebraska that through the passage of this legislation surance benefits in order to meet the they will lose their jobs sometime dur- in a partisan way. standards defined by HHS. Forcing em- ing the next 3 years. American Enter- These problems will certainly con- ployers to provide health insurance prise is leaving the individual health tinue as more regulations are written. when they have a tough time hiring insurance market as a result of the in- The Congressional Budget Office ex- new employees just adds to the burden stability caused by the implementation pects people in the individual market employers are facing in this struggling of this health care reform bill. Amer- to see an average of a 10-percent to 13- economy. Employers will likely pay ican Enterprise stated it will no longer percent rise in premium costs solely their increased health insurance costs sell individual health insurance poli- based on the passage of the health care by reducing employee take-home pay cies because of the regulatory environ- law. Does that increase accessibility or or by increasing the employee share of ment created by the health care reform affordability? No, of course it doesn’t. health insurance premiums. Also, em- bill. Not only has the health care over- ployers will continue struggling in fu- This isn’t an isolated incident for haul caused health insurance compa- ture years as the Federal Government Iowa, this one company, because the nies to leave parts of the health insur- increases year by year the require- Principal Financial Group left the ance market and health insurance ments of health insurance benefits small group insurance market in 2010, costs to increase, it has also put added needed to avoid a penalty. and Principal Financial isn’t a small burden on employers. Some employers Furthermore, employers already Main Street operation. It is one of the will no longer offer their employees faced with economic uncertainty have major financial groups in the United health care coverage. Higher taxes and to deal with the government regula- States, but still, they could not find it mandates put on employers by the new tions that continue to change, adding to be competitive to stay in the indi- health care law have left many em- to uncertainty. An HHS rule released vidual market. ployers without resources to maintain last November allows fully insured This has cost many Iowans their jobs, current coverage for family members group plans to switch insurance pro- while leaving scores of small busi- of their employees. The negative im- viders as long as the insurance benefit nesses and their employees to choose pact this legislation is having on large provided to the beneficiaries remains from health insurance plans in a health employers and those insured by em- comparable. However, this is only for insurance market where there is less ployers was demonstrated by the Na- group plans that switched after Novem- and less competition. The regulatory tional Business Group on Health. In its ber 15 last year. culprit in this incident is a medical recent annual survey, overall planned HHS wrote this new rule so more loss ratio regulation of this legislation. costs for larger employers are expected group plans can find affordable cov- This regulation requires insurers to to rise by 6 percent in 2012. The Na- erage and shop around for similar cov- pay a certain percentage of premiums tional Business Group on Health also erage at cheaper rates. But if the group in claims. notes that 7 out of 10 employers will insurance plan carrier was changed be- I know supporters will defend the lose their grandfather status, meaning fore November 15, the plan would lose regulation as ‘‘keeping insurers in employees will lose their current grandfather status and then be subject check.’’ But the real world effect is to health care plans and employers will be to a whole bunch of new regulations. force insurers to leave the market, subject to additional regulations. Ironically, what created the need for thereby reducing competition and According to the same survey, 3 out this new rule was another rule the choice available to consumers—not ex- of 10 employers are unsure if they will President’s administration and HHS actly what the President promised, continue to insure employees due to crafted in June last year that stated that we are going to have competition, the health care overhaul. Other em- plans would lose their grandfather sta- keep price down, and people are going ployers will increase the employee tus if they switched carriers. This cha- to have choice, they are going to be share of the insurance premium, and otic situation shows what happens able to keep what they want if they many employers state they will likely when the government is given more au- have it. But in this case, for these peo- lower the level of health care coverage thority to regulate the health insur- ple, that isn’t a promise kept. That offered to their employees. Walmart, as ance market. turns out to be a falsehood. an example, will not allow many of its What we have is a mess. We need to The small group and individual mar- new part-time employees to receive put a halt to the implementation. We kets happen to be very vulnerable. health care insurance through the com- need to repeal the law and start over That is the problem. Insurers risk and pany. Many of these workers are under- again with commonsense solutions. We set their premiums accordingly. Insur- employed. They work hard yet do not need to move away from the regulatory ers are making a rational decision to always have adequate resources to pur- and bureaucratic nightmare that is get out of the market because the risks chase health care insurance on their costing Americans their coverage and have become too great. Competition is own, especially as costs in the insur- too many Americans their jobs. reduced. Costs rise. ance markets continue to increase due With 10,000 pages of regulations at Once upon a time, the President to the new law. this point, just think what it will be promised Americans that if they liked Additionally, many businesses are like when all 1,693 regulations get writ- the insurance program they have, they simply dropping coverage for their own ten. can keep it. This is more evidence that employees because of the extra costs I yield the floor. that promise rings hollow. incurred in the legislation. It is more Mr. JOHANNS. Mr. President, I This recent planned pullout will affordable for some employers to drop thank Senator GRASSLEY for this ex- leave 35,000 individuals without insur- coverage for their employees and pay planation of what this law is doing and ance plans that they have grown accus- the fine associated with the employer the impact it is having. Today, of tomed to. Forcing people to choose a mandate. An employer must provide course, we are starting our discussion different insurance option can lead to health insurance for their employees if with the article from the Des Moines higher costs and may limit the health they have more than 50 employees or 50 Register which talked about the regu- care accessibility these individuals full-time equivalents. Employers who latory impact. But we cannot forget have depended on for years. This is es- are required to insure employees will there are other pieces to this law that

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00004 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.004 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7233 have just as severe an impact. I would whatsoever. Why are we here in Wash- The Marketplace Fairness Act would like to spend a minute or two talking ington creating a disincentive for the allow States—not require States—to be about the destructive taxes that are in small business owner? Why are we cost- able to have the out-of-State online this legislation. ing Americans jobs? sellers, providing they sell more than When we add it all up, the new health The Congressional Budget Office has $500,000 in a year, to collect the State care law basically requires new taxes of looked at this legislation. They have sales tax. I have also been a State leg- about $1⁄2 trillion—not to pay down the come to the conclusion that the Amer- islator, and I can tell you we never in- national debt, not to solve the Nation’s ican labor supply will be reduced by tended to pass a law to tax the people debt woes but to create a new entitle- 100,000 workers. The CBO quote is this: on Main Street who buy the yearbooks ment. The Treasury Department’s In- The law will encourage some people to and participate in community activi- spector General for Tax Administra- work fewer hours or to withdraw from the ties to be the ones to collect the tax, tion has looked at the impact of the labor market. and anyone from out of State to not health care law on the Tax Code and The more we learn about this health have to do it. This bill cleans up that said this: ‘‘The law is the largest set of care law, the more we come to realize problem at the same time. Does it tax law changes in 20 years.’’ this is flawed policy. It passed and it make much of a difference? Yes. That is no small undertaking when was signed into law by the President of We are being asked as a Congress to we think about all that has happened the United States, but it goes beyond give money to the States for their over the last couple of decades, that we flawed policy. It impacts real people teachers, their firemen, and their infra- ended up with an impact on the Tax who are trying to make a real living. structure. It is because there is a de- Code that is the largest set of tax law My comments today started with a creasing amount of revenue going to changes in 20 years, according to the story about 50 Nebraskans who lost them through sales taxes that are Treasury expert who looked at this. their jobs or are about to lose their owed, but are not currently being col- There are 42 separate provisions adding jobs because of the health care law. I lected. People may not realize it, but to or amending the Internal Revenue am concerned that it is not going to when they buy something online, if the Code in the health care law. So much stop there; that as employers are more tax is not collected by the seller, they of this law was put together in the last and more burdened with the thousands still owe it. This is not a new tax; it is days of this debate, people were scram- of pages of regulations, they will come a tax that is already on the books. No bling around trying to read it and un- to realize their best strategy is to try legislator ever intended for it to just be derstand it and get information out to to figure out how to deal with these for Main Street retailers. If States so their constituents. new requirements and they will pull choose, sales taxes should be collected Speaker PELOSI said: We will prob- back on hiring, which is exactly what by all retailers. In our attempts to fix ably have to pass this law to figure out we do not want to have happen in this this problem, we have received a num- what is in it. And we are now figuring economy. ber of support letters for this new bill. With that, I conclude my remarks out what is in it, and it is so much I hope everybody will take a look at and our colloquy today. more than a health care law. There are them. They can view them online. I ask 42 separate provisions that add to or I yield the floor. I suggest the ab- sence of a quorum. unanimous consent these letters be amend the Internal Revenue Code. printed in the RECORD. The Boston Globe weighed in on this. The PRESIDING OFFICER (Mr. UDALL of Colorado). The clerk will call There being no objection, the mate- They pointed out the 2.3-percent excise rial was ordered to be printed in the tax on medical device suppliers, ac- the roll. The legislative clerk proceeded to RECORD, as follows: cording to the Globe, ‘‘will force indus- call the roll. NATIONAL CONFERENCE try leaders to lay off workers and curb Mr. ENZI. Mr. President, I ask unani- OF STATE LEGISLATURES, the research and development of new mous consent the order for the quorum November 9, 2011. medical tools.’’ There is no question call be rescinded. Hon. RICHARD DURBIN, about it. When we add up the tax law The PRESIDING OFFICER. Without U.S. Senate, changes, the impact from a regulatory objection, it is so ordered. Washington, DC. standpoint and the other provisions of Mr. ENZI. I also ask unanimous con- Hon. LAMAR ALEXANDER, this law, this is not going to result in U.S. Senate, sent that the Senator from Illinois and Washington, DC. the promised jobs that Speaker PELOSI the Senator from Tennessee be allowed Hon. MICHAEL ENZI, spoke of. It is a job killer. to enter into a colloquy with me for U.S. Senate, If we look at what this law is doing, the time that we have allotted. Washington, DC. it will actually shrink the labor force, The PRESIDING OFFICER. Without Hon. TIM JOHNSON, actually create a disincentive to work objection, it is so ordered. U.S. Senate, or to receive a pay raise. I referenced f Washington, DC. earlier in my comments a small busi- DEAR SENATORS DURBIN, ENZI, ALEXANDER ness owner in the Bellevue, NE, area. I MARKETPLACE FAIRNESS ACT AND JOHNSON: On behalf of the National Con- was sitting in a Business Roundtable a Mr. ENZI. Mr. President, I am going ference of State Legislatures (NCSL) we little more than a year ago. We were to talk about a problem I have tried to would like to express our support and appre- ciation for your introduction of the Market- just going around the room, and I was solve for 14 years. Today, I think we place Fairness Act, which will provide those listening to small businesses describe have a new solution and ‘‘the’’ solu- states that comply with the simplification to me some of the challenges they face. tion—The Marketplace Fairness Act. requirements outlined in the legislation, the A woman, a small business owner, Our solution has to do with sales taxes authority to require remote sellers to collect said to me: MIKE, we have studied this that are not being collected at the those states’ sales taxes. health care law every which way we present time. It is a loophole in the tax At a time when states continue to face se- can. I am right on the edge of having 50 law. vere budget gaps—states closed shortfalls to- employees. I am told if I go over 50 em- I used to be a retailer. I never taling $72 billion leading into the FY 2012 budget process—it is essential states be al- ployees, I am now subject to all of the thought it was fair that I had to collect lowed to collect the revenue generated by ramifications of the health care law. the sales taxes but the people from out uncollected sales taxes. In 2012, states will After looking at this I have decided I of State did not have to collect the collectively lose an estimated $23.3 billion in will not grow my business beyond 50 same sales tax. I used to be a mayor, uncollected sales taxes from out-of-state employees. I do not want to deal with and this bill is a jobs bill and an infra- sales, with more than $11.3 billion alone from this health care law. structure bill. A lot of people do not re- electronic commerce transactions, according Her discussion with me has stuck alize that sales taxes help pay for to a study by the University of Tennessee. with me all of these months. Why is it schools, police and firemen. They may The amount of uncollected sales taxes will continue to grow, especially with the unprec- that Washington would actually pass not realize it pays for infrastructure, edented growth of online commerce. legislation that would discourage her such as streets and sewers. I always The enactment of the Marketplace Fair- from hiring additional employees to tell people it is a little tough to flush ness Act is imperative in light of the current grow her business? It makes no sense the toilet over the Internet. deliberations by the Joint Select Committee

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on Deficit Reduction and resulting seques- NATIONAL ASSOCIATION OF COUNTIES, of taxation and help our members recover tration if the ‘‘Super Committee’’ is unsuc- Washington, DC, November 9, 2011. tax revenues that are due from purchases cessful. Under either scenario, states will Hon. RICHARD DURBIN, made by remote means. likely face hundreds of billions in reductions U.S. Senate, Your legislation responds appropriately to in many state-federal programs. While the Washington, DC. the changing nature of commerce and sales and use tax collection. While the increasing $23.3 billion in uncollected sales taxes will Hon. TIM JOHNSON, strength of electronic commerce creates ex- not match any funding reductions, it will U.S. Senate, citing new marketplaces, it has also put tra- provide states with some fiscal relief. In the Washington, DC. Hon. MIKE ENZI, ditional retail outlets at an unfair disadvan- words of Senator Roy Blunt, a sponsor of U.S. Senate, tage because of outdated and inequitable tax this legislation, it is ‘‘fiscal relief for the Washington, DC. and regulatory environments. states that does not cost the federal govern- Hon. LAMAR ALEXANDER, Our organizations strongly support your ment a dime.’’ U.S. Senate, legislative efforts to require collection of The Marketplace Fairness Act is also a win Washington, DC. taxes made on remote sales, and we are pleased that in doing so that you recognize for local main street businesses throughout DEAR SENATORS DURBIN, JOHNSON, ENZI AND the longstanding Streamlined Sales Tax the country by leveling the playing field be- ALEXANDER: On behalf of the National Asso- Agreement Project (SSTA). We are also tween these main street businesses who have ciation of Counties (NACo) and the nation’s 3,068 counties, I applaud the introduction of pleased that you have excluded issues such to collect sales taxes and out-of-state mer- the Marketplace Fairness Act. At a time as local telecommunications tax reform, chants who currently do not. Allowing some when counties continue to make the tough which should be addressed separately from remote sellers to avoid collecting this tax is decisions and provide services for our mutual collection of remote sales and use taxes. unfair to the main street merchants that constituents with fewer resources, we appre- Although we have championed for collec- make up the lifeblood of our local commu- ciate your legislative efforts to both assure a tion of remote sales taxes for over a decade, nities. The legislation also removes the li- simpler system of taxation and help our there is no time better than now for this leg- ability for businesses collecting sales taxes, members recover tax revenues due from pur- islation to move forward, as local govern- ensuring that sellers are held harmless for chases made by remote means. ments face the fifth straight year of declines calculations and collections using the infor- Due to the changing nature of commerce in revenue with probable further declines in mation and certified technology provided by and sales and use tax collection, your legis- 2012. Thank you again for introducing this im- the states that have complied with the Act. lation responds appropriately by establishing a path to modernize the current system. Ac- portant legislation. We look forward to There will be some who claim that this is cording to a University of Tennessee study working with you and other supporters of a new tax; nothing could be further from the in 2009, e-commerce sales have grown from the Act and the SSTA to see the collection truth. This legislation will not require any just over $900 billion in 1999 to more than $2 of remote sales taxes enacted into federal state to levy a sales tax on any product or trillion in 2006. That same study estimated law. means of buying a product. It merely cor- revenue loss for state and local government Sincerely, rects a tax avoidance problem that if not to the tune of $10.1 billion to $11.3 billion in LARRY E. NAAKE, closed now, will only get worse and possibly sales taxes in 2011 alone. Although NACo has Executive Director, push states to seek new revenue sources to worked with other state and local govern- National Association make up for the uncollected sales taxes. ment representatives to champion for collec- of Counties. tion of remote sales taxes for over a decade, DONALD J. BORUT, On behalf of our colleagues from across the there is no time better than now for this leg- Executive Director, country, we thank you for introducing this islation to move forward. Local governments National League of vital legislation and in doing so, enhancing are facing declining revenues due in part to Cities. state sovereignty and fiscal federalism. rising mortgage foreclosures, and a reduc- TOM COCHRAN, Sincerely, tion in assistance from their states and the CEO and Executive SENATOR STEPHEN MORRIS, federal government. Director, United President, Kansas Senate, While your legislation is important in States Conference of NCSL President. moving us towards collection of remote sales Mayors. SENATOR RICHARD MOORE, tax, it also serves the purpose of creating eq- JEFFREY L. ESSER, Massachusetts Senate, uity for those businesses within our local Executive Director and NCSL Immediate Past President. communities. The increasing strength of CEO, Government electronic commerce creates exciting new Finance Officers As- STREAMLINED SALES TAX marketplaces, but it has also put traditional sociation. GOVERNING BOARD, INC., retail outlets at an unfair disadvantage be- November 9, 2011. cause of outdated and inequitable tax and FEDERATION OF Hon. RICHARD DURBIN, regulatory environments. TAX ADMINISTRATORS, Hon. TIM JOHNSON, NACo strongly supports your legislative ef- November 9, 2011. Hon. MIKE ENZI, forts to require collection of taxes made on SENATOR RICHARD J. DURBIN, Hon. LAMAR ALEXANDER, remote sales, and we appreciate that you Senate Hart Office Building, U.S. Senate, recognize the longstanding Streamlined Washington, DC. Washington, DC. Sales Tax Agreement Project (SSTA). We are SENATOR MICHAEL B. ENZI, also pleased that you have excluded issues Russell Senate Office Building, DEAR SENATORS DURBIN, ENZI, JOHNSON AND such as local telecommunications tax re- Washington, DC. ALEXANDER: The 24 Streamline states want form, which should be addressed separately SENATOR LAMAR ALEXANDER, you to know they support your introduction from collection of remote sales and use Dirksen Senate Office Building, of the Marketplace Fairness Act. taxes. Washington, DC. Online retailers have a competitive price Thank you again for introducing this im- SENATOR TIM JOHNSON, advantage over brick-and-mortar retailers portant legislation. We look forward to Dirksen Senate Office Building, working with you and other supporters of harming the brick-and-mortar retailers. Washington, DC. the Act and the SSTA to see the collection DEAR SENATORS DURBIN, ENZI, ALEXANDER Many main street businesses are little more of remote sales taxes enacted to federal law. AND JOHNSON: The Federation of Tax Admin- than showrooms where consumers go to Sincerely, istrators (FTA) thanks you for introducing ‘‘kick the tires’’ on products they later buy LENNY ELIASON, the new version of the Main Street Fairness online harming the local business and the Commissioner, Athens County, Ohio, Act for which we are pleased to be able to community depending on the sales tax from NACo 2011–2012 President. announce our support. FTA is an association that sale. of the tax administration agencies in each of At a time when Main Street retailers face NOVEMBER 9, 2011. the 50 states, the District of Columbia, and enormous competitive challenges it is appro- Hon. RICHARD DURBIN, New York City. priate for Congress to end this unfair treat- Hon. MIKE ENZI, The Main Street Fairness Act offers a real- istic framework for both large and small ment. Hon. TIM JOHNSON, Hon. LAMAR ALEXANDER, states to collect sales taxes that are already After our ten years of effort to simplify U.S. Senate, due and owing in a simplified administrative sales tax administration we are encouraged Washington, DC. system. We regard the ability to collect sales by your effort to get Congress to level the DEAR SENATORS DURBIN, ENZI, JOHNSON AND taxes from remote sellers to be a matter of playing field for all retailers. ALEXANDER: As leaders of the local govern- the highest importance. This Act will signifi- Sincerely, ment associations listed above, we applaud cantly improve tax compliance for both state SENATOR LUKE KENLEY, the introduction of the Marketplace Fairness and local governments while at the same President. Act, which will both assure a simpler system time creating a level playing field for all

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00006 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.001 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7235 businesses. This is because the current sys- puts them at a competitive disadvantage to ner of taxing community-based retailers, re- tem disadvantages in-state ‘‘bricks and mor- the online retail giants. RILA and our mem- move the liability currently being pushed tar’’ stores to the advantage of out-of-state bership are grateful for your leadership on onto consumers, and promote community in- businesses and this Act will help improve this important issue and we are committed vestment. More importantly, it would pro- business activities in our states and the em- to helping make this legislation law this vide support for local businesses and nec- ployment these in-state businesses generate. Congress. essary revenue to states without adding to We look forward to working with you dur- By way of background, RILA is the trade the federal deficit, establishing new taxes or ing the legislative process to enact final leg- association of the world’s largest and most increasing existing taxes. This bill is a true islation into law. innovative retail companies. RILA promotes stimulus for our states and local commu- Sincerely, consumer choice and economic freedom nities. through public policy and industry oper- PATRICK T. CARTER, It is time for the federal government to ational excellence. Its members include more President. allow states to enforce their laws and pro- than 200 retailers, product manufacturers, mote sound policy that will allow commu- and service suppliers, which together ac- NATIONAL RETAIL FEDERATION, nity-based and internet retailers to thrive in count for more than $1.5 trillion in annual Washington, DC, November 8, 2011. the 21st Century marketplace. sales, millions of American jobs and operate Hon. MICHAEL B. ENZI, more than 100,000 stores, manufacturing fa- Thank you again for the dedication and Ranking Member, Committee on Health, Edu- cilities and distribution centers domestically strong leadership that was required to create cation, Labor & Pensions, U.S. Senate, and abroad. this important legislation. Washington, DC. Because of a decades-old loophole that pre- Sincerely, Hon. RICHARD J. DURBIN, dates the Internet, online-only companies BETSY LAIRD, Assistant Majority Leader, U.S. Senate, Wash- can achieve as much as a 10–percent price ad- Senior Vice President, ington, D.C. vantage over brick-and-mortar retailers by Office of Global Public Policy. Hon. LAMAR ALEXANDER, not collecting state sales taxes. This special Chairman, Republican Conference, U.S. Senate, treatment has the effect of the government Mr. ENZI. Some of the groups in- Washington, DC. picking winners and losers in the market- clude: One is from the National Con- Hon. TIM JOHNSON, place, and main street businesses simply ference of State Legislatures, one from Chairman, Committee on Banking, Housing & cannot compete over the long term with on- the National Association of Counties, Urban Affairs, U.S. Senate, Washington, line giants that enjoy a government-sanc- the National League of Cities, the Fed- DC. tioned competitive advantage. eration of Tax Administrators, The Na- DEAR SENATOR ENZI, SENATOR DURBIN, SEN- This loophole is costing jobs on Main Street while shortchanging state budgets by tional Retail Federation, the Retail In- ATOR ALEXANDER AND SENATOR JOHNSON: On dustry Leaders Association, the Inter- behalf of the National Retail Federation an estimated $23 billion in uncollected state (NRF), I am writing in support of the Mar- sales taxes annually, a figure that will only national Council of Shopping Centers, ketplace Fairness Act, which levels the play- increase as Internet commerce continues to and the Governing Board of the ing field between local and out-of-state mer- grow. Few Americans know that their state Streamlined Sales and Use Tax Agree- chants with respect to collection of sales requires them to pay the sales tax on pur- ment. taxes. chases made online if the vendor does not I want to read one from Amazon.com collect it at the point of sale, leaving con- As the state of retailing evolves and inter- because they are one of the world’s net sales become a more prominent portion sumers vulnerable to penalties, interest and of total retail sales, it is critical that the tax increased scrutiny from state auditors. If en- largest online sellers. In the past, they laws not discriminate between similar busi- acted, the Marketplace Fairness Act would have opposed previous versions of the nesses based on how their products are dis- remove this burden from your constituents bill, but they think we have this one tributed. The Marketplace Fairness Act will and in the process empower states to address right. eliminate this discrimination by removing their budget deficits without having to raise The letter states: the constitutional limitation on your State’s taxes—all without any cost to the federal authority to collect sales and use taxes from government. Thank you very much for your legislation remote sellers. Over a quarter trillion dollars In closing, we strongly support the Mar- on interstate sales tax collection. will go uncollected in the next decade unless ketplace Fairness Act to eliminate this anti- Amazon strongly supports enactment of this legislation is enacted. quated loophole and view it as critical to your bill and will work with you, your col- As the world’s largest retail trade associa- preserving Main Street businesses and the leagues in Congress, retailers, and the states tion and the voice of retail worldwide, NRF’s jobs they provide. Thank you again for your to get this bipartisan legislation passed. It’s global membership includes retailers of all leadership on this important issue. a win-win resolution—and as analysts have sizes, formats and channels of distribution as Sincerely, noted, Amazon offers customers the best well as chain restaurants and industry part- KATHERINE LUGAR, prices with or without sales tax. ners from the United States and more than Executive Vice President, If enacted, your bill will allow states to re- 45 countries abroad. In the U.S., NRF rep- Public Affairs. quire out of state retailers to collect sales resents an industry that includes more than tax at the time of purchase and remit those 3.6 million establishments and which di- INTERNATIONAL COUNCIL taxes on behalf of customers, and it will fa- rectly and indirectly accounts for 42 million OF SHOPPING CENTERS, INC., cilitate collection on behalf of third party jobs—one in four U.S. jobs. The total U.S. Washington, DC, November 7, 2011. sellers. Thus, your bill will allow states to GDP impact of retail is $2.5 trillion annu- DEAR SENATORS ALEXANDER, DURBIN AND obtain additional revenue without new taxes ally, and retail is a daily barometer of the ENZI: On behalf of the more than 42,000 mem- or federal spending and will make it easy for health of the nation’s economy. bers of the International Council of Shopping consumers and small retailers to comply The Marketplace Fairness Act will bring Centers (ICSC), I would like to thank you for with state sales tax laws. fairness to large and small retailers alike your leadership on the Marketplace Fairness Act. We strongly support this bipartisan leg- Amazon is grateful for your hard work on and provide a business climate in which the issue, and we look forward to working these retailers have a better opportunity to islation that will level the playing field for community-based retailers by offering long- with you and your colleagues in Congress to grow and create jobs. Our members look for- pass this legislation. ward to working with you to help this legis- overdue sales tax fairness. lation become law. ICSC was founded in 1957 and is the pre- We have a number of other sup- Sincerely, mier global trade association of the shopping porters in addition to the others I just center industry. Its members include shop- DAVID FRENCH, ping center owners, developers, managers, mentioned. We are appreciative of Senior Vice President, marketing specialists, investors, retailers their support and look forward to Government Relations. and brokers, as well as academics and public working with them to get this bill en- officials. acted. RETAIL INDUSTRY Under the current system, not all retail The Marketplace Fairness Act is a bi- LEADERS ASSOCIATION, sales are treated equally. While brick-and- Arlington, VA, November 9, 2011. mortar retailers must remit sales and use partisan bill. The original cosponsors Hon. MIKE ENZI, taxes, many remote sellers, such as catalog on it are five Republicans—Senators U.S. Senate, and online vendors, are exempt from such re- ALEXANDER, BOOZMAN, BLUNT, CORKER, Washington, DC. quirements. Our current sales tax policy un- and me and five Democrats—Senators DEAR SENATOR ENZI: On behalf of the Re- fairly impacts local retailers—many of DURBIN, TIM JOHNSON, REED, WHITE- tail Industry Leaders Associations (RILA), whom have also been hit during the reces- HOUSE, and PRYOR. A key person in this and the millions of Main Street retailers sion—and places an impractical legal burden debate has been the Senator from Illi- throughout the country, we would like to ex- on taxpayers and consumers, costing state nois, Mr. DURBIN, who introduced a pre- press our strong support for the Marketplace and local governments billions in much- Fairness Act. This legislation levels the needed revenue. vious version of the bill. We encourage playing field for Main Street brick-and-mor- The Marketplace Fairness Act would our colleagues to take a look at Sen- tar businesses by closing a loophole that eliminate the present system’s lopsided man- ator DURBIN’s previously introduced

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When I DURBIN if he has any comments he will describe in a moment—that cap- think back on all of the battles that would like to share as he has been an italizes on the technology and software have been fought in all of the States by integral part of making the bill a available today to make this a process Amazon when each State tried to ad- strong bipartisan product and realizing that is not burdensome and does not dress this, I believe it is telling that the plight the retailers and the state slow down commerce in any way. they have stepped forward and said: and local governments are in. I recently went to Bloomington, IL, Here is a solution that can work. And Mr. DURBIN. I thank my colleague, and a number of other communities in if the largest online retailer in Amer- Senator ENZI. I want to give fair warn- my State and sat down with local re- ica—or one of the largest—feels that ing to all who are witnessing the de- tailers and had them tell their sto- way, it should encourage many col- bate that bipartisanship is about to ries—in many cases, depressing sto- leagues who don’t want to destroy that break out on the floor of the Senate, ries—about what they are going part of our economy, and I certainly and you can witness it. We have a bi- through. In one instance, this fellow don’t either. partisan effort led by Senator ENZI, sells camping gear, outdoor wear, some This is a positive step in the right di- who has really been dedicating his life snorkeling equipment, and ski equip- rection. I thank Senator TIM JOHNSON, in public service, as a former retailer, ment, and it is not unusual for him and Senator BOOZMAN, Senator JACK REED, to being sensitive to the needs of Main for others who are selling that type of Senator BLUNT, Senator WHITEHOUSE, Street and small business. For years, sporting equipment to have local cus- and many others who are going to join Senator ENZI, Senator ALEXANDER, and he worked with our former colleague, tomers come in and look for the prod- myself in this effort to pass this bipar- Senator Byron Dorgan of North Da- uct they want, actually get a fitting to tisan bill. Let’s get this done. Let’s kota, and they did their best to pass make sure they get the right size, and work together on a bipartisan basis to this legislation. When Senator Dorgan then leave to order it on the Internet solve a problem that has haunted us for retired, I approached Senator ENZI and so they can escape any sales tax liabil- over a decade and do it in a fair fashion said: I would like to join you in this ef- ity. Well, that isn’t fair to the local that does not create any new taxes but fort. I am honored to be on the floor merchant, and it certainly wasn’t the gives to the States the right to collect with him and our mutual friend, Sen- intention of Illinois or any other State those taxes that are already on the ator ALEXANDER, in this combined bi- to impose a sales tax just on those book. partisan effort to deal with an issue I businesses that physically exist in our I yield the floor. think is essential to fairness in our States. The PRESIDING OFFICER. The Sen- economy and helping small businesses This bill, the Marketplace Fairness ator from Tennessee. The minority has thrive, which is the key to economic Act, applies this sales tax across the 20 seconds left. revitalization. board to sales across the United States, Mr. ALEXANDER. I ask consent to If you ask the small businesses in my and it is voluntary. States have to de- extend the colloquy into Democratic home State of Illinois what they want, cide they want to move into this field time. it is not a big handout from Wash- and use this opportunity. I think that The PRESIDING OFFICER. Is there ington, nor any special attention. is the way to approach it. Some 24 objection? Frankly, they ask for a level playing States, if I am not mistaken, have al- Mr. DURBIN. No objection. field: Let them compete. What Senator ready signed up for this streamlined The PRESIDING OFFICER. Without ENZI has said is that many retailers in coalition which allows them to make objection, it is so ordered. my State, his, and every State are find- this happen. Other States, by com- Mr. ALEXANDER. I wish to con- ing it more difficult to compete be- plying with this law and passing a local gratulate Senator ENZI and Senator cause they have to rent a building or State law, can do the same. It is their DURBIN and say how pleased I am to buy one. They have to pay the property option. We don’t impose it or demand join as a cosponsor of their legislation. taxes. They, of course, have to pay it. It is their option, if they choose it, Here is what I want to congratulate utility bills and local taxes that might to use existing sales tax and to take them for. Senator ENZI said he came to this as a former mayor, as a former be generated because of their sales ei- the initiative at the State level. As shoe shop owner, and as a former legis- ther to the State or local government. Senator ALEXANDER has reminded me In each instance, they are investing lator. I come as a former Governor. many times, it is a States rights issue, In our constitutional framework, I back into the community and State in as it should be, and that is what we are have always thought it was our busi- which they live. That is part of the focusing on in this legislation. ness in Tennessee to decide what serv- basic understanding we have in this I think it is an issue of fairness, and ices we wanted to provide and what country, that we are in this together I think it goes beyond what we are fac- taxes we wanted to levy to pay for and we need to cooperate. The busi- ing today in terms of the disparity be- them. For example, we have a high nessman down the street who is selling tween Democrats and Republicans. We sales tax, but we have no income tax. something in a store is also at the are coming together. We are coming That is different from most States. We same time supporting the local com- together on behalf of tax fairness, com- have a low overall tax burden. For me, munity to make sure it has traffic ing together on behalf of States rights, this is, as Senator DURBIN and I have lights and make certain it has police coming together to make certain that discussed, a matter of States rights. protection and utilities and streets and small businesses across America have I think the most important thing I curbs and gutters and everything that the resources they need to prosper, be could say today is that they have goes with it. profitable, and, we hope, to expand solved the problem with this legisla- But there has been a new phenomena their workforce. We need to create tion. This problem has been there for a in the American marketplace over the more jobs, and I don’t think it is un- long time. It has had the opposition of last several decades, and now it is in reasonable to expect that to happen as conservatives worried about taxes. It full throat, and that is the Internet. these local retailers become more com- has had the opposition of Amazon and Internet sales are an amazing entity— petitive and more profitable. other online sellers. we can literally click a mouse and buy I might also add that the States that Twenty years ago, when technology a product that will arrive several days decide to opt in to it will have a source for businesses to compute and collect later at our home or business place. It of revenue that will be helpful to them taxes was not nearly as innovative as also has invited an inequity, an unfair- in difficult times. Again, it is their de- it is today, the Supreme Court said ness that we address in this bill. cision. that without congressional approval, We are not creating any new taxes in I will not recount all of the groups states could not require out-of-state this bill. I say to my friends on both that have endorsed this; Senator ENZI businesses to collect sales taxes be- sides of the aisle, that is not our inten- already has. It is a pretty impressive cause this created too much of a bur- tion, nor does this bill do that. What it array. One of the most impressive sup- den on interstate commerce. Senator

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00008 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.008 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7237 ENZI and Senator DURBIN, with this WY, and the online seller will do the competitiveness isn’t other countries. It’s legislation, in my opinion, have solved very same thing. They will collect the our tax law. the problem, and this is going to hap- sales tax that is already owed from the The United States Tax Code is difficult to understand and even harder to navigate, for pen. purchaser and they will send it directly families and businesses alike. Title 26 has I am not presumptuous enough to to the State, which has been the way been patchworked, reformed, and tinkered predict what the Congress will do and things have worked for a long time. with for decades, giving us an antiquated what the President will sign, but I This is an issue about preserving the mess of laws rife with inequities. Our cor- think I have been around long enough States’ right to collect or not to col- porate tax rate is among the highest in the and I have watched Congress enough to lect their own sales tax. It is about world. We refuse to shift to a Territorial Tax say this is going to happen. And if I closing a tax loophole. It is about stop- System that would stop punishing our com- were Governor, if I were an online re- panies for bringing earned overseas income ping the subsidization of some busi- back to the U.S. for reinvestment. Tax rates tailer, or if I were a catalog retailer, I nesses over others, of some taxpayers for small businesses remain high and incon- would make my plans to conduct my over others. sistent. business in this way. Why do I say I will conclude my remarks in a mo- A robust free-market system requires a that? Well, for one thing, times have ment, but first here is what William F. level playing field, where the government changed. Buckley said about it: doesn’t get to pick the winners and losers. We should require the same of our system of This morning, I got up and looked up The mattress maker in Connecticut . . . the weather in my hometown. So I taxation. We need a simpler, fairer, flatter does not like it if out-of-State businesses tax code that removes loopholes, subsidies, went online and put in weather, 37886— are, in practical terms, subsidized; that’s and credits, one that lowers rates across the that is my ZIP Code—and back came what the non-tax amounts to. Local con- board and expands the percentage of Ameri- the information. Under the bill Senator cerns are complaining about traffic in mat- cans paying their fair share of taxes. tresses and books and records and computer DURBIN and Senator ENZI have pro- When it comes to sales tax, it is time to equipment which, ordered through the Inter- address the area where prejudice is most posed, the State would create a system net, come in, so to speak, duty free. for Amazon, let’s say as an example, an egregious—our policy towards Internet sales. At issue is the federal government exempt- online seller. All they would have to Of course, Governors and legislators are up in arms as well. This loophole ing some Internet transactions from sales do, if I buy a $300 or $400 television set, taxes while requiring the remittance of sales is they put my name in, they put in my costs States $23 billion. Tennessee could use this money to ward off a taxes for identical sales made at brick and ZIP code, and the software the State mortar locations. It is an outdated set of has provided will tell them what the State income tax which we don’t have policies in today’s super information age, tax is and will even electronically and we don’t want. Wyoming could use when families every day make decisions to transfer the tax money back to the the revenue to reduce its property tax. purchase goods and services online or in per- Other States might reduce rising col- son. Moreover, it’s unfair, punitive to some State. In other words, Amazon will do small businesses and corporations and a boon the same thing the appliance store in lege tuitions, or they might reward outstanding teachers. for others. Maryville, TN, will do, and that is This is why the American Conservative what we intended to happen. This has been a problem for the last Union applauds Rep. Steve Womack for his I mean, when we passed a sales tax in 20 years, but Senator ENZI and Senator sponsorship of the Marketplace Equity Act Tennessee—I wasn’t around then, but I DURBIN, with their legislation, have of 2011, one of the first sincere attempts to was around when it has been raised—we solved the problem. modernize our tax policy for the 21st cen- I will stop where I started. This is tury. didn’t intend to exempt some people As conservatives we know that govern- over others. We didn’t intend to sub- not a new tax, it is an existing tax. It is not a tax on the Internet; it is on all mental power can be used to destroy entre- sidize some businesses over others. We preneurship, innovation and the free market. made a general decision that when we sales. Senator ENZI and Senator DUR- There is no more glaring example of mis- buy things in Tennessee, all sellers BIN, with their legislation, have solved guided government power then when taxes or would collect the sales tax. We have a the problem, and I predict that because regulations affect two similar businesses of the voluntary agreements and the completely differently. local sales tax and we have a State Over time, the company that has to com- sales tax, and that is our right to de- ease of out-of-State vendors doing the same thing Main Street vendors do, ply with a tax or a regulation will lose mar- cide. ket share to its competitor who is carved out Some of the opposition in the past that very soon we will eliminate these from this government interference. In these has come from conservative groups. It subsidies and close this loophole. I con- cases the winner is not the company who was important, just yesterday, to see gratulate them for their years of work outcompetes, but the one who gets special the chairman of the American Conserv- in this area. I am happy to join 10 Sen- privileges from the government. ators—5 Republicans, 5 Democrats—in At its inception, the Internet was every- ative Union write a very strong article one’s darling, the latest example of Amer- in support of a House version of this cosponsoring this legislation. Mr. President, I ask unanimous con- ican innovation and ingenuity. Internet sales same bill. I talked with him yesterday, represented a miniscule portion of the total Mr. Al Cardenas, a businessman from sent to include for the RECORD the arti- retail market, and the novelty led to tax Florida, and he is reviewing our bill. cle by Al Cardenas, the head of the loopholes and unintended consequences. Ten years ago, William F. Buckley American Conservative Union; the Now, according to Forrester Research, Inter- wrote about this problem and said that essay by William F. Buckley; and a let- net sales account for nearly 10 percent of all it was a loophole that needed to be ter from Governor Bill Haslam of Ten- sales of products and services in America, with an annual growth rate of about 9 per- solved and when States decided to sub- nessee, endorsing the Enzi-Durbin leg- islation. cent. sidize some taxpayers over others and If we do not confront this issue, state and some businesses over others, that was There being no objection, the mate- local governments dependent on sales taxes not good conservative philosophy. rial was ordered to be printed in the will need to look for other sources of reve- So when you have Amazon sup- RECORD, as follows: nues as Internet sales continue to expand. porting in a strong letter that Senator [From National Review Online, Nov. 8, 2011] Policy which allows for both online and ENZI read, and when you have the THE CHIEF THREAT TO AMERICAN brick and mortar retailers to be susceptible to the same taxes will—and should—allow chairman of the American Conserv- COMPETITIVENESS: OUR TAX CODE for commensurate reductions in sales tax (By Al Cardenas) ative Union on the same day announc- rates. For instance, if Internet sales tax rev- ing his support for the same principles, More than three years after America’s fi- enues will add 10 percent in revenue to a gov- I think you have solved the problem. nancial system hit a crisis point, the state of erning body’s coffers, then, at a minimum, a As Amazon just said in their letter, our economy remains in turmoil. As our na- corresponding overall reduction in rates they are in business to compete and tion’s leaders grapple with immediate chal- should apply. they can sell their goods, they claim, lenges through dueling jobs plans and the The current system is also inconsistent cheaper online than they can buy them Joint Select Committee on Deficit Reduc- with states’ rights, and the Congress ought tion tries to come to agreement on a trillion to carefully consider enacting revenue neu- in Senator ENZI’s store in Gillette, WY. and a half in reductions, we must also con- tral tax reform policies consistent with the Maybe they can, maybe they can’t, but sider long-term measures to strengthen our Tenth Amendment. at least they will have a level playing economic security. As it stands now, the The free-market system can only operate field, and both the store in Gillette, number one threat to the future of American effectively on a level playing field of free and

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00009 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.009 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7238 CONGRESSIONAL RECORD — SENATE November 9, 2011 fair competition. Whether it’s the Depart- technology. The Internet is the happiest in- Your legislation gives states the flexibility ment of Energy’s disastrous Solyndra tellectual, journalistic, and educational de- to determine what works best for them, and project, or levying sales taxes, or a mul- velopment in history, and the thought of let- I am grateful that you are putting states’ titude of other policy decisions that impact ting the weeds of prehensile government rights first and closing this online sales-tax the private sector, the government picking crawl about it struck some as on the order of loophole. The Marketplace Fairness Act winners and losers is a perversion of the free enforced shutters on sunlight, or taps on wa- strikes the right balance for Tennessee, and market system. Lawmakers on Capitol Hill— terfalls. I fully support your efforts. especially conservatives—ought to at least But, sigh, that was three years ago, which Warmest regards, acknowledge this when deliberating impor- in the Internet business is three millennia BILL HASLAM, tant reforms to the tax code. As we consider ago. The estimated commerce done by the Governor, State of Tennessee. wholesale reform, exempting Internet sales Internet in 1998 was $9 billion. Last year it Mr. DURBIN. Mr. President, would was $26 billion. Which means we have to can no longer be justified. the Senator from Tennessee yield for a The Marketplace Equity Act of 2011 begins come to earth, and face homespun economic this conversation. It’s not a perfect bill, but truths. If the advantage of tax-free Internet moment? it’s a critical beginning to this dialogue and commerce marginally closes out local indus- Mr. ALEXANDER. Oh, yes. should spark bipartisan support for revenue try, reforms are required. Mr. DURBIN. I wish to go on the neutral reforms. Rest assured, we will not be The mechanics of reforms call on holding record on behalf of myself and, I am party to or stand for Trojan Horse legisla- not the buyer, but the seller, responsible. It sure Senator ENZI, in saying that Sen- tion that claims to strive for equity in the still won’t be possible to target the mother ator ALEXANDER doesn’t give himself law merely to serve as a cloak for secret tax in Hartford directly when the mattress ar- enough credit. He has been an integral rives, but the exporter of it in Massachusetts increases. part of putting together this bipartisan We have a great opportunity to drastically can be required to add $30 to the cost of the lower rates, especially corporate rates, and mattress, and send the check off to Con- bill. We wouldn’t be here without him. eliminate esoteric tax preferences to stave necticut Internal Revenue. It is, finally, im- I want to thank him for facilitating off the next massive financial crisis. A flat- possible for Congress to wrestle with the the bipartisan effort to put this bill to- ter, fairer, simpler tax code is the key to en- problem without yielding to legitimate de- gether. I share his feelings. I think we suring American competitiveness for genera- mands of the states spending the money on have finally found that sweet spot, and tions to come. Our leaders in Congress are education, police, and fire departments, and we can pass this bill. obligated to thoughtfully consider measures deprive them of revenue. Mr. ALEXANDER. I thank the Sen- to achieve this. The question has not come up in the cur- rent welter of proposals, but we have to ator from Illinois. Mr. ENZI. Mr. President, we yield the [From National Review Online, Oct. 19, 2001] watch carefully to prevent the United States floor. GET THAT INTERNET TAX RIGHT Postal Service from getting into the act. The most calamitous exposure of the postal serv- The PRESIDING OFFICER (Mr. (By William F. Buckley Jr.) ice since the days of mail-train robberies is BINGAMAN). The Senator from Rhode Congress is up against it: what to do about of course fax and the Internet. These are, for Island. Internet commerce? all intents and purposes, absolutely free Mr. REED. I ask unanimous consent To return to an example given earlier in transactions. One hundred messages can be this space, you have a mother living in Hart- to return to morning business. sent out, or for that matter one thousand, The PRESIDING OFFICER. The Sen- ford, Connecticut, looking for a new mat- for less than the cost of a first-class postage tress and spotting one on the website of a stamp. A rumor swept about the medium, a ate is in morning business. producer in Massachusetts. The feel of it is year or so back, that a proposal was making Mr. REED. Mr. President, let me also right, and so is the price, so the $500 order is way that would charge five cents for every commend Senator ENZI and Senator placed. The mattress crossing the border is communication sent out on the Internet. DURBIN and Senator ALEXANDER be- not taxed, because writing the Constitution The very idea is heretical, like charging cause I too am a cosponsor of this leg- in Philadelphia in 1787, it was decided: no for Communion wafers. To tax the Internet islation, and I think it does represent a tariffs within the 13 states. Interstate com- for the benefit of the postal service is merce would be regulated only by Congress. remarkably thoughtful and bipartisan unsupportable reasoning. The postal service approach to the problem of providing Which is all to the good, but Connecticut needs to survive from its own revenues. If takes the position that the family living there is a shortfall, the government can resources to local States and commu- happily in Hartford has to pay its share of come up with it, as required, on the same nities so they can carry out the very the cost of government, which entitles the principle as rural free delivery. But to at- challenging issues of local govern- treasury to a use tax. If the mother in Hart- tempt to relieve its problems by contami- ments. I am not surprised that Senator ford who sent out for the mattress in Massa- nating the Internet is something that any ALEXANDER is a key element in this chusetts were a perfect citizen, she would congressman who has taken an oath to right product. Both Senator ENZI and Sen- write a check for $30 (6 percent) to the State reason is bound to oppose. of Connecticut and sleep at complete ease ator DURBIN deserve to be com- plimented. I thank them for their lead- with her conscience. What she does do, is NOVEMBER 8, 2011. sleep at complete ease with her conscience Senator LAMAR ALEXANDER, ership. without sending in the check for $30. The U.S. Senate, Dirksen Senate Office Building, f reason for it is that taxes of that order are Washington, DC. pretty well uncollectable. An uncollectable DEAR SENATOR ALEXANDER: I am writing to VOW TO HIRE HEROES ACT tax is one which would cost more to exact it thank you for your leadership in helping to Mr. REED. Mr. President, I rise spe- would yield in profit. There is, in addition, advance a federal solution to a problem cifically to speak in strong support of the political question. People wouldn’t like states need Congress to address: the preser- the VOW to Hire Heroes Act of 2011. it when Big Brother stared into every out-of- vation of their own right to enforce their This legislation incorporates key com- state package, inquiring whether there is own tax laws and returning fairness to the something in it for city hall. marketplace. ponents of the American Jobs Act and So that one part of the pressure building The Marketplace Fairness Act will bring other bipartisan proposals designed to on Congress is collectivist: to let states come much needed, and long overdue, relief to the help veterans find jobs, including the in with a transfer tax. But a second pressure State of Tennessee. Tennessee and other Hiring Heroes Act, of which I am a is from merchants who see themselves af- states are currently unable to compel out-of- proud cosponsor. These are common- fected by untaxed transactions. The mat- state businesses to collect sales taxes the sense policies that Congress can and tress maker in Connecticut is willing to same way local businesses do. It is important should pass immediately. compete with the company in Massachu- for states to determine their own tax policy We are in the midst of an unemploy- setts, but does not like it if out-of-state busi- and have the ability to collect the revenues nesses are, in practical terms, subsidized; they are already owed. This is why your leg- ment crisis that is obvious to every that’s what the non-tax amounts to. Local islation is so important. American, and it is a growing problem concerns are complaining about traffic in The Internet has changed the way we do that is sapping not only our economic mattresses and books and records and com- business and provides small businesses the strength but indeed our sense of na- puter equipment which, ordered through the opportunity to grow, but we need our laws to tional purpose and our morale. The na- Internet, come in, so to speak, duty free. adapt to this new marketplace. Our state re- tional unemployment rate has been Three years ago, Congress voted to con- lies on sales taxes for the majority of its rev- hovering around 9 percent, and that tinue until 2001 the tax-free character of enue, and each year we are losing hundreds interstate commerce. This meant not only a of millions of dollars that could be used to means 14 million Americans are look- prospective loss of tax to the affected states, benefit Tennessee. What cannot happen is for ing for work in one of the toughest it meant also something on the order of a Congress to do nothing, which will prevent economies since the Great Depression. benediction on a staggering development in states from enforcing their own laws. But what is unfortunate—some might

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00010 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.006 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7239 even say shameful—is that almost 1 service to their civilian careers. They DISAPPROVING THE RULE SUB- million of those Americans looking for have incredible skills of leadership, of MITTED BY THE FEDERAL COM- work are veterans returning home diligence, of dedication, of self-dis- MUNICATIONS COMMISSION WITH after valiantly serving our country. cipline that add to their technical RESPECT TO REGULATING THE The unemployment rate for veterans of skills and make them incredibly im- INTERNET AND BROADBAND IN- Afghanistan and Iraq is an indefensible portant for the growth of our economy, DUSTRY PRACTICES—MOTION TO 12.1 percent. It represents a significant and they have to have the opportunity PROCEED blow to young men and women who are to use these skills for the benefit of Mr. MCCONNELL. Mr. President, I returning home after serving their their communities, as they did to de- move to proceed to S.J. Res. 6. country in very difficult cir- fend their country. This legislation The PRESIDING OFFICER. Under cumstances. In 2010, 36 percent of Af- provides that critical assistance. the previous order, there will be 4 ghanistan and Iraq-era veterans were hours of debate, equally divided and It has other aspects to it. First, it unemployed for longer than 26 weeks. controlled between the two leaders or would provide opportunities for mili- Again, that is a shameful statistic. their designees. This unfortunate trend is mirrored in tary personnel who are leaving active Mr. ROCKEFELLER. Mr. President, I my home State of Rhode Island. We service for transitional assistance to be suggest the absence of a quorum. have a very high unemployment rate— able to participate in workshops spon- The PRESIDING OFFICER. The 10.5 percent, one of the highest in the sored by the Department of Defense, clerk will call the roll. Nation. We have been unfortunately in the Department of Labor, and the De- The legislative clerk proceeded to that category for almost 2 years now. partment of Veterans Affairs. The call the roll. But for veterans, the rate is 11.1 per- workshops will help them write re- Mrs. HUTCHISON. Mr. President, I cent. They are doing even worse than sumes, receive career counseling, and ask unanimous consent that the order other nonveterans in the unemploy- other things. for the quorum call be rescinded. The PRESIDING OFFICER. Without ment category. That is one more rea- Second, it expands education and son, by the way, that we should extend objection, it is so ordered. training opportunities for older unem- Mrs. HUTCHISON. Mr. President, to- the unemployment compensation legis- ployed veterans by essentially pro- day’s debate concerns S.J. Res. 6. In a lation that is so necessary. I have viding an additional year of Mont- larger context, though, we have been joined Senators DURBIN, WHITEHOUSE, gomery GI bill benefits for use at com- having this debate for 34 months. The LEVIN, MERKLEY, and GILLIBRAND, and munity colleges and technical schools. theme is, the Obama administration’s we have proposed to do this with the It also allows servicemembers to begin relentless imposition of new and de- Emergency Unemployment Compensa- to seek civilian jobs in the Federal structive regulations has not helped us tion Extension Act of 2011. We still Government prior to formally sepa- get into a recovery and, in fact, I think have people coming back from Afghani- rating from their military service. is freezing our economy. stan; we still have people who are hold- Earlier this week I was with the We have seen it with the Environ- ing on to a job but very well might lose mental Protection Agency when it President when we announced these it. They need these benefits, and if we tried to regulate carbon emissions and initiatives and more. After that visit don’t pass this legislation, then begin- greenhouse gases using the Clean Air to the Rose Garden, I went to Walter ning next January, there is a very real Act, a purpose for which Congress possibility that they will not be able to Reed National Military Medical Center never intended the law to be used. We get these benefits which are so essen- in Bethesda to visit those young men have seen it with the National Medi- tial. and women who have served and who ation Board when it overturned nearly We have to work together. I think it are now wounded warriors. Trust me, a century of precedent and issued a is a very good example of the work their spirit is undeterred, as is their new rulemaking to allow unions to be Senator ENZI, Senator ALEXANDER, commitment to their country. We owe formed more easily but harder to de- Senator DURBIN, myself, and others them much more than we can ever certify. have done with respect to this legisla- repay, and the first payment of that We have seen it with the National tion on sales tax. But we have to work huge debt is passing immediately—this Labor Relations Board when it took across the aisle, particularly for our week—this legislation to help our vet- the shocking step of challenging American veterans, but also for Amer- erans. So as we celebrate Veterans Day Boeing’s decision to create new jobs by ican workers throughout this country. with speeches, we will have a real ac- building a new factory in South Caro- Again today we have a component of complishment to bring to the Amer- lina, simply because South Carolina is the American Jobs Act before us. This ican people and the veterans who serve a right-to-work State. bill is focused on veterans, but the jobs and defend us today. Today’s issue involves bureaucratic act overall should be passed. We have I yield the floor. overreach into a symbol of American argued for it endlessly, because it will innovation and creativity, the Inter- put Americans to work, it is fully paid The PRESIDING OFFICER. The Sen- net, because the Federal Communica- for, and it will be an investment in our ator from West Virginia. tions Commission has now decided to infrastructure and in other programs Mr. ROCKEFELLER. I note the ab- regulate the Internet. Last December, that are long-term needs of this Na- sence of a quorum. three FCC Commissioners, on a party- tion. line vote, voted to impose rules that This particular legislation before us The PRESIDING OFFICER. The restrict how Internet service providers targeted at veterans would provide in- clerk will call the roll. offer broadband services to consumers. centives for businesses to hire these The legislative clerk proceeded to Those rules, known as net neutrality, veterans, including a tax credit of call the roll. impose 19th century-style monopoly $2,400 for hiring a veteran who has been regulations on the most competitive Mr. MCCONNELL. Mr. President, I unemployed for more than 4 weeks but ask unanimous consent that the order and important job-creating engine of less than 6 months, a $5,600 tax credit for the quorum call be rescinded. the 21st century, the Internet. for hiring a veteran who has been look- This marks a stunning reversal from ing for a job for more than 6 months, The PRESIDING OFFICER. Without the hands-off approach to the Internet and a $9,600 tax credit for hiring vet- objection, it is so ordered. that Federal policymakers have taken erans with service-connected disabil- for more than a decade. During the last ities who have been looking for a job f 20 years, the Internet has grown and more than 6 months. These incentives flourished without burdensome regula- will help veterans secure employment CONCLUSION OF MORNING tions imposed by Washington. Powered and they should be passed imme- BUSINESS by the strength of free market forces, diately. the Internet has been an open platform These veterans deserve our help as The PRESIDING OFFICER. Morning for innovation, spurring business devel- they transition from their military business is closed. opment and much needed job creation.

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00011 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.011 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7240 CONGRESSIONAL RECORD — SENATE November 9, 2011 The former Democratic FCC Chair- nesses, it is the government’s responsi- congressional direction. Rather than man, William Kennard, stated in 1999 bility to clearly show, one, there is an back down, however, the FCC doubled ‘‘[t}he fertile fields of innovation actual problem that needs to be ad- down. The current FCC order tries an across the communications sector and dressed. That should be foremost. even more expansive interpretation of around the country are blooming be- With the FCC taking such a large de- the law than was used in the Comcast cause from the get-go we have taken a parture from the agency’s previous case. FCC Commissioners inexplicably deregulatory, competitive approach to light-touch approach, one might think claimed the agency can impose heavy- our communications structure—espe- the FCC could point to a long list of handed Internet regulation under sec- cially the Internet.’’ net neutrality violations and problems tion 706 of the Telecommunications The present FCC is reversing that that need to be fixed. That is not the Act. This was a section of the law that policy that has been successful beyond case here. In a 134-page regulatory was intended to remove regulatory bar- our expectations. Broadband Internet order, the FCC spent only three para- riers to broadband investment, not to networks have powered the informa- graphs attempting to catalog alleged raise them. tion and communications industry, instances of misconduct. If the FCC’s legal theory is left un- which in 2009 accounted for more than Within those three short paragraphs, challenged, the FCC will have nearly 3.5 million high-paying jobs and about every alleged problem was addressed unbounded authority to regulate al- $1 trillion in economic activity. under the FCC’s existing rule or, if not, most anything on the Internet. It is This industry has been an engine for it was fixed by the provider under pres- Congress’s role, not the FCC’s to deter- major economic growth even during sure from the public or the competitive mine the proper policy framework for these difficult times. Yet the FCC’s marketplace, where it should be fixed. the Internet. Over time, and aided by rules could severely jeopardize this in- As former FCC Commissioner Meredith the current administration, regulators dustry’s vast potential. Net neutrality Baker noted in her statement dis- throughout the government have is intended to limit how Internet serv- senting from the FCC’s net neutrality gradually tried to seize increasing con- ice providers develop and operate their order, the Commission was ‘‘unable to trol over so many facets of American broadband networks. The net neu- identify a single ongoing practice of a life. It is time for the Senate to stop trality order allows the FCC to tell single broadband provider that it finds this overreach. We write the laws of broadband providers what kind of busi- problematic upon which to base this this country, not unelected bureau- ness practices are reasonable and un- action.’’ To put it simply, the FCC has crats. That is why we are here today. reasonable. The FCC, however, did not issued new rules without even dem- Thanks to Senate majority leader bother to clearly define in its rules onstrating that intervention is actu- HARRY REID, former Senator Don Nick- what the agency considers to be rea- ally necessary. les, and the late Senator Ted Stevens, sonable. Despite protests to the contrary, one of the tools Congress has to stop This point is vital to understand. these net neutrality regulations on rogue agencies is the Congressional Re- With such an arbitrary and yet poorly broadband providers clearly establish view Act. The Congressional Review defined standard, companies will be the FCC as the Internet’s gatekeeper, a Act allows Congress to review a rule forced to err on the side of caution. role for which the government is not before it takes effect and even to nul- Rather than risk possible punishment suited. Innovation does not work on a lify that rule if Congress finds it is in- from the FCC, many companies will government timetable nor does it appropriate, or if it overreaches, or if simply decide: Maybe we will not in- thrive through a maze of roadblocks. Congress itself hasn’t delegated this vest right now in new technologies. Ironically, supporters of net neu- power to an agency. Maybe it is too risky to develop and de- trality insist that providers are the As Senators REID, NICKLES, and STE- ploy new services. At the very least, it ones who may become gatekeepers of VENS said at the time of this bill’s pas- will delay such investment. the Internet. These people say the sage, ‘‘Congressional review gives the This kind of regulatory uncertainty openness of the Internet is far too im- public the opportunity to call the at- will be crippling for companies and portant to be left unprotected by the tention of politically accountable, particularly small providers. We have government. This is a false premise. In elected officials to concerns about new heard exactly that from a small wire- fact, the Internet has been an open agency rules. If these concerns are suf- less Internet provider in Wyoming platform for innovation since its incep- ficiently serious, Congress can stop the called LARIAT. This is a provider that tion, and it has not needed any sort of rule.’’ is serving remote areas and trying to net neutrality rules from bureaucrats We believe the concern about the expand to other unserved years. at the FCC. FCC’s net neutrality rules is suffi- LARIAT testified before Congress To make matters worse, Congress has ciently serious to warrant the consid- that these FCC regulations are already never given the FCC the explicit au- eration of Senate Joint Resolution 6, harming its ability to attract inves- thority to regulate how Internet pro- the disapproval resolution Senator tors, grow its business, hire more viders manage their networks. That is MCCONNELL and I introduced to nullify workers, and serve new customers. why the new rules represent an unprec- the FCC’s net neutrality order under Forcing broadband companies to ask edented power grab by the unelected the Congressional Review Act. The the government for permission before Commissioners at the FCC. In fact, House has already passed its version of moving forward is exactly what we current law states: ‘‘It is the policy of the resolution, and we need only a ma- should try to avoid when reviving our the United States . . . to preserve the jority of Senators to send this bill to economy. vibrant and competitive free market the President’s desk. Even a net neu- This FCC regime will lead to stagna- that presently exists for the Internet trality supporter, Senator OLYMPIA tion in Internet innovation in the and other interactive computer serv- SNOWE, who has authored net neu- United States, placing us at a dis- ices, unfettered by Federal or State trality legislation, is a cosponsor and advantage against overseas competi- regulation.’’ supporter of our resolution today. tors who are not burdened with similar That is the law today. The FCC has While Senator SNOWE and I don’t rules. Moveover, Internet providers lost this fight already in the courts. agree on the need for a net neutrality will end up spending resources on law- Last year, the DC Circuit Court of Ap- law, we are in complete agreement— yers and lobbyists in order to comply peals struck down the FCC’s 2008 at- and she stated it beautifully—that with the FCC’s rules, rather than in- tempt to impose net neutrality in the Congress, not the FCC, should deter- vesting those dollars in innovation. Comcast v. FCC case. The court ruled mine what the proper regulatory Small companies will find it even that the FCC was acting beyond the framework is for the Internet. more expensive to navigate Wash- reach of its congressionally provided If the Senate does not strike down ington, DC. This certainly will not help authority and cautioned that regula- these regulations soon, they will go consumers, particularly in rural areas, tions should be imposed only with ex- into effect on November 20, further and will only increase the costs they plicit congressional direction. jeopardizing jobs in this fragile econ- have to bear. Before any new regula- This was validation that regulatory omy. I guess you could say that it will tions are forced on American busi- agencies cannot make policy without allow more lawyers to be hired, but

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00012 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.012 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7241 more innovators? Probably not. That is Mr. ROCKEFELLER. Mr. President, I Third, the rules aim to ensure that not the mix we need to assure that our rise today to oppose the Senate Joint the Internet remains a level playing economy will get back on track in this Resolution 6, which was brought under field by prohibiting fixed broadband country. the Congressional Review Act—about providers from unreasonably discrimi- Studies indicate that net neutrality which I wish to talk—to disapprove the nating in transmitting lawful network rules could significantly affect our FCC’s open Internet rules, such as they traffic—which they have done. economy. If net neutrality reduces cap- are. Finally, the rules are meant to apply ital investment in broadband infra- Americans want the Internet to be with the complementary principle of structure by even 10 percent, it could free and open to them. They want to go reasonable network management, cost our country hundreds of thousands where they want to go, see what they which provides broadband providers the of jobs over the next decade. want to see, do what they want to do flexibility to address congestion or We must preserve the openness of the on the Internet. They don’t want to traffic that is harmful to the network. Internet as a platform for innovation have somebody blocking them or to These are principles that I believe ev- and economic growth. We must keep have gatekeepers. They want it to be a eryone can support. I see nothing the competitive advantage that we nice, open forum for them. They care wrong with them. The word ‘‘reason- have in this country for innovation. about the Internet. Everyone uses it. able’’ somehow doesn’t scare me. The last thing we ought to be doing is They want to be able to develop new Maybe it should, but it doesn’t. putting restrictions on our providers, businesses, and they want to read and I ask my colleagues, what is wrong when many countries that are also ad- watch video. They want to reach out to with transparency? Why would we want vanced in this area are not doing the friends and family and community. to promote Internet blocking or dis- same thing. So when we go to global And they want to do it online. They crimination? Why would we want to competitiveness, we are putting our want to do all of these things on the have some people on the fast lane and companies at a disadvantage. Why Internet—without having to ask per- some on the slow lane, depending on would we do that? mission from their broadband provider. whether you paid your Internet pro- We must stop the job-killing regu- The FCC has promulgated balanced vider enough money? What is unrea- latory interference by our government rules that let Americans do all of these sonable about reasonable network today in so many areas, and we can things, and keep the Internet open and management? start right here, right now, by keeping keep the Internet free. I believe that the FCC’s effort, along the Internet free, voting for this reso- Let us be clear from the outset. No with ongoing oversight and enforce- lution of disapproval, and saying to the matter how S.J. Res. 6 is dressed up in ment, will protect consumers, and I be- regulatory bodies in this town: Con- language that suggests it will promote lieve it will provide companies with gress must authorize a delegation of openness and freedom, it will not do the certainty they need to make in- authority for your agency to pass that. The resolution is misguided. It vestments in our growing digital econ- rules, and especially when Congress is will add uncertainty, in fact, into the omy. in disagreement with those rules. economy, and it will hinder small busi- While many champions of the open This is a key policy decision for our nesses dependent upon fair broadband Internet would have preferred a strict- body. We need to step up to the respon- access, where otherwise they might be er decision—and I am one of them; I sibility that Congress has. Our Con- put in a slower lane. They want to be myself have real reservations about stitution divided the powers between in a fast lane. They want to be able to treating wireless broadband differently three branches of government. If Con- compete with other parts of the coun- from wired broadband—I think the gress doesn’t stand up for its one-third try. This resolution will, in fact, under- FCC’s decision was nevertheless a of the powers of this government and mine innovation. It will hamper invest- meaningful step forward. In a moment, lets unelected bureaucrats run over our ment in digital commerce. It will im- I will talk about other people who feel prerogatives, we will become a weaker peril the openness and freedom that the same. branch, and our government will be- has been the hallmark of the Internet Supporters of the joint resolution fail come weaker for it. We need to have from the very start. to acknowledge that the FCC’s open three equal branches of government, The FCC’s rules were the product of Internet rules have received over- and that means each branch must ful- very hard work, consensus, and com- whelming support from broadband fill its responsibilities under the Con- promise. The agency had extensive Internet service providers, consumers, stitution. Congress must delegate its input from stakeholders from all quar- and public groups, labor unions, as well authority explicitly for a rule to be ters. They opened up and said send in as high-tech companies. made. That is the way the Constitution your comments. In fact, they had writ- AT&T CEO Randall Stephenson stat- intended for Congress to fulfill its job ten input from more than 100,000 com- ed earlier this year that while he want- as the elected representatives of the menters. About 90 percent of those fil- ed ‘‘no regulation,’’ the FCC’s open people of our country. ing supported the adoption of open Internet order ‘‘ended at a place where The House has passed this resolution. Internet rules. On top of this, the rules we have a line of sight and we know I hope the Senate will tomorrow. I are based on longstanding and widely and can commit ourselves to invest- hope the people will speak and say that accepted open Internet principles, ments.’’ even if you disagree on the basic issue which were first articulated during the Time-Warner Cable said at the time of net neutrality, it is not the right of second Bush administration. of the order’s release that the rules the FCC to pass sweeping regulations These rules do three basic things. adopted ‘‘appear to reflect a workable that will affect the economy of this First, they impose a transparency obli- balance between protecting consumers’ country without explicit authority gation on providers of broadband Inter- interests and preserving incentives for from Congress, which it does not have. net service. This means that all investment and innovation by Mr. President, I ask my colleagues to broadband providers are required to broadband Internet service providers.’’ come to the floor if they want to speak publicly disclose to consumers accu- Numerous analysts from major in- on this resolution. There is 4 hours, rate information regarding the net- vestment banks have found that the equally divided, and that time is now work management practices. open Internet order removes what they running. I say to my Republican col- Second, the rules prohibit fixed call regulatory overhang and allows leagues that we have quite a list of broadband providers from blocking telecom and cable companies to focus those who want to speak. They must lawful content, application, services, on investment. know that the time will run out in and devices. This means consumers and Google, Facebook, Twitter, eBay, about 31⁄2 hours now. I ask them to con- innovators will continue to have the Skype, and other leaders in innovation tact me if they wish to speak. right to send and receive lawful Inter- all urged the FCC to adopt ‘‘common- I yield the floor. net traffic, with mobile broadband sense baseline rules . . . critical to en- The PRESIDING OFFICER (Mr. service providers subjected to a more suring that the Internet remains a key SCHUMER). The senior Senator from the limited set of prohibitions. I will speak engine of economic growth, innovation, great State of West Virginia. about that in a moment. and global competitiveness.’’

VerDate Mar 15 2010 00:53 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00013 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.014 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7242 CONGRESSIONAL RECORD — SENATE November 9, 2011 More than 150 organizations wrote The OIC believes that such a vote would Among other things, the new disclosure Congress to oppose this joint resolu- hurt consumers and innovation, and respect- rules will make it easier for low-income fam- tion. I hate reading lists, but I am fully asks the Senate to reject the CRA ilies to choose an Internet provider at a price measure. they can afford. going to do it anyway: the Communica- Sincerely, In addition to new policies, the rules tions Workers of America, the AFL– THE OPEN INTERNET COALITION. adopted last year reestablished a number of CIO, the NAACP, the U.S. Conference non-controversial common-sense FCC poli- of Catholic Bishops, the American Li- OCTOBER 12, 2011. cies, including protecting the right of an brary Association, the American Asso- Majority Leader HARRY REID, Internet user to access any lawful Internet ciation of Independent Music, the Minority Leader MITCH MCCONNELL content. If the Review Act is used to void the Leadership Conference on Civil and U.S. Senate, FCC regulations, not only would it restrict the FCC’s ability to protect Internet users in Human Rights, the League of United Washington, DC. Chairman JAY ROCKEFELLER, the future, it would also dismantle even Latin American Citizens, the National Ranking Member KAY BAILEY HUTCHISON, these limited and essential protections put Organization for Women, and Technet. U.S. Senate Committee on Commerce, Science in place during the Bush Administration. There are a lot of folks at Technet who and Transportation, Washington, DC. We hope that the House and Senate will re- have a lot at stake. I have their letters DEAR MAJORITY LEADER REID, MINORITY ject the use of the Congressional Review Act here. LEADER MCCONNELL, CHAIRMAN ROCKE- to overturn these important rules. We hope I ask unanimous consent that these FELLER, AND RANKING MEMBER HUTCHISON: that Congress will instead work to preserve We, as leaders and communicators rep- openness online, and to ensure that all peo- letters be printed in the RECORD. ple, particularly people of faith, are able to There being no objection, the mate- resenting many diverse religious traditions, write to share our strong support for Inter- take full advantage of the power of the Inter- rial was ordered to be printed in the net freedom. Specifically, we support the net. RECORD, as follows: Federal Communication Commission’s Open Sincerely, OCTOBER 14, 2011. Internet rules and urge you to oppose S. J. Andrea Cano, Chair, United Church of DEAR MAJORITY LEADER REID, MINORITY Res 6 which would repeal these rules using Christ, OC Inc.; Rev. Robert Chase, LEADER MCCONNELL, CHAIRMAN ROCKEFELLER the Congressional Review Act. These rules Founding Director, Intersections Inter- AND RANKING MEMBER HUTCHISON: We write are important for underserved communities national; Barb Powell, United Church to urge your support for the FCC’s open as well as the faith community. of Christ, Publishing, Identity, and Internet rule and rejection of S.J. Res 6, a The Internet is a critical tool for non- Communication; Rev. Dr. Ken Brooker resolution of disapproval under the Congres- profits and other institutions nationwide. In Langston, Director, Disciples Justice sional Review Act. Americans have come to particular, institutional networks such as Action Network; Reverend Peter B. depend on reliable open Internet access for health care providers and institutions of Panagore, First Radio Parish Church of their daily life and work. Yet without a light higher learning, as well as social service America; Gradye Parsons, Stated touch FCC rule, households, students and agencies and community organizations use Clerk, Office of the General Assembly small businesses lack any recourse at all if the Internet for communication, organizing, Presbyterian Church (USA); Dr. Riess their Internet Access Provider (IAP) decides and learning. The Internet is an increasingly Potterveld, President, Pacific School to prioritize its own content and affiliated important tool that helps needy persons ac- of Religion; The Rev. Eric C. Shafer, services or block other end user choices. cess the education and services they need to Senior Vice President, Odyssey Net- The FCC’s December 2010 decision was improve their lives and the lives of their works; Dr. Sayyid M. Syeed, National families. In these difficult economic times, adopted after several lengthy proceedings Director, Office for Interfaith & Com- the Internet is an essential tool for those and unprecedented public input. The result is munity Alliances, Islamic Society of a very modest rule designed to preserve open seeking to get back on their feet. Not only are the open Internet rules im- North America; Jerry Van Marter, Di- non-discriminatory Internet access. In def- portant for those the faith community rector, Presbyterian News Service, erence to the wishes of IAPs, the FCC com- serves, it is important for the religious com- Presbyterian Church, Chair, Commu- pletely avoided Title II common carrier reg- munity itself. As the National Council of nications Commission, National Coun- ulation. The rule allows flexible network Churches Communications Commission re- cil of Churches; Linda Walter, Director, management and does nothing to inhibit cently stated, Internet communication is The AMS Agency, Seventh-day Advent- broadband network deployment, while it af- ‘‘vital’’ to faith groups to enable them to ist Church. firmatively facilitates innovation and in- communicate with members, share religious vestment in new online services, content, ap- and spiritual teachings, promote activities THE LEADERSHIP CONFERENCE plications and access devices by providing on-line, and engage people—particularly ON CIVIL AND HUMAN RIGHTS, some minimal assurance they will not be younger persons—in their ministries. As the Washington, DC, October 12, 2011. blocked arbitrarily. resolution noted, ‘‘Faith communities have Hon. HARRY REID, CRA repeal would actually leave the Amer- experienced uneven access to and coverage Majority Leader, U.S. Senate, ican public worse off than with no open by mainstream media, and wish to keep open Washington, DC. Internet rule, as it would also rescind FCC the opportunity to create their own material Hon. MITCH MCCONNELL, authority in this area. Congress has repeat- describing their faith traditions.’’ Without Minority Leader, U.S. Senate, edly entrusted the FCC with a duty to pro- robust open Internet protections, our essen- Washington, DC. tect the public interest in nationwide com- tial connection to our members and the gen- Hon. JOHN D. ROCKEFELLER, IV, munications by wire and radio. No other eral public could be impaired. Communica- Chairman, U.S. Senate, agency can help your constituents with tion is an essential element of religious free- Washington, DC. Internet access trouble if FCC authority is dom: we fear the day might come when reli- Hon. KAY BAILEY HUTCHINSON, terminated. gious individuals and institutions would Ranking Member, U.S. Senate, Sincerely, have no recourse if we were prevented from Washington, DC ED BLACK, sharing a forceful message or a call to activ- DEAR MAJORITY LEADER REID, MINORITY President & CEO, CCIA. ism using the Internet. LEADER MCCONNELL, CHAIRMAN ROCKE- REY RAMSEY, We are particularly concerned about the FELLER, AND RANKING MEMBER HUTCHINSON: President & CEO, Tech Net. way Congress has chosen to address this on behalf of The Leadership Conference on issue. Members of Congress have already ini- Civil and Human Rights, a coalition charged OPEN INTERNET COALITION, tiated action under the Congressional Re- by its diverse membership of more than 200 Washington, DC, November 4, 2011. view Act to eliminate all open Internet pro- national organizations to promote and pro- Hon. JOHN D. ROCKEFELLER IV, tections. Even for legislators who might not tect the rights of all persons in the United Chairman, Senate Committee on Commerce, agree with every aspect of the FCC’s new States, along with the undersigned organiza- Science, and Transportation, Washington, rules, the proposed use of the Review Act is tions, we write to urge you to oppose the use DC. extreme. of the Congressional Review Act (CRA), S. J. Hon. KAY BAILEY HUTCHISON, After many months of public hearings and Res. 6, to repeal the Federal Communication Ranking Member, Senate Committee on Com- reviewing thousands of public comments, the Commission’s (FCC) Open Internet rules. merce, Science, and Transportation, Wash- FCC last December sought to strike a bal- Though the organizations represented by ington, DC. ance between the needs of Internet providers this letter have taken different views on the DEAR CHAIRMAN ROCKEFELLER AND RANKING and the general public. The agency’s com- Open Internet rules, we are united in the MEMBER HUTCHISON: The Open Internet Coa- promise rules were designed to guard against view that congressional plans to overturn lition (‘‘OIC’’) respectfully submits this let- the most severe forms of abuse. The result these rules using the CRA would cause sig- ter to indicate our opposition to a vote under was a set of regulations that competing par- nificant harm, particularly to the constitu- the Congressional Review Act to vacate the ties in the industry and public sector were encies represented by our organizations, and Federal Communications Commission’s Open able to support. A number of the new rules divert attention from other critical media Internet Order, which would preclude any fu- are critical to ensuring that all citizens can and telecommunications issues that are so ture action in this area by the Commission. gain access to high speed Internet. vital to our nation’s economic and civic life.

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The CRA, 5 U.S.C. 801–808, is a blunt instru- ASSOCIATION OF RESEARCH LIBRARIES, FCC’s decision falls short in some other ment. The terms of the Act require complete October 14, 2011. areas, particularly with regard to mobile repeal of the agency action in question in a Hon. HARRY REID, wireless services, the decision appropriately simple ‘‘yes or no’’ vote. For this reason, use Majority Leader, U.S. Senate. requires ISPs to keep the Internet open to of the CRA would mean that critical long-es- Hon. MITCH MCCONNELL, educational and library content. For these reasons, ALA, ARL and tablished protections will be repealed along Minority Leader, U.S. Senate. EDUCAUSE believe that the FCC’s decision with newer proposals adopted for the first Hon. JAY ROCKEFELLER, should be upheld and it should not be over- time in December. Use of the CRA would Chairman, U.S. Senate Committee on Commerce, Science and Transportation. turned by Congressional action. While the eliminate the FCC’s authority to enforce its Hon. KAY BAILEY HUTCHISON, FCC’s decision can certainly be improved, we reasonable Open Internet principles, includ- Ranking Member, U.S. Senate Committee on strongly believe that the FCC should be able ing those that prevent private blocking of Commerce, Science and Transportation. to oversee the broadband marketplace and constitutionally-protected speech. DEAR LEADER REID, LEADER MCCONNELL, respond to any efforts by ISPs to skew the A free and open Internet is of particular CHAIRMAN ROCKEFELLER, AND RANKING MEM- Internet in favor of any particular party or concern to civil rights organizations because BER HUTCHISON: The American Library Asso- user. The Internet functions best when it is open to everyone, without interference by the Internet is a critical platform for free ciation (ALA), the Association of Research the broadband provider. We urge you to up- speech. It is also a tool for organizing mem- Libraries (ARL), and EDUCAUSE respect- fully ask you to oppose S.J. Res. 6 and any hold the FCC’s authority to preserve the bers and for civic engagement; a chance for other legislation to overturn or undermine openness of the Internet and to oppose any online education and advancement which is the ‘‘Net Neutrality’’ decision adopted by proposal to overturn or undermine the FCC’s essential to economic development and job the Federal Communications Commission Net Neutrality decision. creation; a means by which to produce and (FCC) in December 2010. Respectfully Submitted, distribute diverse content; and an oppor- ALA, ARL and EDUCAUSE believe that LYNNE BRADLEY, tunity for small entrepreneurs from diverse preserving an open Internet is essential to American Library As- communities who might not otherwise have our nation’s educational achievement, free- sociation (ALA). a chance to compete in the marketplace. dom of speech, and economic growth. The GREGORY A. JACKSON, EDUCAUSE. As you know, the FCC adopted Open Inter- Internet has become a cornerstone of the PRUDENCE S. ADLER, net rules in December after an extensive and educational, academic, and computer serv- ices that libraries and higher education offer Association of Re- detailed process. As a result, the Commission to students, teachers, and the general public. search Libraries for the first time adopted a set of enforce- Libraries and higher education institutions (ARL). able rules that many diverse parties agree are prolific generators of Internet content. will protect against severe abuse, promote We rely upon the public availability of open, AMERICAN ASSOCIATION free expression on the Internet, and encour- affordable Internet access for school home- OF INDEPENDENT MUSIC, age job-creating investment in broadband work assignments, distance learning classes, New York, NY, November 4, 2011. networks. These rules include a number of e-government services, licensed databases, Hon. JAY ROCKEFELLER, non-controversial commonsense policies, job-training videos, medical and scientific Chairman, Committee on Commerce, Science & such as the right of a consumer to reach any research, and many other essential services. Transportation, Hart Senate Office Build- lawful content via the Internet while pre- It is crucial that the Internet remains a ing, Washington, DC. serving network providers’ ability to manage ‘‘network neutral’’ environment so that li- Hon. KAY BAILEY HUTCHISON, their networks. The rules adopted in Decem- braries and higher education institutions Ranking Member, Committee on Commerce, ber will help get all Americans online: for have the freedom to create and provide inno- Science & Transportation, Russell Senate example, consumers with low incomes will vative information services that are central Office Building. Washington, DC. be better able to select a service at a price to the growth and development of our demo- Hon. HARRY REID, they can afford under the Commission’s new cratic culture. Majority Leader, Hart Senate Office Building, Washington, DC. transparency rules. The following data points illustrate why open, non-prioritized Internet access is so Hon. MITCH MCCONNELL, We also urge Congress and the Commission critically important to the public that we Minority Leader, Russell Senate Office Build- to move forward on other critical media and serve: ing, Washington, DC. telecommunications policy initiatives. As we a. 80% of college students live off-campus. DEAR SENATORS, The American Association explained to the FCC last fall, we believe it Net neutrality is vitally important so that of Independent Music (A2IM) is a non-profit is critical for the Commission to renew its these students receive the same quality of organization representing a broad coalition focus on expanding broadband adoption access to web-based information as on-cam- of independently owned music labels from a among people of color; closing the digital di- pus students; sector that comprises more than 30 percent vide; extending universal service support to b. 97% of public two-year colleges have on- of the music industry’s U.S. market, nearly broadband services; adopting provisions to line distance education programs; 40 percent of digital sales, and well over 80 c. 99% of public libraries provide patrons protect consumer privacy; and implementing percent of all music released by music labels with access to the Internet at no charge; in in the U.S. A2IM’s label community includes the 21st Century Communications & Video 65% of communities, public libraries are the music companies of all sizes throughout Accessibility Act of 2010. only provider of such access. United States, from Hawaii to Florida and In closing, we strongly urge you to oppose The attachment to this letter provides sev- all across our country, representing musical use of the Congressional Review Act to re- eral specific examples of critical Internet- genres as diverse as our membership. peal the Federal Communications Commis- based applications that our communities Unfortunately, economic reward has not sion’s Open Internet rules. We also hope that have developed to serve students, teachers, always followed critical success due to bar- Congress and the Commission will move for- the elderly, the disabled and other members riers to entry for independents in both pro- ward expeditiously to implement the Na- of the public. As these examples dem- motion and commerce. A2IM members share tional Broadband Plan to expand deployment onstrate, libraries and higher education in- the core conviction that the independent creasingly depend on the open Internet to and adoption of new technologies and high- music community plays a vital role in the fulfill our missions to serve the general pub- speed Internet for all Americans. Should you continued advancement of cultural diversity lic. Without an open and neutral Internet, and innovation in music at home and abroad, require further information or have any there is great risk that prioritized delivery but we need your help. questions regarding this issue, please con- to end users will be available only to con- Of all the technological developments in tact The Leadership Conference Media/Tele- tent, application and service providers who recent history, the Internet represents the communications Task Force Co-Chairs, pay extra fees, which would be an enormous most potent platform for entrepreneurship Cheryl Leanza, at 202–904–2168, Christopher disadvantage to libraries, education, and and expression our community has wit- Calabrese, at 202–715–0839, or Corrine Yu, other non-profit institutions. In short, Inter- nessed. Despite the many unresolved ques- Leadership Conference Managing Policy Di- net Service Providers (ISPs) should allow tions surrounding the protection of intellec- rector, at 202–466–5670. users the same priority of access to edu- tual property online, we remain optimistic Sincerely, cational content as to entertainment and that open Internet structures are our best American Civil Liberties Union; Common other commercial offerings. means through which to do business, reach Cause; Communications Workers of The FCC’s Net Neutrality decision last De- listeners and innovate in the digital realm. America; Disability Rights Education cember was an important step forward. The Independent labels would not fare well & Defense Fund; NAACP; The Leader- decision includes a non-discrimination under any regime that allows Internet traffic ship Conference on Civil and Human standard for wireline Internet services, and to be prioritized based on business arrange- Rights; National Hispanic Media Coali- it limits the opportunities for paid ments between ISPs and the largest cor- tion; National Organization for prioritization. The FCC’s decision also ex- porate entities, as our sector is not capable Women; United Church of Christ, Office plicitly protects the rights of libraries, of competing economically. This is why we of Communication, Inc. schools, and other Internet users. While the have consistently gone on record in favor of

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Access Humboldt; ACLU; AFL–CIO; Alli- cent Order goes far enough to preserve the We believe that Congress has a role to play ance for Community Media; Alliance for Re- dynamics that make the Internet such a in establishing guidelines that preserve a tired Americans; Applied Research Center; unique and promising marketplace for cre- competitive, accessible internet where free Arizona Progress Action; Art is Change; As- ative commerce. We are particularly con- expression and entrepreneurship can con- sociation of Free Community Papers; Asso- cerned about the lack of clarity in the mo- tinue to flourish. We also believe that strip- ciation of Research Libraries; Bold Ne- bile space, as well as the possibility of our ping the FCC’s ability to enforce these core braska; Breakthrough.tv; CCTV Center for sector being priced out of the most desirable principles as proposed in S.J. Res. 6 runs Media and Democracy; Center for Democracy online delivery mechanisms. counter to the values shared by members on and Technology; Center for Media Justice; Nonetheless, it seems shortsighted for Con- both sides of the aisle, as well as prior and Center for Rural Strategies; Center for So- gress to seek to eliminate the FCC’s ability current FCC leadership. Therefore, we cial Inclusion; Coalition of Labor Union to oversee this vital space, as it is an essen- strongly urge against a broad repudiation of Women; Communications Workers of Amer- tial part of a free market driven by enter- the Commission’s Order. ica; Community Media Workshops. prise, ingenuity and competition. We there- Sincerely, Consumer Federation of America; Con- fore urge the United States Senate to forego FRACTURED ATLAS. sumers Union; Democracy for America; Dur- any attempt to stymie the FCC’s authority FUTURE OF MUSIC ham Community Media; Esperanza Peace to preserve the underlying dynamic of the COALITION. and Justice Center; Evanston Community Internet. NATIONAL ALLIANCE FOR Media Center; Free Press; Future of Music; Sincerely, MEDIA ARTS AND Coalition; Global Action Project; Harry Pot- THE AMERICAN ASSOCIATION CULTURE. ter Alliance; Highlander Research & Edu- OF INDEPENDENT MUSIC (A2IM). cation Project; Houston Interfaith Worker OCTOBER 13, 2011. Justice; Institute for Local Self Reliance; FUTURE OF MUSIC COALITION, Hon. HARRY REID, International Brotherhood of Electrical Washington, DC, November 4, 2011. Senate Majority Leader, Hart Senate Office Workers; Keystone Progress; Labor Council Hon. JAY ROCKEFELLER, Building, Washington, DC. for Latin American Advancement; LAMP; Chairman, Committee on Commerce, Science & Hon. MITCH MCCONNELL, Latinos for Internet Freedom; Latino Print Transportation, Hart Senate Office Build- Senate Minority Leader, Russell Senate Office Network; League of United Latin American ing, Washington, DC. Building, Washington, DC. Citizens. Line Break Media; Main Street Project; Hon. KAY BAILEY HUTCHISON, Hon. JOHN D. ROCKEFELLER, Ranking Member, Committee on Commerce, Chairman, Russell Senate Office Building, Media Access Project; Media Mobilizing Science & Transportation, Russell Senate Washington, DC. Project; Mid-Atlantic Community Papers Association; NAACP; National Alliance for Office Building, Washington, DC. Hon. KAY BAILEY HUTCHISON, Media, Art, and Culture; National Consumers Hon. HARRY REID, Ranking Member, Dirksen Senate Office Build- League; National Hispanic Media Coalition; Majority Leader, Hart Senate Office Building, ing, Washington, DC. National Latino Farmers and Ranchers Washington, DC. DEAR MAJORITY LEADER REID, MINORITY Trade Association; National Network for Im- Hon. MITCH MCCONNELL, LEADER MCCONNELL, CHAIRMAN ROCKE- migrant and Refugee Rights; Native Public Minority Leader, Russell Senate Office Build- FELLER, AND RANKING MEMBER HUTCHISON: Media; New America Foundation; Ohio Val- ing, Washington, DC. The below signed organizations support an ley Environmental Coalition; One Wisconsin DEAR SENATORS, Since its inception, the Open Internet and oppose S. J. Res 6, legisla- Now; OnShore Networks; Open Access Con- internet has represented a powerful tool for tion that would repeal the Federal Commu- nication Commission’s (FCC) Open Internet nections; Open Source Democczracy Fund. the exchange of information and ideas. In re- Participatory Culture Foundation; Peoples rules through the Congressional Review Act. cent years, it has also contributed greatly to Press Project; Peoples Production House; Utilizing the Congressional Review Act the emergence of novel platforms for the dis- Philly CAM; Progress Now; Progress Now semination of creative content. It is as mem- would not only eliminate the current FCC Nevada; Progress Ohio; Prometheus Radio bers of the arts community who have come rules, it would eliminate the FCC’s ability to Project; Public Radio Exchange; Reel Grrls; to depend on these structures that we write protect innovation, speech, and commerce on Southwest Organizing Project; Southwest to you today. broadband platforms on behalf of the Amer- Workers Union; The Highlander Research & Creators, in particular, depend on open ican people. Education Center; The Peoples Channel; The The Internet has been and must remain an internet structures to engage in a variety of Praxis Project; The Writers Guild of Amer- open platform. Regardless of political or so- ways, including direct interaction with audi- ica; West UNITY Journalists of Color; cial values, an Open Internet increases op- ences, fans and patrons, as well as collabora- Women In Media & News; Youth Media tion with other artists. From musicians to portunities for all persons and communities, Project. filmmakers to writers to independent labels increases diversity of opinions and thought, to arts and service organizations, today’s and ensures that consumers and entre- Mr. ROCKEFELLER. Mr. President, creative community depends on the internet preneurs alike can engage in and benefit to be sure, there are those who disagree to conduct business and contribute to the from the opportunities afforded by access to with the FCC’s open Internet rules, and rich tapestry that is American culture. the Internet. An Open Internet is also an en- there is an avenue for these com- Today’s creators are taking advantage of gine for economic growth, innovation, and plaints. It is called the judicial system. technologies fostered by the internet to de- job creation. Some are using it. Two companies have liver a diverse array of content to con- The FCC has adopted a framework that the filed lawsuit claiming that the FCC agency believes will preserve the Open Inter- sumers, while creating efficient new ways to went too far. Several public interest ‘‘do for ourselves’’ in terms of infrastructure. net. We wholeheartedly support preservation The access and innovation inspired by the of the FCC’s authority to implement such groups have filed lawsuits claiming web helps us meet the challenges of the 21st rules. This framework was adopted in a pro- that the FCC did not go far enough. It century as we contribute to local economies ceeding in which broadband service pro- is their legal right to go to the courts, and help America compete globally. viders, Internet companies, civil rights and when they choose to do that, they It hasn’t always been so. Traditionally, the groups, labor organizations, and public inter- can do so. media landscape relied heavily on hier- est groups all participated. So let’s think for a minute what a archical chains of ownership and distribu- We urge Congress not to utilize the Con- world would look like without a free tion, controlled by powerful gatekeepers gressional Review Act, given the negative and open Internet. such as large TV and movie studios, commer- consequences of its enactment. Instead, we In a world without a free and open cial radio conglomerates, major labels and so hope that Congress will work to preserve forth. openness online and to move forward expedi- Internet, consumers and entrepreneurs It would be tremendously disadvantageous tiously in implementation of the National would have no transparency as to how to creative entrepreneurship if the internet Broadband Plan. Undertaking such initia- their broadband providers would man- were to become an environment in which in- tives would improve broadband deployment age their network—no ability to make novation and creativity face tremendous bar- and adoption opportunities for all Ameri- informed decisions about their riers to entry due to business arrangements cans, including individuals in typically rural broadband providers. between a select few industry players. and other underserved populations and in In a world without a free and open This is why we support clear, enforceable communities of color too often denied a Internet, there would be nothing to and transparent rules to ensure that com- meaningful opportunity to participate in the prevent their broadband providers from petition and free expression can continue to new economy. flourish online. Although many of us feel For these reasons, we urge you to ensure steering them only their to preferred strongly that the recent FCC Order does not that all your constituents can continue to Web sites and services, therefore lim- go far enough in its protections (particularly benefit from an Open Internet, and we stand iting their choices as consumers.

VerDate Mar 15 2010 04:56 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00016 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.017 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7245 For rural Americans, broadband would have to go through a whole con- seek permission from broadband pro- Internet access has the power to erase gressional legislative process to re- viders to reach new markets and con- distances and allows them to have the insert them into the Public Law, which sumers with innovative products and same access to shopping, educational means many of them would never end services. matters, and employment opportuni- up there. This is a very important point. It ties as those living in urban areas. I also want to address the argument means small businesses can be located That is a time-honored principle of supporters of the joint resolution anywhere in this country, including around here—but not if the Web site that the FCC’s open rules will somehow rural America, and through open they seek to access is blocked by their stifle innovation in the Internet econ- broadband have the opportunity for broadband providers. Consumers, entre- omy. That is just so wrong I don’t their ideas and products and services to preneurs, and small businesses need the know what to say. have a global reach. That is the point certainty they can access lawful Web Over the past 15 years, the open of all of this. sites of their choice when they want, Internet has been the greatest engine As we all know, small businesses period. for the U.S. economy. It leaves every- were responsible for nearly 65 percent In a world without a free and open thing in its dust. It has created more of new jobs over the past 15 years. Far Internet, there would be nothing to than 3 million jobs, as the Senator from preventing investment, the FCC’s stop broadband providers from block- from Texas indicated. The open Inter- open Internet rules will foster small ing access to Web sites that offer prod- net rules will help sustain this growth. businesses because they trust it. They ucts that compete with those of its af- People want to know what the rules of see it, they see what Moody’s is saying filiates. That happens, Mr. President. the road are. They want to know what about it, they see what the Wall Street In a world without a free and open the world is bringing to them. If they investment bankers are saying about Internet, companies could pay Internet decide they do not like what is coming, it, they see it is encouraging invest- providers to guarantee their Web sites they are going to tell you, and they are ment, and they like and trust that. So open more quickly than their competi- not going to invest. Very simple. they take risks they might not other- tors. According to Hamilton Consultants, wise take because they trust. In a world without a free and open the open Internet ecosystem has led to It is not the faceless Federal bureau- Internet, companies could pay Internet the creation of 1.8 million jobs related crat. It is something that is down on providers to make certain their online to applications in e-commerce, as well paper and they understand it. They sales are processed more quickly than as 1.2 million jobs related to infrastruc- have probably seen it and probably their competitors with lower prices. ture. Moreover, investment and inno- commented on it. Maybe some of them Well, that is not the American way. vation have continued to increase since didn’t like it as much as they should This is particularly disturbing in tough the adoption of the FCC’s open Inter- have; maybe some thought it should times like these. net rules—not decrease, as the sup- have been stronger or some thought it In a world without a free and open porters of this resolution will tell us. should have been weaker, but such is Internet, there would be nothing to The facts show that investment in life in America. So, anyway, I think prevent Internet service providers from broadband networks increased in the what they conclude is that what is charging users a premium in order to first half of 2011. In fact, investment in going on is supporting what they are guarantee operation in the ‘‘fast lane.’’ networks that support broadband was doing. If someone is trying to start a small more than 10 percent higher in the first Finally, I want to note when it comes business, struggling to make ends meet half of 2011 than in the first half of 2010. to education and privacy and intellec- and cannot afford to pay the toll, they More of that investment in Internet tual property, global Internet govern- run the risk of being left in the ‘‘slow companies surged in 2011, and this is ance, or network security, the govern- lane’’—that is not good—with inferior after they had sort of adjusted or taken ment has long provided—and nec- Internet service—that is not right—un- into account what they saw coming in essarily so—reasonable rules of the able to compete with larger companies. the way of the rules. There was $2.3 bil- road to make possible consumer pro- That is very wrong. lion worth of investment going into 275 tection, fair trade, and open markets. What if an innovator or a start-up companies in the second quarter, and The FCC’s open Internet rules are no company has the next big idea? With all of them were this Internet type. different. They take, as has been broadband, the next big idea does not That is the most investment in Inter- quoted by many, a light-touch ap- have to come from a suburban garage net companies in a decade. proach—I like that phrase—and keep or from Silicon Valley, it can come Plus, shortly after the framework the playing field fair. They keep the from rural America or from anywhere. was adopted, America’s leading wire- Internet open and free for consumers, A free and open Internet is all that is less providers announced they were ac- for businesses, and for everyone in this required to give that big idea a global celerating their deployment of their country who wants access to broadband reach. advanced fourth generation, or 4G net- Internet. In a world without a free and open works. It seems the open Internet rules So that is why I support the FCC Internet, the ability of the next revolu- are giving broadband providers and en- open Internet rules, and I encourage tionary idea to reach others—to make trepreneurs and investors the certainty my colleagues to vote against the joint it to the greater marketplace—would they need to invest and to create jobs. resolution. be entirely dependent on a handful of Certainty is the key. They are not The PRESIDING OFFICER. The Sen- entrenched broadband gatekeepers and going to invest in what they do not ator from Texas. toll collectors. True. know. We see that in so many other Mrs. HUTCHISON. Mr. President, on I am not totally opposed to the Con- areas. They do not know what is going our side I have Senator WICKER and gressional Review Act, but I have to to happen, so they do not invest. Peo- Senator SHELBY, who have been here say it is an extraordinarily blunt in- ple have all this cash, but they do not waiting, and I would like to give them strument. It means all of the rules have certainty. Here they have cer- 15 minutes from the time on our side. I adopted by the FCC must be over- tainty, they understand that certainty, know there are others here, but these turned at once. This would even mean they understand what is coming, they Senators have been waiting for quite a tossing out commonsense provisions like it, and they are investing like while. about transparency. Do our opponents never before. The PRESIDING OFFICER. Is that 15 know this? It would deny the agency The FCC’s open Internet rules also minutes each or 15 minutes together? the power to protect consumers. Do our protect small businesses. An estimated Mrs. HUTCHISON. Up to 5 minutes opponents know this? What is the sense 20,000 small businesses operate on the for Senator WICKER and up to 10 min- in all of that? I don’t get it. Internet. More than 600,000 Americans utes for Senator SHELBY. There is another part: If they just have part- or full-time businesses on The PRESIDING OFFICER. Is there took these rules out—if S. Res. 6 were eBay alone. I was not aware of that. objection? to pass—they couldn’t come back later The FCC’s open Internet rules mean Mr. KERRY. Mr. President, what and just have the FCC put them in. We small entrepreneurs will not have to would be the order after that?

VerDate Mar 15 2010 01:41 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00017 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.017 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7246 CONGRESSIONAL RECORD — SENATE November 9, 2011 The PRESIDING OFFICER. There is Equally troubling is that the Com- In addition, the number of new busi- no order after that. mission’s order is trying to fix a prob- nesses being launched each year is fall- Mr. KERRY. Mr. President, I ask lem that does not exist. Today’s con- ing. In 2010, it was the lowest it has unanimous consent that I be recog- sumers have greater access to more been since the Bureau of Labor Statis- nized for the time I have—I think it is Internet services than ever before. tics started tracking the number in about 15 minutes—after that. Where is the problem? Businesses have 1994. The PRESIDING OFFICER. Is there invested tens of billions of dollars in The SEC has been slow to address objection? new broadband infrastructure. Internet these problems, even though it has the Without objection, it is so ordered. entrepreneurs continue to offer new authority to do so. The Chairman of The Senator from Mississippi. services to broadband users. There is the SEC has spoken of the need for ac- Mr. WICKER. Mr. President, I rise as no economic justification for this un- tion, but we have not seen tangible re- a cosponsor and strong supporter of precedented intrusion into the market- sults yet. this resolution of disapproval. place. Policy should benefit the public, One year ago, one SEC Commissioner Once again, we are witnessing a gov- remarked: ernment regulation we do not need. and these FCC rules do not. In conclusion, we have seen this My hope is that, as an agency, the Com- There is a reason when we talk about mission will move beyond talking about today’s economy that we talk about movie before, with regulation where regulation is not needed. Again, here small business capital formation and will the cost of government overreach. Un- take concrete steps that actually foster it. we have a regulatory recipe that would necessary regulations put a wet blan- I believe we, the Senate and the produce far-reaching and damaging ef- ket on job creation, and they work American people, can no longer wait fects. The current landscape has al- against getting our economy back on for the SEC to do its job. The time has lowed the Internet to grow exponen- track. This is a perfect example of the come for Congress to take action. Our tially. It is a free market of competi- government standing in the way of economy cannot afford to wait any tion, productivity, and growth. The growth and investment. longer. The Internet and its associated appli- FCC’s regulatory intrusion is com- The first thing I believe we should do cations should be allowed to develop pletely unwarranted. to improve capital formation is to without excessive FCC redtape. The I yield the floor. bring up for consideration several bi- The PRESIDING OFFICER. The sen- Internet owes a great deal of its rapid partisan bills that would implement ior Senator from Alabama. success to innovators and entre- important regulatory reforms. One bill Mr. SHELBY. Mr. President, I wish preneurs who had the freedom to imag- would modernize the SEC’s regulation to associate myself with the remarks ine, to explore, and to create. With the A, which was initially designed to of the Senators from Texas and Mis- FCC acting as a traffic cop, this free- make it easy for small businesses to sissippi and to say that I think a lot of dom will be compromised. access our capital markets. Unfortu- people probably mean well but are The subjective rules of the road, as nately, regulation A is outdated and often misguided when they say we are laid out by the FCC, are a prescription rarely used. for uncertainty within the industry. By going to regulate this sector of the Another set of bills would raise the handing over more power to a govern- economy or we are going to regulate thresholds for reporting so small banks ment agency, net neutrality rules slam that. and small companies are not subject to the brakes on potential investment and The market, as you well know, is the burdensome SEC reporting require- new innovation. The ideas that should driving force in our economy—not just ments. make our Internet faster, more secure, in the United States but worldwide. It These bills would still leave investors and better for consumers fall by the is going to be the market that will de- protected and ensure that public com- wayside. At the end of the day, the cide what we do as far as job creation panies provide meaningful disclosure. American consumer would suffer. The for our people everywhere, and I be- Most important, investors would still broadband marketplace would simply lieve the Internet is an example of, be protected by the SEC’s antifraud offer fewer services, fewer devices, and gosh, let’s don’t overregulate it. Let it rules. These bipartisan bills represent a less content to paying customers. grow, let it do its job, and it will. few steps we can take right now, but The FCC order reads that Internet I would also like to speak about some they are not comprehensive by any providers ‘‘shall not block lawful con- commonsense steps that Congress can means. tent, applications, services or non- take right now to help our struggling Much more needs to be done to make harmful devices, subject to reasonable economy. At a time when job growth is sure registration requirements are tai- network management.’’ It goes on to stagnant, Congress needs to lift the lored to the size and type of businesses. say that providers ‘‘shall not unreason- regulatory burden that is stifling cap- The existing one-size-fits-all approach ably discriminate in transmitting law- ital formation. The Senate has before means that small companies have to ful network traffic over a consumer’s it several bills that would help private bear the same costs that large compa- broadband Internet access service.’’ businesses raise the capital they need nies do when they go public. These in- But the terms ‘‘lawful’’ and ‘‘reason- to grow and to create jobs. equities need to be addressed; it stifles able’’ are not easily defined. Under the This is an issue that should enjoy the job creation. order, what is lawful and what is rea- support of both Republicans and Demo- One would think that we could agree sonable would be determined by crats in the Senate. Access to capital, in the Senate on removing unnecessary unelected bureaucrats. The FCC would as the Presiding Officer well knows, is restrictions on capital formation. Yet rule as a de facto police of the open and what allows entrepreneurs to transfer for the past 3 years, the majority party free Internet. The FCC would be the new ideas into living companies. Novel has dramatically increased government final arbiter of what broadband service products, new services, and, most im- involvement in the economy. They providers can and cannot do. Its judg- portantly, good jobs can be created. have imposed one costly mandate after ments—not the market or the con- Unfortunately, overregulation has another on businesses. They have sumer—would determine how networks made it progressively harder for small crowded out the private sector with would be managed. The FCC is claim- businesses to access capital in this massive government programs, result- ing to have an authority that the country. I will give some statistics. ing in persistently high unemployment American public did not grant it. They are clear. and stagnant economic growth. The hands of the Internet service In the 1990s, an average of 547 initial Basically, I think it is time for a new providers will be tied when the FCC has public offerings took place each year, approach. It is time to revitalize the this kind of power. Without being able compared with an average of just 192 free markets in America. We can begin to run their own networks, service pro- per year after 1999. Small initial public this effort by taking these small steps viders cannot maximize the online ex- offerings now make up only 20 percent to help entrepreneurs find the capital perience for the vast majority of their of the total. In contrast, they made up they need to build their businesses and customers. They are, in essence, pre- 80 percent of the total in the 1990s, to create jobs. vented from doing what they were es- when we were creating so many small I hope my Democratic colleagues will tablished to do. jobs. now do more than talk about creating

VerDate Mar 15 2010 01:41 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00018 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.018 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7247 jobs and that we can work on a bipar- growth and they would diffuse the cre- and the companies that have made the tisan basis on these bills that have bi- ative energy that has driven the Inter- Internet what it is today, civil rights partisan sponsorship to create jobs and net to be what it is today. Because if groups, civil liberties advocates, aca- join us here. we overturn what they are doing today, demics, scholars who have studied and The PRESIDING OFFICER. The Sen- we take the reality of the Internet and testified to the virtues of open net- ator from Massachusetts. we put it in the hands of the gate- works. Let me quote a few of them. Mr. KERRY. Mr. President, this is keepers. John Doerr is somebody whom many one of those times when, on the floor of Everything that goes over the Inter- of us have come to know by virtue of the Senate, we hear a proposal that net today goes either through our tele- his business acumen and the legendary people characterize as one thing, but it phone at home or television or what- venture capitalist efforts he was en- is, in fact, anything but what they are ever, through cable, out of our house or gaged in. He was an early backer of characterizing it as. the airwaves. But if we are not having Amazon, an early backer of Google, What I just heard the good Senator an open architecture on the Internet, Electronic Arts, Netscape, and a num- from Mississippi talking about: We then the people who control those ac- ber of other innovators whose creations don’t want to slam the brakes on devel- cess points can start discriminating have driven the growth of the Internet. opment, he said. We don’t want to have about who gets access at what speed; Here is what he says: the SEC intrusion. and if they control who gets access at Maintaining an open Internet is critical to So they are trying to say to the what speed and begin to charge more our economy’s growth . . . and this effort is American people that they want to lib- for that, you begin to have a profound a pragmatic balance of innovation, economic erate the Internet, when, in fact, what impact on the ability of any business growth, and crucial investment in the Inter- they want to do is imprison the Inter- to develop and a profound impact on net. net within the hands of the most pow- the access that consumers have come Ray Ramsey, the president and CEO erful communications entities today to to anticipate with respect to the Inter- of TechNet, a national bipartisan net- act as the gatekeepers who will control net. work of more than 400 technology sec- the ability of the Internet to do the Think about this. We are talking tor CEOs, said of the vote at the Com- very kind of development that brought about neutrality. We are standing here mission in favor of the network neu- us here. What they are talking about, trying to defend neutrality. The other trality rules: their concept, this CRA challenge is side is coming in here trying to create The vote by the FCC is a pragmatic rec- that wolf in sheep’s clothing. It is that a new structure where the process will ognition of the need for codifying principles simple. So I think colleagues need to be gamed once again in favor of the for protecting nondiscrimination and open- ness for the Internet. step back and think about how the most powerful. This is part of the Internet got to be what it is today whole debate that is going on in Amer- Charlie Ergen, the president and CEO when it was developed. ica today, about the 99 percent who feel of Dish Network, said: I know the Senator from West Vir- like everything is gamed against them The Commission’s order is a solid frame- ginia, the chairman of the committee, and the system is geared by the people work for protecting the open Internet. The new rules give companies, including Dish and I were members of the Commerce who have the money and the people Committee back in the 1990s when we Network, the framework to invest capital who have the power who get what they and manpower in Internet-related tech- wrote the Telecommunications Act of want. That is what this debate is nologies without fear that our investment 1996, and we thought we were pretty about. will be undermined by carriers’ discrimina- clever and we wrote a good act. Within The network neutrality rules the tory practices. 6 months of writing that act, it was ob- FCC has promulgated are based on the Others supporting the order include solete because all our conversation was principles that everybody should sup- the Communications Workers of Amer- about telephony at a moment where, port of promoting transparency of ica, civil rights organizations, con- because of the Internet, the entire dis- broadband service operations, pre- sumer advocates. In sum, those who cussion was about to become about venting the blocking of legal content support the rules include those who data transmission and the movement and Web sites, and prohibiting dis- fund the development of Internet com- of information over the Internet. That crimination of individuals, applica- panies, those who use the Internet, and has never been fully revisited. But the tions, and other Web sites. That is advocates who favor open discourse and reason we have a Google today, the what we are for. This CRA is an effort debate. I think we in the Senate ought reason we have had this incredible de- to undo the FCC’s ability to protect to listen to the people who created it, velopment of Internet retail business, those principles. the people who developed it, the people of all these Web sites, of Facebook, and Establishing those principles has ac- who are taking it to the next genera- so many more is because of the open tually brought about certainty and tion, and the people who use it. architecture of access to that Inter- predictability to the broadband econ- The Los Angeles Times editorialized net—which, I would remind everybody omy. It ensures that anyone can create on Sunday in favor of the rules of the in America, was created by government a Web site, anyone can deliver an FCC, saying: money in government research. It Internet-enabled service with the cer- The agency’s net neutrality rules are a came out of an effort to develop a com- tainty that is going to be made avail- reasonable attempt to protect the innovative munications system for our country in able to everybody else on the Internet. nature of the Internet and should not be the case of nuclear war. So we created, Innovators now know they are not overturned. through DARPA, ARPA, research that going to have to go ask a big telephone Despite all of what I just said, some produced this communications net- company: Hey, Verizon, hey AT&T, have made what I have called the ‘‘wolf work. Then the private sector saw the will you guys please let us have access in sheep’s clothing’’ argument, the opportunity, and a whole bunch of very so we can go do this thing? Oh, well, false argument that network neu- creative people rushed in and made the maybe we will do that, but we are trality rules regulate the Internet— Internet what it is today. going to charge you in order to do that. that they actually regulate it—and Overturning the rules, as the CRA They completely destroy the openness this is an opportunity to keep it open proposes to do, would put the very open that is provided, this ability for any- and impose a condition on innovators. architecture that has created this ex- body in America to sit in their home or I don’t know how asking innovators traordinary agent of communication, school or somewhere and come up with to get permission from somebody else of commerce, and family communica- an idea and innovate. That freedom to to be able to go do what they have al- tion, and all these things it has done innovate, the freedom to innovate is ready done since the 1990s is going to for business, it would put it at risk and what has made the Internet the plat- improve things. The truth is, network discourage investment in companies at form for economic and social develop- neutrality rules govern not the Inter- the edge of the Internet that could be ment it is today, and a vote for the net but they govern the behavior of the the next Google or the next Amazon. CRA is a vote to stifle that. firms that own and operate the gate- Overturning these rules would actually On the side of those favoring the ways to the Internet. That is what is at hurt our competitiveness and economic FCC’s action are venture capitalists stake. When the airwaves that carry

VerDate Mar 15 2010 01:41 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00019 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.023 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7248 CONGRESSIONAL RECORD — SENATE November 9, 2011 the information that connects us to ev- Under title VII, the FCC is mandated time Kevin Martin, adopted a unani- eryone else in the Internet is in the to take immediate action to remove mous policy statement on net neu- hands of a few and subject to their con- barriers to infrastructure investment trality. trol, we are in trouble. and promote competition in the tele- When the White House issued a state- The rules we are debating today state communications market if advanced ment indicating the President would that those gateways should not be used telecommunications is not being de- veto this resolution of disapproval if it to favor some voices over others or ployed in a reasonable and timely fash- came to his desk, I thought my col- some firms over others on the Internet. ion. That can be determined on a case- leagues would be sensible and would That is what is at stake. That is what by-case basis, and we obviously can recognize that this was not only unnec- this fight is about. The truth is, if the continue as we have since the early essary and foolhardy, but it was also a rules are overturned, every innovator 1990s to do this. So there is no good pointless exercise and would be just a on the Internet will be exposed to the reason for this debate to fall along giant waste of everyone’s time. Alas, risk that, before they innovate, before party lines. that is not the case and here we are they create a new product, they are I hope it will not be just Democrats spending valuable time on two resolu- going to have to go to somebody and who vote to preserve this rule. I hope tions of disapproval when we should be say: Mother, may I do this? Then there we will maintain an open Internet turning to legislation that will get our will be a price attached to it. technology and support the open Inter- economy back up and running again. Beyond the false argument that net- net order. I hope the votes we take tomorrow work neutrality constitutes regulation The ACTING PRESIDENT pro tem- will send a strong message that we of the Internet rather than anti- pore. The Senator from Texas. need to stop these political stunts and competitive behavior, opponents to the Mrs. HUTCHISON. Madam President, work together to create jobs, jobs, and rule predicted the FCC action was I know the Senator from Minnesota more jobs. going to have negative economic reper- has been waiting to speak, and I cer- But let’s get to the substance of why cussions. Yet even in an economy that tainly will yield to him. I would like to I am standing here before you today. I has struggled, that prediction has prov- be recognized after he speaks to answer am here today to talk about net neu- en to be wrong. some of the concerns that were raised trality. Net neutrality is a simple con- In the time since the FCC voted on by the Senator from Massachusetts. cept. It is the idea that all content and the rule to preserve the open Internet, The ACTING PRESIDENT pro tem- applications on the Internet should be investment in networks that support pore. Without objection, it is so or- treated the same, regardless of who wired and wireless broadbrand grew by dered. owns the content or the Web site. This more than 10 percent compared to the The Senator from Minnesota. is not a radical idea. It certainly is not same period the year before. Venture Mr. FRANKEN. Madam President, I a new one. We may not realize it, but capital investments in Internet-spe- appreciate the courtesy of the Senator net neutrality is the foundation and cific companies surged, with $2.3 bil- from Texas. My understanding is that core of how the Internet operates every day and how it has always operated. lion going into 275 companies in the Senator MURKOWSKI from Alaska is on When scientists and engineers were second quarter of 2011. It may well be her way down. I am scheduled to sit in creating the basic architecture of the the chair at 12, and I don’t want to step that 2011 is going to be the biggest year Internet, they decided they needed to on the opportunity of the Senator from for tech IPOs in more than 10 years. establish some basic rules of the road Alaska to speak. That seems to indicate strong investor for Internet traffic. One of the funda- The ACTING PRESIDENT pro tem- confidence in the companies that rely mental design principles of the Inter- pore. The Senator is recognized. on the open Internet already exists, net was that all data should be treated Mr. FRANKEN. Madam President, I and we should not disrupt that. equally, regardless of what was being rise today to urge my colleagues to Having lost the argument that net- sent or who was sending it. That is net vote against the motion to proceed to work neutrality hurts innovation or neutrality. It is the same principle we the joint resolution of disapproval of the economy, they therefore want to rely on every day when we use the Senator HUTCHISON, which would repeal create a new argument; that is, the Internet, and it is the same principle the FCC’s net neutrality rules. FCC acted outside its legal authority our phone companies must adhere to As many of you know, I have repeat- in protecting the free flow of commu- when they connect our phone calls. nication on the Internet. edly said net neutrality is the free They did not discriminate based on A court, the right place for that deci- speech issue of our time. I still believe what we say or whom we call, and the sion to be made, is going to make that that is the case, and I am here to state founders of the Internet thought the decision. But, again, the argument ac- why we need to do everything we can same should be true about data trav- tually challenges common sense. It to stop this partisan resolution in its eling across networks. Everything and challenges the basic understanding of tracks. everyone should be treated the same. reasonableness. To argue that the FCC, But before I get into the reasons we This principle of nondiscrimination the agency that Congress created in should oppose this resolution, I think is baked into the DNA of the Internet. order to regulate communications by it is important to step back and re- This is not radical or new. This is wire and radio, somehow has no juris- member what the American people ex- about having a platform that is free diction in this very space is to argue pect of us. I do not need to tell anyone and open to all, regardless of whether that communications over the Internet in this body that the approval rating of one is a big corporation or a single in- are not, in fact, conducted over a wire Congress is at an all-time low. Why is dividual and regardless of whether one or over the airwaves. It is completely that? I think it has something to do pays a lot of money to speed up how lacking in any foundation in common with the fact that we are using our ex- fast their content gets to their cus- sense and certainly in the law. tremely limited, valuable time to de- tomers. Net neutrality is what we all The law we created grants the FCC bate partisan proposals like this one experience today when we log on to our the authority in the Telecommuni- rather than working together to create computers, and it is what we have al- cations Act to ‘‘make such rules and jobs, stimulate our economy, and get ways experienced since the very begin- regulations, and issue such orders, not Americans back to work. ning of the Internet. inconsistent with this Act, as may be When this resolution of disapproval I think it is important to focus on necessary for its functions.’’ passed the House back in April, I hoped that point for a minute because our op- That is the power we gave to them. that would be the end of it. I hoped my ponents are telling us something quite Under title II, title III, title VI of that colleagues would recognize we should different—and they are wrong. Net neu- act, it encourages the FCC to protect let agencies do their jobs and not em- trality is not about a government take- the public interest and encourage just ploy an arcane procedure to erase a over of the Internet, and it is not about and reasonable rates through competi- rule the FCC started thinking about in changing anything. Net neutrality and tion. That is precisely what net neu- 2004 under Republican chairman Mi- the rules the FCC passed are about trality achieves. It is precisely what we chael Powell, and again in 2005 when a keeping the Internet the way it is achieve under the rules of the FCC. different Republican chairman, this today and the way it has always been.

VerDate Mar 15 2010 01:41 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00020 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.025 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7249 We take for granted that we can ac- priority access or to block Facebook 2011 than in the same period last year. cess Google’s search engine as easily as altogether. Blockbuster could have Venture capital firms poured $2.3 bil- we can access Yahoo or Bing or that paid AT&T to slow down or completely lion into Internet-specific companies in Netflix videos download as easily as block streaming of Netflix videos. the second quarter of 2011. I think the videos our friends uploaded onto Barnes & Noble could have paid these numbers speak for themselves. YouTube last night. We expect that e- Verizon to block access to ama- They tell a story of surging investor mails arrive at their destinations at zon.com. Imagine a world where the confidence following the FCC’s vote on the same speed regardless of who is corporation with the biggest check- these rules and not the doomsday por- sending them, and we take for granted book can control what we see and how trayal we will hear from our oppo- that the Web site for our local pizzeria fast we access content on the Internet. nents. loads as fast as the Web site for Fortunately, that is not the world we Protecting innovation in this coun- Dominos or Pizza Hut. That is one of live in today and thanks to the FCC try is particularly important given the the reasons I care so very much about that is not the world we are headed for. state of the telecom industry today. I this issue. The FCC’s rules will ensure that no don’t need to tell you that telecom cor- This is not just about freedom of matter how much money or power they porations have grown larger and fewer. speech, it is also about protecting have, a young kid working in her par- We know, in part, because we have seen small businesses and entrepreneurs of ents’ basement in Duluth can our cable, Internet, and telephone bills all sizes. In my mind, net neutrality is outinnovate the biggest corporation rising and rising. What else have we and always has been about protecting simply because she has the best idea. seen? Customer service that has gone the next Bill Gates and the next Mark This is exactly why top Silicon Valley straight out the window. When we are Zuckerberg. Facebook and Microsoft venture capital and angel investment angry we wasted another day waiting do not need our help today, but the 20- companies support these rules. These for a Comcast repairman to come and year-old whiz kid working in his par- companies are the ones funding the install a cable Internet line in our ents’ garage to develop the app or soft- next Mark Zuckerberg, Larry Page or house or we have been put on hold by ware or Web site to revolutionize our Sergey Brin so he can get his product Verizon for the fifth time in a single lives does need net neutrality, and so off the ground. They are the ones fun- call and we finally decide to switch does the small bookstore or local hard- neling millions and millions of dollars companies, we may realize we don’t ware store that wants their Web site to to entrepreneurs, which is why I think have another choice. load just as fast as Amazon or Home we should listen to them. The CEOs of Seventy percent of households in this Depot. eBay, Netflix, Amazon, Facebook, and country have one or two choices for I have been on the floor of the Senate YouTube have joined in a letter sup- basic broadband Internet service. The talking about the beginnings of porting the FCC’s rules. They say: majority, 60 percent, of the households YouTube because it is such a powerful ‘‘Common sense baseline rules are crit- only have one choice for high-speed example of why we need to protect net ical to ensuring that the Internet re- broadband. neutrality. When YouTube started, it mains a key engine of economic This is appalling for many reasons. It was headquartered in a tiny space over growth, innovation and global competi- affects prices, quality of service, and a pizzeria and a Japanese restaurant in tiveness.’’ choices for customers, but it is ulti- San Francisco, CA. At the time, Google I think we should listen to them and mately why we need net neutrality. We had a competing product, Google companies such as Microsoft, Yahoo, need to make sure companies play by Video, that was widely seen as inferior. Google, IBM, and Qualcomm. These the rules. As control of the Internet If Google had been able to pay AT&T companies also support the FCC’s rules has shifted into the hands of a smaller or Verizon or Time Warner large because they recognize they could not and smaller number of corporations, we amounts of money to block YouTube or have grown to be the tremendously need to make sure those companies are to make Google Video’s Web site faster successful companies they are today able to dictate the speed of traffic than YouTube’s site, guess what would without a free and open Internet, and based on how much a content provider have happened. YouTube would have that is what we are asking for. That is can pay or prioritize their own content failed. But, instead, thanks to net neu- all we are asking for. over other companies’ content. trality, YouTube became the gold When our opponents get up and tell Of course, as I said before, there is standard for video on the Internet. us these rules will stifle innovation and nothing wrong with maximizing share- YouTube was able to sell its business halt growth, I want everyone to think holder profit since that is what cor- to Google for $1.6 billion just 2 years about what they are saying. I want us porations are obligated to do. Min- after its start. I love that story be- to ask ourselves: Why would so many nesota is home to many great corpora- cause it is a testament to the power of of the leading technology companies tions, including 3M, General Mills, and the Internet to turn people with great over the last two decades support what Medtronic. These companies create ideas into overnight successes, and it the FCC is doing if they think it will thousands of jobs and produce fantastic happened because we had net neu- hurt innovation? It doesn’t make any products. Other corporations should trality. sense because it isn’t true. Net neu- not be able to prevent others from The story of the Internet is a story trality and the FCC rules will protect competing. Competition is what net about the triumph of the little guy the innovators and entrepreneurs who neutrality is all about. It is about en- over the big, slow-moving corporation. have made the Internet what is it suring that the next breakthrough The past 20 years are littered with today and what it will be tomorrow. product has the opportunity to reach tales of entrepreneurs starting with Don’t take my word for it. Listen to consumers through a free and open and next to nothing and revolutionizing the the experts from Bank of America, equal Internet. world as we know it. From YouTube’s Goldman Sachs, Citibank, Wells Fargo, In addition to protecting innovation humble beginnings over a pizzeria to Merrill Lynch, and Raymond James. and small businesses in this country, Facebook’s infamous start in a dorm These companies have all stated they net neutrality is also about speech. room in Cambridge, the Web-based do not believe the FCC’s current rules The Internet is not just where we go to products we use every day are a great will hurt investment. Citibank said the shop for local products and services; result of a great idea and the drive to FCC’s rules were ‘‘balanced,’’ and Gold- the Internet is where we go to find po- make that great idea a reality. man Sachs said they were ‘‘a light litical campaign information and read Here is what we will not hear from touch’’ and created ‘‘a framework with local news stories. The Internet is what our opponents: Facebook and YouTube a lot of wiggle room.’’ helped fuel the Arab Spring, in large and countless other Web-based prod- What is even more telling is that in- part because it has become the soapbox ucts might not have existed today if it vestment in networks that support of the 21st century. Organizers and ad- were not for net neutrality. Without wired and wireless Internet has jumped vocates are no longer stapling posters net neutrality, Myspace or since the announcement of the FCC’s to bulletin boards to get their message Friendster—remember them—could rules. In fact, investment is more than out there. They are now posting their have partnered with Comcast to gain 10 percent higher in the first half of message on Twitter and Facebook. The

VerDate Mar 15 2010 01:41 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00021 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.026 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7250 CONGRESSIONAL RECORD — SENATE November 9, 2011 Internet is not just responsible for an is no evidence that prior open Internet Americans, entrepreneurs, and small upheaval in how campaigns and advo- obligations have discouraged invest- businesses want a world where the fu- cacy occur; it is also responsible for an ment,’’ and that ‘‘open Internet rules ture Twitters, eBays, and Amazons of upheaval in the print media world be- will increase incentives to invest in the world can grow and thrive, without cause the Internet is also the printing broadband infrastructure.’’ interference from big mega conglom- press and library of the 21st century. I recognize that a couple companies erates. This is why it is so important we are challenging the FCC’s rules in If passed, this resolution will hurt make sure the corporations providing court, and they have every right to do consumers, stifle innovation, and cre- Internet service play by the rules and so. But this resolution of disapproval ate uncertainty in one of America’s are not able to profit by speeding up or amounts to little more than political most innovative and productive sec- slowing down our access to certain gamesmanship from fringe organiza- tors. We are at a pivotal moment, and news Web sites or other places we go to tions. I think it is important to know I hope my colleagues will recognize access information. We would not want that not a single large telecommuni- this and join me in voting down this the Libyan Government to shut down cation company supports this resolu- resolution of disapproval. access to Facebook in the middle of tion of disapproval. They are not wast- I thank the Senator from Texas for protests in that country for the same ing their time with an arcane process, allowing me to speak during this time, reasons we do not want a corporation and we should not either. That is not and I thank the Presiding Officer for controlling what information and Web to say Congress cannot and should not holding the chair while I have been sites we are able to access in order to have a discussion about the merits of speaking. benefit their bottom line. net neutrality. We can and we should. I yield the floor. You know I have been a proponent of Frankly, I have been disappointed by The ACTING PRESIDENT pro tem- net neutrality for a long time. You the quantity of misinformation that pore. The Senator from Texas. have heard me over and over on how has been such a large portion of this Mrs. HUTCHISON. Madam President, net neutrality is about keeping the debate in the past. I yield up to 15 minutes to the Senator Internet the way it is. But the truth is, The rhetoric I heard during the from Alaska. the FCC rules, while a step in the right House debate last April was dis- The ACTING PRESIDENT pro tem- direction, are very conservative. I wish appointing. It is not the type of debate pore. The Senator from Alaska. the FCC had done more, but the FCC Americans deserve. I encourage a frank Ms. MURKOWSKI. Madam President, wanted to reach a consensus, and they and in-depth discussion on net neu- there is a lot of discussion, of course, made a concerted effort to address trality. I hope one day soon we will about jobs in this country—where they many concerns of telecommunication consider making a statutory change to are, and what we can do to help incent companies, large and small, when they the FCC’s authority that will clarify them. I had the opportunity while I drafted these rules. For my opponents that we want the FCC to make sure the was in my State last week to host to now claim the FCC ignored public Internet stays open and free. That will three different townhalls that focused opinion or failed to consider the im- put the issue to rest for good. It is, on the state of our Nation’s economy pact these rules would have on busi- frankly, the process we should be rely- and what is happening with jobs and nesses is not true. ing on. By forcing an up-or-down vote job creation. As I asked Alaskans for First, I think we could all stand a bit through the Congressional Review Act, their input, what I heard consistently of history on the bipartisan nature of we are short-circuiting the normal leg- from community to community was: this rule. Net neutrality is something islative process and ignoring the FCC’s We can allow for job creation that is that two Republican chairmen of the tremendous work on this issue. meaningful. We can allow for opportu- FCC, Michael Powell and Kevin Martin, This resolution of disapproval is a nities here in our State and across the championed in 2004 and 2005. Chairman procedural stunt that wastes limited country. But the first thing you can do Powell first articulated a set of net time which should be used to address is to get the government out of the neutrality principles and Chairman the real problems Americans face every way. That was probably my biggest Martin, 1 year later, achieved unani- day. At the end of the day, the prob- takeaway out of the townhalls with mous Commission endorsement of the lems of Americans are why we are here. Alaskans: Get the government out of FCC’s open Internet policy statement. I love hearing from Minnesotans, and I our way so we can move forward as In 2006, 11 House Republicans voted in got a great e-mail the other day. The small business owners and operators, favor of net neutrality on the floor. letter was from a group of five self-pro- as those who are looking to advance The Gun Owners of America, the Chris- claimed ‘‘highly-credentialed computer jobs in resource development. Move the tian Coalition, and the Catholic geeks,’’ including a professor, a startup government back, and we can make Bishops joined with the ACLU, founder, an ex ‘‘Google-er’’ and a ‘‘non- some things happen. moveon.org and leading civil rights ex-IBMer.’’ In their e-mail they wrote: I think one of the key ways we can groups to advocate for the same prin- The free market will drive innovation in create real jobs is by moving the Fed- ciples for openness and freedom on the the Internet, but careful regulation is needed eral Government out of the way of the Internet. to preserve the freedom of the markets from private sector. Yet this administration This debate started 7 years ago, and coalitions of companies that will seek to re- is doing exactly the opposite. Our econ- only after reviewing more than 100,000 duce competition. omy struggles to grow and many Amer- public comments and holding 6 public They noted: icans, of course, are out of work, but workshops did the Commission finally History promises that the leading compa- what we are seeing out of the White issue a rule. To claim this was pre- nies will work together to create a monopoly House is this effort that essentially mature, rushed or not carefully consid- that they can control so they can make more buries job creators under a mountain of ered is just plain wrong. I also think it money and . . . disrupt innovation. paperwork and regulations. Businesses is completely inaccurate for my oppo- I am glad they and thousands of Min- waste hours and productivity on check- nents to claim the Commission never nesotans have taken the time to write ing the right boxes and making sure analyzed the costs and benefits to this and call to tell me how much pre- they have filled out the right form in rule. serving net neutrality means to them. the right way, rather than creating In fact, there is an entire section of These highly credentialed computer new opportunities for employees. Far the rule entitled ‘‘The Benefits of Pro- geeks are right: The free market will too often, our small businesses are tecting the Internet’s Openness Exceed drive Internet innovation as long as being judged by how well they keep the Costs.’’ I urge my colleagues to that market is truly free and open— their safety records rather than the ac- read this section of the Commission’s free from corporate control and open to tual safety records themselves: Did you order. It covers four pages. It contains all content providers equally. check the right box? Did you fill out over 25 lengthy, detailed, analytical These constituents and millions of the right form? If you didn’t, we are footnotes. It is clear the Commission Americans don’t want Congress en- going to fine and penalize you. But is considered the costs and benefits of gaged in political sparring matches de- the focus on making sure they have a acting, and they concluded that ‘‘there signed to appease a few vocal critics. strong and sound safety record?

VerDate Mar 15 2010 01:41 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00022 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.028 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7251 Many of the regulations—and, unfor- comply with costly regulations, in ef- go far enough—the EPA should be sent tunately far too many coming from the fect, that overreach. back to the drawing board to learn EPA—unnecessarily raise the cost of Let’s first discuss very briefly Sen- more, understand more about the po- energy and other vital goods and serv- ator PAUL’s resolution of disapproval tential reliability impact, and then ices. I, as the ranking member on the regarding the Environmental Protec- should amend the substantive require- Energy Committee, have spent a lot of tion Agency’s cross-State air pollution ments of the cross-State pollution rule time and a lot of focus on what we are rule. I have seen it referred to as the so that those required to comply can doing in this country to help reduce acronym CSAPR or ‘‘zapper,’’ but be- comply. If EPA had looked carefully at our energy costs. Unfortunately, far cause neither one of those sounds like that time-reliability issue in the first too often we are seeing increased costs anything we can relate to, I will refer place, there probably wouldn’t be rea- to our families and to our businesses to it as the cross-State pollution rule. son for the delay, but they acted in because of the regulations that come at This rule should not go forward at this haste, and haste makes waste. them. While we all support responsible time for a number of reasons, not the I wish to speak quickly to Senator environmental regulation—I want EPA least of which is its potential impact HUTCHISON’s resolution of disapproval to do its job—we also want to protect on electric reliability. Independent regarding the FCC net neutrality rule. other vital national interests such as grid operators and the independent pro- The rule put into place by the FCC in affordable and reliable energy and a fessionals whom we count on to assess 2010 circumvents Congress. It assumes strong economy. electric reliability have expressed con- an authority that this body never con- Remember too that unreliable or un- cerns about subjecting generators of sented to. We cannot allow the execu- duly expensive energy has broad nega- electricity to the rule, especially on tive branch to go down this road. We tive impacts on all aspects—public the current timetable they are dealing just should not allow it. No provision health—all aspects of our day. When I with. The EPA simply needs to take of any statute explicitly gives the FCC hear from Alaska’s business owners, another look at those impacts and the authority to impose these sweeping they say two things. I told my col- what this rule will do to electricity rules on the Internet. In fact, section leagues what the first one was, which costs. 230 of the Communications Act makes is get government out of the way, and There have been a number of inde- it the policy of the United States ‘‘to let us get to work. Business owners pendent studies that have pointed to preserve the vibrant and competitive across the country agree—there was a the impact of EPA’s rules generally, free market that presently exists for Gallup poll last month—small business including the cross-State pollution rule the Internet and other interactive com- owners indicated that complying with and what that impact would be on ex- puter services, unfettered by Federal or government regulations is the most isting electric generation capacity. State regulation.’’ The Internet, we important problem they face today. The predictions differ on magnitude would all agree—I heard the comments The No. 1 issue on the minds of small but project the retirement of as much of the Senator from Minnesota—has business owners is the fact that com- as 8 percent of the Nation’s installed been a huge boon for small businesses plying with government regulations is electric generating capacity. Again, I and jobs throughout our country. We burying them. What we hear from busi- will grant you, there is a range of dif- recognize that. We want to ensure it nesses is that they need the regulatory ference here, but potentially as much continues in that way. agencies to follow the rule of law and as 8 percent of our country’s installed To quote FCC Commissioner strike a proper balance between the generating capacity could be brought McDowell from a Wall Street Journal many important national interests our offline. That is significant. I have op-ed: laws protect. asked for a reliability analysis. We Net-neutrality sounds nice, but the web is When it comes to regulation, in my have gone back and forth in terms of working fine now. The new rules will inhibit opinion, this administration has gone getting that assessment. There will be investment, deter innovation and create a further—they have pushed past that a technical conference at the end of the billable-hours bonanza for lawyers. rule of law in striking that proper bal- month that hopefully will lead to a So unless the administration is try- ance. What we are seeing is a level of better understanding, but the long and ing to create jobs for lawyers, I don’t overreach, which I think is unprece- the short of it is right now, we know find any justification to expand the dented, by the agencies reaching out that we don’t know exactly how much government’s reach to regulate the and expanding their jurisdiction, if you could be impacted by this rule and oth- Internet as the FCC proposes. Once will, and setting policy as opposed to ers. again, what we are seeing is an agency implementing the laws that have been More specifically, the rules generally stepping in to regulate in an area passed. and the cross-State pollution rule where the laws simply did not con- The resolutions of disapproval we alone could lead to more intense re- template. will have before us for a vote tomor- gional impact. Texas, for example, For all of these reasons, and because row—Senator PAUL’s resolution on the wasn’t even included in the proposed the Federal Government needs to stop cross-State air pollution and Senator rule but, as a consequence of the final overburdening our country with costly HUTCHISON’s resolution of disapproval rule, could see some very significant regulations at a time when we can as it relates to the Internet—are both powerplant retirements and hence po- least afford it, I support the resolution incredibly important for the issues tentially significant adverse impact on of disapproval from Senator HUTCHISON they raise but even more so speaking reliability. The Midwest, according to as well as the resolution of disapproval to what we are seeing right now with the grid operator there, could also see from Senator PAUL. agency overreach. As the Chair may re- retirements of electric capacity with I yield the floor. call, last year I led an effort on this attendant challenges for keeping the The PRESIDING OFFICER (Mr. floor to push back against the EPA in lights on. FRANKEN.) The Senator from Oregon. an area where the EPA was, for all in- In addition to the reliability impact, Mr. WYDEN. Mr. President, soon the tents and purposes, setting policy when there is also going to be a cost impact. Senate will vote on the Hutchison reso- it came to greenhouse gas emissions in The cross-State pollution rule is the lution that, as the Presiding Officer this country. I strongly and firmly be- first of a number of pending rules to go said very eloquently, would overturn lieve the role of the agencies is to im- final and the EPA has made some the decision of the Federal Commu- plement the laws we have passed, not major changes between that proposed nications Commission on what has to set policy. So I share the concerns rule and the final rule. The agency has come to be known as net neutrality. Senator HUTCHISON and Senator PAUL even proposed significant technical ad- The bottom line for me is straight- have raised with the two rules that are justments as recently as last month, forward. A vote for the Hutchison reso- at issue today. They are utilizing a even though the rule is slated to go lution will enable a handful of special tool under the Congressional Review final by the beginning of this next interests to occupy the Internet. These Act which allows us as a Congress to year. elites will then have the power to step in when Federal agencies go over- Putting aside the merits of the cor- crowd out the voices for change and board with trying to make businesses rections—and I understand they don’t the ideas of the future. The Internet

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00023 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.029 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7252 CONGRESSIONAL RECORD — SENATE November 9, 2011 would become a glidepath for a rel- dustry, and the Internet overturned committee, it does such important atively small number of people to gain that kind of thinking because it is the work. We saw in some of those first enormously rather than an opportunity equalizer, it is the democratizer. hearings on the Internet—we started for all Americans to prosper. It just seems to me that when we looking at taxes and regulation and li- I think some of the ideas that have open our morning newspaper day after ability and the Communications De- been offered up with respect to the day and see that the hope of the coun- cency Act—we saw how small busi- Hutchison resolution just defy the try is in innovation, in startups, in new nesses that really could operate only in facts. For example, we had some dis- ideas—it is not just in Silicon Valley, a relatively small area for years and cussion about section 230 of the Com- it is all over the country and all over years suddenly, after they paid their munications Decency Act. I wrote that the world—the last thing we want to do Internet access charges, could go wher- section. It was a key development, in here in our country is adopt rules that ever they want, when they want, how my view, in the growth of the Internet would retard that development. And they want, and they were equal to the because it gave us a chance to deal my view is that the power of the Inter- most powerful groups and voices in the with smut and some of the junk fami- net—the network—is best utilized country. That is their opportunity. lies have been so upset with without when content can move freely through That is their chance to get their brand squelching the potential for the net. It it, and that is whether it is free from all over the world. enabled content sharers to grow, ever taxes, from liability, and certainly free We ought to make sure we take no since we struck that thoughtful ap- from the kind of discrimination that action that is going to make it harder proach, rather than just go to a censor- would be allowed if the net neutrality for small entrepreneurs to exchange ship regime. I have heard that some- rules were overturned. their goods and services far beyond how net neutrality would undo that Again, I touched on section 230 of the their communities. We ought to be particular provision. Nothing could be Communications Decency Act and why making judgments that allow them to further from the truth. Net neutrality that was so important to the growth of get into every nook and cranny of the is exactly about what I sought to do in the net and why I think net neutrality world with the American brand. section 230 of the Communications De- is consistent with that. It is the same I hope my colleagues will reject this cency Act, which was to make sure with respect to some other legislation resolution. I believe the Internet has that all voices could flourish—not just in which I have been heavily involved. thrived precisely because of the prin- the voices of a few but all voices could I had the privilege of being one of the ciples of net neutrality. It has contrib- flourish. coauthors of the Internet Tax Freedom uted to the American economy and to If anybody wants to talk a bit more bill. What that was all about was try- job creation because consumers ulti- about section 230 in the Communica- ing to protect the Internet from dis- mately get to see and get what they tions Decency Act, I am happy to have crimination—not all taxes altogether want as quickly as they want it. that discussion, but as the author of but discrimination. That, too, is a fun- It is going to be an important vote. I that provision, it is something I and a damental principle of the net neu- heard the Presiding Officer say that lot of other people who have worked in trality rules, is trying to make sure this was something of an issue for this field have felt was essential to the the net is not going to be singled out geeks, and from time to time, people growth of the Internet, and we share by a handful of special interests who have said I am one of those. But I will that view just as we believe that, as could, in effect, devise what amounts tell the Presiding Officer, I think ulti- the Presiding Officer does, net neu- to their own lanes on the Internet and mately the net is not about geeks, it is trality is critical to the growth of the force everybody else to pay for it. about democracy. This is the great Internet in the years ahead because the So despite what may even be the in- democratizer. This is the trampoline fundamental principles that underlie terests of some of these powerful inter- that provides opportunities to people both section 230 and net neutrality are est groups—and I know they are all without power and clout. the same. saying now that they have no intent to I want to say to colleagues, particu- The debate about the Federal Com- discriminate against content over their larly those who have mentioned sec- munication Commission’s decision goes networks. History shows that they tion 230 of the Communications De- right to the heart of what the Internet cave every time when shareholders cency Act, as the author of that par- is all about. It has always been a plat- come and say: Look, you have to take ticular provision—and Senator ROCKE- form where all the actors are equal, this step to generate a profit. I think FELLER remembers this huge outcry where everybody has that opportunity, the Internet is too important to leave about smut. We were all concerned as the Presiding Officer suggested, at those kinds of decisions vulnerable to about smut at that time. And we said: the American dream. It is a place what is inevitably going to be the cry There is a choice. We can either do, where, whether it is one dissenting from shareholders and others to maxi- with respect to this debate, what voice screaming out for democratic mize profits. makes sense for the future, and that is change or one brilliant idea that for- One last point, if I might. I see other empower families and parents to get ever changes the way that people and colleagues waiting to speak. I think these filters so the Internet can grow society organize, everyone has that op- the Internet and the economy in this and we can fight smut in a practical portunity. country that is driven by the Internet way, or we can do a lot of damage and I chair the Senate Finance Sub- represent perhaps our greatest com- come up with some sort of censorship committee on International Trade. I parative advantage. I touched on the regime. think just one example of what we Internet being the shipping lane of the As colleagues remember, essentially have seen is the Internet is going to be 21st century. You know, what I want us both approaches were included in the the shipping lane of the 21st century. to do is enhance the American way, en- bill, and the approach that mandated This is the way societies are going to hance American values, and use the censorship was struck down. Freedom organize. This is the way people are Internet to promote those values, fa- won. The principles of net neutrality going to come together. This is the cilitate speech, and expand the mar- won in that first big battle fighting way business is going to be conducted. ketplace. smut 15 years ago. If we were to undo Basically, net neutrality protects The reality is that the American the decisions of the Federal Commu- everybody’s access to that shipping brand is something very special, very nications Commission and move back lane. It is not just going to be a place special all over the world. The fact is, to the days when you could talk about for the old-world business model. You we have small businesses, and we heard discriminating, you know, against the bet the old-world business models are from them in hearings. I know the dis- Internet, I think it would be a step threatened by net neutrality. I under- tinguished chairman of the Commerce against all the progress we have made stand that. I understand they are Committee is here, Senator ROCKE- in the last 15 years with respect to threatened by it. They have always FELLER, and others. Hardly a day goes oversight and regulation and taxes. been able to count on big, powerful, by that I don’t wish I was back being a This is an important vote, col- and well-connected interests and orga- member of the Senate Commerce Com- leagues. When you read the morning nizations to help them to dominate in- mittee because it is such an important newspaper and you see that it is the

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00024 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.035 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7253 entrepreneurs and the startups and the rule. I support Senator HUTCHISON in iPad or computer—will be in the hands innovators who are providing the path her resolution because it will keep the of Washington bureaucrats. forward in a very difficult economy, I Internet free and open. Engineers and entrepreneurs will not think you will see that the policies we Republicans and Democrats agree. be able to give us the Internet we want, have laid out for the last 15 years, Earlier this year, the House of Rep- at a price we want. whether it is the Communications De- resentatives passed a similar resolu- Former FCC Commissioner Baker cency Act, whether it is other legisla- tion and it had bipartisan support. also said: tion—Chairman ROCKEFELLER remem- Net neutrality is very real. The time By replacing market forces and techno- bers when we wrote the digital signa- to act is now. We will be voting in the logical solutions with bureaucratic over- tures law in the Commerce Com- next day or so, and the reason we need sight, we may see an Internet future not mittee—these votes, these laws have to act now is that the rules of having quite as bright as we need, with less invest- all become law because they essen- more bureaucratic government control ment, less innovation and more congestion. tially were built on the very same prin- go into effect in just a few weeks—No- No American wants that, but that is ciples of net neutrality, and that is vember 20, 2011. what this government is giving to the freedom for all and a democratic Inter- It does seem Congress is being dis- American people. To me, this means re- net to provide opportunity to all Amer- regarded. Congress has never delegated cent Internet service innovations such icans and not just the elites, not just a authority to the FCC to regulate in the as 3G and 4G wireless speeds and new handful of special interests. past. fiber networks now become riskier in- The Communications Act of 1996 had I commend Chairman ROCKEFELLER vestments. a goal, which was to ‘‘promote com- and Senator FRANKEN for their good Less investment means every Ameri- petition and reduce regulations.’’ In work. can’s ability to access the Internet he 1996, Bill Clinton was President. This is I often agree with Senator or she wants may be affected. Less in- what it said—the Communications Act HUTCHISON. This is not one of those op- vestment means fewer jobs. of 1996: The goal, to ‘‘promote competi- portunities. Four months ago, President Obama tion and reduce regulation.’’ I hope my colleagues, when we have realized he had a regulation problem Instead, we have unelected, unac- this vote on the extraordinarily impor- with independent agencies such as the countable bureaucrats, who are ignor- tant resolution involving net neu- FCC. He issued an executive order ask- ing Congress and voting for regulation trality, will vote against the Hutchison ing independent agencies to review bur- of the Internet. densome redtape. Instead of reviewing resolution. Let’s look at the overall economy. redtape, they have rolled out even I yield the floor. Right now, we have 14 million Ameri- more of it. The Presidential review has The PRESIDING OFFICER. The Sen- cans who are out of work. The number fallen woefully short. ator from Texas. again this month is 9 percent unem- Mrs. HUTCHISON. Mr. President, The President asked independent ployment in this country. The adminis- how much time remains on our side? agencies to produce a plan to reduce tration is now making it a priority—a The PRESIDING OFFICER. There is regulations within 120 days. Well, 120 priority—to regulate another sector of 79 minutes 14 seconds. days was yesterday. So the 120 days our economy over jobs. have come and gone, and what we have Mrs. HUTCHISON. I yield up to 10 The FCC has opened the door for received once again from this Presi- minutes to the Senator from Wyoming. Washington bureaucrats to take over The PRESIDING OFFICER. The Sen- dent is more rhetoric and little by way one-sixth of our economy. They ought ator from Wyoming. of results. to be focusing on creating jobs, making Mr. BARRASSO. Mr. President, I If there was ever an example of an it easier and cheaper for the private come to the floor today to support Sen- independent agency rule that needs to sector to create jobs. But between ator HUTCHISON and to talk about this be put against the President’s rhetoric, health care, banking, and now tech- role that is being played now by the it is this net neutrality rule. nology, this administration is taking Federal Communications Commission Net neutrality picks winners and los- over our economy sector by sector and in terms of regulating the Internet for ers. It threatens smaller and rural pro- making it more expensive and harder the very first time. viders. for the private sector to create jobs. I oppose having these bureaucrats The FCC’s actions threaten innova- Brett Glass of LARIAT, a wireless regulating the Internet. I support the tion and investment in America. Regu- Internet service provider in Wyoming, resolution of disapproval that is now lations are the biggest burden being warned the FCC about the effects on on the Senate floor. faced by small businesses in this coun- smaller providers. He said the redtape In the 2008 Presidential campaign, try today. If you don’t believe me, just will hurt his ‘‘ability to deploy new then-Candidate Obama made it very ask them. The polling of small business service to currently underserved and clear that he was for empowering owners has said it is regulations com- unserved areas.’’ Washington’s bureaucracy through He warns that many broadband pro- ing out of Washington that are their more redtape. The President was not viders are small businesses that are biggest burden today. looking to make Washington more effi- Technology pioneer and Apple co- serving rural communities. Mr. Glass cient, in my mind, or more effective, founder Steve Jobs warned President wrote: but to make Washington bigger, to cen- Obama about Washington redtape. The imposition of regulations that would tralize power in Washington. One of his There is a new biography out about drive up costs or hamper innovation would campaign promises was a new regula- further deter future outside investment in him by Walter Isaacson. He said this: our company and others like it. tion called net neutrality. It appears to [Jobs] described [to Obama] how easy it me that the President then appointed was to build a factory in China, and said that So here we are. Americans have made one of his school friends and basketball it was almost impossible to do these days in it very clear that they oppose Wash- buddies to be Chairman of the FCC, America, largely because of regulations and ington worsening the Web. Over 60 per- possibly with this in mind. unnecessary costs. cent of voters oppose Washington put- So here we are in 2011, and it seems This rule we are looking at transfers ting its hands on the Internet. to me that Congress is now being asked the future of the Internet out of the This regulation we are debating is a to make a decision. I want Congress— hands of the American people, and it classic example of Washington trying I am asking Congress and my col- makes government the gatekeeper of to fix something that is not broken. leagues to reverse the course of the bu- Internet services. Ninety-three percent of Americans reaucracy. Former FCC Commissioner Meredith are satisfied with their broadband serv- The administration did not even Baker said this: ice. Ninety-one percent of Americans deem this rule to be what they call sig- The rules will give government, for the are satisfied with their broadband nificant. first time, a substantive role in how the speed. The Internet is working remark- A significant rule is one that has an Internet will be operated and managed. ably well. impact on the economy of at least $100 This means the future of Internet There is a fundamental disconnect million. I believe this is a significant technology—whether on a smartphone, with those in Washington who seek a

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00025 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.036 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7254 CONGRESSIONAL RECORD — SENATE November 9, 2011 more powerful bureaucracy and those with computers and tablets and explo- rupt what has become one of America’s at home in the 50 States of our Union sion of smartphones and mobile devices proudest entrepreneurial and industrial who are seeking a stronger economy. and the increased job creation have all achievements in our history. The warnings are real in Wyoming, occurred without the FCC’s open Inter- I have heard proponents say this reg- my State, and all across this country. net order. ulation will preserve the open Internet Congress must step in where the bu- So why does the government want to as it exists today. But it is my humble reaucrats in Washington have over- start regulating now? Is it because the opinion this is shortsighted. stepped. Senator HUTCHISON’s resolu- Internet endangers public health or en- Personally, I don’t want to continue tion of disapproval should be supported vironment? Clearly not. Yet the pro- using the Internet of today. I want the on both sides of the aisle. ponents of Internet regulation claim Internet of tomorrow. I want the de- I yield the floor. the freedom and growth of the Internet vices and applications I use today to The PRESIDING OFFICER. The Sen- are in jeopardy. Quite frankly, in my soon be obsolete and out of date be- ator from Florida is recognized. opinion, that is ridiculous. cause the industry has continued to Mr. RUBIO. Mr. President, I rise in To suggest that some type of regula- churn out something newer, something support of this resolution to disapprove tion is needed flies in the face of the better and faster. the FCC’s open Internet order. growth of the Internet economy. This I want technologies to continue to The FCC wants to regulate the Inter- is one of the problems facing our econ- develop and industries to continue to net. Why? There must be some sort of omy and plaguing our country. We are emerge. We are now using fewer de- market failure that needs correcting or regulating where regulation is not vices for more telecommunications some Internet issue that needs fixing needed. We are regulating based on services, and it is not hard to imagine or out-of-control provider that needs speculation and in search of a problem. a day when we will use one device for regulating, right? This is not how we encourage innova- all of them. That is not the case at all. We are tion. This is not how we create cer- The industries are headed in that di- talking about one of the most success- tainty in the marketplace, and this is rection. When we throw the govern- ful sectors of our economy—one that definitely not how to encourage job ment in the middle of it, the pace will has flourished with limited government creation. slow, uncertainty will enter the mar- regulation and continued to create jobs Over the past few weeks, all we have ketplace, and future innovations may in the midst of a very deep recession talked about is jobs and rightfully so just go unrealized. and economic downturn. because, throughout America, the No. 1 One of the beautiful aspects of the Since the Internet was privatized in issue facing Americans is jobs—or the Internet industry is that we don’t the midnineties, it has prospered. The lack thereof. know what is around the corner in industry’s growth and impact on our Yet here we are debating whether to terms of new technologies and innova- economy, as well as its development of overturn a regulation on one of the few tions. If a few years ago we had told new, life-changing technologies and ap- growth areas of our economy, one of someone we would Google them, they plications, is staggering. the few sectors that has created and is probably would have been offended. But Twenty years ago, the Internet as we creating good, high-paying jobs. today that actually means something. know it did not exist. Today over 2 bil- This should be common sense. It is Going forward, we have no idea what lion people use it. no wonder people watching think that the future holds, what the new innova- Ten years ago, Facebook, Twitter, in this place, Washington, DC, the Fed- tions or ideas or technologies will be. YouTube, and Skype did not even exist, eral political process is out of touch We know technologies we cannot even and hundreds of millions of people are and dysfunctional. imagine today will very soon be part of now users. As the FCC drafted the open Internet our everyday lives. The question is Five years ago, mobile applications order, the Commission heard from whether we are going to encourage didn’t exist. At the end of last year, broadband providers, including small that and particularly whether we are there were over half a million apps, ap- businesses, about the problems the going to encourage that to happen here plications, and well over 10 billion will order would create and the negative or whether we are going to discourage be downloaded this year. Hopefully, impact it would have on consumers. that from happening. they will soon be downloading mine. One small Internet service provider Regulating the Internet—and this We came up with one yesterday for our stated that the imposition of network specific measure we are trying to office. management rules will hinder its abil- knock down today, if it passes—will Two years ago, the iPad didn’t exist. ity to obtain investment capital and discourage that development. Now, over 25 million have been sold. deploy new services in unserved areas. The FCC and Federal Government All these advancements expanded The regulations would also increase cannot keep pace with the Internet and broadband access and encouraged pri- costs and hamper innovation, which technology industries, and the govern- vate investment. would only further discourage outside ment should not attempt to catch up In 2003, only 15 percent of Americans investment in the company. through regulation or legislation. That had access to broadband and now over In other words, the Internet regula- is important. We are asking this gov- 95 percent do. This growth will only tion we are talking about today would ernment—this bureaucratic structure, continue. lead to lower quality of service and which struggles to keep pace with In its annual report on the Internet, would raise operating costs, which issues we have been facing for the last Cisco projected that the Internet will would result in higher prices on con- 20 years—to somehow keep pace with quadruple over the next 4 years, and sumers. the issues and technology and innova- the 1-year growth, from 2014 to 2015, So we can clearly see the impacts of tions that arrive in the Internet world. will be equal to all the Internet traffic Internet regulation—less investment, Not only do I think it is asking too in the world last year. less innovation, higher prices for con- much, I think it is impossible. There- Clearly, the Internet industry is sumers, lower quality services, in- fore, the government should not be growing and innovating at lightening creased business costs and, ultimately, looking at ways to preserve the status speed. Why has the industry been able fewer jobs. quo. Our government should be in- to do this? It is because the environ- Companies will spend more money on volved in looking at ways to promote ment for innovation and job creation compliance, basically complying with the future of these industries, and this has been ripe, with government regula- regulations, instead of investing in in- Internet regulation does not promote tion not getting in their way. novation and driving down prices. More the future. Imagine that, the government has money will be spent on lawyers, not on I have frequently spoken on this floor stayed out, has taken the ‘‘light engineers. about the new American century, touch’’ approach, and the industry has Let me be clear. The Internet will about whether our country will con- prospered as a result. still exist if Washington bureaucrats tinue to be a leader in this new cen- The broadband expansion we have get their way. But the order’s impact tury. I believe with all my heart—I do, seen, the innovation that has occurred will be profound, and it is going to dis- even with all the bad news and the

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00026 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.031 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7255 noise we hear every time we turn on What we should do is assure that we ecosystem put together. We can’t have the television—there is no reason this don’t put a blanket over the Internet the edge without the core and vice 21st century should not be every bit as and start saying to everybody who has versa. The onramp is as much a part of much the American century as the last a new idea or a new product or a new the information superhighway as are century. One of the reasons I believe service provider: You better go to the the cars traveling on it. that is because of the advances our en- FCC before you go forward with that or FCC Commissioner Robert McDowell trepreneurs and innovators are making you could be in jeopardy. You could be put it well in his dissent from the open in this field of the Internet. penalized. You could be thought to Internet order that we are discussing If there is any sector of our economy have an ‘‘unreasonable’’ product on the today. He said: that will ensure that the next century Internet because we don’t know yet To say that today’s rules don’t regulate is the American century, it is the what is reasonable. We just know you the Internet is like saying regulating high- Internet and the technology sector. have to be reasonable because we have way on ramps, off ramps, and pavement That is an industry where we are the don’t equate to regulating the highways a new regulation now that says you themselves. leader, and it is the one where we must must be reasonable, without any defi- Mr. President, if we are going to say continue to lead. To do that, we must nition of what this FCC—which had no the FCC can regulate the onramp—and encourage innovation, incentivize in- authority to go into this area—is going that is the first heavy hand of govern- vestment, provide certainty in the to determine is a ‘‘reasonable’’ product ment that is going to start controlling marketplace, and promote the com- that would not interfere with anything petitive environment this dynamic in- and making decisions about what is else. reasonable and what is not—that dustry needs. Mr. President, we haven’t had net means businesses are going to have to That will require passage of this res- neutrality before. All the successes I go to the FCC and say: Mother may I. olution of disapproval. So I urge my hear talked about in this debate have If they have an innovative product, colleagues to vote yes on the resolu- happened without the heavy or the that is going to cost the consumer tion. light hand of government stopping the more because they will have had to go Mr. President, I yield the floor. originality and innovation that has The PRESIDING OFFICER (Mr. and hire lawyers to go to the FCC to marked the success of our country. UDALL of New Mexico). The Senator get prior approval or it will delay the Earlier, Mr. KERRY, the Senator from product getting out to consumers, pos- from Texas. Massachusetts, said the Internet made Mrs. HUTCHISON. Mr. President, sibly letting a European service pro- the 1996 Telecommunications Act obso- how much time remains on this side? vider that doesn’t have these kinds of lete 6 months after it was enacted. But The PRESIDING OFFICER. There is barriers get ahead of us. 60 minutes remaining. if the 1996 act did not sufficiently ad- Internet technology is the basis of Mrs. HUTCHISON. Sixty? dress the Internet, thus making it ob- hundreds of thousands of jobs and prod- The PRESIDING OFFICER. Sixty solete, how can that same law be the ucts in our country. We are in a crisis minutes, yes. genesis and basis of the FCC’s assertion right now. We all know we have 9 per- Mrs. HUTCHISON. I thank the Chair. it has the power to regulate the Inter- cent unemployment and that our econ- Mr. President, I have been looking net? We have to have one or the other, omy is even dead in the water. So we for a time when the floor was open to and it is our assertion the FCC did not have to do something to jump-start the refute some of the comments and con- get specific authority to regulate the economy. The last thing we want to do cerns raised earlier on the Senate floor. Internet that is required for Congress is put a blanket on it to make it harder I want to start by taking on a com- to give it in order to make rules in this for it to come back. I don’t think any- ment that was made by the Senator area. So Senator KERRY can’t have it body in this country with any common from Minnesota, Mr. FRANKEN, who both ways. He can’t say the Tele- sense is going to say we have a thriving said YouTube started above a pizzeria communications Act was obsolete but economy right now. So it does defy in 2005 and sold for $1.6 billion 2 years it is also the basis of these new restric- common sense to say we are going to later to Google, and that wouldn’t have tive regulations. allow regulations Congress has not ap- been possible without net neutrality. Senator KERRY sent a ‘‘Dear Col- proved and that Congress has not au- Well, Mr. President, I must point out league’’ letter to everyone in the Sen- thorized the regulator to make, know- that we didn’t have net neutrality in ate asking them to vote against this ing it will have the effect of either 2005. We haven’t had Federal regulation resolution. What I think Senator freezing or delaying the innovation of the Internet in this country such as KERRY was saying in that letter is that that has been the hallmark of the suc- we have seen during this last year put net neutrality is not a regulation of cess of the Internet and technology in forward by this administration. In fact, the Internet because it is just a regula- our country. YouTube and Google were both created tion of the onramp. In other words, we There are several organizations that in a marketplace without net neu- are not trying to support the FCC regu- have banded together to ask that peo- trality regulations. Other online suc- lating the whole Internet; they are just ple vote for the resolution today. I ask cesses—Facebook, Hulu, Twitter, and doing the gateway, they are just doing unanimous consent to have printed in new devices such as the Apple iPhone the onramp. the RECORD a letter from, among oth- and Amazon Kindle—all happened Well, that was the position the FCC ers, Americans for Tax Reform, Tax- without net neutrality regulations. took when they made this regulation. payers Protection Alliance, Hispanic These are innovations that have But we can’t argue that net neutrality Leadership Fund, and Americans for changed communication patterns not is not regulation of the Internet be- Prosperity. only in our country but around the cause the Internet service providers are There being no objection, the mate- world as well. So we have had these in- the only onramps to the Internet. It is rial was ordered to be printed in the novations without the heavy hand of a misleading statement to say that RECORD, as follows: government. just regulating the onramp isn’t regu- NOVEMBER 8, 2011. It is very interesting to hear the de- lating the Internet. The Internet is the Re Rating Senate Joint Resolution 6, Net bate on the Senate floor because we entire global network of millions of Neutrality. seem to hear that net neutrality is computer networks. It uses the Inter- U.S. SENATE. something that will keep the Internet net protocol standard to interconnect DEAR SENATOR: We write to inform you open. The opposite is true. It is begin- with each other. Internet backbone that each of our organizations, together rep- ning to put the clamps on the successes providers and last-mile Internet serv- resenting millions of Americans, will con- that we have had by having an open ice providers serve as the foundation of sider rating a vote in favor of Senate Joint Internet. All these companies they are the Internet. So they are the founda- Resolution 6 to overturn the Federal Com- talking about needing net neutrality to tion. munications Commission’s (FCC) Net Neu- come forward and blossom and grow Web sites and services such as e-mail trality Internet regulations in our respective congressional ratings. are the companies that have done ex- and voice-over IP, or VOIP, allow users The FCC enacted these Net Neutrality actly that without net neutrality regu- to communicate on top of the founda- rules despite a complete lack of Congres- lations. tion. The Internet is the whole online sional authorization and after being told by

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00027 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.037 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7256 CONGRESSIONAL RECORD — SENATE November 9, 2011 a court that they lack jurisdiction. The FCC Here we have yet another regulation Federal agencies, which are appointed nevertheless insists on government regula- on top of the EPA and the NLRB and but not elected, to take over this area tion of how data travels across the Internet the NMB coming forward to put a that is so important for our economy. without any showing of consumer harm or damper on our economy. If we have any guts at all in this Sen- other justification. The FCC’s order also runs contrary to the Mr. President, I would like to read ate, we should stand up for our one- broad and bipartisan conversation in Wash- from an opinion piece written by Phil third of the balance of power in the ington about how best to grow the economy Kerpen, who is with the Americans for Federal Government and assert our- and spur job creation. President Obama and Prosperity, and I thought this was rel- selves to keep control over runaway Members in Congress on both sides of the evant to the debate. Federal agencies that do not answer to aisle have called to rein in overbearing regu- Network neutrality sounds nice. Origi- anyone. lations that harm economic growth. nally, it was the idea that all of the traffic Mr. HELLER. Mr. President, the Sen- The FCC’s Net Neutrality rule is a prime . . . that travel over the networks that com- ate will soon vote to overturn the open case of unnecessary rules emanating from prise the Internet should be treated exactly internet order, widely known as net unelected bureaucrats that will cause eco- the same way. But engineers cried foul, be- nomic harm and cost hundreds of thousands neutrality. This measure that was cause the routers that make the Internet of American jobs, as numerous studies have passed days before the start of the work are highly sophisticated with millions pointed out. But regardless of whether you 112th session of Congress by the Fed- of lines of code that necessarily prioritize support Net Neutrality rules, the process by eral Communications Commission is a different types of traffic. Streaming video which they were created cannot be allowed can’t tolerate delays of a few seconds where- rule that many believe the FCC had no to stand. legal right to make and will harm job Under the U.S. Constitution, it is your role as an e-mail could. So network neutrality morphed into some- creation in the technology sector of in the U.S. Senate to craft laws—not the role thing even more dangerous, empowering the our economy. of federal agencies that are bypassing Con- FCC bureaucrats to play traffic cops, micro- Plain and simple, this measure will gress. Senate Joint Resolution 6, sponsored managing networks, and deciding which traf- by Sen. Kay Bailey Hutchison, is a simple, cost the Nation good-paying jobs. That fic can or can’t be prioritized. The result commonsense measure that uses the Con- is why I do not support net neutrality would be a precipitous decline in private in- gressional Review Act to reject these rules, and will vote in favor of the resolution vestment because the companies that spent placing legislating authority back in the of disapproval to overturn it. billions of dollars building networks could no hands of Congress where it belongs. Since privatizing the Internet in 1994, We urge you to vote for Senate Joint Reso- longer be certain how the FCC bureaucrats would allow those networks to be used. the FCC and Congresses led by both lution 6 and may be rating your vote in our Democrats and Republicans have han- annual Congressional scorecards. A vote I am reading from this letter, and I dled the Internet with a light regu- against this measure is a vote to abdicate will continue. The letter says: latory touch by classifying it as an in- your responsibility and to instead rubber- A recent study from New York University stamp the job-killing and unwarranted regu- formation service. This classification found that hundreds of thousands of jobs originated from a Democrat-led FCC, latory actions of an unelected and unac- would be lost. The tech sector—the brightest countable federal agency. spot in our economy—would be burdened by and the U.S. Supreme Court supported Sincerely, Federal regulations the way the rest of the efforts to classify the Internet as an in- GROVER NORQUIST, economy has been. formation service when it upheld the President, Americans So these are excerpts from Mr. FCC’s Cable Modem Order on June 27, for Tax Reform Kerpen’s opinion piece that say it is 2005. (WILL RATE). The FCC’s policy has been that sub- now crunch time to stop the FCC’s PHIL KERPEN, jecting providers of enhanced services, Internet takeover. Vice President for Pol- even those offered via transmission I think these outside groups that are icy, Americans for wires, to title II common carrier regu- Prosperity (WILL weighing in are showing that just reg- lation was unwise given the fast mov- RATE). ular consumers—I heard the list of ing, competitive market to which they DAVID WILLIAMS, groups that are supporting this rule were offered. In other words, the FCC, President, Taxpayers that has come out. But the citizens led by Democrats and Republicans, has Protection Alliance who are for free markets and tax re- (WILL RATE). been consistent in the belief that regu- form and for letting our businesses THOMAS SCHATZ lating the Internet the same way we grow and thrive through the American President, Council for regulate land telephone lines even if Citizens Against innovation—I like some of the things those lines are used to connect to the Government Waste. they have said that I think are very Internet was counterproductive to good MARIO H. LOPEZ, important in this debate. public policy given the speed of innova- President, Hispanic I urge my colleagues to look at Leadership Fund. tion and the competition present. Even whether we are exercising our responsi- the U.S. Supreme Court supported this Mrs. HUTCHISON. Mr. President, in bility as Members of Congress when we part, the letter says: position. would vote against stopping a Federal So Congress has never passed a law The FCC enacted these Net Neutrality agency that has not had a delegation of that gives the FCC the power to regu- rules despite a complete lack of Congres- authority from Congress to regulate in sional authorization and after being told by late the Internet, the FCC has gone to this area. The House of Representa- great lengths to avoid regulating the a court that they lack jurisdiction. tives has already voted in favor of this Remember, this court, in the Internet, and the U.S. Supreme Court resolution. We need to send it to the has supported previous FCC adminis- Comcast case, basically said to the President and say to the President: FCC: You and all the other regulatory tration policy toward zero regulation Congress did not delegate our author- of the Internet. Yet here we are voting agencies that are independent must ity. have specific authority from Congress to overturn a Federal Communications It is overstepping its bounds, and fur- Commission order to regulate the to regulate in this area. thermore it is going to put a damper on They found in the Comcast case they Internet. the most thriving part of our economy Make no mistake, as FCC Commis- did not have such jurisdiction. Once today, and that is the tech sector. It is sioner Robert McDowell said, ‘‘To say again, citing from the letter in support where we are, hands down, ahead in the the net neutrality rules don’t regulate of passing S.J. Res. 6—which is signed world because we have kept the free the Internet is like saying that regu- by Grover Norquist, Phil Kerpen, David markets. Why would we give that up to lating on-ramps, off-ramps, and its Williams, Thomas Schatz, and Mario unelected Federal agencies that have pavement doesn’t equate to regulating Lopez—it says: not been asked by Congress to regulate the highways themselves.’’ The FCC’s order also runs contrary to the in this area? And if we did, we should But why does this matter? Why don’t broad and bipartisan conversation in Wash- be required—because it is our constitu- we just say: You know what, these ington about how best to grow the economy and spur job creation. President Obama and tional responsibility to do so—to say unelected bureaucrats at the FCC know Members in Congress on both sides of the exactly what we would ask a policy to so much more than Congress and the aisle have called to rein in overbearing regu- be in a new regulation. We have not Supreme Court. Let these rules go lations that harm economic growth. done that, and we should not allow the through.

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00028 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.016 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7257 Because they will cost us jobs. U.S. zation of their network. These net neu- Internet in this manner. Unfortu- broadband has seen an investment of trality rules impose restrictions on nately, this decision, coupled with con- hundreds of billions of dollars in infra- how a broadband provider can offer cerns expressed by Members of Con- structure expansion and upgrades over Internet service, which means gress, was completely ignored by an the last 10 years and that has led to broadband providers can’t adapt to an outcome-driven majority at the FCC. I hundreds of thousands of jobs in this evolving Internet. If a broadband pro- doubt the Commission’s lawyers will industry. vider does not have the ability to man- receive a warm welcome from the DC This year alone, broadband providers age their own network to ensure max- Circuit when they return to defend a are estimated to invest over $60 billion imum profits, the incentive to invest policy the court struck down just last in their networks. That is more money diminishes. If you minimize invest- year. than the Federal Government has ment, you lose jobs. Estimates have Shortly after the Federal appellate spent on highways in previous years. put the number of jobs lost because of court ruled in the Comcast case, recog- I am well aware that the FCC insists this regulation at 500,000 over the next nizing that net neutrality rules adopt- the rules will not have a significant 10 years. In my home State of Nevada, ed under the Commission’s title I au- impact on the industry, but they did the unemployment level is at 13.2 per- thority would have difficulty surviving little to prove this. Minus a market or cent, the highest in the Nation. Any a court challenge, Chairman cost-benefit analysis, there is no way regulation that increases unemploy- Genachowski shockingly announced of knowing what exactly the impact of ment both nationally and in my State that he would reclassify broadband as a this regulation will be. is unacceptable. title II telecommunications service and That is why I asked the FCC to con- Finally, some people believe we need apply a 19th-century regulatory frame- duct a market benefit analysis to prove this regulation to ensure competition work to an innovative 21st-century the exact impact on jobs and the econ- in the industry. I believe this is as ri- technology. This decision ignored the omy. The FCC stated the analysis was diculous as saying that this measure successful history of treating in the Internet order, but I still have will not cost jobs. broadband as a lightly regulated title I not been able to find what they are re- Fixed and mobile broadband Internet information service, which has been ferring to. I suspect the analysis was access is growing rapidly. In 2003, only the policy of the FCC and Congress not ever actually done. If it was com- 15 percent of Americans had access to going back to the Clinton administra- pleted, the FCC would have seen that broadband. In 2010, 95 percent of Ameri- tion. the costs of net neutrality would be cans do. Competition, investment, in- significant and justifying the rules novation, and job creation are all grow- Keeping regulators’ hands off of the would not have been possible. ing because of the light touch policy- Internet has historically been sup- The fact is, net neutrality regulation makers and the FCC have put on the ported by FCC Commissioners and is costly. As explained by the Federal Internet. Members of Congress on both sides of Trade Commission in 2007 when they We are in this wonderful era of inno- the aisle. For example, on March 20, said in part: vation and investment where people 1998, a bipartisan group of Senators sent a letter to the FCC stating: [[W]e Policy makers should proceed with caution can use an I-pad to read their e-mail in in evaluating calls for network neutrality the Sierra Nevadas because the govern- wish to make it clear that nothing in regulation. . . . No regulation, however well- ment did not regulate the Internet. the 1996 Act or its legislative history intentioned, is cost free, and it may be par- Now our friends on the other side of suggests that Congress intended to ticularly difficult to avoid unintended con- the aisle and the FCC are saying: Yes, alter the current classification of sequences here. but in order to continue this amazing Internet and other information serv- Policy makers should be very wary of net- innovation, we must regulate. ices or to expand traditional telephone work neutrality regulation . . . simply be- Competition is robust in this indus- regulation to new and advanced serv- cause we do not know what the net effects of ices.] They continued: [[W]ere the FCC potential conduct by broadband providers try, and when weighed against the loss will be on consumers, including among other of hundreds of thousands of jobs, the to reverse its prior conclusions and things, the prices that consumers may pay need for this regulation is simply not suddenly subject some or all informa- for Internet access, the quality of Internet there. Net neutrality should not be en- tion service providers to telephone reg- access and other services that will be offered, acted. It makes no sense for Nevada ulation, it seriously would chill the and the choices of content and applications and will cause unnecessary job loss na- growth and development of advanced that may be available to consumers in the tionwide. services to detriment of our economic marketplace. I urge my colleagues to vote for this and educational well-being.] The FTC clearly stated that Congress measure and disapprove of the FCC’s I couldn’t agree more. must proceed with caution because we net neutrality order. cannot fully quantify what the reac- Mr. TOOMEY. Mr. President, I rise Then Democratic FCC Chairman Wil- tion by broadband providers would be if today to speak in favor of the resolu- liam Kennard shared their view, stat- they were not able to manage their tion of disapproval offered by the Sen- ing: [Classifying Internet access as networks. ator from Texas. I commend her for telecommunication services could have Again, let me state, some reports leading this effort, and I was pleased to significant consequences for the global have said that over the next 5 years, be an original cosponsor of the resolu- development of the Internet. We recog- there will be hundreds of billions of tion. nized the unique qualities of the Inter- dollars invested in broadband infra- Like many of my colleagues, I was net, and do not presume that legacy structure which will result in half a dismayed last December when the Fed- regulatory frameworks are appro- million jobs. eral Communications Commission priately applied to it.] If broadband wire line and wireless chose to impose heavyhanded and bur- Had traditional telephone common service providers rolled back their in- densome new regulations on the Inter- carrier regulations been applied to the vestment by just 10 percent because of net. There was no market failure or Internet more than a decade ago, it is this regulation, the benefits of regula- consumer harm requiring FCC action, unlikely we would have the broadband tion would never outweigh the costs of and the FCC Chairman’s determination services and speeds of today. The ap- job loss. to deliver on a misguided Presidential propriate market incentives led to bil- I assure you, these companies will campaign promise is very dis- lions of dollars of private sector invest- roll back their investments if this rule appointing. It is especially troubling in ment in broadband, created millions of is allowed to move forward, which will light of the unanimous DC Circuit jobs, and now high-speed Internet ac- in turn eliminate jobs. Court of Appeals ruling in Comcast v. cess is available to 95 percent of the Because of the unpredictable nature FCC, authored by a Clinton appointee population, and that number continues of the Internet and evolving consumer and former Carter administration aide, to grow. It is amazing what can happen demands, broadband providers must stating that the Commission lacked when the Federal Government’s regu- have the ability to change their busi- the statutory authority under the latory policy for a particular industry ness models to ensure maximum utili- Communications Act to regulate the is hands off.

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00029 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.040 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7258 CONGRESSIONAL RECORD — SENATE November 9, 2011 Fortunately, after a bipartisan ma- ice providers, they built new barriers According to a report recently re- jority of Congress wrote to the Com- to infrastructure investment. leased by the House Government Over- mission objecting to the FCC Chair- Support for Internet regulation sight and Reform Committee, the man’s proposed radical shift in policy, seems to rely on baseless theoretical Obama administration has imposed 75 the FCC did not officially reclassify claims that consumers may be harmed new major regulations costing more broadband as a title II telecommuni- by ‘‘Internet gatekeepers’’ at some than $380 billion over 10 years. More- cations service. However, as we saw point in the future. Despite the fact over, the report continues by pointing last December, the Democratic major- that the FCC Chairman has said he will out that there are 219 more ‘‘economi- ity at the Commission did not abandon use fact-based analysis when reviewing cally significant regulations’’ in the their results-oriented effort to regulate proposed rules, the facts indicate that works which will cost businesses $100 the Internet. Instead, in defiance of the consumers are not being harmed and million or more each year for a min- Federal court decision in Comcast, the broadband service providers are not imum cost of $21 billion over 10 years. Commission chose to effectively place blocking access to content. A fact- These new regulations and added costs title II common carrier obligations on based analysis leads one to conclude come in spite of Presidential Executive broadband service providers using their that the market is healthy and com- orders to reduce burdensome regu- title I ancillary authority. The policy petitive. I have significantly more latory redtape. embraced by past Republican and faith in a competitive market rather The government’s politically moti- Democratic FCC Chairman and Sen- than Federal bureaucrats shielding vated decision to regulate the Internet, ators on both sides of the aisle has consumers from harmful business prac- like so many others, will stifle innova- been relegated to the waste bin under tices. In addition, current consumer tion, in turn further slowing our eco- the current regime at the FCC. protection laws, such as section 5 of nomic turnaround and depressing an In order to justify placing these new the Federal Trade Commission Act, already anemic job market. The tech- regulations on the Internet, the FCC will effectively address real consumer nology industry is one of our Nation’s for the first time found that broadband harms were they to actually ever occur bright spots and one of the fastest was not being deployed to all Ameri- in the broadband space. growing job markets. There is little cans in a ‘‘reasonable and timely’’ Lastly, it should be noted that while dispute that innovation and job growth manner. This is an absurd claim that there have been attempts by some in in this sector of our economy is a key quickly falls apart when you look at Congress to impose similar regulations component to America’s future pros- the facts. According to the FCC’s own on the Internet, these attempts have perity. Unfortunately, this is not the broadband plan, 95 percent of Ameri- all been unsuccessful. Unelected bu- FCC’s first attempt to regulate the cans have access to broadband. In the reaucrats have now usurped Congress’s Internet. For years, my colleagues and early 2000s, that number was less than authority and have taken it upon I have introduced legislation and writ- 20 percent. In addition, terrestrial themselves to change the law. Oppo- ten to the FCC asking the Commission nents and supporters of net neutrality wireless and satellite broadband serv- to halt attempts to regulate the Inter- in the Senate should take offense to ices continue to improve in terms of net unless given clear authority to do that, and I urge my colleagues to sup- speed and availability. We are rapidly so by Congress. The message in our port the resolution of disapproval. approaching the point where wireless correspondence to the FCC has been Mr. MCCAIN. Mr. President, I am Internet service becomes a true sub- pleased to support the resolution be- crystal clear: Members of Congress do stitute for wireline service. This rapid fore us that would express congres- not believe the Commission has the rate of deployment and technological sional disapproval of the Federal Com- current legal authority to regulate net- advances occurred absent the munications Commission’s move to work management practices; therefore, heavyhanded regulation we will be vot- regulate the Internet. The historically the Commission should not act without ing to repeal today. open architecture and free flow of the express legislative authority. But, like For my colleagues who may be un- Internet should not be subject to oner- other out-of-control Federal agencies, aware, I would like to point out that ous federal regulation. the FCC has chosen to not listen and the FCC determined that the As a member and former chairman of continues to act defiantly without leg- broadband marketplace was competi- the Commerce, Science and Transpor- islative authority. tive and should remain unregulated in tation Committee, I have fought to Might I remind the bureaucrats at 2002, 2005, 2006, and 2007. Proponents of prevent the FCC from unilaterally im- the FCC that as a government agency, regulating broadband services have plementing network neutrality regula- the FCC is not elected by the people failed to demonstrate what has tions for many years. Last Congress, I only the House, Senate, and the Presi- changed to warrant Federal interven- introduced the Internet Freedom Act dent are duly elected. And, as our Con- tion. Most consumers have a choice of of 2009, which would have prevented the stitution makes clear, the authority to multiple broadband providers, and the Commission from regulating the net- legislate is solely vested in the elected suite of services and applications avail- work management practices of internet representatives of the American peo- able on home computers, mobile service providers. And this congress, I ple, not five politically appointed FCC smartphones and tablets, and Internet- am a proud cosponsor of S.J. Res. 6. Commissioners. As such, the resolution connected televisions continues to Skeptical consumers and American before us today not only seeks to undo grow. Even through tough economic entrepreneurs should rightly view bad policy, it also seeks to restore the times, broadband providers continues these new rules exactly for what they constitutional integrity of the Con- to invest and create jobs. I also find it are—another government power grab gress. If we fail to pass this resolution perplexing that despite the FCC ac- over a private service provided by a of disapproval, our institutional credi- knowledging that it may require $350 private company in a competitive mar- bility will be further eroded. billion in new investment to achieve ketplace. Sadly, and to the detriment Proponents of more Federal regu- the goals of the National Broadband of consumers and our national econ- latory influence over the Internet Plan, the agency nevertheless willfully omy, the FCC is the latest in a growing argue that these rules are needed to en- adopts rules that will have a chilling list of Federal agencies under the hance regulatory certainty. I would effect on future investment. Obama administration that have cho- argue that the only uncertainty in the The Commission also makes the sen government intervention and influ- marketplace has been generated by the novel argument that section 706 of the ence over the free market. In a little development of these unauthorized reg- 1996 Communications Act, which di- less than 3 years, this administration ulations. Further, if there were sys- rects the FCC to ‘‘remove barriers to has moved to control and exert more temic problems in the Internet mar- infrastructure investment,’’ authorizes government influence over the auto in- ketplace, then why provide arbitrary the adoption of new Internet regula- dustry, the energy sector, doctor-pa- exemptions to coffee shops, bookstores, tions. The open Internet order flies di- tient relationships, and now, through and airlines? Why not make these regu- rectly in the face of the plain language the FCC, it wishes to control high-tech lations universally applicable? The fact of section 706. When the Commission industries by regulating its very core: is there is no systemic problem that imposed new rules on broadband serv- the Internet. warrants a regulatory overreach of this

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00030 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.042 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7259 magnitude. After over a decade of prac- put an end to the FCC’s misguided net fort to reverse the FCC order. The rule tice, the facts are devoid of any global neutrality rules. The FCC’s rules regu- this resolution seeks to eliminate—the misconduct. These regulations will do lating the Internet are yet another in a open Internet rule—was adopted by the more to entice companies to lobby-up, series of unnecessary and economically FCC in December of 2010, and it will go get a lawyer, and seek a regulatory harmful regulations from President into effect on November 20 of this year. competitive advantage than benefit Obama’s administration. These rules Simply put, this rule creates com- consumers or our economy. will stifle innovation, investment, and monsense obligations and requirements As the Chairman of the Federal Com- ultimately jobs, and they are a con- for broadband Internet service pro- munications Commission has recog- tinuation of this administration’s ob- viders, such as telephone and cable net- nized, Americans have benefited enor- session with picking winners and losers works, in order to keep the Internet mously from the Internet’s ‘‘funda- in almost every marketplace. free and open. I know the open Internet mental architecture of openness.’’ The We live in a world where we no longer rule will provide the certainty needed light touch regulatory approach to- have to wait for the morning edition of to foster job-creating investments and ward the Internet that was advanced the paper to read the latest news. We innovations while protecting by previous administrations—both don’t have to wait for a delivery from broadband Internet consumers. Why is Democratic and Republican alike—has the postman to get a message from a this important? Well, net neutrality is brought Americans Twittering, social loved one. We do not have to get in our a way of saying the Internet ought to networking, low-cost long distance car and head to the store to watch a be free and open. It is a fundamental calling, texting, telemedicine, and over movie or to shop for clothes, books, concept that is underpinned with some 500,000 apps for the iPhone. It also and groceries. We have the ability to marvelous new technology that we call brought us YouTube, HBO GO, Kindle, do these from the comfort of our the Internet. This open Internet rule the Blackberry, and the Palm. The homes, thanks to the Internet. It is will make sure we hew to the concept Internet has changed our lives and our clear the Internet has changed the way that the Internet ought to be free and economy—forever. we live. This helps promote and en- open. By imposing onerous regulations and courage economic growth, facilitates We watched and are still watching as discouraging innovation, broadband innovation, and reshapes the way we do democratic uprisings topple totali- providers will have less incentive to in- business, all the while creating mil- tarian regimes all over the Middle vest. This disincentive will result in lions of jobs. This was able to happen East. Social networks such as Twitter the movement of less capital into the because of the government’s hands-off and technologies such as text mes- market, which in turn will directly re- policy. saging are largely thought to facilitate sult in fewer jobs created. We should The Federal Communications Com- the so-called Arab spring. None of that reject this regulatory power grab and mission admits the ‘‘Internet has would have been possible without an demand the Federal Government get thrived because of its freedom and open and free Internet. out of the way and out of the business openness.’’ Then why is this agency I have to ask, what kind of message of picking winners and losers in our taking steps to limit the openness and will we be sending to the remaining economy. It is for these reasons that I freedom of the Internet? dictators—but probably even more im- strongly support the resolution before Last December, the FCC voted to im- portant, those people who quest and us to keep the Internet free from gov- pose net neutrality rules to regulate thirst for freedom—if the citizens of ernment control and regulation. the Internet. This is nothing more than the United States, through their Sen- Mr. President, I yield the floor, and I the government interfering and threat- ate, vote to limit Americans free ac- reserve the remainder of our time. ening small providers and forcing net- cess to the Internet? We have to set an Mr. ROCKEFELLER. Mr. President, I works to operate services in ways de- example for the rest of the world. The would like to respond to some things, termined by unelected bureaucrats. Internet must remain free and open. but I understand we only have 42 min- What is worse is the FCC is working The open Internet rule will achieve utes remaining. to fix a problem it acknowledges does this by ensuring that four key Internet The PRESIDING OFFICER. That is not exist. The agency is relying on policies are maintained. Let me list correct. speculation of future harm. This at- them for my colleagues. Mr. ROCKEFELLER. And both Sen- tack on the Internet is irresponsible No. 1, it will prevent broadband ator CANTWELL and Senator MARK and is irresponsible governing. While Internet providers from blocking law- UDALL want to speak. I don’t want to our economy struggles, the Internet re- ful Internet content or services. take their time, so at this point I sug- mains a beacon of light that continues No. 2, it will require transparency gest the absence of a quorum. to grow, but this rule risks stifling in- about broadband network management The PRESIDING OFFICER. The novation and investment in jobs. policies. clerk will call the roll. A study by a telecom economist with No. 3, there will be a level playing The bill clerk proceeded to call the the Brattle Group found that the net field for consumers on the Internet. roll. neutrality rules could lead to a job loss No. 4—this is important in these Mrs. HUTCHISON. Mr. President, I of 340,000 in the broadband industry tough economic times we face—it will ask unanimous consent that the order within the next 10 years. This is not provide predictability for both for the quorum call be rescinded. the type of policy we need to adopt, es- broadband providers and Internet The PRESIDING OFFICER. Without pecially as our country stares at 9 per- innovators. objection, it is so ordered. cent unemployment. That is why I am As I have said, what is so important Mrs. HUTCHISON. Mr. President, supporting S.J. Res. 6, which will put a about this debate is that in these eco- how much time remains on our side? stop to the FCC’s misguided net neu- nomic times, net neutrality is also The PRESIDING OFFICER. There is trality rules. about jobs and economic development. 44 minutes. I yield the floor. As I travel in my State of Colorado— Mrs. HUTCHISON. I suggest the ab- The PRESIDING OFFICER. The Sen- and I know the Presiding Officer trav- sence of a quorum. ator from Colorado. els his State of New Mexico—the re- The PRESIDING OFFICER. The Mr. UDALL of Colorado. Mr. Presi- frain I hear from businesses and busi- clerk will call the roll. dent, I rise today in opposition to the ness leaders is that they need predict- The bill clerk proceeded to call the joint resolution of disapproval that ability in order to invest in their com- roll. will reject the open Internet or the net panies and create good-paying Amer- Mr. BOOZMAN. Mr. President, I ask neutrality rule that was put forward ican jobs. unanimous consent the order for the this year by the Federal Communica- Thousands of entrepreneurs who have quorum call be rescinded. tions Commission. built small Internet businesses can The PRESIDING OFFICER. Without I am a strong supporter of the prin- only be successful if they can reach objection, it is so ordered. ciple of network neutrality that the their customers. However, if we don’t Mr. BOOZMAN. Mr. President, I rise open Internet rule seeks to protect, preserve this net neutrality rule and in support of S.J. Res. 6, which seeks to and I believe we should oppose this ef- content blocking is prevented, there

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00031 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.043 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7260 CONGRESSIONAL RECORD — SENATE November 9, 2011 will not be any guarantees that the here as well. But it will begin to mat- This is a solution that is really next great online innovation or pio- ter if we begin to manage the Internet searching for a problem. Let me guar- neering application will even be able to in a way that slows down investment, antee that whatever anybody thinks access the Internet. For example, the that slows down innovation. the problem is right now, that will not next Google or Amazon or Twitter will Three years ago, the FCC attempted be the problem 6 months from now un- only be able to grow and be successful to reach far beyond any legislative less we figure out how to slow down in- if they can reach their customers with- mandate they had to regulate the novation in this area and suddenly we out worrying about interference from Internet through a rule. Last year, a are dealing in a static environment in- broadband providers that might want Federal court struck down that rule, stead of a dynamic environment. to preference another more established saying the Commission had no author- Even if there were a legal basis for competitor. ity to do so. Now we find ourselves de- this legislation, we still cannot get So what we are talking about is the bating a measure which in a round- away from the fact that it is a massive FCC is promulgating a commonsense about way attempts to accomplish the and unnecessary overreach into the rule that will provide predictability for same end with a result that might be private sector, which has thrived while both the broadband providers and the disguised in some other way. The Com- our overall economy has slowed and Internet innovators. The certainty of mission is using a provision of the stalled. knowing the rules broadband providers Communications Act, which was en- In 2003, only 15 percent of Americans have to follow will give the confidence acted to allow the FCC to ‘‘remove bar- had access to broadband. According to needed for investors to help the next riers to infrastructure investment.’’ the Commission’s own National Groupon breakthrough or many of the Why would we want to do that? Why Broadband Plan, last year 95 percent of other numerous applications we are all would we want to remove barriers to Americans had access to broadband. familiar with online. infrastructure investment? Why would Between 2003 to 2010, 15 percent to 95 Innovation and job creation is what we have passed that law? Because we percent—it sounds to me as if that ac- will finally lift our economy out of the want to encourage infrastructure in- cess is doing what you want it to do slump from which we have been des- vestment by removing barriers. The and occurring how you want it to perately trying to recover. We need net basis the FCC is using was actually de- occur. Fixed and mobile broadband neutrality to ensure that innovation regulatory, not regulatory. They are Internet access, expanded and im- thrives and that the next great prod- basing this on a law that said they proved upon by the private sector, is uct, service, or way of doing business is could do something 180 degrees dif- the fastest growing technology in his- not inhibited by market manipulations ferent from what this rule would do. tory. In only 7 years, 95 percent of or restrictive online policies. Repeated government economic anal- Americans got to where 15 percent I came to the floor to urge my col- ysis has reached the same conclusion: were 7 years earlier. leagues to vote against this resolution. There is no concentration; there are no Competition in this field is robust. It only serves to distract us from the abuses of market power in the Technology advances, network build- hard work we have to do to foster job broadband space. And even if there out, and infrastructure improvements growth and get our economy back on were, we have a lot of laws to deal with are happening quickly, to the tune of track. Let’s agree to cement fair and that. We have antitrust laws. We have billions of dollars of investment and in- reasonable rules of the road, as the consumer protection laws. There are novation and an ever-expanding array FCC rule seeks to achieve, in order to plenty of ways to approach that if it of applications for consumers. More provide certainty in a climate of inno- happens, but nobody thinks it is hap- competition is on the way as providers vation for the next generation of job pening. make use of increased amounts of spec- creators. The Commission, like many other trum coming online and lay new net- I yield the floor. Federal agencies, has often been put in works of fiber to connect Americans in The PRESIDING OFFICER. The Sen- a position where one industry compet- rural areas in the country. ator from Missouri. itor is being asked for a regulation The telecommunications sector con- Mr. BLUNT. Mr. President, we don’t that somehow would benefit them in tributes more than $60 billion annually use the Congressional Review Act their competition with somebody else. to our economy. Net neutrality would often. In fact, I think we have only This order would greatly increase the slow that down. used it once successfully. But the regu- frequency of those requests. With the order that was set forth, the lators are working at a breakneck This order puts the FCC in a position Commission will begin to speculate on pace, and I think the overreach we see of constantly having to monitor new what might happen as opposed to what in this rule and some others that are innovations on the Internet. clearly is happening. coming out right now really requires One of the FCC Commissioners who First, the kind of anticompetitive ac- the Congress to pay attention, requires didn’t agree with this order clearly laid tion the Commission seeks to remedy us to revisit the reason the Congress out the dissent when he said this. This is already illegal. gave itself the ability to look at rules is a quote from Commissioner Second, the competition in this space and regulations and see if they make McDowell: is far too fierce. Their rule is far too sense. Using these new rules as a weapon, politi- repressive. Most Americans already Simply put, on this regulation, the cally favored companies will be able to pres- have two options for wired broadband Federal Communications Commission sure three political appointees to regulate access at work or at home, and the lacked the legal standing to produce their rivals to gain competitive advantages. number of wireless competitors avail- the order we are debating today. The Litigation will subplant innovation. Instead able is exponentially higher. net neutrality order the FCC enacted is of investing in tomorrow’s technologies, pre- No government has ever succeeded in cious capital will be diverted to pay lawyers’ not based on the facts or on the law. In fees. The era of Internet regulatory arbitrage mandating investment and innovation, fact, I have yet to hear credible defense has dawned, and to say that today’s rules and until this order nothing has held of why we would want to have this don’t regulate the Internet is like saying back Internet investment and innova- massive regulatory burden. In fact, we that regulating highway on-ramps, off- tion in this country, and that is why it have talked about net neutrality for ramps, and its pavement doesn’t equate to has done so well. several years now, and the definition regulating the highways themselves. Broadband buildout is a thriving suc- continues to change because the free In releasing the net neutrality order, cess story on which virtually all Amer- marketplace has driven the innovation the FCC charted itself on a collision icans now count. We now even take it beyond every debate we have had. The course with the legislative branch as for granted. It is incumbent upon us to marketplace where people invest and well as with the Federal judiciary, look at this rule to understand the neg- grow the Internet and access to that which has already struck down a simi- ative impact it will have on a thriving Internet has meant that as soon as a lar attempt to regulate this sector by way to communicate, to do business, debate would be engaged on this issue the FCC. They stated unequivocally in and to talk to each other, and to reject of so-called net neutrality, it no longer that attempt that the FCC lacked the this rule and let this system continue mattered. I think that is what we see standing to do so. to develop with the same innovation,

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00032 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.048 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7261 the same intensity, and the same in- the jobs bill—and we always are talk- problem. Last year, the courts ruled in credible success it has had in the past ing about revenue and jobs and all of the Comcast decision that the FCC 7 years. this—we seem to forget that the over- does not have the authority to man- I yield the floor. regulation is costing us a lot. I can re- date how private companies can enter The PRESIDING OFFICER (Mr. member fighting the cap-and-trade into business agreements and limit the CARDIN). The Senator from Texas. bills ever since back during the Kyoto ways they provide Internet services. Mrs. HUTCHISON. Mr. President, convention, and impressing upon peo- The FCC did not learn its lesson and how much time remains on our side? ple that the bills being offered would instead is at it again with its Open The PRESIDING OFFICER. There is cost between $300 billion and $400 bil- Internet Order, which is vague, base- 1 19 ⁄2 minutes remaining. lion a year. That is every year, not just less, and built on an even weaker legal Mrs. HUTCHISON. I Thank the Chair. the first year. Right now, since they foundation than their activities in I suggest the absence of a quorum. have not been able to pass that here, Comcast. Congress did not authorize The PRESIDING OFFICER. The such actions and the courts have ruled clerk will call the roll. they are trying to do that with regula- tions through the Environmental Pro- against them. The FCC should not try The bill clerk proceeded to call the to get around it by redefining clear leg- roll. tection Agency. Congressman FRED UPTON over in the House and I had leg- islative language passed by Congress. Mrs. HUTCHISON. Mr. President, I There has been no demonstrable ask unanimous consent that the order islation that would take away the ju- risdiction of the EPA to get this done. harm to which the FCC needs to re- for the quorum call be rescinded. spond. They cannot give us a case The PRESIDING OFFICER. Without I think this is going to be offered as an where competition is not growing, objection, it is so ordered. amendment this afternoon. I think it is Mrs. HUTCHISON. Mr. President, I very critical that we pass that. where the expansion of broadband is yield up to 5 minutes of our time to the I thank the Senator from Texas for not growing. In fact, new technologies Senator from Oklahoma. giving me this time. are exceeding the pace that the FCC The PRESIDING OFFICER. The Sen- I yield the floor. can even keep up with. ator from Oklahoma. Mrs. HUTCHISON. I suggest the ab- We do not need to come in and slow down the growth. If the FCC wants to Mr. INHOFE. Mr. President, I thank sence of a quorum. the Senator from Texas for the time. The PRESIDING OFFICER. The take action, it should prove there is le- This is a critical subject she is dealing clerk will call the roll. gitimate harm in the marketplace. The with right now, but the thing in com- The bill clerk proceeded to call the Department of Justice and the Federal mon is the problem we are having right roll. Trade Commission have a number of now with regulation. I think we are Mrs. HUTCHISON. I Ask unanimous laws and regulations to enforce in the going to be talking about that this consent that the order for the quorum name of protecting consumers who use afternoon. call be rescinded. the Internet and competition among I only wanted to get one thing in, and The PRESIDING OFFICER. Without companies involved in the market. If that is about something the Chair is objection, it is so ordered. those laws are lacking, the FCC should fully aware of because he was there all Mrs. HUTCHISON. I yield up to 7 show how and ask Congress to provide morning. Something very significant minutes to the Senator from South it with statutory authority. The FCC has not done so. They have happened this morning. In our Environ- Carolina. not shown us that harm has taken ment and Public Works Committee we The PRESIDING OFFICER. The Sen- place and that they need to take con- passed out a highway reauthorization ator from South Carolina. trol, essentially, of the Internet. Con- bill. We have not done this since 2005, Mr. DEMINT. I thank the Chair. I gress has yet again been cut out of the and this morning we did. This is one thank Senator HUTCHISON for her ef- picture, and many of my colleagues in where we sat down—one of the few forts here in stopping another regu- the majority seem comfortable with latory nightmare. I am beginning to times that Democrats, Republicans, abandoning their role. The FCC’s bad think the FCC stands for Fabricating a liberals, conservatives, can get in a logic needs to be recognized. They Crisis Commission because they are room and hammer out their differences admit these new rules were not im- trying to create a new regulation for a and get things done. I wish the com- posed due to any previous or existing problem that does not exist. The over- mittee would be successful in doing wrongdoing. That is important for us that as we were this morning in get- riding problem here is, as the govern- to recognize. ting a highway bill. So we are going to ment intervenes increasingly into the If a regulatory agency is issuing an have a highway bill at the current Internet and the investment in the order that intervenes into the private spending level which, if my colleagues Internet, that investment is going to sector, there needs to be some substan- remember back in 2005, it was $286.4 dry up as uncertainty is increased. tial harm being addressed. The FCC billion, and that was for a 5-year bill. I have seen in my State where pri- claims the government must regulate That spending level right now would vate investors have put together the the Internet in order to protect con- be, to sustain that, somewhere between money with companies to put down sumers from future harms that could $40 billion and $42 billion a year for 2 broadband in rural areas only to find occur. That is not the point of the reg- years. This is a 2-year bill, and the 2- that there are some companies oper- ulatory structure. year bill cannot pass until we locate an ating with a government grant or some I heard all of these arguments back additional $12 billion to make this hap- government money to compete with in 2006 when the Senate was debating pen. I think a lot of us don’t want to them. how to update our telecommunications take what would constitute a 34-per- Under President Obama, the FCC has laws. If the regulation advocates had cent cut in funding for our roads and become an activist bureaucracy that is won in 2006, today we would have the highways and bridges throughout inventing a crisis here in order to take Internet of 2006. I do not want the America and be able to sustain that. control of the Internet. Internet of 2006 in 2011, and I do not This is a life-and-death type of issue. The Internet is one thing in our want the Internet of 2011 in 2016. I want I wanted to say how proud I am of country that is working vibrantly. It is it to grow and improve and evolve just the staff and of every Democrat and a showcase of free enterprise. It does as it is doing now. The government every Republican on the Environment not need to be regulated. For years lib- cannot possibly manage the develop- and Public Works Committee who erals have warned us that, if the gov- ment of the Internet, which the FCC is made this happen this morning. So ernment does not take action, the trying to do. while we have much more we are con- Internet will not be competitive or ac- The Internet does not need a govern- cerned about, I think it shouldn’t go cessible. The opposite has happened. ment stimulus. It is a free market in- unnoticed at this time that we have More people are using the Internet and dustry that is working. Right now, the now started that ball rolling and that have access to cutting-edge technology technology sector has a 3.3-percent un- is good news. and devices than ever. employment rate, far below the na- One last thing I wish to say about This is yet another misguided big- tional average. Over the years, commu- overregulation. When we talk about government solution in search of a nications companies have invested

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00033 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.049 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7262 CONGRESSIONAL RECORD — SENATE November 9, 2011 hundreds of billions of dollars in But as it is today, the Federal Com- counting in one of his interviews ex- broadband technology and develop- munications Commission has taken a actly what happened. Comcast went in ment, and no deficit-expanding stim- half step, if you will, by proposing and basically blocked large data files ulus was required! some rules that will set in place some of peer-to-peer transfer, what is called If the government really wants to protections for consumers to make bit torrent traffic. allow the Internet and related busi- sure they are protected on important First, Comcast said: No, no. We do nesses to prosper and thrive, it should aspects of keeping Internet costs down. not do that. We did not block that. We stay out of it. The Internet is not bro- The problem with the FCC rules is they do not do it. But when it was basically ken, but our government is. The pri- only apply in some cases to fixed found out that they did, they said: Oh, vate telecommunications sector knows broadband and not to mobile no, we did not block it. We just slowed how to create jobs; our government broadband. it down. They sent little messages, as does not. The things that work best in So if you think about it this way, the Mr. Lessig says in his article, to the our society—businesses, charities, vol- Internet is moving to a mobile Internet traffic to confuse the recipient unteer organizations—are the things broadband platform; that is, our hand- and basically disrupt their traffic. OK? that government does not control. Con- held devices, whether they are a Black- So that is what is happening. sumers should be in control, not Berry or phone or what have you. So These providers think if they can unelected activist bureaucrats intent many more Americans are accessing control the pipe, now they can also on taking over the most successful the Internet that way. So the FCC has control the flow. It is also, as Mr. parts of our economy. come up with rules on transparency Lessig said later in this article, as if I encourage my colleagues to support and no blocking; that is, to make sure the entire electricity grid, our refrig- this resolution to undo the FCC’s no content is blocked or slowed down erators and our toasters and our dry- power grab. Three unelected bureau- for any undue cost or reason, and a ers, all of a sudden would start charg- crats should not be permitted to sim- nondiscrimination rule. ing different rates on different things ply give themselves the power to regu- Unfortunately, those two last points, because the electricity company would late the Internet’s infrastructure in no blocking and unreasonable discrimi- decide it had the ability to charge dif- the face of clear statutory language di- nation, do not apply to the mobile side. ferent rates. Would we put up with recting them to do just the opposite. So we have work to do to make sure that? No, we would not put up with The FCC should not be permitted to the youth of America who are con- that. circumvent Congress and essentially suming so much content online So why would we put up with allow- enact laws that will impact vital serv- through their mobile devices are not ing telcos to run at will on the Internet ices we all depend on. To keep the going to be artificially charged more or charging consumers anything they want based on the fact that they think Internet economy thriving, this deci- slowed down in their access all because they have the control of the switch? sion must be reversed. I commend Sen- the telecommunications industry I am so proud the chairman, Senator ator HUTCHISON for bringing this up wants to have its way with the Inter- ROCKEFELLER, has led this fight for the net. and using the powers of Congress to freedom of the Internet to drive down My colleagues have been out here take back control of our legislative re- costs, to keep innovation, and to pro- talking about innovation. I can tell sponsibility. tect net neutrality. The FCC rules do you, the Internet has had a ton of inno- I yield the floor. not go far enough. We cannot continue The PRESIDING OFFICER. The Sen- vation and a ton of content creation, to have this half step and not clearly, ator from West Virginia. all because there has been an even on the mobile side, give consumers the Mr. ROCKEFELLER. Mr. President, playing field and net neutrality. The protection they need. how much time remains on this side? fact now is that the telecommuni- But for today, if you want to vote The PRESIDING OFFICER. The Sen- cations companies are debating an im- with Internet consumers and Internet ator has 18 minutes under his control. portant issue, and the lines get blurred users on driving down the costs of the Mr. ROCKEFELLER. I would yield it between telecommunications and the Internet, then vote against this resolu- to the distinguished Senator from Internet, and it is clear we do not have tion and keep the minimal FCC rules in Washington. all of the rules in place to make sure place until we can get stronger legisla- Ms. CANTWELL. I thank the chair- consumer interests are protected. tion passed. Make no mistake about it, man of the Commerce Committee for But today we have one thing: the the other side is talking about, well, his leadership on this important issue. FCC rules that are trying to slow down they do not want to regulate the Inter- I am glad to be on the Senate floor to telecommunication companies from ar- net. That is true. They do not want to set the record straight because we are tificially either blocking or making regulate telcos that want to take ad- here to talk about Internet freedom content on the Internet more expen- vantage of the fact that they own the and about making sure the Internet sive. Again, when we go to the mobile pipe and can charge a lot more. does not have undue costs and expenses phone model and we are being charged I am glad the FCC at least took this for consumers. for time and data transfer, the fact measure. We should make sure it If you liked TARP and you liked the that the data transfer and time take stands until we can even get stronger bailout of the big banks, well, guess longer means we are going to have Internet freedom protection. what. Then you should vote for this more expensive phone bills. That is I yield the floor. resolution because this resolution is why I said it was TARP-like, because The PRESIDING OFFICER. The Sen- about whether you are going to let the the ‘‘cha-ching’’ we are going to hear ator from West Virginia. communications companies that want from the phone companies on the Mr. ROCKEFELLER. Mr. President, I to make the Internet more expensive money they are going to make from thank the distinguished Senator for by various technologies have their this is unbelievable. her remarks and actually fully agree way. So thank God the FCC took a half with them in that mobile is kind of left If you believe the FCC should estab- step and said: Whoa. Slow down. We are alone, and it should not be because it is lish some rules to protect the freedom not going to let you do that. That is everything that is happening in the fu- of the Internet, then you should oppose why people like Vint Cerf and Tim ture. But it is a step, and it was a won- the Hutchison resolution. I prefer legis- Berners-Lee, the architects and inven- derful speech. lation that I have introduced, and some tors pushing the Internet, have said It occurs to me that I do not think of my colleagues support, called the what a bad idea it is to not make sure we have anybody left to speak on this Freedom of the Internet Act, that goes that net neutrality is the law of the side. I am not sure about Senator further than what the Federal Commu- land. HUTCHISON, but it may be a good time nications Commission has done to im- I notice my colleague who just spoke to yield back our time. plement true net neutrality. I would said, well, there have not been any The PRESIDING OFFICER. The Sen- prefer that, and maybe in the future problems. There have not been any ator from Texas. my colleagues will be working on such issues. I read the online publications. Mrs. HUTCHISON. Mr. President, legislation. Larry Lessig, someone I trust, was re- how much time remains on our side?

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00034 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.051 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7263 The PRESIDING OFFICER. The Sen- Congress has given them, and I hope we Reid (for Tester) amendment No. 927, to ator has 4 minutes. will stand for our prerogative in Con- amend the Internal Revenue Code of 1986 to Mrs. HUTCHISON. Mr. President, I gress to make the laws and only have permit a 100-percent levy for payments to would like to just wrap up, and then I regulations come out when we delegate Federal vendors relating to property, to re- will yield back the rest of our time and quire a study on how to reduce the amount specifically to an agency to put out of Federal taxes owed but not paid by Fed- we can close this debate because our rules in a particular area, which has eral contractors, and to make certain im- vote is going to come tomorrow. not happened in this case. provements in the laws relating to the em- I just want to summarize what we I urge my colleagues to support this ployment and training of veterans. have heard today. I just heard the dis- resolution. AMENDMENT NO. 928 TO AMENDMENT NO. 927 tinguished Senator from Washington I yield the floor. (Purpose: To provide American jobs through State say that without net neutrality The PRESIDING OFFICER. The Sen- economic growth) we would have more expense to con- ator from West Virginia. Mr. MCCAIN. Mr. President, I call up sumers. I really do view this in a dif- Mr. ROCKEFELLER. Mr. President, my amendment numbered 928. ferent way because I view the potential before I yield all time back on our side, The PRESIDING OFFICER. The delay, the regulatory processes, the I have listened to the entirety of this clerk will report. hurdles that are going to have to be debate. It seems to me it has been fair- The legislative clerk read as follows: overcome for any kind of preclearance ly clear that on one side the govern- The Senator from Arizona [Mr. MCCAIN] to put a new product on the Internet, ment regulates and messes things up, proposes an amendment numbered 928 to gatekeeping for innovation—that is and on the other side things are going Amendment No. 927. what, in my opinion, is going to in- swimmingly. (The amendment is printed in the crease the cost and cause delays if not I can’t help but pay attention to all RECORD of Tuesday, November 8, 2011, freeze many of the innovations that those people out at TechNet, the AT&T under ‘‘Text of Amendments.’’) have occurred in our open Internet sys- people, Moody’s, Hamilton’s, and all Mr. MCCAIN. Mr. President, I ask tem. these people who take a very dour view unanimous consent to enter into a col- We now have, because of the FCC’s of government intervention and a very loquy with my Republican colleague, ruling, the requirement for reasonable sensitive view as to whether that inter- the Senator from Kentucky, Mr. PAUL, standards for access to the Internet. vention is in any way going to stop in- and the Senator from Ohio, Mr. There is no definition of ‘‘reasonable.’’ vestment. The answer is usually it PORTMAN. I heard the Senator from Minnesota does. That is why I feel very happy The PRESIDING OFFICER. Without say we need net neutrality in order for that this was referred to by a number objection, it is so ordered. Google, YouTube, Facebook, and Twit- of major players in this field as a very Mr. MCCAIN. Mr. President, I feel it ter to be able to grow and prosper. ‘‘light touch’’ of regulation, which gave is very important that we spend some Those entities have grown and pros- them a sense of where they were going time on this issue. I think all Ameri- pered—without net neutrality regula- to be, how far down they could look to- cans realize we are in almost unprece- tions. They have grown and prospered ward their future and therefore allow dented difficult economic times, and because we have had free and open ac- them to invest the money they wanted that despite efforts that have been cess to the Internet. We and our com- to invest. made over the now nearly 3 years, our petitors and our businesses that com- That is not to say they would not economy has not grown and it has not pete overseas have had open and free have done it anyway. But there is noth- provided the kind of job growth and op- access. That has been the beauty of the ing like encouraging capital invest- portunity many of us had anticipated. success of the Internet. ment in something as important as the When we look at previous reces- Now we see government coming in Internet. I think the net neutrality sions—and this is a near depression by and saying: You have to be reasonable legislation does that very well. I hope some calculations—the recovery has in what you offer. So if there is a major when we vote on it tomorrow, it will been amazingly and agonizingly slow dump of millions of pages onto the not pass. as compared to recoveries from other Internet and it is going to slow down, Having said that, I yield back all recessionary periods. for instance, a hospital network offer- time. In the view of this Senator, the rem- ing rural health care on an emergency The PRESIDING OFFICER. All time edies have, in many respects, made the basis or some kind of video-streaming has been yielded back. problem worse rather than better. If we that is going out, we have to be able to Mr. ROCKEFELLER. I suggest the look at some objective criteria, I argue let the providers have the judgment absence of a quorum. that the situation in America today is and let the marketplace work. If there The PRESIDING OFFICER. The worse than it was on January 2009, is a problem it was not pointed out by clerk will call the roll. when this administration came to of- the FCC when they decided to inter- The legislative clerk proceeded to fice. We have had the stimulus pack- vene in the Internet among 134 pages of call the roll. age, the Health Care Reform Act, in- creases in spending in numerous areas, regulations with just 3 paragraphs Mr. MCCAIN. Mr. President, I ask about possible problems, all of which unanimous consent that the order for and the Dodd-Frank bill, which was concluded with the rules that are in the quorum call be rescinded. going to fix the regulatory system in place today. The PRESIDING OFFICER. Without this country to prevent any financial This is clearly a problem that isn’t objection, it is so ordered. institution in America from ever again there, which is being manufactured in being too big to fail—in other words, order to put another government regu- f no financial institution would ever lation on the books. When the Senator 3% WITHHOLDING REPEAL AND need taxpayer dollars to the degree from Massachusetts said this order JOB CREATION ACT that America’s economy would be im- doesn’t regulate the Internet, just the The PRESIDING OFFICER. Under pacted adversely in case that institu- gateways or the on-ramps, that doesn’t the previous order, the Senate will re- tion failed. Well, here we are. Here we are, nearly hold water because if we regulate the sume consideration of H.R. 674, which 3 years later, and unemployment is at on-ramp, we are regulating the Inter- the clerk will report. 9 percent, even though after the stim- net. We are causing companies that are The legislative clerk read as follows: providing broadband to not have con- ulus package was passed all the pre- A bill (H.R. 674) to amend the Internal Rev- dictions were that maximum unem- trol of their networks but instead will enue Code of 1986 to repeal the imposition of now have to go before the FCC to jus- 3 percent withholding on certain payments ployment would be 8 percent and head- tify a new product or service that will made to vendors by government entities, to ed down. The recovery has been ane- give emergency access or quicker ac- modify the calculation of modified adjusted mic. In my home State of Arizona, still cess for users who need to have that gross income for purposes of determining eli- nearly half the homes are under water. kind of access. gibility for certain healthcare-related pro- In other words, they are worth less I hope the Senate will say the FCC grams, and for other purposes. than the mortgage payments the home- has extended beyond any authority Pending: owners are required to make.

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00035 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.053 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7264 CONGRESSIONAL RECORD — SENATE November 9, 2011 Working together with my colleague ideas. Our side is putting forth a mes- the coming debt crisis in this country. from Kentucky, Senator PAUL, and sage, we are putting forth a plan, and They are seeing it in Europe. We need Senator PORTMAN of Ohio, we have put we are willing to work with the other to be serious in our country and fix together a series of proposals and ideas side. The problem is, it is my under- these problems before we get to a crisis that have been generated both within standing the other side has walked situation. That is what our Republican this body and outside of this body, and away from the table. The other side is jobs plan does. It addresses it—a bal- we believe—we believe with the utmost unwilling to talk or to engage with us. anced budget amendment, tax reform, sincerity—there should be areas in this I have asked the President personally and a regulatory moratorium. We can’t proposal that we and our colleagues on to come to Capitol Hill and talk to us. keep heaping on new regulations that the other side of the aisle could come I have talked with the members of the put us at a competitive disadvantage to agreement on. We wish to see this supercommittee and have indicated we with the rest of the world. entire package. We think it is impor- are willing to work with them. Mr. MCCAIN. I want to go back a sec- tant in its entirety. There is no doubt We have some good ideas to create ond to the point the Senator from Ken- in our minds that when you look at the jobs, and some of these ideas the other tucky made. Congress cannot bind fu- 9-percent approval rating Members of side has already agreed to. Lowering ture Congresses. I was here at the time Congress have with the American peo- the corporate income tax. There are of Gramm-Rudman-Hollings, and ple, they certainly want to see us do Members of the other party who under- Gramm-Rudman-Hollings was one of something constructive as well. stand we need to be competitive with the most strict budgetary require- I guess I would ask my colleague the rest of the world. So lowering the ments ever passed by this body. It re- from Kentucky how he thinks we overall rates, simplifying the code, and quired automatic spending cuts in the should have put this package together, getting rid of some of these loopholes. event that budgets were exceeded and what we should have included, and These are things the President talks excess spending was, obviously, taking what haven’t we included. What is the about as he campaigns. But if he were place. But one Congress cannot bind fu- situation in his home State as far as a serious, he would come and talk to us. ture Congresses. So over time—over a need for this kind of legislation? Instead, what I have heard at his cam- very short period of time—the re- Before going to my friend from Ken- paign stops is Republicans are too stu- straints imposed on spending by tucky, let me add that I talk to large pid to understand his plan so he is Gramm-Rudman-Hollings went into and small businesspeople all over this going to break it up. Well, that may the mist and we went back to business country, and they all tell me the same get laughs at his campaign rallies, but as usual. thing. They all tell me the same thing. it isn’t getting anything done. I will be very candid with my col- They have no certainty as to what the I think the American people need to league. There are people who have le- future holds for them, which then know our jobs plan will create jobs, gitimate concerns about a balanced causes them not to invest or to create and we are willing to talk with the budget amendment and what it would jobs. Overseas, they are sitting on $1 President and with the other side. I take to get there and the Draconian trillion. Here in the United States they think we are willing to get things done, measures that may be entailed. But I are sitting on a $11⁄2 trillion and not in- and I think we have important things ask, what is the alternative? What is vesting because they do not know when in the bill that will do that. the alternative? Mortgaging our chil- the next regulatory act is going to Mr. MCCAIN. Maybe my friend from dren and our grandchildren’s future? I come down. They do not know when Kentucky and I can talk about many of believe currently that stands at a the next regulation is going to be the various provisions in this legisla- $44,000 debt for every man, woman and issued. They do not know when the tion. There are a lot of provisions that child in America. So why don’t we in next tax increase is going to occur. I saw on television the other day that were based on input from outside and this body have a debate over a balanced the owner and founder of Home Depot, inside this body. Some of this, by the budget amendment to the Constitution Kenneth Langone—and he also wrote a way, closely mirrors legislation which and find out exactly where people are? piece for the Wall Street Journal—said has already passed the House of Rep- At the same time, we have learned he couldn’t start Home Depot today. resentatives as well. over the years that Congresses cannot He couldn’t start it today because of We lead off with a requirement for a bind future Congresses, and so that is the environment that exists. Intended balanced budget amendment to the the problem with enacting automatic or not—and I know my colleagues on Constitution. I was here many years spending cuts, or whatever spending the other side of the aisle have the ago when the balanced budget amend- cuts or other measures we achieve most honorable of intentions—the re- ment failed by one vote. When you ask here. We cannot bind future Con- sult of all this regulation has been a the American people if government, gresses, appropriately. So the only way climate which has restrained invest- and the Congress, shouldn’t live under to address this issue is by amending ment, which has then restrained and the same constraints they have, they the Constitution of the United States, killed job creation and caused this are in total support of that. which I know the Senator from Ken- economy to be mired in the doldrums. I have seen polls—and I wonder if my tucky and I do not view as a measure Obviously, that has had a terrible im- friend from Kentucky has—that show taken lightly. I have been opposed to pact on every-day Americans. 80 to 90 percent of the American people most changes in the Constitution. I Before my colleague comments, I support a balanced budget amendment think our Founding Fathers got it first want to thank the Senator from to the Constitution when informed pretty well right. But this is an issue Kentucky for the key role he has what it is. At the very least we ought that I think has to be addressed. played in putting this package to- to put that up for a vote in this body. Mr. PAUL. Those who say balancing gether, and I hope this is the beginning Mr. PAUL. Yes. Routinely, decade the budget would be extreme, I think of our fight for passage of this legisla- after decade, polls show anywhere from what is extreme is a $1.5 trillion def- tion. 75 or 80 percent or more support a bal- icit. We are en route now, at the rate Mr. PAUL. I hope this is the begin- anced budget amendment. We need it, we are spending money, to a decade ning of a conversation with the other because we have shown ourselves to be within which the budget will be con- side and with the President. I told the fiscally irresponsible. Through the sumed by entitlements and interest. President personally that I want to years, we have had Gramm-Rudman- There will be nothing left for national help with the problems we have in our Hollings and we have had all different defense or for anything else if we keep country. We have 14 million people out types of restraints, but we disobey our on the same spending pattern. So we do of work, with 2 million additional peo- own rules. We say, oh, it is an emer- have to do something. ple out of work since this administra- gency. But then suddenly all the rou- What we have shown so far is that tion began. So we are serious about our tine spending we do becomes emer- fiscal restraint has been an utter fail- Republican jobs plan, and there can be gencies, and the debt gets bigger and ure up here. After Gramm-Rudman- some areas of some common interest. bigger. Hollings we had pay as you go. That There currently is a supercommittee Those in the debt commission say the was broken 700 times in the first 5 talking about some of these tax reform most predictable crisis in our history is years we were supposedly paying as

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00036 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.056 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7265 you go by simply saying it is an emer- this: three tax brackets, eliminate all basic parts of our economy: Tax re- gency. Every routine expenditure be- but charitable deductions—even put a form, necessary; lowering health care came an emergency and so we went ceiling on that—and home mortgage costs, absolutely critical; allowing us around it. So that is a good context for deductions, and then the American to explore for energy on our shores and the Republican jobs plan—that every- people would at least believe they are create jobs and economic opportunity; thing will be in the context of bal- being treated fairly. Today, they do being sure we are reducing the regula- ancing our budget. not believe they are being treated fair- tions that are strangling small busi- But then there are other important ly. And I am talking about middle-in- nesses. These are all structural reforms matters, such as tax reform. Histori- come Americans. we can and should do. By the way, cally, the one thing government can do I think statistics confirm that most there is bipartisan support for every to create jobs or to lessen unemploy- Americans believe there is a large dis- single one of those elements. ment is to lower the upper rate. Ken- parity between the wealthiest and the So I commend the Senator from Ari- nedy did it in the 1960s and unemploy- less well off in America. I would ask zona for raising these issues, for his ment was cut in half. Reagan lowered my colleague from Ohio to comment, passion for them, and the Senator from the top rate from 70 to 50 and unem- since he knows more about that than I Kentucky. I hope the Senate will give ployment was cut in half. Reagan low- do. us the opportunity to vote on this, and ered it again from 50 to 28 and unem- Mr. PORTMAN. The Senator from it should be a bipartisan vote because ployment was cut in half. And interest- Arizona is absolutely right, and I ap- so many of these issues are issues that ingly, as you cut the top rate, you preciate his passion on this issue. He transcend partisanship, and in each didn’t cut revenue. Revenue stayed at has the whole Senate focused on the case there are Democrats and Repub- 18 percent of GDP through all the low- idea of repatriating profits from over- licans who understand the need to ering of the top rate. seas back to America to invest in jobs move our economy forward by making What lowering the top rate does is it and growth, and he has now focused us these structural changes. unleashes economic growth. The other on the need to reform the Tax Code on Mr. MCCAIN. For just a minute, I side has this vision they are going to the individual side and on the cor- would like to discuss with the Senator hire people in government and some- porate side. from Kentucky and the Senator from how fix unemployment. You can hire On the individual side, as he talked Ohio that enhanced rescission or what hundreds of thousands of people and about, we have an incredibly complex used to be known as line item veto. you don’t put a dent in it. To cure un- Tax Code—thousands and thousands of The Senator from Ohio once had the employment, or lessen unemployment, pages. By lowering the rates and broad- misfortune—his reward will be in Heav- you need to have millions of people ening the base—getting rid of some of en, not here on Earth—of being the hired, and that can only be done in the this underbrush—we will create eco- head of the Office of Management and private sector. I think that is the dif- nomic growth. It is a necessary shot in Budget and saw these appropriations ference in the vision between our side the arm right now with over 9 percent bills come over, and many of them and their side. Our vision is unleashing unemployment. were that thick. Going through line by line, we find these special interests, the private sector, and theirs is to hire On the corporate side, right now we special deals we call porkbarrel a few more people to dig ditches and have a corporate rate that is the sec- projects which have no justification, fill them in. It is a different vision. ond highest in the world among all de- which were never debated, which were Mr. MCCAIN. Isn’t it a fact that veloped countries. The highest is Americans are not only very unhappy Japan, and they want to lower theirs. never discussed, which were never because of the economic condition we This means jobs are going overseas in- brought to the light of day except find ourselves in but also because they stead of staying here. By lowering the maybe occasionally, but certainly it perceive an inequity and an inequality rate, getting them down to the average contributed enormously to our debt and deficit. in our economy today? In other words, of these other countries, we will bring So he had the option of going to the they see financial institutions on Wall more investment back to this country. President of the United States and say- Mr. MCCAIN. What is the response to Street making record profits and pay- ing: Veto the whole bill and send it the suggestion of bringing the cor- ing record bonuses. They see large cor- back and it may be overridden or ac- porate tax rate down to 25 percent, porations that pay no income taxes— cept these pork-laden, big, thick appro- let’s say, because we say corporations none—zero. They see that and then see priations bills. themselves paying their taxes, the are taxed too much in America, yet at Isn’t that a dilemma we should not least of which may be withholding the same time we also find corpora- force the President of the United taxes or sales taxes or whatever taxes tions paying no taxes? States to have, that kind of Hobson’s they are still paying. It seems to me Mr. PORTMAN. By bringing the rate choice? that tax reform would address these in- down to 25 percent on a revenue-neu- Mr. PORTMAN. Absolutely. That is equities. tral basis, what we do is get rid of a lot one of the elements of this jobs bill. It I note that Senator PORTMAN from of the preferences, the exclusions, the was particularly tough on defense bills Ohio is here, and he knows this better credits, the tax deductions that enable because we have our national defense than anybody, having been, in his pre- companies right now to pay little or no at stake and we have our soldiers and vious incarnation, the head of the Of- taxes. We think everybody should be marines and sailors out there, and the fice of Management and Budget. Over paying taxes. We think everybody bill comes to the President of the the years, we have carved out loophole should be subject to a fair tax system. United States, and is he going to sign after loophole and have provided some We also think we shouldn’t have to it? If he doesn’t sign it, there is a risk with a better or special deal. It is a spend billions a year in complying with there will be at least a gap in funding; damning indictment of the Congress a Tax Code that is so complex. So in- if not, as you say, be overturned. So and the administration that we let it stead of hiring more tax lawyers, we there is a lot of pressure to sign it. happen, but it is what it is. So we now want people to get out there and hire What happened, the President signed have major corporations—I would cite more Americans to do the work—pro- these pieces of legislation with the ear- General Electric as an example—that ductive work—to get our economy marks in them, and we have more paid no taxes last year. An average cit- moving. spending than we should and spending izen—who doesn’t have a lobbyist here Tax reform is a way to give this is not going to the priorities. It is not in Washington and who can’t get a economy a shot in the arm right now. going to the national priorities. carveout or a special loophole for their It is one of many structural reforms So this legislation is simple. It says, small business—is paying these taxes. that is in this legislation that the Sen- back in the late 1990s, 1996, Clinton So how do we resolve that inequity? ator from Kentucky and the Senator signed a line-item veto bill. Constitu- It seems to me that is accomplished from Arizona have put together with tionally, it was questionable, and sure through tax reform. Give people a sim- me. It is very consistent with this idea enough the Supreme Court overturned plified Tax Code. The Senator from that America’s best days are ahead of it. Now we have come back with an- Ohio has some much better ideas about her, if we restructure some of these other way to do this so-called enhanced

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00037 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.057 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7266 CONGRESSIONAL RECORD — SENATE November 9, 2011 rescission, but it is basically a legisla- lutely. Because what we are doing own and come up with ideas that they tive line-item veto where Congress around here is not working and is add- think might be good for the economy. would have the right to be able to re- ing up to trillions of dollars of annual That is one reason we have—according view what the President rescinded. If deficits. to some statistics now—as much of a they didn’t act within a short period of Mr. MCCAIN. If the scenario takes cost on the economy from regulations time, it would be rescinded. The Con- place as the Senator from Kentucky as from taxes. gress could act to overturn the Presi- just pointed out, that all of a sudden Finally, it says when you come up dent. everything is decided by members of with something, it has to be the least We believe it is constitutional, meets the Appropriations Committee, then it burdensome alternative. If the EPA all the obligations that were set out in does deprive the other members of this had done this, for instance, in some of that Supreme Court case that over- body of their input into the entire the legislation that the Senator is con- turned the first line-item veto and yet process and takes the authority and re- cerned about, the Senator from Ken- puts the pressure on the Congress not sponsibility from 100 and puts it in the tucky, they would not be able to come to put this porkbarrel spending in, and hands of a few. That seems, to me, a up with huge new costs on business be- if they do, we would have the light of disservice to the people of Arizona cause they would have to come up with day shone on it and Congress would whom I represent. a cost-effective way to meet the poli- have to individually take up these line Mr. PAUL. I think the overriding cies set out by the Congress. They items, these porkbarrel projects. message—and I appreciate the com- don’t have to do that now. Who could We think this is a constructive way ments from the Senator from Ohio—is be against that? forward that is constitutional, that that we have a jobs plan and we have So these are specific items that are meets all the concerns that have been our ideas. There is overlap in our ideas within this bigger project of getting raised, and would help to get the spend- with some of the ideas from the other America back on track, increasing our ing down and to prioritize spending at side. jobs, dealing with the fact that Amer- a time when we have record deficits The message is, we are willing to ica’s competitiveness is at risk that and debt. talk to the other side. We are willing are commonsense, bipartisan ideas ev- Mr. MCCAIN. I would say to the Sen- to say these are some proposals, and eryone should be able to agree with. ator from Kentucky, the President let’s try to find areas of agreement. I again encourage the Senate to probably would veto some items we We think it is more important than a allow us to have a vote. Let’s encour- wouldn’t like vetoed because there are campaign right now. We think it is age a full debate on both sides of the some differences in philosophy between more important, the joblessness and aisle. Let’s have a bipartisan vote on ourselves and the President of the the economy, that we try to do some- it. Let’s show people whom, after all, United States. But I am willing to take thing about it. We are willing to come we are elected to represent that we can not only that risk but that penalty as- to the table. We are willing to bring come together as Republicans and sociated with trying to get elimination our ideas, we are willing to have a de- Democrats and deal with the real prob- of the porkbarrel spending. bate with the other side, and we want lems facing our economy. We have made some progress, I will to get solutions. We are not doing this Mr. MCCAIN. I see the Senator from admit, in the elimination of some of just to be partisan. We want to figure Washington is here, and I don’t want to the ‘‘earmarks,’’ but we have a long, out a way to make our economy better. encroach on her time. long way to go. Frankly, it is a disease Mr. PORTMAN. Absolutely. Let me I would just like to say we are going I have watched recede a bit over time give an example of where we could to spend a lot more time today on this and then it pops back up. Again, it is come together on something simple, issue and this proposal. The American something like the balanced budget and again it is something the Senator people want change in Washington. amendment—it needs to have a perma- from Arizona and the Senator from They want us to address the concerns nent fix. Kentucky have included in their legis- and problems they face, and we believe Mr. PAUL. The line-item veto, inter- lation. we have a great blueprint for moving estingly, that the Senator proposed Everybody knows the Federal regu- forward in that direction. As my and got to the floor in the form of a lators are putting more and more pres- friends from Ohio and Kentucky have bill separate from this has cosponsors sure on small businesses all around the said, we are eager to sit down with our from both parties. It does have bipar- country. We hear it every time we go colleagues on the other side of the aisle tisan support. Many on the other side home. I can’t think of a time I have and discuss at least some of these of the aisle see some of the waste. been home at a plant tour where some- which we think we can come to agree- There is no reason why we couldn’t body hasn’t raised with me a Federal ment on. Maybe our approval rating, if begin to work together on some of this. regulation that is causing them dif- we did so, could climb back up into But, once again, I get back to if the ficulty because it is increasing the cost double digits. President is going to go on the road of hiring somebody. I yield the floor. and call us too stupid to understand At a time of over 9 percent unem- AMENDMENT NO. 927 and his jobs plan has to be broken up, ployment, we have to do everything we Mrs. MURRAY. Mr. President, I have that is not a good way to get to a con- can to get this economy moving, and come to the floor this afternoon to dis- sensus. The President needs to come to one is to lessen that regulatory burden cuss the VOW to Hire Heroes Act, Capitol Hill and needs to talk with the and make sure it is smart. which is an amendment to help put our other side and work on these ideas. So one of the pieces of the legislation Nation’s veterans back to work that we Do we need a line-item veto and do we are promoting is to say to the Fed- will be voting on tomorrow, on the eve we need a balanced budget amendment? eral agencies: Go through a cost-ben- of Veterans Day. Do we need to do something different efit analysis, including looking at what The real meaning of Veterans Day is or just do the same? The problem with the impact is going to be on jobs. Who to remind ourselves to take care of just doing the same is we haven’t had a could be against that? That needs to be service-connected veterans and their budget in 2 or 3 years around here. The done not just in the so-called executive families. That is what this amendment appropriations bills are supposed to branch agencies but also in the inde- does. agree with the budget, but they can’t pendent agencies which are not subject We all realize, of course, this Cham- because there is no budget. There is a to these current cost-benefit rules. It is ber has had its share of disagreements rumor that the appropriations bill will more cost-benefit rules looking at jobs and discord lately, and it is no secret go to the conference committee be- but also making sure everybody has to that we are sharply divided on any tween the two Houses and they will ac- comply with it. number of economic and political tually airdrop in whole other appro- Then, when they come up with an issues that are facing average Ameri- priations bills. idea for a regulation, make sure it is cans right now. But this is one issue we Do we need more scrutiny? Do we consistent with the policy of the elect- should never be divided on. need a balanced budget amendment? ed representatives because too often we I have served on the Senate Veterans’ Do we need a line-item veto? Abso- will see the regulators go off on their Affairs Committee for over 16 years,

VerDate Mar 15 2010 02:04 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00038 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.058 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7267 and I can tell you that veterans have me the military spent incalculable eration of veterans. While there are never been a partisan issue. We have time getting them the skills to do their lots of factors that contribute to those all made a promise to those who signed job in the field but very little time challenges, failure to give our veterans up to serve, and we all need to keep it. teaching them how to transition the the self-confidence, the financial secu- That is why I have been so pleased to skills they have learned into the work- rity, and dignity that a job provides work to help put this amendment to- place when they come home. The prob- often plays a very crucial role. gether in a comprehensive and bipar- lems were sometimes complicated and On this Veterans Day we need to re- tisan manner. sometimes simple. Most importantly, double our efforts to avoid the mis- This amendment brings all ideas to though, they were preventable. But the takes that have cost our veterans dear- the table, Democratic and Republican, more I relayed the concerns of our ly and have weighed on the collective Senate and House, those from the States’ unemployed veterans to Fed- conscience of this Nation. We can do President and from Members of Con- eral Government officials for answers, that agreeing to this amendment, but gress, and it uses all those ideas to ad- the more I realized there were none. It also by looking back to a time when we dress one of the most daunting and im- became clear that for too long we have stepped up to meet the promises we mediate problems facing our Nation’s invested billions of dollars in training made to our veterans. veterans—finding work. our young men and women with the I mentioned on the Senate floor On this Veterans Day, after almost 10 skills to protect our Nation only to ig- many times that my father was a vet- years of war, nearly 1 million Amer- nore them once they leave the mili- eran of World War II. But what I do not ican veterans will be unemployed. It is tary. For too long at the end of their always talk about is the fact that when a crisis that faces nearly 13 million career we patted our veterans on the he came home from war, he came home other Americans. But for our veterans, back for their service and then pushed to opportunity—first at college and many of the barriers to employment them out into the job market—alone. then to a job, a job that gave him are unique. That is why in May of this year, as pride, a job that helped him and my That is because those who have worn chairman of the Senate Veterans’ Af- mother raise seven children who have our Nation’s uniform, and particularly fairs Committee, I introduced a bipar- gone on to support families of their for those young veterans who spent the tisan veterans employment bill to ease own. This is the legacy of opportunity last decade being shuttled back and the transition from the battlefield to we have to live up to for our Nation’s forth to war zones half a world away, the working world. It is a bill that will veterans. The responsibility we have on the road home isn’t always smooth. allow our men and women in uniform our shoulders does not end on the bat- The redtape is often long, and the tran- to capitalize on their service while also tlefield. It does not end after the pa- sition from the battlefield to the work- making sure the American people cap- rades on Friday. In fact, it does not place is never easy. italize on the investment we have made end. I urge my colleagues to put aside our Too often today our veterans are in them. being left behind by their peers who For the first time it requires broad differences, to come together and meet didn’t make the same sacrifices for job skills training for every service- the challenges of putting our Nation’s veterans to work. their Nation at a critical time in their member as they leave the military as I yield the floor. lives. Too often they don’t realize the part of the military’s Transition As- The PRESIDING OFFICER (Mr. skills they possess and their value in sistance Program. It allows service- MERKLEY). The Senator from Wis- the workplace is real. Too often our members to begin the Federal employ- consin. veterans are not finding open doors to ment process prior to separation in Mr. JOHNSON of Wisconsin. I ask to new opportunities in their commu- order to facilitate a truly seamless be recognized for not more than 10 min- nities. transition from the military to jobs in utes. But as those who know the character our government, and it requires the The PRESIDING OFFICER. Without and experience of our veterans under- Department of Labor to take a hard objection, it is so ordered. stand well, that shouldn’t be the case. look at what military skills and train- AMENDMENT NO. 928 Our veterans have the leadership abil- ing should be translatable into the ci- Mr. JOHNSON of Wisconsin. Mr. ity, discipline, and technical skills to vilian sector in order to make it sim- President, I rise to speak in support of not only find work but to excel in the pler for our veterans to get the licenses the McCain amendment, which is Jobs economy of the 21st century. That is and certifications they need. Through Growth Act. I do not think why, 2 years ago, I began an effort to All of these are substantial steps to there is any question that the No. 1 so- find out why, despite all the talent and put our veterans to work. Today they lution to the deep financial hole in drive I know our veterans possess, this are being combined with the other which we find ourselves in this country problem persists. great ideas in this comprehensive today is in economic growth. The fact To get to the crux of this problem, I amendment that is now before the Sen- is, we do find ourselves in a very deep knew I had to hear firsthand from ate, including an idea championed by financial hole. Within a day or two, or those veterans who were struggling to my House counterpart, Chairman MIL- certainly within the next week, we will find work. So I crisscrossed my home LER, that will ease the employment surpass the $15 trillion landmark in State of Washington and communities struggle of our older veterans by pro- this country. That would be a problem, large and small, at worker retraining viding them with additional education $15 trillion worth of debt, if our econ- programs, in VA facilities, and in vet- benefits so they can train for today’s omy was $100 trillion large, but it is erans halls. I sat down with veterans high-demand jobs, and an idea that has not. It is about $15 trillion large. So themselves to talk about the road- been championed by President Obama, our debt-to-equity ratio has now blocks they face. What I heard was Senator BAUCUS, and many others that reached 100 percent, which is a very heartbreaking and frustrating. provides a tax credit for employers who dangerous metric. I heard from veterans who said they hire veterans. In order to understand how that af- no longer write that they are a veteran With this amendment we are taking fects our economy I ask people to un- on their resume because of the stigma a huge step forward in rethinking the derstand or think about how their own they believe employers attach to the way we treat our men and women in personal economy is affected if they invisible wounds of war. uniform after they leave the military. are in debt, too deep into personal I heard from medics who return home For many of us, particularly those who debt. The fact is, when you are in debt from treating battlefield wounds and grew up with the Vietnam war, we are over your head you simply cannot in- can’t get a certification to be an EMT also taking steps to avoid the mistakes crease your consumption because any or even to drive an ambulance. I spoke of the past, mistakes that I believe we extra money you have, just beyond the with veterans who said many employ- stand perilously close to repeating. basics, is spent servicing that debt. ers had trouble understanding the Every day we read about sky- The exact same dynamic happens vernacular they used to describe their rocketing suicide statistics, substan- with our Nation. We find ourselves in experiences in an interview or on their tial abuse problems, and even rising way too much debt. Unfortunately, resume. I talked to veterans who told homelessness among the post-9/11 gen- there is no end in sight. The last 3

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00039 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.060 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7268 CONGRESSIONAL RECORD — SENATE November 9, 2011 years we added $4 trillion to our Na- budgets will add trillions. If we only President Obama took office, which tion’s debt, and the prospect for this average 2.5 percent growth, that will would be 7.8 percent. It is a reasonable year is that we will add another $1 tril- add $3 trillion to our debt and deficit proposal, one I hope can gain bipar- lion. During President Obama’s term over the next 10 years. tisan support. we will have added $5 trillion to our What do global investors, what do I have to believe every Member of Nation’s debt. This scares consumers, American investors take a look at Congress, like me, is visited daily by and it scares business investors as well. when they look at the U.S. economy? If businesses in their district and in their We all recognize when the government we are going to be investing in busi- State. They are coming to Washington gets into this much debt and spends so ness, if we are going to grow our econ- and calling us on the phone and de- much money that it does not have, omy. If we look around the world and scribing the harm that President eventually it will have to take from all say where are there economies grow- Obama’s regulatory agencies are in- of us—either in the form of inflation or ing, it is not the United States. It is flicting on their ability to create jobs. in the form of taxes. China, it is India, it is in places like I urge all of my colleague to support We are simply not coming to grips Brazil. Strike 1. the very sensible legislation, the Jobs with the problem. I like to put things Take a look at the tax environment Through Growth Act. into historical perspective as we talk and look at the United States, with one I yield the floor. I suggest the ab- about supposedly cutting our budgets. of the highest tax rates in the world, at sence of a quorum. Ten years ago, in 2001, our Nation spent 35 percent, and strike 2. The PRESIDING OFFICER. The $1.9 trillion. This year we spent $3.6 Then we look at the regulatory envi- clerk will call the roll. trillion. We doubled spending in just 10 ronment and we are going to realize, The bill clerk proceeded to call the years. The debate in which we are en- according to President Obama’s own roll. gaged right now is whether, according Small Business Administration, that The PRESIDING OFFICER. The Sen- to President Obama’s budget, 10 years the cost of complying with Federal reg- ator from New Jersey. in the future we will spend $5.7 trillion ulations is $1.75 trillion. Think about Mr. MENENDEZ. Mr. President, I ask or, as the House budget calls for, $4.7 that. Put that in perspective. That is a unanimous consent that the order for trillion. number that is larger than all but the quorum call be rescinded. Let’s take a look at 10-year spending. eight economies in the world. It is 12 The PRESIDING OFFICER. Without In the last 10 years we spent $28 tril- percent the size of our economy. That objection, it is so ordered. lion. Again, the debate is whether in is what we burden our job creators with AMENDMENT NO. 927 the next 10 years we spend $46 trillion, each and every single year. Strike 3. Mr. MENENDEZ. Mr. President, this as President Obama budgeted, or We need a growth agenda. We need to Friday we will celebrate Veterans Day, whether we would spend only $40 tril- recognize that America needs to be an and this year we will also be cele- lion. attractive place for business expansion brating Military Families Month. It is I don’t care how we look at it, $40 or and job creation. The Jobs Through time to recommit ourselves to helping $46 trillion is not a cut in comparison Growth Act recognizes that and it uti- every military family, as the First to $28 trillion. Unfortunately, the lizes pieces of legislation that are al- Lady and Dr. Biden are doing with a supercommittee that is charged with ready available to actually address the program called Joining Forces to ad- finding $1.2 trillion worth of savings is problem. We need a credible plan to re- dress the unique needs of those who at an impasse, and it is at an impasse strain the growth in government. serve and the needs of their families. because it looks like my colleagues on As I pointed out earlier, that is all We as a Congress and as a nation the other side of the aisle have walked we are doing. We are not cutting gov- need to do exactly that. We need to out. I am afraid they simply do not ernment, we are just restraining the reach across the aisle. We need to put want a deal because President Obama growth in government. We absolutely aside our differences and join forces. is already in reelection mode, and he need dramatic, significant tax reform. We need to help businesses help vet- does not want a result so he can run Our marginal tax rates are too high, erans and their spouses build careers. against a do-nothing Congress. our Tax Code is 70,000 pages long and We need to make sure schools are doing I am one Senator who came here will- costs $200 billion to $300 billion to com- all they can to help military children. ing to work with anybody willing to ply with. We need to utilize our God- We need to promote community in- acknowledge the problem and who is given natural resources in this coun- volvement by asking all of us to do willing to work with me, work with our try. We need an energy utilization pol- what we can to help military families side to seriously address the problem. icy that will create hundreds of thou- in our local communities. But there is That is exactly what the six Members, sands if not millions of jobs over the more we can and should do to honor the Republicans on that committee, next decade or two. our heroes. were trying to do. We need free trade. It must be fair, Honoring our heroes means providing We all recognize the No. 1 solution to but we need to recognize as these bil- jobs and job training and every job op- our debt and deficit crisis is economic lions of people around the world seek portunity possible to unemployed vet- growth. What is holding back growth? to improve their lives and develop erans in my State of New Jersey, where It really is the high level of uncer- their economies, it actually offers us a we have over 450,000 veterans, 12 per- tainty, the lack of confidence. I say to phenomenal market opportunity. We cent of them unemployed. That is why a great extent that lack of confidence cannot be afraid of that. We need to I am proud to be a cosponsor of the and high level of uncertainty was embrace it. We need to understand that VOW to Hire Heroes Act. caused by President Obama’s agenda. we do not have a choice whether we are Every year, 160,000 Active-Duty serv- There is no doubt about it. He came going to compete in this world. We icemembers and 110,000 National into office in tough economic cir- must compete, and we are certainly ca- Guardsmen and reservists come home. cumstances, but his policies have made pable. We have the finest, most produc- When they transition to civilian life the situation far worse. They have tive workers in the world. and are looking for options to get back moved us 180 degrees in the wrong di- Finally, we absolutely need regu- to work at home, they need to know rection. latory reform. Part of the Jobs that someone will be there to help I mentioned the $15 trillion worth of Through Growth Act is a bill I intro- them, that businesses will help them to debt. President Obama’s budget would duced a couple of months ago called start new careers or continue where have added $12 trillion, but that under- the Regulation Moratorium and Jobs they left off. We should be giving busi- states the problem because we under- Preservation Act of 2011. It is a pretty nesses a tax credit for hiring a return- estimate the cost of health care. That simple bill. It basically says until our ing veteran and giving them more of a will add trillions of dollars as more em- economy gets back on its feet again we tax credit if they hire a wounded vet- ployers drop coverage and people go on will stop issuing new rules and new eran. the exchanges at highly subsidized regulations that harm economic I would like to see American busi- rates. The fact we are not achieving growth until the unemployment rate nesses pledge to hire 100,000 veterans or the projected growth rates in those drops below the level it was when their spouses by the end of next year. I

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00040 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.063 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7269 don’t think that is asking too much. I hire veterans and more for businesses the Residential Mortgage Market Pri- hope my colleagues don’t think that is that hire disabled veterans. The credit vatization and Standardization Act. I too much either. I don’t think it is too for unemployed veterans expired at the wish to speak briefly on this bill that much to ask Congress—both parties, end of 2010. This provision is essen- deals with the pressing issue that I without the politics, in a bipartisan ef- tially a work opportunity tax credit for know the Senator from Arizona prob- fort—to honor our veterans by passing hiring vets, a credit up to $2,400 for ably as much as anybody in the Senate a veterans jobs bill the President can short-term unemployed and up to $5,600 has spoken about and has championed sign into law. for long-term unemployed and an in- for many years. As we approach Veterans Day, as our creased credit of up to $9,600 for hiring The current dynamic permit con- last troops come home from Iraq, as unemployed wounded veterans. servatorship is not sustainable with our military presence around the world I fully support and believe in this Fannie and Freddie and the GSEs as enters a post-Iraq era, we need to com- bill. We made a promise to veterans, they are today. There has been discus- mit ourselves as a nation to helping and it is a promise we must keep. So sion about various things happening every one of our men and women in while I believe reducing the deficit is a with these organizations. The FHFA, uniform, particularly in these hard critical issue, we cannot and should which actually regulates Freddie Mac economic times. This year, with the not balance the budget on the backs of and Fannie Mae, is begging Congress unemployment rate for veterans at al- those who have served. Veterans are for direction but, in their words, is most 12 percent nationally, as it is in not bankrupting America, they are only getting mixed signals. Today, we New Jersey, with nearly 1 million un- protecting it. It is not veterans pro- introduced a bill to give a very clear employed veterans nationwide, I would grams, health care, or services that direction as to what ought to happen hope we can find bipartisan support for should be cut. to these major GSEs. something we should all be able to I said it before, and I will say it Together, they sit atop $5 trillion in agree on; that is, jobs for veterans. again: A grateful nation not only hon- obligations, plus hundreds of thousands That is the VOW to Hire Veterans Act. ors its heroes once a year on Veterans of our REO properties—in other words, properties they have taken back and Veterans cannot and should not have Day or Memorial Day, but it better be are now overseeing throughout Amer- to wait for the help they deserve. No able to look every veteran in the eye ica. With a $5 trillion book, any mis- delays, no filibusters, no politics—just when he or she comes home from serv- take they make is very expensive, and a bill for the President to sign and help ice and say: We meant what we said, obviously the taxpayers of this country for our Nation’s veterans now. To me, and we will keep our promise. know full well that billions of dollars that is about fairness and it is about We must be prepared to deliver on continue to flow in these organizations keeping our promise to our veterans. that promise. I certainly am. I come to I think we can always do better for this Chamber on behalf of every New to keep them afloat. Yet these organi- zations today are lameduck organiza- our veterans and their families, and Jerseyan to say to every man and tions with no clear guidance on their every veteran deserves better. Our duty woman who has served in uniform and future. They really have no idea what to them is not just remembering their to the more than 450,000 veterans in my the future holds. The organizations service. It is not just saying ‘‘thank home State of New Jersey that we will themselves basically are treading you’’ once or twice a year on Veterans keep working for fairness for every vet- water. Day or Memorial Day—and we cer- eran and their family. There will al- ways be political obstacles in our way, Over the most recent decade, Fannie tainly should march in a Veterans Day and Freddie became corporate welfare parade or go to a Memorial Day observ- but we will fight the good fight to keep our promise to you, as you have served schemes for mortgage banks. There is ance. We should do those things. This no question that what was happening is also about delivering on the promise us. Be assured that you have the re- spect and thanks of a grateful nation was the governance balance sheet was of a grateful nation every day. It helping fund corporate welfare pro- means providing the health care and for the sacrifices you and your families have made. To me, that thanks is ulti- grams or basically mortgage brokers services veterans need when they come could sell off to Fannie and Freddie home and helping them transition back mately demonstrated not by what we say but by how we act. mortgages they had put in place and into the workforce. have them guaranteed. Our brave men and women did not May God bless our troops, and may this opportunity be an example of our As they raced to the bottom to lower wait to sign up to serve their country, guarantee fees so they could take a and they should not have to wait to get willingness to come together on behalf of those who wear the uniform and bigger market share for the biggest the benefits they earned defending it. mortgage originators, they actually They should not have to come home serve the Nation and have the grati- tude of a grateful country. helped fuel the housing bubble that has only to stand on the unemployment led us to where we are today. There is line after putting themselves on the I yield the floor. Mr. MCCAIN. Mr. President, what is no question about it. line serving their Nation. That is why the parliamentary situation? So many people talk about Fannie I am proud to have cosponsored a good, The PRESIDING OFFICER. The Sen- and Freddie and say that without solid, bipartisan jobs package to help ator’s second-degree amendment is the them, we would not have affordability our military men and women transi- pending question. in housing. Well, at the end of the day, tion from their work defending our Na- Mr. MCCAIN. That is the pending Fannie and Freddie don’t make hous- tion’s freedoms to civilian work re- business before the Senate? ing more affordable. What they do is building our Nation’s economy. It The PRESIDING OFFICER. It is the simply make interest rates too low. would ensure that disabled veterans pending question. What that actually does is push up who have exhausted their unemploy- Mr. MCCAIN. Is there any unanimous home prices. That is the exact equation ment benefits get the training and re- consent on speakers? that occurs in this process. Housing af- habilitation they need, the counseling The PRESIDING OFFICER. There is fordability is determined by your they need, the vocational rehabilita- not. monthly mortgage payment. Fannie tion and employment benefits they Mr. MCCAIN. Mr. President, I will and Freddie make interest rates cheap, need, and job assistance tailored to a continue to discuss the pending amend- but the price of housing ends up being 21st-century job market. ment before the Senate, and I would more expensive as a result of that. So, It establishes a competitive grant yield such time, without yielding the in effect, the taxpayer is suddenly on program for nonprofits that provide floor, as the Senator from Tennessee the hook for losses when these housing mentoring and training programs for may use. prices are pushed up, and the fact is we veterans. It allows employers to be The PRESIDING OFFICER. Without end up having a bubble like we have paid for providing on-the-job training objection, it is so ordered. had. to veterans. The Senator from Tennessee. The market can and will take over It would provide returning heroes RESIDENTIAL MORTGAGE MARKET the functions of mortgage credit risk if and wounded warriors work oppor- Mr. CORKER. Mr. President, I rise to we make the transition in an intel- tunity tax credits for businesses that speak about a bill we introduced called ligent way, and that is what this bill

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00041 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.065 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7270 CONGRESSIONAL RECORD — SENATE November 9, 2011 does. Our plan phases out Fannie and and talk with us about things that look at the payment they are going to Freddie over 10 years, but it does so in they think might enhance this bill, we make. When you have artificially low a way that allows for feedback from are open to that. But we believe at this rates, what happens? The price of hous- the markets. Gradually reducing the time, a year and a half after Dodd- ing actually goes up, so we end up in a guarantee share of new mortgage- Frank passed, it is time for us to actu- situation where we have this bubble backed securities allows us to see the ally begin looking at a real way to and prices drop tremendously, and then market’s price credit risk. We also add phase down Fannie’s and Freddie’s in- what happens? The taxpayer ends up transparency to the market by making volvement in the marketplace. I hope bearing the brunt of it. the valuable data at the GSEs publicly Republicans and Democrats will join I could not agree more with the Sen- available. with us and try to make this bill better ator from Arizona, who has always One of the things that has happened if they wish to do that, but certainly taken on tough issues, and maybe I am in both Fannie and Freddie through move us in a direction of doing some- responding longer than he wants me to. the years is that they have developed, thing that is thoughtful and will move This is one of those issues where I obviously, more expertise than any en- us along toward a private market in know that many people back home— tities in the country because they, in residential finance. candidly, there is a whole industry essence, have been almost monopolies Thank you very much. I yield the that is built around this, and I know a in this process. So what we would like floor. lot of times people don’t want to take to do is make that data publicly avail- The PRESIDING OFFICER. The Sen- on something, don’t want to change able to folks who will be doing this on ator from Arizona. something like that because they know the private side. Mr. MCCAIN. Mr. President, I thank it is tough back home. I am glad the Uniform documents managing the my colleague from Tennessee. As Sen- Senator from Arizona has championed servicing process will give investors ator CORKER knows, we had an amend- this issue the way he has. As he men- and homeowners alike certainty in how ment on the Dodd-Frank bill to do tioned, we have done a lot of work on they will be treated by their service. away with Fannie and Freddie over a 5- it also. I think this is a sensible bill This is part of the plumbing of a sys- year period. I think it is obvious that that will allow our country to get back tem that needs to be addressed, and our the Senator from Tennessee has done a where it needs to be. I know the Ameri- plan does that. lot of homework and in-depth examina- cans the Senator from Arizona so well In other words, this plan not only tion of this issue. But I think the Sen- represents and cares so deeply about phases down Fannie and Freddie over a ator from Tennessee would agree that these transgressions on our citizens—I 10-year period through a process that what went on with Fannie and Freddie know they will support this if we will gives market signals so we can under- is one of the worst crimes inflicted on allow this type of legislation to come stand what is happening in the market- the American people all during the to the floor and be voted on. place as it is occurring, but it also cre- 1990s and well into 2000 and which was Mr. MCCAIN. I think the Senator ates a mechanism for private investors a major contributor to the housing col- from Tennessee—and I want to get to come back into the market. Ten lapse, which then triggered the finan- back to the jobs bill—but I think the years from now, under our plan, we will cial collapse which we still haven’t re- Senator from Tennessee would agree, have a housing finance system based covered from. I wonder if the Senator as long as Fannie and Freddie are in more on market fundamentals free of from Tennessee wishes to elaborate. existence and have the opportunity to taxpayer risk and more able to price Mr. CORKER. Well, I don’t think behave in a manner that they did in credit appropriately. there is any question. I know the Sen- the past, we risk another housing bub- The idea that the private market ator from Arizona has been a reformer ble followed by a housing collapse. cannot price credit risk is a total red all of his life. What we find in this body That is why I think the Senator’s pro- herring. The biggest risk in a 30-year is we end up having a corporate welfare posal is something that deserves our fixed rate mortgage is the prepayment system built around many of the risk. This is called convexity in bond attention and that of the country, so things we do here. As much as I hate to market parlance. The private market we don’t have a repetition of the pain say it, both sides of the aisle through has already figured this out. We have that the people in Tennessee and Ari- homeowners throughout our country time empowered this organization to zona are experiencing today. Nearly half the homes in my home who constantly prepay mortgages and be what it is. We have built an industry State of Arizona are under water. They the market has figured out a way to in our country around ensuring that are worth less than their mortgage price this. So private lenders can and the status quo stays in place. It is un- payments. As long as that is the case, will price credit risk. We have just fortunate. As the Senator from Arizona been very accustomed to the govern- knows, as well or better than anybody it is going to be very difficult to see a ment selling this too cheaply, but the in this body, the taxpayers are bearing way for a strong economic recovery to market can easily price this. All we the brunt of this. To me, it is way past take place. I think phasing Fannie and need to do is put those mechanisms in time for us to deal with this. Freddie out is probably one of the key place that allow the private sector to I know many people say, Well, in the elements in bringing about not only be able to do that. height of the housing crisis, this is not beneficial change—and a number of It is time to move beyond Fannie and the time. But the fact is, the way this other things have to happen too—but Freddie. We cannot pretend this prob- bill is crafted—and it sounds as though to prevent the kind of catastrophe that lem away. Our plan is thoughtful, and the amendment of the Senator from was visited on us in 2008. it will earn back private capital over Arizona, which I remember supporting Mr. CORKER. It is interesting, when time. strongly—generally would have phased we have a bubble that is taking place, We have offered a piece of legislation out Fannie Mae and Freddie Mac over a lot of times the private sector be- that we think is something that can re- a period of time. I think we have gone comes very concerned that a bubble is ceive bipartisan support. It allows to tremendous extremes to phase this developing and they begin to slow down Fannie and Freddie to be phased out out in a way that makes sense and al- the process. They begin to see that, over time. It allows us to see market lows the private sector to come back. If wait a minute, there is a lot of risk signals as they are occurring. It al- we think about the type of finance that here, it is getting pretty frothy. The lows—and the Presiding Officer and I takes place in this country around all housing prices in Arizona and Cali- know because we have worked on this types of complexities, there is no rea- fornia and other places are getting aw- and looked at these things in the Bank- son, as long as we create the proper fully high. Maybe we should be cutting ing Committee itself—it allows us to structure for the TBA market for the back. But as long as there is a govern- actually put in place those mechanisms private market to function, there is no ment entity on the other side of that that will allow the private sector to reason that the private sector cannot that is going to take all the risk and come in and backfill as the guarantee do this on its own. they can dump it off to them—all it is continues to diminish over time. It is amazing, when we think about is a machine, and the more they do, the I am offering this bill hopefully to be what has happened with low interest more money they make. That is what a marker. If people want to change it rates. Most homeowners in our country is missing in this current formula.

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00042 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.066 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7271 There is no gauge there to slow the lation as part of that jobs bill, we Re- tiveness for American companies. Note that process when the bubble is becoming publicans have a jobs bill. I know my closing loopholes may well raise the average overheated. That is one of the huge friends on the other side of the Capitol corporate rate, on which Democrats and lib- erals have focused, but it is the marginal tax contributing factors that I know the also agree wholeheartedly with the ma- rate that drives the economy. . . . Senator has talked about a great deal jority of what we are proposing today. The GOP Jobs Plan also includes reducing to what we saw. The difference between our plan and the top personal, individual income tax rate Candidly, the reason the Senator is theirs is that we want to create jobs to 25% as well, in return for closing loop- offering this jobs bill today is because through growth and they want to cre- holes. The Ryan budget already passed by we have been through such a financial ate jobs through government spending, the House would apply that rate to family crisis and it has brought our country to through spending and borrowing and incomes over $100,000, with a 10% rate apply- its knees. On top of that, we have had ing to incomes below. Those rate reductions taxing. That doesn’t work. What they would powerfully boost incentives as well, as a tremendous amount of regulation have proposed amounts to nothing proven by the dramatic response to the that has enhanced the slowdown even more than another stimulus bill, and Reagan tax rate reductions in the 1980s. . . . more. But the fact is, I would say to we saw that movie before. It added to Another component of the plan would the Senator from Arizona, he might our debt and our deficit, and we lost eliminate the double taxation of U.S. cor- not be offering this piece of legislation jobs. porate profits earned abroad by the U.S. that he has done such a great job lead- Today, my colleagues and I are put- ‘‘worldwide’’ corporate tax code, which adds ing on today had it not been for this U.S. taxes on top of the taxes on foreign ting forth a plan to create jobs through profits by the host country. The GOP plan bubble that was created. He might not sound policies. Economic growth is a calls for adopting the ‘‘territorial’’ tax code even be here today. We might be talk- fundamental part of long-term, sus- of most of our international competitors, ing about a totally different subject on tainable job creation, and that is what which allows profits to be taxed in the coun- the Senate floor. our plan offers the American people. try where they are earned, and not again I thank the Senator for his leader- I wish to quote from an article in when they are brought home. That would ship and for his time, and I yield the Forbes magazine by Peter Ferrara enti- unlock for reinvestment in the U.S. the $1.4 floor. trillion in American corporate profits earned tled ‘‘The GOP Jobs Plan Vs. overseas that remain parked there to avoid Mr. MCCAIN. I thank the Senator Obama’s.’’ from Tennessee, and he also has been U.S. double taxation. Senate Republicans have taken the lead in The GOP Jobs Plan also recognizes the one who is more than willing to take proposing a jobs plan alternative to Presi- enormous problem of excessive, runaway reg- on the tough challenges and issues we dent Obama’s in the form of the Jobs ulation, which increases the cost of produc- face, with a commitment to a biparti- Through Growth Act, led by Senators John tion, and so further discourages it. Reducing sanship that I think we all need. I McCain, Rand Paul of Kentucky, and Rob such costs would consequently increase pro- thank the Senator from Tennessee. Portman of Ohio. Republicans are remark- duction, economic growth, and jobs. (Mrs. HAGAN assumed the chair.) ably unified behind these economic and jobs Step one in the plan to reduce such regu- Mr. MCCAIN. Madam President, I growth ideas, with House Republicans having latory burdens is to repeal Obamacare, with wish to inform my colleagues that I already long supported or even passed sev- its employer mandate adding to the cost of have a lot to say about this jobs bill. eral components of that plan. each job by requiring employers to buy more The 28 components of their program add up expensive, politically driven health insur- There is no unanimous consent agree- ance coverage for every employee. That re- ment. I believe this is of transcendent to exciting prospects for finally sparking the long overdue economic recovery, based on peal would also reduce future taxes and importance. I see the Senator from proven economic logic, and proven experi- spending by trillions as well. Minnesota here. I apologize ahead of ence concerning what works in the real Further critical relief would result from time, but we only have until tomorrow world. Most important are the proposals for the GOP Jobs Plan plank to repeal Dodd- morning to address this issue. This is a both corporate and individual tax reform, Frank, which is threatening to squelch cred- compelling issue for this Nation. I in- closing loopholes in return for reducing the it for businesses and consumers essential to rates. jobs and recovery. The GOP proposal cites tend to talk for a fairly extended pe- research showing that higher costs for finan- riod of time. Lower marginal tax rates are the key to providing the necessary incentives for eco- cial services resulting from Dodd-Frank For the benefit of my colleagues, this would cost the economy nearly 5 million jobs amendment is identical to the Jobs nomic growth and prosperity. The marginal tax rate is the rate on the next dollar to be by 2015. Another critical area of overregulation is Through Growth Act which was intro- earned from any investment, enterprise, or energy. The Republican program would re- duced on October 17. I am pleased productive activity. That is the key because quire the Interior Department to move for- about joining most of my Republican it determines how much the producer is al- colleagues—and I wish to highlight the ward in order to free up leasing and develop- lowed to keep out of the next unit of what he ment of drilling on public lands onshore. It hard work done by my colleagues Sen- or she produces. also eliminates EPA foot dragging on air ators PAUL and PORTMAN in putting At a 50-percent marginal tax rate, the pro- permits necessary for offshore drilling, and this legislation together. In fact, I wish ducer can keep only half of any increased removes EPA authority for unnecessary and to thank all of the Senators, and some production. If that rate is reduced to 25 per- burdensome greenhouse gas regulation alto- of them bipartisan, who put this jobs cent, the portion the producer can keep gether. This deregulation would ensure a grows by 50 percent, from one half to three steady supply of low cost energy, essential to bill together. It requires a lot of discus- fourths. That powerfully increases the incen- sion. There are issues of transcendent booming economic growth. tives for more productive activity, such as Also in the proposal is the REINS (Regula- importance. savings, investment, starting new busi- tions from the Executive In Need of Scru- I don’t have to tell any American nesses, expanding businesses, creating jobs, tiny) Act, which would require Congressional how difficult our economic times are, entrepreneurship, and work. approval of all major federal regulations im- how slow the recovery has been, if at The Republican Jobs Plan involves closing posing more than $100 million a year in all, the risk of further recession, and it the special interest loopholes that enable costs. This will reestablish the original Con- is time we did something different. I Obama corporate cronies such as General gressional check on Executive power, and would point out to my colleagues that Electric to get away with paying no taxes on democratic accountability for regulatory $14 billion in corporate profits, in return for burdens, so politicians can no longer hide be- for 2 years the other party had control reducing rates to internationally competi- of this body and had control of the hind faceless bureaucrats to evade public tive levels. The U.S. suffers virtually the scrutiny for regulatory drains on our free- House of Representatives—for 2 years, highest corporate tax rate in the industri- dom and prosperity. This would provide an until the 2010 election. During that pe- alized world, nearly 40 percent, with a 35 per- important solution to excessive regulatory riod of time, we passed a stimulus bill, cent federal rate, and another nearly 5 per- burdens and costs across the board. we passed health care reform, we cent in state corporate rates on average. The Tea Party will favor the plan’s plank passed other big spending bills, all on Even Communist China enjoys a 25% cor- for a Balanced Budget Amendment to the the promise that the American econ- porate rate. In the supposedly mostly social- Constitution, which would include necessary omy would recover. It didn’t. In fact, ist European Union, the corporate rate on tax and spending limitations in the Constitu- average is even lower than that. In formerly tion. Also included is a statutory line item by any measurement, things are far socialist Canada, the federal corporate rate veto, giving the President more power to cut worse than they were in January of is 16.5%, going down to 15% next year. spending. Reduced government spending, 2009. The GOP Plan would reduce the federal deficits and debt will reduce the government As the President has a jobs bill and 35% rate to 25%, which is the minimum re- drain on resources in the private economy the majority leader has put forth legis- duction to restore international competi- needed to create jobs and growth.

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00043 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.068 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7272 CONGRESSIONAL RECORD — SENATE November 9, 2011 Finally, the plan even includes a provision necessary for permanent jobs. That was just In 2009, the U.S. was ranked No. 6. It was for free trade, giving the President renewed proved by the failure of this year’s tem- fourth in 2008 and third in 2007. fast track authority to negotiate further porary payroll tax cut to promote the long These are not Republican documents. trade agreements eliminating foreign trade overdue recovery. This is not a Republican assessment. barriers and opening new markets for Amer- But even worse than the 2009 stimulus is This is the assessment according to the ican goods. For nearly 3 years, President that this current half stimulus echo is ac- Obama failed to even send to Congress free companied by Obama’s proposal for $1.5 tril- World Bank: that doing business in the trade agreements President Bush had nego- lion in permanent tax increases. That now United States of America has gone tiated with South Korea, Colombia and Pan- includes Obama’s support for a 5% million- from the third best country to do busi- ama. But that didn’t stop him from political aire’s surtax. Those permanent increases ness in, in 2007, to 13th in 2012. rhetoric blaming Congress for failing to pass only further reduce incentives for produc- This is ample and adequate proof them, though Congress did approve them tion, and only contribute further to eco- that we have borrowed too much, we within weeks of Obama finally submitting nomic downturn and stagnation under any have taxed too much, we have issued so them. That abusive rhetorical style veers economic theory. many regulations that we have people into dishonorable. Those tax increases, moreover, would come such as Mr. Langone, the founder of The GOP program is an exciting, com- on top of all the tax increases Obama has al- Home Depot—who I will quote from in prehensive strategy for creating another ready enacted under current law for 2013, generation-long economic boom. It includes which major media institutions as well as a minute—who says that today he all the components of Reaganomics under most of the public are unaware. In that year, could not start Home Depot all over Congressional control—lower tax rates, de- the Obamacare tax increases go into effect, again, one of the great success stories, regulation, and restrained spending. Besides and the Bush tax cuts expire, which Obama by the way, in recent years. the economic logic of each of these compo- has refused to renew for the nation’s job cre- In the 2012 ranking, the U.S. trailed such nents discussed above, the experience with ators, investors, and more significant small job creators as Macedonia, Georgia, Rwanda, Reaganomics proves the plan will work with- businesses. Under those tax increases, the Belarus, Saudi Arabia, Armenia and Puerto in a year or so of adoption to get the econ- top tax rates for every major federal tax, ex- Rico, which are ranked No. 6 through No. 12. omy booming again. cept the corporate income tax, already vir- Big companies aren’t usually founded as After Reaganomics was adopted in 1981, the tually the highest in the industrialized multinational corporations. Most begin as economy took off on a 25-year economic world, with no relief in sight. . . . small businesses. And it’s small businesses— boom in late 1982, what Art Laffer and Steve In sharp contrast to Reaganomics, such which employ more than half of the domestic Moore have rightly called the greatest pe- Keynesian Obamanomics has already failed nongovernment workforce—that generate riod of wealth creation in the history of the miserably to generate a timely recovery con- the bulk of new employment opportunities. planet. Twenty million new jobs were cre- sistent with the history of the American From this article: ated in the first 7 years alone, even while an economy. Before this last recession, since Our own research shows that small busi- historic inflation was tamed. American eco- the Great Depression, recessions in America nesses create more than 80% of the new jobs nomic growth during the 80s was the equiva- have lasted an average of 10 months, with in this country. This isn’t some fantasy lent of adding the third largest economy in the longest previously lasting 16 months. we’ve cooked up. It’s been confirmed in the the world, West Germany, to the American But here we are 46 months after the last re- New York Times by reporter Steve Lohr, economy. cession started, and still no real economic who wrote in September that it’s an ‘‘irref- By contrast, Obama’s Jobs Plan is recy- recovery, with unemployment still [at] 9%, utable conclusion that small businesses are cled, brain dead, Keynesian economics al- the longest period of unemployment that this country’s jobs creators. Two-thirds of ready tried and failed throughout the Obama high since the Great Depression. net new jobs are created by companies with Administration, and all around the world for Moreover, it cannot be said this is because fewer than 500 employees,’’ Lohr wrote, decades before wherever it has been tried. It the recession was so bad, as the experience in ‘‘which is the government’s definition of a is about half the size of Obama’s nearly one America has been the deeper the recession small business.’’ trillion dollar 2009 so-called stimulus plan, the stronger the recovery. Based on these But job creation is more than a function of but contains otherwise the same policies. historical precedents, we should be nearing size. Lohr cites a National Bureau of Eco- That 2009 stimulus didn’t stimulate anything the end of the second year of a booming nomic Research report that says the age of a except runaway government spending, defi- economy right now. In this crisis, for Obama business is the biggest factor. ‘‘Start-ups,’’ cits and debt. to now just advocate more of the same, with says John C. Haltiwanger, a coauthor of the Part of the jobs plan is devoted to in- only new, warmed over rhetoric, is a com- study and an economist at the University of creased government spending on supposed in- plete abdication of leadership. Moreover, at Maryland, ‘‘are where the job creation really frastructure, which only recalls the laugh- this point, outdated economists still ped- actually occurs.’’ able ‘‘shovel ready’’ jobs of Obama’s 2009 dling hoary Keynesian fallacies should be Yet it’s the small and new businesses that stimulus (even Obama has joked about it). subject to civil liability for fraud. are being choked by government policy. The Another part is increased spending to bail As I explain in my new publication just out capital gains tax rate on investments held out spendthrift Democrat states, which this week from Encounter Books, ‘‘Obama more than a year, Lohr wrote, directly im- Obama calls hiring more teachers, firemen and the Crash of 2013,’’ more likely than re- pacts angel investors’ role in providing seed and cops (a state and local government func- covery is a renewed double dip recession in capital for startups. This is a rate that the tion, not a federal function). 2013, with all the tax rate increases, regu- administration wants to hike from 15% to But economic growth is not based on in- latory burdens building to a crescendo, ris- 20% on households earning more than creased government spending, a fallacy ing interest rates by then, etc. resulting $250,000 a year. which Wall Street Journal senior economics from Obamanomics. Congressional Repub- That’s just a single instance of poor public writer Steve Moore has rightly labeled licans should just tell Obama thanks, but no policy. There are many more in the 160,000 ‘‘tooth fairy’’ economics. That is because the thanks, on his Jobs Plan, and pass their own pages of federal regulations and in the web of money for such spending needs to come from plan proven to work. Then they can insist he state and local rules that squeeze small busi- somewhere, and so drains the private sector explain to the public why he stands in the nesses and start-ups so tightly that they to the extent of such increased government way. simply cannot hire. Until this burden is lift- spending, leaving no net effect in any event. ed, America’s jobs problem is not going to What drives economic growth and pros- It is a very interesting article there get any better. perity is incentives for increased production, in Forbes, and it is a fairly long one, Quite an indictment that the United as Reaganomics proved. Obama’s assault on but I think it puts in adequately the States of America, the beacon of lib- such incentives is why trillions are sitting argument for adoption of this legisla- erty and hope and freedom, an example on corporate and bank balance sheets, and tion, but it also points out one of the America is suffering a capital strike and cap- to all the world, has gone from the results. third best place to do business, to start ital flight. The Occupy Wall Street I would point out, in Investors Busi- protestors in threatening property and prof- a business in the world, now to No. 13 its are just further undermining incentives ness Daily, an editorial entitled ‘‘Bet- in just 5 short years. and contributing to that capital strike and ter in Rwanda.’’ It says: So what is the result? I would point capital flight, which only contributes further The U.S. has slipped again in world out to my colleagues that a person to extended and increased unemployment. rankings that assess the ease of starting a such as Mr. Langone, whom I have The other half of the jobs plan includes new business. If we’re to bring down our watched on television on several occa- temporary payroll tax cuts, which are a con- stubbornly high unemployment rate, this sions, certainly an outspoken indi- tinuation and expansion of temporary pay- trend has to be reversed. roll tax cuts Obama convinced the Decem- According to the World Bank’s ‘‘Doing vidual to say the least, says he could ber, 2010 lame duck Congress to adopt for Business 2012’’ report, America is 13th among not start his business again under the this year. But such temporary tax reductions 183 countries ranked in the ‘‘Starting a Busi- present environment. do not stimulate economic growth and jobs ness’’ category. In the 2011 report, the U.S. I quote from a Wall Street Journal either, as permanent cuts and incentives are ranked 11th. The year before, it was No. 8. article, October 15, 2010, entitled, ‘‘Stop

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00044 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.069 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7273 Bashing Business, Mr. President,’’ by But what we face is a jobs crisis and regu- did that because then they would know Ken Langone. lators charged with protecting the interests we would be more careful stewards of The subtitle is, ‘‘If we tried to start of the people are making worse the problem their tax dollars. It seems to me we The Home Depot today, it’s a stone that is hurting them most. Regulatory relief could move forward with that. in the energy sector alone could create up to Enhanced rescission authority. I be- cold certainty that it would never have two million new jobs and we won’t have to gotten off the ground.’’ borrow a penny to pay for it. lieve the President of the United I quote from his article. States should have enhanced rescission He goes on to talk about the super- authority, what we used to know of as If we tried to start Home Depot today, committee. He says the White House under the kind of onerous regulatory con- the old line-item veto, taking those and Congress should build on that mo- trols that you have advocated— lines in appropriations bills he objects mentum and ‘‘enact comprehensive Mr. Langone is writing to the Presi- to and vetoing them—and I will not go pro-growth tax reform that benefits ev- dent in this— through the complications of how it is eryone; proceed with regulatory re- done—but have them taken out, with If we tried to start Home Depot today, form; and reform and restructure exist- under the kind of onerous regulatory con- certain restrictions as to how many trols that you have advocated, it’s a stone ing entitlement programs.’’ times he could do it. Then, like every cold certainty that our business would never If Washington can once again find the abil- Governor—not every Governor but get off the ground, much less thrive. ity to mix democracy and effective gov- erning, American business will once again most Governors in America have—to It is quite an indictment. He goes on unleash America’s economic potential. line item out, without having to veto to say: So Mr. McNerney, in his article, re- the entire appropriations bill, some- Rules against providing stock options times maybe even causing damage to would have prevented us from incentivizing flects the views of everybody I talk to, small businesses and large. They want our ability to govern. worthy employees in the start-up phase— I am well aware if we voted for an en- tax relief. They want regulatory relief. never mind the incredibly high cost of regu- hanced rescission by the Congress of In fact, what they want more than any- latory compliance overall and mandatory the United States, signed by the Presi- health insurance. Still worse are the ever- thing else is some kind of certainty dent, the President would probably rapacious trial lawyers. about the economic future and the line-item veto some programs that I He goes on to say: playing field in which they will have to would object to him doing so. I am compete. Will there be increasing regu- I stand behind no one in my enthusiasm willing—more than willing—to take and dedication to improving our society and latory burden? Will there be a raise in that pain as opposed to today where we especially our health care. It is worth adding taxes, as is facing us in 2013? Can we continue to have appropriations bills that it makes little sense to send Treasury have a tax code they can understand which in many cases people have not checks to high net-worth people in the form and comprehend that is fair to one and read or truly understand. of Social Security. That includes you, me all? Can they unleash their savings ac- and scores of members of Congress. Why not Tax reform. Every place I go people cut through that red tape, apply a basic counts and the money they have kept talk to me about the need for tax re- means test to that program to make sure in reserve and invest and hire with form. I have yet to meet an American that money actually reduces federal national some confidence that there will be a re- who understands completely the Tax spending and isn’t simply shifted elsewhere. turn on that investment, that they will Code. I have yet to meet an American So it is a very interesting article. He succeed for themselves and their chil- who believes our Tax Code is fair. I says: dren? have yet to meet an American who A little more than 30 years ago, Bernie That is what this jobs bill is all says: If you would just give me three Marcus, Arthur Blank, Pat Farrah and I got about. That is what we are trying to tax brackets, a very small number of together and founded The Home Depot. Our get done. This is an attempt to look at deductions, and then I could fill out my dream was to create a new kind of home- the problems America faces today, tax return on a post card or in the case improvement center catering to do-it- which, by the way, do spill over onto yourselfers. The concept was to have a wide of some of the countries—the Baltic our national security problems, as the countries that used to be under the So- assortment, a high level of service, and the former Chairman of the Joint Chiefs of lowest pricing possible. We opened the front viet Union—on my computer. Then you door in 1979, also a time of severe economic staff pointed out. would see greater compliance, you slowdown. Yet today, Home Depot is staffed So it affects all of America. It hurts would see less of a need for the IRS, by more than 325,000 dedicated, well-trained us in so many ways. Yet we sit here, and you would see Americans more and highly motivated people offering out- and apparently the select committee, than willing to pay their fair share if standing service and knowledge to millions the supercommittee as it is called, is at they believed the system was fair. of consumers. some kind of gridlock. We sit here It is not fair when major corpora- Then he goes on to say: today with one amendment here, one tions and individuals pay no taxes be- If we tried to start Home Depot today, amendment here, back and forth, and cause they have bright lawyers, and under the kind of onerous regulatory con- then run right out to the media and at- they take advantage of all of the loop- trols that you have advocated, it’s a stone tack each other for being uncoopera- holes and deductions they have been cold certainty that our business would never tive and why are we not more conge- get off the ground, much less thrive. able to get put into the Tax Code over nial and why are we not willing to the years with the help of very power- A man by the name of Jim McNerney compromise. ful lobbyists in this town. is the CEO of Boeing Company. He Well, I will plead guilty for perhaps Repatriation and territorial reform. writes: ‘‘What Business Wants From not being willing to compromise on The Presiding Officer, the Senator Washington.’’ Again, I quote from Oc- some issues because some issues are a from North Carolina, and I have pro- tober 31, 2011. Mr. McNerney says: matter of principle. We do not com- posed a pretty simple proposal; that is, America works best when American busi- promise principle, I have found out. the $1.4 trillion that is now sitting ness and government complement one an- But we do come forth with proposals overseas because they will not bring it other: Business plays the vital role in eco- and try to find those on which we can back because of the tax situation; that nomic expansion and job creation, while gov- agree. I do not know why we do not ernment oversees the environment in which we could bring that money home, and businesses can innovate and compete. This agree on a balanced budget amendment we could provide a permanent incen- approach fueled prosperity for generations to the Constitution. Every State, every tive with that for repatriating these and produced the world’s largest and most mayor, every city councilman, every foreign earnings. powerful economy. We seem far adrift of that county supervisor, every one of them is I say to my friend from North Caro- ideal today. The regulatory climate is a per- faced with the first problem of a bal- lina, I have been kind of astonished at fect example. A tsunami of new rules and anced budget. some of the resistance to this where regulations from an alphabet soup of federal Why should we exempt ourselves? people say it would not do any good. agencies is paralyzing investment and in- Why can’t we together work out the Help me out. It would not do any good creasing by tens of billions of dollars the details concerning a balanced budget compliance costs for small and large busi- to bring $1.4 trillion back to the United nesses. amendment to the Constitution? The States of America? Do we really be- No one wants to discard truly meaningful overwhelming majority of Americans lieve that would just go in peoples’ public safety or environmental regulations. would heave a sigh of relief if we ever wallets and purses? Of course not.

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00045 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.071 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7274 CONGRESSIONAL RECORD — SENATE November 9, 2011 The Senator from North Carolina and duced legislation that is part of this heavy, wet blanket on small businesses I have talked to too many people, cor- Freedom from Restrictive Excessive that are trying to hire people. We know poration executives, who have said: Executive Demands and Onerous Man- of small businesses around the country Yes, I will not only create jobs and in- dates Act, which strengthens and that know that the penalties are sig- vest that money, but I will give you a streamlines the regulatory act by re- nificant when they hire that 50th em- plan. I will give a plan that we will im- quiring regulators to include ‘‘indirect ployee. We have businesses that could plement with that money—that IBM or economic impacts’’ in small business grow, but they are not going to hire Boeing or other major corporations analyses, requiring periodic review and that extra person because of the sig- that have this money parked overseas. sunset of existing rules, and expanding nificant expenses to the business. They They are enthusiastic about it. Yet, business review panels as a require- need some certainty. They are getting unbelievably, there are people who ment for all Federal agencies instead so much uncertainty out of Wash- argue that it would have no effect of just the Environmental Protection ington with rules, regulations, redtape, whatsoever on our economy. It is hard Agency and the Occupational Safety the expense of the health care law, and to understand. and Health Administration. the threats that keep coming of in- Now we obviously get into I notice my colleague, Dr. BARRASSO, creased taxes. Small businesses and ObamaCare. I noticed that the latest from Wyoming on the floor, who knows businesses are just not hiring. polling showed, I believe, that some 54 more about programs in the health That is why I am here to commend percent of the American people want care reform act. I will try to be polite and compliment my colleague from Ar- the health care law repealed. Thirty- and refer to it today as the health care izona for bringing forth to the Amer- some percent still support it. The fact reform act. ican people a positive proposal to put is that over time, as Americans learn I ask unanimous consent to engage in people back to work. Mr. MCCAIN. I ask the Senator this more and more about the health care a colloquy with the Senator from Wyo- on two other issues. One issue was not law we passed, they have become more ming. included in the health care reform act, and more opposed to it. They are angry The PRESIDING OFFICER. Without which is the issue of medical mal- because the whole purpose of the objection, it is so ordered. practice, which the Senator, Dr. BAR- health care act was to provide all Mr. MCCAIN. Does Senator BARRASSO RASSO, has had a lot of personal experi- believe or could he tell us, perhaps, the Americans with health care that is af- ence with. The other is this—which I effects on the cost of health care since fordable but also to bend the curve of think is symptomatic of really the way the inflation of health care in America passage of this legislation and perhaps we cobbled this whole thing together, because we all know the present infla- what we need to do to really fix health which is that we have now found a pro- tion of health care is unsustainable. It care in America, which we all agree vision in the bill that cannot be and is unsustainable. Yet what has been needs to be fixed? will not be enforced, the so-called the result since the passage? Inflation Mr. BARRASSO. I agree with my col- CLASS Act. of health care continues to go up; the league from Arizona. I thank him for Mr. BARRASSO. Both of those are cost of health care, whether it be to his leadership and congratulate him for areas where there can be significant the men and women serving or average the piece of legislation that is cur- savings. citizens, continues to go up, and it has rently on the floor. I am here to speak Folks have said that if they do this to stop. We need to look at that and in support of it because I want to get sort of legislative approach to remove look at medical malpractice reform. In small businesses hiring again and get this lawsuit abuse, the savings to the Texas today, they passed medical mal- people back to work. Federal budget would be about $50 bil- practice reform, and it seems to work, We need to find ways to make it easi- lion over the budgeting timeframe—$50 and most people are happy with it. er and cheaper for the private sector to billion. Any physician, nurse, practi- The Dodd-Frank bill—it still is stun- create jobs. This health care law my tioner, or physician assistant would ning to me that we passed this regu- colleague has asked me about is one say the savings would even be greater latory reform bill; they called it a fi- thing the President promised, saying: because of the additional tests and so- nancial takeover that the Dodd-Frank If you pass it, health insurance for called defensive medicine that is prac- bill is commonly known as—the whole families will go down—he said about ticed in an effort to protect hospitals, purpose of it was that we would have $2,500 per family per year. Instead, we physicians, health care providers from legislation that would ensure that have seen—in response to the Sen- the possibility of a lawsuit. They do a never again would any institution be ator—health insurance rates go up. lot of extra diagnostic studies—x rays, too big to fail because the taxpayers Across the board, people agree they CAT scans, MRIs, and blood tests—to never again should have to bail out any have gone higher and faster than if the try to not miss something, which is financial institution. Is there anybody law had never been signed. very unlikely, but they want to protect who believes that these huge institu- I think it was interesting and telling themselves from a suit. I think the sav- tions on Wall Street haven’t grown big- yesterday that the voters of Ohio went ings would be even greater, but even ger, that they are not bigger to fail to the polls and voted overwhelm- the government accountants say it than they used to be? The fact is that ingly—almost 2 to 1—to say they don’t would save $50 billion. they are. What did we get? We got a want to be forced to participate in the The other is the so-called CLASS whole bunch of regulations and dif- President’s so-called health care law. Act—something one of my Democratic ferent bureaucracies, some of them less What people in Ohio and people in my colleagues said was comparable to a accountable than others, and obviously State and in all of the States around Ponzi scheme that even Bernie Madoff a damper on some of the financial ac- the country are asking for—and this is would be proud of. It was an account- tivities. my goal—is to provide people with the ing gimmick, a bookkeeping trick used We need to make sure no financial in- care they want from the doctor they during debate and passage of the so- stitution is too big to fail. We need to want—the care they need from the doc- called health care law. It was aimed at assure the American people that never tor they want at a cost they can afford. trying to bring money in in the first 5 again will they suffer the way they There are things we need to do, but years of an accounting scheme where have during this period of time because to put these additional expenses and they would then not have to pay for of the malfeasance of others. Unfortu- mandates on the small businesses of any services and to start paying for nately, the Dodd-Frank bill did not this country, the job creators, just services about the sixth year, and then achieve that goal. makes it harder and more expensive for the expenses would go up and up. What We need to have a moratorium on those small businesses to hire more they have now realized and what we re- regulations. Senator JOHNSON of Wis- people. At a time in this Nation when alized on this side of the aisle initially, consin has a bill that prohibits any we have 14 million Americans out of right away, and pointed out on the Federal agency from issuing new regu- work, over 9 percent unemployment, floor before the vote, is that this could lations until the unemployment rate is we need to take positive steps to help not work long term. equal to or less than 7.7 percent. Sen- them get back to work. I view this In an effort to try to use this scheme ators SNOWE and COBURN have intro- health care law and the expenses as a to say the health care law would pay

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00046 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.072 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7275 for itself, they forced this through, wrought with money going to the claimants, small business owners—the crammed it through, as they did with wrong place and which also results in ability to defend themselves against the rest of the health care law. Now we so many unnecessary tests being done harmful government actions. That is find out that even the administration in efforts of doctors and nurses and how it was intended to be used. It al- says this cannot work, it is not going hospitals to protect themselves. lows individuals to sue the Federal to work. OK, just repeal that part of Mr. MCCAIN. I thank the Senator. I Government, to recover part of their the law. Oh, they sure don’t want to do appreciate his unique expertise in the attorneys’ fees and the costs. that because that would admit it was a health care issues that are still tran- This was a well-intended law, but it scheme from the beginning. scendent in this country. I thank him has been exploited—exploited by large Mr. MCCAIN. Would it not also dis- for his enormous contributions. environmental groups with large legal turb the predictions as far as the fiscal I want to continue with some of this departments—and it is being used now impact of the CLASS Act as well? legislation. as a profit center for these large orga- Mr. BARRASSO. It would. It would The Unfunded Mandates Account- nizations through litigation against undermine the argument of the Presi- ability Act, which was originally an our government, and they are all get- dent, who says this is going to pay for act of Senator PORTMAN’s, requires ting paid to do it. The total amount itself, when, in fact, it is not. agencies specifically to address the po- that has been paid is unknown, and the It is interesting, if you ask people tential effect of new regulations on job reason it is unknown is that since 1995 watching at home or when you go to creation and to consider market-based something called the Paperwork Re- townhall meetings, do you think under and nongovernmental alternatives to duction Act defunded all the reporting this health care law your health care regulation, broadens the scope of the requirements. will be better or worse, they will say Unfunded Mandates Reform Act to in- There is an attorney in Wyoming, worse. Very few think it will be im- clude rules issued by independent agen- Karen Budd-Falen, who has conducted proved under this law the President cies and rules that impose direct or in- research to see how much money a lot forced through. And then if you ask the direct economic costs of $100 million or of these environmental groups have same group of people, a cross-section of more, requires agencies to adopt the made. She found 14 different environ- people in our States, if they think the least burdensome regulatory options mental groups have brought over cost of their care will go down, as the and achieves the goal of the statute au- 1,200—14 groups have brought over President promised, or go up, they all thorizing the rule and creates a mean- 1,200—Federal cases in 19 States and say it is going to go up. So they are ingful right to judicial review of an the District of Columbia. They have going to have to pay more, get less, agency’s compliance with the law. If collected over $37 million in taxpayer and be unhappy with it, which is why I there is anything that has grown out of dollars through this Equal Access to think yesterday in Ohio two-thirds of control, in the view of this Member, it Justice Act and similar laws, and this the voters who turned out—and the is government regulations. First, we doesn’t even include settlements and margin was over a 1 million voters dif- had a trickle, but now it is a flood, of fees that were sealed from public view. ference between those for and against. government regulations, which then This is what we can find in public docu- They overwhelmingly voted to say: We impose additional costs, which then ments. don’t want to have to live under the take money away from job creation Lowell Baier, who is the president Obama health care law; we want to be and, in particular, small business peo- emeritus of the Boone and Crockett able to opt out of that, which is all ple. This is where accountability of the Club, tracked through the IRS 990 small businesses want to do. They unfunded mandates is, at the very forms and found that of the most liti- don’t want to have to deal with these least, called for. gious so-called nonprofit groups, they expensive bandaids. Let’s work to- Senator BARRASSO may want to dis- average over $9 million a year of tax- gether and within our States and work cuss this next provision. The Govern- payer money, which of course hinders with other small businesses, but we ment Litigation Savings Act reforms economic growth, limits creation of don’t want to live under these very ex- the Equal Access to Justice Act by dis- jobs by individuals and by small busi- pensive Washington mandates, which allowing the reimbursement of attor- nesses and by energy producers, farm- makes it that much harder for us to neys’ fees and costs to well-funded spe- ers, and ranchers. hire people. cial interest groups that repeatedly sue So I am very happy to see my col- Mr. MCCAIN. Can we return just for a the Federal Government. The bill re- league included our efforts in this over- minute to medical malpractice reform tains Federal reimbursements for indi- all jobs package because I think these because many people, when you talk viduals, small businesses, veterans, and are the sorts of things we are trying to about that, believe there has to be ap- others who must fight in court against overcome and that make it harder and propriate compensation when mal- wrongful government action by elimi- more expensive for the private sector practice occurs. We all know mal- nating taxpayer-funded reimbursement to create jobs. I want to find ways to practice occurs, so we don’t want the of attorneys’ fees for wealthy special make it easier and cheaper for the pri- innocent victims of medical mal- interest groups. The legislation helps vate sector to create jobs. practice—however it occurs in the eliminate repeated procedural lawsuits If I could, we have been talking about health care scenario—to not be able to that delay permitting exploration and the private sector. The majority leader get just compensation in the case of land management. has said: Oh, the problem isn’t the pri- malpractice on the part of the care- If the Senator would like to com- vate sector. He said it was the public giver. ment. sector—the government. Government Mr. BARRASSO. That is exactly Mr. BARRASSO. Madam President, I is doing just fine. It is the private sec- right. I agree. Studies have shown that would like to comment. Section 8 of tor that has lost over 11⁄2 million jobs in the system we live under today, less this Jobs Through Growth Act is the from February of 2009 to September of than one-third of the money actually Government Litigation Savings Act. 2011. goes to people who are deserving and This was something introduced in the Mr. MCCAIN. I thank my friend. ought to be receiving that money, and House by CYNTHIA LUMMIS, a Member Included in this package is the Em- the other two-thirds goes to the sys- of Congress from Wyoming, and myself ployment Protection Act, introduced tem—lawyers, courts, and expert wit- in the Senate. This legislation will re- by Senator TOOMEY. It requires the nesses. So very little of the money paid turn the Equal Access to Justice Act— EPA to analyze the impact on unem- in premiums actually gets to the in- or what I refer to as EAJA—back to its ployment levels and economic activity jured party. original purpose. before issuing any regulation, policy There are ways to do a better job of The small business entity or indi- statement, guidance document, that with significant savings in the vidual citizen should not have their in- endangerment finding or denying any process—making sure people are appro- dividual liberties overrun by Wash- permit. Each analysis is required to in- priately compensated if an injury oc- ington. EAJA was meant to provide clude a description of estimated job curs but at the same time getting sav- people with limited financial re- losses and decreased economic activity ings out of a system which is over- sources—veterans, Social Security due to the denial of a permit, including

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00047 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.074 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7276 CONGRESSIONAL RECORD — SENATE November 9, 2011 any permit denied under the Federal Senator MURKOWSKI has included the tives have passed at least 22 job-cre- Water Pollution Control Act. Jobs and Energy Permitting Act, ating bills. Guess how many of the bills Senator JOHANNS has contributed the which eliminates the confusion and un- that were passed by the House of Rep- Farm Dust Regulation Prevention Act, certainty surrounding the EPA’s deci- resentatives have gotten consideration which prevents the EPA from regu- sionmaking process for air permits, in the Senate. Five. lating dust in rural America while still which is delaying energy exploration in Similar to our plan, our colleagues in maintaining protections to public the Alaska and outercontinental shelf. the House have focused a great deal of health under the Clean Air Act. It will create over 50,000 jobs and attention on empowering small busi- The National Labor Relations Board produce 1 million barrels of oil a day. nesses and reducing government bar- reform was introduced by Senator GRA- There is no one in this body who riers to job creation. Here are just a HAM of South Carolina. From backdoor knows as much about these issues as few of the commonsense, job-creating card check, to threatened jobs in South the distinguished Senator from Alaska. measures passed by the House, none of Carolina, the out-of-control National Senator BARRASSO again has brought which have been considered by the Sen- Labor Relations Board is paying back forward the American Energy and ate: review of Federal regulations, re- union officials at the expense of worker Western Jobs Act. The bill streamlines ducing regulatory burdens, the Energy rights and jobs. To create more jobs, the preleasing, leasing, and develop- Tax Prevention Act, the Clean Water legislation prohibiting the NLRB from mental process for drilling on public Cooperative Federalism Act, Consumer stopping new plants and legislation to land and requires the administration to Financial Protection and Soundness prevent coercive, quick-snap union create goals for American oil and gas Improvement Act, Protecting Jobs elections should be passed. production. From Government Interference Act, I am sure my colleagues are very well The Mining Jobs Protection Act by Transparency and Regulatory Analysis aware of the unprecedented and incred- Senators MCCONNELL, INHOFE, and of Impacts on the Nation Act, Cement ible action by the NLRB that basically PAUL requires the EPA to use or lose Sector Regulatory Relief Act, and the prohibited a major aircraft manufac- their 404 permitting review authority. EPA Regulatory Relief Act. turing company from locating in the Under this bill, the EPA will have 60 So the next time we hear the Presi- State of South Carolina, where it is a days to voice concerns about a permit dent of the United States say Repub- right-to-work State—an unbelievable application or the permit moves for- licans are blocking or have failed to overreach by a Federal bureaucracy— ward. Any concerns voiced by the EPA take up or failed to bring forward a which still staggers the imagination, would need to be published in the Fed- proposal, we have proposals, and we but it also shows that elections have eral Register within 30 days. have measures that have been passed Senator INHOFE has contributed the consequences. by the House. The proposals in this There is also the Government Neu- Energy Tax Prevention Act, which pro- jobs plan bill deserve the consideration trality and Contracting Act. It repeals hibits the EPA from using the Clean of this body. the President’s order requiring govern- Air Act to regulate greenhouse gases. We need to prove to the American ment-funded construction projects to The Repeal Restrictions on Govern- people that we will do everything we only use union labor. This would re- ment Use of Domestic Alternative can to eliminate the waste of their duce costs of Federal jobs projects by Fuels Act would repeal section 526 of hard-earned dollars. Enacting an en- as much as 18 percent. That was Sen- the Energy Independence and Security hanced rescission authority to give the ator VITTER’s contribution. Act of 2007, which prohibits Federal President statutory line-item veto au- Senator SHELBY has introduced the agencies from contracting for alter- Financial Regulatory Responsibility native fuels such as coal-to-liquid fuel. thority to reduce wasteful spending is Act, which requires financial regu- The Public Lands Job Creation Act of an issue we have been looking at for lators to conduct consistent economic Senator HELLER eliminates the burden- years. analysis on every new rule they pro- some and unnecessary delay in ap- Why do we need to grant the Presi- pose, provide clear justification for the proval of projects on Federal lands by dent enhanced rescission line-item veto rules, and determine the economic im- allowing the permitting process to authority? According to a database pacts of proposed rulemakings, includ- move forward unless the Department of created by Taxpayers Against Ear- ing their effects on job growth and net the Interior objects within 45 days. marks, washingtonwatch.com, and job creation. This will streamline the permitting Taxpayers for Common Sense, for fis- With so many of these pieces of legis- process for domestic energy and min- cal year 2011, Members requested over lation I am talking about, a lot of eral production on BLM lands without 39,000 earmarks totaling over $130 bil- Americans might say: Don’t we do that compromising environmental analysis. lion. Just last December, we were already? Unfortunately, we don’t. Senator MCCONNELL has introduced forced to consider, at the very last Senator ROBERTS has the Regulatory the renew trade promotion authority, minute, an Omnibus appropriations bill Responsibility for our Economy Act, which would provide the President that was 1,924 pages long and contained which codifies and strengthens Presi- with fast-track authority to negotiate the funding for all 12 of the annual ap- dent Obama’s January 18 Executive trade agreements that will eliminate propriations bills for a grand total of order that directs agencies within to foreign trade barriers and open new $1.1 trillion. In the short time I had to review, modify, streamline, expand or markets for American goods. review that massive piece of legislation repeal those significant regulatory ac- We all know trade promotion author- before it was brought to the floor, I tions that are duplicative, unneces- ity is vital to the eventual enactment identified approximately 6,488 ear- sary, overly burdensome or would have of free-trade agreements. I am incred- marks, totaling nearly $8.3 billion. significant economic impacts on Amer- ibly depressed that we would not have We need an enhanced rescission act. icans. renewed this trade promotion author- Thankfully, the massive omnibus was Congressman GIBBS, over on the ity along with the passage of the long not enacted. But these earmarks, and House side, has the Reducing Regu- overdue free-trade agreements we just the process by which they make their latory Burdens Act, which eliminates a passed through this body. way into spending bills, are evidence new duplicate EPA regulation that will The President and my colleagues on that the system is badly broken and in cost millions of dollars to implement the other side of the aisle have become need of reforms. without providing additional environ- fond of saying Republicans have no I have more to say, and I have taken mental protection. plan for creating jobs and putting too much time in the eyes of many of On domestic job energy promotion we America back on a path to fiscal pros- my colleagues, perhaps, and I want to have, from Senator VITTER, the Domes- perity. Nothing could be further from apologize to any of my colleagues who tic Jobs, Domestic Energy, and Deficit the truth. As I have just laid out in the had planned to speak on the floor and Reduction Act that would require the plan before us today, we have compiled have been preempted by my long re- Department of the Interior to move many job-creating measures offered by marks. But I feel that we have an obli- forward with offshore energy explo- our colleagues in the Senate. gation to the American people to ad- ration and create a timeframe for envi- Furthermore, since January, our col- dress the issues that are of greatest ronmental and judicial review. leagues in the House of Representa- concern and the greatest amount of

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00048 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.075 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7277 pain to them today, and that is jobs of opposition to business as usual here tion to do every day, every year, not and the economy—jobs and the econ- in Washington. just Veterans Day. omy. As I said at the beginning of my re- I want to thank Senator HARKIN of I care a lot about our national secu- marks, I am more than eager to sit Iowa for cosponsoring the legislation I rity challenges and I care a lot about down with my colleagues on the other have offered, and also to thank Senator what is going in the world. But when I side of the aisle and come together par- TESTER, Chairman MURRAY of the Vet- go home and a woman stands up at a ticularly on some of the issues that erans Committee, and Ranking Mem- townhall meeting with her two chil- clearly we have stated on both sides we ber BURR of that committee for their dren and says, I don’t have a job and I are in favor of. work to address these challenges recog- am being kicked out of my home next Again, my apologies to my colleagues nized by the Honoring All Veterans Act week; when we have people who are whose time I may have preempted on and this comprehensive measure, VOW being thrown out of their houses, and the floor. But I think this issue of jobs, to Hire Heroes amendment. Truly, we over half of the homes in my home which we will be voting on tomorrow, should vow to hire our heroes, and we State of Arizona are under water—in is one that deserved more than passing should do so not just in words but in other words, worth less than the mort- attention. deed, not just in rhetoric but in action, gage payments they are required to Mr. President, I yield the floor. and I am proud to be a cosponsor of the make—when we have chronic unem- The PRESIDING OFFICER (Mr. important tax credit provision in the ployment that in some cases, such as WHITEHOUSE). The Senator from Con- Tester veterans jobs amendment for down in Yuma, AZ, is well into double necticut. businesses that hire veterans. digits, then we have to get going on Mr. BLUMENTHAL. I thank the Sen- getting some jobs and the economy ator from Arizona for his remarks, and Helping veterans is a challenge that back on the right track. certainly for me, at least, he owes no will require the engagement of every- I want to repeat—and I don’t mean to apology for having spoken his mind. I one in the community, from Congress be confrontational with my colleagues, always welcome the opportunity to lis- to veterans service organizations and but we tried for 2 years, when the other ten, and I have done so, and am hon- business leaders across the board, side had the majority in the House and ored to follow him. across the country, across the State of the Senate and they had passed major AMENDMENT NO. 927 Connecticut. pieces of legislation that were adver- Today I speak as we approach Vet- At a recent veterans hiring forum I tised to get our economy back on erans Day, and I believe this Veterans hosted in Connecticut, I heard first- track—they didn’t—can’t we try some- Day may be particularly significant for hand the challenges in veterans re- thing different? Can’t we try the kinds our Nation in part because we have the cruitment, and what innovative compa- of things that have brought us out of opportunity in this Chamber to honor nies such as United Reynolds were other recessions? Can’t we ask our col- some very special veterans, the doing to hire skilled and talented vet- leagues in the Senate to create a sim- Montford Point marines, who graced us erans in this symposium in that set- plified tax system that the Heritage with their presence yesterday as we ting. They provided an example of what Foundation says, by lowering the cor- celebrated the 236th birthday of the we can and should do. porate rate to 25 percent, the number U.S. Marine Corps. They were present I see my cosponsorship of this of jobs in the United States would grow then. They were present in 1942, when amendment as honoring a commitment on an average of 581,000 annually from they stepped forward to serve and fight to push for legislation to provide incen- 2011 to 2020? Can’t we look at this regu- for this Nation. They are African tives to firms to hire unemployed vet- latory system, which has put such a Americans who fought and served for erans, and to make it easier for compa- damper on small businesses and large? this Nation at a time when they antici- nies to connect with veterans so they Can’t we give American people a break pated no recognition and certainly no can fill some of the jobs that are now from the flood of new regulations that honor, and we have the opportunity be- available. There are jobs available, and continues to come down and is a major tween now and Veterans Day to ap- we should give our veterans the skills factor in this environment of uncer- prove a measure that would grant them they need, skills they may have ac- tainty amongst businesses small and the Congressional Gold Medal, which quired in part during their service that large? they richly deserve and they have need to be honed and expanded, and we The approval rating of the American earned through their service. They are have that opportunity. I want to thank people of Congress is now, the latest the epitome of the Marines—they hap- all of those Senators for championing poll I saw, 9 percent. That is something pen to be marines—and of the service this measure. that I joke about, but it is also some- men and women whom we honor on thing that grieves me a great deal be- this Veterans Day. They happen to be My own legislation, Honoring All cause I believe the overwhelming ma- men of the ‘‘greatest generation,’’ the Veterans Act, allows a veteran to take jority of the Members of Congress are World War II generation. They are the Transition Assistance Program, here and are dedicated to serving their among the greatest of that generation. known as TAP, an interagency work- constituents in the most honorable I had the great honor to be with them shop coordinated by the Departments fashion and in the best possible way yesterday, in fact to be the honored of Defense, Labor, and Veterans Affairs they can, according to their values and guest in the Russell Building when the for up to 1 year after separation at any their principles. commandant and I had the privilege to military facility. The bill before us But it is a fact that the American honor them. Their presence yesterday makes participation in the program people are very angry and they are reminds us of our continuing obliga- mandatory. Low participation rates in very upset. One of the major reasons is, tion to all veterans and of the need to this program are especially concerning, of course, they have not seen progress make the well-being of our veterans a as junior members tend to be those in the economy. And that is very un- priority, as I have sought to do. most in need of the services provided derstandable. We are now seeing these Indeed, my first bill, entitled Hon- by TAP, and the benefits available Occupy Wall Street people. The tea oring All Veterans, has as its objective through the VA for many skills such as partiers will probably be rejuvenated. to leave no veteran behind. It offers a simple skills, writing resumes or inter- We are seeing expressions of anger and comprehensive set of measures to as- viewing have never been needed or frustration all over the country, and it sure that we keep faith with every vet- learned before. Not having such skills, is unfortunate. But I believe that a eran, every veteran who needs a job, not knowing how to interview or write couple of things are going to happen every veteran who needs better health a resume puts them at a severe dis- unless we act in a more efficient fash- care or counseling or training or edu- advantage when they are attempting to ion that addresses the concerns of the cation. These commitments we have enter and succeed in the workplace American people, and that is I believe made as a nation to all of our veterans after they exchange their military uni- you will see the rise of a third party in and now we have the opportunity to form for civilian clothes. this country, and I think also you will keep those promises and keep faith Section 222 of the VOW to Hire He- see greater and greater manifestations with them, as we have a solemn obliga- roes Act authorizes an assessment of

VerDate Mar 15 2010 02:13 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00049 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.077 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7278 CONGRESSIONAL RECORD — SENATE November 9, 2011 the equivalence between skills devel- approve that measure, and I hope we As has been said many times on this oped in military occupational special- can reach that kind of bipartisan con- floor, the unemployment rate among ties and qualifications required for ci- sensus on that legislation, but also on Iraq and Afghanistan war veterans is vilian employment with the private the broader VOW to Hire Heroes Act, an unconscionably high 12.1 percent. sector. that can lead us back to the kind of bi- That is more than 3 percentage points I like to say that when you call out partisan approach on so many issues higher than the national average un- the National Guard, you call out the that we need to emulate in this body. employment. That is about a quarter of best in America. When you call out the I thank my colleagues for supporting a million men and women, all of whom Connecticut National Guard, you call this measure, and I yield the floor. have put their lives on the line to pro- out truly the very best in America. The The PRESIDING OFFICER. The Sen- tect our country, who are now strug- military recruits the most talented ator from North Carolina. gling just to earn a paycheck—240,000 men and women in America to serve, Mrs. HAGAN. Mr. President, I stand heroes with irreplaceable skill sets and and then invests heavily in those skills today, just 2 days away from Veterans experience who cannot find a job. and their professional development. Day, to urge my colleagues to support We cannot forget that every unem- Yet when they enter the civilian world, our courageous service men and ployed veteran has a family, a family very often those skills are simply un- women, our veterans and their fami- who has likely spent untold sleepless recognized by laws requiring separate lies, by voting for the VOW to Hire He- nights worrying if their loved one is training or licensure, and we ought to roes Act of 2011. This legislation would safe. Now, after years of selfless serv- do more to recognize the expertise and have a tremendous impact on every ice, these families are forced to worry experience the military gives to these part of our country, but it would be es- if they can pay their monthly bills, if brave men and women. That is why I pecially significant in my home State they can even afford to keep their authored a similar provision in the of North Carolina, the most military- homes. Honoring All Veterans Act to ensure friendly State in the Nation. According to HUD’s 2010 Annual that civilian employers and edu- In North Carolina we are blessed to Homeless Assessment Report, more cational institutions recognize a vet- be home to so many of our country’s than 1,000 North Carolina veterans are eran’s military training. heroes. I don’t think most people un- homeless and spend every night with- The Iraq and Afghanistan Veterans of derstand that nationwide military out a roof over their head. That is sim- America reported—and I am quoting— servicemembers account for only 1 per- ply 1,000 too many. This is not a fate 61 percent of employers do not believe cent of our country’s population. But that we can accept for our veterans. they have a complete understanding of in North Carolina, more than one-third This is not the country we strive to be. the qualifications ex-servicemembers of our population is either in the mili- We need to support our veterans when offer. And, recently separated service- tary, is a veteran, or has an immediate they make the transition from the members with college degrees earn on family member who is in the military military to the civilian workforce. We average almost $10,000 less than their or is a veteran. Over 700,000 veterans need to provide them with the training nonveteran counterparts. call North Carolina home. and resources they need to transfer I applaud my colleagues for including I know that makes our State strong- those skills to the private sector. We section 222 in the VOW to Hire Heroes er. I know because, like so many North need to encourage our business owners Act. It is a vital step toward helping Carolinians, I too come from a strong to employ some of our country’s most employers find the employees they military family that instilled in me a highly trained, highly ambitious, and need and toward closing the income sense of responsibility to my commu- highly motivated individuals. gap that exists now. nity and to my country. My husband, The VOW to Hire Heroes Act does The legislation before us also ex- my father, my brother are all Navy just that. It provides a tax credit of up pands education and training opportu- veterans. My father-in-law was a two- to $5,600 for hiring veterans. For our nities for older veterans by providing star general in the Marine Corps, and wounded warriors it includes a tax 100,000 unemployed veterans of past my two nephews have both served in credit of up to $9,600—for hiring vet- eras and wars with up to 1 year of addi- Iraq and Afghanistan. erans with service-connected disabil- tional GI benefits to go toward edu- I know because I have traveled my ities. It requires our service men and cation and training programs at com- State’s eight military bases from Fort women transitioning to the civilian munity colleges and technical schools. Bragg to Cherry Point to Camp workforce to participate in the Transi- I am proud of the bipartisan com- Lejeune to bases in Iraq, Afghanistan, tion Assistance Program, which pro- promise to extend this period for 1 and Kuwait. I have seen up close the vides services such as resume writing year. I hoped it would be even further incredible demands placed on our mili- workshops and career counseling to broadened and extended, but this meas- tary and the remarkable bravery and help these individuals land the jobs ure is a great first start toward pro- patriotism they exhibit each and every that are available. It expands edu- viding skills for job opportunities that day. cation and training opportunities at now exist and can be filled by men and I know because whether I am meet- our community colleges and technical women coming out of our military to ing a general, a young private, a schools for 100,000 unemployed veterans civilian life. wounded warrior, or a 90-year-old vet- who served prior to September 11. Let me say, to come back to the eran traveling on one of the Flights of I am pleased to say that some provi- Montford Point marines, I want to Honor that bring our World War II vet- sions of this legislation are very simi- thank Senator PAT ROBERTS who was erans to DC to see their monuments, lar to a bipartisan bill that Senator with me yesterday at the 236th birth- there are certain qualities that I al- SCOTT BROWN and I introduced earlier day celebration, and most especially I ways recognize in those who serve in this year. The priorities this legisla- thank the Senator from North Caro- the Armed Forces. These are selfless- tion focuses on are not Democratic pri- lina, KAY HAGAN, who is with us today, ness, personal integrity, and an un- orities. They are not Republican prior- for her leadership on this issue. Truly, matched work ethic and unwavering ities. Supporting our veterans is and we can make this Veterans Day special courage. has always been an American priority. for all of us in this Nation if we ap- I take it personally as a Senator We owe it to them, but we also owe it prove this Congressional Gold Medal to from North Carolina, as well as a proud to our future. men who stepped forward to serve and daughter, wife, and sister of a veteran I hope many saw the August cover fight when this Nation failed to appre- when our military members and their story in Time magazine that described ciate their service and valor. Now we families are hurting. I take it person- our veterans returning from Iraq and have the opportunity to make good on ally when this country of ours does not Afghanistan as ‘‘the next greatest gen- our commitments to them as vet- live up to the promises we make to our eration.’’ If you have not read it, I erans—to all of our veterans—in this service men and women. Right now our highly encourage you to do so. The au- measure. I am proud to join colleagues military families are unquestionably thor, Joe Klein, whom I met on a mili- on both sides of the aisle in nearing hurting. Right now we have lapsed in tary transport plane in Afghanistan, now the number that is necessary to our commitment to our heroes. spent the past 5 years visiting with

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00050 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.078 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7279 Iraq and Afghanistan veterans across Alaska has a proud history of defend- veterans in my home State. Many of the country, including two best friends ing our country. This poster shows our Alaska’s returning warriors come home he met from North Carolina. These troops preparing for battle on Alaska’s to the most remote areas of America. friends, Dale Beatty and John Gallina, soil during World War II. Although Alaska boasts unsurpassed beauty. It whom I met last year in Charlotte, many Americans are still not aware, can also be a challenging and dan- joined the North Carolina National there was fierce fighting in the Aleu- gerous place to live. Guard together, deployed to Iraq to- tians as the Japanese launched a diver- Right now, as I speak on this floor, gether, and nearly died together when sionary attack in preparation for the the northwest coast of Alaska is being their humvee was blown up by an anti- Battle of Midway. One of my most re- struck by winds approaching 100 miles tank mine. Dale lost both his legs and warding moments so far as a Member per hour and storm surges of 8 feet or John suffered a traumatic brain injury. of this body was making sure that two more. With waves up to 30 feet, coastal When a local homebuilders associa- dozen brave members of the Alaska erosion and flooding is truly and cer- tion offered to build Dale a home, Dale Territory Guard, all distinguished tainly going to happen. If this were and John were both inspired to assist Alaskan Native Elders, finally got the happening today on the east coast of other handicapped veterans. Today recognition they earned for their cou- America, this storm would have some their nonprofit Purple Heart Homes, rageous service to this Nation more name to it, and we would not be hear- headquartered in Statesville, NC, helps than a half century ago. We can see by ing or reading about anything else but build and adapt homes for service-dis- this poster, a few of them here long be- that storm. To give you a concept of abled veterans. fore Alaska was a State and our coun- how far reaching this storm is, imagine Dale and John represent, as ADM try was engaged in World War II, these a storm reaching from Mexico, along Mike Mullen said, ‘‘part of a genera- Alaskan heroes answered their Na- the west coast, up to Washington tion who is flat out wired to con- tion’s call on America’s most remote State. That is the size of the storm tribute, flat out wired to serve.’’ As frontlines. that is occurring right now. GEN David Petraeus told Time maga- In 2009, the Senate approved an So if you think veterans in other zine, our veterans ‘‘have had to show amendment to the National Defense parts of the United States face chal- incredible flexibility, never knowing Authorization Act that I sponsored lenges in employment, job training, ac- whether they’re going to be greeted with my colleague, Senator MUR- cess to health care, and there is no with a handshake or hand grenade. KOWSKI, that President Obama signed doubt they do, you should see some of They’ve been exposed to experiences into law. Twenty-five surviving terri- our circumstances in Alaska. that are totally unique. . . . I believe torial Guardsmen finally received their Here are two stories about real Alas- they are our next great generation of retirement pay and recognition they kans. The first story is about a dis- leaders.’’ earned so many years ago. I have done abled Army veteran living in Kipnuk, a There are many more Dale Beattys my level best to support our troops in small Yupik Eskimo village on the far and John Gallinas out there, but we other ways, including expanding serv- western coast of Alaska. This vet suf- cannot leave our next great generation ices and programs for homeless vet- fered a spinal cord injury in 2006 that of leaders standing in an unemploy- erans, including more support for requires yearly evaluation. He must ment line. We must come together and women veterans and expanding tele- travel to a VA hospital in Seattle to fight for our veterans and their fami- health services for our rural veterans. receive his care. That is a trip of thou- lies just as hard as they have fought Supporting the post-GI bill. This pro- sands of miles and thousands of dollars. for our freedoms. We must pass the vides tuition assistance for veterans Additionally, for more routine ill- VOW to Hire Heroes Act. and takes into consideration living ex- nesses, such as the flu, he is forced to I suggest the absence of a quorum. penses so students can better focus on travel to Anchorage, to a VA clinic The PRESIDING OFFICER. The their education. It allows for service- there, still a jet flight away from his clerk will call the roll. members to pass this entitlement to home, and, again, close to $1,000. The assistant bill clerk proceeded to their immediate families. There is the retired Air Force vet- call the roll. Every time I meet a veteran, I thank eran who needed to have hardware re- Mr. BEGICH. Mr. President, I ask him or her for their service to our moved from his wrist and shoulder fol- unanimous consent the order for the country. I know they appreciate that. lowing a failed surgery. The VA sent quorum call be rescinded. All Americans should go out of their him to the hospital in Seattle despite The PRESIDING OFFICER. Without way to thank our veterans, not just on the fact that several hospitals in An- objection, it is so ordered. Veterans Day but every day. But thank chorage—closer and less costly to get Mr. BEGICH. Mr. President, I rise you only goes so far. It doesn’t pay the to—could have performed the proce- today to express my strong support for mortgage or buy groceries. Our vet- dure. the VOW to Hire Heroes Act. Very sim- erans really need good jobs. The statis- There are many stories similar to ply, it is a bill that will help our re- tics are shameful. More than one in this that I hear every single day when turning heroes get good jobs as they four veterans under the age of 24 is I travel my State. It doesn’t matter transition back into civilian life. without a job. A quarter million post- where I go; one veteran or veteran’s The bill is supported by Democrats 9/11 veterans are unemployed. family member will tell me a very and Republicans alike. I look forward As you can see by this chart, that is similar story. That is why we continue to the passage of this bill tomorrow— a 12-percent unemployment rate, and it to push for a piece of legislation that I perfect timing as our country prepares simply is unacceptable. The VOW to have introduced, the Alaska Hero’s to honor the bravery, sacrifice, and Hire Heroes Act will create new direct Card. It is so simple when you look at commitment of our American veterans. Federal hiring authority so jobs will be what we are trying to do. Since I first walked into this Cham- waiting for our veterans the day they If health care services are available ber nearly 3 years ago, it has been a leave the military. It will provide tax closer to home, then any Alaskan vet- great privilege to serve on the Com- credits for employers who hire veterans eran would simply present the card at mittee on Veterans’ Affairs. I am also and wounded veterans who have been the federally qualified health clinic proudly serving on the Armed Services looking for work. It will improve the and get the services. It limits their Committee. From these positions I transition process as servicemembers time traveling away from their fami- have worked on behalf of the 74,000 vet- leave the battlefield and enter the lies, it lowers the costs of the VA, and erans who call Alaska home and the workforce. This legislation also ex- it gives services where they need them more than 28,000 Active-Duty and Re- pands training opportunities at com- and can get them. It is truly a win-win. serve component men and women serv- munity colleges and technical schools More importantly, it allows, as I said, ing our great country. for 100,000 unemployed veterans who veterans to be with their families. My State of Alaska, for all its unique served before September 11. It expands Mr. President, you have been an in- geography and demographics, has the additional Montgomery GI benefits for credible advocate on health care issues. distinction of being the home of the older veterans for up to 1 year. When you try to do health care reha- largest proportion of veterans per cap- Let me take a few moments to talk bilitation and services and take some- ita of any other State in our country. about an additional challenge faced by one from a rural community and take

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00051 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.080 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7280 CONGRESSIONAL RECORD — SENATE November 9, 2011 them to a large community, the odds to imagine. The toxins coming out of ity. PSEG has already invested re- are the rehabilitation will go slower or smokestacks like these don’t dis- sources to reduce soot, smog, and mer- the service will not be as effective. We appear. They typically wind up pol- cury pollution by more than 90 percent. have to do what we can to ensure that luting playgrounds and school yards in In the process the company has created they have the service closer to their New Jersey, and other eastern States. over 1,600 construction jobs. That is homes and their families and at a lower In fact, a single powerplant in eastern why PSEG supports the EPA rule. cost. Pennsylvania is responsible for more Ralph Izzo, the president of the com- As we approach Veterans Day, I sulfur pollution in New Jersey than all pany, said: would like to recognize the Arctic war- our State powerplants combined. Our experience shows that it is possible to riors serving our country. The mem- This year the Environmental Protec- clean the air, create jobs, and power the bers of the 4th Stryker Brigade Combat tion Agency took a major step toward economy at the same time. Team from Fort Wainwright, AK, have protecting children from out-of-State The bottom line is, this rule will pro- been serving with distinction in Af- emissions when it adopted the cross- tect the health of our economy, our ghanistan since May of this year. The State air pollution rule. This common- workers, and our children. I urge my 4th Airborne Brigade Combat Team sense safeguard requires polluters to colleagues to reject this dangerous will deploy to Afghanistan at the end reduce the levels of dangerous soot and amendment and protect every Ameri- of this month for a total of more than smog that they release into the air. can’s right to breathe clean air. 9,000 Alaskan-based troops on the The rule sends a clear message to pow- With that, I yield the floor. ground there. erplants in upwind States that they The PRESIDING OFFICER. The Sen- In addition, there are 550 airmen and can no longer dump their dirty air on ator from Maryland. soldiers still in Iraq today but will be States that lie downwind. Mr. CARDIN. Mr. President, earlier coming home by the end of the year. Unfortunately, one of our Republican today in the Environment and Public Our Alaska National Guard units and colleagues has proposed a resolution to Works Committee—the Presiding Offi- members are in both countries, Iraq block the EPA’s efforts. This mis- cer was at that meeting—something and Afghanistan. guided message would put polluters’ unusual happened. We had a major bill To our Arctic warriors, thank you. profits before the health of our families that will extend the Highway Surface Thank you for your service and sac- and children, and the consequences Transportation Act for 2 years, passed rifice to our country, and thank you to would be devastating. by a unanimous vote, all the Demo- the families who are supporting our Air pollution can cause asthma at- crats and Republicans joining together Arctic warriors as they serve this great tacks, heart attacks, strokes, and can- in order to move forward a bill that country. So to honor them and all the cer. Long-term exposure can also dam- will help create jobs. I hope we will brave men and women who have served age the immune, neurological, and re- find the same spirit of cooperation on and are currently serving, let’s come productive systems. Nationally, almost the legislation that is now before us. It together on the floor of this Chamber. 1 in 10 children now suffer from asth- helps create jobs for our community Let’s put our differences aside. Let’s ma. That is according to the Centers and, with the Tester amendment, we pass the VOW to Hire Heroes Act and for Disease Control and Prevention. In have a win-win situation. help put America’s veterans back to some parts of New Jersey, one out of This, first and foremost, is about cre- work. every four residents has asthma. We ating jobs. The Tester amendment al- I yield the floor. should be working to make skies clean- lows us to create more jobs that will The PRESIDING OFFICER. The Sen- er for these children—not dirtier. help American families, help our econ- ator from New Jersey. Some on the other side say we cannot omy, and even help our budget deficit, Mr. LAUTENBERG. Mr. President, I afford to worry about the health of our because when more Americans are ask unanimous consent that I be per- children and our communities right working, more are paying taxes, and mitted to speak as in morning busi- now. They claim the new rule will kill less government services are needed. ness. jobs. This is not about killing jobs, it is All agree we need to help our return- The PRESIDING OFFICER. Without about saving lives, and we should not ing veterans, those who have served so objection, it is so ordered. allow ourselves to be misled. According well in Iraq and Afghanistan, defending AIR QUALITY to EPA, the new rule will prevent 34,000 the principles of our country and de- Mr. LAUTENBERG. Mr. President, premature deaths and 15,000 heart at- fending our basic freedom. On Friday, with all of the important issues we tacks from taking place. we will celebrate Veterans Day, and I constantly face in life, none compares The new standard would also prevent know all of us will be speaking about to our concern for the health of our as many as 400,000 asthma attacks, im- how much we appreciate the service of children. But the health of our children proving life for children such as my our veterans. We need to show our ap- depends not only on us but what others own grandson who suffers from asthma. preciation not only by words but also might be doing—such as poisoning our My daughter makes sure she finds an by deeds. Yes, we fight to make sure air with secondhand smoke or delib- emergency clinic before my grandson our veterans have the health services erately fouling the air our kids plays ball or indulges in a sport be- they need, and we want to make sure breathe. cause if he starts to wheeze, he has all of our military have the support Few would stand by while a smoker problems. they need. We want to make sure our puffs away where your child is inhal- My sister, who was on the board of military families are properly taken ing. That is why we worked so hard to education in a city in New York State, care of. But one thing we can do with prohibit smoking on airplanes—to keep was at a board of education meeting this legislation is help veterans get someone else’s smoke out of our chil- when she began to start to wheeze. In jobs when they return home. dren’s lungs. Yet when emissions from her car she kept a small device, a little The unemployment rate among our a powerplant in one State threaten respirator, and she ran for the parking returning veterans is higher than the people in a neighboring State, too lot. She didn’t make it. She collapsed unemployment rates in our general often nothing is done about it. Make no in the parking lot and died 3 days later. community. We need to help our vet- mistake, pollution doesn’t recognize For those who insist we cannot have erans find employment. That is one State boundaries. Communities across both clean air and a strong economy, I way we can show our appreciation for our country are being forced to bear say we cannot have a strong economy the men and women who have served the consequence of another commu- without clean air. Simply put, if you our Nation. nity’s polluters, and this is happening cannot breathe, you cannot work. The bill before us, with the Tester in my State of New Jersey, where peo- The fact is, many powerplants, fac- amendment, will give incentives to em- ple are suffering because dirty air is tories, and other companies are ready ployers to hire returning warriors from blowing into our communities from to work with the EPA to reduce their Iraq and Afghanistan. It will expand out-of-State smokestacks. impact on the environment. Take the the education and training services so Look at this horrible picture. Any- example of Public Service Electric and they have the skills necessary for civil- thing more threatening would be hard Gas, which is New Jersey’s largest util- ian employment. It will help us deal

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00052 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.082 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7281 with a chronic problem we have of re- I am reminded of the discussion we way, was 1928, the year before the turning veterans, under the age of 24, had over the summer that consumed Great Depression and the market where the unemployment rate is 21 per- the Congress for an entire summer, crash. The top .1 percent earns 10 per- cent. This bill, with the Tester amend- about the lifting of the debt ceiling. cent of the economy—.1, not 1 per- ment, will allow us to do something to Article after article after article said cent—.1. The last time that was true help our returning veterans and help that if the Congress couldn’t figure out was 1928. All through the productive our economy. how to work this out in a bipartisan times in the 20th century, the 1950s and But the underlying bill also goes fur- way and make a material difference in the 1960s and the 1970s, there wasn’t ther. It helps small businesses. Small the trajectory of our deficit and our that kind of imbalance in our economy. businesses are the growth engine of debt that, for the first time, our credit This group earned roughly—90 percent America. That is where job creation rating would be downgraded. For the earned roughly 70 percent of the econ- takes place. That is where innovation first time in the history of the United omy and everybody else earned a fair takes place. We currently have a re- States of America, the full faith and share of the economy, and the economy quirement that has not yet gone into credit of the United States would be grew and we were able to build for the effect that would require small busi- called into question. future. nesses that have contracts with the That was on the front page of every Those are structural issues in the government over $10,000 to withhold 3 newspaper for weeks. In the end, we economy we can help with, we can percent of those funds in order to make stumbled across that finish line, and in work together to fix, but what we have sure taxes are paid. We need to repeal the end our debt was downgraded. I to do right now is avert predictable cri- that provision, and this bill will repeal would argue we are about to face the ses that are within our control so we that provision. We should go after same thing again and have the chance don’t make matters worse. those who are delinquent in taxes, and again to do the right thing—to act in a Sometimes when I travel, people we have a provision to make sure we do bipartisan way, to create a thoughtful don’t know why we need to worry that, but for small business to tie up approach to our debt and our deficit about what is going on in Europe. This that type of capital affects their abil- that allows us to continue to invest in afternoon I wanted to bring a chart ity to compete. It affects their ability our economy. that shows the soaring debt of all these to expand job opportunity. Repealing Families in Colorado, much as the European economies and the United that provision is important to help families in Rhode Island, are struggling States. We are the blue line here. This small business help our economy. in an economy that is the worst since is Greece up here. Everybody is in It also would eliminate an adminis- the Great Depression. We are coming tough shape. Everybody has made trative burden for a lot of our local out of it now, but there are significant promises they can’t keep. Everybody governments. It also will make it more structural issues in that economy. I has levered up in a way that isn’t sus- competitive for small businesses. The have shown this chart before. There are tainable. But what is also true is that 3-percent withholding would affect ac- four simple lines. The blue one is the we are all interrelated. If something tually the cost of production. All that productivity index, which shows our bad happens in Europe, something very means a stronger economy and more economy has actually gotten substan- bad is going to happen here, just as jobs. tially more productive since the early when the capital markets fell apart at This bill is a win-win bill. It helps 1990s, substantially more productive the beginning of the last recession. our veterans. With the Tester amend- during this recession for a variety of This chart shows how dependent our ment, it helps small businesses by re- reasons. One reason is that our compa- economy is on exports to Europe. Be- pealing a provision that is extremely nies have had to learn to compete with tween one-fifth and one-sixth of the burdensome. It is fully paid for so it the rest of the world in a way they total value of our exports goes to Eu- does not add anything at all to the def- have not before, so they became more rope. If the European banks fail, if the icit, and it will help us grow our econ- efficient. The benefits technology has governments can’t pay back their debt omy. By passing this bill, not only will brought has driven up this curve. Un- and the economy comes to a screeching we help our veterans, we will help our fortunately for our workers but under- halt in Europe, they are not going to small businesses and we will help our standably for our businesses, they have buy our exports. Those are American economy. had to figure out how to get through jobs we need to worry about. Those are I urge our colleagues to show the this recession with fewer people so American jobs we need to defend and same type of cooperation we did on the they can get through to the other side. protect and we need to understand this surface transportation bill today in our The second curve is our gross domes- relationship. committee. Let’s use that same spirit tic product, the size of our domestic Look at the exposure of our U.S. of cooperation to get this bill moving, economy, and it is not where it was be- banks to Europe. This red part is the with the Tester amendment. Let us fore the recession, but it is headed euro area. It is 29 percent of the total pass it and send it back to the House back there. international exposure of our banks, and, hopefully, we can get it to the The other two lines are the unem- with 23 percent to the U.K. More than President shortly for signature and ployment level, which this chart says half of the foreign exposure of our help our veterans and help our econ- is 14 million people, but I think the banks is European debt. omy. number is closer to 25 million, when we We were unable to come to a rational With that, I yield the floor. consider who has stopped looking for conclusion on the debt ceiling. So the The PRESIDING OFFICER. The Sen- work and when we consider who is un- Congress punted this decision to a ator from Colorado. deremployed in this economy. Then supercommittee and asked them to THE GLOBAL ECONOMY this line is a tragedy for our families, please help us make the decision. My Mr. BENNET. Mr. President, I am which is falling median family income. own hope is that the supercommittee going to replace the Presiding Officer This chart—it is a little hard to takes a page out of the bipartisan pro- in the chair in a few moments, but be- read—is a pretty good depiction of posals that were reached—the one that fore that, I wished to come to the floor what is happening. This red line rep- was led by Bowles and Simpson, the and talk about our economy and some resents the bottom 90 percent of in- one by Rivlin and Domenici. I think work this Congress needs to be engaged come earners in this country. Think the details are less important, frankly, in if we are going to get things moving about that. We are talking about the than the size, but that takes $4 trillion on the right track again. bottom 90 percent. That is everyone, out over the next 10 years, a balance of Today, the stock market plunged 400 except for 10 percent. It shows the cuts to revenue of roughly 3 to 1, that points because of concerns that are share of the income in the United sends a message to the world that the going on in Europe, especially with States that they are earning. It starts United States is serious about dealing Italy. It is a debt crisis that has been out here in the 1920s and goes to today, with its fiscal matters. If we don’t do on the front page of every newspaper where the bottom 90 percent are earn- that in advance of this European crisis around the globe for weeks and in some ing roughly 47 percent of the income. that is on the front page of every news- cases months. The last time that was true, by the paper in the country, I can assure my

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00053 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.083 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7282 CONGRESSIONAL RECORD — SENATE November 9, 2011 colleagues that the choices we have in end of the day, these challenges are the imposing additional regulations is a front of us will be even tougher than challenges of the American people, not step in the right direction. they would have otherwise been. the challenges of a bunch of politicians In places across the country, such as Sometimes I get the feeling that peo- in Washington who are worrying about my home State of South Dakota, there ple around here actually don’t think the next election. is still work to be done when it comes the American people are watching this My hope is the supercommittee to unfettered and affordable access to screaming match, are watching the dis- shows leadership here, that it gives the high speed broadband. With the FCC agreements, are watching the political opportunity for every Member of this voting recently to reform the Universal games, but they are. They know ex- body to express their leadership here, Service Fund to shift to a focus on actly what is going on here, and they and that all of us are able to go home broadband deployment, it seems to me understand the seriousness of these to red parts of our State and blue parts that simultaneously moving forward issues because they are living through of our State and say to the people: We with net neutrality regulations will that economy I spoke of earlier. That saw the problem coming, and we led have a chilling effect on this now thriv- is what they are worrying about. They the world. We materially addressed the ing industry. are making less today than they were problem we faced. We acted in a bipar- We learned last week from the De- 10 years ago. They are making the tisan way. We came up with a plan that partment of Labor that the unemploy- same amount they were making 20 said: Do you know what. We are all in ment rate still hovers around 9 per- years ago. They can’t afford to send this together for the benefit of our kids cent. The American people want to see their kid to college. They can’t afford and our grandkids, for the people who Federal policies that encourage inno- their health care, and they would like are suffering through this economy. vation and spur job growth, not yet an- us to help straighten that out, but at a There is $2.3 trillion of cash sitting other regulatory overreach by an over- minimum they would like us to pre- on companies’ balance sheets in the zealous agency. Unfortunately, the vent matters from getting worse. They United States of America tonight that FCC net neutrality policy will give would like to see us work together. is not being invested because no one considerable authority to unelected bu- Some people here think Congress has knows what interest rate environment reaucrats to decide what a company’s always been unpopular, that it is just they are going to be in because they do network management should look like. The Federal courts have ruled that as an institution an unpopular place. not know what Washington is going to the FCC lacks the authority under the Not so. Look at this. Here is Congress’s do. We shattered confidence in this Telecommunications Act of 1996 to approval rating today: 9 percent. That economy this summer. We should not move forward with net neutrality regu- is a pretty catastrophic fall-off in the do it again. lations. Still, the Democratic ap- last 10 years, and I would argue it has This is a popular number, this 9 per- pointees of the FCC have persisted, an awful lot to do with our inability to cent, these days, you may have no- without regard to the courts, to settle address problems the way people in ticed, on the Presidential campaign the political debt owed by the Obama their local communities are doing. trail. It is not a popular number for the administration to special interest There is not a mayor in Colorado who American people: 9-percent approval. groups in favor of regulating the Inter- would threaten the credit rating of Let’s do something right here, and let’s net. The FCC and this administration their community for politics—not one. drive these numbers back up, and let’s must be brought into line and abide by Not a Republican mayor, not a Demo- restore confidence in the American the separation of powers. The FCC cratic mayor, not a tea party mayor, people. must only execute the responsibilities not one would imagine doing it for a With that, Mr. President, I thank you given to it by Congress and not over- second because people in our commu- for your patience and yield the floor. reach its regulatory authority. nities would know that all that would The PRESIDING OFFICER (Mr. BEN- Freedom of the Internet belongs in do would be to drive up our interest NET). The Senator from South Dakota. the marketplace, not in the hands of rates, make us spend more money on Mr. THUNE. Mr. President, I ask Federal regulators. The FCC has moved interest and less on infrastructure, unanimous consent to speak as in forward to fix a problem that does not more on interest and less on education, morning business for up to 15 minutes. exist. This is a solution in search of a The PRESIDING OFFICER. Without more on interest and less on the health problem. Industry-imposed standards objection, it is so ordered. and welfare of our citizens. and transparency have the capability We know that at the local level, but NET NEUTRALITY ORDER to increase competition, while more somehow here we get to color outside Mr. THUNE. Mr. President, I rise unnecessary government regulations the lines. We are now at 9 percent, today in support of S.J. Res. 6, a reso- will almost certainly have the opposite which is almost at the margin of error lution of disapproval of the FCC’s net effect. for zero. We did some research to find neutrality order. Under a light regulatory structure, out what else is at 9 percent. We could Over the last 2 years, the Federal the Internet has become vital to com- not find virtually anything in public Communications Commission put for- merce and our Nation’s economy over polls taken all across this country. My ward a variety of what are considered the past 15 years. The Internet has goodness, the Internal Revenue Service net neutrality policies. On September helped digitally shrink the distance has a 40-percent approval rating com- 23 of this year, the FCC published a that otherwise would inhibit the free pared the our 9 percent. BP had a 16- final rule in the Federal Register which flow of ideas, information, and business percent approval rating at the height is set to go into effect on November 20 transactions from one part of the world of the oilspill, and we are at 9 percent. to impose harmful net neutrality regu- to another. The Internet’s adaptability There is an actress who is at 15 per- lations on our Nation’s telecommuni- and decentralized characteristics are cent. More people support the United cations companies. central to that success. States becoming communist—I do not, The digital world in which we now This Federal regulatory action rep- for the record—at 11 percent than ap- live has changed dramatically the way resents unnecessary government over- prove of the job we are doing. I guess we retrieve information, communicate reach and has the potential to seri- we can take some comfort that Fidel with one another, and engage in com- ously damage an increasingly impor- Castro is at 5 percent. merce. Technological advances, even in tant sector of our economy. I do not Look, we are suffering—and when I the last few years, have pushed our believe the Federal Government can say ‘‘we,’’ I mean families across this economy forward. These advancements successfully regulate network access country—through the worst recession in technology and their adoption often and development without negative ef- since the Great Depression. We can see depend heavily on access to broadband fects on the consumer or the industry. on the front page of every single news- technologies. Allowing this unnecessary regulation paper what the stakes are here if we do While the telecommunications indus- to move forward has the potential to not act in a comprehensive way on our try has flourished, boosted our econ- stifle broadband deployment and com- debt and our deficit. We know that omy, and made critical investments in petition, which could ultimately lead both parties have different approaches broadband deployment across the coun- to fewer choices for consumers, higher to the challenges we face. But at the try, this administration believes that prices, and discourage innovation.

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00054 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.085 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7283 I believe the net neutrality regula- percentage of our entire economy, is are looking to obtain needed capital tions, if allowed to move forward, will growing relative to our private econ- because it requires investors to have a have negative effects on this industry omy. We want to see the private econ- preexisting relationship with an issuer and our economy, and I would encour- omy grow and expand and the Federal or intermediary before the potential age my colleagues, tomorrow, to sup- economy get smaller. investor can be notified that unregis- port this resolution of disapproval. Our job creators also want to see our tered securities are available for sale. The economy does not need this. Our Tax Code reformed in a way that is So if a small business is looking for job creators do not need this. And the simple, clear, and fair, and that pro- investors, unless they have a pre- millions of Americans who are bene- vides the right types of incentives for existing relationship with that inves- fiting from the information revolution them to create jobs and does not drive tor, there is no way for them to get the that has been brought about by the investment overseas and create jobs message out that they are looking for Internet do not need this either. there as opposed to creating those jobs capital to those with whom they do not This is an opportunity for us to send right here at home. have that kind of relationship already a little bit of a message to industry If we can get tax reform that lowers in place. that we understand, we get what they rates on individuals and businesses and The provision as it currently exists are saying about overregulation, we broadens the tax base in this country, severely hampers the ability of small get that these piles of regulations con- I think you will see an explosion of businesses to obtain needed capital tinue to drive up the cost of doing busi- economic growth, which is ultimately from investors, and as a result, many ness in this country. the best solution we could possibly businesses are limited to only the uni- My colleague, the Presiding Officer, have to all the fiscal, economic chal- verse of investors with which they noted in his remarks the need for eco- lenges our country faces. clearly have these preexisting relation- nomic certainty—businesses need to Our job creators want smart, com- ships. know what the rules are going to be. It monsense regulations, not more and This legislation would remove that seems to me, at least, that creating a more regulation for regulation’s sake, solicitation prohibition and allow busi- whole set of new rules and piling new which I think is what we see a lot nesses to attract capital from accred- regulations on this very important me- today. We have seen bill after bill that ited investors nationwide. dium—on a way in which we have has passed the House of Representa- With unemployment at 9 percent, we grown commerce in this country, tives that is designed to sort of roll need to pass legislation that will en- opened markets across the world, cre- back the overregulation, the regu- able our job creators to expand and to ated opportunities for consumers in latory overreach we have seen from create jobs. this country to become more produc- this administration. Many of those As I said, this bill passed with over- tive with their lives—is an absolute bills have come over here to the Sen- whelming bipartisan support in the wrong approach at this particular ate, where they have died, unfortu- House of Representatives. I would hope point in time, particularly with the un- nately. we can do the same in the Senate and employment rate being what it is. But we need to be looking at these address this very fundamental need We want to make it less expensive, things in a way that will again lower among our businesses, our small busi- less costly, easier for our job creators the impediments, lower the barriers, nesses, to get access to much needed to create jobs in this country, not put lower the hurdles to job creation in capital to expand their businesses; up unnecessary barriers and more ob- this country. That is why I think that, along with using a commonsense stacles and drive up the cost and make smart, commonsense regulation is the approach to regulation, an approach it more difficult for people in this way to go, and to get away from the that gets away from this massive 61,000 country to create jobs. regulatory overreach we are seeing all pages of new regulations that we have Businesses are looking for economic too much of today. seen issued since this administration certainty. They are looking to Wash- We need affordable energy policies, took office, to tax reform that is sim- ington, DC for policies that will lessen opening access to the vast resources we ple, that is clear, that is fair, that pro- the impediments and the number of ob- have in this country. We need to open vides incentives to keep jobs here at stacles to job creation in this country. markets around the world and look at home as opposed to shipping them ACCESS TO CAPITAL FOR JOB CREATORS ACT ways we can make our small businesses overseas, affordable energy policies, re- Mr. President, I also want to mention create more opportunities for them to ducing government spending, improv- in that vein that earlier today I intro- export their products to other places ing export opportunities for our small duced a piece of legislation called the around the world. businesses. Those are the types of poli- Access to Capital for Job Creators Act. But the legislation I have introduced cies our job creators have said they This bill will make it easier for small today addresses yet another issue need. businesses to better access capital in which I think small businesses have We are going to have an opportunity order to expand and create jobs. talked about; that is, access to capital. to vote on the rollback of this net neu- If you think about the things the job We need to better address the need for trality regulation and some other regu- creators around the country want and capital in order to create jobs and ex- lations tomorrow that are making it need in order for them to get that cap- pand our economy. more difficult, more costly for our ital off the sidelines, to get out of cash Last week, the House of Representa- small businesses to create jobs. I hope and to get invested again and get that tives passed this very bill. It was intro- we will see strong bipartisan support money back into our economy and duced by Representative KEVIN MCCAR- both with the disapproval resolution back into creating jobs, they want to THY. On a near unanimous vote in the that we are going to be voting on net see a government that lives within its House of Representatives of 413 to 11 neutrality, as well as the one on cross- means. They want to see a government they passed this legislation and sent it State air permitting. Those are both that does not spend money it does not this direction. This bill would allow things that I think will do a lot to have. small businesses to better attract cap- make it less expensive for small busi- We have to be serious about cutting ital from accredited investors nation- nesses in this country to create jobs. spending here at the Federal level and wide under rule 506 of Regulation D of I hope as well that we will look at getting back to more of a historic the Securities Act of 1933 by removing other opportunities in the form of the norm when it comes to the cost of our the general solicitation provision. legislation introduced by Senator government as a percentage of our en- That sounds like a lot of Washington MCCAIN, Senator PORTMAN, and others, tire economy. Historically, for the past speak, and it is. But the very simple that has a whole series of the things I 40 years, that has run in the 20- to 21- translation of that is this will make it mentioned, all of which will create jobs percent range. That is what we spend easier for small businesses to access and grow our economy, make this on the Federal Government as a per- the much needed capital they need to country more prosperous and stronger, centage of our entire GDP. Now it is up expand and grow their businesses. and put us on a more sound and eco- in the 24- to 25-percent range. That This provision is a roadblock in its nomic and fiscal footing as we head means the Federal Government, as a current form for small businesses that into the days ahead.

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00055 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.087 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7284 CONGRESSIONAL RECORD — SENATE November 9, 2011 I yield the floor. ployed servicemembers, Katie assumed my friend from Montana, Senator JON The PRESIDING OFFICER. The Sen- additional responsibilities in caring for TESTER. This Friday is Veterans Day. ator from Rhode Island. her younger sibling and helping her On this day every year, Americans join Mr. WHITEHOUSE. Mr. President, I mother, whom she referred to as a together to honor the men and women am here this evening to express my un- superwoman. Together, they shoul- in uniform who have served and sac- wavering support for the men and dered the burden of her father’s ab- rificed for our country. Think of the women who have answered the call of sence and kept the family intact and work we do for our veterans. Some of it duty in our military services, our sound. is very small. Small to us, but not Guard and Reserve, and for their fam- Katie described the feeling of—to use small to them. We have people call our ily members whose love and steady her words—silent suffering that can office all the time when their benefits support for them have carried our serv- occur when military families feel iso- are messed up, when redtape gets in icemembers through challenging times lated in civilian communities that may the way. I will never forget one last and difficult missions. not completely understand what it is year where one of the Patriot guards, In honor of Veterans Day, coming up like when a loved one is deployed. who stands on the side and holds the the day after tomorrow, and Military Kaitlyn is the daughter of an active- flag during funerals for our service- Family Month, which we observe all duty member. She talked about her ex- members, came to me in tears and said month long this November, we need to perience living in eight different States her son had been badly hurt serving our reflect on the enormous contributions and attending seven different schools. country. In fact, he had lost his leg. military families have made on behalf Kaitlyn is a highly motivated student When he came back, he was at Walter of all of us. and she explained how she threw her- Reed. He was fitted with a prosthetic Since September 11, the spouses, chil- self into her schoolwork during her fa- leg, and then he came home. When he dren and parents of our service men ther’s deployment. However, she cau- was trying to get his benefits, he was and women have been faced with huge tioned that for other students, the op- told he could not get his benefits for demands. They have endured repeated posite can also occur. Some students losing his leg—this is a true story—be- deployments, and spent many holidays may have a lot of difficulty focusing on cause the records had been lost that and birthdays and anniversaries apart their schoolwork when a parent is de- showed that he lost his leg. from each other. We should do every- ployed half a world away. As Kaitlyn He had no leg. We worked on it. And thing we can in our communities to so well put it, there is no one-size-fits- within a week we got his benefits. help military families cope with the all approach to coping with the stress Those stories are told all across the difficulties and stresses of these mul- of deployment. country. There is redtape. We must all tiple deployments. I am proud of Katie and Kaitlyn for help them. But it just goes to show, I commend First Lady Michelle their courage, their resilience, and when you see those stories what our Obama and Dr. Jill Biden for their their powerful articulation of a mes- young soldiers are doing every single commitment to our troops’ families sage that I hope everyone hears. We day. and for their work on initiatives to ad- owe our military families an enduring This also means fighting for legisla- dress the unique challenges military debt of gratitude for everything they tion that fulfills American’s promise families face in this environment. I es- have done. We should do everything we that we will care for our soldiers when pecially appreciate the First Lady’s re- can to ensure that no family feels iso- they return. When our soldiers signed cent visit to Rhode Island. It provided lated or left out or endures the silent up to fight for our country, there was a warm and welcome boost to military suffering Katie described. I hope every no waiting line. And when they come family members in my State, which American, as we approach Veterans home to the United States of America has the second highest per capita Na- Day, will actively support our military and they need a job or they need a tional Guard deployment rate of all the families, and do what we can to make home or they need medical care or they States, as well as a significant active- our communities more welcoming and need an education, there should not be duty presence at Naval Station New- supportive in accommodating their a waiting line. Yet, sadly, when you port. needs. look at the past decades, too often With so many men and women leav- As Veterans Day approaches, let’s there is. When I came into the Senate, ing home to serve on multiple deploy- celebrate our military families and rec- as my friend from Rhode Island came ments, the strain on the family can be ognize their extraordinary contribu- in in 2006, we all remember the horror particularly difficult. Last month I had tions. Let us thank not only our serv- stories with our veterans’ health care. the privilege of meeting two extraor- ice men and women but also the We remember what had happened at dinary Rhode Island students, Kathleen spouses, children, and other family our medical hospitals. We remember Callahan, who goes by Katie, and members who have shared in the sac- the stories of soldiers getting lost in Kaitlyn Hawley, who presented a pow- rifice of military service. We should the cracks. That is why we worked so erful and compelling message to school also remember the families of our civil- hard to make sure they got the health superintendents and educators from ian and intelligence servicemembers care they deserve. across Rhode Island who came together deployed in danger and away from We provided for historic funding in- to learn about how they can better re- their families around the world. creases to ensure top-quality health spond to the needs of military families. In concluding, I wish to also express care for American servicemembers and These two impressive young ladies my strong support for the bipartisan military retirees. We also passed a shared their personal stories and de- legislation the Senate is considering to post-9/11 GI bill to expand educational scribed the challenges their families boost employment opportunities for benefits for veterans who have served faced while their parents were de- veterans. Unemployment has been in the past decade. But there is more ployed. The event was part of a col- disproportionally high among veterans work to be done to support our vet- laborative initiative to help military- and we must act now. The last thing erans. connected children thrive in school our returning service men and women Consider two shocking facts. The un- through deployments. I was proud to need is to have to face an unemploy- employment rate for Minnesota vet- share in this joint effort with the ment line. I urge my colleagues to erans who have served since 9/11 is Rhode Island National Guard, with swiftly pass this much needed legisla- nearly 23 percent, the third highest in Governor Chaffee, with our Commis- tion, which I am very proud to cospon- the Nation. Yet our unemployment sioner of Education, the Commanding sor. rate is one of the lower ones in the Na- Officer of Naval Station Newport, our I yield the floor. tion. Our unemployment rate is two Military Child Education Coalition, The PRESIDING OFFICER. The Sen- points better than the national aver- and my senior Senator, JACK REED. ator from Minnesota. age. Yet it is almost double the na- Katie is the daughter of a National Ms. KLOBUCHAR. Mr. President, I tional average for veterans of the Iraq Guard member. She described how her rise today to speak in support of the and Afghanistan wars and more than father’s deployment affected the roles VOW to Hire Heroes Act 2011, which three times our State’s overall unem- in her family. Like most children of de- has been offered as an amendment by ployment rate.

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00056 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.089 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7285 Second fact. An estimated 700 Min- icemembers who have achieved certain In sharing the blessings that I received. nesota veterans are homeless on any skill sets through their military train- Let me know in my heart when my days given night. During the course of the ing. I am offering an amendment to the are through America, America, I gave my best to you. year, an estimated 4,000 Minnesota vet- VOW Act that will streamline erans will experience an episode of credentialing for returning military That is what those elementary school homelessness or a crisis that could lead paramedics. I learned about this one kids sang after the whole school had to homelessness. This is not right. time when I was driving around our been torn apart—with veterans at their That is why I am calling on my col- State and I met a number of those who side: ‘‘America, America, I gave my leagues today to vote to support the served in Iraq and Afghanistan. They best to you.’’ VOW to Hire Heroes Act. This impor- served as paramedics on the front lines, I think that is what we have to re- tant bill goes a long way in providing and they learned incredible skills and member as we approach this vote on our returning veterans the leg up they how to save lives. Those skills weren’t this VOW Act. This vote, to me, is so need in transitioning into the work- all transferable into becoming para- simple—that we simply give a tax cred- force. medics once they returned to the it so more employers will hire those I will list just a few important provi- United States. At the same time, we who have sacrificed for our country, sions of this bill. It encourages compa- have an incredible shortage of para- those who gave their best for our coun- nies to hire unemployed veterans by of- medics in our rural areas. try. That is what this vote is about. fering them tax credits to do so. The So I am going to introduce this as an Mr. President, I yield the floor. bill provides employers a tax credit of amendment that would fix this prob- The PRESIDING OFFICER. The Sen- up to $5,600 for hiring veterans who lem by encouraging States to give ator from Rhode Island is recognized. have been looking for a job for more paramedics credit for the military CROSS-STATE AIR POLLUTION RULE than 6 months, as well as a $2,400 credit medical training they have received. Mr. WHITEHOUSE. Mr. President, it for veterans who are unemployed for Not only does it help veterans, but it was fairly recently that this summer I more than 4 weeks. The bill also pro- relieves the shortage of emergency came to the Senate floor to commend vides employers a tax credit of up to medical personnel in rural areas. the Environmental Protection Agency $9,600 for hiring veterans with service- With commonsense solutions like for finalizing what we called the cross- connected disabilities who have been these and those contained in the VOW State air pollution rule, which limits looking for a job for more than 6 Act, I believe we can help returning the out-of-State pollution that one months. veterans transition into the workforce, State can dump into the wind currents Second, the VOW Act increases train- not only fulfilling our commitment to that drop on other States. ing for returning veterans so that by them but also helping to lift our econ- To my State, Rhode Island, this is the time they step out of their uni- omy. Having traveled to the western particularly important. Nearly a dec- forms they have the skills and the part of our State in the last few weeks, ade after the EPA began working to ad- tools they need to get out there and I cannot tell you the number of job dress this problem of interstate air pol- market themselves to find a job. The openings right now for welders and tool lution, we finally had a path forward bill does this by making it a require- and die. I have been at companies that that is sensible and protective of public ment for returning troops to partici- literally have dozens of openings—not health. That was then, this is now. pate in the Transition Assistance Pro- only starting jobs but for engineers. Today, Senator PAUL of Kentucky gram, a job-training boot camp coordi- They want military personnel and they proposes to halt this progress, to undo nated by the Departments of Defense, need to connect with them and we need that rule through a Congressional Re- Labor, and Veterans Affairs, that to encourage our employers to hire vet- view Act resolution. That resolution teaches veterans how to get those jobs, erans when they come back. would, one, void the cross-State air write those resumes, apply their mili- Our State has always been a State pollution rule and, two, bar EPA per- tary skills to civilian jobs. that understands the debt we owe to manently from ever writing a ‘‘sub- Third, the VOW Act expands edu- the men and women who have served stantially similar’’ rule. This means cation benefits for older veterans, peo- and sacrificed for us. We literally wrap that EPA could never use the Clean Air ple who are not eligible for the post-9/ our arms around them. I want to end Act to create a cost-effective pollution 11 GI bill. with a story from last Veterans Day. trading program to address upwind pol- The bill provides 100,000 unemployed After doing our statewide event, I lution. veterans of past eras and wars with up headed up to Wadena, MN, which is an Mr. President, this hits home in my to 1 year of additional Montgomery GI area that was torn apart by a tornado, State of Rhode Island. Rhode Island benefits to go toward education or literally ripped up. Their high school has the sixth highest rate of asthma in training programs at community col- was destroyed. The high school bleach- the country. More than 11 percent of leges or technical schools. ers were three blocks from where they the people in my State suffer from this Fourth, the VOW Act ensures that had been. On Veterans Day, they held chronic disease, and many of them are disabled veterans receive up to 1 year the annual event, but they could no children. of additional vocational rehabilitation longer have it at the high school, In 2009 there were 1,750 hospital dis- and employment benefits. which was destroyed. They could no charges in Rhode Island for asthma Last, the VOW Act allows service- longer have it at some of the other cases. Those hospital stays cost about members to begin the Federal employ- places they used to, so they were all in $8 million in direct medical costs, not ment process prior to separation, to an elementary school the entire time— to mention the costs of the medication help them transition seamlessly into all the high school kids and all the vet- or missed days of work and school. jobs at the VA, the Department of erans sitting on old bleachers in that On a clear summer day in Rhode Is- Homeland Security, or the many other elementary school. I spoke there. land, driving along the sparkling Nar- Federal agencies that could use their What I will never forget is the ele- ragansett Bay, commuting into work, skills and dedication. mentary school kids singing a song you will often hear the warning on The fact is our returning veterans that I had never heard before, but I had drive-time radio: have battle-tested skills that are valu- heard the melody. I remember the Ken Today is a bad air day in Rhode Island. In- able to employers in all kinds of fields. Burns movie on World War II. These fants, seniors, people with breathing difficul- Helping our veterans turn the skills are the lyrics: ties should stay indoors today. they learned in the military into good- All we’ve been given by those who come be- On those days, people in those cat- paying jobs not only honors our prom- fore, egories are forced to stay at home, ise to support those who have sac- The dream of a nation where freedom missing work, school, and other impor- rificed for our Nation, it also helps would endure, tant activities. Others even in good strengthen our Nation. The work and prayers of centuries have health are urged to avoid strenuous ac- brought us to this day, One of my top priorities in the Sen- What shall be our legacy? What will our tivities on these bad air days. These ate has been to cut through the redtape children say? are real costs—costs paid in lives and and streamline credentialing for serv- Let them say of me I was one who believed reduced quality of life, in medical bills,

VerDate Mar 15 2010 02:37 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00057 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.090 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7286 CONGRESSIONAL RECORD — SENATE November 9, 2011 public services strained responding to problems—at least in that State. Well, this rule will range between $110 billion health risks, and in missed days of it turns out this air pollution causes and $280 billion. At the same time, EPA work and school—all from pollution in problems downwind in other States. estimates that the rule will cost utili- our air. As the GAO report put it, tall stacks ties $4.1 billion to comply in 2012 and We don’t know everything about the generally disburse pollutants over another $.8 billion through 2014—a causes and cures of asthma, but we do greater distances than shorter stacks grand total of $4.9 billion against $110 know one thing: air pollution triggers and provide pollutants greater time to billion to $280 billion in quantifiable asthma attacks. We know air pollution react in the atmosphere to form ozone benefits. is a preventable problem. and particulate matter. At the lower end of the range, this Rhode Island has worked hard and For this antiquated practice, Rhode rule generates a 22-to-1 ratio of bene- made great strides to reduce air pollu- Island pays the price. Smokestacking, fits over costs. For every $1 in cost to tion. We passed laws to prohibit cars instead of scrubbing, is what is behind the polluters who are creating this pol- and buses from idling their engines and a lot of the ozone in Rhode Island that lution, to clean it up, there is $22 in to retrofit all State schoolbuses with gives rise to those bad air days. The benefit to the rest of the country. That diesel pollution controls. We require GAO found that more than half of the is a pretty good investment, and that heavy-duty vehicles used in federally boilers attached to tall stacks at coal is at the low end. funded construction projects to install powerplants do not have a scrubber to At the high end, if it is $280 billion, diesel pollution controls, adhere to the control sulfur dioxide emissions—more we are talking about a 56-to-1 ratio of anti-idling law, and use only low-sulfur than half, no scrubber, just a tall benefits over costs. We have people diesel. Our transit agency voluntarily smokestack to pump it out to the from polluting States who, to save a retrofitted half of its bus fleet with die- downwind States. Nearly two-thirds of buck for their polluters who are run- sel pollution control equipment. boilers connected to tall stacks do not ning it up smokestacks instead of But Rhode Island cannot solve its air have postcombustion controls for ni- scrubbing their pollution, to save the pollution problem on its own. In fact, trogen oxide. buck in putting the scrubber and quit Doug McVay, who is acting as chief of So how does it get to Rhode Island? smokestacking their pollution and Rhode Island’s Office of Air Resources, As GAO concluded, in the Mid-Atlantic dumping it on Rhode Island and other U.S. the wind generally blows from told me all of Rhode Island’s major States, are willing to blow $56 in bene- west to east. Ozone can travel hundreds sources of air pollution—not just pow- fits to Americans across the country, of miles with the help of high-speed erplants but any source that holds a even in their States. It doesn’t make winds known as the low-level jet. This major title 5 permit—emit less than any sense. 3,000 tons a year of nitrogen oxide, also phenomenon particularly occurs at The cross-State air rule is good for night due to the ground cooling called NO , and sulfur dioxide, also public health. It is fair. There is no X quicker than the upper atmosphere, called SO . other way Rhode Island can affect 2 which can allow the low-level jet to Let me repeat that. All major these States. We have done everything form and transport ozone and particu- sources in Rhode Island taken together we can to clean our air. We could stop emit annually less than 3,000 tons of late matter with its high winds. This wind map shows that condition. everything, and we would still be a these two pollutants. Polluters that These are all the midwestern power- nonattainment clean air quality State will be subject to the cross-State air plants, and this is the wind that carries because of what gets bombed in on us pollution rule in other States have sin- them down here to, among other from other States. If we don’t have gle units that emit more than that. States, Rhode Island. EPA defending us, we have no defense Some of the larger coal-fired boilers Five States on this map—Ohio, Penn- at all from States that choose to ex- may emit 10,000 to 12,000 tons of these sylvania, West Virginia, Illinois, and port their pollution rather than clean pollutants every year, nearly four North Carolina—have been identified it up. And it is very cost effective, bet- times the pollution emitted by all by EPA as contributing significantly ter than 51 by the highest estimates. Rhode Island major sources combined. to Rhode Island pollution. So that is why I will be voting against In Rhode Island, we are willing to This electricity that comes from un- Senator PAUL’s resolution to void this pull our weight in achieving air pollu- controlled powerplants tied to these rule. I urge my colleagues to do the tion reductions. Indeed, we have done tall smokestacks might seem cheaper same. more than pull our own weight; we are to consumers than a well-controlled I yield the floor. pulling above our weight. But we need powerplant, a powerplant that is The PRESIDING OFFICER. The Sen- all States to be pulling their weight, scrubbed instead of smokestacking its ator from New Hampshire. too, to make the air safe to breathe in pollution, but that is really not so. Mrs. SHAHEEN. Mr. President, I rise America from coast to coast. There are costs. The costs just got this evening to join my colleague from This year at my request the GAO shifted. The lungs of children and sen- Rhode Island and those who have come completed a report about tall smoke- iors in Rhode Island and other down- to the floor throughout the day today, stacks at coal powerplants. The report wind States pay for that cheap elec- to join them in strong opposition to found that in 1970, the year the Clean tricity, and, truth be told, the lungs of the efforts by Senator PAUL to nullify Air Act was enacted, there were two children and seniors in many of the the Environmental Protection Agen- what they call tall stacks—smoke- upwind States are paying as well. The cy’s cross-State air pollution rule. stacks over 500 feet in the United States upwind of Rhode Island are As we have heard on the floor, his States—two. downwind of someone else. Ohio and resolution would strip the EPA of its By 1985 there were more than 180 tall Pennsylvania are upwind of Rhode Is- authority to protect our air from cer- stacks. As of 2010, 284 tall smokestacks land, but they are downwind of other tain kinds of air pollution emitted by were operating at 172 coal powerplants, States. That is why EPA’s regulatory powerplants. That rule was put in place representing 64 percent of the coal-gen- impact analysis determined that specifically to protect downwind erating capacity in our country. The instate and upwind pollution reduc- States, such as New Hampshire and industry literally smokestacked its tions from this rule will save approxi- those of us in the Northeast and on the way into compliance with the Clean mately 3,209 lives in Ohio and 2,911 east coast, from air pollution that Air Act. lives in Pennsylvania every year by originates from outside our borders. I What do I mean by that? In the early 2014 and prevent hundreds of heart at- am particularly concerned by the at- days of the Clean Air Act, some States tacks, emergency room visits, and hos- tempts to stop these protections be- allowed sources of pollution to build pitalizations in those States. This rule cause in New Hampshire we have been tall smokestacks instead of installing opposed by Senator PAUL will even fighting for them for over a decade, and pollution controls. The concept back save an estimated 1,705 lives in his they are long overdue. then was that pollution sent high home State of Kentucky every year by Clean air is a bipartisan matter for enough into the atmosphere would be 2014. us in New Hampshire. As my friend and sent far away from the source and It is not just lives saved. EPA esti- colleague Senator AYOTTE noted on the would not contribute to air pollution mates that by 2014, the benefits from floor last night:

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00058 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.092 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7287 In New Hampshire, we have a long, bipar- tion, craft labor, and industrial manu- Many of the bravest 1 percent of tisan tradition of working to advance com- facturing. Companies such as Americans who shoulder 100 percent of monsense, balanced environmental protec- ThermoFischer Scientific, which has a the responsibility of keeping our coun- tions. plant in Newington, NH, is a leading try safe will be coming home all across I couldn’t agree with her more. She manufacturer of environmental moni- the country. As these servicemembers and I know that even if we eliminated toring equipment and a great example return to their families and many tran- all local sources of air pollution from that good policy creates jobs right here sition to civilian life, we need to make within New Hampshire’s borders, we in the United States. sure we are ready to make good on the would still have counties in the State By reducing air pollution, these pro- promises we have made. with unacceptably high levels of pollu- tections are estimated to provide about I asked leaders from the Colorado tion. That is because of the over- $640 million in benefits to the New veterans community to make rec- whelming pollution that comes into Hampshire economy alone. Nationwide, ommendations for how to make Colo- New Hampshire and the Northeast on the health and environmental benefits rado the best State for veterans and air currents from the Midwest. are estimated at $120 billion to $280 bil- military families to live and work. In the Northeast, we are considered lion each year. That is because when After months of thoughtful conversa- the tailpipe for the rest of the country. air pollution comes across our State tion, they produced a comprehensive That is why, in 1997, when I was Gov- borders, it is our New Hampshire com- report called ‘‘Better Serving Those ernor, New Hampshire joined with panies that are forced to make up the Who Have Served’’ that offers solutions seven other Northeast States to de- difference. Without these rules, we on how to address the challenges facing mand that the EPA begin cracking have an unfair system where the bur- America’s veterans. A key part of this down on this transported air pollution. den of keeping our air clean falls dis- report is a new proposal to create a Na- When New Hampshire joined that effort proportionately on downwind States tional Veterans Foundation, modeled in 1997, this is what I said about it: such as New Hampshire. after work being done in Colorado When you climb Mount Washington in New Higher air pollution costs our busi- Springs that enabled public and private Hampshire and see smog that is blown in nesses through the loss of worker pro- agencies to better collaborate to sup- from the Midwest, it’s clearly time for a na- ductivity and greater medical ex- port veterans and military families. tional crackdown on air pollution . . . it’s time to address the major sources of a pollu- penses, and it also affects our critical This week, I will introduce a bill to tion that is fouling our air and affecting the tourism industry in New Hampshire bring that Colorado-based innovation health of our people. We’ve done our part in which depends on the clean air of the to the rest of the country. The bill New Hampshire to cut down on emissions, White Mountains and the health of our would create a congressionally char- and it’s time for the EPA to get tough on beautiful lakes and forests and tered National Veterans Foundation to major polluters upwind. streams. In New Hampshire, this tour- support communities attempting to I have here a picture of the White ism industry and the outdoor recre- work on a blueprint model like Colo- Mountains, which is where Mount ation economy, much like in Colorado rado Springs. The foundation would Washington is. That is the highest where the Presiding Officer is from, help fill gaps in services to veterans by point in New Hampshire and, actually, supports 53,000 jobs, generates $260 mil- helping communities align and lever- in the whole Northeast. What this pic- lion per year in sales taxes, and ac- age their resources. ture shows very clearly is the impact counts for 8 percent of our State’s I have also joined Senator TESTER of this air pollution that is coming in gross domestic product. Transported and the Presiding Officer and cospon- from upwind. air pollution has a direct impact on sored the VOW to Hire Heroes Act. The We can see these are the White this industry, as we can see so clearly VOW to Hire Heroes Act does much to Mountains. On a clear day, you can see in this photograph, and on the quality help veterans find good-paying jobs, in- a beautiful blue sky, green trees, beau- of life of New Hampshire’s 1.3 million cluding providing significant tax incen- tiful landscape. On a hazy day, this is citizens. It is time for the EPA to move tives to businesses that hire veterans. the impact of that smog. It looks as if forward with their cross-State air pol- The Senate will likely be voting on somebody took a gray paintbrush and lution rules. this important legislation tomorrow, painted over the White Mountains in I urge all of my colleagues in the and I urge colleagues to support its New Hampshire. Senate to reject this resolution by Sen- passage. It is really unbelievable to me that ator PAUL and to protect the health Before I sit down, I wanted to men- we are here, 14 years after this action and welfare of all of the citizens in this tion that 2 weeks, maybe 3 weeks ago, was brought in 1997, still debating country. I was down in Colorado Springs visiting transported air pollution. The time for Mr. President, I yield the floor, and I Fort Carson, and I went to see an ele- debate is over. The air quality im- suggest the absence of a quorum. mentary school on the post. As a provements from this rule will benefit The PRESIDING OFFICER (Mr. former school superintendent, I have over 289,000 children who are at risk for BEGICH). The clerk will call the roll. spent a lot of time over the years in asthma in New Hampshire. New Hamp- The legislative clerk proceeded to schools and tend to want to be there shire has one of the highest rates of call the roll. when the children are there so that you childhood asthma in the country. In Mr. BENNET. Mr. President, I ask can actually get a sense of whether my State alone, air pollution is esti- that the order for the quorum call be there is any learning going on. This mated to cost businesses more than rescinded. meeting was different because it was a 17,000 lost days of work annually due to The PRESIDING OFFICER. Without meeting after school, after the children health problems. Yet we are still hear- objection, it is so ordered. had gone home. Ninety percent of them ing the same old arguments that forc- Mr. BENNET. Mr. President, I want live on the post. Their entire lives have ing polluters to clean up will hurt the to take just a few minutes to talk been defined by these two wars in Iraq economy, will hurt our businesses. No. about Veterans Day and important and Afghanistan. Their entire lives In fact, we have lots of research that work already going on in Colorado to have been defined by the deployment of shows that is not true. support our returning servicemembers one parent—in some cases two par- Talking points about job-killing reg- and their families. ents—who have served two or three or ulations ignore the fact that a recent This Friday, Veterans Day holds spe- four tours of duty on behalf of this economic analysis by the Political cial significance. America’s part in the country in Iraq and Afghanistan. Economy Research Institute found war in Iraq is coming to a close this Thousands of our troops are going to that the EPA’s cross-State air pollu- year, and we have started drawing be coming home over the next year. I tion rule and the proposed mercury down combat troops in Afghanistan. In think we need to be asking ourselves rule will create 290,000 jobs per year Colorado, that is going to mean about whether we really are ready to honor over the next 5 years in important sec- 400 Fort Carson soldiers will come the commitments and promises we tors of our economy such as construc- home from Iraq in December alone. have made.

VerDate Mar 15 2010 03:39 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00059 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.093 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7288 CONGRESSIONAL RECORD — SENATE November 9, 2011 As others have said tonight, when we The work that Chris began on my world dodging bullets and bombs to are coming out of what is the worst staff starting in 1993 was difficult, par- protect our freedom, then there should economic calamity we have faced since ticularly for someone who found such be no limit to the government’s com- the Great Depression, we need to make common cause with anyone who had mitment to do its part back home to sure we are doing absolutely every- worn the uniform of the Army, Navy, support them and their families. thing we can for these veterans but Air Force, Marine Corps, or Coast For Chris, each day was measured also for the people who are the moms Guard. Their cause became Chris’s con- not in minutes or hours but in phone and dads, the children at elementary cern day in and day out. The issues calls—as many as 50 calls a day. Some schools just like the one I visited, all changed with time, from veterans’ ben- were routine—soldiers or veterans across the country. efits and Agent Orange, to PTSD and needing absentee ballots, forms, or help The children in this school, according traumatic brain injuries, but what al- applying for benefits. For Chris, those to the teachers with whom I met, have ways remained was Chris’s special de- cases were the easiest the ones in faced extraordinary challenges at home termination to help those who had which a highly placed phone call or a as a result of all this. It is another ex- served their country and ensure that well-timed letter could be the lubri- ample of the work we should be doing they were always treated with dignity cant to make the State and Federal together here in a bipartisan way as we and respect by the government that bureacracy run more smoothly. But ask people to serve their country in had sent them into harm’s way. some of those calls were far from rou- these foreign wars. In all those years, Chris was my eyes tine. Take just one that resulted in a I continue to hope at some point and ears on the ground in Massachu- special moment just about this time there is going to be a breakthrough setts 7 days a week—the person who last year in Newton, MA, when Chris’s here and we are going to get past the listened to veterans and their families intervention helped right a wrong inad- partisan cartoon we have confronted about the many challenges affecting vertently committed years before by for the entire time I have been in the their lives. His compassion and his the Federal Government. Thanks to Senate and get back to the work of the presence helped me to take concerns Chris’s hard work, I was able to present American people and get back to the heard in conversations and transform a Congressional Gold Medal to the fam- work that will support the children in them into legislation to tackle human ily of 2LT James Calhoun, a member of that elementary school at Fort Carson. problems on a more national scale. the famed Tuskegee Airmen, who was I want to say on this floor and for this Among the efforts I worked on in the killed in World War II. The Tuskegee record how grateful I am to their Senate, you can see the imprint of Airmen had been awarded the medal teachers for teaching but also for giv- Chris’s visits to veterans across Massa- collectively in 2007, but Lieutenant ing their Senator an insight into the chusetts, including the Helping Heroes Calhoun’s daughter, Jean Calhoun lives of the young people they are serv- Keep Their Home Act, which provides Royster, was excluded from that cere- ing. protection for servicemembers and mony. When Jean reached out to Chris Mr. President, I yield the floor and military families against foreclosure and to my office, we intervened to help suggest the absence of a quorum. and increased interest rates; a measure secure the medal in honor of her fa- The PRESIDING OFFICER. The that made service life insurance avail- ther. It was touching to see the pride clerk will call the roll. able to reservists called to Active-Duty Jean felt for her father when she held The legislative clerk proceeded to and National Guard members; the his medal in her very own hands, but call the roll. Corey Shea Act, which allows eligible more than that, it was inspiring to Mr. BENNET. Mr. President, I ask parents of a fallen servicemember to be know that behind the scenes it was unanimous consent that the order for buried with their child in any of the 131 Chris’s diligence that helped to make it the quorum call be rescinded. cemeteries run by the VA’s National happen. The PRESIDING OFFICER. Without Cemetery Administration, if that child I also remember another special day objection, it is so ordered. has no living spouse or children; a $20 Chris helped make possible—the day I f million supplemental appropriation in pinned a Purple Heart on 22-year-old MORNING BUSINESS 2007 for VA centers; seven Vet Centers Sean Bannon of Winthrop, who was Mr. BENNET. Mr. President, I ask in Massachusetts benefited from the wounded in both legs in Iraq and spent unanimous consent that the Senate measure; and millions of dollars more 6 weeks recovering at Walter Reed. We proceed to a period of morning busi- in Federal grants from the Department held the ceremony at Fenway Park on ness, with Senators permitted to speak of Veterans Affairs for homeless vets Patriots Day in 2008. And the Red Sox for up to 10 minutes each. shelters located throughout Massachu- surprised Sean by allowing him to The PRESIDING OFFICER. Without setts. throw out the first pitch, with No. 38, objection, it is so ordered. For Chris, each of those legislative Curt Schilling, standing in as Sean’s efforts began with a human face: vet- catcher. He wasn’t on the field let f erans who were living on the streets in alone on the mound that day, but Chris TRIBUTE TO CHRIS WYMAN a country that at times had forgotten Wyman was the MVP of our team that Mr. KERRY. Mr. President, today I their sacrifices when they came home, day the unsung hero of a proper wel- would like to celebrate the remarkable grieving mothers and fathers who had come home for a real military hero, commitment demonstrated over nearly lost children on the battlefield, vet- Sean Bannon. That was a joyful day for 18 years in Senate service by one of my erans struggling during an economic the Bannon family and for all of us, but most loyal and longest serving aides, collapse that threatened them and for Chris it was just one of the many Chris Wyman, who retired October 31. their families with foreclosure, and ways he made a contribution. It was Chris Wyman eschews the limelight particularly families who had lost sons every day that Chris received calls of politics and the media. But I know and daughters to PTSD and the hidden from wives, husbands, and children him as a close friend and a humble, wounds of war and who had dedicated worried about loved ones on Active self-effacing, earnest public servant, themselves, with Chris’s help, to trans- Duty somewhere in the world or from who ‘‘walked point’’ for me in Massa- forming their mourning into mission to veterans enduring life-threatening chusetts on every issue and every case help others. health conditions. They, too, needed affecting military personnel, veterans, It is no understatement that Chris real action, not just a promise to get and their families. had one of the toughest and most de- back to them later. And whenever he For Chris, the work was always per- manding job in my Boston office, cer- got one of those calls, Chris would sonal. He understands the demands on tainly the most intense. He met so spring into action and stay at it until the military and their families better many at their most vulnerable and oth- he got the answers and results that than most, having enlisted and served ers still who were overcome by the these brave Americans and their fami- on Active Duty in the Navy before he deepest and most indescribable grief— lies deserved. came to work for me shortly after I and even anger. But it was Chris Among these solemn duties were began my second term representing Wyman who remembered always that if some that Chris rarely spoke about but Massachusetts. Americans were sent somewhere in the which are seared into him forever.

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00060 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.095 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7289 Again and again, he made personal vis- Beginning no later than January 1, of insurers expected to have MLRs its to the homes of Gold Star families. 2011, PPACA requires a health insur- below the legislated minimum and He would simply show up to visit, to ance issuer to provide an annual rebate their corresponding enrollment.’’ They comfort, and to help out after families to each enrollee if the ratio of the found that in 2009, ‘‘29 percent of in- received the phone call that every mili- amount of premium revenue expended surer-state observations in the indi- tary parent dreads the most. Chris by the issuer on clinical claims and vidual market would have [had] MLRs formed deep friendships with many of health quality costs, after accounting below the 80 percent minimum, cor- the families, friendships that will last for several factors such as certain responding to 32 percent of total enroll- a lifetime. While many quote Abraham taxes and reinsurance, is less than 85 ment. Nine states would have atleast Lincoln’s words, Chris lived them— percent in the large group market and one-half of their health insurers below through his actions, not his words, he 80 percent in the small group and indi- the threshold.’’ held sacred Lincoln’s pledge at Gettys- vidual markets. The study explained the impact in burg that our country will care for Supporters of PPACA tend to herald ‘‘member years,’’ which requires some ‘‘him who has borne the battle, and his the newly created, higher MLR require- explanation. Most health insurance widow and his orphan.’’ And so Chris ment as providing ‘‘better value’’ for policies typically have a 12-month du- did—at wakes, at funerals, in military policyholders compared to a lower ration, but individuals can enroll or hospitals and veterans homes, in all MLR. To the untrained ear, perhaps disenroll on a monthly basis. As a re- these difficult circumstances and the higher MLRs sound better since they sult, much of the accounting and actu- difficult days and months and years force health insurance plans are re- arial calculations that a health insur- that followed, Chris Wyman kept the quired to spend a larger percentage of ance plan makes are in member month faith. each dollar on medical claims. or year terms. A member year is 12 Chris did this for all veterans—in Jamie Robinson, a professor in the member months and could be one indi- their spirit and many times in their School of Public Health at the Univer- vidual or multiple persons. For exam- memory. But he also joined a special sity of California at Berkley, noted ple, if an individual is enrolled for 12 fraternity the tight knit ‘‘Band of that numerous organizations ‘‘have as- months, that is one member year, or if Brothers’’ who served with me during sailed low medical loss ratios as indica- two people are enrolled for just 6 months each, that is one member year. Swiftboat duty in Vietnam. He came to tors of reduction in the quality of care The study found that ‘‘if insurers below them in the 1990s and never lost touch provided to enrollees and sponsored the MLR threshold exit the market, with any of them, extending to them, legislation mandating minimum ra- major coverage disruption could occur as he did for so many Massachusetts tios.’’ However, he rightly concludes veterans, total dedication and commit- for those in poor health,’’ and they ‘‘es- that while ‘‘this is politically the most timated the range to be between 104,624 ment through hospital visits, weddings, volatile and analytically the least and funerals. It was no surprise, then, and 158,736 member-years.’’ This empir- valid use of the statistic.’’ ical analysis highlights the huge dis- that several years ago they made him In fact, a close examination of the ruption American consumers may face. an honorary member of their ‘‘brother- data suggests there are several reasons As health insurers consolidate, stop of- hood,’’ presenting him with a blue crew to be concerned with the one-size-fits- member shirt, exactly the same as the fering some insurance products, or exit all federally mandated MLRs in the market place altogether, Ameri- ones they wore so proudly whenever PPACA. Here are four key reasons why they were together. cans who like the high-quality private PPACA’s MLRs will likely negatively health plan they have will lose it. This It seems fitting that Chris is retiring impact American consumers and pa- so close to Veterans Day—a day to effect would undermine the President’s tients. promise to Americans that if they like honor America’s veterans for their pa- First, insurance markets across the the health care plan they have, they triotism, their love of country, and country threaten to destabilize. During could keep it. their willingness to serve and to sac- the health reform debate, opponents of rifice because for these past nearly 18 There is a second concern: Instead of the Federal takeover of health care consumers receiving ‘‘better value,’’ years, for Chris Wyman, every day was warned that the federally mandated Veterans Day. He is a shining example consumers face increased costs. Despite MLR could endanger the high-quality often-repeated arguments that feder- of service to those who have served. health coverage many Americans enjoy Mr. President, both Chris and I are ally mandated MLRs will result in because it could lead to market desta- proud to be Navy men, and in the Navy, ‘‘better value’’ for consumers, there is bilization in some States. Under we have a special term—‘‘Bravo Zulu’’ little substance to back up this claim. PPACA, States are permitted to adjust which means ‘‘Well Done.’’ So, as one The assumption behind this claim is old sailor to another, with a thank you the percentage for the individual mar- that spending more cents of a health for many years of loyalty and friend- ket only if the Secretary of Health and care dollar directly on care is inher- ship, to Chris Wyman I say ‘‘Bravo Human Services grants them a waiver ently better. But this may not nec- Zulu’’ for a job well done. because the Secretary determines that essarily be the case. University of Cali- the health insurance market would f fornia, Berkley, professor Jamie Robin- otherwise be destabilized. son has studied the issue of MLRs PATIENT PROTECTION AND Unsurprisingly, a total of 15 States closely, and he noted in Health Affairs AFFORDABLE CARE ACT have applied for a waiver from the that the connection between the MLR Mr. COBURN. Mr. President, I be- MLR. This means that nearly one in and good value is not as clear as some lieve Congress should reexamine the three States has found that the MLR would claim. ‘‘The medical loss ratio federally mandated medical loss ratios could destabilize their market and never was and never will be an indi- in the Patient Protection and Afford- threaten consumers’ coverage. cator of clinical quality,’’ he said. In able Care Act. Today I will outline four A review of the data shows why fact, Professor Robinson explained that reasons I believe consumers will face States are concerned. According to a ‘‘neither premiums nor expenditures by increased costs, decreased choice, and study published in The American Jour- themselves indicate quality of care. reduced competition. nal of Managed Care, the specific More direct measures of quality are The Patient Protection and Afford- impactof the new medical loss rules on available, including patient satisfac- able Care Act, PPACA, included a pro- the individual health insurance market tion surveys, preventive services use, vision that requires all health plans to ‘‘has the potential to significantly af- and severity-adjusted clinical out- adhere to a medical loss ratio, MLR, fect the functioning of the individual comes. Although each of these is lim- established in law. The MLR refers to market for health insurance.’’ Using ited in scope, they at least shed light the percentage of premium revenues data from the National Association of on quality of care. The medical loss for health insurance plans spent on Insurance Commissioners, the study’s ratio does not.’’ medical claims. Thus, if a plan received authors ‘‘provided state-level esti- While the MLR cannot guarantee $100 of premiums and spent $85 on med- mates of the size and structure of the better value for consumers, it can lead ical claims its MLR would be 85 per- U.S. individual market from 2002 to to higher premium costs. As the Con- cent. 2009’’ and then ‘‘estimated the number gressional Research Services explained,

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00061 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.034 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7290 CONGRESSIONAL RECORD — SENATE November 9, 2011 the MLR provision in PPACA requires Let me turn to my third concern. health insurance. In a December 2009 health insurance plans ‘‘to pay rebates Consumers face fewer choices, less analysis, CBO warned that if the MLRS to their members if a certain percent- competition in the marketplace. As were 5 percentage points higher, all age of their premiums are not spent on noted previously, the MLR threatens private insurance would become ‘‘an medical costs. This provision may pro- to destabilize several markets by push- essentially governmental program.’’ In vide an incentive for health insurance ing some health insurance plans to fact, this CBO analysis—publicized be- companies to reduce their compensa- stop offering some insurance products, fore the health care bills became law— tion to and/or utilization of producers or exit the market place altogether. may be one key reason the Democrats as they seek to reduce their adminis- The Congressional Research Service refrained from pushing for a 90-percent trative costs in relation to their med- explained this more in detail in a MLR. CBO warned that if a 90-percent ical costs.’’ memo to Congress. CRS said the MLR MLR were adopted, ‘‘taken together In this scenario, unintended con- ‘‘requirements of PPACA will place with the significant increase in the sequences are important to consider. downward pressures on administrative Federal government’s role in the insur- For example, an insurer may increase expenses, including the use of insur- ance market under the PPACA, such a premiums in another product to make ance producers. Thus, there will be an substantial loss in flexibility would up for lost revenues in one where a re- incentive for insurance companies to lead CBO to conclude that the affected bate is issued. Also insurers may be cut back on the use of producers or re- segments of the health insurance mar- incentivized to scale back utilization duce their commissions in order to rein ket should be considered part of the management techniques as a result of in their administrative expenses. Some federal budget.’’ If the bills’ authors the MLR requirement. Accordingly the observers, including associations of had, in fact, included a 90-percent underlying medical trend which drives producers, have suggested that the reg- MLR, they would have faced critics premium costs would increase for ev- ulatory and market changes resulting waving a CBO analysis affirming the eryone in the risk pool, therefore lead- from PPACA could put producers out government takeover of the health in- ing to higher premiums for all con- of business.’’ surance industry was complete. How- sumers who have a health plan with The very allowance in PPACA for ever, even with this determination, that company. waivers from the MLR provision is a CBO appeared to admit that deter- Costs for consumers may also in- tacit admission the one-size-fits-all mining at what point a high MLR trig- crease because of increased fraud in the MLR approach mandated under PPACA gers a complete government takeover system. Because insurance plans are is neither in the best interest of con- of the insurance industry was not en- economically discouraged from activi- sumer choice nor competition among tirely cut and dry. CBO said, ‘‘Setting ties not directly connected to medical health plans in many insurance mar- a precise minimum MLR that would care, there is a perverse incentive to kets across the country. President trigger such a determination under the reduce efforts to police fraud such as Obama once publicly pushed for a gov- PPACA is difficult, because MLRs fall conducting utilization reviews and ernment-run health plan under the aus- along a continuum.’’ data analysis to root out individuals pices of more ‘‘choice and competi- Mr. President, in the end though, who defraud the system. This is such a tion,’’ Unfortunately, the controversial CBO settled on 90 percent as the tip- significant problem that it was high- health care law he signed is set to re- ping point, though, as they noted, any lighted in congressional testimony be- duce choice and competition for mil- ‘‘further expansion of the Federal Gov- fore a House subcommittee earlier this lions of American consumers. ernment’s role in the health insurance year. ‘‘Given the role that health plan Mr. President, finally, the new mlr market would make such insurance an fraud prevention and detection pro- mandates further the government essentially governmental program, so grams have played in establishing ef- takeover of health care. Much ink has that all payments related to health in- fective models for public programs, im- been spilled about the claim that surance policies should be recorded as proved data for law enforcement, and PPACA represents a government take- cash flows in the federal budget.’’ In successful prevention efforts, we be- over of health care. In my view, there other words, this was just about as lieve the MLR regulation’s treatment is no disputing this claim. Even before close as the Democrats could get with- of such programs should be reevalu- the passage of PPACA, the nonpartisan out even CBO admitting it was a com- ated,’’ said the witness. According to Congressional Research Service issued plete government takeover of the the testifying witness, the specific con- a report showing that 60 percent of health insurance markets. cern is ‘‘ the MLR regulation only pro- health care spending in the United f vides a credit for fraud ‘recoveries’— States is controlled by State, local, TRIBUTE TO STEVE ARMS i.e., funds that were paid out to pro- and Federal governments. Now, after viders and then recovered under pay Mr. LEAHY. Mr. President, I would passage of the controversial health like to take a moment to pay tribute and chase’ initiatives.’’ This effectively care law, the Federal Government will discourages preventative measures: to Steve Arms, a technology inventor, effectively regulate health insurance innovator, and successful entrepreneur The MLR regulation’s treatment of fraud markets and dictate what types of prevention expenses works at cross purposes from Vermont. health coverage Americans can buy— Steve founded and developed a high with new government efforts to emulate suc- even penalizing employers and con- cessful private sector programs, and it is at tech firm, MicroStrain, which creates odds with the broad recognition by leaders in sumers who do not offer or purchase sophisticated micro sensors that were the private and public sectors that there is a coverage. The law also massively ex- originally designed for arthroscopic direct link between fraud prevention activi- pands the Medicaid Program—a pro- implantation on human knee liga- ties and improved health care quality and gram that began as a Federal-State ments. Their sensors have since outcomes. partnership but that has evolved into a evolved and are now used by NASA, on Ironically, this myopic focus on gimmick-ridden program threatening car engines, for advanced manufac- MLRs obscures the best tool to evalu- State budgets and too often promising turing, on civil structures, and by the ate the value of a health insurance patients coverage while denying them U.S. military. product: consumer choice. As Professor access to care. The law also includes When Philadelphia’s Liberty Bell Robinson explained: hundreds of new powers for the Sec- needed to be moved in 2003, the Na- The best indicator of current and expected retary of Health and Human Services tional Park Service used MicroStrain future value in a market economy is the and creates dozens of new programs to detect whether the 250-year-old willingness of the consumer to purchase and that will further interfere in the prac- bell’s famous crack was worsening, retain the product. In health care, this tice of medicine. Yes, the law is a gov- even by a hundredth of a hair’s width. translates into measures of growth in enroll- ernment takeover of health care. Fortunately, and thanks to Micro- ment and revenues, adjusted for Interestingly, the nonpartisan Con- disenrollments and changes in prices. Plans Strain’s sensors, the Liberty Bell was that are growing are offering something for gressional Budget Office warned that if moved without damage. which purchasers are willing to vote with the MLRs in PPACA were only slightly A product of Vermont’s public edu- their dollars and consumers are willing to higher, PPACA would result in a com- cation system and flagship state uni- vote with their feet. plete government takeover of all versity, Steve grew a one-man business

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00062 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.021 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7291 based out of his Burlington apartment with summer internship programs for college enue, and where Congress should tread into a more than $12 million a year students, many of whom are studying elec- carefully, to not lose sight of those in- company. Based in Williston, VT, and trical engineering at local colleges and out- vestments critical to the future of now employing 55 people, MicroStrain’s of-state schools such as Clarkson, Stanford Montana and the entire United States. and MIT. Some interns spend three summers constant innovation and product im- at the company before they graduate. Micro- The challenge facing the Joint Select provement has earned the company nu- Strain regularly hires from the intern pool Committee also poses an important op- merous top awards in the industry. because the interns are up to speed on the portunity for us to learn as a nation I am proud to see to see Vermonters work and because they’ve basically suc- and as students of history. working on cutting-edge technology ceeded during an extended job interview. That is why I invited Montana’s col- that will benefit both Vermont’s and As a student, Arms responded to teachers leges and universities to involve stu- the country’s economy. I thank Steve who were well organized, animated and dents in the discussions. Flathead Val- and all of the employees at Micro- happy to let a curious student run with ques- ley Community College took on this tions. His foray into bioengineering hap- Strain for their hard work. pened largely because his UVM work study challenge with vigor. I ask unanimous consent that a copy job put him in a department full of doctors FVCC decided to incorporate this of the recent Burlington Free Press ar- and medical researchers. He loved talking to project into its Scholars Program, an ticle entitled Vt. Tech innovator: Be in them and soon was writing grants as part of honors program for the college’s top the moment, be printed in the RECORD. his job—a skill that came in handy when it students. The students spent almost a There being no objection, the mate- was time for Arms to found MicroStrain. month on the project. rial was ordered to be printed in the His advice for students is similar to what As we have done in the Joint Select he gives his three children, including a son RECORD, as follows: Committee, students started by review- at Reed College and twin daughters at Cham- [From the Burlington Free Press, Nov. 2, plain Valley Union High School. Arms was ing reports issued by the Congressional 2011] never a grind who obsessed over getting As Budget Office and the various bipar- VT. TECH INNOVATOR: BEINTHEMOMENT in everything and he left some homework tisan deficit-reduction plans. The stu- (By Molly Walsh) undone. He worked, but not obsessively. One dents then met over a 2-week period to thing he did learn was to follow his interests WILLISTON.—Back in high school, Steve discuss their own ideas and debate the Arms thought he might want to be a jour- and be efficient—by paying attention in merits of each proposal. They all nalist. He’d grown up reading non-stop and class, for example. ‘‘Be in the moment. . . . agreed that the group would come up often sneaked books and a flashlight under Make the most of your time when you are with one plan to put forth to my office the covers when he was supposed to be there.’’ Schools could help inspire a love of science and to Congress. asleep. by making it real, he added. Simple props— Now, before I talk about what the He changed direction shortly before grad- chalk and a two-by-four, a bicycle wheel— students have produced, it is important uating from Burlington High School in 1977. are great ways to teach calculus, physics and to say a word about Flathead Valley During his junior and senior years, a math other STEM topics. Computers are can be teacher and a physics teacher ignited a fuse Community College and the commu- useful tools but they do not guarantee en- that prompted Arms to become an engineer, nity it serves. Kalispell, MT, is located gagement in class, he said. inventor and successful tech entrepreneur in the upper northwestern corner of the Bringing speakers from STEM employers who runs a Vermont company with 55 em- State of Montana. Glacier National is another way to reach students, as is career ployees and gross sales of $12.8 million in mentoring. Arms still remembers the con- Park sits to the east, and the tip of 2010. versation he had with Sir John Charnley, Flathead Lake is to the south. ‘‘I have a dream job. I can’t believe I get who pioneered modern hip replacement, after There are few places in the world paid to do this,’’ Arms said during an inter- Charnley visited UVM to give a lecture in privileged to such natural beauty. But view at MicroStrain, the sensor company he which he detailed the series of failures he ex- founded and leads in Williston. this area has not been immune to the perienced before his big medical break- The company designs and sells tiny, highly tough economic climate. Far from it. through. sophisticated sensors used in U.S. military The Flathead area, once dominated ‘‘For me, that was just all I needed,’’ Arms drones, NASA rocket tests, tracking devices by the wood products industry, has wit- said. The talk left him with the sense of: and a range of industrial and medical prod- ‘‘I’m not giving up either.’’ nessed the closure of some of its larg- ucts. Arms founded the company when he est employers. was a Ph.D. candidate at the University of f While Montana’s overall unemploy- Vermont, where he studied engineering and ADDITIONAL STATEMENTS ment rate has remained below the na- biomechanics. His first product was a mini- tional average, Flathead County is well sensor used in arthroscopic knee surgeries that he began selling after writing the fed- above it, right now at almost 10 per- FLATHEAD VALLEY COMMUNITY cent. Surrounding Lincoln, Sanders, eral grant to help fund the development him- COLLEGE SCHOLARS PROGRAM self. and Lake Counties currently sit at 13, In the early days at his company, Arms ∑ Mr. BAUCUS. Mr. President, today I 13.3, and 10 percent unemployment typed up the invoices, answered the phone wish to recognize the work of a group rates, respectively. and hustled sales in addition to designing of students enrolled in the Scholars Flathead Valley Community College products. He slowly grew the company and Program at Flathead Valley Commu- has come to be viewed as the model for says a careful, conservative approach to ex- nity College in Kalispell, MT. 2-year education, both in Montana and pansion—no outside investors and a pay-as- you go approach as much as possible—al- As a member of the Joint Select nationally. lowed the business to thrive and continue de- Committee on Deficit Reduction And like many 2-year colleges across veloping cutting-edge products as requested charged with coming up with a plan to the country, FVCC has experienced a by various customers. Because there were no tackle the deficit, I asked my bosses— significant increase in enrollment as a outside money people demanding quick the people of the great State of Mon- result of the economic downturn. Both growth, Arms and his staff had the time to tana—to send me their ideas on how to young and old are returning to school try, fail and retry new product design—in reduce the deficit. to enhance their skills. other words, innovate. Montana was built upon hard work, Over the past 2 years, FVCC’s enroll- Now much of the work is solving problems for clients and continuously pushing for new sacrifice, and values born on the fron- ment increased by 43 percent. Last designs—and that’s what science education tier that remind us: we are all in this year, FVCC added 239 sections of class- should teach as well, Arms said. Schools that together. It is the same spirit that the es and hired 89 new adjunct faculty help young people use science and math to Joint Select Committee must tap into members to meet increased demand. find solutions—whether it’s flood prevention in order to succeed. This past spring, FVCC graduated the or saving the rain forest—are on the right So far, I have received over 1,200 let- largest class in its history, with 388 track. ‘‘Kids are amazingly creative and they ters, calls, and e-mails from Montanans students receiving 438 degrees. One- really want to make the world a better with thoughts on deficit reduction and fourth of those students were eligible place,’’ Arms said. ideas that implicate all aspects of the for assistance through trade adjust- It can take MicroStrain up to a year to find certain employees and the company reg- Federal budget. ment assistance or the Workforce In- ularly recruits out of state. But many em- Montanans sent their suggestions on vestment Act. ployees are Vermonters or returning programs to trim or eliminate, where I raise this because it is important to Vermonters. And Arms has had great success we could find additional sources of rev- note that these students participating

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00063 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.020 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7292 CONGRESSIONAL RECORD — SENATE November 9, 2011 in this project are living this economic REMEMBERING GILBERT ‘‘GIL’’ Gil received many honors from the recession. I asked them to discuss and CATES entertainment industry throughout his come up with deficit-reduction ideas. ∑ Mrs. FEINSTEIN. Mr. President, extensive career, including an Emmy But they have done so with a keen eye today, I honor the extraordinary life of Award for producing the ‘‘63rd Annual on how these ideas could affect their Gilbert ‘‘Gil’’ Cates, a director, pro- Academy Awards’’ in 1991. Gil was also community and the long-term impact ducer, mentor, and friend to not only Emmy-nominated for directing two tel- on good-paying jobs. California and New York, but the en- evision movies, ‘‘Consenting Adult’’ in After all the discussions, debates, tire Nation. 1985 and ‘‘Do You Know the Muffin and, undoubtedly, some disagreements, Born Gilbert Lewis Katz on June 6, Man?’’ in 1989. the students came together and sub- 1934, in New York City to Russian Jew- As a result of his service to the DGA, mitted a full summary of their pro- ish immigrants Nathan and Nina Katz, he received the Directors Guild Presi- posal to reduce the deficit. The ideas Gil soared to the top of the entertain- dent Award, the DGA’s Robert B. Al- are wide-ranging and span virtually all ment field with a focus in both film drich Award for Service, and an Hon- aspects of the Federal budget. and theater. orary Life Membership. He also re- For example, the students recognized Following his education at DeWitt ceived the Jimmy Dolittle Award for that health care costs in this country Clinton High School in the Bronx, Gil Outstanding Contribution to Los Ange- pose a threat to the fiscal stability of enrolled at Syracuse University, where les Theater, the Ovation Award for best the Nation. The students identified a he majored in theater. play ‘‘Collected Stories,’’ and finally, a series of ideas that could help in reduc- In 1961, Gil made his producing and star on Hollywood’s Walk of Fame. ing health care costs, including directing debut on the television game The showman who was known for his incentivizing healthier lifestyles. The show ‘‘Camouflage.’’ undeniable charisma and witty ways, group also agreed that Congress should He accomplished countless artistic as well as his contributions to the en- consider ideas for revenue. They high- achievements during his long career as tertainment industry, was above all an lighted areas such as corporate tax a producer and director, and in 1990 he extraordinary person who was in a loopholes to find new sources of rev- produced the ‘‘62nd Annual Academy class all his own. enue. The students said Congress Award,’’ where he made his biggest Please join me in expressing the sym- should look at reducing fraud and mark on the industry he cherished so pathies of this body to Gil Cates’ fam- abuse in current programs. much. ily, including his wife, Dr. Judith Over the next 18 years, Gil served ei- While the students devoted most of Reichman; his sister, Florence Adler; ther as the producer or executive pro- their time to finding ways to reduce his children, David, Jonathan, Gil Jun- ducer of 14 Academy Award shows. the deficit, they also highlighted the ior, Melissa, and Anat and Ronit With broadcasts hosted by Billy Crys- importance of investment. The group Reichman; and six grandchildren. tal, Whoopi Goldberg, Steve Martin, agreed investment in education and Gilbert Cates was larger-than-life and Chris Rock, Gil is credited with re- scientific research is an important role and his legacy of remarkable talent, storing the telecast as the entertain- for the Federal Government to play. As leadership, humor, and dedication to ment industry’s most important and their report states, ‘‘many of the fiscal art will no doubt live on within the en- widely watched event. ∑ problems facing the country could be tertainment industry. Gil also earned a reputation as an in- ameliorated by improving citizens’ f clusive and creative leader. As a film chances for a quality education.’’ I producer, his credits include ‘‘Oh, God! RECOGNIZING ISAMAX SNACKS could not agree more. Book II,’’ ‘‘After the Fall,’’ and ‘‘I ∑ Ms. SNOWE. Mr. President, earlier My hat goes off to the students and Never Sang for My Father.’’ He di- this year members of the Maine Legis- faculty for joining this important con- rected segments of ‘‘The Twilight lature proposed a bill to name the versation for our families and for our Zone,’’ ‘‘Hobson’s Choice,’’ ‘‘The Prom- whoopie pie the official State dessert country. It is clear from this report ise,’’ and ‘‘Summer Wishes, Winter of Maine, later settling on naming it that they took this challenge seriously Dreams.’’ As both producer and direc- the ‘‘State treat of Maine.’’ The and understand the balance needed to tor, his body of work includes ‘‘Col- whoopie pie, a baked good normally address the deficit. lected Stories,’’ ‘‘Confessions: Two consisting of two chocolate cakes with I would like to recognize the great Faces of Evil,’’ ‘‘Absolute Strangers,’’ creamy frosting in between, has been a work of those involved, including ‘‘Rings Around the World,’’ and New England tradition for nearly a President Jane Karas, Ph.D., Scholars ‘‘World’s Fair Spectacular.’’ century. Anyone who has tasted a Program Director Ivan Lorentzen; Out- Gil made his Broadway debut as the whoopie pie knows exactly how special reach Coordinator for Career Pathways stage manager for ‘‘Shinbone Alley’’ in and delectable one really is. With Jeremy Fritz; and Executive Director 1957. He made his producing debut on Maine’s official ‘‘treat’’ in mind, today for Institutional Research Brad Broadway in 1967 with ‘‘You Know I I recognize and commend Isamax Eldredge, Ph.D. And, most impor- Can’t Hear You When the Water’s Run- Snacks, a small business in Maine that tantly, I would like to commend the ning,’’ and five years later made his di- has perfected the art of homemade students who took on this project: Ur- rectorial debut in 1972 with ‘‘Voices,’’ whoopie pies. sula DeStefano, Tracy Lost-Bear, Lisa an original play with music. In total, Amy Bouchard always loved baking, Steelye, and Heather Frayle. he was involved with nine Broadway and in 1994, she started a small busi- It is my goal to make sure these stu- shows. The most recent, ‘‘Time Stands ness making whoopie pies, out of her dents and their peers nationwide will Still,’’ closed on January 30, 2011. home kitchen in the small town of Gar- be able to find good-paying jobs when Beyond his film, television, and the- diner. Amy’s whoopie pies were famous they graduate. I am doing everything I ater work, Gil served the entertain- among her friends as ‘‘wicked,’’ and can to address both our jobs deficit and ment industry in many leadership ca- therefore she thought it was only prop- our fiscal deficit so that we can leave pacities. He was a two-term president er to name them ‘‘Wicked Whoopies.’’ our Nation in better shape than we of the Directors Guild of America, As any Mainer knows, ‘‘wicked’’ is a found it for these students and their DGA, from 1983 to 1987. From 1990 to synonym for ‘‘great’’ and is commonly children. 1998, he served as founding dean of the used to refer to any extraordinary I thank Flathead Valley Community UCLA School of Theater, Film and Tel- item, which Amy’s desserts most cer- College, the instructors, and students evision, and then as a mentor and pro- tainly are. for their thoughtful ideas. I hope the fessor. He was also the founding and Originally, Isamax was started as a experience inspired them to stay in- producing director of the renowned way to supplement her husband’s in- volved. They took this project seri- Geffen Playhouse in Westwood, CA. come to assist in raising their two ously and worked hard to find agree- During his diverse career he served in young children, Isabella and Maxx, ment. We in Congress must do the various roles on the Board of Gov- from which the name of her company is same. The future for these students ernors of the Academy of Motion Pic- derived. But as more people discovered and this country is at stake.∑ ture Arts and Sciences. her Wicked Whoopies, Amy’s business

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00064 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.062 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7293 grew rapidly and the small kitchen vision, I have sent to the Federal Reg- tration, Department of Transportation, could no longer keep up with the de- ister for publication the enclosed no- transmitting, pursuant to law, the report of mand. In 1996, Amy moved to a com- tice, stating that the national emer- a rule entitled ‘‘Revision of Class E Airspace; Allakaket, AK’’ ((RIN2120–AA66) (Docket No. mercial bakery and purchased two dis- gency with respect to the proliferation FAA–2011–0756)) received during adjournment tribution trucks. These investments of weapons of mass destruction that of the Senate in the Office of the President tripled her business size and distribu- was declared in Executive Order 12938, of the Senate on October 28, 2011; to the Com- tion territory. Amy now also has two as amended, is to continue in effect for mittee on Commerce, Science, and Transpor- stores in Farmingdale and Freeport, 1 year beyond November 14, 2011. tation. where she sells her mouth-watering BARACK OBAMA. EC–3884. A communication from the Senior treats. THE WHITE HOUSE, November 9, 2011. Program Analyst, Federal Aviation Adminis- tration, Department of Transportation, Today, Amy’s small company sells 24 f transmitting, pursuant to law, the report of different varieties of whoopie pies, in- EXECUTIVE AND OTHER a rule entitled ‘‘Revision of Class E Airspace; cluding many seasonal favorites like COMMUNICATIONS Northway, AK’’ ((RIN2120–AA66) (Docket No. pumpkin and peppermint, and produces FAA–2011–0758)) received during adjournment nearly one million Wicked Whoopies The following communications were of the Senate in the Office of the President each year! Amy also recently added the laid before the Senate, together with of the Senate on October 28, 2011; to the Com- decadent and innovative ‘‘Whoop-de- accompanying papers, reports, and doc- mittee on Commerce, Science, and Transpor- uments, and were referred as indicated: tation. Doo’’ to her line up; a smaller version EC–3885. A communication from the Senior of a classic Wicked Whoopie dipped in EC–3877. A communication from the Acting Director, Office of Sustainable Fisheries, De- Program Analyst, Federal Aviation Adminis- chocolate. Her business has received partment of Commerce, transmitting, pursu- tration, Department of Transportation, countless reviews and awards for its ant to law, the report of a rule entitled transmitting, pursuant to law, the report of products, and has been featured on sev- ‘‘Fisheries of the Caribbean, Gulf of Mexico, a rule entitled ‘‘Standard Instrument Ap- eral nationally televised shows, such as and South Atlantic; Coastal Migratory Pe- proach Procedures (64); Amdt. No. 3446’’ lagic Resources of the Gulf of Mexico and (RIN2120–AA65) received during adjournment ‘‘The Oprah Winfrey Show’’ in 2003, of the Senate in the Office of the President ‘‘Good Morning America’’ in 2005, and South Atlantic; Closure’’ (RIN0648–XA753) re- ceived in the Office of the President of the of the Senate on October 28, 2011; to the Com- Food Network’s ‘‘Unwrapped’’ in 2007. mittee on Commerce, Science, and Transpor- Wicked Whoopies have also been pro- Senate on October 20, 2011; to the Committee on Commerce, Science, and Transportation. tation. moted in the New York Times, the As- EC–3878. A communication from the Acting EC–3886. A communication from the Senior Program Analyst, Federal Aviation Adminis- sociated Press, and are even available Director, Office of Sustainable Fisheries, De- tration, Department of Transportation, for purchase on the Home Shopping partment of Commerce, transmitting, pursu- transmitting, pursuant to law, the report of ant to law, the report of a rule entitled ‘‘Ac- Network’s Web site for the 2011 holiday a rule entitled ‘‘Standard Instrument Ap- countability Measures and Reduced Season season. Additionally, the city of Gar- proach Procedures (44); Amdt. No. 3447’’ for the South Atlantic Recreational Sector diner Board of Trade awarded Isamax (RIN2120–AA65) received during adjournment of Golden Tilefish for the 2011 Fishing Year’’ Snacks with its President’s Award in of the Senate in the Office of the President (RIN0648–XA701) received in the Office of the of the Senate on October 28, 2011; to the Com- 2004 and Interface Tech News awarded President of the Senate on October 20, 2011; mittee on Commerce, Science, and Transpor- Wicked Whoopies ‘‘Maine’s Best of the to the Committee on Commerce, Science, Web’’ in the e-commerce category in tation. and Transportation. EC–3887. A communication from the Senior 2005. EC–3879. A communication from the Acting Program Analyst, Federal Aviation Adminis- Over the last 15 years, Isamax Snacks Director, Office of Sustainable Fisheries, De- tration, Department of Transportation, has established itself as one of the partment of Commerce, transmitting, pursu- transmitting, pursuant to law, the report of country’s premier and most heralded ant to law, the report of a rule entitled a rule entitled ‘‘Amendment and Establish- ‘‘Fisheries of the Northeastern United whoopie pie and dessert companies. ment of Air Traffic Service Routes; North- States; Atlantic Herring Fishery; Sub ACL east United States’’ ((RIN2120–AA66) (Docket This national notoriety is richly de- (Annual Catch Limit) Harvested for Manage- served as Amy Bouchard’s small dream No. FAA–2011–0376)) received during adjourn- ment Area 1B’’ (RIN0648–XA413 ) received in ment of the Senate in the Office of the Presi- to help her family blossomed into a vi- the Office of the President of the Senate on dent of the Senate on October 28, 2011; to the brant small business. I am proud to October 20, 2011; to the Committee on Com- Committee on Commerce, Science, and congratulate Amy and everyone at merce, Science, and Transportation. Transportation. Isamax Snacks on their outstanding EC–3880. A communication from the Direc- EC–3888. A communication from the Senior tor, Bureau of Economic Analysis, Depart- Regulations Specialist, Office of the Sec- work, and wish them continued suc- ment of Commerce, transmitting, pursuant cess.∑ retary of Transportation, Department of to law, the report of a rule entitled ‘‘Direct Transportation, transmitting, pursuant to f Investment Surveys: Alignment of Regula- law, the report of a rule entitled ‘‘Procedures tions with Current Practices’’ (RIN0691– for Transportation Workplace Drug and Al- SIX-MONTH PERIODIC REPORT AA78) received in the Office of the President cohol Testing Programs: Federal Drug Test- RELATIVE TO THE NATIONAL of the Senate on October 20, 2011; to the Com- ing Custody and Control Form; Technical EMERGENCY THAT WAS DE- mittee on Commerce, Science, and Transpor- Amendment’’ (RIN2105–AE13) received during CLARED IN EXECUTIVE ORDER tation. adjournment of the Senate in the Office of 12938 WITH RESPECT TO THE EC–3881. A communication from the Senior the President of the Senate on October 28, Program Analyst, Federal Aviation Adminis- 2011; to the Committee on Commerce, PROLIFERATION OF WEAPONS tration, Department of Transportation, OF MASS DESTRUCTION—PM 33 Science, and Transportation. transmitting, pursuant to law, the report of EC–3889. A communication from the Sec- The PRESIDING OFFICER laid be- a rule entitled ‘‘IFR Altitudes; Miscella- retary of the Commission, Bureau of Con- fore the Senate the following message neous Amendments; Amendment No. 496’’ sumer Protection, Federal Trade Commis- from the President of the United (RIN2120–AA63) received during adjournment sion, transmitting, pursuant to law, the re- of the Senate in the Office of the President States, together with an accompanying port of a rule entitled ‘‘Mail or Telephone of the Senate on October 28, 2011; to the Com- Order Merchandise Rule’’ (RIN3084–AB07) re- report; which was referred to the Com- mittee on Commerce, Science, and Transpor- ceived during recess of the Senate in the Of- mittee on Banking, Housing, and tation. fice of the President of the Senate on Octo- Urban Affairs: EC–3882. A communication from the Senior ber 26, 2011; to the Committee on Commerce, Program Analyst, Federal Aviation Adminis- Science, and Transportation. To the Congress of the United States: tration, Department of Transportation, EC–3890. A communication from the Dep- Section 202(d) of the National Emer- transmitting, pursuant to law, the report of uty Chief, Consumer and Governmental Af- gencies Act (50 U.S.C. 1622(d)) provides a rule entitled ‘‘Function and Reliability fairs Bureau, Federal Communications Com- for the automatic termination of a na- Flight Testing for Turbine-Powered Air- mission, transmitting, pursuant to law, the tional emergency unless, prior to the planes Weighing 6,000 Pounds or Less’’ report of a rule entitled ‘‘Structure and anniversary date of its declaration, the ((RIN2120–AAJ56) (Docket No. FAA–2010– Practices of the Video Relay Service Pro- President publishes in the Federal Reg- 0218)) received during adjournment of the gram, Memorandum Opinion and Order and Order, CG Docket No. 10–51’’ (FCC 11–155) re- ister and transmits to the Congress a Senate in the Office of the President of the Senate on October 28, 2011; to the Committee ceived during adjournment of the Senate in notice stating that the emergency is to on Commerce, Science, and Transportation. the Office of the President of the Senate on continue in effect beyond the anniver- EC–3883. A communication from the Senior October 28, 2011; to the Committee on Com- sary date. In accordance with this pro- Program Analyst, Federal Aviation Adminis- merce, Science, and Transportation.

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00065 Fmt 0637 Sfmt 0634 E:\CR\FM\G09NO6.061 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7294 CONGRESSIONAL RECORD — SENATE November 9, 2011 EC–3891. A communication from the Assist- tation, with an amendment in the nature of S. 1835. A bill to establish standards for ant Secretary for Export Administration, a substitute: covered bond programs and a covered bond Bureau of Industry and Security, Depart- S. 453. A bill to improve the safety of regulatory oversight program, and for other ment of Commerce, transmitting, pursuant motorcoaches, and for other purposes (Rept. purposes; to the Committee on Banking, to law, the report of a rule entitled ‘‘Addi- No. 112–93). Housing, and Urban Affairs. tion of Certain Persons on the Entity List; f By Mr. MENENDEZ (for himself and Addition of Persons Acting Contrary to the Mr. NELSON of Florida): National Security or Foreign Policy Inter- EXECUTIVE REPORTS OF S. 1836. A bill to amend the Oil Pollution ests of the United States’’ (RIN0694–AE97) re- COMMITTEE Act of 1990 to clarify that the Act applies to ceived during adjournment of the Senate in certain incidents that occur in water beyond the Office of the President of the Senate on The following executive reports of the exclusive economic zone of the United October 28, 2011; to the Committee on Com- nominations were submitted: States; to the Committee on Environment merce, Science, and Transportation. By Mr. LIEBERMAN for the Committee on and Public Works. EC–3892. A communication from the Sec- Homeland Security and Governmental Af- By Mr. LEE (for himself, Mr. CRAPO, retary of Transportation, transmitting, the fairs. Mr. DEMINT, Mr. PAUL, Mr. RISCH, Department’s fiscal year 2011 annual report *John Francis McCabe, of the District of and Mr. BLUNT): as required by the Superfund Amendments Columbia, to be an Associate Judge of the S. 1837. A bill to amend the Internal Rev- and Reauthorization Act (SARA) of 1986; to Superior Court of the District of Columbia enue Code of 1986 to modify and permanently the Committee on Commerce, Science, and for the term of fifteen years. extend the incentives to reinvest foreign Transportation. *Peter Arno Krauthamer, of the District of earnings in the United States; to the Com- EC–3893. A communication from the Sec- Columbia, to be an Associate Judge of the mittee on Finance. retary of Transportation, transmitting, pur- Superior Court of the District of Columbia By Mr. BAUCUS (for himself, Mr. suant to law, an annual report relative to for the term of fifteen years. BOOZMAN, and Mr. PRYOR): the accomplishments made under the Air- *Danya Ariel Dayson, of the District of Co- S. 1838. A bill to require the Secretary of port Improvement Program for fiscal year lumbia, to be an Associate Judge of the Su- Veterans Affairs to carry out a pilot pro- 2009; to the Committee on Commerce, perior Court of the District of Columbia for gram on service dog training therapy, and Science, and Transportation. the term of fifteen years. for other purposes; to the Committee on Vet- EC–3894. A communication from the Chief erans’ Affairs. of Staff, Media Bureau, Federal Communica- *Nancy Maria Ware, of the District of Co- tions Commission, transmitting, pursuant to lumbia, to be Director of the Court Services f law, the report of a rule entitled ‘‘Television and Offender Supervision Agency for the Dis- trict of Columbia for a term of six years. SUBMISSION OF CONCURRENT AND Broadcasting Services; Panama City, Flor- SENATE RESOLUTIONS ida’’ (MB Docket No. 11–140) received in the *Michael A. Hughes, of the District of Co- Office of the President of the Senate on No- lumbia, to be United States Marshal for the The following concurrent resolutions vember 7, 2011; to the Committee on Com- Superior Court of the District of Columbia and Senate resolutions were read, and merce, Science, and Transportation. for the term of four years. referred (or acted upon), as indicated: EC–3895. A communication from the Dep- *Nomination was reported with rec- By Mr. SCHUMER: uty Chief, Consumer and Governmental Af- ommendation that it be confirmed sub- S. Res. 318. A resolution to authorize the fairs Bureau, Federal Communications Com- ject to the nominee’s commitment to printing of a revised edition of the Senate mission, transmitting, pursuant to law, the respond to requests to appear and tes- Rules and Manual; considered and agreed to. report of a rule entitled ‘‘In the Matter of By Mr. GRAHAM (for himself, Mr. Anglers for Christ Ministries, Inc.; New Be- tify before any duly constituted com- CASEY, and Mr. MCCAIN): ginning Ministries; Petitioners Identified in mittee of the Senate. S. Res. 319. A resolution honoring the life Appendix A; Interpretation of Economically f and legacy of Joe Frazier; considered and Burdensome Standard; Amendment of Sec- agreed to. tion 79.1(f) of the Commission’s Rules; Video INTRODUCTION OF BILLS AND Programming Accessibility, Memorandum JOINT RESOLUTIONS f Opinion and Order, Order, and Notice of Pro- ADDITIONAL COSPONSORS posed Rulemaking’’ (FCC 11–159) received in The following bills and joint resolu- the Office of the President of the Senate on tions were introduced, read the first S. 273 November 7, 2011; to the Committee on Com- and second times by unanimous con- At the request of Mr. LAUTENBERG, merce, Science, and Transportation. sent, and referred as indicated: the name of the Senator from New EC–3896. A communication from the Dep- By Mr. THUNE: York (Mrs. GILLIBRAND) was added as a uty Chief, Consumer and Governmental Af- S. 1831. A bill to direct the Securities and cosponsor of S. 273, a bill to amend fairs Bureau, Federal Communications Com- Exchange Commission to eliminate the pro- chapter 1 of title 23, United States mission, transmitting, pursuant to law, the hibition against general solicitation as a re- Code, to condition the receipt of cer- report of a rule entitled ‘‘73.1201 Station quirement for a certain exemption under Identification (vacates rule change and tain highway funding by States on the Regulation D; to the Committee on Banking, enactment and enforcement by States eliminates effective date note 2); 73.3526 Housing, and Urban Affairs. Local Public Inspection File of Commercial By Mr. ENZI (for himself, Mr. DURBIN, of certain laws to prevent repeat in- Stations (vacates rule change and eliminates Mr. ALEXANDER, Mr. JOHNSON of toxicated driving. effective date note 2); 73.3527 Local Public In- South Dakota, Mr. BOOZMAN, Mr. S. 362 spection File of Noncommercial Educational REED, Mr. BLUNT, Mr. WHITEHOUSE, At the request of Mr. WHITEHOUSE, Stations (vacates rule change and eliminates Mr. CORKER, and Mr. PRYOR): effective date note)’’ (FCC 11–162) received in the names of the Senator from Mary- S. 1832. A bill to restore States’ sovereign land (Ms. MIKULSKI) and the Senator the Office of the President of the Senate on rights to enforce State and local sales and from Alaska (Ms. MURKOWSKI) were November 7, 2011; to the Committee on Com- use tax laws, and for other purposes; to the merce, Science, and Transportation. Committee on Finance. added as cosponsors of S. 362, a bill to EC–3897. A communication from the Direc- By Mr. MANCHIN (for himself, Mr. amend the Public Health Service Act tor, Office of Science and Technology Policy, COATS, Mr. NELSON of Nebraska, and to provide for a Pancreatic Cancer Ini- Executive Office of the President, transmit- Mr. CORKER): tiative, and for other purposes. ting, pursuant to law, a report of relative to S. 1833. A bill to provide additional time the conclusion of the U.S. Government Ac- S. 431 for compliance with, and coordinating of, the countability Office (GAO) that the Office of At the request of Mr. PRYOR, the compliance schedules for certain rules of the Science and Technology Policy violated the names of the Senator from Hawaii (Mr. Environmental Protection Agency; to the Antideficiency Act by engaging in diplo- AKAKA), the Senator from Kansas (Mr. Committee on Environment and Public matic activities purportedly prohibited by Works. MORAN) and the Senator from Indiana section 1340(a) of the Department of Defense By Mr. CORKER: (Mr. COATS) were added as cosponsors and Full-Year Continuing Appropriations S. 1834. A bill to restore and repair the of S. 431, a bill to require the Secretary Act, 2011; to the Committee on Appropria- United States mortgage markets by making tions. of the Treasury to mint coins in com- them transparent, bringing in private cap- memoration of the 225th anniversary of f ital, winding down the Government-spon- the establishment of the Nation’s first REPORTS OF COMMITTEES sored enterprises, and for other purposes; to Federal law enforcement agency, the the Committee on Banking, Housing, and United States Marshals Service. The following reports of committees Urban Affairs. were submitted: By Mrs. HAGAN (for herself, Mr. S. 730 By Mr. ROCKEFELLER, from the Com- CORKER, Mr. SCHUMER, and Mr. At the request of Ms. MURKOWSKI, the mittee on Commerce, Science, and Transpor- CRAPO): name of the Senator from Louisiana

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00066 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.021 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7295 (Ms. LANDRIEU) was added as a cospon- BROWN) was added as a cosponsor of S. WEBB) was added as a cosponsor of S. sor of S. 730, a bill to provide for the 1161, a bill to amend the Food Security 1808, a bill to amend the Immigration settlement of certain claims under the Act of 1985 to restore integrity to and and Nationality Act to toll, during ac- Alaska Native Claims Settlement Act, strengthen payment limitation rules tive-duty service abroad in the Armed and for other purposes. for commodity payments and benefits. Forces, the periods of time to file a pe- S. 779 S. 1251 tition and appear for an interview to At the request of Mr. SCHUMER, the At the request of Mr. CARPER, the remove the conditional basis for per- name of the Senator from Delaware name of the Senator from Nevada (Mr. manent resident status, and for other (Mr. COONS) was added as a cosponsor HELLER) was added as a cosponsor of S. purposes. of S. 779, a bill to authorize the acquisi- 1251, a bill to amend title XVIII and S. 1829 tion and protection of nationally sig- XIX of the Social Security Act to curb At the request of Mr. WHITEHOUSE, nificant battlefields and associated waste, fraud, and abuse in the Medicare the name of the Senator from Ohio sites of the Revolutionary War and the and Medicaid programs. (Mr. BROWN) was added as a cosponsor War of 1812 under the American Battle- S. 1265 of S. 1829, a bill to amend the Truth in field Protection Program. At the request of Mr. BINGAMAN, the Lending Act to empower the States to S. 877 name of the Senator from South Caro- set the maximum annual percentage At the request of Mr. HATCH, the lina (Mr. GRAHAM) was added as a co- rates applicable to consumer credit name of the Senator from Ohio (Mr. sponsor of S. 1265, a bill to amend the transactions, and for other purposes. PORTMAN) was added as a cosponsor of Land and Water Conservation Fund S.J. RES. 29 S. 877, a bill to prevent taxpayer-fund- Act of 1965 to provide consistent and At the request of Mr. UDALL of New ed elective abortions by applying the reliable authority for, and for the fund- Mexico, the name of the Senator from longstanding policy of the Hyde ing of, the land and water conservation Ohio (Mr. BROWN) was added as a co- amendment to the new health care law. fund to maximize the effectiveness of sponsor of S.J. Res. 29, a joint resolu- S. 896 the fund for future generations, and for tion proposing an amendment to the At the request of Mr. BINGAMAN, the other purposes. Constitution of the United States re- name of the Senator from Delaware S. 1335 lating to contributions and expendi- (Mr. COONS) was added as a cosponsor tures intended to affect elections. of S. 896, a bill to amend the Public At the request of Mr. INHOFE, the S. RES. 241 Land Corps Act of 1993 to expand the names of the Senator from Utah (Mr. authorization of the Secretaries of Ag- HATCH), the Senator from Utah (Mr. At the request of Mr. MENENDEZ, the riculture, Commerce, and the Interior LEE) and the Senator from Kentucky name of the Senator from Nebraska to provide service opportunities for (Mr. PAUL) were added as cosponsors of (Mr. JOHANNS) was added as a cospon- young Americans; help restore the na- S. 1335, a bill to amend title 49, United sor of S. Res. 241, a resolution express- tion’s natural, cultural, historic, ar- States Code, to provide rights for pi- ing support for the designation of No- chaeological, recreational and scenic lots, and for other purposes. vember 16, 2011, as National Informa- resources; train a new generation of S. 1527 tion and Referral Services Day. public land managers and enthusiasts; At the request of Mrs. HAGAN, the AMENDMENT NO. 927 and promote the value of public serv- names of the Senator from Michigan At the request of Mr. HELLER, his ice. (Mr. LEVIN), the Senator from Wash- name was added as a cosponsor of S. 998 ington (Ms. CANTWELL), the Senator amendment No. 927 proposed to H.R. At the request of Mr. AKAKA, the from Illinois (Mr. KIRK), the Senator 674, to amend the Internal Revenue names of the Senator from Hawaii (Mr. from Delaware (Mr. CARPER) and the Code of 1986 to repeal the imposition of INOUYE) and the Senator from Georgia Senator from Alabama (Mr. SESSIONS) 3 percent withholding on certain pay- (Mr. CHAMBLISS) were added as cospon- were added as cosponsors of S. 1527, a ments made to vendors by government sors of S. 998, a bill to amend title IV bill to authorize the award of a Con- entities, to modify the calculation of of the Employee Retirement Income gressional gold medal to the Montford modified adjusted gross income for pur- Security Act of 1974 to require the Pen- Point Marines of World War II. poses of determining eligibility for cer- sion Benefit Guaranty Corporation, in At the request of Mr. JOHANNS, his tain healthcare-related programs, and the case of airline pilots who are re- name was added as a cosponsor of S. for other purposes. quired by regulation to retire at age 60, 1527, supra. At the request of Mrs. MURRAY, the names of the Senator from Virginia to compute the actuarial value of S. 1718 (Mr. WARNER) and the Senator from Il- monthly benefits in the form of a life At the request of Mr. WYDEN, the linois (Mr. DURBIN) were added as co- annuity commencing at age 60. name of the Senator from North Caro- sponsors of amendment No. 927 pro- S. 1039 lina (Mrs. HAGAN) was added as a co- posed to H.R. 674, supra. At the request of Mr. CARDIN, the sponsor of S. 1718, a bill to amend title At the request of Mr. TESTER, the name of the Senator from Texas (Mr. XVIII of the Social Security Act with names of the Senator from West Vir- CORNYN) was added as a cosponsor of S. respect to the application of Medicare ginia (Mr. ROCKEFELLER), the Senator 1039, a bill to impose sanctions on per- secondary payer rules for certain from Rhode Island (Mr. WHITEHOUSE) sons responsible for the detention, claims. abuse, or death of Sergei Magnitsky, and the Senator from Connecticut (Mr. S. 1733 for the conspiracy to defraud the Rus- BLUMENTHAL) were added as cosponsors sian Federation of taxes on corporate At the request of Mr. TESTER, the of amendment No. 927 proposed to H.R. profits through fraudulent transactions name of the Senator from North Da- 674, supra. kota (Mr. CONRAD) was added as a co- and lawsuits against Hermitage, and AMENDMENT NO. 928 sponsor of S. 1733, a bill to establish for other gross violations of human At the request of Mr. MCCAIN, the rights in the Russian Federation, and the Commission on the Review of the names of the Senator from Arizona Overseas Military Facility Structure of for other purposes. (Mr. KYL) and the Senator from Okla- the United States. S. 1048 homa (Mr. COBURN) were added as co- At the request of Mr. MENENDEZ, the S. 1756 sponsors of amendment No. 928 pro- name of the Senator from Montana At the request of Mrs. HAGAN, the posed to H.R. 674, to amend the Inter- (Mr. BAUCUS) was added as a cosponsor name of the Senator from Pennsyl- nal Revenue Code of 1986 to repeal the of S. 1048, a bill to expand sanctions vania (Mr. CASEY) was added as a co- imposition of 3 percent withholding on imposed with respect to the Islamic sponsor of S. 1756, a bill to extend certain payments made to vendors by Republic of Iran, North Korea, and HUBZone designations by 3 years, and government entities, to modify the cal- Syria, and for other purposes. for other purposes. culation of modified adjusted gross in- S. 1161 S. 1808 come for purposes of determining eligi- At the request of Mr. GRASSLEY, the At the request of Mr. COONS, the bility for certain healthcare-related name of the Senator from Ohio (Mr. name of the Senator from Virginia (Mr. programs, and for other purposes.

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00067 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.026 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7296 CONGRESSIONAL RECORD — SENATE November 9, 2011 STATEMENTS ON INTRODUCED use taxes pursuant to the applicable destina- (1) licensing or regulating any person, BILLS AND JOINT RESOLUTIONS tion rate, which is the sum of the applicable (2) requiring any person to qualify to State rate and any applicable rate for the transact intrastate business, By Mr. ENZI (for himself, Mr. local jurisdiction into which the sale is (3) subjecting any person to State taxes DURBIN, Mr. ALEXANDER, Mr. made. not related to the sale of goods or services, JOHNSON of South Dakota, Mr. (D) Provide— or BOOZMAN, Mr. REED, Mr. BLUNT, (i) adequate software and services to re- (4) exercising authority over matters of Mr. WHITEHOUSE, Mr. CORKER, mote sellers and single and consolidated pro- interstate commerce. and Mr. PRYOR): viders that identifies the applicable destina- (d) NO NEW TAXES.—Nothing in this Act S. 1832. A bill to restore States’ sov- tion rate, including the State and local sales shall be construed as encouraging a State to tax rate (if any), to be applied on sales impose sales and use taxes on any goods or ereign rights to enforce State and local sourced to the State, and services not subject to taxation prior to the sales and use tax laws, and for other (ii) certification procedures for both single date of the enactment of this Act. purposes; to the Committee on Fi- providers and consolidated providers to (e) INTRASTATE SALES.—The provisions of nance. make software and services available to re- this Act shall only apply to remote sales and Mr. ENZI. Mr. President, I ask unani- mote sellers, and hold such providers harm- shall not apply to intrastate sales or intra- mous consent that the text of the bill less for any errors or omissions as a result of state sourcing rules. States granted author- be printed in the RECORD. relying on information provided by the ity under section 3(a) shall comply with the There being no objection, the text of State. intrastate provisions of the Streamlined the bill was ordered to be printed in (E) Hold remote sellers using a single or Sales and Use Tax Agreement. consolidated provider harmless for any er- the RECORD, as follows: SEC. 6. DEFINITIONS AND SPECIAL RULES. rors and omissions by that provider. In this Act: S. 1832 (F) Relieve remote sellers from liability to (1) CONSOLIDATED PROVIDER.—The term Be it enacted by the Senate and House of Rep- the State or locality for collection of the in- ‘‘consolidated provider’’ means any person resentatives of the United States of America in correct amount of sales or use tax, including certified by a State who has the rights and Congress assembled, any penalties or interest, if collection of the responsibilities for sales and use tax admin- SECTION 1. SHORT TITLE. improper amount is the result of relying on istration, collection, remittance, and audits This Act may be cited as the ‘‘Marketplace information provided by the State. for transactions serviced or processed for the Fairness Act’’. (G) Provide remote sellers and single and sale of goods or services made by remote SEC. 2. SENSE OF CONGRESS. consolidated providers with 30 days notice of sellers on an aggregated basis. It is the sense of Congress that States a rate change by any locality in the State. (2) LOCALITY; LOCAL.—The terms ‘‘locality’’ should have the ability to enforce their ex- (2) TREATMENT OF LOCAL RATE CHANGES.— and ‘‘local’’ refer to any political subdivision isting sales and use tax laws and to treat For purposes of this subsection, local rate of a State. similar sales transactions equally, without changes may only be effective on the first (3) MEMBER STATE.—The term ‘‘Member regard to the manner in which the sale is day of a calendar quarter. Failure to provide State’’— transacted, and the right to collect - or de- notice under paragraph (1)(G) shall require (A) means a Member State as that term is cide not to collect - taxes that are already the State and locality to hold the remote used under the Streamlined Sales and Use owed under State law. seller or single or consolidated provider Tax Agreement as in effect on the date of the SEC. 3. AUTHORIZATION TO REQUIRE COLLEC- harmless for collecting tax at the imme- enactment of this Act, and TION OF SALES AND USE TAXES. diately preceding effective rate during the (B) does not include any associate member (a) STREAMLINED SALES AND USE TAX 30-day period. Each State must provide up- under the Streamlined Sales and Use Tax AGREEMENT.—Each Member State under the dated rate information as part of the soft- Agreement. Streamlined Sales and Use Tax Agreement is ware and services required by paragraph (4) PERSON.—The term ‘‘person’’ means an authorized to require all sellers not quali- (1)(D) individual, trust, estate, fiduciary, partner- fying for a small seller exception to collect (c) SMALL SELLER EXCEPTION.—A State ship, corporation, limited liability company, and remit sales and use taxes with respect to shall be authorized to require a remote sell- or other legal entity, and a State or local er, or a single or consolidated provider act- remote sales sourced to that Member State government. ing on behalf of a remote seller, to collect pursuant to the provisions of the Stream- (5) REMOTE SALE.—The term ‘‘remote sale’’ sales or use tax under this Act if the remote lined Sales and Use Tax Agreement. Such au- means a sale of goods or services attributed seller has gross annual receipts in total re- thority shall commence beginning no earlier to a State with respect to which a seller does mote sales in the United States in the pre- not have adequate physical presence to es- than the first day of the calendar quarter ceding calendar year exceeding $500,000. For tablish nexus under Quill Corp. v. North Da- that is at least 90 days after the date of the purposes of determining whether the thresh- enactment of this Act. old in this subsection is met, the sales of all kota, 504 U.S. 298 (1992). (b) ALTERNATIVE.— persons related within the meaning of sub- (6) REMOTE SELLER.—The term ‘‘remote (1) IN GENERAL.—A State that is not a sections (b) and (c) of section 267 or section seller’’ means a person that makes remote Member State under the Streamlined Sales 707(b)(1) of the Internal Revenue Code of 1986 sales. and Use Tax Agreement is authorized to re- shall be aggregated. (7) SINGLE PROVIDER.—The term ‘‘single quire all sellers not qualifying for the small SEC. 4. TERMINATION OF AUTHORITY. provider’’ means any person certified by a seller exception to collect and remit sales The authority granted by this Act shall State who has the rights and responsibilities and use taxes with respect to remote sales terminate on the date that the highest court for sales and use tax administration, collec- sourced to that State, but only if the State of competent jurisdiction makes a final de- tion, remittance, and audits for transactions adopts and implements minimum simplifica- termination that the State no longer meets serviced or processed for the sale of goods or tion requirements. Such authority shall the requirements of this Act, and the deter- services made by remote sellers. commence beginning no earlier than the mination of such court is no longer subject (8) SOURCED.—For purposes of a State first day of the calendar quarter that is at to appeal. granted authority under section 3(b), the lo- least 6 months after the date that the State SEC. 5. LIMITATIONS. cation to which a remote sale is sourced re- enacts legislation to implement each of the (a) IN GENERAL.—Nothing in this Act shall fers to the location where the item sold is re- following minimum simplification require- be construed as— ceived by the purchaser, based on the loca- ments: (1) subjecting a seller or any other person tion indicated by instructions for delivery (A) Provide— to franchise, income, occupation, or any that the purchaser furnishes to the seller. (i) a single State-level agency to admin- other type of taxes, other than sales and use When no delivery location is specified, the ister all sales and use tax laws, including the taxes, remote sale is sourced to the customer’s ad- collection and administration of all State (2) affecting the application of such taxes, dress that is either known to the seller or, if and applicable locality sales and use taxes or not known, obtained by the seller during the for all sales sourced to the State made by re- (3) enlarging or reducing State authority consummation of the transaction, including mote sellers, to impose such taxes. the address of the customer’s payment in- (ii) a single audit for all State and local (b) NO EFFECT ON NEXUS.—No obligation strument if no other address is available. If taxing jurisdictions within that State, and imposed by virtue of the authority granted an address is unknown and a billing address (iii) a single sales and use tax return to be by this Act shall be considered in deter- cannot be obtained, the remote sale is used by remote sellers and single and con- mining whether a seller or any other person sourced to the address of the seller from solidated providers and to be filed with the has a nexus with any State for any tax pur- which the remote sale was made. A State State-level agency. pose other than sales and use taxes. granted authority under section 3(a) shall (B) Provide a uniform sales and use tax (c) LICENSING AND REGULATORY REQUIRE- comply with the sourcing provisions of the base among the State and the local taxing MENTS.—Other than the limitation set forth Streamlined Sales and Use Tax Agreement. jurisdictions within the State. in subsection (a), and section 3, nothing in (9) STATE.—The term ‘‘State’’ means each (C) Require remote sellers and single and this Act shall be construed as permitting or of the several States, the District of Colum- consolidated providers to collect sales and prohibiting a State from— bia, the Commonwealth of Puerto Rico,

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00068 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.028 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7297 Guam, American Samoa, the United States (B) is secured by a perfected security inter- bond regulators, as an eligible asset for pur- Virgin Islands, the Commonwealth of the est in or other perfected lien on a cover pool poses of such class. Northern Mariana Islands, and any other ter- that is owned directly or indirectly by the (8) ELIGIBLE ASSET CLASS.—The term ‘‘eli- ritory or possession of the United States. issuer of the obligation; gible asset class’’ means— (10) STREAMLINED SALES AND USE TAX (C) is issued under a covered bond program (A) a residential mortgage asset class; AGREEMENT.—The term ‘‘Streamlined Sales that has been approved by the applicable (B) a commercial mortgage asset class; and Use Tax Agreement’’ means the multi- covered bond regulator; (C) a public sector asset class; State agreement with that title adopted on (D) is identified in a register of covered (D) an auto asset class; November 12, 2002, as in effect on the date of bonds that is maintained by the Secretary; (E) a student loan asset class; the enactment of this Act and as further and (F) a credit or charge card asset class; amended from time to time. (E) is not a deposit (as defined in section (G) a small business asset class; and SEC. 7. SEVERABILITY. 3(l) of the Federal Deposit Insurance Act (12 (H) any other eligible asset class des- If any provision of this Act or the applica- U.S.C. 1813(l))). ignated by the Secretary, by rule and in con- tion of such provision to any person or cir- (5) COVERED BOND PROGRAM.—The term sultation with the covered bond regulators. cumstance is held to be unconstitutional, ‘‘covered bond program’’ means any program (9) ELIGIBLE ISSUER.—The term ‘‘eligible the remainder of this Act and the applica- of an eligible issuer under which, on the se- issuer’’ means— tion of the provisions of such to any person curity of a single cover pool, 1 or more series (A) any insured depository institution and or circumstance shall not be affected there- of covered bonds may be issued. any subsidiary of such institution; by. (6) COVERED BOND REGULATOR.—The term (B) any bank holding company, any sav- ings and loan holding company, and any sub- By Mrs. HAGAN (for herself, Mr. ‘‘covered bond regulator’’ means— (A) for any eligible issuer that is subject to sidiary of any of such companies; CORKER, Mr. SCHUMER, and Mr. the jurisdiction of an appropriate Federal (C) any broker or dealer that is registered CRAPO): banking agency (as defined in section 3(q) of under section 15 of the Securities Exchange S. 1835. A bill to establish standards the Federal Deposit Insurance Act (12 U.S.C. Act of 1934 (15 U.S.C. 78o) and is a member of for covered bond programs and a cov- 1813(q))), the appropriate Federal banking the Securities Investor Protection Corpora- ered bond regulatory oversight pro- agency; tion, and any subsidiary of such broker or gram; and for other purposes; to the (B) for any eligible issuer that is described dealer; Committee on Banking, Housing, and in paragraph (9)(F), that is not subject to the (D) any insurer that is supervised by a Urban Affairs. jurisdiction of an appropriate Federal bank- State insurance regulator, and any sub- Mrs. HAGAN. Mr. President, I ask ing agency, and that is sponsored by only 1 sidiary of such insurer; (E) any nonbank financial company (as de- unanimous consent that the text of the eligible issuer, the covered bond regulator for the sponsor; fined in section 102(a)(4) of the Dodd-Frank bill be printed in the RECORD. Wall Street Reform and Consumer Protec- There being no objection, the text of (C) for any eligible issuer that is described in paragraph (9)(F), that is not subject to the tion Act (12 U.S.C. 5311(a)(4))) that is super- the bill was ordered to be printed in jurisdiction of an appropriate Federal bank- vised by the Board of Governors of the Fed- the RECORD, as follows: ing agency, and that is sponsored by more eral Reserve System under section 113 of the S. 1835 than 1 eligible issuer, the covered bond regu- Dodd-Frank Wall Street Reform and Con- Be it enacted by the Senate and House of Rep- lator for the sponsor whose covered bonds sumer Protection Act (12 U.S.C. 5323), includ- resentatives of the United States of America in constitute the largest share of the cover pool ing any intermediate holding company su- Congress assembled, of the issuer; and pervised as a nonbank financial company, SECTION 1. SHORT TITLE. (D) for any other eligible issuer that is not and any subsidiary of such a nonbank finan- This Act may be cited as the ‘‘United subject to the jurisdiction of an appropriate cial company; and States Covered Bond Act’’. Federal banking agency, the Board of Gov- (F) any issuer that is sponsored by 1 or SEC. 2. DEFINITIONS. ernors of the Federal Reserve System. more eligible issuers for the sole purpose of For purposes of this Act, the following (7) ELIGIBLE ASSET.—The term ‘‘eligible issuing covered bonds on a pooled basis. definitions shall apply: asset’’ means— (10) OVERSIGHT PROGRAM.—The term ‘‘over- (1) ANCILLARY ASSET.—The term ‘‘ancillary (A) in the case of the residential mortgage sight program’’ means the covered bond reg- asset’’ means— asset class— ulatory oversight program established under (A) any interest rate or currency swap as- (i) any first-lien mortgage loan that is se- section 3(a). sociated with 1 or more eligible assets, sub- cured by 1-to-4 family residential property; (11) SECRETARY.—The term ‘‘Secretary’’ stitute assets, or other assets in a cover pool; (ii) any mortgage loan that is insured means the Secretary of the Department of (B) any credit enhancement or liquidity ar- under the National Housing Act (12 U.S.C. the Treasury. rangement associated with 1 or more eligible 1701 et seq.); and (12) SUBSTITUTE ASSET.—The term ‘‘sub- assets, substitute assets, or other assets in a (iii) any loan that is guaranteed, insured, stitute asset’’ means— cover pool; or made under chapter 37 of title 38, United (A) cash; (C) any guarantee, letter-of-credit right, or States Code; (B) any direct obligation of the United other secondary obligation that supports any (B) in the case of the commercial mortgage States Government, and any security or payment or performance of 1 or more eligible asset class, any commercial mortgage loan other obligation whose full principal and in- assets, substitute assets, or other assets in a (including any multifamily mortgage loan); terest are insured or guaranteed by the full cover pool; and (C) in the case of the public sector asset faith and credit of the United States Govern- (D) any proceeds of, or other property inci- class— ment; dent to, 1 or more eligible assets, substitute (i) any security issued by a State, munici- (C) any direct obligation of a United States assets, or other assets in a cover pool. pality, or other governmental authority; Government corporation or Government- (2) CORPORATION.—The term ‘‘Corporation’’ (ii) any loan made to a State, munici- sponsored enterprise of the highest credit means the Federal Deposit Insurance Cor- pality, or other governmental authority; and quality, and any other security or other obli- poration. (iii) any loan, security, or other obligation gation of the highest credit quality whose (3) COVER POOL.—The term ‘‘cover pool’’ that is insured or guaranteed, in full or sub- full principal and interest are insured or means a dynamic pool of assets that is com- stantially in full, by the full faith and credit guaranteed by such corporation or enter- prised of— of the United States Government (whether prise, except that the outstanding principal (A) in the case of any eligible issuer de- or not such loan, security, or other obliga- amount of these obligations in any cover scribed in subparagraph (A), (B), (C), (D), or tion is also part of another eligible asset pool may not exceed an amount equal to 20 (E) of paragraph (9)— class); percent of the outstanding principal amount (i) 1 or more eligible assets from a single (D) in the case of the auto asset class, any of all assets in the cover pool without the ap- eligible asset class; and auto loan or lease; proval of the applicable covered bond regu- (ii) 1 or more substitute assets or ancillary (E) in the case of the student loan asset lator; assets; and class, any student loan (whether guaranteed (D) any other substitute asset designated (B) in the case of any eligible issuer de- or nonguaranteed); by the Secretary, by rule and in consultation scribed in paragraph (9)(F)— (F) in the case of the credit or charge card with the covered bond regulators; and (i) the covered bonds issued by each spon- asset class, any extension of credit to a per- (E) any deposit account or securities ac- soring eligible issuer; and son under an open-end credit plan; count into which only an asset described in (ii) 1 or more substitute assets or ancillary (G) in the case of the small business asset subparagraph (A), (B), (C), or (D) may be de- assets. class, any loan that is made or guaranteed posited or credited. (4) COVERED BOND.—The term ‘‘covered under a program of the Small Business Ad- SEC. 3. REGULATORY OVERSIGHT OF COVERED bond’’ means any recourse debt obligation of ministration; and BOND PROGRAMS ESTABLISHED. an eligible issuer that— (H) in the case of any other eligible asset (a) ESTABLISHMENT.— (A) has an original term to maturity of not class, any asset designated by the Secretary, (1) IN GENERAL.—Not later than 180 days less than 1 year; by rule and in consultation with the covered after the date of the enactment of this Act,

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00069 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.028 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7298 CONGRESSIONAL RECORD — SENATE November 9, 2011 the Secretary shall, by rule and in consulta- quently than quarterly, review the percent- (ii) report to the Secretary, the applicable tion with the covered bond regulators, estab- age set under clause (i) and, if safety and covered bond regulator, the applicable inden- lish a covered bond regulatory oversight pro- soundness considerations or the financial ture trustee, and the applicable covered gram that provides for— condition of the eligible issuer has changed, bondholders on whether the cover pool meets (A) covered bond programs to be evaluated increase or decrease such percentage. Any the applicable minimum over- according to reasonable and objective stand- decrease made pursuant to this clause shall collateralization requirements. ards in order to be approved under paragraph have no effect on existing covered bonds (C) REMOVAL AND REPLACEMENT.—The inde- (2), including any additional eligibility issued by the eligible issuer. pendent asset monitor appointed under sub- standards for eligible assets and any other (3) REGISTRY.—Under the oversight pro- paragraph (A) may be removed and re- criteria determined appropriate by the Sec- gram, the Secretary shall maintain a reg- placed— retary to further the purposes of this Act; istry that is published on a Web site avail- (i) by a covered bond regulator in any case (B) covered bond programs to be main- able to the public and that, for each covered in which such action is in the best interest of tained in a manner that is consistent with bond program approved by a covered bond the covered bond investors; and this Act and safe and sound asset-liability regulator, contains— (ii) by covered bond holders who own a ma- management and other financial practices; (A) the name of the covered bond program, jority of the outstanding principal amount of and the name of the eligible issuer, and all other the covered bonds secured by the applicable (C) any estate created under section 4 to be information that the Secretary considers cover pool, at any time. administered in a manner that is consistent necessary to adequately identify the covered (5) NO LOSS OF STATUS.—Covered bonds with maximizing the value and the proceeds bond program and the eligible issuer; and shall remain subject to this Act regardless of of the related cover pool in a resolution (B) all information that the Secretary con- whether the applicable cover pool ceases to under this Act. siders necessary to adequately identify all meet the applicable minimum over- (2) APPROVAL OF EACH COVERED BOND PRO- outstanding covered bonds issued under the collateralization requirements. GRAM.— covered bond program (including the reports (6) FAILURE TO MEET REQUIREMENTS.— (A) IN GENERAL.—A covered bond shall be described in paragraphs (3) and (4) of sub- (A) IN GENERAL.—If a cover pool fails to subject to this Act only if the covered bond section (b)). meet the applicable minimum over- is issued by an eligible issuer under a cov- (4) FEES.—Each covered bond regulator collateralization requirements, and if the ered bond program that is approved by the may levy, on the issuers of covered bonds failure is not cured within the time specified applicable covered bond regulator. under the primary supervision of such cov- in the related transaction documents, the (B) APPROVAL PROCESS.—Each covered ered bond regulator, reasonably apportioned failure shall be an uncured default for pur- bond regulator shall apply the standards es- fees that such covered bond regulator con- poses of section 4(a). tablished by the Secretary under the over- siders necessary, in the aggregate, to defray (B) NOTICE REQUIRED.—An issuer of covered sight program to evaluate a covered bond the costs of such covered bond regulator car- bonds shall promptly give the Secretary and program that has been submitted by an eligi- rying out the provisions of this Act. Such the applicable covered bond regulator writ- ble issuer for approval. Each covered bond funds shall not be construed to be Govern- ten notice if the cover pool securing the cov- regulator also shall take into account rel- ment funds or appropriated monies and shall ered bonds fails to meet the applicable min- evant supervisory factors, including safety not be subject to apportionment for purposes imum over-collateralization requirements, if and soundness considerations, in evaluating of chapter 15 of title 31, United States Code, the failure is cured within the time specified a covered bond program that has been sub- or any other provision of law. in the related transaction documents, or if mitted for approval. Each covered bond regu- the failure is not so cured. lator, promptly after approving a covered (b) MINIMUM OVER-COLLATERALIZATION RE- bond program, shall provide the Secretary QUIREMENTS.— (c) REQUIREMENTS FOR ELIGIBLE ASSETS.— with the name of the covered bond program, (1) REQUIREMENTS ESTABLISHED.—The Sec- (1) REQUIREMENTS.— the name of the eligible issuer, and all other retary, by rule and in consultation with the (A) LOANS.—A loan shall not qualify as an information reasonably requested by the covered bond regulators, shall establish min- eligible asset for so long as the loan is delin- Secretary in order to update the registry imum over-collateralization requirements quent for more than 60 consecutive days. under paragraph (3)(A). Each eligible issuer, for covered bonds backed by each of the eli- (B) SECURITIES.—A security shall not qual- promptly after issuing a covered bond under gible asset classes. The minimum over- ify as an eligible asset for so long as the se- an approved covered bond program, shall collateralization requirements shall be de- curity does not meet any credit-quality re- provide the Secretary with all information signed to ensure that sufficient eligible as- quirement under this Act. reasonably requested by the Secretary in sets and substitute assets are maintained in (C) ORIGINATION.—An asset shall not qual- order to update the registry under paragraph the cover pool to satisfy all principal and in- ify as an eligible asset if the asset was not (3)(B). terest payments on the covered bonds when originated in compliance with any rule or su- (C) EXISTING COVERED BOND PROGRAMS.—A due through maturity and shall be based on pervisory guidance of a Federal agency ap- covered bond regulator may approve a cov- the credit, collection, and interest rate risks plicable to the asset at the time of origina- ered bond program that is in existence on (excluding the liquidity risks) associated tion. the date of the enactment of this Act. Upon with the eligible asset class. (D) NO DOUBLE PLEDGE.—An asset shall not such approval, each covered bond under the (2) ASSET COVERAGE TEST.—The eligible as- qualify as an eligible asset for so long as the covered bond program shall be subject to sets and the substitute assets in any cover asset is subject to a prior perfected security this Act, regardless of when the covered bond pool shall be required, in the aggregate, to interest or other prior perfected lien that was issued. meet at all times the applicable minimum has been granted in an unrelated trans- (D) MULTIPLE COVERED BOND PROGRAMS over-collateralization requirements. action. Nothing in this Act shall affect such PERMITTED.—An eligible issuer may have (3) MONTHLY REPORTING.—On a monthly a prior perfected security interest or other more than 1 covered bond program. basis, each issuer of covered bonds shall sub- prior perfected lien, and the rights of such (E) CEASE AND DESIST AUTHORITY.—The ap- mit a report on whether the cover pool that lien holders. plicable covered bond regulator may direct secures the covered bonds meets the applica- (2) FAILURE TO MEET REQUIREMENTS.—Sub- an eligible issuer to cease issuing covered ble minimum over-collateralization require- ject to paragraph (1)(D), if an asset in a cover bonds under an approved covered bond pro- ments to— pool does not satisfy any applicable require- gram if the covered bond program is not (A) the Secretary; ment described in paragraph (1) or any other maintained in a manner that is consistent (B) the applicable covered bond regulator; applicable standard or criterion described in with this Act and the oversight program and (C) the applicable indenture trustee; this Act, the oversight program, or the re- if, after notice that is reasonable under the (D) the applicable covered bondholders; lated transaction documents, the asset shall circumstances, the issuer does not remedy and not qualify as an eligible asset for purposes all deficiencies identified by the applicable (E) the applicable independent asset mon- of the asset coverage test described in sub- covered bond regulator. itor. section (b)(2). A disqualified asset shall re- (F) CAP ON THE AMOUNT OF OUTSTANDING (4) INDEPENDENT ASSET MONITOR.— main in the cover pool unless and until re- COVERED BONDS.— (A) APPOINTMENT.—Each issuer of covered moved by the issuer in compliance with the (i) IN GENERAL.—With respect to each eligi- bonds shall appoint the indenture trustee for provisions of this Act, the oversight pro- ble issuer that submits a covered bond pro- the covered bonds, or another unaffiliated gram, and the related transaction docu- gram for approval, the applicable covered entity, as an independent asset monitor for ments. No disqualified asset may be removed bond regulator shall set, consistent with the applicable cover pool. from the cover pool after an estate has been safety and soundness considerations and the (B) DUTIES.—An independent asset monitor created for the related covered bond program financial condition of the eligible issuer, the appointed under subparagraph (A) shall, on under section 4(b)(1) or 4(c)(2), except in con- maximum amount, as a percentage of the el- an annual or other more frequent periodic nection with the management of the cover igible issuer’s total assets, of outstanding basis determined by the Secretary under the pool under section 4(d)(1)(E). covered bonds that the eligible issuer may oversight program— (d) OTHER REQUIREMENTS.— issue. (i) verify whether the cover pool meets the (1) BOOKS AND RECORDS OF ISSUER.—Each (ii) REVIEW OF CAP.—The applicable cov- applicable minimum over-collateralization issuer of covered bonds shall clearly mark its ered bond regulator may, not more fre- requirements; and books and records to identify the assets that

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(B) NATURE OF RESIDUAL INTEREST.—The re- the applicable covered bond program. (3) SINGLE ELIGIBLE ASSET CLASS.—No cover sidual interest under subparagraph (A) (C) ASSUMPTION BY TRANSFEREE.—If the pool described in section 2(3)(A) may include shall— Corporation as conservator or receiver trans- eligible assets from more than 1 eligible (i) be an exempted security as described in fers a covered bond program to another eligi- asset class. No cover pool described in sec- section 5; ble issuer within the 1-year period as pro- tion 2(3)(B) may include covered bonds (ii) represent the right to any surplus from vided in subparagraph (A), the transferee backed by more than 1 eligible asset class. the cover pool after the covered bonds and shall take ownership of the applicable cover SEC. 4. RESOLUTION UPON DEFAULT OR INSOL- all other liabilities of the estate have been pool and shall become fully liable on all cov- VENCY. fully and irrevocably paid; and ered bonds and related obligations of the (a) UNCURED DEFAULT DEFINED.—For pur- (iii) be evidenced by a certificate executed issuer that are secured by a perfected secu- poses of this section, the term ‘‘uncured de- by the trustee of the estate. rity interest in or other perfected lien on the fault’’ means a default on a covered bond (5) OBLIGATIONS OF ISSUER.— cover pool. that has not been cured within the time, if (2) OTHER CIRCUMSTANCES.—An estate shall any, specified in the related transaction doc- (A) IN GENERAL.—After the creation of an estate under paragraph (1), the issuer shall— be immediately and automatically created uments. by operation of law and shall exist and be ad- (b) DEFAULT ON COVERED BONDS PRIOR TO (i) transfer to or at the direction of the ministered separate and apart from an issuer CONSERVATORSHIP, RECEIVERSHIP, LIQUIDA- trustee for the estate all property of the es- of covered bonds and any conservatorship, TION, OR BANKRUPTCY.— tate that is in the possession or under the receivership, liquidating agency, or estate in (1) CREATION OF SEPARATE ESTATE.—If an control of the issuer, including all tangible uncured default occurs on a covered bond be- or electronic books, records, files, and other bankruptcy for the issuer or any other assets fore the issuer of the covered bond enters documents or materials relating to the as- of the issuer, if— conservatorship, receivership, liquidation, or sets and liabilities of the estate; and (A) a conservator, receiver, liquidating bankruptcy, an estate shall be immediately (ii) at the election of the trustee or a agent, or trustee in bankruptcy, other than and automatically created by operation of servicer or administrator for the estate, con- the Corporation, is appointed for the issuer law and shall exist and be administered sepa- tinue servicing the applicable cover pool for before an uncured default results in the cre- rate and apart from the issuer or any subse- 120 days after the creation of the estate in ation of an estate under subsection (b); or quent conservatorship, receivership, liqui- return for a fair-market-value fee, as deter- (B) in the case of the appointment of the dating agency, or estate in bankruptcy for mined by the trustee in consultation with Corporation as conservator or receiver as de- scribed in paragraph (1)(A), the Corporation the issuer or any other assets of the issuer. the applicable covered bond regulator, that as conservator or receiver— A separate estate shall be created for each shall be payable from the estate as an ad- (i) does not complete the transfer of the affected covered bond program. ministrative expense. applicable covered bond program to another (2) ASSETS AND LIABILITIES OF ESTATE.— (B) OBLIGATIONS ABSOLUTE.—Neither the eligible issuer within the 1-year period as Any estate created under paragraph (1) shall issuer, whether acting as debtor in posses- provided in paragraph (1)(A); be comprised of the cover pool (including sion or in any other capacity, nor any con- (ii) delivers to the Secretary, the applica- over-collateralization in the cover pool) that servator, receiver, liquidating agent, or ble covered bond regulator, the applicable in- secures the covered bond. The cover pool trustee in bankruptcy for the issuer or any denture trustee, and the applicable covered shall be immediately and automatically re- other assets of the issuer may disaffirm, re- bondholders a written notice electing to leased to and held by the estate free and pudiate, or reject the obligation to turn over clear of any right, title, interest, or claim of cease further performance under the applica- property or to continue servicing the cover ble covered bond program; or the issuer or any conservator, receiver, liqui- pool as provided in subparagraph (A). dating agent, or trustee in bankruptcy for (iii) fails to fully and timely satisfy all the issuer or any other assets of the issuer. (c) DEFAULT ON COVERED BONDS UPON CON- monetary and nonmonetary obligations of The estate shall be fully liable on the cov- SERVATORSHIP, RECEIVERSHIP, LIQUIDATION, the issuer under the covered bonds and the ered bond and all other covered bonds and re- OR BANKRUPTCY.— related transaction documents or to fully lated obligations of the issuer (including ob- (1) CORPORATION CONSERVATORSHIP OR RE- and timely cure all defaults by the issuer ligations under related derivative trans- CEIVERSHIP.— (other than its conservatorship or receiver- actions) that are secured by a perfected secu- (A) IN GENERAL.—If the Corporation is ap- ship) under the applicable covered bond pro- rity interest in or other perfected lien on the pointed as conservator or receiver for an gram. cover pool when the estate is created. The issuer of covered bonds before an uncured de- A separate estate shall be created for each estate shall not be liable on any obligation fault results in the creation of an estate affected covered bond program. of the issuer that is not secured by a per- under subsection (b), the Corporation as con- (3) ASSETS AND LIABILITIES OF ESTATE.— fected security interest in or other perfected servator or receiver shall have an exclusive Any estate created under paragraph (2) shall lien on the cover pool when the estate is cre- right, during the 1-year period beginning on be comprised of the cover pool (including ated. No conservator, receiver, liquidating the date of the appointment, to transfer any over-collateralization in the cover pool) that agent, or trustee in bankruptcy for the cover pool owned by the issuer in its en- secures the covered bonds. The cover pool issuer may charge or assess the estate for tirety, together with all covered bonds and shall be immediately and automatically re- any claim of the conservator, receiver, liqui- related obligations that are secured by a per- leased to and held by the estate free and dating agent, or trustee in bankruptcy or the fected security interest in or other perfected clear of any right, title, interest, or claim of conservatorship, receivership, liquidating lien on the cover pool, to another eligible the issuer or any conservator, receiver, liqui- agency, or estate in bankruptcy and may not issuer that meets all conditions and require- dating agent, or trustee in bankruptcy for obtain or perfect a security interest in or ments specified in the related transaction the issuer or any other assets of the issuer. other lien on the cover pool to secure such a documents. The Corporation as conservator The estate shall be fully liable on the cov- claim. or receiver may not remove any asset from ered bonds and all other covered bonds and (3) RETENTION OF CLAIMS.—Any holder of a the cover pool, except to the extent other- related obligations of the issuer (including covered bond or related obligation for which wise agreed by a transferee that has assumed obligations under related derivative trans- an estate has become liable under paragraph the covered bond program pursuant to sub- actions) that are secured by a perfected secu- (2) shall retain a claim against the issuer for paragraph (C). rity interest in or other perfected lien on the any deficiency with respect to the covered (B) OBLIGATIONS DURING 1-YEAR PERIOD.— cover pool when the estate is created. The bond or related obligation. If the issuer en- During the 1-year period described in sub- estate shall not be liable on any obligation ters conservatorship, receivership, liquida- paragraph (A), the Corporation as conser- of the issuer that is not secured by a per- tion, or bankruptcy, any contingent claim vator or receiver shall fully and timely sat- fected security interest in or other perfected for such a deficiency shall be allowed as a isfy all monetary and nonmonetary obliga- lien on the cover pool when the estate is cre- provable claim in the conservatorship, re- tions of the issuer under all covered bonds ated. No conservator, receiver, liquidating ceivership, liquidating agency, or bank- and the related transaction documents and agent, or trustee in bankruptcy for the ruptcy case. The contingent claim shall be shall fully and timely cure all defaults by issuer may charge or assess the estate for estimated by the conservator, receiver, liqui- the issuer (other than its conservatorship or any claim of the conservator, receiver, liqui- dating agent, or bankruptcy court for pur- receivership) under the applicable covered dating agent, or trustee in bankruptcy or the poses of allowing the claim as a provable bond program, in each case, until the earlier conservatorship, receivership, liquidating claim if awaiting the fixing of the contin- of— agency, or estate in bankruptcy and may not

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obtain or perfect a security interest in or (B) TERMS AND CONDITIONS OF APPOINT- paragraph (E)(iii) do not contain any untrue other lien on the cover pool to secure such a MENT.—All terms and conditions of any ap- statement of a material fact and do not omit claim. pointment under paragraph (1), including the to state a material fact necessary in order to (4) CONTINGENT CLAIM.—Any contingent terms and conditions relating to compensa- make the statements made, in light of the claim against an issuer for a deficiency with tion, shall conform to the requirements of circumstances under which they are made, respect to a covered bond or related obliga- this Act and the oversight program and oth- not misleading. tion for which an estate has become liable erwise shall be determined by the applicable (G) REMOVAL AND REPLACEMENT OF TRUST- under paragraph (3) shall be allowed as a covered bond regulator. EE, SERVICER, AND ADMINISTRATOR.—If the provable claim in the conservatorship, re- (C) QUALIFICATION.—The applicable covered covered bond regulator determines that it is ceivership, liquidating agency, or bank- bond regulator may require the trustee or in the best interests of an estate, the covered ruptcy case for the issuer. The contingent any servicer or administrator for an estate bond regulator may remove or replace the claim shall be estimated by the conservator, to post in favor of the United States, for the trustee or any servicer or administrator for receiver, liquidating agent, or bankruptcy benefit of the estate, a bond that is condi- the estate. The removal of the trustee or any court for purposes of allowing the claim as a tioned on the faithful performance of the du- servicer or administrator does not abate any provable claim if awaiting the fixing of the ties of the trustee or the servicer or adminis- pending action or proceeding involving the contingent claim would unduly delay the trator. The covered bond regulator shall de- estate, and any successor or other trustee, resolution of the conservatorship, receiver- termine the amount of any bond required servicer, or administrator shall be sub- ship, liquidating agency, or bankruptcy case. under this subparagraph and the sufficiency stituted as a party in the action or pro- (5) RESIDUAL INTEREST.— of the surety on the bond. A proceeding on a ceeding. (A) ISSUANCE OF RESIDUAL INTEREST.—Upon bond required under this subparagraph may (H) PROFESSIONALS.—The trustee or any the creation of an estate under paragraph (2), not be commenced after two years after the servicer or administrator for an estate may and regardless of whether any contingent date on which the trustee or the servicer or employ 1 or more attorneys, accountants, claim described in paragraph (4) becomes administrator was discharged. appraisers, auctioneers, or other professional fixed or is estimated, a residual interest in (D) POWERS AND DUTIES OF TRUSTEE.—The persons to represent or assist the trustee or the estate shall be immediately and auto- trustee for an estate is the representative of the servicer or administrator in carrying out matically issued by operation of law to the the estate and, subject to the provisions of its duties. The employment of any profes- conservator, receiver, liquidating agent, or this Act, has capacity to sue and be sued. sional person and all terms and conditions of trustee in bankruptcy for the issuer. The trustee shall— employment, including the terms and condi- (B) NATURE OF RESIDUAL INTEREST.—The re- (i) administer the estate in compliance tions relating to compensation, shall con- sidual interest under subparagraph (A) with this Act, the oversight program, and form to the requirements of this Act and the shall— the related transaction documents; oversight program and otherwise shall be (i) be an exempted security as described in (ii) be accountable for all property of the subject to the approval of the applicable cov- section 5; estate that is received by the trustee; ered bond regulator. (ii) represent the right to any surplus from (iii) make a final report and file a final ac- (I) APPROVED FEES AND EXPENSES.—Unless the cover pool after the covered bonds and count of the administration of the estate otherwise provided in the applicable terms and conditions of appointment or employ- all other liabilities of the estate have been with the applicable covered bond regulator; and ment, all approved fees and expenses of the fully and irrevocably paid; and (iv) after the estate has been fully adminis- trustee, any servicer or administrator, or (iii) be evidenced by a certificate executed tered, close the estate. any professional person employed by the by the trustee of the estate. (E) POWERS AND DUTIES OF SERVICER OR AD- trustee or any servicer or administrator (6) OBLIGATIONS OF ISSUER.— MINISTRATOR.—Any servicer or administrator shall be payable from the estate as adminis- (A) IN GENERAL.—After the creation of an for an estate— trative expenses. estate under paragraph (2), the issuer and its (i) shall— (J) ACTIONS BY OR ON BEHALF OF ESTATE.— conservator, receiver, liquidating agent, or (I) collect, realize on (by liquidation or The trustee or any servicer or administrator trustee in bankruptcy shall— other means), and otherwise manage the for an estate may commence or continue ju- (i) transfer to or at the direction of the cover pool held by the estate in compliance dicial, administrative, or other actions, in trustee for the estate all property of the es- with this Act, the oversight program, and the name of the estate or in its own name on tate that is in the possession or under the the related transaction documents and in a behalf of the estate, for the purpose of col- control of the issuer or its conservator, re- manner consistent with maximizing the lecting, realizing on, or otherwise managing ceiver, liquidating agent, or trustee in bank- value and the proceeds of the cover pool; the cover pool held by the estate or exer- ruptcy, including all tangible or electronic (II) deposit or invest all proceeds and funds cising its other powers or duties on behalf of books, records, files, and other documents or received in compliance with this Act, the the estate. materials relating to the assets and liabil- oversight program, and the related trans- (K) ACTIONS AGAINST ESTATE.—No court ities of the estate; and action documents and in a manner con- may issue an attachment or execution on (ii) at the election of the trustee or a sistent with maximizing the net return to any property of an estate. Except at the re- servicer or administrator for the estate, con- the estate, taking into account the safety of quest of the applicable covered bond regu- tinue servicing the applicable cover pool for the deposit or investment; and lator or as otherwise provided in this sub- 120 days after the creation of the estate in (III) apply, or direct the trustee for the es- paragraph or subparagraph (J), no court may return for a fair-market-value fee, as deter- tate to apply, all proceeds and funds received take any action to restrain or affect the res- mined by the trustee in consultation with and the net return on any deposit or invest- olution of an estate under this Act. No per- the applicable covered bond regulator, that ment to make distributions in compliance son (including the applicable indenture shall be payable from the estate as an ad- with paragraphs (3) and (4); trustee and any applicable covered bond- ministrative expense. (ii) may borrow funds or otherwise obtain holder) may commence or continue any judi- (B) OBLIGATIONS ABSOLUTE.—Neither the credit, for the benefit of the estate, in com- cial, administrative, or other action against issuer, whether acting as debtor in posses- pliance with paragraph (2) on a secured or the estate, the trustee, or any servicer or ad- sion or in any other capacity, nor any con- unsecured basis and on a priority, pari passu, ministrator or take any other act to affect servator, receiver, liquidating agent, or or subordinated basis; the estate, the trustee, or any servicer or ad- trustee in bankruptcy for the issuer or any (iii) shall, at the times and in the manner ministrator that is not expressly permitted other assets of the issuer may disaffirm, re- required by the applicable covered bond reg- by this Act, the oversight program, and the pudiate, or reject the obligation to turn over ulator, submit to the covered bond regulator, related transaction documents, except for a property or to continue servicing the cover the Secretary, the applicable indenture judicial or administrative action to compel pool as provided in subparagraph (A). trustee, the applicable covered bondholders, the release of funds that— (d) ADMINISTRATION AND RESOLUTION OF ES- the owner of the residual interest, and any (i) are available to the estate; TATES.— other person designated by the covered bond (ii) are permitted to be distributed under (1) TRUSTEE, SERVICER, AND ADMINIS- regulator, reports that describe the activi- this Act and the oversight program; and TRATOR.— ties of the servicer or administrator on be- (iii) are permitted and required to be dis- (A) IN GENERAL.—Upon the creation of any half of the estate, the performance of the tributed under the related transaction docu- estate under subsection (b)(1) or (c)(2), the cover pool held by the estate, and distribu- ments and any contracts executed by or on applicable covered bond regulator shall— tions made by the estate; and behalf of the estate. (i) appoint the trustee for the estate; (iv) shall assist the trustee in preparing (L) SOVEREIGN IMMUNITY.—Except in con- (ii) appoint 1 or more servicers or adminis- the final report and the final account of the nection with a guarantee provided under trators for the cover pool held by the estate; administration of the estate. paragraph (4) or any other contract executed and (F) SUPERVISION OF TRUSTEE, SERVICER, AND by the applicable covered bond regulator (iii) give the Secretary, the applicable in- ADMINISTRATOR.—The applicable covered under this section 4, the Secretary and the denture trustee, the applicable covered bond- bond regulator shall supervise the trustee covered bond regulator shall be entitled to holders, and the owner of the residual inter- and any servicer or administrator for an es- sovereign immunity in carrying out the pro- est written notice of the creation of the es- tate. The covered bond regulator shall re- visions of this Act. tate. quire that all reports submitted under sub- (2) BORROWINGS AND CREDIT.—

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(A) IN GENERAL.—Any servicer or adminis- action documents, or any contracts executed more banks for the sole purpose of issuing trator for an estate created under subsection by or on behalf of the estate— covered bonds. (b)(1) or (c)(2) may borrow funds or otherwise (A) first, to pay accrued and unpaid super- (D) REGULATIONS.—Each covered bond reg- obtain credit, on behalf of and for the benefit priority claims under paragraph (2)(B)(ii); ulator for 1 or more banks shall adopt, as of the estate, from any person in compliance (B) second, to pay accrued and unpaid ad- part of the securities regulations of the cov- with this paragraph (2) solely for the purpose ministrative expense claims under paragraph ered bond regulator, a separate scheme of of providing liquidity in the case of timing (1)(I), paragraph (2)(B)(ii), section 4(b)(5)(A), registration, disclosure, and reporting obli- mismatches among the assets and the liabil- or section 4(c)(6)(A); gations and exemptions for offers or sales of ities of the estate. Except with respect to an (C) third, to pay— covered bonds described in subparagraph (C), underwriter, section 5 of the Securities Act (i) accrued and unpaid claims under the which regulations shall— of 1933, the Trust Indenture Act of 1939, and covered bonds and the related transaction (i) provide for uniform and consistent any State or local law requiring registration documents according to their terms; and standards for such covered bond issuers, with for an offer or sale of a security or registra- (ii) accrued and unpaid pari passu claims respect to any such covered bonds, to the ex- tion or licensing of an issuer of, underwriter under paragraph (2)(B)(ii); and tent possible; and of, or broker or dealer in a security does not (D) fourth, to pay accrued and unpaid sub- (ii) be consistent with existing regulations apply to the offer or sale under this para- ordinated claims under paragraph (2)(B)(i). governing offers or sales of nonconvertible graph (2) of a security that is not an equity (4) DISTRIBUTIONS ON RESIDUAL INTEREST.— debt. security. After all other claims against and interests (2) TREATMENT OF CERTAIN ASSOCIATIONS (B) CONDITIONS.—A servicer or adminis- in an estate have been fully and irrevocably AND COOPERATIVE BANKS.— trator may borrow funds or otherwise obtain paid or defeased, the trustee shall or shall (A) SECURITIES LAWS COVERAGE.—A covered credit under subparagraph (A)— cause a servicer or administrator to dis- bond described in subparagraph (C) is and (i) on terms affording the lender only tribute the remainder of the estate to or at shall be treated as a security issued by an claims or liens that are fully subordinated to the direction of the owner of the residual in- entity under section 3(a)(5)(A) of the Securi- the claims and interests of the applicable in- terest. No interim distribution on the resid- ties Act of 1933 (15 U.S.C. 77c(a)(5)(A)), sec- denture trustee and the applicable covered ual interest may be made before that time, tion 3(c)(3) of the Investment Company Act bondholders and all other claims against and unless the applicable covered bond regu- of 1940 (15 U.S.C. 80a–3(c)(3)), and section interests in the estate, except for the resid- lator— 304(a)(4)(A) of the Trust Indenture Act of 1939 ual interest, if the servicer or administrator (A) approves the distribution after deter- (15 U.S.C. 77ddd(a)(4)(A)), as applicable. certifies to the applicable covered bond regu- mining that all other claims against and in- (B) SECURITIES EXCHANGE ACT OF 1934 EXEMP- lator that, in the business judgment of the terests in the estate will be fully, timely, TION.—No covered bond described in subpara- servicer or administrator, the borrowing or and irrevocably paid according to their graph (C) shall be treated as an asset-backed credit is in the best interests of the estate terms; and security, as that term is defined in section 3 and is expected to maximize the value and (B) provides an indemnity, for the benefit of the Securities Exchange Act of 1934 (15 the proceeds of the cover pool held by the es- of the estate, assuring that all other claims U.S.C. 78c), or a structured finance product, tate; or against and interests in the estate will be as that term is defined in section 939F of the (ii) on terms affording the lender claims or fully, timely, and irrevocably paid according Dodd-Frank Wall Street Reform and Con- liens that have priority over or are pari to their terms. sumer Protection Act (15 U.S.C. 78o–9). passu with the claims or interests of the ap- (5) CLOSING OF ESTATE.—After an estate has (C) APPLICABILITY.—A covered bond de- plicable indenture trustee or the applicable been fully administered, the trustee shall scribed in this subparagraph is a covered covered bondholders or other claims against close the estate and, except as otherwise di- bond that is— or interests in the estate, if— rected by the applicable covered bond regu- (i) issued by an entity described in section (I) the servicer or administrator certifies lator, shall destroy all records of the estate. 3(a)(5)(A) of the Securities Act of 1933 (15 to the applicable covered bond regulator (6) NO LOSS TO TAXPAYERS.—Taxpayers U.S.C. 77c(a)(5)(A)); or that, in the business judgment of the shall bear no losses from the resolution of an (ii) issued by an eligible issuer described in servicer or administrator, the borrowing or estate under this Act. To the extent that the section 2(9)(F) and sponsored solely by 1 or credit is in the best interests of the estate and is expected to maximize the value and Secretary and the Corporation jointly deter- more such entities for the sole purpose of the proceeds of the cover pool held by the es- mine that the Deposit Insurance Fund in- issuing covered bonds. tate; and curred actual losses that are higher because (D) REGULATIONS.—Each covered bond reg- (II) the applicable covered bond regulator the covered bond program of an insured de- ulator for 1 or more entities described in sec- authorizes the borrowing or credit. pository institution was subject to resolu- tion 3(a)(5)(A) of the Securities Act of 1933 (C) LIMITED LIABILITY.—A servicer or ad- tion under this Act rather than as part of the (15 U.S.C. 77c(a)(5)(A)) shall adopt, as part of ministrator shall not be liable for any error receivership of the institution under the the securities regulations of the covered in business judgment when borrowing funds Federal Deposit Insurance Act (12 U.S.C. 1811 bond regulator, a separate scheme of reg- or otherwise obtaining credit under this et seq.), the Corporation may exercise the istration, disclosure, and reporting obliga- paragraph (2) unless the servicer or adminis- powers available under section 7(b) of the tions and exemptions for offers or sales of trator acted in bad faith or in willful dis- Federal Deposit Insurance Act (12 U.S.C. covered bonds described in subparagraph (C), regard of its duties. 1817(b)) to recover an amount equal to those which regulations shall— (D) STUDY ON BORROWINGS AND CREDIT.— losses after consulting with the Secretary. (i) provide for uniform and consistent The Comptroller General of the United SEC. 5. SECURITIES LAW PROVISIONS. standards for such covered bond issuers, with States shall conduct a study on whether the (a) SECURITIES LAWS TREATMENT OF COV- respect to any such covered bonds, to the ex- Federal reserve banks should be authorized ERED BONDS.— tent possible; and to lend funds or otherwise extend credit to (1) TREATMENT OF CERTAIN BANKS AND (ii) shall be consistent with regulations an estate under this paragraph (2) and, if so, OTHER ENTITIES.— governing offers or sales of nonconvertible what conditions and limits should be estab- (A) SECURITIES LAWS COVERAGE.—A covered debt. lished to mitigate any risk that the United bond described in subparagraph (C) is and (3) CONSTRUCTION.—No provision of this States Government could absorb credit shall be treated as a security issued or guar- Act, including paragraph (1) or (2), may be losses on the cover pool held by the estate. anteed by a bank under section 3(a)(2) of the construed or applied in a manner that im- The Comptroller General shall submit a re- Securities Act of 1933 (15 U.S.C. 77c(a)(2)), pairs or limits any other exemption that is port to the Committee on Banking, Housing, section 3(c)(3) of the Investment Company available under applicable securities laws. and Urban Affairs of the Senate and the Act of 1940 (15 U.S.C. 80a–3(c)(3)), and section (b) EXEMPTIONS FOR ESTATES.—Any estate Committee on Financial Services of the 304(a)(4)(A) of the Trust Indenture Act of 1939 that is or may be created under section House of Representatives on the results of (15 U.S.C. 77ddd(a)(4)(A)), as applicable. 4(b)(1) or 4(c)(2) shall be exempt from all the study not later than 6 months after the (B) SECURITIES EXCHANGE ACT OF 1934 EXEMP- State and Federal securities laws, except date of enactment of this Act. TION.—No covered bond described in subpara- that such estate— (3) DISTRIBUTIONS BY ESTATE.—All pay- graph (C) shall be treated as an asset-backed (1) shall be subject to all anti-fraud provi- ments or other distributions by an estate security, as that term is defined in section 3 sions of such securities laws; shall be made at the times, in the amounts, of the Securities Exchange Act of 1934 (15 (2) shall be subject to the reporting re- and in the manner set forth in the covered U.S.C. 78c), or a structured finance product, quirements established by the applicable bonds, the related transaction documents, as that term is defined in section 939F of the covered bond regulator under section and any contracts executed by or on behalf Dodd-Frank Wall Street Reform and Con- 4(d)(1)(E)(iii); and of the estate in compliance with this Act and sumer Protection Act (15 U.S.C. 78o–9). (3) shall succeed to any requirement of the the oversight program. To the extent that (C) APPLICABILITY.—A covered bond de- issuer to file such periodic information, doc- the relative priority of the liabilities of the scribed in this subparagraph is a covered uments, and reports in respect of the covered estate are not specified in or otherwise as- bond that is— bonds, as specified in section 13(a) of the Se- certainable from their terms, distributions (i) issued or guaranteed by a bank; or curities Exchange Act of 1934 (15 U.S.C. shall be made on each distribution date (ii) issued by an eligible issuer described in 78m(a)) or rules established by an appro- under the covered bonds, the related trans- section 2(9)(F) and sponsored solely by 1 or priate Federal banking agency.

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(c) EXEMPTIONS FOR RESIDUAL INTERESTS.— (b) DURATION.—The Secretary shall carry the pilot program to additional Department Any residual interest in an estate that is or out the pilot program during the three-year of Veterans Affairs medical centers. may be created under section 4(b)(1) or 4(c)(2) period beginning on the date of the com- (2) MANNER OF COLLECTION.—Data described shall be exempt from all State and Federal mencement of the pilot program. in paragraph (1) shall be collected and ana- securities laws. (c) LOCATION.— lyzed using a scientific peer-reviewed sys- SEC. 6. MISCELLANEOUS PROVISIONS. (1) IN GENERAL.—The pilot program shall be tem, valid and reliable results-based re- (a) DOMESTIC SECURITIES.—Section 106(a)(1) carried out at one Department of Veterans search methodologies, and instruments. of the Secondary Mortgage Market Enhance- Affairs medical center selected by the Sec- (h) REPORTS.— ment Act of 1984 (15 U.S.C. 77r–1(a)(1)) is retary for such purpose other than in the De- (1) ANNUAL REPORTS.— amended— partment of Veterans Affairs Palo Alto (A) IN GENERAL.—Not later than one year (1) in subparagraph (C), by striking ‘‘or’’ at health care system in Palo Alto, California. after the date of the commencement of the the end; In selecting medical centers for the pilot pilot program and annually thereafter for (2) in subparagraph (D), by adding ‘‘or’’ at program, the Secretary shall— the duration of the pilot program, the Sec- the end; and (A) ensure that the medical center se- retary shall submit to Congress a report on (3) by inserting after subparagraph (D) the lected— the pilot program. following: (i) has an established mental health reha- (B) ELEMENTS.—Each such report required ‘‘(E) covered bonds (as defined in section 2 bilitation program that includes a clinical by subparagraph (A) shall include the fol- of the United States Covered Bond Act of focus on rehabilitation treatment of post-de- lowing: 2011),’’. ployment mental health disorder and post- (i) The number of veterans participating in (b) NO CONFLICT.—The provisions of this traumatic stress disorder; and the pilot program. Act shall apply, notwithstanding any provi- (ii) has a demonstrated capability and ca- (ii) A description of the services carried sion of the Federal Deposit Insurance Act (12 pacity to incorporate service dog training out by the Secretary under the pilot pro- U.S.C. 1811 et seq.), title 11, United States activities into the rehabilitation program; gram. Code, title II of the Dodd-Frank Wall Street and (iii) The effects that participating in the Reform and Consumer Protection Act (12 (B) shall review and consider using rec- pilot program has on veterans with post- U.S.C. 5381 et seq.), or any other provision of ommendations published by experienced traumatic stress disorder and post-deploy- Federal law with respect to conservatorship, service dog trainers regulations in the art ment adjustment symptoms. receivership, liquidation, or bankruptcy. No and science of basic third-party dog training (2) FINAL REPORT.—At the conclusion of the provision of the Federal Deposit Insurance and owner-training dogs with regard to pilot program, the Secretary shall submit to Act (12 U.S.C. 1811 et seq.), title 11, United space, equipment, and methodologies. Congress a final report that includes rec- States Code, title II of the Dodd-Frank Wall (2) PARTICIPATION OF RURAL VETERANS.—In ommendations with respect to the feasibility Street Reform and Consumer Protection Act selecting a medical center for the pilot pro- and advisability of extending or expanding (12 U.S.C. 5381 et seq.), or any other provision gram required under subsection (a), the Sec- the pilot program. of Federal law with respect to conservator- retary shall give special consideration to De- f ship, receivership, liquidation, or bank- partment of Veterans Affairs medical cen- ruptcy may be construed or applied in a ters that are located in States that the Sec- SUBMITTED RESOLUTIONS manner that defeats or interferes with the retary considers rural or highly rural. purpose or operation of this Act. (d) DESIGN OF PILOT PROGRAM.—In carrying (c) ANNUAL REPORT TO CONGRESS.—The out the pilot program, the Secretary shall— covered bond regulators shall, annually— (1) administer the program through the De- SENATE RESOLUTION 318—TO AU- (1) submit a joint report to the Congress partment of Veterans Affairs Patient Care THORIZE THE PRINTING OF A describing the current state of the covered Services Office as a collaborative effort be- REVISED EDITION OF THE SEN- bond market in the United States; and tween the Rehabilitation Office and the Of- ATE RULES AND MANUAL (2) testify on the current state of the cov- fice of Mental Health Services; Mr. SCHUMER submitted the fol- ered bond market in the United States before (2) ensure that the national pilot program the Committee on Financial Services of the lead of the Patient Care Services Office has lowing resolution; which was consid- House of Representatives and the Committee sufficient administrative experience to over- ered and agreed to: on Banking, Housing, and Urban Affairs of see the pilot program site; S. RES. 318 the Senate. (3) ensure that dogs selected are healthy Resolved, That— and age- and temperament-appropriate for (1) the Committee on Rules and Adminis- By Mr. BAUCUS (for himself, Mr. use in the pilot program; tration shall prepare a revised edition of the BOOZMAN, and Mr. PRYOR): (4) consider dogs residing in animal shel- Senate Rules and Manual for the use of the S. 1838. A bill to require the Sec- ters or foster homes for participation in the 112th Congress; retary of Veterans Affairs to carry out program if such dogs meet the service dog (2) the manual shall be printed as a Senate a pilot program on service dog training candidate selection under this subsection; document; and therapy, and for other purposes; to the (5) ensure that each dog selected for the (3) in addition to the usual number of cop- Committee on Veterans’ Affairs. pilot program— ies, 1,500 copies of the manual shall be bound, Mr. BAUCUS. Mr. President, I ask (A) is taught all basic commands and be- of which— haviors; unanimous consent that the text of the (A) 500 paperbound copies shall be for the (B) undergoes public access training; and use of the Senate; and bill be printed in the RECORD. (C) receives training specifically tailored (B) 1,000 copies shall be bound (550 There being no objection, the text of to address the mental health conditions or paperbound; 250 nontabbed black skiver; 200 the bill was ordered to be printed in disabilities of the veteran with whom the tabbed black skiver) and delivered as may be the RECORD, as follows: dog is paired; directed by the Committee on Rules and Ad- S. 1838 (6) provide professional support for all ministration. Be it enacted by the Senate and House of Rep- training under the pilot program; and f resentatives of the United States of America in (7) provide or refer participants to business Congress assembled, courses for managing a service dog training SENATE RESOLUTION 319—HON- business. SECTION 1. DEPARTMENT OF VETERANS AFFAIRS ORING THE LIFE AND LEGACY PILOT PROGRAM ON SERVICE DOG (e) VETERAN PARTICIPATION.—Veterans di- TRAINING. agnosed with post-traumatic stress disorder OF JOE FRAZIER (a) PILOT PROGRAM REQUIRED.—Not later or another post-deployment mental health Mr. GRAHAM (for himself, Mr. than 120 days after the date of the enactment condition may volunteer to participate in CASEY, and Mr. MCCAIN) submitted the of this Act, the Secretary of Veterans Affairs the pilot program. following resolution; which was consid- (f) HIRING PREFERENCE.—In hiring service shall commence a pilot program to assess ered and agreed to: the feasibility and advisability of using serv- dog training instructors for the pilot pro- ice dog training activities as components of gram, the Secretary shall give a preference S. RES. 319 integrated post-deployment mental health to veterans who have a post-traumatic stress Whereas boxing legend ‘‘Smokin’ ’’ Joe and post-traumatic stress disorder rehabili- disorder or other mental health condition. Frazier lost a battle with liver cancer on No- tation programs at Department of Veterans (g) COLLECTION OF DATA.— vember 7, 2011; Affairs medical centers— (1) IN GENERAL.—The Secretary shall col- Whereas, with the passing of Joe Frazier, (1) to positively affect veterans with post- lect data on the pilot program to determine the State of South Carolina and the United deployment mental health conditions or the effectiveness of the pilot program in States lost 1 of the greatest heavyweight post-traumatic stress disorder symptoms; positively affecting veterans with post-trau- boxing champions of the modern era; and matic stress disorder or other post-deploy- Whereas Joe Frazier was born on January (2) to produce specially trained service ment mental health condition symptoms and 12, 1944, to a farmer in Beaufort, South Caro- dogs for veterans. the feasibility and advisability of expanding lina;

VerDate Mar 15 2010 03:35 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00074 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.034 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE November 9, 2011 CONGRESSIONAL RECORD — SENATE S7303 Whereas, in Beaufort, South Carolina, Joe TEXT OF AMENDMENTS ‘‘(37) the veterans franchise fee credit de- Frazier discovered the passion for boxing termined under section 45S(a).’’. that would ultimately lead him to greatness; SA 929. Mr. CASEY submitted an (c) CLERICAL AMENDMENT.—The table of Whereas Joe Frazier left his childhood amendment intended to be proposed to sections for subpart D of part IV of sub- home and began to work in a meat packing amendment SA 927 proposed by Mr. chapter A of chapter 1 of the Internal Rev- company based in Philadelphia, Pennsyl- REID (for Mr. TESTER (for himself, Mrs. enue Code of 1986 is amended by adding at vania; MURRAY, Mr. BAUCUS, Ms. STABENOW, the end the following new item: Whereas Joe Frazier trained in a Philadel- Mr. BROWN of Ohio, Mr. REID, Mr. ‘‘Sec. 45S. Veterans franchise fee credit.’’ phia Police Athletic League gymnasium to AKAKA, Ms. CANTWELL, Mr. LEAHY, Mr. (d) EFFECTIVE DATE.—The amendments prepare for his first amateur fights; made by this section shall apply to taxable Whereas, in 1964, Joe Frazier became the CASEY, Mr. COONS, Mr. MENENDEZ, Mr. years ending after December 31, 2010. only United States athlete to win an Olym- KERRY, Mr. LAUTENBERG, Mr. MERKLEY, (e) PUBLICATION OF INFORMATION BY DE- pic gold medal for boxing during the Sum- Mr. SANDERS, Mrs. SHAHEEN, Mr. BEN- PARTMENT OF VETERANS AFFAIRS AND SMALL mer Olympic Games in Japan, despite break- NET, Mr. WEBB, Mr. BEGICH, Ms. LAN- BUSINESS ADMINISTRATION.—The Adminis- ing a thumb and fighting with a broken DRIEU, Mr. SCHUMER, and Mr. BROWN, of hand; trator of the Small Business Administration Massachusetts)) to the bill H.R. 674, to and the Secretary of Veterans Affairs shall Whereas, upon becoming a professional amend the Internal Revenue Code of boxer in 1965, Joe Frazier was known for hav- publicize in mailings and brochures sent to ing a powerful left hook, which led Frazier to 1986 to repeal the imposition of 3 per- veterans service organizations and veteran defeat his first 11 opponents; cent withholding on certain payments advocacy groups information regarding dis- Whereas Joe Frazier defeated Jimmy Ellis, made to vendors by government enti- counted franchise fees under section 45S of the World Boxing Association heavyweight ties, to modify the calculation of modi- the Internal Revenue Code of 1986 and other champion, in 1970 and held the heavyweight fied adjusted gross income for purposes information about the program established under amendments made by this Act. title until 1973; of determining eligibility for certain Whereas, on March 8, 1971 in Madison healthcare-related programs, and for f Square Garden, Joe Frazier became the first boxer to defeat Muhammad Ali, throwing a other purposes; which was ordered to NOTICE OF HEARING devastating left hook in the 15th round that lie on the table; as follows: COMMITTEE ON HEALTH, EDUCATION, LABOR, ultimately led to a victory by decision; At the appropriate place, insert the fol- AND PENSIONS Whereas, in 1971, Joe Frazier became the lowing: Mr. HARKIN. Mr. President, I wish to first African-American man since the Civil SEC. ll. VETERANS FRANCHISE FEE CREDIT. announce that the Committee on War to address the South Carolina State (a) IN GENERAL.—Subpart D of part IV of Legislature in Columbia, South Carolina; Health, Education, Labor, and Pen- subchapter A of chapter 1 of the Internal sions will meet in open session on Whereas, in 1975, arch-rivals Joe Frazier Revenue Code of 1986 is amended by adding and Muhammad Ali met in the ‘‘Thrilla in at the end the following new section: Tuesday, November 15, 2011, at 2:30 p.m. Manilla’’ for the third and final fight be- ‘‘SEC. 45S. VETERANS FRANCHISE FEE CREDIT. in SD–430 to conduct a hearing entitled tween the two men, and a battered, bruised, ‘‘(a) VETERANS FRANCHISE FEE CREDIT.— ‘‘Medical Devices: Protecting Patients and nearly blind Frazier lost by technical ‘‘(1) IN GENERAL.—For purposes of section and Promoting Innovation.’’ knockout when his trainer pulled him from 38, the veterans franchise fee credit deter- For further information regarding the fight in the 14th round; mined under this section for the taxable year Whereas, after retiring from boxing, Joe this hearing, please contact the com- is an amount equal to 25 percent of the quali- Frazier mentored youth boxers in Philadel- mittee staff on (202) 224–7675. fied franchise fees paid or incurred by a vet- phia and encouraged the boxers to lead pro- f ductive lives and avoid violence; eran during the taxable year. Whereas Joe Frazier personified the fight- ‘‘(2) LIMITATION.—The amount allowed as a AUTHORITY FOR COMMITTEES TO ing spirit of the city of Philadelphia; credit under paragraph (1) with respect to MEET Whereas Joe Frazier was inducted into the the purchase of any franchise shall not ex- ceed $100,000. COMMITTEE ON COMMERCE, SCIENCE, AND International Boxing Hall of Fame in 1990; TRANSPORTATION Whereas Joe Frazier finished his boxing ca- ‘‘(b) REDUCTION WHERE FRANCHISE NOT 100 PERCENT VETERAN-OWNED.—In the case of Mr. ROCKEFELLER. Mr. President, I reer with 32 wins, of which 27 were knock- ask unanimous consent that the Com- outs, 4 losses, and 1 draw; and any franchise in which veterans do not own Whereas ‘‘Smokin’ ’’ Joe Frazier epito- 100 percent of the stock or of the capital or mittee on Commerce, Science, and mized 1 of the greatest eras in boxing, rising profits interests of the franchise, the credit Transportation be authorized to meet from humble origins on a South Carolina under subsection (a) shall be the credit during the session of the Senate on No- farm to become the heavyweight boxing amount determined under such subsection, vember 9, 2011, at 2:30 p.m. in room 253 multiplied by the same ratio as— world champion, and inspiring a generation of the Russell Senate Office Building. of Americans: Now, therefore, be it ‘‘(1) the stock or capital or profits inter- ests of the franchise held by veterans, bears The Committee will hold a hearing Resolved, That the Senate— entitled, ‘‘Securing Our Nation’s (1) mourns the loss of Joe Frazier; ‘‘(2) to the total stock or capital or profits (2) honors the life and accomplishments of interests of the franchise. Transportation System: Oversight of Joe Frazier, an American champion and a For purposes of this subsection, the spouse of Transportation Security Administra- world renowned boxing legend; and a veteran shall be treated as a veteran. tion’s Current Efforts.’’ (3) offers the deepest condolences of the ‘‘(c) QUALIFIED FRANCHISE FEE.—For pur- The PRESIDING OFFICER. Without Senate to the family of Joe Frazier. poses of this section, the term ‘qualified objection, it is so ordered. franchise fee’ means any one-time fee re- f COMMITTEE ON ENVIRONMENT AND PUBLIC quired by the franchisor when entering into WORKS AMENDMENTS SUBMITTED AND a franchise agreement with a veteran as the PROPOSED franchisee. Mr. ROCKEFELLER. Mr. President, I ‘‘(d) OTHER DEFINITIONS.—For purposes of ask unanimous consent that the Com- SA 929. Mr. CASEY submitted an amend- this section, the terms ‘franchise’, mittee on Environment and Public ment intended to be proposed to amendment ‘franchisee’, ‘franchisor’, and ‘franchise fee’ SA 927 proposed by Mr. REID (for Mr. TESTER Works be authorized to meet during have the meanings given such terms in part (for himself, Mrs. MURRAY, Mr. BAUCUS, Ms. the session of the Senate on November 436 of title 16, Code of Federal Regulations STABENOW, Mr. BROWN of Ohio, Mr. REID, Mr. 9, 2011, at 10 a.m. in room SD–406 of the (as in effect on January 1, 2009). AKAKA, Ms. CANTWELL, Mr. LEAHY, Mr. Dirksen Senate Office Building. ‘‘(e) VETERAN.—The term ‘veteran’ has the CASEY, Mr. COONS, Mr. MENENDEZ, Mr. The PRESIDING OFFICER. Without meaning given such term by section 101 of KERRY, Mr. LAUTENBERG, Mr. MERKLEY, Mr. objection, it is so ordered. SANDERS, Mrs. SHAHEEN, Mr. BENNET, Mr. title 38, United States Code. WEBB, Mr. BEGICH, Ms. LANDRIEU, Mr. SCHU- ‘‘(f) ELECTION.—This section shall not COMMITTEE ON HOMELAND SECURITY AND MER, and Mr. BROWN of Massachusetts)) to apply to a taxpayer for any taxable year if GOVERNMENTAL AFFAIRS the bill H.R. 674, to amend the Internal Rev- such taxpayer elects to have this section not Mr. ROCKEFELLER. Mr. President, I enue Code of 1986 to repeal the imposition of apply for such taxable year.’’. ask unanimous consent that the Com- 3 percent withholding on certain payments (b) CREDIT TO BE PART OF GENERAL BUSI- mittee on Homeland Security and Gov- made to vendors by government entities, to NESS CREDIT.—Section 38(b) of the Internal ernmental Affairs be authorized to modify the calculation of modified adjusted Revenue Code of 1986 is amended by striking gross income for purposes of determining eli- ‘‘plus’’ at the end of paragraph (35), by strik- meet during the session of the Senate gibility for certain healthcare-related pro- ing the period at the end of paragraph (36) on November 9, 2011, at 10 a.m. grams, and for other purposes; which was or- and inserting ‘‘, plus’’, and by adding at the The PRESIDING OFFICER. Without dered to lie on the table. end the following new paragraph: objection, it is so ordered.

VerDate Mar 15 2010 04:36 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00075 Fmt 0637 Sfmt 0634 E:\CR\FM\A09NO6.032 S09NOPT1 smartinez on DSK6TPTVN1PROD with SENATE S7304 CONGRESSIONAL RECORD — SENATE November 9, 2011 SUBCOMMITTEE ON NEAR EASTERN AND SOUTH AUTHORIZING PRINTING OF A RE- States lost 1 of the greatest heavyweight AND CENTRAL ASIAN AFFAIRS VISED SENATE RULES AND MAN- boxing champions of the modern era; Mr. ROCKEFELLER. Mr. President, I UAL Whereas Joe Frazier was born on January ask unanimous consent that the Com- 12, 1944, to a farmer in Beaufort, South Caro- Mr. BENNET. Mr. President, I ask mittee on Foreign Relations be author- lina; unanimous consent that the Senate Whereas, in Beaufort, South Carolina, Joe ized to meet during the session of the proceed to the consideration of S. Res. Frazier discovered the passion for boxing Senate on November 9, 2011, at 2:30 318, which was submitted earlier today. that would ultimately lead him to greatness; p.m., to hold a Near Eastern and South The PRESIDING OFFICER. The Whereas Joe Frazier left his childhood and Central Asian Affairs sub- clerk will report the resolution by home and began to work in a meat packing company based in Philadelphia, Pennsyl- committee hearing entitled, ‘‘U.S. Pol- title. icy in Syria.’’ vania; The legislative clerk read as follows: Whereas Joe Frazier trained in a Philadel- The PRESIDING OFFICER. Without A resolution (S. Res. 318) to authorize objection, it is so ordered. phia Police Athletic League gymnasium to a printing of a revised edition of the prepare for his first amateur fights; SUBCOMMITTEE ON PRIVACY, TECHNOLOGY, AND Senate Rules and Manual. Whereas, in 1964, Joe Frazier became the THE LAW There being no objection, the Senate only United States athlete to win an Olym- Mr. ROCKEFELLER. Mr. President, I proceeded to consider the resolution. pic gold medal for boxing during the Sum- ask unanimous consent that the Com- Mr. BENNET. Mr. President, I fur- mer Olympic Games in Japan, despite break- ing a thumb and fighting with a broken mittee on the Judiciary, Sub- ther ask that the resolution be agreed committee on Privacy, Technology, hand; to, the motion to reconsider be laid Whereas, upon becoming a professional and the Law, be authorized to meet upon the table, with no intervening ac- during the session of the Senate on No- boxer in 1965, Joe Frazier was known for hav- tion or debate, and any statements be ing a powerful left hook, which led Frazier to vember 9, 2011, at 2:30 p.m. in room SD– printed in the RECORD. defeat his first 11 opponents; 226 of the Dirksen Senate Office Build- The PRESIDING OFFICER. Without Whereas Joe Frazier defeated Jimmy Ellis, ing, to conduct a hearing entitled, objection, it is so ordered. the World Boxing Association heavyweight ‘‘Your Health and Your Privacy: Pro- The resolution (S. Res. 318) was champion, in 1970 and held the heavyweight tecting Health Information in a Digital agreed to, as follows: title until 1973; World.’’ Whereas, on March 8, 1971 in Madison S. RES. 318 The PRESIDING OFFICER. Without Square Garden, Joe Frazier became the first objection, it is so ordered. Resolved, That— boxer to defeat Muhammad Ali, throwing a (1) the Committee on Rules and Adminis- devastating left hook in the 15th round that f tration shall prepare a revised edition of the ultimately led to a victory by decision; PRIVILEGES OF THE FLOOR Senate Rules and Manual for the use of the Whereas, in 1971, Joe Frazier became the 112th Congress; first African-American man since the Civil Mr. ROCKEFELLER. Mr. President, I (2) the manual shall be printed as a Senate War to address the South Carolina State ask unanimous consent that David document; and Legislature in Columbia, South Carolina; Goldman, a detailee from the Federal (3) in addition to the usual number of cop- Whereas, in 1975, arch-rivals Joe Frazier Communications Commission to the ies, 1,500 copies of the manual shall be bound, and Muhammad Ali met in the ‘‘Thrilla in Commerce Committee, be given floor of which— Manilla’’ for the third and final fight be- privileges during the debate on Senate (A) 500 paperbound copies shall be for the tween the two men, and a battered, bruised, use of the Senate; and and nearly blind Frazier lost by technical Joint Resolution 6. (B) 1,000 copies shall be bound (550 knockout when his trainer pulled him from The PRESIDING OFFICER. Without paperbound; 250 nontabbed black skiver; 200 the fight in the 14th round; objection, it is so ordered. tabbed black skiver) and delivered as may be Whereas, after retiring from boxing, Joe Mrs. MURRAY. Mr. President, I ask directed by the Committee on Rules and Ad- Frazier mentored youth boxers in Philadel- unanimous consent that an intern from ministration. phia and encouraged the boxers to lead pro- Senator MERKLEY’s office, Jeff f ductive lives and avoid violence; Whitmore, be granted floor privileges Whereas Joe Frazier personified the fight- HONORING THE LIFE AND LEGACY for the remainder of the day. ing spirit of the city of Philadelphia; OF JOE FRAZIER Whereas Joe Frazier was inducted into the The PRESIDING OFFICER. Without Mr. BENNET. Mr. President, I ask International Boxing Hall of Fame in 1990; objection, it is so ordered. Whereas Joe Frazier finished his boxing ca- f unanimous consent that the Senate reer with 32 wins, of which 27 were knock- now proceed to the consideration of S. GRANTING THE CONGRESSIONAL outs, 4 losses, and 1 draw; and Res. 319, which was submitted earlier Whereas ‘‘Smokin’ ’’ Joe Frazier epito- GOLD MEDAL today. mized 1 of the greatest eras in boxing, rising Mr. BENNET. Mr. President, I ask The PRESIDING OFFICER. The from humble origins on a South Carolina unanimous consent that the Banking clerk will report the resolution by farm to become the heavyweight boxing Committee be discharged from further title. world champion, and inspiring a generation consideration of H.R. 2447 and the Sen- The legislative clerk read as follows: of Americans: Now, therefore, be it Resolved, That the Senate— ate proceed to its consideration. A resolution (S. Res. 319) honoring the life (1) mourns the loss of Joe Frazier; The PRESIDING OFFICER. Without and legacy of Joe Frazier. (2) honors the life and accomplishments of objection, it is so ordered. The clerk There being no objection, the Senate Joe Frazier, an American champion and a will report the bill by title. proceeded to consider the resolution. world renowned boxing legend; and The legislative clerk read as follows: Mr. BENNET. Mr. President, I ask (3) offers the deepest condolences of the A bill (H.R. 2447) to grant the congres- unanimous consent that the resolution Senate to the family of Joe Frazier. sional gold medal to the Montford Point Ma- be agreed to, the preamble be agreed f rines. to, and the motions to reconsider be There being no objection, the Senate ORDERS FOR THURSDAY, laid upon the table. NOVEMBER 10, 2011 proceeded to consider the bill. The PRESIDING OFFICER. Without Mr. BENNET. Mr. President, I ask objection, it is so ordered. Mr. BENNET. I ask unanimous con- unanimous consent that the bill be The resolution (S. Res. 319) was sent that when the Senate completes read a third time and passed, the mo- agreed to. its business today, it adjourn until 9:30 tion to reconsider be laid upon the The preamble was agreed to. a.m. on Thursday, November 10, 2011; table, with no intervening action or de- The resolution, with its preamble, that following the prayer and pledge, bate, and any statements be printed in reads as follows: the Journal of proceedings be approved the RECORD. S. RES. 319 to date, the morning hour be deemed The PRESIDING OFFICER. Without expired, and the time for the two lead- Whereas boxing legend ‘‘Smokin’ ’’ Joe objection, it is so ordered. Frazier lost a battle with liver cancer on No- ers be reserved for their use later in The bill (H.R. 2447) was ordered to a vember 7, 2011; the day; that following any leader re- third reading, was read the third time, Whereas, with the passing of Joe Frazier, marks, the Senate be in a period of and passed. the State of South Carolina and the United morning business until 10 a.m., with

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SENATE COMMITTEE MEETINGS expressing the sense of the Senate re- 9:30 a.m. garding Tunisia’s peaceful Jasmine Banking, Housing, and Urban Affairs Title IV of Senate Resolution 4, Revolution, S. Res. 317, expressing the Securities, Insurance and Investment Sub- agreed to by the Senate on February 4, sense of the Senate regarding the lib- committee 1977, calls for establishment of a sys- eration of Libya from the dictatorship To hold hearings to examine a progress tem for a computerized schedule of all led by Muammar Qaddafi, and the report on management and structural meetings and hearings of Senate com- nominations of Michael Anthony reforms at the Securities and Exchange McFaul, of California, to be Ambas- mittees, subcommittees, joint commit- Commission (SEC). sador to the Russian Federation, Ro- tees, and committees of conference. SD–538 berta S. Jacobson, of Maryland, to be This title requires all such committees Assistant Secretary for Western Hemi- 10:30 a.m. to notify the Office of the Senate Daily sphere Affairs, Mari Carmen Aponte, of Commerce, Science, and Transportation Digest—designated by the Rules Com- the District of Columbia, to be Ambas- Oceans, Atmosphere, Fisheries, and Coast mittee—of the time, place, and purpose sador to the Republic of El Salvador, Guard Subcommittee of the meetings, when scheduled, and Adam E. Namm, of New York, to be To hold hearings to examine the need for any cancellations or changes in the Ambassador to the Republic of Ecua- continued innovation in forecasting meetings as they occur. dor, and Elizabeth M. Cousens, of and prediction. Washington, to be Representative of SR–253 As an additional procedure along the United States of America on the 2 p.m. with the computerization of this infor- Economic and Social Council of the Joint Economic Committee mation, the Office of the Senate Daily United Nations, with the rank of Am- To hold hearings to examine manufac- Digest will prepare this information for bassador, and to be an Alternate Rep- turing in the United States of America, printing in the Extensions of Remarks resentative of the United States of focusing on paving the road to job cre- section of the CONGRESSIONAL RECORD America to the Sessions of the General ation. Assembly of the United Nations, during on Monday and Wednesday of each SH–216 her tenure of service as Representative 2:30 p.m. week. of the United States of America on the Meetings scheduled for Thursday, No- Economic and Social Council of the Budget vember 10, 2011 may be found in the United Nations, all of the Department To hold hearings to examine improving Daily Digest of today’s RECORD. of State, and routine lists in the For- regulatory performance, focusing on eign Service. lessons from the United Kingdom. SD–608 MEETINGS SCHEDULED S–116, Capitol 2:30 p.m. Judiciary NOVEMBER 15 Commerce, Science, and Transportation To hold hearings to examine certain 10 a.m. To hold hearings to examine the nomina- nominations. Banking, Housing, and Urban Affairs tions of Rebecca M. Blank, of Mary- SD–226 To hold an oversight hearing to examine land, to be Deputy Secretary of Com- the Federal Housing Finance Agency. merce, and Jon D. Leibowitz, of Mary- NOVEMBER 17 land, and Maureen K. Ohlhausen, of SD–538 9:30 a.m. Virginia, both to be a Federal Trade Budget Energy and Natural Resources To hold hearings to examine the eco- Commissioner. To hold hearings to examine the Sec- nomic effects of fiscal policy choices. SR–253 retary of the Interior’s Order No. 3315 SD–608 Judiciary Energy and Natural Resources Crime and Terrorism Subcommittee to consolidate and establish the Office To hold hearings to examine the Depart- To hold hearings to examine the ‘‘Fix of Surface Mining Reclamation and En- ment of Energy’s Quadrennial Tech- Gun Checks Act’’, focusing on better forcement within the Bureau of Land nology Review (QTR), and S. 1703, to state and Federal compliance, and Management. amend the Department of Energy Orga- smarter enforcement. SD–366 nization Act to require a Quadrennial SD–226 2:15 p.m. Energy Review, and S. 1807, to amend Health, Education, Labor, and Pensions Indian Affairs the Federal Nonnuclear Energy Re- To hold hearings to examine medical de- To hold an oversight hearing to examine search and Development Act of 1974 to vices, focusing on protecting patients the future of internet gaming, focusing provide for the prioritization, coordina- and promoting innovation. on what’s at stake for tribes. tion, and streamlining of energy re- SD–430 SD–628 search, development, and demonstra- Intelligence 2:30 p.m. tion programs to meet current and fu- To hold closed hearings to examine cer- Intelligence tain intelligence matters. ture energy needs. To hold closed hearings to examine cer- SH–219 SD–366 tain intelligence matters. 3 p.m. 10:30 a.m. SH–219 Commission on Security and Cooperation Banking, Housing, and Urban Affairs Financial Institutions and Consumer Pro- in Europe NOVEMBER 30 To hold hearings to examine Belarus, fo- tection Subcommittee cusing on the ongoing crackdown and To hold hearings to examine financial se- 10 a.m. forces for change, including the extent curity issues facing older Americans. Veterans’ Affairs and impact of the crackdown on the SD–538 To hold hearings to examine Veterans’ lives of its victims and on the larger Homeland Security and Governmental Af- Affairs mental health care, focusing on society, and what more can be done by fairs addressing wait times and access to the United States and European part- To hold hearings to examine the nomina- care. ners to promote democratic change in tion of Roslyn Ann Mazer, of Maryland, SR–418 Belarus. to be Inspector General, Department of 210, Cannon Building Homeland Security. DECEMBER 6 SD–342 2:15 p.m. 2:30 p.m. Foreign Relations NOVEMBER 16 Judiciary Business meeting to consider S. Res. 227, Antitrust, Competition Policy and Con- calling for the protection of the 9 a.m. sumer Rights Subcommittee Mekong River Basin and increased Homeland Security and Governmental Af- To hold hearings to examine the Express United States support for delaying the fairs construction of mainstream dams To hold hearings to examine contractors. Scripts/Medco merger. along the Mekong River, S. Res. 316, SD–342 SD–226

∑ This ‘‘bullet’’ symbol identifies statements or insertions which are not spoken by a Member of the Senate on the floor. Matter set in this typeface indicates words inserted or appended, rather than spoken, by a Member of the House on the floor.

VerDate Mar 15 2010 00:50 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00001 Fmt 0626 Sfmt 0634 E:\CR\FM\M09NO8.000 E09NOPT1 jbell on DSK7SPTVN1PROD with REMARKS Wednesday, November 9, 2011 Daily Digest Senate to property, to require a study on how to reduce the Chamber Action amount of Federal taxes owed but not paid by Fed- Routine Proceedings, pages S7229–S7305 eral contractors, and to make certain improvements Measures Introduced: Eight bills and two resolu- in the laws relating to the employment and training tions were introduced, as follows: S. 1831–1838, and of veterans. Pages S7263–88 S. Res. 318–319. Page S7294 McCain Amendment No. 928 (to Amendment No. 927), to provide American jobs through eco- Measures Reported: nomic growth. Pages S7263–88 S. 453, to improve the safety of motorcoaches, with an amendment in the nature of a substitute. (S. Cross-Border Air Pollution—Agreement: A unan- Rept. No. 112–93) Page S7294 imous-consent agreement was reached providing that at 10 a.m., on Thursday, November 10, 2011, Sen- Measures Passed: ate begin consideration of the motion to proceed to Congressional Gold Medal: Committee on Bank- consideration of S.J. Res. 27, disapproving a rule ing, Housing, and Urban Affairs was discharged submitted by the Environmental Protection Agency from further consideration of H.R. 2447, to grant relating to the mitigation by States of cross-border the congressional gold medal to the Montford Point air pollution under the Clean Air Act, under the Marines, and the bill was then passed. Page S7304 order of Tuesday, November 8, 2011. Pages S7304–05 Authorize Printing: Senate agreed to S. Res. 318, Message from the President: Senate received the to authorize the printing of a revised edition of the following message from the President of the United Senate Rules and Manual. Page S7304 States: Honoring the Life of Joe Frazier: Senate agreed Transmitting, pursuant to law, a six-month peri- to S. Res. 319, honoring the life and legacy of Joe odic report relative to the national emergency that Frazier. Page S7304 was declared in Executive Order 12938 with respect to the proliferation of weapons of mass destruction; Measures Considered: which was referred to the Committee on Banking, Internet and Broadband Industry Practices Reg- Housing, and Urban Affairs. (PM–33) Page S7293 ulating: Senate began consideration of the motion to Executive Communications: Pages S7293–94 proceed to consideration of S.J. Res. 6, disapproving the rule submitted by the Federal Communications Executive Reports of Committees: Page S7294 Commission with respect to regulating the Internet Additional Cosponsors: Pages S7294–95 and broadband industry practices. Pages S7239–63 Statements on Introduced Bills/Resolutions: 3% Withholding Repeal and Job Creation Act: Pages S7296–S7303 Senate continued consideration of H.R. 674, to Additional Statements: Pages S7291–93 amend the Internal Revenue Code of 1986 to repeal the imposition of 3 percent withholding on certain Amendments Submitted: Page S7303 payments made to vendors by government entities, Notices of Hearings/Meetings: Page S7303 to modify the calculation of modified adjusted gross Authorities for Committees to Meet: income for purposes of determining eligibility for Pages S7303–04 certain health care-related programs, taking action on the following amendments proposed thereto: Privileges of the Floor: Page S7304 Pages S7263–88 Adjournment: Senate convened at 9:30 a.m. and Pending: adjourned at 7:07 p.m., until 9:30 a.m. on Thurs- Reid (for Tester) Amendment No. 927, to amend day, November 10, 2011. (For Senate’s program, see the Internal Revenue Code of 1986 to permit a 100 the remarks of the Acting Majority Leader in today’s percent levy for payments to Federal vendors relating Record on page S7305.) D1203

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VerDate Mar 15 2010 06:49 Nov 10, 2011 Jkt 019060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D09NO1.REC D09NOPT1 jbell on DSK7SPTVN1PROD with DIGEST November 9, 2011 CONGRESSIONAL RECORD — DAILY DIGEST D1205 House of Representatives S. 872, to amend the Omnibus Indian Advancement Act Chamber Action to modify the date as of which certain tribal land of the The House was not in session today. The House Lytton Rancheria of California is considered to be held in is scheduled to meet at 2:30 p.m. on Thursday, No- trust and to provide for the conduct of certain activities vember 10, 2011 in pro forma session. on the land, and S. 1763, to decrease the incidence of violent crimes against Indian women, to strengthen the capacity of Indian tribes to exercise the sovereign author- Committee Meetings ity of Indian tribes to respond to violent crimes com- No hearings were held. mitted against Indian women, and to ensure that per- petrators of violent crimes committed against Indian women are held accountable for that criminal behavior, Joint Meetings 2:15 p.m., SD–628. No joint committee meetings were held. Committee on the Judiciary: Business meeting to consider f S. 598, to repeal the Defense of Marriage Act and ensure respect for State regulation of marriage, S. 1793, to COMMITTEE MEETINGS FOR THURSDAY, amend title 28, United States Code, to clarify the statu- NOVEMBER 10, 2011 tory authority for the longstanding practice of the De- (Committee meetings are open unless otherwise indicated) partment of Justice of providing investigatory assistance on request of State and local authorities with respect to Senate certain serious violent crimes, H.R. 2076, to amend title Committee on Armed Services: To hold hearings to exam- 28, United States Code, to clarify the statutory authority ine whether the Chief, National Guard Bureau should be for the longstanding practice of the Department of Justice a member of the Joint Chiefs of Staff, 10 a.m., SD–G50. of providing investigatory assistance on request of State Committee on Banking, Housing, and Urban Affairs: To and local authorities with respect to certain serious vio- hold hearings to examine opportunities and challenges for lent crimes, S. 1794, to correct and simplify the drafting economic development in Indian country, 10 a.m., of section 1752 (relating to restricted buildings or SD–538. grounds) of title 18, United States Code, H.R. 347, to Committee on Energy and Natural Resources: Business correct and simplify the drafting of section 1752 (relating meeting to consider pending calendar business, 9:30 a.m., to restricted buildings or grounds) of title 18, United SD–366. States Code, H.R. 2189, to encourage States to report to Committee on Finance: To hold hearings to examine un- the Attorney General certain information regarding the employment insurance, focusing on the path back to deaths of individuals in the custody of law enforcement work, 10 a.m., SD–215. agencies, and the nominations of Susie Morgan, to be Committee on Health, Education, Labor, and Pensions: To United States District Judge for the Eastern District of hold hearings to examine the role of health care delivery Louisiana, and Michael E. Horowitz, of Maryland, to be system reform, focusing on improving quality and low- Inspector General, Department of Justice, 10 a.m., ering costs, 1:30 p.m., SD–430. SH–216. Committee on Indian Affairs: To hold hearings to exam- Select Committee on Intelligence: To hold closed hearings ine S. 1192, to supplement State jurisdiction in Alaska to examine certain intelligence matters, 3:30 p.m., Native villages with Federal and tribal resources to im- SH–219. prove the quality of life in rural Alaska while reducing House domestic violence against Native women and children and to reduce alcohol and drug abuse and for other purposes, No hearings are scheduled.

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 9:30 a.m., Thursday, November 10 2:30 p.m., Thursday, November 10

Senate Chamber House Chamber Program for Thursday: After the transaction of any Program for Thursday: The House will meet in pro morning business (not to extend beyond 10 a.m.), Senate forma session. will begin consideration of the motion to proceed to con- sideration of S.J. Res. 27, Cross-Border Air Pollution. At noon, Senate will continue consideration of the motion to proceed to consideration of S.J. Res. 6, Internet and Broadband Industry Practices Regulating, with 5 minutes of debate followed by a vote on the motion to proceed to consideration of S.J. Res. 6, and a vote on the motion to proceed to consideration of S.J. Res. 27. At 2:15 p.m., Senate will continue consideration of H.R. 674, 3% Withholding Repeal and Job Creation Act, with votes on or in relation to McCain Amendment No. 928, Reid (for Tester) Amendment No. 927, and passage of the bill at approximately 2:30 p.m. Upon disposition of H.R. 674, Senate will vote on the motion to invoke cloture on the motion to proceed to consideration of H.R. 2354, Energy and Water Development and Related Agencies Appro- priations Act.

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