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

Vol. 148 WASHINGTON, THURSDAY, APRIL 11, 2002 No. 39 House of Representatives The House met at 10 a.m. The question was taken; and the Today, Women of Tomorrow mentors The Chaplain, the Reverend Daniel P. Speaker announced that the ayes ap- low-income, at-risk girls in almost Coughlin, offered the following prayer: peared to have it. every public school in Miami-Dade and May divine light and eternal truth be Mr. MCNULTY. Mr. Speaker, I object Broward counties. This Saturday, NBC with us now and forever. to the vote on the ground that a 6, Ocean Drive Magazine, and Jennifer You have awakened us from the quorum is not present and make the Valoppi are hosting a benefit to further darkness of night and the sleep of un- point of order that a quorum is not the work of Women of Tomorrow and consciousness. May we walk now in the present. to honor the assistance of Don and brightness of a new day. Fill us with The SPEAKER. Pursuant to clause 8, Marie Browne, Marita Srebnick and soundness of purpose and the strength rule XX, further proceedings on this George Feldenkreis, Jerry and Sandi of companions as we take up the ordi- question will be postponed. Powers, and State Attorney Kathy nary responsibilities of life and the The point of no quorum is considered Fernandez-Rundle. challenges set before us. withdrawn. Mr. Speaker, I ask that my col- Leaving the forgetfulness of sleep be- f leagues join me in congratulating Women of Tomorrow for touching the hind, make us keenly aware of the PLEDGE OF ALLEGIANCE world in which we live and will move lives of so many young girls and mak- about. Help us to embrace the deepest The SPEAKER. Will the gentleman ing significant contributions to the promise of tomorrow. needs of those around us. When we are from Kansas (Mr. TIAHRT) come for- able, may we respond to them with ward and lead the House in the Pledge f of Allegiance. generous hearts. When we are helpless, BRING LUDWIG KOONS HOME Mr. TIAHRT led the Pledge of Alle- may we not dismiss them into the giance as follows: (Mr. LAMPSON asked and was given darkness but hold their concerns in the permission to address the House for 1 furnace of our hearts. I pledge allegiance to the Flag of the United States of America, and to the Repub- minute and to revise and extend his re- Let us prepare ourselves for the lic for which it stands, one nation under God, marks.) struggle of today by innocence of indivisible, with liberty and justice for all. Mr. LAMPSON. Mr. Speaker, I won- heart, integrity of faith, and dedication f der what Ludwig Koons is doing this to virtue. As we make our way into the morning. Perhaps he is watching his future, may we seek partners in peace ANNOUNCEMENT BY THE SPEAKER mother get ready for work by taking today and respond justly and honestly The SPEAKER. The Chair will enter- her clothes off for a pornographic to everyone. May we simply become tain 10 one-minute speeches on each photo shoot or get ready for an erotic creative instruments with each other side. sex show. to shape a new day for America and the f A couple of weeks ago I called the world. State Department and asked them May divine light and eternal truth be HONORING THE WOMEN OF what they were going to do to help with us now and forever. Amen. TOMORROW PROGRAM fight Italy, who is totally disregarding (Ms. ROS-LEHTINEN asked and was the welfare of Ludwig Koons. I asked f given permission to address the House for Secretary Powell. I did not get to for 1 minute and to revise and extend speak with him but soon thereafter re- THE JOURNAL her remarks.) ceived a list of actions that the State The SPEAKER. The Chair has exam- Ms. ROS-LEHTINEN. Mr. Speaker, I Department has taken on behalf of ined the Journal of the last day’s pro- rise to congratulate the Women of To- Ludwig Koons. The actions include on ceedings and announces to the House morrow program, a mentoring and April 22, 2000, the State Department his approval thereof. scholarship program for high school- sends Jeff Koons, the father, a recap of Pursuant to clause 1, rule I, the Jour- age girls. the activity on the case. Thanks. On nal stands approved. News anchor, Jennifer Valoppi, and September 21, 2000, the Consul General, Mr. MCNULTY. Mr. Speaker, pursu- Don Browne, president and general Charles Keil, replies to an inquiry from ant to clause 1, rule I, I demand a vote manager of NBC 6, co-founded this or- the gentlewoman from New York (Mrs. on agreeing to the Speaker’s approval ganization which successfully out- MALONEY). Thanks. On October 17, 2000, of the Journal. reaches to young women wishing to the State Department calls Mr. Koons The SPEAKER. The question is on further their educational and career and agrees to talk to his attorney. the Chair’s approval of the Journal. goals. Thanks.

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

H1203

. H1204 CONGRESSIONAL RECORD — HOUSE April 11, 2002 This is what the State Department RETURN MARTIN AND GRACIA about a ban on the Ten Command- calls action? If any of us took action BURNHAM ments in the Constitution. like that, we could not get reelected. (Mr. TIAHRT asked and was given James Madison, the author of the That is what our constituents would permission to address the House for 1 first amendment, which guarantees do. minute and to revise and extend his re- freedom of religion, said, ‘‘We have I want to send a strong message marks.) staked the future of all our political in- today to the State Department and to Mr. TIAHRT. Mr. Speaker, today stitutions upon the capacity of each Secretary Powell. Congress will not marks the 320th day that Martin and and all of us to govern ourselves, to stand for this any longer. American Gracia Burnham have been held cap- control ourselves, to sustain ourselves citizens, including Ludwig Koons, are tive by Muslim terrorists in the Phil- according to the Ten Commandments being held captive. It is your job to ippines. I had hoped to return to this of God.’’ bring our children home. podium after the recess and tell you Mr. Speaker, we should pass the Ten f the great news of Martin and Gracia’s Commandments Defense Act. FUNDAMENTAL TAX REFORM release. f It has been customary in the Phil- (Mr. LINDER asked and was given 300TH ANNIVERSARY OF KING ippines for hostages to be released over permission to address the House for 1 WILLIAM COUNTY, VIRGINIA the Easter holidays, so I was hopeful minute and to revise and extend his re- (Mrs. JO ANN DAVIS of Virginia that the Burnhams would be released. marks.) asked and was given permission to ad- Sadly, their children, Jeff and Mindy Mr. LINDER. Mr. Speaker, today is dress the House for 1 minute and to re- and Zack, celebrated another holiday the last legislative day before the glo- vise and extend her remarks.) without their beloved parents and rious tax day on Monday when all Mrs. JO ANN DAVIS of Virginia. Mr. without any communications from Americans happily come together for Speaker, I rise today in commemora- their parents. the good of their country. Let me state tion of the 300th anniversary of King Martin and Gracia are still being some facts about the tax system. William County in Virginia’s First held by savages with no regard for Americans will collectively spend 6 Congressional District. Nestled be- human life. Devout Christians who billion hours complying with the Tax tween the beautifully extraordinary strongly believe that every life is pre- Code, which is not surprising, since the waters of the Pamunkey and cious, the Burnhams have learned early most basic tax form, the 1040 EZ, has 32 Mattaponi Rivers lies the 286 square on that terrorists place no worth on pages of instructions. Tax compliance miles of rolling farmland and scenic human life as they watched their fel- costs estimated at approximately $250 timberland that embodies King Wil- low captives become beheaded. billion a year will be $900 for every liam County. On September 11, Americans were man, woman, and child in America. This unique county enjoys many no- The IRS will receive 100 million confronted with this reality. Daily in table attributes that distinguish King phone calls for assistance and the an- Israel and in Palestine people are dis- William within Virginia. Home to the swers that they give when you get gusted by the evidence of these reali- only native American Indian reserva- through are wrong 47 percent of the ties. President Bush is absolutely right tions in the Commonwealth, to the old- time. There are five different defini- when he declares terrorists as evil. est courthouse in continuous use in the tions of a child in Federal tax law with This evil force is on the offensive United States, and to Carter Braxton, 200 pages of instructions interpreting around the world. But evil is not signer of the Declaration of Independ- those definitions. One dollar’s worth of stronger than good. Hate is not strong- ence, King William County is deeply gasoline includes 48 cents in taxes. A er than love. Americans love human rooted with historical significance. $1.14 loaf of bread reflects 35 cents in life, and so it is our duty to eradicate An April 11 birthday ceremony inau- taxes. Eighteen cents of a 50-cent can terrorism and promote the respect for gurates King William County’s Tri- of soda goes to taxes. A $153 utility bill life. centennial Celebration that continues consists of approximately $39 in taxes. I ask as always for you to join in with numerous activities throughout Mr. Speaker, in a recent poll Ameri- prayer with me for Martin and Gracia 2002. Marking the county’s 300 year cans were more afraid of receiving an Burnham and their loved ones so this milestone, this celebration is an impor- IRS audit notice than anthrax. It is nightmare may soon be over. tant commemoration of the county’s time to end the code. f dual heritage of colonial and Native American roots. I am proud to recog- f TEN COMMANDMENTS DEFENSE nize the rich treasure of King William’s KELLER-SHAW BILL SUPPORTS ACT past and much prosperity in the future. OUR TROOPS (Mr. PITTS asked and was given per- f (Mr. KELLER asked and was given mission to address the House for 1 permission to address the House for 1 minute and to revise and extend his re- BI-LO, A PROVEN COMMUNITY minute and to revise and extend his re- marks.) LEADER marks.) Mr. PITTS. Mr. Speaker, if we look (Mr. WILSON of South Carolina Mr. KELLER. Mr. Speaker, I rise at the wall around us, we see medal- asked and was given permission to ad- today to announce the filing of the Kel- lions of famous law givers. We see pro- dress the House for 1 minute and to re- ler-Shaw Combat Pay for Combat Risk files of Hammurabi, Napoleon, and vise and extend his remarks.) Act of 2002. How does it work? Madison. But dead center facing for- Mr. WILSON of South Carolina. Mr. If our troops are deployed in support ward, full face, is the greatest of all Speaker, sometimes businesses become of Operation Enduring Freedom and law givers, Moses. Moses, who received so interwoven within a community they are receiving hazardous duty pay, the Ten Commandments engraved on they become like family. Bi-Lo, a rap- they will not have to pay any Federal two tablets, the 10 laws that form the idly growing supermarket chain, is one income taxes. Currently, we have legal and moral foundations of Western such company endearing itself to the troops in the Philippines, Malaysia, Civilization itself. people of the Second Congressional and Indonesia who are at risk of com- Back home in Chester County, Penn- District of South Carolina. bat in their fight against terrorism sylvania, we also honor the Ten Com- Based in Mauldin, South Carolina, who are still paying income taxes. mandments; and for over 80 years, the Bi-Lo has more than 280 stores in five The Keller-Shaw bill will fix this dis- plaque listing the Ten Commandments States. In the second district alone crepancy and not tax their pay. I urge has hung on the outside wall of our there are 23 Bi-Lo stores employing my colleagues to support our U.S. county courthouse. But now a Federal 1,825 hard-working and dedicated South troops who are fighting terrorism judge wants the plaque removed. He Carolinians. For these people, Bi-Lo abroad, and call my office today to sign says it violates the separation of has provided meaningful employment on as a co-sponsor to this important bi- church and state. I have read the Con- that gives each person a chance to partisan legislation, H.R. 4152. stitution. I have never seen anything excel. I should know because my two April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1205 oldest sons have worked at the local This is the party whose hallmark The SPEAKER pro tempore. The gen- Bi-Lo where they have learned the self- this year has been Enron and no budg- tleman from Georgia (Mr. LINDER) is satisfaction that comes from hard et. What are the Democrats thinking? recognized for 1 hour. work. Throw the Democratic budget on the Mr. LINDER. Mr. Speaker, for the Yet beyond offering quality groceries table. We may vote for it, we may vote purposes of debate only, I yield the cus- and providing meaningful employment, against it. We may combine their ideas tomary 30 minutes to the gentleman Bi-Lo has made charitable efforts a pri- with our ideas, but come to Wash- from Texas (Mr. FROST), pending which ority. Their programs donate money ington with a budget. Come to Wash- I yield myself such time as I may con- and food to Meals on Wheels, food ington with a plan. Come to Wash- sume. During consideration of this res- banks, local schools, churches, and ington ready to pass legislation. Come olution, all time yielded is for the pur- other groups. Also their Golden Apple to Washington ready to debate. pose of debate only. Awards recognize the vital work of pro- If my colleagues do not want to take Mr. Speaker, the resolution before us fessional educators. All companies the responsibility of their office, this is is a fair, structured rule providing for should take note of Bi-Lo’s example an election year, it is also a good time the consideration of H.R. 3762, the Pen- that a strong business can best survive for voluntary retirement. Consider it, sion Security Act. H. Res. 386 provides when they help to build a strong com- because the House is going to keep 2 hours of debate in the House equally munity. working. divided among and controlled by the f f chairmen and ranking minority mem- bers of the Committee on Education SIMPLIFY OUR TAX CODE ANNOUNCEMENT BY THE SPEAKER and the Workforce and the Committee PRO TEMPORE (Mr. GIBBONS asked and was given on Ways and Means. All points of order permission to address the House for 1 The SPEAKER pro tempore (Mr. are waived against consideration of the minute and to revise and extend his re- LAHOOD). Members are reminded not to bill. marks.) make improper references to the other It also provides that in lieu of the Mr. GIBBONS. Once again, Mr. body. amendment recommended by the Com- Speaker, April 15, tax day, is just a f mittee on Education and the Workforce now printed in the bill, the amendment weekend away; and too many Ameri- PROVIDING FOR CONSIDERATION in the nature of a substitute printed in cans spend too much time and too OF H.R. 3762, PENSION SECURITY part A of the Committee on Rules re- much money preparing and paying ACT OF 2002 their taxes. The estimated preparation port accompanying this resolution Mr. LINDER. Mr. Speaker, by direc- time for an IRS 1040 form now is right shall be considered as adopted. All tion of the Committee on Rules, I call at 13 hours and 27 minutes, and those points of order against the bill, as up House Resolution 386 and ask for its unfortunate taxpayers who need to amended, are also waived. immediate consideration. The amendment printed in part B of itemize their deductions will be devot- The Clerk read the resolution, as fol- 1 the report, if offered by the gentleman ing an additional 5 ⁄2 hours in preparing lows: their tax forms. from California (Mr. GEORGE MILLER) H. RES. 386 It is obvious, Mr. Speaker, that our or the gentleman from New York (Mr. Resolved, That upon the adoption of this RANGEL) or a designee is also made in Tax Code is too complex and places too resolution it shall be in order without inter- great a burden on our hard-working order. It shall be considered as read vention of any point of order to consider in and shall be separately debatable for 1 families. Too many Americans, over 67 the House the bill (H.R. 3762) to amend title million filers, spend millions of dollars I of the Employee Retirement Income Secu- hour equally divided and controlled by employing professional tax preparers rity Act of 1974 and the Internal Revenue the proponent and an opponent. The just to wade through the Tax Code; and Code of 1986 to provide additional protections rule waives all points of order against it is pretty tough to wade through 2.8 to participants and beneficiaries in indi- the amendment printed in part B of the million words of our Tax Code. Even vidual account plans from excessive invest- report. Finally, the rule provides one ment in employer securities and to promote the book ‘‘War and Peace’’ is a quicker motion to recommit with or without the provision of retirement investment ad- instructions. read at 660,000 words. vice to workers managing their retirement Mr. Speaker, it is time to simplify Mr. Speaker, the issue before the income assets, and to amend the Securities House today is one of utmost impor- our Tax Code. It is the fair solution to Exchange Act of 1934 to prohibit insider such a taxing problem for every Amer- trades during any suspension of the ability tance to American families across the ican. of plan participants or beneficiaries to direct Nation: securing the economic security investment away from equity securities of of their retirement years. H.R. 3762 rep- f the plan sponsor. The bill shall be considered resents the good work of my friends b 1015 as read for amendment. In lieu of the amend- and colleagues, the gentleman from ment recommended by the Committee on Ohio (Mr. BOEHNER) and the gentleman WHERE IS THE DEMOCRATS’ Education and the Workforce now printed in from California (Mr. THOMAS), who BUDGET? the bill, the amendment in the nature of a have spent countless hours carefully (Mr. KINGSTON asked and was given substitute printed in part A of the report of the Committee on Rules accompanying this crafting a bill that includes safeguards permission to address the House for 1 resolution shall be considered as adopted. All and options to help workers preserve minute and to revise and extend his re- points of order against the bill, as amended, and enhance their pension plans in marks.) are waived. The previous question shall be order to help provide for themselves Mr. KINGSTON. Mr. Speaker, ter- considered as ordered on the bill, as amend- and their families in their retirement rorism insurance, so that small busi- ed, and on any further amendment thereto to years. nesses can expand and create jobs. final passage without intervening motion ex- We all witnessed the tragic unravel- Trade promotion authority, so that we cept: (1) two hours of debate on the bill, as ing of Enron Corporation and have wit- can get American industry moving amended, equally divided among and con- trolled by the chairmen and ranking minor- nessed the disbelief and anger of the again and sell our goods overseas. ity members of the Committees on Edu- thousands of employees who lost their Faith-based institutions, allowing cation and the Workforce and Ways and jobs and most, if not all, of their retire- them to participate in the delivery of Means; (2) the further amendment printed in ment savings. While those workers welfare job training and other social- part B of the report of the Committee on were quite possibly victims of criminal type services. Energy legislation, so Rules, if offered by Representative George wrongdoing, there is no question they that we will have lower gas prices, both Miller of California or Representative Ran- were most definitely the victims of an home heating oil and at the gas pump gel of New York or a designee, which shall be outdated Federal pension law. for our cars. All of these held up by the in order without intervention of any point of I am a firm believer in encouraging order, shall be considered as read, and shall Democrats. All of these pieces of legis- be separately debatable for one hour equally Americans to help secure their own fu- lation, and, in total, 51 have been divided and controlled by the proponent and tures through savings. While savings passed by this House, all held up by the an opponent; and (3) one motion to recommit must begin with the individual, there Democrats in the other body. with or without instructions. are ways that government can help and H1206 CONGRESSIONAL RECORD — HOUSE April 11, 2002 encourage people to save. The average this bill with a bipartisan vote last au- publicans passed their so-called class 50-year-old in America currently has tumn. While employees must be en- action bill, which would make it harder less than $40,000 in personal financial couraged to save, they must be pro- for Enron employees and retirees to wealth. Statistics also show that the vided with sound advice and resources hold accountable the corporate wrong- average American retires with savings in order to make sound decisions. The doers who defrauded them. So I suppose totaling only about 60 percent of their bill would allow qualified financial ad- we should not be shocked that this Re- former annual income. Quite simply, visors to offer investment advice if publican bill would do nothing to en- Americans are saving too little. they agree to act solely in the fidu- sure that other Americans do not suf- The tragedy of Enron went further ciary interest of the workers they ad- fer the same fate as Enron’s employees. than just diminishing the savings of vise. That does not make this empty Re- some employees. Sadly, Enron has un- Mr. Speaker, passage of this bill publican promise any less outrageous, dermined the confidence of American would send a strong signal to both em- and calling this Republican bill the workers in this country’s pension sys- ployers and employees of this country. Pension Security Act dangerously mis- tem. The collapse of Enron highlights Employers should be commended for leads millions of Americans about the the need for protections and safeguards continuing to offer workers investment security of their 401(k) plans, and since to help workers preserve and enhance options, but they must exercise cor- the Republican assault on Social Secu- their retirement savings. porate responsibility as they do so. rity continues, protecting Americans’ The Pension Security Act includes Workers should be encouraged to save, 401(k) plans is even more vital to finan- new options and resources for workers, with the safety of knowing that their cial security for millions of retirees. Mr. Speaker, Enron employees lost as well as greater accountability from investments are secure. more than $1 billion from their retire- companies and senior-level executives. It is my hope this legislation will not ment nest eggs, while the corporate in- I would like to highlight some of the only provide much needed reform for siders who defrauded them made mil- key elements of this bill. our country’s pension system but also lions. The scandal is so bad that earlier First, the bill gives employees new help restore confidence in a system this week, the Arthur Andersen auditor freedoms to sell company stock and di- which has enabled generations of who oversaw the books at Enron pled versify into other investments. Current American workers to enjoy secure and guilty, and the New York Times re- law allows employers to restrict a independent retirement. ports today that Arthur Andersen is worker’s ability to sell their company I would like to commend the tremen- near a deal to do the same. stock in certain situations until they dous efforts of both the gentleman We should not be slamming the door are age 55 years old and/or have 10 from Ohio (Mr. BOEHNER) and the gen- on corporate fraud and abuse that com- years of service with the company. tleman from California (Mr. THOMAS) pany insiders used to pick the pockets This bill gives employers the option in bringing this legislation to the of their employees and investors. So of allowing workers to sell their com- House floor. I urge my colleagues to the gentleman from California (Mr. pany stock 3 years after receiving it in join me in supporting not only this fair GEORGE MILLER) and the gentleman their 401(k) plans, presumably at the rule, so that the House can proceed to from New York (Mr. RANGEL) are offer- beginning of their service. This 3-year consider the underlying legislation, but ing a Democratic substitute today, one ‘‘rolling diversification option’’ pro- the legislation itself. that takes real steps to protect em- vides employers with the ability to Mr. Speaker, I reserve the balance of ployees and hold corporate wrongdoers promote employee ownership while giv- my time. accountable. It ensures a level playing ing employees the flexibility to make Mr. FROST. Mr. Speaker, I yield my- field between executives and employ- choices according to their own inter- self such time as I may consume. ees, and the corporate wrongdoers can- ests. Mr. Speaker, this is a very important not take advantage of employees and This legislation also creates parity debate for the House. It is a debate investors. between senior corporate executives about the Enron scandal, and it is a de- As the President said after the Enron and the rank-and-file workers. During bate about whether this Republican collapse, ‘‘If it is good enough for the blackout periods, routine times when a House will keep its promise to the captain, it is good enough for the plan must undergo administrative or American people. crew.’’ For example, the Democratic technical changes, employees are un- When the Enron Corporation col- substitute requires that employees be able to change or access their retire- lapsed late last year, thousands of its notified when executives are dumping ment accounts. What we saw from employees lost their life savings and an stock, and it prevents executives from Enron was an example of disparity, untold number of innocent investors selling their stock while employees are where the executives were able to sell had their pockets picked by a few prohibited from selling their stock. If off their investments and preserve greedy company insiders. It was the the Democratic bill had been law, their savings, while rank-and-file worst corporate scandal in U.S. his- Enron executives could not have bailed workers were barred from making tory. out while promising their employees changes. Virtually everyone in Washington, that everything would be just fine. Under this bill, workers would be Republicans as well as Democrats, The Democratic substitute also gives given a 30-day notice before a blackout promised that it would never happen employees a seat on pension boards so period begins. Furthermore, during a again. Well, today, the House will con- they have a voice when critical deci- blackout period, neither an executive sider what the Republican leadership sions about their retirement security nor a rank-and-file employee would be has chosen as its response to the scan- are made. permitted to make any changes to dal of Enron, and I am sure we will It provides employees with access to their plan. hear a lot of Republicans come to the independent, unbiased financial advice, The Pension Security Act also re- floor today and claim that their bill, and it ensures that they get honest, ac- quires workers to give annual state- the so-called Pension Security Act, re- curate, and timely information about their pension plans. ments regarding their accounts and sponds to the Enron scandal. Finally, the Democratic substitute their rights in their investments. Cur- Mr. Speaker, we can argue over the increases criminal penalties against rently the law only requires that work- particulars of what the Republican bill corporate wrongdoers who violate em- ers receive annual notices, with no would do, but there is no doubt about ployees’ pension rights. guarantee of what information must be what it will not do. It will not protect Mr. Speaker, the Democratic sub- provided. This would ensure that em- Americans from corporate wrongdoers stitute is the only real response to ployees receive accurate and timely in- like the ones at Enron. It will not stop Enron on the floor today. It is our only formation. unscrupulous executives at another chance today to protect Americans Finally, this bill incorporates the corporation from defrauding their em- from another Enron scandal. key principles from H.R. 2269, the Re- ployees and investors the way Enron tirement Security Advice Act. Under executives did. b 1030 the leadership of the gentleman from I suppose we should not be too sur- Mr. Speaker, I urge all Members to Ohio (Mr. BOEHNER), the House passed prised. After all, just last month Re- vote for it. It is also my intention to April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1207 vote against the previous question on plans. Let me repeat that. Equal treat- on to them until you were 50 or 55, this rule. If the previous question is de- ment of employer and employee retire- could not divest them for 5 or 10 years, feated, I intend to offer an amendment ment plans. and could not diversify their holdings. by the gentleman from Michigan (Mr. Yet while we know what needs to be We learned that employees, even CONYERS), the ranking member on the done, the majority’s bill inadequately though the vast majority of these Committee on the Judiciary. His addresses these issues. The Republican funds, or in fact all of these funds, were amendment, the Corporate and Crimi- bill does not require employers to no- assets that belonged to the employees, nal Fraud Accountability Act, would tify employees when they are dumping that in many instances they were not allow the House to vote on increasing stocks. It locks employees, but not em- given a voice on the pension board; and the penalties against the corporate ployers, into 3- or 5-year stock holding clearly, they were not at Enron. What wrong-doers, like the Enron executives situations, thus continuing down the happened, the members of the Enron who brought their company to ruin, dangerous road of nondiversified port- pension board sold their stock. They while walking away with their pockets folios. It denies employees a crucial never told the employees that they stuffed with cash. vote on pension boards. It does not were selling, or that they thought the If we are really going to consider hold employers liable in the case of an- stock should be sold. They saved them- pension security, we ought to make other Enron or Global Crossing, and selves millions of dollars. The employ- sure that corporate wrong-doers do not continues the special treatment of em- ees got wiped out. Why? Because they think that they can get away with this ployers’ pensions. had a conflict. Nobody represented the kind of fraud again. Without that addi- This bill fails to protect employees rank-and-file employees on the pension tion, this Republican bill would leave and often yields power and leverage to board which was made up of executive the pension plans of employees and in- executives and business owners. Can- vice presidents who were trying to get vestors vulnerable to another Enron. didly, it is an act of irresponsibility. to the corner office. Mr. Speaker, I reserve the balance of The Democratic substitute addresses They also found out that the employ- my time. these issues; and it addresses them in a er’s plans at Enron were ensured. They Mr. LINDER. Mr. Speaker, I yield manner that treats the retirement were guaranteed. So as Enron goes into myself such time as I may consume. packages of employees equal to those bankruptcy, the executive elites, their Mr. Speaker, we will hear a lot of of their employers, even more, in hold- retirement plans are guaranteed. They demagoguery about Enron today. Some ing employers accountable for vio- saved millions of dollars for their fu- ture use through insurance plans and may be true. But the one point made lating workers’ pension rights. The guarantees. The employees, wiped out, that the bill passed by the Republicans Democratic substitute fills a large hole and at best get to stand in line and on class action suits a few weeks ago in the majority’s bill. would have undercut Enron’s ability Mr. Speaker, I hope that my col- hope to get something from the bank- ruptcy court where they have no real and its employees’ ability to sue is leagues on both sides of the aisle real- protections. simply wrong. What we said was above ize that we have the chance for a bipar- We also wanted to make sure when a certain threshold, those suits may be tisan compromise on pension security. the employer, the executive elites, removed to Federal court. The Enron We could have reached one during the were making a decision to sell stock, suit is in Federal court. It would not hearing process before last night’s that somebody would tell the employ- have been hampered one wit. Committee on Rules meeting, and cer- ees. There is no requirement in the law Mr. Speaker, I reserve the balance of tainly today. today. And yet when Ken Lay was tell- my time. Instead, the majority is trying to ing people he was buying stock, he was Mr. FROST. Mr. Speaker, I yield 4 push through its own misguided bill secretly selling stock to liquidate his minutes to the gentleman from Florida that fails working families at a time personal debts at Enron. The employ- (Mr. HASTINGS). we need to be protecting them. Mr. HASTINGS of Florida. Mr. ees had no way of knowing that, no Mr. Speaker, I urge my colleagues to timely notification. They lost their as- Speaker, I rise today to indicate that oppose this rule, oppose the underlying sets; the Ken Lays protected them- this rule serves as an example for those bill, and support the Democratic sub- selves. of us who continually point out that stitute. I know that if Enron’s former Finally, what we see is these employ- bipartisanship is a rhetorical idea that employees were able to vote here ees have no real right of action for the the majority refuses to turn into a re- today, they would do just that. misconduct of the executives of Enron, ality. Sure, the rule allows for one Mr. LINDER. Mr. Speaker, I reserve for the executives of Enron that have Democratic substitute. But yesterday the balance of my time. wiped out their retirement plans. We evening the Committee on Rules shot Mr. FROST. Mr. Speaker, I yield 7 think that they should be made whole, down along party lines more than 12 minutes to the gentleman from Cali- that they should have a right to go amendments that were offered by fornia (Mr. GEORGE MILLER). after that; but under ERISA, they have Members on both sides of the aisle. I Mr. GEORGE MILLER of California. no rights. particularly paid attention to the one Mr. Speaker, this is really about two Mr. Speaker, what is the distinction offered by the gentleman from Min- different approaches to the protection today between the Republican bill and nesota (Mr. GUTKNECHT), which I think of American workers’ retirement funds. the Democratic substitute? The Repub- should have been permitted by the Earlier this year, American workers lican bill learns nothing from Enron. It Committee on Rules. Many of these all across this country were jolted by lets executives continue to sell stock amendments would have aided the the fact that their 401(k) plans, which and not notify the employees. It con- leadership of both parties to move clos- they are having to increasingly rely on tinues to treat the executive retire- er together on comprehensive and for their retirement nest-eggs, could be ment assets completely different than agreeable compromise. But as we see vulnerable and could be wiped out by the employee retirement assets. It this morning, the majority is not in incredible actions by corporate execu- makes sure that the employees have no the business of compromise. tives. But that is what happened to the voice on the pension board, even The notion of pension reform was people who worked for Enron, and that though research shows that where em- raised from the rubble of the Enron is what millions of Americans all of a ployees have a voice on the pension scandal. Congressional hearings and sudden understood was possible with board, they invest more money and, in law enforcement investigations have their plans. fact, they do a little bit better on the shown that to prevent future Enrons, So we learned a lot of information rate of return on those investments. Global Crossings and countless others, about the Enron case and about the So they have learned nothing about Congress must address the issues of di- vulnerability of employee retirement protecting American workers as a re- versification, auditor independence, funds. We learned first and foremost sult of the disaster at Enron, as a re- honest and accurate information, that many employees had no control sult of the greed at Enron, as a result tougher criminal enforcement, and over many of the assets that were put of the self-dealing at Enron, as a result most important, equal treatment of into their funds because corporations of the conflicts of interest. The Repub- employer and employee retirement have said that employees have to hold licans have learned nothing because H1208 CONGRESSIONAL RECORD — HOUSE April 11, 2002 their bill does nothing to provide fur- ble-dealing of corporate executives, by The Nation’s private pension system ther protections. the conflicts of interest in the finan- is essential to the security of American Yes, they let them diversify; but it is cial institutions and the accounting in- workers, retirees and their families. a 3-year rolling diversification. Three stitutions. We cannot let that happen Congress should move decisively to re- years ago, people were in the last again. We must pass the Democratic store worker confidence in the Nation’s stages of the greatest bull market in substitute. retirement security and pension sys- the history of this country; and today, Mr. LINDER. Mr. Speaker, I yield tem, and President Bush’s reform pro- people have lost many of their assets. such time as he may consume to the posal will do just that. This is a bipar- Three years in the marketplace is a gentleman from Ohio (Mr. BOEHNER), tisan bill. I look forward to working long time. the chairman of the Committee on with my colleagues on both sides of the How is it that we believe that we can Education and the Workforce. aisle as we move forward on this im- lock up people’s assets for 5 years, and Mr. BOEHNER. Mr. Speaker, before portant issue. then for every 3 years after that? us today is a bipartisan bill that will The rule today before us, I believe, is Finally, the final insult to the em- help promote security, education, and a fair rule. I urge my colleagues to sup- ployees in this bill, and that is the in- freedom for employees who have port it. vestment advice provisions. For the worked and saved all of their lives for Mr. FROST. Mr. Speaker, I yield 3 first time under the Federal laws pro- a safe and secure retirement. Those of minutes to the gentleman from New tecting these pension plans, conflicted us on the Committee on Education and York (Mr. RANGEL), the ranking mem- advice will be allowed to be offered. the Workforce have been engaged in ber on the Committee on Ways and That comes just 2 days after we learn pension reform issues for several years Means. of the Merrill Lynch conflicts where now, looking at ways to expand worker (Mr. RANGEL asked and was given Merrill Lynch, as an investment bank- access to high-quality investment ad- permission to revise and extend his re- er, was making tens of millions of dol- vice and encourage employers to spon- marks.) lars on investment advice and arrange- sor retirement plans for their workers. Mr. RANGEL. Mr. Speaker, when the ments for these companies and then Enron scandal started, so many report- b 1045 were telling their people who were giv- ers were trying to associate this with ing retail advice to investors all across As our committee began hearings to the administration and they did all the country that these were good address the Enron collapse, we did so they could to distance themselves from stocks and good for retirement plans, with a firm commitment to identify this conduct that was just repugnant when we find out that they did not be- further reforms that will strengthen to everything that fairness and equity lieve that at all. the retirement security of American would want us to do. So one would Investment advice can be very impor- workers. think that the Republican leadership tant to Americans trying to secure The Pension Security Act, based on in the House would want to do the their retirement; but it must be advice President Bush’s reform plan, sends a same thing, especially as related to without hidden commissions, without clear message that Congress is com- protecting the 401(k) employee con- hidden fees, and without hidden con- mitted to addressing the Enron col- tributions to their pension plans. This flicts of interest. America got a rude lapse by enacting new safeguards to re- being a tax issue, one would logically awakening with Enron, but we have store worker confidence in the Nation’s believe that it would be the leadership also learned that Enron is not unique. pension system. It accomplishes this of the Committee on Ways and Means I appreciate that Members want to goal in a number of ways: First of all, that would be showing our concern treat it as a one-time effort. We have the Pension Security Act includes new about protecting these pension plans. seen other corporations that have flexibility for workers to diversify But the silence has been deafening locked up the pension assets of employ- their portfolios and better information from my committee, and the leader- ees for their own convenience, for the about their pensions. In addition, it re- ship, what little there was, actually good of the corporation, as opposed to quires companies to give workers quar- came from the gentleman from Ohio the good of the workers. terly benefit statements that include (Mr. BOEHNER) who heads the Com- We have also seen other corporations information about their accounts, in- mittee on Education and the Work- where huge loans were secretly taken cluding the value of their assets, their force, and I thank him at least for rais- out, where stock was secretly sold, and right to diversify, and the importance ing the subject. But the President still the employees had no way of knowing of maintaining diversity in their port- was not convinced that we had fully it until after it was too late. After the folios. appreciated that captains were getting famous ship that the President keeps President Bush has also called upon a better shake than employees; that is, talking about, where what is good for the Senate to pass the Retirement Se- the executives in these firms. And so the captain is good for the crew, the curity Advice Act which passed this he continues to say that that there crew was already underwater. The cap- House last November with a large bi- should be more equity. tain did not even have the courtesy for partisan vote. The bill encourages em- The bill that comes to the floor real- the workers of many, many years, did ployers to make quality investment ad- ly puts the employees going upstream not even have the courtesy to bang on vice available to their employees. in a canoe without a paddle, because it the abandon-ship horn as he went to Some of Enron’s employees could have actually gives protection, even after the lifeboat. We owe America’s workers preserved their retirement savings if bankruptcy, to the executives while more. they had access to a qualified adviser the employees continue to suffer. One Mr. Speaker, this is the one vote we who would have warned them in ad- might ask a question, well, why would are going to get about millions of vance that they needed to diversify the Republicans do this to themselves workers, about almost all of our con- their investment portfolio. in an election year? The answer is, stituents in the workplace, about the The Pension Security Act also en- ‘‘It’s campaign contributions, stupid.’’ security and protection and the advice sures parity between senior corporate They tried yesterday to really disrupt and the control that they have over executives and rank-and-file workers campaign finance reform by putting a their retirement nest-egg. by prohibiting company insiders from little thing in there to disrupt it. But Mr. Speaker, our committee was selling stock during blackout periods the Republicans are no longer walking sadly treated to the testimony, as when workers are unable to change lockstep. They have to decide whether many other committees were, of work- their investment mix. The bill also they are going to follow the corpora- ers at Enron and many other corpora- strengthens the blackout disclosure re- tions or follow their constituents back tions who are in their 50s and 60s who quirements and specifically requires 30 home. thought that they had a great retire- days’ notice before a blackout period So for those who really want to see ment ahead of them; and it has van- could begin. Lastly, the bill clarifies what is going on in this House, do not ished. It was wiped out by incredible that companies in fact have a fiduciary listen to the debate but watch the corporate greed, by a lack of total eth- responsibility for workers’ investments votes today, because while you do not ics by corporate executives, by the dou- during a blackout period. find too much bipartisanship on the April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1209 floor, you are going to find Republicans tion. So if you arrive at age 46, you better decisions on their own. 401(k) and Democrats trying to protect their have to wait until you are age 56. But participants have gone in the last 22 employees by voting against the Re- with 401(k)s, they can go even further years from a few thousand employees publican bill that is on the floor today, than that. to millions of Americans. With over and voting for the Democratic sub- The legislation before us today 235,000 plans, 42 million Americans now stitute that is going to allow us to go makes a substantial change and di- enjoy the benefits of this. Do you not home feeling that we have protected rectly affects what happened at Enron. want to let them have a little more the employee and we are not going to The employees at Enron had to wait education so they can make these deci- allow the executives just to get away till age 50. They could not unload the sions? with whatever they want to do just be- stock if they wanted to. What we are This bill says on a pretax basis, you cause they are the captains of the ship. saying is, once you are there 3 years, can deduct out of your paycheck If this ship is going down, the integ- you are vested, you can unload the money to go out and get advice, wher- rity of America goes down with it. Eq- stock. Three years, instead of waiting ever you want. You can get it from uity and fair play should be a part of until you are age 50 or 55 or 65 or what- whoever you want. You can get 300 every pension bill. What happened to ever the employer wanted to do under bucks or 400 bucks or 500 bucks to go Enron, this is the last chance we will current law. Or the employer can in- out and seek advice. Pretax. That is a get to tell the American people how stead choose a 3-year ‘‘rolling,’’ which pretty good deal. Again, that came out much we believe in protecting their means that when you get stock, you of the Committee on Ways and Means. pension funds. can only be required to hold it for 3 I appreciate the gentleman from New Mr. LINDER. Mr. Speaker, I am years. That is a big difference. York supporting that. It is a good pro- pleased to yield such time as he may For those on that side of the aisle vision. It is going to help people to get consume to the gentleman from Ohio who say there is no change here, that the information they need to be able to (Mr. PORTMAN). this is somehow worse, how can that be make these decisions we are now em- Mr. PORTMAN. I thank my colleague worse? Think about the employees who powering them with. Rather than say- from Georgia for yielding me this time. are in 401(k)s around this country who ing you have got to hold onto that Mr. Speaker, I thought what I might are taking advantage of that employer stock until you retire, we are saying, do is respond to some of the comments match but who want to have a little you should diversify. We want to give that have been made on the other side more choice. Do we not want to give you the information to do so. of the aisle, first to my friend from that to them? Why would you vote And then in Chairman BOEHNER’s New York, the ranking Democrat on ‘‘no’’ on this? This is going to help mil- committee, the provision was added to the Committee on Ways and Means. I lions of people be able to have more say the company ought to be able to go was there with him in the Committee choice. out and get advisers to come in who on Ways and Means when we had a It also has a very important compo- are certified advisers, who disclose any good hearing, a good markup on these nent, which is more information and conflict of interest they might have or issues, and I appreciate his support of education. On the information side, it potential conflict of interest, and they the Portman-Cardin provisions which says you now have to be told about a ought to be able to offer advice. That are really the base of this legislation. blackout. Right now there is no notice passed this House with over 60 Demo- There has been something added since requirement for blackouts. A blackout crats supporting it last year, in No- that time, which is that those ‘‘cap- is when a company stops all the trad- vember. That is not a controversial tains’’ are prohibited from trading ing in their stock, in their 401(k) plan provision. their stock at all during a blackout pe- or other pension plan during a period of The final thing is that we require not riod so long as 50 percent of the partici- time, for example, when they are just more diversification options, more pants in the plan are affected by the changing plan administrators or man- choice, more information, more edu- blackout. agers. Right now there is no require- cation, but we actually force the em- So you supported us in committee, ment for a notice. ployer now to tell employees they we had a good bipartisan product, we Some say Enron provided notice, ought to diversify. When an employee had a good debate on it, we made some some say they did not. That is really now enters into a plan, we are going to changes to accommodate some of the beside the point, because this is not require for the first time that they be gentleman from Maryland’s and your just about Enron. The point is that given a notice which says, ‘‘Guess concerns and others, and then we added right now there is no ability for em- what, it’s not a good idea to put all to it by actually putting in place what ployees to know when they are going your eggs in one basket. You ought to you indicated a moment ago is your into a blackout period where they can- diversify.’’ That is in this bill. It is not biggest concern: that there is nothing not trade. We say it has to be given 30 in current law. Then every quarter, in here to keep the captains from trad- days before the blackout. That is new. they are now required to provide a ben- ing stock when the sailors cannot. There is no requirement now. efit statement telling the employee I know there are some other issues. Again, for my colleagues on that side what is going on with their plan and There is investment advice in here that of the aisle to stand up and say this another notice saying, you ought to di- was not in our bill, although we did does not change things at all, I hope versify. Because for retirement sav- have the pretax investment advice pro- they are looking out for the interests ings, it is not a good idea to have all posal. I would just hope that those lis- of the employees, but I have got to your eggs in one basket. Information, tening to the debate today who are wonder. Is this all about politics or is education, choice, equals security. still trying to decide whether this is it about making real change that is This is a pretty straightforward, the right legislation to support or not, going to make a real difference? We commonsense piece of legislation. I particularly on the other side of the had a 36–2 vote out of the Committee have enjoyed working with the gen- aisle, would take a look at the bill. on Ways and Means on this issue be- tleman from Maryland (Mr. CARDIN) on The gentleman from California (Mr. cause the gentleman from New York it for the past 3 or 4 months, enjoyed GEORGE MILLER) earlier who spoke in (Mr. RANGEL) and other Democrats working with the administration, with opposition to the bill because he said it looked at the bill, read the bill, under- the gentleman from Ohio (Mr. did not do anything, I hope he would stood its impact on workers and sup- BOEHNER), with the gentleman from look at what came out of the Com- ported it. New York (Mr. RANGEL), with other mittee on Ways and Means and the Finally, in order to be able to make Democrats on the Committee on Ways gentleman from Ohio’s committee informed choices, because we are giv- and Means. I would just hope that more carefully because it does do a lot. ing people more choices, we are giving today in a political year, where there is Right now if you are in a 401(k), your people more information, you want to a lot of partisanship, that we can set employer can say, ‘‘You’re tied in till give people more education. I thought some of that aside for the good of the you retire.’’ If it is an ESOP, they can there was a bipartisan consensus about workers, not the people at Enron sole- only tie you until you are age 55. Plus that. I thought we wanted people to be ly, the people all around this country you have to have 10 years of participa- better informed so they could make who are in 401(k) plans that have the H1210 CONGRESSIONAL RECORD — HOUSE April 11, 2002 huge advantage of getting an employer They did not want to have a straight ney’s Office in New York have shown match. For those people, we ought to matchup of each part of this bill. We that that happens day in and day out. offer them better information, better are not allowed to bring forward The American public and the work- education opportunities, and more amendments and talk about the several ing people need to know they have ad- choice. That is what this is about. aspects that you heard the gentleman vice that is not conflicted. Employers This legislation, Mr. Speaker, has from California (Mr. GEORGE MILLER) can be protected on the advice that been bipartisan from the start. I am talk about earlier, because when you they give, but there is no excuse to not disappointed from what I have heard stack them up one against the other, protect the employees and to make this morning from the other side. I this side that is with the employees, sure advice they get is absolutely not would hope that at a minimum we can with working people, would win hands conflicted. It is just one more way in stick to the facts today, and if at the down. It is only by putting them all to- which this bill does not favor employ- end of the day some of my colleagues gether in the aggregate and then try- ees and does more for the executives on that side think this is such a great ing to put it through on a party-line than it does for the working people. political issue that they just have to vote that they stand to have any pros- Mr. TIERNEY. Mr. Speaker, I thank the vote ‘‘no,’’ so be it. But let us not as we pect of having a bill that favors em- gentleman from New Jersey for yielding me go through this debate mislead the ployers and the well-to-do against peo- this time. American people and mislead our col- ple that work every day and need pro- Like many Members, I represent people who have worked hard and whose entire hope leagues as to what is in this legisla- tection. for a secure retirement may well rest on the tion. It is good, solid legislation that I will associate myself with the re- success of their 401(k): leather workers, jet does address what happened at Enron. marks of the gentleman from Cali- engine assemblers, teachers, nurses, and It is not the silver bullet that is going fornia (Mr. GEORGE MILLER) on the gen- other hard-working, intelligent folks who to solve every problem in our pension eral aspects of the substitute, and that are bright and able, but many of whom have area, but it makes substantial should pass. Thank God the rule at little experience in understanding invest- progress. It does not turn the clock least allows that. ment fundamentals. They may lack the time back. It moves the clock forward. It But I had tried, Mr. Speaker, to get or even the knowledge to work through a in an individual amendment speaking mountain of financial information. They gives people information, education, need advice that is given by a provider that security, that they need. just to the issue of advice and was not meets at least minimum standards, one who I would strongly urge my colleagues allowed the opportunity to do that. is qualified and one who is subject to the on both sides of the aisle to look at the That is why this rule is in essence an laws of ERISA’s fidicuary standards, stand- bill and if they do so, I believe they abomination. That issue and others are ards of trust, and one who is free from finan- will support it. being excluded from a direct debate in cial conflict, free from divided loyalties; and Mr. FROST. Mr. Speaker, I yield my- a direct contradiction to what is in they need an advisor who will put the work- self such time as I may consume. that major bill that the majority is er’s or investor’s interests firs,t above profit. Consider this following example: two mu- We have had a very nice kind of tech- putting forward. tual funds, each posting annual gains of 12 nical discussion by the gentleman on They claim this is a compromise be- percent consistently for 30 years. One fund the other side, but this is a very simple tween the two committees, the Com- has an expense fee of 1 percent, the other an issue. The question is, which side are mittee on Ways and Means and the expense fee of 2 percent. If you invested you on? Which side are they on? Which Committee on Education. The only $10,000 in each fund, the fund with the lower side are we on? They are with the top thing being compromised here is the expense fee at the end of 30 years would earn executives. We are with the employees. retirement security of our working $229,000, but the one with the higher expense I would like to quote from an article men and women. fee of 2 percent would have only $174,000. The This bill hurts employees with re- mutual fund would pocket the difference of in today’s New York Times on the $55,000. front page. It says: In Enron’s Wake, spect to the advice situation. A year Obviously, there may be little incentive for Pension Measure Offers Loopholes. Ex- ago, my amendment was the only the advisor connected to the mutual fund to perts Say House Bill Could Allow Com- amendment on this floor that talked highlight the significance of this conflict, of panies to Favor Highly Paid Employ- about having no conflicted advice. The his or her potential gain in steering someone ees. majority would not let it on the floor, to the higher fee investment. Why should we It goes on: would not let it come to a vote, and allow such a conflict of interest to exist they passed a bill that went through when it is not necessary? ‘‘Some legal experts and pension Perhaps that is why the fund industry is rights advocates say the first of the and allowed for conflicted advice. lobbying so hard for this bill, but workers post-Enron pension measures to reach Again we see a bill here saying, gee, and retirees are not asking for its passage. the House floor actually opens up fresh as long as we tell you we are con- These hard-working people, like other inves- loopholes. Some of the bill’s provisions flicted, as long as we tell you we might tors, need and want good, sound advice; but would lead companies to seek to reduce hurt you, we can have that kind of ad- allowing money managers to make rec- the number of employees covered by vice. Well, the fact of the matter is, ommendations that will generate more in- pensions and give proportionally larger Enron is coming between that; Ken come for themselvess hardly falls into the Lay and his chat room advice to em- realm of independent advice. pension benefits to the most highly In 1974, Congress chose to ban transactions paid executives.’’ ployees to hang on to the stock while between pension plans and parties with a he was dumping it off at a profit has b 1100 conflict of interest, except under very nar- come in between that. We have had in- row circumstsances; and they did that for a Which side are we on? We are with vestigations in the industry which simple reason. There is too great a danger the employees. Which side are they on? every day reveal new conflicts, new that a party with a conflict of interest will They are with the highly paid execu- scandals, more losses for working peo- act in its own best interests rather than ex- tives. ple. clusively for the benefit of the workers. That 1 concern is not less valid today. Mr. Speaker, I yield 2 ⁄2 minutes to Mr. Speaker, I will include my re- the gentleman from Massachusetts Studies by the financial industry itself marks from the CONGRESSIONAL RECORD have found broker conflicts have harmed ad- (Mr. TIERNEY). from last year for the record, because vice received by individuals, audit conflicts (Mr. TIERNEY asked and was given they are still pertinent. have undercut the value of audits on finan- permission to revise and extend his re- We only have to look at a recent cial firms, analyst reports have shown sig- marks, and include extraneous mate- newspaper headline from the Wash- nificant evidence of bias in comparing rat- rial.) ington Post, April 9: ‘‘Merrill Lynch e- ings. The law, ERISA, was designed to pro- Mr. TIERNEY. Mr. Speaker, I thank mail shows firm pushed bad invest- tect against just these types of issues. the gentleman from Texas for yielding ments on client, chief New York pros- Our shared goal should be to increase ac- me time. cess to investment advice for individual ac- ecutor says.’’ count plan participants. We need not oblit- The gentleman spoke on the other The fact of the matter is, Mr. Speak- erate long-standing protections for plan par- side for a minute and wanted to talk er, the industry is admitting they are ticipants in order to do that. Surveys show about politics and education. Well, the totally conflicted. The U.S. Attorney’s that the most important reason advice may politics of this rule are very simple. Office and the New York State Attor- not now be offered is that employers have April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1211 fears that they may be held liable for advice we are trying to encourage more in- gard to pension whenever I can, but gone bad. The remedy for that, and it is in vestment advice in the marketplace, now they put together this bill that the bill, is that Congress should encourage not less, and the fact is that if you do falls woefully short. more employers to provide independent ad- not allow those who sell products from All I can ask of my colleagues is take vice by addressing employer liability. It the side of employees. Pass the Demo- should clarify that an employer would not be offering advice, with protections for liable for specific advice if it undertook due the employee as we have in the under- cratic alternative. diligence selecting and monitorinng the ad- lying bill, we will get very little new Mr. LINDER. Mr. Speaker, I am vice provided. It is as simple as that. There advice into the marketplace. pleased to yield 3 minutes to the gen- is no need for conflicted advice. That is not what employees want. In tleman from Ohio (Mr. PORTMAN). Many plans already provide for investment a recent poll, some 75 percent of em- Mr. PORTMAN. Mr. Speaker, I thank education. Many plans now provide inde- ployees said they need more invest- my friend from Georgia for yielding me pendent investment advice through financial ment advice. Well, why should we not time. institutions and other firms without con- get this information out in the market- Mr. Speaker, again I would make the flict. Clarifying that employers would not be place for them? point what we are proposing here liable if they undertake due diligence with today, what is before us, is a substan- respect to advice providers would further in- We will have much more debate on crease advice as necessary. this when we get into the bill itself. tial change from current law, and it Disclosure alone will not mitigate poten- But the gentleman from Massachusetts does address the Enron issue. tial problems. The alternative bill in adding is a good friend, I know he means well, My friend across the aisle just said some protections and mandating a choice of but in the end I think the provisions that he believed that no one was look- alternative advice that is not conflicted is a we have in the underlying bill meet the ing after the employees’ interests over better ideaa, but the best idea remains a pro- test of fairness and safety for all of the last 20-some years as we put to- hibiting against conflicted advice. Congress, Americans and America’s employees. gether defined contribution plans. I by clearing up the liability issue, can en- Mr. FROST. Mr. Speaker, I yield 2 would respectfully disagree. courage independent, unbiased investment minutes to the gentleman from New I would ask him to ask the thousands advice that will better enable employers to of constituents in his district how they improve their long-term retirement security, Jersey (Mr. HOLT). while minimizing the potential for employee Mr. HOLT. Mr. Speaker, I thank the feel about it, maybe ask the 55 million dissatisfaction and possible litigation. This gentleman for yielding me time. Americans who currently have the ben- is what is in the best interests of the plan Mr. Speaker, the bill before us today efits of defined contribution plans. I participants and, in fact, the best interests might be called the ‘‘We Have Learned would ask him to go to some of the of the plan; and certainly is in the best inter- Nothing From Enron Yet Act.’’ The smaller businesses in his community ests of the hard-working people in my dis- first lesson of Enron is Enron is not that would never have offered a defined trict who need to know that their retirement alone. The problem is endemic in cor- benefit plan, never had one, who now is secure. porate America. offer a SEP or a simple plan or a 401(k) Mr. LINDER. Mr. Speaker, I yield 3 The retirement security of millions or a safe harbor 401(k) and are giving minutes to the gentleman from Ohio of Americans is at risk. For years, cor- people the ability to save for their own (Mr. BOEHNER). porations have moved more and more retirement. Mr. BOEHNER. Mr. Speaker, I thank toward defined contribution plans. In There are people who will retire my colleague for yielding me time. other words, the corporations took less today in my hometown of Cincinnati Mr. Speaker, I appreciate my good and less responsibility for their em- with hundreds of thousands of dollars friend from Massachusetts’ concern ployees’ retirement and no one was in their account, even with what the about his amendment that would seek looking after the employees’ interests. market has done in the last year, who to eliminate the ability of, frankly, Employees in many cases were denied turned a wrench their entire lives. some of the best advisers, some of the the opportunity to look after their own They were technicians or mechanics most successful companies in America, interests. They were denied informa- and never had access to any kind of re- from offering investment advice to tion about their company and the ac- tirement savings. These are some of their employees. tions of their executives. the 55 million people who now have a The fact is today we have some 50 Now, the bill before us today fails to defined contribution plan. million Americans who have self-di- give employees notice when executives We do not want, in response to the rected investment accounts as part of are dumping company stock. It denies Enron situation, to have those plans their pension and retirement package employees a crucial voice on pension and those people lose their promise, from their employer. Only about 16 per- boards. It limits the ability of employ- lose their dreams, lose their ability to cent of these people have any access to ees to collect damages resulting from do that. I think we have achieved the professional investment advice. misconduct of corporate officials. It al- right balance here. One of the things we have all seen lows executives to continue to have Frankly, the business community is with the collapse of the high-tech sec- their savings set aside and protected if not wild about this bill. Why? Because tor, with the Enron collapse, and about a company fails, while rank-and-file it does not let the employer tie people the dramatic fall in the value of a num- employees are left to fend for them- to the company stock the way they ber of stocks that we have seen over selves in line in bankruptcy pro- currently can. the last several years, those employees ceedings. Now, my friend said he wanted to go today need more investment advice to Perhaps most important, the bill to 1 year instead of 3 years. Well, it is help them make better decisions for leaves employees’ money locked into unlimited years now. So we could de- their own retirement security. company stock. Think Enron here. bate whether it is 1 year or 2 years or The two provisions in the underlying Locked into company stock for long 3 years or 4 years or 5 years. That is as bill today, the Investment Advice Act periods against their will. The bill ties compared to saying to one your con- that this House passed with all the Re- employees’ hands from diversifying, stituents, you have to keep in this publicans and 64 Democrats last No- even if they want to, for a 5-year period stock until you retire, which could be vember is one of those provisions, and or a 3-year rolling period after that, 40 years, or 45 years, or even 50 years. the provision from the gentleman from and corporate executives will be al- So, I think we are talking about Ohio (Mr. PORTMAN) in the Committee lowed to unload their stock options. some relatively small differences be- on Ways and Means’ section of the bill I asked the Committee on Rules to tween where you would like to end up that would provide a tax credit, the allow a vote on my amendment that and what you proposed to the Com- ability to use pre-tax dollars to have would allow employees to be vested in mittee on Rules last night and where their own investment, I think com- their 401(k) plans after 1 year. I we are today. plement each other to the point where thought that was a fairly generous pe- I would again just urge those who are we will have much more investment riod, instead of 5 years. The Committee listening to this debate, let us be very advice out in the marketplace. on Rules would not even allow a vote clear: There are substantial differences But to say that people who sell prod- on that. between current practice and what we ucts cannot offer investment advice I Now, I have sided with the Repub- are proposing, and these do not just re- think is wrong-headed. Why? Because lican majority on provisions with re- late to the Enron situation. It relates H1212 CONGRESSIONAL RECORD — HOUSE April 11, 2002 to millions of Americans who have the benefiting from giving people advice Mr. LINDER. Mr. Speaker, I am benefit of getting a match from their that benefits you more than it does happy to yield 1 minute to the gen- employer in employer stock. We want them. tleman from Ohio (Mr. PORTMAN). to continue that. Mr. Speaker, I would urge support of Mr. PORTMAN. Mr. Speaker, I know What the employer community tells the substitute. at the end of the day, some of my col- us is they are not wild about our bill, Mr. LINDER. Mr. Speaker, I yield 2 leagues have some substantive dif- but they certainly do not want it to go minutes to the gentleman from Ohio ferences with the legislation and they down to 1 year because they like the (Mr. PORTMAN). also have some politics that they idea of giving corporate stock, in part Mr. PORTMAN. Mr. Speaker, I thank would like to talk about; and I would because they want the employee to feel the gentleman for yielding. love to address the gentleman from some stake in the company. They like Mr. Speaker, just to respond briefly, Texas’s quote from the New York the idea of employee ownership and if the gentleman would like to take the Times, because there are some other employee empowerment through the mike, that is fine, but he said somehow quotes from that story that are more company. I was not describing the bill that is be- accurate. This is not about us versus We are, frankly, not going to permit fore us. I would like him to tell me one them; this is not about the big guy them to have the kind of ownership thing that I said about the bill that is versus the little guy. This is about not in the legislation. that many of them would like to have something that will help the workers Mr. ANDREWS. Mr. Speaker, will the over a longer period of time. We are in this country. But I do believe that it gentleman yield? doing it for a simple reason, because we Mr. PORTMAN. I yield to the gen- would be in the interests of this House believe employees ought to have more tleman from New Jersey. to stick to the facts, and that is what choice. Again, we combined that with Mr. ANDREWS. Mr. Speaker, I would I have tried to do. information, including notice periods ask the gentleman to tell me, if your Mr. ANDREWS. Mr. Speaker, will the that are not there now, and better edu- bill became law tomorrow, if an em- gentleman yield for a question about cation. ployee had stock in a 401(k) plan that the facts? Mr. FROST. Mr. Speaker, I yield 2 was employer-matched, how many Mr. PORTMAN. I would be pleased to minutes to the gentleman from New years would the employee have to wait yield to the gentleman from New Jer- Jersey, Mr. ANDREWS. before they could sell the stock? sey. (Mr. ANDREWS asked and was given Mr. PORTMAN. Mr. Speaker, re- Mr. ANDREWS. Mr. Speaker, I think permission to revise and extend his re- claiming my time, my colleague just I just heard the gentleman say that if marks.) stood before the well of the House and the majority’s bill became law tomor- Mr. ANDREWS. Mr. Speaker, the told our colleagues and the American row, an employee would have to wait tragedy that affected the Enron pen- people, to the extent they are listen- for 5 years before he or she could divest sioners is a story about power and con- ing, that an employee would have to themselves of all of the stock; is that flict of interest. People with a lot of wait 5, 6 or 7 years holding on to its correct? power and influence and a conflict of stock, while other people could dump Mr. PORTMAN. Mr. Speaker, 20 per- interest took advantage of people with the stock. cent the first year, 20 percent the sec- very little power and influence, and ond year, 20 percent the third year, 20 those people lost just about everything b 1115 percent the fourth year, 20 percent the they had. I do not know what he is talking fifth year. I wish that the legislation that my about. In this legislation, it says that Mr. ANDREWS. Mr. Speaker, if the friend from Cincinnati described was you have to hold the stock, if the em- gentleman would yield, so before they on the floor today, but it is not. The ployer requires it, for a period of 3 could divest themselves of all the legislation the majority is addressing years as compared to an unlimited stock, they would have to wait for 5 on the floor today I think fails to solve time now. That is the difference. Let years; is that correct? the problems that exist in American me finish and tell the gentleman what Mr. PORTMAN. That is correct. Re- pensions plans in three very important is in the bill, because this legislation claiming my time, does the gentleman ways. came out of the gentleman’s com- disagree with that provision? First of all, our substitute would give mittee and my committee. I assume Mr. ANDREWS. I do indeed. employees real power to have a say in the gentleman has read it, but the gen- Mr. FROST. Mr. Speaker, I yield 2 how pension plans, filled with their tleman from Maryland (Mr. CARDIN) minutes to the gentleman from New money, are managed. Our bill would and I put together this part of the bill, York (Mr. OWENS). call for these employees to have a seat, and I will just tell the gentleman what (Mr. OWENS asked and was given to have a say in how the plans are is in the legislation. permission to revise and extend his re- managed. The majority plan does not. When the legislation goes into effect, marks.) Our bill would say that once money we were very careful not to have a Mr. OWENS. Mr. Speaker, the high is in your account, it is your money. If dumping of stock on to the market, school sophomores of America are dis- the employer can put stock into your which is going to hurt not just the gusted with this conversation, I am 401(k) plan and receive a deduction be- American consumer and our economy, certain. I am sure they are asking cause it is treated as compensation but those very employees who care themselves why the Members of the paid to you, then it should be com- about having the corporate stock con- House of Representatives and the other pensation. It should be yours to do tinue to have the value that it de- people who are elected to protect their with, whatever you please. serves. If we allowed immediately for rights allow this situation to exist for The gentleman says that there is everyone who has corporate stock in so long; but they are certainly not very little difference between the America in their 401(k) plan to unload happy with the majority party stand- Democratic and Republican plans. I that stock, it would be detrimental. So ing up to applaud themselves for tak- would respectfully disagree. Under the we say it should be done over a 5-year ing a few significant steps toward majority’s plan it could be 3, 4, 5, 6, 7 period initially, with 20 percent per greater financial security with respect years that an employee would have to year, doing the math. That is, after 5 to the pension funds of the employees. sit there and watch the value of their years one could, if one chose, have all We have taken a few steps. Why not stock plummet and not be able to sell of the stock out of their account. Then maximum reasonable security for all of the stock or do anything about it, once that is completed, that is just the the people who have their money in while their bosses and superiors could first 5 years after the legislation, then these pension plans? Why not go fur- drop their stock in a minute. That is the 3-year period begins. ther than the plan that the majority wrong. So that is how the legislation was has? Does it cost the taxpayer any Finally, there is the issue of conflict drafted. I see the gentleman from money to do a little more as reflected of interest. We are legalizing in this Maryland (Mr. CARDIN) has now come by the Miller substitute? bill today, we are legitimizing in the into the Chamber. That is how we Mr. Speaker, I rise in support of the majority’s bill today, the practice of drafted it. Miller substitute. What would it cost April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1213 to have immediate disclosure whenever doers and takes a variety of actions to protect There was no objection. a top executive sells a large amount of employees and shareholders against future Mr. LINDER. Mr. Speaker, I yield stock? Would that cost the taxpayer acts of corporate fraud. Among other things, it myself the remaining time. any money? Would it really cost us any creates a new 10-year felony for defrauding I urge my colleagues to support the money to have greater checks and bal- shareholders of publicly-traded companies; previous question and the rule so that ances? Would it cost us any money to clarifies and strengthens current criminal laws we can move on with debate on this im- have more democracy where the em- relating to the destruction or fabrication of evi- portant bill. ployees have a representative actually dence, including the shredding of financial and The amendment previously referred watching their funds sitting in a high audit records; provides whistle-blower protec- to by the gentleman from Texas (Mr. place where the decisions are being tion to employees of publicly-traded compa- FROST) is as follows: made? The people in Europe and the nies; and establishes a new bureau within the Strike all after the resolved clause and in- other industrialized democracies do Department of Justice to prosecute crimes in- sert: not think it is such a great problem to volving securities and pension fraud. That upon the adoption of this resolution have an employee representative sit- My amendment would also give former em- it shall be in order without intervention of ting on the board. Why not maximum ployees enhanced priority in bankruptcy to any point of order to consider in the House protect their lost pensions. If we defeat the the bill (H.R. 3762) to amend title I of the reasonable security? Why not go one Employee Retirement Income Security Act step further? previous question, we can bring these meas- ures up for a vote immediately, and take a of 1974 and the Internal Revenue Code of 1986 Everybody knows from past scandals, to provide additional protections to partici- savings and loans swindles, the bigger strong stand against white collar fraud and in pants and beneficiaries in individual account the party is, the more corruption there favor of working Americans. plans from excessive investment in employer is going to be. We have enough history In the wake of the Enron debacle, there can securities and to promote the provision of re- as a human race to know that when- be no question that the time is ripe to protect tirement investment advice to workers man- ever we have large amounts of money American investors and employees. The aging their retirement income assets, and to or large amounts of power, corruption Enron case has established beyond a shadow amend the Securities Exchange Act of 1934 to is inevitable. Human beings are going of a doubt that white collar fraud can be in- prohibit insider trades during any suspension credibly damaging, in many cases wiping of the ability of plan participants or bene- to behave that way. That is why the ficiaries to direct investment away from eq- system of checks and balances exists. away life savings and devastate entire com- munities. There can be no conceivable jus- uity securities of the plan sponsor. The bill Let us go all the way with maximum shall be considered as read for amendment. reasonable security. tification for shielding white collar criminals In lieu of the amendment recommended by Mr. LINDER. Mr. Speaker, I reserve from criminal prosecution for their outrageous the Committee on Education and the Work- the balance of my time. behavior. force now printed in the bill, the amendment Mr. FROST. Mr. Speaker, I yield 30 This is why it is so important that we act in the nature of a substitute printed in part seconds to the gentlewoman from today to prevent corporate wrongdoers from A of the report of the Committee on Rules Texas (Ms. JACKSON-LEE). preying on innocent investors and employees. accompanying this resolution shall be con- (Ms. JACKSON-LEE of Texas asked Vote no to defeat the previous question, and sidered as adopted. All points of order and was given permission to revise and we can do just that. against the bill, as amended, are waived. The Mr. LINDER. Mr. Speaker, I reserve previous question shall be considered as or- extend her remarks.) dered on the bill, as amended, and on any Ms. JACKSON-LEE of Texas. Mr. the balance of my time. Mr. FROST. Mr. Speaker, I yield my- further amendment thereto to final passage Speaker, in my district in Houston, the without intervening motion except: (1) two ex-Enron employees’ lives are in sham- self the remaining time. Mr. Speaker, again, I urge Members hours of debate on the bill, as amended, bles; and every time I go home, they to oppose the previous question. If the equally divided among and controlled by the ask, what? why? What is the Congress chairmen and ranking minority members of previous question is defeated, I will going to do? the Committees on Education and the Work- Today we have an opportunity to act offer an amendment to the rule that force and Ways and Means; (2) the further and we are not. I ask that we defeat will allow the Conyers enforcement amendment specified in section 2, if offered this rule. I ask my colleagues to vote amendment to be offered. by Representative Conyers of Michigan or Mr. Speaker, this amendment will ‘‘no’’ on the previous question. Why? his designee, which shall be in order without gave the base bill much-needed lan- intervention of any point of order, shall be Because the majority refused to allow guage to prosecute the corporations considered as read, and shall be separately an amendment that I cosponsored with found guilty of pension fraud. It will debatable for 30 minutes equally divided and the gentleman from Michigan (Mr. create a new bureau within the Justice controlled by the proponent and an oppo- CONYERS), the Corporate and Criminal Department to prosecute crimes in- nent; (3) the further amendment printed in Fraud Accountability Act, which gives volving pension fraud and create a new part B of the report of the Committee on Rules, if offered by Representative Miller of a 10-year felony for defrauding share- 10-year felony for defrauding share- holders of publicly-held companies. California or Representative Rangel of New holders of publicly traded companies. York or a designee, which shall be in order There is a penalty for destruction of Mr. Speaker, no one here today op- evidence, it provides whistleblower without intervention of any point of order, poses giving employees a greater role shall be considered as read, and shall be sep- protection, and a bureau in the DOJ in managing and understanding their arately debatable for one hour equally di- that prosecutes such acts. Why can we investments. That part of the bill we vided and controlled by the proponent and an not do something real for these people all support. However, it is absolutely opponent; and (4) one motion to recommit whose lives are now destroyed? critical that we send a message to with or without instructions. I rise to urge the Members to defeat the those companies that might be tempt- SEC. 2. The amendment offered by Rep- previous question so that the House can con- ed to follow the practices of Enron. resentative Conyers referred to in the first section of this resolution is as follows: sider my amendment to toughen criminal pen- They need to realize up front that if alties against white collar fraud and prevent Add at the end the following new title (and they do that, they will be severely pun- amend the table of contents accordingly): future Enrons. ished. The Conyers amendment will do I’m amazed that after all of the outrageous just that. TITLE V—CORPORATE AND CRIMINAL abuses we have learned about in the Enron Vote ‘‘no’’ on the previous question FRAUD ACCOUNTABILITY case that the Leadership would refuse to per- so that we can add some teeth to this SEC. 501. CRIMINAL PENALTIES FOR ALTERING mit this body to even vote on these provisions. bill and really guarantee that those DOCUMENTS. You would think that after the greatest white (a) IN GENERAL.—Chapter 73 of title 18, who defraud their employees will pay a United States Code, is amended by adding at collar fraud in history, which cost tens of thou- severe price. the end the following: sands of hard working Americans their jobs, Mr. Speaker, I ask unanimous con- ‘‘§ 1519. Destruction, alteration, or falsifica- their retirement, and their savings, that we sent to insert the text of the amend- tion of records in Federal investigations would take action to prevent future Enrons. ment and extraneous materials imme- and bankruptcy But the base bill does not provide a single in- diately prior to the vote on the pre- ‘‘Whoever knowingly alters, destroys, mu- creased criminal penalty to respond to this vious question. tilates, conceals, covers up, falsifies, or abuse. The SPEAKER pro tempore (Mr. makes a false entry in any record, document, My amendment would impose tough crimi- LAHOOD). Is there objection to the re- or tangible object with the intent to impede, nal and civil penalties on corporate wrong- quest of the gentleman from Texas? obstruct, or influence the investigation or H1214 CONGRESSIONAL RECORD — HOUSE April 11, 2002 proper administration of any matter within by this Act, are sufficient to deter and pun- ‘‘§ 1514A. Civil action to protect against retal- the jurisdiction of any department or agency ish that activity; iation in fraud cases of the United States or any case filed under (3) the guideline offense levels and en- ‘‘(a) WHISTLEBLOWER PROTECTION FOR EM- title 11, or in relation to or contemplation of hancements under United States Sentencing PLOYEES OF PUBLICLY TRADED COMPANIES.— any such matter or case, shall be fined under Guideline 2B1.1 (as in effect on the date of No company with securities registered under this title, imprisoned not more than 5 years, enactment of this Act) are sufficient for a section 6 of the Securities Act of 1933 (15 or both. fraud offense when the number of victims ad- U.S.C. 77f) or section 12 or 15(d) of the Secu- ‘‘§ 1520. Destruction of corporate audit versely involved is significantly greater than rities Exchange Act of 1934 (15 U.S.C. 78l, records 50; and 78o(d)), or any officer, employee, contractor, (4) a specific offense characteristic enhanc- subcontractor, or agent of such company, ‘‘(a) Any accountant who conducts an ing sentencing is provided under United audit of an issuer of securities to which sec- may discharge, demote, suspend, threaten, States Sentencing Guideline 2B1.1 (as in ef- harass, or in any other manner discriminate tion 10A(a) of the Securities Exchange Act of fect on the date of enactment of this Act) for 1934 (15 U.S.C. 78j–1(a)) applies, shall main- against an employee in the terms and condi- a fraud offense that endangers the solvency tions of employment because of any lawful tain all documents (including electronic doc- or financial security of 1 or more victims. uments) sent, received, or created in connec- act done by the employee— SEC. 504. DEBTS NONDISCHARGEABLE IF IN- ‘‘(1) to provide information, cause informa- tion with any audit, review, or other engage- CURRED IN VIOLATION OF SECURI- ment for such issuer for a period of 5 years TIES FRAUD LAWS. tion to be provided, or otherwise assist in an from the end of the fiscal period in which the Section 523(a) of title 11, United States investigation regarding any conduct which audit, review, or other engagement was con- Code, is amended— the employee reasonably believes constitutes cluded. (1) in paragraph (17), by striking ‘‘or’’ after a violation of section 1341, 1343, 1344, or 1348, ‘‘(b) Whoever knowingly and willfully vio- the semicolon; any rule or regulation of the Securities and lates subsection (a) shall be fined under this (2) in paragraph (18), by striking the period Exchange Commission, or any provision of title, imprisoned not more than 5 years, or at the end and inserting ‘‘; or’’; and Federal law relating to fraud against share- both. (3) by adding at the end, the following: holders, when the information or assistance ‘‘(c) Nothing in this section shall be ‘‘(19) that— is provided to or the investigation is con- deemed to diminish or relieve any person of ‘‘(A) arises under a claim relating to— ducted by— any other duty or obligation, imposed by ‘‘(i) the violation of any of the Federal se- ‘‘(A) a Federal regulatory or law enforce- Federal or State law or regulation, to main- curities laws (as that term is defined in sec- ment agency; tain, or refrain from destroying, any docu- tion 3(a)(47) of the Securities Exchange Act ‘‘(B) any Member of Congress or any com- ment.’’. of 1934 (15 U.S.C. 78c(a)(47)), any State securi- mittee of Congress; or (b) CLERICAL AMENDMENT.—The table of ties laws, or any regulations or orders issued ‘‘(C) a person with supervisory authority sections at the beginning of chapter 73 of under such Federal or State securities laws; over the employee (or such other person title 18, United States Code, is amended by or working for the employer who has the au- adding at the end the following new items: ‘‘(ii) common law fraud, deceit, or manipu- thority to investigate, discover, or terminate ‘‘1519. Destruction, alteration, or falsifica- lation in connection with the purchase or misconduct); or tion of records in Federal inves- sale of any security; and ‘‘(2) to file, cause to be filed, testify, par- tigations and bankruptcy. ‘‘(B) results, in relation to any claim de- ticipate in, or otherwise assist in a pro- ‘‘1520. Destruction of corporate audit scribed in subparagraph (A), from— ceeding filed or about to be filed (with any records.’’. ‘‘(i) any judgment, order, consent order, or knowledge of the employer) relating to an decree entered in any Federal or State judi- alleged violation of section 1341, 1343, 1344, or SEC. 502. CRIMINAL PENALTIES FOR DEFRAUD- 1348, any rule or regulation of the Securities ING SHAREHOLDERS OF PUBLICLY cial or administrative proceeding; TRADED COMPANIES. ‘‘(ii) any settlement agreement entered and Exchange Commission, or any provision of Federal law relating to fraud against (a) IN GENERAL.—Chapter 63 of title 18, into by the debtor; or United States Code, is amended by adding at ‘‘(iii) any court or administrative order for shareholders. the end the following: any damages, fine, penalty, citation, ‘‘(b) ELECTION OF ACTION.— restitutionary payment, disgorgement pay- ‘‘(1) IN GENERAL.—A person who alleges dis- ‘‘§ 1348. Securities fraud ment, attorney fee, cost, or other payment charge or other discrimination by any person ‘‘Whoever knowingly executes, or attempts owed by the debtor.’’. in violation of subsection (a) may seek relief to execute, a scheme or artifice— SEC. 505. INCREASED PROTECTION OF EMPLOY- under subsection (c), by— ‘‘(1) to defraud any person in connection EES WAGES UNDER CHAPTER 11 ‘‘(A) filing a complaint with the Secretary with any security registered under section 12 PROCEEDINGS. of Labor; or or 15(d) of the Securities Exchange Act of Section 507(a) of title 11, United States ‘‘(B) bringing an action at law or equity in 1934 (15 U.S.C. 78l, 78o(d)) or section 6 of the Code, is amended— the appropriate district court of the United Securities Act of 1933 (15 U.S.C. 77f); or (1) in paragraph (3) by striking ‘‘90’’ and in- States. ‘‘(2) to obtain, by means of false or fraudu- serting ‘‘180’’, and ‘‘(2) PROCEDURE.— lent pretenses, representations, or promises, (2) in paragraphs (3) and (4) by striking ‘‘(A) IN GENERAL.—An action under para- any money or property in connection with ‘‘$4,000’’ each place it appears and inserting graph (1)(A) shall be governed under the the purchase or sale of any security reg- ‘‘$10,000’’. rules and procedures set forth in section istered under section 12 or 15(d) of the Secu- SEC. 506. STATUTE OF LIMITATIONS FOR SECURI- 42121(b) of title 49, United States Code. rities Exchange Act of 1934 (15 U.S.C. 78l, TIES FRAUD. ‘‘(B) EXCEPTION.—Notification made under 78o(d)) or section 6 of the Securities Act of (a) IN GENERAL.—Section 1658 of title 28, section 42121(b)(1) of title 49, United States 1933 (15 U.S.C. 77f), United States Code, is amended— Code, shall be made to the person named in shall be fined under this title, or imprisoned (1) by inserting ‘‘(a)’’ before ‘‘Except’’; and the complaint and to the employer. not more than 10 years, or both.’’. (2) by adding at the end the following: ‘‘(C) BURDENS OF PROOF.—An action (b) CLERICAL AMENDMENT.—The table of ‘‘(b) Notwithstanding subsection (a), a pri- brought under paragraph (1)(B) shall be gov- sections at the beginning of chapter 63 of vate right of action that involves a claim of erned by the legal burdens of proof set forth title 18, United States Code, is amended by fraud, deceit, manipulation, or deliberate or in section 42121(b) of title 49, United States adding at the end the following new item: reckless disregard of a regulatory require- Code. ment concerning the securities laws, as de- ‘‘(D) STATUTE OF LIMITATIONS.—An action ‘‘1348. Securities fraud.’’. fined in section 3(a)(47) of the Securities Ex- under paragraph (1) shall be commenced not SEC. 503. REVIEW OF FEDERAL SENTENCING change Act of 1934 (15 U.S.C. 78c(a)(47)), may later than 180 days after the date on which GUIDELINES FOR OBSTRUCTION OF be brought not later than the earlier of— the violation occurs. JUSTICE AND EXTENSIVE CRIMINAL ‘‘(1) 5 years after the date on which the al- FRAUD. ‘‘(c) REMEDIES.— leged violation occurred; or Pursuant to section 994 of title 28, United ‘‘(1) IN GENERAL.—An employee prevailing ‘‘(2) 3 years after the date on which the al- States Code, and in accordance with this sec- in any action under subsection (b)(1) (A) or leged violation was discovered.’’. tion, the United States Sentencing Commis- (B) shall be entitled to all relief necessary to (b) EFFECTIVE DATE.—The limitations pe- sion shall review and amend, as appropriate, riod provided by section 1658(b) of title 28, make the employee whole. the Federal Sentencing Guidelines and re- United States Code, as added by this section, ‘‘(2) COMPENSATORY DAMAGES.—Relief for lated policy statements to ensure that— shall apply to all proceedings addressed by any action under paragraph (1) shall (1) the guideline offense levels and en- this section that are commenced on or after include— hancements for an obstruction of justice of- the date of enactment of this Act. ‘‘(A) reinstatement with the same senior- fense are adequate in cases where documents SEC. 507. PROTECTION FOR EMPLOYEES OF PUB- ity status that the employee would have had, or other physical evidence are actually de- LICLY TRADED COMPANIES WHO but for the discrimination; stroyed or fabricated; PROVIDE EVIDENCE OF FRAUD. ‘‘(B) 2 times the amount of back pay, with (2) the guideline offense levels and en- (a) IN GENERAL.—Chapter 73 of title 18, interest; and hancements for violations of section 1519 or United States Code, is amended by inserting ‘‘(C) compensation for any special damages 1520 of title 18, United States Code, as added after section 1514 the following: sustained as a result of the discrimination, April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1215 including litigation costs, expert witness ‘‘(i) identify possible criminal activity to Dreier Keller Rogers (KY) fees, and reasonable attorney fees. appropriate Federal, State, local, and foreign Duncan Kelly Rogers (MI) Dunn Kennedy (MN) Rohrabacher ‘‘(3) PUNITIVE DAMAGES.— law enforcement agencies; Ehlers Kerns Ros-Lehtinen ‘‘(A) IN GENERAL.—In a case in which the ‘‘(ii) support ongoing criminal pension and Ehrlich King (NY) Royce finder of fact determines that the protected securities fraud investigations; Emerson Kingston Ryun (KS) conduct of the employee under subsection (a) ‘‘(iii) determine emerging trends and meth- English Kirk Saxton involved a substantial risk to the health, ods in pension and securities fraud matters; Everett Knollenberg Schaffer safety, or welfare of shareholders of the em- and Ferguson Kolbe Schrock ployer or the public, the finder of fact may ‘‘(iv) support government initiatives Flake LaHood Sensenbrenner award punitive damages to the employee. against pension and securities fraud-related Fletcher Latham Shadegg Foley LaTourette Shaw ‘‘(B) FACTORS.—In determining the activities. Forbes Leach Shays amount, if any, to be awarded under this ‘‘(E) Furnish research, analytical, and in- Fossella Lewis (CA) Sherwood paragraph, the finder of fact shall take into formational services to financial institu- Frelinghuysen Lewis (KY) Shimkus account— tions, to appropriate Federal regulatory Gallegly Linder Shuster ‘‘(i) the significance of the information or agencies with regard to financial institu- Ganske LoBiondo Simmons assistance provided by the employee under tions, and to appropriate Federal, State, Gekas Lucas (OK) Simpson subsection (a) and the role of the employee local, and foreign law enforcement authori- Gibbons Manzullo Skeen Gilchrest McCrery Smith (MI) in advancing any investigation, proceeding, ties, in accordance with policies and guide- Gillmor McHugh Smith (NJ) congressional inquiry or action, or internal lines established by the Department of Jus- Gilman McInnis Smith (TX) remedial process, or in protecting the health, tice, in the interest of detection, prevention, Goode McKeon Souder safety, or welfare of shareholders of the em- and prosecution of pension and securities Goodlatte Mica Stearns ployer or of the public; fraud-related crimes. Goss Miller, Dan Stump ‘‘(ii) the nature and extent of both the ac- ‘‘(F) Establish and maintain a special unit Graham Miller, Gary Sullivan tual and potential discrimination to which dedicated to assisting Federal, State, local, Granger Miller, Jeff Sununu Graves Moran (KS) Sweeney the employee was subjected as a result of the and foreign law enforcement and regulatory Green (WI) Morella Tancredo protected conduct of the employee under authorities in combating pension and securi- Greenwood Myrick Tauzin subsection (a); and ties fraud. Grucci Nethercutt Taylor (NC) ‘‘(iii) the nature and extent of the risk to ‘‘(G) Such other duties and powers as the Gutknecht Ney Terry the health, safety, or welfare of shareholders Attorney General may delegate or prescribe. Hansen Northup Thomas or the public under subparagraph (A). ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.— Hart Norwood Thornberry Hastings (WA) Nussle Thune ‘‘(d) RIGHTS RETAINED BY EMPLOYEE.— There are authorized to be appropriated for Hayes Osborne Tiahrt ‘‘(1) OTHER REMEDIES UNAFFECTED.—Noth- the Retirement Security Fraud Bureau such Hayworth Ose Tiberi ing in this section shall be deemed to dimin- sums as may be necessary for fiscal years Hefley Otter Toomey ish the rights, privilege, or remedies of any 2003, 2004, 2005, and 2006.’’. Herger Oxley Upton employee under any Federal or State law, or (b) CLERICAL AMENDMENT.—The table of Hilleary Paul Vitter under any collective bargaining agreement. chapters at the beginning of part II of title Hobson Pence Walden ‘‘(2) VOLUNTARY ADJUDICATION.—No em- 28, United States Code, is amended by adding Hoekstra Peterson (PA) Walsh ployee may be compelled to adjudicate his or at the end the following new item: Horn Petri Wamp Hostettler Pickering Watkins (OK) her rights under this section pursuant to an ‘‘40A. Retirement Security Fraud Bu- Houghton Pitts Watts (OK) arbitration agreement.’’. reau.’’ ...... 600 Hulshof Platts Weldon (FL) (b) CLERICAL AMENDMENT.—The table of Mr. LINDER. Mr. Speaker, I move Hunter Pombo Weldon (PA) sections at the beginning of chapter 73 of the previous question on the resolu- Hyde Portman Weller Isakson Putnam Whitfield title 18, United States Code, is amended by tion. inserting after the item relating to section Issa Quinn Wicker 1514 the following new item: The SPEAKER pro tempore. The Istook Radanovich Wilson (NM) question is on ordering the previous Jenkins Ramstad Wilson (SC) ‘‘1514A. Civil action to protect against retal- Johnson (CT) Regula Wolf iation in fraud cases.’’. question. Johnson (IL) Rehberg Young (AK) The question was taken; and the SEC. 508. ESTABLISHMENT OF A RETIREMENT SE- Johnson, Sam Reynolds Young (FL) CURITY FRAUD BUREAU. Speaker pro tempore announced that Jones (NC) Riley (a) IN GENERAL.—Part II of title 28, United the ayes appeared to have it. NAYS—208 States Code, is amended by adding at the end Mr. FROST. Mr. Speaker, I object to Abercrombie Davis (CA) Hoyer the following: the vote on the ground that a quorum Ackerman Davis (FL) Inslee ‘‘CHAPTER 40A—RETIREMENT SECURITY is not present and make the point of Andrews Davis (IL) Israel FRAUD BUREAU order that a quorum is not present. Baca DeFazio Jackson (IL) Baird DeGette Jackson-Lee ‘‘§ 600. Retirement Security Fraud Bureau The SPEAKER pro tempore. Evi- Baldacci Delahunt (TX) ‘‘(a) IN GENERAL.—The Attorney General dently a quorum is not present. Baldwin DeLauro Jefferson shall establish a Retirement Security Fraud The Sergeant at Arms will notify ab- Barcia Deutsch John Barrett Dicks Johnson, E. B. Bureau which shall be a bureau in the De- sent Members. Becerra Dingell Jones (OH) partment of Justice. Pursuant to clause 9 of rule XX, the Bentsen Doggett Kanjorski ‘‘(b) DIRECTOR.— Chair will reduce to 5 minutes the min- Berkley Dooley Kaptur ‘‘(1) APPOINTMENT.—The head of the Retire- imum time for electronic voting, if or- Berman Doyle Kennedy (RI) ment Security Fraud Bureau shall be the Di- Berry Edwards Kildee rector who shall be appointed by the Attor- dered, on the question of agreeing to Bishop Engel Kilpatrick ney General. the resolution and, thereafter, the ap- Blagojevich Eshoo Kind (WI) proval of the Journal. Blumenauer Etheridge Kleczka ‘‘(2) DUTIES AND POWERS.—The duties and Bonior Evans Kucinich powers of the Director are as follows: The vote was taken by electronic de- Borski Farr LaFalce ‘‘(A) Advise and make recommendations on vice, and there were—yeas 218, nays Boswell Fattah Lampson matters relating to pension and securities 208, not voting 8, as follows: Boucher Filner Langevin fraud, in general, to the Assistant Attorney Boyd Frank Lantos [Roll No. 87] General of the Criminal Division. Brady (PA) Frost Larsen (WA) ‘‘(B) Maintain a government-wide data ac- YEAS—218 Brown (FL) Gephardt Larson (CT) Brown (OH) Gonzalez Lee Aderholt Bono Coble cess service, with access, in accordance with Capps Gordon Levin Akin Boozman Collins applicable legal requirements, to the fol- Capuano Green (TX) Lewis (GA) Armey Brady (TX) Combest lowing: Cardin Gutierrez Lipinski Bachus Brown (SC) Cooksey ‘‘(i) Information collected by the Depart- Carson (IN) Hall (OH) Lofgren Baker Bryant Cox Carson (OK) Hall (TX) Lowey ment of Justice, the Department of the Ballenger Burr Crane Clay Harman Lucas (KY) Treasury, and the Securities Exchange Com- Barr Burton Crenshaw Clayton Hastings (FL) Luther mission on pension and securities fraud mat- Bartlett Buyer Cubin Clement Hill Lynch Barton Callahan Culberson ters. Clyburn Hilliard Maloney (CT) Bass Calvert Cunningham ‘‘(ii) Other privately and publicly available Condit Hinchey Maloney (NY) Bereuter Camp Davis, Jo Ann information on pension and securities fraud- Conyers Hinojosa Markey Biggert Cannon Davis, Tom related activities. Costello Hoeffel Mascara Bilirakis Cantor Deal Coyne Holden Matheson ‘‘(C) Analyze and disseminate the available Blunt Capito DeLay Cramer Holt Matsui data in accordance with applicable legal re- Boehlert Castle DeMint Crowley Honda McCarthy (MO) quirements, policies, and guidelines estab- Boehner Chabot Diaz-Balart Cummings Hooley McCarthy (NY) lished by the Attorney General to— Bonilla Chambliss Doolittle H1216 CONGRESSIONAL RECORD — HOUSE April 11, 2002 McCollum Payne Smith (WA) Graves Manzullo Shadegg Payne Sawyer Thompson (CA) McDermott Pelosi Snyder Green (WI) McCrery Shaw Pelosi Schakowsky Thompson (MS) McGovern Peterson (MN) Solis Greenwood McHugh Shays Peterson (MN) Schiff Thurman McIntyre Phelps Spratt Grucci McInnis Sherwood Phelps Scott Tierney McKinney Pomeroy Stark Hansen McKeon Shimkus Pomeroy Serrano Turner McNulty Price (NC) Stenholm Hart Mica Shuster Price (NC) Sherman Udall (CO) Meehan Rahall Strickland Hastings (WA) Miller, Dan Simmons Rahall Shows Udall (NM) Meek (FL) Rangel Stupak Hayes Miller, Gary Simpson Rangel Skelton Velazquez Meeks (NY) Reyes Tanner Hayworth Miller, Jeff Skeen Reyes Slaughter Visclosky Menendez Rivers Tauscher Hefley Moran (KS) Smith (MI) Rivers Smith (WA) Waters Millender- Rodriguez Taylor (MS) Herger Morella Smith (NJ) Rodriguez Snyder Watson (CA) McDonald Roemer Thompson (CA) Hilleary Myrick Smith (TX) Roemer Solis Watt (NC) Miller, George Ross Thompson (MS) Hobson Nethercutt Souder Ross Spratt Waxman Mink Rothman Thurman Hoekstra Ney Stearns Rothman Stark Weiner Mollohan Roybal-Allard Tierney Horn Northup Stump Roybal-Allard Stenholm Wexler Moore Rush Turner Hostettler Norwood Sullivan Rush Strickland Woolsey Moran (VA) Sabo Udall (CO) Houghton Nussle Sununu Sabo Stupak Wu Murtha Sanchez Udall (NM) Hulshof Osborne Sweeney Sanchez Tanner Wynn Nadler Sanders Velazquez Hunter Ose Tancredo Sanders Tauscher Napolitano Sandlin Visclosky Hyde Oxley Tauzin Sandlin Taylor (MS) Neal Sawyer Waters Isakson Paul Taylor (NC) Oberstar Schakowsky Watson (CA) Issa Pence Terry NOT VOTING—10 Obey Schiff Watt (NC) Istook Peterson (PA) Thomas Allen Roukema Towns Olver Scott Waxman Jenkins Petri Thornberry Ford Royce Traficant Ortiz Serrano Weiner Johnson (CT) Pickering Thune Otter Ryan (WI) Owens Sherman Wexler Johnson (IL) Pitts Tiahrt Pryce (OH) Sessions Pallone Shows Woolsey Johnson, Sam Platts Tiberi Pascrell Skelton Wu Jones (NC) Pombo Toomey b 1159 Pastor Slaughter Wynn Keller Portman Upton Kelly Putnam Vitter So the resolution was agreed to. NOT VOTING—8 Kennedy (MN) Quinn Walden The result of the vote was announced Allen Roukema Towns Kerns Radanovich Walsh as above recorded. Ford Ryan (WI) Traficant King (NY) Ramstad Wamp Pryce (OH) Sessions Kingston Regula Watkins (OK) A motion to reconsider was laid on Kirk Rehberg Watts (OK) the table. b 1150 Knollenberg Reynolds Weldon (FL) Stated for: Kolbe Riley Weldon (PA) Mrs. NAPOLITANO, Ms. SANCHEZ LaHood Rogers (KY) Weller Mr. OTTER. Mr. Speaker, I was unavoidably and Messrs. ROTHMAN, SCOTT, Latham Rogers (MI) Whitfield detained for rollcall 88, on agreeing to House CROWLEY, ISRAEL, and TURNER LaTourette Rohrabacher Wicker Resolution 386. Had I been present I would Leach Ros-Lehtinen Wilson (NM) have voted ‘‘yea’’. changed their vote from ‘‘yea’’ to Lewis (CA) Ryun (KS) Wilson (SC) ‘‘nay.’’ Lewis (KY) Saxton Wolf f Mr. BAKER and Mr. LEWIS of Cali- Linder Schaffer Young (AK) LoBiondo Schrock Young (FL) THE JOURNAL fornia changed their vote from ‘‘nay’’ Lucas (OK) Sensenbrenner to ‘‘yea.’’ The SPEAKER pro tempore. Pursu- So the previous question was ordered. NOES—209 ant to clause 8, rule XX, the pending The result of the vote was announced Abercrombie Doggett Lampson business is the question of the Speak- as above recorded. Ackerman Dooley Langevin er’s approval of the Journal of the last The SPEAKER pro tempore (Mr. Andrews Doyle Lantos day’s proceedings. Baca Edwards Larsen (WA) LAHOOD). The question is on the resolu- Baird Engel Larson (CT) The question was taken; and the tion. Baldacci Eshoo Lee Speaker pro tempore announced that The question was taken; and the Baldwin Etheridge Levin the ayes appeared to have it. Barcia Evans Lewis (GA) Speaker pro tempore announced that Barrett Farr Lipinski RECORDED VOTE the ayes appeared to have it. Becerra Fattah Lofgren Mr. MCNULTY. Mr. Speaker, I de- RECORDED VOTE Bentsen Filner Lowey mand a recorded vote. Berkley Frank Lucas (KY) Mr. FROST. Mr. Speaker, I demand a Berman Frost Luther A recorded vote was ordered. recorded vote. Berry Gephardt Lynch The SPEAKER pro tempore. This A recorded vote was ordered. Bishop Gonzalez Maloney (CT) will be a 5-minute vote. Blagojevich Gordon Maloney (NY) The vote was taken by electronic de- The SPEAKER pro tempore. This Blumenauer Green (TX) Markey will be a 5-minute vote. Bonior Gutierrez Mascara vice, and there were—ayes 360, noes 56, The vote was taken by electronic de- Borski Gutknecht Matheson answered ‘‘present’’ 1, not voting 17, as vice, and there were—ayes 215, noes 209, Boswell Hall (OH) Matsui follows: Boucher Hall (TX) McCarthy (MO) not voting 10, as follows: Boyd Harman McCarthy (NY) [Roll No. 89] [Roll No. 88] Brady (PA) Hastings (FL) McCollum AYES—360 Brown (FL) Hill McDermott Abercrombie Boehlert Castle AYES—215 Brown (OH) Hilliard McGovern Ackerman Boehner Chabot Aderholt Calvert Duncan Capps Hinchey McIntyre Akin Bonilla Chambliss Akin Camp Dunn Capuano Hinojosa McKinney Andrews Bonior Clay Armey Cannon Ehlers Cardin Hoeffel McNulty Armey Bono Clayton Bachus Cantor Ehrlich Carson (IN) Holden Meehan Baca Boozman Clement Baker Capito Emerson Carson (OK) Holt Meek (FL) Bachus Borski Clyburn Ballenger Castle English Clay Honda Meeks (NY) Baker Boswell Coble Barr Chabot Everett Clayton Hooley Menendez Baldacci Boucher Collins Bartlett Chambliss Ferguson Clement Hoyer Millender- Baldwin Boyd Combest Barton Coble Flake Clyburn Inslee McDonald Barcia Brady (TX) Conyers Bass Collins Fletcher Condit Israel Miller, George Barr Brown (OH) Cooksey Bereuter Combest Foley Conyers Jackson (IL) Mink Barrett Brown (SC) Cox Biggert Cooksey Forbes Costello Jackson-Lee Mollohan Bartlett Bryant Coyne Bilirakis Cox Fossella Coyne (TX) Moore Barton Burr Cramer Blunt Crane Frelinghuysen Cramer Jefferson Moran (VA) Bass Burton Crenshaw Boehlert Crenshaw Gallegly Crowley John Murtha Becerra Buyer Crowley Boehner Cubin Ganske Cummings Johnson, E. B. Nadler Bentsen Callahan Cubin Bonilla Culberson Gekas Davis (CA) Jones (OH) Napolitano Bereuter Calvert Culberson Bono Cunningham Gibbons Davis (FL) Kanjorski Neal Berkley Camp Cummings Boozman Davis, Jo Ann Gilchrest Davis (IL) Kaptur Oberstar Berman Cannon Cunningham Brady (TX) Davis, Tom Gillmor DeFazio Kennedy (RI) Obey Biggert Cantor Davis (CA) Brown (SC) Deal Gilman DeGette Kildee Olver Bilirakis Capito Davis (FL) Bryant DeLay Goode Delahunt Kilpatrick Ortiz Bishop Capps Davis (IL) Burr DeMint Goodlatte DeLauro Kind (WI) Owens Blagojevich Cardin Davis, Jo Ann Burton Diaz-Balart Goss Deutsch Kleczka Pallone Blumenauer Carson (IN) Davis, Tom Buyer Doolittle Graham Dicks Kucinich Pascrell Blunt Carson (OK) Deal Callahan Dreier Granger Dingell LaFalce Pastor April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1217 DeGette Kelly Radanovich Delahunt Larsen (WA) Sabo H.R. 3762 DeLay Kennedy (MN) Rahall Dingell Larson (CT) Schakowsky Be it enacted by the Senate and House of Rep- Ramstad English Lewis (GA) Slaughter DeMint Kennedy (RI) resentatives of the United States of America in Deutsch Kerns Rangel Evans Lipinski Strickland Diaz-Balart Kildee Regula Filner LoBiondo Stupak Congress assembled, Dicks Kilpatrick Rehberg Green (TX) Matheson Tauscher SECTION 1. SHORT TITLE. Doggett Kind (WI) Reyes Gutierrez McDermott Taylor (MS) This Act may be cited as the ‘‘Pension Se- Dooley King (NY) Reynolds Gutknecht McGovern Thompson (CA) curity Act of 2002’’. Doolittle Kingston Rodriguez Hastings (FL) McNulty Thompson (MS) SEC. 2. IMPROVED DISCLOSURE OF PENSION Doyle Kleczka Roemer Hefley Menendez Udall (CO) BENEFIT INFORMATION BY INDI- Dreier Knollenberg Rogers (KY) Hilliard Moran (KS) Udall (NM) VIDUAL ACCOUNT PLANS. Rogers (MI) Hinchey Neal Visclosky Duncan Kolbe (a) PENSION BENEFIT STATEMENTS REQUIRED Dunn LaFalce Rohrabacher Holt Oberstar Waters ON PERIODIC BASIS.— Edwards LaHood Ros-Lehtinen Jackson-Lee Obey Weiner Ehlers Lampson Ross (TX) Olver Weller (1) IN GENERAL.—Subsection (a) of section Ehrlich Langevin Rothman Kucinich Peterson (MN) Wu 105 of the Employee Retirement Income Se- Emerson Lantos Roybal-Allard curity Act of 1974 (29 U.S.C. 1025) is amended Engel Latham Royce ANSWERED ‘‘PRESENT’’—1 by inserting ‘‘and, in the case of an applica- Eshoo LaTourette Rush Tancredo ble individual account plan, shall furnish at Etheridge Leach Ryun (KS) least quarterly to each plan participant (and NOT VOTING—17 Everett Lee Sanchez to each beneficiary with a right to direct in- Sanders Farr Levin Allen Meek (FL) Schaffer vestments),’’ after ‘‘who so requests in writ- Fattah Lewis (CA) Sandlin Ballenger Pryce (OH) Sessions ing,’’. Ferguson Lewis (KY) Sawyer Brown (FL) Riley Towns Flake Linder Saxton DeLauro Rivers Traficant (2) INFORMATION REQUIRED FROM INDIVIDUAL Fletcher Lofgren Schiff Ford Roukema Whitfield ACCOUNT PLANS.—Section 105 of such Act (29 Foley Lowey Schrock Kirk Ryan (WI) U.S.C. 1025) is amended by adding at the end Forbes Lucas (KY) Scott the following new subsection: Fossella Lucas (OK) Sensenbrenner b 1210 ‘‘(e)(1) The quarterly statements required Frank Luther Serrano So the Journal was approved. under subsection (a) shall include (together Frelinghuysen Lynch Shadegg with the information required in subsection Frost Maloney (CT) Shaw The result of the vote was announced (a)) the following: Gallegly Maloney (NY) Shays as above recorded. Ganske Manzullo Sherman ‘‘(A) the value of investments allocated to Gekas Markey Sherwood f the individual account, including the value Gephardt Mascara Shimkus of any assets held in the form of employer Gibbons Matsui Shows REMOVAL OF NAME OF MEMBER securities, without regard to whether such Gilchrest McCarthy (MO) Shuster AS COSPONSOR OF H.R. 3479 securities were contributed by the plan spon- Gillmor McCarthy (NY) Simmons sor or acquired at the direction of the plan Simpson Gilman McCollum Mr. KUCINICH. Mr. Speaker, I ask or of the participant or beneficiary, and an Gonzalez McCrery Skeen unanimous consent my name be re- Goode McHugh Skelton explanation of any limitations or restric- Goodlatte McInnis Smith (MI) moved as a cosponsor of H.R. 3479. tions on the right of the participant or bene- Gordon McIntyre Smith (NJ) The SPEAKER pro tempore (Mr. ficiary to direct an investment; and Goss McKeon Smith (TX) LATHAM). Is there objection to the re- ‘‘(B) an explanation, written in a manner Graham McKinney Smith (WA) quest of the gentleman from Ohio? calculated to be understood by the average Granger Meehan Snyder plan participant, of the importance, for the Graves Meeks (NY) Solis There was no objection. Souder long-term retirement security of partici- Green (WI) Mica f Greenwood Millender- Spratt pants and beneficiaries, of a well-balanced Grucci McDonald Stark GENERAL LEAVE and diversified investment portfolio, includ- Hall (OH) Miller, Dan Stearns ing a discussion of the risk of holding sub- Hall (TX) Miller, Gary Stenholm Mr. BOEHNER. Mr. Speaker, I ask stantial portions of a portfolio in the secu- Hansen Miller, George Stump unanimous consent that all Members rity of any one entity, such as employer se- Harman Miller, Jeff Sullivan curities.’’. Hart Mink Sununu may have 5 legislative days within (3) DEFINITION OF APPLICABLE INDIVIDUAL Hastings (WA) Mollohan Sweeney which to revise and extend their re- Hayes Moore Tanner marks on H.R. 3762. ACCOUNT PLAN.—Section 3 of such Act (29 Hayworth Moran (VA) Tauzin U.S.C. 1002) is amended by adding at the end Herger Morella Taylor (NC) The SPEAKER pro tempore. Is there the following new subsection: Hill Murtha Terry objection to the request of the gen- ‘‘(42) The term ‘applicable individual ac- Hilleary Myrick Thomas tleman from Ohio? count plan’ means any individual account Hinojosa Nadler Thornberry There was no objection. plan, except that such term does not include Hobson Napolitano Thune an employee stock ownership plan (within Hoeffel Nethercutt Thurman f the meaning of section 4975(e)(7) of the Inter- Hoekstra Ney Tiahrt nal Revenue Code of 1986) unless there are Holden Northup Tiberi PENSION SECURITY ACT OF 2002 Honda Norwood Tierney any contributions to such plan (or earnings Hooley Nussle Toomey Mr. BOEHNER. Mr. Speaker, pursu- thereunder) held within such plan that are Horn Ortiz Turner ant to House Resolution 386, I call up subject to subsection (k)(3) or (m)(2) of sec- Hostettler Osborne Upton the bill (H.R. 3762) to amend title 1 of tion 401 of the Internal Revenue Code of Velazquez Houghton Ose the Employee Retirement Income Se- 1986.’’. Hoyer Otter Vitter (b) CIVIL PENALTIES FOR FAILURE TO PRO- Hulshof Owens Walden curity Act of 1974 and the Internal Rev- VIDE QUARTERLY BENEFIT STATEMENTS.—Sec- Hunter Oxley Walsh enue Code of 1986 to provide additional tion 502 of such Act (29 U.S.C. 1132) is Wamp Hyde Pallone protections to participants and bene- amended— Inslee Pascrell Watkins (OK) Isakson Pastor Watson (CA) ficiaries in individual account plans (1) in subsection (a)(6), by striking ‘‘(5), or Israel Paul Watt (NC) from excessive investment in employer (6)’’ and inserting ‘‘(5), (6), or (7)’’; Issa Payne Watts (OK) securities and to promote the provision (2) by redesignating paragraph (7) of sub- Waxman Istook Pelosi of retirement investment advice to section (c) as paragraph (8); and Jackson (IL) Pence Weldon (FL) (3) by inserting after paragraph (6) of sub- Jefferson Peterson (PA) Weldon (PA) workers managing their retirement in- section (c) the following new paragraph: Jenkins Petri Wexler come assets, and to amend the Securi- ‘‘(7) The Secretary may assess a civil pen- Wicker John Phelps ties Exchange Act of 1934 to prohibit alty against any plan administrator of up to Johnson (CT) Pickering Wilson (NM) Johnson (IL) Pitts Wilson (SC) insider trades during any suspension of $1,000 a day from the date of such plan ad- Johnson, E. B. Platts Wolf the ability of plan participants or bene- ministrator’s failure or refusal to provide Johnson, Sam Pombo Woolsey ficiaries to direct investment away participants or beneficiaries with a benefit Jones (NC) Pomeroy Wynn statement on at least a quarterly basis in ac- Jones (OH) Portman Young (AK) from equity securities of the plan spon- cordance with section 105(a).’’. Kanjorski Price (NC) Young (FL) sor, and ask for its immediate consid- SEC. 3. PROTECTION FROM SUSPENSIONS, LIMI- Kaptur Putnam eration in the House. TATIONS, OR RESTRICTIONS ON Keller Quinn The Clerk read the title of the bill. ABILITY OF PARTICIPANT OR BENE- The SPEAKER pro tempore. Pursu- FICIARY TO DIRECT OR DIVERSIFY NOES—56 PLAN ASSETS. ant to House Resolution 386, the bill is Aderholt Brady (PA) Costello (a) IN GENERAL.—Section 101 of the Em- Baird Capuano Crane considered read for amendment. ployee Retirement Income Security Act of Berry Condit DeFazio The text of H.R. 3762 is as follows: 1974 (29 U.S.C. 1021) is amended— H1218 CONGRESSIONAL RECORD — HOUSE April 11, 2002 (1) by redesignating the second subsection (2) by adding at the end the following: sification of investments) is amended by add- (h) as subsection (j); and ‘‘Any limitation or restriction that may gov- ing at the end the following new clause: (2) by inserting after the first subsection ern the frequency of transfers between in- ‘‘(v) EXCEPTION.—This subparagraph shall (h) the following new subsection: vestment vehicles shall not be treated as a not apply to an applicable defined contribu- ‘‘(i) NOTICE OF SUSPENSION, LIMITATION, OR suspension referred to in subparagraph (B) to tion plan (as defined in paragraph RESTRICTION ON ABILITY OF PARTICIPANT OR the extent such limitation or restriction is (35)(B)(i)).’’. BENEFICIARY TO DIRECT INVESTMENTS IN INDI- disclosed to participants or beneficiaries SEC. 5. PROHIBITED TRANSACTION EXEMPTION VIDUAL ACCOUNT PLAN.— through the summary plan description or FOR THE PROVISION OF INVEST- ‘‘(1) IN GENERAL.—In the case of an applica- materials describing specific investment al- MENT ADVICE. ble individual account plan, the adminis- ternatives under the plan.’’. (a) AMENDMENTS TO THE EMPLOYEE RETIRE- trator shall notify participants and bene- SEC. 4. LIMITATIONS ON RESTRICTIONS OF IN- MENT INCOME SECURITY ACT OF 1974.— ficiaries of any action that would have the VESTMENTS IN EMPLOYER SECURI- (1) EXEMPTION FROM PROHIBITED TRANS- affect of suspending, limiting, or restricting TIES. ACTIONS.—Section 408(b) of the Employee Re- the ability of participants or beneficiaries to (a) AMENDMENTS TO THE EMPLOYEE RETIRE- tirement Income Security Act of 1974 (29 direct or diversify assets credited to their ac- MENT INCOME SECURITY ACT OF 1974.—Section U.S.C. 1108(b)) is amended by adding at the counts. 204 of the Employee Retirement Income Se- end the following new paragraph: ‘‘(2) NOTICE REQUIREMENTS.— curity Act of 1974 (29 U.S.C. 1107) is ‘‘(14)(A) Any transaction described in sub- ‘‘(A) IN GENERAL.—The notices described in amended— paragraph (B) in connection with the provi- paragraph (1) shall— (1) by redesignating subsection (j) as sub- sion of investment advice described in sec- ‘‘(i) be written in a manner calculated to section (k); and tion 3(21)(A)(ii), in any case in which— be understood by the average plan partici- (2) by inserting after subsection (i) the fol- ‘‘(i) the investment of assets of the plan is pant and shall include the reasons for the lowing new subsection: ‘‘(j)(1) An applicable individual account subject to the direction of plan participants suspension, limitation, or restriction, an plan may not acquire or hold any employer or beneficiaries, identification of the investments affected, securities with respect to which there is any ‘‘(ii) the advice is provided to the plan or a and the expected period of the suspension, restriction on divestment by a participant or participant or beneficiary of the plan by a fi- limitation, or restriction, and beneficiary on or after the date on which the duciary adviser in connection with any sale, ‘‘(ii) be furnished at least 30 days in ad- participant has completed 3 years of partici- acquisition, or holding of a security or other vance of the action suspending, limiting, or pation (as defined in subsection (b)(4)) under property for purposes of investment of plan restricting the ability of the participants or the plan or (if the plan so provides) 3 years assets, and beneficiaries to direct or diversify assets. of service (as defined in section 203(b)(2)) ‘‘(iii) the requirements of subsection (g) ‘‘(B) EXCEPTION TO 30-DAY NOTICE REQUIRE- with the employer. are met in connection with the provision of MENT.—In any case in which— ‘‘(2) For purposes of paragraph (1), the the advice. ‘‘(i) a fiduciary of the plan determines, in term ‘restriction on divestment’ includes— ‘‘(B) The transactions described in this writing, that a deferral of the suspension, ‘‘(A) any failure to offer at least 3 diversi- subparagraph are the following: limitation, or restriction would violate the fied investment options in which a partici- ‘‘(i) the provision of the advice to the plan, requirements of subparagraph (A) or (B) of pant or beneficiary may direct the proceeds participant, or beneficiary; section 404(a)(1), or from the divestment of employer securities, ‘‘(ii) the sale, acquisition, or holding of a ‘‘(ii) the inability to provide the 30-day ad- and security or other property (including any vance notice is due to circumstances beyond ‘‘(B) any restriction on the ability of a par- lending of money or other extension of credit the reasonable control of the plan adminis- ticipant or beneficiary to choose from all associated with the sale, acquisition, or trator, otherwise available investment options in holding of a security or other property) pur- subparagraph (A)(ii) shall not apply, and the which such proceeds may be so directed.’’. suant to the advice; and (b) AMENDMENTS TO THE INTERNAL REVENUE notice shall be furnished as soon as reason- ‘‘(iii) the direct or indirect receipt of fees CODE OF 1986.— ably possible under the circumstances. or other compensation by the fiduciary ad- (1) IN GENERAL.—Subsection (a) of section ‘‘(3) CHANGES IN EXPECTED PERIOD OF SUS- viser or an affiliate thereof (or any em- PENSION, LIMITATION, OR RESTRICTION.—If, fol- 401 of the Internal Revenue Code of 1986 (re- lating to requirements for qualification) is ployee, agent, or registered representative of lowing the furnishing of the notice pursuant the fiduciary adviser or affiliate) in connec- to this subsection, there is a change in the amended by inserting after paragraph (34) the following new paragraph: tion with the provision of the advice or in expected period of the suspension, limita- connection with a sale, acquisition, or hold- ‘‘(35) LIMITATIONS ON RESTRICTIONS UNDER tion, or restriction on the right of a partici- ing of a security or other property pursuant pant or beneficiary to direct or diversify as- APPLICABLE DEFINED CONTRIBUTION PLANS ON INVESTMENTS IN EMPLOYER SECURITIES.— to the advice.’’. sets, the administrator shall provide affected (2) REQUIREMENTS.—Section 408 of such Act participants and beneficiaries advance notice ‘‘(A) IN GENERAL.—A trust forming a part of an applicable defined contribution plan is amended further by adding at the end the of the change. Such notice shall meet the re- following new subsection: quirements of paragraph (2)(A)(i) in relation shall not constitute a qualified trust under this subsection if the plan acquires or holds ‘‘(g) REQUIREMENTS RELATING TO PROVISION to the extended suspension, limitation, or re- any employer securities with respect to OF INVESTMENT ADVICE BY FIDUCIARY ADVIS- striction.’’. ERS.— (b) CIVIL PENALTIES FOR FAILURE TO PRO- which there is any restriction on divestment ‘‘(1) IN GENERAL.—The requirements of this VIDE NOTICE.—Section 502 of such Act (as by a participant or beneficiary on or after subsection are met in connection with the amended by section 2(b)) is amended the date on which the participant has com- provision of investment advice referred to in further— pleted 3 years of participation (as defined in section 3(21)(A)(ii), provided to an employee (1) in subsection (a)(6), by striking ‘‘(6), or section 411(b)(4)) under the plan or (if the benefit plan or a participant or beneficiary (7)’’ and inserting ‘‘(6), (7), or (8)’’; plan so provides) 3 years of service (as de- of an employee benefit plan by a fiduciary (2) by redesignating paragraph (8) of sub- fined in section 411(a)(5)) with the employer. adviser with respect to the plan in connec- section (c) as paragraph (9); and ‘‘(B) DEFINITIONS.—For purposes of sub- tion with any sale, acquisition, or holding of (3) by inserting after paragraph (7) of sub- paragraph (A)— a security or other property for purposes of section (c) the following new paragraph: ‘‘(i) APPLICABLE DEFINED CONTRIBUTION ‘‘(8) The Secretary may assess a civil pen- PLAN.—The term ‘applicable defined con- investment of amounts held by the plan, if— alty against any person of up to $100 a day tribution plan’ means any defined contribu- ‘‘(A) in the case of the initial provision of from the date of the person’s failure or re- tion plan, except that such term does not in- the advice with regard to the security or fusal to provide notice to participants and clude an employee stock ownership plan (as other property by the fiduciary adviser to beneficiaries in accordance with section defined in section 4975(e)(7)) unless there are the plan, participant, or beneficiary, the fi- 101(i). For purposes of this paragraph, each any contributions to such plan (or earnings duciary adviser provides to the recipient of violation with respect to any single partici- thereunder) held within such plan that are the advice, at a time reasonably contem- pant or beneficiary, shall be treated as a sep- subject to subsections (k)(3) or (m)(2). poraneous with the initial provision of the arate violation.’’. ‘‘(ii) RESTRICTION ON DIVESTMENT.—The advice, a written notification (which may (c) INAPPLICABILITY OF RELIEF FROM FIDU- term ‘restriction on divestment’ includes— consist of notification by means of elec- CIARY LIABILITY DURING SUSPENSION OF ABIL- ‘‘(I) any failure to offer at least 3 diversi- tronic communication)— ITY OF PARTICIPANT OR BENEFICIARY TO DI- fied investment options in which a partici- ‘‘(i) of all fees or other compensation relat- RECT INVESTMENTS.—Section 404(c)(1) of such pant or beneficiary may direct the proceeds ing to the advice that the fiduciary adviser Act (29 U.S.C. 1104(c)(1)) is amended— from the divestment of employer securities, or any affiliate thereof is to receive (includ- (1) in subparagraph (B), by inserting before and ing compensation provided by any third the period the following: ‘‘, except that this ‘‘(II) any restriction on the ability of a par- party) in connection with the provision of subparagraph shall not apply for any period ticipant or beneficiary to choose from all the advice or in connection with the sale, ac- during which the ability of a participant or otherwise available investment options in quisition, or holding of the security or other beneficiary to direct the investment of as- which such proceeds may be so directed.’’. property, sets in his or her individual account is sus- (2) CONFORMING AMENDMENT.—Section ‘‘(ii) of any material affiliation or contrac- pended by a plan sponsor or fiduciary’’; and 401(a)(28)(B) of such Code (relating to diver- tual relationship of the fiduciary adviser or April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1219

affiliates thereof in the security or other fiduciary (other than a fiduciary adviser) (1) EXEMPTION FROM PROHIBITED TRANS- property, shall not be treated as failing to meet the re- ACTIONS.—Subsection (d) of section 4975 of ‘‘(iii) of any limitation placed on the scope quirements of this part solely by reason of the Internal Revenue Code of 1986 (relating of the investment advice to be provided by the provision of investment advice referred to exemptions from tax on prohibited trans- the fiduciary adviser with respect to any to in section 3(21)(A)(ii) (or solely by reason actions) is amended— such sale, acquisition, or holding of a secu- of contracting for or otherwise arranging for (A) in paragraph (14), by striking ‘‘or’’ at rity or other property, the provision of the advice), if— the end; ‘‘(iv) of the types of services provided by ‘‘(i) the advice is provided by a fiduciary (B) in paragraph (15), by striking the pe- the fiduciary advisor in connection with the adviser pursuant to an arrangement between riod at the end and inserting ‘‘;or’’; and provision of investment advice by the fidu- the plan sponsor or other fiduciary and the (C) by adding at the end the following new ciary adviser, and fiduciary adviser for the provision by the fi- paragraph: ‘‘(v) that the adviser is acting as a fidu- duciary adviser of investment advice re- ‘‘(16) any transaction described in sub- ciary of the plan in connection with the pro- ferred to in such section, section (f)(7)(A) in connection with the pro- vision of the advice, ‘‘(ii) the terms of the arrangement require vision of investment advice described in sub- ‘‘(B) the fiduciary adviser provides appro- compliance by the fiduciary adviser with the section (e)(3)(B), in any case in which— priate disclosure, in connection with the requirements of this subsection, and ‘‘(A) the investment of assets of the plan is sale, acquisition, or holding of the security ‘‘(iii) the terms of the arrangement include subject to the direction of plan participants or other property, in accordance with all ap- a written acknowledgment by the fiduciary or beneficiaries, plicable securities laws, adviser that the fiduciary adviser is a fidu- ‘‘(B) the advice is provided to the plan or a ‘‘(C) the sale, acquisition, or holding oc- ciary of the plan with respect to the provi- participant or beneficiary of the plan by a fi- curs solely at the direction of the recipient sion of the advice. duciary adviser in connection with any sale, of the advice, ‘‘(B) CONTINUED DUTY OF PRUDENT SELEC- acquisition, or holding of a security or other ‘‘(D) the compensation received by the fi- TION OF ADVISER AND PERIODIC REVIEW.—Noth- property for purposes of investment of plan duciary adviser and affiliates thereof in con- ing in subparagraph (A) shall be construed to assets, and nection with the sale, acquisition, or holding exempt a plan sponsor or other person who is ‘‘(C) the requirements of subsection of the security or other property is reason- a fiduciary from any requirement of this able, and part for the prudent selection and periodic (f)(7)(B) are met in connection with the pro- ‘‘(E) the terms of the sale, acquisition, or review of a fiduciary adviser with whom the vision of the advice.’’. holding of the security or other property are plan sponsor or other person enters into an (2) ALLOWED TRANSACTIONS AND REQUIRE- at least as favorable to the plan as an arm’s arrangement for the provision of advice re- MENTS.—Subsection (f) of such section 4975 length transaction would be. ferred to in section 3(21)(A)(ii). The plan (relating to other definitions and special ‘‘(2) STANDARDS FOR PRESENTATION OF IN- sponsor or other person who is a fiduciary rules) is amended by adding at the end the FORMATION.—The notification required to be has no duty under this part to monitor the following new paragraph: provided to participants and beneficiaries specific investment advice given by the fidu- ‘‘(7) PROVISIONS RELATING TO INVESTMENT under paragraph (1)(A) shall be written in a ciary adviser to any particular recipient of ADVICE PROVIDED BY FIDUCIARY ADVISERS.— clear and conspicuous manner and in a man- the advice. ‘‘(A) TRANSACTIONS ALLOWABLE IN CONNEC- ner calculated to be understood by the aver- ‘‘(C) AVAILABILITY OF PLAN ASSETS FOR PAY- TION WITH INVESTMENT ADVICE PROVIDED BY age plan participant and shall be sufficiently MENT FOR ADVICE.—Nothing in this part shall FIDUCIARY ADVISERS.—The transactions re- accurate and comprehensive to reasonably be construed to preclude the use of plan as- ferred to in subsection (d)(16), in connection apprise such participants and beneficiaries of sets to pay for reasonable expenses in pro- with the provision of investment advice by a the information required to be provided in viding investment advice referred to in sec- fiduciary adviser, are the following: the notification. tion 3(21)(A)(ii). ‘‘(i) the provision of the advice to the plan, ‘‘(3) EXEMPTION CONDITIONED ON CONTINUED ‘‘(6) DEFINITIONS.—For purposes of this sub- participant, or beneficiary; AVAILABILITY OF REQUIRED INFORMATION ON section and subsection (b)(14)— ‘‘(ii) the sale, acquisition, or holding of a REQUEST FOR 1 YEAR.—The requirements of ‘‘(A) FIDUCIARY ADVISER.—The term ‘fidu- security or other property (including any paragraph (1)(A) shall be deemed not to have ciary adviser’ means, with respect to a plan, lending of money or other extension of credit been met in connection with the initial or a person who is a fiduciary of the plan by associated with the sale, acquisition, or any subsequent provision of advice described reason of the provision of investment advice holding of a security or other property) pur- in paragraph (1) to the plan, participant, or by the person to the plan or to a participant suant to the advice; and beneficiary if, at any time during the provi- or beneficiary and who is— ‘‘(iii) the direct or indirect receipt of fees sion of advisory services to the plan, partici- ‘‘(i) registered as an investment adviser or other compensation by the fiduciary ad- pant, or beneficiary, the fiduciary adviser under the Investment Advisers Act of 1940 (15 viser or an affiliate thereof (or any em- fails to maintain the information described U.S.C. 80b–1 et seq.) or under the laws of the ployee, agent, or registered representative of in clauses (i) through (iv) of subparagraph State in which the fiduciary maintains its the fiduciary adviser or affiliate) in connec- (A) in currently accurate form and in the principal office and place of business, tion with the provision of the advice or in manner described in paragraph (2) or fails— ‘‘(ii) a bank or similar financial institution connection with a sale, acquisition, or hold- ‘‘(A) to provide, without charge, such cur- referred to in section 408(b)(4), ing of a security or other property pursuant rently accurate information to the recipient ‘‘(iii) an insurance company qualified to do to the advice. of the advice no less than annually, business under the laws of a State, ‘‘(B) REQUIREMENTS RELATING TO PROVISION ‘‘(B) to make such currently accurate in- ‘‘(iv) a person registered as a broker or OF INVESTMENT ADVICE BY FIDUCIARY ADVIS- formation available, upon request and with- dealer under the Securities Exchange Act of ERS.—The requirements of this subparagraph out charge, to the recipient of the advice, or 1934 (15 U.S.C. 78a et seq.), (referred to in subsection (d)(16)(C)) are met ‘‘(C) in the event of a material change to ‘‘(v) an affiliate of a person described in in connection with the provision of invest- the information described in clauses (i) any of clauses (i) through (iv), or ment advice referred to in subsection through (iv) of paragraph (1)(A), to provide, ‘‘(vi) an employee, agent, or registered rep- (e)(3)(B), provided to a plan or a participant without charge, such currently accurate in- resentative of a person described in any of or beneficiary of a plan by a fiduciary ad- formation to the recipient of the advice at a clauses (i) through (v) who satisfies the re- viser with respect to the plan in connection time reasonably contemporaneous to the ma- quirements of applicable insurance, banking, with any sale, acquisition, or holding of a se- terial change in information. and securities laws relating to the provision curity or other property for purposes of in- ‘‘(4) MAINTENANCE FOR 6 YEARS OF EVIDENCE of the advice. vestment of amounts held by the plan, if— OF COMPLIANCE.—A fiduciary adviser referred ‘‘(B) AFFILIATE.—The term ‘affiliate’ of an- ‘‘(i) in the case of the initial provision of to in paragraph (1) who has provided advice other entity means an affiliated person of the advice with regard to the security or referred to in such paragraph shall, for a pe- the entity (as defined in section 2(a)(3) of the other property by the fiduciary adviser to riod of not less than 6 years after the provi- Investment Company Act of 1940 (15 U.S.C. the plan, participant, or beneficiary, the fi- sion of the advice, maintain any records nec- 80a–2(a)(3))). duciary adviser provides to the recipient of essary for determining whether the require- ‘‘(C) REGISTERED REPRESENTATIVE.—The the advice, at a time reasonably contem- ments of the preceding provisions of this term ‘registered representative’ of another poraneous with the initial provision of the subsection and of subsection (b)(14) have entity means a person described in section advice, a written notification (which may been met. A transaction prohibited under 3(a)(18) of the Securities Exchange Act of consist of notification by means of elec- section 406 shall not be considered to have 1934 (15 U.S.C. 78c(a)(18)) (substituting the tronic communication)— occurred solely because the records are lost entity for the broker or dealer referred to in ‘‘(I) of all fees or other compensation relat- or destroyed prior to the end of the 6-year such section) or a person described in section ing to the advice that the fiduciary adviser period due to circumstances beyond the con- 202(a)(17) of the Investment Advisers Act of or any affiliate thereof is to receive (includ- trol of the fiduciary adviser. 1940 (15 U.S.C. 80b–2(a)(17)) (substituting the ing compensation provided by any third ‘‘(5) EXEMPTION FOR PLAN SPONSOR AND CER- entity for the investment adviser referred to party) in connection with the provision of TAIN OTHER FIDUCIARIES.— in such section).’’. the advice or in connection with the sale, ac- ‘‘(A) IN GENERAL.—Subject to subparagraph (b) AMENDMENTS TO THE INTERNAL REVENUE quisition, or holding of the security or other (B), a plan sponsor or other person who is a CODE OF 1986.— property, H1220 CONGRESSIONAL RECORD — HOUSE April 11, 2002

‘‘(II) of any material affiliation or contrac- ‘‘(F) EXEMPTION FOR PLAN SPONSOR AND ‘‘(2) REMEDY.—Any profit realized by such tual relationship of the fiduciary adviser or CERTAIN OTHER FIDUCIARIES.—A plan sponsor beneficial owner, director, or officer from affiliates thereof in the security or other or other person who is a fiduciary (other any purchase (or other acquisition) or sale property, than a fiduciary adviser) shall not be treated (or other transfer) in violation of this sub- ‘‘(III) of any limitation placed on the scope as failing to meet the requirements of this section shall inure to and be recoverable by of the investment advice to be provided by section solely by reason of the provision of the issuer irrespective of any intention on the fiduciary adviser with respect to any investment advice referred to in subsection the part of such beneficial owner, director, such sale, acquisition, or holding of a secu- (e)(3)(B) (or solely by reason of contracting or officer in entering into the transaction. rity or other property, for or otherwise arranging for the provision ‘‘(3) RULEMAKING PERMITTED.—The Com- ‘‘(IV) of the types of services provided by of the advice), if— mission may issue rules to clarify the appli- the fiduciary advisor in connection with the ‘‘(i) the advice is provided by a fiduciary cation of this subsection, to ensure adequate provision of investment advice by the fidu- adviser pursuant to an arrangement between notice to all persons affected by this sub- ciary adviser, and the plan sponsor or other fiduciary and the section, and to prevent evasion thereof. ‘‘(V) that the adviser is acting as a fidu- fiduciary adviser for the provision by the fi- ‘‘(4) DEFINITIONS.—For purposes of this ciary of the plan in connection with the pro- duciary adviser of investment advice re- subsection— vision of the advice, ferred to in such section, ‘‘(A) PENSION PLAN SUSPENSION PERIOD.— ‘‘(ii) the fiduciary adviser provides appro- ‘‘(ii) the terms of the arrangement require The term ‘pension plan suspension period’ priate disclosure, in connection with the compliance by the fiduciary adviser with the means, with respect to an equity security, sale, acquisition, or holding of the security requirements of this paragraph, any period during which the ability of a par- or other property, in accordance with all ap- ‘‘(iii) the terms of the arrangement include ticipant or beneficiary under an applicable plicable securities laws, a written acknowledgment by the fiduciary individual account plan maintained by the ‘‘(iii) the sale, acquisition, or holding oc- adviser that the fiduciary adviser is a fidu- issuer to direct the investment of assets in curs solely at the direction of the recipient ciary of the plan with respect to the provi- his or her individual account away from such of the advice, sion of the advice, and equity security is suspended by the issuer or ‘‘(iv) the compensation received by the fi- ‘‘(iv) the requirements of part 4 of subtitle a fiduciary of the plan. Such term does not duciary adviser and affiliates thereof in con- B of title I of the Employee Retirement In- include any limitation or restriction that nection with the sale, acquisition, or holding come Security Act of 1974 are met in connec- may govern the frequency of transfers be- of the security or other property is reason- tion with the provision of such advice. tween investment vehicles to the extent such able, and ‘‘(G) DEFINITIONS.—For purposes of this limitation and restriction is disclosed to par- ‘‘(v) the terms of the sale, acquisition, or paragraph and subsection (d)(16)— ticipants and beneficiaries through the sum- holding of the security or other property are ‘‘(i) FIDUCIARY ADVISER.—The term ‘fidu- mary plan description or materials describ- at least as favorable to the plan as an arm’s ciary adviser’ means, with respect to a plan, ing specific investment alternatives under length transaction would be. a person who is a fiduciary of the plan by the plan. ‘‘(C) STANDARDS FOR PRESENTATION OF IN- reason of the provision of investment advice ‘‘(B) APPLICABLE INDIVIDUAL ACCOUNT FORMATION.—The notification required to be by the person to the plan or to a participant PLAN.—The term ‘applicable individual ac- provided to participants and beneficiaries or beneficiary and who is— count plan’ has the meaning provided such under subparagraph (B)(i) shall be written in ‘‘(I) registered as an investment adviser term in section 3(42) of the Employee Retire- a clear and conspicuous manner and in a under the Investment Advisers Act of 1940 (15 ment Income Security Act of 1974.’’. manner calculated to be understood by the U.S.C. 80b–1 et seq.) or under the laws of the average plan participant and shall be suffi- SEC. 7. EFFECTIVE DATES AND RELATED RULES. State in which the fiduciary maintains its ciently accurate and comprehensive to rea- (a) IN GENERAL.—Except as provided in principal office and place of business, sonably apprise such participants and bene- subsection (b), the amendments made by sec- ‘‘(II) a bank or similar financial institution ficiaries of the information required to be tions 2, 3, 4, and 6 shall apply with respect to referred to in subsection (d)(4), provided in the notification. plan years beginning on or after January 1, ‘‘(III) an insurance company qualified to do ‘‘(D) EXEMPTION CONDITIONED ON MAKING RE- 2003. business under the laws of a State, QUIRED INFORMATION AVAILABLE ANNUALLY, ON (b) SPECIAL RULE FOR COLLECTIVELY BAR- ‘‘(IV) a person registered as a broker or REQUEST, AND IN THE EVENT OF MATERIAL GAINED PLANS.—In the case of a plan main- dealer under the Securities Exchange Act of CHANGE.—The requirements of subparagraph tained pursuant to 1 or more collective bar- (B)(i) shall be deemed not to have been met 1934 (15 U.S.C. 78a et seq.), gaining agreements between employee rep- in connection with the initial or any subse- ‘‘(V) an affiliate of a person described in resentatives and 1 or more employers rati- quent provision of advice described in sub- any of subclauses (I) through (IV), or fied on or before the date of the enactment of paragraph (B) to the plan, participant, or ‘‘(VI) an employee, agent, or registered this Act, subsection (a) shall be applied to beneficiary if, at any time during the provi- representative of a person described in any of benefits pursuant to, and individuals covered sion of advisory services to the plan, partici- subclauses (I) through (V) who satisfies the by, any such agreement by substituting for pant, or beneficiary, the fiduciary adviser requirements of applicable insurance, bank- ‘‘January 1, 2003’’ the date of the commence- fails to maintain the information described ing, and securities laws relating to the provi- ment of the first plan year beginning on or in subclauses (I) through (IV) of subpara- sion of the advice. after the earlier of— graph (B)(i) in currently accurate form and ‘‘(ii) AFFILIATE.—The term ‘affiliate’ of an- (1) the later of— in the manner required by subparagraph (C), other entity means an affiliated person of (A) January 1, 2004, or or fails— the entity (as defined in section 2(a)(3) of the (B) the date on which the last of such col- ‘‘(i) to provide, without charge, such cur- Investment Company Act of 1940 (15 U.S.C. lective bargaining agreements terminates rently accurate information to the recipient 80a–2(a)(3))). (determined without regard to any extension of the advice no less than annually, ‘‘(iii) REGISTERED REPRESENTATIVE.—The thereof after the date of the enactment of ‘‘(ii) to make such currently accurate in- term ‘registered representative’ of another this Act), or formation available, upon request and with- entity means a person described in section (2) January 1, 2005. out charge, to the recipient of the advice, or 3(a)(18) of the Securities Exchange Act of (c) PLAN AMENDMENTS.—If the amendments ‘‘(iii) in the event of a material change to 1934 (15 U.S.C. 78c(a)(18)) (substituting the made by sections 2, 3, and 4 of this Act re- the information described in subclauses (I) entity for the broker or dealer referred to in quire an amendment to any plan, such plan through (IV) of subparagraph (B)(i), to pro- such section) or a person described in section amendment shall not be required to be made vide, without charge, such currently accu- 202(a)(17) of the Investment Advisers Act of before the first plan year beginning on or rate information to the recipient of the ad- 1940 (15 U.S.C. 80b–2(a)(17)) (substituting the after January 1, 2005, if— vice at a time reasonably contemporaneous entity for the investment adviser referred to (1) during the period after such amend- to the material change in information. in such section).’’. ments made by this Act take effect and be- ‘‘(E) MAINTENANCE FOR 6 YEARS OF EVIDENCE SEC. 6. INSIDER TRADES DURING PENSION PLAN fore such first plan year, the plan is operated OF COMPLIANCE.—A fiduciary adviser referred SUSPENSION PERIODS PROHIBITED. in accordance with the requirements of such to in subparagraph (B) who has provided ad- Section 16 of the Securities Exchange Act amendments made by this Act, and vice referred to in such subparagraph shall, of 1934 (15 U.S.C. 78p) is amended by adding (2) such plan amendment applies retro- for a period of not less than 6 years after the at the end the following new subsection: actively to the period after such amend- provision of the advice, maintain any records ‘‘(h) INSIDER TRADES DURING PENSION PLAN ments made by this Act take effect and be- necessary for determining whether the re- SUSPENSION PERIODS PROHIBITED.— fore such first plan year. quirements of the preceding provisions of ‘‘(1) PROHIBITION.—It shall be unlawful for (d) AMENDMENTS RELATING TO INVESTMENT this paragraph and of subsection (d)(16) have any such beneficial owner, director, or offi- ADVICE.—The amendments made by section 5 been met. A transaction prohibited under cer of an issuer, directly or indirectly, to shall apply with respect to advice referred to subsection (c)(1) shall not be considered to purchase (or otherwise acquire) or sell (or in section 3(21)(A)(ii) of the Employee Re- have occurred solely because the records are otherwise transfer) any equity security of tirement Income Security Act of 1974 or sec- lost or destroyed prior to the end of the 6- such issuer (other than an exempted secu- tion 4975(c)(3)(B) of the Internal Revenue year period due to circumstances beyond the rity), during any pension plan suspension pe- Code of 1986 provided on or after January 1, control of the fiduciary adviser. riod with respect to such equity security. 2003. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1221 The SPEAKER pro tempore. In lieu TITLE III—STOCK OPTIONS 410(b) of the Internal Revenue Code of 1986) of the amendment recommended by the Sec. 301. Exclusion of incentive stock op- under the plan need not be taken into ac- Committee on Education and the tions and employee stock pur- count in determining the 3-year period under Workforce printed in the bill, the chase plan stock options from paragraph (1)(B)(i).’’. wages. (B) CONFORMING AMENDMENTS.— amendment in the nature of a sub- (i) Section 105 of the Employee Retirement TITLE IV—SOCIAL SECURITY AND stitute printed in part A of House Re- Income Security Act of 1974 (29 U.S.C. 1025) is MEDICARE HELD HARMLESS port 107–396 is adopted. amended by striking subsection (d). The text of H.R. 3762, as amended Sec. 401. Protection of Social Security and (ii) Section 105(b) of such Act (29 U.S.C. pursuant to House Resolution 386, is as Medicare. 1025(b)) is amended to read as follows: follows: TITLE I—IMPROVEMENTS IN PENSION ‘‘(b) In no case shall a participant or bene- SECURITY ficiary of a plan be entitled to more than one H.R. 3762 statement described in clause (i) or (ii) of SEC. 101. PERIODIC PENSION BENEFITS STATE- SECTION 1. SHORT TITLE AND TABLE OF CON- MENTS. subsection (a)(1)(A) or clause (i) or (ii) of TENTS. subsection (a)(1)(B), whichever is applicable, (a) AMENDMENTS TO THE EMPLOYEE RETIRE- in any 12-month period. If such report is re- (a) SHORT TITLE.—This Act may be cited as MENT INCOME SECURITY ACT OF 1974.— quired under subsection (a) to be furnished the ‘‘Pension Security Act of 2002’’. (1) REQUIREMENTS.— at least quarterly, the requirements of the (b) TABLE OF CONTENTS.—The table of con- (A) IN GENERAL.—Section 105(a) of the Em- preceding sentence shall be applied with re- tents is as follows: ployee Retirement Income Security Act of spect to each quarter in lieu of the 12-month Sec. 1. Short title and table of contents. 1974 (29 U.S.C. 1025(a)) is amended to read as period.’’. follows: TITLE I—IMPROVEMENTS IN PENSION (2) INFORMATION REQUIRED FROM APPLICA- ‘‘(a)(1)(A) The administrator of an indi- SECURITY BLE INDIVIDUAL ACCOUNT PLANS.—Section 105 vidual account plan shall furnish a pension Sec. 101. Periodic pension benefits state- of such Act (as amended by paragraph (1)) is benefit statement— ments. amended further by adding at the end the ‘‘(i) to each plan participant at least annu- following new subsection: Sec. 102. Protection from suspensions, limi- ally, tations, or restrictions on abil- ‘‘(d)(1) The statements required to be pro- ‘‘(ii) to each plan beneficiary upon written vided at least quarterly under subsection (a) ity of participant or beneficiary request, and to direct or diversify plan as- shall include (together with the information ‘‘(iii) in the case of an applicable indi- required in subsection (a)) the following: sets. vidual account plan, to each plan participant Sec. 103. Informational and educational sup- ‘‘(A) the value of investments allocated to (and to each beneficiary with a right to di- the individual account, including the value port for pension plan fidu- rect investments) at least quarterly. ciaries. of any assets held in the form of employer ‘‘(B) The administrator of a defined benefit securities, without regard to whether such Sec. 104. Diversification requirements for plan shall furnish a pension benefit defined contribution plans that securities were contributed by the plan spon- statement— sor or acquired at the direction of the plan hold employer securities. ‘‘(i) at least once every 3 years to each par- Sec. 105. Prohibited transaction exemption or of the participant or beneficiary, and an ticipant with a nonforfeitable accrued ben- explanation of any limitations or restric- for the provision of investment efit who is employed by the employer main- advice. tions on the right of the participant or bene- taining the plan at the time the statement is ficiary to direct an investment; and Sec. 106. Study regarding impact on retire- furnished to participants, and ment savings of participants ‘‘(B) an explanation, written in a manner ‘‘(ii) to a plan participant or plan bene- calculated to be understood by the average and beneficiaries by requiring ficiary of the plan upon written request. consultants to advise plan fidu- plan participant, of the importance, for the ‘‘(2) A pension benefit statement under long-term retirement security of partici- ciaries of individual account paragraph (1)— plans. pants and beneficiaries, of a well-balanced ‘‘(A) shall indicate, on the basis of the lat- and diversified investment portfolio, includ- Sec. 107. Treatment of qualified retirement est available information— planning services. ing a discussion of the risk of holding more ‘‘(i) the total benefits accrued, and than 25 percent of a portfolio in the security Sec. 108. Insider trades during pension fund ‘‘(ii) the nonforfeitable pension benefits, if blackout periods prohibited. of any one entity, such as employer securi- any, which have accrued, or the earliest date ties. Sec. 109. Effective dates of title and related on which benefits will become nonforfeit- ‘‘(2) The value of any employer securities rules. able, that are not readily tradable on an estab- TITLE II—OTHER PROVISIONS RELATING ‘‘(B) shall be written in a manner cal- lished securities market that is required to TO PENSIONS culated to be understood by the average plan be reported under paragraph (1)(A) may be Sec. 201. Amendments to Retirement Pro- participant, and determined by using the most recent valu- tection Act of 1994. ‘‘(C) may be provided in written form or in ation of the employer securities. electronic or other appropriate form to the Sec. 202. Reporting simplification. ‘‘(3) The Secretary shall issue guidance and extent that such form is reasonably acces- Sec. 203. Improvement of Employee Plans model notices which meet the requirements sible to the recipient. Compliance Resolution System. of this subsection.’’. ‘‘(3) In the case of an applicable individual Sec. 204. Flexibility in nondiscrimination, (3) DEFINITION OF APPLICABLE INDIVIDUAL account plan, the requirements of paragraph coverage, and line of business ACCOUNT PLAN.—Section 3 of such Act (29 (1)(A) shall be treated as met if the quarterly rules. U.S.C. 1002) is amended by adding at the end statement (together with the information re- Sec. 205. Extension to all governmental the following new paragraph: quired in subparagraphs (A) and (B) of sub- ‘‘(42)(A) The term ‘applicable individual ac- plans of moratorium on appli- section (d)(1)) is available electronically in count plan’ means any individual account cation of certain non- reasonably accessible form, and the partici- plan, except that such term does not include discrimination rules applicable pant or beneficiary is provided at least once an employee stock ownership plan (within to State and local plans. each year a notice that such statement (to- the meaning of section 4975(e)(7) of the Inter- Sec. 206. Notice and consent period regard- gether with such information) is available in nal Revenue Code of 1986) unless there are ing distributions. such form. Such notice shall be in written, any contributions to such plan (or earnings Sec. 207. Annual report dissemination. electronic, or other appropriate form. thereunder) held within such plan that are Sec. 208. Technical corrections to Saver Act. ‘‘(4)(A) In the case of a defined benefit subject to subsection (k)(3) or (m)(2) of sec- Sec. 209. Missing participants. plan, the requirements of paragraph (1)(B)(i) tion 401 of the Internal Revenue Code of 1986. Sec. 210. Reduced PBGC premium for new shall be treated as met with respect to a par- Such term shall not include a one-partici- plans of small employers. ticipant if the administrator provides the pant retirement plan. Sec. 211. Reduction of additional PBGC pre- participant at least once each year with no- ‘‘(B) The term ‘one-participant retirement mium for new and small plans. tice of the availability of the pension benefit plan’ means a retirement plan that— Sec. 212. Authorization for PBGC to pay in- statement and the ways in which the partici- ‘‘(i) on the first day of the plan year— terest on premium overpay- pant may obtain such statement. Such no- ‘‘(I) covered only the employer (and the ment refunds. tice shall be provided in written, electronic, employer’s spouse) and the employer owned Sec. 213. Substantial owner benefits in ter- or other appropriate form, and may be in- the entire business (whether or not incor- minated plans. cluded with other communications to the porated), or Sec. 214. Benefit suspension notice. participant if done in a manner reasonably ‘‘(II) covered only one or more partners Sec. 215. Studies. designed to attract the attention of the par- (and their spouses) in a business partnership Sec. 216. Interest rate range for additional ticipant. (including partners in an S or C corporation), funding requirements. ‘‘(B) The Secretary may provide that years ‘‘(ii) meets the minimum coverage require- Sec. 217. Provisions relating to plan amend- in which no employee or former employee ments of section 410(b) of the Internal Rev- ments. benefits (within the meaning of section enue Code of 1986 (as in effect on the date of H1222 CONGRESSIONAL RECORD — HOUSE April 11, 2002

the enactment of this paragraph) without ‘‘(5) DEFINITIONS.—For purposes of this (1) NOTICE REQUIREMENTS.— being combined with any other plan of the subsection— (A) IN GENERAL.—Section 101 of the Em- business that covers the employees of the ‘‘(A) APPLICABLE INDIVIDUAL.—The term ployee Retirement Income Security Act of business, ‘applicable individual’ means— 1974 (29 U.S.C. 1021) is amended— ‘‘(iii) does not provide benefits to anyone ‘‘(i) any participant in the applicable pen- (i) by redesignating the second subsection except the employer (and the employer’s sion plan, (h) as subsection (j); and spouse) or the partners (and their spouses), ‘‘(ii) any beneficiary who is an alternate (ii) by inserting after the first subsection ‘‘(iv) does not cover a business that is a payee (within the meaning of section (h) the following new subsection: member of an affiliated service group, a con- 414(p)(8)) under a qualified domestic rela- ‘‘(i) NOTICE OF SUSPENSION, LIMITATION, OR trolled group of corporations, or a group of tions order (within the meaning of section RESTRICTION ON ABILITY OF PARTICIPANT OR businesses under common control, and 414(p)(1)(A)), and BENEFICIARY TO DIRECT INVESTMENTS IN INDI- ‘‘(v) does not cover a business that leases ‘‘(iii) any beneficiary of a deceased partici- VIDUAL ACCOUNT PLAN.— employees.’’. pant or alternate payee. ‘‘(1) DUTIES OF PLAN ADMINISTRATOR.— (4) CIVIL PENALTIES FOR FAILURE TO PRO- ‘‘(B) APPLICABLE PENSION PLAN.—The term ‘‘(A) IN GENERAL.—In the case of any action VIDE QUARTERLY BENEFIT STATEMENTS.—Sec- ‘applicable pension plan’ means— having the effect of temporarily suspending, tion 502 of such Act (29 U.S.C. 1132) is ‘‘(i) a plan described in clause (i), (ii), or limiting, or restricting any ability of par- amended— (iv) of section 219(g)(5)(A), and ticipants or beneficiaries under an applicable (A) in subsection (a)(6), by striking ‘‘(5), or ‘‘(ii) an eligible deferred compensation individual account plan, which is otherwise (6)’’ and inserting ‘‘(5), (6), or (7)’’; plan (as defined in section 457(b)) of an eligi- available under the terms of such plan, to di- (B) by redesignating paragraph (7) of sub- ble employer described in section rect or diversify assets credited to their ac- section (c) as paragraph (8); and 457(e)(1)(A), counts, if such suspension, limitation, or re- (C) by inserting after paragraph (6) of sub- striction is for any period of more than 3 which permits any participant to direct the section (c) the following new paragraph: consecutive business days, the plan adminis- ‘‘(7) The Secretary may assess a civil pen- investment of some or all of his account in trator shall— alty against any plan administrator of up to the plan or under which the accrued benefit ‘‘(i) in advance of taking such action, de- $1,000 a day from the date of such plan ad- of any participant depends in whole or in termine, in accordance with the require- ministrator’s failure or refusal to provide part on hypothetical investments directed by ments of part 4, that the expected period of participants or beneficiaries with a benefit the participant. Such term shall not include suspension, limitation, or restriction is rea- statement on at least a quarterly basis in ac- a one-participant retirement plan or a plan sonable, and cordance with section 105(a)(1)(A)(iii).’’. to which section 105 of the Employee Retire- ‘‘(ii) after making the determination under (5) MODEL STATEMENTS.—The Secretary of ment Income Security Act of 1974 applies. subparagraph (A) and in advance of taking Labor shall, not later than January 1, 2003, ‘‘(C) ONE-PARTICIPANT RETIREMENT PLAN DE- such action, notify the plan participants and issue initial guidance and a model benefit FINED.—The term ‘one-participant retire- beneficiaries who are affected by such action statement, written in a manner calculated to ment plan’ means a retirement plan that— in accordance with this subsection. be understood by the average plan partici- ‘‘(i) on the first day of the plan year— ‘‘(B) EXCEPTIONS.—Subparagraph (A) does pant, that may be used by plan administra- ‘‘(I) covered only the employer (and the not apply in connection with any suspension, tors in complying with the requirements of employer’s spouse) and the employer owned limitation, or restriction— section 105 of the Employee Retirement In- the entire business (whether or not incor- ‘‘(i) which occurs by reason of the applica- come Security Act of 1974. Not later than 75 porated), or tion of the securities laws (as defined in sec- days after the date of the enactment of this ‘‘(II) covered only one or more partners tion 3(a)(47) of the Securities Exchange Act Act, the Secretary shall promulgate interim (and their spouses) in a business partnership of 1934), or final rules necessary to carry out the amend- (including partners in an S or C corporation), ‘‘(ii) to the extent the suspension, limita- ments made by this subsection. ‘‘(ii) meets the minimum coverage require- tion, or restriction is a change to the terms (b) AMENDMENTS TO THE INTERNAL REVENUE ments of section 410(b) without being com- of the plan disclosed to participants or bene- CODE OF 1986.— bined with any other plan of the business ficiaries through the summary plan descrip- (1) PROVISION OF INVESTMENT EDUCATION NO- that covers the employees of the business, tion or materials describing specific invest- TICES TO PARTICIPANTS IN CERTAIN PLANS.— ‘‘(iii) does not provide benefits to anyone ment alternatives under the plan. Section 414 of the Internal Revenue Code of except the employer (and the employer’s ‘‘(C) BUSINESS DAY.—For purposes of sub- 1986 (relating to definitions and special rules) spouse) or the partners (and their spouses), paragraph (A), under regulations prescribed is amended by adding at the end the fol- ‘‘(iv) does not cover a business that is a by the Secretary, the term ‘business day’ lowing: member of an affiliated service group, a con- means— ‘‘(w) PROVISION OF INVESTMENT EDUCATION trolled group of corporations, or a group of ‘‘(i) in the case of a security which is trad- NOTICES TO PARTICIPANTS IN CERTAIN businesses under common control, and ed on an established security market, any PLANS.— ‘‘(v) does not cover a business that leases day on which such security may be traded on ‘‘(1) IN GENERAL.—The plan administrator employees. the principal securities market of such secu- of an applicable pension plan shall provide to ‘‘(6) CROSS REFERENCE.— rity, and each applicable individual an investment ‘‘For provisions relating to penalty for fail- ‘‘(ii) in the case of a security which is not education notice described in paragraph (2) ure to provide the notice required by this traded on an established security market, at the time of the enrollment of the applica- section, see section 6652(m).’’. any calendar day. ble individual in the plan and not less often (2) PENALTY FOR FAILURE TO PROVIDE NO- ‘‘(2) NOTICE REQUIREMENTS.— than annually thereafter. TICE.—Section 6652 of such Code (relating to ‘‘(A) IN GENERAL.—The notices described in ‘‘(2) INVESTMENT EDUCATION NOTICE.—An in- failure to file certain information returns, paragraph (1) shall be written in a manner vestment education notice is described in registration statements, etc.) is amended by calculated to be understood by the average this paragraph if such notice contains— redesignating subsection (m) as subsection plan participant and shall include— ‘‘(A) an explanation, for the long-term re- (n) and by inserting after subsection (l) the ‘‘(i) the reasons for the suspension, limita- tirement security of participants and bene- following new subsection: tion, or restriction, ficiaries, of generally accepted investment ‘‘(m) FAILURE TO PROVIDE INVESTMENT EDU- ‘‘(ii) an identification of the investments principles, including principles of risk man- CATION NOTICES TO PARTICIPANTS IN CERTAIN affected, agement and diversification, and PLANS.—In the case of each failure to pro- ‘‘(iii) the expected period of the suspen- ‘‘(B) a discussion of the risk of holding sub- vide a written explanation as required by sion, limitation, or restriction, stantial portions of a portfolio in the secu- section 414(w) with respect to an applicable ‘‘(iv) a statement that the plan adminis- rity of any one entity, such as employer se- individual (as defined in such section), at the trator has evaluated the reasonableness of curities. time prescribed therefor, unless it is shown the expected period of suspension, limita- that such failure is due to reasonable cause ‘‘(3) UNDERSTANDABILITY.—Each notice re- tion, or restriction, quired by paragraph (1) shall be written in a and not to willful neglect, there shall be ‘‘(v) a statement that the participant or manner calculated to be understood by the paid, on notice and demand of the Secretary beneficiary should evaluate the appropriate- and in the same manner as tax, by the person average plan participant and shall provide ness of their current investment decisions in failing to provide such notice, an amount sufficient information (as determined in ac- light of their inability to direct or diversify equal to $100 for each such failure, but the cordance with guidance provided by the Sec- assets credited to their accounts during the total amount imposed on such person for all retary) to allow recipients to understand expected period of suspension, limitation, or such failures during any calendar year shall such notice. restriction, and not exceed $50,000.’’. ‘‘(4) FORM AND MANNER OF NOTICES.—The ‘‘(vi) such other matters as the Secretary notices required by this subsection shall be SEC. 102. PROTECTION FROM SUSPENSIONS, LIM- may include in the model notices issued ITATIONS, OR RESTRICTIONS ON in writing, except that such notices may be ABILITY OF PARTICIPANT OR BENE- under subparagraph (E). in electronic or other form (or electronically FICIARY TO DIRECT OR DIVERSIFY ‘‘(B) PROVISION OF NOTICE.—Except as oth- posted on the plan’s website) to the extent PLAN ASSETS. erwise provided in this subsection, notices that such form is reasonably accessible to (a) AMENDMENTS TO THE EMPLOYEE RETIRE- described in paragraph (1) shall be furnished the applicable individual. MENT INCOME SECURITY ACT OF 1974.— to all participants and beneficiaries under April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1223 the plan at least 30 days in advance of the issue initial guidance and a model notice ‘‘SEC. 4980H. FAILURE OF APPLICABLE PLANS TO action suspending, limiting, or restricting pursuant to section 101(i)(6) of the Employee PROVIDE NOTICE OF TRANSACTION the ability of the participants or bene- Retirement Income Security Act of 1974 (as RESTRICTION PERIODS. ficiaries to direct or diversify assets. added by this subsection) not later than Jan- ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed a tax on the failure of any applica- ‘‘(C) EXCEPTION TO 30-DAY NOTICE REQUIRE- uary 1, 2003. Not later than 75 days after the ble pension plan to meet the requirements of MENT.—In any case in which— date of the enactment of this Act, the Sec- subsection (e) with respect to any applicable ‘‘(i) a fiduciary of the plan determines, in retary shall promulgate interim final rules individual. writing, that a deferral of the suspension, necessary to carry out the amendments ‘‘(b) AMOUNT OF TAX.—The amount of the limitation, or restriction would violate the made by this subsection. tax imposed by subsection (a) on any failure requirements of subparagraph (A) or (B) of (2) CIVIL PENALTIES FOR FAILURE TO PRO- with respect to any applicable individual section 404(a)(1), or VIDE NOTICE.—Section 502 of such Act (as shall be $100. ‘‘(ii) the inability to provide the 30-day ad- amended by section 101(a)(4)) is amended ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— vance notice is due to events that were un- further— ‘‘(1) TAX NOT TO APPLY TO FAILURES COR- foreseeable or circumstances beyond the rea- (A) in subsection (a)(6), by striking ‘‘(6), or RECTED AS SOON AS REASONABLY PRAC- sonable control of the plan administrator, (7)’’ and inserting ‘‘(6), (7), or (8)’’; TICABLE.—No tax shall be imposed by sub- subparagraph (B) shall not apply, and the no- (B) by redesignating paragraph (8) of sub- section (a) on any failure if— tice shall be furnished to all participants and section (c) as paragraph (9); and ‘‘(A) any person subject to liability for the beneficiaries under the plan as soon as rea- (C) by inserting after paragraph (7) of sub- tax under subsection (d) exercised reasonable sonably possible under the circumstances un- section (c) the following new paragraph: diligence to meet the requirements of sub- less such a notice in advance of the termi- ‘‘(8) The Secretary may assess a civil pen- section (e), and nation of the suspension, limitation, or re- alty against a plan administrator of up to ‘‘(B) such person provides the notice de- striction is impracticable. $100 a day from the date of the plan adminis- scribed in subsection (e) as soon as reason- ‘‘(D) WRITTEN NOTICE.—The notice required trator’s failure or refusal to provide notice ably practicable after the first date such per- to be provided under this subsection shall be to participants and beneficiaries in accord- son knew, or exercising reasonable diligence in writing, except that such notice may be in ance with section 101(i). For purposes of this should have known, that such failure existed electronic or other form to the extent that and at least 1 business day before the begin- paragraph, each violation with respect to such form is reasonably accessible to the re- ning of the transaction restriction period. any single participant or beneficiary shall be cipient. ‘‘(2) TAX NOT TO APPLY WHEN PROVIDING NO- treated as a separate violation.’’. ‘‘(E) MODEL NOTICES.—The Secretary shall TICE NOT REASONABLY PRACTICABLE.—No tax issue model notices which meet the require- (3) INAPPLICABILITY OF RELIEF FROM FIDU- shall be imposed by subsection (a) if, in the ments of this paragraph. CIARY LIABILITY DURING SUSPENSION OF ABIL- case of the occurrence of an unforeseeable ITY OF PARTICIPANT OR BENEFICIARY TO DIRECT ‘‘(3) EXCEPTION FOR SUSPENSIONS, LIMITA- event, it is not reasonably practicable to INVESTMENTS.—Section 404(c)(1) of such Act TIONS, OR RESTRICTIONS WITH LIMITED APPLI- provide such notice before the beginning of (29 U.S.C. 1104(c)(1)) is amended— CABILITY.—In any case in which the suspen- the transaction restriction period. (A) by redesignating subparagraphs (A) and sion, limitation, or restriction described in ‘‘(3) OVERALL LIMITATION FOR UNINTEN- (B) as clauses (i) and (ii), respectively, and paragraph (1)— TIONAL FAILURES.— ‘‘(A) applies only to 1 or more individuals, by inserting ‘‘(A)’’ after ‘‘(c)(1)’’; ‘‘(A) IN GENERAL.—If the person subject to each of whom is the participant, an alternate (B) in subparagraph (A)(ii) (as redesignated liability for tax under subsection (d) exer- payee (as defined in section 206(d)(3)(K)), or by subparagraph (A)), by inserting before the cised reasonable diligence to meet the re- any other beneficiary pursuant to a qualified period the following: ‘‘, except that this quirements of subsection (e), the tax imposed domestic relations order (as defined in sec- clause shall not apply in connection with by subsection (a) for failures during the tax- tion 206(d)(3)(B)(i)), or such participant or beneficiary for any pe- able year of the employer (or, in the case of ‘‘(B) applies only to 1 or more participants riod during which the ability of such partici- a multiemployer plan, the taxable year of or beneficiaries in connection with a merger, pant or beneficiary to direct the investment the trust forming part of the plan) shall not acquisition, divestiture, or similar trans- of the assets in his or her account is sus- exceed $500,000. For purposes of the preceding action involving the plan or plan sponsor and pended by a plan sponsor or fiduciary’’; and sentence, all multiemployer plans of which occurs solely in connection with becoming or (C) by adding at the end the following new the same trust forms a part shall be treated ceasing to be a participant or beneficiary subparagraphs: as 1 plan. under the plan by reason of such merger, ac- ‘‘(B) If the person referred to in subpara- ‘‘(B) TAXABLE YEARS IN THE CASE OF CER- quisition, divestiture, or transaction, graph (A)(ii) meets the requirements of this TAIN CONTROLLED GROUPS.—For purposes of this paragraph, if all persons who are treated the requirement of this subsection that the title in connection with authorizing the sus- as a single employer for purposes of this sec- notice be provided to all participants and pension, such person shall not be liable tion do not have the same taxable year, the beneficiaries shall be treated as met if the under this title for any loss occurring during taxable years taken into account shall be de- notice required under paragraph (1) is pro- the suspension as a result of any exercise by termined under principles similar to the vided to all the individuals referred to in the participant or beneficiary of control over principles of section 1561. subparagraph (A) or (B) to whom the suspen- assets in his or her account prior to the sus- ‘‘(4) WAIVER BY SECRETARY.—In the case of pension. Matters to be considered in deter- sion, limitation, or restriction applies as a failure which is due to reasonable cause soon as reasonably practicable. mining whether such person has satisfied the and not to willful neglect, the Secretary may ‘‘(4) CHANGES IN PERIOD OF SUSPENSION, LIM- requirements of this title include whether waive part or all of the tax imposed by sub- ITATION, OR RESTRICTION.—If, following the such person— section (a) to the extent that the payment of furnishing of the notice pursuant to this sub- ‘‘(i) has considered the reasonableness of such tax would be excessive or otherwise in- section, there is a change in the period of the the expected period of the suspension as re- equitable relative to the failure involved. suspension, limitation, or restriction (speci- quired under section 101(i)(1)(A)(i), ‘‘(d) LIABILITY FOR TAX.—The following fied in such notice pursuant to paragraph ‘‘(ii) has provided the notice required under shall be liable for the tax imposed by sub- (2)(A)(iii)) on the right of a participant or section 101(i)(1)(A)(ii), and section (a): beneficiary to direct or diversify assets, the ‘‘(iii) has acted in accordance with the re- ‘‘(1) In the case of a plan other than a mul- administrator shall provide affected partici- quirements of subsection (a) in determining tiemployer plan, the employer. pants and beneficiaries notice of the change whether to enter into the suspension. ‘‘(2) In the case of a multiemployer plan, as soon as reasonably practicable. In relation ‘‘(C) Any limitation or restriction that the plan. to the extended suspension, limitation, or re- may govern the frequency of transfers be- ‘‘(e) NOTICE OF TRANSACTION RESTRICTION striction, such notice shall meet the require- PERIOD.— tween investment vehicles shall not be treat- ments of paragraph (2)(D) and shall specify ‘‘(1) IN GENERAL.—The plan administrator ed as a suspension referred to in subpara- any material change in the matters referred of an applicable pension plan shall provide graph (A)(ii) to the extent such limitation or to in clauses (i) through (vi) of paragraph written notice of any transaction restriction restriction is disclosed to participants or (2)(A). period to each applicable individual to whom beneficiaries through the summary plan de- ‘‘(5) REGULATORY EXCEPTIONS.—The Sec- the transaction restriction period applies retary may provide by regulation for addi- scription or materials describing specific in- (and to each employee organization rep- tional exceptions to the requirements of this vestment alternatives under the plan.’’. resenting such applicable individuals). subsection which the Secretary determines (b) AMENDMENTS TO THE INTERNAL REVENUE ‘‘(2) UNDERSTANDABILITY.—The notice re- are in the interests of participants and bene- CODE OF 1986.— quired by paragraph (1) shall be written in a ficiaries. (1) EXCISE TAX ON FAILURE OF PENSION manner calculated to be understood by the ‘‘(6) GUIDANCE AND MODEL NOTICES.—The PLANS TO PROVIDE NOTICE OF TRANSACTION RE- average plan participant and shall provide Secretary shall issue guidance and model no- STRICTION PERIODS.— sufficient information (as determined in ac- tices which meet the requirements of this (A) IN GENERAL.—Chapter 43 of the Internal cordance with guidance provided by the Sec- subsection.’’. Revenue Code of 1986 (relating to qualified retary) to allow recipients to understand the (B) ISSUANCE OF INITIAL GUIDANCE AND pension, etc., plans) is amended by adding at timing and effect of such transaction restric- MODEL NOTICE.—The Secretary of Labor shall the end the following new section: tion period. H1224 CONGRESSIONAL RECORD — HOUSE April 11, 2002

‘‘(3) TIMING OF NOTICE.— in such plan, to obtain loans from such plan, RITIES.—In the case of the portion of the ac- ‘‘(A) IN GENERAL.—Except as provided in or to obtain distributions from such plan. count attributable to employee contribu- subparagraph (B), the notice required by ‘‘(C) SPECIAL RULE FOR EMPLOYER SECURI- tions and elective deferrals which is invested paragraph (1) shall be provided at least 30 TIES.—For purposes of this paragraph— in employer securities, a plan meets the re- days before the beginning of the transaction ‘‘(i) IN GENERAL.—In the case of rights re- quirements of this paragraph if each applica- restriction period. lating to directing investments out of em- ble individual may elect to direct the plan to ‘‘(B) DISPOSITION OF STOCK OR ASSETS.— ployer securities, such rights shall be treated divest any such securities in the individual’s ‘‘(i) IN GENERAL.—If, in connection with the as substantially reduced if such rights are account and to reinvest an equivalent major corporate disposition by a corporation significantly restricted for at least 3 con- amount in other investment options which maintaining an applicable pension plan, secutive business days. meet the requirements of paragraph (4). there is the possibility of a transaction re- ‘‘(ii) BUSINESS DAY.—For purposes of clause ‘‘(3) EMPLOYER CONTRIBUTIONS INVESTED IN striction period— (i), under regulations prescribed by the Sec- EMPLOYER SECURITIES.— ‘‘(I) the notice required by paragraph (1) retary, the term ‘business day’ means— ‘‘(A) IN GENERAL.—In the case of the por- shall be provided at least 30 days before the ‘‘(I) in the case of a security which is trad- tion of the account attributable to employer date of such disposition, and ed on an established security market, any contributions (other than elective deferrals ‘‘(II) no other notice shall be required by day on which such security may be traded on to which paragraph (2) applies) which is in- paragraph (1) with respect to such period if the principal securities market of such secu- vested in employer securities, a plan meets notice is provided pursuant to subclause (I) rity, and the requirements of this paragraph if, under and such period begins not more than 30 days ‘‘(II) in the case of a security which is not the plan— after the date of such disposition. traded on an established security market, ‘‘(i) each applicable individual with a ben- Subclause (I) shall not apply if the plan ad- any calendar day. efit based on 3 years of service may elect to ministrator has a substantial basis to believe ‘‘(iii) EMPLOYER SECURITIES.—For purposes direct the plan to divest any such securities that there will be no transaction restriction of this subparagraph, the term ‘employer se- in the individual’s account and to reinvest period in connection with the disposition. curities’ shall have the meaning given such an equivalent amount in other investment term by section 407(d)(1) of the Employee Re- options which meet the requirements of ‘‘(ii) MAJOR CORPORATE DISPOSITION.—For purposes of clause (i), the term ‘major cor- tirement Income Security Act of 1974. paragraph (4), or ‘‘(D) EXCEPTIONS.—Rights which are sub- ‘‘(ii) with respect to any employer security porate disposition’ means, with respect to a stantially reduced by reason of the applica- allocated to an applicable individual’s ac- corporation— tion of securities laws or other cir- count during any plan year, such applicable ‘‘(I) the disposition of substantially all of cumstances specified by the Secretary in individual may elect to direct the plan to di- the stock of such corporation or a subsidiary regulations shall not be taken into account vest such employer security after a date thereof, or for purposes of this paragraph.’’. which is not later than 3 years after the end ‘‘(II) the disposition of substantially all of (2) CLERICAL AMENDMENT.—The table of of such plan year and to reinvest an equiva- the assets used in a trade or business of such sections for chapter 43 of such Code is lent amount in other investment options corporation or subsidiary. amended by adding at the end the following which meet the requirements of paragraph ‘‘(iii) NONCORPORATE ENTITIES.—Rules simi- new item: (4). lar to the rules of this subparagraph shall ‘‘(B) APPLICABLE INDIVIDUAL WITH BENEFIT apply to entities that are not corporations. ‘‘Sec. 4980H. Failure of applicable plans to provide notice of transaction BASED ON 3 YEARS OF SERVICE.—For purposes ‘‘(4) FORM AND MANNER OF NOTICE.—The no- of subparagraph (A), an applicable individual restriction periods.’’. tice required by this subsection shall be in has a benefit based on 3 years of service if writing, except that such notice may be in (3) GUIDANCE.—The Secretary of the Treas- such individual would be an applicable indi- electronic or other form to the extent that ury, in consultation with the Secretary of vidual if only participants in the plan who such form is reasonably accessible to the ap- Labor, shall issue guidance in carrying out have completed at least 3 years of service (as plicable individual. section 4980H of the Internal Revenue Code determined under section 203(b)) were taken ‘‘(f ) DEFINITIONS AND SPECIAL RULES.—For of 1986 (as added by this section). Such into account under paragraph (6)(B)(i). purposes of this section— guidance— ‘‘(4) INVESTMENT OPTIONS.—The require- ‘‘(1) APPLICABLE INDIVIDUAL.—The term (A) in the case of a reduction of rights re- ments of this paragraph are met if— ‘applicable individual’ means— lating to the direction of investments out of ‘‘(A) the plan offers not less than 3 invest- ‘‘(A) any participant in the applicable pen- employer securities, shall be issued by No- ment options, other than employer securi- sion plan, and vember 1, 2002 (or, if later, the 60th day after ties, to which an applicable individual may ‘‘(B) any beneficiary who is an alternate the date of the enactment of this Act), and direct the proceeds from the divestment of payee (within the meaning of section (B) in any other case, shall be issued not employer securities pursuant to this sub- 414(p)(8)) under a qualified domestic rela- later than 120 days after the date of the en- section, each of which is diversified and has tions order (within the meaning of section actment of this Act. materially different risk and return charac- 414(p)(1)(A)), and SEC. 103. INFORMATIONAL AND EDUCATIONAL teristics, and ‘‘(C) any beneficiary of a deceased partici- SUPPORT FOR PENSION PLAN FIDU- ‘‘(B) the plan permits the applicable indi- pant or alternate payee. CIARIES. vidual to choose from any of the investment ‘‘(2) APPLICABLE PENSION PLAN.— Section 404 of the Employee Retirement options made available under the plan to ‘‘(A) IN GENERAL.—The term ‘applicable Income Security Act of 1974 (29 U.S.C. 1104) is which such proceeds may be so directed, sub- pension plan’ means— amended by adding at the end the following ject to such restrictions as may be provided ‘‘(i) a plan described in clause (i), (ii), or new subsection: by the plan limiting such choice to periodic, (iv) of section 219(g)(5)(A), and ‘‘(e) The Secretary shall establish a pro- reasonable opportunities occurring no less ‘‘(ii) an eligible deferred compensation gram under which information and edu- frequently than on a quarterly basis. cational resources shall be made available on plan (as defined in section 457(b)) of an eligi- ‘‘(5) DEFINITIONS AND RULES.—For purposes an ongoing basis to persons serving as fidu- ble employer described in section of this subsection— ciaries under employee pension benefit plans 457(e)(1)(A), ‘‘(A) APPLICABLE INDIVIDUAL ACCOUNT so as to assist such persons in diligently and which maintains accounts for participants PLAN.—The term ‘applicable individual ac- effectively carrying out their fiduciary du- under the plan or under which the accrued count plan’ means any individual account ties in accordance with this part.’’. benefit of any participant depends in whole plan, except that such term does not include SEC. 104. DIVERSIFICATION REQUIREMENTS FOR or in part on hypothetical investments di- DEFINED CONTRIBUTION PLANS an employee stock ownership plan (within rected by the participant. THAT HOLD EMPLOYER SECURITIES. the meaning of section 4975(e)(7) of the Inter- ‘‘(B) EXCEPTION.—Such term shall not in- (a) AMENDMENT TO THE EMPLOYEE RETIRE- nal Revenue Code of 1986) unless there are clude a one-participant retirement plan (as MENT INCOME SECURITY ACT OF 1974.—Section any contributions to such plan (or earnings defined in section 4980G(f)(3)). 204 of the Employee Retirement Income Se- thereon) held within such plan that are sub- ‘‘(3) TRANSACTION RESTRICTION PERIOD.— curity Act of 1974 (29 U.S.C. 1054) is ject to subsection (k)(3) or (m)(2) of section ‘‘(A) IN GENERAL.—The term ‘transaction amended— 401 of the Internal Revenue Code of 1986. restriction period’ means, with respect to an (1) by redesignating subsection (j) as sub- ‘‘(B) APPLICABLE INDIVIDUAL.—The term applicable pension plan, a period beginning section (k); and ‘applicable individual’ means— on a day in which there is a substantial re- (2) by inserting after subsection (i) the fol- ‘‘(i) any participant in the plan, and duction in rights described in subparagraph lowing new subsection: ‘‘(ii) any beneficiary of a participant re- (B) which are not restored as of the begin- ‘‘(j) DIVERSIFICATION REQUIREMENTS FOR IN- ferred to in clause (i) who has an account ning of the 3rd day following the day of such DIVIDUAL ACCOUNT PLANS THAT HOLD EM- under the plan with respect to which the reduction. PLOYER SECURITIES.— beneficiary is entitled to exercise the rights ‘‘(B) RIGHTS DESCRIBED.—For purposes of ‘‘(1) IN GENERAL.—An applicable individual of the participant. this paragraph, rights described in this sec- account plan shall meet the requirements of ‘‘(C) ELECTIVE DEFERRAL.—The term ‘elec- tion with respect to an applicable pension paragraphs (2) and (3). tive deferral’ means an employer contribu- plan are rights under such plan of 1 or more ‘‘(2) EMPLOYEE CONTRIBUTIONS AND ELEC- tion described in section 402(g)(3)(A) of the applicable individuals to direct investments TIVE DEFERRALS INVESTED IN EMPLOYER SECU- Internal Revenue Code of 1986 (as in effect on April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1225

the date of the enactment of this sub- ‘‘(A) IN GENERAL.—An applicable defined beneficiary is entitled to exercise the rights section). contribution plan shall meet the require- of the participant. ‘‘(D) EMPLOYER SECURITY.—The term ‘em- ments of subparagraphs (B) and (C). ‘‘(iii) ELECTIVE DEFERRAL.—The term ‘elec- ployer security’ shall have the meaning ‘‘(B) EMPLOYEE CONTRIBUTIONS AND ELEC- tive deferral’ means an employer contribu- given such term by section 407(d)(1) of this TIVE DEFERRALS INVESTED IN EMPLOYER SECU- tion described in section 402(g)(3)(A) (as in Act (as in effect on the date of the enact- RITIES.—In the case of the portion of the ac- effect on the date of the enactment of this ment of this subsection). count attributable to employee contribu- paragraph). ‘‘(E) EMPLOYEE STOCK OWNERSHIP PLAN.— tions and elective deferrals which is invested ‘‘(iv) EMPLOYER SECURITY.—The term ‘em- The term ‘employee stock ownership plan’ in employer securities, a plan meets the re- ployer security’ shall have the meaning shall have the same meaning given to such quirements of this subparagraph if each ap- given such term by section 407(d)(1) of the term by section 4975(e)(7) of the Internal plicable individual in such plan may elect to Employee Retirement Income Security Act Revenue Code of 1986 (as in effect on the date direct the plan to divest any such securities of 1974 (as in effect on the date of the enact- of the enactment of this subsection). in the individual’s account and to reinvest ment of this paragraph). ‘‘(F) ELECTIONS.—Elections under this sub- an equivalent amount in other investment ‘‘(v) EMPLOYEE STOCK OWNERSHIP PLAN.— section may be made not less frequently options which meet the requirements of sub- The term ‘employee stock ownership plan’ than quarterly. paragraph (D). shall have the same meaning given to such ‘‘(6) EXCEPTION WHERE THERE IS NO READILY ‘‘(C) EMPLOYER CONTRIBUTIONS INVESTED IN term by section 4975(e)(7) of the Internal TRADABLE STOCK .—This subsection shall not EMPLOYER SECURITIES.— Revenue Code of 1986 (as in effect on the date apply with respect to a plan if there is no ‘‘(i) IN GENERAL.—In the case of the portion of the enactment of this paragraph). class of stock issued by any employer main- of the account attributable to employer con- ‘‘(vi) ELECTIONS.—Elections under this taining the plan (or by a corporation which tributions (other than elective deferrals to paragraph may be made not less frequently is an affiliate of any such employer, as de- which subparagraph (B) applies) which is in- than quarterly. fined in section 407(d)(7) as in effect on the vested in employer securities, a plan meets ‘‘(F) EXCEPTION WHERE THERE IS NO READILY date of the enactment of this subsection) the requirements of this subparagraph if, TRADABLE STOCK.—This paragraph shall not that is readily tradable on an established se- under the plan— apply with respect to a plan if there is no curities market. ‘‘(I) each applicable individual with a ben- class of stock issued by any employer main- ‘‘(7) TRANSITION RULE.— efit based on 3 years of service may elect to taining the plan that is readily tradable on ‘‘(A) IN GENERAL.—In the case of any indi- direct the plan to divest any such securities an established securities market. vidual account plan which, on the first day in the individual’s account and to reinvest ‘‘(G) TRANSITION RULE.— of the first plan year to which this sub- an equivalent amount in other investment ‘‘(i) IN GENERAL.—In the case of any defined section applies, holds employer securities of options which meet the requirements of sub- contribution plan which, on the effective any class that were acquired before such paragraph (D), or date of this subsection, holds employer secu- date and on which there is a restriction on ‘‘(II) with respect to any employer security rities of any class that were acquired before diversification otherwise precluded by this allocated to an applicable individual’s ac- such date and on which there is a restriction subsection, this subsection shall apply to count during any plan year, such applicable on diversification otherwise precluded by such securities of such class held in any plan individual may elect to direct the plan to di- this paragraph, this paragraph shall apply to year only with respect to the number of such vest such employer security after a date such securities of such class held in any plan securities equal to the applicable percentage which is not later than 3 years after the end year only with respect to the number of such of the total number of such securities of such of such plan year and to reinvest an equiva- securities equal to the applicable percentage class held on such date. lent amount in other investment options of the total number of such securities of such ‘‘(B) APPLICABLE PERCENTAGE.—For pur- which meet the requirements of subpara- class held on such date. poses of subparagraph (A), the applicable graph (D). ‘‘(ii) APPLICABLE PERCENTAGE.—For pur- percentage shall be as follows: ‘‘(ii) APPLICABLE INDIVIDUAL WITH BENEFIT poses of clause (i), the applicable percentage ‘‘Plan years for which Applicable percentage: BASED ON 3 YEARS OF SERVICE.—For purposes shall be as follows: provisions are effec- of clause (i), an applicable individual has a ‘‘Plan years for which Applicable percentage: tive: benefit based on 3 years of service if such in- provisions are effec- 1st plan year ...... 20 percent. dividual would be an applicable individual if tive: 2nd plan year ...... 40 percent. 1st plan year ...... 20 percent. 3rd plan year ...... 60 percent. only participants in the plan who have com- 4th plan year ...... 80 percent. pleted at least 3 years of service (as deter- 2nd plan year ...... 40 percent. 5th plan year or thereafter. 100 percent. mined under section 411(a)) were taken into 3rd plan year ...... 60 percent. ‘‘(C) ELECTIVE DEFERRALS TREATED AS SEP- account under subparagraph (F)(ii)(I). 4th plan year ...... 80 percent. 5th plan year or thereafter. 100 percent. ARATE PLAN NOT INDIVIDUAL ACCOUNT PLAN.— ‘‘(D) INVESTMENT OPTIONS.—The require- For purposes of subparagraph (A), the appli- ments of this subparagraph are met if— ‘‘(iii) ELECTIVE DEFERRALS TREATED AS SEP- cable percentage shall be 100 percent with re- ‘‘(i) the plan offers not less than 3 invest- ARATE PLAN NOT INDIVIDUAL ACCOUNT PLAN.— spect to— ment options, other than employer securi- For purposes of clause (i), the applicable per- ‘‘(i) employee contributions to a plan ties, to which an applicable individual may centage shall be 100 percent with respect to— under which any portion attributable to direct the proceeds from the divestment of ‘‘(I) employee contributions to a plan elective deferrals is treated as a separate employer securities pursuant to this para- under which any portion attributable to plan under section 407(b)(2) as of the date of graph, each of which is diversified and has elective deferrals is treated as a separate the enactment of this paragraph, and materially different risk and return charac- plan under section 407(b)(2) of the Employee ‘‘(ii) such elective deferrals. teristics, and Retirement Income Security Act of 1974 as of ‘‘(D) COORDINATION WITH PRIOR ELECTIONS.— ‘‘(ii) the plan permits the applicable indi- the date of the enactment of this paragraph, In any case in which a divestiture of invest- vidual to choose from any of the investment and ment in employer securities of any class held options made available under the plan to ‘‘(II) such elective deferrals. by an employee stock ownership plan prior which such proceeds may be so directed, sub- ‘‘(iv) CONTRIBUTIONS HELD WITHIN AN to the effective date of this subsection was ject to such restrictions as may be provided ESOP.—In the case of contributions (other undertaken pursuant to other applicable by the plan limiting such choice to periodic, than elective deferrals and employee con- Federal law prior to such date, the applica- reasonable opportunities occurring no less tributions) held within an employee stock ble percentage (as determined without re- frequently than on a quarterly basis. ownership plan, in the case of the 1st and 2nd gard to this subparagraph) in connection ‘‘(E) DEFINITIONS AND RULES.—For purposes plan years referred to in the table in clause with such securities shall be reduced to the of this paragraph— (ii), the applicable percentage shall be the extent necessary to account for the amount ‘‘(i) APPLICABLE DEFINED CONTRIBUTION greater of the amount determined under to which such election applied. PLAN.—The term ‘applicable defined con- clause (ii) or the percentage determined ‘‘(8) REGULATIONS.—The Secretary of the tribution plan’ means any defined contribu- under paragraph (28) (determined as if para- Treasury shall prescribe regulations under tion plan, except that such term does not in- graph (28) applied to a plan described in this this subsection in consultation with the Sec- clude an employee stock ownership plan paragraph). retary of Labor.’’ (within the meaning of section 4975(e)(7)) un- ‘‘(v) COORDINATION WITH PRIOR ELECTIONS (b) AMENDMENTS TO THE INTERNAL REVENUE less there are any contributions to such plan UNDER PARAGRAPH (28).—In any case in which CODE OF 1986.— (or earnings thereon) held within such plan a divestiture of investment in employer se- (1) IN GENERAL.—Section 401(a) of the Inter- that are subject to subsection (k)(3) or curities of any class held by an employee nal Revenue Code of 1986 (relating to require- (m)(2). stock ownership plan prior to the effective ments for qualification) is amended by in- ‘‘(ii) APPLICABLE INDIVIDUAL.—The term date of this paragraph was undertaken pur- serting after paragraph (34) the following ‘applicable individual’ means— suant to an election under paragraph (28) new paragraph: ‘‘(I) any participant in the plan, and prior to such date, the applicable percentage ‘‘(35) DIVERSIFICATION REQUIREMENTS FOR ‘‘(II) any beneficiary of a participant re- (as determined without regard to this clause) DEFINED CONTRIBUTION PLANS THAT HOLD EM- ferred to in clause (i) who has an account in connection with such securities shall be PLOYER SECURITIES.— under the plan with respect to which the reduced to the extent necessary to account H1226 CONGRESSIONAL RECORD — HOUSE April 11, 2002 for the amount to which such election ap- benefit plan or a participant or beneficiary graph (1) to the plan, participant, or bene- plied. of an employee benefit plan by a fiduciary ficiary if, at any time during the provision of ‘‘(H) REGULATIONS.—The Secretary shall adviser with respect to the plan in connec- advisory services to the plan, participant, or prescribe regulations under this paragraph in tion with any sale, acquisition, or holding of beneficiary, the fiduciary adviser fails to consultation with the Secretary of Labor.’’. a security or other property for purposes of maintain the information described in (2) CONFORMING AMENDMENTS.— investment of amounts held by the plan, if— clauses (i) through (iv) of subparagraph (A) (A) Section 401(a)(28) of such Code is ‘‘(A) in the case of the initial provision of in currently accurate form and in the man- amended by adding at the end the following the advice with regard to the security or ner described in paragraph (2) or fails— new subparagraph: other property by the fiduciary adviser to ‘‘(A) to provide, without charge, such cur- ‘‘(D) APPLICATION.—This paragraph shall the plan, participant, or beneficiary, the fi- rently accurate information to the recipient not apply to a plan to which paragraph (35) duciary adviser provides to the recipient of of the advice no less than annually, applies.’’. the advice, at a time reasonably contem- ‘‘(B) to make such currently accurate in- (B) Section 409(h)(7) of such Code is amend- poraneous with the initial provision of the formation available, upon request and with- ed by inserting before the period at the end advice, a written notification (which may out charge, to the recipient of the advice, or ‘‘or subparagraph (B) or (C) of section consist of notification by means of elec- ‘‘(C) in the event of a material change to 401(a)(35)’’. tronic communication)— the information described in clauses (i) (C) Section 4980(c)(3)(A) of such Code is ‘‘(i) of all fees or other compensation relat- through (iv) of paragraph (1)(A), to provide, amended by striking ‘‘if—’’ and all that fol- ing to the advice that the fiduciary adviser without charge, such currently accurate in- lows and inserting ‘‘if the requirements of or any affiliate thereof is to receive (includ- formation to the recipient of the advice at a subparagraphs (B), (C), and (D) are met.’’. ing compensation provided by any third time reasonably contemporaneous to the ma- (c) EFFECTIVE DATE.— party) in connection with the provision of terial change in information. (1) IN GENERAL.—Except as provided in the advice or in connection with the sale, ac- ‘‘(4) MAINTENANCE FOR 6 YEARS OF EVIDENCE paragraph (2) and section 109, the amend- quisition, or holding of the security or other OF COMPLIANCE.—A fiduciary adviser referred ments made by this section shall apply to property, to in paragraph (1) who has provided advice plan years beginning after December 31, 2002, ‘‘(ii) of any material affiliation or contrac- referred to in such paragraph shall, for a pe- and with respect to employer securities allo- tual relationship of the fiduciary adviser or riod of not less than 6 years after the provi- cated to accounts before, on, or after the affiliates thereof in the security or other sion of the advice, maintain any records nec- date of the enactment of this Act. property, essary for determining whether the require- (2) EXCEPTION.—The amendments made by ‘‘(iii) of any limitation placed on the scope ments of the preceding provisions of this this section shall not apply to employer se- of the investment advice to be provided by subsection and of subsection (b)(14) have curities held by an employee stock owner- the fiduciary adviser with respect to any been met. A transaction prohibited under ship plan which are acquired before January such sale, acquisition, or holding of a secu- section 406 shall not be considered to have 1, 1987. rity or other property, occurred solely because the records are lost SEC. 105. PROHIBITED TRANSACTION EXEMP- ‘‘(iv) of the types of services provided by or destroyed prior to the end of the 6-year TION FOR THE PROVISION OF IN- the fiduciary adviser in connection with the period due to circumstances beyond the con- VESTMENT ADVICE. provision of investment advice by the fidu- trol of the fiduciary adviser. (a) AMENDMENTS TO THE EMPLOYEE RETIRE- ciary adviser, ‘‘(5) EXEMPTION FOR PLAN SPONSOR AND CER- MENT INCOME SECURITY ACT OF 1974.— ‘‘(v) that the adviser is acting as a fidu- TAIN OTHER FIDUCIARIES.— (1) EXEMPTION FROM PROHIBITED TRANS- ciary of the plan in connection with the pro- ‘‘(A) IN GENERAL.—Subject to subparagraph ACTIONS.—Section 408(b) of the Employee Re- vision of the advice, and (B), a plan sponsor or other person who is a tirement Income Security Act of 1974 (29 ‘‘(vi) that a recipient of the advice may fiduciary (other than a fiduciary adviser) U.S.C. 1108(b)) is amended by adding at the separately arrange for the provision of ad- shall not be treated as failing to meet the re- end the following new paragraph: vice by another adviser, that could have no quirements of this part solely by reason of ‘‘(14)(A) Any transaction described in sub- material affiliation with and receive no fees the provision of investment advice referred paragraph (B) in connection with the provi- or other compensation in connection with to in section 3(21)(A)(ii) (or solely by reason sion of investment advice described in sec- the security or other property, of contracting for or otherwise arranging for tion 3(21)(A)(ii), in any case in which— ‘‘(B) the fiduciary adviser provides appro- the provision of the advice), if— ‘‘(i) the investment of assets of the plan is priate disclosure, in connection with the ‘‘(i) the advice is provided by a fiduciary subject to the direction of plan participants sale, acquisition, or holding of the security adviser pursuant to an arrangement between or beneficiaries, or other property, in accordance with all ap- the plan sponsor or other fiduciary and the ‘‘(ii) the advice is provided to the plan or a plicable securities laws, fiduciary adviser for the provision by the fi- participant or beneficiary of the plan by a fi- ‘‘(C) the sale, acquisition, or holding oc- duciary adviser of investment advice re- duciary adviser in connection with any sale, curs solely at the direction of the recipient ferred to in such section, acquisition, or holding of a security or other of the advice, ‘‘(ii) the terms of the arrangement require property for purposes of investment of plan ‘‘(D) the compensation received by the fi- compliance by the fiduciary adviser with the assets, and duciary adviser and affiliates thereof in con- requirements of this subsection, and ‘‘(iii) the requirements of subsection (g) nection with the sale, acquisition, or holding ‘‘(iii) the terms of the arrangement include are met in connection with the provision of of the security or other property is reason- a written acknowledgment by the fiduciary the advice. able, and adviser that the fiduciary adviser is a fidu- ‘‘(B) The transactions described in this ‘‘(E) the terms of the sale, acquisition, or ciary of the plan with respect to the provi- subparagraph are the following: holding of the security or other property are sion of the advice. ‘‘(i) the provision of the advice to the plan, at least as favorable to the plan as an arm’s ‘‘(B) CONTINUED DUTY OF PRUDENT SELEC- participant, or beneficiary; length transaction would be. TION OF ADVISER AND PERIODIC REVIEW.—Noth- ‘‘(ii) the sale, acquisition, or holding of a ‘‘(2) STANDARDS FOR PRESENTATION OF IN- ing in subparagraph (A) shall be construed to security or other property (including any FORMATION.— exempt a plan sponsor or other person who is lending of money or other extension of credit ‘‘(A) IN GENERAL.—The notification re- a fiduciary from any requirement of this associated with the sale, acquisition, or quired to be provided to participants and part for the prudent selection and periodic holding of a security or other property) pur- beneficiaries under paragraph (1)(A) shall be review of a fiduciary adviser with whom the suant to the advice; and written in a clear and conspicuous manner plan sponsor or other person enters into an ‘‘(iii) the direct or indirect receipt of fees and in a manner calculated to be understood arrangement for the provision of advice re- or other compensation by the fiduciary ad- by the average plan participant and shall be ferred to in section 3(21)(A)(ii). The plan viser or an affiliate thereof (or any em- sufficiently accurate and comprehensive to sponsor or other person who is a fiduciary ployee, agent, or registered representative of reasonably apprise such participants and has no duty under this part to monitor the the fiduciary adviser or affiliate) in connec- beneficiaries of the information required to specific investment advice given by the fidu- tion with the provision of the advice or in be provided in the notification. ciary adviser to any particular recipient of connection with a sale, acquisition, or hold- ‘‘(B) MODEL FORM FOR DISCLOSURE OF FEES the advice. ing of a security or other property pursuant AND OTHER COMPENSATION.—The Secretary ‘‘(C) AVAILABILITY OF PLAN ASSETS FOR PAY- to the advice.’’. shall issue a model form for the disclosure of MENT FOR ADVICE.—Nothing in this part shall (2) REQUIREMENTS.—Section 408 of such Act fees and other compensation required in be construed to preclude the use of plan as- is amended further by adding at the end the paragraph (1)(A)(i) which meets the require- sets to pay for reasonable expenses in pro- following new subsection: ments of subparagraph (A). viding investment advice referred to in sec- ‘‘(g) REQUIREMENTS RELATING TO PROVISION ‘‘(3) EXEMPTION CONDITIONED ON MAKING RE- tion 3(21)(A)(ii). OF INVESTMENT ADVICE BY FIDUCIARY ADVIS- QUIRED INFORMATION AVAILABLE ANNUALLY, ON ‘‘(6) DEFINITIONS.—For purposes of this sub- ERS.— REQUEST, AND IN THE EVENT OF MATERIAL section and subsection (b)(14)— ‘‘(1) IN GENERAL.—The requirements of this CHANGE.—The requirements of paragraph ‘‘(A) FIDUCIARY ADVISER.—The term ‘fidu- subsection are met in connection with the (1)(A) shall be deemed not to have been met ciary adviser’ means, with respect to a plan, provision of investment advice referred to in in connection with the initial or any subse- a person who is a fiduciary of the plan by section 3(21)(A)(ii), provided to an employee quent provision of advice described in para- reason of the provision of investment advice April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1227 by the person to the plan or to a participant ‘‘(ii) the sale, acquisition, or holding of a a clear and conspicuous manner and in a or beneficiary and who is— security or other property (including any manner calculated to be understood by the ‘‘(i) registered as an investment adviser lending of money or other extension of credit average plan participant and shall be suffi- under the Investment Advisers Act of 1940 (15 associated with the sale, acquisition, or ciently accurate and comprehensive to rea- U.S.C. 80b–1 et seq.) or under the laws of the holding of a security or other property) pur- sonably apprise such participants and bene- State in which the fiduciary maintains its suant to the advice; and ficiaries of the information required to be principal office and place of business, ‘‘(iii) the direct or indirect receipt of fees provided in the notification. ‘‘(ii) a bank or similar financial institution or other compensation by the fiduciary ad- ‘‘(D) EXEMPTION CONDITIONED ON MAKING RE- referred to in section 408(b)(4), but only if the viser or an affiliate thereof (or any em- QUIRED INFORMATION AVAILABLE ANNUALLY, ON advice is provided through a trust depart- ployee, agent, or registered representative of REQUEST, AND IN THE EVENT OF MATERIAL ment of the bank or similar financial insti- the fiduciary adviser or affiliate) in connec- CHANGE.—The requirements of subparagraph tution which is subject to periodic examina- tion with the provision of the advice or in (B)(i) shall be deemed not to have been met tion and review by Federal or State banking connection with a sale, acquisition, or hold- in connection with the initial or any subse- authorities, ing of a security or other property pursuant quent provision of advice described in sub- ‘‘(iii) an insurance company qualified to do to the advice. paragraph (B) to the plan, participant, or business under the laws of a State, ‘‘(B) REQUIREMENTS RELATING TO PROVISION beneficiary if, at any time during the provi- ‘‘(iv) a person registered as a broker or OF INVESTMENT ADVICE BY FIDUCIARY ADVIS- sion of advisory services to the plan, partici- dealer under the Securities Exchange Act of ERS.—The requirements of this subparagraph pant, or beneficiary, the fiduciary adviser (referred to in subsection (d)(16)(C)) are met 1934 (15 U.S.C. 78a et seq.), fails to maintain the information described in connection with the provision of invest- ‘‘(v) an affiliate of a person described in in subclauses (I) through (IV) of subpara- ment advice referred to in subsection any of clauses (i) through (iv), or graph (B)(i) in currently accurate form and (e)(3)(B), provided to a plan or a participant ‘‘(vi) an employee, agent, or registered rep- in the manner required by subparagraph (C), or beneficiary of a plan by a fiduciary ad- resentative of a person described in any of or fails— viser with respect to the plan in connection clauses (i) through (v) who satisfies the re- ‘‘(i) to provide, without charge, such cur- with any sale, acquisition, or holding of a se- quirements of applicable insurance, banking, rently accurate information to the recipient and securities laws relating to the provision curity or other property for purposes of in- vestment of amounts held by the plan, if— of the advice no less than annually, of the advice. ‘‘(ii) to make such currently accurate in- ‘‘(B) AFFILIATE.—The term ‘affiliate’ of an- ‘‘(i) in the case of the initial provision of the advice with regard to the security or formation available, upon request and with- other entity means an affiliated person of out charge, to the recipient of the advice, or the entity (as defined in section 2(a)(3) of the other property by the fiduciary adviser to the plan, participant, or beneficiary, the fi- ‘‘(iii) in the event of a material change to Investment Company Act of 1940 (15 U.S.C. the information described in subclauses (I) 80a–2(a)(3))). duciary adviser provides to the recipient of the advice, at a time reasonably contem- through (IV) of subparagraph (B)(i), to pro- ‘‘(C) REGISTERED REPRESENTATIVE.—The vide, without charge, such currently accu- term ‘registered representative’ of another poraneous with the initial provision of the advice, a written notification (which may rate information to the recipient of the ad- entity means a person described in section vice at a time reasonably contemporaneous 3(a)(18) of the Securities Exchange Act of consist of notification by means of elec- tronic communication)— to the material change in information. 1934 (15 U.S.C. 78c(a)(18)) (substituting the ‘‘(I) of all fees or other compensation relat- ‘‘(E) MAINTENANCE FOR 6 YEARS OF EVIDENCE entity for the broker or dealer referred to in ing to the advice that the fiduciary adviser OF COMPLIANCE.—A fiduciary adviser referred such section) or a person described in section or any affiliate thereof is to receive (includ- to in subparagraph (B) who has provided ad- 202(a)(17) of the Investment Advisers Act of ing compensation provided by any third vice referred to in such subparagraph shall, 1940 (15 U.S.C. 80b–2(a)(17)) (substituting the party) in connection with the provision of for a period of not less than 6 years after the entity for the investment adviser referred to the advice or in connection with the sale, ac- provision of the advice, maintain any records in such section).’’. quisition, or holding of the security or other necessary for determining whether the re- (b) AMENDMENTS TO THE INTERNAL REVENUE property, quirements of the preceding provisions of CODE OF 1986.— ‘‘(II) of any material affiliation or contrac- this paragraph and of subsection (d)(16) have (1) EXEMPTION FROM PROHIBITED TRANS- tual relationship of the fiduciary adviser or been met. A transaction prohibited under ACTIONS.—Subsection (d) of section 4975 of affiliates thereof in the security or other subsection (c)(1) shall not be considered to the Internal Revenue Code of 1986 (relating property, have occurred solely because the records are to exemptions from tax on prohibited trans- ‘‘(III) of any limitation placed on the scope lost or destroyed prior to the end of the 6- actions) is amended— of the investment advice to be provided by year period due to circumstances beyond the (A) in paragraph (14), by striking ‘‘or’’ at the fiduciary adviser with respect to any control of the fiduciary adviser. the end; such sale, acquisition, or holding of a secu- ‘‘(F) EXEMPTION FOR PLAN SPONSOR AND (B) in paragraph (15), by striking the pe- rity or other property, CERTAIN OTHER FIDUCIARIES.—A plan sponsor riod at the end and inserting ‘‘;or’’; and ‘‘(IV) of the types of services provided by or other person who is a fiduciary (other (C) by adding at the end the following new the fiduciary adviser in connection with the than a fiduciary adviser) shall not be treated paragraph: provision of investment advice by the fidu- as failing to meet the requirements of this ‘‘(16) any transaction described in sub- ciary adviser, section solely by reason of the provision of section (f)(7)(A) in connection with the pro- ‘‘(V) that the adviser is acting as a fidu- investment advice referred to in subsection vision of investment advice described in sub- ciary of the plan in connection with the pro- (e)(3)(B) (or solely by reason of contracting section (e)(3)(B), in any case in which— vision of the advice, and for or otherwise arranging for the provision ‘‘(A) the investment of assets of the plan is ‘‘(VI) that a recipient of the advice may of the advice), if— subject to the direction of plan participants separately arrange for the provision of ad- ‘‘(i) the advice is provided by a fiduciary or beneficiaries, vice by another adviser, that could have no adviser pursuant to an arrangement between ‘‘(B) the advice is provided to the plan or a material affiliation with and receive no fees the plan sponsor or other fiduciary and the participant or beneficiary of the plan by a fi- or other compensation in connection with fiduciary adviser for the provision by the fi- duciary adviser in connection with any sale, the security or other property, duciary adviser of investment advice re- acquisition, or holding of a security or other ‘‘(ii) the fiduciary adviser provides appro- ferred to in such section, property for purposes of investment of plan priate disclosure, in connection with the ‘‘(ii) the terms of the arrangement require assets, and sale, acquisition, or holding of the security compliance by the fiduciary adviser with the ‘‘(C) the requirements of subsection or other property, in accordance with all ap- requirements of this paragraph, (f)(7)(B) are met in connection with the pro- plicable securities laws, ‘‘(iii) the terms of the arrangement include vision of the advice.’’. ‘‘(iii) the sale, acquisition, or holding oc- a written acknowledgment by the fiduciary (2) ALLOWED TRANSACTIONS AND REQUIRE- curs solely at the direction of the recipient adviser that the fiduciary adviser is a fidu- MENTS.—Subsection (f) of such section 4975 of the advice, ciary of the plan with respect to the provi- (relating to other definitions and special ‘‘(iv) the compensation received by the fi- sion of the advice, and rules) is amended by adding at the end the duciary adviser and affiliates thereof in con- ‘‘(iv) the requirements of part 4 of subtitle following new paragraph: nection with the sale, acquisition, or holding B of title I of the Employee Retirement In- ‘‘(7) PROVISIONS RELATING TO INVESTMENT of the security or other property is reason- come Security Act of 1974 are met in connec- ADVICE PROVIDED BY FIDUCIARY ADVISERS.— able, and tion with the provision of such advice. ‘‘(A) TRANSACTIONS ALLOWABLE IN CONNEC- ‘‘(v) the terms of the sale, acquisition, or ‘‘(G) DEFINITIONS.—For purposes of this TION WITH INVESTMENT ADVICE PROVIDED BY holding of the security or other property are paragraph and subsection (d)(16)— FIDUCIARY ADVISERS.—The transactions re- at least as favorable to the plan as an arm’s ‘‘(i) FIDUCIARY ADVISER.—The term ‘fidu- ferred to in subsection (d)(16), in connection length transaction would be. ciary adviser’ means, with respect to a plan, with the provision of investment advice by a ‘‘(C) STANDARDS FOR PRESENTATION OF IN- a person who is a fiduciary of the plan by fiduciary adviser, are the following: FORMATION.—The notification required to be reason of the provision of investment advice ‘‘(i) the provision of the advice to the plan, provided to participants and beneficiaries by the person to the plan or to a participant participant, or beneficiary; under subparagraph (B)(i) shall be written in or beneficiary and who is— H1228 CONGRESSIONAL RECORD — HOUSE April 11, 2002 ‘‘(I) registered as an investment adviser tion, together with any recommendations for (d) As used in this section: under the Investment Advisers Act of 1940 (15 legislative changes, to the Committee on (1) BENEFICIAL OWNER.—The term ‘‘bene- U.S.C. 80b–1 et seq.) or under the laws of the Education and the Workforce of the House of ficial owner’’ has the meaning provided such State in which the fiduciary maintains its Representatives and the Committee on term in rules or regulations issued by the principal office and place of business, Health, Education, Labor, and Pensions of Commission under section 16 of the Securi- ‘‘(II) a bank or similar financial institution the Senate. ties Exchange Act of 1934 (15 U.S.C. 78p). referred to in subsection (d)(4), but only if SEC. 107. TREATMENT OF QUALIFIED RETIRE- (2) BLACKOUT PERIOD.—The term ‘‘blackout the advice is provided through a trust de- MENT PLANNING SERVICES. period’’ with respect to the equity securities partment of the bank or similar financial in- (a) IN GENERAL.—Subsection (m) of section of any issuer— stitution which is subject to periodic exam- 132 of the Internal Revenue Code of 1986 (de- (A) means any period during which the ination and review by Federal or State bank- fining qualified retirement services) is ability of at least fifty percent of the partici- ing authorities, amended by adding at the end the following pants or beneficiaries under all applicable in- ‘‘(III) an insurance company qualified to do new paragraph: dividual account plans maintained by the business under the laws of a State, ‘‘(4) NO CONSTRUCTIVE RECEIPT.—No amount issuer to purchase (or otherwise acquire) or ‘‘(IV) a person registered as a broker or shall be included in the gross income of any sell (or otherwise transfer) an interest in any dealer under the Securities Exchange Act of employee solely because the employee may equity of such issuer is suspended by the 1934 (15 U.S.C. 78a et seq.), choose between any qualified retirement issuer or a fiduciary of the plan; but ‘‘(V) an affiliate of a person described in planning services provided by a qualified in- (B) does not include— any of subclauses (I) through (IV), or vestment advisor and compensation which (i) a period in which the employees of an ‘‘(VI) an employee, agent, or registered would otherwise be includible in the gross in- issuer may not allocate their interests in the representative of a person described in any of come of such employee. The preceding sen- individual account plan due to an express in- subclauses (I) through (V) who satisfies the tence shall apply to highly compensated em- vestment restriction— requirements of applicable insurance, bank- ployees only if the choice described in such (I) incorporated into the individual ac- ing, and securities laws relating to the provi- sentence is available on substantially the count plan; and sion of the advice. same terms to each member of the group of (II) timely disclosed to employees before ‘‘(ii) AFFILIATE.—The term ‘affiliate’ of an- employees normally provided education and joining the individual account plan or as a other entity means an affiliated person of information regarding the employer’s quali- subsequent amendment to the plan; the entity (as defined in section 2(a)(3) of the fied employer plan.’’. (ii) any suspension described in subpara- Investment Company Act of 1940 (15 U.S.C. (b) CONFORMING AMENDMENTS.— graph (A) that is imposed solely in connec- 80a–2(a)(3))). (1) Section 403(b)(3)(B) of such Code is tion with persons becoming participants or amended by inserting ‘‘132(m)(4),’’ after ‘‘(iii) REGISTERED REPRESENTATIVE.—The beneficiaries, or ceasing to be participants or term ‘registered representative’ of another ‘‘132(f)(4),’’. beneficiaries, in an applicable individual ac- entity means a person described in section (2) Section 414(s)(2) of such Code is amend- count plan by reason of a corporate merger, 3(a)(18) of the Securities Exchange Act of ed by inserting ‘‘132(m)(4),’’ after ‘‘132(f)(4),’’. acquisition, divestiture, or similar trans- 1934 (15 U.S.C. 78c(a)(18)) (substituting the (3) Section 415(c)(3)(D)(ii) of such Code is action. amended by inserting ‘‘132(m)(4),’’ after entity for the broker or dealer referred to in (3) COMMISSION.—The term ‘‘Commission’’ such section) or a person described in section ‘‘132(f)(4),’’. means the Securities and Exchange Commis- (c) EFFECTIVE DATE.—The amendment 202(a)(17) of the Investment Advisers Act of sion. made by this section shall apply to taxable 1940 (15 U.S.C. 80b–2(a)(17)) (substituting the (4) INDIVIDUAL ACCOUNT PLAN.—The term years beginning after December 31, 2002. entity for the investment adviser referred to ‘‘individual account plan’’ has the meaning SEC. 108. INSIDER TRADES DURING PENSION in such section).’’. FUND BLACKOUT PERIODS PROHIB- provided such term in section 3(34) of the SEC. 106. STUDY REGARDING IMPACT ON RETIRE- ITED. Employee Retirement Income Security Act MENT SAVINGS OF PARTICIPANTS (a) PROHIBITION.—It shall be unlawful for of 1974 (29 U.S.C. 1002(34)). AND BENEFICIARIES BY REQUIRING any person who is directly or indirectly the (5) ISSUER.—The term ‘‘issuer’’ shall have CONSULTANTS TO ADVISE PLAN FI- beneficial owner of more than 10 percent of the meaning set forth in section 2(a)(4) of the DUCIARIES OF INDIVIDUAL AC- Securities Act of 1933 (15 U.S.C. 77b(a)(4)). COUNT PLANS. any class of any equity security (other than an exempted security) which is registered (a) STUDY.—As soon as practicable after SEC. 109. EFFECTIVE DATES OF TITLE AND RE- the date of the enactment of this Act, the under section 12 of the Securities Exchange LATED RULES. Secretary of Labor shall undertake a study Act of 1934 (15 U.S.C. 78l) or who is a director (a) IN GENERAL.—Except as otherwise pro- of the costs and benefits to participants and or an officer of the issuer of such security, beneficiaries of requiring independent con- directly or indirectly, to purchase (or other- vided in this title or in subsection (b), the sultants to advise plan fiduciaries in connec- wise acquire) or sell (or otherwise transfer) amendments made by this title shall apply tion with individual account plans. In con- any equity security of any issuer (other than with respect to plan years beginning on or ducting such study, the Secretary shall an exempted security), during any blackout after January 1, 2003. period with respect to such equity security. consider— (b) SPECIAL RULE FOR COLLECTIVELY BAR- (b) REMEDY.—Any profit realized by such (1) the benefits to plan participants and beneficial owner, director, or officer from GAINED PLANS.—In the case of a plan main- beneficiaries of engaging independent advis- any purchase (or other acquisition) or sale tained pursuant to 1 or more collective bar- ers to provide investment and other advice (or other transfer) in violation of this sec- gaining agreements between employee rep- regarding the assets of the plan to persons tion shall inure to and be recoverable by the resentatives and 1 or more employers rati- who have fiduciary duties with respect to the issuer irrespective of any intention on the fied on or before the date of the enactment of management or disposition of such assets, part of such beneficial owner, director, or of- this Act, subsection (a) shall be applied to (2) the extent to which independent advis- ficer in entering into the transaction. Suit benefits pursuant to, and individuals covered ers are currently retained by plan fidu- to recover such profit may be instituted at by, any such agreement by substituting for ciaries, law or in equity in any court of competent ‘‘January 1, 2003’’ the date of the commence- (3) the availability of assistance to fidu- jurisdiction by the issuer, or by the owner of ment of the first plan year beginning on or ciaries from appropriate Federal agencies, any security of the issuer in the name and in after the earlier of— (4) the availability of qualified independent behalf of the issuer if the issuer shall fail or (1) the later of— consultants to serve the needs of individual refuse to bring such suit within 60 days after (A) January 1, 2004, or account plan fiduciaries in the United request or shall fail diligently to prosecute (B) the date on which the last of such col- States, the same thereafter; but no such suit shall lective bargaining agreements terminates (5) the impact of the additional fiduciary be brought more than 2 years after the date (determined without regard to any extension duty of an independent advisor on the strict such profit was realized. This subsection thereof after the date of the enactment of fiduciary obligations of plan fiduciaries, shall not be construed to cover any trans- this Act), or (6) the impact of new requirements (con- action where such beneficial owner was not (2) January 1, 2005. sulting fees, reporting requirements, and such both at the time of the purchase and new plan duties to prudently identify and sale, or the sale and purchase, of the security (c) PLAN AMENDMENTS.—If the amendments contract with qualified independent consult- or security-based swap (as defined in section made by sections 101, 102, 103, and 104 of this ants) on the availability of individual ac- 206B of the Gramm-Leach-Bliley Act) in- Act require an amendment to any plan, such count plans, and volved, or any transaction or transactions plan amendment shall not be required to be (7) the impact of a new requirement on the which the Commission by rules and regula- made before the first plan year beginning on plan administration costs per participant for tions may exempt as not comprehended or after January 1, 2005, if— small and mid-size employers and the pen- within the purposes of this subsection. (1) during the period after such amend- sion plans they sponsor. (c) RULEMAKING PERMITTED.—The Commis- ments made by such sections take effect and (b) REPORT.—Not later than 1 year after sion may issue rules to clarify the applica- before such first plan year, the plan is oper- the date of the enactment of this Act, the tion of this subsection, to ensure adequate ated in accordance with the requirements of Secretary of Labor shall report the results of notice to all persons affected by this sub- such amendments made by such sections, the study undertaken pursuant to this sec- section, and to prevent evasion thereof. and April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1229 (2) such plan amendment applies retro- have the respective meanings given such ‘‘(D) In the case that the plan fails to meet actively to the period after such amend- terms by such section. the requirements of subparagraphs (A), (B) ments made by such sections take effect and (4) EFFECTIVE DATE.—The provisions of this and (C), the plan— before such first plan year. subsection shall apply to plan years begin- ‘‘(i) satisfies subparagraph (B), as in effect (d) AMENDMENTS RELATING TO INVESTMENT ning on or after January 1, 2002. immediately before the enactment of the ADVICE.—The amendments made by section (b) SIMPLIFIED ANNUAL FILING REQUIRE- Tax Reform Act of 1986, 104 shall apply with respect to advice re- MENT FOR PLANS WITH FEWER THAN 25 EM- ‘‘(ii) is submitted to the Secretary for a de- ferred to in section 3(21)(A)(ii) of the Em- PLOYEES.—In the case of plan years begin- termination of whether it satisfies the re- ployee Retirement Income Security Act of ning after December 31, 2003, the Secretary quirement described in clause (i), and 1974 or section 4975(c)(3)(B) of the Internal of the Treasury and the Secretary of Labor ‘‘(iii) satisfies conditions prescribed by the Revenue Code of 1986 provided on or after shall provide for the filing of a simplified an- Secretary by regulation that appropriately January 1, 2003. nual return for any retirement plan which limit the availability of this subparagraph. TITLE II—OTHER PROVISIONS RELATING covers less than 25 employees on the first Clause (ii) shall apply only to the extent pro- TO PENSIONS day of a plan year and which meets the re- vided by the Secretary.’’. SEC. 201. AMENDMENTS TO RETIREMENT PRO- quirements described in subparagraphs (B), (2) EFFECTIVE DATES.— TECTION ACT OF 1994. (D), and (E) of subsection (a)(2). (A) IN GENERAL.—The amendment made by (a) TRANSITION RULE MADE PERMANENT.— SEC. 203. IMPROVEMENT OF EMPLOYEE PLANS paragraph (1) shall apply to years beginning Paragraph (1) of section 769(c) of the Retire- COMPLIANCE RESOLUTION SYSTEM. after December 31, 2003. ment Protection Act of 1994 is amended— The Secretary of the Treasury shall con- (B) CONDITIONS OF AVAILABILITY.—Any con- (1) by striking ‘‘transition’’ each place it tinue to update and improve the Employee dition of availability prescribed by the Sec- appears in the heading and the text, and Plans Compliance Resolution System (or any retary under regulations prescribed by the (2) by striking ‘‘for any plan year begin- successor program) giving special attention Secretary under section 410(b)(1)(D) of the ning after 1996 and before 2010’’. to— Internal Revenue Code of 1986 shall not apply (b) SPECIAL RULES.—Paragraph (2) of sec- (1) increasing the awareness and knowledge before the first year beginning not less than tion 769(c) of the Retirement Protection Act of small employers concerning the avail- 120 days after the date on which such condi- of 1994 is amended to read as follows: ability and use of the program; tion is prescribed. ‘‘(2) SPECIAL RULES.—The rules described in (2) taking into account special concerns (c) LINE OF BUSINESS RULES.—The Sec- this paragraph are as follows: and circumstances that small employers face retary of the Treasury shall, on or before De- ‘‘(A) For purposes of section 412(l)(9)(A) of with respect to compliance and correction of cember 31, 2003, modify the existing regula- the Internal Revenue Code of 1986 and sec- compliance failures; tions issued under section 414(r) of the Inter- tion 302(d)(9)(A) of the Employee Retirement (3) extending the duration of the self-cor- nal Revenue Code of 1986 in order to expand Income Security Act of 1974, the funded cur- rection period under the Self-Correction Pro- (to the extent that the Secretary determines rent liability percentage for any plan year gram for significant compliance failures; appropriate) the ability of a pension plan to shall be treated as not less than 90 percent. (4) expanding the availability to correct in- demonstrate compliance with the line of ‘‘(B) For purposes of section 412(m) of the significant compliance failures under the business requirements based upon the facts Internal Revenue Code of 1986 and section Self-Correction Program during audit; and and circumstances surrounding the design 302(e) of the Employee Retirement Income (5) assuring that any tax, penalty, or sanc- and operation of the plan, even though the Security Act of 1974, the funded current li- tion that is imposed by reason of a compli- plan is unable to satisfy the mechanical ability percentage for any plan year shall be ance failure is not excessive and bears a rea- tests currently used to determine compli- treated as not less than 100 percent. sonable relationship to the nature, extent, ance. ‘‘(C) For purposes of determining unfunded and severity of the failure. SEC. 205. EXTENSION TO ALL GOVERNMENTAL vested benefits under section 4006(a)(3)(E)(iii) The Secretary of the Treasury shall have full PLANS OF MORATORIUM ON APPLI- of the Employee Retirement Income Secu- authority to effectuate the foregoing with CATION OF CERTAIN NON- rity Act of 1974, the mortality table shall be respect to the Employee Plans Compliance DISCRIMINATION RULES APPLICA- the mortality table used by the plan.’’. Resolution System (or any successor pro- BLE TO STATE AND LOCAL PLANS. (c) EFFECTIVE DATE.—The amendments gram) and any other employee plans correc- (a) IN GENERAL.— made by this section shall apply to plan tion policies, including the authority to (1) Subparagraph (G) of section 401(a)(5) of years beginning after December 31, 2001. waive income, excise, or other taxes to en- the Internal Revenue Code of 1986 and sub- SEC. 202. REPORTING SIMPLIFICATION. sure that any tax, penalty, or sanction is not paragraph (H) of section 401(a)(26) of such (a) SIMPLIFIED ANNUAL FILING REQUIRE- excessive and bears a reasonable relationship Code are each amended by striking ‘‘section MENT FOR OWNERS AND THEIR SPOUSES.— to the nature, extent, and severity of the 414(d))’’ and all that follows and inserting (1) IN GENERAL.—The Secretary of the failure. ‘‘section 414(d)).’’. (2) Subparagraph (G) of section 401(k)(3) of Treasury and the Secretary of Labor shall SEC. 204. FLEXIBILITY IN NONDISCRIMINATION, modify the requirements for filing annual re- COVERAGE, AND LINE OF BUSINESS the Internal Revenue Code of 1986 and para- turns with respect to one-participant retire- RULES. graph (2) of section 1505(d) of the Taxpayer ment plans to ensure that such plans with (a) NONDISCRIMINATION.— Relief Act of 1997 are each amended by strik- assets of $250,000 or less as of the close of the (1) IN GENERAL.—The Secretary of the ing ‘‘maintained by a State or local govern- plan year need not file a return for that year. Treasury shall, by regulation, provide that a ment or political subdivision thereof (or (2) ONE-PARTICIPANT RETIREMENT PLAN DE- plan shall be deemed to satisfy the require- agency or instrumentality thereof)’’. FINED.—For purposes of this subsection, the ments of section 401(a)(4) of the Internal (b) CONFORMING AMENDMENTS.— term ‘‘one-participant retirement plan’’ Revenue Code of 1986 if such plan satisfies (1) The heading for subparagraph (G) of means a retirement plan that— the facts and circumstances test under sec- section 401(a)(5) of such Code is amended to (A) on the first day of the plan year— tion 401(a)(4) of such Code, as in effect before read as follows: ‘‘GOVERNMENTAL PLANS.—’’. (i) covered only the employer (and the em- January 1, 1994, but only if— (2) The heading for subparagraph (H) of ployer’s spouse) and the employer owned the (A) the plan satisfies conditions prescribed section 401(a)(26) of such Code is amended to entire business (whether or not incor- by the Secretary to appropriately limit the read as follows: ‘‘EXCEPTION FOR GOVERN- porated); or availability of such test; and MENTAL PLANS.—’’. (ii) covered only one or more partners (and (B) the plan is submitted to the Secretary (3) Subparagraph (G) of section 401(k)(3) of their spouses) in a business partnership (in- for a determination of whether it satisfies such Code is amended by inserting ‘‘GOVERN- cluding partners in an S or C corporation); such test. MENTAL PLANS.—’’ after ‘‘(G)’’. (B) meets the minimum coverage require- Subparagraph (B) shall only apply to the ex- (c) EFFECTIVE DATE.—The amendments ments of section 410(b) of the Internal Rev- tent provided by the Secretary. made by this section shall apply to years be- enue Code of 1986 without being combined (2) EFFECTIVE DATES.— ginning after December 31, 2002. with any other plan of the business that cov- (A) REGULATIONS.—The regulation required SEC. 206. NOTICE AND CONSENT PERIOD RE- ers the employees of the business; by paragraph (1) shall apply to years begin- GARDING DISTRIBUTIONS. (C) does not provide benefits to anyone ex- ning after December 31, 2003. (a) EXPANSION OF PERIOD.— cept the employer (and the employer’s (B) CONDITIONS OF AVAILABILITY.—Any con- (1) AMENDMENT OF INTERNAL REVENUE spouse) or the partners (and their spouses); dition of availability prescribed by the Sec- CODE.— (D) does not cover a business that is a retary under paragraph (1)(A) shall not apply (A) IN GENERAL.—Subparagraph (A) of sec- member of an affiliated service group, a con- before the first year beginning not less than tion 417(a)(6) of the Internal Revenue Code of trolled group of corporations, or a group of 120 days after the date on which such condi- 1986 is amended by striking ‘‘90-day’’ and in- businesses under common control; and tion is prescribed. serting ‘‘180-day’’. (E) does not cover a business that leases (b) COVERAGE TEST.— (B) MODIFICATION OF REGULATIONS.—The employees. (1) IN GENERAL.—Section 410(b)(1) of the In- Secretary of the Treasury shall modify the (3) OTHER DEFINITIONS.—Terms used in ternal Revenue Code of 1986 (relating to min- regulations under sections 402(f), 411(a)(11), paragraph (2) which are also used in section imum coverage requirements) is amended by and 417 of the Internal Revenue Code of 1986 414 of the Internal Revenue Code of 1986 shall adding at the end the following: to substitute ‘‘180 days’’ for ‘‘90 days’’ each H1230 CONGRESSIONAL RECORD — HOUSE April 11, 2002 place it appears in Treasury Regulations sec- ‘‘(F) the Chairman and Ranking Member of private contributions accepted in connection tions 1.402(f)–1, 1.411(a)–11(c), and 1.417(e)– the Subcommittee on Labor, Health and with the National Summit prior to using 1(b). Human Services, and Education of the Com- funds appropriated for purposes of the Na- (2) AMENDMENT OF ERISA.— mittee on Appropriations of the House of tional Summit pursuant to this paragraph.’’; (A) IN GENERAL.—Section 205(c)(7)(A) of the Representatives and the Chairman and and Employee Retirement Income Security Act Ranking Member of the Subcommittee on (9) in subsection (k)— of 1974 (29 U.S.C. 1055(c)(7)(A)) is amended by Labor, Health and Human Services, and Edu- (A) by striking ‘‘shall enter into a contract striking ‘‘90-day’’ and inserting ‘‘180-day’’. cation of the Committee on Appropriations on a sole-source basis’’ and inserting ‘‘may (B) MODIFICATION OF REGULATIONS.—The of the Senate;’’; enter into a contract on a sole-source basis’’; Secretary of the Treasury shall modify the (C) by redesignating subparagraph (G) as and regulations under part 2 of subtitle B of title subparagraph (J); and (B) by striking ‘‘in fiscal year 1998’’. I of the Employee Retirement Income Secu- (D) by inserting after subparagraph (F) the SEC. 209. MISSING PARTICIPANTS. rity Act of 1974 to the extent that they relate following new subparagraphs: to sections 203(e) and 205 of such Act to sub- ‘‘(G) the Chairman and Ranking Member of (a) IN GENERAL.—Section 4050 of the Em- stitute ‘‘180 days’’ for ‘‘90 days’’ each place it the Committee on Finance of the Senate; ployee Retirement Income Security Act of appears. ‘‘(H) the Chairman and Ranking Member of 1974 (29 U.S.C. 1350) is amended by redesig- (3) EFFECTIVE DATE.—The amendments the Committee on Ways and Means of the nating subsection (c) as subsection (e) and by made by paragraphs (1)(A) and (2)(A) and the House of Representatives; inserting after subsection (b) the following modifications required by paragraphs (1)(B) ‘‘(I) the Chairman and Ranking Member of new subsections: the Subcommittee on Employer-Employee and (2)(B) shall apply to years beginning ‘‘(c) MULTIEMPLOYER PLANS.—The corpora- Relations of the Committee on Education after December 31, 2002. tion shall prescribe rules similar to the rules and the Workforce of the House of Rep- (b) CONSENT REGULATION INAPPLICABLE TO in subsection (a) for multiemployer plans resentatives; and’’; CERTAIN DISTRIBUTIONS.— covered by this title that terminate under (4) in subsection (e)(3)— (1) IN GENERAL.—The Secretary of the section 4041A. Treasury shall modify the regulations under (A) by striking ‘‘There shall be not more section 411(a)(11) of the Internal Revenue than 200 additional participants.’’ in sub- ‘‘(d) PLANS NOT OTHERWISE SUBJECT TO Code of 1986 and under section 205 of the Em- paragraph (A) and inserting ‘‘The partici- TITLE.— ployee Retirement Income Security Act of pants in the National Summit shall also in- ‘‘(1) TRANSFER TO CORPORATION.—The plan 1974 to provide that the description of a par- clude additional participants appointed administrator of a plan described in para- ticipant’s right, if any, to defer receipt of a under this subparagraph.’’; graph (4) may elect to transfer a missing par- distribution shall also describe the con- (B) by striking ‘‘one-half shall be ap- ticipant’s benefits to the corporation upon sequences of failing to defer such receipt. pointed by the President,’’ in subparagraph termination of the plan. (A)(i) and inserting ‘‘not more than 100 par- ‘‘(2) INFORMATION TO THE CORPORATION.—To (2) EFFECTIVE DATE.— ticipants shall be appointed under this the extent provided in regulations, the plan (A) IN GENERAL.—The modifications re- quired by paragraph (1) shall apply to years clause by the President,’’; administrator of a plan described in para- beginning after December 31, 2002. (C) by striking ‘‘one-half shall be appointed graph (4) shall, upon termination of the plan, by the elected leaders of Congress’’ in sub- provide the corporation information with re- (B) REASONABLE NOTICE.—In the case of any description of such consequences made be- paragraph (A)(ii) and inserting ‘‘not more spect to benefits of a missing participant if than 100 participants shall be appointed fore the date that is 90 days after the date on the plan transfers such benefits— under this clause by the elected leaders of which the Secretary of the Treasury issues a ‘‘(A) to the corporation, or Congress’’; safe harbor description under paragraph (1), ‘‘(B) to an entity other than the corpora- (D) by redesignating subparagraph (B) as a plan shall not be treated as failing to sat- tion or a plan described in paragraph subparagraph (C); and isfy the requirements of section 411(a)(11) of (4)(B)(ii). (E) by inserting after subparagraph (A) the such Code or section 205 of such Act by rea- ‘‘(3) PAYMENT BY THE CORPORATION.—If ben- following new subparagraph: son of the failure to provide the information efits of a missing participant were trans- ‘‘(B) PRESIDENTIAL AUTHORITY FOR ADDI- required by the modifications made under ferred to the corporation under paragraph TIONAL APPOINTMENTS.—The President, in paragraph (1) if the Administrator of such (1), the corporation shall, upon location of consultation with the elected leaders of Con- the participant or beneficiary, pay to the plan makes a reasonable attempt to comply gress referred to in subsection (a), may ap- with such requirements. participant or beneficiary the amount trans- point under this subparagraph additional ferred (or the appropriate survivor benefit) SEC. 207. ANNUAL REPORT DISSEMINATION. participants to the National Summit. The either— (a) REPORT AVAILABLE THROUGH ELEC- number of such additional participants ap- ‘‘(A) in a single sum (plus interest), or TRONIC MEANS.—Section 104(b)(3) of the Em- pointed under this subparagraph may not ex- ‘‘(B) in such other form as is specified in ployee Retirement Income Security Act of ceed the lesser of 3 percent of the total num- regulations of the corporation. 1974 (29 U.S.C. 1024(b)(3)) is amended by add- ber of all additional participants appointed ‘‘(4) PLANS DESCRIBED.—A plan is described ing at the end the following new sentence: under this paragraph, or 10. Such additional in this paragraph if— ‘‘The requirement to furnish information participants shall be appointed from persons ‘‘(A) the plan is a pension plan (within the under the previous sentence with respect to nominated by an organization referred to in meaning of section 3(2))— an employee pension benefit plan shall be subsection (b) which is made up of private ‘‘(i) to which the provisions of this section satisfied if the administrator makes such in- sector businesses and associations partnered do not apply (without regard to this sub- formation reasonably available through elec- with Government entities to promote long section), and tronic means or other new technology.’’. term financial security in retirement ‘‘(ii) which is not a plan described in para- (b) EFFECTIVE DATE.—The amendment through savings and with which the Sec- graphs (2) through (11) of section 4021(b), and made by this section shall apply to reports retary is required thereunder to consult and ‘‘(B) at the time the assets are to be dis- for years beginning after December 31, 2002. cooperate and shall not be Federal, State, or tributed upon termination, the plan— SEC. 208. TECHNICAL CORRECTIONS TO SAVER local government employees.’’; ‘‘(i) has missing participants, and ACT. (5) in subsection (e)(3)(C) (as redesignated), ‘‘(ii) has not provided for the transfer of as- Section 517 of the Employee Retirement by striking ‘‘January 31, 1998’’ and inserting sets to pay the benefits of all missing par- Income Security Act of 1974 (29 U.S.C. 1147) is ‘‘3 months before the convening of each sum- ticipants to another pension plan (within the amended— mit;’’ meaning of section 3(2)). (1) in subsection (a), by striking ‘‘2001 and (6) in subsection (f)(1)(C), by inserting ‘‘(5) CERTAIN PROVISIONS NOT TO APPLY.— 2005 on or after September 1 of each year in- ‘‘, no later than 90 days prior to the date of Subsections (a)(1) and (a)(3) shall not apply volved’’ and inserting ‘‘2002, 2006, and 2010’’; the commencement of the National Sum- to a plan described in paragraph (4).’’. (2) in subsection (b), by adding at the end mit,’’ after ‘‘comment’’; the following new sentence: ‘‘To effectuate (7) in subsection (g), by inserting ‘‘, in con- (b) CONFORMING AMENDMENTS.—Section the purposes of this paragraph, the Secretary sultation with the congressional leaders 206(f) of such Act (29 U.S.C. 1056(f)) is may enter into a cooperative agreement, specified in subsection (e)(2),’’ after ‘‘report’’ amended— pursuant to the Federal Grant and Coopera- the first place it appears; (1) by striking ‘‘title IV’’ and inserting tive Agreement Act of 1977 (31 U.S.C. 6301 et (8) in subsection (i)— ‘‘section 4050’’; and seq.), with any appropriate, qualified enti- (A) by striking ‘‘for fiscal years beginning (2) by striking ‘‘the plan shall provide ty.’’; on or after October 1, 1997,’’; and that,’’. (3) in subsection (e)(2)— (B) by adding at the end the following new (c) EFFECTIVE DATE.—The amendment (A) by striking ‘‘Committee on Labor and paragraph: made by this section shall apply to distribu- Human Resources’’ in subparagraph (D) and ‘‘(3) RECEPTION AND REPRESENTATION AU- tions made after final regulations imple- inserting ‘‘Committee on Health, Education, THORITY.—The Secretary is hereby granted menting subsections (c) and (d) of section Labor, and Pensions’’; reception and representation authority lim- 4050 of the Employee Retirement Income Se- (B) by striking subparagraph (F) and in- ited specifically to the events at the Na- curity Act of 1974 (as added by subsection serting the following: tional Summit. The Secretary shall use any (a)), respectively, are prescribed. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1231

SEC. 210. REDUCED PBGC PREMIUM FOR NEW (b) SMALL PLANS.—Paragraph (3) of section ‘‘(i) a fraction (not to exceed 1) the numer- PLANS OF SMALL EMPLOYERS. 4006(a) of the Employee Retirement Income ator of which is the number of years from (a) IN GENERAL.—Subparagraph (A) of sec- Security Act of 1974 (29 U.S.C. 1306(a)), as the later of the effective date or the adoption tion 4006(a)(3) of the Employee Retirement amended by section 210(b), is amended— date of the plan to the termination date, and Income Security Act of 1974 (29 U.S.C. (1) by striking ‘‘The’’ in subparagraph the denominator of which is 10, and 1306(a)(3)(A)) is amended— (E)(i) and inserting ‘‘Except as provided in ‘‘(ii) the amount of benefits that would be (1) in clause (i), by inserting ‘‘other than a subparagraph (G), the’’, and guaranteed under this section if the partici- new single-employer plan (as defined in sub- (2) by inserting after subparagraph (F) the pant were not a majority owner.’’. paragraph (F)) maintained by a small em- following new subparagraph: (b) MODIFICATION OF ALLOCATION OF AS- ployer (as so defined),’’ after ‘‘single-em- ‘‘(G)(i) In the case of an employer who has SETS.— ployer plan,’’, 25 or fewer employees on the first day of the (1) Section 4044(a)(4)(B) of the Employee (2) in clause (iii), by striking the period at plan year, the additional premium deter- Retirement Income Security Act of 1974 (29 the end and inserting ‘‘, and’’, and mined under subparagraph (E) for each par- U.S.C. 1344(a)(4)(B)) is amended by striking (3) by adding at the end the following new ticipant shall not exceed $5 multiplied by the ‘‘section 4022(b)(5)’’ and inserting ‘‘section clause: number of participants in the plan as of the 4022(b)(5)(B)’’. ‘‘(iv) in the case of a new single-employer close of the preceding plan year. (2) Section 4044(b) of such Act (29 U.S.C. plan (as defined in subparagraph (F)) main- ‘‘(ii) For purposes of clause (i), whether an 1344(b)) is amended— tained by a small employer (as so defined) employer has 25 or fewer employees on the (A) by striking ‘‘(5)’’ in paragraph (2) and for the plan year, $5 for each individual who first day of the plan year is determined by inserting ‘‘(4), (5),’’, and is a participant in such plan during the plan taking into consideration all of the employ- (B) by redesignating paragraphs (3) year.’’. ees of all members of the contributing spon- through (6) as paragraphs (4) through (7), re- (b) DEFINITION OF NEW SINGLE-EMPLOYER sor’s controlled group. In the case of a plan spectively, and by inserting after paragraph PLAN.—Section 4006(a)(3) of the Employee maintained by two or more contributing (2) the following new paragraph: Retirement Income Security Act of 1974 (29 sponsors, the employees of all contributing ‘‘(3) If assets available for allocation under U.S.C. 1306(a)(3)) is amended by adding at the sponsors and their controlled groups shall be paragraph (4) of subsection (a) are insuffi- end the following new subparagraph: aggregated for purposes of determining cient to satisfy in full the benefits of all in- ‘‘(F)(i) For purposes of this paragraph, a whether the 25-or-fewer-employees limita- dividuals who are described in that para- single-employer plan maintained by a con- tion has been satisfied.’’. graph, the assets shall be allocated first to tributing sponsor shall be treated as a new (c) EFFECTIVE DATES.— benefits described in subparagraph (A) of single-employer plan for each of its first 5 (1) SUBSECTION (a).—The amendments made that paragraph. Any remaining assets shall plan years if, during the 36-month period by subsection (a) shall apply to plans first ef- then be allocated to benefits described in ending on the date of the adoption of such fective after December 31, 2002. subparagraph (B) of that paragraph. If assets plan, the sponsor or any member of such (2) SUBSECTION (b).—The amendments made allocated to such subparagraph (B) are insuf- sponsor’s controlled group (or any prede- by subsection (b) shall apply to plan years ficient to satisfy in full the benefits de- cessor of either) did not establish or main- beginning after December 31, 2002. scribed in that subparagraph, the assets tain a plan to which this title applies with SEC. 212. AUTHORIZATION FOR PBGC TO PAY IN- shall be allocated pro rata among individuals respect to which benefits were accrued for TEREST ON PREMIUM OVERPAY- on the basis of the present value (as of the substantially the same employees as are in MENT REFUNDS. termination date) of their respective benefits the new single-employer plan. (a) IN GENERAL.—Section 4007(b) of the Em- described in that subparagraph.’’. ‘‘(ii)(I) For purposes of this paragraph, the ployment Retirement Income Security Act (c) CONFORMING AMENDMENTS.— term ‘small employer’ means an employer of 1974 (29 U.S.C. 1307(b)) is amended— (1) Section 4021 of the Employee Retire- which on the first day of any plan year has, (1) by striking ‘‘(b)’’ and inserting ‘‘(b)(1)’’, ment Income Security Act of 1974 (29 U.S.C. in aggregation with all members of the con- and 1321) is amended— trolled group of such employer, 100 or fewer (2) by inserting at the end the following (A) in subsection (b)(9), by striking ‘‘as de- employees. new paragraph: fined in section 4022(b)(6)’’, and ‘‘(II) In the case of a plan maintained by ‘‘(2) The corporation is authorized to pay, (B) by adding at the end the following new two or more contributing sponsors that are subject to regulations prescribed by the cor- subsection: not part of the same controlled group, the poration, interest on the amount of any employees of all contributing sponsors and overpayment of premium refunded to a des- ‘‘(d) For purposes of subsection (b)(9), the controlled groups of such sponsors shall be ignated payor. Interest under this paragraph term ‘substantial owner’ means an indi- aggregated for purposes of determining shall be calculated at the same rate and in vidual who, at any time during the 60-month whether any contributing sponsor is a small the same manner as interest is calculated for period ending on the date the determination employer.’’. underpayments under paragraph (1).’’. is being made— (c) EFFECTIVE DATE.—The amendments (b) EFFECTIVE DATE.—The amendment ‘‘(1) owns the entire interest in an unincor- made by this section shall apply to plans made by subsection (a) shall apply to inter- porated trade or business, first effective after December 31, 2002. est accruing for periods beginning not earlier ‘‘(2) in the case of a partnership, is a part- SEC. 211. REDUCTION OF ADDITIONAL PBGC PRE- than the date of the enactment of this Act. ner who owns, directly or indirectly, more than 10 percent of either the capital interest MIUM FOR NEW AND SMALL PLANS. SEC. 213. SUBSTANTIAL OWNER BENEFITS IN (a) NEW PLANS.—Subparagraph (E) of sec- TERMINATED PLANS. or the profits interest in such partnership, or tion 4006(a)(3) of the Employee Retirement (a) MODIFICATION OF PHASE-INOFGUAR- ‘‘(3) in the case of a corporation, owns, di- Income Security Act of 1974 (29 U.S.C. ANTEE.—Section 4022(b)(5) of the Employee rectly or indirectly, more than 10 percent in 1306(a)(3)(E)) is amended by adding at the end Retirement Income Security Act of 1974 (29 value of either the voting stock of that cor- the following new clause: U.S.C. 1322(b)(5)) is amended to read as fol- poration or all the stock of that corporation. ‘‘(v) In the case of a new defined benefit lows: For purposes of paragraph (3), the construc- plan, the amount determined under clause ‘‘(5)(A) For purposes of this paragraph, the tive ownership rules of section 1563(e) of the (ii) for any plan year shall be an amount term ‘majority owner’ means an individual Internal Revenue Code of 1986 shall apply equal to the product of the amount deter- who, at any time during the 60-month period (determined without regard to section mined under clause (ii) and the applicable ending on the date the determination is 1563(e)(3)(C)).’’. percentage. For purposes of this clause, the being made— (2) Section 4043(c)(7) of such Act (29 U.S.C. term ‘applicable percentage’ means— ‘‘(i) owns the entire interest in an unincor- 1343(c)(7)) is amended by striking ‘‘section ‘‘(I) 0 percent, for the first plan year. porated trade or business, 4022(b)(6)’’ and inserting ‘‘section 4021(d)’’. ‘‘(II) 20 percent, for the second plan year. ‘‘(ii) in the case of a partnership, is a part- (d) EFFECTIVE DATES.— ‘‘(III) 40 percent, for the third plan year. ner who owns, directly or indirectly, 50 per- (1) IN GENERAL.—Except as provided in ‘‘(IV) 60 percent, for the fourth plan year. cent or more of either the capital interest or paragraph (2), the amendments made by this ‘‘(V) 80 percent, for the fifth plan year. the profits interest in such partnership, or section shall apply to plan terminations— For purposes of this clause, a defined benefit ‘‘(iii) in the case of a corporation, owns, di- (A) under section 4041(c) of the Employee plan (as defined in section 3(35)) maintained rectly or indirectly, 50 percent or more in Retirement Income Security Act of 1974 (29 by a contributing sponsor shall be treated as value of either the voting stock of that cor- U.S.C. 1341(c)) with respect to which notices a new defined benefit plan for each of its poration or all the stock of that corporation. of intent to terminate are provided under first 5 plan years if, during the 36-month pe- For purposes of clause (iii), the constructive section 4041(a)(2) of such Act (29 U.S.C. riod ending on the date of the adoption of ownership rules of section 1563(e) of the In- 1341(a)(2)) after December 31, 2002, and the plan, the sponsor and each member of ternal Revenue Code of 1986 shall apply (de- (B) under section 4042 of such Act (29 U.S.C. any controlled group including the sponsor termined without regard to section 1342) with respect to which proceedings are (or any predecessor of either) did not estab- 1563(e)(3)(C)). instituted by the corporation after such lish or maintain a plan to which this title ‘‘(B) In the case of a participant who is a date. applies with respect to which benefits were majority owner, the amount of benefits guar- (2) CONFORMING AMENDMENTS.—The amend- accrued for substantially the same employ- anteed under this section shall equal the ments made by subsection (c) shall take ef- ees as are in the new plan.’’. product of— fect on January 1, 2003. H1232 CONGRESSIONAL RECORD — HOUSE April 11, 2002

SEC. 214. BENEFIT SUSPENSION NOTICE. Education, Labor, and Pensions of the Sen- (2) CONDITIONS.—This section shall not (a) MODIFICATION OF REGULATION.—The ate a report on the effect of the provisions of apply to any amendment unless— Secretary of Labor shall modify the regula- this Act and title VI of the Economic (A) during the period— tion under subparagraph (B) of section Growth and Tax Relief Reconciliation Act of (i) beginning on the date the legislative or 203(a)(3) of the Employee Retirement Income 2001 on pension plan coverage, including any regulatory amendment described in para- Security Act of 1974 (29 U.S.C. 1053(a)(3)(B)) change in— graph (1)(A) takes effect (or in the case of a to provide that the notification required by (1) the extent of pension plan coverage for plan or contract amendment not required by such regulation in connection with any sus- low and middle-income workers, such legislative or regulatory amendment, pension of benefits described in such (2) the levels of pension plan benefits gen- the effective date specified by the plan), and subparagraph— erally, (ii) ending on the date described in para- (1) in the case of an employee who returns (3) the quality of pension plan coverage graph (1)(B) (or, if earlier, the date the plan to service described in section 203(a)(3)(B)(i) generally, or contract amendment is adopted), or (ii) of such Act after commencement of (4) workers’ access to and participation in the plan or contract is operated as if such payment of benefits under the plan, shall be pension plans, and plan or contract amendment were in effect; made during the first calendar month or the (5) retirement security. and first 4 or 5-week payroll period ending in a SEC. 216. INTEREST RATE RANGE FOR ADDI- (B) such plan or contract amendment ap- calendar month in which the plan withholds TIONAL FUNDING REQUIREMENTS. plies retroactively for such period. payments, and (a) IN GENERAL.—Subclause (III) of section TITLE III—STOCK OPTIONS (2) in the case of any employee who is not 412(l)(7)(C)(i) of the Internal Revenue Code of described in paragraph (1)— SEC. 301. EXCLUSION OF INCENTIVE STOCK OP- 1986 is amended— TIONS AND EMPLOYEE STOCK PUR- (A) may be included in the summary plan (1) by striking ‘‘2002 or 2003’’ in the text CHASE PLAN STOCK OPTIONS FROM description for the plan furnished in accord- and inserting ‘‘2001, 2002, or 2003’’, and WAGES. ance with section 104(b) of such Act (29 (2) by striking ‘‘2002 AND 2003’’ in the heading (a) EXCLUSION FROM EMPLOYMENT TAXES.— U.S.C. 1024(b)), rather than in a separate no- and inserting ‘‘2001, 2002, AND 2003’’. (1) SOCIAL SECURITY TAXES.— tice, and (b) SPECIAL RULE.—Subclause (III) of sec- (A) Section 3121(a) of the Internal Revenue (B) need not include a copy of the relevant tion 302(d)(7)(C)(i) of the Employee Retire- Code of 1986 (relating to definition of wages) plan provisions. ment Income Security Act of 1974 (29 U.S.C. is amended by striking ‘‘or’’ at the end of (b) EFFECTIVE DATE.—The modification 1082(d)(7)(C)(i)) is amended— paragraph (20), by striking the period at the made under this section shall apply to plan (1) by striking ‘‘2002 or 2003’’ in the text end of paragraph (21) and inserting ‘‘; or’’, years beginning after December 31, 2002. and inserting ‘‘2001, 2002, or 2003’’, and and by inserting after paragraph (21) the fol- SEC. 215. STUDIES. (2) by striking ‘‘2002 AND 2003’’ in the heading lowing new paragraph: (a) MODEL SMALL EMPLOYER GROUP PLANS and inserting ‘‘2001, 2002, AND 2003’’. ‘‘(22) remuneration on account of— STUDY.—As soon as practicable after the (c) PBGC.—Subclause (IV) of section ‘‘(A) a transfer of a share of stock to any date of the enactment of this Act, the Sec- 4006(a)(3)(E)(iii) of such Act (29 U.S.C. individual pursuant to an exercise of an in- retary of Labor, in consultation with the 1306(a)(3)(E)(iii)) is amended to read as centive stock option (as defined in section Secretary of the Treasury, shall conduct a follows— 422(b)) or under an employee stock purchase study to determine— ‘‘(IV) In the case of plan years beginning plan (as defined in section 423(b)), or (1) the most appropriate form or forms of— after December 31, 2001, and before January ‘‘(B) any disposition by the individual of (A) employee pension benefit plans which 1, 2004, subclause (II) shall be applied by sub- such stock.’’. would— stituting ‘100 percent’ for ‘85 percent’ and by (B) Section 209(a) of the Social Security (i) be simple in form and easily maintained substituting ‘115 percent’ for ‘100 percent’. Act is amended by striking ‘‘or’’ at the end by multiple small employers, and Subclause (III) shall be applied for such of paragraph (17), by striking the period at (ii) provide for ready portability of benefits years without regard to the preceding sen- the end of paragraph (18) and inserting ‘‘; for all participants and beneficiaries, tence. Any reference to this clause or this or’’, and by inserting after paragraph (18) the (B) alternative arrangements providing subparagraph by any other sections or sub- following new paragraph: comparable benefits which may be estab- sections (other than sections 4005, 4010, 4011 ‘‘(19) Remuneration on account of— lished by employee or employer associations, and 4043) shall be treated as a reference to ‘‘(A) a transfer of a share of stock to any and this clause or this subparagraph without re- individual pursuant to an exercise of an in- (C) alternative arrangements providing gard to this subclause.’’. centive stock option (as defined in section comparable benefits to which employees may (d) EFFECTIVE DATE.—The amendments 422(b) of the Internal Revenue Code of 1986) contribute in a manner independent of em- made by this section shall take effect as if or under an employee stock purchase plan ployer sponsorship, and included in the amendments made by section (as defined in section 423(b) of such Code), or (2) appropriate methods and strategies for 405 of the Job Creation and Worker Assist- ‘‘(B) any disposition by the individual of making pension plan coverage described in ance Act of 2002. such stock.’’. paragraph (1) more widely available to SEC. 217. PROVISIONS RELATING TO PLAN (2) RAILROAD RETIREMENT TAXES.—Sub- American workers. AMENDMENTS. section (e) of section 3231 of such Code is (b) MATTERS TO BE CONSIDERED.—In con- (a) IN GENERAL.—If this section applies to amended by adding at the end the following ducting the study under subsection (a), the any plan or contract amendment— new paragraph: Secretary of Labor shall consider the ade- (1) such plan or contract shall be treated as ‘‘(11) QUALIFIED STOCK OPTIONS.—The term quacy and availability of existing employee being operated in accordance with the terms ‘compensation’ shall not include any remu- pension benefit plans and the extent to of the plan during the period described in neration on account of— which existing models may be modified to be subsection (b)(2)(A), and ‘‘(A) a transfer of a share of stock to any more accessible to both employees and em- (2) except as provided by the Secretary of individual pursuant to an exercise of an in- ployers. the Treasury, such plan shall not fail to centive stock option (as defined in section (c) REPORT.—Not later than 18 months meet the requirements of section 411(d)(6) of 422(b)) or under an employee stock purchase after the date of the enactment of this Act, the Internal Revenue Code of 1986 and sec- plan (as defined in section 423(b)), or the Secretary of Labor shall report the re- tion 204(g) of the Employee Retirement In- ‘‘(B) any disposition by the individual of sults of the study under subsection (a), to- come Security Act of 1974 by reason of such such stock.’’. gether with the Secretary’s recommenda- amendment. (3) UNEMPLOYMENT TAXES.—Section 3306(b) tions, to the Committee on Education and (b) AMENDMENTS TO WHICH SECTION AP- of such Code (relating to definition of wages) the Workforce and the Committee on Ways PLIES.— is amended by striking ‘‘or’’ at the end of and Means of the House of Representatives (1) IN GENERAL.—This section shall apply to paragraph (16), by striking the period at the and the Committee on Health, Education, any amendment to any plan or annuity con- end of paragraph (17) and inserting ‘‘; or’’, Labor, and Pensions and the Committee on tract which is made— and by inserting after paragraph (17) the fol- Finance of the Senate. Such recommenda- (A) pursuant to any amendment made by lowing new paragraph: tions shall include one or more model plans this title or title VI of the Economic Growth ‘‘(18) remuneration on account of— described in subsection (a)(1)(A) and model and Tax Relief Reconciliation Act of 2001, or ‘‘(A) a transfer of a share of stock to any alternative arrangements described in sub- pursuant to any regulation issued by the individual pursuant to an exercise of an in- sections (a)(1)(B) and (a)(1)(C) which may Secretary of the Treasury or the Secretary centive stock option (as defined in section serve as the basis for appropriate adminis- of Labor under this title or such title VI, and 422(b)) or under an employee stock purchase trative or legislative action. (B) on or before the last day of the first plan (as defined in section 423(b)), or (d) STUDY ON EFFECT OF LEGISLATION.—Not plan year beginning on or after January 1, ‘‘(B) any disposition by the individual of later than 5 years after the date of the enact- 2005. such stock.’’. ment of this Act, the Secretary of Labor In the case of a governmental plan (as de- (b) WAGE WITHHOLDING NOT REQUIRED ON shall submit to the Committee on Education fined in section 414(d) of the Internal Rev- DISQUALIFYING DISPOSITIONS.—Section 421(b) and the Workforce of the House of Rep- enue Code of 1986), this paragraph shall be of such Code (relating to effect of disquali- resentatives and the Committee on Health, applied by substituting ‘‘2007’’ for ‘‘2005’’. fying dispositions) is amended by adding at April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1233 the end the following new sentence: ‘‘No tween workers and owners. As a matter corporations, but only to those cor- amount shall be required to be deducted and of fact, based upon legislation in the porations whose securities are withheld under chapter 24 with respect to 1970s, more and more companies are tradeable or traded on an established any increase in income attributable to a dis- being owned by the workers. securities market. position described in the preceding sen- Mr. THOMAS. Mr. Speaker, the gen- tence.’’. If my colleagues do not think that tleman is correct. The diversification (c) WAGE WITHHOLDING NOT REQUIRED ON shows a fundamental flaw in Marxism COMPENSATION WHERE OPTION PRICE IS BE- and a significant and historic modifica- rules exempt privately held companies. TWEEN 85 PERCENT AND 100 PERCENT OF VALUE tion of capitalism, talk to any worker Only public companies are subject to OF STOCK.—Section 423(c) of such Code (relat- who has a 401(k), who owns shares in the rules. ing to special rule where option price is be- the stock market. And, frankly, that is Mr. SHADEGG. Mr. Speaker, sec- tween 85 percent and 100 percent of value of becoming more and more your every- ondly, a company may continue to stock) is amended by adding at the end the day American because, at the same make contributions to such an em- following new sentence: ‘‘No amount shall be ployee stock ownership plan, an ESOP, required to be deducted and withheld under time, the concept that one was sup- posed to go to work for a company and for purposes of meeting the safe harbor chapter 24 with respect to any amount treat- provisions of the nondiscrimination ed as compensation under this subsection.’’. be employed for 20 years, 30 years, a (d) EFFECTIVE DATE.—The amendments lifetime, and that if they committed test established by section 401(k), and made by this section shall apply to stock ac- themselves to that company, they were that such contributions would not be quired pursuant to options exercised after rewarded by a pension or a decent re- subject to the diversification require- the date of the enactment of this Act. tirement payment, exemplified, for ex- ment established by this legislation. TITLE IV—SOCIAL SECURITY AND ample, a gold watch for loyalty. Mr. THOMAS. Mr. Speaker, the gen- MEDICARE HELD HARMLESS Today, not only are individuals tleman is correct. Employer contribu- tions used to satisfy the 401(k) safe SEC. 401. PROTECTION OF SOCIAL SECURITY AND working a number of different jobs in MEDICARE. their lifetime, they wind up oftentimes harbor test will not be subject to the The amounts transferred to any trust fund with several different careers in their diversification rules, as long as the under the Social Security Act shall be deter- contributions are made to a so-called lifetime. And what is most remarkable mined as if this Act had not been enacted. pure ESOP, which is defined as an about being on the floor today is that ESOP which holds no employee con- The SPEAKER pro tempore. After 2 all of this occurred without a signifi- tributions, no employer-matching con- hours of debate on the bill, as amended, cant or heavy hand of government try- tributions, and no employer contribu- it shall be in order to consider a fur- ing to make it happen. It just kind of tions used to meet the nondiscrimina- ther amendment printed in part B of occurred. There was an enlightenment the report, if offered by the gentleman tion test. that management ought to allow work- Mr. Speaker, I reserve the balance of from California (Mr. GEORGE MILLER), ers to participate as owners, and work- or the gentleman from New York (Mr. my time. ers thought it might be a good idea to Mr. RANGEL. Mr. Speaker, I yield RANGEL), or a designee, which shall be get a piece of the action. considered read, and shall be debatable myself such time as I may consume. Frankly, since it developed to a very Mr. Speaker, first, I thank the distin- for 1 hour, equally divided and con- great extent below the radar screen trolled by the proponent and an oppo- guished chairman for that eloquent and it was not going to be focused on essay against communism. It is re- nent. until there were some problems that The gentleman from Ohio (Mr. freshing to know that this bill is trying occurred, and obviously Enron as a to minimize the class differences that BOEHNER), the gentleman from Cali- focal point could be described as a we have in this Nation between the fornia (Mr. GEORGE MILLER), the gen- problem, we are here today to make captains of industry and employees, tleman from California (Mr. THOMAS), modest adjustments to a system that that this gap is being closed. and the gentleman from New York (Mr. needs to continue to evolve largely in Most of us thought this was a ques- RANGEL) each will control 30 minutes the private sector, not controlled or tion about the Enron scandal. Most of of debate on the bill. dictated to by government. us thought, like the President, that we The Chair recognizes the gentleman b 1215 ought to repair the damages that have from California (Mr. THOMAS) for 30 been made to see that it does not hap- minutes. However, in the chairman’s opinion, pen to employees in the future. Most of Mr. THOMAS. Mr. Speaker, I yield government ought to watch very care- us thought that this was a tax issue myself such time as I may consume. fully what is occurring in this area be- since the 401(k)s, that so many employ- There has been a quiet revolution cause I believe there are a number of ees, rank and file employees, got hurt going on in the United States, and it successful models that can be exam- by with Enron, that we on the Com- was so quiet that a lot of people did not ined to help us in our dilemma of one mittee on Ways and Means would be notice. One of the fundamental tenets of the key safety nets, the entitlement providing the leadership for the House of Marxism was that there was a sepa- of Social Security, where over the next in order to repair the code so that ration between those who own the several years we are going to have to these things would not happen again. means of production and those who la- make several decisions about how we Instead, the debate is led off by the bored at that production; as Marx said modify the Social Security system. Committee on Education and the in the Communist Manifesto, the cap- It is, I think, significant that we are Workforce by the gentleman from Ohio italists and the proletariat. And there here today to put into place modest, (Mr. BOEHNER). It is good to know that was a belief, still somewhat attempted but appropriate, changes in that struc- things are getting better and the gap is to be carried on by some folks, that ture in which workers have become getting closed, but to say that we do there is a significant and fundamental owners, part or whole. not know what is in this bill is similar class difference, an economic dif- Mr. Speaker, I yield to the gentleman to a statement we heard yesterday, no- ference, which produces a cultural dif- from Arizona (Mr. SHADEGG) for the body knew what was in the taxpayer ference between ‘‘classes,’’ the captains purpose of a colloquy pointing to the bill. of industry, the big corporate folk and fact that there is a difference between When the day is over, the vote is the workers that to a certain extent, certain types of employee-owned com- going to be which side were Members this political argument is perpetuated panies, commonly known because of on. Were Members with the executives today. the law, as ESOPs. that managed to protect their pensions The quiet revolution that I am talk- Mr. SHADEGG. Mr. Speaker, will the and not pay taxes on it; or were Mem- ing about is the change that has oc- gentleman yield? bers with employees that, as the Presi- curred over the last half century, Mr. THOMAS. I yield to the gen- dent said, as the sailors of this ship, speeding up significantly in the last tleman from Arizona. they should have the same rights as third of the 20th century, and really Mr. SHADEGG. Mr. Speaker, first I the captains do? culminating in part for why we are on would like to clarify that the diver- Here we find that the captains of the the floor today; and that is, there is be- sification requirements in the legisla- Enron ship jumped ship and took the coming less and less of a distinction be- tion do not apply to privately owned lifeboats with them, took the lifesavers H1234 CONGRESSIONAL RECORD — HOUSE April 11, 2002 with them, and employees sunk and Means also controlled the ERISA por- sharply restricting the availability of lost their life savings. We want to tion of the code, the Chair would reach the 401(k) plans. Right now the 401(k) know what we do about it today. Of out to the gentleman, and we could try plans are a critical part of the struc- course the Member says modest adjust- to figure out a way to put that under ture of incentives for individual sav- ments. That is code words for we do our jurisdiction as well. But at least ings that we have built into our tax nothing about it today. temporarily, it is under the jurisdic- codes. These incentives can only be of- Some of us on the committee voted tion of the Committee on Education fered to employees if employers par- for it because we were under the im- and the Workforce. They have to be ac- ticipate. pression that we could work out our commodated since that is their juris- The Enron fraud has taught us the differences and really put some teeth diction. need for diversification to protect a in this, and to try in some way to bring It was a pleasure to work with the workers’ plan. This substitute would to the floor a bipartisan bill so the chairman of that committee, the gen- impose tough conditions on plan ad- American people would believe as it re- tleman from Ohio (Mr. BOEHNER), in ministrators that the best-run compa- lates to pension, there was some eq- putting together this package. nies will have to reevaluate their deci- uity, some parity between how we Mr. Speaker, I yield 21⁄2 minutes to sion to offer these tax-favored saving treat executives and how we treat the the gentleman from New York (Mr. plans. They are all voluntary. I do not rank and file. HOUGHTON), who is someone who under- believe this is what was intended by We see here that the issue is not stands the relationship between owners this particular legislation. communism versus capitalism, it is and workers and the change that has Mr. Speaker, I support the pension campaign contributions versus doing occurred over time in that relation- improvement plan. I support the secu- the right thing. ship, the chairman of the Sub- rity plan, H.R. 3762. I hope as the question was put to us committee on Oversight of the Com- Mr. RANGEL. Mr. Speaker, I ask yesterday, whether or not we should mittee on Ways and Means. unanimous consent to yield the bal- maintain loopholes for people to make Mr. HOUGHTON. Mr. Speaker, I ance of my time to the gentleman from campaign contributions that we would like to support the pension im- California (Mr. STARK) for purposes of thought we had closed, or whether or provements in this legislation, and I control. not people want to do the right thing, want to talk briefly about three issues. The SPEAKER pro tempore (Mr. that we do not have people walking in First of all, payroll taxes on stock LATHAM). Is there objection to the re- lockstep to party leaders, but we have options: for over 30 years, since 1971, quest of the gentleman from New Members doing the right thing because the IRS has taken the position that York? There was no objection. that is what is expected of us. The clos- employee purchases of company stock er we get to election, the more hon- Mr. STARK. Mr. Speaker, I yield 2 and stock options do not give rise to minutes to the gentleman from Texas estly we will be seeing our votes. employment tax obligations. Now the Mr. Speaker, I ask Members to listen (Mr. GREEN). IRS is totally reversing its position, not to the virtues of capitalism that we Mr. GREEN of Texas. Mr. Speaker, I and employees I am sure will consider all really treasure, support, adore and appreciate the opportunity to speak, as this a tax increase. want to maintain, and not in attacking I am not on either the Committee on What this bill does is to preserve that Ways and Means or the Committee on communism because I think we have 30-year policy which we have been op- won that argument, but which side are Education and the Workforce, but erating under for so many years. In ad- Members on: the highly paid executives when Enron started to collapse, many dition to higher taxes, several adverse or protecting the rank-and-file employ- people in Houston saw their life sav- consequences, I feel, are likely to flow ees. ings evaporate before their eyes. Mr. Speaker, I reserve the balance of from the failure to address the prob- My constituents’ hands were tied be- my time. lem. cause Enron executives prevented them Mr. THOMAS. Mr. Speaker, I yield First of all, employee stock pur- from touching the 401(k)s, even though myself such time as I may consume. chases will be depressed, reversing the these same executives were able to un- Mr. Speaker, I find it ironic that the trend in recent years toward greater load their stock by other means as it gentleman closed his statement right ownership. Also, because employment continued to spiral down. Innocent em- along the same class lines that I said taxes are higher until an employee ployees and investors lost all their in- have been blurred significantly. I was reaches the maximum Social Security vestments while the CEO and execu- not talking about communism; I was wage base of approximately $85,000, the tives cut their losses with their stock talking about Marxism. change will also tend to harm those losses and deferred compensation. Con- The gentleman’s reference that the earning below the maximum wage base gress should be able to stand up to captains of industry get to be treated more than those earning above it. For these folks who take free enterprise differently than their employees is one the same reason, it is going to become and abuse it, these corporate insiders of the reasons we are here today. If the more expensive for companies to award who took advantage of their employ- gentleman would turn to page 75 of the stock options to the average worker ees’ trust. bill, the gentleman would find section because employers will bear half the This legislation, as I look at it, and I 108, which clearly prohibits the so- burden of employment taxes. By enact- know that we have two different com- called captains from participating in ing this legislation, we will preserve mittees working on it, does little to activities that the employees are de- existing laws on the incentive stock help the average rank-and-file worker nied. Exactly the point that the gen- options. who could do nothing to prevent what tleman makes is contained in the legis- Secondly, some outside the process was happening at Enron. This reminds lation. have criticized other aspects of the bill me of a saying from Texas that we can In addition to that, the reason we are for creating loopholes. I do not believe put earrings and lipstick on a pig and here today with a shared committee re- that. Democrats have joined Repub- call her Monique, but it is still a pig. sponsibility is because in 1974 Congress licans in calling these loopholes re- Even with earrings and lipstick, this passed, and the President signed, the form. I hope they are reforms. What bill does not do much to prevent future Employer Retirement Income Security this does is fix mechanical rules that Enrons. Act, known as ERISA. The jurisdiction produce irrational results. Mr. Speaker, I do not want to throw of the Committee on Ways and Means The simplification provision that is out the baby with the bath water, and is to the Tax Code. The jurisdiction of now criticized merely directs the De- I agree that we need to continue the ef- the Committee on Education and the partment of Treasury and Department forts for stock options and ESOPs; but Workforce is to that portion of the law of Labor to develop simplified annual somehow we have to send the message known as ERISA. As is oftentimes the reporting requirements for businesses by legislation that we will not have case, there are two different sections of with fewer than 25 employees. I have a what has happened at Enron ever hap- the law. feeling that the Democratic substitute, pen again. Mr. Speaker, if the gentleman would although well intentioned, is likely to The President said he wanted the wish that the Committee on Ways and have the unintended consequence of CEOs treated the same as the workers. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1235 The Democratic substitute does that. and to reward young workers, would be before they can diversify it. How many It makes sure that executives play on discouraged from offering these plans. of us look at our portfolios every year the same field as their workers and in- Our private retirement system is a and set up plans for diversification vestors. If employees are prohibited great success, Mr. Speaker. It should every year? I think that is asking em- from selling their stock, executives make us all proud. Let us continue ployees to do too much. How many of should be, too, without any special that tradition by passing this very im- us can plan how much we are going to dealings or deferred-compensation portant bill. have available for retirement if we do ways that they can get to their stock, Mr. STARK. Mr. Speaker, I yield 4 not have complete control over our de- and that is what the Republican bill minutes to the gentleman from Mary- cisions? The legislation before us does that we have today does not do. The land (Mr. CARDIN). not give that to us. majority bill, even with the earrings Mr. CARDIN. Mr. Speaker, let me More importantly, the legislation be- and lipstick, is still no beauty. thank my friend from California for fore us opens up certain conflict situa- yielding me this time. b 1230 tions on giving advice by making an Mr. Speaker, I am disappointed. I exception to the prohibited transaction Mr. THOMAS. Mr. Speaker, I ask think today we have missed an oppor- rules under ERISA. I supported change unanimous consent that the gentleman tunity to pass legislation on a bipar- in that rule. I went to the Committee from Ohio (Mr. PORTMAN) control the tisan basis that would have gone a long on Education and the Workforce and remainder of the time on this side. way to helping America’s workers. If tried to work with them on sensible re- The SPEAKER pro tempore (Mr. the Committee on Rules would have al- strictions in opening this up so that LATHAM). Is there objection to the re- lowed the work product of the Com- the manager of the investment plan quest of the gentleman from Cali- mittee on Ways and Means to come for- would at least be required to offer op- fornia? ward, the gentlewoman from Wash- tions and choice to the participants. There was no objection. ington was correct, we passed that by a But that amendment was not adopted. Mr. PORTMAN. Mr. Speaker, I yield strong bipartisan vote in our com- Instead, there is just a blanket exemp- 2 minutes to the gentlewoman from mittee, and we would be here today, tion to the ERISA statute. Washington (Ms. DUNN) who has been Democrats and Republicans, urging the I regret that I will not be able to sup- instrumental in ensuring that we have passage of that legislation. That was port a bill that I worked very hard broad coverage under our 401(k) plans. not to be the case. with with the gentleman from Ohio Ms. DUNN. Mr. Speaker, today I rise Instead, the Committee on Rules (Mr. PORTMAN) to bring forward today. in support of the Pension Security Act brought forward the product of the I do hope that as this legislation works of 2002. This bill does have strong bi- Committee on Education and the its way through the other body and partisan support in the Committee on Workforce and included some provi- through conference that we will be able Ways and Means and it adheres to the sions that I believe should not be en- to bring back a bipartisan process, one principles outlined by President Bush. acted. Therefore, I find it regrettable in which the Committee on Ways and Most importantly, it will provide pro- that I cannot support this legislation. Means participated in, and have a bi- tections for employee-investors with- Mr. Speaker, there are some very im- partisan bill that can enjoy broad sup- out impinging on employers’ own abili- portant provisions in the legislation port in this body and that we can send ties to establish, support and have before us that we need to make sure to the President and get enacted into some degree of control over their own gets enacted into law. There are cer- law. That is not the legislation before retirement plans. Media hype notwith- tain protections for employees to be us. I hope we will have that when it re- standing, we cannot allow the unfortu- able to diversify their investment port- turns from the other body. nate actions of a few, who will be pe- folio, to be able to take company stock nalized, to ruin a successful program and to put it into a more diversified Mr. PORTMAN. Mr. Speaker, I yield that has created trillions of dollars in portfolio for their retirement. Particu- myself 30 seconds. wealth for millions of Americans. larly in these days as we are changing I would like to thank the gentleman I want to highlight two important from defined benefit plans to defined from Maryland (Mr. CARDIN) for the changes that are in this bill to protect contribution plans, those changes are good work he did on this legislation. As employees. First, we included sensible important. he says, the majority of this legislation diversification requirements for em- The legislation was basically worked is the product of the Committee on ployee investments. We know that one out in a bipartisan way. I thank the Ways and Means and the Portman- of the principles of retirement security gentleman from Ohio (Mr. PORTMAN). Cardin legislation. is personal control over a diversified The two of us have combined together He indicated that there were two portfolio. Our bill prohibits employers a lot of pension legislation, including areas he had disagreements: The work- from requiring employees to invest many of the provisions that were in- ability of the 3-year rolling provision, their own money in company stock. cluded in the Ways and Means bill but that of course can be done as an option Companies would be required to offer unfortunately have gotten clouded in for the company. Second, he talked at least three investment options to the legislation before us. It includes about his concern about the conflict their employees. And employees would notice, for example, of blackout peri- situation of giving investment advice. also be given advice in plain English ods and that employees should diver- We are very close on that one as well. about the benefits of diversification of sify their investment portfolios. It in- I just want to underline the fact that their investments. cludes tax incentives so that individ- we are very close in this legislation. I Secondly, I want also to mention how uals can get tax advice. It includes help think, in fact, that this legislation is we address employee stock purchase for small business that was not in- bipartisan still. I assume it will be. I plans, or ESPPs. For decades, ESPPs cluded in last year’s tax bill because of look forward to working with him into have been exempt from payroll taxes the rules in the other body. That is the the future to addressing those rel- because they were not considered good stuff that is in the bill. That is atively small concerns in a good bill. wages. However, a recent IRS ruling what was worked out in a bipartisan Mr. Speaker, I yield 21⁄2 minutes to overturned this longstanding practice. way. That is what I had hoped would the gentleman from Arizona (Mr. Our bill reaffirms that ESPPs are ex- have been before us. That is what I had HAYWORTH). empt. This is an important clarifica- asked the Committee on Rules to make Mr. HAYWORTH. Mr. Speaker, I tion that protects rank-and-file em- in order. But that is not the bill before thank my colleague from Ohio for ployees from a huge tax increase. With- us. yielding me the time, and I appreciate out this provision, you would have the The bill before us includes other pro- the comments from my good friend very ironic situation of a junior pro- visions, including a restriction on di- from Maryland. If you listened closely, grammer at Microsoft being forced to versification that I do not think is while there were some disagreements sell stock just to pay the payroll tax. workable, that requires employees to as to what is transpiring in the bill Without this provision, small compa- wait 3 years after every new contribu- that my friend from Ohio addressed, nies, which have used ESPPs to attract tion by an employer of company stock there seems to be more of a concern H1236 CONGRESSIONAL RECORD — HOUSE April 11, 2002 about process, and we have joint juris- this plan for the munificent tax loop- very rich business owners. That is diction with the Committee on Edu- holes it creates, but in structuring the wrong, that is obscene, that is im- cation and the Workforce and some of plan in the dead of night, there were moral. these questions of process can be provisions put back into the bill in the Vote ‘‘no’’ on the bill. worked out in the course of the legisla- Committee on Ways and Means which b 1245 tion. further discriminate against the aver- But what we do in this bill is address age worker in the small business. Mr. PORTMAN. Mr. Speaker, I yield a definite need. This is an example This is not about creating plans myself such time as I may consume. where the House of Representatives re- which, of course, is what the Repub- Mr. Speaker, that was pretty good sponds to a challenge that confronts licans would like to do, to create plans theater, and I guess I have to com- the American people. It is precisely be- for the rich executives. This is about pliment the gentleman for his partisan- cause of the diversification rights that fairness in coverage. This is how many ship, but there was no basis in fact for I would recommend this legislation. people are covered by the plan in a fair almost anything he just said. Plans would be required to offer at way. This was done without the Demo- least three investment options other We have had for many years anti- crats knowing about it? It is the than company stock and to allow em- discrimination laws which this bill at- Portman-Cardin legislation that has ployees to change investment options tempts to eliminate. These have been a been voted five times on the floor of at least quarterly. Employees must subject of contention time and time this House. You have voted for it, sir. have the option of investing their own again as the Republicans, if you choose There was a 36-to-2 vote out of the contributions in any investment option to support that philosophy, would give Committee on Ways and Means. It was offered by the plan. Employers would tax loopholes to the very rich and ig- in H.R. 10. It was in all the previous be allowed to match in the form of nore the average working person. This legislation that has come before this company stock. However, employees has been the interest of the people sell- floor. It was passed by this House by would be allowed to sell this stock and ing the plan, selling the investments, over 400 votes. It has been fully vetted. diversify into other assets according to selling the insurance or selling the The way in which the gentleman de- a couple of different options, a 3-year service, is to line the pockets of the scribed it is, frankly, inaccurate. Let service option or a 3-year rolling op- rich who, of course, will continue their me quote the gentleman: ‘‘There is no tion. contributions to the Republican cam- requirement for any nondiscrimination Another concern addressed by this paigns at the expense of the average testing.’’ legislation is that it strikes a balance. working person who will get precious Where does that come from? The gen- Mr. Speaker, many folks in Arizona little from these plans. tleman from Maryland (Mr. CARDIN) is have come to me about ESOPs and Why we should continue to think on the floor here, as is the gentleman what goes on there, and it is important that we can say this helps anybody to from North Dakota (Mr. POMEROY) on to note that the new diversification retire, it helps a very small percentage the other side of the aisle. They have rules would apply only to plans that of very rich people or small business worked well on a bipartisan basis with hold publicly traded employer securi- owners to retire. And who pays for us to put forward this legislation over ties and to plans that are not pure that? The average taxpayer pays for the years. Frankly I am, again, very ESOPs. A pure ESOP does not hold any that. We pay for that tax loophole. And disappointed that we cannot have a de- employee contributions, employer the price that we were previously ex- bate on the merits. matching contributions, or employer tracting was that that small business Let us talk about the facts. I know contributions used to meet non- owner had to give an equivalent protec- the gentleman has a disagreement with discrimination tests. tion to every employee in his or her some of the facts. I know the gen- As you take a look at this legisla- business. This bill eviscerates that tleman is not for the investment advice tion, it actually enlarges and improves idea. part of this bill. The gentleman from access to retirement security. It would There is some claptrappy language in Maryland (Mr. CARDIN) made it clear make it easier for small businesses to here that will turn it over to the Sec- he is not. I respect that. start and maintain pension plans. It retary of the Treasury, but if the Sec- But I would urge on both sides of the will simplify reporting requirements retary of the Treasury does nothing, aisle that we try to stick to the facts for pension plans with fewer than 25 there will be no requirement for anti- as we are talking about pension re- participants. discrimination laws. And guess who form, not that we should not on every If the question is access to pension will have won? The Republican Party issue, but this one has been histori- security, it only makes sense to en- and their rich friends and the people cally bipartisan, and it is so important large the possibilities for small busi- who sell these plans, the investment to the workers of this country, includ- ness, and we should really redefine that brokers and the insurance agents who ing the 55 million people who now take as essential business since more Ameri- do it. What is worse is that it was advantage of defined contribution cans are employed by small businesses brought into the bill in the dead of plans. than all the corporations of the United night without the knowledge of the It is the 70 million Americans who States, we are able to set up a mecha- Democrats on the committee. To me, have no plan, primarily because small nism so that they can actually come up this is underhanded, it is sneaky, and businesses do not offer them, that need with their own plans, with their own it is indeed the operating procedure of our help. That is what this relatively pension programs, and it will provide the Republican Party. modest provision that the gentleman for discounted insurance premiums I cannot help but suggest, because referenced as being ‘‘a Republican idea that small businesses pay to the Pen- our chairman brought up the idea of that was brought up in the dark of the sion Benefit Guaranty Corporation. Marxism, and I guess he used to teach night’’ is all about. It is one that has On balance, this legislation strikes a history or something like that at some been supported by Democrats and Re- balance. It is an appropriate first step. junior college, and he might remember publicans alike, it is one that was fully I urge passage of the legislation. that it was in a European country in vetted over a 5-year period, it is one Mr. STARK. Mr. Speaker, I yield my- the thirties that the fascist leader of that has been the subject of hearings self 4 minutes. that country enlisted the corporate ex- and markups; it is one that will help As many speakers who have gone be- ecutives to support a war effort in the small businesses to be able to offer fore suggest, this bill points out so fight against Marxism and, in the proc- plans by giving them just a little relief clearly the difference between the Re- ess, enslaved the workers. This seems from the rules, the regulations, the publicans and the Democrats. Not only to be the pattern that the Republicans costs and burdens under the pension is this bill terribly unfair to the aver- in this House are following today, by rules, and it does not, does not, I re- age working person and abundantly sneaking through in the dead of night, peat, eliminate the need for non- generous to rich and high-paid execu- not telling us the truth about what is discrimination testing. tives and to the insurance industry in the bill, and harming the average Mr. Speaker, I yield 3 minutes to the who are contributing to the authors of working American to the benefit of the gentleman from Illinois (Mr. WELLER). April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1237 (Mr. WELLER asked and was given from imposing further taxes on em- gress doing to prevent another Enron- permission to revise and extend his re- ployee stock options. If we do not pass type debacle from destroying our re- marks.) this legislation, workers who have em- tirement security, the answer is prac- Mr. WELLER. Mr. Speaker, I rise in ployee stock options may suffer payroll tically nothing. support of this legislation, legislation taxes. We do not want that to happen. That is not just my assessment, that which has so much bipartisan work in- This legislation deserves bipartisan was the assessment of the American vested in this legislation, the Pension support. It would make it easier for Association of Retired Persons when Security Act of 2002. I commend the small employers to provide retirement this bill came out of committee, and I gentleman from Ohio (Mr. PORTMAN) savings opportunities for their work- am proud to have voted against it. and the gentleman from California (Mr. ers. We empower employees. It is a bi- That was also the assessment of the THOMAS) and the gentleman from Ohio partisan bill and deserves bipartisan New York Times on the front page yes- (Mr. BOEHNER), who have led this effort support. Let us do the right thing. We terday—serious concerns that have not to bring this legislation to the floor. have a solution. I urge support. been answered by supporters of this We have all learned over the last sev- Mr. STARK. Mr. Speaker, I yield 41⁄4 bill. eral months of some terrible things minutes to the gentleman from Texas In fact, a former Treasury official said the that occurred in Enron and Global (Mr. DOGGETT). bill opens the door to discrimination between Crossing and how they have impacted Mr. DOGGETT. Mr. Speaker, I thank executive and lower-paid workers. the retirement savings of the workers the gentleman for yielding me time. While its proponent did not have of those companies, and certainly we In the aftermath of the Enron-Ander- time to take care of ordinary folks, want to find a solution. We are going sen fiasco, certainly we should be con- they could certainly provide new favors to hear the rhetoric of some who are cerned about activity that was lawless. for highly-paid workers. going to choose to seize this as an op- But I believe we here in Congress need If management tells you to buy more portunity for name calling and par- to be equally concerned about activity company stock while they are selling tisanship and class warfare. that was lawful, but simply awful, in theirs, does management have to tell We are also going to see Members of its impact on American families. even the pension plan that it made this House who are going to rise up and This is a scandal involving the delib- these sales? No, not under this bill. If do the right thing, and that is offer a erate decisions of policymakers in this management continues to stuff your solution, a solution that does what we House of Representatives to allow and retirement plan with company stock, is want to achieve, and that is to protect overlook loopholes, shortcuts, back that illegal? Not only is it lawful, they workers and to strengthen retirement doors, exemptions, and exceptions that give a tax break to the company if they savings. riddle our laws, that provide special do that. And they tell us a company That is what this is all about, pen- protection and special opportunities to can give some advice to people: ‘‘We sion security. That is why I stand in special interests that devote such en- will let Jeff Skilling go out and hire a strong support of this legislation. ergy to lobbying us here in Wash- consultant to advise people to sell Let us look at what this bill does for ington. It works to the detriment of their Enron stock.’’ If you believe that, America’s workers. It empowers em- blameless employees at Andersen and I am sure the Brooklyn Bridge is avail- ployees. Employee rights and protec- Enron and at companies across this able for you. tions are enhanced without further country, the blameless participation of A company under this bill can con- burdensome regulations. The bill also retirees and investors and of taxpayers tinue to encourage employee contribu- gives employees more control over the who work hard to contribute to make tions of company stock and hire an ad- investment of their accounts once they this the great country that it is. visor to give advice limited to other in- own or become fully vested with that And for those Enron employees who vestment issues. It is more conflicted money. It also requires employers to lost all their life savings, for those tax- interests atop the very kind of con- notify workers in advance of a black- payers that are out there completing flicted interests we have had in the out so that employees have the same their tax return and wondering why it past. opportunity to make changes before was that Enron did not pay a dime in I am so pleased that the gentleman the restrictions come into effect. taxes, for all those people across Amer- from California (Chairman THOMAS) I would also note that employees are ica who are saying ‘‘there ought to be brought up Marx, because I am a real given the opportunity for investment a law to do something about this, those fan of their movies. I can tell you that education, something that many em- folks do not need to look any further what this bill does in the way of pen- ployees have told me they are looking than the House Committee on Ways sion protection for American families for, because we give them in this legis- and Means that has responsibility for is just about as much as if we turned lation the opportunity for investor people paying their taxes and for pro- the job over to Groucho, Harpo and education and access to professional in- tecting pensions, to ask why did they Chico. vestment advice, and that is all im- not do something about it. Why do Mr. PORTMAN. Mr. Speaker, I yield proved with this bill. they continue to enable and facilitate myself 11⁄2 minutes. We also help employers, because we and encourage companies like Enron to Mr. Speaker, the gentleman said that want to encourage employers to pro- not pay a dime on their taxes, while there is a New York Times article that vide pension benefits, because we want Americans are working hard to pay for has not been responded to. We have to encourage, particularly smaller em- the costs of the security of this coun- spent a good part of today responding ployers, to provide retirement savings try? Why have they been so indifferent to it and its inaccuracies. opportunities for their employees be- to ordinary workers that are concerned Just to do it once more, because the cause they are the ones, frankly, that about their pension security? gentleman said we had not responded, have a harder time doing it because of This bill is not about the protection the provision we are talking about is to the regulatory and administrative of pensions for hard-working employ- be able to use a facts-and-cir- costs. And this House has worked so ees; it is about political cover for Mem- cumstances test at the Department of hard with the leadership of the gen- bers of Congress who have not done Treasury when a plan is fair on its tleman from Ohio (Mr. PORTMAN) and very much about these kinds of prob- face. It is entirely within the discre- the gentleman from Maryland (Mr. lems in the past. It is based on the tion of the Department of Treasury to CARDIN) to make it easier for small em- premise of how very little can this Con- determine the procedures for that. It is ployers to offer pensions. gress do and still go out with a straight entirely within their discretion to say This bill also reduces costs and regu- face and say they have done something even though your plan is fair, even latory burdens for employers who vol- about this problem. though it treats everybody the same, untarily sponsor pension plans. I would Let me tell you, if your family’s fu- even though you have a uniform ben- note that thanks to the leadership of ture is dependent upon an employee efit all the way through, still you do the gentleman from New York (Mr. pension plan, and you are asking what not meet the test. HOUGHTON), this legislation prevents is this Congress doing to protect me, to There are circumstances where a the IRS and the Federal Government protect my family, what is this Con- plan is perfectly fair. In fact, you could H1238 CONGRESSIONAL RECORD — HOUSE April 11, 2002 have a uniform benefit for every level (Mr. PASCRELL asked and was given collapse in the number of defined ben- of paid worker in the plan, but because permission to revise and extend his re- efit plans providing reliable pensions one of the workers at the middle or marks.) to workers. The plans are not col- higher level came on to the plan at an Mr. PASCRELL. Mr. Speaker, I have lapsing; they are converting to defined earlier age, it might not meet the spe- heard it all today. I really have. When contribution plans, a different arrange- cific mathematical tests that the my friend from Arizona says that what ment, in my opinion, over the long run, Treasury Department uses. we need is a balanced approach, at this one not likely to serve the worker There needs to be some kind of test, time of the game? You tell that to quite as well. We have 401(k) choices, a but tests are just that; they are mathe- Wayne and Kathy Stevens, who in their bewildering array, facing workers, matical, they are specific. Sometimes 401(k) had $720,000 in savings wiped without having provided them suffi- they do not work to determine whether away. cient information to best steer their something is fair or not. Should there b 1300 interests in light of their new respon- not be some safety valve? The junior sibilities. And, obviously, as the Enron senator from New York thinks there You tell them what they need is a case has so sadly shown, we have insuf- should. It is in the Grassley bill that balanced approach. We are beyond a ficient protections that protect work- she has cosponsored. It has passed this balanced approach. Besides someone ers from the kind of abuse that oc- House five times, by votes of over 400 going to jail, those people need relief; curred by an employer acting in what, votes it has passed this House. It is and they are not getting it in this leg- I believe, will be very actionable ways something that has been totally bipar- islation. My colleagues may think that in the Enron circumstance. tisan from the start. This is nothing is theatrics. You tell that to them, So what we have before us are two new. that couple out in Washington State. approaches to try and fix some of these I would just like to be clear, finally, This legislation includes no bona fide issues. Sometimes the choices before that the legislation before us does ad- structural changes that will create pro- us are dumb and dumber. Today, I dress problems that have arisen be- tection. It does not require equal rep- think they are good and better. I am cause of what happened at Enron, but resentation of employers and employ- going to vote for the underlying bill. I it affects all folks who are in defined ees on the 401(k) plan management am going to vote for the substitute, in contribution plans in this country. It boards. It does not create equity be- any event. I think we are making a does make significant steps forward. tween the claims of workers and the step forward with the passage of either executives if the company files for ANNOUNCEMENT BY THE SPEAKER PRO TEMPORE one of these choices today. bankruptcy. It does not mandate that The SPEAKER pro tempore (Mr. Let us take a look at, first, the un- independent, unbiased investment ad- LATHAM). Members are reminded that derlying bill. It allows diversification vice be provided to rank-and-file em- improper references to members of the protection that we do not have today. ployees. In other words, this bill is at other body are to be avoided. The 3-year rolling average is not as worst, a placebo; at best, a Band-Aid on Mr. PORTMAN. Mr. Speaker, I yield good as the Committee on Ways and a deep wound. 2 minutes to the gentleman from Texas Means’ 3-year provision, which is a dis- For these reasons and for what the (Mr. BRADY). tinct advantage in the underlying sub- bill does not do, I urge my colleagues Mr. BRADY of Texas. Mr. Speaker, I stitute; but it is an advantage, and it to vote against the Republican bill and am a Houston area Congressman. Many will protect workers, allow them to be for the Democratic substitute. We of the Enron employees are my neigh- able to put a more healthy investment know who brought you to the dance; bors. They are good people, and they balance into their retirement funds; but you do not have to keep on saying have lost their jobs and they have lost the 30-day notice on blackout periods yes, yes, yes. their retirement through no fault of and an absolute guarantee they will Our substitute levels the playing their own. They do not have time to sit have a right to trade and diversify field. It gives rank-and-file employees around thinking of clever movie titles within that period of time. That was in the same pension protection as the ex- to stick into their speeches. They are the underlying bill that was obviously ecutives. For us to ask anything less, too busy finding jobs and trying to re- tragically not in the Enron cir- we will not do a service to all Ameri- build their homes and their lives. cumstance, to the abuse of many of I am ashamed of those in Congress cans, just a few. The way I see it is certain assets of those employees. A big step forward who continue to try to score political with that one. points off the misery of these workers the company that I have invested in, if A big step forward in my opinion on from Enron. The fact of the matter is I am part of the pension plan, are the providing investment advise, much the biggest threat to future retirement property of the employees. greater availability of investment ad- plans is not the prospect of future In conclusion, Mr. Speaker, I think vice to workers facing these 401(k) Enrons. The biggest threat is political our substitute does a better job in try- choices. I am very pleased that the grandstanding here in Washington that ing to address the problem. gentleman from Ohio (Mr. BOEHNER), destroys companies’ incentives to Mr. STARK. Mr. Speaker, I am happy the chairman of the Committee on share their wealth with the workers to yield 3 minutes to the gentleman Education and the Workforce, incor- who helped achieve it. from North Dakota (Mr. POMEROY). The fact is these are thoughtful safe- Mr. POMEROY. Mr. Speaker, I thank porated into this draft changes that I guards today to give workers more con- the gentleman for yielding me this proposed that make sure that a fidu- trol over their retirement plans, while time. ciary standard applies in the providing encouraging companies to help them The security of retirement programs of that advice; and it discloses fees in a build up their nest egg for retirement. of America’s workers is about as im- clear and uniform way, and that it has This legislation does not satisfy the portant a thing as I think we are going all of the advisors providing this ad- business community, it does not sat- to tackle. It has been my pleasure to vice, subject to administrative pen- isfy all the workers. It certainly does work with people on both sides of the alties in those circumstances where not satisfy the lawyers who would like aisle on this issue for many years. I they have a vested interest in the sale. to sue everybody. But when combined want to commend, in particular, the I believe that this will go a long way with needed accounting reforms, stiffer gentleman from Ohio (Mr. PORTMAN) in a very secure format to provide penalties for corporate fraud and a for the substantive and serious-minded them the advice they need. healthy dose of buyer beware for any- work he has put into this topic. He is This is a choice; two good choices. one looking to invest in stock, this truly one of the experts in the Con- Yes on the substitute is the preferred should help to prevent the Enrons of gress, House and Senate, on this issue; choice. The other one is good too. the future, and this is a sound balance and his leadership has been important. Mr. STARK. Mr. Speaker, I yield 2 that we need. Let us look at where we are today. minutes to the gentleman from Ohio Mr. STARK. Mr. Speaker, I yield 2 Only half the people in the workforce (Mr. KUCINICH). minutes to the gentleman from New today have access to workplace retire- Mr. KUCINICH. Mr. Speaker, what is Jersey (Mr. PASCRELL). ment savings. We have absolutely a at stake here today is the faith of the April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1239 American people in their economic sys- employee stock option plans. It im- the Committee on Ways and Means tem and in this Congress. The Amer- proves access to retirement planning proposal on this issue, the total Com- ican dream is work hard, get ahead, services so the average line worker, or mittee on Ways and Means proposal, or give your life to a company, get a se- the CEO, can take advantage of up-to- the complete Committee on Ways and cure, decent retirement pension. Well, date, latest investment advice. Means proposal and/or the Miller sub- that dream is being destroyed by cor- I am encouraged by the action of this stitute. Let me share with my col- porate executives who are cheating House, and I applaud the leadership on leagues why, Mr. Speaker. people out of their hard-earned retire- this issue. There is no question that I live with this every day. The 18th ment benefits. Americans need security and safety in Congressional District has Enron in its As the Nation watched enormous cor- their pensions. This is a fantastic step district. I am hoping for rehabilitation porate bankruptcies unfold at Enron in that direction. I salute all who have and reconstruction and the oppor- and Global Crossing, and as the people participated. I urge my colleagues, as tunity for a new entity to grow and of my district watched Chapter 11 pro- they prepare to leave this Capitol, that thrive, but I live every day with the ceedings at LTV Steel, we see the plot when they vote for this bill, they are heartfelt tragedies of employees who thicken around one major theme. giving an underlying security to the now still are in foreclosure, who cannot There are two sets of rules. Executives pensions of all American workers. have health care, whose pension bene- get one set of rules and the employees Mr. PORTMAN. Could we have a divi- fits, along with the retirees, are long have to play under a different set of sion of time, Mr. Speaker. gone. rules. Corporate executives get special The SPEAKER pro tempore (Mr. DAN When they ask me what are we doing, treatment, including more investment MILLER of Florida). The gentleman they are asking for a comprehensive choices, no lockdown restrictions, gen- from Ohio (Mr. PORTMAN) has 51⁄2 min- and inclusive response. They wonder if erous deferred compensation plans that utes remaining; the gentleman from the hearings of these past months, are not required to be disclosed, guar- California (Mr. STARK) has 43⁄4 minutes where there was great drama, whether anteed rates of return on pension in- remaining. this Congress had come together in a vestments, and a golden parachute of Mr. PORTMAN. Mr. Speaker, I yield bipartisan way. retention bonuses and other benefits 1 minute to the gentleman from Michi- I would say to my colleagues, Mr. when a company goes under. gan (Mr. CAMP). Speaker, that I am very sad that as a Employees, on the other hand, have Mr. CAMP. Mr. Speaker, I want to member of the Committee on the Judi- barriers to information, fewer options, thank the gentleman for yielding me ciary, the Committee on Rules did not more restrictions on investment, and this time; and I also want to commend see fit to establish some parameters to no guaranteed returns. The most egre- him on his efforts on not only this bill, give penalties to the destruction of gious disparity is that during a bank- but years’ long efforts on making sure documents. It answers the concerns of ruptcy, executive pension plans are to- that retirement security is a reality Andersen employees, and it answers tally protected from creditors, and ex- for all Americans. the concerns of ex-Enron employees; ecutives can count on cashing in their This legislation really does address but it does not answer the concerns entire package. On the other hand, em- in the right kind of way the problems that we would never want this to hap- ployee protections are not protected that we have seen so much in the press pen again. from creditors. Employees stand at the lately. Employee rights and protec- Mr. Speaker, I wanted to vote for end of the line and must wait behind tions are enhanced. We do not have this legislation today; and I want my other creditors to claim what right- burdensome regulations to affect in- constituents to know why I am not fully belongs to them for compensation vestment and keep people from invest- going to vote for it, because this pen- that is already earned. Finally, if em- ing. We will see pension benefit state- sion bill does not answer the concerns. ployees do get to make a claim, that ments; we will see investment edu- It does not give independent advice claim is capped at a mere $4,650. cation notices. The bill will give em- that is needed for these employees. It At the end of the Enron debacle, Ken ployees more control over the invest- does not give them the opportunity to Lay still receives $475,000 each year for ment of their accounts once they own fully diversify their company stock, the rest of his life and a prepaid $12 them, or become vested in that money. and fails to give workers a voice in ad- million insurance policy; but the em- They will have three investment op- ministering and protecting their retire- ployees’ 401(k)s are drained, and they tions to choose from, and that will be ment savings through employee rep- will be lucky if they get their $4,650 required under this bill. There will be resentation on pension boards; and for maximum severance pay. an advanced notification to workers if the first time since this bill was en- This bill does nothing to protect em- there is a blackout period so that em- acted, the Republican pension bill pro- ployee pensions in a bankruptcy. It ployees have the same opportunity to vides employees with biased and con- fails to give equal protection to the make changes as anyone else does that flicted investment advice. employee pension as the law currently is involved in that plan before the re- Mainly, let me share with my col- provides to executive pensions. I urge a strictions come into effect. leagues a story that is ongoing. The ‘‘no’’ vote on this bill. Investor education and access to re- Creditors Committee refuses to give a Mr. PORTMAN. Mr. Speaker, I yield tirement planning and professional in- legal severance pay to these employ- 1 minute to the gentleman from Flor- vestment advice are improved under ees, Mr. Speaker, as I close. Why? Be- ida (Mr. FOLEY), a valued member of this legislation. This bill will reduce cause these are the big guys, and the the Committee on Ways and Means. the cost of regulatory burdens for em- little guys do not get heard. We need to Mr. FOLEY. Mr. Speaker, I thank the ployers who voluntarily sponsor these pass legislation where the little guys gentleman for yielding me this time. plans. will be heard. I ask my colleagues to Let me commend the gentleman from This clarifies current law treatment reject this legislation. Ohio (Mr. PORTMAN) for his hard work by making stock options not subject to I thank the distinguished gentleman from on this legislation. He has been at this payroll tax, and it is a good bill, and I California for yielding and for his leadership. for many, many years; and I salute urge its passage. Mr. Speaker, I had hoped that we could him. Mr. STARK. Mr. Speaker, I am have come to this floor in a bipartisan manner What this bill says loudly and clear- pleased to yield 2 minutes to the gen- and supported either the Committee on Ways ly: if it is good for the brass, it ought tlewoman from Texas (Ms. JACKSON- and Means proposal on this issue, the total to be the same for the middle class. We LEE). Committee on Ways and Means proposal, or are taking care of employees; we are Ms. JACKSON-LEE of Texas. Mr. the complete Committee on Ways and Means defining benefits; we are giving invest- Speaker, I thank the distinguished gen- proposal and/or the Miller substitute. Let me ment advice; we are providing ad- tleman from California for yielding and share with my colleagues why, Mr. Speaker. vanced notice of blackouts; we are giv- for his leadership. I live with this every day. The 18th Congres- ing diversification; we are taking off, if Mr. Speaker, I had hoped that we sional District has Enron in its district. I am you will, the corporate handcuffs that could have come to this floor in a bi- hoping for rehabilitation and reconstruction have locked many employees in their partisan manner and supported either and the opportunity for a new entity to grow H1240 CONGRESSIONAL RECORD — HOUSE April 11, 2002 and thrive, but I live every day with the heart- garding the new IRS position that is publican Party and their blatant, bla- felt tragedies of employees who now have overturning 30 years of tax policy, that tant, obsequious bowing to the wealthy homes in foreclosure, who cannot pay for was, the employee stock purchase and the large corporations in this health care, whose pension benefits, along plans are not subject to payroll tax. country. with the retirees, are long gone. The IRS overturned that 1971 policy It is something that should shame When they ask me what are we doing, they just recently. Imposing payroll taxes them. I do not know what they are are asking for a comprehensive and inclusive for Social Security and unemployment going to tell their children some day: I response. They wonder if the hearings of on employee stock purchase plans is came to Congress and helped the rich, these past months, where there was great just wrong, just as imposing payroll and I destroyed the poor. I destroyed drama, whether this Congress had come to- taxes on contributions to 401(k) plans pension plans by supporting Enron. I gether in a bipartisan way to do something ef- would be wrong. At least the IRS did took a lot of money from Enron, and I fective. This legislation today is not effective. not go that far. destroyed the pension plans of those I would say to my colleagues, Mr. Speaker, I hope the IRS sees we are serious workers. I denied seniors medical care that I am very sad that as a member of the about this matter and they do the right coverage. I refused to give a pharma- Committee on the Judiciary, the Committee on thing and simply make this issue go ceutical benefit. Rules did not see fit to allow an amendment away. This IRS ruling penalizes hard- What a wonderful way to take their that would establish some parameters and working people and is just wrong. pension money that they are going to add criminal penalties to the destruction of Again, I want to thank the gentleman get, far better than any workers are documents. That would answer the concerns from California (Mr. THOMAS) for his going to get, and then sit and tell their of the Andersen employees, and it answers dedication to this issue and for making children and grandchildren what they the concerns of ex-Enron employees; but the sure that America’s pension plans are did for this country. I hope they enjoy legislation today is not the tough reform it safe and secure. that retirement, because the average should be. Mr. STARK. Mr. Speaker, I yield my- working person in this country is not Mr. Speaker, I wanted to vote for this legis- self the balance of our time. I will try going to enjoy it if he is subject to the lation today; and I want my constituents to and summarize. Admittedly, this bill rules that are written in this law by know why I am not going to vote for it, be- will encourage more plans. the Republican majority in this House. cause this pension bill does nothing serious. It Vote no on the bill. b 1315 does not give independent advice that is Mr. PORTMAN. Mr. Speaker, I yield needed for these employees in these in in- The best way to encourage plans is to myself such time as I may consume. vestment choices. It does not give them the have no restriction on them at all, and I am so glad my colleague, the gen- opportunity to fully diversify their company then the very rich will have plans, but tleman from California, did not get too stock, and fails to give workers a voice in ad- they will not cover the employees. partisan there at the end, as he said he ministering and protecting their retirement sav- Professor Halperin at the Harvard would not. I do not know how he could ings through employee representation on pen- Law School has written and suggested be much more partisan than that. sion boards; and the bill does not give notices that this really solves a minor problem Again, I think it is a sad day on the to employees if executives are dumping their by creating a loophole through which floor of the House when we have that stock. This bill provides employees with bi- we could march an elephant, or a don- kind of rhetoric over legislation that ased and conflicted investment advice. key, too, perhaps, to be bipartisan in traditionally has been bipartisan, and Mainly, let me share with my colleagues a the closing minutes of this debate. that in fact is commonsense legislation story that is ongoing regarding ex Enron em- But the fact is that this is a bill writ- that helps working people. ployers. They hope to fight a Creditors Com- ten to satisfy rich contributors to the I do want to apologize to the gen- mittee that refuses to give a legal severance Republican Party, and it gives assist- tleman because earlier I said I had pay to these employees, Mr. Speaker, as I ance to major corporations and to own- thought he had voted for the provision close. Why? Because these are the big guys, ers of small businesses without any re- he was talking about. It passed the and the little guys do not get heard. We need gard to protecting the employees who House 407 to 24. It has passed the House to pass legislation where the little guys will be are under them. five times, as he knows. But he was not heard. I ask my colleagues to reject this legis- And it is couched in some language one of the people who voted for that, lation, and fight for and with the little guys! that will say there is a little bit here Mr. PORTMAN. Mr. Speaker, I yield and I apologize for saying that. and there, but the fact is that we give 2 minutes to the gentleman from Texas Earlier speakers have said there are the Treasury the right to make the de- no bona fide structural changes in this (Mr. SAM JOHNSON), who is chairman of the Subcommittee on Employer-Em- cision of whether the plans meet the bill. The gentleman from California ployee Relations of the Committee on antidiscrimination rules, and then give (Mr. STARK) has just talked about it in Education and the Workforce, as well the Treasury no direction. So if the strictly political terms. as serving on the Committee on Ways Secretary of the Treasury does not act, Let me tell Members what the bill and Means. there are no antidiscrimination rules. does. It provides more education, it (Mr. SAM JOHNSON of Texas asked Mr. Speaker, this is a bad bill. It is a provides more information, and it pro- and was given permission to revise and bill that is unfair. It is a bill that helps vides more choice to workers. That is extend his remarks.) only the very rich and the owners of what it does. All of that leads to more Mr. SAM JOHNSON of Texas. Mr. businesses, but leaves the workers with security in retirement. Speaker, I hate to tell everybody this, less protection than they start with In terms of education, it says to but there is independent advice author- now. workers that we are now going to allow ized in this bill; and it is for everybody, I guess that is what we have to ex- them to get pre-tax advice. They can not just the bottom, but the top and pect from a Republican-controlled take pre-tax dollars, and go out and get the bottom. House. That is what they have been their own advice. I think that is a good I thank the gentleman for yielding doing at every step of the way. thing. There is a bipartisan consensus time to me. There is the tax bill, which only in the pension world that that is one of The Pension Security Act contains gives 90 percent of the benefits to 2 per- the things we need to focus on now is some important provisions that will cent of the richest people in this coun- giving better information so they can modernize pension legislation. The try. That is a Republican operation. make informed choices. gentleman from California (Mr. THOM- There is a bill that talks about edu- It also provides for investment advice AS), the chairman of the Committee on cation, but does not fund it. That is a the employer can provide to the em- Ways and Means, also included in this Republican plan. ployee. It also provides for the first bill a very important pension-related So one more step in a Republican- time a requirement that employers, as provision that will overturn a new IRS controlled House to hammer down the people enter 401(k)s or other retire- position on employee stock purchase working people and the average person ment plans, send a statement which plans. in this country to the benefit of the provides generally-accepted invest- I have received a number of calls, let- few rich people, the few extreme right- ment principles that say, you ought to ters, and e-mails from constituents re- wing radicals who will support the Re- diversify. To put all your eggs in one April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1241 basket, as in the case of Enron, is a bad cans’ retirement benefits, not endanger from giving workers access to profes- idea. That notice is good. We want to them. One of the great strengths of our sional investment advice. Like most do that for the workers. country is that employees of compa- U.S. companies, Enron did not provide It provides more information. For nies can own stock in their place of its workers with access to this type of the first time ever, we are going to say business and become part of the cor- advice. This type of investment guid- that if there is a black-out period, that porate ownership. This has allowed ance would have alerted Enron workers is when they cannot change their stock workers who stock shelves at Wal-Mart to the need to diversify their accounts, because that is when we are changing and run the checkout counters at Tar- and enable many of them to preserve plan managers or plan administrators, get, not just the top-level manage- their retirement nest eggs. they ought to know about that. We ment, allow these other workers to The pension act today that we have provide for a 30-day notice period. It is build wealth and significantly enhance changes these outdated Federal rules not in current law. That is an impor- their own requirement security. and encourages employers to provide tant change. It lets people get out of On a bipartisan basis, we have con- quality investment advice for their the stock if they want to. sistently rejected efforts to place arbi- workers. We need to give investors In terms of choice, right now if you trary caps on a company’s stock be- more choices and more information to are in a 401(k) plan, your employer can cause Congress should encourage em- choose wisely, so that they are better tie you with the employer-matched ployers to provide matching contribu- able to navigate their way through the stock until you retire. At Enron, it was tions to their workers, not enact ex- volatile markets and maximize the po- age 50. In an ESOP it could be up to treme proposals that could jeopardize tential of their hard-earned retirement age 55 plus 10 years particpation. We Americans’ retirement security, or savings. say no, it ought to be 3 years. Once you spell the death of 401(k) plans alto- Workers must also be fully protected are there 3 years, you ought to be able gether. and fully prepared with the tools they to make that choice with better edu- The bipartisan Pension Security Act need to protect and enhance their re- cation, with better information; to be takes a balanced approach by expand- tirement security. The Pension Secu- able to sell that stock you have gotten ing worker access to investment advice rity Act accomplishes these goals. through an employer match. and including new safeguards to help I want to thank my colleague and the That is what this bill does. It has workers preserve and enhance their chairman of our subcommittee, the been mischaracterized today. There has own requirement security, such as giv- gentleman from Texas (Mr. JOHNSON), been a lot of rhetoric on the floor, but ing employees new freedoms to diver- who is also a member of the Committee those are the facts. Those are substan- sify their own portfolios. on Ways and Means, for all of the work tial changes from current law. Those But it also insists on greater ac- that he has done at both of our com- are structural changes to the law that countability from senior company in- mittees to enhance the bills that we are going to give the workers in this siders. We believe it is unfair for work- have before us, and for the important country more security in their retire- ers to be denied the opportunity to sell role he played in the process. ment by giving them better informa- company stock in their 401(k) accounts Mr. Speaker, I reserve the balance of tion to make choices, by giving them during blackout periods, while cor- my time. educational tools, and by giving them porate insiders can sell off their invest- Mr. GEORGE MILLER of California. choice, and empowering them to make ments and preserve their own savings. Mr. Speaker, I yield myself 41⁄2 min- decisions for their own retirement. Enron insiders got away with this, and utes. The SPEAKER pro tempore (Mr. MIL- we are going to change it. Mr. Speaker, the challenge today is LER of Florida). All time for debate by The Pension Security Act before us whether or not the House of Represent- the Committee on Ways and Means has atives is prepared to take the lessons of expired. gives rank and file workers parity with Under the rule, the gentleman from senior company executives. It also the Enron scandal and use those les- sons to apply to greater security of the Ohio (Mr. BOEHNER) and the gentleman strengthens the notice requirements by millions of workers’ 401(k) plans across from California (Mr. GEORGE MILLER) requiring companies to give 30 days’ each will control 30 minutes of debate. notice before a blackout period can the country. The Chair recognizes the gentleman begin. I would suggest that, in the Repub- from Ohio (Mr. BOEHNER). The bill also empowers workers to lican bill, they have failed to do that. Mr. BOEHNER. Mr. Speaker, I yield hold company insiders accountable for Later, we will offer a Democratic sub- myself such time as I may consume. abuses by clarifying the company is re- stitute that I believe provides for that Mr. Speaker, late last year, thou- sponsible for worker savings during greater security, greater control, and sands of Americans employed by Enron blackout periods when workers cannot greater say by the employees of the as- Corporation watched helplessly as make changes to their 401(k) plans. sets that belong to them that make up their company collapsed, and their re- Under the Pension Security Act, as much of their retirement nest egg, so tirement savings were lost with it. under current law, workers can sue we do not again see, as we saw on Today we are here to restore worker company pension officials if they vio- Enron, where, because of unethical be- confidence in our Nation’s pension sys- late their fiduciary duty to act solely havior by corporate executives, where tem. in the interest of 401(k) participants. because of greedy behavior by cor- Enron workers may be the victims of Enron barred workers from selling porate executives, where because of il- criminal wrongdoing. We do not know company stock until age 50. The bill legal behavior by corporate executives, that yet. But we already know they are gives workers new freedoms to sell where because of conflicts of interest victims of an outdated Federal pension their company stock within 3 years of by corporate executives, the employees law. The bill before us today will mod- receiving it in their 401(k) plan if they lost everything. ernize our Nation’s pension law and get company stock as a match. The They were never given advance no- help promote security, education, and benefits of diversification will help tice. They were never told what was freedom for employees who have workers better plan and save for their really happening with the corporation. worked and saved all of their lives for own future over the long term. They never had a representative on the a safe and secure retirement. As we all know it, defined contribu- pension board which was controlling President Bush followed up his State tion 401(k) type plans have become a the assets which 100 percent belonged of the Union speech this year by out- primary vehicle for retirement savings. to the employees. lining a series of bipartisan reforms Yet today, the vast majority of Amer- So we will have an opportunity with that could have made a critical dif- ican workers receive no investment ad- that substitute to reject the Repub- ference for Enron workers who lost vice on how best to structure their lican bill that fails to learn any lessons their retirement savings. The bipar- 401(k) retirement plans, and most can- and provide those greater protections tisan Pension Security Act of 2002 is not afford to pay for it on their own to the workers of this country, and to, based on those reform principles. like the company insiders can. in its place, provide for an employee But let us be very clear: Congress I think it is time to fix outdated Fed- representative, a rank and file em- should take action to protect Ameri- eral rules that discourage employers ployee representative, on the pension H1242 CONGRESSIONAL RECORD — HOUSE April 11, 2002 boards so we do not have the situation were making jokes about the stock. the diversification mandates and per- that we had at Enron and other cor- They were raising ethical concerns mits them to use their most recent an- porations where members of the pen- about offering these stocks for sale be- nual valuation for reporting stock sion board who were executive vice cause they knew their company was value on 401(k) stock benefit state- presidents have a conflict of interest conflicted because it was earning fees ments. between their career track and taking as an investment bank from the very I probably sat through more hours of care of the beneficiaries, the employ- clients whose stock it was touting. The hearings on pension benefit issues in ees, of the corporation; where they sold investment advice can be offered and it this session of Congress than any other their stock but never told the pension can be helpful, but it cannot be con- Member. beneficiaries that they were selling, or flicted. The Republican bill allows that One thing that has been confirmed that they thought it was the right investment advice to continue to be for me during these hearings is that thing to do. conflicted. employees want, need and deserve to We are going to make sure that a Mr. Speaker, I reserve the balance of receive professional investment advice rank and file member is a member, so my time. for their 401(k) plans. This bill does they will have access to the informa- Mr. BOEHNER. Mr. Speaker, I yield 4 this. tion and they will be able to make de- minutes to the gentleman from Texas Last month, Mr. Dary Ebright was a terminations for their fellow employ- (Mr. SAM JOHNSON), the chairman of witness before the Committee on Ways ees. the Subcommittee on Employer-Em- and Means; and he told his personal We are going to make sure that, after ployee Relations of the Committee on story about the horrors of putting all 3 years, they have a complete right to Education and the Workforce. your eggs in one basket. His personal divest, so if they want to diversify Mr. SAM JOHNSON of Texas. Mr. tragedy could have been prevented if he their portfolio, if they want to make Speaker, I thank the gentleman for had received professional investment other decisions about their retirement, yielding me time. advice. He had invested 60 percent of his they will be free to do it. Mr. Speaker, conflicted advice, we keep hearing about; but there is not 401(k) into Enron stock, and then he b 1330 any conflicted advice when you have cashed out his traditional pension plan In the Republican bill, which you see, somebody who is recognized as a pro- and bought Enron stock. His defined it takes 5 years to be fully able to di- fessional stock or option advisor being benefit pension would have paid him versify; and every 3 years a new period concerned. roughly $2,000 per month for the rest of starts with a new contribution. Three I have been concerned about many of his life. But instead, at the age of 54, years ago we were in the throws of a the pension proposals that have been the only retirement savings that he bull market, the greatest bull market introduced aimed at protecting Ameri- has left is the portion of his 401(k) that in modern history. And today, many of cans from themselves. If history is any was diversified. I asked if he received any profes- those same people have lost much of guide, Congress should very well pro- sional advice on these decisions. He their retirement because they were tect Americans by simply destroying said he did not. Too many workers lack locked into it. Three years is a very another successful pension plan. Just access to quality investment advice on long time, and a rolling 3-year period is look at what happened with the gov- how to invest their hard-earned sav- an unacceptable time to lock up peo- ernment’s over-regulation of the de- ings. Without a doubt, investment ad- ple’s assets that belong to them so fined benefit pension system. Congress vice must become law soon, and I urge they cannot make a determination killed those plans with kindness. Let Members to vote for this sensible bill about their retirement. us not repeat those mistakes here. which does that. It educates. It pro- We will also make sure people are The bill we are debating here is mov- vides investments advice. It provides treated equally. What we see in Enron ing pension reforms cautiously in the diversification, and it stops big execu- and many corporations today is that right direction, and it is balanced and tives from selling their stock during a the retirement plans are ensured for fair. And I want to commend the gen- black-out period. the executives. The retirement plans tleman from Ohio (Mr. BOEHNER) and Mr. GEORGE MILLER of California. are guaranteed. The benefits of the the gentleman from California (Mr. Mr. Speaker, I yield 2 minutes to the 401(k) plans are guaranteed for the ex- THOMAS) for their hard work in putting gentleman from New Jersey (Mr. AN- ecutives but not for the employees. So together this bill. DREWS). while Enron or other corporations go As a subcommittee chairman for the (Mr. ANDREWS asked and was given into bankruptcy, the executives are Committee on Education and the permission to revise and extend his re- taken care of. They are taken care of. Workforce, I will focus on those sec- marks.) They walk away with millions. The tions of the bill. First, I believe that Mr. ANDREWS. Mr. Speaker, I thank employee, they have to walk around the rolling 3-year diversification rights the gentleman for yielding me time. the corner and stand in line at the for employees who are given company Mr. Speaker, we should not replace bankruptcy courts and hope that there stock as a match in their 401(k) is as no advice for workers with bad advice is something left over at the end to see important an improvements as any in for workers. A few days ago, the attor- if they can put back together their re- this proposed legislation. Rolling di- ney general for New York alleged a tirement. versification will preserve employees’ scheme involving the Merrill Lynch This is really about a fundamental ownership ethics as stockholders, but firm that worked like this: one part of test, about the workers of this Nation will also permit individuals to diver- the Merrill Lynch house, he alleged, who now have got a rude awakening sify into other investments as they see was collecting huge fees for raising call; and through the tragedy of the fit. capital for Internet companies. The workers at Enron that their 401(k) plan Next, I am glad that we have clari- other side of the Merrill Lynch house that they are being required to lean on fied the issue of employer liability for was giving investment advice to indi- more and more for their retirement as stock market fluctuations in a 401(k) vidual clients, telling those individual vulnerable beyond their expectations, plan during a black-out period. We clients that these Internet companies is far more vulnerable than they were heard a lot of testimony in my sub- were the way to go with their money, led to believe. committee on this subject. Under the encouraging them to buy the stock. Finally, we say yes, investment ad- bill reported by the full committee, This is not what these advisors were vice is important; but that advice employers are not responsible for mar- telling each other, though, in private e- should not be conflicted. ket swings and 401(k) accounts during a mails and conversations that the attor- We have just witnessed this week black-out period, as long as they pro- ney general of New York later found. once again the incredible conflicts in vide 30 days’ notice in advance and What they were telling each other was the financial institutions of the coun- make sure they have a legitimate rea- these stocks were a joke; these stocks try where Merrill Lynch was offering son for doing the black out. were a disaster. They were using words retail advice to people to buy their The bill today also exempts privately that should not be used in mixed com- stocks; and in their e-mail traffic they held businesses from being subjected to pany or on the House floor. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1243 This bill wants to take the quality of employers, gives workers better infor- held liable when they take the pre- investment advice the New York attor- mation about their pensions, and en- cautions to get proper advisors in ney general alleged those people were hances worker access to quality invest- there, and all bills can do that. But, receiving and offer it to the pensioners ment advice. simply, even after Enron’s Ken Lay of this country. No advice should not Mr. Speaker, H.R. 3762 promotes se- was advising people against their inter- be replaced with bad advice. The pro- curity, education and freedom for ests, when we see news articles as re- posal would enshrine into the law, America’s workers who have saved all cently as yesterday about Merrill would legalize and legitimize the op- of their lives for a secure retirement. I, Lynch having a conflict of interest portunity of unscrupulous advisors to therefore, encourage all of my col- that works against employees’ rights offer advice which benefits them but leagues to join me in strongly sup- right on down the line, this bill still not the pensioners to whom the advice porting it. goes up and hails the fact that they are is offered. I would like to use the balance of my bringing in conflicted advice as if that Employees do need advice. They time, Mr. Speaker, to engage with the is the only way they can get advice for should be given a full array of choices. chairman in a colloquy. employees, and that is simply not the They should be made aware, and as the Mr. Speaker, I am very concerned case. Democratic substitute does, made that the diversification provision of The Democratic substitute takes available as to how to pay for the offer- the act not be applied in the case of a care of lock-out restrictions and provi- ing and receipt of independent advice. nonpublicly traded employer with af- sions. It lets employees know that if One of the many flaws in the major- filiates that may have a limited they are locked out, the executives will ity’s bill is that it enshrines into law amount of publicly traded stock out- not be taking advantage of that period the practice of authorizing and permit- standing. I do not believe it is the in- of time to their benefit. We give parity ting the giving of advice by people who tent of the legislation to have the di- of benefits for executives and rank- have more to look out for themselves versification provision apply in such a and-file workers to make sure that ev- than for the pensioners to whom the situation; and I would ask the distin- erybody is treated fairly. The sub- advice is offered. guished chairman if he would confirm stitute gives employees control over For this and many other reasons the my understanding, and if he would be their retirement savings in much underlying bill should be defeated and prepared to work with me to clarify greater degree than does the bill itself. the Democratic Miller substitute the application of the provision in this And we have additional protections for should be adopted. respect as this legislation moves. workers’ pension benefits and a rep- Mr. BOEHNER. Mr. Speaker, I yield 3 Mr. BOEHNER. Mr. Speaker, if the resentative of employees on the pen- minutes to my colleague and friend, gentleman will yield, I would say to sion board; and history shows us that the gentleman from California (Mr. my colleague that the act is not in- when that happens the pension itself MCKEON). tended to apply to diversification pro- does better. Mr. MCKEON. Mr. Speaker, I rise vision in the indication of a nonpub- All of these things are lacking and today in strong support of H.R. 3762, licly traded employer with affiliates found wanting in the Republican bill the Pension Security Act; and I thank that have only a limited amount of itself. That is why we do not have a the gentleman from Ohio (Mr. publicly traded stock outstanding. In rule that allows us to bring up indi- BOEHNER) and the gentleman from Cali- this special case, as in others that may vidual motions. That is why we are not fornia (Mr. THOMAS) for their hard arise, I would be pleased to work with allowed to stand here and side by side, work on this legislation. my colleague to clarify the application motion by motion sit here and tell the In his State of the Union address, of the provision to reflect this intent public why the provisions of the sub- President George W. Bush called on and to provide for flexibility that may stitute are in fact much better than Congress to enact important new safe- be necessary to clarify the intent of those provisions of the bill. guards to protect the pensions of mil- the legislation. lions of American workers. The Presi- Mr. GEORGE MILLER of California. b 1345 dent called on Congress to move quick- Mr. Speaker, I yield 2 minutes to the Mr. BOEHNER. Mr. Speaker, I am ly to enact these important reforms so gentleman from Massachusetts (Mr. pleased to yield 3 minutes to the gen- that people who work hard and save for TIERNEY). tleman from Kentucky (Mr. FLETCHER). their retirement can have full con- Mr. TIERNEY. Mr. Speaker, I thank Mr. FLETCHER. Mr. Speaker, cer- fidence in our retirement system. the gentleman for yielding me time. tainly I think it is very important in In response to the President’s call, Mr. Speaker, clearly this morning light of a lot of the discussion we have Congress immediately took action by when I spoke on the rule I think I made heard about Enron about a number of holding several hearings on the Enron a point worth repeating here and that people losing investments over a num- collapse and its implications for work- is that the majority did not want to ber of years because of the ill-advice, er retirement security. have a rule that allowed for individual because of the way Enron reported its Mr. Speaker, we have listened to amendments to be made because that financing, and because of the lack of fi- both workers who have lost or are at would allow us to set up each aspect of nancial advice, I want to say I encour- risk of losing their retirement savings, this bill side by side so that the public age everyone to support 3762, the Pen- and we have listened to employers who would have an education and an in- sion Security Act of 2002, because it in- voluntarily offer their employees re- formed debate on the provisions of the cludes new safeguards and options to tirement savings plans. After listening respective bill versus the substitute help workers preserve and enhance to employees and employers, I am bill. their retirement security. pleased to announce that the House is Frankly speaking, we have executive It insists on greater accountability here today to provide new safeguards accountability in the Democratic sub- from companies and senior corporate to help workers preserve and enhance stitute. The other bill does not. We executives during blackout periods their retirement savings. At the same have honest, accurate and timely infor- when rank-and-file workers are unable time, it will still allow employers to mation for employees provided in the to change investments in their retire- have the incentive to provide retire- substitute. The bill does not have ade- ment accounts. Workers must be fully ment benefits by refraining from over- quate provisions for that. protected and fully prepared with the precipitous regulation. We provide for unbiased, independent tools they need to protect and enhance The Pension Security Act provides investment advice. The main bill spe- their retirement savings. workers with the tools they need to cifically allows for biased, conflicted This bill gives workers freedom to di- protect their retirement savings. For advice. And there is no reason on the versify. We have heard it gives employ- example, the bill gives workers free- planet why that should ever be the ers options to allow sale of company dom to diversify their investment op- case. There are more than ample re- stock after 3 years, the 3-year rolling tions, creates parity between senior sources out there to give unbiased, diversification, or allows workers to corporate executives and rank-and-file unconflicted advice. Employers only sell company stock after 3 years of workers, clarifies the fiduciary duty of want to make sure that they are not service, the 3-year diversification cliff. H1244 CONGRESSIONAL RECORD — HOUSE April 11, 2002 It prohibits companies from forcing Two years ago, employees from a and became millionaires because of a worker investment in company stock. Westbrook, Connecticut lighting com- program that we in this Congress cre- Opponents of the bill, in the bill that pany learned a similar lesson. The ated to create pension security. will be offered as an option here, allow company lost $2 million from their pen- Were there bad actors at Enron? Yes. actually the employees to self-direct sion plan. I met with these men and Were there loopholes that need to be stock and money that actually is not women as we worked together to win closed? Yes. This bill closes those loop- theirs but it may belong in the future back their hard-earned retirement sav- holes and brings about responsibility, to other employees for several years, ings, and no one should ever have to go but we have to be very careful not to and I think that is a major problem in through what those families did. throw the baby out with the bath consistency that exists with the other This Republican bill does virtually water. We do not need to paint a broad proposals here. nothing to prevent what happened brush that destroys pension security by This bill creates parity between sen- there or at Enron. It fails to allow em- destroying any incentive for businesses ior corporate executives and rank-and- ployees the right to fully diversify to have pensions and 401(k)s, and we file workers, the captain and sailor eq- their stock. It fails to hold executives have to be very careful about who we uity provisions the President has who are fiduciaries of the pension plan castigate as being rich because, in fact, talked about. It prevents senior execu- accountable if they violate the law; most of America’s wealth has been tives from selling stock during black- and Ken Lay has to be accountable. It earned by people who have invested in out periods because workers are unable continues to allow employers to give the sweat and the blood of their busi- to sell stocks in the plans during these the same conflicted financial advice nesses and their companies, and they periods, and it requires a 30-day notice the Republicans tried to push on the have been treated right. to workers before the start of a black- American workers last fall before the There are bad actors. The Merrill out period. Enron scandal broke. Lynch example sounds bad, but it does It clarifies that employers are re- We have an opportunity today to do not mean that every advice any profes- sponsible for workers’ savings during something worthwhile for middle-class sional ever gave was conflicted, nor blackouts. It clarifies that companies Americans, for working men and should we sell the American worker have a fiduciary responsibility for women in this country. We can tell short that they are not capable of giv- workers’ savings during a blackout pe- them today that, yes, we want to pro- ing information and making an intel- riod and does outline situations where tect your pensions because your life’s ligent decision. they may not be liable for losses in in- work has to be there for you and your I commend the President, the chair- dividually directed accounts. man of our committee, the chairman of family when you retire. That is what It enhances worker access to quality the Committee on Ways and Means, this country is built on. That is what investment advice. It includes the Re- and this Congress for dealing delib- our values are. That is the direction we tirement Security Advice Act which erately in closing the loophole that was passed since the 106th Congress. should go in. I urge my colleagues to vote against Enron used, holding corporate execu- This provision allows workers access to tives example, allowing people to di- this flawed Republican bill and vote for information and advice about their versify and allowing people the ability the Democratic substitute. 401(k) plans, which is greatly needed to Mr. BOEHNER. Mr. Speaker, I am to get unconflicted and accurate ad- ensure the growth we have seen in the pleased to yield 3 minutes to the gen- vice. last two decades in the defined con- Let us not castigate all of corporate tleman from Georgia (Mr. ISAKSON). tribution retirement plans, and as my America nor the great benefits that Mr. ISAKSON. Mr. Speaker, I thank colleagues will recall, the House passed most American workers have gained by the distinguished chairman of the Com- this legislation in November with a this important program. Let us not mittee on Education and the Workforce strongly bipartisan bill, but the Senate throw the baby out with the bath for this opportunity. has failed to act on this bill as of yet. water. Let us not adopt a Democratic Pension security has two compo- There are three reasons, I think, or substitute. Let us adopt the House pen- nents. First is protecting the workers’ three important differences with the sion security plan. opponent’s bill. It does not include in- investment but also is preserving that Mr. GEORGE MILLER of California. vestment advice access, which is one of investment to exist at all. As we deal Mr. Speaker, I yield 3 minutes to the with the ramifications of the immoral the provisions that would actually gentleman from Virginia (Mr. SCOTT) have helped Enron employees. It does and possibly illegal actions of Enron for the purposes of his remarks and en- not rely on education. Rather, it relies executives, and the loss to their em- tering into a colloquy with the chair- on overregulation. ployees, we must be very careful not to man of the committee. It increases the regulatory red tape react in such a way that we destroy the Mr. SCOTT. Mr. Speaker, I rise today that I believe will discourage these benefits that most Americans have and to talk about an amendment I offered types of defined contribution plans. the wealth that most have created. in committee to conduct a study look- Lastly, their answer always seems to We have talked a lot about Enron, ing into whether and how insurance be, let us sue for some redress. Let us and some people have painted with a could be provided for defined contribu- not give the personal freedom, respon- pretty broad brush. It has become al- tion plans. A defined benefit plan is one sibility, and the choice along with the most a corporate America statement. that defines the benefits one will get at education. The gentleman from California (Mr. retirement. But a defined contribution I encourage the passage of 3762. GEORGE MILLER), the distinguished plan only speaks to the amount of Mr. GEORGE MILLER of California. ranking member in our committee, money one can put into the plan, says Mr. Speaker, I yield 2 minutes to the brought us a chart during the debate to nothing about what will be there for gentlewoman from Connecticut (Ms. raise the question about the dispropor- someone’s retirement. DELAURO). tionate investment in some 401(k) ERISA provided many protections, Ms. DELAURO. Mr. Speaker, until plans by employees, and a couple of including guarantees for defined ben- the collapse of Enron, most Americans those companies were in Atlanta, Geor- efit plans but not for defined contribu- felt that their pensions would be there gia. They were in my district. tion plans. The Enron accounts we for them when they retired. They felt As we talk about Enron, we must have heard so much about were defined their savings earned from a lifetime of also remember the Coca-Cola Company contribution plans and, therefore, were hard work were protected. and Home Depot. Coca-Cola, with 83 not guaranteed. We know better now. We know that percent of the value of its 401(k) in In 1974 when ERISA was enacted, the our pension rules do not do enough to Coca-Cola stock, and Home Depot is 73 contribution plans represented an in- protect helpless employees from being percent, and the risk that the gen- significant portion of the plans, but locked out of their pension plans while tleman from California (Mr. STARK) today they constitute almost half of all their life savings go down the drain. kept criticizing about a half an hour plans, and because those plans are not They are not protected from venal ex- ago happened to be rank-and-file Coca- insured, those employees have no as- ecutives who took their money and Cola and rank-and-file Home Depot em- surances that their money will actu- ran. ployees who invested in their company ally be there when they retire. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1245 That is why I have been pleased to Miller-Rangel substitute. The Enron ment for executives and levels the work with the gentleman from Ohio disaster has illustrated a number of playing field for employees. I urge my (Mr. BOEHNER), the chairman of the glaring loopholes in our pension sys- colleagues to support the Democratic committee, to include a study which tem that led to some 15,000 Enron em- substitute. will explore the feasibility of devel- ployees losing more than $1.3 billion Mr. BOEHNER. Mr. Speaker, I yield 2 oping an insurance program for defined from their 401(k) retirement accounts. minutes to the gentleman from Ne- contribution plans, just as we have for Testimony in our committee indi- braska (Mr. OSBORNE). defined benefit plans. The study could cated that the actions of some Enron Mr. OSBORNE. Mr. Speaker, I join recommend, for example, a procedure executives went beyond simple misfea- my colleagues in support of the Pen- for private insurance paid for with the sance to actual malfeasance. The Mil- sion Security Act. The district that I premium on assets. To put that poten- ler-Rangel substitute ensures that em- represent is very rural, small towns tial cost in context, a defined benefit ployees will receive honest, accurate and small businesses; and I think it is insurance now costs about $19 a year information by providing, first, regular important to point out that most of per account. benefit statements to workers that the business done in this country is The study could also show what would include information regarding done by small businesses, not by For- kinds of assets could be insured; for ex- the importance of diversification; sec- tune 500 companies. My father was a ample, broadly based index funds, or ond, employees will be provided rep- small businessman, and my brother AAA bonds could be insured, whereas resentation on pension boards; third, currently runs one. individual stocks or junk bonds may the substitute also provides for inde- The number one complaint that I not. The recommendation of the study pendent, nonconflicted investment ad- hear is that government regulation is could protect future employees from vice when company stock is offered as so burdensome that many small busi- losing their retirement funds because an investment option; and finally, it nesses are damaged or driven out of stock prices collapse or because the ensures that executives are not given business entirely. Examples of this funds in their account have been lost special treatment over rank-and-file would be parts of the Tax Code, ergo- to fraud or theft. employees. nomic regulation, health care paper- I would like to engage the gentleman Mr. Speaker, the collapse of Enron work, and retirement plan paperwork. from Ohio (Mr. BOEHNER), the chair- has revealed a number of serious flaws The President’s plan addresses the man of the committee, the primary in our pension system. This substitute major issues that resulted in the loss of sponsor of the legislation, in a colloquy is a major step forward in addressing retirement benefits of Enron employ- for the purposes of clarifying the im- those flaws. I urge my colleagues to ees without adding significant regu- portance of including the study I have support the Miller-Rangel substitute. latory burdens. I think it strikes a Mr. GEORGE MILLER of California. offered on insurance for defined con- good balance. The Pension Security Mr. Speaker, I yield 3 minutes to the tribution plans, and I would like his Act allows employees to sell stock gentlewoman from California (Ms. comments on the importance in includ- within 3 years. One of the major prob- SOLIS). lems at Enron was an employee had to ing that study in the bill. Ms. SOLIS. Mr. Speaker, I thank the be 55 years of age or more and had to Mr. BOEHNER. Mr. Speaker, will the gentleman from California for this be employed for 10 years or more. gentleman yield? time. It prohibits senior executives from Mr. SCOTT. I yield to the gentleman Mr. Speaker, I rise today in strong selling stock during blackout periods, from Ohio. opposition to the Republican’s mis- and requires 30 days’ notice before de- Mr. BOEHNER. Mr. Speaker, I want named pension protection bill. Rather claring blackouts. Neither of these to thank the gentleman for his work on than prevent future Enrons, the Repub- were true in the Enron case. this issue, and I want to state that we, lican version of their plan only weak- In addition, the plan requires compa- too, believe that his study could be im- ens our current pension laws and ig- nies to give regular financial reports portant in informing future public pol- nores the very basic reforms that on the value of the stock. Also the icy positions on this issue. And we re- Enron’s disaster created for us. gret that there was not enough time to President’s plan includes the Retire- finish out the few remaining details of b 1400 ment Security Advice Act, which has the study to include his provision in Mr. Speaker, unlike the Republican already passed the House, which pro- this bill at this time. It is our inten- version of pension reform, our bill vides for increased availability of in- tion to continue working with him, the would give employees a voice about vestment advisers to assist plan par- other committee of jurisdiction on this their pension plans. It requires a em- ticipants in making good decisions issue, and the other body, as this issue ployee representative to serve on pen- about their investments. Currently, goes to conference. sion boards. What a great idea. only 16 percent of businesses provide Mr. SCOTT. Mr. Speaker, reclaiming I am sure that the Enron employees this advice; and in most cases small my time, I thank the gentleman for his who recently lost their life savings businesses do not provide it at all, assurance and look forward to working would have loved to have had an oppor- whereas roughly 75 percent of employ- with him. tunity to be at the table to discuss how ees would like such advice. I think this Mr. BOEHNER. Mr. Speaker, I re- their pension plan funds would be would be very helpful. serve the balance of my time. spent. So the greatest concern I have is that Mr. GEORGE MILLER of California. Eliminating the disparity between this well-intentioned substitute, and I Mr. Speaker, can the Chair tell us how employer and employee pension protec- am sure it is motivated from good in- much time each side has remaining? tion goes way beyond just making up tentions, will provide safeguards that The SPEAKER pro tempore (Mr. DAN the composition of a board. We must will really eliminate pension plans, and MILLER of Florida). The gentleman also close the loopholes that provide that is absolutely something that helps from California (Mr. GEORGE MILLER) greater legal protections for executive no one. has 161⁄2 minutes remaining, and the retirement plans. Because of this loop- Mr. GEORGE MILLER of California. gentleman from Ohio (Mr. BOEHNER) hole, Enron executives not only res- Mr. Speaker, I yield 2 minutes to the has 12 minutes remaining. cued their money from a sinking ship, gentlewoman from California (Ms. Mr. GEORGE MILLER of California. but they were also able to shield their SANCHEZ). Mr. Speaker, I yield 2 minutes to the luxurious homes and other assets from Ms. SANCHEZ. Mr. Speaker, as a gentleman from Michigan (Mr. KIL- attacks by general creditors during the former investment banker and a small DEE), a senior member of the com- bankruptcy. Once again, the hard- business owner, I am well aware of the mittee. working rank-and-file men and women complexities that are involved with Mr. KILDEE. Mr. Speaker, I thank of Enron do not enjoy such protections. pensions and with private investments. the gentleman from California for Instead, they are vulnerable and left to I believe that most bankers and busi- yielding me the time. defend for themselves. ness owners try to do a good job for Mr. Speaker, I rise in opposition to Mr. Speaker, the Democratic sub- their clients and employees; but many H.R. 3762 and in strong support of the stitute eliminates this special treat- Americans invest too much of their H1246 CONGRESSIONAL RECORD — HOUSE April 11, 2002 money in their company’s stock, un- poration. Enron executives prefunded board. How simple could that be? Yet aware of the type of problems that deferred compensation plans that were the bill fails to do that. arise, like the ones that we have seen immune from claims of general credi- Mr. Speaker, it also continues special with Enron. tors once the company went into bank- treatment of executives. In other The Pension Security Act opens a ruptcy. words, executives could continue to dangerous loophole that allows self-in- Meanwhile, executive savings plans have their savings set aside and pro- terested people at investment firms to operate under different rules from the tected through their stock options and serve as principal financial advisers to employees’ 401(k) plans. Executive sav- so forth when a company fails, while employees and to offer conflicted ad- ings plans afford executives more rank and file would be at the end of the vice. We saw this as an example in the choice, more protection of assets, and line in bankruptcy holding this empty Merrill Lynch case detailed in the guarantee more money. Most compa- bag. Washington Post and other major nies offer these plans. As shown in the Perhaps most important, it fails to newspapers. 2000 study of Fortune 1000 companies, give employees early control of their The Miller-Rangel substitute would 86 percent of companies surveyed al- assets. Anybody’s standard financial offer employees independent financial ready had those plans, with the re- advice would be to diversify, and yet advice when company stock is offered mainder considering adding one. Enron the employees are denied the oppor- as an investment option under their set up an executive savings plan that tunity to diversify for at least 5 years pension plan. This is just one example lets participating executives con- under the underlying bill. Ordinary em- of how the Miller-Rangel substitute of- tribute 25 percent of their salaries and ployees would be prevented from diver- fers real reform to our pension system 100 percent of cash bonuses each year. sifying while corporate executives and how the base bill fails to give em- Executives were guaranteed a 9 percent would be allowed to sell the stock they ployees control over their money. rate of return on the first 2 years of the receive in stock options. We are miss- Mr. Speaker, employees have already plan, and allowed to put money in a va- ing a real opportunity here to help the lost too much. We must pass legisla- riety of investments. Executives were employees. tion that gives them more security for not limited to just Enron stock. Mr. GEORGE MILLER of California. their retirement, and I urge my col- In addition, Ken Lay holds a pension Mr. Speaker, I have no further requests leagues to reject the base bill and to that will pay $475,000 each year for the for time, and I yield back the balance vote for the Miller-Rangel substitute. rest of his life and a prepaid, $12 mil- of my time. Mr. GEORGE MILLER of California. lion life insurance policy. Think about Mr. BOEHNER. Mr. Speaker, I yield Mr. Speaker, I yield 4 minutes to the the workers at Enron. Think about how myself such time as I may consume. gentleman from Ohio (Mr. KUCINICH). they have to worry about making ends Mr. Speaker, let me close with our Mr. KUCINICH. Mr. Speaker, I went meet, how they may not be able to section on the general debate and to a grade school in suburban Cleve- make mortgage payments, and about thank my colleagues on both sides of land about a month ago to talk about how they may not be able to send their the aisle for their contributions to this current affairs, and I asked for a show kids to college or have bread on the process. of hands of about 300 grade schoolers, table. Meanwhile, the executives walk Members on both sides of the aisle How many have heard of Enron? Every away wealthier than ever. believe it is important to protect re- hand went up. These are first through Enron executives had similar pension tirement security of American work- sixth graders. And then I asked, What or insurance agreements, but employ- ers, and Members need to understand do you know about Enron? Some of the ees’ 401(k)s are drained. They will be that there are outdated Federal laws sixth graders actually knew there were lucky if they get their $4,650 maximum that need to be dealt with. workers who were cheated out of their severance pay. The lack of a consistent A bipartisan group of Members be- pensions. These were sixth graders. set of rules between employees and ex- lieves that the bill, the Pension Secu- I think it is fair to say just about ev- ecutives is unjust and unfair, and it rity Act, the base bill today, is the rea- erybody in America knows about should be illegal. Only the Miller sub- sonable approach to deal with this Enron, and most adults certainly know stitute makes it so because executive issue in a balanced way that protects about the fact that people were cheated plans have legal protections that put a the rights of employees further than it out of their pensions. Everyone in barrier between the money and the does under current law without driving America knows this except some Mem- general creditors. Enron executives employers out of the pension business bers in the House of Representatives. It were protected from losing their retire- or discouraging employers from setting is as if Enron never happened. ment. Employees were totally exposed. up new pensions; nor does it restrict Mr. Speaker, the bill that we con- It is time we stood up for the American the ability of employees to make deci- sider today continues special treat- workers here. sions with regard to their own ac- ment for company executive pension Mr. GEORGE MILLER of California. counts. plans at the expense of the employees. Mr. Speaker, I yield 2 minutes to the I believe my colleagues on the other It is like Enron never happened. gentleman from New Jersey (Mr. side of the aisle want to go too far, too It is just like Enron was some pass- HOLT). far that will have unintended con- ing fancy, instead of it being sympto- Mr. HOLT. Mr. Speaker, it is really sequences. As we get into the sub- matic of something that is wrong at quite simple. We have learned some stitute in a few minutes, we will have the core of this system, and that is very simple lessons; perhaps we should an opportunity to talk about those dif- that workers do not get fair treatment. have learned them a long time ago, but ferences and shortcomings. The Miller substitute is the only bill we certainly should learn them now in Mr. MOORE. Mr. Speaker, I rise today to that addresses the inequity between ex- light of Enron. The employees have express my reasons for voting against H.R. ecutives and employees. A vote for the been left holding the bag, while the 3762, the Pension Security Act, and the Miller- Miller substitute is a vote for fair corporate executives, sometimes in a Rangel substitute to this legislation. treatment for workers. The Miller sub- very duplicitous way, walk away with During my time in Congress, I have strongly stitute would prohibit plans for execu- their options, walk away with their supported legislation that would help employ- tives from receiving greater protec- bundles. ees prepare for their retirement. Pension re- tions under the law than the 401(k)- We have such a good opportunity form legislation affects all working Americans, type plans that employees have. here to get things right. But the bill and as such both parties in Congress have a As Enron began to implode in a wave before us, the underlying bill, fails to responsibility to work together in a thoughtful of accounting scandals, company ex- give employees notice when executives and conscientious manner on this issue. To ecutives not only cashed out millions are dumping company stock. It fails to that end, I am a cosponsor of the bipartisan in company stock, but also protected hold the plan fiduciaries accountable Employee Savings Bill of Rights Act, which themselves through a number of execu- and limits the ability of the employees empowers employees to take control of their tive-type plans. Enron employees stand to collect damages resulting from mis- retirement plan investments and gives workers as general creditors to recover 401(k) conduct under the pension plan. It de- substantial new rights to avoid over-concentra- losses from the misconduct of the cor- nies employees a spot on the pension tion in the stock of their own company. By April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1247 modifying the rules that apply to the 401(k) protect our working families and their retire- line employees did not volunteer for this take- plans and Employee Stock Ownership Plans ment security from greedy, unscrupulous cor- over. They were working for a profitable and (ESOPs) of publicly-traded companies, the porate wrongdoers. But, Mr. Speaker the Re- respected company, earning a fair salary and Employee Savings Bill of Rights provides publican Leadership has wasted that oppor- saving for retirement in a stable pension plan. workers with needed control over their retire- tunity. After Enron’s purchase of PGE, it was only a ment plan investments while preserving the Earlier this year, the Ways and Means Com- few years before the stability of Enron. PGE opportunity for employee ownership. Through mittee passed a truly bipartisan pension re- and their employee’s retirement savings began new diversification rights, new disclosure re- form bill. But, the Republican Majority chose to to unravel. Enron executives continued to en- quirements and new tax incentives for retire- merge that bipartisan measure with a con- courage employee investment in Enron stock ment education, this legislation would help troversial bill passed by the Education and and spoke of the integrity of the comapny’s fi- employees achieve retirement security through Workforce Committee. The product of that nancial position, while they sold their personal their 401(k) plans and ESOPs. merger, H.R. 3762, does not protect employee holdings of Enron stock and drove the com- I have serious concerns with both H.R. 3762 pensions, fails to prevent future scandals like pany into bankruptcy proceedings. and the Miller-Rangel substitute to this legisla- Enron, and opens a new loophole that jeop- I have seen the pain and disbelief of PGE tion. I am disappointed that the House has not ardizes employee savings. H.R. 3762 also es- employees firsthand. Dozens of people I know been able to come together on this issue to tablishes complicated diversification rules that personally have had dreams shattered, been advance reasonable, much needed pension do not allow workers substantial control over forced to postpone life decisions and delay re- reform that will benefit working Americans. Un- their retirement investments. Under the Miller tirement. Those involved in the Enron debacle fortunately, the substitute overreacts to the un- Substitute employees would be able to diver- have failed and abused honest hardworking fortunate circumstances surrounding Enron’s sify company-matched stock after three years employees in my district and across the coun- historic bankruptcy. Congress has a duty to of participation in a 401K plan. try. the American people to enact responsible leg- Under current law, employees are allowed Sadly, it may yet be determined that past islation that will benefit employees rather than to receive independent, comprehensive invest- Congressional and governmental actions con- impose new administrative burdens on millions ment information as a part of their employee tributed to the betrayal of these honest em- of retirement plans. benefits package. H.R. 3762 would overturn ployees. Today, we have the opportunity to The substitute would thwart bipartisan ef- current law, and allow employers to offer con- pass legislation that can help to prevent the forts to reduce administrative burdens on em- flicted investment advice to their employees. destruction of working families’ lives and re- ployers who voluntarily sponsor retirement Financial institutions should not be able to tirement savings in the future. It would be trag- plans by imposing new, expensive rules on give an employee investment advice if the fi- ic if Congress fails American workers again, such plans. The substitute’s provision that nancial institution stands to profit from that ad- which will surely happen under the Republican would require retirement plans to insure vice. About 15,000 Enron employees lost their leadership’s proposal. The Republican pension against vaguely defined plan asset losses retirement savings because Ken Lay and other bill not only falls short of improving an obvi- would increase the cost of these retirement Enron executives assured their employees ously flawed pension system, but actually plans, creating a disincentive for employers to that Enron stock was a sound investment. Ken weakens current law by providing employees offer their employees a pension plan. Lay and his cronies lined their pockets while with biased and conflicted investment advice Additionally, under the substitute, a plan they misled their employees with bad advice. without access to an independent alternative. To provide true security for retirement sav- participant is allowed to divest of company The conflicted investment advice provisions in ings, pension reform must: stock held in an account after just one year. this bill would set workers up for another ∑ hold corporate executives accountable for The bipartisan Employee Savings Bill of Enron. Mr. Speaker, we know all too well the their actions, Rights Act, of which I am cosponsor, requires corrupting power of greed. ∑ give employees control over their own re- only current holdings to be diversified out over In contrast the Miller Substitute would offer tirement dollars. five years. The substitute’s one-year diver- employees honest, accurate, and timely in- ∑ ensure workers a voice on management sification provision runs the significant risk of vestment information. It would prohibit pension pension boards, and causing disruptions in both plan administration plans from giving misleading information, re- ∑ provide independent advice for workers. and the markets. quire that workers receive regular benefit I strongly support the Democratic substitute Further, the substitute would require em- statements and are notified of plan lockdowns amendment, which will provide these needed ployers to create joint employer-employee re- at least 30-days in advance. reforms and help protect workers’ retirement tirement plan trusteeships. Employers in Kan- As more Americans turn to 401K and other savings from the misdeeds of executives and sas’s Third District have assured me that this retirement plans to help them prepare for their corporations. The pain I have witnessed first- provision has the potential to complicate plan golden years, we must act to prevent future hand among the PGE employees in my district administration to the point that some employ- Enrons. The Republican Leadership had an demands that Congress provide true pension ers may drop their plans altogether. The work- opportunity to act in bipartisan manner to pro- security. ing people of this country deserve a more tect the retirement security of working families, Mr. MEEHAN. Mr. Speaker, today, the thoughtful, careful process from their federal but they chose not do so. H.R. 3762 fails to House voted on H.R. 3762, the Pension Secu- representatives. solve our pension law problems. In fact, the rity Act. Had I been present, I would have While the substitute goes too far in seeking bill would actually create new ones. The Miller voted in favor of the Democratic substitute au- to ensure reasonable safeguards on employer- Substitute protects workers and their invest- thored by Representatives MILLER and RANGEL sponsored retirement plans, the so-called Pen- ments from greedy corporate entities, provides and against final passage of H.R. 3762, the sion Security Act does not go far enough in unbaised, independent investment advice, and so-called Pension Security Act. protecting working Americans. Additionally, I gives employees control over their retirement I would have opposed H.R. 3762, the Re- am extremely disappointed that the House savings. publican proposal, because it would have leadership decided to schedule this legislation I urge my colleagues to oppose H.R. 3762 done little to prevent future ‘‘Enron’’ scenarios, for floor consideration instead of the bipartisan and to vote for the Miller Substitute. where executives and pension administrators Employee Savings Bill of Rights. Last month, Mr. BLUMENAUER. Mr. Speaker, I rise withheld financial information from the employ- the Ways & Means Committee approved this today in strong opposition to H.R. 3762, the ees of that company. Without the necessary legislation by a near-unanimous vote of 36–2. Republican leadership’s missed opportunity to information about the financial status of the I am frustrated, though not surprised, at the address concerns for the security of working company, Enron’s non-executive employees House leadership’s unwillingness to address Americans’ pension plans. I fully support the then lost the bulk of their retirement sayings the important issue of pension reform in a bi- Democratic substitute amendment, which when the value of the company’s stock fell partisan fashion. makes an honest attempt to correct the prob- through the floor. I will continue to support bipartisan efforts to lems apparent in the wake of the Enron deba- H.R. 3762 fails to require anyone to alert reform our nation’s retirement system in a cle. employees when company officials begin manner that benefits both employers and em- I represent as many Enron survivors as any- dumping company stock, as Enron executives ployees. I urge my colleagues to do the same. one outside of Houston. Portland, Oregon is did just before the value of Enron stock Mr. ETHERIDGE. Mr. Speaker, I rise in op- the home of Portland General Electric (PGE), dropped dramatically on the market. H.R. position to H.R. 3762, the Pension Security a stable utility company founded in 1889 that 3762 also fails to hold fiduciaries of pension Act and in support of the Miller Substitute. has provided steady employment to 2,700 em- plans accountable if they violate the law. Fur- Today, we have an important opportunity to ployees. Enron purchased PGE in 1997. PGE thermore, under H.R. 3762, employees H1248 CONGRESSIONAL RECORD — HOUSE April 11, 2002 would not have the option to fully diversify defined contribution pension plans where a These are common sense reforms that will their stock in a timely manner, nor would they poor investment or management decision may help employees make better, more informed have a voice in the administration and protec- cause untold financial hardship on individuals investment choices to prepare for their golden tion of their retirement savings. Combined, in or near their retirement years. years. The ENRON scandal exposed weak- these failings would leave future workers vul- We clearly need to move the process of re- nesses in our pension laws that could jeop- nerable to the same type of financial disaster form forward—hopefully combining the best ardize these retirement savings. Hardworking facing Enron’s employees today. features of both the bill and substitute and Americans should not lose all of their retire- I would have supported the Democratic sub- more thoroughly vetting the more problematic ment savings due to the wrong doing of cor- stitute to H.R. 3762 because I believe it would features of each. porate executives and loopholes in our pen- go a long way towards preventing a future Mr. Speaker, we don’t have the luxury of sion laws. The legislation, while not perfect, ‘‘Enron’’ situation from occurring. The Demo- doing nothing. We have long recognized the will bring much needed improvements to our cratic substitute to H.R. 3762 would arm em- outdated nature of many of our pension laws. private pension system and help millions of ployees with the same access to information Enron’s collapse has provided the impetus for American workers save for a happy and as corporate executives, giving employees the action. healthy retirement. tolls they need to make informed investment Protecting workers’ retirement benefits and Mr. BOEHNER. Mr. Speaker, I yield decisions regarding their pension plans. More- encouraging the expansion of pension plans to back the balance of my time. more companies and workers are positive over, H.R. 3762 would give employees rep- AMENDMENT IN THE NATURE OF A SUBSTITUTE goals in the abstract. But writing the rules is resentation on the boards that manage pen- OFFERED BY MR. GEORGE MILLER OF CALI- sion plans and a say in the administration and always more difficult. FORNIA We should proceed carefully. protection of those plans. I would have also Mr. GEORGE MILLER of California. Mr. KIND. Mr. Speaker, this past winter, Mr. Speaker, I offer an amendment in supported the Democratic substitute because thousands of ENRON employees, stock- the nature of a substitute. it would require executives to notify the pen- holders, and their families saw their life sav- The SPEAKER pro tempore (Mr. DAN sion plan when they are selling large amounts ings disappear. While their nest eggs were MILLER of Florida). The Clerk will des- of company stock, and it would give the em- being crushed, top executives were selling ignate the amendment in the nature of ployees the right to diversify their investments stock at top dollar and the auditors were a substitute. as soon as they are vested in the funds. shredding documents. The ENRON debacle I was unable to vote for the Democratic plan The text of the amendment in the na- shook the foundation of our country’s private and against H.R. 3762 because of a compel- ture of a substitute is as follows: pension system and caused many people to ling obligation in my Congressional district oc- wonder if the same thing could happen to Amendment in the nature of a substitute curring at the time of the votes. Former Mayor offered by Mr. GEORGE MILLER of California: them. Today, 46 million Americans participate of New York City Rudolph Guiliani is giving re- Strike all after the enacting clause and in- in 401(k) and other pension programs with marks in Lowell, Massachusetts today—which sert the following: more than $4 trillion invested in the private is located in my Congressional District. Mayor SECTION 1. SHORT TITLE AND TABLE OF CON- pension system. Giuliani demonstrated superb and heralded TENTS. Congress has a responsibility to improve re- (a) SHORT TITLE.—This Act may be cited as leadership immediately following the Sep- tirement security and restore confidence in the tember 11th terrorist attacks on the World the ‘‘Employee Pension Freedom Act of pension system for millions of Americans. In 2002’’. Trade Center in New York City. Tragically, 30 1974, Congress enacted the Employee Retire- (b) TABLE OF CONTENTS.—The table of con- of my constituents lost their lives in those at- ment Income Security Act (ERISA) to provide tents is as follows: tacks, as they were on the American Airlines protection of pension benefits for American’s Sec. 1. Short title and table of contents. jet which was one of two airplanes that private sector employees. While ERISA made TITLE I—IMPROVEMENTS IN crashed into the Twin Towers. Their families great strides, the growth of 401(k) plans and DISCLOSURE continue to mourn the loss of parents, children increased participation in the securities mar- Sec. 101. Pension benefit information. and siblings and every day feel the pain that kets call for improved safeguards to protect Sec. 102. Immediate warning of excessive terrorism has visited upon them. Mayor these individually controlled pension accounts. stock holdings. Giuliani has provided unique comfort to fami- Our Democratic substitute includes impor- Sec. 103. Additional fiduciary protections re- lies who lost loved ones on September 11th tant provisions that should be included in the lating to lockdowns. Sec. 104. Report to participants and bene- because of his boundless compassion, tre- underlying bill. For example, the Miller bill mendous leadership in the face of unspeak- ficiaries of trades in employer would provide employees a voice on their pen- securities. able tragedy, and unstinting efforts to help sion board where critical decisions about Sec. 105. Provision to participants and bene- these families overcome the financial and workers’ retirement security are made. In addi- ficiaries of material investment emotional difficulties caused by this terrible tion, the substitute seeks parity of benefits for information in accurate form. event. I have accordingly arranged for the executives and rank-and-file workers by clos- Sec. 106. Enforcement of information and Mayor to meet privately with these families at ing a current loophole that gives special treat- disclosure requirements. my residence and will miss these votes to at- ment for executive pension plans. TITLE II—DIVERSIFICATION tend that gathering. While I would prefer that the legislation on REQUIREMENTS As I was unable to vote for the Democratic the floor today contain some of the provisions Sec. 201. Freedom to make investment deci- substitute today, I am looking forward to hav- included in the Miller substitute, the Pension sions with plan assets. ing the opportunity to vote for a balanced and Security Act, is a step in the right direction to Sec. 202. Effective date of title. effective pension reform bill that I hope will be provide employees more control and decision TITLE III—EMPLOYEE REPRESENTATION the result of a House-Senate compromise on making over their 401(k) plans. Pension re- Sec. 301. Participation of participants in this critical issue. form must be carefully done so as not to im- trusteeship of individual ac- count plans. Ms. HARMAN. Mr. Speaker, the collapse of pose such onerous new restrictions that em- Enron and its impact on employees’ retirement ployers would be unwilling to offer pension TITLE IV—EXECUTIVE PARITY plans underscores the need to enact addi- plans, or might be encouraged to discontinue Sec. 401. Inclusion in gross income of funded tional federal protections. the plans they already offer. deferred compensation of cor- The bill before us is a step in that direction. Specifically HR 3762 would: porate insiders if corporation It is far from perfect—but perfection is not an Allow employees to sell their company-con- funds defined contribution plan with employer stock. option. Forward progress is. tributed stock after three years. Similarly, the substitute amendment offered Sec. 402. Insider trades during pension fund Ensures that corporate executives are held blackout periods prohibited. by my colleagues, GEORGE MILLER and to the same restrictions as average American TITLE V—INCREASED ACCOUNTABILITY CHARLES RANGEL, is not perfect either. While workers during ‘‘lockdown’’ periods. making some improvements over the com- Provide workers quarterly statements about Sec. 501. Bonding or insurance adequate to mittee bill, it too has some features that may protect interest of participants their investments and their rights to diversify and beneficiaries. have the effect of discouraging employers them. Sec. 502. Liability for breach of fiduciary from providing retirement benefits to employ- Ensure that employers assume full fiduciary duty. ees. responsibility during ‘‘lockdown’’ periods. Sec. 503. Preservation of rights or claims. Striking the right balance is often a difficult Expand workers’ access to investment ad- Sec. 504. Office of Pension Participant Advo- task. But it is especially difficult in an area like vice. cacy. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1249

Sec. 505. Additional criminal penalties. (3) RULE FOR MULTIEMPLOYER PLANS.—Sub- son knew, or exercising reasonable diligence Sec. 506. Study regarding insurance system section (d) of section 105 of such Act (29 should have known, that such failure ex- for individual account plans. U.S.C. 1025) is amended to read as follows: isted. TITLE VI—INVESTMENT ADVICE FOR ‘‘(d) Each administrator of a plan to which ‘‘(2) OVERALL LIMITATION FOR UNINTEN- PARTICIPANTS AND BENEFICIARIES more than 1 unaffiliated employer is re- TIONAL FAILURES.— Sec. 601. Independent investment advice. quired to contribute shall furnish to any ‘‘(A) IN GENERAL.—If the person subject to Sec. 602. Tax treatment of qualified retire- plan participant or beneficiary who so re- liability for tax under subsection (d) exer- ment planning services. quests in writing, a statement described in cised reasonable diligence to meet the re- subsection (a).’’. quirements of subsection (e), the tax imposed TITLE VII—GENERAL PROVISIONS (b) DISCLOSURE OF BENEFIT CALCULA- by subsection (a) for failures during the tax- Sec. 701. General effective date. TIONS.— able year of the employer (or, in the case of Sec. 702. Plan amendments. (1) IN GENERAL.—Section 105 of such Act (as a multiemployer plan, the taxable year of TITLE I—IMPROVEMENTS IN DISCLOSURE amended by subsection (a)) is amended the trust forming part of the plan) shall not SEC. 101. PENSION BENEFIT INFORMATION. further— exceed $500,000. For purposes of the preceding (a) PENSION BENEFIT STATEMENTS REQUIRED (A) by redesignating subsections (b), (c), sentence, all multiemployer plans of which ON PERIODIC BASIS.— (d), and (e) as subsections (c), (d), (e), and (f), the same trust forms a part shall be treated (1) IN GENERAL.—Subsection (a) of section respectively; and as 1 plan. 105 of the Employee Retirement Income Se- (B) by inserting after subsection (a) the ‘‘(B) TAXABLE YEARS IN THE CASE OF CER- curity Act of 1974 (29 U.S.C. 1025) is following new subsection: TAIN CONTROLLED GROUPS.—For purposes of amended— ‘‘(b)(1) In the case of a participant or bene- this paragraph, if all persons who are treated (A) by striking ‘‘shall furnish to any plan ficiary who is entitled to a distribution of a as a single employer for purposes of this sec- participant or beneficiary who so requests in benefit under an employee pension benefit tion do not have the same taxable year, the writing,’’ and inserting ‘‘shall furnish at plan, the administrator of such plan shall taxable years taken into account shall be de- least once every 3 years, in the case of a par- provide to the participant or beneficiary the termined under principles similar to the ticipant in a defined benefit plan who has at- information described in paragraph (2) upon principles of section 1561. tained age 35, and annually, in the case of an the written request of the participant or ben- ‘‘(3) WAIVER BY SECRETARY.—In the case of individual account plan, to each plan partici- eficiary. a failure which is due to reasonable cause ‘‘(2) The information described in this pant, and shall furnish to any plan partici- and not to willful neglect, the Secretary may paragraph includes— pant or beneficiary who so requests,’’, and waive part or all of the tax imposed by sub- ‘‘(A) a worksheet explaining how the (B) by adding at the end the following flush section (a) to the extent that the payment of amount of the distribution was calculated sentence: such tax would be excessive or otherwise in- and stating the assumptions used for such equitable relative to the failure involved. ‘‘Information furnished under the preceding calculation, ‘‘(d) LIABILITY FOR TAX.—The following sentence to a participant in a defined benefit ‘‘(B) upon written request of the partici- plan (other than at the request of the partic- shall be liable for the tax imposed by sub- pant or beneficiary, any documents relating section (a): ipant) may be based on reasonable estimates to the calculation (if available), and determined under regulations prescribed by ‘‘(1) In the case of a plan other than a mul- ‘‘(C) such other information as the Sec- tiemployer plan, the employer. the Secretary.’’. retary may prescribe. (2) MODEL STATEMENT.—Section 105 of such ‘‘(2) In the case of a multiemployer plan, Any information provided under this para- Act (29 U.S.C. 1025) is amended by adding at the plan. graph shall be in a form calculated to be un- the end the following new subsection: ‘‘(e) REQUIREMENTS RELATING TO NOTICE OF derstood by the average plan participant.’’. ‘‘(e)(1) The Secretary of Labor shall de- GENERALLY ACCEPTED INVESTMENT PRIN- (2) CONFORMING AMENDMENTS.— velop a model benefit statement which shall CIPLES.—The plan administrator of any de- (A) Section 101(a)(2) of such Act (29 U.S.C. be used by plan administrators in complying fined contribution plan shall provide annu- 1021(a)(2)) is amended by striking ‘‘105(a) and with the requirements of subsection (a). ally a separate notice which advises partici- (c)’’ and inserting ‘‘105(a), (b), and (d)’’. Such statement shall include— pants and beneficiaries of generally accepted (B) Section 105(c) of such Act (as redesig- ‘‘(A) the amount of nonforfeitable accrued investment principles, including principles nated by paragraph (1)(A) of this subsection) benefits as of the statement date which is of risk management and diversification for is amended by inserting ‘‘or (b)’’ after ‘‘sub- payable at normal retirement age under the long-term retirement security and the risks section (a)’’. plan, of holding substantial assets in a single asset (C) Section 106(b) of such Act (29 U.S.C. ‘‘(B) the amount of accrued benefits which such as employer securities.’’. 1026(b)) is amended by striking ‘‘sections are forfeitable but which may become non- (2) CLERICAL AMENDMENT.—The table of 105(a) and 105(c)’’ and inserting ‘‘subsections forfeitable under the terms of the plan, sections for chapter 43 of such Code is (a), (b), and (d) of section 105’’. ‘‘(C) the amount or percentage of any re- amended by adding at the end the following (c) AMENDMENTS TO INTERNAL REVENUE duction due to integration of the benefit new item:2 CODE OF 1986.— with the participant’s Social Security bene- ‘‘SEC. 4980I. FAILURE OF DEFINED CONTRIBU- (1) EXCISE TAX ON FAILURE OF DEFINED CON- fits or similar governmental benefits, TION PLANS TO PROVIDE NOTICE OF TRIBUTION PLANS TO PROVIDE NOTICE OF GEN- ‘‘(D) information on early retirement ben- GENERALLY ACCEPTED INVEST- ERALLY ACCEPTED INVESTMENT PRINCIPLES.— MENT PRINCIPLES.’’. efit and joint and survivor annuity reduc- Chapter 43 of the Internal Revenue Code of tions, and SEC. 102. IMMEDIATE WARNING OF EXCESSIVE 1986 (relating to qualified pension, etc., STOCK HOLDINGS. ‘‘(E) the percentage of the net return on in- plans) is amended by adding at the end the Section 105 of the Employee Retirement vestment of plan assets for the preceding following new section: plan year (or, with respect to investments di- Income Security Act of 1974 (29 U.S.C. 1025) ‘‘SEC. 4980I. FAILURE OF DEFINED CONTRIBU- (as amended by section 101 of this Act) is rected by the participant, the net return on TION PLANS TO PROVIDE NOTICE OF investment of plan assets for such year so di- amended further by adding at the end the GENERALLY ACCEPTED INVEST- following new subsection: rected), itemized with respect to each type of MENT PRINCIPLES. ‘‘(g)(1) Upon receipt of information by the investment, and, stated separately, the ad- ‘‘(a) IMPOSITION OF TAX.—There is hereby plan administrator of an individual account ministrative and transaction fees incurred in imposed a tax on the failure of any defined plan indicating that the individual account connection with each such type of invest- contribution plan to meet the requirements of any participant which had not been exces- ment, and of subsection (e) with respect to any partici- sively invested in employer securities is ex- ‘‘(F) in the case of an individual account pant or beneficiary. cessively invested in such securities (or that plan, the amount and percentage of assets in ‘‘(b) AMOUNT OF TAX.—The amount of the the individual account that consists of em- tax imposed by subsection (a) on any failure such account, as initially invested, is exces- ployer securities and employer real property with respect to any participant or bene- sively invested in employer securities), the (as defined in paragraphs (1) and (2), respec- ficiary shall be $1,000 for each day on which plan administrator shall immediately pro- tively, of section 407(d)), as determined as of such failure is not corrected. vide to the participant a separate, written the most recent valuation date of the plan. ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— statement— ‘‘(2) The Secretary shall also develop a sep- ‘‘(1) TAX NOT TO APPLY TO FAILURES COR- ‘‘(A) indicating that the participant’s ac- arate notice, which shall be included by the RECTED AS SOON AS REASONABLY PRAC- count has become excessively invested in plan administrator with the information fur- TICABLE.—No tax shall be imposed by sub- employer securities, nished pursuant to subsection (a), which ad- section (a) on any failure if— ‘‘(B) setting forth the notice described in vises participants and beneficiaries of gen- ‘‘(A) any person subject to liability for the subsection (e)(7), and erally accepted investment principles, in- tax under subsection (d) exercised reasonable ‘‘(C) referring the participant to invest- cluding principles of risk management and diligence to meet the requirements of sub- ment education materials and investment diversification for long-term retirement se- section (e), and advice which shall be made available by or curity and the risks of holding substantial ‘‘(B) such person provides the notice de- under the plan. asssets in a single asset such as employer se- scribed in subsection (e) as soon as reason- In any case in which such a separate, written curities.’’. ably practicable after the first date such per- statement is required to be provided to a H1250 CONGRESSIONAL RECORD — HOUSE April 11, 2002 participant under this paragraph, each state- diligence to meet the requirements of sub- ‘‘SEC. 4980G. FAILURE OF DEFINED CONTRIBU- ment issued to such participant pursuant to section (e), and TION PLANS WITH RESPECT TO LOCKDOWNS.’’. subsection (a) thereafter shall also contain ‘‘(B) such person meets the requirements of SEC. 104. REPORT TO PARTICIPANTS AND BENE- such separate, written statement until the subsection (e) as soon as reasonably prac- FICIARIES OF TRADES IN EMPLOYER plan administrator is made aware that such ticable after the first date such person knew, SECURITIES. participant’s account has ceased to be exces- or exercising reasonable diligence should (a) IN GENERAL.—Section 104 of the Em- sively invested in employer securities or the have known, that such failure existed. ployee Retirement Income Security Act of employee, in writing, waives the receipt of 1974 (29 U.S.C. 1024) is amended— ‘‘(2) OVERALL LIMITATION FOR UNINTEN- the notice and acknowledges understanding (1) by redesignating subsection (d) as sub- TIONAL FAILURES.— the importance of diversification. section (e); and ‘‘(A) IN GENERAL.—If the person subject to ‘‘(2) Each notice required under this sub- (2) by inserting after subsection (c) the fol- section shall be provided in a form and man- liability for tax under subsection (d) exer- lowing new subsection: ner which shall be prescribed in regulations cised reasonable diligence to meet the re- ‘‘(d)(1) In any case in which assets in the of the Secretary. Such regulations shall pro- quirements of subsection (e), the tax imposed individual account of a participant or bene- vide for inclusion in the notice a prominent by subsection (a) for failures during the tax- ficiary under an individual account plan in- reference to the risks of large losses in assets able year of the employer (or, in the case of clude employer securities, if any person en- available for retirement from excessive in- a multiemployer plan, the taxable year of gages in a transaction constituting a direct vestment in employer securities. the trust forming part of the plan) shall not or indirect purchase or sale of employer se- ‘‘(3) For purposes of paragraph (1), a par- exceed $500,000. For purposes of the preceding curities and— ticipant’s account is ‘excessively invested’ in sentence, all multiemployer plans of which ‘‘(A) such transaction is required under employer securities if more than 10 percent the same trust forms a part shall be treated section 16 of the Securities Exchange Act of of the balance in such account is invested in as 1 plan. 1934 to be reported by such person to the Se- employer securities (as defined in section curities and Exchange Commission, or ‘‘(B) TAXABLE YEARS IN THE CASE OF CER- 407(d)(1)).’’. ‘‘(B) such person is a named fiduciary of TAIN CONTROLLED GROUPS.—For purposes of SEC. 103. ADDITIONAL FIDUCIARY PROTECTIONS the plan, RELATING TO LOCKDOWNS. this paragraph, if all persons who are treated such person shall comply with the require- (a) AMENDMENT TO EMPLOYEE RETIREMENT as a single employer for purposes of this sec- ments of paragraph (2). INCOME SECURITY ACT OF 1974.—Section 404 of tion do not have the same taxable year, the ‘‘(2) A person described in paragraph (1) the Employee Retirement Income Security taxable years taken into account shall be de- complies with the requirements of this para- Act of 1974 (29 U.S.C. 1104) is amended by add- termined under principles similar to the graph in connection with a transaction de- ing at the end the following new subsection: principles of section 1561. scribed in paragraph (1) if such person pro- ‘‘(e)(1) In the case of any eligible individual vides to the plan administrator of the plan a ‘‘(3) WAIVER BY SECRETARY.—In the case of account plan (as defined in section 407(d)(3)) written notification of the transaction not a failure which is due to reasonable cause no lockdown may take effect until at least 30 later than 1 business day after the date of and not to willful neglect, the Secretary may days after written notice of such lockdown is the transaction. provided by the plan administrator to such waive part or all of the tax imposed by sub- ‘‘(3)(A) If the plan administrator is made participant or beneficiary (and to each em- section (a) to the extent that the payment of aware, on the basis of notifications received ployee organization representing any such such tax would be excessive or otherwise in- pursuant to paragraph (2) or otherwise, that participant). equitable relative to the failure involved. the proceeds from any transaction described ‘‘(2) Subject to such regulations as the Sec- ‘‘(d) LIABILITY FOR TAX.—The following in paragraph (1), constituting direct or indi- rect sales of employer securities by any per- retary may prescribe, the requirements of shall be liable for the tax imposed by sub- paragraph (1) shall not apply in cases of son described in paragraph (1), exceed section (a): emergency. $100,000, the plan administrator of the plan ‘‘(3) A plan described in paragraph (1) shall ‘‘(1) In the case of a plan other than a mul- shall provide to each participant and bene- provide that each participant and bene- tiemployer plan, the employer. ficiary a notification of such transaction. ficiary required to receive a notice under ‘‘(2) In the case of a multiemployer plan, Such notification shall be in writing, except paragraph (1)(A) is entitled to direct the plan the plan. that such notification may be in electronic to divest within 3 business days (but in no ‘‘(e) REQUIREMENTS RELATING TO or other form to the extent that such form is reasonably accessible to the participant or event later than the beginning of the LOCKDOWNS.— lockdown) any security or other property in beneficiary. ‘‘(1) IN GENERAL.—In the case of any de- which any assets allocated to the account of ‘‘(B) In any case in which the proceeds fined contribution plan no lockdown may such individual are invested and to reinvest from any transaction described in paragraph take effect until at least 30 days after writ- such assets in any other investment option (1) (with respect to which a notification has offered under the plan. ten notice of such lockdown is provided by not been provided pursuant to this para- ‘‘(4) For purposes of this subsection, the the plan administrator to each participant graph), together with the proceeds from any term ‘lockdown’ means any temporary or beneficiary (and to each employee organi- other such transaction or transactions de- lockdown, blackout, or freeze with respect zation representing any such participant). scribed in paragraph (1) occurring during the to, suspension of, or similar limitation on ‘‘(2) EXCEPTION FOR EMERGENCY.—Subject preceding one-year period, constituting di- the ability of a participant or beneficiary to to such regulations as the Secretary may rect or indirect sales of employer securities exercise control over the assets in his or her prescribe, the requirements of paragraph (1) by any person described in paragraph (1), ex- account as otherwise generally provided shall not apply in cases of emergency. ceed (in the aggregate) $100,000, such series of transactions by such person shall be treated under the plan (as determined under regula- ‘‘(3) REQUIREMENT RELATING TO DIVEST- as a transaction described in subparagraph tions of the Secretary), including the ability MENT.—A plan described in paragraph (1) to direct investments, obtain loans, or ob- (A) by such person. shall provide that each participant and bene- ‘‘(C) Each notification required under this tain distributions.’’. ficiary required to receive a notice under (b) AMENDMENTS TO INTERNAL REVENUE paragraph shall be provided as soon as prac- CODE OF 1986.— paragraph (1)(A) is entitled to direct the plan ticable, but not later than 3 business days (1) EXCISE TAX ON FAILURES WITH RESPECT to divest within 3 business days (but in no after receipt of the written notification or TO LOCKDOWNS.—Chapter 43 of the Internal event later than the beginning of the notifications indicating that the transaction Revenue Code of 1986 (relating to qualified lockdown) any security or other property in (or series of transactions) requiring such no- pension, etc., plans) is amended by adding at which any assets allocated to the account of tice has occurred. ‘‘(4) Each notification required under para- the end the following new section: such individual are invested and to reinvest graph (2) or (3) shall be made in such form ‘‘SEC. 4980G. FAILURE OF DEFINED CONTRIBU- such assets in any other investment option and manner as may be prescribed in regula- TION PLANS WITH RESPECT TO offered under the plan. tions of the Secretary and shall include the LOCKDOWNS. ‘‘(4) LOCKDOWN DEFINED.—For purposes of number of shares involved in each trans- ‘‘(a) IMPOSITION OF TAX.—There is hereby this subsection, the term ‘lockdown’ means imposed a tax on the failure of any defined action and the price per share, and the noti- any temporary lockdown, blackout, or freeze contribution plan to meet the requirements fication required under paragraph (3) shall be with respect to, suspension of, or similar of subsection (e) with respect to any partici- written in language designed to be under- pant or beneficiary. limitation on the ability of a participant or stood by the average plan participant. The ‘‘(b) AMOUNT OF TAX.—The amount of the beneficiary to exercise control over the as- Secretary may provide by regulation, in con- tax imposed by subsection (a) on any failure sets in his or her account as otherwise gen- sultation with the Securities and Exchange with respect to any participant or bene- erally provided under the plan (as deter- Commission, for exemptions from the re- ficiary shall be $100. mined under regulations of the Secretary), quirements of this subsection with respect to ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— including the ability to direct investments, specified types of transactions to the extent ‘‘(1) TAX NOT TO APPLY TO FAILURES COR- obtain loans, or obtain distributions.’’. that such exemptions are consistent with the RECTED AS SOON AS REASONABLY PRAC- (2) CLERICAL AMENDMENT.—The table of best interests of plan participants and bene- TICABLE.—No tax shall be imposed by sub- sections for chapter 43 of such Code is ficiaries. Such exemptions may relate to section (a) on any failure if— amended by adding at the end the following transactions involving reinvestment plans, ‘‘(A) any person subject to liability for the new item: stock splits, stock dividends, qualified do- tax under subsection (d) exercised reasonable mestic relations orders, and similar matters. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1251 ‘‘(5) For purposes of this subsection, the The application of any penalty or any re- the trust forming part of the plan) shall not term ‘employer security’ has the meaning striction based on age or years of service in exceed $500,000. For purposes of the preceding provided in section 407(d)(1).’’. connection with any exercise of such right as sentence, all multiemployer plans of which (b) EFFECTIVE DATE.—The amendments provided under this clause shall be construed the same trust forms a part shall be treated made by this section shall apply with respect as a violation of this clause. as 1 plan. to transactions occurring on or after July 1, ‘‘(ii) Clause (i) shall apply only to so much ‘‘(B) TAXABLE YEARS IN THE CASE OF CER- 2002. of a nonforfeitable accrued benefit as con- TAIN CONTROLLED GROUPS.—For purposes of SEC. 105. PROVISION TO PARTICIPANTS AND sists of employer securities which are read- this paragraph, if all persons who are treated BENEFICIARIES OF MATERIAL IN- ily tradable on an established securities mar- as a single employer for purposes of this sec- VESTMENT INFORMATION IN ACCU- ket. tion do not have the same taxable year, the RATE FORM. ‘‘(B)(i) Except as provided in clause (ii), taxable years taken into account shall be de- Section 404(c) of the Employee Retirement within 5 days after the date of any election termined under principles similar to the Income Security Act of 1974 (29 U.S.C. by a participant or beneficiary allocating his principles of section 1561. 1104(c)) is amended by adding at the end the or her nonforfeitable accrued benefit to any ‘‘(3) WAIVER BY SECRETARY.—In the case of following new paragraph: investment option provided under the plan, ‘‘(4) The plan sponsor and plan adminis- a failure which is due to reasonable cause the plan administrator shall take such ac- trator of a pension plan described in para- and not to willful neglect, the Secretary may tions as are necessary to effectuate such al- graph (1) shall have a fiduciary duty to en- waive part or all of the tax imposed by sub- location. section (a) to the extent that the payment of sure that each participant and beneficiary ‘‘(ii) In any case in which the plan provides under the plan, in connection with the in- such tax would be excessive or otherwise in- for elections periodically during prescribed equitable relative to the failure involved. vestment by the participant or beneficiary of periods, the 5-day period described in clause plan assets in the exercise of his or her con- (i) shall commence at the end of each such ‘‘(d) LIABILITY FOR TAX.—The following trol over assets in his account, is provided prescribed period. shall be liable for the tax imposed by sub- with all material investment information re- ‘‘(C) Nothing in this paragraph shall be section (a): garding investment of such assets to the ex- construed to limit the authority of a plan to ‘‘(1) In the case of a plan other than a mul- tent that the provision of such information impose limitations on the portion of plan as- tiemployer plan, the employer. is generally required to be disclosed by the sets in any account which may be invested in ‘‘(2) In the case of a multiemployer plan, plan sponsor to investors in connection with employer securities to the extent that any the plan. such an investment under applicable securi- such limitation is consistent with this title ‘‘(e) REQUIREMENTS RELATING TO DIVER- ties laws. The provision by the plan sponsor and not more restrictive than is permitted or plan administrator of any misleading in- SIFICATION OF EMPLOYER SECURITY.— under this title. ‘‘(1) IN GENERAL.—The requirements of this vestment information shall be treated as a ‘‘(2) Not later than 30 days prior to the violation of this paragraph.’’. subsection are the requirements of para- date on which the right of a participant graphs (2), (3), and (4). SEC. 106. ENFORCEMENT OF INFORMATION AND under an individual account plan to his or DISCLOSURE REQUIREMENTS. ‘‘(2) RIGHT TO DIRECT INVESTMENTS.— her accrued benefit becomes nonforfeitable, ‘‘(A) IN GENERAL.—Subject to subparagraph (a) IN GENERAL.—Section 502(c) of the Em- the plan administrator shall provide to such ployee Retirement Income Security Act of (B), a plan meets the requirements of this participant and his or her beneficiaries a paragraph if, under the plan— 1974 (29 U.S.C. 1132(c)) is amended— written notice— (1) by redesignating paragraph (7) as para- ‘‘(i) any participant or beneficiary who is ‘‘(A) setting forth their rights under this permitted to exercise control over assets in graph (8); and section with respect to the accrued benefit, (2) by inserting after paragraph (6) the fol- his or her account has the right to allocate and all assets in his or her account (and any por- lowing new paragraph: ‘‘(B) describing the importance of diversi- ‘‘(7) The Secretary may assess a civil pen- tion thereof) attributable to employee con- fying the investment of account assets.’’. alty against any person required to provide tributions to any investment option provided (b) AMENDMENTS TO THE INTERNAL REVENUE any notification under the provisions of sec- under the plan, and CODE OF 1986.— tion 104(d), any statement under the provi- ‘‘(ii) any such participant who has com- (1) EXCISE TAX ON FAILURE TO PERMIT DIVER- sions of subsection (a), (d), or (f) of section pleted 3 years of service (as defined in sec- SIFICATION OF EMPLOYER SECURITIES.—Chap- 105, any information under the provisions of tion 411(a)(5)) with the employer, or any such ter 43 of the Internal Revenue Code of 1986 beneficiary of such a participant, has the section 404(c)(4), or any notice under the pro- (relating to qualified pension, etc., plans) is visions of section 404(f)(1) of up to $1,000 a right to allocate all assets in his or her ac- amended by adding at the end the following count (and any portion thereof) attributable day from the date of any failure by such per- new section: son to provide such notification, statement, to employer contributions to any investment ‘‘SEC. 4980H. FAILURE OF DEFINED CONTRIBU- option provided under the plan. information, or notice in accordance with TION PLANS TO PERMIT DIVER- such provisions.’’. SIFICATION OF EMPLOYER SECURI- The application of any penalty or any re- (b) CONFORMING AMENDMENT.—Section TIES. striction based on age or years of service in 502(a)(6) of such Act (29 U.S.C. 1132(a)(6)) (as ‘‘(a) IMPOSITION OF TAX.—There is hereby connection with any exercise of such right as amended by section 102(b)) is amended fur- imposed a tax on the failure of any defined provided under this clause shall be construed ther by striking ‘‘(5), or (6)’’ and inserting contribution plan to meet the requirements as a violation of this clause. ‘‘(5), (6), or (7)’’. of subsection (e) with respect to any partici- ‘‘(B) LIMITATION TO READILY TRADABLE EM- TITLE II—DIVERSIFICATION pant or beneficiary. PLOYER SECURITIES.—Subparagraph (A) shall REQUIREMENTS ‘‘(b) AMOUNT OF TAX.—The amount of the apply only to so much of a nonforfeitable ac- SEC. 201. FREEDOM TO MAKE INVESTMENT DECI- tax imposed by subsection (a) on any failure crued benefit as consists of employer securi- SIONS WITH PLAN ASSETS. with respect to any participant or bene- ties which are readily tradable on an estab- (a) AMENDMENTS TO THE EMPLOYEE RETIRE- ficiary shall be $1,000 for each day for which lished securities market. MENT INCOME SECURITY ACT OF 1974.—Section the failure is not corrected. ‘‘(3) PROMPT COMPLIANCE WITH DIRECTIONS 404 of the Employee Retirement Income Se- ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— TO ALLOCATE INVESTMENTS.— curity Act of 1974 (29 U.S.C. 1104) (as amend- ‘‘(1) TAX NOT TO APPLY TO FAILURES COR- ‘‘(A) IN GENERAL.—Except as provided in ed by section 103) is amended further by add- RECTED AS SOON AS REASONABLY PRAC- subparagraph (B), a plan meets the require- ing at the end the following new subsection: TICABLE.—No tax shall be imposed by sub- ments of this paragraph if the plan provides ‘‘(f)(1)(A)(i) Subject to clause (ii), an indi- section (a) on any failure if— that, within 5 days after the date of any elec- vidual account plan under which a partici- ‘‘(A) any person subject to liability for the tion by a participant or beneficiary allo- pant or beneficiary is permitted to exercise tax under subsection (d) exercised reasonable cating his or her nonforfeitable accrued ben- control over assets in his or her account diligence to meet the requirements of sub- efit to any investment option provided under shall provide that— section (e), and the plan, the plan administrator shall take ‘‘(I) any such participant or beneficiary ‘‘(B) such person meets the requirements of such actions as are necessary to effectuate has the right to allocate all assets in his or subsection (e) as soon as reasonably prac- such allocation. her account (and any portion thereof) attrib- ticable after the first date such person knew, ‘‘(B) SPECIAL RULE FOR PERIODIC ELEC- utable to employee contributions to any in- or exercising reasonable diligence should TIONS.—In any case in which the plan pro- vestment option provided under the plan, have known, that such failure existed. vides for elections periodically during pre- and ‘‘(2) OVERALL LIMITATION FOR UNINTEN- scribed periods, the 5-day period described in ‘‘(II) any such participant who has com- TIONAL FAILURES.— subparagraph (A) shall commence at the end pleted 3 years of service (as defined in sec- ‘‘(A) IN GENERAL.—If the person subject to of each such prescribed period. tion 203(b)(2)) with the employer, or any such liability for tax under subsection (d) exer- ‘‘(4) NOTICE OF RIGHTS AND OF IMPORTANCE beneficiary of such a participant, has the cised reasonable diligence to meet the re- OF DIVERSIFICATION.—A plan meets the re- right to allocate all assets in his or her ac- quirements of subsection (e), the tax imposed quirements of this paragraph if the plan pro- count (and any portion thereof) attributable by subsection (a) for failures during the tax- vides that, not later than 30 days prior to the to employer contributions to any investment able year of the employer (or, in the case of date on which the right of a participant option provided under the plan. a multiemployer plan, the taxable year of under the plan to his or her accrued benefit H1252 CONGRESSIONAL RECORD — HOUSE April 11, 2002 becomes nonforfeitable, the plan adminis- pursuant to one or more collective bar- to such amounts, remain (until made avail- trator shall provide to such participant and gaining agreements between one or more em- able to the participant or other beneficiary) his or her beneficiaries a written notice— ployee organizations and one or more em- solely the property of the employer (without ‘‘(A) setting forth their rights under this ployers, the trustees representing the inter- being restricted to the provision of benefits section with respect to the accrued benefit, ests of the participants and their bene- under the plan), and and ficiaries shall be designated by such em- ‘‘(C) the amounts referred to in subpara- ‘‘(B) describing the importance of diversi- ployee organizations. graph (B) are available to satisfy the claims fying the investment of account assets. ‘‘(ii) Clause (i) shall not apply with respect of the employer’s general creditors at all ‘‘(5) PRESERVATION OF AUTHORITY OF PLAN to a plan described in such clause if the em- times (not merely after bankruptcy or insol- TO LIMIT INVESTMENT.—Nothing in this sub- ployee organization (or all employee organi- vency). section shall be construed to limit the au- zations, if more than one) referred to in such Such term shall not include a qualified em- thority of a plan to impose limitations on clause file with the Secretary, in such form ployer plan. the portion of plan assets in any account and manner as shall be prescribed in regula- ‘‘(2) SPECIAL RULES.— which may be invested in employer securi- tions of the Secretary, a written waiver of ‘‘(A) EMPLOYEE’S RIGHTS.—A plan shall be ties.’’. their rights under clause (i). treated as failing to meet the requirements (2) CLERICAL AMENDMENT.—The table of ‘‘(iii) In any case in which clause (i) does of paragraph (1)(A) unless, under the written sections for chapter 43 of such Code is not apply with respect to a single-employer terms of the plan— amended by adding at the end the following plan because the plan is not described in ‘‘(i) the compensation deferred under the new item: clause (i) or because of a waiver filed pursu- plan is paid only upon separation from serv- ant to clause (ii), the trustee or trustees rep- ‘‘SEC. 4980H. FAILURE OF DEFINED CONTRIBU- ice, death, or at a specified time (or pursuant TION PLANS TO PERMIT DIVER- resenting the interests of the participants to a fixed schedule), and SIFICATION OF EMPLOYER SECURI- and their beneficiaries shall be selected by ‘‘(ii) the plan does not permit the accelera- TIES.’’. the plan participants in accordance with reg- tion of the time such deferred compensation (c) RECOMMENDATIONS RELATING TO NON- ulations of the Secretary. is paid by reason of any event. PUBLICLY TRADED STOCK.—Within 1 year ‘‘(C) An individual shall not be treated as If the employer and employee agree to a after the date of the enactment of this Act, ineligible for selection as trustee solely be- modification of the plan that accelerates the the Secretary of Labor and the Secretary of cause such individual is an employee of the time for payment of any deferred compensa- the Treasury shall jointly transmit to the plan sponsor, except that the employee so se- tion, then all compensation previously de- Committee on Education and the Workforce lected may not be a highly compensated em- ferred under the plan shall be includible in and the Committee on Ways and Means of ployee (as defined in section 414(q) of the In- gross income for the taxable year during the House of Representatives and the Com- ternal Revenue Code of 1986). which such modification takes effect and the mittee on Health, Education, Labor, and ‘‘(D) The Secretary shall provide by regula- taxpayer shall pay interest at the under- Pensions and the Committee on Finance of tion for the appointment of a neutral indi- payment rate on the underpayments that the Senate their recommendations regarding vidual, in accordance with the procedures would have occurred had the deferred com- legislative changes relating to treatment, under section 203(f) of the Labor Manage- pensation been includible in gross income in under section 404(e) of the Employee Retire- ment Relations Act, 1947 (29 U.S.C. 173(f)), to the taxable years deferred. ment Income Security Act of 1974 and sec- cast votes as necessary to resolve tie votes ‘‘(B) CREDITOR’S RIGHTS.—A plan shall be tion 401(a)(35) of the Internal Revenue Code by the trustees.’’. treated as failing to meet the requirements of 1986 (as added by this section), of indi- (b) REGULATIONS.—The Secretary of Labor of paragraph (1)(B) with respect to amounts vidual account plans under which a partici- shall prescribe the initial regulations nec- set aside in a trust unless— pant or beneficiary is permitted to exercise essary to carry out the provisions of the ‘‘(i) the employee has no beneficial interest control over assets in his or her account, in amendments made by this section not later in the trust, cases in which such assets do not include em- than 90 days after the date of the enactment ‘‘(ii) assets in the trust are available to ployer securities which are readily tradable of this Act. satisfy claims of general creditors at all under an established securities market. TITLE IV—EXECUTIVE PARITY times (not merely after bankruptcy or insol- SEC. 202. EFFECTIVE DATE OF TITLE. SEC. 401. INCLUSION IN GROSS INCOME OF FUND- vency), and (a) IN GENERAL.—Subject to subsection (b), ED DEFERRED COMPENSATION OF CORPORATE INSIDERS IF CORPORA- ‘‘(iii) there is no factor (such as the loca- the amendments made by this title shall tion of the trust outside the United States) apply with respect to plan years beginning TION FUNDS DEFINED CONTRIBU- TION PLAN WITH EMPLOYER STOCK. that would make it more difficult for general on or after January 1, 2003. (a) IN GENERAL.—Subpart A of part I of creditors to reach the assets in the trust (b) DELAYED EFFECTIVE DATE FOR EXISTING subchapter D of chapter 1 of the Internal than it would be if the trust assets were held HOLDINGS.—In any case in which a portion of Revenue Code of 1986 is amended by adding directly by the employer in the United the nonforfeitable accrued benefit of a par- at the end the following new section: States. ticipant or beneficiary is held in the form of ‘‘(c) CORPORATE INSIDER.—For purposes of employer securities (as defined in section ‘‘SEC. 409A. DENIAL OF DEFERRAL FOR FUNDED DEFERRED COMPENSATION OF COR- this section, the term ‘corporate insider’ 407(d)(1) of the Employee Retirement Income PORATE INSIDERS IF CORPORATION means, with respect to a corporation, any in- Security Act of 1974) immediately before the FUNDS DEFINED CONTRIBUTION dividual who is subject to the requirements first date of the first plan year to which the PLAN WITH EMPLOYER STOCK. of section 16(a) of the Securities Exchange amendments made by this title apply, such ‘‘(a) IN GENERAL.—If an employer main- Act of 1934 with respect to such corporation. portion shall be taken into account only tains a defined contribution plan to which ‘‘(d) OTHER DEFINITIONS.—For purposes of with respect to plan years beginning on or employer contributions are made in the form this section— after January 1, 2004. of employer stock and such employer main- ‘‘(1) PLAN INCLUDES ARRANGEMENTS, ETC.— TITLE III—EMPLOYEE REPRESENTATION tains a funded deferred compensation plan— The term ‘plan’ includes any agreement or SEC. 301. PARTICIPATION OF PARTICIPANTS IN ‘‘(1) compensation of any corporate insider arrangement. TRUSTEESHIP OF INDIVIDUAL AC- which is deferred under such funded deferred ‘‘(2) SUBSTANTIAL RISK OF FORFEITURE.— COUNT PLANS. compensation plan shall be included in the The rights of a person to compensation are (a) IN GENERAL.—Section 403(a) of the Em- gross income of the insider or beneficiary for subject to a substantial risk of forfeiture if ployee Retirement Income Security Act of the 1st taxable year in which there is no sub- such person’s rights to such compensation 1974 (29 U.S.C. 1103(a)) is amended— stantial risk of forfeiture of the rights to are conditioned upon the future performance (1) by redesignating paragraphs (1) and (2) such compensation, and of substantial services by any individual.’’ as subparagraphs (A) and (B), respectively; ‘‘(2) the tax treatment of any amount made (b) CLERICAL AMENDMENT.—The table of (2) by inserting ‘‘(1)’’ after ‘‘(a)’’; and available under the plan to a corporate in- sections for such subpart A is amended by (3) by adding at the end the following new sider or beneficiary shall be determined adding at the end the following new item: paragraph: under section 72 (relating to annuities, etc.). ‘‘SEC. 409A. DENIAL OF DEFERRAL FOR FUNDED UNDED EFERRED OMPENSATION ‘‘(2)(A) The assets of a single-employer ‘‘(b) F D C DEFERRED COMPENSATION OF COR- plan which is an individual account plan and PLAN.—For purposes of this section— PORATE INSIDERS IF CORPORATION under which some or all of the assets are de- ‘‘(1) IN GENERAL.—The term ‘funded de- FUNDS DEFINED CONTRIBUTION rived from employee contributions shall be ferred compensation plan’ means any plan PLAN WITH EMPLOYER STOCK.’’ held in trust by a joint board of trustees, providing for the deferral of compensation (b) EFFECTIVE DATE.—The amendments which shall consist of two or more trustees unless— made by this section shall apply to amounts representing on an equal basis the interests ‘‘(A) the employee’s rights to the com- deferred after the date of the enactment of of the employer or employers maintaining pensation deferred under the plan are no this Act. the plan and the interests of the participants greater than the rights of a general creditor SEC. 402. INSIDER TRADES DURING PENSION and their beneficiaries and having equal vot- of the employer, and FUND BLACKOUT PERIODS PROHIB- ing rights. ‘‘(B) all amounts set aside (directly or indi- ITED. ‘‘(B)(i) Except as provided in clause (ii), in rectly) for purposes of paying the deferred (a) PROHIBITION.—It shall be unlawful for any case in which the plan is maintained compensation, and all income attributable any person who is directly or indirectly the April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1253

beneficial owner of more than 10 percent of (5) ISSUER.—The term ‘‘issuer’’ shall have that are readily tradable on an established any class of any equity security (other than the meaning set forth in section 2(a)(4) of the securities market— an exempted security) which is registered Securities Act of 1933 (15 U.S.C. 77b(a)(4)). ‘‘(i) knowingly participates in a breach of under section 12 of the Securities Exchange TITLE V—INCREASED ACCOUNTABILITY fiduciary responsibility to which subsection Act of 1934 (15 U.S.C. 78l) or who is a director (a) applies, or SEC. 501. BONDING OR INSURANCE ADEQUATE or an officer of the issuer of such security, TO PROTECT INTEREST OF PARTICI- ‘‘(ii) knowingly undertakes to conceal such directly or indirectly, to purchase (or other- PANTS AND BENEFICIARIES. a breach, wise acquire) or sell (or otherwise transfer) Section 412 of the Employee Retirement such insider shall be personally liable under any equity security of any issuer (other than Income Security Act of 1974 (29 U.S.C. 1112) is this subsection for such breach in the same an exempted security), during any blackout amended by adding at the end the following manner as the fiduciary who commits such period with respect to such equity security. new subsection: breach. (b) REMEDY.—Any profit realized by such ‘‘(f) Notwithstanding the preceding provi- ‘‘(B) For purposes of subparagraph (A), the beneficial owner, director, or officer from sions of this section, each fiduciary of an in- term ‘insider’ means, with respect to any any purchase (or other acquisition) or sale dividual account plan shall be bonded or in- plan sponsor of a plan to which subparagraph (or other transfer) in violation of this sec- sured, in accordance with regulations which (A) applies— tion shall inure to and be recoverable by the shall be prescribed by the Secretary, in an ‘‘(i) any officer or director with respect to issuer irrespective of any intention on the amount sufficient to ensure coverage by the the plan sponsor, or part of such beneficial owner, director, or of- bond or insurance of financial losses due to ‘‘(ii) any independent qualified public ac- ficer in entering into the transaction. Suit any failure to meet the requirements of this countant of the plan or of the plan sponsor. to recover such profit may be instituted at part.’’. ‘‘(3) Any relief provided under this sub- law or in equity in any court of competent SEC. 502. LIABILITY FOR BREACH OF FIDUCIARY section or section 409A— jurisdiction by the issuer, or by the owner of DUTY. ‘‘(A) to an individual account plan shall any security of the issuer in the name and in (a) LIABILITY FOR PARTICIPATING INORCON- inure to the individual accounts of the af- behalf of the issuer if the issuer shall fail or CEALING FIDUCIARY BREACH.— fected participants or beneficiaries, and refuse to bring such suit within 60 days after (1) APPLICATION TO PARTICIPANTS AND BENE- ‘‘(B) to a participant or beneficiary shall request or shall fail diligently to prosecute FICIARIES OF 401(k) PLANS.— be payable to the individual account plan on the same thereafter; but no such suit shall (A) IN GENERAL.—Part 4 of subtitle B of behalf of such participant or beneficiary un- be brought more than 2 years after the date title I of the Employee Retirement Income less such plan has been terminated.’’ such profit was realized. This subsection Security Act of 1974 (29 U.S.C. 1101 et seq.) is (B) CONFORMING AMENDMENT.—Section shall not be construed to cover any trans- amended by adding after section 409 the fol- 409(c) of such Act (29 U.S.C. 1109(c)), as redes- action where such beneficial owner was not lowing new section: ignated by subparagraph (A), is amended by such both at the time of the purchase and ‘‘SEC. 409A. LIABILITY FOR BREACH OF FIDU- inserting before the period the following: sale, or the sale and purchase, of the security CIARY DUTY IN 401(k) PLANS. ‘‘, unless such liability arises under sub- or security-based swap (as defined in section ‘‘(a) Any person who is a fiduciary with re- section (b)’’. 206B of the Gramm-Leach-Bliley Act) in- spect to an individual account plan that in- (b) MAINTENANCE OF FIDUCIARY LIABILITY.— volved, or any transaction or transactions cludes a qualified cash or deferred arrange- Section 404(c)(1)(B) of such Act (29 U.S.C. which the Commission by rules and regula- ment under section 401(k) of the Internal 1104(c)(1)(B)) is amended by inserting before tions may exempt as not comprehended Revenue Code of 1986 who breaches any of the period the following: ‘‘, except that this within the purposes of this subsection. the responsibilities, obligations, or duties subparagraph shall not be construed to ex- (c) RULEMAKING PERMITTED.—The Commis- imposed upon fiduciaries by this title shall empt any fiduciary from liability for any sion may issue rules to clarify the applica- be personally liable to make good to each violation of subsection (e) or (f)’’. tion of this subsection, to ensure adequate participant and beneficiary of the plan any SEC. 503. PRESERVATION OF RIGHTS OR CLAIMS. notice to all persons affected by this sub- losses to such participant or beneficiary re- Section 502 of the Employee Retirement section, and to prevent evasion thereof. sulting from each such breach, and to restore Income Security Act of 1974 (29 U.S.C. 1132) is (d) As used in this section: to such participant or beneficiary any profits amended by adding at the end the following (1) BENEFICIAL OWNER.—The term ‘‘bene- of such fiduciary which have been made new subsection: ficial owner’’ has the meaning provided such through use of assets of the plan by the fidu- ‘‘(n)(1) The rights under this title (includ- term in rules or regulations issued by the ciary, and shall be subject to such other eq- ing the right to maintain a civil action) may Commission under section 16 of the Securi- uitable or remedial relief as the court may not be waived, deferred, or lost pursuant to ties Exchange Act of 1934 (15 U.S.C. 78p). deem appropriate, including removal of such any agreement not authorized under this (2) BLACKOUT PERIOD.—The term ‘‘blackout fiduciary. A fiduciary may also be removed title with specific reference to this sub- period’’ with respect to the equity securities for a violation of section 411 of this Act. section. of any issuer— ‘‘(b) The right of participants and bene- ‘‘(2) Paragraph (1) shall not apply to an (A) means any period during which the ficiaries under subsection (a) to sue for agreement providing for arbitration or par- ability of at least fifty percent of the partici- breach of fiduciary duty with respect to an ticipation in any other nonjudicial procedure pants or beneficiaries under all applicable in- individual account plan that includes a to resolve a dispute if the agreement is en- dividual account plans maintained by the qualified cash or deferred arrangement under tered into knowingly and voluntarily by the issuer to purchase (or otherwise acquire) or section 401(k) of such Code shall be in addi- parties involved after the dispute has arisen sell (or otherwise transfer) an interest in any tion to all existing rights that participants or is pursuant to the terms of a collective equity of such issuer is suspended by the and beneficiaries have under section 409, sec- bargaining agreement.’’. issuer or a fiduciary of the plan; but tion 502, and any other provision of this title, (B) does not include— and shall not be construed to give rise to any SEC. 504. OFFICE OF PENSION PARTICIPANT AD- (i) a period in which the employees of an inference that such rights do not already VOCACY. issuer may not allocate their interests in the exist under section 409, section 502, or any (a) IN GENERAL.—Title III of the Employee individual account plan due to an express in- other provision of this title. Retirement Income Security Act of 1974 (29 vestment restriction— ‘‘(c) No fiduciary shall be liable with re- U.S.C. 3001 et seq.) is amended by adding at (I) incorporated into the individual ac- spect to a breach of fiduciary duty under this the end the following: count plan; and title if such breach was committed before he ‘‘(1) IN GENERAL.—There is established in (II) timely disclosed to employees before or she became a fiduciary or after he or she the Department of Labor an office to be joining the individual account plan or as a ceased to be a fiduciary.’’ known as the ‘Office of Pension Participant subsequent amendment to the plan; (B) CONFORMING AMENDMENT.—The table of Advocacy’. (ii) any suspension described in subpara- contents for part 4 of subtitle B of title I of ‘‘(2) PENSION PARTICIPANT ADVOCATE.—The graph (A) that is imposed solely in connec- such Act is amended by inserting the fol- Office of Pension Participant Advocacy shall tion with persons becoming participants or lowing new item after the item relating to be under the supervision and direction of an beneficiaries, or ceasing to be participants or section 409: official to be known as the ‘Pension Partici- beneficiaries, in an applicable individual ac- ‘‘SEC. 409A. LIABILITY FOR BREACH OF FIDU- pant Advocate’ who shall— count plan by reason of a corporate merger, CIARY DUTY IN 401(k) PLANS.’’ ‘‘(A) have demonstrated experience in the acquisition, divestiture, or similar trans- (2) INSIDER LIABILITY.— area of pension participant assistance, and action. (A) IN GENERAL.—Section 409 of the Em- ‘‘(B) be selected by the Secretary after con- (3) COMMISSION.—The term ‘‘Commission’’ ployee Retirement Income Security Act of sultation with pension participant advocacy means the Securities and Exchange Commis- 1974 (29 U.S.C. 1109) is amended by redesig- organizations. sion. nating subsection (b) as subsection (c) and by The Pension Participant Advocate shall re- (4) INDIVIDUAL ACCOUNT PLAN.—The term inserting after subsection (a) the following port directly to the Secretary and shall be ‘‘individual account plan’’ has the meaning new subsection: entitled to compensation at the same rate as provided such term in section 3(34) of the ‘‘(b)(1)(A) If an insider with respect to the the highest rate of basic pay established for Employee Retirement Income Security Act plan sponsor of an employer individual ac- the Senior Executive Service under section of 1974 (29 U.S.C. 1002(34)). count plan that holds employer securities 5382 of title 5, United States Code. H1254 CONGRESSIONAL RECORD — HOUSE April 11, 2002

‘‘(b) FUNCTIONS OF OFFICE.—It shall be the ‘‘(1) RECEIPT OF INFORMATION.—Subject to (2) by adding at the end the following new function of the Office of Pension Participant such confidentiality requirements as may be subparagraphs: Advocacy to— appropriate, the Secretary and other Federal ‘‘(B)(i) In the case of a pension plan de- ‘‘(1) evaluate the efforts of the Federal officials shall, upon request, provide such in- scribed in subparagraph (A) which provides Government, business, and financial, profes- formation (including plan documents) as investment in employer securities as at least sional, retiree, labor, women’s, and other ap- may be necessary to enable the Pension Par- one option for investment of plan assets at propriate organizations in assisting and pro- ticipant Advocate to carry out the Advo- the direction of the participant or bene- tecting pension plan participants, cate’s responsibilities under this section. ficiary, such plan shall make available to including— ‘‘(2) APPEARANCES.—The Pension Partici- the participant or beneficiary the services of ‘‘(A) serving as a focal point for, and ac- pant Advocate may represent the views and a qualified fiduciary adviser for purposes of tively seeking out, the receipt of informa- interests of pension plan participants before providing investment advice described in tion with respect to the policies and activi- any Federal agency, including, upon request section 3(21)(A)(ii) regarding investment in ties of the Federal Government, business, of a participant, in any proceeding involving such securities. and such organizations which affect such the participant. ‘‘(ii) No person who is otherwise a fidu- participants, ‘‘(3) CONTRACTING AUTHORITY.—In carrying ciary shall be liable by reason of any invest- ‘‘(B) identifying significant problems for out responsibilities under subsection (b)(5), ment advice provided by a qualified fiduciary pension plan participants and the capabili- the Pension Participant Advocate may, in adviser pursuant to a request under clause (i) ties of the Federal Government, business, addition to any other authority provided by if— and such organizations to address such prob- law— ‘‘(I) the plan provides for selection and lems, and ‘‘(A) contract with any person to acquire monitoring of such adviser in a prudent and ‘‘(C) developing proposals for changes in statistical information with respect to pen- effective manner, and such policies and activities to correct such sion plan participants, and ‘‘(II) such adviser is a named fiduciary problems, and communicating such changes ‘‘(B) conduct direct surveys of pension plan under the plan in connection with the provi- to the appropriate officials, participants.’’ sion of such advice. ‘‘(2) promote the expansion of pension plan (b) CONFORMING AMENDMENT.—The table of ‘‘(C) For purposes of subparagraph (B)— coverage and the receipt of promised benefits contents for title III of such Act is amended ‘‘(i) The term ‘qualified fiduciary adviser’ by increasing the awareness of the general by adding at the end the following: means, with respect to a plan, a person public of the value of pension plans and by ‘‘Subtitle C—Office of Pension Participant who— protecting the rights of pension plan partici- Advocacy ‘‘(I) is a fiduciary of the plan by reason of pants, including— the provision of qualified investment advice ‘‘(A) enlisting the cooperation of the public ‘‘3051. Office of Pension Participant Advo- cacy.’’. by such person to a participant or bene- and private sectors in disseminating infor- ficiary, mation, and (c) EFFECTIVE DATE.—The amendment ‘‘(II) has no material interest in, and no ‘‘(B) forming private-public partnerships made by this section shall take effect on material affiliation or contractual relation- and other efforts to assist pension plan par- January 1, 2003. ship with any third party having a material ticipants in receiving their benefits, SEC. 505. ADDITIONAL CRIMINAL PENALTIES. interest in, the security or other property ‘‘(3) advocating for the full attainment of Section 501 of the Employee Retirement with respect to which the person is providing the rights of pension plan participants, in- Income Security Act of 1974 (29 U.S.C. 1131) is the advice, cluding by making pension plan sponsors and amended— ‘‘(III) meets the qualifications of clause fiduciaries aware of their responsibilities, (1) by inserting ‘‘(a)’’ after ‘‘SEC. 501.’’; (ii), and ‘‘(4) giving priority to the special needs of (2) by striking ‘‘$5,000’’ and inserting ‘‘(IV) meets the additional requirements of low and moderate income participants, ‘‘$50,000’’ and by striking ‘‘$100,000’’ and in- clause (iii). ‘‘(5) developing needed information with serting ‘‘$500,000’’; ‘‘(ii) A person meets the qualifications of respect to pension plans, including informa- (2) by adding at the end the following new this subparagraph if such person— tion on the types of existing pension plans, subsection: ‘‘(I) is registered as an investment adviser levels of employer and employee contribu- ‘‘(b) Any person described in subsection (a) under the Investment Advisers Act of 1940 (15 tions, vesting status, accumulated benefits, of 402 of the Employee Pension Freedom Act U.S.C. 80b–1 et seq.), benefits received, and forms of benefits, and of 2002 who willfully violates such section or ‘‘(II) if not registered as an investment ad- ‘‘(6) pursuing claims on behalf of partici- section 104(d) or causes an individual ac- viser under such Act by reason of section pants and beneficiaries and providing appro- count plan to fail to meet the requirements 203A(a)(1) of such Act (15 U.S.C. 80b–3a(a)(1)), priate assistance in the resolution of dis- of section 409A of the Internal Revenue Code is registered under the laws of the State in putes between participants and beneficiaries of 1986 shall upon conviction be fined not which the fiduciary maintains its principal and pension plans, including assistance in more than $500,000 or imprisoned not more office and place of business, and, at the time obtaining settlement agreements. than one year, or both.’’. the fiduciary last filed the registration form ‘‘(c) REPORTS.— SEC. 506. STUDY REGARDING INSURANCE SYS- most recently filed by the fiduciary with ‘‘(1) ANNUAL REPORT.—Not later than De- TEM FOR INDIVIDUAL ACCOUNT such State in order to maintain the fidu- cember 31 of each calendar year, the Pension PLANS. ciary’s registration under the laws of such Participant Advocate shall report to the (a) STUDY.—As soon as practicable after State, also filed a copy of such form with the Committee on Education and the Workforce the date of the enactment of this Act, the Secretary, of the House of Representatives and the Pension Benefit Guaranty Corporation shall ‘‘(III) is registered as a broker or dealer Committee on Health, Education, Labor, and contract to carry out a study relating to the under the Securities Exchange Act of 1934 (15 Pensions of the Senate on its activities dur- establishment of an insurance system for in- U.S.C. 78a et seq.), ing the fiscal year ending in the calendar dividual account plans. In conducting such ‘‘(IV) is a bank or similar financial institu- year. Such report shall— study, the Corporation shall consider— tion referred to in section 408(b)(4), ‘‘(A) identify significant problems the Ad- (1) the feasibility and impact of such a sys- ‘‘(V) is an insurance company qualified to vocate has identified, tem, and do business under the laws of a State, or ‘‘(B) include specific legislative and regu- (2) options for developing such a system. ‘‘(VI) is any other comparable entity which (b) REPORT.—Not later than 3 years after latory changes to address the problems, and satisfies such criteria as the Secretary deter- the date of the enactment of this Act, the ‘‘(C) identify any actions taken to correct mines appropriate. Corporation shall report the results of its problems identified in any previous report. ‘‘(iii) A person meets the additional re- study, together with any recommendations The Advocate shall submit a copy of such re- quirements of this clause if every individual for legislative changes, to the Committee on port to the Secretary and any other appro- who is employed (or otherwise compensated) Education and the Workforce and the Com- priate official at the same time it is sub- by such person and whose scope of duties in- mittee on Ways and Means of the House of mitted to the committees of Congress. cludes the provision of qualified investment Representatives and the Committee on ‘‘(2) SPECIFIC REPORTS.—The Pension Par- advice on behalf of such person to any par- Health, Education, Labor, and Pensions and ticipant Advocate shall report to the Sec- ticipant or beneficiary is— the Committee on Finance of the Senate. retary or any other appropriate official any ‘‘(I) a registered representative of such per- time the Advocate identifies a problem TITLE VI—INVESTMENT ADVICE FOR son, which may be corrected by the Secretary or PARTICIPANTS AND BENEFICIARIES ‘‘(II) an individual described in subclause such official. SEC. 601. INDEPENDENT INVESTMENT ADVICE. (I), (II), or (III) of clause (i), or ‘‘(3) REPORTS TO BE SUBMITTED DIRECTLY.— (a) IN GENERAL.—SECTION 404(C)(1) OF THE ‘‘(III) such other comparable qualified indi- The report required under paragraph (1) shall EMPLOYEE RETIREMENT INCOME SECURITY ACT vidual as may be designated in regulations of be provided directly to the committees of OF 1974 (29 U.S.C. 1104(C)(1)) (AS AMENDED BY SEC- the Secretary.’’. Congress without any prior review or com- TION 102(C)) IS AMENDED FURTHER— (b) MAINTENANCE OF FIDUCIARY LIABILITY.— ment than the Secretary or any other Fed- (1) by redesignating subparagraphs (A) and Section 404(c)(1)(B) of such Act (29 U.S.C. eral officer or employee. (B) as clauses (i) and (ii), respectively, and 1104(c)(1)(B)) is amended by inserting before ‘‘(d) SPECIFIC POWERS.— by inserting ‘‘(A)’’ after ‘‘(c)(1)’’; and the period the following: ‘‘, except that this April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1255 subparagraph shall not be construed to ex- Mr. GEORGE MILLER of California. licans do not do that. They have a roll- empt any fiduciary from liability for any Mr. Speaker, I yield myself such time ing 3 years. They have a 5-year phase- violation of this section’’. as I may consume. out. We do not think that that is fair SEC. 602. TAX TREATMENT OF QUALIFIED RE- Mr. Speaker, we have heard a great TIREMENT PLANNING SERVICES. to the worker. We think the worker (a) IN GENERAL.—Subsection (m) of section deal today and over these past many ought to have that control. 132 of the Internal Revenue Code of 1986 (de- months about the Enron scandal. I It is interesting now that as corpora- fining qualified retirement services) is think there is general agreement tions review their plans, they are mov- amended by adding at the end the following throughout the halls of Congress and ing toward the Democratic bill. Chev- new paragraph: throughout this Nation that it was, in ron, in its merger with Texaco, decided ‘‘(4) NO CONSTRUCTIVE RECEIPT.—No amount fact, a scandal; that we saw the very that people could diversify imme- shall be included in the gross income of any diately. Time Warner decided that peo- employee solely because the employee may worst in human behavior with respect choose between any qualified retirement to corporate responsibility, and the re- ple in AOL could diversify imme- planning services provided by a qualified in- sponsibility of employers to employees, diately. Walt Disney, Gillette, Quest vestment advisor and compensation which of the corporation to its shareholders, Communications, Procter & Gamble, would otherwise be includible in the gross in- of the corporation to the general pub- McDonald’s, Coca-Cola, Pfizer, Abbot come of such employee. The preceding sen- lic. Laboratories. So this is not a radical tence shall apply to highly compensated em- b 1415 approach. People realize this is what ployees only if the choice described in such workers are entitled to now because sentence is available on substantially the But this legislation is more than the 401(k) is made up, 100 percent, of same terms to each member of the group of about Enron, because Enron is in bank- the assets that belong to the worker. employees normally provided education and ruptcy. Enron may very well cease to information regarding the employer’s quali- We also said that if this is the em- fied employer plan.’’. exist as an ongoing financial entity. Its ployees’ assets, if this is their money, (b) CONFORMING AMENDMENTS.— parts are being sold off. Its parts are this is their stock portfolio, this is (1) Section 403(b)(3)(B) of such Code is being salvaged and people are trying to their retirement, maybe they ought to amended by inserting ‘‘132(m)(4),’’ after get hold of their lives again after the have a say on the board. At Enron we ‘‘132(f)(4),’’. financial collapse. But Enron was also saw that they had no say on the board, (2) Section 414(s)(2) of such Code is amend- a beacon of warning to millions of that the board was made up of execu- ed by inserting ‘‘132(m)(4),’’ after ‘‘132(f)(4),’’. American workers about what their tive vice presidents who did not want (3) Section 415(c)(3)(D)(ii) of such Code is particular situation might or might amended by inserting ‘‘132(m)(4),’’ after to deliver any bad news to the corpora- ‘‘132(f)(4),’’. not be with respect to the security of tion, who when they found out bad (c) EFFECTIVE DATE.—The amendment their 401(k) plan; a 401(k) plan of which news did not tell the employees, did made by this section shall apply to taxable the workers are being told over and not tell the pension board, went off and years beginning after December 31, 2002. over again they are going to have to privately sold their own stock. TITLE VII—GENERAL PROVISIONS rely on more and more for their retire- But we have also seen that that has SEC. 701. GENERAL EFFECTIVE DATE. ment because companies refuse to pro- been true in other corporations beyond (a) IN GENERAL.—Except as otherwise pro- vide a defined benefit plan which would Enron. We have seen that family mem- vided in this Act, the amendments made by provide them much more security and this Act shall apply with respect to plan bers have been selling stock when the years beginning on or after January 1, 2003. much more future security with their corporations are in trouble. Obviously (b) SPECIAL RULE FOR COLLECTIVELY BAR- retirement, something that they could somebody whispered to their son or GAINED PLANS.—In the case of a plan main- count on. daughter, ‘‘The company is not doing tained pursuant to 1 or more collective bar- So what have we learned from Enron? so well, sell the stock.’’ gaining agreements between employee rep- We learned from Enron that many em- Why should the employees not have resentatives and 1 or more employers rati- ployees did not have control over that that information? We believe there fied on or before the date of the enactment of part of the stock that was contributed this Act, subsection (a) shall be applied to should be a rank-and-file member on benefits pursuant to, and individuals covered by the corporation. We also found out the pension board since the pension by, any such agreement by substituting for that many employees were prevented represents 100 percent of the employ- ‘‘January 1, 2003’’ the date of the commence- from having any control over that ees’ money. Research has shown us ment of the first plan year beginning on or stock until age 50 or 55. But we also that where we have rank-and-file mem- after the earlier of— found out that that was not unique to bers on the pension board, people tend (1) the later of— Enron. That was true of many corpora- to invest more in their retirement (A) January 1, 2004, or tions, of the Fortune 500 and unnamed (B) the date on which the last of such col- plans and they do a little better on the lective bargaining agreements terminates corporations that we do not know a lot rate of return. We think that that is (determined without regard to any extension about, but that was true of them and a important. That is a lesson of Enron thereof after the date of the enactment of holding period for the employees not to that is important for other corpora- this Act), or divest themselves of the stock. That tions and for the employees. (2) January 1, 2005. was done for the convenience of the We also saw the situation where em- SEC. 702. PLAN AMENDMENTS. corporation. That was done because the ployers were dumping stock, where Ken If any amendment made by this Act re- corporation believed it made their em- Lay was telling people in e-mails that quires an amendment to any plan, such plan ployees more loyal. But when the plans amendment shall not be required to be made he was buying stock. But he was not before the first plan year beginning on or went wrong with their financial future, really buying stock, he was trading after the effective date specified in section the company went wrong, we found out stock and, in fact, he was selling the 601, if— that the employees were locked into a stock to liquidate the large loans, per- (1) during the period after such amendment situation from which they could not sonal loans, that he had taken from the made by this Act takes effect and before extract themselves. Enron Corporation. such first plan year, the plan is operated in So this legislation takes the Enron Again, as we have seen the fortunes accordance with the requirements of such lesson and says we ought not let that of companies change over the last sev- amendment made by this Act, and (2) such plan amendment applies retro- happen to other employees in other eral months in a down economy, in a actively to the period after such amendment corporations. So we say that after 3 changed dot-com society, we have seen made by this Act takes effect and before years of employment, you ought to be that many employers have been dump- such first plan year. able to diversify your 401(k), your ing stock. We think that maybe the The SPEAKER pro tempore. Pursu- 401(k), in a manner which you think is employee ought to know that when the ant to House Resolution 386, the gen- best for your retirement. The 3 years is corporate heads of the company decide tleman from California (Mr. GEORGE a maximum period of time which you to dump the stock, that they ought to MILLER) and the gentleman from Ohio ought to be able to force the employee be told about that. Today you can hide (Mr. BOEHNER) each will control 30 to hold onto the stock, because mar- that sale of stock for 6 months or a minutes. kets move fast, financial markets year. Six months or a year can be an The Chair recognizes the gentleman move fast, and the future of corpora- economic disaster for the employees if from California (Mr. GEORGE MILLER). tions changes all the time. The Repub- you are caught behind that wave. So H1256 CONGRESSIONAL RECORD — HOUSE April 11, 2002 we say when you sell $100,000 of shares, I think President Bush got it about tirement. It does not deal with the un- inform the pension board, inform the right. In his first public statement ethical behavior of corporate execu- employees. What is it that we cannot after the Enron case down in North tives who are not in Enron. It does not trust these employees to understand? Carolina, I believe it was at a naval deal with the ability of corporate ex- They will make the decision if they base, he said, ‘‘What is good for the ecutives to hide their transactions want to also sell their stock, like the captain should be good for the sailor.’’ from their employees and from the in- CEOs and the FAO of the corporations. That is what the Democratic sub- vestors. And it does not deal with the We also decided and we learned from stitute says. It says that we ought to fairness of the treatment of those two Enron that there was much corporate recognize the dignity and the hard parts of the corporation. misconduct, where the employees who work of the employees and they should The Democratic substitute does it. It were devastated by that conduct had not be put in a position of disadvan- does it in a way that does not place a no right to proceed against those peo- tage. They should not be put in a posi- burden on the system. It is really ple who defrauded them, who had tion where they could lose everything about disclosure. It is really about fair- looted the companies. Again, trag- when the executives are in a position of ness. And it is making sure that as we ically, not unique to Enron, but we losing nothing. That is a very impor- walk away from the Enron disaster, have seen the same instances in a num- tant principle. It is a very important that we really in fact have changed the ber of other corporations, so we said principle for this Nation. The President manner in which we are doing business those people ought to be able to pro- recognized it, but the Republican bill to make sure that there is fairness in ceed to recover their retirement nest does not. treatment and there is protection for egg, to recover their financial future, The Republican bill concentrates on the American worker. The bill as pre- to recover the plans that they have getting the employees better invest- sented to us today is incomplete in made for themselves and their families ment advice, and that is a good idea. that fashion. The Democratic sub- because somebody acted in an illegal Clearly, even the Enron employees did stitute will complete that part of the fashion. not understand the real value of diver- story, to provide that kind of protec- Today those people can do that. And sification. So good investment advice tion for the American worker. under ERISA there is no right of recov- makes sense as people are trying to I will hope that our colleagues in this ery, so this is beyond the Enron em- plan for their retirement. We believe House on both sides of the aisle will ployees. This is about the millions of that that advice should not be con- embrace this substitute and discharge other employees who are out there in flicted. The Republican bill does not their obligation that we have to pro- this same situation. provide for that kind of protection. vide for the retirement future and pro- What else did we learn from Enron? We recognize, as we have seen, where tection of the American worker. We learned that the employees had one Arthur Andersen was deeply conflicted Mr. Speaker, I reserve the balance of plan, a 401(k) plan, and that the execu- between the commissions it was mak- my time. Mr. BOEHNER. Mr. Speaker, I yield tives had another 401(k) plan. The ex- ing on consulting from Enron and au- myself such time as I may consume. ecutives’ plan was insured. It was guar- diting the books they were presenting As I said earlier, with all due respect anteed. So as Enron goes on the rocks, to the public, to the shareholders, and to my colleagues, some on the other as it becomes bankrupt, the executives to the employees about the health of side who believe that the base bill be- leave with life preservers in the life- the company. fore us does not go far enough, I would boat. The employees leave with noth- We have now seen all of the labyrinth argue that the proposal offered by my ing. of commissions and fees and financial good friend, the gentleman from Cali- We think that if you are going to in- arrangements that had distorted the fi- fornia (Mr. GEORGE MILLER), does in sure the executives’ plan, insure the nancial marketplace, the most recent fact go way too far. employees’ plan. Both of them are con- of which is Merrill Lynch, where Mer- Let me point out several of those dif- tributing to making the wealth of the rill Lynch was seeking to make mil- ferences. As the gentleman said, when company. Both of them are creating lions, tens of millions of dollars as an it comes to company-matched stock in the earnings of the company. It is not investment bank, but it was doing a 401(k) plan, companies today can re- like the Enron employees were not business with the same people whose quire you to hold that until such time working hard in this company. They stock it was touting, so it did not want as you retire, not allowing you to take just did not get a chance to be pro- to say ‘‘don’t buy ABC stock’’ when it the company match and to convert it tected like the executives. was trying to negotiate a commission into some other type of stock or bond, So this is really about whether or not worth tens of millions of dollars, so it or cash for that matter, within the ac- we are going to continue to accept a had its people keep saying ‘‘buy ABC count. And so the gentleman from Cali- system where we have an elite group of stock’’ and even those people said, fornia has a 3-year limit that would go executives that get insured pension ‘‘That is lousy stock. It’s no good.’’ into effect at the signing of the bill, plans, get incredible compensation, are They were conflicted. but after that there is no holding pe- able to buy multimillion-dollar homes Yes, investment advice is good, but it riod at all. in Florida or in Texas that are exempt ought to be independent. It ought to be from bankruptcy, that can have insur- independent of those commissions, of b 1430 ance plans that guarantee a payout, those holdings, of those conflicts. And The underlying bill, beyond the 5- and then there are the employees who they run throughout the financial mar- year phase-in, has a 3-year rolling aver- go to work every day, who build the fi- kets. age. Any new matched company stock, nancial future of the company, who do If America got any lesson from the maximum it could be required to be the job for which they were hired and Enron, through Arthur Andersen, held by the company is 3 years. Many can be left with nothing. through Global Crossing, through so employers are already doing it on their This really is about equity. This is many others, they learned that there own, doing 1 year, doing quicker time about fairness. This is about what we really are two systems; a system for frames. owe the workers in these companies. the privileged, for the elite, for the ex- But why do we have a 3-year rolling Mind you, these very same companies ecutives, and another system for the average? Because we do not want to made a decision that this was really employees who are investing in these discourage companies from offering the good for the executives, for the top cor- companies. company match that many do in stock porate elite, that these were all good That is why we have introduced the today. They find that this is a perfect things to do. But now when you sug- substitute, because half of the Repub- way of trying to retain employees, to gest that maybe you should do them lican bill is missing. Yes, it deals with encourage employees to stay with the for the employees, for the rank-and-file investment advice, but it does not deal company. And I am concerned that in a people who are on the line working with the lessons of Enron. It does not proposal similar to the one the gen- every day, that somehow it is radical deal with the peril of millions of Amer- tleman from California (Mr. GEORGE or it is un-American or it is against the icans who are leaning very hard on MILLER) is proposing, that many em- free enterprise system. their 401(k) to help provide for their re- ployers would in fact eliminate the April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1257 match of company stock that they do be dealt with to get more investment There was no objection. today. We do not want to do anything advice into the marketplace. One, we Mr. ANDREWS. Mr. Speaker, I yield in this bill that would hurt the ability have to do something about employer myself 3 minutes in support of the Mil- of employees to maximize their em- liability, and both the Miller sub- ler substitute. ployment security. stitute and the underlying bill, the Mr. Speaker, there is some confusion Another problem we see with the sub- Pension Security Act, deal with pro- on the issue here of the competing pro- stitute being offered is that we expand tecting employers from liability, other posals and how long someone is re- remedies. We expand more remedies, than they have to exercise their fidu- quired to hold shares of stock contrib- more lawsuits for those who may have ciary duty in hiring a good investment uted by an employer when that is the just made a mistake. I am not talking advisor. employer stock. I want to be very about criminal behavior here, we will But the second issue is this: It says if clear: The proposal that we support, get into that in a moment. But to ex- you sell products, you are prohibited the Democratic substitute, does call pand remedies is a nice big red flag for from giving investment advice. Now, for a 3-year period, not a 1-year period employers that says, if you open a pen- the idea here is to get more investment as some groups outside of this body are sion plan, you are going to be opening advice in the marketplace, and under alleging. It is a 3-year period. yourselves to expanded liability. the Miller proposal they would have to The Republican proposal, the under- What that is going to do, plain and go get independent third-party advice. lying bill though, I want to be clear simple, is discourage, especially small It is well-meaning, well-intentioned, about what it means to a person who is companies, from setting up a pension but very expensive, and, I would add, in a 401(k) plan that has her or his em- plan for their employees, at a time most employers are not going to ever ployer’s stock matched in that 401(k) when we have worked for years here to go down that path. My point is, we will plan. Under the underlying bill, it try to encourage more employers to end up with very little investment ad- would be 5 years before an employee offer these plans to their employees. I vice in the marketplace. could completely divest himself or her- think there are sufficient remedies Under the underlying bill, we say you self of that stock. So here is what this today within ERISA and within the could go out and get independent ad- means: If you were working for a com- code, and expanding those remedies at vice if you like, or you could have pany and the company put matching this time I think is a very big mistake. those who sell product set up invest- shares of its stock into your 401(k), and Let me also say that the substitute ment advice under these conditions: the company started to slide downhill creates criminal penalties that do lead You have to disclose any potential con- the way Enron slid downhill, and you to personal liability again for mere flicts; you have to disclose any dif- decided the best thing for you to do mistakes that someone might make. ferences in fees between the products was to get your retirement fund out of that stock, get it out of there so that Again, there is another red flag. If I am that you are selling; you have to do you would not be losing your pension, an employer looking at setting up a this at the same time commensurate under the Republican bill that we are plan or maintaining my plan, why with the giving of the advice; and, amending it would be a 5-year process, would I want to open myself up for the above all, you are required to be held 5 years, before you could get all of that possibility of criminal wrongdoing if I to the highest fiduciary duty in the stock out. It is phased out 20 percent, made a mistake in the administration giving of that advice, which means then 40 percent, then 60 percent, then of my plan? Again, I think we have suf- that when you give the advice, it has 80 percent. ficient remedies today within ERISA to be solely in the interest of that em- I do not see why people should be re- to deal with this. ployee, and there are penalties if you quired to wait 5 years. Next week will One of the other issues that the gen- violate any or all of those. commemorate the anniversary of the tleman from California (Mr. GEORGE We believe what this will do is to sinking of the Titanic, April 15. The MILLER) talked about is the fact that bring more investment advice into the Republican proposal reminds me of the corporate executives have insured marketplace in a much quicker way Titanic in this respect: When the Ti- plans and 401(k) plans are not insured. and cover far more employees. As a tanic was sinking, the wealthy people Now, we are dealing a little bit here matter of fact, the House thought this got off the ship in their lifeboats and with apples and oranges, because when was such a good idea last November, the working class people were locked it comes to the corporate governance before we knew what we know today down below in steerage, unable to get issues, it is controlled by another com- about Enron, that the House voted 280 off the boat as it was sinking. That mittee, and we are strictly dealing here to 141 to support the exact investment very unfortunate proposal is carried with ERISA and with the Tax Code and advice bill, virtually the same invest- out in the underlying bill. with pension issues. ment advice bill, that is contained Frankly, there are those of us that But one of the issues that is in the here. believe 3 years is far too long, but in an gentleman’s bill is he would require li- So I would say to my colleagues on attempt to compromise, to make sure ability insurance for the full value of both sides of the aisle, my Democrat we could draw as many people to sup- all of the 401(k) accounts within the friends are as concerned about this as port the proposal as we could, the company. Now, if you want to talk we are. I do in fact believe that if we Democratic plan talks about 3. about a staggering bill that would dis- were to adopt the Miller substitute, I do not want any confusion about courage employers from setting up that we would in fact limit the ability the fact that the bill that we are 401(k) accounts, here is probably the of employers to set up plans, we would amending, the underlying plan, calls single one big issue that would stop discourage employers from setting up for at the beginning of the plan a 5- them cold in their tracks. They would plans, and we would see companies fold year period before someone can get say, listen, if I have got to buy an in- up their plans. I do not think that is completely off that sinking ship. That surance policy for several hundred mil- what we want to do at this day and is wrong, and that is another good rea- lion dollars, do I really want to have hour. son to support the Democratic sub- 401(k) accounts? We should be looking at how can we stitute and oppose the underlying bill. The last issue I would like to talk secure the retirement security for Mr. BOEHNER. Mr. Speaker, I ask about, though, that is of great concern more American workers, how we can unanimous consent that 15 minutes of to all of us is the issue of investment expand the number of workers covered the time in opposition be given to the advice. We have some 50 million Ameri- by high-quality retirement plans, and Committee on Ways and Means and cans today who have self-directed not go in the other direction. controlled by the gentleman from Ohio 401(k)-type of accounts. We all know Mr. Speaker, I reserve the balance of (Mr. PORTMAN). that they need good, solid investment my time. The SPEAKER pro tempore. Is there advice that meets their particular The SPEAKER pro tempore (Mr. DAN objection to the request of the gen- needs. So both sides have the issue in MILLER of Florida). Without objection, tleman from Ohio? their bill. the gentleman from New Jersey (Mr. There was no objection. But the difference here is very simply ANDREWS) will be recognized to control Mr. BOEHNER. Mr. Speaker, I yield 4 this: There are two issues that have to the time in favor of the amendment. minutes to the gentleman from North H1258 CONGRESSIONAL RECORD — HOUSE April 11, 2002 Carolina (Mr. BALLENGER), a long-term expensive. However, mandating each What have we learned from this trag- member of the Committee on Edu- individual fiduciary to have his or her edy? How can we protect ourselves cation and the Workforce. own insurance would be redundant and from a recurrence of the financial dis- Mr. BALLENGER. Mr. Speaker, let costly, and, once again, these costly, asters of this magnitude? By not sup- me just say I rise in support of the base unneeded measures would discourage porting the Republican bill. Why? Be- bill and in opposition to the Miller- employers from offering retirement cause their bill fails the American peo- Rangel substitute on the grounds that plans. ple. Because they create new loopholes it would oppose a host of new govern- Finally, the substitute would man- and a relaxed requirement. Their bill ment regulations that will drive busi- date that retirement plans include an lacks real teeth to hold companies ac- nesses out of offering, and I emphasize employee representative on the joint countable. It fails to hold plans ac- the word, voluntary retirement savings board of trustees. What employee can countable, and it fails to provide real plans. you find that would be willing to serve diversification in plans; and it fails to I happened to be in a situation in 1950 on a board when he knew he was going give employees’ notice when companies in my company back home where we to get sued? That is an interesting sit- are dumping company stock, and it had an employee that had worked for uation. continues to give preferential treat- the company for 30 years and decided This is already allowed under ERISA, ment to executives. to retire, and I found out at that time, and some employers do it. This man- The Democratic alternative provides I did not realize much about the way date would increase administrative real pension reform. How? By, one, in- things went, I realized that this gen- burdens on employers, and since cluding strong criminal penalties for tleman after 30 years with me had only ERISA currently requires that plan ad- executives who engage in mismanage- his Social Security to count on. So ministrators act solely in the interest ment and abuse, by requiring notifica- what I did is I put into our company at of participants and beneficiaries, what tion of employees when executives are that time a defined benefit plan that is the benefit of mandating an em- dumping company stock, and ensuring was going to take care of all the em- ployee to join the Board of Trustees? that employees receive honest and ployees, some retirement and so forth. There is not one, but it does add a sub- timely information about their pen- This whole situation, to my way of stantial burden. sions from unbiased, independent fi- thinking, was a fabulous thing. We While I believe the government has a nancial advisors, and it gives employ- should take care of employees. role in protecting employees’ retire- ees a voice on pension boards. All of a sudden, somewhere down the ment plans, I cannot support a massive During the markup in the Committee road we ran into the fact that the gov- imposition of Federal regulations that on Education and the Workforce, the ernment’s regulations were coming will destroy the incentive for employ- Democrats offered amendments, along and it appeared to me I was not ers to offer retirement plans. I urge a amendment after amendment, which trustworthy of Uncle Sam, so what I ‘‘no’’ vote on the substitute amend- would strengthen the current law that did is I liquidated the whole pension ment and a ‘‘yes’’ vote on final passage would protect the American workers, plan and gave the employees all the of H.R. 3762. holding their hard-earned savings to Mr. ANDREWS. Mr. Speaker, I yield money and started over again. And we their own portfolio, which were denied. 31⁄2 minutes to the gentleman from New ended up with a 401(k) and an ESOP Because the bottom line is, this is their Jersey (Mr. PAYNE), who is a strong right now, which I realize the ESOP is money, and the employees should have voice for workers both in New Jersey not involved in this. But I want you to more say over it. and around the country. It appears to me that the Republican know, I got out of this pension plan (Mr. PAYNE asked and was given even before I knew about trial lawyers bill serves the interests of corporate permission to revise and extend his re- executives rather than the rank-and- or fiduciary responsibility. marks.) The Democrat substitute creates a file employees who lost billions of dol- Mr. PAYNE. Mr. Speaker, let me lars of their retirement savings. There new resource for trial lawyers to line thank the gentleman from New Jersey their pockets by increasing the liabil- must be an end to this giving special for yielding me time and commend him treatment to executives while employ- ity exposure of employers, administra- for the outstanding work that he did on tors, service providers to an ill-defined ees suffer. Enough is enough. the subcommittee handling this very Support the Democratic substitute, and uncapped damage. From the CEOs important Pension Security Act. which seeks to correct loopholes, shift- to the middle managers and those who There are, in my opinion, defining fi- ing less risk on our workers, putting have no control over the plan’s invest- nancial points in every decade. In the more control of their money in their ment decisions, they could be person- seventies we suffered a gasoline short- hands. Support the substitute which ally liable for losses in their retire- age, where long lines disrupted the provides unbiased, independent advice, ment plan, and these men and women daily lives of American people and lost a parity of benefits for all employees, who are sued for something out of their productivity ensued. representation on pension boards, and control could be forced to pay damages b 1445 tougher criminal enforcement. beyond the lost value of their retire- We can all agree we cannot let this ment plan. Current law allows Labor, In the 1980s, there was the savings happen again. The Miller-Rangel bill Treasury and the Justice Department, and loan debacle where greedy inves- seeks to correct the loopholes, shift as well as affected individuals, to take tors and unscrupulous brokers went less risk to our workers by putting the actions to recover damages from a away with billions of dollars of Ameri- control of their money in their hands. plan. cans’ money. In the 1990s we suffered a Stop favoring executives, and let us Additionally, the Democrat sub- recession where the market dropped. protect our workers. Support the stitute would extend this unlimited However, we bounced back because Democratic substitute. right to sue to all ERISA plans, includ- President Clinton and his great pro- Mr. BOEHNER. Mr. Speaker, I yield 3 ing retirement, health, disability, all gram in the early 1990s cut $250 billion minutes to the gentleman from Geor- of these plans, as well as reducing the of spending and another $250 billion to gia (Mr. NORWOOD), the chairman of the availability of retirement plans. This the 1 percent of the top earners in the Subcommittee on Workforce Protec- amendment would destroy the current country, and that $500 billion put us on tions. system of employer provided health in- to a projected $5 trillion surplus over Mr. NORWOOD. Mr. Speaker, I thank surance, leaving millions of Americans the years. However, we have seen that the gentleman for yielding me this uninsured. wilted away by the new administra- time. I strongly support the underlying The Miller-Rangel substitute would tion. bill, and I ask my colleagues to vote force every fiduciary to a defined con- In this decade, it is safe to say that down the Miller substitute. There are tribution plan to have insurance them- the Enron debacle will go down in the many reasons to do that. We have selves in case there was a breach of fi- books as an example of deception and heard many of them this afternoon. I duciary duty. I do not know how many mismanagement and which has ruined would like to focus in on just one area. of you have looked at the cost of that the lives of thousands of people. That Mr. Speaker, this substitute is a clas- insurance, but today it is unbelievably is the human side that we do not see. sic case of putting the fox in charge of April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1259 the hen house. Believe it or not, their and I have heard people ask, Could we this area, on the outside and people substitute would make union officials find some workers that would be will- here in Congress, that we have to pro- trustees of any savings plan that is ing to serve on the board? I will tell my vide people with better tools so that given to workers they represent. This colleagues, they are lining up in Port- they can make better decisions once will jeopardize hundreds of billions of land, Oregon. They would love to serve. they have been given more flexibility dollars in workers’ savings. I have heard people who are concerned and more choice. We have disagreed Just blocks away from this House, about the trial lawyers being involved. here on the floor as to what kinds of just a couple of blocks, a Federal grand Well, the trial lawyers did not create tools those should be; but I think we jury is determining whether a dozen or the problem in Portland; but I will tell agree, for the most part, that we ought so union presidents violated their fidu- my colleagues, there are lots of Repub- to be getting people more advice. ciary duties by inside trading of stocks licans lining up to hire them to try and There are three ways this bill does tied to Global Crossings Corporation, salvage a little bit of their dream. that. First, it says that every time in which they have invested workers’ Today’s Republican pension bill I someone gets into a plan, they have to pensions through union life insurance think falls far short in an obviously be given a notice saying you must look companies. Meanwhile, workers were flawed pension system. I support the at your portfolio and you should diver- losing billions from the bankruptcy of substitute. sify; in retirement, you should not their company. This substitute will The chairman of the committee ref- have all of your eggs in one basket. It turn private savings of union workers erenced the act that we passed last fall also says that on a quarterly basis, you over to these same leaders. before we knew about some of these get a report as to what is going on in As chairman of the Subcommittee on abuses dealing with conflicted invest- your plan. That is not currently re- Workforce Protections, I can tell my ment advice. Well, I will tell my col- quired. None of these are. It also says, colleagues that this country is suf- leagues, it was wrong last fall; and if under commonly accepted investment fering from what The New York Times the Members on this floor knew of the practices, you should diversify, in plain reports is a wave of union corruption. abuses and the problems, I do not think English. Just yesterday, I heard testimony it would have passed then. Second, it lets employees, on a pre- about the embezzlement of millions by It is critical that we provide true se- tax basis, pay for investment advice. New York City’s largest public em- curity for retirement savings, that we That is not currently available. It ployee union. I heard about workers hold corporate executives accountable could be like a cafeteria plan or like an who only make $20,000 a year forced to for their actions, that we give employ- eye glass plan or a health plan or a pay dues of $700 a year, which was then ees some mode of control over their pension plan. It lets employees have a used for penthouses, maid services that own retirement dollars, that we give tax preference to go out and get invest- were really male prostitutes, clothing, them a voice. God forbid that there be ment advise on their own. They can overseas trips, Super Bowl tickets, top- as many employee representatives as choose whoever they want. That is ex- less bars, and it goes on and. Do we employer representatives. I am not pensive. That is one reason why people really want that same crowd to get afraid of that; and I will tell my col- do not seek it. That is what the sur- their claws into the individual savings leagues, the people in Portland who veys show. So we are trying to help of these workers? I do not believe any have been brutalized by this system, I people. of us would want to do that. think they would find it to be a great, Finally is the investment advice As some of my colleagues know, I great proposal to put into effect. piece that passed this House last No- raised a few chickens on my place back I will tell my colleagues the pain vember with 64 Democrats supporting in Georgia. I have had dogs on that that I have witnessed firsthand with it, and that piece says the company property, and I love them very much. people who have had to delay their re- should be able to bring in people who However, I would never let my dogs tirement, who have had their family’s are certified, qualified, who disclose start eating my chickens. It would nat- dreams shattered; and being disillu- any potential conflict of interest, who urally be rough on the chickens, and sioned as a result of this is impossible have a fiduciary responsibility to only the dogs would never hunt again. to be able to give voice to. But thank- do what is good for the workers; other- Now, I know my Democratic friends fully, some of these witnesses have wise, they face penalties, and those love the support they get from labor come to Washington, D.C. people offer advice. That is a pretty leaders. I know they want to feed them Mr. Speaker, I would just say that it practical way to do it, because some any chance that they can get. But happened in Portland, Oregon; and it companies will be willing to pay for please do not feed them the savings of can happen anywhere. That is why we that and offer it. We want to encourage hard-working American families. It is need to support this substitute. that. bad for the dogs, and it is murder for Mr. PORTMAN. Mr. Speaker, I yield If we really believe education is a the chickens. Friends, that dog has al- myself such time as I may consume. problem, and I think most of us do, we ready got feathers on his snout that I think the gentleman addressed the have to do something that is going to look a whole lot like pension money. concerns, and all I can say is the un- address it directly and that is really I urge my colleagues to vote down derlying bill does address them. If you going to work in the real world. I think the Miller substitute. are an Enron employee, you had to this substitute and the proposal there Mr. ANDREWS. Mr. Speaker, may I hold that stock until you were 50 years would not work nearly as well in the inquire as to how much time our side old. What this underlying bill says is, real world because I do not think em- has left. you cannot do that anymore. A com- ployers would take advantage of it. The SPEAKER pro tempore (Mr. DAN pany cannot require that the employee Finally, we provide a lot more infor- MILLER of Florida). The gentleman hold the company-matched, it goes mation in this bill. We tell people when from New Jersey (Mr. ANDREWS) has 91⁄2 into a 401(k), until the employee is age there is a blackout period. Right now minutes; the gentleman from Ohio (Mr. 50. In fact, you cannot do it for more there is no requirement for that. Thir- BOEHNER) has 30 seconds remaining; than 3 years. There is an initial 5-year ty days before a blackout period, and and the gentleman from Ohio (Mr. period where you can unload 20 percent now you have to have a notice. That is PORTMAN) has 15 minutes remaining. per year so you do not disrupt the mar- going to help people who are stuck in a Mr. ANDREWS. Mr. Speaker, I yield kets; and after that point, you cannot situation like the Enron scandal. 2 minutes to the gentleman from Or- hold an employee with the corporate So this is much more than Enron. It egon (Mr. BLUMENAUER). stock for more than 3 years. The hand- affects 55 million Americans who are in Mr. BLUMENAUER. Mr. Speaker, I cuffs are off. That is a big change. defined contribution plans, particu- appreciate the gentleman’s courtesy of Under current practice, you can hold larly those who are in a plan where you yielding me this time. somebody until they retire. You can can get some corporate stock as a I have been listening in disbelief to hold them for 40 or 50 or 60 years. It match, which is not the majority of the testimony here before us today. I also provides more education, and this plans, unfortunately, because we want represent as many Enron survivors as is extremely important. I think there these plans to be generous; but it will probably almost anybody in the House, is a consensus on that among people in help millions of Americans, and it H1260 CONGRESSIONAL RECORD — HOUSE April 11, 2002 would have helped people who were they have no control over with regard I would urge my colleagues not to stuck in the Enron situation. It would to pensions. move forward with this amendment have helped them. Now, if one is a small business person until we have a chance to look at it Someone said that there is not ade- and is trying to decide how to get into and see what effect it would have. We quate protections in here or there is this business of offering pensions, and do not want to, by trying to protect nothing in here relating to what is is worried about the costs, burdens, and workers, create additional problems good for the goose is good for the gan- liabilities, and now you discover you that will lead to less retirement cov- der or, as someone said earlier, the cap- could have a criminal liability, a per- erage. tains ought to abide by the same rules sonal liability, more costs, more bur- So the underlying bill has important as the sailors. Well, there is. First of dens, what are you going to do? structural changes: more information, all, if you are a captain or if you are a Mr. Speaker, it is a voluntary sys- more education, more choice, more se- goose, and you have something of a tem. We need to provide incentives. All curity, more accountability. The sub- 401(k) plan, you have some assets in a the surveys show that. They all show stitute, while well-meaning, goes too 401(k) plan, you are treated like every- the same things: Small businesses are far and strikes the wrong balance. This body else. You are subject to the same going to get into providing pensions Congress ought to be working to ex- blackout notice, the same blackout pe- and the pension coverage we want pand retirement security, not to de- riod where you cannot trade. them to provide only if it is easier, less crease it. The question is, what if you have expensive, less burdensome, and has Mr. Speaker, I reserve the balance of stock outside of the 401(k)? Should you less liability. That is the direction we my time. have an additional requirement for ought to be going. Mr. ANDREWS. Mr. Speaker, I am those employees of a company, senior So we do have a balance here. We do pleased to yield 2 minutes to the gen- executives or not, who have stock out- provide the employees more rights and tlewoman from California (Ms. WOOL- side; and we say, yes, you should. If protections, and we think that is ap- SEY), a valued member of the Com- half or more of the people in a com- propriate, but we do not go so as far as mittee who has valuable experience as pany are affected, as was the case of to discourage those people who are al- a human rights executive. Enron, then you cannot trade during a ready offering plans, and again, more (Ms. WOOLSEY asked and was given blackout period, even though your importantly, to discourage those that permission to revise and extend her re- stock has nothing to do with a 401(k) might be interested in getting into the marks.) plan. That is a big change from current pension business now that we are offer- Ms. WOOLSEY. Mr. Speaker, I am a law. I think that needs to be clear. ing higher contribution levels, more member of the Committee on Edu- We are doing things that change protections, lower costs and burdens cation and the Workforce, and I can structurally the way we deal with pen- and liabilities. tell the Members that this Republican sions in this country. Not every busi- We cannot go the wrong way here. Pension Security Act of 2002 will not ness is happy about this, but we have We cannot go too far. My concern is make retirement secure for the major- tried to achieve a balance. Because at that the substitute does go too far. ity of employees. Instead, it allows a the same time that we are providing Remember, in 1983 there were 175,000 two-tiered retirement system that more protections for the workers, in- defined benefit plans in this country. gives top executives, the captains, spe- formation, education, disclosure, ac- Those are the good, guaranteed plans. cial benefits and protections while countability, all equaling more retire- There were 175,000 of them; today there leaving their employees, the crew, to ment security, we are also very sen- are 50,000. This Congress has, over fend for themselves if the company has sitive to this balance. Remember, there time, added costs and burdens and li- troubled times. That is plain wrong. are 42 million Americans in 401(k)s, 55 abilities to those plans to the point Our President has agreed: What is million Americans in other kinds of that most employers throw up their good for the captain is good for the plans. When we add them all up, there hands and say, I am not going to offer sailor; or what is good for the captain is $2.5 trillion of assets in these plans. them anymore. is good for the crew. We do not want to do harm to these We did things last year in this Con- I introduced an amendment during plans. More important, there are 70 gress to encourage defined benefit the committee that would ensure that million Americans, half the workforce, plans. We increased the limits, made it all of the crew have the pension parity, who have no plan at all. They do not easier to offer them. But we do not exactly the same as their captains. have anything. want defined contribution plans, the Every Democrat on the committee 401(k)s, to go the way of the defined voted for my amendment for parity. b 1500 benefit plans, do we? Do we not want Every Republican opposed it. They do not have a 401(k). They do more pension coverage? In a voluntary This Republican bill leaves employ- not have a SIMPLE plan, a SEP, or any system, we ought to do everything we ees that are seeing troubled times with retirement savings through their em- can to encourage them. their firms at the end of the line when ployer. There are a couple of provisions that it comes to collecting retirement bene- The whole goal of this Congress over I see in the substitute that I am con- fits, while the captains, those like Ken- the last 5 years has been to expand pen- cerned with. Why should internal dis- neth Lay from Enron, do not even have sions to those people. Where do they pute resolutions be prohibited? Em- to get in line. Their benefits are paid work? In small business, that is where ployers and employees alike like that, for up front in full. the great bulk of them are; in small public and private sector alike. Why in- The Miller substitute makes pension businesses, businesses that do not have crease litigation costs? Why increase benefits for the rank and file, for the a lawyer, they do not have an account- litigation? I do not get that. Why crew, as secure as for the executives, ant, they do not have somebody to go would we want to vote for a substitute the captains. It is real pension reform, through this maze, with the burdens, that has increased litigation, increased and we must support it. the costs and burdens and liabilities of costs? Mr. PORTMAN. Mr. Speaker, I yield pension plans. That is the real world. Second, there is an amendment in 21⁄2 minutes to the gentleman from Illi- That is why, on a bipartisan basis, here, well-meaning, trying to close a nois (Mr. WELLER), my colleague on the this House has acted, with over 400 loophole, by a colleague of mine in the Committee on Ways and Means. votes on this floor, to pass legislation Committee on Ways and Means, not (Mr. WELLER asked and was given to expand pensions to these smaller vetted. It is a brand new amendment. permission to revise and extend his re- employers by cutting down on the It did not even come up in committee. marks.) costs and burdens and liabilities. The one that came up in committee Mr. WELLER. Mr. Speaker, I rise in The alternative we are looking at was a different amendment. It has to opposition to the substitute, and, of here, the substitute we are debating do with those deferred comp plans that course, I support the bill that is being right now, increases costs, burdens, are not qualified plans. The Treasury managed and offered by the gentleman and liabilities. In fact, it makes people Department has not even looked at it. from Ohio (Mr. BOEHNER) and the gen- personally liable for decisions that We have not had a hearing on it. tleman from California (Mr. THOMAS) April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1261 and the gentleman from Ohio (Mr. Mr. Speaker, I rise in strong support The problem with the substitute is PORTMAN) today. of this Democratic substitute that is that instead of being pension protec- We have had a situation in our coun- being offered by the gentleman from tion, it is a trial lawyer’s bonanza. The try that we are all concerned about. California (Mr. GEORGE MILLER) and language in this substitute would au- The situation has been illustrated by the gentleman from New York (Mr. thorize suits to recover unlimited dam- Global Crossing and by Enron, and we RANGEL) and others. ages alleging economic and non-eco- have heard those names in the debate What we are talking about here nomic losses, and welcome to the liti- today. Because of that, it reinforces a today are the real lives of working peo- gation bonanza. goal we have been working on in this ple. This is about valuing and respect- Should pensions be protected? Abso- House, and that is to work to provide ing a person’s labor. It is about hon- lutely. But if we want to help working safe and secure retirement opportuni- oring a commitment. It is about keep- people, we want to expand the pension ties for the men and women who work ing trust. pool. We want to set up new opportuni- in America. It is not just about Enron employees. ties for small business to go into these We have made a lot of progress in the In my home State of Michigan earlier pension plans to do the very things my legislation we have passed out of here. this year, the auto supplier DCT laid friend, the gentleman from Michigan, This legislation before us today, the off its last 400 employees with 30- talked about. base bill, the Pension Security Act of minute notices, and then locked them We do not want an economic bo- 2002, is a real solution towards con- out of their 401(k)s. The collapse of nanza, or, sadly, and I am sure it is not cerns that have been raised by the so- DCT hurt not only the DCT employees, the intention of my friends, but one called Enron and Global Crossing prob- but also the city workers in the city of can almost see a situation where we lem. In fact, the base bill provides Detroit, whose pension fund lost $32 would have an economic bonanza and worker security and pension security. million in DCT investment. the equivalent of whiplash, whiplash. Let me express some concerns about Our pension laws are too outdated to Look, we are talking about people’s the substitute that has been offered by protect people. They are too weak to lives. It is precisely because of the dig- the gentleman from California (Mr. protect the K-Mart workers all across nity of work and the opportunity that GEORGE MILLER) and the gentleman this country who now face uncertain retirement brings, and their hopes and from New York (Mr. RANGEL). While I futures. They are too weak to protect dreams, that we do not want to see have great respect, I know they are our R&R workers up in northern Michi- funds jeopardized by unlimited liabil- well-intentioned, I do not believe they gan, in the Upper Peninsula, in the ity and damages that enrich only the are trying to be partisan and political, Mesabi Range, who are losing their trial lawyers’ lobby and does nothing but I believe what they are offering is benefits due to the flood of cheap steel to help working people. That is the pretty radical. It is an attempt to offer choice we have to make today. into our country. Mr. Speaker, we have a bipartisan a so-called solution which is way over- Pensions ought to be sacred. They piece of legislation with many com- board, and in the end would actually ought to be a symbol of a trust be- monsense remedies that people on both reduce retirement savings opportuni- tween a company and a worker. By the ties for workers, particularly because, sides of the aisle have championed. Do way, I would say to my friend, the gen- while maybe not intended, this legisla- not sacrifice that for a substitute that tleman from Georgia (Mr. NORWOOD), tion would actually discourage small enriches the trial lawyers’ lobby. Re- we would not have pensions if it was business from providing retirement ject the substitute and go with our bi- not for unions, let us make no mistake savings. The increased liability and partisan plan. about that, for workers. damages that would result would push Mr. ANDREWS. Mr. Speaker, I am Pensions are not handouts, they are employers out of providing retirement pleased to yield 2 minutes to our rank- something people earn. One of the benefits. Again, that is anti-small busi- ing member, the gentleman from Cali- worst things that could be done to a ness. fornia (Mr. GEORGE MILLER), the au- Also, I just do not understand why, in worker and their family is to take thor of the substitute and a tenacious the substitute that has been offered, their pension away. People dream fighter for workers across America. something that both Democrats and about their pension at their work site, Mr. GEORGE MILLER of California. Republicans have both agreed upon, in the factory, in the office, on con- Mr. Speaker, I thank the gentleman for that workers and employers have struction. They think about getting to yielding time to me. agreed upon in the past, that the sub- that point in their lives when they can Mr. Speaker, the gentleman who just stitute actually bans and prohibits al- enjoy their pension. And then to yank preceded me in the well might be inter- ternative dispute resolution when it from them, to take it, to pull it out ested to know that this year, the man there is an argument over pension ben- from underneath them, to deceive of the year of the American trial law- efits or how they are being operated. them, to break that trust, to break yers is going to be Ken Lay. He has de- Why would anyone want to do that? that commitment, is the worst thing veloped more business than any single The only ones who benefit by banning anyone can do. American in the history of the coun- alternative dispute resolutions are law- This Democratic substitute is the try. yers. Why do we want to create more right substitute. I urge my colleagues A lot has been talked about about in- litigation, when I think everyone in to support it. vestment advice. We all agree that in- our society agrees there is too much Mr. PORTMAN. Mr. Speaker, I yield vestors need to know more about plan- litigation today? 2 minutes to the gentleman from Ari- ning for their security. But it is inter- The bottom line is, the Pension Secu- zona (Mr. HAYWORTH), a member of the esting that when Jane Bryant Quinn, rity Act of 2002 is good legislation. It is Committee on Ways and Means. the financial writer for Newsweek Mag- bipartisan. It is put together very Mr. HAYWORTH. Mr. Speaker, I azine, looked at the investment advice thoughtfully over a period of time, rec- thank my colleague, the gentleman bill in light of the Enron scandal, she ognizing there are challenges and we from Ohio, for yielding time to me. yelled, ‘‘Help, I am scared for my need to offer solutions. I appreciate the words of my friend, 401(k).’’ Post-Enron, how could anyone Let us do the right thing, Mr. Speak- the gentleman from Michigan, who pre- even think of creating such a conflict er, and let us reject the substitute and ceded me in the well. Would that this of interest that is in the underlying support the Pension Security Act of substitute from the other side, would bill? You might as well turn the sys- 2002 with a bipartisan vote. that it in fact concentrated on work- tem over to the ice skating judges, be- Mr. ANDREWS. Mr. Speaker, it is a ers. cause that is the situation you have. pleasure to yield 2 minutes to the gen- I do not dispute a thing that my We have the very same people who tleman from Michigan (Mr. BONIOR), friend, the gentleman from Michigan, are making millions, hundreds of mil- our former majority whip and one of said about the desirability of pension lions of dollars in Commissions and the leading voices in America for mi- plans. Indeed, the bill we offer has an fees as investment bankers providing nority rights. opportunity to expand pension plans on retail advice to people who are trying Mr. BONIOR. Mr. Speaker, I thank into small businesses, opportunities for to plan for their retirement, the aver- the gentleman for yielding time to me. businesses with as few as 25 employees. age worker. H1262 CONGRESSIONAL RECORD — HOUSE April 11, 2002 b 1515 That is why it is so very regrettable I urge my colleagues to do just that. And they are being told on the level, that the Republicans have brought an Mr. BOEHNER. Mr. Speaker, I yield this is a good investment. But, in fact, irresponsible proposal to the floor. myself the balance of my time. what we know is they are making that Every day it seems Republicans are Mr. Speaker, we have talked a lot decision based upon the millions of dol- dragging another Trojan horse on to today about diversification, blackout lars in fees, not the best interests of the House floor, a horse that has some periods, fiduciary duty; but at the end the investor. This is really about nice features but covers up the dangers of the day what this bill really is about whether or not we are going to treat within. is real people and their own financial the corporate elite and the workers the I tell my colleagues, beware of Re- security. same. publicans bearing gifts. A vote for their Current pension law is simply out- It is a radical notion in the Repub- bill is a vote to weaken existing law by dated, and we have the responsibility lican Party that workers would have giving employees biased and conflicted to change that. We have the responsi- some say in their own retirement; that advice without access to an inde- bility to ensure that America’s retire- workers would be warned when the cor- pendent alternative. ment futures are not jeopardized by porate elite are bailing out of the cor- A vote for the Democratic substitute laws that are out of step with our cur- porate towers; when the corporate elite empowers workers; and it means giving rent times. If this bill had been law, it are selling their stock. A radical no- them control of their investment, accu- would have made a real difference for tion that the workers at Enron and rate investment advice, representation Enron’s employees. other corporations would be told of on pension boards to protect their in- Under this bill they would have had that. But we should expected that; we terests, and notification when execu- access to professional investment ad- saw that in committee. tives are dumping company stock. It vice, people who could have warned The Wall Street Journal said it best: also means holding plans accountable them that they had too many eggs in ‘‘The Republican-led panel rejected a through tougher criminal penalties for one basket. They would have been bet- dozen Democratic amendments which misconduct and the ability of employ- ter informed about upcoming blackout would have offered workers greater ees to collect damages when they are periods, and they would have had more protections and improved stricter rules misled. The Republican bill fails on all freedom to diversify their portfolios. on employer-sponsored 401(k)s and of these counts. The retirement future of our Nation’s other defined contribution plans.’’ Yes, A comparison of these two bills workers is too important for political they had a chance to help out workers, makes it very clear that President gamesmanship. In the wake of the to give them notice when the big shots Bush was right when he said, What is Enron collapse, the American people are selling their stock; to give them a good for the captain is good for the are counting on us to make practical say in the control of retirement funds crew. and necessary changes to our pension that belong to them, it is 100 percent of Let us follow that advice of President system that basically is healthy, and their assets; to make sure that they Bush and give employees control of in- that, on the balance, works very well. had the same rights as the corporate vestments of their nest egg and a voice But my colleagues on the other side elite. But the Republicans have not on their pension boards; give employ- of the aisle are being encouraged by seen fit to do that. You can support the ees the opportunity to be notified when the political leaders of their party to Democratic substitute, and you can executives dump company stock; give support an alternative to this bill that make sure that the workers after employees the right to be protected would do far more harm than good. In- Enron have more protections than they from conflicts of interest when receiv- stead of supporting bipartisan protec- had before. ing investment advice. And on that tions that would shield millions of Mr. PORTMAN. Mr. Speaker, I yield score, the Republican proposal not only American workers, the partisan oppo- the balance of our time for purposes of fails, it is regressive. It is regressive. It nents of this bill are putting their own control to the gentleman from Ohio makes matters worse for American political interests ahead of those of or- (Mr. BOEHNER), the chairman of the workers and their pension funds. It dinary Americans. The House Demo- Committee on Education and the gives employee and executive plans ex- crat leadership alternative is really no Workforce. actly the same treatment, employees alternative at all. It would enrich trial The SPEAKER pro tempore (Mr. DAN and executives exactly the same treat- lawyers. It would hurt small busi- MILLER of Florida). Without objection, ment. And it gives tougher penalties nesses, impose costly new mandates, the gentleman from Ohio (Mr. for company misconduct. and even endanger 401(k)-type plans. BOEHNER) will control the remainder of The Republican bill, on the other Most importantly of all, it would con- the time and has 21⁄4 minutes remain- hand, gives no control, no voice for em- tinue to deny workers from getting ac- ing and will have the right to close. ployees over their own nest egg. It al- cess to the professional investment ad- The gentleman from New Jersey (Mr. lows for conflicts of interest in invest- vice that is crucial for them to maxi- ANDREWS) has 2 minutes remaining. ment advice of employees, a very im- mize their own retirement security. In Mr. ANDREWS. Mr. Speaker, I as- portant point because this is where it short, the opponents of this bill would sume we have the right to close. makes matters worse. No notification take us in exactly the wrong direction. The SPEAKER pro tempore. The gen- to employees when executives dump The underlying bill, the Pension Se- tleman from Ohio (Mr. BOEHNER) has company stock. We know how many curity Act, which has been embraced the right to close. were victimized by that. It gives pref- by Republicans and Democrats alike, Mr. ANDREWS. Mr. Speaker, I yield erential treatment for executive pen- would change what is wrong with cur- the balance of my time to the gentle- sion funds. We want success to be rent pension law without, and I say woman from California (Ms. PELOSI), awarded both at the executive and the without, breaking what does not need our dynamic leader, the highest woman employee level. Why cannot Repub- to be fixed. I urge my colleagues to elected in the history of the House of licans recognize that? There are no new vote against the substitute and for the Representatives. penalties for pension plan abuse. underlying bill. Ms. PELOSI. Mr. Speaker, I thank The contrast is stark. The decision is Mr. UDALL of Colorado. Mr. Speaker, this the gentleman for yielding me time important. We have a responsibility on bill is not all that it should be. It is not even and for his leadership and kind words. this day to restore confidence in pen- the bill that we should be passing today. Mr. Speaker, an extremely important sion plans and investments of workers We should be passing the substitute offered matter is before the House today. and executives. We have a responsi- by the gentleman from California, Mr. GEORGE Nothing short of pension security of bility today to maintain confidence in MILLER, and the gentleman from New York, America’s working families is at risk. our financial systems. Mr. RANGEL. That was why I voted for that We all agree that this is a very, very Vote ‘‘yes’’ on the Democratic sub- substitute and why I am very disappointed that complicated issue; and we also agree stitute to do just that. Vote ‘‘no’’ on it was not adopted. that we want to maintain confidence in the Republican proposal, a bill that But now we are left with the choice of voting our financial systems in the decisions makes matters worse for workers in- for this bill or voting for no legislation at all. we make today. vesting in their retirement pensions. And I think there definitely is an urgent need April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1263 for legislation to address the serious problems As we all know, the collapse and bankruptcy have more control of their money, whether it made so evidently by recent events, including of the Enron Corporation left thousands of be through massive tax cuts, or the creation of the collapse of the Enron Corporation. people without their retirement funds and won- individual Social Security accounts, or other For that reason—and solely for that rea- dering how they might make ends meet when innumerable examples. Yet, this bill does not son—I will vote for the bill. I do not think that they are no longer working. While the high give employees any control over their money. it would be responsible to say that it would be ranking officials of the company were able to It keeps control of their pensions in the hands better to do nothing. dump their stock in the last few days of the of their employers. In voting for the bill, I am under no illusions company’s existence, the middle level and This is the perfect vehicle to finally give the about its flaws. In particular, I very much dis- lower level workers, the people who had no people more control of their hard earned approve of the changes the bill would make in idea of the financial disaster that lurked on the money. Let’s take the responsible step and current law related to investment advice pro- horizon, were locked out of selling their com- pass the Rangel-Miller Substitute and make vided to employees. Those provisions are pany stock and ended up losing most of if not sure that employees’ retirement accounts are similar to those in H.R. 2269, which the House all of their hard earned retirement funds. protected. passed last year. I voted against that bill, and Accordingly, it is incumbent on us in Con- Ms. KILPATRICK. Mr. Speaker, so the pat- if this bill did not include anything more, I gress to address this issue and to take the tern continues. In October 2001, we provided would vote against it as well. necessary steps, no matter how difficult they $15 million to the airline industry following the However, while the rest of the bill falls short may be, to ensure that this never happens September 11th attack but the Republican of what I would prefer, it does make some im- again. I strongly support efforts to do so. leadership did nothing to assist the rank-and- provements in current law. Further, passage of However, Mr. Speaker, the bill we are voting file workers who were laid off. In November the bill will set the stage for the Senate to on today does nothing to keep another 2001, the Republican leadership bailed out the make further improvements—including correc- ‘‘Enron’’ debacle from occurring today, or next insurance industry at $30 plus million, but did tion or deletion of the investment-advice provi- month, or in years to come. The basic reforms nothing for the rank-and-file workers. In Feb- sion. I am voting for the bill today so that can that are needed are simply not there. True, ruary 2002, the Republican leadership secured take place, as I expect it will. this bill takes marginal actions, but these big business with several tax breaks, but Mr. POMEROY. Mr. Speaker, I rise in oppo- merely address the symptoms and not the again, no real assistance for the rank-and-file sition to the Miller substitute and in support of core of the problems. worker. the underlying bill. Earlier in this debate, I indi- This bill would allow a dangerous situation Mr. Speaker, this pattern begs the question, cated my support for the Miller amendment. In to develop by allowing the investment firm that ‘‘who are we here to represent?’’ According to many respects, it does improve on the under- manages a company’s pension plan to advise the actions of the leadership, it would seem lying bill. After further reviewing the substitute, the employees on investment decisions that that we are to represent big business only. however, I have found legal liability provisions they should make. This is a fundamental con- What about the rank-and-file workers who that I believe will seriously discourage employ- flict of interest and the classic example of the make up more than half of our country? Do ers from offering retirement plans, to detriment fox guarding the hen house. they not deserve protection and security by of workers. Setting aside the Enron fiasco, employer- The so-called Pension Protection Act also the United States of America? Today, we are attempting to pass a bill that sponsored retirement plans are a great suc- denies employees a voice on their own Pen- purports to protect workers from future Enron cess story of the American workplace. Such sion Board. It is clear in the Enron scandal debacles. Thousands of workers at Enron plans help employees accrue the assets they that the Enron Pension Trustees failed to take were left distraught and with little to no retire- will need to live comfortably in retirement. Un- any actions at all to protect the savings of ment savings. Executives, who knew of the fortunately, only half of American workers Enron employees. I believe it is critical that the have access to employer-sponsored plans. Pension Board include some rank and file em- situation, secured their assets. These employ- Therefore, as we seek to address the prob- ployees who have the interests of other em- ees lost well over $1 billion of their retirement lems revealed by the collapse of Enron, we ployees at heart. savings because corporate management kept must both increase worker protection and en- Also, Mr. Speaker, the bill we are consid- their employees in the dark about the actual courage employers to expand pension cov- ering today leaves employees locked into net worth of Enron and the safety of the erage. We should protect workers by allowing company stock for long periods of time, 401(k) plans. them to diversify their retirement portfolio rath- whether it is in their best interest to be there The leadership claims to fix that situation er than keeping them locked into company or not. And, just like the case in the Enron sit- with H.R. 3762. This bill proposes a 30-day stock. We should provide workers with ade- uation, this bill does nothing to let employees notice prior to ‘‘blackout’’ periods for rank-and- quate notification of impending black-out peri- know when executives are ‘‘dumping’’ com- file employees. This, supposedly, will allow ods so that they may make changes in their pany stock. employees to alter their 401(k) plans before portfolios before the temporary freeze occurs. But, I say to the employees of America, the blackout. Executives, however, will have Both the substitute and the underlying bill in- there is an alternative to this misguided legis- the option to adjust their 401(k) plans at any- clude these worker protections. lation. Mr. RANGEL and Mr. MILLER are offering time, even during the blackout. The bill also We should encourage the expansion of pen- a substitute that addresses all these concerns permits executives to move thousands of dol- sion coverage by providing the type of ration- and will take significant steps to ensure that lars from their stock plans without rank-and-file al, regulatory relief that is found in the under- your pension plans are safe and viable for employees being notified of the drastic lying bill. What we should not do is increase your days of retirement. change. Additionally, executives would be the employers’ exposure to litigation arising from The substitute require that retirement plan only individuals on the Pension Board delib- their retirement plan. Regrettably, the sub- participants be notified within three days when erating the pension plans for the entire com- stitute does so in significant fashion. Rather any significant sales of company stock by pany. Amendments to include workers on the than limiting liability to the fiduciary, who exer- company executives occurs. Hopefully, the Board have been struck down. cises control over the assets in the plan, the employees will then be able to make their own This bill supports what occurred at Enron. substitute expands liability to other parties who judgments as to the necessity to sell their own We need a bill that works for the rank-and-file, have no such control or responsibility. In addi- stock. not just for the corporate executive. We need tion, it greatly expands damage awards be- The substitute also will no longer allow com- extensive disclosure of pension information for yond simple losses to the plan. This increase pany executives to dump their stock while the the rank-and-file. We need independent, unbi- in legal exposure would at least retard the employees are in a blackout period. In my ased and accurate financial advice. We need growth of employer-sponsored plans and mind, this was one of the most horrific exam- rank-and-file representation on the Pension could even result in the contraction of retire- ples of executive greed in the entire Enron Boards so their voices will be heard. We need ment plans. scandal, and we must do whatever is nec- a level playing field during blackouts. If rank- For these reasons, I must oppose the Miller essary to ensure that this never occurs again. and-file employees cannot touch their 401(k) substitute. The substitute also provides for independent plans, executives should be prohibited too. All Mr. PASTOR. Mr. Speaker, I rise today in financial advice for employees when company of these suggestions are addressed in the opposition to the Pension Protection Act as it stock is offered as an investment option. And, Democratic substitute but not in the bill. is being presented to the House of Represent- it gives employees a voice on their Pension Mr. Speaker, it is due time that the leader- atives and in favor of the alternative plan Board. ship acknowledge the pension rights of work- being offered by Congressman RANGEL and Mr. Speaker, I hear over and over again in ers and seek to secure them. For that reason, Congressman MILLER. this House the desire to allow individuals to I will vote ‘‘no’’ on H.R. 3762. This is another H1264 CONGRESSIONAL RECORD — HOUSE April 11, 2002 attempt to protect the wealthy, with little con- Watson (CA) Weiner Wu The result of the vote was announced Watt (NC) Wexler Wynn cern for the worker. We can do much better, Waxman Woolsey as above recorded. Mr. Speaker, and I await that day. Stated for: The SPEAKER pro tempore. Pursu- NAYS—232 Ms. MILLENDER-MCDONALD. Mr. ant to House Resolution 386, the pre- Aderholt Graham Peterson (MN) Speaker, I mistakenly voted ‘‘no’’ on Akin Granger Peterson (PA) rollcall 90, the Miller substitute. My vious question is ordered on the bill, as Armey Graves Petri amended, and on the amendment by Bachus Green (WI) Pickering intention was to vote ‘‘yes.’’ the gentleman from California (Mr. Baker Greenwood Platts The SPEAKER pro tempore (Mr. DAN GEORGE MILLER). Ballenger Grucci Pombo MILLER of Florida). The question is on Barcia Gutknecht Pomeroy The question is on the amendment in Barr Hall (TX) Portman engrossment and third reading of the the nature of a substitute offered by Bartlett Hansen Putnam bill. the gentleman from California (Mr. Barton Hart Quinn The bill was ordered to be engrossed Bass Hastings (WA) Radanovich and read a third time, and was read the GEORGE MILLER). Bereuter Hayes Ramstad The question was taken; and the Biggert Hayworth Regula third time. Speaker pro tempore announced that Bilirakis Hefley Rehberg MOTION TO RECOMMIT OFFERED BY MR. GEORGE Blunt Herger Reynolds MILLER OF CALIFORNIA the noes appeared to have it. Boehlert Hill Riley Mr. ANDREWS. Mr. Speaker, I object Boehner Hilleary Rogers (KY) Mr. GEORGE MILLER of California. to the vote on the ground that a Bonilla Hobson Rogers (MI) Mr. Speaker, I offer a motion to recom- quorum is not present and make the Bono Hoekstra Rohrabacher mit. Boozman Horn Ros-Lehtinen The SPEAKER pro tempore. Is the point of order that a quorum is not Boyd Hostettler Ross present. Brady (TX) Houghton Royce gentleman opposed to the bill? The SPEAKER pro tempore. Evi- Brown (SC) Hulshof Ryun (KS) Mr. GEORGE MILLER of California. Bryant Hunter Saxton dently a quorum is not present. Mr. Speaker, yes, I am. Burr Hyde Schaffer The SPEAKER pro tempore. The The Sergeant at Arms will notify ab- Calvert Isakson Schrock sent Members. Camp Issa Sensenbrenner Clerk will report the motion to recom- Cannon Istook Shadegg mit. The vote was taken by electronic de- Cantor Jenkins Shaw The Clerk read as follows: vice, and there were—yeas 187, nays Capito John Shays 232, not voting 15, as follows: Cardin Johnson (CT) Sherwood Mr. GEORGE MILLER of California moves to Carson (OK) Johnson (IL) Shimkus recommit the bill H.R. 3762 to the Com- [Roll No. 90] Castle Johnson, Sam Shuster mittee on Education and the Workforce with YEAS—187 Chabot Keller Simmons instructions to report the same back to the Chambliss Kelly Simpson Abercrombie Green (TX) Miller, George House promptly with the following amend- Coble Kennedy (MN) Skeen Ackerman Gutierrez Mink ment: Collins Kerns Smith (MI) Andrews Hall (OH) Mollohan Combest King (NY) Smith (NJ) Add at the end thereof the following new Baca Harman Moran (VA) Cox Kingston Smith (TX) section: Baird Hastings (FL) Morella Cramer Kirk Smith (WA) Baldacci Hilliard Murtha SEC. 501. TREATMENT OF CERTAIN FUNDED DE- Crane Knollenberg Snyder Baldwin Hinchey Nadler FERRED COMPENSATION PLANS FOR Crenshaw Kolbe Souder Barrett Hinojosa Napolitano CORPORATE INSIDERS AS PENSION Cubin LaHood Stearns Becerra Hoeffel Neal PLANS COVERED UNDER ERISA. Culberson Latham Stenholm Bentsen Holden Oberstar (a) INCLUSION IN DEFINITION OF PENSION Cunningham LaTourette Stump Berkley Holt Obey LAN Davis (FL) Leach Sullivan P .—Section 3(2) of the Employee Retire- Berman Honda Olver Davis, Jo Ann Lewis (CA) Sununu ment Income Security Act of 1974 (29 U.S.C. Berry Hooley Ortiz Davis, Tom Lewis (KY) Sweeney 1002(2)) is amended by adding at the end the Bishop Hoyer Owens Deal Linder Tancredo following new subparagraph: Blagojevich Inslee Pallone DeLay LoBiondo Tanner ‘‘(C)(i) The terms ‘employee pension ben- Blumenauer Israel Pascrell DeMint Lucas (KY) Tauzin Bonior Jackson (IL) Pastor efit plan’ and ‘pension plan’ shall also in- Dooley Lucas (OK) Taylor (NC) Borski Jackson-Lee Payne clude any arrangement providing for the de- Doolittle Manzullo Terry Boswell (TX) Pelosi ferral of compensation of a corporate insider Dreier Matheson Thomas Boucher Jefferson Phelps Duncan McCrery Thornberry of a corporation that is not otherwise a pen- Brady (PA) Johnson, E. B. Price (NC) Dunn McHugh Thune sion plan within the meaning of subpara- Brown (FL) Jones (OH) Rahall Ehlers McInnis Tiahrt graph (A), unless— Brown (OH) Kanjorski Rangel Ehrlich McKeon Tiberi ‘‘(I) all amounts of compensation deferred Capps Kaptur Reyes Emerson Mica Toomey Capuano Kennedy (RI) Rivers under the arrangement, English Millender- Turner Carson (IN) Kildee Rodriguez ‘‘(II) all property and rights purchased Everett McDonald Upton Clay Kilpatrick Roemer with such amounts, and Ferguson Miller, Dan Vitter Clayton Kind (WI) Rothman Flake Miller, Gary Walden ‘‘(III) all income attributable to such Clement Kleczka Roybal-Allard Fletcher Miller, Jeff Walsh amounts, property, or rights, Clyburn Kucinich Rush Foley Moore Wamp remain (until made available to the cor- Condit LaFalce Sabo Forbes Moran (KS) Watkins (OK) porate insider or other beneficiary under the Conyers Lampson Sanchez Fossella Myrick Watts (OK) Costello Langevin Sanders arrangement) solely the property and rights Frelinghuysen Nethercutt Weldon (FL) Coyne Lantos Sandlin of the employer (without being restricted to Gallegly Ney Weldon (PA) Crowley Larsen (WA) Sawyer the provision of benefits under the arrange- Ganske Northup Weller Cummings Larson (CT) Schakowsky Gekas Norwood Whitfield ment), subject only to the claims of the em- Davis (CA) Lee Schiff Gibbons Nussle Wicker ployer’s general creditors. Davis (IL) Levin Scott Gilchrest Osborne Wilson (NM) ‘‘(ii) For purposes of clause (i), the term DeFazio Lewis (GA) Serrano Gillmor Ose Wilson (SC) ‘corporate insider’ means, in connection with DeGette Lipinski Sherman Gilman Otter Wolf Delahunt Lofgren Shows a corporation, any individual who is subject Goode Oxley Young (AK) DeLauro Lowey Skelton to the requirements of section 16(a) of the Goodlatte Paul Young (FL) Deutsch Luther Securities Exchange Act of 1934 with respect Slaughter Goss Pence Dicks Lynch Solis to such corporation. Dingell Maloney (CT) Spratt NOT VOTING—15 ‘‘(iii) In the case of any arrangement that Doggett Maloney (NY) Stark Allen Diaz-Balart Pryce (OH) is a pension plan under clause (i)— Doyle Markey Strickland Burton Ford Roukema ‘‘(I) the corporation shall be treated as an Edwards Mascara Stupak Buyer Jones (NC) Ryan (WI) Engel Matsui Tauscher employer (within the meaning of paragraph Callahan Meehan Sessions Eshoo McCarthy (MO) Taylor (MS) (5)) of the corporate insider, Cooksey Pitts Traficant Etheridge McCarthy (NY) Thompson (CA) ‘‘(II) the corporate insider shall be treated Evans McCollum Thompson (MS) as an employee (within the meaning of para- Farr McDermott Thurman b 1548 graph (6)) of the corporation, and Fattah McGovern Tierney Messrs. SKEEN, SMITH of Texas, ‘‘(III) the arrangement shall not be treated Filner McIntyre Towns as an unfunded arrangement.’’. Frank McKinney Udall (CO) EHLERS, HYDE, and TIBERI changed (b) COMPLIANCE WITH CERTAIN PARTICIPA- Frost McNulty Udall (NM) their vote from ‘‘yea’’ to ‘‘nay.’’ Gephardt Meek (FL) Velazquez TION STANDARDS.—Section 202 of such Act (29 Gonzalez Meeks (NY) Visclosky So the amendment in the nature of a U.S.C. 1052) is amended by adding at the end Gordon Menendez Waters substitute was rejected. the following new subsection: April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1265 ‘‘(c) An arrangement that is a pension plan fered this in the Committee on Ways But more importantly, what the gen- under section 3(2)(C)(i) shall comply with the and Means. tleman from California (Mr. GEORGE requirements of section 410 of the Internal Mr. MATSUI. Mr. Speaker, I have to MILLER) is suggesting is that we try to Revenue Code of 1986 necessary for a trust say what happened with the Enron sit- change IRS code and bankruptcy code forming a part of such plan to constitute a qualified trust under section 401(a) of such uation was not unique because this is through ERISA, trying to get at the Code.’’. going to happen more and more. Essen- top end of employees who have deferred Mr. GEORGE MILLER of California tially what has happened is CEOs and compensation plans. (during the reading). Mr. Speaker, I top management people in many cor- All of us know that deferred com- ask unanimous consent that the mo- porations have set up a plan that basi- pensation plans are not tax-qualified tion to recommit be considered as read cally violates the principles of our pen- pension plans. They are payment plans sion laws. and printed in the RECORD. for high-level executives. I could not The SPEAKER pro tempore. Is there Ken Lay, for example, was able to get agree more with the gentleman from objection to the request of the gen- deferred compensation, that is, he did California (Mr. MATSUI) that what Ken tleman from California? not have to pay any taxes on his retire- Lay and other executives at Enron did There was no objection. ment program. Yet when Enron filed was absolutely wrong. But to try to The SPEAKER pro tempore. Pursu- bankruptcy, he was able to collect change bankruptcy protections ant to the rule, the gentleman from about $2 million from that plan, where- through ERISA is not going to change California (Mr. GEORGE MILLER) is rec- as every other Enron employee lost the employees who we are attempting ognized for 5 minutes in support of his valuable assets in their 401(k) plan. to help in the underlying bill. motion to recommit. This would merely tighten that up and Mr. Speaker, I would ask my col- Mr. GEORGE MILLER of California. make it consistent where Members of leagues, considering the time, that we Mr. Speaker, one of the things we learn both the House and the Senate, and do not want to send this bill off to ob- from the Enron tragedy and one of the certainly Democrats and Republicans livion. We want to move this process things that we have learned from Glob- would not want anyone to be able to on. This is not a very good idea and al Crossing and so many other compa- defer taxes, and at the same time be will not help the employees that we are nies that have started to fail or turned able to get a fully funded program that attempting to help. I urge my col- on bad times is that the corporate is protected from bankruptcy. leagues to vote ‘‘no.’’ elite, the CEO and others, have 401(k) Mr. Speaker, this has to be tightened The SPEAKER pro tempore. Without plans that are absolutely protected. up. This is closing a loophole. This is objection, the previous question is or- Their ability to collect on their pen- something that we cannot allow to dered on the motion to recommit. sion plans has nothing to do with the happen as we see more and more of There was no objection. financial health of the company, how these Enron scandals occur. The SPEAKER pro tempore. The well the company does or how poorly Mr. GEORGE MILLER of California. question is on the motion to recommit. the company does. Yet we see the em- Mr. Speaker, all of us in the Com- The question was taken; and the ployees with their 401(k) plans; they mittee on Financial Services, the Com- Speaker pro tempore announced that are absolutely tied to how the company mittee on Energy and Commerce, and the noes appeared to have it. does. And in many instances, they are the Committee on Education and the RECORDED VOTE locked into the stock of the company. Workforce have listened to these work- Mr. GEORGE MILLER of California. What we are seeing here is what the ers who have had their retirement Mr. Speaker, I demand a recorded vote. President said when he went to North plans destroyed, workers who are 55, 59, A recorded vote was ordered. Carolina, if it is good for the captain, it 62 years old; their plans are destroyed, The SPEAKER pro tempore. Pursu- is good for the crew. We cannot have and they are now dependent on their ant to clause 9 of rule XX, the Chair the executives ensuring their pension children. The life they thought they will reduce to 5 minutes the period of plans so that they walk off with mil- were going to lead, they are not going time within which a vote by electronic lions and tens of millions of dollars, to be able to. device will be taken on the question of Yet Ken Lay, who looted this com- lifetime pensions, and the employees the passage of the bill. pany and destroyed these people’s re- have got to go to bankruptcy court and The vote was taken by electronic de- tirement nest egg walks off stage with hope that there is something left over vice, and there were—ayes 204, noes 212, $475,000 a year in guaranteed income for them. If we insure one, we insure not voting 19, as follows: others. If preference is given to one, and a multimillion dollar house in [Roll No. 91] preference is given to the other. Texas that is protected under bank- Mr. Speaker, it is a very important ruptcy law. AYES—204 principle. The theory of executive com- Somehow there has to be parity and Abercrombie Clyburn Gordon fairness. This is our chance to repair Ackerman Condit Green (TX) pensation is that we are rewarding an Andrews Conyers Gutierrez executive, one, for how well their com- what is lacking in the Republican bill Baca Costello Hall (OH) pany does. Yet we see time and again and provide fairness and protection for Baird Coyne Harman executive compensation has nothing to the employee, the same as the CEO and Baldacci Cramer Hastings (FL) Baldwin Crowley Hill do with the performance of the com- the chief operating officers of this cor- Barcia Cummings Hilliard pany. Their pension plans are guaran- poration get, to make sure that em- Barrett Davis (CA) Hinchey teed; and yet the employee must be ployees are not left holding the bag. Becerra Davis (FL) Hinojosa Mr. Speaker, I would urge an ‘‘aye’’ Bentsen Davis (IL) Hoeffel more productive, must do all that they Berkley DeFazio Holden can to make that company perform so vote on the motion to recommit. Berman DeGette Holt that their stock is worth what it Mr. BOEHNER. Mr. Speaker, I rise in Berry Delahunt Honda should be in their retirement plans. opposition to the motion to recommit. Bishop DeLauro Hooley The SPEAKER pro tempore. The gen- Blagojevich Deutsch Inslee We think that they ought to be treat- Blumenauer Dicks Israel ed alike, and this is an opportunity to tleman from Ohio (Mr. BOEHNER) is rec- Bonior Dingell Jackson (IL) vote to make sure that there is parity ognized for 5 minutes in opposition to Borski Doggett Jackson-Lee among the elite executives of a cor- the motion to recommit. Boswell Dooley (TX) Boucher Doyle Jefferson poration with respect to pension plans, Mr. BOEHNER. Mr. Speaker, this is a Boyd Edwards John and among the employees, that they rather unusual motion to recommit. It Brady (PA) Engel Johnson, E. B. not get left out. does not change the bill and allow it to Brown (FL) Eshoo Jones (OH) move on; it actually would send the Brown (OH) Etheridge Kanjorski It is terribly important that as the Capps Evans Kaptur executives walk off stage with tens of bill back to the committee. After all of Capuano Farr Kennedy (RI) millions of dollars, that the employees the work that we have done in two Cardin Fattah Kildee not be left holding the bag; and that is committees, and all of the work we Carson (IN) Filner Kilpatrick Carson (OK) Frank Kind (WI) the purpose of this amendment. have done here, the last think we want Clay Frost Kleczka Mr. Speaker, I yield to the gentleman to do is send this bill off to a black Clayton Gephardt Kucinich from California (Mr. MATSUI), who of- hole. Clement Gonzalez LaFalce H1266 CONGRESSIONAL RECORD — HOUSE April 11, 2002 Lampson Murtha Serrano Stump Thune Weldon (FL) John Northup Skeen Langevin Nadler Sherman Sullivan Tiberi Weldon (PA) Johnson (CT) Norwood Skelton Lantos Napolitano Shows Sununu Toomey Weller Johnson (IL) Nussle Smith (MI) Larsen (WA) Neal Skelton Sweeney Upton Whitfield Johnson, Sam Osborne Smith (NJ) Larson (CT) Oberstar Slaughter Tancredo Vitter Wicker Keller Ose Smith (TX) Lee Obey Smith (WA) Tauzin Walden Wilson (NM) Kelly Otter Smith (WA) Levin Olver Snyder Taylor (NC) Walsh Wilson (SC) Kennedy (MN) Oxley Snyder Lewis (GA) Ortiz Solis Terry Wamp Wolf Kerns Pence Souder Lipinski Owens Spratt Thomas Watkins (OK) Young (AK) Kind (WI) Peterson (MN) Stearns Lofgren Pallone Stark Thornberry Watts (OK) King (NY) Peterson (PA) Stenholm Lowey Pascrell Stenholm Kingston Petri Stump Luther Pastor Strickland NOT VOTING—19 Kirk Phelps Sullivan Lynch Payne Stupak Allen Hoyer Ryan (WI) Knollenberg Pickering Sununu Maloney (CT) Pelosi Tanner Burton Meehan Sessions Kolbe Pitts Sweeney Maloney (NY) Peterson (MN) Tauscher Buyer Meek (FL) Tiahrt LaHood Platts Tancredo Markey Phelps Taylor (MS) Callahan Pryce (OH) Traficant Larsen (WA) Pombo Tanner Mascara Pomeroy Thompson (CA) Cooksey Radanovich Young (FL) Latham Pomeroy Tauzin Matheson Price (NC) Thompson (MS) Diaz-Balart Riley LaTourette Portman Taylor (MS) Matsui Rahall Thurman Ford Roukema Leach Price (NC) Taylor (NC) McCarthy (MO) Rangel Tierney Lewis (CA) Putnam Terry McCarthy (NY) Reyes Towns Lewis (KY) Quinn Thomas McCollum Rivers Turner b 1616 Linder Radanovich Thornberry McDermott Rodriguez Udall (CO) Lipinski Ramstad Thune McGovern Roemer Udall (NM) Mr. LUCAS of Kentucky changed his LoBiondo Regula Tiahrt McIntyre Ross Velazquez vote from ‘‘aye’’ to ‘‘no.’’ Lucas (KY) Rehberg Tiberi McKinney Rothman Visclosky Ms. JACKSON-LEE of Texas changed Lucas (OK) Reynolds Toomey McNulty Roybal-Allard Waters her vote from ‘‘no’’ to ‘‘aye.’’ Luther Rogers (KY) Turner Meeks (NY) Rush Watson (CA) Maloney (CT) Rogers (MI) Udall (CO) Menendez Sabo Watt (NC) So the motion to recommit was re- Manzullo Rohrabacher Upton Millender- Sanchez Waxman jected. Matheson Ros-Lehtinen Vitter McDonald Sanders Weiner The result of the vote was announced McCarthy (NY) Ross Walden Miller, George Sandlin Wexler McCrery Royce Walsh Mink Sawyer Woolsey as above recorded. McHugh Ryun (KS) Wamp Mollohan Schakowsky Wu Stated against: McInnis Saxton Watkins (OK) Moore Schiff Wynn Mr. TIAHRT. Mr. Speaker on rollcall No. 91, McIntyre Schaffer Watts (OK) Moran (VA) Scott McKeon Schrock Weldon (FL) I was unavoidably detained. Had I been Mica Sensenbrenner Weldon (PA) NOES—212 present, I would have voted ‘‘no.’’ Miller, Dan Shadegg Weller The SPEAKER pro tempore (Mr. DAN Miller, Gary Shaw Whitfield Aderholt Gallegly Lucas (OK) MILLER of Florida). The question is on Miller, Jeff Shays Wicker Akin Ganske Manzullo Moran (KS) Sherwood Wilson (NM) Armey Gekas McCrery the passage of the bill. Moran (VA) Shimkus Wilson (SC) Bachus Gibbons McHugh The question was taken; and the Morella Shows Wolf Baker Gilchrest McInnis Speaker pro tempore announced that Myrick Shuster Wu Ballenger Gillmor McKeon Nethercutt Simmons Young (AK) Barr Gilman Mica the ayes appeared to have it. Ney Simpson Young (FL) Bartlett Goode Miller, Dan RECORDED VOTE Barton Goodlatte Miller, Gary NOES—163 Bass Goss Mr. GEORGE MILLER of California. Miller, Jeff Abercrombie Frost Menendez Bereuter Graham Moran (KS) Mr. Speaker, I demand a recorded vote. Ackerman Gephardt Millender- Biggert Granger Morella A recorded vote was ordered. Andrews Gonzalez McDonald Bilirakis Graves Myrick Baca Green (TX) Miller, George Blunt Green (WI) The SPEAKER pro tempore. This Nethercutt Baird Gutierrez Mink Boehlert Greenwood will be a 5-minute vote. Ney Baldacci Gutknecht Mollohan Boehner Grucci Northup The vote was taken by electronic de- Baldwin Hastings (FL) Moore Bonilla Gutknecht Norwood vice, and there were—ayes 255, noes 163, Barrett Hilliard Murtha Bono Hall (TX) Nussle Becerra Hinchey Nadler Boozman Hansen not voting 17, as follows: Osborne Berkley Hoeffel Napolitano Brady (TX) Hart Ose [Roll No. 92] Berman Holt Neal Brown (SC) Hastert Otter Blagojevich Honda Oberstar Bryant Hastings (WA) AYES—255 Oxley Blumenauer Hoyer Obey Burr Hayes Aderholt Coble Gillmor Paul Bonior Inslee Olver Calvert Hayworth Akin Collins Gilman Pence Borski Israel Ortiz Camp Hefley Armey Combest Goode Peterson (PA) Boswell Jackson (IL) Owens Cannon Herger Bachus Condit Goodlatte Petri Brady (PA) Jackson-Lee Pallone Cantor Hilleary Baker Cox Gordon Pickering Brown (FL) (TX) Pascrell Capito Hobson Ballenger Cramer Goss Pitts Brown (OH) Jefferson Pastor Castle Hoekstra Barcia Crane Graham Platts Capps Johnson, E. B. Payne Chabot Horn Barr Crenshaw Granger Pombo Capuano Jones (NC) Pelosi Chambliss Hostettler Bartlett Crowley Graves Portman Cardin Jones (OH) Rahall Coble Houghton Barton Cubin Green (WI) Putnam Carson (IN) Kanjorski Rangel Collins Hulshof Bass Culberson Greenwood Quinn Clay Kaptur Reyes Combest Hunter Bentsen Cunningham Grucci Ramstad Clayton Kennedy (RI) Rivers Cox Hyde Bereuter Davis, Jo Ann Hall (OH) Regula Clyburn Kildee Rodriguez Crane Isakson Berry Davis, Tom Hall (TX) Rehberg Conyers Kilpatrick Roemer Crenshaw Issa Biggert Deal Hansen Reynolds Costello Kleczka Rothman Cubin Istook Bilirakis DeLay Harman Rogers (KY) Coyne Kucinich Roybal-Allard Culberson Jenkins Bishop DeMint Hart Rogers (MI) Cummings LaFalce Rush Cunningham Johnson (CT) Blunt Dooley Hastert Rohrabacher Davis (CA) Lampson Sabo Davis, Jo Ann Johnson (IL) Boehlert Doolittle Hastings (WA) Ros-Lehtinen Davis (FL) Langevin Sanchez Davis, Tom Johnson, Sam Boehner Dreier Hayes Royce Davis (IL) Lantos Sanders Deal Jones (NC) Bonilla Duncan Hayworth Ryun (KS) DeFazio Larson (CT) Sandlin DeLay Keller Bono Dunn Hefley Saxton DeGette Lee Sawyer DeMint Kelly Boozman Ehlers Herger Schaffer Delahunt Levin Schakowsky Doolittle Kennedy (MN) Boucher Ehrlich Hill Schrock DeLauro Lewis (GA) Schiff Dreier Kerns Boyd Emerson Hilleary Sensenbrenner Deutsch Lofgren Scott Duncan King (NY) Brady (TX) English Hinojosa Shadegg Dicks Lowey Serrano Dunn Kingston Brown (SC) Everett Hobson Shaw Dingell Lynch Sherman Ehlers Kirk Bryant Ferguson Hoekstra Shays Doggett Maloney (NY) Slaughter Ehrlich Knollenberg Burr Flake Holden Sherwood Doyle Markey Solis Emerson Kolbe Calvert Fletcher Hooley Shimkus Edwards Mascara Spratt English LaHood Camp Foley Hostettler Shuster Engel Matsui Stark Everett Latham Cannon Forbes Houghton Simmons Eshoo McCarthy (MO) Strickland Ferguson LaTourette Cantor Fossella Hulshof Simpson Etheridge McCollum Stupak Flake Leach Capito Frelinghuysen Hunter Skeen Evans McDermott Tauscher Fletcher Lewis (CA) Carson (OK) Gallegly Hyde Smith (MI) Farr McGovern Thompson (CA) Foley Lewis (KY) Castle Ganske Isakson Smith (NJ) Fattah McKinney Thompson (MS) Forbes Linder Chabot Gekas Issa Smith (TX) Filner McNulty Thurman Fossella LoBiondo Chambliss Gibbons Istook Souder Frank Meeks (NY) Tierney Frelinghuysen Lucas (KY) Stearns Clement Gilchrest Jenkins April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1267 Towns Waters Weiner Mr. PORTMAN. It is my under- mittee on House Administration be dis- Udall (NM) Watson (CA) Wexler Velazquez Watt (NC) Woolsey standing that the Committee on Finan- charged from further consideration of Visclosky Waxman Wynn cial Services marked that legislation the resolution (H. Res. 378) permitting up today. It is being looked at now. It official photographs of the House of NOT VOTING—17 is unlikely to come up next week. More Representatives to be taken while the Allen Ford Riley Burton Horn Roukema likely it would come up in later weeks. House is in actual session, and ask for Buyer Meehan Ryan (WI) But we are still looking at the legisla- its immediate consideration in the Callahan Meek (FL) Sessions tion. House. Cooksey Paul Traficant Ms. PELOSI. Is there any other legis- The Clerk read the title of the resolu- Diaz-Balart Pryce (OH) lation that is expected to come to the tion. b 1625 floor, apart from the two bills that the The SPEAKER pro tempore. Is there Mr. STRICKLAND changed his vote gentleman mentioned? objection to the request of the gen- from ‘‘aye’’ to ‘‘no.’’ Mr. PORTMAN. There is no other tleman from California? Mr. LUTHER changed his vote from legislation, other than the suspensions There was no objection. ‘‘no’’ to ‘‘aye.’’ on Tuesday, that is anticipated at this The Clerk read the resolution, as fol- So the bill was passed. time. lows: The result of the vote was announced Ms. PELOSI. Mr. Speaker, I thank H. RES. 378 as above recorded. the gentleman for the information. Resolved, That at a time designated by the A motion to reconsider was laid on f Speaker of the House of Representatives, of- the table. ficial photographs of the House may be ADJOURNMENT TO MONDAY, f taken while the House is in actual session. APRIL 15, 2002 Payment for the costs associated with tak- PERSONAL EXPLANATION Mr. PORTMAN. Mr. Speaker, I ask ing, preparing, and distributing such photo- Mr. BURTON of Indiana. Mr. Speaker, dur- graphs may be made from the applicable ac- unanimous consent that when the counts of the House of Representatives. ing rollcall votes Nos. 90, 91, and 92, I was House adjourns today, it adjourn to The resolution was agreed to. unavailable due to an illness in my family. Had meet at 2 p.m. on Monday next. A motion to reconsider was laid on I been here I would have voted ‘‘no’’ on rollcall The SPEAKER pro tempore. Is there the table. votes Nos. 90 and 91 and ‘‘yea’’ on rollcall objection to the request of the gen- vote No. 92. tleman from Ohio? f f There was no objection. CONGRATULATING UNIVERSITY OF LEGISLATIVE PROGRAM f MARYLAND FOR WINNING 2002 NCAA MEN’S BASKETBALL (Ms. PELOSI asked and was given HOUR OF MEETING ON TUESDAY, CHAMPIONSHIP permission to address the House for 1 APRIL 16, 2002 minute.) Mr. MCKEON. Mr. Speaker, I ask Mr. PORTMAN. Mr. Speaker, I ask Ms. PELOSI. Mr. Speaker, I take this unanimous consent that the Com- unanimous consent that when the time for the purpose of inquiring about mittee on Education and the Workforce House adjourns on Monday, April 15, the schedule for next week. be discharged from further consider- I am pleased to yield to the distin- 2002, it adjourn to meet at 12:30 p.m. on ation of the resolution (H. Res. 383) guished gentleman from Ohio (Mr. Tuesday, April 16, 2002, for morning congratulating the University of Mary- hour debates. PORTMAN). land for winning the 2002 National Col- Mr. PORTMAN. Mr. Speaker, I thank The SPEAKER pro tempore. Is there legiate Athletic Association men’s bas- the gentlewoman for yielding. objection to the request of the gen- ketball championship, and ask for its I am pleased to announce that the tleman from Ohio? immediate consideration in the House. House has now completed its legisla- There was no objection. The Clerk read the title of the resolu- tive business for the week. The House f tion. will next meet for legislative business DISPENSING WITH CALENDAR The SPEAKER pro tempore. Is there on Tuesday, April 16, at 12:30 p.m. for WEDNESDAY BUSINESS ON objection to the request of the gen- morning hour, and 2 o’clock p.m. for WEDNESDAY NEXT tleman from California? legislative business. The House will Mr. HOYER. Mr. Speaker, reserving consider a number of measures under Mr. PORTMAN. Mr. Speaker, I ask the right to object, of course I not only suspension of the rules, a list of which unanimous consent that the business will not object, but will enthusiasti- will be distributed to Members’ offices in order under the Calendar Wednesday cally support this resolution. tomorrow. On Tuesday, recorded votes rule be dispensed with on Wednesday But I rise, as everyone I am sure in will be postponed until 6:30 p.m. next. the Chamber can understand, with For Wednesday and Thursday, the The SPEAKER pro tempore. Is there great pride in 12 young men and Coach majority leader has scheduled H.R. 476, objection to the request of the gen- Gary Williams, who had an extraor- the Child Custody Protection Act. The tleman from Ohio? dinary season; who won the national majority leader is also working with There was no objection. championship for the first time in the the chairman of the Committee on f school’s history; who won the Atlantic Ways and Means to bring legislation to Coast Conference championship for the REMOVAL OF NAME OF MEMBER the floor next week to repeal the sun- first time in 22 years; who beat teams AS COSPONSOR OF H.R. 3598 sets on the Bush tax relief plan that who had won 15 national champion- was passed by Congress last year. Mr. WELDON of Pennsylvania. Mr. ships in Kentucky, in Indiana and in Ms. PELOSI. Mr. Speaker, reclaim- Speaker, I ask unanimous consent to Kansas; who overcame personal adver- ing my time, I thank the gentleman for have my name removed as a cosponsor sity as well as they played throughout the information. I would just like to of H.R. 3598. the season; who went 15 and 0 at home, inquire if the gentleman knows which The SPEAKER pro tempore. Is there one of the first times that any team day the tax bill will be scheduled? objection to the request of the gen- has done that in Maryland’s history, Mr. PORTMAN. If the gentlewoman tleman from Pennsylvania? and in doing so, crowned an extraor- will yield further, it looks as though There was no objection. dinary history for Cole Field House, the tax bill will be scheduled for Thurs- f which is now going to be closed, at day, and the child custody bill will least for the basketball team, who will likely be scheduled for Wednesday. PERMITTING OFFICIAL PHOTO- play in a new arena next year. Ms. PELOSI. Will the legislation on GRAPHS OF HOUSE WHILE IN All in all, it was an extraordinary pensions from the Committee on Fi- SESSION season for extraordinary young men nancial Services come to the floor next Mr. DOOLITTLE. Mr. Speaker, I ask and for an extraordinary coach. Gary week? unanimous consent that the Com- Williams has coached for 30 years now, H1268 CONGRESSIONAL RECORD — HOUSE April 11, 2002 24 years as a head coach. He has a win- Gary Williams, who led the team dur- Mr. Speaker, I yield to the gentleman ning record of great proportions and is ing this victorious season. Many good from Florida (Mr. FOLEY). clearly recognized as one of the great things have been said about him, and I Mr. FOLEY. Mr. Speaker, just brief- coaches of basketball in America. would like to recognize and associate ly, my chief of staff, Kirk Fordham, myself with those words. graduated from the University of b 1630 I would also like to thank our col- Maryland; and I watched with great ex- At this time, if I might, Mr. Speaker, league, the gentleman from Maryland citement as his alma mater racked up under my reservation, I yield to the (Mr. HOYER), for introducing this reso- those points and won kind of a come- distinguished gentleman from Mary- lution, and our colleague, the gen- from-behind team, a Cinderella team, if land (Mr. WYNN). I might say that the tleman from Maryland (Mr. you will. gentleman and I have the privilege of GILCHREST), for bringing this resolu- Florida has been lucky enough to representing Prince George’s County in tion to my attention. I would ask all of produce many champions: University which the University of Maryland at my colleagues for their support. of Miami, Florida State and, of course, College Park is located. Mr. HOYER. Mr. Speaker, reclaiming the University of Florida, and to watch Mr. WYNN. Mr. Speaker, I thank the my time, I thank the gentleman for his a team that displayed such class and gentleman from Maryland (Mr. HOYER), comments and for his leadership in fa- such enthusiasm and, even though all the distinguished leader of our delega- cilitating, as I said, this resolution of the pundits pretty much ruled them tion, for yielding me this time; and I coming to the floor. out at the very beginning, to watch thank the University of Maryland. I Mr. Speaker, I yield to the very dis- them emerge each time after a game would say that I certainly want to join tinguished gentleman from Baltimore up the ladder to the Final 4 and then, with him in this resolution com- City, Maryland (Mr. CUMMINGS). of course, to victory, I salute you. mending the University of Maryland Mr. CUMMINGS. Mr. Speaker, I I salute your team. I salute the par- Terrapins basketball team. There is a thank the gentleman for yielding, and ents, the coaches, all of those in the new motto in our State. It says, the I also thank the gentleman for the res- athletic department that support us. olution. It is certainly a pleasure to University of Maryland: whether they Because it does take a colossal effort congratulate the Maryland Terrapins played football in January and basket- to move the enthusiasm to the level on winning the NCAA tournament. As ball in April. We have indeed had a where you reach a national champion- a graduate of the University of Mary- very fine year, both in football and now ship. in basketball, and we are certainly land, it makes me feel real good. So I salute the gentleman from I think the thing that impressed me proud to honor our outstanding Terra- Maryland (Mr. HOYER) on his phe- so much about this team was not just pins basketball team and their out- nomenal team and his phenomenal standing coach, Gary Williams. what they did on the court, but it was their demeanor off the court. They State. My brother-in-law, in fact, was I would just like to offer a word of born in Havre de Grace, so I take a lit- congratulations to the also very fine were never bragging; they showed a lot of humility and a determination that I tle bit of pride to being at least a dis- University of Indiana team that put up have not seen from many teams. Just tant relative of Maryland and share a good fight in the championship game; talking to the people in my neighbor- with my colleagues their great victory. but as they say, the Terrapins pre- hood, many of them are admirers of the Mr. HOYER. Mr. Speaker, I thank vailed. Many fans say, fear the Ter- team; but, in particular, many of them the gentleman for his comments, and I rapin. I would say, love the Terrapin. knew Juan Dixon personally. I think it would only add that when FSU joined We have had a great season with the inspired a lot of them to be the best the Atlantic Coast Conference in foot- great support from our fans, the entire that they can be, even under adverse ball we all took it roughly, because university and the entire State pro- circumstances. So often when we look they are all so good; and as the gen- moting the Terrapins, and it has been a at a team, we look at the win and loss tleman knows, Maryland had one of its truly wonderful and outstanding expe- column. But that is not all that goes best years in football ever, finishing 10 rience. into it. Particularly with this Univer- and one in the regular season. And, of I would also note the outstanding sity of Maryland team, with Juan, course, because FSU lost to Tennessee, story of our star player, Juan Dixon, whose both parents died as a result of it came down to the Orange Bowl and who represents an outstanding example AIDS and drug use, and to emerge to taught us how to play football, a very of triumph over adversity. He has where he has gotten to today says a excellent team. Of course, we returned emerged as not only an outstanding whole lot, and has given a lot of hope the favor by taking Steve Spurrier up basketball player, but also an out- to a lot of people. So not only is it a to Washington, as the gentleman standing individual and role model for great team on the court, but a great knows. But I thank the gentleman for an individual who started off in less team off the court too. his comments. than ideal circumstances and, through To Gary Williams, I worry about him The resolution, in addition to con- force of will, perseverance and commit- quite a bit on the sidelines. I will tell gratulating the Terrapins, congratu- ment rose to heights of accomplish- my colleagues, I worry whether he is lates all 65 teams, as my colleagues ments. I again hail the University of going to have a heart attack over know, for their participation. Because Maryland Terrapins. there. But the fact is he puts his soul it is the quality of every program that Mr. HOYER. Mr. Speaker, I thank into this team, and we are certainly really makes March Madness such an the gentleman for his comments. very, very proud in the State of Mary- extraordinary athletic event, exciting Continuing under my reservation, I land to have such a great team; and the entire country and indeed, much of yield to the distinguished gentleman may God bless all of them, and may the world, that knows about basket- from California (Mr. MCKEON), and God bless the University of Maryland. ball, so that this resolution congratu- thank him for providing for such a Mr. HOYER. Mr. Speaker, I thank lates all who participated. rapid consideration of this resolution. the gentleman for his comments and Along that line, I mentioned the fact Mr. MCKEON. Mr. Speaker, I thank for his telling of the story of Juan of the three teams that were extraor- the gentleman for yielding. From the Dixon. Frankly, all of the young men dinarily able teams that we beat to get other side of the country I also, Mr. on that team have faced adversity at to the finals; but I did not mention Speaker, would like to rise in support one time or another. All of us have. As UCONN, the University of Connecticut of House Resolution 383. This resolu- a matter of fact, Coach Williams’ dad under Coach Calhoun, also an extraor- tion congratulates the University of died shortly before the final tour- dinary team. Maryland Terrapins for winning the nament, and they overcame that. They Mr. Speaker, frankly, if I took an- 2002 NCAA Basketball Championship. overcame it as a team, they overcame other half an hour or another hour, I As my colleagues know, the Terra- it as individuals, because as the gen- could not, by virtue of words, exceed pins finished the 2002 season with 32 tleman from Maryland (Mr. CUMMINGS) what the Maryland Terrapins have wins. This is quite an accomplishment said, they had a great deal of courage done by their actions; but there is and one that we should recognize. I and a great deal of a sense of purpose, somebody who would like to add some would also like to congratulate Coach and what a joy it is. words, I see. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1269 Mr. Speaker, it is my understanding Greeks, of course, and the Olympics sity’s intercollegiate athletic programs, in- we have more time on the clock, so I tried to reflect. So I thank the gentle- cluding, the men’s basketball team and the yield to the distinguished gentlewoman woman for focusing on that point. football team, which under the direction of Head Coach Ralph Friedgen compiled a 10–1 from Maryland (Mrs. MORELLA), of Mr. Speaker, I withdraw my reserva- tion of objection. regular season record and earned an invita- Montgomery County, which has a tion to the 2002 Orange Bowl: Now, therefore, The SPEAKER pro tempore (Mr. DAN major campus of the University of be it MILLER of Florida). Is there objection Maryland in her district, and she is Resolved, That the House of right beside the University of Mary- to the request of the gentleman from California? Representatives— land at College Park. (1) congratulates— Mrs. MORELLA. Mr. Speaker, I ap- There was no objection. (A) the University of Maryland Terrapins The Clerk read the resolution, as fol- preciate the gentleman bringing up for winning the 2002 National Collegiate Ath- lows: this resolution, which has a lot of sym- letic Association Basketball Championship bolism attached to it. H. RES. 383 on April 1, 2002; First of all, or course, coming in at Whereas on April 1, 2002, the University of (B) all of the 65 outstanding teams who the last minute, one can never tell Maryland Terrapins won the National Colle- participated in the 2002 tournament; and giate Athletic Association men’s basketball (C) the National Collegiate Athletic Asso- with the University of Maryland. They championship; ciation for its continuing excellence in pro- are going to do it, whether people ex- Whereas the Maryland Terrapins compiled viding a supportive arena for the Nation’s pect they will or not. I am very proud a school record for wins during the 2002 sea- college athletes to display their talents and of the University of Maryland and what son with 32, their 4th straight season with 25 sportsmanship; they have been doing in so many areas, wins or more; (2) commends the Maryland Terrapins for and this is one of those examples. Whereas the Maryland Terrapins went their outstanding performance during the I rise to congratulate the University undefeated at home in the last year of play entire 2002 season and for their commitment of Maryland Terrapins for winning the at historic Cole Field House by achieving a to high standards of character, perseverance, 2002 NCAA men’s basketball champion- record of 15–0; and teamwork; Whereas the Maryland Terrapins won their (3) recognizes the achievements of the ship. As we all knew, the key to the 1st outright Atlantic Coast Conference reg- players, coaches, and support staff who were Terps’ winning team was teamwork. ular season championship in over 22 years; instrumental in helping the Maryland Terra- The camaraderie among the players, Whereas Maryland Terrapins qualified for pins win the 2002 championship; and the leadership of its seniors, and the their 9th consecutive NCAA tournament (4) directs the the Clerk of the House of guidance of Coach Gary Williams led to under Coach Gary Williams and obtained a Representatives to transmit an enrolled copy their success. number 1 seed in the East Region this year, of this resolution to— Incidentally, Gary Williams came and advanced to their 2nd consecutive Final (A) Dr. C.D. ‘‘Dan’’ Mote, the President of from the American University to the Four; the University of Maryland; Whereas in the NCAA championship game (B) Deborah Yow, the Athletic Director at University of Maryland. the Maryland Terrapins faced the Indiana the University of Maryland; and Knowing that 2001–2002 marked the University Hoosiers and came away vic- (C) Gary Williams, the head coach of the last season in Cole Field House, the torious by a score of 64–52; University of Maryland Terrapins men’s bas- Terps triumphed and won every game Whereas the Maryland Terrapins had to ketball team. at home, beating all the ACC teams beat perennial basketball powerhouses Ken- The resolution was agreed to. that walked on their court. I am par- tucky, Connecticut, and Kansas before earn- A motion to reconsider was laid on ing the right to play in the championship ticularly proud of the Montgomery the table. County native, Lonnie Baxter, who game; hails from Silver Spring, Maryland. Whereas the NCAA men’s basketball cham- pionship was the 1st in Maryland’s school f Lonnie was named the Most Valuable history; Player in NCAA regional play 2 years Whereas the Maryland Terrapins are 1 of GENERAL LEAVE in a row, averaging almost 15 points only 5 teams in history to have won national and eight rebounds each game. Con- championships in both basketball and foot- Mr. MCKEON. Mr. Speaker, I ask gratulations to Lonnie, and we wish ball; unanimous consent that all Members you the best of luck as you pursue a ca- Whereas University of Maryland senior may have 5 legislative days within reer in the NBA. Juan Dixon was named the Most Outstanding which to revise and extend their re- Again, congratulations to the Terps Player of the tournament, First Team All- marks on H. Res. 383. American, and Atlantic Coast Conference The SPEAKER pro tempore. Is there and their victory. Everyone on the Player of the Year; team has made the State of Maryland objection to the request of the gen- Whereas University of Maryland senior tleman from California? proud. I thank my colleagues on both Lonny Baxter was named the Most Valuable sides of the aisle for allowing me to Player in regional play for the 2nd year in a There was no objection. come in, to make this final statement row; and tribute. Whereas the entire Maryland Terrapin f Mr. HOYER. Mr. Speaker, I thank team, including Earl Badu, Lonny Baxter, the gentlewoman for her comments. Steve Blake, Andre Collins, Juan Dixon, RESIGNATION AS MEMBER OF She did mention something that really Mike Grinnon, Tahj Holden, Calvin McCall, PERMANENT SELECT COM- Byron Mouton, Drew Nicholas, Ryan Randle, MITTEE ON INTELLIGENCE does bear focus, and that is the ex- and Chris Wilcox, demonstrated the highest traordinary academic achievements of level of teamwork, skill, tenacity, and The SPEAKER pro tempore laid be- the University of Maryland. In the sportsmanship throughout the entire 2001– fore the House the following resigna- final analysis, obviously, although the 2002 season; tion as a member of the Permanent Se- football team was extraordinarily suc- Whereas Coach Gary Williams and his lect Committee on Intelligence: coaching staff of Dave Dickerson, Jimmy cessful and the basketball team, and APRIL 10, 2002. Pastos, Matt Kovarik, and Director of Bas- indeed, the entire athletic program Hon. J. DENNIS HASTERT, under our athletic director, Debbie ketball Operations Troy Wainwright have Speaker of the House of Representatives, Cap- built one of the preeminent college basket- itol, Washington, DC. Yow, one of two women who leads an ball programs in the Nation, as dem- DEAR MR. SPEAKER: Effective at 5 pm to- NCAA–1 team in the athletic depart- onstrated by this championship win and ment in that division, has done an ex- morrow, April 11, 2002, I hereby resign my more than a decade of achievement; seat as a Member of the House Permanent traordinary job, but as well, Dan Mote, Whereas Coach Gary Williams, a 1968 alum- Select Committee on Intelligence. the president of the University of nus of the University of Maryland, led his As always, I appreciate your support and Maryland and his predecessors as presi- alma mater to the 2002 National Champion- friendship. dent of the University of Maryland ship and has compiled a tremendous track Warmly, record of achievement and success in his have brought it up academically so ALCEE, L. HASTINGS, more than 30 years in coaching, including 24 Member of Congress. that it is one of the finest academic in- years as a head coach; and stitutions in the country as well; and I Whereas University of Maryland Athletic The SPEAKER pro tempore. Without think it reflects the balance between Director Deborah Yow has played an instru- objection, the resignation is accepted. the mental and the physical that the mental role in elevating all of the Univer- There was no objection. H1270 CONGRESSIONAL RECORD — HOUSE April 11, 2002 APPOINTMENT OF MEMBER TO Bureau of Labor Statistics indicate there are riment of their fully vested employees. Un- PERMANENT SELECT COM- more than 48 million workers over the age of fortunately, the Rules Committee did not MITTEE ON INTELLIGENCE 45. allow debate on my amendment. Congress will revisit pension reform as The SPEAKER pro tempore. Without More than 40 million workers or their soon as this week. I strongly feel that any objection, and pursuant to clause 11 of spouses participate or receive benefits from pension reform legislation must include a rule X and clause 11 of rule I, the Chair defined benefit plans. provision to protect fully vested employees announces the Speaker’s appointment This amendment would: from having their pension plans changed of the following Member of the House (1) Provide 90 days notice of any pension overnight. plan conversion to all workers. Several years ago, thousands of IBM work- to the Permanent Select Committee on ers in my district came into work one morn- Intelligence to fill the existing vacancy (2) Give fully vested employees the choice of staying in their current plan or switching to ing to find that the defined benefit pension thereon: plan they had been promised had been Mr. CRAMER of Alabama. the new, amended plan. changed without warning. For years these There was no objection. This amendment exempts companies in fi- employees had been able to calculate their nancial distress from penalties (distress is to future benefits with a pension calculator lo- f be determined by the Secretary of the Treas- cated on their computer, compliments of PENSION PROTECTION ACT ury, following guidelines set out in ERISA). IBM. When the plan changed the calculator This amendment will have no adverse effect disappeared. So did the employees’ promised (Mr. GUTKNECHT asked and was on profitable companies that simply keep their benefits. given permission to address the House promises to their employees. Most Americans take protection of their for 1 minute and to revise and extend pension plans for granted. The Enron situa- his remarks and include extraneous WHAT DO YOUR CONSTITUENTS THINK tion has demonstrated the need for employ- material.) ‘‘VESTED’’ MEANS? ees to carefully monitor how their employer DEAR COLLEAGUE: In my dictionary, ‘‘vest- handles their retirement benefits. As more Mr. GUTKNECHT. Mr. Speaker, later companies change their pension plans and re- today the House will take up a bill ed’’ is defined as follows: vested, adj. 1. Settle, fixed, or absolute; duce future benefits for employees, we must called the Pension Protection Act of being without contingency: a vested right. provide, at a minimum, protection for vested 2002; and as far as it is concerned, it is Despite this definition, being ‘‘vested’’ in a workers who are planning for retirement a pretty good bill. There is nothing pension plan does not mean what most em- based on promises made by their employers. really wrong with it. The problem is it ployees think it means. Did you know that Strengthening the definition of ‘‘vested’’ and is not strong enough. Most Americans companies can, at any time and for any rea- providing employee choice will go a long way do not know that right now employers son, change a vested employee’s pension toward re-establishing balance and fairness plan? Most often, this change in plans in- for workers with respect to pensions. have the right to change their pension Sincerely, plan at any moment, even vested em- volves a company changing from a tradi- tional, defined benefit pension plan to a GIL GUTKNECHT, ployees. And, Mr. Speaker, when we ‘‘cash balance’’ pension plan. This usually Member of Congress. look up in the dictionary the term results in anywhere from a 20–50% reduction f ‘‘vested,’’ it says ‘‘settled, fixed or ab- in final pension benefits, with long ‘‘wear- solute, being without contingency, as away’’ periods during which employees do b 1645 in a vested right.’’ not accrue any new benefits. SPECIAL ORDERS The problem is that employers now Bureau of Labor statistics indicate there are more than 48 million American workers The SPEAKER pro tempore (Mr. have the right to change their pension CULBERSON). Under the Speaker’s an- plan in mid-course. Mr. Speaker, right over the age of 45. The latest Bureau of Labor statistics also show that more than 40 nounced policy of January 3, 2001, and now there are over 48 million American million workers or their spouses participate under a previous order of the House, workers who are over the age of 45. or receive benefits from defined benefit the following Members will be recog- Forty percent of all workers are en- plans! Many of these 40 million workers fall nized for 5 minutes each. gaged in what we call ‘‘defined benefit into the over-45 category. Pension plan con- plans.’’ Those can be changed and have versions disproportionately burden these f tremendous cost to those employees. older, career-oriented employees—those em- PATRICK HENRY: THE VOICE OF A Mr. Speaker, I have an amendment I ployees who need the most protection. REVOLUTION would like to offer to that bill to make This is wrong! When companies change their retirement plans in a way that may re- The SPEAKER pro tempore. Under a it clear that employers cannot raid the duce employee benefits, vested employees previous order of the House, the gen- pension funds for their own benefit and should be allowed to stay in the original pen- tleman from Indiana (Mr. PENCE) is deny people the benefits that they are sion plan that they were promised. Next recognized for 5 minutes. vested in. week, I will introduce the Vested Worker Mr. PENCE. Mr. Speaker, in the Mr. Speaker, this may be a good bill; Protection Act of 2002, and I’m looking for 1830s, the French observer Alexis de but it really is not pension protection. original cosponsors. This bill will require Tocqueville took a road trip through I hope the Committee on Rules will healthy companies to: America. We were a very young Nation, make in order the amendment that I (1) provide 90 days notice of any pension plan change to all workers; and less than 60 years old, progressing, as am offering today, and I hope my col- (2) give fully vested employees the choice Thomas Jefferson said, ‘‘beyond the leagues will join in supporting it. of staying in their current plan or switching reach of the mortal eye.’’ Several years ago, thousands of IBM work- to the new, amended plan. De Tocqueville came to find out for ers in my district came into work one morning This bill exempts companies in financial himself whether the great democratic to find that the defined pension plan they had distress from penalties, while otherwise revolution he had been told about was been promised had been changed without healthy companies will be subject to an ex- really true. Believing that this young warning. For years these employees had been cise tax should they violate the provisions of nation would ‘‘sway the destinies of this bill. able to calculate their future benefits with a This bill will have no adverse effect on half the globe’’, de Tocqueville wrote, pension calculator located on their computer, profitable companies that simply keep their ‘‘I sought for the greatness and genius compliments of IBM. When the plan changed, promises to their employees. Support em- of America in her commodious harbors the calculator disappeared. So did the employ- ployees in your district by signing on as an and her ample rivers, and it was not ees’ promised benefits. original co-sponsor of the Vested Worker there; in her fertile fields and bound- Right now, companies can, at any time and Protection Act of 2002. To co-sponsor, please less prairies, and it was not there; in for any reason, change a vested employee’s call James Beabout at extension 5–2472. her rich mines and her vast world com- pension plan—this is wrong. Sincerely, merce, and it was not there. Not until GIL GUTKNECHT, Most often this change involves a company Member of Congress. I went to the churches of America and converting a traditional, defined benefit plan to heard her pulpits aflame with right- a cash-balance plan, which usually results in eousness did I understand the secret of APRIL 10, 2002. anywhere from a 20–50% reduction in final DEAR COLLEAGUE: When Congress consid- her genius and her power.’’ benefits. ered major pension reform in 2000, I proposed After all he saw and heard in this These conversions disproportionately bur- an amendment to prevent healthy companies young republic, Mr. Speaker, de den older, career-oriented employees. from changing the pension plans to the det- Tocqueville came to believe that the April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1271 church was the source of America’s Mr. Speaker, may we ever remember and 1998, there has been a significant nascent greatness. And it should really that from the fire of faith comes the trend toward lower levels of fat and come as no surprise that from the high future of freedom. saturated fat in school meals. More steeples and the rows of pews have f schools serve low-fat milk and provide come some of America’s greatest fig- The SPEAKER pro tempore. Under a healthful food choices in the school ures and most defining moments. previous order of the House, the gentle- cafeterias. Chief among them was on March 23, woman from the District of Columbia Despite these successes, there still is work to be done. While school break- 1775. It was a full year before the Dec- (Ms. NORTON) is recognized for 5 min- laration of Independence would be utes. fasts are close to meeting all Federal signed in Philadelphia. The seeds of (Ms. NORTON. Her remarks will ap- nutrition standards, many of the revolution were sewn in Virginia. The pear hereafter in the Extensions of Re- school lunch programs still do not midnight hour of British tyranny was marks.) meet Federal nutrition guidelines. The school meal programs also face approaching, forcing the leaders of that The SPEAKER pro tempore. Under a competition from vending machines Commonwealth to choose their course. previous order of the House, the gen- and fundraising food sales at schools The debates were fierce and divided. tleman from Washington (Mr. that encourage children to skip the Some argued for revolution; others for NETHERCUTT) is recognized for 5 min- more nutritious school meal and eat a more diplomatic outcome. utes. snacks and sodas that are full of fat, In St. John’s Church in Richmond, (Mr. NETHERCUTT addressed the salt, and sugar. Despite their good ef- Virginia, the leaders met again to de- House. His remarks will appear here- forts, our schools cannot do it all. Par- cide the people’s fate, and a fiery ora- after in the Extensions of Remarks.) tor named Patrick Henry rose from his ents need to take responsibility, and chair. Murmurs and whispers greeted f the Federal Government has to do its him. He was known for his lively CHILD NUTRITION part. speeches, entertaining visitors and I urge my colleagues here in Congress The SPEAKER pro tempore. Under a to join me in cosponsoring H.R. 2129, leaders alike. But the opposition was previous order of the House, the gen- growing increasingly uncomfortable the Better Nutrition for Schoolchildren tleman from Texas (Mr. HINOJOSA) is Act of 2001. This bill will give the U.S. with his claims and his call for liberty recognized for 5 minutes. at any cost. Department of Agriculture the author- Mr. HINOJOSA. Mr. Speaker, today I ity to extend nutrition guidelines to Patrick Henry’s speech began like an rise to speak about a serious problem approaching storm. His words grew every food product in our schools, in- that is affecting the health of our chil- cluding those outside of the cafeteria. with intensity and power. ‘‘Besides, sir, dren. I am talking about childhood obe- he said, we shall not fight our battle As we look towards next year’s reau- sity. thorization of the Child Nutrition Act, alone. There is a just God who presides In his recent ‘‘Call to action to pre- over the destinies of nations, who will I hope that we in Congress will be a vent and decrease overweight and obe- partner, not a hindrance, in improving raise up friends to fight our battles for sity,’’ the surgeon general found that us. The battle, sir, is not to the strong the health and nutrition of our school- in 1999, over 13 percent of children ages children. Our children deserve no less. alone, it is to the vigilant, the active, 6 to 11 and 14 percent of adolescents and the brave.’’ And then, with growing Again, I urge my colleagues on both ages 12 to 19 years are overweight. Na- sides of the aisle to join me in cospon- momentum, he concluded, ‘‘Is life so tionwide, the number of overweight dear, or peace so sweet, as to be pur- soring H.R. 2129, and let us pass this children has tripled over the last two legislation. chased at the price of chains and slav- decades. f ery? Forbid it, Almighty God. I know This has led to a staggering increase not what course others may take, but in children with Type 2 diabetes, a dis- VIOLENCE IN THE MIDDLE EAST as for me, give me liberty or give me ease that normally affects senior The SPEAKER pro tempore. Under a death.’’ This was, in fact, the rhetor- adults. Sixty percent of obese children previous order of the House, the gen- ical shot heard around the world. ages 5 to 10 have at least one risk fac- tleman from Florida (Mr. FOLEY) is For Patrick Henry, the church was tor for heart disease, and 25 percent recognized for 5 minutes. the natural place to say such words. He have two or more factors. Mr. FOLEY. First, let me commend grew up listening to the passionate As obese children grow up, they are the House, Mr. Speaker, for its passage teachings of traveling preachers. He likely to remain obese as adults, and of the very, very important retirement studied their movements and tone. He continue to be at risk for a variety of security bill today, the Pension Secu- watched as they swayed audiences to- health problems. If we are to reverse rity Act of 2002. I state emphatically, wards belief. this trend, parents, schools, and the the bill brings about some necessary But religion for Henry was not a side- government must work harder to ad- reform. show or politics, or something to be dress this problem early, before our My best quote, if you will, relative to left to the pulpit. He knew true belief children’s health is affected. this important legislation is, if it is transformed lives, inspiring the heart I want to commend two organiza- good enough for the brass, it ought to and steeling the will. He said, ‘‘It can- tions in my congressional district that be the same for the middle-class work- not be emphasized too strongly or too are doing just that. The Region One ers. So hopefully we have leveled the often that this great Nation was found- Education Service Center in Edinburg, playing field, provided some protec- ed not by religionists, but by Chris- Texas, and the Texas School Food tion, and it is well overdue. I commend tians.’’ Service Association have taken the the gentleman from Ohio (Mr. Patrick Henry would go on to be lead in working with our schools to im- PORTMAN) for his outstanding efforts Governor of Virginia five times, and prove nutrition and encourage physical on leading us in this direction. He has was instrumental in drafting its first activity to reduce childhood obesity. been working on this for years. constitution. But in all his experience, Our schools are working hard to re- This is not as a result of Enron, but he grew more and more to believe in verse this trend toward obesity. Many it certainly has been aided and abetted the importance and the centrality of schools that eliminated physical edu- by that scandal that took place in the Christian faith. cation programs are reinstating them. Texas, so I am thrilled we are able to Let us close with the words of Alexis Mr. Speaker, I would like to show pass it to the floor today. de Tocqueville, who would write some that there is a great need for improve- Let us turn our attention to a very 50 years later of the experiences of the ment in school meals, with this poster. serious issue that is confronting the Revolution that, as was the case with Our schools are working hard to re- world, if you will, and that is what is Patrick Henry, ‘‘Christianity is the verse the trend, as I said earlier. going on in the Middle East. companion of liberty in all its con- Thanks to the work of the Texas Food Mr. Speaker, I rise today to reiterate flicts, the cradle of its infancy and the Service Association and the National my strong support for Israel. There is divine source of its claims.’’ Food Service Association, between 1991 no escaping the mire of violence that H1272 CONGRESSIONAL RECORD — HOUSE April 11, 2002 has taken such a horrible toll in the peace, not war in the guise of Jihad, ministration’s initial policy of dis- Middle East. All of us wish collectively and certainly not in martyrdom. engagement for almost an entire year that peace would come sooner rather It is a troubling time for us, it is a was ill conceived. But with Secretary than later for the Israelis and the Pal- troubling time for them, and I urge Powell’s mission to the Middle East, estinians. But in the interim, we must that we all work collectively in sup- we have some indication that the ad- look past the graphic images being port of Secretary Powell’s visit there ministration realizes how important it broadcast on the nightly news and on behalf of the President of the United is to put the full weight of our diplo- fully appreciate why the United States States. I think it is clear that we must matic and foreign policy apparatus be- has such a stake in what is happening do all we can to achieve peace, but it hind the search for peace. there. has to be a just peace for all. The United Nations should approve a Israel has been a strong, true partner I have often felt that if average peacekeeping or an enforcement action of the United States, anchoring our Israelis and Palestinians could meet that is international in scope, because policies in the Middle East. A strong, together and sort this out, they prob- if the two sides can be separated and a true partner, I want to underscore ably would. I have very little con- situation created for dialogue, the those important words. Whatever sec- fidence in Mr. Arafat. I have very little world may have an opportunity to ond-guessing anyone might have over confidence. He attempts to show a good move forward. tactics, Israel must have the ability to face and smiling demeanor when he A U.N.-supported force, after bring- protect itself and its people in what talks peace in the United States, as he ing down the level of violence, could has become a dangerous and hostile ev- has many times, and then he goes back help provide for regional stability that eryday environment. home and straps a rifle to his waist and is necessary for preserving the State of From its inception, Israel, which is swaggers around and insists that he Israel’s continuing right to exist and the most stable democracy in the re- has no interest in dealing with Israelis, establishing an independent Pales- gion, has shown strength and resolve in in order to keep his job. tinian state. the face of adversity. The war of ter- It is about time we stopped worrying Americans, I suppose, could ask, Why rorism that has increasingly been about keeping our jobs and started are we there? Is it because of regional waged against it has become untenable worrying about saving lives. I urge all stability, or is it because of our own oil and inexcusable. Both Israelis and Pal- sides to begin immediately, before interests? Let me reference a compli- estinians now live in a constant state more deaths take the innocent. cating factor and urge Americans to of fear, a fear that their lives may end think domestically what we can do f in a restaurant, an open-air market, or here at home also to contribute to a so- simply crossing the street. b 1700 lution. Let me underscore, this is not be- MIDDLE EAST PEACE AND U.S. dependence on imported petro- tween military personnel on each side, STABILITY leum remains our chief strategic vul- this is about average citizens, men, nerability. We watch gas prices going women, and children, going about their The SPEAKER pro tempore (Mr. up again, and we see the recession we daily lives, being blown up in the CULBERSON). Under a previous order of are beginning to pull out of being trig- streets of these cities. Before Sep- the House, the gentlewoman from Ohio gered perhaps again because of a 20 per- tember 11, few Americans could imag- (Ms. KAPTUR) is recognized for 5 min- cent increase in gas prices here at ine such fear. Even after September 11, utes. home. Too often our dependence on im- it remains hard to envision living our Ms. KAPTUR. Mr. Speaker, I wish to ported petroleum, including from everyday lives with the ghost of death say this past week I have called on places like the Middle East, have almost hovering. Yet, this is what President Bush to request an emer- served as proxy for our foreign policy. Israel faces and Israelis face every day. gency meeting of the United Nations I will insert into the RECORD this Since the new wave of terrorism has security council for the purpose of en- week important articles written in swept over the land, this is what many forcing a peacekeeping or enforcement USA Today, which the headline reads, Palestinians also face. Yet, the Pales- action in the Middle East. ‘‘Gas Prices Up 20 Percent and Rising,’’ tinian leadership continues to escalate In the past few months the world has and its relationship to what is going on the violence, plunging the region fur- witnessed a frightening increase in the in Iraq, in spite of the embargo, pro- ther into chaos. level of violence in the Middle East. In viding us with a minimum of 8 percent We have a moral obligation to both this 21st century, which we had hoped of the petroleum that we import into the Israelis and the Palestinians to would be a century of peace, our chil- this country every day. forge ahead for peace, but we also must dren have watched on television over I will also supply for the RECORD ar- keep in mind that many of Israel’s en- 2,000 more people killed in this unnec- ticles from the New York Times of yes- emies have sworn to destroy the coun- essary fighting between the Palestin- terday talking about the missing en- try of Israel. They hate Jews. The ians and Israelis. We have seen lives ergy strategy of the Bush administra- Jihad, the Islamic Jihad, the and neighborhoods destroyed. We have tion. Hezbollah, the Hamas are all desperate seen children blown up and shot. We We have got to get serious here at to destroy others because of their eth- have seen the hope for peace dimin- home. Over half the petroleum we use nicity or religious belief. ished. Innocent Israelis and Palestin- is imported from very unstable places. For Americans, the shells that fall in ians have been literally caught in the It is time for America to become en- the Middle East impact us here close to crossfire of violence. ergy independent. home. Just as the carpenter would not To date, as many as 1,400 more Pal- And an article from the Times on start building a home on a soft sand estinians and 500 more Israelis have Tuesday talking about Venezuela: foundation, we cannot hope to defeat died. The situation is clearly out of ‘‘Venezuela Woes Worsen as State Oil terrorism at home and abroad when control. Company Calls Strike.’’ This is going terrorism in the Middle East under- I applaud President Bush’s demands to impact prices here at home as well. mines the very foundation of peace we that Israel and the Palestinian Author- Who or what is leading our foreign seek to achieve. ity step back from one another. But policy? Are we promoting democracy This has certainly not been lost on the Israelis have refused to comply or securing international oil interests my constituents, many of whom have with the President’s demand and the as our primary goal? Americans here at mothers and fathers, sisters and broth- Palestinians have refused to comply home need to demand a declaring of en- ers, cousins, aunts, uncles, and friends with the President’s demand. ergy independence. in Israel. It should not be lost on any- What happens in the Middle East is The U.S. Energy Department headed one who recognizes that the United crucial to U.S. interests. What happens by Spencer Abraham reported this States cannot fight a successful war in the Middle East is crucial to the week that consumers can expect no re- against terrorism unless and until the United States’s war against terrorism. lief at the gas pump before fall and pre- Arab world in general and the Palestin- What happens in the Middle East is dicted that the average price of regular ians in particular join us in seeking crucial to our economy. The Bush ad- unleaded gas to be $1.46 between now April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1273 and September, and in many parts of months earlier, and appointed five board [From USA Today, April 9, 2002] the country it is higher already. In members with ties to his administration. GAS PRICES UP 20% AND RISING fact, prices went up 23 cents a gallon For many of the company’s 15,000 office (By James R. Healey and Barbara workers, who had long celebrated it as a Hagenbaugh) last month alone, the fastest monthly meritocracy known for efficiency and high increase in history. standards, the president’s management deci- EXPERTS FEAR HIGHER ENERGY COSTS COULD There is a connection between what sion was enough. The workers organized pro- PUT BRAKES ON RECOVERY is happening internationally and what tests and slowdowns, which have won the Gasoline, blood of the economy and soul of is happening here at home. The same support of leaders from business and labor, consumers, is 20% more expensive than a insatiable appetite for foreign oil as well as from the local media, which report month ago—like finding out that sport-util- every anti-Cha´ vez protest or pronouncement ity vehicle you want is now $30,000 instead of drives our domestic policy. We gave $25,000, or that the suit you’re planning to over $4 billion in taxpayer dollars to with relish. With Mr. Cha´ vez refusing to withdraw his buy is $600, not $500. Enron folks to protect their overseas That’s the kind of price inflation we asso- appointments or negotiate with dissident oil ciate with South American or Eastern Euro- natural gas and oil interests. If we had executives, the office workers and produc- spent that money over the last 10 or 15 pean countries that supposedly lack U.S. tion workers persisted with their slowdowns, economic stability. years on alternative fuel research and which have intensified since last week. At The bad guys in this case aren’t obvious. development here at home, we might one drilling site on Thursday, two oil work- The big fuel-price climb is due mainly to a be self-sufficient by now. And that is ers were killed when fighting broke out be- complicated switch to summer-blend fuel the direction our country needs to tween government supporters and opposition from winter blend, required by federal air head. We need to have a Manhattan party members. pollution regulations; by the routine and The exact impact on oil production, refin- seasonal rise in crude oil prices; and by a Project to the extent that we involve ing and the transport of crude and oil prod- every single major research university strike in Venezuela that’s keeping oil off ucts was unclear today. tankers. in this country in helping us become But analysts and executives said the Only after ticking through that list are the energy independent and having a for- Amuay Cardo´ n refinery, which processes experts and analysts—if not politicians— eign policy again designed for democ- 950,000 barrels of crude daily and is a crucial ready to name Iraq’s just-announced 30-day racy, not just oil. supplier of finished oil products to the oil-export boycott, fears that the USA will United States, had reduced operations. At [From the New York Times, Apr. 9, 2002] invade Iraq and the Israeli-Palestinian tin- least two other installations, the Palito re- derbox as underlying causes. (Story, 2B.) VENEZUELA WOES WORSEN AS STATE OIL finery on the north-central coast and Puerto Consultants, analysts and other experts COMPANY CALLS STRIKE La Cruz to the east halted operations, they think the nationwide average price should (By Juan Forero) said. peak near $1.60 a gallon, perhaps within a ME´ RIDA, VENEZUELA, Apr. 8.—A six-week Dissident oil executives, reading a state- month. The government said $1.46 Monday, tussle over President Hugo Cha´ vez’s manage- ment outside a Petro´ leos de Venezuela office before the Iraqi export embargo. Experts also ment of the state oil company has turned building in Caracas, said extraction of oil foresee a chance of local shortages, as refin- into his most serious crisis, with exports of was slowing in the Furrial field in the east eries making ingredients for specific summer oil disrupted by a labor slowdown and a gen- while refineries and plants that produce blends are overtaxed or have mechanical eral strike called for Tuesday by labor and chemicals or distribute natural gas were also problems. business leaders. ratcheting down. Not cheery, but not as bad as the last two ‘‘This can only end with the president re- ‘‘Progressively everything is shutting summers, when fuel passed $2 in some places signing,’’ Humberto Caldero´ n Berti, a former down,’’ said Alberto Quiroz, an oil analyst and the Midwest ran short because of refin- minister of energy and mines, told a throng and former executive at Petro´ leos de Ven- ery and pipeline problems. of protesting executives from the oil com- ezuela (which is known worldwide by its More broadly and ultimately more impor- pany Petro´ leos de Venezuela in Carcas. ‘‘All Spanish acronym, Pdvsa, pronounced peh- tant: Fuel price increases could blunt what- Venezuelans from all walks of life, from all de´h-VEH-sah). ever edge the economic rebound has honed, social strata, from all the political and ideo- Top government officials, among them although economists and experts say it logical sectors, must take part in the stop- Vice President Diosdado Cabello, Energy and shouldn’t flatten the recovery. page. This is about him or us. It is a choice Mines Minister A´ lvaro Silva, and the oil ‘‘I certainly don’t regard it as being help- between democracy or dictatorship.’’ company president, Gasto´ n Parra, have ful,’’ says William Poole, president of the Government ministers said today that ex- sought to minimize the effects of the slow- Federal Reserve Bank of St. Louis. Higher energy prices ‘‘act like a tax on ports of oil and refined products remained down. normal for Venezuela, the world’s No. 4 ex- ‘‘Everything is normal,’’ Mr. Silva told re- consumers and businesses. The key is how porter. But analysts and executives from porters. ‘‘Go to the refineries. Everything is long the rise is sustained and how high it will go,’’ says Richard Berner, chief econo- Petro´ leos de Venezuela said a five-day work normal. There is a small group protesting, mist at Morgan Stanley. If they stay at to- slowdown among oil workers and managers but everything is operating normally.’’ had forced a scaling back of operations at The commander of the armed forces, Gen. day’s level, it’ll cut economic growth 0.4 of a several refineries and a cutback in produc- Lucas Rinco´ n, announced that the military percentage point, which he calls ‘‘not a big deal.’’ tion at wellheads, all of which has disrupted was beefing up its presence at refineries and Price of benchmark light, sweet crude oil oil shipments to the United States and other oil fields, which are routinely protected by closed at $26.54 a barrel Monday, and Berner countries. the National Guard. says that would need to ‘‘go north of $35’’ to ‘‘The reality is you don’t have business as Through it all, Mr. Cha´ vez has refused to be ‘‘a serious concern.’’ usual,’’ said Larry Goldstein, president of back down or acknowledge that the slow- Crystal Siembida of Columbiana, Ohio, the Petroleum Industry Research Founda- down could hurt Venezuela, whose economy puts a finer point on it: ‘‘I can hardly afford tion, an industry-supported consulting group relies on oil for 80 percent of exports and 50 to pay the price of gas as it is,’’ and thinks in New York. ‘‘We believe half to two-thirds percent of government revenues. she might have to switch to carpooling or bi- of their exports have been impacted. But it is In a long nationally televised address on cycling to work if the price keeps rising. literally an hour-by-hour situation.’’ Sunday, the president said the military Bonnie Sporn of Los Angeles drives a Jeep Latin America’s fourth-largest economy could run oil production and refining sites if Cherokee SUV and says she deals differently may also grind to a halt on Tuesday, as dis- necessary. He also took the opportunity to with her friends now that prices are up: ‘‘In sident business leaders have promised, in announce that he had fired 7 dissident execu- the past, if I drove with my friends on an ex- protest against what they see as Mr. tives and forced 12 more to retire. tended trip, I did not expect them to con- Cha´ vez’s autocratic style of governing and Blowing a soccer referee’s whistle and call- tribute gas money. Things have changed his treatment of oil company managers. The ing the executives ‘‘off sides,’’ Mr. Cha´ vez .... We figure out the portions we all owe first such stoppage took place on Dec. 10. warned about a ‘‘subversive movement in for gas before we get out of the car.’’ Millions of workers stayed home as part of a neckties’’ trying to destabilize the country. Beyond gasoline, higher oil prices also growing wave of protests aimed at forcing But, he warned, ‘‘I can do away with all of translate into higher heating oil and jet fuel Mr. Cha´ vez from power. them,’’ he said. prices. Both have the potential to hurt the The showdown that has churned up the Rafael Sandrea, president of the oil com- recovery. But heating oil season has ended, current crisis began when Mr. Cha´ vez, a left- mittee of Fedeca´ maras, a powerful business ‘‘so it’s not going to crunch household budg- leaning former army paratrooper who won group, said Mr. Cha´ vez’s uncompromising ap- ets’’ as it has the past few years, says Paul office in 1998, took on the management of proach had only made the opposition that Taylor, chief economist for the National Petro´ leos de Venezuela, a behemoth with much more defiant. Automobile Dealers Association. 40,000 employees. Calling it a ‘‘state within a ‘‘The president has closed the door of rec- Still, price hikes will discourage some state’’ that sapped resources while benefiting onciliation and opened the doors for war,’’ driving and car buying, he says, and will a small number of high-flying executives, Mr. Sandrea said. ‘‘That is what this is now, push on industries such as utilities that gen- Mr. Cha´ vez in February fired the company war, between the people of PDVSA and the erate electricity using oil and chemical man- president, a general whom he had appointed government.’’ ufacturing that uses crude oil. H1274 CONGRESSIONAL RECORD — HOUSE April 11, 2002 Jet fuel is the second-biggest cost for air- less they’re sure he’s serious, so there’s the fending energy efficiency measures that have lines, after labor. And that fuel is up about whole question of how serious is Saddam?’’ yet to be voted on—chiefly a provision that 40% this year, 71 cents a gallon Monday. Air- It would be May before increases by other would increase efficiency standards for air- lines, though, often contract in advance for oil exporters would show up in the USA. conditioners by 30 percent. The Senate fuel at a specific price to avoid big swings. And to heck with it, anyway, says Sherry should also preserve a useful provision that Airlines and private jet operators don’t ap- Jones Nelson of suburban Minneapolis. She’ll would require companies to give a public ac- pear to be buying less. There’s been ‘‘a lot of take her usual long-distance driving vaca- counting of their production of carbon diox- fussing,’’ says Ed Hayman, vice president of tion, regardless: ‘‘We won’t let any company, ide and other so-called greenhouse gases. On supply for World Fuel Service to Miami, but or country, stop us.’’ the supply side, it can take steps to improve ‘‘we haven’t seen a cutback. the reliability of the nationwide electricity PUSHING COSTS The Missing Energy Strategy grid, while increasing incentives for smaller A look at what’s driving prices: Summer- The events of the past year—prominently, and potentially more efficient producers of blend gas. The Environmental Protection a power crisis in California and the terrorist power. Agency can fine a service station $27,500 a attacks on Sept. 11—gave the nation many These are modest measures, less ambitious day for selling winter-blend fuel after May 1, reasons to reexamine its energy strategy. than the Senate’s original agenda. But at so the switch has to begin now. Fuel evapo- Now comes another: Saddam Hussein’s deci- least they point in the right direction, to- rates into the air and pollutes it easier in sion to halt oil imports to the United States, ward a strategy that includes conservation hot weather, so summer gas is made to com- at least temporarily, in retaliation for Wash- as well as production. pensate. ington’s support of Israel. f In an interview with The Wall Street Jour- But there are more than 100 types of sum- CONGRATULATIONS TO THE mer fuel across the USA. Some, such as in nal earlier this week. President Bush warned the Mid-west, require ethanol—grain alco- that the recent 20 percent jump in oil prices UCONN HUSKIES hol—to support area farmers. Ethanol must could threaten economic recovery. While The SPEAKER pro tempore (Mr. be mixed locally and distributed by trucks. If Iraq accounts for about 8 percent of Amer- FORBES). Under a previous order of the an ethanol plant or a refinery supplying the ica’s imports, according to Washington’s es- House, the gentleman from Con- special gas to blend with ethanol has trou- timates, there is spare oil capacity in the necticut (Mr. SIMMONS) is recognized ble, there’s an immediate shortage threat, system, and thus there should be no petro- and prices spike. leum shortage if other Middle Eastern pro- for 5 minutes. Last Aug. 14, for instance, the Lemont re- ducers refuse to follow Baghdad. Even so, Mr. SIMMONS. Mr. Speaker, I rise finery outside Chicago caught fire, stopping Mr. Hussein’s action draws attention once here today on the floor of the House to production of fuel needed for the area’s again to America’s dependence on imported commend and congratulate the 2002 unique ethanol blend. By Aug. 16, the aver- oil, including oil supplied by the troubled NCAA women’s basketball champions, age wholesale price there jumped 12.1 cents a countries of the Persian Gulf. It also points the University of Connecticut Huskies. gallon, and pump prices averaged 12 cents to Washington’s sorry failure to devise a bal- This past Saturday in my home State higher than the day before the fire. anced strategy to reduce America’s reliance of Connecticut and the State capital, Crude oil prices. They rise and fall with de- on gulf imports and give itself greater ma- mand. Crude oil accounts for about 38% of neuvering room in the war on terrorism and over 150,000 men and women and chil- gasoline’s price. The retail gas price hike ‘‘is other foreign policy issues as well. dren, enthusiastic fans, gathered for an mostly crude and the changeover to summer The Senate, which has resumed debate on hour-long parade in freezing tempera- fuel. Everybody tries to read more into the the energy bill, is the last hope for such a tures to congratulate and cheer on numbers, but that explains what’s going on,’’ strategy. Admittedly, the prospects are dim- these young women who not only have says Alan Struth, oil market consultant at mer than they were a month ago, when the excelled on the basketball court but Energy Insights. Senate took up an imperfect but honorable have excelled academically as well. Venezuelan strike. Oil-market experts wor- measure cobbled together by Jeff Bingaman The UCONN Huskies team were led ried more about Venezuela than about the of New Mexico and Tom Daschle, the major- by Most Outstanding Player Swin Arab nations Monday. Workers at the state- ity leader. The bill included a mix of incen- owned oil company known as PDVSA have tives for new production of fossil fuels, large- Cash; and they capped a perfect 39–0 been protesting management changes man- ly natural gas, along with provisions aimed season, beating the University of Okla- dated by President Hugo Chavez for about at increasing energy efficiency and the use of homa 82 to 70 in what was a closely six weeks. Venezuela is a major supplier of renewable energy sources. As such it stood in contested competition. All of the State gasoline and heating oil to the USA. If a stark contrast to a grievously one-sided of Connecticut watched with pride as strike there lasted a week, the USA would House bill that provided $27 billion in incen- the Huskies claimed their place as feel the pinch, Struth says. ‘‘It’s that tight.’’ tives for the oil, gas and coal industries and undefeated champions and one of the SADDAM MAKES A MOVE less than one-quarter that amount for effi- great all-time women’s basketball Despite mutterings it would happen, Iraqi ciency. The House bill also authorized the opening of the Arctic National Wildlife Ref- teams in NCAA basketball history. leader Saddam Hussein’s pledge to sell no oil The University of Connecticut was for 30 days unless Israel withdraws from the uge to oil exploration and drilling. West Bank caught traders and politicians by On its first big test, however, the Senate founded in 1881 and has a rich tradition surprise Monday and sent crude prices up. collapsed under industry and union pressure of academic excellence as well as ath- Reassurances from the U.S. government and rejected a provision requiring the first letic ability. The Huskies now add an- and international energy officials were increase in fuel economy standards since other national championship to their prompt, but the boycott nonetheless could 1985. To Mr. Daschle’s dismay, Democrats de- title and their world-class academic cause disruptions. And disruptions cause oil serted the cause of fuel conservation in reputation. The pride of Eastern Con- droves; New York’s senators, Charles Schu- traders fits. necticut and Storrs is now the pride of Monday ‘‘was another wild and wooly mer and Hillary Rodham Clinton, were day,’’ says Peter Beutel of Cameron Hanover, among the honorable exceptions. The only Connecticut and the pride of the which advises companies at risk when energy bright moment in a dismal two weeks of de- United States of America. prices change drastically. ‘‘Prices shot up. bate and defeat was the approval of a ‘‘re- It is with great joy, Mr. Speaker, They did come back down, but at one point, newable portfolio standard’’ that would re- that I commend and honor the UCONN prices did look as if they would roar out of quire utilities to generate between 5 and 10 team because I was a teaching assist- control,’’ he says. percent of their power from wind, solar and ant at that university for 4 wonderful Even before Iraq, ‘‘the market was other forms of renewable energy. years. And I want to say to all of those There are several things the Democrats primed,’’ Beutel says. ‘‘We are in the pre- here present and to those listening and summer urgency period. Everybody says, ‘If and their moderate Republican allies can do I don’t get it now I won’t have enough,’’’ be- to produce a respectable bill. First, they to the Huskies, way to go, Lady cause summer driving uses up stockpiles of must defeat any amendment aimed at open- Huskies. I especially would like to con- gas. This summer’s demand is expected to be ing the Arctic refuge to drilling. Such an gratulate the players, Sue Bird, Swin a record 8.8 million barrels a day. amendment is almost certain to be offered Cash, Asjha Jones, Diana Taurasi, and Even though other members of OPEC—the by Frank Murkowski of Alaska, but the facts Tamkia Williams, and Head Coach Organization of Petroleum Exporting Coun- are not on his side. Every available calcula- Geno Auriemma, and Associate Head tries—are expected to make up for any Iraqi tion—including those that accept Mr. Mur- Coach Chris Dailey, the staff, as well as kowski’s inflated estimates of the amount of shortfall, ‘‘there is the whole exercise of flip- Lou Perkins, the head of the athletic ping the switches,’’ Beutel points out. oil underneath the refuge—show that much ‘‘Saudi Arabia can go ahead and increase more oil can be saved by fuel efficiency than department. production today, but the oil takes three or by drilling. In the words of the cheerleaders of four weeks to get out of the ground and into Next, they must resist efforts to weaken the UCONN Huskies, U-C-O-N-N, a tanker. And the Saudis won’t do that un- the renewable energy provision, while de- UCONN, UCONN, UCONN. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1275 HONORING BILLY CASPER The SPEAKER pro tempore. Under a cause of the flexibility that the States The SPEAKER pro tempore. Under a previous order of the House, the gentle- have been given to implement these previous order of the House, the gen- woman from Georgia (Ms. MCKINNEY) is new requirements. recognized for 5 minutes. The real way that we can measure tleman from California (Mr. HUNTER) is the success of welfare reform, it seems recognized for 5 minutes. (Ms. MCKINNEY addressed the to me, is to look at the quality of the Mr. HUNTER. Mr. Speaker, this is House. Her remarks will appear here- family life after they have left welfare. the first day of the Masters, one of the after in the Extensions of Remarks.) Are these families earning sufficient most prestigious sports events in our f funds to really take their family out of Nation and, indeed, the world. And I WELFARE REFORM poverty, out of all of the support serv- rise today to commemorate the fact The SPEAKER pro tempore. Under ices that the poor in this country are that for only the second time in 45 the Speaker’s announced policy of Jan- entitled to? I think the answer to that years, one of the great golfers of this uary 3, 2001, the gentlewoman from Ha- question is that the substantial major- decade, in fact, one of the great golfers waii (Mrs. MINK) is recognized for 60 ity of families that have gone off wel- of this century, Billy Casper, is not minutes as the designee of the minor- fare are still poor, are still below pov- playing in the Masters. Billy Casper, ity leader. erty and are still dependent upon the won the Masters in 1970. He also won a Mrs. MINK of Hawaii. Mr. Speaker, I wide variety of support mechanisms couple of United States Open cham- appreciate the minority leader’s des- that are there for the poor in America. pionships. In fact, in 1966 at Olympic ignation of this hour to the discussion So, therefore, welfare reform, it seems Country Club in San Francisco, he of welfare reform. to me, has stopped short of accom- came from behind in what is considered The Bush administration has sub- plishing the real mission which it to be one of the most stunning come- mitted various proposals. Most of them should be, and that is to bring these from-behind victories in the history of go to the technicalities of States’ per- families up to economic self-suffi- golf. That is when he was seven shots formance and percentages of people ciency, to a matter of economic secu- back to Arnold Palmer with only nine that must be in a work program. They rity. holes to go and Billy Casper, called by have increased the work requirements One of the real mistakes I think that Golf Magazine the greatest putter in from 30 hours to 40 hours, with some al- we made in the enactment of TANF in the history of golf, managed to shoot a lowance for the use of 16 hours for 1996 is that we did not consider these 32 on the back nine at Olympic Coun- other than actual work activity. But in families as being those that might ben- try Club in San Francisco, one of the most cases the administration’s pro- efit from education. We have 1 year vo- most difficult golf tracks in the world. posals do not go to the matter of the cational training as a work activity, He tied Arnold Palmer for the U.S. actual recipients and families that but for many of the individuals on wel- Open championship and the next day have been affected by the many fare, additional educational opportuni- shot a 69 and beat Arnold Palmer. changes that we made in 1996. ties ought to be provided. That is the If you add to that great win, that I do not think there is any dispute on number one goal of legislation that I great success, and his other U.S. Open either side of the aisle that the provi- have introduced in the House last No- success and his 1970 Masters success sion of the 1996 Welfare Reform Act did vember, which now enjoys 90 cospon- the fact that Billy Casper won 51 times dramatically lower the number of wel- sors. And it looks to the welfare reform on the PGA tour, which puts him the fare recipients all across the country. legislation from the perspective of the sixth winningest golfer of all time, and This was because there were manda- recipient, not from the perspective of you add to that the fact that he has the tory requirements on work. If you did the mechanic, the percentages that are best Ryder Cup record in terms of wins not work, if you did not register for being held or the percentages that are and losses of any player in American work, if you did not go into some sort being gotten off of welfare or all of history, and you add to that the five of a work project, you would lose the those mathematical statistical charts. Vardon trophies he won on having the cash assistance. Therefore, the num- What we have done in the bill I intro- lowest scoring average on the U.S. bers that fell dramatically to about 50 duced, H.R. 3113, is to look to see how PGA tour, then you have to conclude percent of what they were in 1996 is ba- it impacted the families, and as a re- that Billy Casper indeed is one of the sically because of the rules that were sult of the legislation, H.R. 3113 cur- great heroes in sports history. included in the 1996 TANF legislation. rently enjoys the support and endorse- Mr. Speaker, I am proud that Billy The requirement to work has re- ment of over 80 organizations through- Casper lives in San Diego, California. moved many of these families from the out the country, the YWCA, the Na- He still plays golf at San Diego Coun- welfare roles. The problem with just re- tional League of Women Voters, a large try Club, where he worked as a caddy moving these families from the welfare number of women’s organizations, as a kid. He has a big heart. He has roles, however, is that they have sim- Business Professional Women, Center been a great leader of junior golf in de- ply gone to dead-end jobs, most of for Women Policy Studies, and on and veloping young golfers in our country them earning minimum wage, perhaps on. and, indeed, the Nation. Billy Casper is some as much as $6 or $7 an hour, but These individuals have not come on joined by his wife, Shirley, in all of his that is it. So most of these families re- to support the legislation as casual ob- efforts. He not only is a great athlete main under the poverty level and, servers. In most instances, they have and a great teacher but a great person therefore, continue to be a responsi- participated in the writing of the bill and a great leader in our community. bility of the national and State govern- from, again, the perspective of the Mr. Speaker, I know that the great- ments. child, of the family, of the single par- est golf field in the world is playing in ent, to see what we could do to enhance 1715 the Masters right now. The game is b their condition, their standing in our still on. We will have a leader today; They continue to be eligible for hous- society. and ultimately on Sunday afternoon ing support. They continue to be eligi- The people on welfare have to be we will see who the champion is. But ble for food stamps. They are eligible looked at as individuals who want des- there is one great champion, the 1970’s for Medicaid allowances and are, of perately to improve their condition, Masters champion who is not playing course, as former TANF recipients, and I think that the major item that is this time for only the second time in 45 going to work under the TANF rules missing in the current law and in the years, but he will be down there be- entitled to significant amounts of child Bush administration’s proposal is the cause he is a wonderful person. He has care support. importance of education. a big heart. He loves this event. He The object of welfare reform, it Our bill hopes to consider education loves the tradition. He loves the gal- seems to me, is to really take a look at as a work activity. The law says one leries which in turn love him because the outcomes, not simply the mecha- must be in a work activity. So in order he is indeed a great sportsman, one of nisms; what percentage, 50 percent, 60 to comply with the law, and not to be the great representatives of the game percent are at work. The mechanisms sanctioned for failure to comply, we of golf. Billy Casper. have been proven to work, partly be- must first of all say education is a H1276 CONGRESSIONAL RECORD — HOUSE April 11, 2002 work activity, and if we do that, then need to have this special consideration. children’s welfare, and not to enact it would enable families to continue on The legislation that I have put forth, stricter requirements on work which to junior college, community colleges, H.R. 3113, explicitly says for the non- will make it even harder for these fam- major colleges and universities, to get school-age children that the option ilies to survive. substantial education so that they ought to be left to the mother to decide I would like at this time to yield to could really basically improve the fu- whether to remain at home and to care my colleague who serves on the Com- ture sustainability of the finances of for these small children. Even with the mittee on Education and the Work- their family. I think that is terribly children who are in school, the teen- force, has been a stalwart defender of important. agers who are apt to get into trouble, the rights of families and mothers, and President Bush for his initial thrust, apt to find themselves in difficulty, works hard to benefit the children of when he came to this Chamber and ad- need a parent at home. America. She is also a cochair of the dressed the country from that podium Many of these parents who write Task Force on Welfare Reform on the there, he said that we must not leave their story say the only job they could Democratic side, and she has been any child behind. Following that mes- get was something at night that working very, very hard to try to sage, we passed a major education bill, brought them home at 5 or 6 o’clock in amass public opinion, learned discus- elementary and secondary education, the morning. Their teenaged children sions about this subject, so that this H.R. 1, as it went through this House, were left unsupervised. How can we say House can have the benefit of the best and today it is Public Law 107–110. And that this is in the best interests of the information, best records that we can the whole approach is that we have to children of these poor families not to put together. And I am really pleased uplift the standards of our public edu- have an adult or parent there to super- at this time to yield to my colleague, cational system so that no child in vise them when they are home from the gentlewoman from California (Ms. America is deprived of the basic oppor- school? WOOLSEY). tunities to earn an education and to be We do not have after-school programs Ms. WOOLSEY. Mr. Speaker, I thank somebody to the best of their talents also in many places, and as a con- my colleague the gentlewoman from and abilities. sequence, school is over after 2 or 3 Hawaii (Mrs. MINK) for the partnership That is the approach I think we o’clock, these teenage children, age 14, she provides for me in this House of should be taking with welfare reform. 15, are out on the street. No one is at Representatives. I appreciate it so What can we do to uplift and enhance home to take care of them, because much. the quality of life of these children? It under our TANF law the parent is re- We might want to just talk back and is still aid to dependent children, even quired to work; and now, under the new forth a bit, because I think there is a if we call it temporary assistance for proposals, to work not just 30 hours but lot we can talk about that I think is so needy families. It is still based upon to work the full 40 hours, not nec- important. My colleague may have said what can we do to support, help these essarily in compensated work, because most of it, but I think it bears repeat- children. the assumption is that if they cannot ing. I think, for instance, that care giving get compensated work, they ought to In 1996 when we passed welfare re- is an important responsibility of all be doing volunteer work or doing form, after both of us voting against it parents, not just those in the middle workfare for the State or for some because it did not provide a safety net class and in the upper middle class and charitable institution. for children, we warned the President, the rich, to be free and able to stay I think that this is all very, very then Bill Clinton, and our colleagues, home and care for their own children, wrong. It does not accord the respect many of whom agreed with us and nurture them, raise them until they to our mothers in this country who are voted with us, that getting women off are school age. That should be the so- struggling to raise their children. Just of welfare and into jobs would not be cial, moral responsibility that is recog- because they are on welfare, they do enough, that just could not be the end nized by government for all mothers. not love their children any less. They result of welfare reform, and we warned But we do not do that in TANF. We do do not have any lesser responsibilities them that that was particularly impor- not do that in this welfare reform law for their children. And therefore it tant to look at if there was a downturn that we enacted in 1996, nor do we do seems to me that we need to put first in our economy. that in the current reauthorization things first, and that is to enact legis- We did not mean to be prophetic. I versions that have been submitted. lation that carries with it this sense of mean, we did not want to be seers. We Instead, we say that everyone on wel- responsibility of this government and just knew, and there it is. We were fare must go to work, must have a self- of the States for its smallest citizens, right, because this recent economic sufficiency plan, must perform 40 hours for the children. downturn has exposed the problem that of work, because we must train these So I am hoping that this perspective we talked about in the 1996 welfare re- individuals to understand what work can come into the discussion and the form bill. responsibility is, and we ignore the fact debate as we work these bills in the The guiding principle of 1996 reform that nurturing a child at home is as two committees. The Committee on was that welfare was the enemy. But important a responsibility as engaging Education and the Workforce will be the enemy was not welfare, and we oneself in a minimum wage job. doing markup, the bill was only intro- knew it. The enemy, and still is, is pov- Furthermore, many of these parents, duced yesterday, but will be doing erty. When I hear people brag about in a collection of comments that I have markup next Wednesday. And I am told how successful welfare reform has been reading through in a publication that the Committee on Ways and been, I wonder how they are measuring called Faces of Change, written by wel- Means also has an expedited schedule. the success. I know how they are meas- fare recipients and those that have left The general public is not going to uring the success. We both do. The suc- welfare and are now engaged in work, have adequate time to reflect on it, to cess of welfare reform must be meas- how troubled they are because they react to it, to contact the Members of ured by how we break down the cycle come from troubled families. They Congress to express their personal ob- of poverty, not how many people have have many difficulties in their own jections to the various changes that left the welfare rolls. personal situations. They have sick- the administration is proposing, and ness in their family, a child that is therefore I take this means today to b 1730 asthmatic, or there are mental difficul- heighten the awareness of the commu- First of all, we do not know that ev- ties and other kinds of health difficul- nity out there, which I know is en- erybody that has left the welfare rolls ties within the family that makes gaged in this subject, and ask for their has gone to work. We just know how steady employment almost impossible. attention and urge them to contact many people are no longer on welfare. And certainly if the child care is not members of the Committee on Ways We have to measure when we are adequate, they raise the concerns of and Means and of the Committee on looking at the success of welfare re- the mother even more. Education and the Workforce and to form, we have to measure if families So I think we have to bear in mind convey their concerns about the recipi- have become self-sufficient, which that the individuals who are on welfare ents of welfare, or the children and the means that they are able to raise their April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1277 families, that they have enough money States for lowering the number of fam- that is just not true for any of the peo- for housing, enough money for health ilies on welfare without any regard to ple who are in need today. care, they have enough money for child what happens to those families. That Mr. Speaker, I thank the gentle- care and the transportation that they could be throwing money out the win- woman from Hawaii (Mrs. MINK) for need to get back and forth to their jobs dow because if States are not helping being part of the welfare task force and to take their children to school families be self-sufficient, then they with me. We know that the things that and the market. That is self-suffi- are keeping families subsidized in the we need to be concentrating on child ciency. We are not saying that they long run, and that costs money. care, education counting as work, flexi- have to live in mini-mansions. We are Mr. Speaker, I have introduced the bility in the welfare system, making saying that they have a right to have a Self-Sufficiency Act, which helps sure that individuals who have domes- roof over their head; and when they are States figure out how much it would tic abuse problems, substance abuse working every day and playing by the cost for families in their States to be problems, mental illness, language dif- rules, they deserve to feel self-suffi- actually self-sufficient, to take care of ficulties, making sure that they get an cient. their children without any public as- opportunity to get their situations to- President Bush wants to increase the sistance. Once States have this infor- gether before the clock starts ticking requirement to 40 hours a week from mation, they can better allocate re- on them will make a difference in en- what is currently 30. The only way this sources to help families move towards suring that welfare makes work pay requirement is going to work is if we self-sufficiency. and count, and these people all count. count education as work. I know the In doing that, they will be looking at Mrs. MINK of Hawaii. Mr. Speaker, I gentlewoman just discussed this, but if housing costs, transportation costs, thank the gentlewoman from Cali- we want self-sufficiency and women child care costs, and health care costs fornia (Ms. WOOLSEY) for her contribu- particularly to go from welfare and get in their communities. Every commu- tion here today. It is very powerful, es- out of poverty, we have to see that nity is different. Some are higher and pecially her own personal explanation they have education and training to some are lower, and each State can of how much the program meant to her qualify for jobs that pay a livable look at that individually. and her young family. I think that is the message that we wage. I know what it means to need a leg Mr. Speaker, to that end I have in- up, to need some help, to hit hard have to carry to our colleagues, that troduced legislation called the Edu- times and realize that there is no place these individuals who are on welfare cation Counts Act. What this does is else to go but to one’s government for having hard times, they are worthy allows education activities to count as help. parents. They care about their chil- work activities and not be counted Mr. Speaker, 35 years ago my chil- dren. They do not want to do anything against a welfare recipient who is dren’s father left us when my children to damage their future; but in many cases they need the time and the edu- going to school in order in the long run were 1, 3 and 5. He was emotionally and cation, they need the training and they to earn a real living. Rather than pe- mentally ill, and would not get help for need the assurance that there is qual- nalize them, the clock is ticking and his illness, and plain abandoned us. ity child care before they are forced off her welfare limits are disappearing Lucky me, I had good job skills, some college education; and I was able to go to work. while she is at school, I think that we I thank the gentlewoman for her con- to work because my children were sole- should stop the clock entirely because tribution to this afternoon. We will en- ly my responsibility. It never entered only by giving women access to edu- gage the House, I am sure, on many of my mind that I was not going to take cation and training will they have the these issues as we go to our markup in care of them. background and skills needed for jobs the committee and full committee and In order to have the health care that that pay a livable wage so they can be- eventually on the floor. come self-sufficient. we needed and the child care coverage Ms. WOOLSEY. Mr. Speaker, I thank Also, if we expect women to go to and the food stamps, I went on Aid for the gentlewoman and look forward to school or to go to work, in particular, Dependent Children while I was work- working with her in getting the mes- because that is what the goal of the ing. Without that, we would not be sage across that the enemy is poverty, President’s plan is, to put everybody where we are today. That was exactly the enemy is not welfare or the welfare into jobs, whether or not those jobs pay the safety net that it took, and it took recipient. The enemy is poverty. If we a livable wage, and if we want families 3 years for this mom with an edu- can get that message across and do to transition into self-sufficiency, we cation. I was very healthy; my children something about it, we will have have to make sure that we have good were healthy. Members have to know I helped welfare recipients as well as the child care available, quality child care was assertive. I could get through the working poor. and enough child care because we have system. I knew what needed to be done, Mrs. MINK of Hawaii. Mr. Speaker, I to ensure that moms can free their but I could not do it without that help. think all of us want to do what we can minds when they are at work and know And that was 35 years ago. It is way to provide a safety net. Every Presi- that their children are well cared for. more difficult for young mothers now. dent that I have worked with talks By quality and availability I mean also It has never entered my mind, I did it, about the necessity of a social safety nighttime work and weekend work. so can you. net. That is really all that the welfare That is very important. Lucky me, I have four great, grown program is. It is a safety net for fami- A lot of welfare moms are going into children; and I am a Member of Con- lies that have fallen on hard times, jobs working weekends and at night, gress. My kids are successful in what have recently gotten divorced, or lost a and there is no child care available for they do in their lives, and I am here as family member, as my colleague ex- them and for their children. We cannot a Member of the House of Representa- plained in her situation; and they need afford to leave our children behind, and tives; and I can tell Members, we have a helping hand. They should not be what is happening in the President’s paid back what the government in- treated as though they are of less proposed welfare bill is flat-funding vested in us many, many, many times worth and dignity than all of us. We child care, which does not account for over. But I can also tell Members if we want their children to have the benefit any increase in costs; and in the long had not had that help, I do not know of the best possible family situation run, it means a cut in child care when what we would have done. that they could have. we need an increase because we are in- Mr. Speaker, I ask the public and I In talking about welfare benefits, I creasing the number of hours that ask my colleagues, please, please, do think Members have the feeling that these moms are expected to go to work. not be hesitant to invest in young fam- there is this huge amount of money Just as welfare recipients need to be ilies and in moms who have fallen on that is being remitted to the families held accountable for working their way hard times. Do not assume that if on welfare, and that is certainly not off welfare, States have to be held ac- someone is having a bad time, they did true. The amounts of money that are countable for how they use the tax- it on their own and deserve it, and if allocated per month can be gotten by payers’ money earmarked for welfare they were worth their salt they would downloading the Congressional Re- programs. The current system rewards not be there in the first place because search Service. It has a list of each H1278 CONGRESSIONAL RECORD — HOUSE April 11, 2002 State and what they pay each month to want to do is to give these families the to match the requirements of the law a family, family of one, two, three, hope and the realization that our gov- with their responsibilities for their four, five or six. Let us pick a family of ernment policy is going to recognize families. three, that is, a single mom and two self-betterment. I am delighted that we are joined children. Alabama’s monthly benefit And so if a woman, a single parent, here by my dear friend, the distin- for a family with two children is $164. wants to go to college, get a degree in guished gentlewoman from North Caro- One is barely able to keep oneself to- nursing or some other profession, that lina (Mrs. CLAYTON) who has, I am sure, gether with that amount of money; and should be encouraged, not discouraged many words of advice to give us on this yet we are saying to these families by not considering it part of the pro- very, very important area, particularly that they must go out to work and im- gram. Our bill is very modest. The gen- rural America which I was just talking prove themselves. Arkansas is $204 a tlewoman from California (Ms. WOOL- about. month; Delaware, $338; Florida, $303; SEY) and myself in our bills provide Mrs. CLAYTON. I want to thank the Idaho, $293; Indiana, $288; Kentucky, that education is a work activity. So gentlewoman very much for holding $262; Louisiana, $240; Mississippi, $170; when the law says you must be in a this special order and raising this Missouri, $292; North Carolina, $272; work activity, going to school con- whole issue of welfare reform and giv- Ohio, $373; Oklahoma, $292; South Caro- stitutes a work activity, and you can- ing us the opportunity, our colleagues lina, $203; Tennessee, $185; Texas, $201. not be penalized because you decided and the American people, to know that The list is available for public scru- that you wanted to go to school. The this is an issue that is being debated tiny. colleges can decide whether the indi- and which the President now has made I recite this list of those that are in vidual is sustaining herself by keeping a proposal. We know Ways and Means the lower threshold of monthly com- up her grades and attendance and so will be debating those areas and the pensation to give Members an idea that forth, and so those kinds of require- committee on which the gentlewoman we are not talking about very large ments can be levied. Going to college, from Hawaii serves, the Committee on sums of money that they are receiving that family will have Pell grants, un- Education and the Workforce. to just tide themselves over. In addi- doubtedly, being on welfare. That will We have a unique opportunity in the tion, they have Medicaid and food help to pay the tuition and other costs reauthorization of welfare-to-work. stamps, and usually housing assistance of getting there, transportation and so The whole idea for welfare-to-work was as well to help them through. forth. She can probably qualify for indeed to move people from dependency So this work idea is to try to uplift work-study, so that she can produce to independence. In our State we call it them from their condition of depend- some work hours and earn some money Work First. You have an opportunity ency upon the State, but it is not a lot at the same time. This is the sort of to try to find a job. The requirement of money. So the notion is how do we support that a safety network ought to was to make sure you entered into uplift them; and it seems to me that provide. those kinds of activities to prepare you the most logical thing that we can do The TANF legislation that we passed for a job, and the State, supposedly is to help them improve themselves in 1996 completely ignores this part of with the assistance of the Federal Gov- through education and to fill the jobs our government responsibility. We ernment, was supposed to do that. that are available in teaching, nursing, have passed countless pieces of legisla- There was not a policy that we were in high tech, in other kinds of occupa- tion having to do with higher edu- going to move people out of poverty. tions that are available. cation, expanding the opportunity of That would have been a better one, but The requirement of 40 hours is really young people to go to college. It should it was that we were moving people to punitive in rural America. I represent a be no different for a family person who work. rural district. I do not see how we are is on the welfare rolls. That person But we have learned some things dur- going to find jobs to fill the require- ought to have the same encouragement ing that process. I would caution us ment of 40 hours. We cannot even fill to get off welfare by getting an edu- that even some of the things we have the 30 hours in my remote areas on the cation that will then sustain that fam- learned from State studies may not be Big Island, on Maui, Molokai, and ily at a salary that would lift them up as reflective as it should be, because Kauai. from poverty so that they do not have when you understand that our State as to rely on food stamps, housing sub- a whole may have some areas that 1745 b sidies, earned income tax credit and all work better than others, we have some So I think that there has to be flexi- the rest of it. parts of our States that have more op- bility. Like my colleague the gentle- So I think that this comprehensive portunities for jobs, more opportuni- woman from California (Ms. WOOLSEY) look at what welfare reform should be, ties to move people to work, and you suggested, we have to give States flexi- not just getting any job, but lifting have some places where I come from, bility. We know that they can exempt people out of poverty, enhancing their the rural areas, where there is indeed a 20 percent of their population. That is condition and making it possible for great decline in low-skill jobs. The already in the old law. No one seems to the children of these families to have economy, as we know, has depressed be changing that. We have to bear in the kind of family life, family sta- even those jobs who were upward mo- mind that in some areas of America it bility, with somebody who will be able bile and diminished agriculture oppor- is just not possible to get a job, so we to nurture them, carry them on to col- tunity, so we are having less opportu- have to think of other alternatives. lege because they themselves have had nities to move people into. Certainly an alternative is through that opportunity. Also, when we look at what we are education to uplift them, to qualify It is this outlook that we hope to en- doing or, better still, we are looking at them for professions and careers. If we gage this House further upon as we how Governors in the States may use were satisfied with just a poverty-level take this bill up in subcommittee and waivers. They use waivers in a variety compensated job and say, well, we have full committee and bring the matter to of ways. Sometimes it is more of an ad- done our duty under TANF, then what the floor. It is expected that this legis- vantage to the Governor or a State we are saying is that for the rest of lation will come before us sometime in than it is to the individual commu- time, this family is going to receive early or mid-May. So we have not nities for that. For instance, they can food stamps, Medicaid, housing support much time. I invite the enlarged com- use waivers to exempt areas that have and other kinds of support services de- munity to contribute their thoughts a high concentration of unemployment. pendent upon a condition of poverty. If and views, because there are many, But if the State looks at it as a whole, they work, they will also get earned in- many organizations out there that they may not see that, because the come tax credit refunds, $2,000, $3,000, have contributed already, in the hun- State as a whole may be in that. So $4,000, $5,000 depending on how much dreds of meetings that they have con- States have not used those waivers to they earn and how many dependents ducted where they have consulted with target resources strategically where they have. welfare recipients, and we have learned people have opportunities or people This is not the kind of policy that I so much from them about the agony of have a lack of opportunities. I think we think we want to perpetuate. What we raising families and how difficult it is have some opportunity to refine that. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1279 The area that I am most interested economy of our district but also to the tools to supplement a very low-wage in, and I am interested in all of them, stability of that person working and job. but is the area of day care and child not going from welfare to work, laid b 1800 care. The child care capacity for par- off. If we understand, if we invest in ents who have very young children, if their upward mobility by providing Mrs. MINK of Hawaii. Mr. Speaker, we expect them to be independent, they them training on a continuous basis, reclaiming my time, I commend the need to have the assurance that there we are investing not only in the sta- gentlewoman for her contributions, is adequate, safe, child care and afford- tistic of movement from welfare, but and I certainly hope that in her con- able child care. In rural areas, just hav- we are investing in the vitality of our ference on the farm bill that she can work this alignment so that the fami- ing the access almost to any child care community and a statistical reality lies that are moving off of welfare get- is not there. And then to have the as- that these people will stay as employed ting their minimum wage job will have surance that you have placed your persons. I commend the gentlewoman for giv- easier access to food stamps. child in a qualified, well-equipped, de- Right now we are told that many of ing attention to this. I just urge as you signed, child care facility is almost re- them fall between the cracks, because go forward that you will consider those mote, particularly when you under- the eligibility requirements are so dif- infrastructure needs as well as the dis- stand that child care gets to be expen- ferent and nobody is there to help them tance and the economies of scale and sive. qualify, so many of these families, what that means in putting the same And if you are not investing in train- though they are eligible income-wise, kinds of programs that we would have ing the personnel, if you are not invest- are not really getting this benefit at ing in the infrastructure of the commu- in urban areas, where things are rel- all. nity college, or you are not creating atively close to each other, and there Mrs. CLAYTON. We are very hopeful, opportunities for nonprofits or faith- may be a sufficient infrastructure and I think it is moving in the right di- based organizations to provide that there that would accommodate day rection. child care, saying that people should care, where there are well-established Mrs. MINK of Hawaii. Wonderful. We find child care without providing for it church day cares or well-established had the opportunity to hear from Sec- I think is not only grossly negligent, I nonprofits, and even for-profits. retary Tommy Thompson the other think it is unforgivable when we are They are not in my communities, un- day. He came and testified about the expecting that this should be strength- fortunately. I wish they were there. We importance of child care. I want to say ening families. have to find a way to give some incen- that I was very impressed with the pas- One whole premise is strengthening tives to those nonprofits or faith-based sion with which he made his comments families. Very few families I know of organizations investing in child care. about child care, that you cannot have think they are strengthening their We have to find ways of accommo- a national policy that requires work of family if they throw their kids at just dating transportation in rural areas for single-parent families unless you pro- any place without regard to the quality the purpose of both education as well vide adequate quality child care. So I and the safety of it, and then when you as for employment. We also have to think we have a friend there as far as are not affording the kind of reim- find adequate resources to reimburse the concept is concerned, but the me- bursement. people for the day care. chanics of making this statement a re- As you begin to craft the bill, I hope Finally, the education of our mothers ality for families is still short. It is not you will understand that there is some and people who are dependent is not there. differential between our urban commu- only investing in that individual, In our bill, H.R. 3113, we say that if nities and our rural communities. The which is worthy in and of itself, but we the government is not able to find suffering may be the same. I am not ar- are investing in the vitality of that child care for a family that it is requir- guing against anything that should go community and the stability of that ing work activity out of, then the fam- in the urban areas, but the infrastruc- community. ily is exempt from finding work activ- ture is different. We have to travel Again, I commend the gentlewoman ity until such child care can be made longer periods of time, for a longer dis- for her leadership in this area. By the available, and the clock stops. It seems tance, for health care, for education, way, I say to you, we are trying to re- to me that is simple justice. If we be- for shopping. We travel for job opportu- lieve the responsibility of food stamps lieve that the work requirement can- nities. If you are going to ignore the out of day care. I am a part of the agri- not be enforced without child care, lack of transportation to facilitate culture conference committee, and then we cannot put sanctions and pen- this, then you will have put my district part of the idea as we considered that alties upon the family for something and my communities within my dis- was to try to reform and bring new over which they have no control. trict at a disadvantage. quality to food stamps. You remember, So I am hoping that we can work to- So in order to make sure that there food stamps and welfare reform are gether with the administration and is access to that, child care must be partners. If you examine who is getting with Secretary Thompson to clarify there. That means providing sufficient food stamps now, a little better than this, because he feels that this is al- money for training as well as reim- half of the people who are getting food ready current law, that if you cannot bursement for opportunities. stamps are working families. And if get child care, you are not required to Then when you think about actually you take who those people may be, go to work. But there is nothing in the getting to a job, if I live 10 miles from they are children of working families legislation that exempts such a family the Wal-Mart that is going to hire me, as well as their parents; and then sen- from sanctions or from other kinds of by the way for $7 an hour, chances of ior citizens and children, just combine prohibitions. So I hope we can work me getting a car on $7 and paying for those alone, are over 60 percent. that out. it, hey, as our young kids say, we need So making food stamps and the tran- Child care is so important. There is a to get real if we really want this to sition from welfare or Work First to set-aside that requires the States, from happen. work, having the ability to supplement the Federal monies it gets under I think we want to make the welfare that $7-an-hour job I talked about with TANF, to improve child care under the bill even better. We just do not want to food stamps with a family of three, quality child care requirement. And I have statistics that say we have moved that is a big help. And so we want to think that we need to up that ante, people off of welfare. Moving people off make sure that that goes in tandem perhaps double it from 4 to 8 percent, welfare is much easier, I submit to you, with it. Just as Medicaid has been so that more attention is given to qual- than moving people off welfare into made a little easier for the transition, ity child care services and not just sim- meaningful work, where they can move we are trying to make an alignment ply child care and assume that the from dependency to self-sufficiency, between Medicaid and welfare reform State has fulfilled its responsibility by working, advancing themselves. and food stamps, so that this will be a finding any child care that might be Finally, the whole issue of education part of the package we put together in available. of the welfare mother or the welfare enabling the tools for a person moving I think that these parents are enti- adult, that is critical not only to the from welfare to have those additional tled to have quality child care, and we H1280 CONGRESSIONAL RECORD — HOUSE April 11, 2002 should be moving in that direction. 27. Family Violence Prevention Fund. SPECIAL ORDERS GRANTED Part of the problem is that we are not 28. Florida CHAIN (Communications By unanimous consent, permission to Health Information Action Network). able to pay the individuals who work in address the House, following the legis- these child care centers sufficient in- 29. Friends Committee on National Legis- lation (Quaker). lative program and any special orders come to make it worthwhile for them 30. (GROWL) Grass Roots Organizing for heretofore entered, was granted to: to qualify as early childhood education Welfare Leadership. (The following Members (at the re- personnel, so with their low pay and 31. Harbor Communities Overcoming Vio- quest of Mr. HOYER) to revise and ex- low expectations, we cannot upgrade lence (HarborCOV). tend their remarks and include extra- the child care centers in the way we 32. Harlem Fight Back. neous material:) should be. 33. HELP USA. Ms. NORTON, for 5 minutes, today. There are many aspects to this issue 34. Human Services Coalition of Dade Mr. HINOJOSA, for 5 minutes, today. that are very important. The stop-the- County, Inc. Ms. KAPTUR, for 5 minutes, today. 35. Hunger Action Network of NYS. clock things on education and child Ms. MCKINNEY, for 5 minutes, today. 36. Jewish Women International. (The following Members (at the re- care, drug treatment services that 38. Los Angeles Coalition to End Hunger & quest of Mr. FOLEY) to revise and ex- might be needed by that family, domes- Homelessness. tic violence, sexual abuse conditions, 39. Mothers on the Move Committee of the tend their remarks and include extra- any severe mental illness or physical Philadelphia Unemployment Project. neous material:) Mr. PENCE, for 5 minutes, today. illness ought to exempt that family 40. National Association of Service and Conservation Corps. Mr. NETHERCUTT, for 5 minutes, from the work requirements. today. So I hope that we look at this legisla- 41. National Association of Commissions for Women. Mr. FOLEY, for 5 minutes, today. tion from the perspective of the family 42. National Center on Poverty Law. Mr. SIMMONS, for 5 minutes, today. and how hard they are struggling to 43. National Coalition Against Domestic Mr. HUNTER, for 5 minutes, today. comply, rather than impose new re- Violence. f quirements that are based upon per- 44. National Coalition of 100 Black Women, centage of participation or perform- Metropolitan Atlanta Chapter BILLS PRESENTED TO THE ance rates that the States are required 45. National Council of La Raza. PRESIDENT to do. Rural America cannot possibly 46. National Employment Law Project. Jeff Trandahl, Clerk of the House re- meet the 70 percent work requirement 47. National League of Women Voters of ports that on April 9, 2002 he presented the U.S. to the President of the United States, that the administration is asking. 48. National Organization for Women. There are simply no jobs to which 49. National Urban League. for his approval, the following bills. these individuals could find any sort of 50. National Welfare Rights Union. H.R. 1432. To designate the facility of the satisfaction of employment. 51. NETWORK, A National Catholic Social United States Postal Service located at 3698 So I think we have to bear that in Justice Lobby. Inner Perimeter Road in Valdosta, Georgia, mind and find some way in which we 52. New Directions Center. as the ‘‘Major Lyn McIntosh Post Office 53. New Mexico Center on Law & Poverty. Building’’. can soften the requirement based upon H.R. 1748. To designate the facility of the flexibilities given to the States or 54. Nontraditional Employment for Women. United States Postal Service located at 805 waiver provisions given to the States 55. NOW Legal Defense and Education Glen Burnie Road in Richmond, Virginia, as where we have large rural populations Fund. the ‘‘Tom Bliley Post Office Building’’. H.R. 1749. To designate the facility of the with high unemployment rates. I think 56. North Carolina Coalition Against Do- United States Postal Service located at 685 that is a very important quest that we mestic Violence. Turnberry Road in Newport News, Virginia, 57. Ohio Domestic Violence Network. must make in this reauthorization. as the ‘‘Herbert H. Bateman Post Office 58. Oregon Law Center. Mr. Speaker, I thank you very much Building’’. for giving me the opportunity to ex- 59. Public Justice Center. H.R. 2577. To designate the facility of the pound on an issue that is very impor- 60. Research Institute for Independent Liv- United States Postal Service located at 310 ing. South State Street in St. Ignace, Michigan, tant to me and to 90 other Members of 61. RESULTS. the House. I include for the RECORD a as the ‘‘Bob Davis Post Office Building’’. 62. Rural Law Center of NY, Inc. H.R. 2876. To designate the facility of the list of the 80 organizations that en- 63. Safe Horizon. United States Postal Service located in Har- dorse H.R. 3113. 64. Southeast Asia Resource Action Center. lem, Montana, as the ‘‘Francis Bardanouve GROUPS THAT HAVE ENDORSED H.R. 3113, THE 65. The Miles Foundation. United States Post Office Building’’. TANF REAUTHORIZATION ACT 66. The Union of American Hebrew Con- H.R. 2910. To designate the facility of the 1. Acercamiento Hispano/Hispanic Out- gregations. United States Postal Service located at 3131 reach. 67. Unitarian Universalist Association of South Crater Road in Petersburg, Virginia, 2. African American Women’s Clergy Assn. Congregations. as the ‘‘Norman Sisisky Post Office Build- 3. American Civil Liberties Union. 68. United States Student Association. ing’’. H.R. 3072. To designate the facility of the 4. Americans for Democratic Action. 69. Welfare Made A Difference Campaign. United States Postal Service located at 125 5. American Friends Service Committee. 70. Welfare Rights Organizing Coalition. Main Street in Forest City, North Carolina, 6. Arizona Coalition Against Domestic Vio- 71. Welfare-to-work Advocacy Project. as the ‘‘Vernon Tarlton Post Office Build- lence. 72. Wider Opportunities for Women. ing’’. 7. Ayuda Inc. 73. Wisconsin Council on Children and Families. H.R. 3379. To designate the facility of the 8. Business and Professional Women/USA. United States Postal Service located at 375 9. California Food Policy Advocates. 74. Women and Poverty Public Education Initiative. Carlls Path in Deer Park, New York, as the 10. California Welfare Justice Coalition. ‘‘Raymond M. Downey Post Office Building’’. 11. Campaign for America’s Future. 75. Women’s Committee of 100. 12. Center for Battered Women’s Legal 76. Women Employed. f 77. Women Empowered Against Violence, Services at Sanctuary for Families. ADJOURNMENT 13. Center for Community Change. Inc. (WEAVE). 14. Center for Third World Organizing. 78. Women’s Housing and Economic Devel- Mrs. MINK of Hawaii. Mr. Speaker, I 15. Center for Women Policy Studies. opment Corporation (WHEDCO). move that the House do now adjourn. 16. The Center for Women and Families. 79. Workforce Alliance. The motion was agreed to; accord- 17. Center on Fathers, Families and Public 80. YWCA of the USA. ingly (at 6 o’clock and 5 minutes p.m.), Policy. f under its previous order, the House ad- 18. Central Conference of American Rabbis. journed until Monday, April 15, 2002, at LEAVE OF ABSENCE 19. Chicago Women in Trades. 2 p.m. 20. Child Care Action Campaign. By unanimous consent, leave of ab- f 21. Child Care Law Center. sence was granted to: 22. Choice USA. Mrs. ROUKEMA (at the request of Mr. EXECUTIVE COMMUNICATIONS, 23. Church Women United. ETC. 24. College Opportunity to Prepare for Em- ARMEY) for today on account of illness. ployment (COPE). Mr. BUYER (at the request of Mr. Under clause 8 of rule XII, executive 25. Communications Workers of America. ARMEY) for today after 1:00 p.m. on ac- communications were taken from the 26. Covenant House Washington. count of medical reasons. Speaker’s table and referred as follows: April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1281 6143. A letter from the Assistant General Services—2002 Update—received March 14, the Interior to conduct a study of the suit- Counsel for Regulatory Law, Department of 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the ability and feasibility of establishing the Energy, transmitting the Department’s final Committee on Transportation and Infra- Muscle Shoals National Heritage Area in rule—Industrial Hygiene Practices [DOE– structure. Alabama, and for other purposes (Rept. 107– STD–6005–2001] received April 5, 2002, pursu- 6157. A letter from the Paralegal Spe- 398). Referred to the Committee of the Whole ant to 5 U.S.C. 801(a)(1)(A); to the Committee cialist, FAA, Department of Transportation, House on the State of the Union. on Energy and Commerce. transmitting the Department’s final rule— Mr. YOUNG of Alaska: Committee on 6144. A letter from the Assistant General Airworthiness Directives; Pilatus Britten- Transportation and Infrastructure. House Counsel for Regulatory Law, Department of Norman Limited BN–2, BN–2A, BN–2B, BN– Concurrent Resolution 347. Resolution au- Energy, transmitting the Department’s final 2T, and BN2A MK. III Series Airplanes thorizing the use of the Capitol grounds for rule—Management Assessment And Inde- [Docket No. 2001–CE–39–AD; Amendment 39– the National Peace Officers’ Memorial Serv- pendent Assessment Guide [DOE–STD–6005– 12639; AD 2002–02–11] (RIN: 2120–AA64) re- ice (Rept. 107–399). Referred to the House Cal- 2001] received April 5, 2002, pursuant to 5 ceived March 19, 2002, pursuant to 5 U.S.C. endar. U.S.C. 801(a)(1)(A); to the Committee on En- 801(a)(1)(A); to the Committee on Transpor- Mr. YOUNG of Alaska: Committee on ergy and Commerce. tation and Infrastructure. Transportation and Infrastructure. House 6145. A letter from the Principal Deputy 6158. A letter from the Paralegal Spe- Concurrent Resolution 348. Resolution au- Associate Administrator, Environmental cialist, FAA, Department of Transportation, thorizing the use of the Capitol grounds for Protection Agency, transmitting the Agen- transmitting the Department’s final rule— the National Book Festival (Rept. 107–400). cy’s final rule—Approval and Promulgation Airworthiness Directives; McDonnell Doug- Referred to the House Calendar. of State Plans for Designated Facilities and las Model DC–8 Series Airplanes [Docket No. Mr. YOUNG of Alaska: Committee on Pollutants; States of Kansas, Missouri and 97–NM–242–AD; Amendment 39–12646; AD Transportation and Infrastructure. House Nebraska; Correction [FRL–7161–9] received 2002–03–05] (RIN: 2120–AA64) received March Concurrent Resolution 354. Resolution au- March 19, 2002, pursuant to 5 U.S.C. 19, 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to thorizing the use of the Capitol Grounds for 801(a)(1)(A); to the Committee on Energy and the Committee on Transportation and Infra- the District of Columbia Special Olympics Commerce. structure. Law Enforcement Torch Run (Rept. 107–401). 6146. A letter from the Assistant Secretary 6159. A letter from the Paralegal Spe- Referred to the House Calendar. Mr. YOUNG of Alaska: Committee on for Legislative Affairs, Department of State, cialist, FAA, Department of Transportation, Transportation and Infrastructure. House transmitting the Department’s final rule— transmitting the Department’s final rule— Concurrent Resolution 356. Resolution au- Schedule of Fees for Consular Services, De- Airworthiness Directives; Airbus Model A330 thorizing the use of the Capitol Grounds for partment of State and Overseas Embassies and A340 Series Airplanes [Docket No. 2001– the Greater Washing Soap Box Derby (Rept. and Consulates—received March 14, 2002, pur- NM–153–AD; Amendment 39–12635; AD 2002– 107–402). Referred to the House Calendar. 02–07] (RIN: 2120–AA64) received March 19, suant to 5 U.S.C. 801(a)(1)(A); to the Com- Mr. BOEHNER: Committee on Education 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the mittee on International Relations. and the Workforce. H.R. 3839. A bill to reau- 6147. A letter from the Assistant Secretary Committee on Transportation and Infra- thorize the Child Abuse Prevention and for Legislative Affairs, Department of State, structure. Treatment Act, and for other purposes; with 6160. A letter from the Paralegal Spe- transmitting the Department’s final rule— an amendment (Rept. 107–403). Referred to cialist, FAA, Department of Transportation, Amendment to the List of Proscribed Des- the Committee of the Whole House on the transmitting the Department’s final rule— tinations—received March 19, 2002, pursuant State of the Union. to 5 U.S.C. 801(a)(1)(A); to the Committee on Airworthiness Directives; Boeing Model 707 Mr. BOEHNER: Committee on Education International Relations. and 720 Series Airplanes [Docket No. 2000– and the Workforce. H.R. 3801. A bill to pro- 6148. A letter from the Chairman, Broad- NM–381–AD; Amendment 39–12630; AD 2002– vide for improvement of Federal education casting Board Of Governors, transmitting 02–02] (RIN: 2120–AA64) received March 19, research, statistics, evaluation, information, the Annual Program Performance Report on 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to the and dissemination, and for other purposes; the FY 2001 Performance Plan; to the Com- Committee on Transportation and Infra- with an amendment (Rept. 107–404). Referred mittee on Government Reform. structure. to the Committee of the Whole House on the 6161. A letter from the Paralegal Spe- 6149. A letter from the Acting Chairman, State of the Union. Consumer Product Safety Commission, cialist, FAA, Department of Transportation, Mr. YOUNG of Alaska: Committee on transmitting the Fiscal Year 2001 Annual transmitting the Department’s final rule— Transportation and Infrastructure. H.R. 3983. Program Performance Report; to the Com- Standard Instrument Approach Procedures; A bill to ensure the security of maritime mittee on Government Reform. Miscellaneous Amendments [Docket No. transportation in the United States against 6150. A letter from the Director, Holocaust 30298; Amdt. No. 2096] received March 19, 2002, acts of terrorism, and for other purposes; Memorial Museum, transmitting the Annual pursuant to 5 U.S.C. 801(a)(1)(A); to the Com- with an amendment (Rept. 107–405). Referred Performance Report for Fiscal Year 2001; to mittee on Transportation and Infrastruc- to the Committee of the Whole House on the the Committee on Government Reform. ture. State of the Union. 6151. A letter from the Director, Institute 6162. A letter from the Paralegal Spe- of Museum and Library Services, transmit- cialist, FAA, Department of Transportation, f ting the FY 2001 Annual Program Perform- transmitting the Department’s final rule— PUBLIC BILLS AND RESOLUTIONS ance Report; to the Committee on Govern- Airworthiness Directives; Model HH–1K, TH– ment Reform. 1F, TH–1L, UH–1A, UH–1B, UH–1E, UH–1F, Under clause 2 of rule XII, public 6152. A letter from the Administrator, Na- UH–1H, UH–1L, UH–1P, and Southwest Flor- bills and resolutions were introduced tional Aeronautics and Space Administra- ida Aviation Model SW204, SW204HP, SW205, and severally referred, as follows: tion, transmitting the Administration’s FY and SW205A–1 Helicopters, Manufactured by By Mr. SENSENBRENNER: 2001 Performance Report; to the Committee Bell Helicopter Textron, Inc. for the Armed H.R. 4167. A bill to extend for 8 additional on Government Reform. Forces of the United States [Docket No. months the period for which chapter 12 of 6153. A letter from the Secretary, Depart- 2001–SW–14–AD; Amendment 39–12628; AD title 11 of the United States Code is reen- ment of the Interior, transmitting the De- 2002–01–31] (RIN: 2120–AA64) received March acted; to the Committee on the Judiciary. partment’s legislative proposal to reauthor- 19, 2002, pursuant to 5 U.S.C. 801(a)(1)(A); to By Mr. DELAY: ize appropriations for the Bureau of Land the Committee on Transportation and Infra- H.R. 4168. A bill to extend the suspension of Management under the Federal Land Policy structure. duty on Methyl thioglycolate; to the Com- and Management Act; to the Committee on f mittee on Ways and Means. Resources. By Mr. PAUL (for himself, Mr. BARR of 6154. A letter from the Secretary, Depart- REPORTS OF COMMITTEES ON Georgia, Mr. HOSTETTLER, Mr. PETRI, ment of Commerce, transmitting the bien- PUBLIC BILLS AND RESOLUTIONS Mr. GOODE, Mr. WAMP, Mr. BARTLETT nial report regarding the activities of the Under clause 2 of rule XIII, reports of of Maryland, Mr. NORWOOD, Mr. National Oceanic and Atmospheric Adminis- committees were delivered to the Clerk KERNS, Mr. FLAKE, Mr. CRANE, Mr. tration’s Chesapeake Bay Office Activities; KINGSTON, Mr. MANZULLO, Mr. DUN- for printing and reference to the proper to the Committee on Resources. CAN, Mr. SCHAFFER, Mr. WELDON of 6155. A letter from the Assistant Attorney calendar, as follows: Florida, Mr. SESSIONS, Mr. ROHR- General, Department of Justice, transmit- Mr. SENSENBRENNER: Committee on the ABACHER, and Mr. TANCREDO): ting a draft of proposed legislation to estab- Judiciary. H.R. 476. A bill to amend title 18, H.R. 4169. A bill to provide that the Inter- lish the crime of attempted international pa- United States Code, to prohibit taking mi- national Criminal Court is not valid with re- rental kidnapping, and for other purposes; to nors across State lines in circumvention of spect to the United States, and for other pur- the Committee on the Judiciary. laws requiring the involvement of parents in poses; to the Committee on International 6156. A letter from the Chairman, STB, De- abortion decisions (Rept. 107–397). Referred Relations. partment of Transportation, transmitting to the Committee of the Whole House on the By Mr. FLETCHER: the Department’s final rule—Regulations State of the Union. H.R. 4170. A bill to amend the Public Governing Fees For Services Performed In Mr. HANSEN: Committee on Resources. Health Service Act to provide for coopera- Connection With Licensing And Related H.R. 2628. A bill to direct the Secretary of tive governing of health insurance policies H1282 CONGRESSIONAL RECORD — HOUSE April 11, 2002

by primary and secondary States and to pro- State law, and for other purposes; to the MCGOVERN, Mr. MEEHAN, Mr. MORAN vide assistance to States to promote the es- Committee on Ways and Means. of Virginia, Mrs. MORELLA, Mr. tablishment of qualified high risk pools, to By Mr. GUTKNECHT (for himself, Mr. PASCRELL, Mr. SERRANO, Mr. SHAYS, provide financial incentives to encourage GILMAN, Mr. SWEENEY, Mr. SABO, Mr. Mr. STARK, Mrs. TAUSCHER, Mr. WAX- health coverage for employees and individ- SANDERS, and Mr. HASTINGS of Flor- MAN, Mr. WEXLER, and Ms. WOOLSEY): uals, and for other purposes; to the Com- ida): H.R. 4193. A bill to ensure greater account- mittee on Energy and Commerce, and in ad- H.R. 4181. A bill to amend the Internal Rev- ability by licensed firearms dealers; to the dition to the Committee on Ways and Means, enue Code of 1986 to prohibit pension plan Committee on the Judiciary. for a period to be subsequently determined amendments reducing the rate of future ben- By Mr. LEWIS of Georgia: by the Speaker, in each case for consider- efit accrual, subject to a safe harbor where H.R. 4194. A bill to amend the Internal Rev- ation of such provisions as fall within the ju- the plan provides notice of the amendment enue Code of 1986 to provide an increased risdiction of the committee concerned. and an election to continue benefit accruals low-income housing credit for property lo- By Mr. BAKER: under the former plan instead of the amend- cated immediately adjacent to qualified cen- H.R. 4171. A bill to suspend temporarily the ed plan; to the Committee on Ways and sus tracts; to the Committee on Ways and duty on 9,10-Anthracenedione, 1,8- Means. Means. bis(phenylthio)-; to the Committee on Ways By Ms. HARMAN: By Mr. MANZULLO: and Means. H.R. 4182. A bill to suspend temporarily the H.R. 4195. A bill to suspend temporarily the By Mr. BAKER: duty on cases for certain toys; to the Com- duty on certain custom-made automotive H.R. 4172. A bill to suspend temporarily the mittee on Ways and Means. magnets; to the Committee on Ways and duty on a mixture of 9,10-Anthracenedione, By Ms. HARMAN: Means. 1,8-dihydroxy-4-nitro-5-(phenylamino)- and H.R. 4183. A bill to suspend temporarily the By Mr. MANZULLO: 9,10-Anthracenedione, 1,5-diaminochloro-4,8- duty on bags for certain toys; to the Com- H.R. 4196. A bill to suspend temporarily the dihydroxy-; to the Committee on Ways and mittee on Ways and Means. duty on certain epoxy molding compounds; Means. By Ms. HARMAN: to the Committee on Ways and Means. By Mr. BAKER: H.R. 4184. A bill to suspend temporarily the By Mr. MARKEY (for himself and Mr. H.R. 4173. A bill to suspend temporarily the duty on certain children’s products; to the WILSON of South Carolina): duty on Chromate(3-), bis[3-(hydroxy- Committee on Ways and Means. H.R. 4197. A bill to suspend temporarily the .kappa.O)-4-[[2-(hydroxy-.kappa.O)-1- By Ms. HARMAN: duty on certain high-performance loud- naphthal enyl]]azo-.kappa.N1]-7-nitro-1- H.R. 4185. A bill to suspend temporarily the speakers; to the Committee on Ways and naphthalenesulfonato(3-)]-,tri sodium; to the duty on certain children’s products; to the Means. Committee on Ways and Means. Committee on Ways and Means. By Mr. MARKEY (for himself and Mr. By Mr. BAKER: By Ms. HARMAN: WILSON of South Carolina): H.R. 4198. A bill to suspend temporarily the H.R. 4174. A bill to suspend temporarily the H.R. 4186. A bill to suspend temporarily the duty on parts for use in the manufacture of duty on a mixture of 9,10-Anthracenedione, duty on cases for certain children’s products; certain high-performance loudspeakers; to 1,5-dihydroxy-4-nitro-8-(phenylamino)-and to the Committee on Ways and Means. the Committee on Ways and Means. 9,10-Anthracenedione, 1,8-dihydroxy-4-nitro- By Mr. HORN (for himself, Ms. By Mrs. MCCARTHY of New York: 5-(phenylamino)-; to the Committee on Ways SCHAKOWSKY, Mr. BURTON of Indiana, H.R. 4199. A bill to suspend temporarily the and Means. Mr. WAXMAN, Mr. OSE, Mr. FRANK, duty on Hydrated Hydroxypropyl By Mr. BARTON of Texas: Mr. MCDERMOTT, Mr. UDALL of Colo- Methylcellulose; to the Committee on Ways H.R. 4175. A bill to suspend temporarily the rado, Mr. BENTSEN, Mr. ALLEN, Mr. and Means. duty on hand held scanners; to the Com- BLAGOJEVICH, Mr. CLAY, Mr. By Mr. MCCRERY: mittee on Ways and Means. CUMMINGS, Mr. DAVIS of Illinois, Mr. H.R. 4200. A bill to suspend temporarily the By Mr. BARTON of Texas: KUCINICH, Mr. LANTOS, Mr. LYNCH, duty on dimethyldicykan; to the Committee H.R. 4176. A bill to suspend temporarily the Mrs. MALONEY of New York, Ms. NOR- on Ways and Means. duty on scanners not combined with a clock; TON, Mr. OWENS, Mr. TOWNS, Mr. By Mr. MCCRERY: to the Committee on Ways and Means. LATOURETTE, and Mr. BAIRD): H.R. 4201. A bill to suspend temporarily the By Mr. BARTON of Texas: H.R. 4187. A bill to amend chapter 22 of duty on triacetone diamine; to the Com- H.R. 4177. A bill to suspend temporarily the title 44, United States Code, popularly mittee on Ways and Means. duty on mobile based scanners valued at known as the Presidential Records Act, to By Mr. MCCRERY: more than $40; to the Committee on Ways establish procedures for the consideration of H.R. 4202. A bill to suspend temporarily the and Means. claims of constitutionally based privilege duty on Polycaprolactam-pigment con- By Mr. CHABOT: against disclosure of Presidential records; to centrate; to the Committee on Ways and H.R. 4178. A bill to extend the suspension of the Committee on Government Reform. Means. duty on chloro amino toluene; to the Com- By Mr. HOUGHTON: By Mr. MCCRERY: mittee on Ways and Means. H.R. 4188. A bill to suspend temporarily the H.R. 4203. A bill to suspend temporarily the By Mrs. CHRISTENSEN (for herself, duty on certain 12-volt batteries; to the duty on Polycaprolactam; to the Committee Mrs. JOHNSON of Connecticut, and Mr. Committee on Ways and Means. on Ways and Means. MCNULTY): By Mr. HULSHOF: By Mr. MCCRERY: H.R. 4179. A bill to amend the Harmonized H.R. 4189. A bill to suspend temporarily the H.R. 4204. A bill to suspend temporarily the Tariff Schedule of the United States with re- duty on cyclanilide; to the Committee on duty on Poly (hexamethylene adipamide); to spect to the production incentive certificate Ways and Means. the Committee on Ways and Means. program for watch and jewelry producers in By Mr. HULSHOF: By Mrs. MEEK of Florida: possessions of the United States, including H.R. 4190. A bill to suspend temporarily the H.R. 4205. A bill to authorize the Secretary the Virgin Islands, Guam, and American duty on ethoprop; to the Committee on Ways of Housing and Urban Development to per- Samoa; to the Committee on Ways and and Means. mit public housing agencies to transfer un- Means. By Mr. HULSHOF: used low-income rental assistance amounts By Mr. DOGGETT (for himself, Mr. H.R. 4191. A bill to suspend temporarily the for use under the HOME investment partner- SHAYS, Mr. MEEHAN, Mr. RANGEL, Mr. duty on foramsulfuron; to the Committee on ships program or for activities eligible for STARK, Mr. MATSUI, Mr. COYNE, Mr. Ways and Means. assistance from the public housing Capital LEVIN, Mr. MCDERMOTT, Mr. LEWIS of By Mr. KIND (for himself, Mrs. EMER- Fund; to the Committee on Financial Serv- Georgia, Mr. NEAL of Massachusetts, SON, Mr. PETRI, Mr. BAIRD, Mr. DAVIS ices. Mr. MCNULTY, Mr. JEFFERSON, Mr. of Florida, Mr. KUCINICH, Ms. LEE, By Mr. MOLLOHAN: TANNER, Mr. POMEROY, Mr. ALLEN, and Mr. SCHIFF): H.R. 4206. A bill to reduce temporarily the Mr. ANDREWS, Mr. BENTSEN, Mr. H.R. 4192. A bill to amend the Richard B. duty on ethylene/tetrafluoroethylene copoly- DAVIS of Florida, Mr. GONZALEZ, Mr. Russell National School Lunch Act to estab- mer (ETFE); to the Committee on Ways and GRAHAM, Mr. GREEN of Texas, Mr. lish pilot projects to support and evaluate Means. HALL of Ohio, Ms. JACKSON-LEE of the provision of before-school activities that By Ms. NORTON (for herself and Mrs. Texas, Mrs. MINK of Hawaii, Mr. advance student academic achievement and MORELLA): MOORE, Mr. PLATTS, Mr. SANDLIN, encourage the establishment of, and increase H.R. 4207. A bill to permit statues honoring and Mr. TURNER): participation in, school breakfast programs; citizens of the District of Columbia to be H.R. 4180. A bill to amend section 527 of the to the Committee on Education and the placed in Statuary Hall in the same manner Internal Revenue Code of 1986 to eliminate Workforce. as statues honoring citizens of the States are notification and return requirements for By Mr. LANGEVIN (for himself, Mr. placed in Statuary Hall, and for other pur- State and local political committees and ABERCROMBIE, Mr. BLAGOJEVICH, Ms. poses; to the Committee on House Adminis- candidate committees and avoid duplicate BROWN of Florida, Mr. CLAY, Mr. tration. reporting by certain State and local political CAPUANO, Ms. DELAURO, Mr. FRANK, By Mr. PETERSON of Minnesota: committees of information required to be re- Mr. LEWIS of Georgia, Ms. LOFGREN, H.R. 4208. A bill to approve the use or dis- ported and made publicly available under Mrs. MCCARTHY of New York, Mr. tribution of judgment funds of the Red Lake April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1283

Band of Chippewa Indians of Minnesota by Mr. AKIN, Mr. BACHUS, Mr. BAKER, and friendship with the people of the United the Senate and the House of Representatives, Mr. BARR of Georgia, Mr. BARTLETT States, and for other purposes; to the Com- and for other purposes; to the Committee on of Maryland, Mr. BARTON of Texas, mittee on International Relations. Resources. Mr. BASS, Mr. BILIRAKIS, Mr. BISHOP, f By Mr. ROEMER (for himself, Mr. Mr. BLUNT, Mr. BOEHNER, Mrs. BONO, HOUGHTON, Mr. GILMAN, Mr. BERMAN, Mr. BOOZMAN, Mr. BRADY of Texas, ADDITIONAL SPONSORS Mr. ACKERMAN, Ms. ROS-LEHTINEN, Mr. BROWN of South Carolina, Mr. Under clause 7 of rule XII, sponsors Mr. ROHRABACHER, Mr. MORAN of Vir- BRYANT, Mr. CALVERT, Mr. CANNON, were added to public bills and resolu- ginia, Mr. MCDERMOTT, Mr. GREEN- Mr. CANTOR, Mr. CASTLE, Mr. CHABOT, tions as follows: WOOD, Mr. LUTHER, Mr. KIRK, Mr. Mr. CHAMBLISS, Mr. COMBEST, Mr. HALL of Ohio, Mr. DICKS, Mr. CARSON CONDIT, Mr. CRANE, Mr. CRENSHAW, H.R. 40: Mr. MEEKS Of New York. of Oklahoma, Mr. CONYERS, Mrs. Mr. CULBERSON, Mr. CUNNINGHAM, H.R. 103: Mr. CUNNINGHAM. MEEK of Florida, Ms. ESHOO, Mrs. Mrs. JO ANN DAVIS of Virginia, Mr. H.R. 128: Mr. BISHOP and Mr. RANGEL. DAVIS of California, Mr. HORN, Mr. DEAL of Georgia, Mr. DELAY, Mr. H.R. 303: Mr. BOOZMAN, Mr. FLAKE, and Mr. ALLEN, Mr. MOORE, Ms. EDDIE BER- DEMINT, Mr. DOOLITTLE, Mr. DUNCAN, LEVIN. NICE JOHNSON of Texas, Mr. BISHOP, Ms. DUNN, Mr. EDWARDS, Mr. H.R. 320: Mr. PHELPS. Ms. CARSON of Indiana, Mr. MCNULTY, ENGLISH, Mr. FLETCHER, Mr. FORBES, H.R. 600: Mr. CLAY and Mr. ISRAEL. Mr. FROST, Mr. PASTOR, Ms. Mr. GANSKE, Mr. GEKAS, Mr. GOODE, H.R. 638: Mr. LARSON of Connecticut. MILLENDER-MCDONALD, Mrs. Mr. GOODLATTE, Mr. GRAHAM, Mr. H.R. 658: Mr. ROGERS of Kentucky. MORELLA, Mr. PRICE of North Caro- GRAVES, Mr. GUTKNECHT, Mr. HALL of H.R. 690: Mr. COYNE. lina, Mr. LARSON of Connecticut, Mr. Texas, Mr. HANSEN, Ms. HART, Mr. H.R. 951: Mr. TANNER, Mr. BAIRD, and Mrs. SABO, Mr. BOEHLERT, and Mr. BRADY HASTINGS of Washington, Mr. CUBIN. of Pennsylvania): HAYWORTH, Mr. HEFLEY, Mr. HERGER, H.R. 953: Ms. RIVERS. H.R. 4209. A bill to amend the Foreign As- Mr. HILLEARY, Mr. HOEKSTRA, Mr. H.R. 984: Mr. NETHERCUTT. sistance Act of 1961 to reauthorize micro- HORN, Mr. ISAKSON, Mr. ISSA, Mr. H.R. 990: Ms. RIVERS and Mr. HOLT. enterprise assistance programs under that JENKINS, Mr. JOHN, Mr. JONES of H.R. 1073: Mr. TIBERI. Act and to expand sustainable poverty-fo- North Carolina, Mr. KELLER, Mr. H.R. 1092: Mr. GRAVES. ARSON cused microenterprise programs under that KENNEDY of Minnesota, Mr. KERNS, H.R. 1108: Ms. C of Indiana. H.R. 1171: Mr. TOWNS. Act by implementing improved poverty Mr. KINGSTON, Mr. KIRK, Mr. KOLBE, H.R. 1172: Mrs. LOWEY. measurement methods under those pro- Mr. LAHOOD, Mr. LATOURETTE, Mr. H.R. 1176: Mr. ANDREWS and Mrs. LOWEY. grams; to the Committee on International LEWIS of Kentucky, Mr. LINDER, Mr. Relations. H.R. 1202: Mr. LEACH. LUCAS of Oklahoma, Mr. MANZULLO, By Mrs. ROUKEMA (for herself and Mr. H.R. 1212: Mr. PRICE of North Carolina. Mr. MCCRERY, Mr. MCKEON, Mr. JEFF TIERNEY): H.R. 1256: Mr. JACKSON of Illinois and Mr. MILLER of Florida, Mr. DAN MILLER H.R. 4210. A bill to reauthorize and improve ISRAEL. of Florida, Mrs. MYRICK, Mr. the program of block grants to States for H.R. 1324: Mr. OWENS. NETHERCUTT, Mrs. NORTHUP, Mr. NOR- temporary assistance for needy families; to H.R. 1331: Mr. NEY and Mr. KINGSTON. WOOD, Mr. OSBORNE, Mr. OTTER, Mr. the Committee on Ways and Means. H.R. 1342: Mr. CHAMBLISS. PENCE, Mr. PETERSON of Pennsyl- By Mr. SESSIONS: H.R. 1375: Mr. BASS. vania, Mr. PITTS, Mr. PLATTS, Mr. H.R. 4211. A bill to suspend temporarily the H.R. 1434: Mr. QUINN and Mr. KIRK. POMBO, Ms. PRYCE of Ohio, Mr. duty on triethyleneglycol-bis-(3-tert-butyl-4- H.R. 1460: Mr. SOUDER. RADANOVICH, Mr. REGULA, Mr. hydroxy-5-methylphenyl )propionate; to the H.R. 1462: Mr. OSBORNE. REHBERG, Mr. ROHRABACHER, Mr. Committee on Ways and Means. H.R. 1522: Mr. LEACH. ROYCE, Mr. RYUN of Kansas, Mr. By Mr. SHERMAN (for himself, Mr. H.R. 1581: Mr. HILLEARY. SCHAFFER, Mr. SCHROCK, Mr. SES- HUNTER, and Mr. WYNN): H.R. 1609: Mr. CANTOR, Mr. SULLIVAN, Mr. SIONS, Mr. SHIMKUS, Mr. SHUSTER, H.R. 4212. A bill to direct the Secretary of ORTIZ, and Mr. PASTOR. Mr. SIMMONS, Mr. SIMPSON, Mr. Energy to conduct a study of the effects of H.R. 1656: Mr. CRANE. STEARNS, Mr. SULLIVAN, Mr. year-round daylight saving time on fossil H.R. 1680: Mr. KILDEE and Mr. BARRETT. SWEENEY, Mr. TANCREDO, Mr. TERRY, fuel usage; to the Committee on Energy and H.R. 1711: Mr. BOYD. Mr. THUNE, Mr. TIBERI, Mr. TOOMEY, Commerce. H.R. 1723: Mr. TRAFICANT, Mr. BAKER, Mr. Mr. WALDEN of Oregon, Mr. WAMP, By Mr. SMITH of Washington: STRICKLAND, Mr. HOLDEN, Mr. PASCRELL, Mr. H.R. 4213. A bill to amend title 38, United Mr. WELLER, Mr. WICKER, and Mr. HOYER, Mr. LANTOS, and Mr. NORWOOD. States Code, to extend to all members of the WILSON of South Carolina): H.R. 1774: Mr. LAMPSON and Mr. ADERHOLT. Armed Forces eligible for educational assist- H.J. Res. 86. A joint resolution proposing a H.R. 1784: Ms. WATSON, Mr. DEFAZIO, and ance under the Montgomery GI Bill the au- balanced budget amendment to the Constitu- Mr. BOUCHER. thority to transfer entitlement to such edu- tion of the United States; to the Committee H.R. 1796: Ms. COSTELLO and Mrs. MORELLA. cational assistance to dependents; to the on the Judiciary. H.R. 1808: Mr. HASTINGS of Florida. Committee on Veterans’ Affairs, and in addi- By Mr. BARTON of Texas (for himself, H.R. 1822: Mr. ALLEN. tion to the Committee on Armed Services, Mr. BOUCHER, Mr. UPTON, Mr. TOWNS, H.R. 1897: Mr. HOEFFEL. for a period to be subsequently determined Mr. TAUZIN, Mr. BURR of North Caro- H.R. 1903: Ms. KILPATRICK, Mr. SMITH of by the Speaker, in each case for consider- lina, Mr. WYNN, Mr. WHITFIELD, Mr. New Jersey, Ms. WATSON, and Mr. OWENS. ation of such provisions as fall within the ju- RUSH, Mr. NORWOOD, Mr. SHIMKUS, H.R. 1904: Mrs. LOWEY, Mr. ENGEL, and Mr. risdiction of the committee concerned. and Mr. PICKERING): EYES. By Mr. SMITH of Washington: H.J. Res. 87. A joint resolution approving R H.R. 4214. A bill to amend titles 10 and 38, the site at Yucca Mountain, Nevada, for the H.R. 1962: Mrs. JO ANN DAVIS of Virginia. United States Code, to extend the time limi- development of a repository for the disposal H.R. 1979: Mr. NORWOOD, Mr. PENCE, Mrs. tation for use of eligiblity and entitlement of high-level radioactive waste and spent nu- MEEK of Florida, Ms. MCKINNEY, Mr. JOHN- to educational assistance under the Mont- clear fuel, pursuant to the Nuclear Waste SON of Illinois, Mr. RYAN of Wisconsin, Mr. gomery GI Bill; to the Committee on Vet- Policy Act of 1982; to the Committee on En- BARTON of Texas, Mr. BLUMENAUER, Mr. erans’ Affairs, and in addition to the Com- ergy and Commerce. BALLENGER, and Mrs. WILSON of New Mexico. mittee on Armed Services, for a period to be By Mr. NEY: H.R. 1987: Mr. FROST, Mrs. BIGGERT, and subsequently determined by the Speaker, in H. Con. Res. 374. Concurrent resolution Mr. JENKINS. each case for consideration of such provi- commending the District of Columbia Na- H.R. 2009: Mr. SABO, Mr. GUTIERREZ, Ms. sions as fall within the jurisdiction of the tional Guard, the National Guard Bureau, WOOLSEY, Mr. HORN, Mr. KIND, Mr. SNYDER, committee concerned. and the entire Department of Defense for the Mr. LOBIONDO, Mr. ROEMER, Mr. TERRY, and By Mrs. WILSON of New Mexico: assistance provided to the United States Mr. HILL. H.R. 4215. A bill to amend title XVIII of the Capitol Police and the entire Congressional H.R. 2037: Mr. GOSS, Mrs. NORTHUP, and Ms. Social Security Act to apply a uniform geo- community in response to the terrorist and GRANGER. graphic cost-of-practice index value for phy- anthrax attacks of September and October H.R. 2063: Mr. LYNCH. sicians’ services furnished under the Medi- 2001; to the Committee on House Administra- H.R. 2118: Mrs. MORELLA, Mr. HOEFFEL, and care Program of 1; to the Committee on En- tion. Ms. MCCOLLUM. ergy and Commerce, and in addition to the By Mr. GUTKNECHT (for himself, Mr. H.R. 2125: Mr. LIPINSKI, Mr. EDWARDS, Mr. Committee on Ways and Means, for a period EHRLICH, Mr. ROHRABACHER, Mr. NEY, BACHUS, Ms. MCCARTHY of Missouri, Mr. to be subsequently determined by the Speak- Mr. SMITH of New Jersey, and Mr. PHELPS, and Ms. DUNN. er, in each case for consideration of such pro- GILMAN): H.R. 2138: Ms. SOLIS and Mr. LYNCH. visions as fall within the jurisdiction of the H. Con. Res. 375. Concurrent resolution ex- H.R. 2148: Mr. MCGOVERN and Mr. STARK. committee concerned. pressing the sense of the Congress in support H.R. 2160: Mr. UDALL of New Mexico. By Mr. ISTOOK (for himself, Mr. STEN- of the people of Iran and their legitimate H.R. 2173: Mr. NADLER, Mr. RANGEL, and HOLM, Mr. NUSSLE, Mr. ADERHOLT, quest for freedom, economic opportunity, Mr. DAVIS of Illinois. H1284 CONGRESSIONAL RECORD — HOUSE April 11, 2002

H.R. 2211: Mr. RAHALL. H.R. 3360: Mr. MASCARA and Mr. BOUCHER. H.R. 3899: Ms. WOOLSEY. H.R. 2219: Mr. BACA, Mr. BARCIA, Mr. H.R. 3374: Mr. KILDEE. H.R. 3912: Ms. VELAZQUEZ. TOWNS, Mr. MCHUGH, Mr. MCINNIS, and Mr. H.R. 3382: Mr. PASCRELL. H.R. 3915: Mr. PALLONE, Mr. CLAY, Mr. CLAY. H.R. 3389: Mr. ISAKSON and Mr. OXLEY. KUCINICH, Mr. STARK, Mr. FILNER, and Mr. H.R. 2220: Mr. FALEOMAVAEGA, Mr. KING, H.R. 3414: Mr. SCHIFF and Mrs. DAVIS of MORAN of Virginia. and Mr. LYNCH. California. H.R. 3916: Mr. DAVIS of Florida, Mr. GREEN H.R. 2280: Mr. MCCRERY. H.R. 3430: Mr. GRAHAM and Mr. LATHAM. of Texas, Mr. ALLEN, Mr. GEORGE MILLER of H.R. 2294: Ms. CARSON of Indiana. H.R. 3437: Mr. KING and Mr. WEXLER. California, Mr. FILNER, Mr. HOEFFEL, Mrs. H.R. 2316: Mr. THUNE and Mr. FERGUSON. H.R. 3439: Mr. THUNE and Ms. GRANGER. THURMAN, MS. RIVERS, Mr. SERRANO, and Ms. H.R. 2466: Mr. STUMP, Mr. JENKINS, and Mr. H.R. 3450: Mr. SERRANO, Mr. MEEKS of New WOOLSEY. BALLENGER. York, Mr. HEFLEY, and Mr. HOLT. H.R. 3933: Mr. BLAGOJEVICH, Ms. NORTON, H.R. 2527: Ms. PRYCE of Ohio, Mr. CHABOT, H.R. 3464: Ms. DEGETTE. and Mr. OWENS. Mrs. CAPITO, Mr. BAKER, Mr. WELLER, Ms. H.R. 3465: Mr. MCINTYRE, Mr. WATT of PRATT LYBURN BERKLEY, Mr. LYNCH, Mr. SIMMONS, Mr. GOR- H.R. 3940: Mr. S and Mr. C . North Carolina, and Mr. BONIOR. DON, Mr. ROYCE, Mrs. DAVIS of California, H.R. 3961: Ms. SCHAKOWKSY and Mr. HIN- H.R. 3476: Mrs. BONO. Mr. WU, Mr. MALONEY of Connecticut, Mr. CHEY. H.R. 3479: Mr. MCGOVERN and Mr. EHRLICH. DICKS, Ms. HOOLEY of Oregon, Mr. DEFAZIO, H.R. 3974: Mr. FROST. H.R. 3512: Mr. WATKINS and Mr. THUNE. and Mrs. MALONEY of New York. H.R. 3981: Mr. THUNE. H.R. 3524: Ms. BALDWIN. H.R. 2576: Mr. FOLEY. H.R. 3989: Ms. CARSON of Indiana, Mr. MAS- H.R. 3469: Mr. OWENS. H.R. 2592: Mr. SHERMAN. CARA, Mrs. CAPPS, Ms. SCHAKOWSKY, Mrs. H.R. 3574: Mr. MCDERMOTT. H.R. 2605: Mr. GEORGE MILLER of Cali- ROUKEMA, Mr. EVANS, Mr. MALONEY of Con- H.R. 3584: Mrs. CHRISTENSEN. fornia. necticut, Ms. WATSON, Ms. WOOLSEY, Mr. H.R. 3592: Mr. ETHERIDGE, Mr. ENGLISH, Ms. H.R. 2608: Mr. FRANK. OWENS, and Mr. STARK. ROS-LEHTINEN, Mr. SNYDER, and Mr. SHOWS. H.R. 2618: Mr. HERGER. H.R. 4003: Ms. MCCOLLUM. H.R. 2663: Ms. NORTON, Mr. GEORGE MILLER H.R. 3597: Mr. OWENS. H.R. 4008: Mr. OWENS, Mr. DINGELL, Ms. of California, and Mr. CONYERS. H.R. 3617: Ms. LEE. KAPTUR, Mr. STARK, Mr. FROST, and Mr. H.R. 2695: Mr. UDALL of Colorado, Mr. H.R. 3618: Mr. CLYBURN. FRANK. SCHIFF, and Mr. HONDA. H.R. 3625: Mr. FARR of California, Ms. H.R. 4009: Mr. BARTLETT of Maryland. H.R. 2714: Mr. LATOURETTE, Mr. HOEKSTRA, DELAURO, Mr. BENTSEN, and Mr. MCGOVERN. Mr. CRANE, Ms. HART, Mr. FOLEY, Mr. BROWN H.R. 3659: Mr. COOKSEY, Mr. BECERRA, Mrs. H.R. 4018: Mr. CARSON of Oklahoma and Ms. of South Carolina, Mr. FLETCHER, Mr. TAY- JONES of Ohio, Mr. MARKEY, Mr. WAMP, Mr. WOOLSEY. LOR of North Carolina, Mr. DUNCAN, Mr. SCHIFF, Mr. LEACH, Mr. GONZALEZ, Mr. BAR- H.R. 4019: Mr. SOUDER, Mr. SENSEN- SMITH of Michigan, Mr. PAUL, Mr. DOO- RETT, Mr. MCINTYRE, Mr. TURNER, Mr. KIND, BRENNER, and Ms. ROS-LEHTINEN. LITTLE, Mrs. MYRICK, Mr. HANSEN, Mr. PITTS, Mr. FILNER, Ms. WOOLSEY, Mrs. KELLY, Mr. H.R. 4030: Mr. GUTKNECHT, Mr. CRENSHAW, Mr. BALLENGER, Mr. BAKER, Mr. PETRI, Mr. MCGOVERN, Mr. HINOJOSA, Mr. SIMMONS, Mr. Mr. STUMP, and Mr. WALDEN of Oregon. KINGSTON, Mr. RYUN of Kansas, Mr. JEFF GREEN of Wisconsin, Mr. ORTIZ, Mr. H.R. 4043: Mr. BARR of Georgia, Mr. BEREU- MILLER of Florida, Mr. NORWOOD, and Mr. CUNNINGHAM, Mr. GANSKE, Ms. BALDWIN, and TER, and Mr. PITTS. WILSON of South Carolina. Mr. PASTOR. H.R. 4061: Ms. CARSON of Indiana, Mr. H.R. 2735: Mrs. WILSON of New Mexico, Mrs. H.R. 3686: Mr. BARTLETT of Maryland and OWENS, Mr. BONIOR, Mr. POMEROY, Mr. MYRICK, Mr. PENCE, and Mr. ISAKSON. Mr. DAVIS of Illinois. PASCRELL, Mr. FORD, Mr. CUMMINGS, Mr. H.R. 2777: Mr. BLUMENAUER and Mr. SMITH H.R. 3694: Mr. GUTIERREZ and Mr. SUL- MATSUI, and Mr. GONZALEZ. of Washington. LIVAN. H.R. 4071: Mr. FOLEY. H.R. 2799: Mrs. LOWEY. H.R. 3698: Mr. PENCE, Mr. WELDON of Flor- H.R. 4098: Mr. MCGOVERN and Mrs. MINK of H.R. 2817: Mr. KIRK, Mr. BARTLETT of Mary- ida, and Mr. TANCREDO. Hawaii. land, Mr. PENCE, and Mr. HANSEN. H.R. 3713: Ms. MCCARTHY of Missouri. H.R. 4104: Ms. ESHOO and Mr. LARSON of H.R. 2820: Mr. CARSON of Oklahoma, Mr. H.R. 3717: Mr. BARTLETT of Maryland. Connecticut. SHIMKUS, Mr. LEWIS of Georgia, and Mr. DIN- H.R. 3733: Mr. CARSON of Oklahoma. H.R. 4108: Mr. TANCREDO. GELL. H.R. 3772: Ms. BROWN of Florida, Mr. H.R. 2829: Mr. FLAKE, Mr. BRADY of Texas, H.R. 4112: Mr. FOLEY, Mr. WATKINS, and Mr. ENGLISH, Mr. FROST, Mr. CUNNINGHAM, Ms. Mr. JEFF MILLER of Florida, Mr. LINDER, Mr. SCHAFFER. CARSON of Indiana, Mr. LYNCH, Mr. FRANK, BARTLETT of Maryland, Ms. DUNN, Mr. DEAL H.R. 4152: Mr. SWEENEY, Mr. BOYD, Mr. and Mr. MCGOVERN. of Georgia, Mr. PETERSON of Pennsylvania, CRENSHAW, Mr. PENCE, Mr. SCHROCK, Mr. H.R. 3782: Mr. BARR of Georgia, Mr. TERRY, Mr. AKIN, Mr. PAUL, Mr. GARY G. MILLER of CULBERSON, and Mr. PLATTS. Mrs. WILSON of New Mexico, Mr. GORDON, Mr. California, Mr. HUNTER, Mr. ISSA, Mr. ROYCE, H.R. 4156: Mr. GORDON, Mr. GOODE, Mr. PAYNE, and Mr. WALDEN of Oregon. Mr. THUNE, Mr. BARTON of Texas, Mr. CAL- TAYLOR of North Carolina, Mr. HOEFFEL, Mr. H.R. 3799: Mr. LATOURETTE. VERT, and Mr. BARR of Georgia. MCGOVERN, Mr. ISAKSON, and Mr. COBLE. H.R. 3825: Mr. SULLIVAN, Mrs. ROUKEMA, H.R. 2867: Ms. MILLENDER-MCDONALD. H. Con. Res. 297: Mr. ROYCE. and Mr. BARR of Georgia. H.R. 2874: Mr. STARK and Ms. KILPATRICK. H. Con. Res. 315: Mr. BOOZMAN and Mr. H.R. 3831: Mr. LATOURETTE and Mr. SIM- H.R. 2941: Mr. TOOMEY. GREEN of Texas. MONS. H.R. 3066: Mr. CUMMINGS and Mr. HOLDEN. H. Con. Res. 328: Mr. CLAY. H.R. 3833: Mr. DINGELL, Mr. VITTER, and H.R. 3113: Mr. BOUCHER. Mr. FOLEY. H. Con. Res. 346: Mr. BLUMENAUER. H.R. 3132: Mr. LIPINSKI, Mr. DELAHUNT, Mr. H. Con. Res. 350: Mr. WHITFIELD and Mr. CAPUANO, and Mr. TIERNEY. H.R. 3834: Ms. BALDWIN, Mr. PRICE of North STUPAK. H.R. 3183: Mr. CARSON of Oklahoma, Ms. Carolina, Mr. KENNEDY of Rhode Island, and H. Con. Res. 351: Ms. MILLENDER-MCDON- CARSON of Indiana, and Mr. EVANS. Ms. HART. ALD, Mr. KIND, Mrs. MINK of Hawaii, Mr. H.R. 3186: Mr. FOLEY. H.R. 3836: Mr. EDWARDS, Ms. WOOLSEY, and BLAGOJEVICH, Mr. DOYLE, Mr. SHAW, Mrs. H.R. 3231: Mr. SAM JOHNSON of Texas, Mr. Mr. STARK. MEEK of Florida, Mr. FARR of California, Mr. GREEN of Texas, and Mr. WELLER. H.R. 3842: Mr. JONES of North Carolina, Mr. MCGOVERN, Ms. WOOLSEY, and Mr. GEORGE H.R. 3238: Mr. HOEKSTRA, Mr. HOLT and Ms. FERGUSON, Mr. GRUCCI, Mr. WEXLER, and Mr. MILLER of California. MCKINNEY. FOLEY. H.R. 3244: Mr. TAUZIN. H.R. 3884: Mr. WYNN, Mr. GEPHARDT, and H. Con. Res. 371: Mr. FOSSELLA, Ms. WOOL- H.R. 3258: Mr. ISAKSON. Ms. DELAURO. SEY, Mr. SHIMKUS, Mr. COLLINS, Mr. FROST, H.R. 3257: Mr. NEAL of Massachusetts. H.R. 3890: Mr. CROWLEY Mr. OWENS, Mr. Mr. SERRANO, Mr. HORN, Ms. MCKINNEY, Mr. H.R. 3321: Mr. BROWN of South Carolina Mr. FROST, Mr. DINGELL, and Ms. WATSON. LYNCH, Ms. MCCOLLUM, and Mr. KNOLLEN- MCHUGH, Mr. GRAVES, Mr. MEEKS of New H.R. 3894: Mr. OWENS and Ms. MCKINNEY. BERG. York, Mr. ROGERS of Kentucky, and Mr. H.R. 3895: Mr. CALVERT. H. Res. 17: Ms. MCCOLLUM. PRICE of North Carolina. H.R. 3897: Mr. TOM DAVIS of Virginia, Mr. H. Res. 302: Mr. WALSH and Mr. BACHUS. H.R. 3335: Mrs. THURMAN, Mr. GREEN of BONIOR, Mr. SMITH of New Jersey, Ms. SOLIS, H. Res. 361: Mr. SOUDER, Mr. KLECZKA, Ms. Texas, and Mr. FROST. and Mr. FRANK. RIVERS, and Mr. KIRK. April 11, 2002 CONGRESSIONAL RECORD — HOUSE H1285 DELETIONS OF SPONSORS FROM DISCHARGE PETITIONS— topher John, Jim Matheson, Ronnie Shows, PUBLIC BILLS AND RESOLUTIONS ADDITIONS OR DELETIONS and Rod R. Blagojevich. Under clause 7 of rule XII, sponsors The following Members added their Petition 4, by Mr. CUNNINGHAM on House were deleted from public bills and reso- names to the following discharge peti- Resolution 271: Bart Gordon. lutions as follows: tions: H.R. 3479: Mr. KUCINICH. Petition 6, by Mr. STEVE ISRAEL on H.R. 3598: Mr. WELDON of Pennsylvania. House Resolution 352: Adam Smith, Chris- E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 107 CONGRESS, SECOND SESSION

Vol. 148 WASHINGTON, THURSDAY, APRIL 11, 2002 No. 39 Senate The Senate met at 10:01 a.m. and was enshrined in the American Constitu- SCHEDULE called to order by the Honorable BILL tion become the heritage of all people Mr. REID. Mr. President, as the NELSON, a Senator from the State of of the earth. Chair announced, the Senate is now re- Florida. We ask this in Thy name, our Father suming the consideration of the energy The PRESIDING OFFICER. Today’s in heaven. Amen. reform bill. We expect the Senator prayer will be offered by our guest from California to be here momen- f Chaplain, Rabbi Hazdan. tarily to offer an amendment. I believe PLEDGE OF ALLEGIANCE the subject matter of that will deal PRAYER with ethanol. This will be offered, I The guest Chaplain offered the fol- The Honorable BILL NELSON led the hope, within the next few minutes. lowing prayer: Pledge of Allegiance, as follows: The consideration of this legislation Let us pray. I pledge allegiance to the Flag of the will be interrupted as a result of the Sovereign of the Universe and Father United States of America, and to the Repub- unanimous consent request granted of Mankind, in these soul stirring lic for which it stands, one nation under God, last night. The Senate is slated to re- times we need Thy guidance and Thy indivisible, with liberty and justice for all. sume the election reform measure at blessing. Serious is the challenge that f 11:30 a.m. today, with 30 minutes of de- free countries and America face. We bate remaining prior to the Senate seek peace, but we must safeguard life APPOINTMENT OF ACTING conducting up to three rollcall votes at and liberty from possible onslaughts of PRESIDENT PRO TEMPORE 12 noon today. That 30 minutes will be equally divided between Senator DODD godless ruthless, and unprincipled ag- The PRESIDING OFFICER. The and Senator MCCONNELL. Once the elec- gressors. clerk will please read a communication tion reform measure has been disposed Earnestly we seek Thee and we in- to the Senate from the President pro of, the Senate will resume consider- voke Thy blessing upon all assembled tempore (Mr. BYRD.) here in this shrine of freedom. Thy ation of the energy bill with other The legislative clerk read the fol- votes this afternoon and this evening. faithful servants, the Senators who lowing letter: have been chosen to speak for our Na- I say to all Senators, we need to U.S. SENATE, tion, stand upon a pedestal of power, of move this legislation along. I sound PRESIDENT PRO TEMPORE, like a broken record. We have been told privilege, and responsibility. Do Thou, Washington, DC, April 11, 2002. O gracious guardian, ever direct their on several occasions that the ANWR To the Senate: amendment was going to come forward. deliberations that their vision and wis- Under the provisions of rule I, paragraph 3, It will come forward today in some dom may make America a better coun- of the Standing Rules of the Senate, I hereby fashion or form. I think it is fair to say try in which to live, and thus strength- appoint the Honorable BILL NELSON, a Sen- if this is not offered by Senator MUR- en the national foundations of our be- ator from the State of Florida, to perform the duties of the Chair. KOWSKI or someone of his choosing, ei- loved Republic. ROBERT C. BYRD, ther I or someone else will offer it. May we, the citizens of the United President pro tempore. ANWR must come before the Senate States, ever be reverent toward Thee, Mr. NELSON of Florida thereupon and we must debate this issue; I hope our loving G-d, loyal to our obligations assumed the chair as Acting President everyone understands. Whoever wants as Americans, honorable in our deal- pro tempore. to offer it wants it just right, and I ings with our fellow men, compas- think the just right time has arrived. sionate to the unfortunate, be as broth- f We need to have this amendment be- ers to the oppressed, the persecuted, fore the Senate. As was indicated yes- and the homeless everywhere. RESERVATION OF LEADER TIME terday, it may become necessary to Gracious Sovereign who is the ruler The ACTING PRESIDENT pro tem- offer the same language in the House of the universe, do Thou bless and pore. Under the previous order, the bill so we can get this debate underway guide and guard the President of the leadership time is reserved. and this legislation completed. United States, these Senators and all f associated with them who labor zeal- f ously for the welfare of our Nation and NATIONAL LABORATORIES PART- for the advancement of the cause of de- RECOGNITION OF THE ACTING NERSHIP IMPROVEMENT ACT OF mocracy throughout the world. MAJORITY LEADER 2001 May the biblical ideals of freedom The ACTING PRESIDENT pro tem- The ACTING PRESIDENT pro tem- and fraternity, of justice and equality pore. The Senator from Nevada. pore. Under the previous order, the

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

S2507

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VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00001 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2508 CONGRESSIONAL RECORD — SENATE April 11, 2002 Senate will now resume consideration ethanol to States where it is not pro- A study sponsored by the California of S. 517, which the clerk will report. duced. Energy Commission indicates that in a The assistant legislative clerk read Fifth, I am very concerned the lim- State such as California, where ethanol as follows: ited number of ethanol suppliers in the is not produced, gas prices could double A bill (S. 517) to authorize funding the De- United States will be able to exercise and even reach $4 per gallon. This partment of Energy to enhance its mission their market power and drive up price. chart shows the real hazard this man- areas through technology transfer and part- This is exactly what happened last date is on both coasts. In California, nerships for fiscal years 2002 and 2006, and for year in the West when electricity and where it is estimated the price increase other purposes. natural gas prices soared due to supply is .096 cents per gallon. Then in other Pending: manipulation by out-of-State energy states: Connecticut, it will increase the Daschle/Bingaman further modified companies. price of gasoline 9 cents a gallon; Dela- amendment No. 2917, in the nature of a sub- Sixth, there may not be enough eth- ware, 9 cents a gallon; New Hampshire, stitute. anol produced in the United States to 8 cents a gallon; New Jersey, 9 cents a Kerry/McCain amendment No. 2999 (to meet future demand. gallon; New York, 7 cents a gallon; amendment No. 2917), to provide for in- Seventh, almost tripling the amount creased average fuel economy standards for Pennsylvania, 5 cents a gallon; Rhode of ethanol we produce raises serious Island, 9 cents a gallon; Virginia, 7 passenger automobiles and light trucks. health and environmental questions. Dayton/Grassley amendment No. 3008 (to cents a gallon; Massachusetts, 9 cents a amendment No. 2917), to require that Federal Tripling it is a big step into the un- gallon; Missouri, 5 cents a gallon—and agencies use ethanol-blended gasoline and known, environmentally and health- on and on and on. This is bad public biodiesel-blended diesel fuel in areas in wise. I hope to show this in my re- policy. which ethanol-blended gasoline and bio- marks. California does not have the infra- diesel-blended diesel fuel are available. Finally, because ethanol is sub- structure in place to be able to trans- Lott amendment No. 3028 (to amendment sidized, mandating more of it will di- port large amounts of ethanol into the No. 2917), to provide for the fair treatment of vert money from the highway trust State, therefore any shortfall of sup- Presidential judicial nominees. fund. What I mean by this is there is a Landrieu/Kyl amendment No. 3050 (to 5.4-cent-per-gallon tax credit for eth- ply—either because of manipulation or amendment No. 2917), to increase the trans- raw market forces—will be exacerbated fer capability of electric energy transmission anol that will continue to divert more and more resources to ethanol instead because the State will be reliant on systems through participant-funded invest- ethanol from another area of the ment. of the highway trust fund where every Graham amendment No. 3070 (to amend- State gets its essential resources to re- United States. ment No. 2917), to clarify the provisions re- duce traffic congestion and improve According to a recent report issued lating to the Renewable Portfolio Standard. the safety of roads and bridges. by the GAO, over 98 percent of the U.S. Schumer/Clinton amendment No. 3093 (to Let me explain each objection, one at ethanol production capacity is located amendment No. 2917), to prohibit oil and gas a time. Let me begin by talking about in the Midwest. Here it is: In the West, drilling activity in Finger Lakes National 10 million gallons—that is all we Forest, New York. my concerns with mandating more eth- anol than is needed. This bill forces produce; in the Rocky Mountain re- Durbin amendment No. 3094 (to amend- gion, 12 million gallons; the South, ment No. 2917), to establish a Consumer En- California, my State, to use 2.68 billion ergy Commission to assess and provide rec- gallons of ethanol over the 9 years it here, 15 million gallons; and the east ommendations regarding energy price spikes does not need to meet clean air stand- coast, 4 million gallons. from the perspective of consumers. ards. In the Midwest, which is the big ben- Dayton amendment No. 3097 (to amend- Look at this chart. The red is the eficiary of this ethanol mandate—no- ment No. 2917), to require additional findings amount of ethanol California will be body should doubt that—they produce for FERC approval of an electric utility forced to use from 2004 to 2012 under 2.27 billion gallons of ethanol. So the merger. the mandate in the Senate energy bill. ethanol is all produced in the Midwest. AMENDMENT NO. 3114 TO AMENDMENT NO. 2917 The blue is the amount of ethanol we There is only one ethanol plant in Mrs. FEINSTEIN. Mr. President, I would use without the mandate, large- California today, so it is going to be rise today to open the debate on the so- ly in the winter months in the south- impossible for California to respond to called renewable fuels or ethanol man- ern California market. any ethanol shortage. As the GAO re- date in the Senate energy bill. I strong- Here you see, to meet clean air ports: ly believe the fuel provisions in this standards, by 2004, we will be forced to Ethanol imports from other regions are legislation are egregious public policy, use 126 million gallons. This bill forces vital. However, any potential price spike that they amount to a wish list for the us to use 276 million gallons in 2004 and could be exacerbated if it takes too long for ethanol industry, and the Senate has it forces us to use 312 million gallons in supplies from out-of-State (primarily the to consider the impact of these provi- 2005 and it ratchets up every year until Midwest where virtually all the production sions on the rest of the Nation. we are forced to use, by the end of this capacity is located) to make their way to California. Frankly, I believe it is terrible public mandate, 600 million gallons of ethanol policy. Frankly, I believe this amounts in 2012 when we only need to use 143 Since there is no quick or effective to a wealth transfer of literally billions million gallons to meet clean air way to send ethanol to California as of of dollars from every State in the Na- standards. yet, more time is needed to develop the tion to a handful of ethanol producers. What kind of public policy would do proper ethanol delivery infrastructure. Frankly, I believe this mandate that? What kind of public policy would One of the amendments I will be send- amounts to a new gas tax in the Na- require a State to use a dramatic ing to the desk essentially delays the tion. amount more of ethanol, an untested beginning of this by an additional year Here are my objections to the renew- health and environmental additive to to give us the time to get the infra- able fuels requirement in the Senate gasoline, that it doesn’t really need? Is structure. energy bill: First, despite limited clean that good public policy? I do not think This is why it is important. Because air benefits, the mandate will almost it is. moisture causes ethanol to separate triple the amount of ethanol in our Na- What makes it even more egregious— from gasoline, this fuel additive cannot tion’s fuel. and the reason I use the word ‘‘egre- be shipped through traditional gasoline Second, even if States do not use this gious’’ is if we do not use it, if we trade pipelines. So it needs a whole new in- ethanol, they are required—forced—to it, we are forced to pay for it anyway. frastructure. Ethanol needs to be pay for it anyway. That is the massive transfer of wealth transported separately by truck, by Third, forcing more ethanol into gas- that takes place under this amount. No boat, and by rail, and blended into gas- oline will only drive prices up at the one knows how much more consumers oline after arrival. Unfortunately, this pump. will be forced to pay, but a recent makes the 1- to 3-week delivery time Fourth, since over 98 percent of the study by the Department of Energy in- from the Midwest to either coast—ei- production capacity of ethanol is based dicates that prices will increase 4 to 10 ther to California and the west coast, in the Midwest, it is extremely dif- cents a gallon across the United States or to the east coast—dependent upon ficult to transport large amounts of if this ethanol mandate becomes law. good weather conditions as well as

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00002 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2509 available ship, truck, and train op-ed by Peter Schrag that appeared in straddle a line between cleaner water and equipped to handle large amounts of the Sacramento Bee on January 30. higher gas prices. Chances are he’ll extend ethanol. Again, this is a tripling of the There being no objection, the mate- the MTBE phaseout and try to negotiate ethanol use in America over the next 9 rial was ordered to be printed in the with Congress for (at least) more flexibility on ethanol. years. RECORD, as follows: Unlike Enron, ADM is not likely to im- I believe everyone outside of the Mid- [From the Sacramento Bee, Jan. 30, 2002] plode; there’s no sign of accounting shenani- west will have to grapple with how to CAN CALIFORNIA AVOID THE NEXT ENERGY gans, no ‘‘partners’’ where red ink can be bring ethanol to their States. Accord- MESS? hidden. But six years ago, ADM was forced to ing to the California Energy Commis- (By Peter Schrag) pay $100 million in what was then the largest price-fixing fine ever imposed. In 1998, three sion: The two sets of terms aren’t corollaries, of its senior executives, including Chief Op- The adequacy of logistics to deliver large but close enough. The Bush administration erating Officer Michael Andreas, son of volumes of ethanol to California on a con- has ruled that without an ‘‘oxygenate’’ addi- former board chairman Wayne Andreas, were sistent basis— tive such as ethanol or MTBE, now being sentenced to prison. This is the key. Gasoline is sold phased out because of water pollution prob- The case, said a federal appeals court, re- lems, California gasoline won’t burn cleanly every day. You can’t just import it flects ‘‘an inexplicable lack of business eth- enough to meet air-quality standards. It once and then forget it for 3 weeks. ics and an atmosphere of general lawless- thus won’t give the state a waiver from the Every single day on a consistent basis ness....Top executives at ADM and its federal requirement. But as a leading envi- is uncertain. Asian co-conspirators...spied on each ronmentalist says, the decision is based a lot A recent report sponsored by the other, fabricated aliases and front organiza- more on political science than science. And tions to hide their activities, hired pros- same energy commission predicts that it could cost California motorists close to a titutes to gather information from competi- there will be future logistical problems half-billion a year. tors, lied, cheated, embezzled, extorted and since the gasoline supply is currently And that’s where ADM comes in. The mon- obstructed justice.’’ These are not the kind constrained with demand exceeding the ster agribusiness company, which calls itself of guys you want to depend on when you fill existing infrastructure capacity. supermarket to the world, markets about your tank. half the ethanol produced in this country. This means that California is already California’s gasoline situation will prob- ADM’s contributions to politicians of both at its refining capacity. It is actually ably never become the crisis that electricity parties—some $4.5 million in the 1990s, plus at about 98 percent of refining capac- was last year—and in this case, no one can some $930,000 in soft money in the 2000 elec- ity. If there is insufficient transpor- blame the state or its politicians. But if tion cycle alone, including $100,000 for the something doesn’t give before the end of the tation infrastructure to ship large Bush inauguration last year—put it ahead of year, the state will not only be paying for amounts, this just makes the problem Enron on many lists of political-influence ethanol it doesn’t need, but also be subject worse. peddlers. to sudden supply shortages. I don’t see any way for California to The investment, bolstered by intensive lob- California may be able to produce some of avoid experiencing a new energy crisis. bying from Midwest farmers, is paying off its own ethanol, but most will have to come This one would be a direct result of an handsomely. The president says that eth- from the Midwest, either by ship (down the anol, a ‘‘renewable’’ fuel that comes mostly unnecessary Federal requirement that Mississippi, which sometimes freezes) or by from corn, not only reduces emissions but increases our mandatory use of ethanol train. Without a federal waiver, every gallon also fosters energy independence. far beyond what we need to use to meet of ethanol not available at the refinery The claim is dubious. Many studies indi- the clean air standard. means a shortage of 14 gallons of gas. If ever cate that ethanol, while reducing carbon there was a price-spike formula, this one is The fact that there are limited num- monoxide emissions, increases the emission it. bers of suppliers in the ethanol market of smog-producing and other toxic com- Last week, California’s Republican guber- reminds me of the situation with elec- pounds. A 1999 report commissioned by the natorial candidates once again rehashed last tricity a year ago when prices soared in U.S. Environmental Protection Agency itself year’s energy crisis. Somebody ought to the West because of a few out-of-State called for an end to the requirement. That, start asking what they’d do about the next the panel said, ‘‘will result in greater flexi- generating firms dominating the mar- one. ket. What do I mean by that? bility to maintain and enhance emission re- According to the GAO, the largest ductions, particularly as California pursues Mrs. FEINSTEIN. Mr. President, in ethanol producer is Archer Daniels new formulation requirements for gasoline. this article, Schrag mentions: Midland. That is this company. They The Sierra Club, the Natural Resources De- Now that ‘‘energy crisis’’ and Enron have fense Council, the Clean Air Trust and other become household words, Californians had have a 41-percent share of the ethanol environmental groups echo the findings. But market. The entire ethanol market better get familiar with ethanol and Archer Washington hasn’t paid much attention. De- Daniels Midland. really consists of these companies: spite evidence that ethanol has contributed Minnesota Corn Producers, 6 percent; nothing to energy independence, every gal- ADM is already an admitted price- Williams Bio-Energy, 6 percent; lon of gas with ethanol gets a 5.4-cent federal fixing firm. Three of its executives Cargill, 5 percent; High Plains Corpora- subsidy (without costs $600 million a year in have served prison time for colluding tion, 4 percent; New Energy Corpora- federal highway funds). And as MTBE is with competitors. tion, 4 percent; Midwest Grain, 3 per- being phased out—in California, Gov. Gray In 1996, ADM pled guilty and paid a Davis has set Jan. 1, 2003, as the deadline— $100 million fine for conspiring to set cent; and, Chief Ethanol, 3 percent. ADM and other ethanol producers stand to These eight companies corner the the price of an animal feed additive. gain handsomely. That is the company that has a 41-per- market on ethanol. There is a market Davis has lobbied vigorously for a waiver concentration of ethanol. That is a of the ethanol requirement, arguing, with cent share of ethanol. danger signal for all of us—a con- considerable evidence, that California’s auto The ethanol industry tells us they centrated market, and a huge mandate and fuel standards will achieve the same or will be able to produce enough ethanol that triples. even better results without ethanol. He’s to meet future demands under this ADM has a 41-percent market share. also suing the federal EPA. mandate. But what if some of the The top eight firms have a 71-percent According to a North American Free Trade planned ethanol plants fail to be built? Agreement claim by Methanex Corp., a Cana- market share. The GAO finds their This is a key point. Plants could be de- dian producer of MTBE, Davis himself got layed, or not coming online at all. We market share to be ‘‘highly con- $200,000 from ADM during the 1998 guber- centrated.’’ natorial campaign and allegedly was flown are finding this with the electricity- How can those in the West who suf- to ADM headquarters in Decatur, Ill., to generation facilities right now in Cali- fered last year believe these firms will meet with company officials. MTBE didn’t fornia. Plants that said they were not abuse their market power to drive have to be phased out, Methanex says; the going to come in, because of the econ- prices up? If we learned anything from problem is not the compound but the flawed omy, or because of their own financial the energy crisis last year, it is that underground tanks from which it leaks. conditions, or one thing or another, when there is not an ample supply or Davis’ phaseout order, says the claim, sug- have decided no—they are not really gests still more influence peddling. going to go ahead with it. What is to adequate competition in the market- But in this case, ADM’s investment hasn’t place, prices will soar, and consumers paid off. There’s been overwhelming pressure preclude that same thing from hap- will pay. in California, as elsewhere, to get MTBE out pening with respect to ethanol? The Mr. President, I ask unanimous con- of gasoline as quickly as possible. Davis is answer to the question is nothing pre- sent to have printed in the RECORD an not doing ADM’s bidding; he’s trying to cludes it.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00003 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2510 CONGRESSIONAL RECORD — SENATE April 11, 2002 The GAO reports: ozone air quality and has some disadvan- gives the ethanol industry unprece- Projected capacity may be lower if some tages. Moreover, some data suggests that dented protection against consumers plants cease production, plants under con- oxygenates can lead to higher Nitrogen and communities that may seek legal struction don’t come online in time, or some Oxide (NOX) emissions. redress against the harm ethanol may new plants’ plans do not materialize. Nitrogen oxides are known to cause cause. I am very pleased to say that The ethanol industry is asking this smog. my colleague, Senator BOXER from Nation to make a blind leap of faith The National Academy report also California, will have an amendment that there will be a sufficient amount found that ethanol-blended gasoline which will eliminate this safe harbor of ethanol in the future. In fact, projec- will ‘‘lead to increased emissions of ac- provision. tions of the future domestic ethanol etaldehyde’’—a toxic pollutant. More ethanol will force the Govern- supply are based upon numbers sup- Thus, ethanol is both good and bad ment to collect less gasoline tax rev- plied by ethanol producers themselves. for air quality. And we triple it. That enue for the highway trust fund. This We are taking a very big risk here. We is the unknown. That is the big step is a very big consideration. It is huge. should know it. into the unknown we are taking. To Let me argue this point. Ethanol is I am also particularly concerned me, it would make sense to maximize exempted from 5.3 cents of the Federal about the long-term effect of nearly the advantages of ethanol and mini- motor fuels tax. The Congressional Re- tripling the amount of ethanol in our mize the disadvantages. This bill, this search Service has indicated that the gasoline supply. What effect will this mandate does not do that. This is ex- ethanol mandate in this bill will divert have on our environment? What are the actly why States should have flexi- $7 billion over the 9 years away from health risks of ethanol? bility to decide what goes into their the highway trust fund, which States The answers are truthfully largely gasoline in order to meet clean air use to pay for essential transportation unknown. That is the rub, too. I be- standards. Ethanol should not be man- projects. And that is on top of the cut lieve it is bad public policy to mandate dated, certainly not at this level. that is in the Bush budget. an amount of ethanol that is way Why are some forcing smog pollution So per gallon of gasoline today, 18.4 above what is required to meet clean into our air during the summer? cents goes into the trust fund. With the air standards before scientific and Evidence also suggests that ethanol tripled amount of ethanol, CRS esti- health experts can fully investigate the accelerates the ability of toxins found mates there will be a $7 billion loss in impact of ethanol on the air we breathe in gasoline to seep into our ground the highway trust fund over the next 9 and the water we drink. water supplies. The EPA Blue Ribbon years—a $7 billion loss. That is enough There was a 2-percent oxygenate re- Panel on Oxygenates found that eth- in itself to vote against this legisla- quirement put in some time ago. One of anol ‘‘may retard biodegradation and tion. the oxygenates that was chosen was increase movement of benzene and California is able to produce special MTBE. Now we find that MTBE has other hydrocarbons around leaking gasoline that is the cleanest burning contaminated 10,000 wells in California, tanks.’’ gasoline in the country today. We meet the water supply for Santa Monica, the Now, benzene is a carcinogen. Just clean air standards with reformulated Santa Clara Valley reservoirs, Lake know what we are doing. gasoline. The State only needs to use Tahoe, and a number of other places in Let me quote the EPA Blue Ribbon ethanol in the winter months to meet California. We now find that MTBE Panel on Oxygenates. Ethanol ‘‘may clean air requirements. That is why may well be a human carcinogen. We retard biodegradation and increase the State has continually asked the learned all of this, the horse is out, and movement of benzene and other hydro- Federal Government for a waiver of the the barn door is shut. Now we are going carbons around leaking tanks.’’ 2-percent oxygenate requirement. to do the same thing with respect to According to a report by the State of Yet time and time again, the ethanol ethanol. California entitled, ‘‘Health and Envi- industry has flexed its political muscle Just what are the environmental ronmental Assessment of the Use of in the White House, in the Senate, and ramifications of more ethanol in our Ethanol as a Fuel Oxygenate,’’ there in the House to force California to use fuel supply? are valid questions about the use of fuel additives the State does not need. Although the scientific opinion is not ethanol and its impact on ground and This time is no different. And it is unanimous, evidence suggests that, surface water. An analysis in the re- clear to me that all of this is merely one, reformulated gasoline with eth- port found that there will be a 20-per- serving to prop up an industry that anol produces more smog pollution cent increase in public drinking water would fall apart without overwhelming than reformulated gas without it. We wells contaminated with benzene if a Government subsidy and action. have reformulated gasoline. That is significant amount of ethanol is used— I am very concerned about the reper- why we don’t need to use it. The find- a 20-percent increase in public drinking cussions this mandate may have on the ing is that there is more smog pollu- water wells contaminated with ben- price and supply of gasoline. I cannot tion with ethanol than if States simply zene, a known carcinogen. vote for this bill with this mandate in went to reformulated gasoline. We are tripling the amount of eth- it. It is bad public policy. It is egre- Second, ethanol enables the toxic anol, and we are tripling it when it gious public policy. chemicals in gasoline to seep further isn’t needed to meet clean air stand- The California Energy Commission into ground water and even faster than ards. What kind of public policy is again points out: conventional gasoline. this? It is egregious public policy. It is The combination of limited local capacity, Ethanol is also made out to be an wrong public policy. If you think I am restrained imports, limited storage, and a ideal renewable fuel, giving off fewer passionate about it, you are right. strong demand, has caused the California emissions. Yet on balance, ethanol can So what is the rush to force more gasoline market to become increasingly un- be a cause of more air pollution be- ethanol on the American motorists if it stable, with wild price swings. cause it produces smog in the summer will only drive up the price of gasoline The bottom line is that my State’s months. Smog is a powerful respiratory and produce mixed environmental re- gasoline market is extraordinarily irritant. It affects a large amount of sults? volatile and vulnerable. And this is the the population. It has an especially On top of that, how can the Senate fifth largest economic engine in the pernicious effect on the elderly, on favor protecting the ethanol industry world. People have to get to work, and children, and individuals with existing from liability? And this is the clincher gasoline fuels the economy as well as respiratory problems such as asthma. in this bill: They are protected from li- automobiles. And we are going to do And asthma is going up in America. It ability. So if you get sick from it, if it this to it? is time we begin to ask why. pollutes our wells, if benzene increases, In 1999, fires at Tosco and Chevron A 1999 report from the National you cannot sue. What kind of public refineries during the summer forced Academy of Sciences found: policy is this? the price of gasoline to double in Cali- [T]he use of commonly available I urge my colleagues to look at pages fornia. oxygenates [like ethanol] in [Reformulated 204 and 205 of the energy legislation This bill will strain California’s gaso- Gasoline] has little impact on improving where a so-called safe harbor provision line supply even further with a Federal

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00004 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2511 ethanol mandate that risks plunging an ethanol shortage, there are prob- ‘‘(ii) FAILURE TO ACT.—If the Administrator California and other States into the lems getting enough ethanol to New fails to approve or disapprove a petition next energy crisis. Every indicator I York or to California and our two Gov- within the period specified in clause (i), the have seen points to this ethanol re- ernors ask for a waiver and we have to petition shall be deemed to be approved. quirement as having unanticipated side wait 240 days to get it? Our economy AMENDMENT NO. 3030 TO AMENDMENT NO. 2917 effects, such as supply problems and re- would take a devastating blow if such a The ACTING PRESIDENT pro tem- sulting in higher gasoline prices for the situation were to occur. pore. The Chair recognizes the senior consumer. To make this waiver more reason- Senator from New York. So by passing this legislation, the able, I am offering this amendment to Mr. SCHUMER. Mr. President, I Senate will be making California’s and require the EPA to respond in a reason- thank my colleague for her strong and the Nation’s gasoline more expensive able time to an emergency request by a eloquent remarks. I ask unanimous by mandating a fuel additive with a State for a waiver. This amendment consent to lay aside the pending negative value as an energy source and will give the EPA 30 days to rule on a amendment and call up amendment No. a mixed value for the environment. waiver so consumers will not unduly 3030 and ask for its consideration. On balance, it makes no public policy suffer. By reducing the time period, the The ACTING PRESIDENT pro tem- sense. I want to make clear, once Administrator will have not 240 days pore. Without objection, it is so or- again, my strong opposition to this but 30 days to decide whether or not an dered. The clerk will report. greedy and misguided renewable fuels emergency waiver should be approved. The assistant legislative clerk read requirement. The mandate is a dan- We can ensure that any price spikes or as follows: gerous step that could force gasoline supply shortage will be as temporary The Senator from New York [Mr. SCHUMER] prices to soar, cause shortages of fuel, as possible. proposes an amendment numbered 3030. create more smog, and usher in the I believe that 240 days is in there for Mr. SCHUMER. Mr. President, I ask next energy crisis. a reason: Because if your gasoline unanimous consent that reading of the Plain and simple, it is bad policy to spikes in price, as we think it is, you amendment be dispensed with. charge all consumers more to benefit a can’t stop it. It goes on for the 240 The ACTING PRESIDENT pro tem- collection of very few ethanol pro- days. pore. Without objection, it is so or- ducers. I hope this commentary will I will end my remarks. I reserve the dered. begin an honest debate in the Senate right to come back for additional re- The amendment is as follows: about the ethanol provisions of the marks. One of the things I would like (Purpose: To strike the section establishing Senate energy bill and what they will to go into is how energy inefficient this a renewable fuel content requirement for really do. ethanol proposal really is because eth- motor vehicle fuel) I know Senator SCHUMER is going to anol increases the need for gasoline, it Beginning on page 186, strike line 9 and all follow up on this. However, I take this does not reduce it. MTBE reduces the that follows through page 205, line 8. opportunity to indicate that there will On page 236, strike lines 7 through 9 and in- amount of gasoline you need. So if you sert the following: be a number of amendments from those are short refinery capacity, MTBE is amended— of us on the west coast and those of us works to your advantage. Ethanol does (1) by redesignating subsection (o) as sub- on the east coast. We intend to press exactly the opposite. If you don’t have section (p); and this debate. We do not intend to let that refinery capacity, you are stuck. (2) by inserting after subsection (n) the fol- this bill go forward if we can prevent It is a big problem. lowing: it. I would like to do more on that, but ‘‘(o) ANALYSES OF MOTOR VEHICLE FUEL I begin with one of my first amend- at the present time I send an amend- CHANGES’’. ments. Another diabolical thing in this ment to the desk and yield the floor. I The ACTING PRESIDENT pro tem- bill is essentially to state that if a notice the distinguished senior Senator pore. The Senator from New York. waiver is provided, if a State asks to from New York is here and will con- Mr. SCHUMER. Mr. President, I com- waive—this is on page 195 of the bill— tinue our opposition to this ethanol pliment my colleague from California the Administrator, in consultation mandate. for her fine remarks on this issue, with the Secretary of Energy, may I yield the floor, if I might, to the which I share. We have a serious prob- waive the renewable fuels requirement Senator from New York. lem in this bill, a problem that most in whole or in part on petition by one The ACTING PRESIDENT pro tem- Members don’t know about. There is a or more States by reducing the na- pore. Without objection, the pending hidden gas tax in this bill. It is not tional quantity of renewable fuel re- amendments are set aside and the clerk going to be hidden after today. quired under this section based on a de- will report the amendment. This bill will raise the cost of gaso- termination by EPA, after public no- The assistant legislative clerk read line on average in America more than tice and opportunity for comment, that as follows: the nickel gas tax did back in 1993, implementation of the requirement The Senator from California [Mrs. FEIN- when I was not a Member of this distin- would severely harm the economy or STEIN] proposes an amendment numbered guished body but which caused so much the environment of a State or a region 3114. controversy. or the United States; and that based on Mrs. FEINSTEIN. Mr. President, I I urge my colleagues to pay careful a determination by the EPA Adminis- ask unanimous consent that reading of attention over the next few days as trator, after public notice and oppor- the amendment be dispensed with. many of us bring up this issue. It is tunity, there is an inadequate domestic The ACTING PRESIDENT pro tem- complicated. It is anti-free market, I supply or distribution capacity to meet pore. Without objection, it is so or- say to my friend from Oklahoma who I the requirement. dered. know has been a strong defender of free In simple English, this means that if The amendment is as follows: market principles, when I agree with there is an emergency, the ethanol (Purpose: To reduce the period of time in him and when I disagree with him. It is mandate can be temporarily suspended. which the Administrator may act on a pe- something that should not be in this This is the rub: The bill, as currently tition by 1 or more States to waive the re- bill. I think it could be the death knell drafted, gives EPA 240 days in an emer- newable fuel content requirement) of this bill, as the Senator from Cali- gency to make a decision. That is a Beginning on page 195, strike line 19 and fornia said. I myself—and I know many good part of a year to decide whether all that follows through page 196, line 4, and others—cannot vote for this final bill or not to grant a waiver. This is uncon- insert the following: with this provision included. scionable. In other words, if you can’t ‘‘(B) PETITIONS FOR WAIVERS.— Let me express my concerns about obtain enough ethanol and you have an ‘‘(i) IN GENERAL.—The Administrator, in this unprecedented new ethanol man- consultation with the Secretary of Agri- date provision which was quietly in- emergency and you petition to waive culture and the Secretary of Energy, shall it, it takes 240 days. What do you do for approve or disapprove a State petition for a serted into the Senate energy bill a few 240 days? waiver of the requirement of paragraph (2) weeks ago without any debate. The This, in my view, is ridiculous. Can within 30 days after the date on which the provision accomplishes two goals not you imagine if in a few years there is petition is received by the Administrator. being disputed by my amendment. One

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00005 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2512 CONGRESSIONAL RECORD — SENATE April 11, 2002 is banning the use of MTBEs which has An ethanol mandate would deny Iowans a to ship. You can’t create a pipeline— resulted in groundwater pollution all choice of fuels and short circuit the process even though that could be expensive to over the country. The second is scrap- of establishing its own worth in the market- do—the way you can for oil. So the eth- ping the oxygenate mandate that led so place. The justification is to marginally anol has to be reduced, and you can see many States to make such heavy use of boost the price of corn. If that were the goal, other measures would be far more effective. it is mainly in a few States in the MTBEs in the first place. heartland, where nice, hard-working The proposal in the bill provides an How about the Quad City Times edi- people live, in the middle of the coun- anti-backsliding provision to require torial entitled ‘‘Ethanol Only Proposal try. continued efforts on clean air. Though Doesn’t Help Consumers.’’ If you are far away from these eth- those provisions could be stronger, we How about the Grand Island (Ne- anol plants, it is hard to get to; it is are not opposing any of those parts of braska) Independent: ‘‘Ethanol use hard for you to get the ethanol. It usu- the bill. But beyond those provisions, should not be a forced buy.’’ ally has to be produced, put on a truck, this new amendment adds an aston- How about the Omaha World Herald: a barge, sent down to Mississippi, and ishing new anti-consumer, anti-pre- ‘‘More Alcohol, Less Choice.’’ then, by boat, sent all around the coun- market requirement that every refiner These are all editorials. I don’t know try and then loaded back, put on a in the country, regardless of where about these newspapers. I doubt they truck, and put into the gasoline. You they are located, regardless of whether are philosophically like the New York can see why it is so expensive. the State mandates it or not, regard- Times; yet they are thinking this is a Now, that is in normal times. Should less of whether the State chooses a dif- bad proposal. I want to read for you there be market disruptions, of which ferent path to get to clean air, must about your States. This is a low esti- you can be sure-as-shooting, if we are use an ever-increasing volume of eth- mate, but this is how much the price of going to impose this huge mandate re- anol. If they don’t use the ethanol—and gasoline will go up if this provision is quiring more ethanol to be added to this is the most amazing part of the kept in the bill, if our amendment is gasoline than we produce in the United bill—they still have to pay for ethanol defeated. I will read every State. I States right now, there are going to be credits. think you ought to know it. This is im- disruptions and the price of gasoline Now, our amendment—the amend- portant. The minimum is 4 cents, and ment I have introduced—would simply could double. in many it is 4 cents. In many it is This is one of these quiet little strike that provision, plain, simple, higher. Keep your ears perked. Ala- amendments that could come back to and clean. As to the provision we are bama would go up 4 cents a gallon; haunt every one of us. I have been here striking, simply put, what it does is it Alaska, 4 cents; Arizona, 7.6 cents; Ar- in the Congress—only 4 years in the requires all gasoline users, our con- kansas, 4 cents; California—the senior Senate but 18 in the House. Every so sumers, to pay for ethanol whether or Senator from California is here—9.6 not they use it. It is nothing less than often, there is an amendment and peo- cents a gallon; Colorado, 4 cents; Con- ple vote for it and don’t pay much at- an ethanol gas tax levied on every driv- necticut, 9.7 cents a gallon; Delaware, er—the mom who is driving the kids to tention, and a year later the public 9.7 cents; District of Columbia, 9.7 gets wind and says: What the heck school, a truck driver who earns a liv- cents; Florida, 4 cents a gallon; Geor- ing. Every gasoline user in this coun- have those guys done? Everybody here gia, 4 cents a gallon; Hawaii, 4 cents a says: I didn’t know or, oh, we didn’t re- try will pay. gallon; Idaho, 4 cents; Illinois—I just Under this ethanol gas tax, gas prices alize it. The Senator from California, I, read in today’s newspaper how the will rise significantly, even under the and the others joining us in this debate price of gasoline is going through the best of circumstances. I am first going are putting you on notice: This is one roof in Illinois. That would be an addi- to bring this part out because I think of those amendments. Beware. If there tional 7.3 cents a gallon. We are going this part will get the most attention in was ever an amendment quietly put in to tell the drivers in Chicago and terms of people understanding how bad a bill that should have a skull and Springfield and East St. Louis, where this provision is. Using Department of crossbones on it, be careful, this is it. Energy numbers, impartial Hart/IRI the price is through the roof already, So pay attention. Fuels Information Services estimates we are going to impose a mandate that Now, my State has already banned that gasoline prices will increase by a will raise their price 7.3 cents a gallon. the use of MTBEs. We don’t take that staggering 4 cents to 9.7 cents per gal- How can we? out in this bill. So have 12 other lon, depending on the region. Should Indiana, 4.9 cents; Iowa, 4 cents; Kan- States, including Arizona, California, there be market disruptions, which my sas, 4 cents; Kentucky, 5.4 cents; Lou- Colorado, Connecticut, Illinois, Kansas, friend from California brought up, the isiana, 4.2 cents a gallon; Maine, 4 Michigan, Minnesota, Nebraska, New price would go much higher because cents; Maryland, 9.1 cents; Massachu- Hampshire, South Dakota, and Wash- without the gasoline they need, the setts, 9.7 cents a gallon; Michigan, 4 ington. All have banned MTBEs. A ethanol they need, boom, it goes way cents a gallon; Minnesota, 4 cents a number of other States are in the proc- up. It also favors some regions over gallon; Missouri, 5.6 cents a gallon; ess of taking action as well because others, so that California would pay Mississippi, 4 cents; Montana, 4 cents; MTBEs pollute the ground water. the most—about 9.7 cents a gallon. So Nebraska, 4 cents a gallon for a prod- Every one of those States that has would New England. My State of New uct we don’t make in New York, that banned MTBEs is going to be in an im- York would pay about 7 cents. But we might not even use? possible dilemma. Their citizens are every part of the country would pay I have spoken to some of the refiners demanding they ban MTBE, but with more—every single part. Even in the in our area. They think we can meet the oxygenate requirement in place, Midwest, where there is lots of ethanol the clean air mandate in a lot cheaper they cannot successfully do so. production, the average price of gaso- and better way. If we choose to, we Last year President Bush’s adminis- line would go up 4 or 5 cents a gallon. still have to buy the ethanol credit. My tration denied California’s petition to Listen to this, my colleagues. In the goodness. waive the oxygenate requirement, de- heart of farm country—and I want to Nevada, 4 cents; North Carolina, 4 spite the State’s ability to comply with help farmers, as I think I have shown cents; North Dakota, 4 cents; Ohio, 4 air quality standards without it. In in my few years here—both Iowa and cents; Oklahoma, 4 cents; Oregon, 4 New York, we are in the same position. Nebraska had a referendum on the bal- cents; Pennsylvania, 5.5 cents a gallon; This denial forced the State to defer its lot to require this kind of provision Rhode Island, 9.7 cents; Tennessee, 4 critical ban on MTBE and suffer and rejected it. Well, if the voters in cents a gallon; Texas, 5.7 cents a gal- ground water contamination. New the heart of farm country, in the heart lon; Utah, 4 cents a gallon; Vermont, 4 York State is now considering request- of ethanol country, were against this cents a gallon; Virginia, 7.2 cents a gal- ing a waiver, and I expect their request provision, how are we in the Senate im- lon; Washington, 4 cents a gallon; West will be met with the same denial. posing this on every part of the coun- Virginia, 4 cents; Wisconsin, 5.5 cents a We are between a rock and a hard try? I don’t know what their philos- gallon; Wyoming, 4 cents a gallon. place. Our citizens’ health and the en- ophy is, but let me read from the Des The reason it varies, of course, is the vironment are being held hostage to Moines Sun Register: availability of ethanol. It is very hard the desire of the ethanol lobby to make

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00006 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2513 ever larger profits. We all know one I know many of my colleagues from the highway trust fund. In addition, it will company is way ahead of everybody Midwest want to help their farmers cost our consumers more as well. If we else in producing ethanol. That was who are suffering. We know that. I want to build a big infrastructure, do brought out by my colleague from Cali- want to help those farmers. I have not create a whole new ethanol infra- fornia. I am not going to bring it out— voted for large amounts of agricultural structure which the market is not de- maybe I will since we are at the begin- subsidies to help the farmers in the manding, build more highways. It ning of the debate. West and the South with their row makes no sense. This chart, which was prepared by crops. I did not used to do that when I One other point I have made already, my colleague from California, shows was in the House, but as I traveled this safe harbor provision is sort of the that 41 percent of the ethanol comes around my State, I learned the burdens cherry on top of the icing on top of the from one company. This is what we are that farmers face. cake, the evil cake it is. The safe har- doing in this great free market, cap- It is a heck of a lot different if the bor provision gives unprecedented italistic economy: We are requiring ev- Government makes a collective deci- product liability protection against erybody to buy this stuff, and one com- sion to help support the price of a crop consumers and communities that seek pany has 41 percent of the market—one to keep farmers in existence than an legal redress from the manufacturers company. inefficient, jerry-built contraption that and oil companies that produce and We are setting ourselves up for a does not just make this what the Gov- utilize defective additives in their gas- huge fall, the kind of price spikes we ernment does but, rather, forces every oline. Not just ethanol; all of them. have seen occasionally in California, in consumer to pay. When we have done That was the sort of deal, I guess, that Illinois, and in other places. We are agricultural subsidies, the rationale was made. going to see them everywhere. They has been cheap food. This is not cheap So for those who believe in their con- are going to pop up like weeds if we in- gasoline. This is more expensive gaso- sumers, God forbid, and a refinery crease the demand for ethanol when line, and it absolutely makes no sense makes a huge mistake and puts some- only one company is making it and to help our farmers in this way. If it thing terrible in the gasoline that ei- there is a natural bottleneck. It is not did, I suspect this amendment would ther pollutes the air or is defective, quite like electricity, but it is not that have been debated in the open, but in- you cannot sue. We have held that in- far away, electricity being an actual stead, as I said, there has been no de- surance reform be over the right to monopoly. bate. sue. Much legislation ends up ship- The bottom line is for many States I, frankly, wrestled with my con- wrecked on the shoals of the battle of that are outside the Corn Belt and lack science whether to go forward. I do tort reform, and yet in this bill we say the infrastructure to transport and re- want to help my colleagues in the farm not only never mind, we put in a safe fine ethanol, the most efficient method areas, but this one was so far off the harbor provision that makes one’s jaw of achieving clean air goals will be to charts and so deleterious to my con- drop. The Presiding Officer was out of the reformulate gasoline without using stituents, in terms of raising the price room, but as I stated, it will raise the large amounts of ethanol. of gasoline, that I just could not come Again, I have talked to leaders in the to do that. cost of gasoline in his great State of refining industry in my area, and they I say to my colleagues from the Mid- Delaware some 9.7 cents a gallon by the time this is implemented, something I believe they can do it and do it rather west, figure out better ways we can think the drivers in Dover, Wil- easily. States outside the Corn Belt help the farmers, and I say that as somebody who has been supportive of mington, Rehoboth, and all the other that do not currently use much ethanol doing that before. beautiful cities of Delaware would dare will have to pay to have the ethanol, as Let me show my colleagues how not want to pay. I say, trucked across the country or crazy this proposal is. Currently, refin- For consumers throughout this coun- floated on barges to the Gulf of Mexico ers across the Nation use 1.7 billion try, this ethanol gas tax is a one-two and loaded on to tankers. gallons of ethanol. That is what refin- punch. First, consumers will be forced Those States will also have to pay to ers use right now. Starting in 2004, a to pay more at the pump to meet arbi- retrofit their refineries. Every refinery mere 2 years away, they would be re- trary goals that boost the sale of eth- that does not now use ethanol will quired to use 2.3 billion gallons of eth- anol but are not necessary to achieve have to be refitted to add ethanol to anol. the bill’s air quality goals. the gasoline. Both of these would rep- Right away we are asking them to Second, consumers will face restric- resent significant increases in costs for use a lot more ethanol. If the produc- tions from suing manufacturers and oil refineries supplying my State. Retro- tion does not happen, we know what is companies, and they will have less in- fitting would cost millions of dollars, going to happen: a price spike. centive to ensure the additives they and under this bill New York would We ratchet up that number to 5 bil- manufacture and use are safe. The pro- incur millions more in ethanol trans- lion gallons of ethanol in 2012 and in- vision denies consumers and commu- portation costs. crease it every year by a percentage nities appropriate redress, eliminates What is the public policy for man- equivalent to the proportion of ethanol an important disincentive to pollute, dating the use of ethanol? I have not in the entire U.S. gas supply after 2012 and creates a dangerous precedent for heard one. If you believe ethanol in perpetuity. That means that from future environmental policy. works, as the Iowa, Nebraska, and Illi- 2012 on, the Nation’s ethanol producers In conclusion, I support the anti- nois newspapers said, let the market will have a guaranteed annual market backsliding air quality provisions. I determine it. This is a mandate that of over 5 billion gallons, which every want to see our air cleaner without sort of assumes we know ethanol is gasoline consumer in this country will dirtying our ground water. I do not best for everybody, and most people do pay at the pump. want to be put between that rock and not believe it is. It will stifle any development and hard place, but I strongly oppose cre- We all know what is going on here. new ways of finding cleaner gasoline ating a mandatory ethanol market, The Senator from California mentioned and cleaner burning fuels. It means if whether it is used or not, and providing it. It is the ethanol lobby, their power. someone comes up with a better way, it the producers of that ethanol with ex- But we also have one other thing. They does not matter. It means a huge in- traordinary legal protections to boot. made their deal with the petroleum in- vestment in infrastructure. I would The ethanol industry already benefits dustry, and so we have this provision rather have that money go to build our from billions of dollars in direct farm that does not allow one to sue. I am highways, for God’s sake, than to build subsidies and a 54-cent-per-gallon sub- surprised that so many people on both new ethanol refineries. sidy. If my colleagues want to subsidize sides of the aisle who have maintained In my State, our highways are hurt- that more, let us debate that in the the right to sue in every other area ing, and we are going to be debating in Senate. Who knows? I might support it. now say: Never mind. The provision is the appropriations bill whether to cut But do not make our drivers pay for it renewable fuels safe harbor. Federal highway funding. and do not mandate it. There is another reason, too, and this The ethanol mandate will reduce the Ethanol, which is twice as expensive is probably the most legitimate reason. amount of money that goes into the as gasoline, right now would not be

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00007 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2514 CONGRESSIONAL RECORD — SENATE April 11, 2002 economically viable but for the mas- not know how we meet the need with- newable’’ resources—which in reality means sive Federal subsidies it already re- out a huge price spike that will result corn-based ethanol. ceives. On top of that, with the phase- from a shortage of gasoline, and that is Because the oxygen content of reformu- lated gasoline remains unchanged, the order out of MTBEs, regardless, the demand why I think for my State this mandate will not reduce smog-creating emissions. But for ethanol by free market processes is actually produces a very egregious gas by forcing refiners to use ethanol rather going to go up. States near the Corn spike. It also can impact refineries than less expensive oxygenates like meth- Belt will probably use more ethanol. So very critically. anol, the rule will drive up the cost of gaso- ethanol is in good shape. So what I have tried to point out line. Indeed, ethanol remains a high-cost ad- All that is not enough to satisfy the today is that essentially this mandate ditive even though it benefits from substan- ethanol lobby. As I said, do not take triples the amount of ethanol from 1.7 tial tax breaks. And some experts argue that the word of a New Yorker or a Califor- billion gallons used nationally today to ethanol may be environmentally damaging because coal used in producing it contributes nian. Look at the voters in Iowa and 5 billion gallons nationally by 2012. Nebraska, the heartland—where if any- to carbon dioxide emissions, adding to global Secondly, because of the way the warming. place on the face of this continent or in credit situation is set up, one pays David Montgomery, an energy economist this country would benefit from this whether they use it or not. for Charles River Associates, estimates that mandate, they would—they both re- Thirdly, what it does to gas prices. only 30 percent of the cost of ethanol will cently defeated efforts in those States Fourthly, the market concentration wind up in the pockets of farmers while to create a statewide ethanol mandate. of ethanol: 41 percent from one com- about 70 percent will go to processors like They knew, as I hope we will learn in pany, 71 percent from eight companies. A.D.M. So the rule is a ridiculously expen- this body, that mandated ethanol is an sive way to subsidize farmers. And the addi- That in itself creates a problem that if tion of ethanol will cut imports by only 9,000 indefensible public policy and will un- there is a shortfall the price can be ma- necessarily hurt consumers all across barrels out of about eight million barrels a nipulated. day. the country. To my colleagues, defeat I have mentioned the environmental Carol Browner, head of the E.P.A., asserts the ethanol gas tax. problems, that we can anticipate the that the policy will spur development of re- I yield the floor. smell in the summer months will get newable energy sources. But the impact The PRESIDING OFFICER (Mr. CAR- worse, not better, because of the use of looms small when stacked against the obvi- PER). The Senator from California is ous defects. President Clinton is twisting ethanol. I also indicated that essen- recognized. high-minded environmental promises into Mrs. FEINSTEIN. Mr. President, I tially over the 9 years everybody low-minded favors for special interests. should know that this is a $7 billion thank the Senator from New York for ADDITIONAL GASOLINE COSTS FROM PROPOSED his comments. I thought they were ex- cut in the highway trust fund. RENEWABLE FUELS STANDARD FOR YEARS cellent. I appreciate him naming every There is another point I would like to 2003–2007 (AVERAGE INCREASE IN $/GAL) State that will have an effective gas make. The ethanol mandate essentially Hart Downstream Energy Services (Hart) tax, and stating that this methanol helps the producer. Only 30 percent compiled the following information based on mandate is a tax hike anyway one goes to the farmers, and about 70 per- the recent analysis from the Department of cent goes to producers. This is a wind- Energy, Energy Information Administration looks at it. I do not think there is any (EIA). According to EIA’s analysis, the im- doubt there is going to be an increase fall for those companies, any way you look at it. The New York Times ran an pact of the fuels provisions contained in S517 in gas prices. I do not doubt them at will cause conventional gasoline prices to all. editorial pointing this out, mentioning rise by 4 cents per gallon, and Reformulated I also appreciate his concern for that an energy economist estimated 30 Gasoline (RFG) prices to rise by approxi- farmers. I come from a State that is percent of the cost will end up in the mately 9.75 cents per gallon. the largest farming State in the Union. pockets of farmers, while about 70 per- Assuming annual growth in U.S. gasoline I have spent time in the central valley cent will go to the processors, such as demand of 2 percent, Hart measured the im- pact on each individual state by calculating of California. I know what farmers go ADM. This mandate is a ridiculously expensive way to subsidize farmers. the total gasoline cost increase and the total through, and I appreciate it. gallons of conventional gasoline and/or RFG I am also faced with the problem in Additionally, it cuts imports by sold in each state. my State of forcing a tax hike for about only 9,000 barrels, of about 8 mil- something that we do not need to meet lion barrels. So no one can say this Gasoline State price in- clean air standards, which has ques- saves a great deal of our energy re- crease tions about its environmental value as quirements related to fuel. Alabama ...... 0.04 well as its real questions about what it I ask unanimous consent this be Alaska ...... 0.04 might do to the public health, that pre- printed in the RECORD. Arizona ...... 0.076 There being no objection, the mate- Arkansas ...... 0.04 vents anybody’s right to sue if there is California ...... 0 .096 a real hazard that comes about. This, rial was ordered to be printed in the Colorado ...... 0.04 RECORD, as follows: Connecticut ...... 0 .097 to me, is unbelievable. Delaware ...... 0.097 I will take a couple of moments on [From the New York Times, July 8, 1994] District of Columbia ...... 0.097 the subject of what ethanol does in gas- Florida ...... 0.04 THIS CLEAN AIR LOOKS DIRTY Georgia ...... 0 .04 oline. I mentioned in my remarks that The Environmental Protection Agency has Hawaii ...... 0.04 ethanol is also fundamentally different Idaho ...... 0 .04 effectively ordered refiners to add corn-based Illinois ...... 0.073 from MTBE because the two ethanol to make gasoline environmentally Indiana ...... 0.049 oxygenated additives react differently friendly. But the added ethanol will not Iowa ...... 0.04 Kansas ...... 0.04 when mixed with gasoline. I think this clean the air beyond what the 1990 Clean Air Kentucky ...... 0.054 is an important point because this is Act would already require; nor will it, as ad- Louisiana ...... 0.042 vocates claim, raise farm income very much Maine ...... 0.04 not going to help the energy shortage. Maryland ...... 0.091 It is going to exacerbate it. or significantly cut oil imports. Massachusetts ...... 0.097 What the E.P.A.’s rule will do is take Michigan ...... 0.04 The same amount of ethanol, as op- money from consumers and taxpayers and Minnesota ...... 0.04 posed to MTBE, actually contracts fuel Missouri ...... 0.056 hand it over to Archer Daniels Midland, Mississippi ...... 0 .04 so it takes more to produce the same which produces about 60 percent of the na- Montana ...... 0.04 amount of gasoline. tion’s supply of ethanol. It is certainly no Nebraska ...... 0.04 New Hampshire ...... 0.084 The report, sponsored by the Cali- coincidence that A.D.M.’s chief executive, New Jersey ...... 0 .091 fornia Energy Commission, predicts re- Dwayne Andreas, is a major political con- New Mexico ...... 0.04 tributor; he donated $100,000 to a recent New York ...... 0.071 placement of MTBE by ethanol will re- Nevada ...... 0.04 sult in a supply shortfall of 5 to 10 per- Democratic fund-raising dinner. The Clean North Carolina ...... 0.04 cent for the California gasoline pool as Air Act requires high-smog areas to phase in North Dakota ...... 0.04 use of ‘‘reformulated’’ gasoline whose weight Ohio ...... 0.04 a whole. Thus, California’s gasoline Oklahoma ...... 0.04 is at least 2 percent oxygen; the goal was to Oregon ...... 0.04 supply is not going to go as far as it reduce pollution by replacing gasoline with Pennsylvania ...... 0.055 did. oxygenates. The E.P.A. order would now add Rhode Island ...... 0 .097 South Carolina ...... 0.04 That is critical because we are at 98 another requirement: 30 percent of the South Dakota ...... 0.04 percent of refining capacity. So I do oxygenates would have to come from ‘‘re- Tennessee ...... 0.04

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Gasoline Mrs. FEINSTEIN. Mr. President, I The PRESIDING OFFICER. Without State price in- send to the desk to be printed in the objection, it is so ordered. crease RECORD an editorial from the Sac- Mr. MURKOWSKI. Mr. President, I Texas ...... 0.057 ramento Bee entitled ‘‘Highway Rob- have listened to portions of the debate Utah ...... 0 .04 Vermont ...... 0.04 bery,’’ which essentially characterizes this morning. Obviously, on the issue Virginia ...... 0.072 what this does to the highway trust of ethanol we will have extended dis- Washington ...... 0.04 West Virginia ...... 0.04 fund, how it hurts the country, how en- cussion, but I am sympathetic to the Wisconsin ...... 0.055 ergy experts show that producing eth- concerns expressed by the Senator Wyoming ...... 0.04 anol from corn requires more energy Aggregate Annual Cost Impact of All 50 States: $8,389 Billion from California and the Senator from than the fuel produces, and that the New York. It addresses an underlying Source: Energy Information Administration (EIA), ‘‘Impact of Renewable Fuels Provisions of S1766,’’ March 12, 2002. Compiled by Hart Downstream ethanol mandate would make the coun- situation in this country of which we Energy Services. try more fossil fuel dependent, not less. should all be aware. The mandate on AMENDMENT NO. 3115 TO AMENDMENT NO. 2917 There being no objection, the mate- ethanol in the energy bill is quite Mrs. FEINSTEIN. I send another rial was ordered to be printed in the clear, and the realization that the eth- amendment to the desk which delays RECORD, as follows: anol industry is not prepared, does not the beginning date from 2004 to 2005. It [From the Sacramento Bee, Apr. 8, 2002] have current capacity. is sent to the desk on behalf of Senator HIGHWAY ROBBERY—CORN IS FOR EATING, NOT As a consequence, more gasoline will FOR DRIVING BOXER and myself. have to be used. That brings into focus The PRESIDING OFFICER. Without Here’s another piece of the ethanol idiocy the reality of where our gasoline comes objection, the pending amendments are in Washington: Not only will Californians from; it comes from crude oil. Where soon have to pay more for gasoline laced does crude oil come from? Most of it set aside. with corn liquor, but as a result, we’ll have The clerk will report. less money to alleviate congestion on our comes from overseas. We are seeing a The legislative clerk read as follows: roads. price increase for a couple of reasons. The Senator from California [Mrs. FEIN- Blame this nonsense on Senator Majority The effectiveness of the OPEC cartel, STEIN], for herself and Mrs. BOXER, proposes Leader Tom Daschle, D–S.D., and President which some time ago set a floor of $22 an amendment numbered 3115. Bush. They are pushing a provision for the and a ceiling of $28, is shown with the Mrs. FEINSTEIN. I ask unanimous Senate energy bill that would require gaso- price of oil up to $27. We are seeing a consent reading of the amendment be line producers to use rising amounts of eth- anol. Ethanol is mostly made from corn in situation escalate in the Middle East. dispensed with. states that Bush would dearly like to win in Saddam Hussein, who is supplying this The PRESIDING OFFICER. Without the next election. Nation with roughly a million barrels a objection, it is so ordered. The measure would eliminate the current day, has indicated he is going to cease The amendment is as follows: requirement in the Clear Air Act that smog- production for 30 days. Venezuela, our (Purpose: To modify the provision relating gy areas use gasoline containing an oxygen neighbor, that we depend on from the to the renewable content of motor vehicle additive—either ethanol or MTBE. But then standpoint of proximity, is on strike. It it goes ahead to require that refineries triple fuel to eliminate the required volume of is estimated the United States, in the renewable fuel for calendar year 2004) their purchases of ethanol for gasoline by last few days, has lost 30 percent of its On page 189, line 3, strike ‘‘2004’’ and insert 2012. The mandate hurts consumers in obvious available imports. These are the under- ‘‘2005’’. On page 189, line 5, strike ‘‘2004’’ and insert ways: It will drive up the cost of driving, lying issues associated with the debate ‘‘2005’’. taking dollars out of the pockets of motor- in the sense of price. On page 189, line 8, strike ‘‘2004’’ and insert ists and putting them into the coffers of Ar- Where does gasoline come from? It ‘‘2005’’. cher Daniels Midland, the Enron of the Corn comes from crude oil. Where does crude On page 189, in the table between lines 10 Belt, which dominates the ethanol market. (Why is it that the politicians who are eager oil come from? From overseas, because and 11, strike the item relating to calendar we have increased our dependence on year 2004. to give back their Enron donations seem to On page 193, line 10, strike ‘‘2004’’ and in- have no trouble taking money from—and those sources. It gets more complex sert ‘‘2005’’. giving billions in benefits to—a company when considering the motivation oc- On page 194, line 21, strike ‘‘2004’’ and in- that was convicted of price fixing a few years curring as a consequence of the policies sert ‘‘2005’’. ago?) of Saddam Hussein and Iraq. He is pay- On page 196, line 17, strike ‘‘2004’’ and in- The mandate will also hurt the country. ing the families of those who sacrificed Although ethanol is touted as a renewable sert ‘‘2005’’. their lives to kill people in Israel. It On page 197, line 4, strike ‘‘2004’’ and insert fuel, a recent study by Cornell University ‘‘2005’’. scientist David Pimentel shows that pro- used to be $10,000 per family; now it is On page 199, line 4, strike ‘‘2004’’ and insert ducing ethanol from corn actually requires $25,000 per family. This whole thing is ‘‘2005’’. more energy than the fuel produces. The eth- escalating. It is escalating as a con- On page 199, line 17, strike ‘‘2004’’ and in- anol mandate would thus make the country sequence of the costs of oil increasing sert ‘‘2005’’. more fossil-fuel dependent, not less. because that is where the cashflow Mrs. FEINSTEIN. This is modest and But the mandate will also hit in a less ob- emanates. delays the implementation of the eth- vious way: It will take dollars away from transportation investment. That’s because Procedurally, may I make an inquiry anol mandate by a year, eliminating a ethanol already gets another federal sub- as to where we are on the timing and so requirement to use 2.3 million gallons sidy—the federal fuel tax at the pump is a forth? of ethanol in 2004 and will give States nickel less on fuel containing ethanol. If the The PRESIDING OFFICER. There is more time to make essential infra- Daschle-Bush ethanol mandate is passed, fed- an order to proceed to another measure structure, refinery, and storage im- eral revenues for transportation repair, oper- at 11:30. provements. ation and construction will plummet by Mr. MURKOWSKI. I ask unanimous This is an essential modification nearly $3 billion a year, transportation ex- consent for 4 more minutes, until such since virtually all ethanol, as has been perts estimate. So this is what Californians get from the time as I see Members are ready to pro- explained, comes by tank—not pipe- proposed Daschle-Bush ethanol bailout— ceed. line—from the Midwest. higher prices at the pump and more crowded The PRESIDING OFFICER. The Although the ethanol industry says roads. It gives the term ‘‘highway robbery’’ a Chair will note the presence of the they can meet the future demand, vir- whole new dimension. manager for the majority. Is there ob- tually every single expert we have Mrs. FEINSTEIN. Mr. President, I jection to the request to proceed for 4 talked with has said delivery interrup- yield the floor and suggest the absence minutes? tions and shortfalls are likely, if not of a quorum. Mr. DODD. No objection. inevitable. The PRESIDING OFFICER. The The PRESIDING OFFICER. Without I ask I be included as a cosponsor of clerk will call the roll. objection, it is so ordered. the amendment of Senator SCHUMER to The legislative clerk proceeded to Mr. MURKOWSKI. Mr. President, let strike the renewable fuels section of call the roll. me summarize the dilemma. By our this bill. Mr. MURKOWSKI. Mr. President, I own inaction, we are seeing, if you will, The PRESIDING OFFICER. Without ask unanimous consent that the order greater vulnerability as this country objection, it is so ordered. for the quorum call be rescinded. increases its dependence on imported

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00009 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2516 CONGRESSIONAL RECORD — SENATE April 11, 2002 oil. As I have indicated, Venezuela is Pending: issue. He truly has been the champion on strike. Iraq has terminated its pro- Roberts/McConnell amendment No. 2907, to of promoting accessibility in elections. duction. We are told there is a grave eliminate the administrative procedures of My thanks to Senator BOND who gave threat in Colombia by revolutionists requiring election officials to notify voters us our rallying cry behind this bill, who are threatening to blow up the by mail whether or not their individual vote ‘‘making it easier to vote, and harder was counted. pipeline. There are complications now Clinton amendment No. 3108, to establish a to cheat.’’ This bill does just that and that the Saudis have been accused of residual ballot performance benchmark. Senator BOND deserves the lion’s share funding, if you will, terrorist activities The PRESIDING OFFICER. Under of the credit for that accomplishment. associated with the deaths of Israelis the previous order, there will now be 30 I also thank Senator SCHUMER, who and the bombings, human bombings minutes of debate equally divided be- joined with me nearly 1 year ago to ad- that have taken place. tween the Senator from Connecticut, vance a new approach to this issue. As we address this vulnerability, we Mr. DODD, and the Senator from Ken- Any my thanks to Senator TORRICELLI, have to recognize the reality. It focuses tucky, Mr. MCCONNELL, or their des- who has been there from the beginning in on the current debate on ethanol. As ignees. with me in this exercise. I thank you we look at where we are, we are going MODIFICATION TO AMENDMENT NO. 3107 all for your hard work and persever- to have to have more gasoline in Cali- Mr. DODD. Mr. President, I ask unan- ance which has brought us to this tri- fornia; we are going to have to have imous consent that amendment No. umphant moment. more gasoline in New York. The price 3107, previously agreed to, be modified Before I yield the floor, I would like is going to go up. with the technical correction that I to reiterate my strong opposition to Our alternatives, it seems to me, are now send to the desk. the Clinton amendment which we will quite obvious. We should reduce our de- The PRESIDING OFFICER. Is there vote on shortly. The amendment cre- pendence on imported sources. That objection? ates a federally mandated acceptable brings us to the ANWR debate which The Chair hears none, and it is so or- error rate that is a one size fits all will be taking place very soon. dered. number. This approach is completely Finally, the Schumer amendment The modification to the amendment contrary to every other provision of would strike the renewable fuels stand- is as follows: this legislation. ards, as we know, contained in section At the appropriate place in the bill, insert If adopted, this amendment would do 819 of the bill. That portion called for page 13, line 12 through page 14, line 7 of the three things: amendment. mandated use of renewable motor fuels No. 1, Deliver the Department of Jus- Mr. MCCONNELL. Mr. President, this such as ethanol and biodiesel. This tice into our home States to prosecute is a big day for the Senate. After a year mandate is part of a larger package of our State and local election officials and a half of discussions, negotiations, provisions on MTBE and boutique for choices made by or errors com- introduction, and reintroduction of leg- fuels, and I am certainly supportive of mitted by voters; reducing the boutique fuels. islation, we are finally prepared to pass No. 2, Undermine the sanctity of the I am not usually a big fan of man- a comprehensive, truly bipartisan elec- secret ballot and dates, but the renewable fuel standards tion reform bill. will reduce our dependence on foreign I say ‘‘finally,’’ but the truth is, a No. 3, Force the elimination of many oil. year and a half is lightning fast in the voting systems used across this coun- I will have more to say later, but I Senate. Senator TORRICELLI and I pro- try. encourage my colleagues to participate posed a comprehensive election reform On that last point, I urge my col- in this discussion and recognize the bill before the dust had settled in Flor- leagues who hail from States which use significance of our increased vulner- ida. Shortly after, Senator TORRICELLI paper ballots, mail-in voting or absen- ability and why we are going to be and I joined with Senator SCHUMER to tee voting to take a close look at this using the gasoline when in reality we put together yet another bill which amendment. Your States will have a will be paying for it. garnered the support of 71 Senators— choice: change their systems or recruit I find it ironic that California is de- fairly evenly split between Democrats top notch legal talent to defend them- pendent on Alaska, and as Alaskan oil and Republicans. Senator DODD, mean- selves in court. declines, that dependence is going to while, introduced legislation that was This choice will also be faced by shift over to the importation of oil to supported by all Democratic Senators. States using lever machines, punch California from Iran, Iraq, wherever— Four months ago, Senators DODD, cared systems, optical scans, and DRE Saudi Arabia. Of course, New York is BOND, SCHUMER, TORRICELLI, and I machines. dependent on Venezuelan oil as well. If reached a bipartisan compromise. That If this amendment is agreed to, per- we do not do something domestically, was brought before this body in Feb- haps we should move to increase the we are going to pay the piper. ruary. Through the passage of thought- Justice Department appropriation so I yield the floor. ful amendments offered by my col- that it can ready a team of lawyers for leagues on both sides of the aisle, we f each State. have substantially improved the under- Finally, I thank my staff on the EQUAL PROTECTION OF VOTING lying bill. The final product is legisla- Rules Committee: Brian Lewis, Leon RIGHTS ACT OF 2001 tion which ensures that all Americans Sequeira, Chris Moore, Hugh Farrish, who are eligible to vote, and who have The PRESIDING OFFICER. Under and our staff director, Tam Somer- the right to vote, are able to do so, and the previous order, the Senate will now ville—all of whom have been deeply in- to do so only once. This bill strength- resume consideration of S. 565, which volved in this issue from the begin- ens the integrity of the process so that the clerk will report. ning—and, from Senator DODD’s staff, voters know that their right to vote is The senior assistant bill clerk read as Shawn Maher, Kenny Gill, Ronnie Gil- not diluted through fraud committed follows: lespie, we have enjoyed working with by others. This legislation will make A bill (S. 565) to establish the Commission them. on Voting Rights and Procedures to study American election systems more accu- Also, on Senator BOND’s staff, Julile and make recommendations regarding elec- rate, more accessible, and more honest tion technology, voting, and election admin- while respecting the primacy of States Dammann and Jack Bartling have been istration, to establish a grant program under and localities in the administration of truly outstanding. It has been a pleas- which the Office of Justice Programs and the elections. ure to work with them. Civil Rights Division of the Department of I look forward to a House-Senate On Senator SCHUMER’s staff, Sharon Justice shall provide assistance to States conference so that soon we may move Levin; and, on Senator TORRICELLI’s and localities in improving election tech- even closer toward enactment of a law staff, Sarah Wills—we appreciate the nology and the administration of Federal opportunity to work with all of these elections, to require States to meet uniform that will improve America’s election and nondiscriminatory election technology systems. folks in developing this legislation. and administration requirements for the 2004 I thank Senator DODD for his stead- I see my colleague from Missouri is Federal Elections, and for other purposes. fast and persistent leadership on this here. I yield the floor.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00010 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2517 The PRESIDING OFFICER. The Sen- and said they didn’t show up on the ment, then a vote on the Clinton ator from Missouri is recognized. registration list so they asked for amendment, and then a vote on final Mr. BOND. Mr. President, how much court orders to be permitted to vote. passage. That is how this will play out time is available on this side? Some of the reasons given, which were over the next 45 minutes or an hour. The PRESIDING OFFICER. Ten min- accepted by our judiciary, were that So with that, let me turn to my col- utes. they should be allowed to vote because league from Oregon and thank him and Mr. BOND. I thank the Chair. I will they were legally registered. One of the Senator from New York for their not require that much time, but please them said: I am him a Democrat. The tremendous support and tireless effort advise me if I go over 5 minutes. other said: I wanted to vote for Gore. on behalf of this piece of legislation. Mr. President, I come back again to The other said: I was suffering from a The PRESIDING OFFICER. The Sen- congratulate and thank the chairman mental illness. My favorite was: I am a ator from Oregon. and ranking member of this com- convicted felon and didn’t realize I had Mr. WYDEN. Mr. President, I begin mittee, Senator DODD and Senator to reregister. That person, and 1,300 by expressing my thanks to Senator MCCONNELL, for their great work. others, were allowed to vote even DODD and Senator MCCONNELL. Both of It has been 10 long, arduous months though it is against the law for a felon them worked tirelessly with me and to do something that is vitally impor- to vote in Missouri. Senator CANTWELL and others. tant to the health and the vitality of Subsequent investigation by the sec- This legislation we will vote on will our system of legislative government. retary of state in Missouri found that now protect an innovation, a pio- The 2000 election opened the eyes of 97 percent of those who were ordered to neering step forward that I think is many Americans to the flaws and fail- vote by judges voted illegally. They going to make a huge difference for the ures of our election machinery, our were not entitled to vote. American people; that is, voting by voting systems, and even how we deter- That is why the whole structure of mail. mine what a vote is. We learned of this bill is so important. Provisional What we saw earlier, as the debate hanging chads, inactive lists, and we voting will be permitted, but actually went forward, was various proposals discovered our military votes were putting the ballot in the ballot box will that would have put new hurdles, new mishandled and lost. We learned that be delayed until there has been an op- obstacles in front of this legislation legal voters were turned away while portunity to ascertain that the person that has empowered thousands and dead voters cast ballots. We discovered is a registered voter. thousands of Americans. I am very that many people voted twice while too We have seen fraud. I think perhaps proud that my State has led the way in many were not even counted once. it was best described by the Missouri this innovative approach, but I think it That is why we are here today. The Court of Appeals in shutting down the is the wave of the future. final compromise bill—and it is a com- fraudulent effort to keep the polls There is a reason why millions of promise in the true essence of the open. The argument in St. Louis City older people and disabled people and word—tries to address each of these was that the Democratically controlled others enjoy and prefer voting by mail. fundamental problems we have discov- City Election Board in the Democratic They like the convenience, and they ered and to meet the basic test. That City of St. Louis was conspiring to understand that it meets the test that test, I trust all of my colleagues now keep the Democratic voters in St. Senator BOND and others have talked understand, is that we must make it Louis City from voting for Democratic about, which would be a winning com- easier to vote but tough to cheat. candidates. That was the suit filed by bination for the American people. In the 2000 elections, fraud was preva- the dead man who said that the long Let’s make it easier to vote but not lent. Fraud was too frequently found. lines kept him from voting. The Mis- easier to cheat. Voting by mail has Among the most bizarre and fraudulent souri Court of Appeals said it best in proven it is up to that challenge. We efforts that occurred in St. Louis was its order shutting down the polls when have shown in our State that we will the filing of a lawsuit by a dead man to it said: come down with a every aggressive ef- keep the polls open beyond closing fort against those who try to abuse the Commendable zeal to protect voting rights time because he feared the long lines must be tempered by the corresponding duty system, try to exploit it. We have not would prevent him from voting. That to protect the integrity of the voting proc- seen any significant problem with it. probably wasn’t the only problem he ess. Equal vigilance is required to ensure It is a bipartisan effort. Senator had. His identification was later that only those entitled to vote are allowed SMITH has joined with me in it. Senator switched to that of a partisan political to cast a ballot. Otherwise, the rights of CANTWELL has made the case for the operative for a congressional candidate those lawfully entitled to vote are inevitably State of Washington. even though evidence showed that man diluted. I close by saying that over many had already voted that day. Unfortu- We have seen not only people who months Senator DODD and Senator nately, the practice of the deceased have rightfully been denied the oppor- MCCONNELL, knowing that we were voting was not limited to the lawsuit tunity to vote. Unfortunately, the camped out with their staffs, could to keep the polls open. We have had a votes of those who have the right to have said, look, this is an issue that number of ballot registrations made in vote have been diluted and have been only a couple States care about, but the name of people who have departed canceled because fraud has been preva- they did not. I think they have showed this earthly veil. lent in St. Louis, and I believe in other their commitment not just to pro- Albert ‘‘Red’’ Villa registered to vote areas of the country. tecting people in Oregon or Washington on the 10th anniversary of his death— This bill goes a long way towards who feel so passionately about this truly a significant theological effort. achieving the goal of making it easier subject, but I think they understand The deceased mother of a prosecuting to vote and harder to cheat. this truly is a pioneering step forward. attorney in St. Louis City was also reg- I urge the support of my colleagues It is part of the wave of future. It is the istered to vote. for this very important bipartisan next step before we see people voting This was the mayoral primary of 2001 measure. I extend my thanks to the online. which got people excited in St. Louis chairman and the ranking member of From the beginning of this debate, I because it wasn’t a minor election the Rules Committee. have said that this legislation should where we just voted for the President, Mr. DODD. Mr. President, I yield 2 be about deferring voter fraud and pro- the Governor, the Senators, and Con- minutes to the distinguished Senator moting voter participation. Many gress. We were talking about relevant from Oregon, Mr. WYDEN, and 2 min- weeks of negotiations finally have pro- votes there. We were talking about the utes to the distinguished Senator from duced an agreement that I believe will race for the mayor’s office which con- New York, Mr. SCHUMER. do both. trols votes and which controls jobs in For the information of Members, at If first-time Oregon voter Mabel the City of St. Louis. the conclusion of that, depending on Barnes had mailed in her ballot under We also had our own outrageous sys- the time left of my friend from Ken- the election reform bill that was on the tem of provisional voting underway in tucky, we will close debate, and there Senate floor 6 weeks ago, her vote St. Louis City. People went to judges will be a vote on the Roberts amend- probably would not have counted—even

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00011 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2518 CONGRESSIONAL RECORD — SENATE April 11, 2002 if she were legally registered to vote. Since Oregonians voted overwhelm- for which our Founding Fathers fought Her vote would have been tossed away ingly to use a vote-by-mail system, and died. simply because she failed to include participation has gone up and fraud has Voting should be accessible, accu- with it a photo ID or other proof of gone down. In fact, in the last federal rate, and speedy in all places, all of the identification. election, 80 percent of the registered time. This is not a someplace, some-of- Mabel Barnes would not have been voters cast a ballot. Since the May 1996 the-time proposition. The right to vote alone. Under the bill that was on the primary, 13 cases of fraud have been is too sacred. This bill provides both Senate floor then, millions of first- prosecuted; convictions were won in the funds and the standards to make time voters would have been five and eight are still pending. In the sure that exactly happens. disenfranchised just because they last federal election, only 192 ballots So I urge all my colleagues to have a failed to bring a copy of their photo ID were not counted because they failed rousing vote of support for this bill. We to the polls. the signature verification test. This is often have an opportunity to support But Mabel Barnes and millions of a pretty good record. legislation that makes our lives better. other first-time voters won’t have to This legislation should be about de- That is why we are here. But today we worry about their votes counting now, terring voter fraud and not voter par- have an opportunity to make a little and they won’t have to worry about ticipation. The agreement Senators history. And it is something we will never forget. stopping by a copy center before they CANTWELL, BOND, MCCONNELL, MURRAY, vote. That’s because over the course of and I have reached does this. The time PROVISIONAL VOTING AND VERMONT the last few weeks Senators CANTWELL, to fight fraud is at the beginning of the Mr. JEFFORDS. Mr. President, I BOND, MCCONNELL, MURRAY, and I have process—at the time of registration. would first like to thank Senator DODD for all his hard work on this very im- worked out an agreement that protects That is what our agreement does. At portant bill. This legislation will help Oregon’s vote-by-mail system and the the same time, I have also said that ensure that the problems that occurred right to have every mail-in-vote by a legislation should not make it harder during the 2000 elections will not hap- legally registered first-time voter for legally registered voters to cast a pen again, and hopefully increase the count. ballot, or discourage people from vot- number of Americans that participate The agreement Senators CANTWELL, ing. The agreement will do this as well. in the most sacred right of a democ- BOND, MCCONNELL, MURRAY, and I This has not been an easy task. I racy, voting. I would like to take this worked out gives voters who register want to commend Senators BOND, opportunity though to discuss the pro- by mail more options to verify their CANTWELL, MCCONNELL, and MURRAY visional voting section of the bill and identity. Instead of a photo ID or proof for sticking with the negotiations, and its effect on the affidavit voting sys- of residence, first-time voters in a I especially want to thank Chairman state may put their driver’s license tem we have in Vermont. DODD for the support he and his staff Mr. DODD. Mr. President, I thank number or the last four digits of their have given us in reaching the agree- Senator JEFFORDS for his early support social security card on their registra- ment and in including it in the man- of reform of the election system. I also tion card. This means they won’t have agers’ package. appreciate his hard work to ensure to stop by a copy center before they I yield the floor. that the good qualities of Vermont’s register or before they vote. This will The PRESIDING OFFICER. The Sen- election system are protected and rep- mean business as usual for the petition ator’s time has expired. licated around the United States. I drives and campus registration efforts The Senator from New York. would be pleased to take the time to Mr. SCHUMER. Mr. President, I reit- in Oregon, where thousands of first- answer any question he may have on erate what I said last night. Senator time voters register by mail. the provisional voting section of the The agreement also guarantees that DODD was indefatigable on this bill. It bill. voters who cast their ballots by mail would not have happened without him. Mr. JEFFORDS. In Vermont when a have the same provisional or replace- Senator MCCONNELL was steadfast in person arrives at the polling place to ment ballot rights as voters who go to terms of principle, sticking to what he vote and their name does not appear on the polls. Under the agreement if a believed but making sure we had a bill the voter checklist, even though they first-time voter in a state fails to sup- done. I thank them both for their lead- believe they have properly registered, ply a driver’s license number or the ership as well as my other colleagues we have a system that would allow last four digits of their social security who worked so hard on this bill. them to cast a ballot. The voter com- number when they register, their vote Mr. President, democracy works pletes an affidavit form swearing that will still count if state election offi- slowly—sometimes too slowly—but in- they had properly applied but were not cials determine they are eligible under exorably. We had the great scandal in added to the voter checklist. The form state law. In Oregon, this means that Florida where people could not vote, is reviewed by the Board of Civil Au- the vote of every legally registered Or- where people’s votes were not counted, thority at the polling place and unless egonian will count if an election offi- where people voted for the wrong per- the information appears false the per- cial verifies that the signature on the son despite their intention. son is allowed to cast a ballot. If the ballot matches the signature on file Now, almost 2 years later, we are information appears to be false, the with the registration. doing something very real about it. I Board of Civil Authority will not allow Under the agreement, Oregon’s pio- wish it had come sooner, but this bill the person to cast a ballot and refers neering vote-by-mail system will con- has been worth waiting for. them to a local judge to get added to tinue, unchanged. And the problem is not just in Flor- the voter checklist for the election I understand where the photo ID re- ida, as we learned. In my State of New that day. quirement sprang from: a concern that York, I voted, first, in 1969. I used the The ballots cast this way are counted mail-in voter registration and bal- same exact type of machine when I exactly like the other ballots and in- loting engender fraud. But in Oregon— voted in 2001, despite all of our techno- cluded in the final totals. The informa- the only all vote-by-mail state and the logical changes. And the lines to vote tion from the approved affidavits is im- state that pioneered motor voter— in New York are legion. Just because mediately used to update the voter there is very little fraud. No one has we are the world’s oldest democracy checklist. My question to you Senator come forward with proof of widespread does not mean we have to use the DODD is that while this system is not fraud in Oregon. In fact, I was elected world’s oldest technology. called a provisional balloting system it to the United States Senate in the first At the core of this bill is a view that appears to me that the affidavit voting all vote-by-mail special election. Sen- that changes, that we will help the system conforms to all the require- ator GORDON SMITH, my opponent in States update. ments in this legislation, and therefore that race, never raised any questions Despite the strength of our democ- the State of Vermont would already about fraud. Oregon’s penalties for racy, if we do not do a good job main- have satisfied the provisional balloting fraud are much tougher than federal taining the actual mechanism that requirements of the bill? law—up to $100,000 in fines and or 5 drives it—our voting systems—we fail Mr. DODD. I would agree with the years in jail. the voters and undermine the values Senator from Vermont. In mine and

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00012 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2519 my staff’s review of different States’ guages and by addressing some of the necticut in pushing the Commission to election procedures, Vermont’s system things that can make the voting proc- complete the study. In the meantime, I of affidavit voting would satisfy the ess intimidating or confusing. am introducing legislation to establish provisional balloting requirements of Mrs. BOXER. One idea that has come election day in Presidential election this legislation. up time and again in conversation with years as a legal public holiday. Mr. JEFFORDS. I appreciate Senator my constituents and various organiza- Mr. DODD. I thank the Senator from DODD’s clarification of this issue, and tions in my State of California, is the California. look forward with working with him to possibility of creating a Federal holi- ELECTRONIC VOTING ensure enactment of this important day on election day. I think that this Ms. CANTWELL. Mr. President, I legislation. would be one of the most effective ways take this opportunity to commend Sen- MAINE’S SAME DAY REGISTRATION to ensure that as many people as pos- ators DODD, MCCONNELL, SCHUMER, and Ms. COLLINS. Maine has same day sible have an opportunity to cast their BOND for their dedication and diligence registration so a voter can register at vote and exercise that most funda- in addressing what I believe to be an the polls or at a public office nearby mental democratic right. Many of the issue of critical importance to our and vote on the same day. If someone hard-working people in this country— country—protecting voting rights and challenges the voter’s right on that people for whom election day rep- ensuring the integrity of the electoral day, the ballot is marked as a chal- resents a unique opportunity to make system in our Nation. Especially given lenged ballot. If a voter goes to the their voices heard—find it difficult to the events in the world today, making polls to vote and does not have identi- get to the polls. Many work long hours, certain that each citizen’s vote is fication or does not appear on the vot- or have children that they have to get counted and promoting public trust ing rolls, the presiding election official to school. Would the Senator from Con- and confidence in our election process will challenge the voter, and his or her necticut agree that we should make it is crucial. ballot will be treated as a challenged easier for these people to cast their The State of Washington has a long vote. The presiding election official vote as well? and trusted history as a leader in elec- keeps a list of voters challenged and Mr. DODD. I agree with the Senator tion administration. Through great ef- the reason why they were challenged. from California, and I would tell her forts and cooperation, the state has pi- After the time for voting expires, the that is the idea behind the entire legis- oneered such programs as Motor Voter, presiding election official seals the list. lation. We want to make sure that all provisional balloting, vote by mail, and The challenged votes are counted on eligible voters have an opportunity to absentee voting. election day. In the event of a recount, cast their ballot and have it counted I would like to thank Senator DODD, and if the challenged ballots could fairly and accurately. the chairman of the Rules committee Mrs. BOXER. I had considered offer- make a difference in the outcome of for his support for an amendment that ing an amendment to this bill that the election, the ballots and list are ex- I offered with Senator MURRAY’S sup- would in fact create a federal holiday amined by the appropriate authority. port that has been adopted. The on election day to help give as many The distinguished chairman of the Sen- amendment guarantees that states are people as possible the opportunity to ate Committee on Rules has done ex- able to continue using mail-in voting, vote. I would ask my friend from Con- cellent work crafting the important while also providing new safeguards to necticut if such a proposal was ever bill before us. I would ask him whether, make mail-in voters aware of how to considered when this bill was being properly fill out their ballots, and how, then, Maine’s system comply with this drafted? Election Reform Act? if needed to obtain a replacement. Mr. DODD. I say to my friend from Voters in my State are proud of our Mr. DODD. I thank the Senator from California that I did consider including system that offers voters the option of Maine for her excellent question and a provision to that effect in the bill. voting by mail or in the polling place, for her steadfast support for election We looked into the ramifications such and they are extremely committed to reform efforts. Let me assure her that a provision would have and, with time seeing it continue. The mail-in ballot, Maine’s system does comply with the running short, ultimately concluded in my opinion, offers voters several ad- Election Reform Act. that there were too many variables and vantages. First, it allows voters to cast Ms. COLLINS. I would like to thank that we simply did not have enough in- their ballots on their own time and at the senior Senator from Connecticut formation to include it as a require- their own convenience. It also allows for his assistance and congratulate him ment in the bill. We did, however, in- voters to make more informed choices, on the impending passage of this bill. struct the Election Administration ELECTION DAY AS NATIONAL HOLIDAY COLLOQUY Committee—the new election oversight as they are able to consult literature Mrs. BOXER. I thank my good friend body created by the bill—to conduct a sent by the State and by the campaigns from Connecticut and commend him study on conducting elections on dif- in making their decisions. Because for his hard work on this bill; I agree ferent days, at different places, and these votes are cast without the pres- with him when he refers to this as during different hours, including the sure of other voters waiting in line, or ‘‘landmark legislation.’’ The Dodd- possibility of creating an election day without the time crunch of being late McConnell compromise makes many holiday. to work or to pickup the kids, voters necessary improvements in our current Mrs. BOXER. I hope that such a are also less likely to make mistakes elections system and moves us toward study would be thorough in inves- that will disqualify their ballots. the ultimate goal that we all share of tigating each of those possibilities and In addition, the mail-in system is ensuring that our elections are fair, ac- that it would be conducted as soon as very secure. Each ballot that is cast by curate and accessible to all. reasonably possible. If such a study mail requires, that the voter sign the In addition to securing the fairness of were to conclude that the creation of outer envelope. This signature is then elections, however, I believe that it is an election day holiday was possible checked against the voters signature in the best interest of our Nation, as and would indeed further the goals of that is kept on file and only when with any representative democracy, to this bill, we would want to begin the there is agreement that the signatures see that as many people as possible process of making it happen as soon as match is the ballot counted. Wash- participate in the process. Would my possible. Could my friend from Con- ington State has consistently increased friend from Connecticut agree with me necticut assure me that this study will the number of voters choosing to vote that ensuring high turnout at the vot- be thorough and will be undertaken by mail and through provisional voting ing booth is also an important goal in promptly upon enactment of this legis- without any allegations that these terms of improving our electoral proc- lation? types of voting have involved fraud or ess? Mr. DODD. I share the Senator from other misconduct. In fact, the proce- Mr. DODD. I certainly agree with my California’s interest in moving forward dures in place have consistently en- good friend from California, and hope with such a study as soon as is pos- sured the integrity and security of our that this bill will help achieve that sible. elections and led to public confidence goal by improving accessibility, offer- Mrs. BOXER. I look forward to work- in our system that is unparalleled any- ing ballot materials in alternative lan- ing with my good friend from Con- where in the country.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00013 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2520 CONGRESSIONAL RECORD — SENATE April 11, 2002 It has not always been this way. In Mr. DODD. I agree with Senator Mr. DODD. As the lead sponsor of the the early 1990s, we had several close CANTWELL that very serious concerns Senate bill, I am pleased to reassure elections that pointed out the remain about voting by internet. As the Senator from Arkansas that State vulnerabilities in our system. These she knows, this legislation specifically and local election officials would not close elections led Washington to be- requests that the new organization, the have to place an interactive computer come one of the first States to adopt Election Administration Commission, containing voter registration informa- statewide guidelines that ensured that study internet voting. I am looking tion at each polling place to meet the each jurisdiction followed the same forward to seeing what it learns. How- requirements of this legislation. As my rules in determining how ballots are ever, I hope very much that States will colleague from Arkansas indicated, verified and counted. In addition, my think very carefully before moving to States could met this particular re- State also adopted other requirements internet voting, and will make sure quirement if they had an interactive for testing and procedural consistency. that the security concerns are fully ad- computer containing the States’ voter It is my hope that this legislation will dressed. registration list at each county clerk’s lead other states to follow our example That said, the Senator is correct that office. I and others who crafted this and institute similar guidelines and nothing in this bill prohibits states language were aware that polling procedures that will result in more from implementing voting on a remote places in Arkansas and in many other people voting and making sure that all electronic system like the internet, as States lack phone service and therefore votes are properly cast and counted. long as the system is certified by the it would be impractical to set up a Our challenge, at the Federal level, is new Election Administration Commis- computer network or the like at each to ensure that in passing legislation sion, and complies with the other polling location during every Federal that reduces hurdles to civic participa- standards in the legislation. election. tion across the country, we respect the I agree with the Senator that it is Mrs. LINCOLN. I thank my colleague role of the States in selecting types of important to welcome the development for his comments. Another concern voting that work well for their citizens of new election technologies and it was that has been brought to my attention and lead to maximum participation. I my intent, and my cosponsors’ intent is the funding mechanism in the Sen- believe that this bill as amended does to provide the states as much flexi- ate bill. I know my colleague from that, and I would like to thank the bility as possible to accommodate in- Connecticut is aware that the method chairman of the Rules Committee for novation while still implementing nec- through which Federal funds are dis- his commitment to this bill and to en- essary minimum standards that will tributed to State and local govern- ensure that all our citizens’ right to suring that states have the flexibility ments to meet the requirements in this vote is protected. to keep their systems in place. bill is very different than the House I would like to address one additional Ms. CANTWELL. Thank you, Mr. Chairman. I appreciate all your efforts bill. The House bill distributes Federal point. In drafting legislation, it is funding based on the proportion of eli- often very difficult to look to the fu- on this legislation, and I agree that gible voters in each State. This is com- ture and anticipate the impact that this bill is drafted in a manner that will not limit the development and im- monly referred to as a formula. legislation will have on new tech- Conversely, the Senate bill estab- plementation of new election tech- nologies. To truly reform the Federal lishes three separate discretionary nologies so long as the new tech- election process, this legislation must grant programs to help States improve nologies satisfy security protocols and remedy the infirmities of the present their voting systems and meet the re- system. However, it also must be for- meet the requirements of the minimum standards. I also hope that this legisla- quirements that are in this bill. I cer- ward-looking in its approach. It should tainly support the goal of helping all welcome the implementation of new tion will in fact spur the development States improve their voting systems. election technologies. The flexibility of of new election technologies that are However, I also support helping all this legislation to accommodate inno- more voter friendly and more cost effi- states get their fair share of federal vation will be the ultimate strength of cient. funding. Based on my knowledge of federal election reform. INTERACTIVE VOTER REGISTRATION AND competitive grants in other Federal I firmly believe that voting by com- FUNDING MECHANISM puter, whether by internet or some Mrs. LINCOLN. Mr. President, I rise programs, I am concerned about this other remote electronic system, is to commend the sponsors of the elec- program turning into a competition likely to happen in many states in the tion reform bill that is before the Sen- among professional grant writers. I do near future. In fact, Arizona has al- ate today. I especially want to recog- not think such a system helps my ready held a party caucus in which vot- nize Senators DODD and MCCONNELL State nor do I believe it is good public ers were permitted to vote over the who have worked tirelessly to over- policy when you are applying new man- internet. At the same time, I believe come many obstacles in an effort to dates on thousands of jurisdictions in that the security concerns are such strengthen the fundamental right of all all 50 States. So I would appreciate that most States, mine included, are citizens to participate in the demo- knowing my colleague’s view on how not yet ready to provide this option to cratic process. I wholeheartedly sup- he and others who drafted this legisla- voters. port their overarching goal to make it tion envision the discretionary grant However, in the interests of looking easier for every eligible American to process working in practice. What if to the future, I would like to seek clar- vote and to have their voted counted Congress only appropriates half of the ification from the chairman of the and I appreciate their willingness to funding that is authorized in this bill? Rules Committee about how this legis- work with me to address some specific Will there still be enough for all states lation would affect internet or other concerns about how the bill may im- to meet their needs, or is it first come forms of remote electronic voting. pact my home State of Arkansas. first served? Is it the Chairman’s understanding I wish to engage in a brief colloquy Mr. DODD. I am certainly aware of that the bill as it is currently written with Chairman DODD to clarify for the the concerns raised by my colleague would not prevent States from offering record his understanding of how two from Arkansas. I can assure my good voters the option of voting on the specific provisions in the legislation friend and other Senators who have internet, so long as the State could will work in practice. The first point I raised similar concerns that we have show that the internet voting system want to raise involves the requirement not designed a funding distribution complied with the security protocol in the Senate bill that all States im- system where only the best applica- standards written by the new Election plement a statewide interactive voter tions will be funded. In fact, we have Administration Commission, and that registration list. Is it the Senator’s un- carefully calculated the amount of the voting system also complied with derstanding that States can meet this funding we feel will be needed for all the requirements of the legislation on requirement by having an interactive states and local jurisdictions to meet accessibility for the disabled, providing computer containing voter registration the minimum standards we have in- an audit trail of ballots, and by pro- information at each county clerk’s of- cluded in this legislation. Therefore, I viding voters a means to make certain fice but not at each individual polling appreciate the opportunity today to they had not made a mistake? location? clear up any confusion surrounding

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00014 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2521 this issue by saying that I and others Commission is mandated to conduct a install these special systems and con- who crafted this bill fully intend for number of studies on various election struct the infrastructure necessary to the Justice Department to distribute issues, and report its findings to the give the disabled the same opportunity funding to all states and local govern- President and Congress. Does the Sen- to enter a voting booth and exercise ments based on the need for improve- ator from Connecticut agree that, at their right to vote. ment they identify in their application. the very least, the issue of full-time Mr. DODD. As the Senator has indi- Our intent certainly is not to enact a RVers voting rights would be a suitable cated, the managers’ amendment in- jobs program for professional grant topic for the Commission to study? cludes a provision to ensure that each writers no do we expect states or local Mr. DODD. Yes, I certainly agree state will be guaranteed a minimum of governments to hire grant writers in with the Senator from California. We one half of one percent of the grant order to receive Federal funding under do not want to disenfranchise anyone, money available under the act, which this bill. As chairman of the Senate accidentally or otherwise, who is eligi- is approximately $17.5 million dollars Rules Committee, I certainly intend to ble to vote, and we need to address the over five years. I am glad this act will closely monitor the implementation of unique set of circumstances sur- help address the concerns of small, this legislation to ensure it is applied rounding our fellow citizens who have rural States like Wyoming, and I look in practice as Congress intended. You chosen not to live in one particular lo- forward to working with the Senator have my word that I will be the first to cation, but rather to travel year round form Wyoming to address any further object if I think the federal agency across our great nation. The right to concerns or questions he may have on charged with distributing funding is vote of all full-time RVers needs to be to how this act will impact rural not distributing resources to eligible safeguarded. Certainly this is an issue states. recipients in a fair and equitable man- the Commission could study. DETERRING VOTER FRAUD AND PROMOTING ner. Mrs. FEINSTEIN. I thank the Sen- VOTER PARTICIPATION Mrs. LINCOLN. I thank my friend ator for his remarks and for his leader- Ms. CANTWELL. Mr. President, I from Connecticut for his clarification ship on this bill. I am pleased that he rise to thank my colleague Senator on these two issues. Based on his assur- shares my strongly-held view that we BOND for his hard work in making sure ance I look forward to supporting this need to ensure that the voting rights of that the identification requirements bill. all American citizens, regardless of for first time voters in this bill did not FULL-TIME RECREATIONAL VEHICLE OWNERS where they reside, needs to be safe- have the unintended consequences for Mrs. FEINSTEIN. Mr. President, I guarded. people who vote by mail. I think that wish to engage the chairman of the PATH OF TRAVEL we all agree that any election reform Committee on Rules and Administra- Mr. ENZI. Mr. President, I would like passed by the U.S. Senate should be tion, Senator DODD, in a colloquy con- to inquire of the Senator from Con- about two things: deterring voter fraud cerning the voting rights of thousands necticut, Mr. DODD, on the intent of and promoting voter participation. of American citizens, many of whom the grants to be awarded to states for Many weeks of negotiations finally are members of the Good Sam Club, the purpose of constructing ‘‘polling have produced an agreement that I be- which is based in California. places, including the path of travel.’’ Is lieve will do both. Thanks to hard work The citizens to whom I am referring ‘‘path of travel’’ intended to cover the by Senator WYDEN and Senator BOND, own recreation vehicles, RVs, and live construction of paved, asphalted, or together with the managers of the bill, in them year round. The number of similarly surfaced disabled or handi- Senator DODD and Senator MCCONNELL, full-time ‘‘RVers’’ grows larger each capped parking spaces, as well as side- and Senator MURRAY and Senator year. These individuals, most of whom walks, ramps, and similar disabled ac- SMITH, we have come up with a solu- are retirees, have sold their conven- cess ways to the buildings which house tion. The compromise addresses Sen- tional homes and travel around the the voting system? ator BOND’s concerns about making country year round in their RVs and Mr. DODD. I thank the Senator from certain first time voters are who they mobile homes. Ostensibly, they do not Wyoming for his question. The grants say they are, but that doesn’t have an have a permanent address. to be awarded to states under this act unfair and burdensome impact on pro- While nobody can question these in- would include construction of these gressive states like Washington and Or- dividuals’ right to travel, the fact is types of infrastructure improvements, egon where many—and in the case of that this lifestyle does create a series and are intended to include things like Oregon all—voters vote by mail. This of logistical problems, particularly as disabled parking spaces, sidewalks, compromise will not simply benefit it relates to their ability to establish a ramps, and similar access ways. voters who vote by mail in Washington domicile. While they may not remain Mr. ENZI. As the chairman is aware, in Oregon, but will benefit all States at any one location, full-time RVers these grants are very important to that allow voters to vote by mail. must still register their vehicles, main- small, rural states like Wyoming, This compromise does two things. tain a current driver’s license, obtain which have polling places in some very First, it creates a mechanism for elec- insurance, have some kind of legal ad- remote or rural locations. In Wyoming, tion officials to verify the identity of dress, and pay taxes. They also have, or we actually have some polling places in first time voters who register by mail should have, the right to register to trailers on gravel roads. Because the before they get to the polls. And sec- vote if they so choose. Act requires a special voting system ond, it makes clear that voters who Two years ago, the voting rights of for the disabled to be installed in each vote by mail, just like voters who go to over 9,000 full-time RVers who were polling place, Wyoming needs to be the polls, can still cast a provisional or registered to vote in Polk County, TX, sure it can accommodate the disabled replacement ballot even if they fail to was challenged in court. The plaintiffs by making certain the state can pay provide identification in their ballot in this case argued that since these in- for these special systems and ensure when they cast their vote by mail. The dividuals did not reside in Polk County the disabled can get into the building provisional or replacement ballot will on a permanent basis, they constituted to vote. These types of grants will en- be counted as long as elections officials a significant voting block of ‘‘non- sure that the buildings which house the determine the voter’s eligibility under residents’’ that was likely to have an special voting equipment for the dis- the laws of their State. effect on the outcome of the election, abled are ADA accessible. With regard to the first part of the and that their votes should be dis- I am also aware the chairman has in- compromise, election officials in allowed. Ultimately, the full-time cluded the Collins amendment in the States like Oregon and Washington RVers’ constitutional right to vote was manager’s amendment to the act. I un- will be able to satisfy themselves about upheld in court, but future challenges derstand this amendment is intended the identity of a first time voter before are likely. to assure a minimum amount of grant they arrive at the pools or cast their The legislation that we are consid- money is available to each state to im- ballot by mail for the first time. If the ering today would establish an Elec- prove their voting systems and infra- election official is able to compare the tion Administration Commission, EAC. structure. This is important to the information that the voter provides on Among other responsibilities, this State of Wyoming so it can afford to his or her voter registration card with

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00015 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2522 CONGRESSIONAL RECORD — SENATE April 11, 2002 information contained in an existing widespread fraud in Oregon. In fact, I make a change to the identification state database such as the Department was elected to the Senate in the first provision that all states can comply of Motor Vehicles, and the information all vote-by-mail special election. Sen- with. matches, the voter will not be asked to ator GORDON SMITH, my opponent in I have said repeatedly that requiring produce independent identification that race, never raised any questions first time voters to verify their iden- when they vote. In fact, even if a voter about fraud. Oregon’s penalties for tity is a reasonable means of pre- fails to provide the identification infor- fraud are much tougher than federal venting fraud, and in fact many States mation at the time they vote, the vote law—up to $100,000 in fines and/or 5 already have this requirement. may still be cast as a provisional or re- years in jail. But I agree completely with the Sen- placement ballot and will be counted Since Oregonians voted overwhelm- ators from Washington and Oregon as long as State elections officials ingly in 1998 to use a vote-by-mail sys- that voters who vote by mail, but fail verify the voter’s eligibility under the tem, participation has gone up and to include a copy of their photo identi- laws of the voter’s State. Is that the fraud has gone down. In fact, in the fication, should be able to cast a provi- Senator’s understanding? last Federal election, 80 percent of the sional ballot, just like voters who go to Mr. WYDEN. The Senator is correct. registered voters cast a ballot. Since the polls without their identification. Under the agreement you and I have the May 1996 primary, 13 cases of fraud By ensuring that it is a state or local worked out with Senators BOND, have been prosecuted; convictions were election official that is making the de- MCCONNELL, DODD, and MURRAY, voters won in five and eight are still pending. termination about whether a provi- who register by mail are given more In the last federal election, only 192 sional vote is valid, I believe we have options to verify their identity. Our ballots were not counted because they built in significant safeguards that will agreement protects Oregon’s vote-by- failed the signature verification test. prevent fraud. I also agree that allowing election of- mail system, as well as the majority of This is a pretty good record. Has the ficials to verify the identity of a first voters who vote by mail in Wash- Senator had similar results in her time voter by matching specific infor- ington, and provides protections to State? mation about the voter on the registra- make sure that every mail-in vote by a Ms. CANTWELL. I agree completely tion card to an existing state record legally registered first-time voter can with my colleague from Oregon. The with information on the voter, is a rea- be counted. mail in voting system in my State has sonable means to prevent fraud. Instead of a identification or proof to allowed voters to have flexibility in de- I am happy to support this com- resident, first-time voters in a state ciding whether to go to the polls or promise and look forward to passing may put their driver’s license number vote from home. In our last election, the final legislation later today. or the last four digits of their Social over 65 percent opted to vote by mail. Mr. WYDEN. This agreement follows Security card on their registration Our system has increased participa- the right priorities by fighting fraud at card. tion, and has resulted in no serious al- the beginning of the process—at the If that number, along with the name legation of fraud. Like the mail in sys- time of registration. That is what our and date of birth of the voter matches tem in Oregon, I was elected in a very agreement does. At the same time, I another State record, like the Depart- close election where the majority of have also said that legislation should ment of Motor Vehicle’s, the voter ballots were cast by mail, but no alle- not make it harder for legally reg- won’t be required to provide any fur- gations of fraud were raised. istered voters to cast a ballot, or dis- ther identification. This means they In addition, voting by mail allows courage people from voting. The agree- won’t have to stop by a copy center be- voters to be significantly more in- ment will do this as well. fore they register or before they vote. formed. By sitting at home with their This has not been an easy task. I This will mean business as usual for ballot and their sample voting mate- want to commend Senators BOND, the petition drives, the campus reg- rials, voters are able to make more in- CANTWELL, MCCONNELL, and MURRAY istrations and every get-out-the-vote formed choices without the pressures for sticking with the negotiations, and effort in Oregon, where thousands of of a busy schedule or a line at the I especially want to thank Chairman first-time voters register by mail. booth. DODD for the support he and his staff Without this compromise, every one of I am very pleased that this agree- have given us in reaching the agree- these initiatives to get more citizens ment provides protections that will ment and in including it in the man- voting would have been stymied. make sure that all legally registered agers’ package. The agreement also guarantees that first time voters who vote by mail, will Mr. LIEBERMAN. Mr. President, voters who cast their ballots by mail still have their votes counted. Their amendment No. 2926 will ensure that have the same provisional or replace- votes will be counted if State election the Election Administration Commis- ment ballot rights as voters who go to officials determine the voter is prop- sion studies State recount and contest the polls. Under the agreement if a erly registered according to Wash- procedures, so that we lessen the first-time voter in a state fails to sup- ington State law. In Washington, if a chance that what happened in Florida ply a driver’s license number or the first-time voter forgets to include a during the November 2000 election will last four digits of their Social Security photocopy in their ballot, the election occur elsewhere. number when they register, their vote official will verify whether or not the That election revealed many prob- can still be counted even if their ballot voter is in fact legally registered by lems in our Nation’s voting procedures, is received without a photocopy of following the Washington state law, the bulk of which are being addressed identification, if the state election offi- and performing a careful verification of in this historic legislation. When states cials determines that the voter is in the signature on the ballot. fully implement the provisions of S. fact legally registered under state law. This compromise makes sense be- 565, I am confident that Americans will These provisions will also not take ef- cause it allows each state to best deter- have good reason to have greater con- fect until January of 2003 ensuring that mine how to count provisional ballots, fidence that their Federal elections are this year’s election will not be dis- and because it provides the same pro- fair, efficient, and accurate down to rupted by new requirements. tection to mail in voters that are al- the last vote. Under the agreement, Oregon’s pio- ready provided to voters who vote at But, we also have to be concerned neering and successful vote-by-mail the polls in the original election re- about what occurs after those ballots system will continue, unchanged. form bill. have been cast, especially in cases I understand the concerns that I ask the Senator if he agrees that when an election is excruciatingly sparked the identification require- this is how the compromise will work? close. In November 2000, we all found ment: a concern that mail-in voter reg- Mr. BOND. I agree with my col- out what can happen in our electoral istration and balloting engender fraud. leagues Senator WYDEN and Senator democracy when recounts are required But in Oregon—the only all vote-by- CANTWELL, as to how the compromise or when elections are contested to de- mail state and the state that pioneered works, and I would like to thank them termine who won and who lost. In Motor Voter—there is very little fraud. for working diligently on this com- broad terms, the system that was de- No one has come forward with proof of promise. I am pleased we were able to signed by our Founders and has evolved

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00016 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2523 over the years is a brilliant one. But questions, things will be much less con- Under the bill, voting systems must given the sheer size of this country, the fusion and frustrating to all Americans notify voters if they ‘‘over vote’’—that complexity of many State regulations, come the first Tuesday in November. In is, if they vote for too many candidates and the various ways and means of vot- perfect hindsight, I think we would all for a particular office or position. Vot- ing, we must ensure that the system we agree that it is not one’s benefit for us ers must be given the opportunity to cherish is brought fully up to speed to rely on the courts or others to tell change their ballot, and verify that it with the times in which we live. us the rules as we go along. comports with their wishes before cast- Even after we say good riddance to The amendment would simply re- ing it. chads and butterflies, we will certainly quire the new Election Administration Voting systems must provide non- continue to have close Federal elec- Commission being created by this leg- visual accessibility for the blind and tions, and elections in which the first islation to systematically examine the visually impaired. They must provide count has to be verified for one reason State laws and procedures governing ballots in other languages for voters or another. Therefore I believe we will recounts and contests in Federal elec- with limited proficiency in English. not have completed the job of election tions, determine the best practices, The bill requires that voters be in- reform until we make sure that we— and, report to the President and Con- formed of their right—and be allowed— governments at all levels, as well as gress whether or not state procedures to cast provisional ballots if their eli- the public—better understand how are adequate. The commission would gibility is challenged at the polling States determine when votes should be also study whether or not states have place, and to find out if their votes are recounted, how votes should be re- adopted uniform definitions for what counted. counted, and who should do the re- constitutes a vote on each kind of vot- The bill also requires the States to counting. We must not allow this win- ing machinery they use, and whether develop statewide computerized and dow of reform to close without first en- or not there is a need for more consist- interactive voter registration lists during that we know whether or not ency in State recount and contest pro- both to make it easier to vote and to State recount and contest procedures cedures. deter fraud. are adequate, so that in the future it is This amendment recognizes that, as To meet these requirements, S. 565 voters, without the intervention of the is appropriate under our system of gov- provides a 100 percent Federal match. courts, who determine the winners of ernment, administration of Federal There is no unfunded mandate here our elections. elections will still remain primarily foisted on State and local govern- In 2000, of course, it was Florida—sur- the purview of the States. However, be ments. We give them the money they rounded on three sides by water and on directing the Election Administration need to do what we ask them to do. all sides by media scrutiny—that be- Commission to study State recount The bill comes at an absolutely cru- came the poster state for recount pro- and contest laws and procedures and cial time for California. Last Sep- cedures gone awry. But in frames, we promote best practices, I hope we can tember, California Secretary of State must acknowledge that if other States help to ensure that the events in Flor- Bill Jones ‘‘de-certified’’ the punch- had been placed under the same micro- ida following the November 2000 elec- card voting systems in nine counties, scope as Florida, the same problems tion are never repeated. which collectively have 8.6 million reg- would have been revealed. Florida was I want to thank the chairman and istered voters. That’s more people than not the only state that was totally un- ranking member for working with us the total populations of 39 States. The prepared to deal with a neck-and-neck and accepting this amendment, and I counties include: election. urge its adoption by the Senate. Los Angeles (4 million registered vot- The National Commission on Federal Mrs. FEINSTEIN. Mr. President, ers); San Diego (1 million registered vot- Election Reform, chaired so ably by stand on the threshold of passing per- Presidents Carter and Ford, made sev- ers); haps the most important bill of the San Bernardino (700,000 registered eral observations about this issue that 107th Congress. S. 565 makes a long- voters); were evident to the whole world watch- overdue Federal investment in the Alameda (700,000 registered voters); ing events in Florida, but which could most vital infrastructure our nation and apply to many other States as well. has: the infrastructure of democracy. Sacramento (600,000 registered vot- The commission found that recount We have neglected this infrastructure ers). and contest laws are not designed for for too long, and at our peril. Problems The other affected counties are statewide challenges. They noted that in Florida and elsewhere during the Mendocino, Santa Clara, Shasta, and state deadlines did not mesh well with November 2000 Presidential election Solano. the federal schedule. Each county in underscored the effects of our years of Secretary of State Jones gave these Florida made its own decisions about neglect. jurisdictions until the November 2006 what, when, or whether to recount. I was pleased to see that President elections to upgrade their systems, pre- And, perhaps most surprising to all of Bush’s fiscal year 2003 budget request sumably to ‘‘touch screen’’ machines, us involved, in performing recounts, included $400 million for a revolving also known as ‘‘Direct Record Elec- the definition of a vote varied from fund for States for election improve- tronic’’—DRE—devices. county to county, and from official to ments, and additional funds projected You can imagine what a challenge it official within the counties. through fiscal year 2005, for a total of will be to get new systems in place for I do not want to recount, relieve, or $1.2 billion over 3 years. This is com- so many voters. In Los Angeles alone, rehash all of the painful debates from mendable, but I think it falls short of the cost is expected to be between $90 that election. There is no point to be what we need. million and $100 million. In Sac- served now re-enacting the legal battle S. 565 authorizes $3.5 billion through ramento, it will cost $20 million to $30 that transfixed our country and the fiscal year 2006 to help States and lo- million. world. calities: But there is more: civil rights groups But in our ongoing quest to form a Meet new Federal standards for vot- and other plaintiffs sued to move the more perfect union, we have to ask ing systems; date up from 2006 to 2004. Just 2 months ourselves whether we can improve the Replace or upgrade voting tech- ago, U.S. District Judge Stephen V. procedures for future recounts, and nology; Wilson ruled in favor of the plaintiffs. how we can put in place procedures Educate and train voters, election of- So these counties have about 2 that are clear to voters, and I might ficials, and poll workers; and years—less really—to get new systems. add candidates, well before the elec- Make polling places and equipment It is absolutely imperative that we tion. If on the first Monday in Novem- physically accessible to the disabled. pass this bill, work out a compromise ber we are all on the same page as to As Senator BOND and others have with the House, and get Federal funds what constitutes a vote on each type of said, the new standards contained in S. to these—and other—jurisdictions as voting equipment and for every kind of 565 are meant to ‘‘make it easier to soon as possible. voting method, what recount and con- vote, and harder to vote fraudulently.’’ Last month, California voters ap- test procedures are, and other critical What a laudable goal. proved Proposition 41, a $200 million

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00017 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2524 CONGRESSIONAL RECORD — SENATE April 11, 2002 bond measure that will provide 3-to-1 According to the Los Angeles County Counties so that they can tap into Sec- matching grants to county govern- Registrar, Ms. McCormack, each lan- tion 203 grant monies to help them de- ments for the purchase of new election guage costs about $250,000 per election, fray the cost of equipment they pur- equipment. So the State is doing what and she anticipates adding Cambodian chased prior to the November 2000 elec- it can to fix this problem. But it can- for the November 2002 election. tions. not do it by itself. She certainly does not want to dis- According to Ms. Townsend, the Riv- With regard to the bill before us, I enfranchise any voter, nor would I erside County Registrar, prior to the want to commend Senators DODD and countenance such an effort. But I think 2000 elections, Riverside County using MCCONNELL for their hard work in ne- it is important for the EAC to study Pitney Bowes for financing—purchased gotiating the compromise we will be the technical challenges the multi-lin- 4,250 touch screen machines from Se- voting on shortly. Fixing our election gual ballot provision places on a juris- quoia, an Oakland manufacturer, at a systems—fixing the infrastructure of diction like Los Angeles. cost of $14 million amortized over 15 our democracy—is not a partisan issue. For instance, Ms. McCormack told years (for a total cost, including inter- The chairman and ranking member of my staff that while the technology is est, of roughly $20 million). the Rules Committee have done an ad- improving, it is still very difficult to The new DRE system was so success- mirable job. I am confident that the devise ballots in ‘‘character’’ languages ful that Riverside had one of the ten Senate will approve the compromise such as Chinese, even on the newer ma- lowest voter error rates of all counties amendment overwhelmingly. chines. nationwide—less than one percent. I am also grateful that the Senate Prior to the November 2000 elections, Ms. Townsend told my staff that saw fit to approve 2 of my amend- she invited companies to bid on a con- much of the error rate was attributable ments. I offered these amendments to tract to provide a limited number of to paper absentee ballots. ‘‘Over-vot- address concerns my staff and I heard machines with multi-lingual ballot ca- ing’’ is impossible on touch screens, from California election officials, nota- pabilities. She drew just two bids. and ‘‘under-voting’’ is the prerogative bly Bradley J. Clark, the Alameda Another chief concern I heard about of individual voters and, consequently, County Registrar who serves as Presi- is the requirement in Section 102(a) of may not represent an error. dent of the California Association of the substitute amendment that appro- Riverside was the first county na- Clerks and Election Officials, and priate election officials must notify a tionwide to rely exclusively on touch Connie B. McCormack and Mischelle provisional voter in writing within 30 screens and is serving as a model for Townsend, the Los Angeles County and days if his or her provisional ballot is other jurisdictions. The county was Riverside County Registrars, respec- rejected, and the reason for it being re- commended in the report issued by the tively. jected. Election Reform Commission former My first amendment would task the The goal—getting voters properly Presidents Ford and Carter co-chaired. Election Administration Commission— registered—is certainly worthwhile, Clearly, we do not want to punish EAC—created under the bill with but the requirement is administra- Riverside County—or Marin County, studying the technical feasibility of tively cumbersome for some jurisdic- which purchased DRE touch screen ma- providing ballots and other election tions. Los Angeles County, for in- chines and precinct-based optical scan- materials in eight or more languages. stance, received over 100,000 provisional ners in time for the November 2000 Section 101(a)(4) of S. 565 as amended ballots in the November 2000 elections, elections—for acting responsibly. significantly expands the Voting and rejected close to 40,000. As I said a moment ago, I want to Rights Act—VRA—of 1965 requirement In addition to notifying, in writing, thank Senators DODD and MCCONNELL regarding the availability of voter reg- those voters whose provisional ballots for accommodating my concerns. I istration and election materials in for- have not been counted, the amended think the amendments I offered and eign languages. bill reburies election officials in each the Chafee-Reed amendment make an The VRA currently requires the jurisdiction to establish a ‘‘free access already outstanding bill even better. availability of voter registration and system’’ such as a toll-free number or While much of our discussion con- election materials in native languages an official Website that voters can con- cerning specific provisions in the bill for specified ‘‘language minority tact to determine if their provisional may sound arcane or parochial, there is groups’’ if a certain threshold is ballots have been counted. also something much larger at stake reached: No. 1, more than 5 percent of It strikes me that establishing the here. the voting-age citizens within the ju- free access system, informing voters One hundred years ago, democracy risdiction are members of a ‘‘single about it, and allowing them to find this was still very much a tenuous experi- language minority’’ and have limited information out for themselves is more ment around the world. Even in the English-proficiency; or No. 2, there are manageable than requiring the written United States, African-American men at least 10,000 such voters. notification. were largely disenfranchised and The VRA restricts the term ‘‘lan- In either instance, I am concerned women still had to wait for 2 more dec- guage minority groups/single language about protecting the privacy of the ades before they could vote. minority’’ to people who are American data that such a free access system According to a 1999 report issued by Indian, Asian American, Alaskan Na- would contain. Freedom House, in 1900, only 5 percent tives, or of Spanish heritage. S. 565, as amended—Section of the world’s population had the right S. 565, as amended, goes beyond the 102(a)(6)(BN)—is silent on that point. to elect their leader(s). Now, 58 percent four categories above, and the reg- Identify theft is one of the Nation’s of the world has this right. istrars are concerned that it could re- fastest growing crimes. I felt compelled In 1900, no nation elected its leader quire a larger jurisdiction like Los An- to offer an amendment to the bill— by universal adult suffrage; now, 119 geles, San Francisco, or San Diego to which has been adopted—to direct the nations do. That is 62 percent of all of prepare ballots and other election ma- appropriate State or local election offi- the countries in the world. terials in languages not covered by the cials to protect the security of the per- According to the report, entitled De- VRA without first assessing the need sonal information contained in the free mocracy’s Century: for such ballots. access systems that will be created. Like economic progress, political progress We have school districts in these cit- I am pleased that the Senate also has been uneven. But the general trends are ies where 48 different languages are adopted the amendment senators hard to ignore. They reinforce the conclusion spoken. CHAFEE and REED of Rhode Island of- that humankind, in fits and starts, is reject- In the November 2000 elections, Los fered to ensure that State and local ing oppression and opting for greater open- Angeles County spent $2.2 million out governments making multi-year pay- ness and freedom. of a total budget of $21 million to pre- ments for new voting equipment pur- This report was published before the pare registration materials and ballots chased prior to January 1, 2001 are eli- terrorist attacks on September 11. We in six languages: Spanish, Chinese, gible to apply for grants under this have been reminded in a visceral way Japanese, Korean, Vietnamese, and Ta- bill. that enemies of freedom still exist. We galog—the native language of Fili- This amendment, as I understand it, have met those enemies on the battle- pinos. ‘‘grandfathers’’ Riverside and Marin fields of Afghanistan. The battle we

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00018 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2525 now wage is every bit as serious as the But we can never stop forming, in the thorizes $3.5 billion to help states and cold war. I fervently believe that free- words of our Constitution, a more per- localities meet the requirements for dom will win out. Democracy will con- fect union, and to that end we must re- upgrading voting systems, to improve tinue its march. Respect for human alize that haphazard or bureaucratic accessibility for disabled and special rights will grow. disenfranchisement still occurs in needs voters, and to implement new The newly established or emerging America today as a result of arcane or procedures to increase voter turnout, democracies of the world look to us for confusing voting systems. We must re- educate voters, and identify, deter, and inspiration and for guidance. That is alize that millions of Americans who investigate voter fraud. why it is so crucial that we pass S. 565 are eligible to vote still encounter un- Mr. President, the revolutionary idea and set about mending our democracy. necessary barriers to casting their at the core of American democracy is I traveled abroad after the 2000 elec- vote, and to having their votes count- that our government’s power is derived tions, and I heard an earful from for- ed. That disenfranchisement, whenever from the consent of the governed. In eigners. ‘‘Don’t lecture us,’’ they said, and however it occurs, is a blemish on other words, small-r republican govern- and rightfully so. the sanctity of our system, and it is a ment depends upon the small-d demo- While we were able to settle on the blemish that only we—the democratic cratic right to vote. Two hundred years results peacefully, in our courts, the representatives of the people—can help ago. Thomas Jefferson wrote, ‘‘The will events surrounding that election to heal. of the people . . . is the only legitimate shame us, diminish us in the eyes of The provisions in this legislation will foundation of any government, and to those who aspire to be like us, and em- help guarantee access and accuracy in protect is free expression should be our bolden our enemies, freedom’s enemies. the voting booth and ballot box by first object.’’ On April 27, 1994, 43 million black making sure that the fundamental Today, the best way for us to protect South Africans—86 percent of the eligi- right to vote of all citizens is pro- the free expression of the will of the ble voters—cast their first ballots. Can tected, that the ballots of all registered people is to build an election system any of us forget the poignant images voters are counted, and that only those that all Americans can count on, by we saw on television back then of peo- persons who are eligible to vote can do ensuring that all their votes and only ple waiting 8 hours or more to vote, of so. their votes are counted. This legisla- lines of voters seemingly stretching to We can all agree that the November tion furthers our progress toward that the horizon? 2000 election—which I seem to recall noble goal. It deserves our strong sup- Yes, democracy is on the march. But port. it is fragile. We have to protect and reading a thing or two about in the Mr. GRASSLEY. Mr. President, we nourish it. Even here in America—espe- newspapers—exposed serious flaws in have before us a bill that seeks to take cially here in America. We are a bea- our federal election process, and I am unprecedented steps to improve the con to the rest of the world, especially happy to say that this legislation has methods by which Americans vote for to oppressed people everywhere. an answer for most of the flaws ex- We Americans have been complacent posed. our elected officials. To a large extent, and neglectful with regard to our de- Experts estimate that in November Congress is charting new territory in mocracy. We have allowed the infra- 2000, some 2.5 million Americans had an area where States have tradition- structure that sustains it to fray their ballots for President discarded for ally been left to their own devices. around the edges. Our democracy has any number of reasons. In some cases, Congress has in the past stepped in to lost some of its marvelous luster. It is the cause was faulty voting equipment, guarantee the right to vote for Amer- time to restore that luster. in others confusing ballots. This legis- ican military personnel and U.S. citi- Mr. LIEBERMAN. Mr. President, I lation will wisely require States to zens who live abroad as well as to pro- am pleased to rise in support of this adopt voting systems which permit tect the voting rights of Americans historic election reform legislation, voters to verify their ballot choices against discrimination. Most recently, which of course comes before the Sen- and correct errors before their vote is Congress has involved itself in the area ate at a time when our Nation is re- cast. It requires states to adopt sys- of voter registration with the National sponding to new challenges at home tems that address the needs of disabled Voter Registration Act of 1993. How- and abroad. voters, and of voters with limited ever, the Federal Government to date I want to thank Senators DODD and English proficiency. And to make sure has had little or no role with respect to MCCONNELL and other Senators for that these provisions have teeth, the the administration of elections, which their hard work to create this bipar- bill sets Federal standards for voter is traditionally a State and local re- tisan bill, and I thank the majority error rates and requires states to meet sponsibility. leader and the minority leader for or beat those benchmarks. Since this is new territory for Con- working together and ensuring that In the 2000 election, many citizens gress, we must start by asking our- this legislation is being considered at who believed they were eligible to vote selves what we are trying to accom- this time. Our efforts to address this were simply turned away from the plish. The closeness of the 2000 presi- issue together demonstrate to the polls. This legislation will make sure dential election highlighted some of American people that a matter as crit- that all citizens who show up to vote the shortcomings in the voting systems ical as election reform can and should have the right to cast provisional bal- and processes that are used throughout be driven by the national interest, not lots, so that their votes can be tab- the country. Many suggestions have by partisan, parochial or political in- ulated if and when their eligibility is been tossed around for ways we can im- terests. verified. prove elections in the United States After all, the integrity of self-gov- According to reports, in the 2000 elec- ranging from radical constitutional re- erned democracies starts with the right tion, other citizens were denied the forms to minor adjustments on the of citizens to vote, and when that right right to vote because registration lists local level. It is clear to me that the is not shared equally, the strength of were simply not accurate. This legisla- most important role Congress can play our democracy is diminished. tion will require each State to create is to provide the resources, both finan- We must recognize and celebrate the computerized, statewide voter registra- cial and technical, that are necessary fact that American history has been a tion lists and to coordinate those lists for states and communities to admin- story of continual progress in this re- with other databases to ensure that the ister fair and accurate elections. gard. Generation after generation, vot- lists are as up-to-date and as error-free The Dodd-McConnell compromise ing booths have been opened and voting as possible. legislation being considered by the rights extended to groups of citizens The November 2000 election also Senate takes steps to help State and once disenfranchised. That wonderful made it painfully clear that states local governments achieve high stand- process of growth has, over the genera- were being forced to bear the total fi- ards of fairness and accuracy in elec- tions, built a broader and better Amer- nancial burden for federal elections, tions. Still, the bill is not perfect. Be- ica that has become a brighter beacon and many states lacked the funding cause of the nature of compromise leg- of equality and opportunity to people necessary to implement more efficient islation, every Senator can find things around the world. voting systems. This legislation au- they like and things they do not.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00019 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2526 CONGRESSIONAL RECORD — SENATE April 11, 2002 Nevertheless, this bill does accom- improve the administration of elec- Mr. ROCKEFELLER. Mr. President, I plish one of the key objectives of Fed- tions. While it isn’t perfect, the Dodd- thank Chairman DODD and Ranking eral election reform. Central to any at- McConnell legislation represents a Member MCCONNELL for working close- tempt to help States and localities im- positive move that should give Ameri- ly with me to reach agreement on an prove their election systems is pro- cans greater confidence in their elec- amendment to help ensure that the viding funds to do so. It’s usually not tions and our system of government. millions of Americans living overseas lack of will but lack of funds that Mr. DOMENICI. Mr. President, I rise can vote in Federal elections. hinders local reform efforts. I’m today to speak about Election Reform. Millions of Americans live abroad. pleased that this bill provides a total of Today is a good day for this country Some are business people, some are $3.5 billion to States and localities to and the manner in which we hold fed- military personnel, others are stu- help improve the administration of eral elections. dents, and some are Peace Corp volun- elections. Funds will become available For several weeks after the last vote teers. Their votes should count, too. through a newly created Election Ad- was cast in the 2000 elections, Ameri- This amendment is simple and rea- ministration Commission for items cans were inundated with image after sonable, but important. It directs the like upgrading or replacing voting ma- image of ballots being counted and re- Commission created in the Election chines, improving accessibility for dis- counted. As the election was further Reform package to consider the needs abled voters, and simplifying voting scrutinized, numerous stories of voter and concerns of millions of overseas and voter registration procedures. fraud were brought to the nation’s at- voters, both civilian and military per- On the other hand, one problem with tention. sonnel. The amendment directs the this bill is the degree of Federal con- While the list of problems encoun- commission to study the issue of long- trol that will be exerted on elections. tered during the last election is seem- term registration for overseas voters It’s difficult to strike the right balance ingly unending, the point is that there and make recommendations. It would between helping States and localities are improvements to the system that create a single office in every state improve the administration of elec- must be made. Today, we have taken a that overseas voters could contact for tions while still allowing for local very big, very important step in mak- information about voter registration flexibility. This bill contains a number ing sure that this system works better. and absentee ballots. The Commission of well intentioned but specific man- After all, we have no more important is asked to determine if this office dates on States and localities along right as American citizens than the could, and should do more. It states with potentially heavy handed enforce- right to vote. that when election officials reject an ment procedures if they are deemed to In this bill, we set forth some very absentee ballot, the overseas voter be out of compliance with Federal important standards and procedures to should be notified and given an expla- mandates. Still, the bill does provide protect this right. We will require sys- nation on why their application was re- for 100 percent funding for all Federal tems to permit a voter to verify his jected. Finally, this amendment also mandates thus lessening the impact on ballot choices and correct errors before ask states to report on the number of the State and local governments that the ballot is cast so that the voter can absentee ballots, within a reasonable must implement these mandates. be certain that his vote will be for the time frame. Finally, I’m pleased that measures candidate of his choice. Early in my political career, I served were included in this bill, largely In the case where an individual as the Secretary of State for West Vir- through the work of Senator BOND, to claims to be a registered voter who is ginia, so I understand the importance combat the problem of voter fraud. The eligible to vote but isn’t on the official of voting issues and the need to be sen- Dodd-McConnell compromise strength- registration list, that individual will be sitive to the concerns of states. But we ens language in current law providing allowed to cast a provisional vote. The also have an obligation to overseas penalties for giving false information appropriate election official must then Americans who deserve the chance to with respect to voting or voter reg- verify the claim of eligibility. If the vote. istration, or for conspiring to do so. It claim is verified, that vote will be I deeply appreciate the interest and also clarifies that these penalties apply counted. There will then be a free ac- support of Chairman DODD, Senator for giving false information with re- cess system that the voter can use to MCCONNELL and their staffs. I know spect to naturalization, citizenship, or check to see whether that vote was that the bipartisan House Election Re- alien registration. counted, and if not, the system will form legislation includes important The compromise also contains care- give the reason for that decision. provisions for overseas voters, both ci- fully balanced language designed to These measures, and others in the vilian and military, recognizing that protect against the kinds of fraud that bill, are intended to make certain that they, too, deserve to vote. can occur with mail-in voter registra- the people who are eligible to vote are Mr. MCCAIN. Mr. President, this tion and mail-in voting. While efforts given that right. The other side of the afternoon I would like to commend my to strip out these anti-fraud protec- coin is to make certain that people colleagues for passing S. 565, the Mar- tions threatened to unravel the com- who are not eligible to vote are pre- tin Luther King, Jr. Equal Protection promise, I am pleased that this matter vented from voting. One of the things of Voting Rights Act of 2001. I believe was resolved and a compromise was that this bill does is require each state that this historic piece of legislation found that protects the ability to vote to implement an interactive, comput- will resolve many of the problems that by mail without weakening the bill’s erized, statewide, voter registration the country experienced in the Year anti-fraud protections. list. This will also help to make certain 2000 election. In addition, other measures have that noone is able to vote more than This bill includes a number of impor- been added to the bill through amend- once. tant elements that are designed to im- ments on the Senate floor to give One of the concerns that many states prove and safeguard the voting process States more tools to ensure the integ- would have had with this piece of legis- across the country. The bill establishes rity of their voter lists and prevent lation is the cost involved in imple- uniform and nondiscriminatory Fed- fraud, including my amendment to menting these reforms. Recognizing eral standards, including voter notifi- allow for coordination of statewide these concerns, we have authorized $3.5 cation procedures and a uniform error voter lists with social security records billion to make certain that the states rate for voting systems, that will reas- to check for deaths and individuals reg- do not bear the burden of these re- sure voters that their votes will be cor- istered under false identities. Voter forms. rectly registered. The bill also includes fraud is a direct threat to the electoral This legislation represents the hard mandatory procedures for provisional process and these measures represent work of many members from both sides voting that will ensure that all legiti- progress toward eliminating that of the aisle. It is truly a testament to mate voters have the right to vote. Ad- threat. the good that can come from bi-par- ditionally, the bill establishes an inter- At the end of the day, we have a bi- tisanship and I commend all of the active, computerized, statewide voter partisan bill that takes concrete steps Senators who worked so hard to make registration system that will prevent to help state and local governments this happen. future incidents of election fraud. The

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00020 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2527 bill also includes Federal grant pro- it requires broad bipartisan support, as Act, which prohibited discrimination grams that will help the States pay for was achieved in the House of Rep- in the sale, rental, or financing of these new mandatory requirements, resentatives with the Ney-Hoyer bill. housing. and provide incentives for States to re- While I understand the intentions of In every generation, we have tried to place voting machines, educate voters, the proponents of the Schumer-Wyden tear down barriers to full participation and train poll workers. The bill also es- amendment, I was concerned that this in the life of this Nation. tablishes an Election Administration amendment would strip out the anti- But there is one means of participa- Commission to improve the adminis- fraud provisions of the compromise, tion that forms the foundation of every tration of elections across the country and endanger passage of this bill. My other: the right to vote. by using grant programs, studies, and hope was that this impasse would force And that is why we cannot allow recommendations. the parties to work together to achieve those barriers to voting, physical or Most importantly, this bill will play meaningful election reform legislation. otherwise, which so tainted our democ- a role in improving the situation for I am glad that Senators WYDEN and racy in the last century, to stretch disabled voters. The obstacles facing BOND were able to work together to re- into this one. millions of disabled voters have con- solve this obstacle, and that we are In all, it is estimated that between 4 cerned me long before the 2000 elec- now voting on final passage of this bill. million and 6 million Americans were tions. I find it particularly distressing Again, I would like to congratulate unable to cast a vote, or did not have that many of our nation’s disabled vet- my colleagues on passing this legisla- their vote counted, in the 2000 elec- erans, who sacrificed so much for our tion. It is my hope that the House-Sen- tions. country, are confronted with too many ate Conference on this bill can be re- Between 4 and 6 million Americans, obstacles, including inaccessible poll- solved soon. We owe it to the American disenfranchised. In this day and age, ing places and machines that cannot be people to ensure that they have fair, that is simply unacceptable. used by blind and visually impaired open, and accurate elections. It is not enough for Congress to docu- voters. According to a 2001 GAO report, f ment or decry the problems we saw in requested by Senator HARKIN and me, Mr. DASCHLE. Mr. President, I the last election. We need to fix the 84 percent of all polling places in the thank the distinguished chairman and problems before the next election. U.S. are not accessible to disabled vot- ranking member of the Rules Com- It should not matter where you live, ers. Additionally, no polling place vis- mittee, Senators DODD and MCCON- what color your skin is, or who you ited by the GAO had a ballot or voting NELL, for their incredible leadership, vote for. In America, the right to vote system available for blind or visually- perseverence and hard work in getting must never be compromised. Too many impaired voters to mark a ballot with- us a strong bipartisan election reform people have given too much to defend out requiring assistance from a poll bill. that right. Our system leaves it to States to de- worker or companion. I also thank Senators SCHUMER, I would like to thank my colleagues BOND, TORRICELLI, MCCAIN and DURBIN cide the mechanics of election proce- in the Senate for supporting my for their tireless efforts in crafting this dures. amendment to ensure that the Federal bipartisan substitute amendment. But the right to vote is not a State Access Board will be consulted on the Without their collaboration and com- right. It is a constitutional guarantee. new voting systems standards. The Ac- promise, we would not even be consid- And it is up to us to see that it is pro- cess Board has a good deal of insight ering, let alone passing, this very im- tected. Not all States experienced problems and experience in solving the accessi- portant piece of legislation. with voting in the last election. And bility issues facing voters with disabil- It has been several months since we some States that did have problems ities. I am also grateful to my col- first began floor consideration of this have taken steps to rectify them, and leagues for accepting Senator HARKIN’s bill, and I appreciate the tireless ef- forts, and diligence that Senator DODD they are to be commended for that. amendment, which I cosponsored, to But there are still States, nearly 17 make it the Sense of the Senate that has maintained. Without his leadership we would not be here today. months after the 2000 elections, where ‘‘curbside voting’’ should be allowed by equal access to the voting booth is not states only as a last resort. For many By working together, our colleagues have produced legislation that will pro- guaranteed. It is time for this Congress disabled voters, ‘‘curbside voting’’ to step in and enact basic standards, to strips away their sacred right to cast a tect the most basic of all American rights: the right to vote, and to have ensure that every American who is eli- private ballot. It is my hope that these gible to vote can vote. amendments, combined with the $100 that vote counted. This bill represents a fair, balanced, That is what this bill does. million grant program to improve the and responsible approach. It requires States to ensure that accessibility of polling places and the It will ensure that nondiscriminatory their voting equipment meets min- new voting systems standards, will en- voting procedures exist in every polling imum Federal standards for accuracy. sure that the disabled community and place, while strengthening the integ- It says that voters who cast ‘‘over- our Nation’s veterans will become rity of the Federal election process. votes’’ must be notified, and given a more involved in our Nation’s election We all know why this bill is nec- chance to correct their ballot. process. essary. It ensures that voting machines are One major issue for the Senate was We remember the stories from the accessible to individuals with disabil- how to strike a balance between pre- 2000 elections about: inadequate voter ities, as well as those with limited venting voter fraud and ensuring great- education; confusing ballots; outdated English proficiency. er participation by legitimate voters. and unreliable voting machines; poll It establishes statewide computerized The compromise substitute amend- workers who were unable to assist vot- voter registration lists. ment included provisions that would ers who needed assistance because they And it allows individuals whose both include mandatory Federal stand- were overwhelmed or undertrained, or names don’t appear on voting lists to ards to make the election process easi- both; and registered voters who were cast ‘‘provisional’’ ballots. er for legitimate voters and prevent wrongly denied the right to vote, be- If it is determined that the person’s voter fraud. I cosponsored this amend- cause their English was less than per- name was left off the registration list ment, because it struck the necessary fect, their name was mistakenly mistakenly, the vote will then be bipartisan compromise that was re- purged from a registration list, or some counted. This will prevent voters from quired to ensure the passage of election other equally unacceptable reason. having to wait hours at the polls, or reform legislation. We heard reports of police roadblocks not vote at all, simply because of some- I voted against the Schumer-Wyden and other barriers that prevented some one else’s clerical mistake. amendment and against two cloture voters from even reaching the polls, These are not onerous requirements, motions regarding this amendment, be- not in the 1920s or 30s, or even the and they are not unfunded mandates. cause I believed that it would destroy 1960s, but in 2000. This bill includes $3.5 billion for this bipartisan compromise. The issue Today, we are celebrating the 34th States, to help them upgrade their vot- of election reform is so important that anniversary of the 1968 Civil Rights ing systems. And it establishes a new,

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00021 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2528 CONGRESSIONAL RECORD — SENATE April 11, 2002 bipartisan commission to oversee the RECORD the respective members of the I do not minimize at all the impor- grant program and administer voting Leadership Conference; it is a lengthy tance of that. But this bill goes beyond system standards. list—but I express my gratitude to any specific current issue—it goes to I commend my colleagues, particu- them as well for their efforts. the heart of who and what we are as larly the sponsors of this bill, for I join my colleague, Senator MITCH Americans. Aside from the obvious re- bringing us such a fair and balanced MCCONNELL, in expressing our grati- sults of the 2000 elections which pro- proposal. And for committing their tude to the members of our committee, voked, I suppose, this discussion and time and energy to seeing this through. Senator SCHUMER and Senator this bill—this effort is not about ad- I am hopeful that this bill will move TORRICELLI, who worked diligently to dressing a single issue or event. We are through conference quickly so we can bring us to this point. I also want to dealing with the underlying structure implement these reforms as soon as join the Ranking Member in thanking of our very Government. possible. our colleagues who are not part of the Patrick Henry once said that: The If people are denied their right to committee. I say to Senator BOND, I right to vote is the right upon which vote on issues that affect them di- really meant what I said last evening. all other rights depend. The idea that rectly, or if they fear their votes are I think—I say to my colleague through by this legislation we make it easier to not counted, democracy itself is the Chair—but for the provisions you vote in this country and more difficult threatened. If that happens, both par- added, which are the antifraud provi- to scam the system is not an insignifi- ties, and all Americans, lose. This bill sions, I think this bill would be a far cant contribution. It may not get the will go a long way in restoring the in- weaker bill, and I am not sure we notoriety of other provisions, but the tegrity of our system and ensuring that would even have gotten a bill. So while fact that we are proposing to spend $3.5 all Americans will be truly able to ex- not a member of the Rules Committee, billion of taxpayer money on our elec- ercise their right to vote. I know Senator MCCONNELL and I are tions system to allow States to im- Voting is the most basic right in our deeply appreciative of your contribu- prove equipment, to allow people who democracy, the one that guarantees tion to this effort. are disabled, blind to be able to cast a the preservation of all other rights Senator WYDEN and Senator CANT- ballot in private and independently— against governmental tyranny. WELL worked through the Oregon and the idea that we are going to have Let us now pass this bill and protect Washington issue with their respective statewide voter registration lists, pro- that most basic right. colleagues. GORDON SMITH was very visional balloting, these are major, The PRESIDING OFFICER. The Sen- concerned about this; PATTY MURRAY major changes in the law. In addition ator from Connecticut. as well. We thank them for their ef- this bill provides for the establishment Mr. DODD. Mr. President, how much forts. of the independent commission on elec- time remains? The staffs of our respective offices— tions, as well as, of course, the anti- The PRESIDING OFFICER. Nine Shawn Maher, Kennie Gill and Ronnie fraud provisions. minutes. Gilliespie, and Carole Blessington, Sue I have been proud of a lot of things Mr. DODD. How much on the Repub- Wright, and Jennifer Cusick who sup- with which I have been involved in my lican side? ported them as well—I thank them for 22 years. Nothing exceeds the sense of The PRESIDING OFFICER. Almost 4 their work. I also thank Tam Somer- pride I have this morning, as we close minutes. ville, Brian Lewis, and Leon Sequeira out the debate, on this bill and this Mr. DODD. Almost 4 minutes. of Senator MCCONNELL’s staff; Julie Senate accomplishment. Mr. President, why don’t I yield my- Dammann and Jack Bartling of Sen- Mr. DODD. Mr. President, today is an self 5 minutes, and then the Senator ator BOND’s staff; Sharon Levin and historic day in the Senate marked by from Kentucky may want to speak for Polly Trottenberg of Senator SCHU- passage of S. 565, the Martin Luther 1 minute, and then we will just move MER’s staff; Sara Wills of Senator King, Jr. Equal Protection of Voting on to the amendments. TORRICELLI’s staff; Carol Grunberg of Rights Act. It has been my great honor Mr. President, first of all, I explained Senator WYDEN’s staff; and Beth Stein and privilege to have served as Chair- the order of the votes that will occur. of Senator CANTWELL’s staff. I thank man of the Rules and Administration I express my thanks to Senator them for their terrific work. If I have Committee during the pendency of this DASCHLE and his staff and to Senator left anyone out, I will add their names legislative effort and to have served as LOTT and his staff. I know I probably before the RECORD is closed today. floor manager during the Senate con- tried the patience of all the staffs of I said this before, but Senator sideration. both sides over the last number of MCCONNELL and I are of different polit- This is landmark legislation. By en- weeks as we moved this product for- ical parties. We share the distinction of acting this bipartisan bill, the Senate ward to get to the point where we are having gone to the same law school. We will have established the authority, today. I would not want to leave this represent the alumni association of the and responsibility, of Congress to regu- debate without expressing publicly my University of Louisville. We share that late the administration of Federal elec- sincere gratitude to both the Demo- point in common. tions, both in terms of assuring that cratic and Republican floor staffs and I wish to tell him how much I appre- voting systems and procedures are uni- the cloakroom staffs for their expres- ciate his efforts. I know he has a lot of form and nondiscriminatory for all sion of patience—I say that diplomati- things going on. He has had a huge bat- Americans and in ensuring the integ- cally—over the last number of weeks. tle on campaign finance reform that rity of federal election results. The Secondly, I express my gratitude to occurred in the middle of all of this. House has already passed similar legis- my colleagues in the other body who The fact that he and his staff would lation and I am confident that a House- have worked very hard on this as well. find time to help us work through this Senate conference can act expedi- JOHN CONYERS from Michigan is my election reform bill is something for tiously to send this measure to the principal co-author, if you will, of this which I will always be grateful to him. White House. proposal on the House side, along with I know I was hounding him. I know I While we should not underestimate my colleagues here, although Congress- bothered Brian and Jack and others to the significance of this action, we have man NEY and Congressman HOYER also get this done. And they showed pa- been careful not to overstate the fed- have a very important bill they passed tience, as well, to me and my staff. I eral role in the administration of Fed- in the House, and we will be working am really grateful to them for their eral elections. This legislation does not with them. help on that. replace the historic role of state and EDDIE BERNICE JOHNSON, SILVESTRE Lastly—it has been said by others—I local election officials, nor does it cre- REYES, the respective heads of the know we have a lot of important bills ate a one-size-fits-all approach to bal- Black Caucus and Hispanic Caucus, as we deal with. We have the energy bill loting. well as friends from the AFL–CIO, we are considering. We have appropria- It does establish minimum Federal worked hard on this. tions bills. And we are dealing with requirements for the conduct of Fed- The Leadership Conference on Civil homeland security and terrorism eral elections to ensure that the most Rights—I will have printed in the issues. fundamental of rights in a democracy—

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00022 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2529 the right to vote and have that vote After the leadership of the Senate conducted several comprehensive stud- counted—is secure. changed on June 6, 2001, I announced ies on the administration of elections. In Bush v. Gore, the Supreme Court that election reform would continue to GAO found that 57 percent of voting ju- condemned a recount process that was be the primary legislative priority of risdictions nationwide experienced ‘‘ . . . inconsistent with the minimum the Committee. As a result, the Rules major problems conducting the Novem- procedures necessary to protect the Committee held an additional three ber 2000 elections. fundamental right of each voter . . . ’’ days of hearings last year on election Following the Rules Committee hear- The basic equal protection doctrine reform, including an unprecedented, ings, the Committee met on August 2 underlying the majority opinion in and enlightening, field hearing in At- and voted to order reported S. 565, the Bush v. Gore is consistent with the lanta, Georgia on July 23. Equal Protection of Voting Rights Act. principle of equal weight accorded to The Committee received testimony Shortly thereafter, I approached Sen- each vote and equal dignity owed to and written statements from a con- ator BOND and Senator MCCONNELL and each voter. The Court stated in perti- glomeration of civil rights organiza- suggested that we attempt to find a bi- nent part: tions, Congressional House members partisan way to approach election re- The right to vote is protected in and caucuses, State and local election form. We were joined by Senator SCHU- more than the initial allocation of the officials, study commissions, election MER and Senator TORRICELLI and began franchise. Equal protection applies as associations, task forces, academics, meeting to craft a bipartisan com- well to the manner of its exercise. Hav- and average voters. promise that could be enacted prior to ing once granted the right to vote on But it was the field hearing in At- the completion of this Congress. equal terms, the state may not, by lanta that underscored this Senator’s Each of my colleagues brought a later arbitrary and disparate treat- belief that this issue is not about what unique perspective to the table. Sen- ment, value one person’s vote over that happened in one State or in one elec- ator MCCONNELL has been steadfast in of another. tion. Election reform is about the sys- his pursuit of a new, bipartisan agency This legislation ensures that every temic flaws in our Federal election sys- to ensure the continuing partnership eligible American voter is assured of tem that we have long neglected—flaws between the Federal, State and local such minimum procedures. Only then which the problems in Florida in No- governments in Federal elections. can we be sure that every eligible vember 2000 simply brought to our na- Senator BOND’s long-standing inter- American citizen has an equal oppor- tion’s attention. est in ensuring the integrity of Federal tunity to cast a vote and have that Prior to the Atlanta hearing, the elections is reflected in the anti-fraud vote counted, so that the integrity of chief election official of the State of provisions contained in this com- the results of our Federal elections re- Georgia, Cathy Cox, testified to her ex- promise. Senator SCHUMER and Senator mains unchallenged. That is the min- perience. In her words: TORRICELLI were among the first mem- imum that a Federal legislature should As the presidential election drama un- bers of the Rules Committee to intro- do to ensure the vitality of its democ- folded in Florida last November, one thought duce bipartisan reform measures, and racy. was foremost in my mind: there but for the their commitment to the bipartisan This journey to secure our demo- grace of God go I. Because the thought is, if process is evident throughout this com- cratic system of government began the presidential margin had been razor thin promise. when the presidential November 2000 in Georgia and if our election systems had I am grateful to all of them, and to undergone the same microscopic scrutiny general election exposed to the citizens that Florida endured, we would have fared no their very talented staff, for the time of this Nation, and the people of the better. In many respects, we might have and dedication that each one com- entire world, the inadequacies of our fared even worse. mitted to ensuring that a bipartisan Federal elections system. Throughout Ms. Cox testified before the Rules solution could be presented to the Sen- the last fifteen months of Congres- Committee at its field hearing in At- ate. sional review, hearings, and legislative lanta, hosted by my good friend, the Throughout this process, all of us consideration, the efforts of this Sen- Senator from Georgia, Senator MAX were committed to seeing meaningful ator have been guided by the words of CLELAND. Ms. Cox reflected what many reform enacted. All of us were con- Thomas Paine who described the right of our state and local election officials vinced that real reform had to make it to vote as the ‘‘primary right by which believe—it could have been any State easier to vote but harder to defraud the other rights are protected.’’ I would in the media spotlight that year—any system. suggest that those are the words that state where the election was close. These twin goals—making it easier should guide the consideration and re- In fact, according to the Caltech-MIT to vote and harder to corrupt our Fed- view of this legislative effort. report, other States, including Georgia, eral elections system—underpin every The bipartisan compromise being Idaho, Illinois, South Carolina, and provision of this compromise. These adopted by the Senate today is the cul- Wyoming, and other cities, such as Chi- goals are fundamental to ensuring that mination of several months of work by cago and New York, had higher rates of not only does every eligible American a dedicated group of our colleagues spoiled and uncounted ballots than have an equal opportunity to vote and with strongly held and diverse views on Florida. Nor were these problems lim- have that vote counted, but that the how best to improve our system of Fed- ited to just the November presidential integrity of the results is unques- eral elections. The compromise is just election. tioned. that—it is not everything that all of us The shortcomings in our election Nothing in this legislation, and no wanted, but it is something that every- process have existed in many elections words spoken by this Senator in this one wanted. And the more than 40 in States across this Nation. The debate, should be construed to call into amendments adopted during the debate Caltech-MIT report found that there question the results of the November have further improved the measure. have been approximately 2 million un- 2000 elections. This effort is not about Clearly, in the case of this legislation, counted, unmarked or spoiled ballots assessing whether a particular can- the ability of the Senate to freely work in each of the last four presidential didate was legitimately elected. The its will through amendment and debate elections. During hearings before the fact that Congress may ultimately has produced a superior product. Senate Rules Committee last year, enact minimum Federal requirements This bill is the culmination of efforts Carolyn Jefferson-Jenkins, President for the conduct of Federal elections begun by the distinguished ranking of the League of Women Voters, testi- should not imply that prior elections member, Senator MCCONNELL, in the fied that: conducted inconsistently with such re- fall of 2000, as then-Chairman of the . . . [t]he kinds of problems that we saw in quirements are somehow less legiti- Senate Rules Committee. 2000 are not unusual. They represent the har- mate. Shortly after the November 2000 gen- vest from years of indifference that has been But what we cannot fail to recognize eral election, then-Chairman MCCON- shown toward one of the most fundamental is that the mere closeness of the presi- NELL announced a series of hearings on and important elements in our democratic dential election in November 2000 test- election reform. Under his leadership, system. ed our system of Federal elections to the Committee held an initial hearing This concern was confirmed by the its limits and exposed both its on March 14, 2001. General Accounting Office, GAO, which strengths and its failures.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00023 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2530 CONGRESSIONAL RECORD — SENATE April 11, 2002 To underscore the uniqueness of the portant civil rights issue facing our gation by establishing minimum Fed- November 2000 general election, the Nation today.’’ The Committee heard eral requirements—not a-one-size-fits- Carter-Ford National Commission on testimony to this effect at the Atlanta all solution—but broad standards that Federal Election Reform observed, and field hearing from Reverend Dr. Joseph can be met in different ways by every I quote in pertinent part: E. Lowery, Chairman of the Georgia balloting system used in America In 2000 the American electoral system was Coalition for the People’s Agenda. Rev- today. And this bipartisan compromise tested by a political ordeal unlike any in liv- erend Doctor Lowery testified that: provides the necessary resources to ing memory. From November 7 until Decem- No aspect of democracy is more sacred ber 12 the outcome of the presidential elec- fully fund these requirements in every than the right to vote and to have those one of the 186,000 polling places across tion was fought out in bitter political and votes counted. In 1965, thousands of us legal struggles that ranged throughout the marched from Selma to Montgomery to urge this Nation. state of Florida and ultimately extended to this nation to remove any and all barriers Let me first give my colleagues a the Supreme Court of the United States. Not based on race and color and ethnicity related broad overview of what the bill we are since 1876–77 has the outcome of a national to the right to vote. . . . Dr. King could not election remained so unsettled, for so long. have anticipated that once we secured the about to adopt does and then go The nineteenth century political crisis ballot in 1965, that we would be back here in through each section to more fully ex- brought the United States close to a renewal 2001 demanding that our government now as- plain how the provisions will work. of civil war. Fortunately, no danger of armed sure us that our votes are fairly and accu- The compromise bill, as improved by conflict shadowed the country in this more rately counted. amendments adopted during Senate de- recent crisis. The American political system And we must ensure that all Ameri- proved its resilience. Nonetheless, the . . . bate, establishes three Federal min- cans have an equal opportunity to have election shook American faith in the legit- imum requirements for Federal elec- their votes counted. imacy of the democratic process. . . . [I]n tions that will affect voting systems, the electoral crisis of 2000 . . . the ordinary That is why this Senate, and this institutions of election administration in the Congress, and this President, cannot including machines and ballots, and United States, and specifically in Florida, squander this opportunity to reinforce the administration of Federal elec- just could not readily cope with an ex- the strengths and correct the failures tions. These three requirements touch tremely close election. in our system of Federal elections. To the very voting systems and adminis- The legitimacy of our democratic fail to act would be nothing less than trative procedures that alienated process was called into question by a an abdication of our collective obliga- Americans across this Nation in No- close election because some Ameri- tions. vember of 2000 and called into question cans—be they people of color, or lan- Luckily, unlike many other chal- the integrity of the final election re- guage minority, or disability, or lesser lenges that are presented to the U.S. sults. economic condition—believed that the Congress, the vast majority of flaws in The first requirement sets minimum voting system they used, or the admin- our federal election system are emi- Federal standards that voting systems istrative processes they encountered, nently fixable. As the Carter-Ford did not provide them an equal oppor- Commission found, ‘‘the weaknesses in and election technology must meet by tunity to cast their vote and have that election administration are, to a very the federal elections of 2006. Essen- vote counted. great degree, problems that govern- tially, these common sense standards The U.S. Commission on Civil Rights ment can actually solve.’’ are designed to provide notice and a conducted an extensive study on voting Further, the Rules Committee found second-chance voting opportunity for irregularities that occurred in Florida remarkable consensus regarding the all eligible voters, including the dis- during the 2000 presidential election. problems that exist with our Federal abled, the blind and language minori- The Commission found that African- election systems and the statutory ties, in case the voter’s ballot was in- Americans were nearly 10 times more changes that need to be made in re- correctly marked or spoiled. likely than white voters to have their sponse. The distinguished Ranking This requirement conforms to impor- ballots rejected. The Commission found Member, Senator MCCONNELL, noted tant recommendations from the during one of our hearings that the that poorer counties, particularly Caltech-MIT and Carter-Ford Commis- message to Congress was unanimous: those with large minority populations, sion reports. As the Carter-Ford report were more likely to use voting systems ‘‘Congress must act, and act soon, to come to the aid of states and local- stated, we must ‘‘ . . . seek to ensure with higher spoilage rates than more that every qualified citizen has an affluent counties with significant ities.’’ equal opportunity to vote and that white populations. And such cannot be accomplished in Additionally, an independent review a partisan manner. Only through a bi- every individual’s vote is equally effec- of Florida’s election systems conducted partisan effort to assess and support tive.’’ by members of the media found that, the strengths and identify and correct The Carter-Ford report specifically quoting from the New York Times and the failures can we achieve meaningful, recommended that the Federal Govern- Washington Post: and lasting, election reform. ment develop a comprehensive set of Black precincts had more than three times I submit to my colleagues that the voting equipment system standards. provisions of the bipartisan substitute as many rejected ballots as white precincts The Commission also took great pains we are voting on today are intended to in [the November 2000] presidential race in to encourage the use of technology and Florida, a disparity that persists even after accomplish just that. accounting for the effects of income, edu- The principle behind our approach is election systems that ensure the vot- cation and bad ballot design . . . [s]imilar very simple. The Federal Government ing rights of all citizens, including lan- patterns were found in Hispanic precincts has an obligation to provide leadership, guage minorities. Similarly, the and places with large elderly populations. both in terms of establishing minimum Caltech-MIT report emphasized the im- Again, this problem was not limited Federal requirements for the conduct portance of equipment that allows vot- to Florida. The Committee also heard of Federal elections and in terms of ers to fix their mistakes, provides for testimony at the Atlanta hearing that providing financial resources to State an audit trail, and is accessible to the nearly half of all black voters in Geor- and local governments to meet those disabled and language minorities. gia used the ‘‘least reliable equip- minimum requirements. The second requirement provides ment,’’ while less than 25 percent of For too long leadership at the federal that all voters be given a chance to white voters used that same equip- level has been lacking. After the elec- cast a provisional ballot if for some ment. tions of November 2000, Congress can reason his or her name is not included Election reform is clearly the first no longer afford to ignore our obliga- on the registration list or the voter’s civil rights battle of the 21st century. tion to the States to be an equal part- eligibility to vote is otherwise chal- As Congresswoman MAXINE WATERS, ner in the administration of the elec- lenged. Chairperson of the Democratic Caucus tions that choose our national leader- Special Committee on Election Re- ship. Almost every organization that has form, has stated, ‘‘there is no question, The provisions of this bipartisan examined election problems has rec- that the right to vote is the most im- compromise attempt to meet our obli- ommended the adoption of provisional

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And that right is so fundamental, velopment of a statewide computerized the: National Association for the Ad- as is evidenced by its widespread use voter registration system that can be vancement of Colored People (NAACP); across this Nation, that we must en- routinely updated and is accessible at National Commission on Federal Elec- sure that it is offered to all Americans, polling places on election day. tion Reform (Carter-Ford Commission); not in an identical process, but in a Additionally, this requirement estab- National Association of Secretaries of uniform and nondiscriminatory man- lishes identification procedures for State (NASS); National Association of ner. first-time voters who have registered State Election Directors (NASED); Na- And that is what the compromise ac- by mail. In order to ensure against tional Task Force on Election Reform; complished by ensuring that so long as fraud and the possibility that mail-in Democratic Caucus Special Committee the minimum standards were satisfied registrants are not eligible to vote, on Election Reform; Caltech-MIT Vot- regarding the provisional voting proc- first-time voters unless otherwise ex- ing Technology Project; Constitution ess, it does not matter what that provi- empted will present verification of Project; League of Women Voters sional balloting process is called so their identify at the polling place or (LWV); American Association of Per- long as it is a way to ensure equal ac- submit such verification with their ab- sons with Disabilities (AAPD); Leader- cess to the ballot box. While all juris- sentee ballot. The manager’s amend- ship Conference on Civil Rights dictions must meet this requirement, ment adopted last evening harmonizes (LCCR); National Council of La Raza the amendment offered by the Senator this provision with the 2004 effective (NCLR); Asian American Legal Defense from New Hampshire, Senator GREGG, date for provisional balloting and the and Education Fund (AALDEF); U.S. further clarifies that those States creation of computerized statewide Commission on Civil Rights; and Fed- which are currently exempt from the registration lists. This is an important eral Election Commission. provisions of the National Voter Reg- change that recognizes the administra- The Caltech-MIT report estimates istration Act, or Motor-Voter, can tive burden of the provision on both that the aggressive use of provisional meet the requirements for provisional States and voters and so provides ade- ballots could cut the lost votes due to balloting through their current reg- quate time for jurisdictions to come registration problems in half. The Car- istration systems. into compliance and educate voters ter-Ford Commission recommended The second requirement also provides about the new provision. This amend- going even farther than the com- that election officials post information ment also establishes a uniform effec- promise. The Commission noted, ‘‘No in the polling place on election day, tive date of January 1, 2003 for first- American qualified to vote anywhere in such as a sample ballot and voting in- time voter registration subject to the her or his State should be turned away structions to inform voters of their first-time voter provision. This assures from a polling place in that State.’’ rights. Provisional balloting must be that all eligible voters, regardless of According to a survey by the Con- available by the Federal elections of where they live or vote, will know that gressional Research Service, at least 15 2004, while the posting of voting infor- if they register to vote after that date, States and the District of Columbia mation on election day must begin they will have to meet the new require- have a provisional ballot statute; 17 upon enactment of the legislation. ments for first-time mail-registrant States have statutes that provide for GAO found that the two most com- voters. some aspects of a provisional balloting mon ways jurisdictions provided voter In order to fund these requirements process; and 18 States have no provi- information were to make it available and other election reforms by the sional ballot statute but have related at the election office and to print it in States, the bipartisan compromise es- provisions. For example, five of these the local newspapers. tablishes three grant programs. The States have same-day voter registra- With respect to sample ballots, 91 first grant program, the requirements tion procedures and at least one State, percent of the jurisdictions nationwide grant program, provides funds to State North Dakota, does not require any made them available at the election of- and local governments to implement voter registration. fice, and 71 percent printed them in the these three requirements. The com- Studies by GAO confirm that over local newspaper. Nationwide, 82 per- promise authorizes $3 billion over 4 three-quarters of the jurisdictions na- cent of the jurisdictions printed a list years, with no matching requirement, tionwide had at least one procedure in of polling places in the local paper. for this purpose. Under the amendment place to help resolve eligibility ques- In contrast, only 18 percent to 20 per- offered by Senators COLLINS, JEFFORDS tions for voters whose name does not cent of jurisdictions nationwide placed and others, as adopted by the Senate, appear on the registration list at the public service ads on local media, per- each State will receive a minimum polling place. However, the procedures formed community outreach programs, grant equal to one-half of 1 percent of and instructions developed to permit and put some voter information on the the total appropriation. provisional voting differed across juris- Internet. Mailing voter information to The second grant program is an in- dictions. all registered voters was the least used centive grant program designed to au- Provisional voting, as defined under approach, with 13 percent of the juris- thorize $400 million in this fiscal year the bipartisan compromise, would dictions mailing voting instructions, 7 to allow State and local governments avoid situations like the one recounted percent mailing sample ballots; and fi- to begin improving their voting sys- to the Democratic Caucus Special nally, 6 percent mailing voter informa- tems and administrative procedures, Committee on Election Reform by two tion on polling locations. even before the requirements go into citizens living in Philadelphia, Juan The third requirement is intended to effect. These funds may also be used for Ramos and Petricio Morales. facilitate the administration of elec- reform measures, such as training poll They testified that in Philadelphia, tions, especially on election day, and workers and officials, voter education voters whose names did not appear on to guard against possible corruption of programs, same-day registration proce- the precinct roster were forced to trav- the system. This requirement calls for dures, and programs to deter election el to police stations and go before a the establishment, by Federal elections fraud. judge, who would then determine in 2004, of a statewide computerized Finally, in response to the GAO re- whether or not they had the right to registration list that will ensure all el- port that 84 percent of all polling vote. Not surprisingly, many voters igible voters can vote. It will also en- places, from the parking lot to the vot- whose names were missing from the sure that the names of ineligible voters ing booth, remain inaccessible to the list wound up not voting rather than will not appear on the rolls. disabled, the compromise creates a face these intimidating logistical hur- The Carter-Ford Commission explic- third grant program to provide funds dles. itly recommended that every state to States and localities to improve the If an individual is motivated enough adopt a system of statewide voter reg- physical accessibility of polling places. to go to the polls and sign an affidavit istration. The Caltech-MIT report This important initiative will help as- that he or she is eligible to vote in that similarly recommended the develop- sure that no matter what the physical election, then the system ought to pro- ment of better databases with a numer- impediment, all eligible Americans will tect that individual’s right to cast a ical identifier for each voter. The Con- be able to not only reach and enter the ballot, even if only a provisional bal- stitution Project also called for the de- polling place, but enter the voting

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This first stand- as provisions of the amendment by and information, including the provi- ard is modified for voting systems in Senator THOMAS adopted last night, ex- sion of sample ballots. which the voter casts a paper or punch presses the sense of the Senate that As Christopher Edley, Jr., a member card ballot or votes are counted at a curbside voting be the last alternative of the Carter-Ford Commission and central location, as provided for in the used to accommodate disabled voters. professor at Harvard Law School, amendment offered by Senator CANT- We are hopeful that these funds will wrote, ‘‘At their core, their reforms are WELL and incorporated into the bill. make that a reality. intended to vindicate our civil and con- Second, all voting systems must The final provision of the com- stitutional rights. They are too funda- produce a record with an audit capac- promise establishes a new, bipartisan mental to be framed as some intergov- ity, including a permanent paper Federal agency to administer the grant ernmental fiscal deal, bargained out record that will serve as an official programs and provide on-going support through an appropriations process.’’ record for recounts. As the Chairman to State and local election officials in These requirements are not intended of the Rules Committee, let me advise the administration of Federal elec- to produce a single uniform voting sys- my colleagues of the importance of tions. This new entity reflects an ap- tem or a single set of uniform adminis- this feature in the unlikely event that propriate continuing federal role in the trative procedures. On the contrary, a petition of election contest is filed administration of Federal elections. they are intended to ensure that any with the Senate. Often, in order to re- This bipartisan Federal election com- voting system and certain administra- solve such contests, the Rules Com- mission will be comprised of four presi- tive practices meet uniform standards mittee must have access to an audit dential appointees, confirmed by the that result in an equal opportunity for trail in order to determine which can- Senate, who will each serve a single, 6- all eligible Americans to cast a ballot didate received the most votes. year term. In order to ensure that all and have that ballot counted. Third, all voting systems must be ac- actions taken by the commission are GAO found that both a jurisdiction’s cessible to persons with disabilities. strictly bipartisan, including the ap- voting equipment and its demographic Fourth, all voting systems must pro- proval of any grants and the issuance make-up had a statistically significant vide for alternative language accessi- of all guidelines, every action of the effect on the percentage of uncounted bility; and commission must be by majority vote. votes. As a result, GAO found that Fifth, all voting systems must meet With that overview, let me go counties with higher percentage of mi- a Federal error rate in counting bal- through the compromise and explain nority voters had higher rates of un- lots, which will be established by the its provisions in greater detail. The counted votes. GAO also reported that new election administration commis- first title of the bill lays out three uni- the percentages of uncounted presi- sion. form and nondiscriminatory election dential votes were higher in minority A few of these standards merit addi- technology and administration require- areas than in others, regardless of vot- tional discussion. With regard to the ments which shall be met. ing equipment. These findings under- first standard, which requires notifica- Although some have advocated insti- score the importance of instituting tion to the voter of an over-vote, there tuting optional reforms, others have minimum Federal requirements that has been a great deal of misunder- insisted that only minimum Federal will ensure that all voters have an standing about this provision. The requirements would ensure that every equal opportunity to vote and have compromise before us made significant eligible voter can cast a vote and have their vote counted, regardless of their changes in the original bill reported by that vote counted. The co-author of the race, disability or ethnicity or the the Rules Committee. The original bill ‘‘Equal Protection of Voting Rights state in which they reside. required that voting systems notify a Act’’ who serves as the ranking Demo- The House Democratic Caucus Spe- voter of both over-votes and under- crat of the House Judiciary Com- cial Committee on Election Reform votes. This compromise deletes the re- mittee, Congressman JOHN CONYERS, specifically recommended that Con- quired notification of an under-vote. cautioned in his testimony before the gress institute minimum national While the new commission is charged Rules Committee against adopting standards that require voting systems with studying the feasibility of noti- measures that would allow ‘‘States to with error detection devices that are fying voters of under-votes, there is no simply elect to opt out of any stand- fully accessible to elderly voters, vot- under-vote notification requirement in ards,’’ noting that past landmark civil ers with physical disabilities, and vis- the compromise. rights bills, including the Voting ually impaired voters. Likewise, six To further clarify the purpose of Rights Act and the Americans with members of the Carter-Ford Commis- over-vote notification, there is no in- Disabilities Act, also set minimum sion advised Congress to require states tent to have an adverse impact on any Federal standards. and localities to use voting tech- jurisdiction with election administra- As the Democratic Caucus Special nologies that produce low rates of un- tion procedures for instant runoff or Committee on Election Reform re- counted ballots, are accessible to vot- preferential voting. All jurisdictions, ported: ers with disabilities, are adaptable to including Alaska, California, Florida, We do not believe that funding, without non-English speakers, and allow all Georgia, New Mexico and Vermont are some basic minimum standards, is sufficient voters to cast a secret ballot. not prohibited from using such voting to achieve meaningful reform. If states were The first requirement establishes procedures to conduct instant runoff or allowed to opt out of the recommended standards that all voting systems must preferential under this Act. changes in Federal elections, voters in those meet for any Federal election held in a Notification is an essential standard States would be denied the opportunity to jurisdiction after January 1, 2006. because it provides an eligible voter a participate in Federal elections on the same It is important to note, that with re- ‘‘second chance’’ opportunity to cor- basis as voters in other States which adopt the reforms. In presidential elections, where gard to effective dates, the actual date rect his or her ballot before it is cast the votes of citizens in one State are depend- on which the requirements must be im- and tabulated. ent on the votes of citizens in others, this plemented will vary from jurisdiction The Caltech-MIT report emphasized discrepancy could diminish the impact of to jurisdiction depending upon when the need for voting equipment that votes in those States that agree to imple- the first Federal election occurs in ‘‘. . . give[s] voters a chance to change ment these reforms. 2006. A Federal election is intended to their ballots to fix any mistakes . . .’’ The requirements approach is also include a general, primary, special, or Similarly, the Carter-Ford Commission supported by six members of the Car- runoff election for Federal office. explicitly recommended that: ‘‘Voters ter-Ford Commission, who wrote in an There are five basic standards that should have the opportunity to correct additional statement following the re- all voting systems shall meet under the errors at the precinct or other polling port that Congress should insist upon first requirement: place . . .’’

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00026 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2533 With regard to the notification, it is In fact, Cook County, Illinois uses a Let me note that these voting sys- the voting system itself, or the edu- punch card reader that can be pro- tems are not just for the use of the dis- cational document, and not a poll grammed to notify the voter of both abled. According to GAO, approxi- worker or election official, which noti- over-votes and under-votes. It is my mately 12 percent of registered voters fies the voter of an over-vote. The understanding that this technology can nationwide used DREs in the last Fed- sanctity of a private ballot is so funda- provide an individual voter with such eral election. Obviously, anyone in the mental to our system of elections, that notification in a completely private polling place can use the system. But the language of this compromise con- and confidential manner. The system these machines can be manipulated by tains a specific requirement that any allows the voter to correct his or her not only the blind and vision-impaired, notification under this section preserve ballot or override the notice if the but by paraplegic and other individuals the privacy of the voter and the con- voter so desires. with motor skill disabilities. fidentiality of the ballot. As for the other types of voting sys- Furthermore, the Caltech-MIT study The Caltech-MIT study noted that se- tems, namely lever machines, precinct- suggests that DREs have the potential crecy and anonymity of the ballot pro- based optical scanning systems, and di- to allow for more flexible user inter- vides important checks on coercion and rect recording electronic systems—or faces to accommodate many languages. fraud in the form of widespread vote DREs—the voting system itself must This means that DRE voting systems buying. meet the standard. Specifically, the can also be used to meet the accessi- This concern for preserving the sanc- voting system must be programmed to bility requirements for language mi- tity of the ballot, as well as practical permit the voter to verify the votes se- norities as well. Moreover, the bill does differences in paper ballots versus ma- lected, provide the voter with an oppor- not require that a jurisdiction pur- chines, led us to create an alternative tunity to change or correct the ballot chase a DRE to meet the accessiblity notification standard for paper ballots, before it is cast or tabulated, and actu- requirements. Jurisdictions may also punch card systems, and central count ally notify the voter if he or she casts choose to modify existing systems to systems. more than one vote for a single-can- meet the needs of the disabled. Paper ballot systems include those didate office. Some of my colleagues have ex- systems where the individual votes a Again, it is important to understand pressed concerns that this may be a paper ballot that is tabulated by hand. that it is the machine itself, and not wasteful requirement for jurisdictions Central count systems includes mail-in the poll worker or official, that noti- that have no known disabled voters. absentee ballots and mail-in balloting, fies the voter. Let me make clear that the purpose of We believe that the bill as amended such as that used extensively in Oregon this requirement is to ensure that the recognizes the inherent differences be- and Washington State, and to a lesser disabled have an equal opportunity to tween paper ballot systems and me- extent in Alaska, California, Colorado, vote, just as all other non-disabled chanical or electronic voting systems, Florida, Kansas, and 13 other States Americans, with privacy and independ- and is a reasonable accommodation where a paper ballot is voted and then ence. It is simply not acceptable that which nonetheless ensures that all vot- sent off to a central location to be tab- the disabled should have to hide in ers will have the information and the ulated by an optical scanning or punch their homes and not participate with notice necessary to avoid spoiling their card system. Under the bill as clarified other Americans on election day sim- ballot due to an over-vote. by Senator CANTWELL’s amendment, a Let me also take a minute to discuss ply because no one knows that they mail-in ballot or mail-in absentee bal- the disabled accessibility standard. exist. lot is treated as a paper ballot for pur- This is perhaps one of the most impor- I have indicated my willingness to poses of notification of an over-vote tant provisions of this compromise. look at the impact of the each of the under section 101 of this compromise, The fact is ten million blind voters did bill’s provisions on small communities as is a ballot counted on a central not vote in the 2000 elections in part and rural areas in conference, and the count voting system. However, if an in- because they cannot read the ballots amendment by Senator THOMAS adopt- dividual votes in person on a central used in their jurisdiction. In this age of ed last evening expresses that. With re- count system, as is used in some states technology that is simply unaccept- gard to the disability provisions, I will which allow early voting or in-person able. do so with the twin goals of ease of ad- absentee voting, for that voter, such The Committee received a great deal ministration but equality of voting op- system must actually notify the voter of disturbing testimony regarding the portunity in mind. of the over-vote. disenfranchisement of Americans with Finally, let me touch on the issue of In the case of punch cards and paper disabilities. Mr. James Dickson, Vice alternative language accessibility. ballot and central count systems, in- President of the American Association This standard generally follows the cluding mail-in ballots and mail-in ab- of People with Disabilities, testified procedures for determining when a lan- sentee ballots, the state or locality that our Nation has a ‘‘. . . crisis of ac- guage minority must be accommodated need only establish a voter education cess to the polling places.’’ Twenty-one under the Voting Rights Act, with an program specific to that voting system million Americans with disabilities did important difference. The Voting in use which tells the voter the effect not vote in the last election—the single Rights Act recognizes only four general of casting multiple votes for a single largest demographic groups of non-vot- groups of language minorities: Asian Federal office. ers. Americans, people of Spanish heritage, Regardless of a punch card system or To respond to this ‘‘crisis of access,’’ Native Americans and native Alaskans. a paper ballot voting system, all mail- this compromise requires that by the This compromise leaves in place the in ballots and mail-in absentee ballots federal elections of 2006, all voting sys- numerical triggers under the Voting must still meet the requirement of pro- tems must be accessible for individuals Rights Act. It merely allows groups viding a voter with the opportunity to with disabilities, including nonvisual who otherwise do not meet the very correct the ballot before it is cast and accessibility for the blind and visually narrow definition in the Voting Rights tabulated under section 101 of this impaired. Most importantly, that ac- Act to nonetheless receive an alter- compromise. commodation must be provided in a native language ballot. So, if a Haitian I also want to note for the record manner that provides the same oppor- or a Croatian population meets the nu- that although this compromise pro- tunity for access and participation, in- merical triggers, they, too, will have vides an alternative method of noti- cluding privacy and independence, as access to bilingual materials in their fying voters of over-votes for punch for other voters. native language. card and paper ballot systems, nothing In order to assist the states and lo- With the addition of section 203 in in this legislation precludes jurisdic- calities in meeting this standard, the 1975 to the Voting Rights Act of 1965, tions from going beyond what is re- bill adds an important new provision Congress sought to increase voter turn- quired, so long as such methods are not that allows jurisdictions to satisfy this out of language minorities by requiring inconsistent with the Federal require- standard through the use of at least bilingual voting assistance. ments under this title or any law de- one direct recording electronic (DRE) In 1992, Congress amended, reauthor- scribed in section 402 of this Act. voting system in every polling place. ized and strengthened section 203 by

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00027 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2534 CONGRESSIONAL RECORD — SENATE April 11, 2002 passing the Voting Rights Language flect design flaws that impede the abil- mation in the polling place on election Assistance Act with an expiration date ity of voters to accurately operate the day. of 2007. voting system. Error rates should re- For Federal elections beginning after This Act requires states and political flect the design, accuracy, and per- January 1, 2004, State and local elec- subdivisions with significant numbers formance of systems under normal vot- tion officials shall make a provisional of non-English speaking citizens of vot- ing conditions. ballot available to voters whose names ing age to improve language assistance Similarly, operating failures of the do not appear on the registration rolls at the polls for American voters. The voting system, or voter confusion or who are otherwise challenged as in- required bilingual assistance includes about how to operate technology or use eligible. bilingual ballots, voting materials, and various types of ballots, may be the re- In order to receive a provisional bal- oral translation services. sult of unclear instructions or poor bal- lot, the voter must execute a written These bilingual services are triggered lot design. The Committee received in- affirmation that he or she is a reg- when the Census Bureau determines formation from the American Institute istered voter in that jurisdiction and is that more than 5 percent of the voting of Graphic Arts regarding the impor- eligible to vote in that election. Once age citizens are of a single language tance of design in the voting experi- executed, the affidavit is handed over minority and are limited-English pro- ence. AIGA has been working with the to the appropriate election official who ficient; or more than 10,000 citizens of Federal Election Commission to edu- must promptly verify the information voting age are members of a single lan- cate the FEC on the importance of and issue a ballot. guage minority who are limited in communication design. It would be ap- The election official then makes a their English proficiency. propriate for the new Election Admin- determination, under state law, as to Here we are in 2002 with the same istration Commission to study the whether the voter is eligible to vote in concerns for our language minorities. issue of communication design criteria the jurisdiction, or not, and shall count Accordingly, our compromise follows and consider incorporating such ideas the ballot accordingly. the Congressional tradition of into its guidelines. It is important to note that in some strengthening voting assistance to our In order to ensure that states and lo- jurisdictions, the verification of voter language minority citizens by includ- calities have sufficient time to meet eligibility will take place prior to the ing language minority groups that these requirements, the compromise issuance of a ballot based upon the in- were not included in earlier amend- directs that the Office of Election Ad- formation in the written affidavit. In ments to the Voting Rights Act. It ministration—which is currently other jurisdictions, the ballot will be merely widens the coverage of lan- housed at the Federal Election Com- issued and then laid aside for guage minorities to ensure that a large mission but will be transferred to the verification later. Both procedures are number of limited-English speakers new Election Administration Commis- equally valid under the compromise, may participate in the elections proc- sion—issue revised voting system and the amendment adopted last ess. standards by January 1, 2004, two years evening, offered by the Senator from This is accomplished by ensuring al- before the standards must be in place. Michigan, Senator LEVIN, reflects that. ternative language accessibility to vot- This should give vendors sufficient The authors of the compromise have ing systems, provisional balloting, and time to modify and certify their prod- repeatedly said that we do not require inclusion as a registered voter in the ucts and allow State and local govern- a one-size-fits-all approach to elections statewide voter registration lists. ments to procure DREs which are dis- in this bill. The same is true for the These safeguards provide an equal op- able accessible for each polling place. provisional balloting requirement portunity for all eligible language mi- Most importantly, the compromise which provides flexibility to states to norities to cast a vote and have that states that nothing in the language of meet the needs of their communities in vote counted. the voting system requirements shall slightly differing ways. In the spirit of minority language ac- require a jurisdiction to change their In order to ensure that voters who cessibility under the Voting Rights existing voting system for another. Un- cast provisional ballots are properly Act, the purpose of this bill is to estab- like the H.R. 3295, the bill that passed registered in time for the next elec- lish uniform, nondiscriminatory stand- the House, this compromise presumes, tion, within 30 days of the election the ards for voting systems and adminis- protects, and preserves, all methods of appropriate election official must no- tration of elections. To continue to balloting. And while some systems may tify, in writing, those voters whose bal- recognize only four distinct language have to be enhanced or modified to lots are not counted. A voter whose minority groups is neither uniform nor some extent, or additional voter edu- provisional ballot is counted does not nondiscriminatory. cation conducted, no jurisdiction is re- have to be individually notified of This Act also provides for a Commis- quired by this bill to exchange the cur- such. sion study to determine whether the rent voting system used in that juris- This bipartisan compromise requires voting systems are, in fact, capable of diction with a new system in order to all 50 States and the District of Colum- accommodating all voters with a lim- be in compliance. bia to provide for provisional balloting ited proficiency in the English lan- However, the voting system that is in in Federal elections, even if a State guage and make necessary rec- use must meet these standards in order also permits same-day registration or ommendations. to ensure that all eligible voters have requires no registration. In States This compromise includes provisions access to a uniform, nondiscriminatory without voter registration require- specifying how lever voting systems system. ments, provisional balloting will pro- may meet the multilingual voting re- It is vitally important that the Con- tect the rights of voters whose eligi- quirements if it is not practicable to gress institute these basic voting sys- bility to cast a ballot is officially chal- add the alternative language to the tem standards. As Congresswoman lenged, for whatever reason, at the lever voting system and the state or lo- EDDIE BERNICE JOHNSON, Chair of the polling place. cality has filed a request for a waiver. Congressional Black Caucus testified, In States with same-day voter reg- Finally, the requirement that voting ‘‘All over the world, the United States istration, the right to cast a provi- systems meet a uniform, national error is seen as the guarantor of democracy. sional ballot will protect an eligible rate standard is a particularly impor- This country has sent countless scores voter who pre-registers and whose tant reform. Requiring voting systems of observers to foreign lands to assure name is not on the official list of eligi- to conform to a nationwide error rate that the process of democracy is scru- ble voters or whose eligibility is chal- ensures the integrity of the results and pulously maintained. We cannot do less lenged by an election official, but who greater uniformity and nondiscrim- for ourselves than we have done for cannot re-register on Election Day. For inatory results in the casting and tab- others.’’ example, a properly registered legal ulating of ballots. It is important to The second Federal minimum re- voter heading to the polls might not note that error rates encompass more quirement contained in the com- carry the identification required by the than just errors due to the mechanical promise provides for provisional bal- State for same-day voter registration. failure of the equipment and can re- loting and the posting of voting infor- Under this compromise, if that voter’s

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00028 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2535 name does not appear on the list of eli- Voter education is particularly im- More specifically, GAO found as a gible voters or the voter’s eligibility is portant for communities disproportion- general matter that most jurisdictions officially challenged, the voter could ately impacted by the current inad- did not identify this type of fraud as a cast a provisional ballot. If the voter equacies in our voting systems. As Anil major concern, because state and local does have the identification required to Lewis, President of the Atlanta metro- election officials have established pro- register on Election Day, he or she politan chapter of the National Federa- cedures for preventing mail-in absentee would have the option of registering tion of the Blind, testified to at the fraud. again and casting a ballot in accord- Committee hearing in Atlanta: GAO estimated that less than 1 per- ance with state law. Same-day reg- Many of the disenfranchised, disabled vot- cent to 5 percent of jurisdictions na- istration thus not only boosts voter ers do not have [a] record of knowing that tionwide experienced special problems turnout but also offers another way the polls are now accessible. Many of them, with absentee voting fraud during re- that states can guard against out of frustration, have refused to go to the cent elections. However, the absentee disenfranchising voters as the result of polls to vote. They have not taken advantage voting fraud concerns tend to fall into registration problems that arise on of the absentee opportunity to vote as an ab- sentee ballot, but by educating them that three categories, including: one, some- election day. these accommodations are now in place, we one other than the appropriate voter This compromise further ensures are going to increase the vote turnout for casting the mail-in absentee ballot; that a voter will receive a provisional people with disabilities. two, absentee voters voting more than ballot if he or she needs one. The provi- Hilary O. Shelton, president of the once; and three, voters being intimi- sional ballot will be counted if the in- Washington, D.C. chapter of the dated or unduly influenced while vot- dividual is eligible under State law to NAACP, testified before the Committee ing the mail-in absentee ballot. vote in the jurisdiction. It is our intent about poll workers who told African- GAO also reported that during the that the word ‘‘jurisdiction,’’ for the American voters that they could not November 2000 elections, local election purpose of determining whether the jurisdictions used several procedures to provisional ballot is to be counted, has have another ballot after they had made a mistake on their first one, de- prevent fraud in the above three areas, the same meaning as the term ‘‘reg- including providing notice to such vot- istrar’s jurisdiction’’ in section 8(j) of spite a State statutory requirement ers about the potential legal con- the National Voter Registration Act. that voters be given another punch sequences of providing inaccurate or However, the appropriate election of- card if they needed one. ficial must also establish a free access The clear message the Committee re- fraudulent information on the bal- system, such as a toll-free phone line ceived is that voters, particularly loting materials. Finally, GAO reported that some of or Internet website, through which any those with special needs, simply do not the local election officials commented voter who casts a provisional ballot know what services and voting oppor- that they had referred certain cases to can find out whether his or her ballot tunities are available to them. This re- the local District Attorney’s office for was counted, and if it was not counted, quirement will ensure that voting in- why it was not counted. Voters casting formation will be provided. possible prosecution. Specifically, the third requirement of a provisional ballot will be informed of The specific information that must the compromise provides that each this notification process at the time be posted in the polling place includes: State, acting through the chief State they vote. And the compromise re- a sample ballot with instructions, in- election official, shall establish an quires that the security, confiden- cluding instructions on how to cast a interactive computerized statewide tiality, and integrity of the informa- provisional ballot; information regard- tion be maintained. ing the date and hours the polling voter registration list by the first Fed- In order to ensure that voters are place will be open; information on the eral election in 2004. aware of the provisional balloting proc- additional verification required by vot- This computerized list must contain ess and are provided information about ers who register by mail and are voting the name and registration information sample ballots and their voting rights, for the first time; and general informa- for every legally registered voter in the the compromise requires that certain tion on voting rights under Federal and State. To ensure accurate list mainte- election information be posted at the State law and instructions on how to nance and to deter potential fraud, the polling place on election day. This is a contact the appropriate official if such list must assign a unique identifier to significant change from the original rights are alleged to have been vio- each voter, and the list must be acces- bill which required an actual mailing lated. sible to State and local election offi- to each registered voter or the equiva- The requirement for posting voting cials in the State. Furthermore, the lent of such notice through publication information in the polling place is ef- compromise permits the use of social and media distribution. Although some fective for federal elections which security numbers for voter registration states already mail individual sample occur after the date of enactment of while ensuring that privacy guarantees ballots to the homes of registered vot- the legislation. are maintained. ers and post voting information in the While it is not anticipated that ex- List maintenance must be performed polling place, the compromise will es- tensive guidelines will be necessary to regularly, and the purging of any name tablish a national uniform standard implement the provisional ballot re- from the list must be accomplished in with respect to voting information. quirement, any such guidelines must a fashion that is consistent with provi- Like provisional voting, increased be issued by January 1, 2003, either by sions of the National Voter Registra- voter education is widely endorsed. The the Department of Justice, or the new tion Act, more commonly known as the Carter-Ford report recommends the use Election Administration Commission if Motor-Voter law. of sample ballots and other voter edu- it is up and running. While this compromise reflects a be- cation tools. The report of the Demo- The third requirement calls for the lief that technology can provide an ef- cratic Caucus Special Committee on creation of a statewide computerized fective deterrent to fraud through the Election Reform also urged increased voter registration list and new use of computerized registration lists, voter education efforts, especially tar- verification procedures for first-time the amendment offered last evening by geted to new voters. voters who register by mail. This re- Senator NICKLES also ensures that such The Caltech-MIT report advocates in- quirement will facilitate the adminis- technology is not subject to unauthor- creased voter education, including the tration of election day activities and ized use by hackers or others who wish publication of sample ballots, pro- addresses concerns about possible voter to defraud the system by use of tech- viding instructional areas at polling registration fraud. Although GAO nology. Similarly, voting system error places, and additional training for poll found there is less than a 1 percent to rates doe not include system security. workers, as a way to reduce the num- 5 percent incident of fraud nationwide A voting system with a computer ber of lost votes. Other organizations the reality is that even an insignificant modem, such as used in the DRE and support additional voter education, in- potential for fraud can undermine the optical scan technology, could be com- cluding the League of Women Voters, confidence of voters, election officials, promised through a computer network. the Constitution Project, and the political parties, etc., in the results of Senator NICKLES amendment requires NAACP. a close election. that State and local officials address

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00029 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2536 CONGRESSIONAL RECORD — SENATE April 11, 2002 the security of voting systems tech- In a highly mobile society likes ours following pieces of identification: a nology. It would also be appropriate for voters move constantly. And while current valid photo id; or a copy of any the new commission to consider devel- they may remember to change their of the following documents: a current oping security protocols for voting sys- mailing address with the post office, utility bill; a bank statement; a gov- tems as a part of its overall responsi- with utility companies, and with the ernment check; a paycheck; or another bility for overseeing the creation and bank and credit card companies, they government document with the voter’s updating of the voluntary voting sys- may not even think about changing name and address. tem standards. their address with the local election of- The compromise does not specify any Essentially, the compromise provides ficial until it comes time to vote. particular type of acceptable photo for the removal of individuals from of- If there is no statewide system for identification. Clearly, a driver’s li- ficial voter registration lists if such in- sharing such information, voters can cense, a student ID, or a work ID that dividuals are not eligible to vote. easily remain on lists long after they has a photograph of the individual There are many reasons an individual have moved. If the State or jurisdiction would be sufficient. might be ineligible to vote. The indi- is not vigilant about conducting list If the voter does not have any of vidual may have moved outside the maintenance, the number of so-called these forms of identification, he or she State or may have died. Some may duplicate names can easily grow. must be allowed to cast a provisional have been convicted of a felony or been The State of Michigan has a very ballot, following the procedures out- adjudicated incompetent, either of good system which we used as a model lined in the second requirement of the which may under some State laws for judging what was possible under compromise under Section 102. could end the individual’s eligibility. this requirement. As I understand it, In the case of a voter who registers The compromise provides a mecha- under the Michigan system, when a by mail and votes absentee for the first nism for removing the names of such voter changes his or her address, the time in the jurisdiction, the voter must individuals from the rolls. Under this address change is entered into the sys- include a copy of one of these pieces of mechanism there are three essential tem, and it automatically notifies both identification with their absentee bal- elements. First, the individual is to be jurisdictions simultaneously. This re- lot. notified that the State believes he or sults in an automatic update which It is important to note that it is the she is ineligible. Second, the individual precludes the possibility of duplicate voter, and not the State or local elec- is to have an opportunity to correct er- registration. tion official, who determines which roneous information or to confirm that Moreover, while the compromise does piece of identification is presented for his or her status has changed. And not require it, many States will make the purposes of casting a provisional third, if the individual has not re- this computerized list available to ballot. sponded to the notice, the individual is local officials at the polling place on A first-time voter may avoid pro- to be given an opportunity to go to the election day. This tool can then be ducing identification at the polling polls and correct erroneous informa- used to immediately verify registra- place or including it with an absentee tion and then vote. tion information at the polling place, ballot by mailing in a copy of any of This third element is needed to en- without the frustration of dialing into the listed pieces of identification with sure that the right to vote is not de- a toll-free number that always rings his or her voter registration card. pendent on the mails. It allows an indi- busy. Additionally, as added by the amend- vidual to correct erroneous informa- Let me also address an issue that has ment of the Senator from Oregon, Sen- tion when that individual goes to the been raised by local election officials. ator WYDEN, adopted last evening, the polls. These are the mechanisms out- Some local officials are concerned that voter may choose to submit his or her lined in the National Voter Registra- they will lose the ability to effectively driver’s license number or the last four tion Act, and these are the mechanisms manage their voter rolls if the primary digits of his or her Social Security that will be used under this com- responsibility for input and list main- number which the State can then promise to remove any ineligible indi- tenance is shifted to the State. match against an existing database to viduals from the voter registration This requirement does not specify see if the number submitted match the rolls. who is responsible for the daily mainte- name, address, and number in the state In addition, under this compromise, a nance of the list—that is left to each file. In the event that a first-time State or its subdivisions shall com- State to decide as it best sees fit. How- mail-registrant voter cannot produce plete, not later than 90 days prior to ever, in order to have an interactive the required identification, he or she the date of an election, any program statewide list, a central authority may cast a provisional ballot if voting that systematically removes the names must have the ultimate responsibility in person. In the case of a mail-in bal- of ineligible voters from an official list for establishing such a computerized lot, if the required identification of eligible voters. system. verification information is not in- And, of course, any voter removal That responsibility falls clearly to cluded, the ballot will nonetheless be system must be uniform, nondiscrim- the chief State election official. This counted as a provisional ballot. inatory and in compliance with the proposal envisions close cooperation This is an important and common Voting Rights Act. The voter removal and consultation with local election of- sense change to the compromise which system shall not result in the removal ficials who are interacting with new preserves the anti-fraud provisions of the name of any person from the of- voters every day. while at the same time providing vot- ficial list of voters registered to vote in Several States have already begun ers with more options for verifying an election for Federal office by reason implementing such systems or have their identity while increasing the of the person’s failure to vote. been running such systems for years. flexibility of State and local adminis- The managers of this bill intend to The Council of State Governments trators to verify such identity. Either ensure, and the legislation ensures, notes that the States of Oklahoma, way, it will be easier to vote and hard- that only voters who are not registered Kentucky and Michigan have particu- er to defraud the system. I am greatly or who are not eligible to vote are re- larly good models for other States to appreciative to all of my colleagues, moved from the voter rolls. follow. and their staff, for working so dili- As a practical matter, once the com- To further guard against potential gently to achieve this modification. puterized list is up and running, list fraud, the third requirement also es- The compromise also preserves the maintenance will be almost automatic. tablishes new verification procedures existing exemptions under the Motor- While many of us have read of allega- for first-time voters who register by Voter law under section 1973gg–4(c)(2) tions of massive duplicate registra- mail. of title 42 in the implementation of tions, the truth is that even though du- In the case of an individual who reg- this compromise. A State may not by plicate names appear on more than one isters by mail, the first time the indi- law require a person to vote in-person jurisdiction’s list, the vast majority of vidual goes to vote in person in a juris- if that first-time voter is: one, entitled voters only live in one place and only diction, he or she must present to the to vote by absentee ballot under sec- vote in one place. appropriate election official one of the tion 1973ff–1 of title 42 of the Uniformed

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00030 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2537 and Overseas Citizens Absentee Voting either question, the registration card of the implementation of these require- Act; two, provided the right to vote must instruct the voter not to fill out ments. otherwise than in-person under section the form. For example, a State may decide to 1973ee–1(b)(2)(b)(ii) and 1973ee– There has been an issue raised with upgrade an entire State from a lever 3(b)(2)(b)(ii) of the Voting Accessibility regard to those States that allow for voting system to an electronic system for the Elderly and Handicapped Act; early registration and the impact of in order to meet the accessibility and three, entitled to vote otherwise this provision on that. However, this standard for the disabled. Clearly, the than in-person under any other Federal bill only applies to Federal elections purchase of a new, statewide system law. and a voter must be 18 years of age to would be an authorized activity used to There is no question about the intent vote in a Federal election. This re- implement the voting system stand- to this Senator. The exemptions under quirement does not affect State law ards of the first minimum requirement. Motor-Voter are preserved under this with regard to the minimum age for But to meet the same requirement, an- compromise. There is no attempt to registration. other State might use these funds to change current law with respect to pre- To the extent that guidelines are re- lease one DRE machine for each poll- serving the long-standing practice of quired to implement the statewide ing place. That would be equally allow- States permitting eligible uniform computerized voter list requirement or able and in compliance with this com- service voters and eligible American the first-time voter provision, the De- promise. overseas voters to continue to vote by partment of Justice, or the new com- Similarly, if some jurisdictions with- absentee ballot without this first-time mission if it has been constituted, in a State use a central count punch voters requirement attaching. must issue these guidelines by October card system, funds may be used to im- Similarly, there is no attempt to 1, 2003. plement the voter education program change current law with respect to pre- As with any such law, enforcement of required to notify voters of the effect serving the States’ practice of permit- the three requirements in Title I will of an over-vote, while other jurisdic- ting disabled voters and senior voters fall to the Department of Justice, and tions within that same State might use to continue to vote by absentee ballot the rights and remedies established the funds to purchase precinct-based without this first-time voter require- under this bill are in addition to all optical scan systems. ment attaching. others provided by law. If a State or jurisdiction appears to According to GAO, ‘‘All states pro- Title II of the measure before us con- already meet the requirements of the vide for one or more alternative voting tains three grant programs to assist bill, but wishes to upgrade old equip- methods or accommodations that may states in meeting the minimum Fed- ment to newer models or add improve- facilitate voting by people with disabil- eral requirements and to fund other ments to ensure that it will continue ities whose assigned polling places are election reform initiatives. to be in compliance, such would also be inaccessible.’’ For example, all States From the beginning of this debate it an allowable use of funding. have provisions allowing voters with has been clear to this Senator that the The compromise also authorizes ret- disabilities to vote absentee without Federal Government has not lived up roactive payments for those jurisdic- requiring notary or medical certifi- to its responsibility to ensure adequate tions which incurred expenses on or cation requirements, although the pro- funding for the administration of Fed- after January 1, 2001 for costs that cedures for absentee voting vary eral elections. The fundamental prin- would otherwise have been incurred to among States. The GAO State survey ciple of this bipartisan compromise is implement the minimum requirements. demonstrates that all States permit that if the Federal Government is An amendment offered by Senators absentee voting for voters with disabil- going to establish minimum require- CHAFEE and REED, which was adopted ities. There is no intent to change the ments for the conduct of Federal elec- by the Senator, clarifies that multi- underlying law for any of these covered tions, then we must provide the re- year contract for the purchase of vot- individuals since covered individuals sources to State and local governments ing systems can also qualify for retro- are not subject to the requirements for to meet those requirements. active payments. first-time voters under Section 103. Of equal importance is the principle There is no matching requirement for Finally, the compromise adds two that there should not be a one-size-fits- these grants. If we are going to require new questions to the mail-in registra- all approach to meeting the Federal that States and localities meet certain tion form under the Motor-Voter law. minimum requirements. Consequently, minimum Federal standards with re- These questions are designed to assist the compromise provides broad lati- gard to Federal elections, then we voters in determining whether or not tude to States and localities on how should provide them with the Federal they are eligible to register to vote in they meet the minimum requirements resources to do so. the first place and thus reduce the and what specific activities they fund The requirements of the grant appli- number of ineligible applications. with the Federal grants. cation process are designed specifically When a non-citizen fills out a voter The first grant program authorizes $3 to allow both States and localities to registration form while waiting to billion over 4 years for grants to State apply for funds without creating either renew a driver’s license, or a 16 year- and local governments to be used to overlapping funding or inconsistencies old high school senior applies to vote meet the three minimum Federal re- within States. along with his or her classmates during quirements of the bill. The only limita- To apply for funds to implement the the voter registration drive at the high tion on the use of these funds is that requirements, States must submit an school, it does not mean that these in- they be used to ‘‘implement’’ these re- application to the attorney general dividuals are attempting to defraud the quirements. The compromise envisions with a State plan. system. They may actually be very that implementation activities may The State plan contains four basic civic-minded individuals who are just vary widely both between States and components. misinformed about whether or not they across jurisdictions within a State. First, a description of how the state are eligible to register. Clearly, funds may be used to purchase will use the funds to meet the three These two additional questions will new voting systems or enhance or mod- minimum requirements, including a help alert such voters to the fact that ify existing ones. description of how State and local elec- they are not yet eligible to vote. First, Obviously, specific grant approvals tion officials will ensure the accuracy the mail-in registration card must in- will necessarily have to be made by the of voter registration lists; and the pre- clude the question with a box for Department of Justice or the new Elec- cautions the State will take to prevent checking ‘‘yes’’ or ‘‘no’’: ‘‘Are you a tion Administration Commission once eligible voters from being removed citizen of the United States of Amer- it becomes effective, in light of the from the list. ica?’’ Second, the mail-in registration overall funding requests. However, it is Second, an assessment of the suscep- card must include the question with a the intent of this Senator that States tibility of Federal elections in the box for indicating ‘‘yes’’ or ‘‘no’’: ‘‘Will and localities be given broad latitude State to voting fraud and a description you be 18 years of age on or before elec- in making the case that the reforms of how the State intends to address tion day?’’ If a voter answers ‘‘no’’ to they seek to fund are in direct support such.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00031 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2538 CONGRESSIONAL RECORD — SENATE April 11, 2002 Third, assurances that the State will local governments, much less penalize funding. The attorney general, how- comply with existing Federal laws, spe- them if the early action they took ever, can reduce the 20 percent match- cifically: Voting Rights Act; Voting turns out to be somehow inconsistent ing requirement for States or localities Accessibility for the Elderly and with subsequently issued guidelines. that lack resources. Handicapped Act; Uniformed and Over- The most obvious instance in which Although grants cannot be used to seas Citizens Absentee Voting Act; Na- this might occur would be with regard implement reforms that are incon- tional Voter Registration Act (or to the voting system standards and the sistent with the minimum Federal re- Motor-Voter); and Rehabilitation Act not-yet-issued voting system error quirements, these grants can be used to of 1973. rate. take interim action to bring voting Fourth, and finally, the State plan In order to avoid placing a State or systems into compliance. must include a timetable for meeting locality at risk of non-compliance, the As with the requirements grant pro- the elements of the plan. compromise essentially grandfathers gram, early action under the incentive In order to ensure the broadest sup- the action that the State takes pursu- grant program to implement the three port for the State plan, it must be de- ant to an approved State plan and minimum requirements is similarly veloped in consultation with State and grant application and provides a safe grandfathered to 2010, with the excep- local election officials and made avail- harbor from enforcement actions on tion of the disability requirements. able for public review and comment that basis. prior to submission with any grant ap- To apply for incentive grant funds, a Without such a provision, the Fed- State or locality submits an applica- plication. eral Government might end up literally In addition to the State plan, each tion to the attorney general or the new funding a State or locality twice for es- commission upon its enactment. Pat- application must include a statement sentially the same reform—once when of how the State will use the Federal terned after the requirements of the the State took early action and a sec- legislation introduced by Senators funds to implement the State plan. ond time when any subsequent guide- Localities may also submit a sepa- MCCONNELL and SCHUMER as S. 953, ap- lines or standards were finally issued. plications for incentive grant funds rate application for funds, but the use Moreover, in promoting early action, of funds must be consistent with the must contain a specific showing that the safe harbor provision attempts to the jurisdiction is in compliance with a State plan. The application must also give jurisdictions a reasonable amount contain any additional information re- number of existing civil rights laws, in- of time to come into compliance with quired by the attorney general or the cluding: Voting Rights Act; Voting Ac- any subsequently issued guidelines or new commission once it is effective. cessibility for the Elderly and Handi- Grant recipients must keep such standards by extending the grandfather capped Act; Uniformed and Overseas records as the attorney general deter- period to 2010, except for the require- Citizens Absentee Voting Act; National mines and, as is usually the case for ments for disability access. Although Voter Registration Act; Americans Federal grant programs, any grant re- the effective dates for most of the re- with Disabilities Act; and Rehabilita- cipient may be audited by the attorney quirements are 2004 and 2006, this addi- tion Act of 1973. tional time period provided by the general or comptroller general. Grant- Before a grant application can be ap- grandfather provision will minimize ees may be required to submit reports, proved, the assistant attorney general the otherwise disruptive effect to both and the attorney general must report for civil rights must certify that the voters and election officials of repeated to Congress and the President annually jurisdiction is either in compliance, or changes to systems and procedures. It on the activities funded under this pro- has demonstrated that it will be using will also provide those States poised to gram. the grant funds to come into compli- act with the assurance that the deci- One of the goals of this legislation is ance, with these laws. Entities which sion to take early action will not end to encourage states and localities to receive funds to come into compliance up in an enforcement action. move forward with election reform ini- with these laws are subject to audit. With regard to the disability accessi- tiatives and apply for Federal grants, The purpose of this provision is not even before the effective dates estab- bility standard under the voting sys- tem requirement, because the bill pro- to penalize or place in jeopardy those lished for meeting those requirements. jurisdictions which are attempting to This is reflected in the larger appro- vides for a specific compliance mecha- overcome compliance issues. Instead, it priations in the early years and the nism in the requirement of one DRE is intended to provide a source of funds fact that the appropriations remain machine in every polling place, it was for States or localities to address com- available until expended. believed that the extended safe harbor This is one of the provisions of the period was unnecessary and potentially pliance issues under existing civil committee-reported bill which has disruptive to the disabled community. rights laws before facing the effective been retained in the compromise. The Consequently, in taking early action dates for minimum Federal standards requirements under this compromise jurisdictions will still have to meet the under this new civil rights law. To en- are so simple and so self-explanatory, disability access standards by 2006. sure that jurisdictions are not penal- that we do not believe that com- Similarly, with this same goal of en- ized by this process, the compromise plicated guidelines, much less full- couraging States to take early action, prohibits action being brought against blown regulations, are going to be nec- the compromise creates a second incen- a State or local government on the essary to implement the requirements. tive grant program designed to fund basis of any information contained in Consequently, the original bill, and other election reform initiatives not the application. this compromise, encourages States necessarily funded under the require- In order to ensure that these funds and localities to move expeditiously by ments grant program. are available this year, the attorney essentially providing for a The incentive grant program author- general must establish any general grandfathering of early action. izes $400 million in this fiscal year to policies or criteria for the application The compromise allows jurisdictions fund such activities as: poll worker and process so that grant applications can that apply for Federal grants prior to volunteer training; voter education; be approved no later than October 1, the issuance of any guidelines or stand- same-day registration procedures; pro- 2002. ards to nonetheless receive funding to cedures to deter and investigate voting The final grant program contained in implement the requirements of the fraud; improvements to voting sys- Title II of the compromise provides bill. If the attorney general approves tems; and action to bring the jurisdic- funds to make polling places physically the grant, then that approval acts as a tion into compliance with existing accessible to the disabled. GAO found determination that the State plan, and civil rights laws. that 84 percent of all polling places in the activities in the State plan which The compromise also establishes a the United States are not physically will be funded with the grant, are program to recruit and train college accessible from the parking area to the deemed to otherwise comply with the students to serve as poll workers. voting room. Moreover, not one of the minimum requirements of the bill. The incentive grant programs has a 496 polling places visited by GAO on However, in encouraging quick ac- matching requirement of 80 percent election day 2000 had voting equipment tion we did not want to deter State and Federal to 20 percent State or local adapted for blind voters.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00032 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2539 This is a modest grant program ministration or loyalty and service to systems and machines is often the which authorizes $100 million begin- a particular party. We would hope to manufacturer of the voting system or ning in fiscal year 2002, with such funds also attract scholars and historians its vendor. The commission can provide to remain available until expended. who appreciate and understand the a much needed role as an unbiased States or localities may use these broadest experience of voters of all clearinghouse for technology assess- funds to ensure accessibility of polling backgrounds, abilities, and party affili- ments. places, including entrances, exits, ations. The compromise envisions that the paths of travel and voting areas of the It would be this Senator’s hope that current authority of the office of elec- polling facility. we would attract candidates who have tion administration, at the Federal Funds may also be used for education an appreciation of the fundamental im- Election Commission, to develop vol- and outreach programs for those with portance of the citizen vote to a de- untary voting system standards would disabilities to inform voters about the mocracy and are committed to ensur- continue once this office is transferred accessibility of polling places. Edu- ing both the inclusiveness and the in- to the new commission. While the com- cation programs to train election offi- tegrity of Federal elections. promise does not mandate what types cials, poll workers and volunteers on Specifically, commissioners are to be of machines must be used in Federal how best to promote access and partici- appointed on the basis of their knowl- elections, the fact that it establishes pation of individuals with disabilities edge and experience with election law, minimum requirements for voting sys- can also be funded under this program. election technology, and Federal, State tems, specifically acceptable error This grant program will also be ad- or local election administration, as rates, necessitates that procedures for ministered initially by the Department well as their knowledge of the Con- testing and assessing voting tech- of Justice, and then by new Election stitution and the history of the United nology will be required. Such would be Administration Commission. However, States. an appropriate activity for the new the general policies and criteria for the Appropriately, a commissioner at the commission. To ensure that the com- approval of applications for the acces- time of appointment cannot be an mission has the best advice on tech- sibility grant program will be estab- elected or appointed officer or em- nical and accessibility matters as it de- lished by the Architectural and Trans- ployee of the Federal Government. Un- velops standards, the compromise di- portation Barriers Compliance Board, like the House bill, this is a perma- rects the commission to consult with also known as the Access Board, which nent, full-time commission. Con- the National Institute of Standards was established under the Rehabilita- sequently, commissioners cannot en- and Technology and the Compliance tion Act of 1973. gage in any other business or employ- Board in developing the standards. The Access Board is uniquely quali- ment while serving on the commission. The commission will also serve an fied to determine what physical modi- To ensure that the best talent that important role in communicating in- fications would be appropriate to make America has to offer will be contin- formation regarding Federal elections polling facilities accessible to disabled ually reflected in appointees, we limit to the public and the media. Specifi- voters. The Board must establish such each commissioner to one 6-year term. cally, the compromise provides that policies in time to ensure that applica- Similarly, to ensure the broadest par- the commission compile and make tions can be approved by October 1, ticipation in the work of the commis- available to the public the official re- 2002. sion, the compromise provides that a sults of elections for Federal office and Grants under the accessibility grant chair and vice-chair must be of dif- statistics regarding national voter reg- program are funded at an 80 percent ferent parties and serve for a term of 1 istration and turnout. The compromise Federal share, although the Attorney year, and an individual may serve as also requires that the commission es- General can provide a greater share to chair only twice during his or her 6- tablish an Internet website to facili- jurisdictions which lack resources. year term. tate public access, comment, and par- Grantees must keep appropriate The duties of the commission reflect ticipation in the activities of the com- records and are subject to audit. the fundamental approach of this com- mission. The final title of the compromise es- promise—that of forming a partnership The compromise does not go as far as tablishes a new independent agency between the Federal Government and the Carter-Ford Commission rec- within the executive branch for admin- State and local election officials. The ommended in this regard. As my col- istering the three grant programs and purpose of this bill is not to replace or leagues may remember, the Carter- providing on-going assistance to State minimize the authority or responsibil- Ford Commission recommended that and local governments in the adminis- ities of State and local election offi- ‘‘ . . . news organizations should not tration of Federal elections. cials in administering Federal elec- project any presidential election re- The Election Administration Com- tions. It is, however, an attempt to sults in any State so long as polls re- mission will be composed of four mem- provide leadership at the Federal level, main open elsewhere in the 48 contig- bers appointed by the President and in the form of both financial resources uous States . . .’’ and that Congress confirmed by the Senate. To reflect the and minimum Federal requirements, to should consider appropriate legisla- need for a continuing nonpartisan ap- ensure uniform and nondiscriminatory tion, consistent with the first amend- proach to election administration, no participation in those elections. ment to encourage the media to with- more than two commissioners may be Consequently, the duties of the com- hold early results. While the commis- members of the same political party. mission augment, but do not replace, sion is in no way intended to replace In recognition of the national signifi- those of State and local election offi- the appropriate role of responsible cance of these appointments and to en- cials. The commission can best be media in informing the public of the sure the broadest bipartisan support viewed as a resource for election offi- outcome of Federal elections, the 2000 for the President’s nominees, the four cials rather than as a regulatory or en- presidential election highlighted the respective leaders of the House and forcement body. need for a national clearinghouse for Senate, including the Speaker and the Primarily, the commission shall election results. Over time, the new House Minority Leader and the Major- serve as a clearinghouse on Federal commission may come to be accepted ity and Minority Leaders of the Sen- election administration and tech- as the most authoritative source of ate, shall each submit a candidate rec- nology by gathering information, con- election results. ommendation to the President before ducting studies and issuing reports on The commission will conduct on- the initial appointment of nominees Federal elections. What became evi- going studies regarding election tech- and prior to the appointment of a va- dent in the Rules Committee hearings nology and administration in addition cancy. and discussions with election officials to other subjects impacting Federal The qualifications for appointment across this Nation was the apparent elections. Over the course of the last to the new commission reflect the de- lack of unbiased information regarding year, a number of excellent election re- sire to create a diverse and experienced election technology. Today, the pri- form proposals have been made that commission that will bring more to the mary source of information about the simply require more study and review job than just experience in election ad- efficiency and effectiveness of voting before they can be enacted.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00033 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2540 CONGRESSIONAL RECORD — SENATE April 11, 2002 Specifically, the commission is the Federal minimum requirements are transferred to the new commission. charged with making periodic studies and the three grant programs at the Beginning on the transition date, the of the following: election technology, Department of Justice and provides for director of the Office of Election Ad- including both over-vote and under- a transition of most, but not all, of ministration is named as the interim vote notification capabilities of such those authorities to the new commis- executive director of the new commis- technology; ballots designs for Federal sion upon its establishment. sion and serves until an executive di- elections; methods of ensuring accessi- Specifically, the compromise trans- rector is appointed by a majority vote bility to all voters; nationwide statis- fers to the commission the authority of the commission. The executive di- tics on voting fraud in Federal elec- to issue standards or guidelines for the rector is appointed for a term of 6 tions and methods of identifying, de- three minimum Federal requirements, years and may be reappointed by ma- terring and investigating any such cor- to issue policies and criteria for the jority vote of the commission for a sec- ruption; methods of voter intimidation; three grant programs, and to approve ond term. the recruitment and training of poll by majority vote all grant applica- Second, all functions of the Federal workers; the feasibility of conducting tions. The Department of Justice re- Election Commission under the Na- elections on different days, or for ex- tains the authority to approve State tional Voter Registration Act of 1993, tended hours, including the advis- plans submitted under the require- the so-called Motor-Voter Act, are ability of establishing a uniform poll ments grant program and the certifi- transferred to the new Election Admin- closing time or a federal holiday; Inter- cation authority under the incentive istration Commission. Section 9 of the net voting; Media reporting of election grant program. act provides that the Federal Election related information; Overseas voters In order to ensure that the transfer Commission shall prescribe appropriate issues; ways in which the Federal Gov- of authority does not impede the con- regulations necessary to carry out the ernment can assist in the administra- tinuity of the requirements or the ex- act with respect to developing a mail tion of Federal elections; and any other peditious review of grant applications, voter registration application form for matters which the commission deems the compromise sets specific dates by Federal elections and submit reports. appropriate. which the commission must act to The compromise also provides for the The commission will be providing re- overturn or modify any action of the ports and recommendations for admin- transfer of Federal Election Commis- Department of Justice. sion personnel employed in connection istrative and legislative action. If the Department of Justice has Through the oversight process, I would with the offices and functions which issued standards or guidelines pursuant are transferred by the act. anticipate that the Rules Committee to the Federal minimum requirements, will be reviewing those recommenda- Finally, Title IV of the compromise the commission must act by majority clarifies the relationship of this bill to tions and acting to bring additional re- vote within 30 days of the transition form proposals to the floor in subse- other existing civil rights laws, and date to either affirm that action or to makes improvements in voting proce- quent Congresses. issue revised standards or guidelines. If In addition to the study and clearing- dures for members of the military. the Department of Justice has not house authorities, the commission is With respect to criminal penalties, acted as of the transition date, then empowered to hold hearings, take tes- this compromise includes two provi- the commission must act by majority timony, and administer such oaths as sions that track existing laws and do vote by the later of the effective date are necessary to carry out its respon- not constitute new law. Both provi- provided for in Title I or within 30 days sibilities. However, since the commis- sions merely are restatements of the of the transition date. sion is not an enforcement agency, it Similarly, if the Department of Jus- existing underlying laws and do not does not have the authority to issue tice has issued policies and criteria for alter the specific intent element de- subpoenas. scribed in sections 401(a) or 401(b) of Most importantly, the commission the approval of grant applications, the commission must act by majority vote this compromise. In the amendment will ultimately assume the ongoing re- which I offered and was adopted by the sponsibility for administering the within thirty days of the transition date to either affirm or modify such. If Senate, I inserted the existing specific three minimum Federal requirements intent of ‘‘knowingly and willfully’’ and the three grant programs under the Department of Justice has not acted, the commission must similarly and ‘‘knowingly’’ in the respective pro- the bill. But so as not to discourage visions to ensure that those standards immediate election reform or delay the issue policies and criteria by the later of the date specified in Title II or with- are the explicit legal standards of re- flow of Federal funds to support re- view for section 1973(i)(c) of title 42 and form, the compromise does not tie the in 30 days of the transition date. The compromise defines the effective section 1015 of title 18 and therefore are effective dates of the minimum re- the same standards to be applied under quirements and the grant programs to date of the transition as the earlier of sixty days after all of the commis- this act. the establishment of the commission. The first provision recognizes that The compromise attempts to expe- sioners have been appointed, or the the criminal penalties established dite the appointment of the commis- date that is 1 year after the date of en- under the National Voter Registration sioners by requiring that the President actment of the act. Act, specifically section 1973(i)(c) of act within ninety days of the date of While the compromise attempts to title 42 and means in plain language enactment. As Chairman of the Rules coordinate the transition dates for that it is unlawful for any individual Committee, the committee of jurisdic- transfer of responsibilities to the new who knowingly and willfully gives false tion over such nominations, it is my agency with a reasonable time frame intent to move expeditiously to con- for appointing and confirming commis- information as to his or her name, ad- sider the nominations if they occur sioners, it remains the prerogative of dress, or period of residence in the vot- this year. the President as to when he appoints ing district for the purpose of estab- But realistically, the President may and the will of the Senate as to when it lishing his or her eligibility to register require additional time to appoint confirms. And until those two actions or vote in an election for Federal of- nominees and the committee cannot occur, the commission will exist in fice, or conspires with another indi- act until those nominations are made. name only and the Department of Jus- vidual for the purpose of encouraging Because the compromise requires the tice will be left to administer the act. his or her false registration to vote in commission to appoint both the execu- In addition to assuming certain au- an election for Federal office. tive director and the general counsel thorities of the Department of Justice The second provision clarifies that by majority vote, even once confirmed, under the bill, the new Election Ad- any individual who commits fraud or it will take some time for the commis- ministration Commission will also as- makes a false statement with regard to sioners to create a new agency and hire sume certain functions of the Federal citizenship, such as in the context of staff to administer over three billion Election Commission. the new citizenship question on reg- dollars in grant programs. First, all functions of the director of istration forms as provided for under Consequently, the compromise ini- the Office of Election Administration section 103 of the compromise, is in tially places the administration of both of the Federal Election Commission violation of section 1015 of title 18 and

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00034 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2541 means in plain language that it is un- tect the right to vote. Congress has within Congress’s power to enforce the lawful for any individual who know- previously acted under this explicit 14th and 15th Amendments, despite ad- ingly makes a false statement relating grant of constitutional power to pro- ministrative burdens placed on the to naturalization, citizenship or reg- tect the voting rights of eligible Amer- States. istry of aliens, for the purpose of estab- icans. In Bush v. Gore which was decided lishing his or her eligibility to register Congress passed the landmark Voting following the November 2000 Presi- or vote in an election for Federal of- Rights Act of 1965. More recently, Con- dential election, the Supreme Court fice. gress enacted federal legislation to re- held that differing definitions of a vote With regard to the effect of the bill move barriers to voting for persons within the state of Florida during the on existing civil rights laws, the com- with disabilities, facilitate voting by recount violated the equal protection promise is specifically not intended to those in the military and Americans clause and were therefore unconstitu- impair any right guaranteed, nor re- living overseas, and standardize voter tional. quire any conduct which is prohibited registration procedures under the The enforcement powers from the under the various civil rights laws, nor Motor-Voter legislation. 14th amendment alone provide ade- are the provisions of the compromise When Congress enacted these Federal quate support for all three of the min- intended to supercede, restrict, or limit statutes, Congress legislated in the imum Federal requirements in the bi- such other laws, including: Voting subject matter of election administra- partisan compromise bill. The rea- Rights Act; Voting Accessibility for tion in such areas as voting rights, soning of the Supreme Court in Bush v. the Elderly and Handicapped Act; Uni- voter registration, absentee voting re- Gore suggests that there may be a formed and Overseas Citizens Absentee quirements, timing of Federal elec- compelling governmental interest and Voting Act; National Voter Registra- tions, and accessibility for elderly and constitutional authority for Congress tion Act of 1993; Americans with Dis- disabled voters. Similarly, Congress to act in light of extensive evidence abilities Act of 1990; and Rehabilitation also legislated to enforce prohibitions that African American or Asian Amer- Act of 1973. against specific discriminatory prac- ican voters, for example, are being This Senator intents that nothing in tices in all elections, including Fed- treated unequally with respect to their this compromise should be interpreted eral, State, and local elections. right to vote. in any manner other than to protect Congress’s scope of power is derived It should also be noted that while we and preserve any and all rights guaran- from a number of constitutional take a different approach, the Carter- teed by these existing civil rights and sources, including the 15th amend- Ford Commission’s recommendations voting laws. ment’s prohibition on voting discrimi- also include voting system standards, For example, the approval of the At- nation on the basis of race, color, or provisional voting and a statewide torney General of any state plan under previous condition of servitude; the voter registration system. Many other the provisions of the requirements 19th amendment’s prohibition on the commissions and study groups also grant in Title II of the compromise, or basis of sex; and the 26th amendment’s consistently recommended provisional any other action taken by the Attor- prohibition on the basis of age. voting. ney General or a state under the grant These three amendments do not We believe that the Constitution pro- programs in Title II, specifically shall grant the right to vote, but all three vides ample authority for these min- not have any effect on requirements for prohibit States from denying the fran- imum Federal requirements and all the pre-clearance under section five of the chise to individuals who are racial or other provisions in this bipartisan Voting Rights Act. ethnic minorities, women, or citizens compromise. Except in one instance, We do not profess to have all the an- aged 18 or older. this legislation applies only to elec- swers or even the best solution for re- The Carter-Ford Task Force on Con- tions for Federal office, putting this forming our system of Federal elec- stitutional Law and Federal Election urgently needed legislation beyond tions. But we do present a compromise Law also concluded that Congress has constitutional dispute. that reflects an incremental step, but great power to regulate elections. The I applaud the majority leader, Sen- not a sea change, in the role of the task force makes the point that the ator DASCHLE, for his commitment to Federal Government in our Nation’s Constitution grants to Congress broad make this measure a priority of this system of Federal elections. This com- power to directly regulate Congres- session of Congress and for his unfail- promise has been developed with a true sional elections, less power to directly ing commitment to bring it to the floor sense of the historical importance of regulate Presidential elections, and for debate. I also commend the distin- the work and a fundamental belief that less power still to directly regulate guished Republican Leader, Senator only a bipartisan effort will be accept- state and local elections. LOTT, for his assistance in facilitating able to the American people. But as a practical matter, Congress consideration of this bipartisan com- Let me address a final concern—and has great power to collaterally regu- promise. that is the constitutional question of late all elections through its power Our distinguished colleagues in the whether this bipartisan legislation is over the ‘‘time, place and manner’’ of House, Chairman BOB NEY and Con- on its face, constitutional. In the opin- Congressional elections and through its gressman STENY HOYER of the House ion of this Senator, this compromise is power to determine how Federal funds Administration Committee have al- entirely consistent with the scope of are made available to States for ex- ready shepherded a bipartisan reform Congress’s authority to enact statutes penditures. That same authority de- proposal through that body. The dif- regulating Federal elections. rives from its enforcement powers of ferences between the approach in the According to the GAO study on the constitutional safeguards, such as the House and our bipartisan compromise scope of congressional authority in equal protection clause and due process are not irreconcilable. election administration, Congress has clause of the 14th Amendment. Both recognize that there are min- constitutional authority over both con- Opponents of this legislation might imum standards that every voting sys- gressional and Presidential elections. argue that it goes too far by providing tem should meet. Both bills strive to This report concludes that there is a Federal requirements in the areas of ensure the greatest possible access to role for both the State and the Federal voting system standards, provisional the polling place for disabled Ameri- Government. States are responsible for voting and statewide voter registration cans and the blind. Both bills ensure the administration of Federal, State lists. This Senator does not believe that all eligible voters may cast a vote and local elections. But, notwith- that will prove to be the case. and have that vote counted. Both bills standing the traditional State role in While the precise parameters of Con- establish a new Federal agency to pro- elections, Congress has the authority gressional authority in election admin- vide on-going support to State and to affect the administration of elec- istration relating to presidential elec- local governments. And both ap- tions in certain ways. tions are unsettled and have not been proaches provide significant resources While the Constitution does not ex- clearly established, the Supreme Court to the States and localities to under- plicitly provide the right to vote, many has recently recognized that certain write the Federal share of admin- amendments to the Constitution pro- measures protecting voting rights are istering Federal elections.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00035 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2542 CONGRESSIONAL RECORD — SENATE April 11, 2002 Not insignificantly, President Bush nology Project; Constitution Project; State. It is cosponsored by the distin- has also indicated his support for pro- Lawyers Committee for Civil Rights guished Senator from Kentucky, Mr. viding assistance to the States for elec- Under Law; Leadership Conference on MCCONNELL, and Senators FEINSTEIN tion reform. Included in his fiscal year Civil Rights; Mexican American Legal and LEVIN. Why? Because the secre- 2003 budget submission is a request for Defense & Education Fund; National taries of state and county election offi- $1.2 billion over the next three fiscal Asian Pacific American Legal Consor- cers have indicated there is no need to years, including $400 million for fiscal tium; National Association for the Ad- put in a mandate to make sure that year 2003, to fund an election reform vancement of Colored People; NAACP your voters who are provisional voters initiative. Legal Defense & Education Fund, Inc.; must be notified by mail within 30 There appears to be a uniform desire National Commission on Federal Elec- days. There are other ways you can do in both houses of Congress to see that tion Reform (Carter-Ford Commission); this. the Federal Government meets its obli- National Association of Secretaries of Our amendment says to States, if gation to be a partner with State and State; National Association of State you want to do a mass mailing, you local election officials in the conduct Election Directors; National Coalition can do that. But at least there is an op- of Federal elections. But time is run- on Black Civic Participation; National tion here to use a Web site and toll-free ning short and state budgets are grow- Congress of American Indians; Na- numbers and other means of commu- ing thin. It is time for the Senate to tional Conference of State Legisla- nication that will actually allow a pro- enact election reform. It is time for the tures; National Council of La Raza; Na- visional voter to know much faster Senate to meet with the House to tional Federation of the Blind; Para- than the mass mailing whether or not produce a bipartisan bill that is worthy lyzed Veterans of America; People for they are properly registered and their of the signature of the President and the American Way; Public Citizen; U.S. vote counted. As a matter of fact, it the support of all the American people, PIRG. will enable local county officials and regardless of color or class, gender or It is the fervent view of this Senator others to make sure a provisional voter age, disability or native language, and that at the end of this historic process, is registered, so you can actually make party or precinct. the Senate will have made a lasting the argument that we will make more As this debate draws to a close, it is contribution to the continued health progress. appropriate to recognize the signifi- and stability of this democracy for the I urge support of the amendment. cant contributions of both individuals people, by the people and of the people The PRESIDING OFFICER. The Sen- and organizations which have provided in the United States. ator from Nevada. input and expertise to the committee, My thanks to all who have been in- Mr. REID. Madam President, fol- and to me personally, in the course of volved. I urge the adoption of this bill lowing the Roberts amendment, which this legislative matter. I have already and yield back whatever time remains will be the normal 15-minute vote, I expressed my gratitude to my col- on this side. ask unanimous consent that votes on leagues on and off the committee and The PRESIDING OFFICER (Ms. STA- the Clinton amendment and final pas- to my distinguished coauthor in the BENOW). The Senator from Kentucky. sage be 10-minute votes. House, Congressman JOHN CONYERS, Mr. MCCONNELL. Madam President, The PRESIDING OFFICER. Without and to many other House Members who let me take my last minute by thank- objection, it is so ordered. truly have made this effort their cause. ing again my friend and colleague Sen- As we all know, no such effort can be ator DODD. This has been a happy expe- Mr. DODD. Madam President, I speak undertaken without the considerable rience. We can proudly recommend to with great reluctance in opposition to effort of our staff. In addition to those all Members of the Senate today that the amendment of the Senator from already mentioned, I want to thank they vote in favor of an important new Kansas. I misidentified his State last Sheryl Cohen, Marvin Fast, Alex piece of legislation that goes right to evening. I apologize. Swartsel and Tom Lenard of my per- the core of what our democracy is all I appreciate the motivations behind sonal staff, and two former Rules Com- about; that is, the ability to vote. this. Let me first say there is nothing mittee staff members, Candace Chin This legislation will make a positive in this bill that creates an unfunded and Laura Roubicek. difference in our country, and is a step mandate. One of the things we have We have also received considerable forward for our democracy. This bill provided for in this bill is that every assistance from the support offices of has been fashioned in a way that I wish requirement must be paid for by the the Senate, including from James we could produce more legislation, Federal Government. That is very im- Fransen and Jim Scott in the Office of which is in a bipartisan fashion. portant to us. We realize if we asked Legislative Counsel and from attorneys I enthusiastically support this bill otherwise, we would in fact be doing and analysts at the Congressional Re- and urge all of my Republican col- just what the Senator from Kansas has search Service including Kevin Cole- leagues—in fact, all of our colleagues suggested. But that is simply not the man, Eric Fischer, L. Paige Whitaker, in the Senate—to proudly vote for this case. and Judith Fraizer, and finally from legislation. We are saying with regard to provi- the Government Accounting Office. I yield back the remainder of my sional voters—these are some of the The list of organizations which have time. most disadvantaged voters in the sense provided invaluable assistance to this AMENDMENT NO. 2907 of where they live and their cir- effort over the last 18 months is almost The PRESIDING OFFICER. Under cumstances, economic and otherwise— too lengthy to include here. But it is the previous order, the Senate will if you show up to vote and there is a important to note the breadth and turn to the amendment offered by the question about whether or not you depth of the input that went into Senator from Kansas. There are 2 min- have the right to vote, this bill is going crafting this historic legislation. At utes of debate equally divided. to give you the right to cast a provi- the risk of inadvertently leaving some- Mr. ROBERTS. Madam President, sional ballot. If at the end of that proc- one out, I want to recognize and thank what we have before us is an amend- ess it is discovered you don’t have the the following organizations which have ment to the election reform bill that is right to vote, we are saying that the provided their expertise to this effort: now pending that would basically state and local officials must notify American Association of People With eliminate the mass mailing require- that voter so they don’t come back and Disabilities; American Civil Liberties ment to give local and State election show up the next time as a provisional Union; American Federation of State, officials more time and resources to voter and their vote doesn’t count County and Municipal Employees; improve the overall election manage- again. American Institute of Graphic Arts; ment and to register voters and to The underlying bill already allows a Asian American Legal Defense and comply with the newly enacted man- state or locality to create an internet Education Fund; Brennan Center for dates of this bill. site or establish a 1–800 number, and I Justice; Center for Constitutional This is an unfunded mandate. This don’t have a problem with that. But Rights; Common Cause; Commission on amendment is supported by the Na- don’t exclude the requirement that you Civil Rights; Caltech-MIT Voting Tech- tional Association of Secretaries of must specifically notify a voter whose

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00036 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2543 ballot was not counted. Registrars of The Senator from New York. Under the previous order, the ques- voters notify voters on all sorts of Mrs. CLINTON. Madam President, tion is on agreeing to amendment No. things during the year. Saying to a this next amendment, called the ‘‘leave 3108 offered by the Senator from New provisional voter, your vote didn’t no vote behind’’ amendment, aims at York. count for the following reasons, this is making sure the Office of Election Ad- Mr. MCCONNELL. I ask for the yeas what you need to do to correct it, is a ministration has the authority to de- and nays. minor request. This bill truly makes it termine whether or not there are unin- The PRESIDING OFFICER. Is there a easier to vote and harder to cheat. We tentional or intentional human errors. sufficient second? urge the defeat of the Roberts amend- With all due respect to the ranking There appears to be a sufficient sec- ment. member, it is not a burdensome provi- ond. The clerk will call the roll. I ask for the yeas and nays on the sion because election officials are The legislative clerk called the roll. The PRESIDING OFFICER. Are there amendment. going to have to sort out the ballots to any other Senators in the Chamber de- The PRESIDING OFFICER. Is there a determine whether there are mechan- siring to vote? sufficient second? ical errors or not. Secondly, this does not have to be en- The result was announced—yeas 48, There is a sufficient second. nays 52, as follows: The question is on agreeing to forced until after January 1, 2010, and [Rollcall Vote No. 64 Leg.] amendment No. 2907. The clerk will so the language that is in the bill pro- YEAS—48 call the roll. vides more than sufficient flexibility The legislative clerk called the roll. for the Office of Election Administra- Akaka Durbin Lieberman tion to make a determination as to Bayh Edwards Lincoln Mr. REID. I announce that the Sen- Biden Feingold Mikulski ator from Indiana (Mr. BAYH) is nec- what benchmark standard to set. If we Bingaman Feinstein Miller essarily absent. do not deal with this issue, we are not Boxer Graham Murray The PRESIDING OFFICER. Are there dealing with the underlying concern Breaux Harkin Nelson (FL) that many citizens have, that in some Byrd Hollings Nelson (NE) any other Senators in the Chamber de- Cantwell Inouye Reed siring to vote? way their vote will not be counted. Carper Jeffords Reid The result was announced—yeas 56, I urge our colleagues to give the Of- Cleland Johnson Rockefeller Clinton Kennedy Sarbanes nays 43, as follows: fice of Election Administration the flexibility and authority to make a de- Conrad Kerry Schumer [Rollcall Vote No. 63 Leg.] Corzine Kohl Stabenow termination about this kind of error, Daschle Landrieu Torricelli YEAS—56 along with mechanical errors. They get Dayton Leahy Wellstone Allard Frist Murkowski to set the standard. We do the same Dorgan Levin Wyden Allen Gramm Nickles thing in most States to try to deter- NAYS—52 Bennett Grassley Reid Boxer Gregg Roberts mine whether there are unintentional Allard Ensign Murkowski Breaux Hagel Santorum errors that a citizen makes in casting a Allen Enzi Nickles Brownback Hatch Sessions vote, and in the absence of having this Baucus Fitzgerald Roberts Bunning Helms Shelby provision in the underlying bill we will Bennett Frist Santorum Burns Hutchinson Smith (NH) Bond Gramm Sessions Campbell Hutchison not have addressed one of the major Brownback Grassley Smith (OR) Shelby Cleland Inhofe Bunning Gregg Snowe concerns that citizens have; not only Smith (NH) Cochran Johnson Burns Hagel Specter from the 2000 election but from many Smith (OR) Collins Kyl Campbell Hatch Snowe Craig Levin Stabenow elections. Carnahan Helms Specter Crapo Lincoln Stevens The PRESIDING OFFICER. The Sen- Chafee Hutchinson Stevens DeWine Lott Thomas ator from Kentucky. Cochran Hutchison Thompson Thomas Domenici Lugar Mr. MCCONNELL. Madam President, Collins Inhofe Ensign McCain Thurmond Craig Kyl Thompson Enzi McConnell Voinovich I strongly oppose the Clinton amend- Crapo Lott Thurmond Feinstein Miller Warner ment. This is about the sanctity of the DeWine Lugar Voinovich ballot and about the right of voters not Dodd McCain Warner NAYS—43 to vote in an election if they choose. Domenici McConnell Akaka Dodd Leahy This amendment mandates a single The amendment (No. 3108) was re- Baucus Dorgan Lieberman Biden Durbin Mikulski voter error rate for all machines and jected. Bingaman Edwards Murray all systems of voting. Mr. DODD. Madam President, I move Bond Feingold Nelson (FL) Each State will be forced to calculate to reconsider the vote and I move to Byrd Fitzgerald Nelson (NE) how many voter errors are allowed, di- lay that motion on the table. Cantwell Graham Reed vide that number by the number of pre- The motion to lay on the table was Carnahan Harkin Rockefeller Carper Hollings agreed to. Sarbanes cincts, and tell poll workers in those Chafee Inouye Mr. DODD. Madam President, I ask Schumer precincts how many errors each is al- Clinton Jeffords Torricelli unanimous consent that upon the pas- Conrad Kennedy lowed; all of this under threat of De- Corzine Kerry Wellstone partment of Justice prosecution. sage of S. 565, the Rules Committee be Daschle Kohl Wyden Those poll workers will closely mon- discharged from further consideration Dayton Landrieu itor undervotes and overvotes, and of H.R. 3295, the House companion, and NOT VOTING—1 when they approach their maximum al- that the Senate then proceed to its Bayh lowable number, they will be forced to consideration; that all after the enact- plead with voters to cast a vote or to ing clause be stricken and the text of The amendment (No. 2907) was agreed change votes they have already made; S. 565, as amended, be inserted in lieu to. all of this under threat of Department thereof; that the bill be advanced to Mr. REID. Madam President, I move of Justice prosecution. third reading and passed; that the title to reconsider the vote, and I move to I say to my colleagues, especially the amendment which is at the desk be lay that motion on the table. Senators from Oregon and Washington, considered and agreed to, the motion The motion to lay on the table was if their home State uses paper ballots, to reconsider be laid upon the table; agreed to. mail-in ballots, or absentee ballots, that the Senate insist on its amend- The PRESIDING OFFICER. The Sen- this amendment will fundamentally ment, request a conference with the ator from Nevada. alter, if not eliminate, those systems of House of Representatives on the dis- Mr. REID. So everyone is aware, the voting. There is no way to control agreeing votes of the two Houses, and next two votes are 10-minute votes. voter error unless one is face-to-face the Chair be authorized to appoint con- AMENDMENT NO. 3108 with the voter. ferees on the part of the Senate, that The PRESIDING OFFICER. Under This is an amendment that essen- the ratio be 3–2; and that this action the previous order, there are now 2 tially unravels this legislation. I occur with no further intervening ac- minutes evenly divided for debate on strongly urge its defeat. tion or debate. amendment No. 3108. The PRESIDING OFFICER. The Sen- The PRESIDING OFFICER. Without Who yields time? ator’s time has expired. objection, it is so ordered.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00037 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2544 CONGRESSIONAL RECORD — SENATE April 11, 2002 Mr. DODD. I thank the Chair. to establish the Election Assistance Com- TITLE III—ADMINISTRATION The PRESIDING OFFICER. The mission to assist in the administration of Subtitle A—Election Administration Commission Federal elections and to otherwise provide question is on the engrossment and Sec. 301. Establishment of the Election Adminis- assistance with the administration of certain third reading of the bill. tration Commission. Federal election laws and programs, to es- Sec. 302. Membership of the Commission. The bill was ordered to be engrossed tablish minimum election administration Sec. 303. Duties of the Commission. for a third reading and was read the standards for States and units of local gov- third time. Sec. 304. Meetings of the Commission. ernment with responsibility for the adminis- Sec. 305. Powers of the Commission. The PRESIDING OFFICER. The bill tration of Federal elections, and for other Sec. 306. Commission personnel matters. (S. 565) having been read the third purposes.’’, do pass with the following Sec. 307. Authorization of appropriations. amendments: time, the question is, Shall the bill Subtitle B—Transition Provisions pass? Strike out all after the enacting clause and insert: Sec. 311. Equal Protection of Voting Rights Act Mr. DODD. Madam President, I ask of 2001. for the yeas and nays. SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) SHORT TITLE.—This Act may be cited as Sec. 312. Federal Election Campaign Act of The PRESIDING OFFICER. Is there a the ‘‘Martin Luther King, Jr. Equal Protection 1971. sufficient second? of Voting Rights Act of 2002’’. Sec. 313. National Voter Registration Act of There is a sufficient second. (b) TABLE OF CONTENTS.—The table of con- 1993. The clerk will call the roll. tents of this Act is as follows: Sec. 314. Transfer of property, records, and per- sonnel. The legislative clerk called the roll. Sec. 1. Short title; table of contents. Sec. 315. Coverage of Election Administration The result was announced—yeas 99, TITLE I—UNIFORM AND NONDISCRIM- Commission under certain laws nays 1, as follows: INATORY ELECTION TECHNOLOGY AND and programs. [Rollcall Vote No. 65 Leg.] ADMINISTRATION REQUIREMENTS Sec. 316. Effective date; transition. YEAS—99 Sec. 101. Voting systems standards. Subtitle C—Advisory Committee on Electronic Sec. 102. Provisional voting and voting informa- Akaka Durbin Lugar Voting and the Electoral Process tion requirements. Allard Edwards McCain Sec. 321. Establishment of Committee. Sec. 103. Computerized statewide voter registra- Allen Ensign McConnell Sec. 322. Duties of the Committee. tion list requirements and require- Baucus Enzi Mikulski Sec. 323. Powers of the Committee. Bayh Feingold Miller ments for voters who register by Sec. 324. Committee personnel matters. Bennett Feinstein Murkowski mail. Sec. 325. Termination of the Committee. Biden Fitzgerald Murray Sec. 104. Enforcement by the Civil Rights Divi- Sec. 326. Authorization of appropriations. Bingaman Frist Nelson (FL) sion of the Department of Justice. Bond Graham Nelson (NE) Sec. 105. Minimum Standards. TITLE IV—UNIFORMED SERVICES Boxer Gramm Nickles ELECTION REFORM Breaux Grassley Reed TITLE II—GRANT PROGRAMS Brownback Gregg Reid Subtitle A—Uniform and Nondiscriminatory Sec. 401. Standard for invalidation of ballots Bunning Hagel Roberts Election Technology and Administration Re- cast by absent uniformed services Byrd Harkin Rockefeller quirements Grant Program voters in Federal elections. Campbell Hatch Santorum Sec. 402. Maximization of access of recently Cantwell Helms Sarbanes Sec. 201. Establishment of the Uniform and separated uniformed services vot- Carnahan Hollings Schumer Nondiscriminatory Election Tech- Carper Hutchinson Sessions ers to the polls. nology and Administration Re- Sec. 403. Prohibition of refusal of voter registra- Chafee Hutchison Shelby quirements Grant Program. Cleland Inhofe Smith (NH) tion and absentee ballot applica- Clinton Inouye Smith (OR) Sec. 202. State plans. tions on grounds of early submis- Cochran Jeffords Snowe Sec. 203. Application. sion. Collins Johnson Specter Sec. 204. Approval of applications. Sec. 404. Distribution of Federal military voter Sec. 205. Authorized activities. Conrad Kennedy Stabenow laws to the States. Corzine Kerry Stevens Sec. 206. Payments. Sec. 405. Effective dates. Craig Kohl Thomas Sec. 207. Audits and examinations of States and Sec. 406. Study and report on permanent reg- Crapo Kyl Thompson localities. istration of overseas voters; dis- Daschle Landrieu Thurmond Sec. 208. Reports to Congress and the Attorney Dayton Leahy Torricelli tribution of overseas voting infor- General. DeWine Levin Voinovich mation by a single State office; Dodd Lieberman Warner Sec. 209. Authorization of appropriations. Sec. 210. Effective date. study and report on expansion of Domenici Lincoln Wellstone single State office duties. Dorgan Lott Wyden Subtitle B—Federal Election Reform Incentive Sec. 407. Report on absentee ballots transmitted NAYS—1 Grant Program and received after general elec- Burns Sec. 211. Establishment of the Federal Election tions. Reform Incentive Grant Program. Sec. 408. Other requirements to promote partici- The bill (S. 565) was passed. Sec. 212. Application. pation of overseas and absent The PRESIDING OFFICER (Mr. Sec. 213. Approval of applications. uniformed services voters. ROCKEFELLER). Under the previous Sec. 214. Authorized activities. Sec. 409. Study and report on the development order, the Rules Committee is dis- Sec. 215. Payments; Federal share. of a standard oath for use with charged from further consideration of Sec. 216. Audits and examinations of States and overseas voting materials. localities. H.R. 3295; all after the enacting clause Sec. 410. Study and report on prohibiting nota- Sec. 217. Reports to Congress and the Attorney rization requirements. is stricken, and the text of S. 565, as General. TITLE V—CRIMINAL PENALTIES; amended, is inserted in lieu thereof. Sec. 218. Authorization of appropriations. The bill is read a third time, passed, Sec. 219. Effective date. MISCELLANEOUS and the motion to reconsider is laid Subtitle C—Federal Election Accessibility Grant Sec. 501. Review and report on adequacy of ex- upon the table. The title amendment is Program isting electoral fraud statutes and penalties. agreed to, and the motion to reconsider Sec. 221. Establishment of the Federal Election Sec. 502. Other criminal penalties. is laid upon the table. Accessibility Grant Program. Sec. 503. Use of social security numbers for Under the previous order, the Senate Sec. 222. Application. voter registration and election ad- insists on its amendment, requests a Sec. 223. Approval of applications. ministration. conference with the House on the dis- Sec. 224. Authorized activities. Sec. 504. Delivery of mail from overseas pre- Sec. 225. Payments; Federal share. ceding Federal elections. agreeing votes of the two Houses, and Sec. 226. Audits and examinations of States and the Chair is authorized to appoint con- Sec. 505. State responsibility to guarantee mili- localities. tary voting rights. ferees on the part of the Senate. Sec. 227. Reports to Congress and the Attorney Sec. 506. Sense of the Senate regarding State General. The ratio of conferees on the bill will and local input into changes Sec. 228. Authorization of appropriations. be 3 to 2. made to the electoral process. Sec. 229. Effective date. The bill (H.R. 3295), as amended, was Sec. 507. Study and report on free absentee bal- passed, as follows: Subtitle D—National Student/Parent Mock lot postage Resolved, That the bill from the House of Election Sec. 508. Help America vote college program Representatives (H.R. 3295) entitled ‘‘An Act Sec. 231. National Student/Parent Mock Elec- Sec. 509. Relationship to other laws. to establish a program to provide funds to tion. Sec. 510. Voters with disabilities. States to replace punch card voting systems, Sec. 232. Authorization of appropriations. Sec. 511. Election day holiday study.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00038 Fmt 4624 Sfmt 6343 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2545 Sec. 512. Sense of the Senate on compliance (B) satisfy the requirement of subparagraph into account only those errors which are attrib- with election technology and ad- (A) through the use of at least 1 direct recording utable to the voting system and not attributable ministration requirements. electronic voting system or other voting system to an act of the voter) shall not exceed the error Sec. 513. Broadcasting false election informa- equipped for individuals with disabilities at rate standards established under the voting sys- tion. each polling place; and tems standards issued and maintained by the Sec. 514. Sense of the Senate regarding changes (C) meet the voting system standards for dis- Director of the Office of Election Administration made to the electoral process and ability access if purchased with funds made of the Federal Election Commission (as revised how such changes impact States. available under title II on or after January 1, by the Director of such Office under subsection TITLE I—UNIFORM AND NONDISCRIM- 2007. (c)). INATORY ELECTION TECHNOLOGY AND (4) MULTILINGUAL VOTING MATERIALS.— (b) VOTING SYSTEM DEFINED.—In this section, (A) IN GENERAL.—Except as provided in sub- ADMINISTRATION REQUIREMENTS the term ‘‘voting system’’ means— paragraph (B), the voting system shall provide (1) the total combination of mechanical, SEC. 101. VOTING SYSTEMS STANDARDS. alternative language accessibility— electromechanical, or electronic equipment (in- (a) REQUIREMENTS.—Each voting system used (i) with respect to a language other than cluding the software, firmware, and documenta- in an election for Federal office shall meet the English in a State or jurisdiction if, as deter- tion required to program, control, and support following requirements: mined by the Director of the Bureau of the Cen- the equipment) that is used— (1) IN GENERAL.— sus— (A) to define ballots; (A) Except as provided in subparagraph (B), (I)(aa) at least 5 percent of the total number (B) to cast and count votes; the voting system (including any lever voting of voting-age citizens who reside in such State (C) to report or display election results; and system, optical scanning voting system, or direct or jurisdiction speak that language as their first (D) to maintain and produce any audit trail recording electronic system) shall— language and who are limited-English pro- information; (i) permit the voter to verify the votes selected ficient; or (2) the practices and associated documenta- by the voter on the ballot before the ballot is (bb) there are at least 10,000 voting-age citi- tion used— cast and counted; zens who reside in that jurisdiction who speak (A) to identify system components and (ii) provide the voter with the opportunity to that language as their first language and who versions of such components; change the ballot or correct any error before the are limited-English proficient; and (B) to test the system during its development ballot is cast and counted (including the oppor- (II) the illiteracy rate of the group of citizens and maintenance; tunity to correct the error through the issuance who speak that language is higher than the na- (C) to maintain records of system errors and of a replacement ballot if the voter was other- tional illiteracy rate; or defects; (D) to determine specific system changes to be wise unable to change the ballot or correct any (ii) with respect to a language other than made to a system after the initial qualification error); and English that is spoken by Native American or (iii) if the voter selects votes for more than 1 Alaskan native citizens in a jurisdiction that of the system; and (E) to make available any materials to the candidate for a single office, the voting system contains all or any part of an Indian reserva- voter (such as notices, instructions, forms, or shall— tion if, as determined by the Director of the Bu- paper ballots). (I) notify the voter that the voter has selected reau of the Census— (c) ADMINISTRATION BY THE OFFICE OF ELEC- more than 1 candidate for a single office on the (I) at least 5 percent of the total number of TION ADMINISTRATION.— ballot; citizens on the reservation are voting-age Native American or Alaskan native citizens who speak (1) IN GENERAL.—Not later than January 1, (II) notify the voter before the ballot is cast 2004, the Director of the Office of Election Ad- and counted of the effect of casting multiple that language as their first language and who are limited-English proficient; and ministration of the Federal Election Commis- votes for the office; and sion, in consultation with the Architectural and (III) provide the voter with the opportunity to (II) the illiteracy rate of the group of citizens who speak that language is higher than the na- Transportation Barriers Compliance Board (as correct the ballot before the ballot is cast and established under section 502 of the Rehabilita- counted. tional illiteracy rate. XCEPTIONS.— tion Act of 1973 (29 U.S.C. 792)) and the Director (B) A State or locality that uses a paper ballot (B) E (i) If a State meets the criteria of item (aa) of of the National Institute of Standards and voting system, a punchcard voting system, or a subparagraph (A)(i)(I) with respect to a lan- Technology, shall promulgate standards revising central count voting system (including mail-in guage, a jurisdiction of that State shall not be the voting systems standards issued and main- absentee ballots or mail-in ballots), may meet required to provide alternative language accessi- tained by the Director of such Office so that the requirements of subparagraph (A) by— bility under this paragraph with respect to that such standards meet the requirements estab- (i) establishing a voter education program spe- language if— lished under subsection (a). cific to that voting system that notifies each (I) less than 5 percent of the total number of (2) QUADRENNIAL REVIEW.—The Director of voter of the effect of casting multiple votes for voting-age citizens who reside in that jurisdic- the Office of Election Administration of the Fed- an office; and tion speak that language as their first language eral Election Commission, in consultation with (ii) providing the voter with instructions on and are limited-English proficient; and the Architectural and Transportation Barriers how to correct the ballot before it is cast and (II) the jurisdiction does not meet the criteria Compliance Board and the Director of the Na- counted (including instructions on how to cor- of item (bb) of such subparagraph with respect tional Institute of Standards and Technology, rect the error through the issuance of a replace- to that language. shall review the voting systems standards re- ment ballot if the voter was otherwise unable to (ii) A State or locality that uses a lever voting vised under paragraph (1) no less frequently change the ballot or correct any error). system and that would be required to provide al- than once every 4 years. (C) The voting system shall ensure that any ternative language accessibility under the pre- (d) CONSTRUCTION.—Nothing in this section notification required under this paragraph pre- ceding provisions of this paragraph with respect shall require a jurisdiction to change the voting serves the privacy of the voter and the confiden- to an additional language that was not included system or systems (including paper balloting tiality of the ballot. in the voting system of the State or locality be- systems, including in-person, absentee, and (2) AUDIT CAPACITY.— fore the date of enactment of this Act may meet mail-in paper balloting systems, lever machine (A) IN GENERAL.—The voting system shall the requirements of this paragraph with respect systems, punchcard systems, optical scanning produce a record with an audit capacity for to such additional language by providing alter- systems, and direct recording electronic systems) such system. native language accessibility through the voting used in an election in order to be in compliance (B) MANUAL AUDIT CAPACITY.— systems used to meet the requirement of para- with this Act. (i) PERMANENT PAPER RECORD.—The voting graph (3)(B) if— (e) EFFECTIVE DATE.—Each State and locality system shall produce a permanent paper record (I) it is not practicable to add the alternative shall be required to comply with the require- with a manual audit capacity for such system. language to the lever voting system or the addi- ments of this section on and after January 1, (ii) CORRECTION OF ERRORS.—The voting sys- tion of the language would cause the voting sys- 2006. tem shall provide the voter with an opportunity tem to become more confusing or difficult to SEC. 102. PROVISIONAL VOTING AND VOTING IN- to change the ballot or correct any error before read for other voters; FORMATION REQUIREMENTS. the permanent paper record is produced. (II) the State or locality has filed a request for (a) REQUIREMENTS.—If an individual declares (iii) OFFICIAL RECORD FOR RECOUNTS.—The a waiver with the Office of Election Administra- that such individual is a registered voter in the printed record produced under subparagraph tion of the Federal Election Commission or, after jurisdiction in which the individual desires to (A) shall be available as an official record for the transition date (as defined in section vote and that the individual is eligible to vote in any recount conducted with respect to any elec- 316(a)(2)), with the Election Administration an election for Federal office, but the name of tion for Federal office in which the system is Commission, that describes the need for the the individual does not appear on the official used. waiver and how the voting system under para- list of eligible voters for the polling place, or an (3) ACCESSIBILITY FOR INDIVIDUALS WITH DIS- graph (3)(B) would provide alternative language election official asserts that the individual is not ABILITIES.—The voting system shall— accessibility; and eligible to vote, such individual shall be per- (A) be accessible for individuals with disabil- (III) the Office of Election Administration or mitted to cast a provisional ballot as follows: ities, including nonvisual accessibility for the the Election Administration Commission (as ap- (1) An election official at the polling place blind and visually impaired, in a manner that propriate) has approved the request filed under shall notify the individual that the individual provides the same opportunity for access and subclause (II). may cast a provisional ballot in that election. participation (including privacy and independ- (5) ERROR RATES.—The error rate of the voting (2) The individual shall be permitted to cast a ence) as for other voters; system in counting ballots (determined by taking provisional ballot at that polling place upon the

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execution of a written affirmation by the indi- shall promulgate such guidelines as are nec- (A) ACCESS TO FEDERAL INFORMATION.— vidual before an election official at the polling essary to implement the requirements of sub- (i) IN GENERAL.—Notwithstanding any other place stating that the individual is— section (a). provision of law, the Commissioner of Social Se- (A) a registered voter in the jurisdiction in (e) EFFECTIVE DATE.— curity shall provide, upon request from a State which the individual desires to vote; and (1) PROVISIONAL VOTING.—Each State and lo- or locality maintaining a computerized central- (B) eligible to vote in that election. cality shall be required to comply with the re- ized list implemented under paragraph (1), only (3) An election official at the polling place quirements of subsection (a) on and after Janu- such information as is necessary to determine shall transmit the ballot cast by the individual ary 1, 2004. the eligibility of an individual to vote in such or voter information contained in the written af- (2) VOTING INFORMATION.—Each State and lo- State or locality under the law of the State. Any firmation executed by the individual under cality shall be required to comply with the re- State or locality that receives information under paragraph (2) to an appropriate State or local quirements of subsection (b) on and after the this clause may only share such information election official for prompt verification under date of enactment of this Act. with election officials. paragraph (4). SEC. 103. COMPUTERIZED STATEWIDE VOTER (ii) PROCEDURE.—The information under (4) If the appropriate State or local election REGISTRATION LIST REQUIREMENTS clause (i) shall be provided in such place and official to whom the ballot or voter information AND REQUIREMENTS FOR VOTERS such manner as the Commissioner determines is transmitted under paragraph (3) determines WHO REGISTER BY MAIL. appropriate to protect and prevent the misuse of that the individual is eligible under State law to (a) COMPUTERIZED STATEWIDE VOTER REG- information. vote in the jurisdiction, the individual’s provi- ISTRATION LIST REQUIREMENTS.— (B) APPLICABLE INFORMATION.—For purposes sional ballot shall be counted as a vote in that (1) IMPLEMENTATION.— of this subsection, the term ‘‘applicable informa- election. (A) IN GENERAL.—Except as provided in sub- tion’’ means information regarding whether— (5) At the time that an individual casts a pro- paragraph (B), each State, acting through the (i) the name and social security number of an visional ballot, the appropriate State or local chief State election official, shall implement an individual provided to the Commissioner match election official shall give the individual written interactive computerized statewide voter reg- the information contained in the Commissioner’s information that states that any individual who istration list that contains the name and reg- records; and casts a provisional ballot will be able to ascer- istration information of every legally registered (ii) such individual is shown on the records of tain through a free access system (such as a voter in the State and assigns a unique identi- the Commissioner as being deceased. toll-free telephone number or an Internet fier to each legally registered voter in the State (C) EXCEPTION.—Subparagraph (A) shall not website) whether the vote was counted, and, if (in this subsection referred to as the ‘‘computer- apply to any request for a record of an indi- the vote was not counted, the reason that the ized list’’). vidual if the Commissioner determines there are vote was not counted. (B) EXCEPTION.—The requirement under sub- exceptional circumstances warranting an excep- (6) The appropriate State or local election offi- paragraph (A) shall not apply to a State in tion (such as safety of the individual or inter- cial shall establish a free access system (such as which, under a State law in effect continuously ference with an investigation). a toll-free telephone number or an Internet on and after the date of enactment of this Act, (b) REQUIREMENTS FOR VOTERS WHO REGISTER website) that any individual who casts a provi- there is no voter registration requirement for in- BY MAIL.— sional ballot may access to discover whether the dividuals in the State with respect to elections (1) IN GENERAL.—Notwithstanding section 6(c) vote of that individual was counted, and, if the for Federal office. of the National Voter Registration Act of 1993 vote was not counted, the reason that the vote (2) ACCESS.—The computerized list shall be ac- (42 U.S.C. 1973gg–4(c)) and subject to paragraph was not counted. cessible to each State and local election official (3), a State shall require an individual to meet States described in section 4(b) of the National in the State. the requirements of paragraph (2) if— Voter Registration Act of 1993 (42 U.S.C. 1973gg– (3) COMPUTERIZED LIST MAINTENANCE.— (A) the individual registered to vote in a juris- 2(b)) may meet the requirements of this sub- (A) IN GENERAL.—The appropriate State or diction by mail; and section using voter registration procedures es- local election official shall perform list mainte- (B)(i) the individual has not previously voted tablished under applicable State law. The ap- nance with respect to the computerized list on a in an election for Federal office in the State; or propriate State or local official shall establish regular basis as follows: (ii) the individual has not previously voted in and maintain reasonable procedures necessary (i) If an individual is to be removed from the such an election in the jurisdiction and the ju- to protect the security, confidentiality, and in- computerized list, such individual shall be re- risdiction is located in a State that does not tegrity of personal information collected, stored, moved in accordance with the provisions of the have a computerized list that complies with the or otherwise used by the free access system es- National Voter Registration Act of 1993 (42 requirements of section 103(a). tablished under paragraph (6)(B). Access to in- U.S.C. 1973gg et seq.), including subsections (2) REQUIREMENTS.— formation about an individual provisional ballot (a)(4), (c)(2), (d), and (e) of section 8 of such Act (A) IN GENERAL.—An individual meets the re- shall be restricted to the individual who cast the (42 U.S.C. 1973gg–6). quirements of this paragraph if the individual— ballot. (ii) For purposes of removing names of ineli- (i) in the case of an individual who votes in (b) VOTING INFORMATION REQUIREMENTS.— gible voters from the official list of eligible vot- person— (1) PUBLIC POSTING ON ELECTION DAY.—The ers— (I) presents to the appropriate State or local appropriate State or local election official shall (I) under section 8(a)(3)(B) of such Act (42 election official a current and valid photo iden- cause voting information to be publicly posted U.S.C. 1973gg–6(a)(3)(B)), the State shall coordi- tification; or at each polling place on the day of each election nate the computerized list with State agency (II) presents to the appropriate State or local for Federal office. records on felony status; and election official a copy of a current utility bill, (2) VOTING INFORMATION DEFINED.—In this (II) by reason of the death of the registrant bank statement, Government check, paycheck, section, the term ‘‘voting information’’ means— under section 8(a)(4)(A) of such Act (42 U.S.C. or other Government document that shows the (A) a sample version of the ballot that will be 1973gg–6(a)(4)(A)), the State shall coordinate name and address of the voter; or used for that election; the computerized list with State agency records (ii) in the case of an individual who votes by (B) information regarding the date of the elec- on death. mail, submits with the ballot— tion and the hours during which polling places (iii) Notwithstanding the preceding provisions (I) a copy of a current and valid photo identi- will be open; of this subparagraph, if a State is described in fication; or (C) instructions on how to vote, including section 4(b) of the National Voter Registration (II) a copy of a current utility bill, bank state- how to cast a vote and how to cast a provisional Act of 1993 (42 U.S.C. 1973gg–2(b)), that State ment, Government check, paycheck, or other ballot; shall remove the names of ineligible voters from Government document that shows the name and (D) instructions for mail-in registrants and the computerized list in accordance with State address of the voter. first-time voters under section 103(b); and law. (B) FAIL-SAFE VOTING.— (E) general information on voting rights under (B) CONDUCT.—The list maintenance per- (i) IN PERSON.—An individual who desires to applicable Federal and State laws, including in- formed under subparagraph (A) shall be con- vote in person, but who does not meet the re- formation on the right of an individual to cast ducted in a manner that ensures that— quirements of subparagraph (A)(i), may cast a a provisional ballot and instructions on how to (i) the name of each registered voter appears provisional ballot under section 102(a). contact the appropriate officials if these rights in the computerized list; (ii) BY MAIL.—An individual who desires to are alleged to have been violated. (ii) only voters who are not registered or who vote by mail but who does not meet the require- (c) VOTERS WHO VOTE AFTER THE POLLS are not eligible to vote are removed from the ments of subparagraph (A)(ii) may cast such a CLOSE.—Any individual who votes in an elec- computerized list; and ballot by mail and the ballot shall be counted as tion for Federal office for any reason, including (iii) duplicate names are eliminated from the a provisional ballot in accordance with section a Federal or State court order, after the time set computerized list. 102(a). for closing the polls by a State law in effect 10 (4) TECHNOLOGICAL SECURITY OF COMPUTER- (3) INAPPLICABILITY.—Paragraph (1) shall not days before the date of that election may only IZED LIST.—The appropriate State or local offi- apply in the case of a person— vote in that election by casting a provisional cial shall provide adequate technological secu- (A) who registers to vote by mail under section ballot under subsection (a). rity measures to prevent the unauthorized ac- 6 of the National Voter Registration Act of 1993 (d) ADMINISTRATION BY THE CIVIL RIGHTS DI- cess to the computerized list established under (42 U.S.C. 1973gg–4) and submits as part of such VISION.—Not later than January 1, 2003, the As- this section. registration either— sistant Attorney General in charge of the Civil (5) INTERACTION WITH FEDERAL INFORMA- (i) a copy of a current valid photo identifica- Rights Division of the Department of Justice TION.— tion; or

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(ii) a copy of a current utility bill, bank state- under a grant program under subtitle A or B of (2) IDENTIFICATION, DETERRENCE, AND INVES- ment, Government check, paycheck, or Govern- title II for the purpose of meeting a requirement TIGATION OF VOTING FRAUD.—An assessment of ment document that shows the name and ad- under section 101, 102, or 103, such State or lo- the susceptibility of elections for Federal office dress of the voter; cality shall be deemed to be in compliance with in the State to voting fraud and a description of (B)(i) who registers to vote by mail under sec- such requirement until January 1, 2010, and no how the State intends to identify, deter, and in- tion 6 of the National Voter Registration Act of action may be brought under this Act against vestigate such fraud. 1993 (42 U.S.C. 1973gg–4) and submits with such such State or locality on the basis that the State (3) COMPLIANCE WITH EXISTING FEDERAL registration either— or locality is not in compliance with such re- LAW.—Assurances that the State will comply (I) a driver’s license number; or quirement before such date. with existing Federal laws, as such laws relate (II) at least the last 4 digits of the individual’s (2) EXCEPTION.—The safe harbor provision to the provisions of this Act, including the fol- social security number; and under paragraph (1) shall not apply with re- lowing: (ii) with respect to whom a State or local elec- spect to the requirement described in section (A) The Voting Rights Act of 1965 (42 U.S.C. tion official certifies that the information sub- 101(a)(3). 1973 et seq.), including sections 4(f)(4) and 203 of mitted under clause (i) matches an existing (c) RELATION TO OTHER LAWS.—The remedies such Act (42 U.S.C. 1973b(f)(4) and 1973aa–1a). State identification record bearing the same established by this section are in addition to all (B) The Voting Accessibility for the Elderly number, name and date of birth as provided in other rights and remedies provided by law. and Handicapped Act (42 U.S.C. 1973ee et seq.). such registration; or SEC. 105. MINIMUM STANDARDS. (C) The Uniformed and Overseas Citizens Ab- (C) who is— The requirements established by this title are sentee Voting Act (42 U.S.C. 1973ff et seq.). (i) entitled to vote by absentee ballot under minimum requirements and nothing in this title (D) The National Voter Registration Act of the Uniformed and Overseas Citizens Absentee shall be construed to prevent a State from estab- 1993 (42 U.S.C. 1973gg et seq.). Voting Act (42 U.S.C. 1973ff–1 et seq.); lishing election technology and administration (E) The Rehabilitation Act of 1973 (29 U.S.C. (ii) provided the right to vote otherwise than requirements, that are more strict than the re- 701 et seq.). in person under section 3(b)(2)(B)(ii) of the Vot- quirements established under this title, so long (4) TIMETABLE.—A timetable for meeting the ing Accessibility for the Elderly and Handi- as such State requirements are not inconsistent elements of the State plan. capped Act (42 U.S.C. 1973ee–1(b)(2)(B)(ii)); or with the Federal requirements under this title or (b) AVAILABILITY OF STATE PLANS FOR REVIEW (iii) entitled to vote otherwise than in person any law described in section 509. AND COMMENT.—A State shall make the State under any other Federal law. TITLE II—GRANT PROGRAMS plan developed under subsection (a) available (4) CONTENTS OF MAIL-IN REGISTRATION for public review and comment before the sub- FORM.—The mail voter registration form devel- Subtitle A—Uniform and Nondiscriminatory mission of an application under section 203(a). oped under section 6 of the National Voter Reg- Election Technology and Administration Re- istration Act of 1993 (42 U.S.C. 1973gg–4) shall quirements Grant Program SEC. 203. APPLICATION. include: (a) IN GENERAL.—Each State or locality that SEC. 201. ESTABLISHMENT OF THE UNIFORM AND desires to receive a grant under this subtitle (A) The question ‘‘Are you a citizen of the NONDISCRIMINATORY ELECTION United States of America?’’ and boxes for the TECHNOLOGY AND ADMINISTRATION shall submit an application to the Attorney applicant to check to indicate whether the ap- REQUIREMENTS GRANT PROGRAM. General at such time and in such manner as the plicant is or is not a citizen of the United States. (a) IN GENERAL.—There is established a Uni- Attorney General may require, and containing (B) The question ‘‘Will you be 18 years of age form and Nondiscriminatory Election Tech- the information required under subsection (b) on or before election day?’’ and boxes for the nology and Administration Requirements Grant and such other information as the Attorney applicant to check to indicate whether or not Program under which the Attorney General, General may require. the applicant will be 18 or older on election day. subject to the general policies and criteria for (b) CONTENTS.— (C) The statement ‘‘If you checked ‘no’ in re- the approval of applications established under (1) STATES.—Each application submitted by a sponse to either of these questions, do not com- section 204 and in consultation with the Federal State shall contain the State plan developed plete this form’’. Election Commission and the Architectural and under section 202 and a description of how the (5) CONSTRUCTION.—Nothing in this sub- Transportation Barriers Compliance Board (as State proposes to use funds made available section shall be construed to require a State that established under section 502 of the Rehabilita- under this subtitle to implement such State plan. was not required to comply with a provision of tion Act of 1973 (29 U.S.C. 792)), is authorized to (2) LOCALITIES.—Each application submitted the National Voter Registration Act of 1993 (42 make grants to States and localities to pay the by a locality shall contain a description of how U.S.C. 1973gg et seq.) before the date of enact- costs of the activities described in section 205. the locality proposes to use the funds made ment of this Act to comply with such a provision (b) ACTION THROUGH OFFICE OF JUSTICE PRO- available under this subtitle in a manner that is after such date. GRAMS AND CIVIL RIGHTS DIVISION.—In carrying consistent with the State plan developed under (c) ADMINISTRATION BY THE CIVIL RIGHTS DI- out this subtitle, the Attorney General shall act section 202. VISION.—Not later than October 1, 2003, the As- through the Assistant Attorney General in (c) SAFE HARBOR.—No action may be brought sistant Attorney General in charge of the Civil charge of the Office of Justice Programs of the under this Act against a State or locality on the Rights Division of the Department of Justice Department of Justice and the Assistant Attor- basis of any information contained in the appli- shall promulgate such guidelines as are nec- ney General in charge of the Civil Rights Divi- cation submitted under subsection (a), including essary to implement the requirements of sub- sion of that Department. any information contained in the State plan de- section (a). SEC. 202. STATE PLANS. veloped under section 202. (d) EFFECTIVE DATE.— (a) IN GENERAL.—Each State that desires to SEC. 204. APPROVAL OF APPLICATIONS. (1) COMPUTERIZED STATEWIDE VOTER REG- receive a grant under this subtitle shall develop The Attorney General shall establish general ISTRATION LIST REQUIREMENTS.—Each State and a State plan, in consultation with State and policies and criteria with respect to the approval locality shall be required to comply with the re- local election officials of that State, that pro- of applications submitted by States and local- quirements of subsection (a) on and after Janu- vides for each of the following: ities under section 203(a) (including a review of ary 1, 2004. (1) UNIFORM AND NONDISCRIMINATORY ELEC- State plans developed under section 202), the (2) REQUIREMENT FOR VOTERS WHO REGISTER TION TECHNOLOGY AND ADMINISTRATION RE- awarding of grants under this subtitle, and the BY MAIL.— QUIREMENTS.—A description of how the State use of assistance made available under this sub- (A) IN GENERAL.—Each State and locality will use the funds made available under this title. shall be required to comply with the require- subtitle to meet each of the following require- SEC. 205. AUTHORIZED ACTIVITIES. ments of subsection (b) on and after January 1, ments: A State or locality may use grant payments 2004, and shall be prepared to receive registra- (A) The voting system standards under section received under this subtitle for any of the fol- tion materials submitted by individuals de- 101. lowing purposes: scribed in subparagraph (B) on and after the (B) The provisional voting requirements under (1) To implement voting system standards that date described in such subparagraph. section 102. meet the requirements of section 101. (B) APPLICABILITY WITH RESPECT TO INDIVID- (C) The computerized statewide voter registra- (2) To provide for provisional voting that UALS.—The provisions of section (b) shall apply tion list requirements under section 103(a), in- meets the requirements of section 102(a) and to to any individual who registers to vote on or cluding a description of— meet the voting information requirements under after January 1, 2003. (i) how State and local election officials will section 102(b). ensure the accuracy of the list of eligible voters SEC. 104. ENFORCEMENT BY THE CIVIL RIGHTS (3) To establish a computerized statewide DIVISION OF THE DEPARTMENT OF in the State to ensure that only registered voters voter registration list that meets the require- JUSTICE. appear in such list; and ments of section 103(a) and to meet the require- (a) IN GENERAL.—Subject to subsection (b), (ii) the precautions that the State will take to ments for voters who register by mail under sec- the Attorney General, acting through the Assist- prevent the removal of eligible voters from the tion 103(b). ant Attorney General in charge of the Civil list. Rights Division of the Department of Justice, (D) The requirements for voters who register SEC. 206. PAYMENTS. may bring a civil action in an appropriate dis- by mail under section 103(b), including the steps (a) PAYMENTS .— trict court for such declaratory or injunctive re- that the State will take to ensure— (1) IN GENERAL.—Subject to paragraph (2), the lief as may be necessary to carry out this title. (i) the accuracy of mail-in and absentee bal- Attorney General shall pay to each State having (b) SAFE HARBOR.— lots; and an application approved under section 203 the (1) IN GENERAL.—Except as provided in para- (ii) that the use of mail-in and absentee bal- cost of the activities described in that applica- graph (2), if a State or locality receives funds lots does not result in duplicate votes. tion.

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(2) INITIAL PAYMENT AMOUNT.—The Attorney SEC. 209. AUTHORIZATION OF APPROPRIATIONS. (c) REQUEST FOR CERTIFICATION BY THE CIVIL General shall pay to each State that submits an (a) IN GENERAL.—There are authorized to be RIGHTS DIVISION.— application under section 203 an amount equal appropriated to carry out the provisions of this (1) COMPLIANCE WITH CURRENT FEDERAL ELEC- to 0.5 percent of the amount appropriated under subtitle the following amounts: TION LAW.— section 209 for the fiscal year during which such (1) For fiscal year 2003, $1,000,000,000. (A) IN GENERAL.—Except as provided in sub- application is submitted to be used by such State (2) For fiscal year 2004, $1,300,000,000. paragraph (B), each request for certification de- for the activities authorized under section 205. (3) For fiscal year 2005, $500,000,000. scribed in subsection (b)(2) shall contain a spe- (b) RETROACTIVE PAYMENTS.— The Attorney (4) For fiscal year 2006, $200,000,000. cific and detailed demonstration that the State General may make retroactive payments to (5) For each subsequent fiscal year, such sums or locality is in compliance with each of the fol- States and localities having an application ap- as may be necessary. lowing laws, as such laws relate to the provi- proved under section 203 for any costs for elec- (b) PROTECTION AND ADVOCACY SYSTEMS.—In sions of this Act: tion technology or administration that meets a addition to any other amounts authorized to be (i) The Voting Rights Act of 1965 (42 U.S.C. requirement of section 101, 102, or 103 that were appropriated under this section, there are au- 1973 et seq.), including sections 4(f)(4) and 203 of incurred during the period beginning on Janu- thorized to be appropriated $10,000,000 for each such Act (42 U.S.C. 1973b(f)(4) and 1973aa–1a). (ii) The Voting Accessibility for the Elderly ary 1, 2001, and ending on the date on which of the fiscal years 2003, 2004, 2005, and 2006, and for each subsequent fiscal year such sums as and Handicapped Act (42 U.S.C. 1973ee et seq.). such application was approved under such sec- (iii) The Uniformed and Overseas Citizens Ab- tion. A State or locality that is engaged in a may be necessary, for the purpose of making payments under section 206(c): Provided, That sentee Voting Act (42 U.S.C. 1973ff et seq.). multi-year contract entered into prior to Janu- (iv) The National Voter Registration Act of ary 1, 2001, is eligible to apply for a grant under none of the funds provided by this subsection shall be used to commence any litigation related 1993 (42 U.S.C. 1973gg et seq.). section 203 for payments made on or after Janu- (v) The Americans with Disabilities Act of 1990 to election-related disability access; notwith- ary 1, 2001, pursuant to that contract. (42 U.S.C. 1994 et seq.). standing the general authorities of the protec- (c) PROTECTION AND ADVOCACY SYSTEMS.— (vi) The Rehabilitation Act of 1973 (29 U.S.C. tion and advocacy systems are otherwise af- (1) IN GENERAL.—In addition to any other 701 et seq.). forded under part C of the Developmental Dis- payments made under this section, the Attorney (B) APPLICANTS UNABLE TO MEET REQUIRE- abilities Assistance and Bill of Rights Act of General shall pay the protection and advocacy MENTS.—Each State or locality that, at the time 2000 (42 U.S.C. 15041 et seq.). system (as defined in section 102 of the Develop- it applies for a grant under this subtitle, does (c) AVAILABILITY.—Any amounts appropriated mental Disabilities Assistance and Bill of Rights not demonstrate that it meets each requirement pursuant to the authority of this section shall Act of 2000 (42 U.S.C. 15002)) of each State to described in subparagraph (A), shall submit to remain available until expended. ensure full participation in the electoral process the Attorney General a detailed and specific for individuals with disabilities, including reg- SEC. 210. EFFECTIVE DATE. demonstration of how the State or locality in- istering to vote, casting a vote and accessing The Attorney General shall establish the gen- tends to use grant funds to meet each such re- polling places. In providing such services, pro- eral policies and criteria for the approval of ap- quirement. tection and advocacy systems shall have the plications under section 204 in a manner that (2) UNIFORM AND NONDISCRIMINATORY RE- same general authorities as they are afforded ensures that the Attorney General is able to ap- QUIREMENTS FOR ELECTION TECHNOLOGY AND AD- under part C of the Developmental Disabilities prove applications not later than October 1, MINISTRATION.—In addition to the demonstra- Assistance and Bill of Rights Act of 2000 (42 2002. tion required under paragraph (1), each request U.S.C. 15041 et seq.). Subtitle B—Federal Election Reform Incentive for certification described in subsection (b)(2) (2) MINIMUM GRANT AMOUNT.—The minimum Grant Program shall contain a specific and detailed demonstra- amount of each grant to a protection and advo- SEC. 211. ESTABLISHMENT OF THE FEDERAL tion that the proposed use of grant funds by the cacy system shall be determined and allocated ELECTION REFORM INCENTIVE State or locality is not inconsistent with the re- as set forth in subsections (c)(3), (c)(4), (c)(5), GRANT PROGRAM. quirements under section 101, 102, or 103. (e), and (g) of section 509 of the Rehabilitation (a) IN GENERAL.—There is established a Fed- (d) SAFE HARBOR.—No action may be brought Act of 1973 (29 U.S.C. 794e), except that the eral Election Reform Incentive Grant Program under this Act against a State or locality on the amount of the grants to systems referred to in under which the Attorney General, subject to basis of any information contained in the appli- subsections (c)(3)(B) and (c)(4)(B) of that sec- the general policies and criteria for the approval cation submitted under subsection (a), including tion shall be not less than $70,000 and $35,000, of applications established under section 213(a) any information contained in the request for respectively. and in consultation with the Federal Election certification described in subsection (c). SEC. 213. APPROVAL OF APPLICATIONS. SEC. 207. AUDITS AND EXAMINATIONS OF STATES Commission and the Architectural and Trans- AND LOCALITIES. portation Barriers Compliance Board (as estab- (a) IN GENERAL.—Subject to subsection (b), the Attorney General shall establish general (a) RECORDKEEPING REQUIREMENT.—Each re- lished under section 502 of the Rehabilitation policies and criteria for the approval of applica- cipient of a grant under this subtitle shall keep Act of 1973 (29 U.S.C. 792)), is authorized to tions submitted under section 212(a). such records as the Attorney General, in con- make grants to States and localities to pay the costs of the activities described in section 214. (b) CERTIFICATION PROCEDURE.— sultation with the Federal Election Commission, (1) IN GENERAL.—The Attorney General may shall prescribe. (b) ACTION THROUGH OFFICE OF JUSTICE PRO- GRAMS AND CIVIL RIGHTS DIVISION.—In carrying not approve an application of a State or locality (b) AUDITS AND EXAMINATIONS.—The Attorney out this subtitle, the Attorney General shall act submitted under section 212(a) unless the Attor- General and the Comptroller General, or any ney General has received a certification from authorized representative of the Attorney Gen- through— (1) the Assistant Attorney General in charge the Assistant Attorney General for Civil Rights eral or the Comptroller General, may audit or of the Office of Justice Programs of the Depart- under paragraph (4) with respect to such State examine any recipient of a grant under this sub- ment of Justice; and or locality. title and shall, for the purpose of conducting an (2) the Assistant Attorney General in charge (2) TRANSMITTAL OF REQUEST.—Upon receipt audit or examination, have access to any record of the Civil Rights Division of the Department of of the request for certification submitted under of a recipient of a grant under this subtitle that Justice (in this subtitle referred to as the ‘‘As- section 212(b)(2), the Attorney General shall the Attorney General or the Comptroller General sistant Attorney General for Civil Rights’’). transmit such request to the Assistant Attorney determines may be related to the grant. General for Civil Rights. SEC. 212. APPLICATION. SEC. 208. REPORTS TO CONGRESS AND THE AT- (3) CERTIFICATION; NONCERTIFICATION.— N ENERAL TORNEY GENERAL. (a) I G .—Each State or locality that (A) CERTIFICATION.—If the Assistant Attorney desires to receive a grant under this subtitle (a) REPORTS TO CONGRESS.— General for Civil Rights finds that the request shall submit an application to the Attorney for certification demonstrates that— (1) IN GENERAL.—Not later than January 31, General at such time, in such manner, and con- (i) a State or locality meets the requirements 2003, and each year thereafter, the Attorney taining such information as the Attorney Gen- of subparagraph (A) of section 212(c)(1), or that General shall submit to the President and Con- eral shall require, consistent with the provisions a State or locality has provided a detailed and gress a report on the grant program established of this section. specific demonstration of how it will use funds under this subtitle for the preceding year. (b) CONTENTS.—Each application submitted received under this section to meet such require- (2) CONTENTS.—Each report submitted under under subsection (a) shall— ments under subparagraph (B) of such section; paragraph (1) shall contain the following: (1) describe the activities for which assistance and (A) A description and analysis of any activi- under this section is sought; (ii) the proposed use of grant funds by the ties funded by a grant awarded under this sub- (2) contain a request for certification by the State or locality meets the requirements of sec- title. Assistant Attorney General for Civil Rights de- tion 212(c)(2), (B) Any recommendation for legislative or ad- scribed in subsection (c); the Assistant Attorney General for Civil Rights ministrative action that the Attorney General (3) provide assurances that the State or local- shall certify that the State or locality is eligible considers appropriate. ity will pay the non-Federal share of the cost of to receive a grant under this subtitle. (b) REPORTS TO THE ATTORNEY GENERAL.— the activities for which assistance is sought from (B) NONCERTIFICATION.—If the Assistant At- The Attorney General shall require each recipi- non-Federal sources; and torney General for Civil Rights finds that the re- ent of a grant under this subtitle to submit re- (4) provide such additional assurances as the quest for certification does not demonstrate that ports to the Attorney General at such time, in Attorney General determines to be essential to a State or locality meets the requirements de- such manner, and containing such information ensure compliance with the requirements of this scribed in subparagraph (A), the Assistant At- as the Attorney General considers appropriate. subtitle. torney General for Civil Rights shall not certify

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00042 Fmt 4624 Sfmt 6333 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2549 that the State or locality is eligible to receive a such records as the Attorney General, in con- (1) the Assistant Attorney General in charge grant under this subtitle. sultation with the Federal Election Commission, of the Office of Justice Programs of the Depart- (4) TRANSMITTAL OF CERTIFICATION.—The As- shall prescribe. ment of Justice; and sistant Attorney General for Civil Rights shall (b) AUDITS AND EXAMINATIONS.—The Attorney (2) the Assistant Attorney General in charge transmit to the Attorney General either— General and the Comptroller General, or any of the Civil Rights Division of that Department. (A) a certification under subparagraph (A) of authorized representative of the Attorney Gen- SEC. 222. APPLICATION. paragraph (3); or eral or the Comptroller General, may audit or (a) IN GENERAL.—Each State or locality that (B) a notice of noncertification under sub- examine any recipient of a grant under this sub- desires to receive a grant under this subtitle paragraph (B) of such paragraph, together with title and shall, for the purpose of conducting an shall submit an application to the Attorney a report identifying the relevant deficiencies in audit or examination, have access to any record General at such time, in such manner, and con- the State’s or locality’s system for voting or ad- of a recipient of a grant under this subtitle that taining such information as the Attorney Gen- ministering elections for Federal office or in the the Attorney General or the Comptroller General eral shall require, consistent with the provisions request for certification submitted by the State determines may be related to the grant. of this section. or locality. (c) OTHER AUDITS.—If the Assistant Attorney (b) CONTENTS.—Each application submitted SEC. 214. AUTHORIZED ACTIVITIES. General for Civil Rights has certified a State or under subsection (a) shall— A State or locality may use grant payments locality as eligible to receive a grant under this (1) describe the activities for which assistance received under this subtitle— subtitle in order to meet a certification require- under this section is sought; (1) to improve, acquire, lease, modify, or re- ment described in section 212(c)(1)(A) (as per- (2) provide assurances that the State or local- place voting systems and technology and to im- mitted under section 214(5)) and such State or ity will pay the non-Federal share of the cost of prove the accessibility of polling places, includ- locality is a recipient of such a grant, such As- the activities for which assistance is sought from ing providing physical access for individuals sistant Attorney General, in consultation with non-Federal sources; and with disabilities, providing nonvisual access for the Federal Election Commission shall— (3) provide such additional assurances as the individuals with visual impairments, and pro- (1) audit such recipient to ensure that the re- Attorney General determines to be essential to viding assistance to individuals with limited cipient has achieved, or is achieving, compliance ensure compliance with the requirements of this proficiency in the English language; with the certification requirements described in subtitle. (2) to implement new election administration section 212(c)(1)(A); and (c) RELATION TO FEDERAL ELECTION REFORM procedures to increase voter participation and to (2) have access to any record of the recipient INCENTIVE GRANT PROGRAM.—A State or locality reduce disenfranchisement, such as ‘‘same-day’’ that the Attorney General determines may be re- that desires to do so may submit an application voter registration procedures; lated to such a grant for the purpose of con- under this section as part of any application (3) to educate voters concerning voting proce- ducting such an audit. submitted under section 212(a). dures, voting rights or voting technology, and to SEC. 217. REPORTS TO CONGRESS AND THE AT- (d) SAFE HARBOR.—No action may be brought train election officials, poll workers, and elec- TORNEY GENERAL. under this Act against a State or locality on the tion volunteers; (a) REPORTS TO CONGRESS.— basis of any information contained in the appli- (4) to implement new election administration (1) IN GENERAL.—Not later than January 31, cation submitted under subsection (a). procedures such as requiring individuals to 2003, and each year thereafter, the Attorney SEC. 223. APPROVAL OF APPLICATIONS. present identification at the polls and programs General shall submit to the President and Con- The Access Board shall establish general poli- to identify, to deter, and to investigate voting gress a report on the grant program established cies and criteria for the approval of applications fraud and to refer allegations of voting fraud to under this subtitle for the preceding year. submitted under section 222(a). the appropriate authority; (2) CONTENTS.—Each report submitted under SEC. 224. AUTHORIZED ACTIVITIES. (5) to meet the requirements of current Federal paragraph (1) shall contain the following: A State or locality may use grant payments election law in accordance with the demonstra- (A) A description and analysis of any activi- received under this subtitle— tion submitted under section 212(c)(1)(B) of such ties funded by a grant awarded under this sub- (1) to make polling places, including the path section; title. of travel, entrances, exits, and voting areas of (6) to establish toll-free telephone hotlines (B) Any recommendation for legislative or ad- each polling facility, accessible to individuals that voters may use to report possible voting ministrative action that the Attorney General with disabilities, including the blind and vis- fraud and voting rights violations and general considers appropriate. ually impaired, in a manner that provides the (b) REPORTS TO THE ATTORNEY GENERAL.— election information; or same opportunity for access and participation The Attorney General shall require each recipi- (7) to meet the requirements under section 101, (including privacy and independence) as for ent of a grant under this subtitle to submit re- 102, or 103. other voters; and ports to the Attorney General at such time, in SEC. 215. PAYMENTS; FEDERAL SHARE. (2) to provide individuals with disabilities and such manner, and containing such information (a) PAYMENTS.— the other individuals described in paragraph (1) as the Attorney General considers appropriate. (1) IN GENERAL.—Subject to paragraph (2), the with information about the accessibility of poll- Attorney General shall pay to each State or lo- SEC. 218. AUTHORIZATION OF APPROPRIATIONS. ing places, including outreach programs to in- cality having an application approved under (a) IN GENERAL.—There are authorized to be form the individuals about the availability of section 213 the Federal share of the costs of the appropriated $400,000,000 for fiscal year 2002 to accessible polling places and to train election of- activities described in that application. carry out the provisions of this subtitle. ficials, poll workers, and election volunteers on (2) INITIAL PAYMENT AMOUNT.—The Attorney (b) AVAILABILITY.—Any amounts appro- how best to promote the access and participa- General shall pay to each State that submits an priated pursuant to the authority of subsection tion of the individuals in elections for Federal application under section 212 an amount equal (a) shall remain available without fiscal year office. limitation until expended. to 0.5 percent of the amount appropriated under SEC. 225. PAYMENTS; FEDERAL SHARE. SEC. 219. EFFECTIVE DATE. section 218 for the fiscal year in which such ap- (a) PAYMENTS.— plication is submitted to be used by such State The Attorney General shall establish the gen- (1) IN GENERAL.—Subject to paragraph (2), the for the activities authorized under section 214. eral policies and criteria for the approval of ap- Attorney General shall pay to each State or lo- (3) RETROACTIVE PAYMENTS.—The Attorney plications under section 213(a) in a manner that cality having an application approved under General may make retroactive payments to ensures that the Attorney General is able to ap- section 223 the Federal share of the costs of the States and localities having an application ap- prove applications not later than October 1, activities described in that application. proved under section 213 for the Federal share 2002. (2) INITIAL PAYMENT AMOUNT.—The Attorney of any costs for election technology or adminis- Subtitle C—Federal Election Accessibility General shall pay to each State that submits an tration that meets the requirements of sections Grant Program application under section 222 an amount equal 101, 102, and 103 that were incurred during the SEC. 221. ESTABLISHMENT OF THE FEDERAL to 0.5 percent of the amount appropriated under period beginning on January 1, 2001, and ending ELECTION ACCESSIBILITY GRANT section 228 for the fiscal year in which such ap- on the date on which such application was ap- PROGRAM. plication is submitted to be used by such State proved under such section. (a) IN GENERAL.—There is established a Fed- for the activities authorized under section 224. (b) FEDERAL SHARE.— eral Election Accessibility Grant Program under (b) FEDERAL SHARE.— (1) IN GENERAL.—Except as provided in para- which the Attorney General, subject to the gen- (1) IN GENERAL.—Except as provided in para- graph (2), the Federal share of the costs shall be eral policies and criteria for the approval of ap- graph (2), the Federal share of the costs shall be a percentage determined by the Attorney Gen- plications established under section 223 by the a percentage determined by the Attorney Gen- eral that does not exceed 80 percent. Architectural and Transportation Barriers Com- eral that does not exceed 80 percent. (2) EXCEPTION.—The Attorney General may pliance Board (as established under section 502 (2) EXCEPTION.—The Attorney General may provide for a Federal share of greater than 80 of the Rehabilitation Act of 1973 (29 U.S.C. 792)) provide for a Federal share of greater than 80 percent of the costs for a State or locality if the (in this subtitle referred to as the ‘‘Access percent of the costs for a State or locality if the Attorney General determines that such greater Board’’), is authorized to make grants to States Attorney General determines that such greater percentage is necessary due to the lack of re- and localities to pay the costs of the activities percentage is necessary due to the lack of re- sources of the State or locality. described in section 224. sources of the State or locality. SEC. 216. AUDITS AND EXAMINATIONS OF STATES (b) ACTION THROUGH OFFICE OF JUSTICE PRO- SEC. 226. AUDITS AND EXAMINATIONS OF STATES AND LOCALITIES. GRAMS AND CIVIL RIGHTS DIVISION.—In carrying AND LOCALITIES. (a) RECORDKEEPING REQUIREMENT.—Each re- out this subtitle, the Attorney General shall act (a) RECORDKEEPING REQUIREMENT.—Each re- cipient of a grant under this subtitle shall keep through— cipient of a grant under this subtitle shall keep

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Subtitle A—Election Administration eral or the Comptroller General, may audit or (e) CHAIRPERSON; VICE CHAIRPERSON.— Commission examine any recipient of a grant under this sub- (1) IN GENERAL.—The Commission shall elect a title and shall, for the purpose of conducting an SEC. 301. ESTABLISHMENT OF THE ELECTION AD- chairperson and vice chairperson from among audit or examination, have access to any record MINISTRATION COMMISSION. its members for a term of 1 year. of a recipient of a grant under this subtitle that There is established the Election Administra- (2) NUMBER OF TERMS.—A member of the Com- the Attorney General or the Comptroller General tion Commission (in this subtitle referred to as mission may serve as the chairperson only twice determines may be related to the grant. the ‘‘Commission’’) as an independent establish- during the term of office to which such member ment (as defined in section 104 of title 5, United SEC. 227. REPORTS TO CONGRESS AND THE AT- is appointed. TORNEY GENERAL. States Code). (3) POLITICAL AFFILIATION.—The chairperson (a) REPORTS TO CONGRESS.— SEC. 302. MEMBERSHIP OF THE COMMISSION. and vice chairperson may not be affiliated with (1) IN GENERAL.—Not later than January 31, (a) NUMBER AND APPOINTMENT.— the same political party. 2003, and each year thereafter, the Attorney (1) COMPOSITION.—The Commission shall be SEC. 303. DUTIES OF THE COMMISSION. General shall submit to the President and Con- composed of 4 members appointed by the Presi- (a) IN GENERAL.—The Commission— gress a report on the grant program established dent, by and with the advice and consent of the (1) shall serve as a clearinghouse, gather in- under this subtitle for the preceding year. Senate. formation, conduct studies, and issue reports (2) CONTENTS.—Each report submitted under (2) RECOMMENDATIONS.—Before the initial ap- concerning issues relating to elections for Fed- paragraph (1) shall contain the following: pointment of the members of the Commission eral office; (A) A description and analysis of any activi- and before the appointment of any individual to (2) shall carry out the provisions of section 9 ties funded by a grant awarded under this sub- fill a vacancy on the Commission, the Majority of the National Voter Registration Act of 1993 title. Leader of the Senate, the Speaker of the House (42 U.S.C. 1973gg–7); (B) Any recommendation for legislative or ad- of Representatives, the Minority Leader of the (3) shall make available information regarding ministrative action that the Attorney General Senate, and the Minority Leader of the House of the Federal election system to the public and considers appropriate. Representatives shall each submit to the Presi- media; (b) REPORTS TO THE ATTORNEY GENERAL.— dent a candidate recommendation with respect (4) shall compile and make available to the The Attorney General shall require each recipi- to each vacancy on the Commission affiliated public the official certified results of elections ent of a grant under this subtitle to submit re- with the political party of the officer involved. for Federal office and statistics regarding na- ports to the Attorney General at such time, in (b) QUALIFICATIONS.— tional voter registration and turnout; such manner, and containing such information (1) IN GENERAL.—Each member appointed (5) shall establish an Internet website to fa- as the Attorney General considers appropriate. under subsection (a) shall be appointed on the cilitate public access, public comment, and pub- SEC. 228. AUTHORIZATION OF APPROPRIATIONS. basis of— lic participation in the activities of the Commis- (a) IN GENERAL.—There are authorized to be (A) knowledge of— sion, and shall make all information on such appropriated $100,000,000 for fiscal year 2002 to (i) and experience with, election law; website available in print; carry out the provisions of this subtitle. (ii) and experience with, election technology; (6) shall conduct the study on election tech- (b) AVAILABILITY.—Any amounts appro- (iii) and experience with, Federal, State, or nology and administration under subsection priated pursuant to the authority of subsection local election administration; (b)(1) and submit the report under subsection (a) shall remain available without fiscal year (iv) the Constitution; or (b)(2); and limitation until expended. (v) the history of the United States; and (7) beginning on the transition date (as de- (B) integrity, impartiality, and good judg- SEC. 229. EFFECTIVE DATE. fined in section 316(a)(2)), shall administer— ment. The Access Board shall establish the general (A) the voting systems standards under sec- (2) PARTY AFFILIATION.—Not more than 2 of policies and criteria for the approval of applica- tion 101; the 4 members appointed under subsection (a) tions under section 223 in a manner that ensures (B) the provisional voting requirements under may be affiliated with the same political party. that the Attorney General is able to approve ap- section 102; (3) FEDERAL OFFICERS AND EMPLOYEES.—Mem- plications not later than October 1, 2002. (C) the computerized statewide voter registra- bers appointed under subsection (a) shall be in- tion list requirements and requirements for vot- Subtitle D—National Student/Parent Mock dividuals who, at the time appointed to the ers who register by mail under section 103; Election Commission, are not elected or appointed offi- (D) the Uniform and Nondiscriminatory Elec- SEC. 231. NATIONAL STUDENT/PARENT MOCK cers or employees of the Federal Government. tion Technology and Administration Require- ELECTION. (4) OTHER ACTIVITIES.—No member appointed ments Grant Program under subtitle A of title (a) IN GENERAL.—The Election Administration to the Commission under subsection (a) may en- II; Commission is authorized to award grants to the gage in any other business, vocation, or employ- (E) the Federal Election Reform Incentive National Student/Parent Mock Election, a na- ment while serving as a member of the Commis- Grant Program under subtitle C of title II; and tional nonprofit, nonpartisan organization that sion and shall terminate or liquidate such busi- (F) the Federal Election Accessibility Grant works to promote voter participation in Amer- ness, vocation, or employment not later than the Program under subtitle B of title II. ican elections to enable it to carry out voter date on which the Commission first meets. (b) STUDIES AND REPORTS ON ELECTION TECH- education activities for students and their par- (c) DATE OF APPOINTMENT.—The appoint- NOLOGY AND ADMINISTRATION.— ents. Such activities may— ments of the members of the Commission shall be (1) STUDY OF FIRST TIME VOTERS WHO REG- (1) include simulated national elections at made not later than the date that is 90 days ISTER BY MAIL.— least 5 days before the actual election that per- after the date of enactment of this Act. (A) STUDY.— mit participation by students and parents from (d) PERIOD OF APPOINTMENT; VACANCIES.— (i) IN GENERAL.—The Commission shall con- each of the 50 States in the United States, its (1) PERIOD OF APPOINTMENT.—Members shall duct a study of the impact of section 103(b) on territories, the District of Columbia, and United be appointed for a term of 6 years, except that, voters who register by mail. States schools overseas; and of the members first appointed, 2 of the members (ii) SPECIFIC ISSUES STUDIED.—The study con- (2) consist of— who are not affiliated with the same political ducted under clause (i) shall include— (A) school forums and local cable call-in party shall be appointed for a term of 4 years. (I) an examination of the impact of section shows on the national issues to be voted upon in Except as provided in paragraph (2), a member 103(b) on first time mail registrant voters who an ‘‘issues forum’’; may only serve 1 term. vote in person, including the impact of such sec- (B) speeches and debates before students and (2) VACANCIES.— tion on voter registration; parents by local candidates or stand-ins for (A) IN GENERAL.—A vacancy on the Commis- (II) an examination of the impact of such sec- such candidates; sion shall not affect its powers, but shall be tion on the accuracy of voter rolls, including (C) quiz team competitions, mock press con- filled in the manner in which the original ap- preventing ineligible names from being placed ferences, and speech writing competitions; pointment was made. The appointment made to on voter rolls and ensuring that all eligible (D) weekly meetings to follow the course of fill the vacancy shall be subject to any condi- names are placed on voter rolls; and the campaign; or tions which applied with respect to the original (III) an analysis of the impact of such section (E) school and neighborhood campaigns to in- appointment. on existing State practices, such as the use of crease voter turnout, including newsletters, (B) EXPIRED TERMS.—A member of the Com- signature verification or attestation procedures posters, telephone chains, and transportation. mission may serve on the Commission after the to verify the identity of voters in elections for (b) REQUIREMENT.—The National Student/ expiration of the member’s term until the suc- Federal office, and an analysis of other changes Parent Mock Election shall present awards to cessor of such member has taken office as a that may be made to improve the voter registra- outstanding student and parent mock election member of the Commission. tion process, such as verification or additional projects. (C) UNEXPIRED TERMS.—An individual ap- information on the registration card. SEC. 232. AUTHORIZATION OF APPROPRIATIONS. pointed to fill a vacancy on the Commission oc- (B) REPORT.—Not later than 18 months after There are authorized to be appropriated to curring before the expiration of the term for the date on which section 103(b)(2)(A) takes ef- carry out the provisions of this subtitle $650,000 which the individual’s predecessor was ap- fect, the Commission shall submit a report to the

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President and Congress on the study conducted (i) ADOPTION OR REVISION OF STANDARDS AND (b) STAFF.— under subparagraph (A)(i) together with such GUIDELINES.—If standards or guidelines have (1) APPOINTMENT AND TERMINATION.—Subject recommendations for administrative and legisla- been promulgated under section 101, 102, or 103 to paragraph (2), the Commission may, without tive action as the Commission determines is ap- as of the transition date (as defined in section regard to the provisions of title 5, United States propriate. 316(a)(2)), not later than 30 days after the tran- Code, governing appointments in the competitive (2) STUDIES.—The Commission shall conduct sition date, the Commission shall— service, appoint and terminate an Executive Di- periodic studies of— (I) adopt such standards or guidelines by a rector, a General Counsel, and such other per- (A) methods of election technology and voting majority vote of the members of the Commission; sonnel as may be necessary to enable the Com- systems in elections for Federal office, including or mission to perform its duties. the over-vote and under-vote notification capa- (II) promulgate revisions to such standards or (2) EXECUTIVE DIRECTOR; GENERAL COUNSEL.— bilities of such technology and systems; guidelines and such revisions shall take effect (A) APPOINTMENT AND TERMINATION.—The ap- (B) ballot designs for elections for Federal of- only upon the approval of a majority of the pointment and termination of the Executive Di- fice; members of the Commission. rector and General Counsel under paragraph (1) (C) methods of ensuring the accessibility of (ii) ESTABLISHMENT OF STANDARDS AND GUIDE- shall be approved by a majority of the members voting, registration, polling places, and voting LINES.— of the Commission. equipment to all voters, including blind and dis- (I) If standards or guidelines have not been (B) INITIAL APPOINTMENT.—Beginning on the abled voters, and voters with limited proficiency promulgated under section 101, 102, or 103 as of transition date (as defined in section 316(a)(2)), in the English language; the transition date (as defined in section the Director of the Office of Election Adminis- (D) nationwide statistics and methods of iden- 316(a)(2)), the Commission shall promulgate tration of the Federal Election Commission shall tifying, deterring, and investigating voting such standards or guidelines not later than the serve as the Executive Director of the Commis- fraud in elections for Federal office; date described in subclause (II) and such stand- sion until such date as a successor is appointed (E) methods of voter intimidation; ards or guidelines shall take effect only upon under paragraph (1). (F) the recruitment and training of poll work- the approval of a majority of the members of the (C) TERM.—The term of the Executive Director ers; Commission. and the General Counsel shall be for a period of (G) the feasibility and advisability of con- (II) The date described this subclause is the 6 years. An individual may not serve for more ducting elections for Federal office on different later of— than 2 terms as the Executive Director or the days, at different places, and during different (aa) the date described in section 101(c)(1), General Counsel. The appointment of an indi- hours, including the advisability of establishing 102(c), or 103(c) (as applicable); or vidual with respect to each term shall be ap- a uniform poll closing time and establishing (bb) the date that is 30 days after the transi- proved by a majority of the members of the Com- election day as a Federal holiday; tion date (as defined in section 316(a)(2)). mission. (H) ways that the Federal Government can (B) GRANT PROGRAMS.— (D) CONTINUANCE IN OFFICE.—Notwith- best assist State and local authorities to improve (i) APPROVAL OR DENIAL.—The grants shall be standing subparagraph (C), the Executive Direc- the administration of elections for Federal office approved or denied under sections 204, 213, and tor and General Counsel shall continue in office and what levels of funding would be necessary 223 by a majority vote of the members of the until a successor is appointed under paragraph to provide such assistance; Commission not later than the date that is 30 (1). (I)(i) the laws and procedures used by each days after the date on which the application is (3) COMPENSATION.—The Commission may fix State that govern— submitted to the Commission under section 203, the compensation of the Executive Director, (I) recounts of ballots cast in elections for 212, or 222. General Counsel, and other personnel without Federal office; (ii) ADOPTION OR REVISION OF GENERAL POLI- regard to chapter 51 and subchapter III of chap- (II) contests of determinations regarding CIES AND CRITERIA.—If general policies and cri- ter 53 of title 5, United States Code, relating to whether votes are counted in such elections; and teria for the approval of applications have been classification of positions and General Schedule (III) standards that define what will con- established under section 204, 213, or 223 as of pay rates, except that the rate of pay for the Ex- stitute a vote on each type of voting equipment the transition date (as defined in section ecutive Director, General Counsel, and other used in the State to conduct elections for Fed- 316(a)(2)), not later than 30 days after the tran- personnel may not exceed the rate payable for eral office; sition date, the Commission shall— level V of the Executive Schedule under section (ii) the best practices (as identified by the (I) adopt such general policies and criteria by 5316 of such title. Commission) that are used by States with re- a majority vote of the members of the Commis- (c) DETAIL OF GOVERNMENT EMPLOYEES.—Any spect to the recounts and contests described in sion; or Federal Government employee may be detailed clause (i); and (II) promulgate revisions to such general poli- to the Commission without reimbursement, and (iii) whether or not there is a need for more cies and criteria and such revisions shall take such detail shall be without interruption or loss consistency among State recount and contest effect only upon the approval of a majority of of civil service status or privilege. procedures used with respect to elections for the members of the Commission. (d) PROCUREMENT OF TEMPORARY AND INTER- Federal office; (iii) ESTABLISHMENT OF GENERAL POLICIES AND MITTENT SERVICES.—The Commission may pro- (J) such other matters as the Commission de- CRITERIA.— cure temporary and intermittent services under termines are appropriate; and (I) If general policies and criteria for the ap- section 3109(b) of title 5, United States Code, at (K) the technical feasibility of providing vot- proval of applications have been established rates for individuals which do not exceed the ing materials in 8 or more languages for voters under section 204, 213, or 223 as of the transition daily equivalent of the annual rate of basic pay who speak those languages and who are limited date (as defined in section 316(a)(2)), the Com- prescribed for level V of the Executive Schedule English proficient. mission shall promulgate such general policies under section 5316 of such title. (3) REPORTS.—The Commission shall submit to and criteria not later than the date described in SEC. 307. AUTHORIZATION OF APPROPRIATIONS. the President and Congress a report on each subclause (II) and such general policies and cri- There are authorized to be appropriated to the study conducted under paragraph (2) together teria shall take effect only upon the approval of Commission such sums as may be necessary to with such recommendations for administrative a majority of the members of the Commission. carry out this subtitle. and legislative action as the Commission deter- (II) The date described this subclause is the Subtitle B—Transition Provisions mines is appropriate. later of— SEC. 311. EQUAL PROTECTION OF VOTING SEC. 304. MEETINGS OF THE COMMISSION. (aa) the date described in section 101(c)(1), RIGHTS ACT OF 2001. The Commission shall meet at the call of any 102(c), or 103(c) (as applicable); or (a) TRANSFER OF CERTAIN FUNCTIONS OF FED- member of the Commission, but may not meet (bb) the date that is 30 days after the transi- ERAL ELECTION COMMISSION.—There are trans- less often than monthly. tion date (as defined in section 316(a)(2)). ferred to the Election Administration Commis- SEC. 305. POWERS OF THE COMMISSION. (c) INFORMATION FROM FEDERAL AGENCIES.— sion established under section 301 all functions (a) HEARINGS.—The Commission or, at its di- The Commission may secure directly from any of the Federal Election Commission under sec- rection, any subcommittee or member of the Federal department or agency such information tion 101 and under subtitles A and B of title II Commission, may, for the purpose of carrying as the Commission considers necessary to carry before the transition date (as defined in section out this subtitle hold such hearings, sit and act out this subtitle. Upon request of the Commis- 316(a)(2)). at such times and places, take such testimony, sion, the head of such department or agency (b) TRANSFER OF CERTAIN FUNCTIONS OF THE receive such evidence, administer such oaths as shall furnish such information to the Commis- ATTORNEY GENERAL.— the Commission or such subcommittee or member sion. (1) TITLE I FUNCTIONS.—There are transferred considers advisable. (d) POSTAL SERVICES.—The Commission may to the Election Administration Commission es- (b) VOTING.— use the United States mails in the same manner tablished under section 301 all functions of the (1) IN GENERAL.—Each action of the Commis- and under the same conditions as other depart- Assistant Attorney General in charge of the sion shall be approved by a majority vote of the ments and agencies of the Federal Government. Civil Rights Division of the Department of Jus- members of the Commission and each member of SEC. 306. COMMISSION PERSONNEL MATTERS. tice under sections 102 and 103 before the transi- the Commission shall have 1 vote. (a) COMPENSATION OF MEMBERS.—Each mem- tion date (as defined in section 316(a)(2)). (2) SPECIAL RULES.— ber of the Commission shall be compensated at (2) GRANTMAKING FUNCTIONS.— (A) UNIFORM AND NONDISCRIMINATORY ELEC- the annual rate of basic pay prescribed for level (A) IN GENERAL.—Except as provided in para- TION TECHNOLOGY AND ADMINISTRATION RE- IV of the Executive Schedule under section 5315 graph (2), there are transferred to the Election QUIREMENTS.— of title 5, United States Code. Administration Commission established under

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COVERAGE OF ELECTION ADMINISTRA- individual described in paragraph (1)(C). ment of Justice, and the Assistant Attorney TION COMMISSION UNDER CERTAIN (B) SENATE MINORITY LEADER.—Two individ- General in charge of the Civil Rights Division of LAWS AND PROGRAMS. uals shall be appointed by the Minority Leader the Department of Justice under subtitles A, B, (a) TREATMENT OF COMMISSION PERSONNEL of the Senate, of whom 1 shall be an individual and C of title II before the transition date (as UNDER CERTAIN CIVIL SERVICE LAWS.— described in paragraph (1)(B) and 1 shall be an defined in section 316(a)(2)). (1) COVERAGE UNDER HATCH ACT.—Section individual described in paragraph (1)(C). (B) EXCEPTION.—The functions of the Attor- 7323(b)(2)(B)(i)(I) of title 5, United States Code, (C) SPEAKER OF THE HOUSE.—Two individuals ney General relating to the review of State plans is amended by inserting ‘‘or the Election Admin- shall be appointed by the Speaker of the House under section 204 and the certification require- istration Commission’’ after ‘‘Commission’’. of Representatives, of whom 1 shall be an indi- ments under section 213 shall not be transferred (2) EXCLUSION FROM SENIOR EXECUTIVE SERV- vidual described in paragraph (1)(B) and 1 shall under paragraph (1). ICE.—Section 3132(a)(1)(C) of title 5, United be an individual described in paragraph (1)(C). (3) ENFORCEMENT.—The Attorney General States Code, is amended by inserting ‘‘or the (D) HOUSE MINORITY LEADER.—Two individ- shall remain responsible for any enforcement ac- Election Administration Commission’’ after uals shall be appointed by the Minority Leader tion required under this Act, including the en- ‘‘Commission’’. of the House of Representatives, of whom 1 shall forcement of the voting systems standards (b) COVERAGE UNDER INSPECTOR GENERAL ACT be an individual described in paragraph (1)(B) through the Assistant Attorney General in OF 1978.—Section 8G(a)(2) of the Inspector Gen- and 1 shall be an individual described in para- charge of the Civil Rights Division of the De- eral Act of 1978 (5 U.S.C. App.) is amended by graph (1)(C). partment of Justice under section 104 and the inserting ‘‘, the Election Administration Com- (E) SENATE MAJORITY AND HOUSE MINORITY criminal penalties under section 502. mission,’’ after ‘‘Federal Election Commission,’’. JOINTLY.—Two individuals described in para- (c) TRANSFER OF CERTAIN FUNCTIONS OF THE SEC. 316. EFFECTIVE DATE; TRANSITION. graph (1)(D) shall be appointed jointly by the ACCESS BOARD.—There are transferred to the (a) EFFECTIVE DATE.— Majority Leader of the Senate and the Minority Election Administration Commission established (1) IN GENERAL.—This subtitle and the amend- Leader of the House of Representatives. under section 301 all functions of the Architec- ments made by this subtitle shall take effect on (F) HOUSE MAJORITY AND SENATE MINORITY tural and Transportation Barriers Compliance the transition date (as defined in paragraph JOINTLY.—Two individuals described in para- Board (as established under section 502 of the (2)). graph (1)(D) shall be appointed jointly by the Rehabilitation Act of 1973 (29 U.S.C. 792)) under (2) TRANSITION DATE DEFINED.—In this sec- Speaker of the House of Representatives and the section 101 and under subtitles A, B, and C of tion, the term ‘‘transition date’’ means the ear- Minority Leader of the Senate. title II before the transition date (as defined in lier of— (3) DATE.—The appointments of the members section 316(a)(2)), except that— (A) the date that is 1 year after the date of en- of the Committee shall be made not later than (1) the Architectural and Transportation Bar- actment of this Act; or the date that is 30 days after the date of enact- riers Compliance Board shall remain responsible (B) the date that is 60 days after the first date ment of this Act. under section 223 for the general policies and on which all of the members of the Election Ad- (c) PERIOD OF APPOINTMENT; VACANCIES.— criteria for the approval of applications sub- ministration Commission have been appointed Members shall be appointed for the life of the mitted under section 222(a); and under section 302. Committee. Any vacancy in the Committee shall (2) in revising the voting systems standards (b) TRANSITION.—With the consent of the enti- not affect its powers, but shall be filled in the under section 101(c)(2) the Commission shall ty involved, the Election Administration Com- same manner as the original appointment. consult with the Architectural and Transpor- mission is authorized to utilize the services of (d) INITIAL MEETING.—Not later than 30 days tation Barriers Compliance Board. such officers, employees, and other personnel of after the date on which all of the members of the SEC. 312. FEDERAL ELECTION CAMPAIGN ACT OF the entities from which functions have been Committee have been appointed, the Committee 1971. transferred to the Commission under this title or shall hold its first meeting. (a) TRANSFER OF FUNCTIONS OF OFFICE OF the amendments made by this title for such pe- (e) MEETINGS.— ELECTION ADMINISTRATION.—There are trans- riod of time as may reasonably be needed to fa- (1) IN GENERAL.—The Committee shall meet at ferred to the Election Administration Commis- cilitate the orderly transfer of such functions. the call of the Chairperson or upon the written sion established under section 301 all functions Subtitle C—Advisory Committee on Electronic request of a majority of the members of the Com- of the Director of the Office of the Election Ad- Voting and the Electoral Process mittee. OTICE ministration of the Federal Election Commission SEC. 321. ESTABLISHMENT OF COMMITTEE. (2) N .—Not later than the date that is 14 before the transition date (as defined in section days before the date of each meeting of the Com- (a) ESTABLISHMENT.—There is established the mittee, the Chairperson shall cause notice there- 316(a)(2)). Advisory Committee on Electronic Voting and of to be published in the Federal Register. (b) CONFORMING AMENDMENT.—Section 311(a) the Electoral Process (in this subtitle referred to (3) OPEN MEETINGS.—Each Committee meeting of the Federal Election Campaign Act of 1971 (2 as the ‘‘Committee’’). U.S.C. 438(a)) is amended— shall be open to the public. (b) MEMBERSHIP.— (1) in paragraph (8), by inserting ‘‘and’’ at (f) QUORUM.—Eight members of the Committee (1) COMPOSITION.—The Committee shall be the end; composed of 16 members as follows: shall constitute a quorum, but a lesser number (2) in paragraph (9), by striking ‘‘; and’’ and (A) FEDERAL REPRESENTATIVES.—Four rep- of members may hold hearings. inserting a period; and resentatives of the Federal Government, com- (g) CHAIRPERSON.—The Committee shall select (3) by striking paragraph (10) and the second prised of the Attorney General, the Secretary of a Chairperson from among its members by a ma- and third sentences. Defense, the Director of the Federal Bureau of jority vote of the members of the Committee. SEC. 313. NATIONAL VOTER REGISTRATION ACT Investigation, and the Chairman of the Federal (h) ADDITIONAL RULES.—The Committee may OF 1993. Election Commission, or an individual des- adopt such other rules as the Committee deter- (a) TRANSFER OF FUNCTIONS.—There are ignated by the respective representative. mines to be appropriate by a majority vote of the transferred to the Election Administration Com- (B) INTERNET REPRESENTATIVES.—Four rep- members of the Committee. mission established under section 301 all func- resentatives of the Internet and information SEC. 322. DUTIES OF THE COMMITTEE. tions of the Federal Election Commission under technology industries (at least 2 of whom shall (a) STUDY.— the National Voter Registration Act of 1993 be- represent a company that is engaged in the pro- (1) IN GENERAL.—The Committee shall conduct fore the transition date (as defined in section vision of electronic voting services on the date a thorough study of issues and challenges, spe- 316(a)(2)). on which the representative is appointed, and at cifically to include the potential for election (b) CONFORMING AMENDMENT.—For purposes least 2 of whom shall possess special expertise in fraud, presented by incorporating communica- of section 9(a) of the National Voter Registra- Internet or communications systems security). tions and Internet technologies in the Federal, tion Act of 1993 (42 U.S.C. 1973gg–7(a)), the ref- (C) STATE AND LOCAL REPRESENTATIVES.— State, and local electoral process. erence to the Federal Election Commission shall Four representatives from State and local gov- (2) ISSUES TO BE STUDIED.—The Committee be deemed to be a reference to the Election Ad- ernments (2 of whom shall be from States that may include in the study conducted under para- ministration Commission. have made preliminary inquiries into the use of graph (1) an examination of— SEC. 314. TRANSFER OF PROPERTY, RECORDS, the Internet in the electoral process). (A) the appropriate security measures required AND PERSONNEL. (D) PRIVATE SECTOR REPRESENTATIVES.—Four and minimum standards for certification of sys- (a) PROPERTY AND RECORDS.—The contracts, representatives not affiliated with the Govern- tems or technologies in order to minimize the po- liabilities, records, property, and other assets ment (2 of whom shall have expertise in election tential for fraud in voting or in the registration and interests of, or made available in connec- law, and 2 of whom shall have expertise in polit- of qualified citizens to register and vote; tion with, the offices and functions of the Fed- ical speech). (B) the possible methods, such as Internet or eral Election Commission which are transferred (2) APPOINTMENTS.—Appointments to the other communications technologies, that may be by this subtitle are transferred to the Election Committee shall be made not later than the date utilized in the electoral process, including the Administration Commission for appropriate allo- that is 30 days after the date of enactment of use of those technologies to register voters and cation. this Act and such appointments shall be made in enable citizens to vote online, and recommenda- (b) PERSONNEL.—The personnel employed in the following manner: tions concerning statutes and rules to be adopt- connection with the offices and functions of the (A) SENATE MAJORITY LEADER.—Two individ- ed in order to implement an online or Internet Federal Election Commission which are trans- uals shall be appointed by the Majority Leader system in the electoral process;

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COMMITTEE PERSONNEL MATTERS. ‘‘(A) solely on the grounds that the ballot Internet technology systems for use in the elec- (a) COMPENSATION OF MEMBERS.—Each mem- lacked— toral process could have on voter participation ber of the Committee shall serve without com- ‘‘(i) a notarized witness signature; rates, voter education, public accessibility, po- pensation. ‘‘(ii) an address (other than on a Federal tential external influences during the elections (b) TRAVEL EXPENSES.—The members of the write-in absentee ballot, commonly known as process, voter privacy and anonymity, and other Committee shall be allowed travel expenses, in- ‘SF186’); issues related to the conduct and administration cluding per diem in lieu of subsistence, at rates ‘‘(iii) a postmark if there are any other indicia of elections; authorized for employees of agencies under sub- that the vote was cast in a timely manner; or (D) whether other aspects of the electoral chapter I of chapter 57 of title 5, United States ‘‘(iv) an overseas postmark; or process, such as public availability of candidate Code, while away from their homes or regular ‘‘(B) solely on the basis of a comparison of information and citizen communication with places of business in the performance of services signatures on ballots, envelopes, or registration candidates, could benefit from the increased use for the Committee. forms unless there is a lack of reasonable simi- of online or Internet technologies; (c) STAFF.— larity between the signatures. (E) the requirements for authorization of col- (1) IN GENERAL.—The Chairperson of the Com- ‘‘(2) NO EFFECT ON FILING DEADLINES UNDER lection, storage, and processing of electronically mittee may, without regard to the civil service STATE LAW.—Nothing in this subsection may be generated and transmitted digital messages to laws and regulations, appoint and terminate an construed to affect the application to ballots permit any eligible person to register to vote or executive director and such other additional submitted by absent uniformed services voters of vote in an election, including applying for and personnel as may be necessary to enable the any ballot submission deadline applicable under casting an absentee ballot; Committee to perform its duties. The employ- State law.’’. (F) the implementation cost of an online or ment of an executive director shall be subject to (b) EFFECTIVE DATE.—The amendments made Internet voting or voter registration system and confirmation by the Committee. by subsection (a) shall apply with respect to bal- the costs of elections after implementation (in- (2) COMPENSATION.—The Chairperson of the lots described in section 102(b) of the Uniformed cluding a comparison of total cost savings for Committee may fix the compensation of the exec- and Overseas Citizens Absentee Voting Act (as the administration of the electoral process by utive director and other personnel without re- added by such subsection) that are submitted using Internet technologies or systems); gard to chapter 51 and subchapter III of chapter with respect to elections that occur after the (G) identification of current and foreseeable 53 of title 5, United States Code, relating to clas- date of enactment of this Act. online and Internet technologies for use in the sification of positions and General Schedule pay SEC. 402. MAXIMIZATION OF ACCESS OF RE- registration of voters, for voting, or for the pur- rates, except that the rate of pay for the execu- CENTLY SEPARATED UNIFORMED pose of reducing election fraud, currently avail- tive director and other personnel may not exceed SERVICES VOTERS TO THE POLLS. able or in use by election authorities; the rate payable for level V of the Executive (a) IN GENERAL.—Section 102(a) of the Uni- (H) the means by which to ensure and achieve Schedule under section 5316 of such title. formed and Overseas Citizens Absentee Voting equity of access to online or Internet voting or (3) PERSONNEL AS FEDERAL EMPLOYEES.— Act (42 U.S.C. 1973ff–1), as amended by section voter registration systems and address the fair- (A) IN GENERAL.—The executive director and 401(a) of this Act and section 1606(a)(1) of the ness of such systems to all citizens; and any personnel of the Committee who are em- National Defense Authorization Act for Fiscal (I) the impact of technology on the speed, ployees shall be employees under section 2105 of Year 2002 (Public Law 107–107; 115 Stat. 1278), is timeliness, and accuracy of vote counts in Fed- title 5, United States Code, for purposes of chap- amended— eral, State, and local elections. ters 63, 81, 83, 84, 85, 87, 89, and 90 of that title. (1) in paragraph (3), by striking ‘‘and’’ after (b) REPORT.— (B) MEMBERS OF COMMITTEE.—Subparagraph the semicolon at the end; (1) TRANSMISSION.—Not later than 20 months (A) shall not be construed to apply to members (2) in paragraph (4), by striking the period at after the date of enactment of this Act, the Com- of the Committee. the end and inserting a semicolon; and mittee shall transmit to Congress and the Elec- (d) DETAIL OF GOVERNMENT EMPLOYEES.— (3) by adding at the end the following new tion Administration Commission established Any Federal Government employee may be de- paragraphs: under section 301, for the consideration of such tailed to the Committee without reimbursement, ‘‘(5) in addition to using the postcard form for bodies, a report reflecting the results of the and such detail shall be without interruption or the purpose described in paragraph (4), accept study required by subsection (a), including such loss of civil service status or privilege. and process any otherwise valid voter registra- legislative recommendations or model State laws (e) PROCUREMENT OF TEMPORARY AND INTER- tion application submitted by a uniformed serv- as are required to address the findings of the MITTENT SERVICES.—The Chairperson of the ice voter for the purpose of voting in an election Committee. Committee may procure temporary and intermit- for Federal office; and (2) APPROVAL OF REPORT.—Any finding or tent services under section 3109(b) of title 5, ‘‘(6) permit each recently separated uniformed recommendation included in the report shall be United States Code, at rates for individuals services voter to vote in any election for which a voter registration application has been accept- agreed to by at least 2⁄3 of the members of the which do not exceed the daily equivalent of the Committee serving at the time the finding or rec- annual rate of basic pay prescribed for level V ed and processed under this section if that ommendation is made. of the Executive Schedule under section 5316 of voter— ‘‘(A) has registered to vote under this section; (3) INTERNET POSTING.—The Election Adminis- such title. tration Commission shall post the report trans- SEC. 325. TERMINATION OF THE COMMITTEE. and ‘‘(B) is eligible to vote in that election under mitted under paragraph (1) on the Internet The Committee shall terminate 90 days after State law.’’. website established under section 303(a)(5). the date on which the Committee transmits its EFINITIONS.—Section 107 of the Uni- report under section 322(b)(1). (b) D SEC. 323. POWERS OF THE COMMITTEE. formed and Overseas Citizens Absentee Voting (a) HEARINGS.— SEC. 326. AUTHORIZATION OF APPROPRIATIONS. Act (42 U.S.C. 1973ff–6) is amended— (1) IN GENERAL.—The Committee may hold (a) IN GENERAL.—There are authorized to be (1) by redesignating paragraphs (7) and (8) as such hearings, sit and act at such times and appropriated to carry out this subtitle not less paragraphs (9) and (10), respectively; places, take such testimony, and receive such than $2,000,000 from the funds appropriated (2) by inserting after paragraph (6) the fol- evidence as the Committee considers advisable to under section 307. lowing new paragraph: carry out this subtitle. (b) AVAILABILITY.—Any sums appropriated ‘‘(7) The term ‘recently separated uniformed (2) OPPORTUNITIES TO TESTIFY.—The Com- under the authorization contained in this sub- services voter’ means any individual who was a mittee shall provide opportunities for represent- title shall remain available, without fiscal year uniformed services voter on the date that is 60 atives of the general public, State and local gov- limitation, until expended. days before the date on which the individual ernment officials, and other groups to testify at TITLE IV—UNIFORMED SERVICES seeks to vote and who— hearings. ELECTION REFORM ‘‘(A) presents to the election official Depart- (b) INFORMATION FROM FEDERAL AGENCIES.— SEC. 401. STANDARD FOR INVALIDATION OF BAL- ment of Defense form 214 evidencing their The Committee may secure directly from any LOTS CAST BY ABSENT UNIFORMED former status as such a voter, or any other offi- Federal department or agency such information SERVICES VOTERS IN FEDERAL cial proof of such status; as the Committee considers necessary to carry ELECTIONS. ‘‘(B) is no longer such a voter; and out this subtitle. Upon request of the Chair- (a) IN GENERAL.—Section 102 of the Uniformed ‘‘(C) is otherwise qualified to vote in that elec- person of the Committee, the head of such de- and Overseas Citizens Absentee Voting Act (42 tion.’’; partment or agency shall furnish such informa- U.S.C. 1973ff–1), as amended by section (3) by redesignating paragraph (10) (as redes- tion to the Committee. 1606(a)(1) of the National Defense Authorization ignated by paragraph (1)) as paragraph (11); (c) POSTAL SERVICES.—The Committee may Act for Fiscal Year 2002 (Public Law 107–107; and use the United States mails in the same manner 115 Stat. 1278), is amended— (4) by inserting after paragraph (9) the fol- and under the same conditions as other depart- (1) by striking ‘‘Each State’’ and inserting lowing new paragraph: ments and agencies of the Federal Government. ‘‘(a) IN GENERAL.—Each State’’; and ‘‘(10) The term ‘uniformed services voter’ (d) GIFTS.— (2) by adding at the end the following: means— (1) IN GENERAL.—The Committee may accept, ‘‘(b) STANDARDS FOR INVALIDATION OF CER- ‘‘(A) a member of a uniformed service in active use, and dispose of gifts or donations of services TAIN BALLOTS.— service; or property. ‘‘(1) IN GENERAL.—A State may not refuse to ‘‘(B) a member of the merchant marine; and (2) UNUSED GIFTS.—Gifts or grants not used at count a ballot submitted in an election for Fed- ‘‘(C) a spouse or dependent of a member re- the expiration of the Committee shall be re- eral office by an absent uniformed services ferred to in subparagraph (A) or (B) who is turned to the donor or grantor. voter— qualified to vote.’’.

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(c) EFFECTIVE DATE.—The amendments made ABSENTEE BALLOT PROCEDURES FOR ALL VOT- SEC. 409. STUDY AND REPORT ON THE DEVELOP- by this section shall apply with respect to elec- ERS IN THE STATE.—Each State shall designate a MENT OF A STANDARD OATH FOR tions for Federal office that occur after the date single office which shall be responsible for pro- USE WITH OVERSEAS VOTING MATE- RIALS. of enactment of this Act. viding information regarding voter registration (a) STUDY.—The Election Administration procedures and absentee ballot procedures to be SEC. 403. PROHIBITION OF REFUSAL OF VOTER Commission established under section 301 (in REGISTRATION AND ABSENTEE BAL- used by absent uniformed services voters and this section referred to as the ‘‘Commission’’), LOT APPLICATIONS ON GROUNDS OF overseas voters with respect to elections for Fed- shall conduct a study on the feasibility and ad- EARLY SUBMISSION. eral office (including procedures relating to the (a) IN GENERAL.—Section 104 of the Uniformed visability of— use of the Federal write-in absentee ballot) to (1) prescribing a standard oath for use with and Overseas Citizens Absentee Voting Act (42 all absent uniformed services voters and over- U.S.C. 1973ff–3), as amended by section 1606(b) any document under the Uniformed and Over- seas voters who wish to register to vote or vote seas Citizens Absentee Voting Act (42 U.S.C. of the National Defense Authorization Act for in any jurisdiction in the State.’’. Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1973ff et seq) affirming that a material 1279), is amended by adding at the end the fol- (c) STUDY AND REPORT ON EXPANSION OF SIN- misstatement of fact in the completion of such a lowing new subsection: GLE STATE OFFICE DUTIES.— document may constitute grounds for a convic- ‘‘(e) PROHIBITION OF REFUSAL OF APPLICA- (1) STUDY.—The Election Administration Com- tion for perjury; and TIONS ON GROUNDS OF EARLY SUBMISSION.—A mission established under section 301 (in this (2) if the State requires an oath or affirmation State may not refuse to accept or process, with subsection referred to as the ‘‘Commission’’), to accompany any document under such Act, to respect to any election for Federal office, any shall conduct a study on the feasibility and ad- require the State to use the standard oath de- otherwise valid voter registration application or visability of making the State office designated scribed in paragraph (1). (b) REPORT.—The Commission shall submit a absentee ballot application (including the post- under section 102(c) of the Uniformed and Over- report to Congress on the study conducted card form prescribed under section 101) sub- seas Citizens Absentee Voting Act (as added by under subsection (a) together with such rec- mitted by an absent uniformed services voter subsection (b)) responsible for the acceptance of ommendations for legislative and administrative during a year on the grounds that the voter sub- valid voter registration applications, absentee action as the Commission determines appro- mitted the application before the first date on ballot applications, and absentee ballots (in- priate. which the State otherwise accepts or processes cluding Federal write-in absentee ballots) from such applications for that year submitted by ab- each absent uniformed services voter or overseas SEC. 410. STUDY AND REPORT ON PROHIBITING NOTARIZATION REQUIREMENTS. sentee voters who are not members of the uni- voter who wishes to register to vote or vote in (a) STUDY.—The Election Administration formed services.’’. any jurisdiction in the State. Commission established under section 301 (in (b) EFFECTIVE DATE.—The amendment made (2) REPORT.—The Commission shall submit a this section referred to as the ‘‘Commission’’), by subsection (a) shall apply with respect to report to Congress on the study conducted shall conduct a study on the feasibility and ad- elections for Federal office that occur after the under paragraph (1) together with such rec- visability of prohibiting a State from refusing to date of enactment of this Act. ommendations for legislative and administrative accept any voter registration application, absen- SEC. 404. DISTRIBUTION OF FEDERAL MILITARY action as the Commission determines appro- tee ballot request, or absentee ballot submitted VOTER LAWS TO THE STATES. priate. by an absent uniformed services voter or over- Not later than the date that is 60 days after seas voter on the grounds that the document in- the date of enactment of this Act, the Secretary SEC. 407. REPORT ON ABSENTEE BALLOTS volved is not notarized. of Defense (in this section referred to as the TRANSMITTED AND RECEIVED AFTER GENERAL ELECTIONS. (b) REPORT.—The Commission shall submit a ‘‘Secretary’’), as part of any voting assistance report to Congress on the study conducted (a) IN GENERAL.—Section 102 of the Uniformed program conducted by the Secretary, shall dis- under subsection (a) together with such rec- and Overseas Citizens Absentee Voting Act (42 tribute to each State (as defined in section 107 ommendations for legislative and administrative U.S.C. 1973ff–1), as amended by the preceding of the Uniformed and Overseas Citizens Absen- action as the Commission determines appro- provisions of this title, is amended by adding at tee Voting Act (42 U.S.C. 1973ff–6) enough cop- priate. ies of the Federal military voting laws (as iden- the end the following new subsection: TITLE V—CRIMINAL PENALTIES; tified by the Secretary) so that the State is able ‘‘(d) REPORT ON NUMBER OF ABSENTEE BAL- MISCELLANEOUS to distribute a copy of such laws to each juris- LOTS TRANSMITTED AND RECEIVED.—Not later diction of the State. than 120 days after the date of each regularly SEC. 501. REVIEW AND REPORT ON ADEQUACY OF EXISTING ELECTORAL FRAUD STAT- SEC. 405. EFFECTIVE DATES. scheduled general election for Federal office, UTES AND PENALTIES. Notwithstanding the preceding provisions of each State and unit of local government that (a) REVIEW.—The Attorney General shall con- this title, each effective date otherwise provided administered the election shall (through the duct a review of existing criminal statutes con- under this title shall take effect 1 day after such State, in the case of a unit of local government) cerning election offenses to determine— effective date. submit a report to the Election Administration (1) whether additional statutory offenses are SEC. 406. STUDY AND REPORT ON PERMANENT Commission (established under the Martin Lu- needed to secure the use of the Internet for elec- REGISTRATION OF OVERSEAS VOT- ther King, Jr. Equal Protection of Voting Rights tion purposes; and ERS; DISTRIBUTION OF OVERSEAS Act of 2002) on the number of absentee ballots (2) whether existing penalties provide ade- VOTING INFORMATION BY A SINGLE transmitted to absent uniformed services voters STATE OFFICE; STUDY AND REPORT quate punishment and deterrence with respect ON EXPANSION OF SINGLE STATE and overseas voters for the election and the to such offenses. OFFICE DUTIES. number of such ballots that were returned by (b) REPORT.—The Attorney General shall sub- (a) STUDY AND REPORT ON PERMANENT REG- such voters and cast in the election, and shall mit a report to the Judiciary Committees of the ISTRATION OF OVERSEAS VOTERS.— make such report available to the general pub- Senate and the House of Representatives, the (1) STUDY.—The Election Administration Com- lic.’’. Senate Committee on Rules and Administration, mission established under section 301 (in this (b) DEVELOPMENT OF STANDARDIZED FORMAT and the House Committee on Administration on subsection referred to as the ‘‘Commission’’), FOR REPORTS.—The Election Administration the review conducted under subsection (a) to- shall conduct a study on the feasibility and ad- Commission shall develop a standardized format gether with such recommendations for legisla- visability of providing for permanent registra- for the reports submitted by States and units of tive and administrative action as the Attorney tion of overseas voters under section 104 of the local government under section 102(d) of the General determines appropriate. Uniformed and Overseas Citizens Absentee Vot- Uniformed and Overseas Citizens Absentee Vot- SEC. 502. OTHER CRIMINAL PENALTIES. ing Act (42 U.S.C. 1973ff–3), as amended by sec- ing Act (as added by subsection (a)), and shall (a) CONSPIRACY TO DEPRIVE VOTERS OF A tion 1606(b) of the National Defense Authoriza- make the format available to the States and FAIR ELECTION.—Any individual who know- tion Act for Fiscal Year 2002 (Public Law 107– units of local government submitting such re- ingly and willfully gives false information in 107; 115 Stat. 1279) and this title. ports. registering or voting in violation of section 11(c) (2) REPORT.—The Commission shall submit a of the National Voting Rights Act of 1965 (42 report to Congress on the study conducted SEC. 408. OTHER REQUIREMENTS TO PROMOTE PARTICIPATION OF OVERSEAS AND U.S.C. 1973i(c)), or conspires with another to under paragraph (1) together with such rec- ABSENT UNIFORMED SERVICES VOT- violate such section, shall be fined or impris- ommendations for legislative and administrative ERS. oned, or both, in accordance with such section. action as the Commission determines appro- (b) FALSE INFORMATION IN REGISTERING AND Section 102 of the Uniformed and Overseas priate. VOTING.—Any individual who knowingly com- Citizens Absentee Voting Act (42 U.S.C. 1973ff– (b) DISTRIBUTION OF OVERSEAS VOTING INFOR- mits fraud or knowingly makes a false statement 1), as amended by the preceding provisions of MATION BY A SINGLE STATE OFFICE.—Section 102 with respect to the naturalization, citizenry, or of the Uniformed and Overseas Citizens Absen- this title, is amended by adding at the end the alien registry of such individual in violation of tee Voting Act (42 U.S.C. 1973ff–1), as amended following new subsection: section 1015 of title 18, United States Code, shall by section 1606(a)(1) of the National Defense ‘‘(e) REGISTRATION NOTIFICATION.—With re- be fined or imprisoned, or both, in accordance Authorization Act for Fiscal Year 2002 (Public spect to each absent uniformed services voter with such section. Law 107–107; 115 Stat. 1278) and the preceding and each overseas voter who submits a voter SEC. 503. USE OF SOCIAL SECURITY NUMBERS provisions of this title, is amended by adding at registration application or an absentee ballot re- FOR VOTER REGISTRATION AND the end the following new subsection: quest, if the State rejects the application or re- ELECTION ADMINISTRATION. ‘‘(c) DESIGNATION OF SINGLE STATE OFFICE TO quest, the State shall provide the voter with the (a) IN GENERAL.—Section 205(c)(2) of the So- PROVIDE INFORMATION ON REGISTRATION AND reasons for the rejection.’’. cial Security Act (42 U.S.C. 405(c)(2)) is amended

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00048 Fmt 4624 Sfmt 6333 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2555 by adding at the end the following new sub- tion Act for Fiscal Year 2002 (Public Law 107– recommendations for such legislative and ad- paragraph: 107; 115 Stat. 1274) upon the enactment of that ministrative action as the Commission deter- ‘‘(I)(i) It is the policy of the United States Act. mines appropriate. that any State (or political subdivision thereof) SEC. 505. STATE RESPONSIBILITY TO GUARANTEE (2) COSTS.—The report submitted under para- may, in the administration of any voter registra- MILITARY VOTING RIGHTS. graph (1) shall contain an estimate of the costs tion or other election law, use the social security (a) REGISTRATION AND BALLOTING.—Section of establishing the program described in sub- account numbers issued by the Commissioner of 102 of the Uniformed and Overseas Absentee section (a)(1). Social Security for the purpose of establishing Voting Act (42 U.S.C. 1973ff–1), as amended by (3) IMPLEMENTATION.—The report submitted the identification of individuals affected by section 1606(a)(1) of the National Defense Au- under paragraph (1) shall contain an analysis such law, and may require any individual who thorization Act for Fiscal Year 2002 (Public Law of the feasibility of implementing the program is, or appears to be, so affected to furnish to 107–107; 115 Stat. 1278), is amended— described in subsection (a)(1) with respect to the such State (or political subdivision thereof) or (1) by inserting ‘‘(a) ELECTIONS FOR FEDERAL absentee ballots submitted in the general elec- any agency thereof having administrative re- OFFICES.—’’ before ‘‘Each State shall—’’; and tion for Federal office held in 2004. sponsibility for the law involved, the social se- (2) by adding at the end the following: (4) RECOMMENDATIONS REGARDING THE ELDER- curity account number (or numbers, if such in- ‘‘(b) ELECTIONS FOR STATE AND LOCAL OF- LY AND DISABLED.—The report submitted under dividual has more than one such number) issued FICES.—Each State shall— paragraph (1) shall— to such individual by the Commissioner of Social ‘‘(1) permit absent uniformed services voters to (A) include recommendations of the Federal Security. use absentee registration procedures and to vote Election Commission on ways that program de- ‘‘(ii) For purposes of clause (i), an agency of by absentee ballot in general, special, primary, scribed in subsection (a)(1) would target elderly a State (or political subdivision thereof) charged and runoff elections for State and local offices; individuals and individuals with disabilities; with the administration of any voter registra- and and tion or other election law that did not use the ‘‘(2) accept and process, with respect to any (B) identify methods to increase the number of social security account number for identification election described in paragraph (1), any other- such individuals who vote in elections for Fed- under a law or regulation adopted before Janu- wise valid voter registration application from an eral office. ary 1, 2002, may require an individual to dis- absent uniformed services voter if the applica- (c) POSTAL SERVICE DEFINED.—The term close his or her social security number to such tion is received by the appropriate State election ‘‘Postal Service’’ means the United States Postal agency solely for the purpose of administering official not less than 30 days before the elec- Service established under section 201 of title 39, the laws referred to in such clause. tion.’’. United States Code. ‘‘(iii) If, and to the extent that, any provision (b) CONFORMING AMENDMENT.—The heading SEC. 508. HELP AMERICA VOTE COLLEGE PRO- of Federal law enacted before the date of enact- for title I of such Act is amended by striking GRAM. ment of the Equal Protection of Voting Rights ‘‘FOR FEDERAL OFFICE’’. (a) ESTABLISHMENT OF PROGRAM.— Act of 2002 is inconsistent with the policy set SEC. 506. SENSE OF THE SENATE REGARDING (1) IN GENERAL.—Not later than 1 year after forth in clause (i), such provision shall, on and STATE AND LOCAL INPUT INTO the appointment of its members, the Election after the date of the enactment of such Act, be CHANGES MADE TO THE ELECTORAL Administration Commission (in this section re- PROCESS. null, void, and of no effect.’’. ferred to as the ‘‘Commission’’) shall develop a (a) FINDINGS.—Congress finds the following: (b) CONSTRUCTION.—Nothing in this section program to be known as the ‘‘Help America Vote (1) Although Congress has the responsibility may be construed to supersede any privacy College Program’’ (in this section referred to as to ensure that our citizens’ right to vote is pro- guarantee under any Federal or State law that the ‘‘Program’’). tected, and that votes are counted in a fair and applies with respect to a social security number. (2) PURPOSES OF PROGRAM.—The purpose of accurate manner, States and localities have a SEC. 504. DELIVERY OF MAIL FROM OVERSEAS the Program shall be— PRECEDING FEDERAL ELECTIONS. vested interest in the electoral process. (2) The Federal Government should ensure (A) to encourage students enrolled at institu- (a) RESPONSIBILITIES OF SECRETARY OF DE- tions of higher education (including community FENSE.— that States and localities have some say in any election mandates placed upon the States and colleges) to assist State and local governments in (1) ADDITIONAL DUTIES.—Section 1566(g) of the administration of elections by serving as title 10, United States Code, as added by section localities. (3) Congress should ensure that any election nonpartisan poll workers or assistants; and 1602(a)(1) of the National Defense Authorization (B) to encourage State and local governments Act for Fiscal Year 2002 (Public Law 107–107; reform laws contain provisions for input by State and local election officials. to use the services of the students participating 115 Stat. 1274), is amended— in the Program. (A) by redesignating paragraph (3) as para- (b) SENSE OF THE SENATE.—It is the sense of (b) ACTIVITIES UNDER PROGRAM.— graph (4); and the Senate that the Department of Justice and (1) IN GENERAL.—In carrying out the Program, (B) by striking paragraph (2) and inserting the Committee on Election Reform should take the Commission (in consultation with the chief the following new paragraphs: steps to ensure that States and localities are al- election official of each State) shall develop ma- ‘‘(2) The Secretary shall ensure that voting lowed some input into any changes that are terials, sponsor seminars and workshops, engage materials are transmitted expeditiously by mili- made to the electoral process, preferably in advertising targeted at students, make grants, tary postal authorities at all times. The Sec- through some type of advisory committee or and take such other actions as it considers ap- retary shall, to the maximum extent practicable, commission. propriate to meet the purposes described in sub- implement measures to ensure that a postmark SEC. 507. STUDY AND REPORT ON FREE ABSEN- section (a)(2). or other official proof of mailing date is pro- TEE BALLOT POSTAGE. (2) REQUIREMENTS FOR GRANT RECIPIENTS.—In vided on each absentee ballot collected at any (a) STUDY ON THE ESTABLISHMENT OF A FREE making grants under the Program, the Commis- overseas location or vessel at sea whenever the ABSENTEE BALLOT POSTAGE PROGRAM.— sion shall ensure that the funds provided are Department of Defense is responsible for col- (1) IN GENERAL.—The Election Administration spent for projects and activities which are car- lecting mail for return shipment to the United Commission established under section 301 shall ried out without partisan bias or without pro- States. The Secretary shall ensure that the conduct a study on the feasibility and advis- moting any particular point of view regarding measures implemented under the preceding sen- ability of the establishment by the Federal Elec- any issue, and that each recipient is governed in tence do not result in the delivery of absentee tion Commission and the Postal Service of a pro- a balanced manner which does not reflect any ballots to the final destination of such ballots gram under which the Postal Service shall waive partisan bias. after the date on which the election for Federal the amount of postage applicable with respect to (3) COORDINATION WITH INSTITUTIONS OF HIGH- office is held. absentee ballots submitted by voters in general ‘‘(3) The Secretary of each military depart- elections for Federal office (other than balloting ER EDUCATION.—The Commission shall encour- ment shall, to the maximum extent practicable, materials mailed under section 3406 of title 39, age institutions of higher education (including provide notice to members of the armed forces United States Code) that does not apply with re- community colleges) to participate in the Pro- stationed at that installation of the last date be- spect to the postage required to send the absen- gram, and shall make all necessary materials fore a general Federal election for which absen- tee ballots to voters. and other assistance (including materials and tee ballots mailed from a postal facility located (2) PUBLIC SURVEY.—As part of the study con- assistance to enable the institution to hold at that installation can reasonably be expected ducted under paragraph (1), the Election Ad- workshops and poll worker training sessions) to be timely delivered to the appropriate State ministration Commission shall conduct a survey available without charge to any institution and local election officials.’’. of potential beneficiaries under the program de- which desires to participate in the Program. (2) REPORT.—The Secretary of Defense shall scribed in such paragraph, including the elderly (c) AUTHORIZATION OF APPROPRIATIONS.—In submit to Congress a report describing the meas- and disabled, and shall take into account the addition to any other funds authorized to be ap- ures to be implemented under section 1566(g)(2) results of such survey in determining the feasi- propriated to the Commission, there are author- of title 10, United States Code (as added by bility and advisability of establishing such a ized to be appropriated to carry out this section paragraph (1)), to ensure the timely transmittal program. such sums as may be necessary for fiscal year and postmarking of voting materials and identi- (b) REPORT.— 2002 and each succeeding fiscal year. fying the persons responsible for implementing (1) SUBMISSION.—Not later than the date that SEC. 509. RELATIONSHIP TO OTHER LAWS. such measures. is 1 year after the date of enactment of this Act, (a) IN GENERAL.—Except as specifically pro- (b) EFFECTIVE DATE.—The amendments made the Election Administration Commission shall vided in section 103(b) of this Act with regard to by this section shall take effect as if included in submit to Congress a report on the study con- the National Voter Registration Act of 1993 (42 section 1602 of the National Defense Authoriza- ducted under subsection (a)(1) together with U.S.C. 1973gg et seq.), nothing in this Act may

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00049 Fmt 4624 Sfmt 6333 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2556 CONGRESSIONAL RECORD — SENATE April 11, 2002 be construed to authorize or require conduct former President’s Carter and Ford is ‘‘Congress The PRESIDING OFFICER. Is there prohibited under the following laws, or super- should enact legislation to hold presidential and objection? sede, restrict, or limit such laws: congressional elections on a national holiday’’. The Chair hears none, and it is so or- (1) The Voting Rights Act of 1965 (42 U.S.C. Holding elections on the legal public holiday of 1973 et seq.). Veterans Day, as proclaimed by the President dered. (2) The Voting Accessibility for the Elderly and observed by the Federal Government or on The Senator may proceed. and Handicapped Act (42 U.S.C. 1973ee et seq.). the weekends, may allow election day to be a (3) The Uniformed and Overseas Citizens Ab- national holiday without adding the cost and f sentee Voting Act (42 U.S.C. 1973ff et seq.). administrative burden of an additional holiday. (4) The National Voter Registration Act of (3) Holding elections on a holiday or weekend NATIONAL LABORATORIES PART- 1993 (42 U.S.C. 1973gg et seq.). could allow more working people to vote more (5) The Americans with Disabilities Act of 1990 easily, potentially increasing voter turnout. It NERSHIP IMPROVEMENT ACT OF (42 U.S.C. 1994 et seq.). could increase the pool of available poll workers 2001—Continued (6) The Rehabilitation Act of 1973 (29 U.S.C. and make public buildings more available for Mr. ALLEN. Mr. President, I rise 701 et seq.). use as polling places. Holding elections over a today to discuss the much needed en- (b) NO EFFECT ON PRECLEARANCE OR OTHER weekend could provide flexibility needed for ergy security legislation that is before REQUIREMENTS UNDER VOTING RIGHTS ACT.— uniform polling hours. The approval by the Attorney General of a (4) Several proposals to make election day a the Senate. State’s application for a grant under title II, or holiday or to shift election day to a weekend This week, at the very moment we any other action taken by the Attorney General have been offered in the 107th Congress. Any debate this very important landmark or a State under such title, shall not be consid- new voting day options should be sensitive to legislation, we are seeing a confluence ered to have any effect on requirements for the religious observances of voters of all faiths of factors in our energy supply and de- preclearance under section 5 of the Voting and to our Nation’s veterans. mand that amounts to what one might Rights Act of 1965 (42 U.S.C. 1973c) or any other SEC. 512. SENSE OF THE SENATE ON COMPLI- requirements of such Act. ANCE WITH ELECTION TECHNOLOGY call the ‘‘perfect storm.’’ There have been few other times in SEC. 510. VOTERS WITH DISABILITIES. AND ADMINISTRATION REQUIRE- MENTS. (a) FINDINGS.—Congress makes the following the history of our nation where we It is the sense of the Senate that full funding findings: have seen such a stark demonstration shall be provided to each State and locality to (1) The Americans with Disabilities Act of 1990 that our national security interests are meet the requirements relating to compliance (42 U.S.C. 12101 et seq.) requires that people with election technology and administration synonymous with our energy security. with disabilities have the same kind of access to pursuant to this Act. And here are—in this ‘‘perfect public places as the general public. storm’’—the various storm fronts that (2) The Voting Accessibility for the Elderly SEC. 513. BROADCASTING FALSE ELECTION IN- FORMATION. and Handicapped Act (42 U.S.C. 1973ee et seq.) are coming together and colliding to In carrying out its duty under section requires that all polling places for Federal elec- produce some very ominous results for 303(a)(1)(G), the Commission, within 6 months tions be accessible to the elderly and the handi- the American people, their families, after its establishment shall provide a detailed capped. and small businesses. report to the Congress on issues regarding the (3) The General Accounting Office in 2001 broadcasting or transmitting by cable of Federal The travel season is heading into its issued a report based on their election day ran- election results including broadcasting practices annual peak as more and more Ameri- dom survey of 496 polling places during the 2000 that may result in the broadcast of false infor- cans hit the road, and those numbers election across the country and found that 84 mation concerning the location or time of oper- are higher than usual because of peo- percent of those polling places had one or more ation of a polling place. potential impediments that prevented individ- ple’s fear of flying or the aggravation, uals with disabilities, especially those who use SEC. 514. SENSE OF THE SENATE REGARDING the stress of commercial air travel due CHANGES MADE TO THE ELECTORAL to security concerns and desires. wheelchairs, from independently and privately PROCESS AND HOW SUCH CHANGES voting at the polling place in the same manner IMPACT STATES. Refineries are also beginning their as everyone else. It is the sense of the Senate that— annual changeover from winter fuels to (4) The Department of Justice has interpreted (1) the provisions of this Act shall not prohibit specially formulated, cleaner burning accessible voting to allow curbside voting or ab- States to use curbside voting as a last resort to summer fuels that cost more to sentee voting in lieu of making polling places satisfy the voter accessibility requirements produce. Those increased costs at refin- physically accessible. under section 101(a)(3); (5) Curbside voting does not allow the voter (2) the provisions of this Act permit States— eries, that are already running at near the right to vote in privacy. (A) to use Federal funds to purchase new vot- capacity, will be passed on to the (b) SENSE OF CONGRESS.—It is the sense of ing machines; and American consumer. Congress that the right to vote in a private and (B) to elect to retrofit existing voting machines In recent weeks, the Israelis have independent manner is a right that should be in lieu of purchasing new machines to meet the taken strong action to defend them- afforded to all eligible citizens, including citi- voting machine accessibility requirements under selves from the escalating growth of zens with disabilities, and that curbside voting section 101(a)(3); should only be an alternative of the last resort (3) nothing in this Act requires States to re- heinous suicide bombings in Israel. in providing equal voting access to all eligible place existing voting machines; In response to all of this, the dictator American citizens. (4) nothing under section 101(a) of this Act of Iraq, Saddam Hussein, has pledged SEC. 511. ELECTION DAY HOLIDAY STUDY. specifically requires States to install wheelchair to embargo Iraq’s oil exports for 30 (a) IN GENERAL.—In carrying out its duty ramps or pave parking lots at each polling loca- days or until Israel withdraws from under section 303(a)(1)(G), the Commission, tion for the accessibility needs of individuals Palestinian territories. within 6 months after its establishment, shall with disabilities; and (5) the Election Administration Commission, The Associated Press quoted Saddam provide a detailed report to the Congress on the as saying: advisability of establishing an election day holi- the Attorney General, and the Architectural The oppressive Zionist and American day, including options for holding elections for and Transportation Barriers Compliance Board enemy has belittled the capabilities of the Federal offices on an existing legal public holi- should recognize the differences that exist be- [Arab] nation. day such as Veterans Day, as proclaimed by the tween urban and rural areas with respect to the President, or of establishing uniform weekend administration of Federal elections under this Combine all of these factors together, voting hours. Act. and the price of gasoline has increased (b) FACTORS CONSIDERED.—In conducting that Amend the title so as to read: ‘‘An Act to about 25 cents a gallon in just the last require States and localities to meet uni- study, the Commission shall take into consider- few weeks. This is the sharpest in- ation the following factors: form and nondiscriminatory election tech- (1) Only 51 percent of registered voters in the nology and administration requirements ap- crease in a 4-week period since the year United States turned out to vote during the No- plicable to Federal elections, to establish 1990, right before the gulf war. vember 2000 Presidential election—well-below grant programs to provide assistance to The price of a barrel of oil has risen the worldwide turnout average of 72.9 percent States and localities to meet those require- to about $26 a barrel as of yesterday, for Presidential elections between 1999 and 2000. ments and to improve election technology and many projections indicate the and the administration of Federal elections, After the 2000 election, the Census Bureau asked price will spike to more than $30 a bar- thousands of non-voters why they did not vote. to establish the Election Administration Commission, and for other purposes.’’. rel. The top reason for not voting, given by 22.6 per- The problem is one of basic econom- cent of the respondents, was that they were too The PRESIDING OFFICER. The Sen- busy or had a conflicting work or school sched- ator from Virginia. ics that a fourth grade student in Vir- ule. Mr. ALLEN. Mr. President, I ask ginia would understand, or as the Pre- (2) One of the recommendations of the Na- unanimous consent to speak for up to siding Officer would certainly agree, a tional Commission on Election Reform led by 20 minutes on the energy bill. fourth grade student in West Virginia

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00050 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2557 as well. I hope that the Senate also un- Also, there are groups of opponents. and demand that we have ridden for derstands this very basic, simple mat- Many of those groups were also the op- the past several decades. We must not ter of high demand and inadequate sup- ponents who were against the Prudhoe allow the Saddam Husseins of the ply. Even as the demand for oil is ris- Bay production several decades ago. world to jerk us around and actually ing, supply is constrained this year be- Thank goodness, reason and security run that roller coaster. cause the nations in OPEC have cut prevailed and we are getting oil President Bush’s energy plan is com- production since the end of the year through the pipeline from Prudhoe prehensive. It combines conservation 2000 by a total of about 5 million bar- Bay. and incentives for the development of rels of oil per day. The reality is, with the infrastruc- The result is financial hardship for ture and the Trans-Alaska Pipeline less alternative energy sources. I look for- families and enterprises that pay more than about 50 miles away, just a few ward to voting for tax incentives for al- out of pocket for their basic transpor- years of work are needed to get oil ternative-fueled vehicles. It also in- tation needs. It is a loaded weapon flowing from ANWR. The pipeline is al- cludes increased domestic production. aimed at our economy, which appears ready built. We just need to get that 50 An energy policy without all of these to be moving slowly on the road to re- mile span built from Prudhoe Bay to components will not be effective. covery. the exploration site at ANWR. It is not We have a responsibility to the I wholeheartedly support a balanced quite the magnitude of a project back American people to address these chal- energy policy, including conservation in the 1970s. lenges head on. If you think the situa- and new, advanced technologies, such The amount of oil we will be getting tion is dire today, take a look just a as hydrogen-fuel-cell-powered vehicles, from there is about the same as what short time from now into the future. electric vehicles, hybrid vehicles, and we could replace from 30 years of Saudi Over the next 20 years, U.S. oil con- clean coal technology. We are the Arabian imports. And on top of it all, ‘‘Saudi Arabia of coal.’’ I know the sumption is projected to increase by 33 there are estimates—I will admit this percent and demand for electricity is Chair shares my desire in working for is on the high side—of the creation of clean coal technologies—and also solar projected to increase by 45 percent. Our as many as 735,000 new jobs. The esti- dependence on foreign sources of oil photovoltaic technology. mated oil at ANWR is valued at more But at the same time, we must in- will grow from 55 percent today to 64 than $300 billion, which could replace a crease our American-based production percent by the year 2020. This compares to become less reliant and dependent large portion of foreign oil imports and to just 42 percent from foreign sources on foreign sources of oil. clearly create hundreds of thousands of less than 10 years ago. jobs for our economy. Rising tensions in the Middle East Clearly, we can see that something will further increase our prices at the Again, the North Slope of Alaska, the Arctic Plain, or ANWR, is not some must be done, and soon. I am com- gas pump, damage job opportunities, mitted to working for commonsense so- and take more money from working mountainous, beautiful sanctuary. It is lutions based upon sound science and people. This increased cost in fuel will a flat, barren, cold, inhospitable place, the best available technologies so that ultimately cause an increase in the and the small local population nearby all Americans can have affordable, reli- cost of goods and products, 95 percent is virtually unanimous in its desire to able access to energy to fuel our motor of which come by truck to some store see the utilization of the resources be- or directly to your home. neath that frozen tundra. As it is very vehicles, our homes, our farm oper- Please be aware that the United nearby, and similar to Prudhoe Bay, ations, and our business operations States continues to import nearly 1 and as has been seen from studies, across America. million barrels a day from Saddam there will be no adverse impact on car- I am also committed to making Hussein. This is the same man who ibou or mosquitoes, which are plentiful fuller use of the resources we have turns around and compensates the fam- in the summer, or other flora and within our own borders in States that ilies of suicide bombers at a rate of fauna. are supportive. While there may be oil $25,000. You could say that the com- I support environmentally respon- off the coast of California, the people pensation for 1 murderer is equivalent sible exploration and production at of California are opposed to oil devel- to about 900 barrels of oil that the ANWR to help at least ameliorate our opment off their coast. Therefore, I re- United States and other nations buy dependence on OPEC. The announce- spect their desires and would not sup- from Saddam Hussein. We can no ment of curtailed exports by Iraq port oil exploration off California. should remind us more than ever that longer afford to let Saddam Hussein In Alaska, Republicans, Democrats, quite literally put us over the barrel. our economy and national security will At a time when Iraq is calling for an remain bound together as long as we Eskimos, Indians, all people are over- OPEC embargo on oil sales to America, allow tyrants and despots to control whelmingly in favor of production in environmentally safe production in a our destiny. ANWR. small and desolate place on the barren In addition to the Middle East, the There are other groups that support Arctic Plain on the North Slope of political dispute in Venezuela has left production on the North Slope of Alas- Alaska could alone replace more than their oil industry crippled as labor ka—groups such as the Vietnam Vet- 35 years of Iraqi oil imports. The poten- groups have staged a nationwide erans Institute. I quote from them: tial is enormous for large oil reserves strike. War and international terrorism have relatively near that of the current pro- Simply put, we are entirely too de- pendent on foreign oil and we must ex- again brought into sharp focus the heavy re- duction at Prudhoe Bay—about 16 bil- liance of the U.S. on imported oil. During lion barrels. Conservative estimates pand our domestic production. We these times of crises, such reliance threatens state that ANWR has more oil than all must also improve our energy security our national security and economic well- of Texas. by identifying and developing new en- being. . . . It is important that we develop I read that the Senator from Con- ergy opportunities. Diversification of domestic sources of oil. necticut yesterday said it would take energy supplies is basic to our com- Organized labor. This is from Jerry 10 years to get oil flowing from the prehensive national energy policy. We Hood of the International Brotherhood North Slope of Alaska and this ANWR should encourage new, cooperative of Teamsters: area. Let’s assume it would take 10 trade arrangements and new resources years. Maybe this decision should have in willing prospects throughout the America has gone too long without a solid been made 10 years ago. Indeed, this world. energy plan. When energy costs rise, working Senate, in 1995, as well as the House, All of these initiatives, discussions, families are the first to feel the pinch. The passed exploration permission legisla- and cooperative efforts are aimed at Senate should follow the example passed by tion in 1995. Unfortunately, that legis- fulfilling just one part of our national the House and ease the burden by sending lation and that permission to explore the President supply-based energy legisla- energy policy, which is the diversifica- tion to sign. ANWR was vetoed by the President in tion of our international sources of 1995. If that had not been vetoed, that supply. The Hispanic community. I quote oil would be flowing and we would not A commonsense, comprehensive, from Mario Rodriguez, president of the have as great a dependence on foreign long-term energy plan will get us off United States-Mexico Chamber of Com- oil, much less Saddam Hussein. this roller coaster of restrictive supply merce:

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00051 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2558 CONGRESSIONAL RECORD — SENATE April 11, 2002 We urge the Senate leadership to pass com- from their point of view and take this He also said: prehensive energy legislation. This is not a opportunity to explain that the facts All we need to do is use about 250 or 275 partisan issue. Millions of needy Hispanic do not support their amendment. million gallons of ethanol, which we already families need your support now. The renewable fuels standard is the do and are prepared to do in the future. From Jewish organizations, Mort culmination of 20 years of sound public Governor Davis recently delayed his Zuckerman, chairman of the Con- policy. We have all worked at the ban on MTBE in California for 1 year, ference of Presidents of Major Amer- State, local, and Federal levels to coinciding with the initiation of the re- ican Jewish Organizations: make sure we have brought together newable fuels standard, RFS, and his The [Conference] at its general meeting on the best kind of public policy for en- acceptance of that RFS package is the November 14th unanimously supported a res- ergy as it relates to renewable fuels. best option to meet California’s cur- olution calling on Congress to act expedi- This standard will almost triple pro- rent and certainly its future gasoline tiously to pass the energy bill that will serve duction of biofuels over the next 10 to lessen our dependence on foreign sources needs. This, in large part, is due to the years. The RFS, as it is known, will ac- fact that a Federal RFG with an MTBE of oil. celerate the biorefinery concept so that African-American groups. Harry ban would require about 700 million a wide range of cellulosic biomass feed- gallons of ethanol annually in Cali- Alford, chairman of the National Black stocks will cost-effectively be con- fornia. Chamber of Commerce, states: verted into biofuels, bioelectricity, and The next alternative would be a pro- Our growing membership reflects the opin- biochemicals. ion of more and more Americans all across Enactment of the RFS, along with gram to eliminate the current min- the political spectrum that we must act now other provisions in this bill, will em- imum oxygen standard, a ban on to end our dependence on foreign energy phasize new sources of energy produc- MTBE, and retain the existing winter- sources by addressing the nation’s long-ne- tion from biomass to wind power, as time carbon monoxide program using glected energy needs. well as conservation, to further reduce ethanol. This would require about 500 And Bruce Josten of the U.S. Cham- our dependence upon foreign sources of million gallons of ethanol annually. ber of Commerce stated: energy. As the previous speaker, my In contrast, the Daschle-Lugar-Nel- The events of September 11 lend a new ur- colleague, Senator ALLEN, pointed out, son RFS requires California refiners to gency to our efforts to increase domestic en- this 100-year-old reliance on fossil fuels use only about 250 million gallons of ergy supplies and modernize our nation’s en- and on fuels from unstable parts of the ethanol annually. ergy infrastructure. world has put us in a position of insta- Finally, the RFS provision contained The point of all this is that it has bility. So this RFS is essential in help- in the bill allows ‘‘credit training,’’ broad, bipartisan support across the ing us reverse this 100-year-old reliance which provides the option of reducing country, not just in Alaska. I also add on fossil fuels and on unstable govern- California’s ethanol use to zero, with a that this is not simply a matter of our ments. Enactment of this bill will cost of less than 2 cents per gallon. economic security our physical secu- strengthen national and energy secu- Lest anyone thinks this is somehow a rity is also at stake. rity and improve our environment at plan or decision by the States in the I challenge my colleagues to join the same time. Midwest to support their own econo- Americans in this effort. Let’s make If you will look at this poster, ac- mies to the detriment of economies America the most technologically ad- cording to a recent study conducted by elsewhere, Governor Pataki from New vanced nation in the world for new AUS Consultants, adoption of the RFS York, and Governor Shaheen of New sources of energy to propel our motor will: Hampshire, representing the Northeast vehicles and to provide clean, efficient . . . displace 1.6 billion barrels of oil over States for Coordinated Air Use Man- electricity. Let’s also make sure we are the next decade; reduce our trade deficit by agement, and other Governors belong- less dependent upon unpredictable and, $34.1 billion; it will increase new investments ing to the Governors’ Ethanol Coali- in some cases, threatening foreign in rural communities by more than $5.3 bil- tion, have also signed a joint letter sources of oil. Let’s control our own lion—and this is all domestic, all money that supporting the renewable fuels stand- will inure to the benefit of Americans. It will destiny more than we have in the past. also boost the demand for feedgrains and ards. These are Governors from all over Let’s move forward united for Amer- soybeans by more than 1.5 billion bushels the country. ica’s bright future. over the next decade; it will create more I also remind my colleagues that the Thank you Mr. President and I yield than 214,000 new jobs throughout the U.S. RFS agreement was unprecedented in the floor. economy, and it will expand household in- that it was accepted through the exten- The PRESIDING OFFICER. The come by an additional $51.7 billion over the sive and cooperative work of the eth- Chair heard a clap from the gallery. next decade. anol and biodiesel industries, their as- Those here now, or at any time in the These days, we are witnessing sub- sociations, most farm and agricultural future, if that occurs again, they will stantial increases in gasoline prices at groups, the environmental and renew- be removed by the Sergeant at Arms the pump because of disruption and able energy communities, and the under the rules of the Senate. That is turmoil in the Middle East. Gasoline American Petroleum Institute. not allowed and will not be tolerated. prices are not going up because we are All of us, each and every one of us, is The Senator from Nebraska is recog- using ethanol; they are rising because aware of how dangerously close we are nized. we are not using enough ethanol. Over to an overdependence on imported oil. the next 10 years, the renewable fuels AMENDMENT NO. 3114 As Senator ALLEN said, currently we standard in S. 517 would increase are over 56 percent dependent on for- Mr. NELSON of Nebraska. Mr. Presi- United States gasoline supplies to 5 bil- eign sources, and it will rise to over 60 dent, I ask unanimous consent to speak lion gallons per year in 2012, slightly percent in the very near future. for up to 15 minutes in conjunction less than the volume of crude oil we Too many of these supplies come with my opposition to the Feinstein currently import from Iraq. That will from troubled nations in the Middle amendment, which has been introduced come from the addition of these East, the Caspian Basin, and Indonesia on the energy bill. biofuels that will come from the renew- where almost 80 percent of the world’s The PRESIDING OFFICER. Without able fuels standard. It will be bad pub- reserves are located. objection, it is so ordered. lic policy for us to eliminate the exist- Mr. NELSON of Nebraska. Mr. Presi- ing oxygenate standard without replac- As our colleague from North Dakota, dent, this amendment and other Cali- ing it with the renewable fuels stand- Senator DORGAN, warned recently, we fornia amendments are outside the ard. That is exactly what S. 517 does. must recognize this vulnerability be- agreement and would negatively im- I congratulate California Governor cause it also extends to the potential of pact the renewable fuels standard con- Gray Davis for his support of the RFS terrorist attacks on oil supply lines. tained in the bill. While I generally re- section of S. 517. He recently declared: An attack on our oil supply lines any- spect and certainly admire my col- Let’s let the Daschle bill pass, have a nice where in the world would have us on leagues from California, who are joined schedule that will affect the entire country, our backs overnight. by my colleagues from New York in phase in ethanol and protect the environ- The RFS is critical to the process of this particular situation, I must depart ment. reducing our dependence on oil imports

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00052 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2559 through the advancement of domesti- anol blends reduce carbon monoxide an otherwise underperforming agricul- cally dispersed renewable and environ- and carbon dioxide, but most areas tural economy, thereby creating qual- mentally benign technologies that will with polluted air are worried about ity jobs, increasing farm income, and, generate new industries, high-quality ozone. in some instances, maybe providing the jobs, economic activity, and rural de- The good news is that 3 years of only farm income by adding value to velopment, while at the same time ex- clean air quality data in the Chicago/ farmers’ products and expanding local panding national and local tax bases. Milwaukee area show that it is possible tax bases. This is, in fact, a win-win for everyone to effectively reduce ozone emissions This is, in fact, sound public policy, in America. while using ethanol blends. These and we should be doing more, not less, Ethanol opponents claim that it blends also reduce air toxins, such as of it. If we are going to eliminate the takes more energy to make ethanol the carcinogen benzene. oxygen requirement that has been pro- than is contained in the fuel. This is The defeat of the renewable fuels posed, then we must be sure to put in simply not the case. The most recent standard in S. 517 would be a great loss its place the renewable fuels standard USDA report shows an increase in the to the national energy and economic in S. 517. The RFS is sound public pol- net energy balance of corn ethanol security of the United States. The real icy. The provision will increase gaso- from 1.24 in 1995 to 1.34 in 2002, and that tragedy would be a further loss to the line supplies and consequently serve to new technologies continue that im- Europeans as they advance their bio- lower gasoline prices. It will have a provement. Furthermore, only 17 per- refinery technology to produce positive impact on the Farm Belt econ- cent of the energy that goes into farm- biofuels, bioelectricity, and biochemi- omy and also reduce energy costs for ing and ethanol plant operations is cals from a wide range of biomass, in- other areas of the country. This is from liquid fuels, and with the advent cluding much of which is wasted or truly a national plan to control costs, of biodiesel and advanced farming prac- ends up in landfills. spur economic activity, and reduce our tices, this number continues to drop If there is a myth that somehow this dependence on foreign oil. and will continue to do so into the fu- is going to simply affect our food sup- I ask my colleagues to vote to pre- ture. ply by providing alternative use, it is serve the historic agreement mani- Some opponents also claim that the very clear to understand that ethanol fested in the RFS. To do otherwise will price of gasoline could double. The can be made from any kind of biomass, certainly face us in the wrong direc- issue of consumer cost is clearly im- including that which is waste, that tion, a step backwards, into deeper de- portant to all sectors of our Nation, which is garbage, that which is dis- pendence on imported oil. certainly to the Midwest as well as to carded and ends up in landfills. I thank the Chair, and I suggest the the West and the East. But histori- As technology continues to increase, absence of a quorum. cally, ethanol serves as a buffer to we will have more and more sources for The PRESIDING OFFICER. The higher prices. It does so by actually ex- a renewable resource that will come clerk will call the roll. tending supplies. It provides an alter- from those production sources that The senior assistant bill clerk pro- native to costly imported oil and lever- currently have other means of disposal. ceeded to call the roll. age for independent gasoline marketers Unfortunately, some of them are dis- Mr. NELSON of Nebraska. Mr. Presi- to compete against the larger, more posed only in landfills. dent, I ask unanimous consent that the powerful integrated oil companies. The RFS provides a credit of 1.5 for order for the quorum call be rescinded. According to the Society of Inde- biofuels made from cellulosic biomass, The PRESIDING OFFICER. Without pendent Gasoline Marketers of Amer- oilseeds, tallow, animal fat, and yellow objection, it is so ordered. Mr. NELSON of Nebraska. If I still ica: grease compared to 1 credit for ethanol made from starch and sugar crops; that have time left, I am happy to use it. The Federal benefits afforded ethanol- The PRESIDING OFFICER. The Sen- blended fuels have been an important pro- is, every gallon of these fuels is equal competitive influence on the Nation’s gaso- to 1.5 gallons in meeting the renewable ator from Nebraska is recognized. line markets. By enhancing the ability of fuels standards. In fact, it does go to Mr. NELSON of Nebraska. Mr. Presi- independent marketers to price compete other kinds of biomass. Consequently, dent, earlier today, my colleagues from with their integrated oil company competi- the RFS will provide the stimulus and California and New York quoted exten- tors, this program has increased independent the market for biofuels needed to sively from an Energy Information marketers’ economic viability and reduced produce the next generation of bio- Agency report which they said indi- consumers’ costs of gasoline. refineries. cated the RFS would result in gasoline On April 8 in Los Angeles, San Fran- In the past, it has always been the price increases from 4 cents to almost cisco, and the New York metropolitan question of how you can create the de- 10 cents per gallon. areas, the price of ethanol-blended pre- mand or whether you create the supply We have read this report, and it is mium midgrade and regular ranged and hope, in fact, it will create the de- difficult for us to understand how they from .0133 to .0327 cents per gallon. So mand. This bill with the RFS in it cre- arrived at those cost figures when our availability is not going to be a prob- ates both the demand and the oppor- reading of the report sets the increase lem and neither is price. tunity and the incentive for more sup- at prices up to 1 cent per gallon for re- Today and into the near future, eth- plies in a cost-effective and a very en- formulated gasoline and up to a half a anol will be in abundant supply be- vironmentally friendly and very eco- cent per gallon compared to the ref- cause of market conditions and all the nomic friendly manner. erenced case. This is with the reformu- new plants that will be coming online. During my two terms as Governor, I lated fuel standard without the MTBE This chart shows the past, present, watched firsthand as the private sector ban. and predicted growth of the ethanol ca- invested hundreds of millions of dollars When there is an MTBE ban, there pacity, and one can see that as it goes in new community-based ethanol would then be a greater demand for into this new century, the incline is plants. We went from one operating gasoline that would drive prices up. rather steep. Some worry about ADM’s plant to more than seven when I left, The availability of ethanol to add vol- control over the market and their abil- and there continues to be more plants ume as an additive and boost octane ity to control prices, but their influ- built around the State and a great deal would put downward pressure on ence is dissipating, being replaced by of interest in further expanding the prices, which is what has been shown farmer, rancher, and community-owned plants, depending on the passage of S. elsewhere in the country. So we are at plants. It is not concentrated within 517. a loss as to how that was arrived at. only one industry or within one pro- These investments occurred pri- There also was a suggestion there ducer. It is widely spread out over all marily in response to the demand cre- might be the possibility that ethanol- kinds of operations, from the small to ated by the Clean Air Act’s oxygenate blended gasoline could extend the ben- the medium size to the large. requirements. Not one of those plants zene plume and contaminate the To attack some other myths, there is owned by AD in Nebraska. Farmers ground water in the event of leaking are some claims that ethanol does not and ranchers own most of them. tanks or spills. contribute to cleaner air, and that is The ethanol industry in Nebraska Nebraska is the home of ethanol. It not true. There is no question that eth- has been one of the few bright spots in was first called gasohol. It has been

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00053 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2560 CONGRESSIONAL RECORD — SENATE April 11, 2002 used extensively for the past 20 years. estimated will cost the ratepayers of Administration and the GAO did not I have used it for as long as I can re- America about $88 billion through 2020. take into account the important fact call. There is absolutely no evidence of I note also that my colleagues from that 13 States have already banned the benzene-contaminated water supplies California and New York voted for a 20- use of MTBE. The fact is, any increased resulting from the use of ethanol in Ne- percent renewable electricity standard. cost at the pump would be very mini- braska, and we are not aware of any- Yet, as I heard this morning, they op- mal at most—perhaps a half cent a gal- where else where ethanol has been used pose a 3-percent renewable fuel stand- lon—if there is an increased cost. extensively or even modestly where ard. What is the difference between the This standard does not require a sin- there has been an increase in benzene. renewable fuel standard and the renew- gle gallon of renewable fuel be used in It is going to boost the octane of gas- able electricity standard? any particular State or region. The ad- oline, and I think most people looking Here is the difference. ditional flexibility provided by the at science will conclude it permits the Today, we spend about $300 million credit trading provisions will result in reduction of aromatics, including ben- per day on foreign oil imports. We are much lower cost to refiners, and thus, zene. We found that ethanol-blended nearing 60 percent of the total use of to consumers. Renewable fuels will be gasoline in Nebraska has considerably our oil coming from other nations. We used where they are most cost effec- less aromatics than unblended gaso- spend $12 million a day on Iraqi oil tive. line, and we do not understand nor do alone—we used to. We did until Sad- Others claim since renewable fuels we follow the logic or the facts that dam Hussein announced this week that are largely produced in the Midwest, have been presented. Iraq would halt its exports of oil for a this standard will require substantial I think it is important to consider month. investments in increased transpor- With Iraq capping its production, the fact we must, indeed, reduce our re- tation costs. Again, not true. Ethanol Venezuela imploding, and other pro- liance on foreign sources of oil, and we has already transported cost effec- ducers such as Iran, Libya, and Nigeria must, in fact, expand the opportunity tively from coast to coast via barge sending very troubling signals to the for renewable resources so we are not and railcar. An analysis completed in world, America must develop an ac- reliant on foreign sources of oil. When January by the Department of Energy countable, responsible, relevant, and we can do this in an environmentally concluded that no major infrastructure workable energy policy that will re- friendly way, and at the same time barriers exist to expanding the U.S. place the oil we now import with alter- ethanol industry to 5.1 billion gallons have the economics of the country ad- native fuels and renewable fuels pro- per year, which is comparable to the vanced, it seems only too sound of duced here in the United States. logic to conclude we should go the Despite the regional differences that renewable fuel standard in the energy other way. We must, in fact, move for- sometimes arise, this renewable fuel bill. I also would like to point out that it ward with the RFS. standard is good for all America. That So I call on those who would have has been highlighted by the fact that is 7,666 miles direct from Baghdad to other information to return and let us this standard has broad bipartisan sup- Los Angeles. It is 1,150 miles from Has- debate the issue on the facts as they port in the Congress. It has been en- tings, NE—home of two ethanol are. dorsed by a majority of Governors, plants—to Los Angeles. If we can I suggest the absence of a quorum. Democrat and Republican; the Bush ad- transport oil that we pay Saddam Hus- The PRESIDING OFFICER (Mr. ministration; agricultural and environ- sein for from Iraq to the United States, LEVIN). The clerk will call the roll. mental groups; and the oil and gas in- we can surely transport ethanol across The senior assistant bill clerk pro- dustry. the United States cost effectively and ceeded to call the roll. Consider that this standard would re- certainly in the best security interests Mr. HAGEL. Mr. President, I ask place 66 billion gallons—1.6 billion bar- of our country. unanimous consent that the order for rels—of foreign crude oil by 2012. It Some have claimed there are not ade- the quorum call be rescinded. would reduce the U.S. trade deficit by quate supplies of renewable fuel to The PRESIDING OFFICER. Without as much as $34 billion. meet the demand created by this stand- objection, it is so ordered. The renewable fuel standard in the ard. That is not true. One look at the Mr. HAGEL. Mr. President, I wish to energy bill we debate today would also ethanol industry shows that it has been speak on the Feinstein amendment for bring a needed boost to our economy. growing substantially in recent years. up to 15 minutes. This single provision would create It has been growing in anticipation of The PRESIDING OFFICER. The Sen- 214,000 jobs nationwide—not in the Mid- the phaseout of MTBE—particularly in ator is recognized. west but nationwide. It would create California. Mr. HAGEL. Thank you, Mr. Presi- $5.3 billion in new investment nation- According to the Renewable Fuels dent. wide. It would increase household in- Association, 16 new ethanol plants—14 Mr. President, in the wake of Sep- come by $52 billion nationwide. It of them farmer-owned cooperatives, tember 11, America and the rest of the would increase net farm income by $6.6 not big companies, which I heard this free world now face dramatic new chal- billion a year, reducing the amount morning as well, not big companies, lenges as certainly evidenced by our spent on the farm price support pro- but individuals, small farmers banding Secretary of State being in the Middle gram that we are now debating in a together, small businesspeople banding East today. There are serious con- conference committee, trying to re- together to build cooperatives—several sequences to these great challenges. solve the differences between the House of these expansions have been com- Energy independence is one of these and Senate agriculture bills. Unfortu- pleted and new ones are being built. challenges. nately, since this landmark agreement Thirteen additional plants are now cur- Today, less than 1 percent of Amer- was announced, the opponents of re- rently under construction. ica’s transportation fuel comes from newable fuels have distorted facts and A survey conducted by the California renewable sources. In the energy bill tried to undermine our bipartisan com- Energy Commission concluded that the we are debating today renewable fuel promise. ethanol industry will have the capacity would increase to approximately 3 per- My colleagues from California and to produce 3.5 billion gallons a year by cent of our total transportation fuel New York stated this morning that the the end of 2004, and that capacity could supply by 2012. renewable fuel standard would result in double by the end of 2005. With the A few weeks ago, the Senate ap- substantially higher prices at the gas standard beginning in 2004 at 2.3 billion proved the renewable portfolio stand- pump. However, they fail to mention gallons, that means there will be an ard for electricity which mandates that that the report by the Energy Informa- adequate amount of renewable fuel to 10 percent of all electricity must come tion Administration at the Department provide the additional volume needed. from certain renewable sources. I note of Energy stated that over 90 percent of Even with those assurances, we have that my colleagues from California and any increased costs would come from included in this amendment additional New York in particular voted in favor the phaseout of MTBE. safeguards. If the standard is likely to of that renewable electricity mandate They also failed to note that the re- result in significant adverse consumer which the Department of Energy has cent reports by the Energy Information impacts, then the EPA Administrator

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00054 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2561 has the authority to reduce the vol- an ethanol bill in Nebraska failed. I am the Senate. That resolution under- umes. Also, upon the petition of a not sure what his point was. But, for scored that renewable ethanol should State—any State—or by EPA’s own de- the record, and for the edification of all replace MTBE. Why? It specifically termination, the EPA may waive the who heard that, and especially my col- stated that ethanol should replace standard, in whole or in part, if it de- league, last year the Nebraska Legisla- MTBE to reduce our dependence upon termines the standard would severely ture tried to mandate that every gas foreign energy. It also stated that re- harm the economy or the environment station—every gas pump—in the State newable ethanol should replace MTBE of a State, a region, or the country. sell an ethanol blend. Now, that is a bit because MTBE was polluting drinking Even more ludicrous is this claim by different—completely different—if that water. some who say the phaseout of MTBE was the parallel attempted to be drawn Patriotic American farmers and eth- will result in a shortage of fuel sup- from this standard, this bipartisan anol producers, in direct response to plies. That is not true. Remember this standard that we have agreed to that is these two initiatives by California’s agreement calls for a 4-year phaseout currently in the present energy bill. elected officials, invested $1.4 billion of of MTBE. I yield the floor. their hard earned money to increase The large expansion of the renewable The PRESIDING OFFICER (Mrs. ethanol production by 1 billion gallons fuel industry will easily cover the loss CARNAHAN). The Senator from Iowa. a year. of MTBE, given this 4-year notice. As Mr. GRASSLEY. Madam President, I By the end of this year, when MTBE an example, in California, where polls thank the Senator from Nebraska for was supposed to be banned in Cali- show that more than 76 percent of the his leadership in opposition to this fornia, our Nation’s farmers and eth- people of California support a ban on amendment, and more importantly for anol producers will be able to produce MTBE, the fuel industry is ready to his leadership over the last several 400 to 500 million gallons more than is make the transition from MTBE to re- months in bringing together unity on necessary to replace all of California’s newable fuel. Why in the world do we this issue that is both bipartisan as MTBE. think the oil companies agreed to this well as across industry and economic The California Energy Commission standard if they thought it could not sectors. conducted a survey and concluded that be met? Madam President, there was a time by the end of 2004, U.S. ethanol produc- All six California refiners are ready when the States of New York and Cali- tion capacity will reach 3.5 billion gal- to use ethanol now, today. Both the fornia were represented by Senators lons a year. ethanol industry and the California re- who supported requiring the use of eth- The renewable fuels standard, which fining and transportation system have anol and other domestic alternative these Senators want to gut, requires only 2.3 billion gallons of ethanol to be spent billions of dollars preparing to fuels. use ethanol. In fact, there was a time, less than 3 used starting in 2004. So even by the I also keep hearing references to eth- years ago, when two of the current California Energy Commission’s admis- sion, the United States will be pro- anol as an untested fuel. Ethanol has California Senators and the senior Sen- ducing 1.2 billion gallons above and be- been used across this country success- ator from New York, voted in favor of yond what is required under the renew- fully for more than 20 years. It is hard- replacing MTBE with ethanol. able fuels standard. ly untested. But I also note that the What has changed to cause these We are awash in ethanol produced in California Environmental Protection Senators to reverse themselves? I America’s Midwest, yet 3 weeks ago, Agency completed a comprehensive frankly don’t know. the Governor of California announced But there is one thing that has analysis of ethanol’s environmental that MTBE can be used for another changed since the time New York and and health impacts, giving it a clean whole year. It doesn’t make sense. bill of health, before approving ethanol California were represented by Sen- Some elected officials would rather for use as a replacement to MTBE. ators who supported replacing foreign force their consumers to use MTBE Ethanol has helped the Chicago area fuel with domestic alternative and re- from the Middle East, instead of eth- become the only ozone nonattainment newable fuels. anol from America’s Middle West. They area in the country to come into com- Today, more than ever, our national can’t seriously be worried about motor pliance with the national ozone stand- security is at risk because of our de- fuel prices. How can increasing and di- ard. Ethanol has been tested, and it has pendence upon foreign energy. versifying your sources of energy, in- passed. And one of the reasons that Today, more than ever, the Middle crease the price of your product? Chicago has found itself in that unique East oil and MTBE producers, have us Today, California has only seven re- position is because of its use of eth- literally, over the barrel. finers, and its two largest sources for anol. More than ever. That is the biggest MTBE are foreign. In sharp contrast, President Bush has proclaimed the change since the time California and there are 61 ethanol plants in 19 States promise of renewable fuels by saying New York Senators supported replac- in the United States—two of which are recently: ing Middle East oil and MTBE with in California. Renewable fuels are gentle on the environ- home grown renewable and alternative The California Energy Commission ment, and they are made in America so they fuels. has determined that fuel without cannot be threatened by any foreign power. Yet, today, they come to the floor of oxygenates, such as MTBE or ethanol, As former President Clinton said dur- the Senate, to offer an amendment will actually be more expensive. ing his administration: which will help assure that Middle East In a recent report, the commission Ethanol production increases farm income, oil and MTBE producers maintain and explained and I quote—‘‘non- decreases deficiency payments, creates jobs increase their grip over the United oxygenated reformulated alternatives in America, and reduces American reliance States. are not necessarily easier to produce on foreign oil. Today, 75 percent of the MTBE Cali- (than ethanol RFG), would involve sig- Both Presidents Clinton and Bush are fornia uses, is produced by foreigners. nificant capacity loss, and would re- absolutely right. This renewable fuel Saudi Arabia is the largest supplier quire even more complex logistics.’’ standard is good for all of America. of California MTBE. A recent poll of Californian opinion, I, again, ask my colleagues to sup- In March of 1999, California’s Gov- conducted by the California Renewable port the renewable fuels agreement in ernor, Gray Davis, issued an executive Fuels Partnership, found that 76 per- the Senate energy bill that we debate order, stating that by the end of 2002, cent of likely voters support banning today. I do oppose any amendments all MTBE would be banned from Cali- MTBE because we can’t afford the pol- that would undermine this carefully fornia. lution caused by MTBE. Only 13 per- crafted agreement. In August of 1999, Senator BOXER of cent of those polled thought that it In conclusion, before I yield the floor, California introduced a Senate resolu- was a bad idea to ban MTBE because of I wish to respond to a comment I heard tion, calling for MTBE to be replaced potential higher gasoline prices. this morning from one of my col- by renewable ethanol. With the help of The concerns expressed by opponents leagues from New York. I believe he Senator FEINSTEIN and Senator SCHU- of the renewable fuels standard don’t mentioned something to the effect that MER, that resolution was adopted by stand up to the facts.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00055 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2562 CONGRESSIONAL RECORD — SENATE April 11, 2002 So it boils down to this: If you want produce the RFG ethanol blendstocks, see Missouri, and see what the industry to take a positive step toward helping but the lower ethanol price more than is all about. They can learn the bene- our Nation become less dependent upon makes up for the difference. Thus, re- fits of ethanol, soy diesel, biodiesel, the foreign energy and the Middle East and placing MTBE with ethanol should lead home-grown renewable fuels to the en- to encourage the development of jobs to reduced, not increased, consumer vironment and to the communities and and family income here in the United gasoline prices. our economy, particularly our rural States, then join me in defeating this In other words, it is not accurate to economy. attempt to gut the renewable fuels say that the price in Missouri will rise Come down to my State and see what standard. 5.9 cents per gallon or 4 cents per gal- the Missouri Corn Growers Association I yield the floor and suggest the ab- lon in Wyoming. has done to provide value-added oppor- sence of a quorum. My good friend and colleague from tunities for Missouri farmers. The Mis- The PRESIDING OFFICER. The New York tells me that in my home souri Corn Growers Association and clerk will call the roll. State of Missouri, gas prices as a result the Missouri Corn Merchandising Coun- The bill clerk proceeded to call the of the RFS will increase by 5.9 cents cil provided support for two groups of roll. per gallon. He went on to tell us all Missouri farmers seeking to add value Mr. BOND. Madam President, I ask that the increase is based on the un- to their corn production by processing unanimous consent that the order for availability of ethanol, the inability of corn into ethanol. In 1994, Golden Tri- the quorum call be rescinded. us to get ethanol in Missouri. angle Energy of Craig, MO, and North- The PRESIDING OFFICER. Without I want to assure the senior Senator east Missouri Grain Processors of objection, it is so ordered. from New York that we produce a lot Macon, MO, organized as new genera- Mr. BOND. Madam President, I rise of corn in Missouri, and our friends tion cooperatives. today to address the amendment intro- seem to be ignoring all of the residual The latter, known as NEMOGP, duced by my colleagues from New York economic benefits of ethanol use. broke ground for their plant on April and California to do away with the re- For example, ethanol production in- 17, 1999. I was pleased, proud, and ex- newable fuel standard. I think it is im- creases personal and business income cited to be there. It is now producing 22 portant that we correct some of the and results in a net savings to the Fed- million gallons of ethanol per year, and misunderstandings, misapprehensions, eral budget of $3.6 billion annually. they are in the process of doubling the and misstatements of fact that have Ethanol also adds over $450 million to capacity to make over 40 million gal- gone on in this debate. State tax receipts. Ethanol production lons. First, what does the bill do and what reduces the taxpayer burden for unem- Similarly, the prospects at Craig are does it not do? The fact is that S. 517 ployment benefits and farm deficiency also very promising, and other groups does not require that a single gallon of payments. of farmers are looking to build ethanol renewable fuels be used in any par- When you raise the price of corn by plants and to build soy diesel plants. ticular State or region. The additional increasing the demand, it cuts down on We are growing it, we are processing it, flexibility provided by the RFS credit the amount of payments that are made we are producing it, and we are ready trading system provisions of S. 517 will under existing farm programs to people to sell it. It is going to be good for our result in a much lower cost to refiners who raise corn. trade balance, for our farmers, for our and thus to consumers. The credit Ethanol production reduces the unfa- economy, and for the environment. I believe when one goes to a station trading system will ensure that eth- vorable U.S. trade balance in energy by that offers the E85 plan—there are 100 anol is used where it is most effective. $2 billion annually. of them nationwide: 1 in Kansas City, 2 Now, according to one of the leaders Ethanol production increases net in St. Louis, 2 in Jefferson City, MO, in the petroleum industry, farm income by $4.5 billion, adding 30 and they are expected to have more ChevronTexas: cents to the value of every bushel of around the country. One can find out corn. The free market will not allow a California about the closest station by checking Ethanol reduces the consumer cost of price differential of 20–30 cents a gallon to be the Web site of the National Ethanol sustained. The market will always find a gasoline by extending supplies, pro- Vehicle Coalition. One will find one way to take advantage of a much smaller dif- viding an alternative to more costly can get good cleaner burning ethanol ferential. imported oil, and leverage for inde- Furthermore, a nationwide Federal blended gasoline, and it is available. pendent gasoline marketers to compete Before we decide we are going to MTBE ban provides certainty for in- against the larger, more powerful, inte- back off from this very wise, multiple- vestments and eliminates the greater grated oil companies. benefit usage of renewable fuels, come use of boutique fuels, thereby lowering A recent study found that doubling see in the heartland what a positive gasoline prices. The continuation of ethanol production would create nearly deal this is and come see why we in current policy whereby States may ban 50,000 new jobs, $1.9 billion in economic Missouri—I assume my neighbors in MTBE without any regard to regional development, and increase household States around us—are proud to be coordination is more costly than a uni- incomes by $2.5 billion. using E85 ethanol and B20 soy diesel. form Federal ban. Some may say: Isn’t the ethanol pro- I yield the floor. I urge my colleagues Increasing the use of renewable fuels, gram just corporate welfare? The sim- not to support the amendment. I sug- such as ethanol and biodiesel, diversi- ple answer is no. The ethanol tax credit gest the absence of a quorum. fies our energy infrastructure, making is provided to gasoline marketers and The PRESIDING OFFICER (Mr. NEL- it less vulnerable to acts of terrorism oil companies, not ethanol producers, SON of Nebraska). The clerk will call and increases the number of available as an incentive to blend their gasoline the roll. fuel options, increasing competition, with clean, domestic, renewable eth- The assistant legislative clerk pro- and reducing consumer costs of gaso- anol. ceeded to call the roll. line. It is a cost-effective program that ac- Mrs. CARNAHAN. Mr. President, I A review of the publicly available tually returns more revenue to the ask unanimous consent that the order price information demonstrates that U.S. Treasury than it costs due to the for the quorum call be rescinded. ethanol has been consistently less ex- increased wages, taxes, reduced unem- The PRESIDING OFFICER. Without pensive per gallon in net cost to refin- ployment benefits and, most impor- objection, it is so ordered. ers than MTBE for the last 3 years. In tantly, reduced farm deficiency pay- Mrs. CARNAHAN. Mr. President, I fact, the March 4 issue of Octane Week ments, while at the same time holding rise today to add my voice to those quotes MTBE at 89 cents per gallon and down the price of gasoline and helping who support the ethanol provisions in ethanol at just 60 cents per gallon. In- the American farmer. this legislation. Ethanol is one of our stead of higher prices, ethanol would In summary, I encourage those who most promising renewable resources. lower pump prices. While this is unde- support the amendment against the re- By blending ethanol with gasoline, we niably true in conventional gasoline, it newable fuels standard to come out to can reduce oil imports and reduce the is also true in RFG areas. Refiners do the heartland where the occupant of environmental damage of vehicle emis- incur a small cost per gallon to the chair and I live to see Nebraska, to sions.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00056 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2563 As America struggles to meet its did, a curious thing happened: The De- safety problems on routes that are growing energy needs, ethanol provides partment of Energy held up shipments likely to be used for cross-country extraordinary opportunities. The prod- from a reactor inside Missouri. This re- shipments of spent nuclear fuel, we uct is made from corn. It can be pro- actor produced isotopes used in cancer ought to address them in the highway duced in abundance, unlike other fossil treatment. If these shipments did not bill. We need to start the study now, fuels. go forward as scheduled, the reactor however, if we want to have the infor- The more ethanol we use to fuel our would have to be closed, halting pro- mation in time for a debate on the cars and trucks, the less oil we need to duction of needed medicines for bone highway bill. import from hostile countries such as cancer patients. This amendment is not intended to Iraq. Rather than looking to the Mid- I insisted these two matters—the take sides on the controversial issue east for energy, we would be far better shipments from the reactor in Missouri that will soon be before this Senate. Its served to look to the Midwest. and the transport of spent nuclear fuel purpose is to get a neutral, nonpartisan This legislation lays out a plan for through the State—be delinked, and review of an important public safety increasing the amount of ethanol they were. function that has received very little Americans use to meet their transpor- Eventually, Governor Holden worked scrutiny. tation fuel needs. out a safety protocol with the Depart- I yield the floor. I find it absurd that some claim these ment and the foreign spent fuel ship- I suggest the absence of a quorum. provisions are included in this bill sim- ment went forward. Although the ship- The PRESIDING OFFICER. The ply for the benefit of ethanol pro- ment was completed, we encountered clerk will call the roll. ducers. Ethanol is an environmentally some problems with the timing of its The legislative clerk proceeded to safe and economically efficient way to passage through Missouri. call the roll. reduce our dependence on foreign Our experience in Missouri over the Mr. REID. Mr. President, I ask unan- sources of oil. past 2 years suggests the Department imous consent that the order for the In short, additional use of ethanol to of Energy’s route selection process de- quorum call be rescinded. meet our needs for transportation fuel serves careful study. How we deal with The PRESIDING OFFICER. Without will be good for our environment, good spent nuclear fuel in this country may objection, it is so ordered. for our economy, and good for our na- be a matter of great controversy, but AMENDMENT NO. 3094, AS MODIFIED tional security interests. Not only do I regardless of one’s position on this Mr. REID. Mr. President, I ask the support the renewable fuels standard topic, everyone ought to be able to pending business be an amendment of- we are debating today, I look forward agree that when spent fuel has to be fered yesterday by Senator DURBIN. to supporting an amendment that will transported we want it to be done in The PRESIDING OFFICER. Without be offered by the Finance Committee. the safest possible way. objection, it is so ordered. That amendment incorporates several One of the key components in ensur- Mr. REID. I send a modification to aspects of legislation that I introduced ing safe transport of spent fuel is the the desk on behalf of Senator DURBIN. last year. process for selecting the safest route. The PRESIDING OFFICER. Without Specifically, it will expand eligibility My amendment would commission the objection, it is so ordered. for the tax credit available to small National Academy of Sciences study of The amendment will be so modified. producers of ethanol. These changes the Department of Energy’s route se- The amendment (No. 3094), as modi- will ensure that farmer-owned coopera- lection process for shipments of spent fied, is as follows: tives are eligible to receive a tax cred- nuclear fuel. The National Academy (Purpose: To establish a Consumer Energy it. It will also encourage small pro- would examine the way DOE picks po- Commission to assess and provide rec- ducers to expand the size of their oper- ommendations regarding energy price tential routes, the factors it uses to spikes from the perspective of consumers) ation to meet increased demand. These evaluate the safety of these routes, in- changes will help us meet the demand At the appropriate place in title XVII, in- cluding traffic and accident data, the sert: for ethanol envisioned by the bill. quality of roads and the proximity to Ethanol is truly a win-win solution SEC. 1704. CONSUMER ENERGY COMMISSION. population centers and venues where (a) ESTABLISHMENT OF COMMISSION.—There to our energy needs. The increased use people congregate, and the process it is established a commission to be known as required by this legislation represents uses to compare the risks associated the ‘‘Consumer Energy Commission’’. a positive step, one for our farmers, for with each route. (b) MEMBERSHIP.— our environment, and for our energy There are a number of reasons why it (1) IN GENERAL.—The Commission shall be independence. I support the com- makes sense to commission this study comprised of 11 members who shall be ap- promise in this bill that will lead to in- now. First, the responsibility for this pointed within 30 days from the date of en- actment of this section and who shall serve creased uses of ethanol, and I urge my program is divided among multiple colleagues to support it as well. The re- for the life of the commission. agencies. The Department of Transpor- (2) APPOINTMENTS IN THE SENATE AND THE newable fuels standard included in this tation sets the regulations for trans- HOUSE.—The majority leader and the minor- bill is an important part of a balanced portation of spent nuclear fuel. The ity leader of the Senate and the Speaker and energy policy that we need. Nuclear Regulatory Commission has minority leader of the House of Representa- TRANSPORT OF SPENT NUCLEAR FUEL oversight responsibility and the De- tives shall each appoint 2 members— Mr. President, on a separate topic, I partment of Energy makes the final de- (A) 1 of whom shall represent consumer would like to discuss an amendment I groups focusing on energy issues; and cision in consultation with these orga- (B) 1 of whom shall represent the energy will be offering next week. Two years nizations. industry. ago, the Department of Energy pro- A study will help ensure these agen- (3) APPOINTMENTS BY THE PRESIDENT.—The posed to send a shipment of foreign cies are working together and are prop- President shall appoint 3 members— spent nuclear fuel through Missouri. erly performing their function. (A) 1 of whom shall represent consumer The route selected went through the Secondly, these agencies are using groups focusing on energy issues; heavily populated areas of St. Louis, regulations drafted in the 1990s. The (B) 1 of whom shall represent the energy industry; and Columbia, and Kansas City, along a devastating events of September 11 (C) 1 of whom shall represent the Depart- major highway, Interstate 70, that was have taught us we have to rethink all ment of Energy. undergoing major repairs. Governor of our security procedures, and while I (c) INITIAL MEETING.—Not later than 60 Carnahan intervened, and an alternate, understand the Nuclear Regulatory days after the date of enactment of the Act, more rural route was selected. The Commission has issued some additional the Commission shall hold the first meeting shipment was completed without inci- guidelines since that date, I believe a of the Commission regardless of the number dent. complete review is in order and an NSA of members that have been appointed and Then last year, Missouri was asked study will help us ensure that our shall select a Chairperson and Vice Chair- person from among the members of the Com- to accept another shipment through agencies are focused on the appropriate mission. the State. Governor Holden raised the safety factors. (d) ADMINISTRATIVE EXPENSES.—Members same objections that had been dis- Finally, Congress will be considering of the Commission shall serve without com- cussed the year earlier. And after he a highway bill next year. If there are pensation, except for a per diem and travel

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00057 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2564 CONGRESSIONAL RECORD — SENATE April 11, 2002 expenses which shall be reimbursed, and the The House has passed a bill. It is my so we can move on to other issues. We Department of Energy shall pay expenses as hope that we can pass the border secu- are pressing Senator DASCHLE to take necessary to carry out this section, with the rity bill as well. The House has passed up other issues, including this border expenses not to exceed $400,000. (e) STUDY.—The Commission shall conduct two different versions of border secu- security and the 245(i) immigration a nationwide study of significant price rity, one involving the so-called 245(i) issue and the trade legislation—other spikes since 1990 in major United States con- provisions, and one without those pro- issues. sumer energy products, including electricity, visions included. What we are doing By doing it this way, we can dispose gasoline, home heating oil, natural gas and this afternoon would be to take up a of a bill that is needed. Border security propane with a focus on their causes includ- bill that does not include 245(i), but I needs to be dealt with. It has bipar- ing insufficient inventories, supply disrup- have indicated publicly, and indicated tisan support. The administration sup- tions, refinery capacity limits, insufficient infrastructure, regulatory failures, demand to Senator LOTT and to my colleagues, ports it. We can do that by taking it up growth, reliance on imported supplies, insuf- that it is my desire to bring up the tomorrow, being on it Monday, and I ficient availability of alternative energy 245(i) provisions. hope we can be done with it sometime sources, abuse of market power, market con- I know there is opposition—I am told early on Tuesday, and then go back to centration and any other relevant factors. on both sides of the aisle. But we must ANWR. (f) REPORT.—Not later than 180 days after address the issue. It is an important I have checked this out with the the date of the first meeting of the Commis- issue. It is one that should be resolved. sponsors of the border security bill and sions, the Commission shall submit to Con- gress a report that contains the findings and It is one on which the Senate has acted with Senator MURKOWSKI and it seems conclusions of the Commission; and rec- on several other occasions. So there this is agreeable to all parties and this ommendations for legislation, administra- will come a time when we will do that. is the way we can get some work done tive actions, and voluntary actions by indus- But in order to at least pass those while we work out the process on the try and consumers to protect consumers and pieces of border security that we all other amendments. small businesses from future price spikes in agree on, I will ask unanimous consent I yield the floor. consumer energy products. the Judiciary Committee be discharged Mr. DASCHLE. Mr. President, I (g) CONSULTATION.—The Commission shall thank my colleagues for their coopera- consult with the Federal Trade Commission, from further consideration of H.R. 3525, the Federal Energy Regulatory Commission, the border security bill, and that the tion in the effort to move this legisla- the Department of Energy and other Federal Senate proceed to its consideration on tion along. As I say, my choice would and State agencies as appropriate. Friday, April 12, at 11:30, and that no have been to have completed our work (h) SUNSET.—The Commission shall termi- call for the regular order serve to re- on ANWR already. We have now been nate within 30 days after the submission of place the bill; and that, upon resump- on the bill about a month. We have the report to Congress. tion of the energy bill, S. 557, Senator been on it 20 legislative days, but over Mr. REID. I ask unanimous consent MURKOWSKI be recognized to offer his a month of calendar days. that the Senate vote on or in relation ANWR amendment. There is no reason why we should to this amendment at 3:45, with the The PRESIDING OFFICER. Is there continue to wait for an amendment time prior to that time equally divided, objection? that I thought might have been the and there be no amendments in order Without objection, it is so ordered. first out of the box. prior to that time. Mr. LOTT. Mr. President, if Senator Having said that, I urge my col- The PRESIDING OFFICER. Without DASCHLE will yield, I did not object be- leagues to come down to the floor. We objection, it is so ordered. cause I think, all things considered, are about to have a vote on the Durbin Mr. REID. I suggest the absence of a this is a good way to proceed at this amendment. There are other amend- quorum. time. ments pending on which we can have The PRESIDING OFFICER. The I, too, would prefer we go ahead and votes. And there are other amendments clerk will call the roll. The legislative clerk proceeded to begin consideration of the ANWR to be offered that we should have votes call the roll. amendment with regard to oil explo- on as quickly as possible. Mr. BINGAMAN. Mr. President, I ask ration in that area of Alaska. But we I ask my colleagues to offer amend- unanimous consent the order for the have other amendments that are pend- ments this afternoon. The floor is open quorum call be dispensed with. ing. Work has continued to be done on for additional business. This does not The PRESIDING OFFICER. Without those issues this afternoon and per- preclude additional amendment consid- objection, it is so ordered. haps, I assume, some in the morning, eration this afternoon. Mr. BINGAMAN. I yield the floor to even while a process is worked out as I yield the floor. the majority leader. to exactly how to proceed with the The PRESIDING OFFICER. The Sen- UNANIMOUS CONSENT AGREEMENT—H.R. 3525 AND ANWR amendment. ator from New Mexico. ANWR One of the problems I understand—it Mr. BINGAMAN. Mr. President, let Mr. DASCHLE. Mr. President, I am is a legitimate one—is that the amend- me underscore what the majority lead- waiting to propound a unanimous con- ment Senator MURKOWSKI would like to er has said, and also the Republican sent request having to do with border offer has some provisions that need to leader, and indicate that I also believe security. I will not do that, of course, have some scoring done. I think that is we can complete action on this energy until the Republican leader returns. legitimate. They want to know what it bill fairly quickly once we come back My preference, as I said before on might cost. I think Members are enti- to it and once we have the ANWR-re- several occasions, and Senator LOTT tled to know that. I presume he could lated amendment offered by Senator has said, is that we take up the ANWR have offered the amendment and had MURKOWSKI and the other proponents amendment. We have even said we are the scoring done over the weekend, but of that amendment. prepared to offer it ourselves in order I think both sides were a little bit hesi- I regret that we are not able to begin to move this process along. I am told tant to have it offered and just have it dealing with that today. But we are the sponsors of the amendment still kind of hanging out there, not knowing not. Therefore, I support the majority are not prepared to offer this amend- what the final form would be—whether, leader’s decision to move to this other ment. So I have no choice, under these if it would be modified, we would get legislation beginning tomorrow. circumstances, as much as I would like into a fuss over second-degree amend- AMENDMENT NO. 3094 very much to be on it right now, but to ments. So I think this is a good way to Let me say a few words about the postpone consideration of the ANWR go. Hopefully, we will be ready to go Durbin amendment. The Durbin amendment and to make the most of back to this on Tuesday, deal with the amendment was offered yesterday. It what time we have available to us. ANWR provisions, deal with the tax would establish the Consumer Energy I have consulted with the distin- provisions, and finish the amendments Commission. It provides for an 11-mem- guished Republican leader. I know the we have remaining. I still think it is ber Commission which would have the administration believes, as we do, to absolutely essential for our country job of doing a 180-day study of a vari- move the border security legislation that we get an energy bill. ety of issues related to the generation along is something in everyone’s inter- I understand there is a need to com- of electricity in our country and the est. plete our work next week on that issue potential failures of the system.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00058 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2565 I think it is a good amendment. I trucking companies, delivery services, by Senator FEINSTEIN, and that the think it is one which has the prospect we find a lot of sacrifices are being time until 4:35 p.m.—for the next 20 of improving our understanding of this made. minutes—be equally divided in the issue. I do not know that this Commission usual form, and at 4:35 the Senate vote This board is to be concluded after is going to come up with the direct an- on or in relation to the amendment, 180 days and report back to the Con- swer to it, but what is wrong with in- with no second-degree amendments in gress within 30 days. At the end of the viting the consumers of America into order prior to the vote. 180 days, the group goes out of exist- this conversation? What is wrong with Mrs. BOXER. Mr. President, reserv- ence 30 days later. asking families and small businesses to ing the right to object. I don’t think there should be any sub- join us in this effort? The PRESIDING OFFICER. The Sen- stantial objection to this. To my mind, That is why I hope we can bring all ator from Alaska. it is a meritorious amendment. I said the stakeholders to the table. That is Mr. MURKOWSKI. Mr. President, re- yesterday that I thought it should be why I think we need to give consumers serving the right to object, I believe approved. I certainly believe that. and small business a voice. I hope my there is objection on this side. I am I yield the floor. colleagues in the Senate will join me in happy to check on that and respond. The PRESIDING OFFICER. The Sen- strong support of this amendment cre- Mr. REID. Mr. President, I move to ator from Illinois. ating a Consumer Energy Commission. table the amendment and ask for the Mr. DURBIN. Mr. President, it is my I yield the floor. yeas and nays. The PRESIDING OFFICER. Is there a understanding that in a moment we Mr. REID. Mr. President, I ask for sufficient second? will vote on my amendment. I cer- the yeas and nays. tainly thank the chairman, Senator There is a sufficient second. The PRESIDING OFFICER. Is there a The yeas and nays were ordered. BINGAMAN, for his kind words of sup- sufficient second? Mr. JOHNSON. Mr. President, I rise port. A number of my colleagues are There is a sufficient second. in opposition to the Feinstein amend- cosponsors of this amendment to cre- The question is on agreeing to the ment on the renewable fuels standard. ate a Consumer Energy Commission: amendment. The clerk will call the The Senate energy bill contains a Senator SMITH, Senator SCHUMER, Sen- roll. landmark renewable fuels standard ator JEFFORDS, and Senator STABENOW. Mr. NICKLES. I announce that the that is an essential part of a sound na- In this bill involving energy policy in Senator from Texas (Mr. GRAMM) is tional energy policy. The bill provides America, there are many worthwhile necessarily absent. for an orderly phase-down of MTBE issues to be considered. But I think The PRESIDING OFFICER (Mr. use, removal of the oxygen content re- there is one position that needs to be JOHNSON). Are there any other Sen- quirement for reformulated gasoline filled with this amendment. It is time ators in the Chamber desiring to vote? (RFG) and the establishment of a na- for us to invite consumers from across The result was announced—yeas 69, tionwide renewable fuels standard— America to be part of this conversation nays 30, as follows: RFS—that will be phased in over the about America’s energy future—the [Rollcall Vote No. 66 Leg.] next decade. The standard has strong families who have to pay the heating YEAS—69 bipartisan support and is the result of bills, the hard-working people who Akaka Domenici Lincoln long and comprehensive negotiations have to pay for gasoline to get back Allard Dorgan McCain between farm groups, the American Pe- and forth to work, the individuals and Allen Durbin Mikulski troleum Institute, and coastal and Mid- small businesses that may find because Baucus Edwards Miller Bayh Feingold Murray western states. It is the first time that of price hikes they cannot keep their Biden Feinstein Nelson (FL) a substantive agreement has been employees on the job, the farmers who Bingaman Graham Nelson (NE) reached on an issue that will reduce are worried about aspects of energy Boxer Grassley Reed our dependency on foreign oil and price fluctuations and what that means Breaux Gregg Reid Byrd Harkin Rockefeller greatly improve the nation’s energy se- to their lives. Cantwell Hatch Sarbanes curity. aa This Commission is a short-term ef- Carnahan Hollings Schumer Moreover, the renewable fuels stand- fort of limited duration and limited ex- Carper Hutchison Sessions ard in S. 517 provides a nationwide, Chafee Inouye Smith (OR) pense to try to invite that conversa- Cleland Jeffords Snowe cost-effective solution to address the tion so the consumers, small busi- Clinton Johnson Specter concerns over MTBE use. Although in- nesses, and family farmers will be part Collins Kennedy Stabenow dividual states are banning or consid- of our national strategy for energy se- Conrad Kerry Thompson Corzine Kohl Torricelli ering banning MTBE, the states are curity. We do not believe that the Daschle Landrieu Voinovich still left with meeting the federal oxy- GAO, as good as it is, can really speak Dayton Leahy Warner genate standard for reformulated gaso- from that human and real perspective. DeWine Levin Wellstone line. The provisions of S. 517 address Dodd Lieberman Wyden They cannot provide the kind of study both of these issues in a balanced man- of which we are asking. The GAO and NAYS—30 ner and do so without mandating indi- the IEA have provided plenty of studies Bennett Enzi McConnell vidual states to meet specific levels of and data on a variety of energy issues. Bond Fitzgerald Murkowski renewable fuels production or use. Brownback Frist Nickles However, they haven’t brought the Bunning Hagel Roberts I have spoken in the past about the analysis, industry, and consumer Burns Helms Santorum benefits of renewable fuels. These groups together to consider particu- Campbell Hutchinson Shelby home-grown fuels will improve our en- larly the problem of price spikes. Cochran Inhofe Smith (NH) ergy security and provide a direct ben- Craig Kyl Stevens I have a chart that shows gasoline re- Crapo Lott Thomas efit for the agricultural economy of tail prices. You can see why a lot of Ensign Lugar Thurmond South Dakota and other rural states. people in the Midwest, for example, NOT VOTING—1 The new standard is largely based on call me and call the President from legislation that I introduced with Sen- Gramm time to time to ask: What is going on ator CHUCK HAGEL. The leadership of at the gasoline station? Today it is The amendment (No. 3094), as modi- Senators DASCHLE and BINGAMAN re- $1.30 a gallon and the next day it is $2 fied, was agreed to. sulted in the consensus legislation on a gallon. Why would that happen? Has Mr. REID. Mr. President, I move to this issue. war broken out in the Middle East? No. reconsider the vote and I move to lay The consensus package would ensure It is just the Easter surprise that you that motion on the table. future growth for ethanol and biodiesel have every year in the Midwest. Gaso- The motion to lay on the table was through the creation of a new, renew- line prices have gone out of control. agreed to. able fuels content standard in all For months at a time, families find AMENDMENT NO. 3114 motor fuel produced and used in the they are spending extraordinary Mr. REID. Mr. President, I ask unan- U.S. Today, ethanol and biodiesel com- amounts for gasoline. Businesses cut imous consent that the Senate now prise less than one percent of all trans- back on their employees. Whether it is proceed to amendment No. 3114, offered portation fuel in the U.S—1.8 billion

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00059 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2566 CONGRESSIONAL RECORD — SENATE April 11, 2002 gallons is currently produced in the gallon for reformulated gasoline and up Mr. SCHUMER. I withdraw my objec- US. The consensus package would re- to .5 cents a gallon for all gasoline. tion. quire that 5 billions gallons of trans- However, the report failed to account The PRESIDING OFFICER. Does the portation fuel be comprised of renew- for the provisions of the legislation Senator so modify his request? able fuel by 2012 nearly a tripling of the that allow for credit banking and trad- Mr. REID. Yes. current ethanol production. ing, which would lower any increase in The PRESIDING OFFICER. Is there I do not need to convince anyone in prices. objection? South Dakota and other rural states of The GAO report only evaluated a Mr. CRAIG. I object. the benefits of ethanol to the environ- California ban on MTBE but assumed AMENDMENT NO. 3114 ment and the economies of rural com- the continuation of the federal oxygen- The PRESIDING OFFICER. The munities. We have many plants in ate standard. Because S. 517 eliminates question is on agreeing to the motion South Dakota and more are being the oxygen standard, the high costs in to lay on the table amendment No. planned. These farmer-owned ethanol the GAO report are exaggerated. The 3114. The yeas and nays have been or- plants in South Dakota, and in neigh- American Petroleum Institute analysis dered. The clerk will call the roll. boring states, demonstrate the hard of the effect of the RFS on gasoline The assistant legislative clerk called work and commitment being expended costs, including the trading program the roll. to serve a growing market for clean do- and the elimination of the oxygenate Mr. REID. I announce that the Sen- mestic fuels. standard, indicates that there are al- ator from Georgia (Mr. MILLER) is nec- Today, 3 ethanol plants—Broins in most no additional costs. essarily absent. Scotland and Heartland Grain Fuels in The renewable fuels standard in S. Mr. NICKLES. I announce that the Aberdeen and Huron—produce nearly 30 517 addresses the difficulties that Senator from Texas (Mr. GRAMM) and million gallons per year. With the en- states have encountered in meeting the the Senator from New Hampshire (Mr. actment of the renewable fuels stand- makeup of federal gasoline standards, GREGG) are necessarily absent. ard, the production in South Dakota while promoting the use of home-grown The PRESIDING OFFICER (Mr. DAY- and other states could grow substan- fuels that will reduce the nation’s de- TON). Are there any other Senators in tially, with at least 2000 farmers own- pendency on foreign oil. Any attempts the Chamber desiring to vote? ing ethanol plants and producing 200 to reduce or eliminate the standard The result was announced—yeas 61, million gallons of ethanol per year or should be opposed so that we can move nays 36, as follows: more. forward and improve the nation’s en- [Rollcall Vote No. 67 Leg.] I understand the concerns raised by ergy security. YEAS—61 the senators from California and New Mr. REID. Mr. President, I suggest York. This is a major a major change Akaka Durbin Lincoln the absence of a quorum. Baucus Edwards Lott in the makeup of our transportation The PRESIDING OFFICER. The Bayh Ensign Lugar fuel. The goal of the agreement that clerk will call the roll. Bingaman Feingold McConnell has been reached on this title is to Bond Fitzgerald Mikulski The legislative clerk proceeded to Breaux Frist phase in the renewable fuels standard Murkowski call the roll. Brownback Graham Nelson (FL) in a manner that is fair to every region Mr. REID. Mr. President, I ask unan- Bunning Grassley Nelson (NE) Burns Hagel of the country. It also bans MTBE and imous consent that the order for the Reid Byrd Harkin Roberts eliminates the oxygenate standard, two quorum call be rescinded. Carnahan Hatch changes that Californians have sought The PRESIDING OFFICER. Without Carper Helms Rockefeller for years. The goal of this agreement is Chafee Hollings Sarbanes objection, it is so ordered. Smith (NH) not to raise gas prices, but to diversify The question is on agreeing to the Cleland Hutchinson Cochran Inhofe Stabenow our energy infrastructure and increase motion to table. Conrad Jeffords Stevens the number of fuel options. This helps Mr. REID. Mr. President, I have a Craig Johnson Thomas to increase our energy security, in- unanimous consent request. Well, I Crapo Kerry Thurmond Daschle Landrieu Voinovich crease competition and reduce con- suggest the absence of a quorum. Dayton Levin Wellstone sumer costs of gasoline. The PRESIDING OFFICER. The Dorgan Lieberman The new standard does not require clerk will call the roll. NAYS—36 that a single gallon of renewable fuel The legislative clerk proceeded to must be used in any particular state or Allard Domenici Reed call the roll. Allen Enzi Santorum region. Moreover, the language in- Mr. REID. Mr. President, I ask unan- Bennett Feinstein Schumer cludes credit trading provisions that imous consent that the order for the Biden Hutchison Sessions gives refiners flexibility to meet the quorum call be rescinded. Boxer Inouye Shelby Campbell Kennedy Smith (OR) standard’s requirements. In no way is The PRESIDING OFFICER. Without Cantwell Kohl Snowe this intended to penalize California, objection, it is so ordered. Clinton Kyl Specter New York or any other region in the The question is on agreeing to the Collins Leahy Thompson country. motion to table amendment No. 3114. Corzine McCain Torricelli DeWine Murray Warner In addition, there are allegations of The clerk will call the roll. Dodd Nickles Wyden huge price increases at the pump The Senator from Nevada. should the standard be enacted. This Mr. REID. Mr. President, I ask unan- NOT VOTING—3 concern is unfounded and the analysis imous consent that the previous order Gramm Gregg Miller that the figures are based upon is be amended to allow 15 minutes for the The motion was agreed to. flawed. Two recent reports by the En- parties to debate and, as indicated, the Mr. REID. Mr. President, I move to ergy Information Administration— vote occur at 4:35 p.m; that the Senate reconsider the vote. EIA—and the General Accounting Of- resume consideration of amendment Mr. BINGAMAN. I move to lay that fice—GAO—have raised some concerns No. 3114, and the time before 4:35 p.m. motion on the table. about higher gasoline costs as well sup- be controlled equally and in the usual The motion to lay on the table was ply implications of the renewable fuels form; and that at 4:35 p.m. the Senate agreed to. standard. These reports failed to take vote on or in relation to the amend- Mr. REID. Mr. President, the major- into account several factors, resulting ment, with no second-degree amend- ity leader has authorized me to an- in conclusions that are incomplete. ment prior to that vote. nounce there will be no more rollcall The EIA report notes that 90 percent The PRESIDING OFFICER. Is there votes tonight. As per the agreement we of the costs associated with the provi- objection? made earlier this afternoon, there will sions of the bill are because of the ban The Senator from New York. be no rollcall votes tomorrow. There on MTBE, not the inclusion of the re- Mr. SCHUMER. Mr. President, I will be rollcall votes on Monday, for newable fuels standard. The report also thought we were going to be given 20 the information of all Senators. states that the RFS without the MTBE minutes, 10 on each side. This has been a difficult week, but we ban would raise prices up to one cent a Mr. REID. That will be fine. have made significant progress. We

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00060 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2567 have completed election reform. We SEC. 17lll. STUDY OF NATURAL GAS AND Bicycling pilot program that shall provide have gotten permission to move to the OTHER ENERGY TRANSMISSION IN- for up to 10 geographically dispersed projects FRASTRUCTURE ACROSS THE GREAT port security bill which we will start to encourage the use of bicycles in place of LAKES. motor vehicles. Such projects shall use edu- debating tomorrow. Senator BINGAMAN (a) DEFINITIONS.—In this section: cation and marketing to convert motor vehi- (1) GREAT LAKE.—The term ‘‘Great Lake’’ and Senator MURKOWSKI have slogged cle trips to bike trips, document project re- means Lake Erie, Lake Huron (including their way through this amendment sults and energy savings, and facilitate part- Lake Saint Clair), Lake Michigan, Lake On- process. I think we have made signifi- nerships among entities in the fields of tario (including the Saint Lawrence River cant progress on the list of amend- transportation, law enforcement, education, from Lake Ontario to the 45th parallel of public health, environment, or energy. At ments we have. Although we have not latitude), and Lake Superior. least 20 percent of the cost of each project gotten unanimous consent to agree to (2) SECRETARY.—The term ‘‘Secretary’’ shall be provided from State or local sources. a finite list, each side has worked on means the Secretary of Energy. Not later than 2 years after implementation amendments. We had a period when (b) STUDY.— of the projects, the Secretary of Transpor- (1) IN GENERAL.—The Secretary, in con- there were about 250 amendments. We tation shall submit a report to Congress on are down now to probably 40 or so. Not sultation with representatives of appropriate Federal and State agencies, shall— the results of the pilot program. all of those could be referred to as seri- (b) NATIONAL ACADEMY STUDY.—The Sec- (A) conduct a study of— retary of Transportation shall contract with ous amendments. There is still a long (i) the location and extent of anticipated the National Academy of Sciences to con- way to go. growth of natural gas and other energy duct a study on the feasibility and benefits The amendment agreement entered transmission infrastructure proposed to be of converting motor vehicle trips to bicycle into by the two leaders earlier today constructed across the Great Lakes; and trips and to issue a report, not later than (ii) the environmental impacts of any nat- indicates we are going to finish the two years after enactment of this Act, on the ural gas or other energy transmission infra- border security legislation, hopefully, findings of such study. structure proposed to be constructed across by Tuesday. At that time, the Senator (c) AUTHORIZATION OF APPROPRIATIONS.— the Great Lakes; and from Alaska will offer his amendment There is authorized to be appropriated to the (B) make recommendations for minimizing Secretary of Transportation $5,500,000, to re- on ANWR. We are not going to take up the environmental impact of pipelines and main available until expended, to carry out the energy bill until the ANWR amend- other energy transmission infrastructure on the pilot program and study pursuant to this ment is ready. When that is done, we the Great Lakes ecosystem. section. will take it up. (2) ADVISORY COMMITTEE.—Not later than 30 It is my understanding in speaking days after the date of enactment of this Act, Mr. LEVIN. Mr. President, the recent with the Senator from Alaska, and sev- the Secretary shall enter into an agreement debate shows the challenges our coun- eral others, and also the Republican with the National Academy of Sciences to try faces in balancing environmental leader that they are very close to hav- establish an advisory committee to ensure protection with our Nation’s energy se- that the study is complete, objective, and of ing an amendment which they feel curity. Containing nearly 95 percent of good quality. our countries surface fresh water, the good about and will offer. I hope that (c) REPORT.—Not later than 1 year after can be finalized by Tuesday. the date of enactment of this Act, the Sec- Great Lakes are a natural treasure which we must work to protect. Today AMENDMENTS NOS. 3119, 3120, 3121, 3122, AND 3123 retary shall submit to Congress a report that EN BLOC describes the findings and recommendations I offered an amendment which would resulting from the study under subsection request that the Secretary of Energy, Mr. BINGAMAN. Mr. President, I (b). send a series of amendments to the in consultation with representatives of the appropriate Federal and State desk and ask for their immediate con- AMENDMENT NO. 3121 agencies and the National Academy of sideration en bloc. (Purpose: To promote the demonstration of Science, conduct a study of the trans- The PRESIDING OFFICER. The certain high temperature superconducting mission of natural gas and electricity clerk will report. technologies) across the Great Lakes and report back The legislative clerk read as follows: On page 408, line 8, strike ‘‘technologies.’’ and insert ‘‘technologies; and to Congress within 365 days regarding The Senator from New Mexico [Mr. BINGA- ‘‘(3) the use of high temperature super- the impacts of such lines and rec- MAN] proposes amendments numbered 3119, conducting technology in projects to dem- ommendations for minimizing their en- 3120, 3121, 3122, and 3123 en bloc. onstrate the development of superconductors Mr. BINGAMAN. Mr. President, I ask vironmental impact. that enhance the reliability, operational As the cleanest fossil fuel, natural unanimous consent that reading of the flexibility, or power-carrying capability of gas will play an increasingly important amendments be dispensed with. electric transmission systems or increase the The PRESIDING OFFICER. Without electrical or operational efficiency of elec- role in addressing our nations energy objection, it is so ordered. tric energy generation, transmission, dis- demands. Even today, natural gas con- tribution and storage systems.’’ sumption is forecasted to increase at The amendments are as follows: over 2 percent per year. However, the AMENDMENT NO. 3119 AMENDMENT NO. 3122 infrastructure for transporting natural (Purpose: To ensure the safety of the (Purpose: To authorize a study of the way in gas is already strained. nation’s mines and mine workers) which energy efficiency standards are de- To address this problem, a number of termined) On page 564, after line 2, insert the fol- companies have applied for permits to lowing: On page 301, after line 22, insert the fol- place pipelines and electric trans- ‘‘SEC. 1506. FEDERAL MINE INSPECTORS. lowing: ‘‘SEC. 930. STUDY OF ENERGY EFFICIENCY mission lines across the Great Lakes. ‘‘In light of projected retirements of Fed- One such project is a pipeline which eral mine inspectors and the need for addi- STANDARDS. ‘‘The Secretary of Energy shall contract would transport up to 700 million cubic tional personnel, the Secretary of Labor with the National Academy of Sciences for a shall hire, train, and deploy such additional feet of natural gas per day to New York study, to be completed within one year of en- skilled mine inspectors (particularly inspec- and the northeast. The pipeline would actment of this Act, to examine whether the tors with practical experience as a practical cross the bottom of Lake Erie for 93.8 goals of energy efficiency standards are best mining engineer) as necessary to ensure the served by measurement of energy consumed, miles, from Port Stanley, Ontario to availability of skilled and experienced indi- and efficiency improvements, at the actual Ripley, NY. This pipeline will be con- viduals and to maintain the number of Fed- site of energy consumption, or through the structed using a new technique called eral mine inspectors at or above the levels full fuel cycle, beginning at the source of en- jet trenching, which will suspend two authorized by law or established by regula- ergy production. The Secretary shall submit and a half million cubic yards of sedi- tion.’’. the report to the Congress.’’ ment in Lake Erie. Much of this sedi- ment may be contaminated and the ef- AMENDMENT NO. 3120 AMENDMENT NO. 3123 fects of its redistribution are at best, (Purpose: To require the Secretary of Energy (Purpose: To encourage energy conservation to conduct a study on the effect of natural through bicycling) unknown. Further, no one has analyzed gas pipelines and other energy trans- On page 213, between lines 10 and 11, insert the capacity of the Lakes to handle mission infrastructure across the Great the following: suspended sediments. Lakes on the Great Lakes ecosystem) SEC. 8 . CONSERVE BY BICYCLING PROGRAM. It is obvious that energy trans- At the end of title XVII, insert the fol- (a) ESTABLISHMENT.—The Secretary of mission infrastructure is important, lowing: Transportation shall establish a Conserve By but it is critical that we understand

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00061 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2568 CONGRESSIONAL RECORD — SENATE April 11, 2002 the impacts of placing this infrastruc- ysis of potential environmental bene- duced number of trips made by cars ture across the lake beds. It is also im- fits of new natural gas-fired electric would increase this number and help to perative that we develop a long term generation facilities and reduced con- clean our nation’s air. strategy for their placement. This sumption measure that could be under- The Federal Highway Administration amendment would require the Depart- taken; an analysis of the capacity of estimates that 60 percent of all auto- ment of Energy to examine these ques- the Great Lakes to handle suspended mobile trips are under five miles in tions and make recommendations on sediment; takes into consideration the length. And these short trips typically how to assure that these incredible impacts of accommodating the energy emit more pollutants because cars dur- bodies of water are protected for future transmission infrastructure on land ing these trips run on cold engines. En- generations. use along the coasts of the Great gines running cold produce five times This amendment is simple, but its Lakes; and takes into consideration the carbon monoxide and twice the hy- role in addressing the challenges we the emergency response time for acci- drocarbon emissions per mile as en- now face is essential. I want to thank dents in the energy transmission infra- gines running hot. These cold engine my colleagues in supporting this structure. Not later than 180 days after trips could most easily be replaced by amendment. enactment of the underlying bill, the bike rides. ENERGY TRANSMISSION LINES Secretary should report his findings Americans would experience addi- Mr. LEVIN. Mr. President, as the and recommendations for the coordina- tional advantages from increased bike Senate considers this nation’s future tion of the development of natural gas usage. The decreased number of cars on energy policy, we would like to discuss and other energy transmission infra- our nation’s highways would help re- the intent of the amendment that the structure that would minimize the ag- duce traffic and parking congestion. Senate will adopt regarding the plan- gregate negative environmental effects Congestion costs have reached as much ning and coordination of energy trans- on the Great Lakes ecosystem. as $100 billion annually according to mission lines in the Great Lakes. Mr. BINGAMAN. Mr. President, I the Federal Highway Administration. Mr. DEWINE. Mr. President, I would want to thank the distinguished Sen- A reduction in cars on the roads will like to thank my colleagues, Mr. ators from Michigan and Ohio and our decrease the high costs associated with BINGAMAN and Mr. MURKOWSKI, for colleagues from the Great Lakes states congestion. working with us to authorize the De- for clarifying the intent of their The ‘‘Conserve by Bike’’ amendment partment of Energy, in consultation amendment. will also improve public health. The with Federal and State agencies, to Mr. DURBIN. Mr. President, today exercise from more frequent bike trips study the anticipated growth of energy the Senate will pass by voice vote an would help improve our physical well- transmission infrastructure in the amendment to the energy bill that being. Biking has proven to be effective Great Lakes. The Great Lakes eco- would establish a Conserve by Bike in the prevention of heart disease, our system is complex, so it’s important to Pilot Program in the Department of nation’s number one killer. And, biking understand how to minimize the pos- Transportation, as well as fund a re- also has been shown to help individuals sible impacts that the various energy search initiative on the potential en- who are trying to give up health-im- transmission infrastructure proposals ergy savings of replacing car trips with pairing behaviors such as smoking and may have on the Great Lakes eco- bike trips. This program would fund up alcohol abuse. system. to 10 projects throughout the country, The ‘‘Conserve by Bike’’ amendment Mr. BINGAMAN. Mr. President, I ap- using education and marketing to con- will help America take a simple but preciate my colleagues’ concerns and vert car trips to bike trips. The re- meaningful step in energy conserva- agree that a comprehensive study that search would document the energy con- tion. It will help fund up to 10 pilot considers the environmental impacts of servation, air quality improvement, projects that will use education and energy transmission infrastructure in and public health benefits caused by in- marketing to facilitate the conversion the Great Lakes will be useful, as will creased bike trips. The goal is to con- of car trips to bike trips, and document any recommendations on ways to mini- serve energy resources used in the the energy savings from these trips. mize any possible impacts. transportation sector by turning some These projects will facilitate partner- Mr. LEVIN. Mr. President, it is our of our gas guzzling miles into bike ships among those in the transpor- intent that this amendment require rides. the Secretary of Energy to complete a There is no single solution for our tation, energy, environment, public study that will include a review of the nation’s energy challenges. Every pos- health, education, and law enforcement expected energy demand—including the sible approach must be considered in sectors. There is a requirement for a geographic distribution of the de- order to solve our energy problems. local match in funding, so that these mand—in the Great Lakes States and It would be unrealistic to expect projects can continue after the Federal northeastern States for a 10-year pe- most Americans to make a substantial resources are exhausted. In addition, riod; a review of the proposed locations increase in the number of trips they this amendment will fund a research for new natural gas-fired electric gen- make by bicycle. But even a small per- initiative with the National Academy eration facilities; a review of the loca- centage of bike trips replacing our of Sciences to examine the feasibility tions and capacity of interstate and shorter car trips could make a signifi- and benefits of converting bike trips to intrastate natural gas transmission cant difference in oil and gas consump- car trips. pipelines in all Great Lakes states and tion. It is imperative that Americans are other energy transmission infrastruc- Right now, less than one trip in one fully informed of the entire range of ture across the Great Lakes in exist- hundred—.88 percent—is by bicycle. If benefits from biking in terms of energy ence or proposed as of the date of the we can raise our level of cycling just a conservation, air quality, and public completion of the study; a review of tiny bit: to one and a half trips per health. We also need to provide the the potential environmental effects hundred, which is less than a bike trip best resources in bike safety and con- that could result from the construction every two weeks for the average per- venience. of pipelines and other energy trans- son, we would save over 462 million gal- We have been spending a modest mission infrastructure across the Great lons of gasoline in a year, worth over amount of Federal, State and local Lakes. $721 million. That’s one day a year we funds on bicycle facilities since 1991. When reviewing the potential envi- won’t need to import any foreign oil. This amendment will leverage those in- ronmental effects of construction, the In addition to conserving our energy, vestments and help people take advan- Secretary should consider contami- an increased number of bike trips can tage of the energy conservation choices nated sediment deposits, Areas of Con- improve our air quality. Significant de- they have in getting around their com- cern as designated by the Great Lakes clines in vehicle emissions would fol- munities. I am pleased that this Water Quality Agreement, highly sen- low from increased bike trips. A study amendment will be accepted by the sitive fisheries, and highly sensitive in New York City showed that bicy- Senate as part of the energy bill that nearshore and coastal habitat. The cling spares the city almost 6,000 tons Senators DASCHLE and BINGAMAN have Secretary should also include an anal- of carbon monoxide each year. A re- brought to the floor.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00062 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2569 Ms. COLLINS. Mr. President I am them agreeable. They have been Now, these renewable fuels provisions proud to join my colleague from Illi- cleared on this side. do accomplish some very important nois in offering an amendment to rec- The PRESIDING OFFICER. Without goals. First, they ban the use of MTBE, ognize and promote bicycling’s impor- objection, the amendments are agreed which has resulted in serious ground tant impact on energy savings and pub- to en bloc. water pollution all over our country. lic health. The amendments (Nos. 3119, 3120, They revoke the oxygenate require- With America becoming more and 3121, 3122, and 3123) were agreed to en ments that led so many States to make more dependent on foreign oil, it is bloc. such heavy use of MTBE in the first vital that we look to the contribution Mr. BINGAMAN. Mr. President, I place. And they do keep in place the that bike travel can make towards move to reconsider the vote. same stringent air pollution standards solving our Nation’s energy challenges. Mr. MURKOWSKI. I move to lay that mandated by the Clean Air Act. This amendment would establish a motion on the table. My State has, unfortunately, experi- Conserve By Bike pilot program that The motion to lay on the table was enced firsthand the effects of MTBE would oversee up to 10 pilot projects agreed to. contamination in our drinking water throughout the country designed to Mr. MURKOWSKI. Mr. President, I sources. conserve energy resources by providing want the body to note that on our side While the full health and environ- education and marketing tools to con- there are about 10 or 14 amendments. I mental impacts of MTBE are still un- vert car trips to bike trips. By replac- have no idea what the situation is on known, we do know that it smells bad, ing even a small percentage of short the majority side with regard to it tastes bad, and the bottom line is car trips with bike trips, we would save amendments. that people do not want to be drinking over 462 million gallons of gasoline in a Mr. BINGAMAN. Mr. President, I re- MTBE-contaminated water any more year, worth over $721 million. iterate what the Senator from Nevada than they want to be drinking water While more bike trips would benefit said earlier, which is that we have a with arsenic or some other contami- our energy conservation efforts, they few more than that on the Democratic nant in it. would also contribute to the public’s side. But we have been making very As many of my colleagues know, be- health. According to the U.S. Surgeon good progress in reducing the number cause of poor air quality in certain General, less than one-third of Ameri- of amendments. We are optimistic that areas of the country, we are required to cans meet Federal recommendations to after we conclude the debate on the meet something called an ‘‘oxygenate engage in at least 30 minutes of mod- amendment which the Senator from requirement’’ under the Clean Air Act. New York City and surrounding erate physical activity at least five Alaska is going to offer next week, we counties constitute one of those areas. days a week. Even more disturbing is will be able to move to complete other This requirement requires that con- the fact that approximately 300,000 amendments and complete action on sumers use gasoline additives that aid U.S. deaths a year currently are associ- the bill. in reducing harmful air pollution. The ated with being obese or overweight. I yield the floor. additives available at this time are pri- By promoting biking, we are working Mr. MURKOWSKI. Mr. President, on marily MTBE and ethanol. So those of a note of levity and in the spirit of to ensure that Americans will increase us in the Northeast, who need to meet Senator DURBIN with the authorization their physical activity. this oxygenate requirement, have been Earlier this month, I had the oppor- of a study on the use of bicycles as a adding MTBE to our gasoline because tunity to meet with a delegation rep- pilot program, I am going to pilot my we have no readily accessible, afford- resenting the Bicycle Coalition of program home tonight on my girls’ bi- able, available sources of ethanol in Maine. This group has done an out- cycle which I bought for $20. It is one places such as New York. standing job of advocating bicycling which I don’t have to lock up because The unfortunate consequence is that, safety, education, and access through- nobody would bother to steal it. It gets as a result of leaking underground out the State. As a result of the work me here a lot faster than driving. storage tanks, other leaks, and runoffs, of the Bicycle Coalition of Maine, peo- I recall one day being behind an auto- we are now experiencing MTBE con- ple living in and visiting Maine will mobile of the junior Senator from New tamination in our underground water have accessible and safe conditions York which was stalled in the drive, sources. where they may comfortably and re- and they had to push it out. I certainly This has been a big problem in our sponsibly bicycle. The ‘‘Conserve by recommend the amendment proposed State, particularly on Long Island, Bike’’ amendment has received support by Senator DURBIN, which suggests ob- which has an aquifer that provides from this group and many others on vious benefits of the bicycling. It is drinking water that runs the full the national, State, and local level, and much easier to get through security, length of the island. In Suffolk County I urge my colleagues to support this and when the dogs come around you alone, MTBE has been found in both amendment. only have to worry about one thing. private and public wells in all 10 of the Mr. BINGAMAN. Mr. President, these I yield the floor. towns in that county. five amendments have been cleared on The PRESIDING OFFICER. The Sen- This is a serious problem and the both sides. They include an amendment ator from Nebraska is recognized. costs of cleaning up this MTBE con- by Senator ROCKEFELLER to ensure the Mr. NELSON of Nebraska. I thank tamination are significant. While hav- safety of the Nation’s mines and mine the Chair. ing clean air to breathe is critically workers, one by Senator LEVIN to re- (The remarks of Mr. NELSON of Ne- important, so is having clean water to quire the Secretary of Energy to con- braska are printed in today’s RECORD drink. We should not have to trade off duct a study on the effects of natural under ‘‘Statements on Introduced Bills air for water. We should be able to fig- gas pipelines in the Great Lakes, one and Joint Resolutions.’’) ure out how to provide both clean air by Senator SCHUMER to promote the The PRESIDING OFFICER. The Sen- and clean water. demonstration of certain high-tem- ator from New York? That is why New York State took the perature superconducting technologies, Mrs. CLINTON. Mr. President, I ask very bold step of banning MTBE by one by Senator SMITH of Oregon to au- unanimous consent to speak for up to January 1, 2004—less than 2 years from thorize a study of energy efficiency 15 minutes. today. In fact, I believe that about 13 standards, and one by Senator DURBIN The PRESIDING OFFICER. Without States—including my own—have made to encourage energy conservation objection, it is so ordered. the decision to restrict or ban the use through bicycling. Mrs. CLINTON. Mr. President, I come of MTBE in the next couple of years. I believe there is no objection to any to the floor today to join with my col- I agree that phasing out MTBE is ex- of these amendments. I urge the Senate leagues in talking about the very dif- actly the right thing to do from a to adopt them at this time. ficult choices that are being foisted drinking water perspective and from an Mr. MURKOWSKI. Mr. President, upon some of our States and all of our overall environmental perspective. speaking from the standpoint of the consumers because of the renewable That is why, in the last session, the minority, we have worked with the ma- fuels provisions in the energy bill now Environment and Public Works Com- jority on these amendments and find under consideration. mittee voted out S. 950 by voice vote,

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00063 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2570 CONGRESSIONAL RECORD — SENATE April 11, 2002 the provisions of which are incor- less expensive ways to reformulate gas- subsidy is currently costing $600 mil- porated in the renewable fuels provi- oline, but they would be forced to keep lion in Federal highway funds at to- sions that we are now discussing. using billions of gallons of ethanol an- day’s ethanol use level. That means S. 950 includes a phaseout of MTBE nually nonetheless. that with a 5-billion-plus-gallon-a-year and a repeal of the Federal oxygenate Refiners in States outside the Corn ethanol mandate, we will have even requirement, as recommended by the Belt that lack the infrastructure to less dollars for much needed transpor- EPA’s Blue Ribbon Panel on transport and refine ethanol would tation projects in all of our States, re- Oxygenates in Gasoline. I strongly sup- nonetheless be forced to pay for eth- sulting in more traffic congestion, less port these provisions, and I commend anol credits. The credits would result safe roadways, and other consumer the bipartisan leadership of the EPW in rising gas prices and the transfer of costs. Committee for their work on this im- funds from hard-pressed consumers in Another cost to consumers will be portant issue. But the committee- one part of the country to ethanol-rich the potential environmental cost of an passed bill did not include the ethanol areas in the rest of the country, while increased use of ethanol, not to men- mandate that we are here to discuss. doing nothing to improve air quality. tion the safe harbor from liability that Now, I am not here—I want to make In other words, consumers in every is included in this bill. this absolutely clear—to oppose eth- State would be forced to pay for eth- I have to give it to the sponsors and anol. I believe in ethanol. I think it is anol whether they used it or not. authors of this provision; they have a great step forward for renewable Make no mistake about it, this is thought of everything: subsidies; put a fuels. And I know that it is an impor- tantamount to a new gas tax. This will tax on everybody else who has to use tant use of the products that are grown cause the price of gasoline to go up it; make it even less likely that the en- in many parts of our country. It is a anywhere from 4 cents to 10 cents a vironmental costs are going to be in new market. And I believe that it does gallon. Others who spoke earlier today any way taken care of because the en- take us in the right direction. discussed specifically what would hap- vironmental and public health impacts And phasing out MTBE, even with a pen in their own States. I believe for of ethanol are still not fully under- repeal of the oxygenate requirement, New York this would mean more than stood. will still lead to an increase in the use 7 cents per gallon at the pump. Studies have indicated that while re- of ethanol in our country. That is why The reasons for these cost increases ducing carbon dioxide emissions, eth- a Federal mandate is not needed to en- are manyfold. There are costs of pro- anol may increase emissions of smog- sure a continuing market for ethanol. duction issues. Ethanol simply costs producing and other toxic compounds. And that is why I and my senior col- more to produce than gasoline or Despite the questions on its environ- league from New York, and my col- MTBE. Since ethanol is primarily mental and public health impacts, this leagues from California, and others, are made from corn, if there is a bad corn bill also includes a renewable fuels safe opposing the ethanol mandate that is crop one year, we can expect not only harbor provision. What does that included in this bill. food prices but gas prices as well to in- mean? It gives product liability protec- The energy bill we are currently de- crease under this bill. tion against consumers and commu- bating includes what I can only de- There are also supply issues. Accord- nities that may seek legal redress from scribe as an astonishing new ing to a recent report by the Congres- the manufacturers and oil companies anticonsumer Government mandate: sional Research Service, in the short that produce or utilize defective addi- that every refiner in our country use term ethanol is unlikely to be avail- tives in their gasoline. That is adding an ever increasing volume of ethanol or able in sufficient quantity. If the sup- insult to injury. First, we are going to pay for ethanol credits. At first when this was described to ply is not there, the gasoline supply tax you and, second, we are going to me, I thought there had to be some can’t be there, and prices will inevi- make it impossible for you to get any mistake because I, and I guess the ma- tably rise as a result. kind of redress if what we are making jority of my colleagues, support eth- There are transportation distribution you buy makes you sick or pollutes the anol. But to be told it has to be used, issues, as has been discussed earlier. environment. and the amount of it has to increase The cost of using ethanol is also influ- This means companies have less in- over time, struck me as exactly the op- enced by the fact that almost 90 per- centive to ensure that the additives posite of what we are trying to achieve cent of ethanol production occurs in they manufacture and use are safe, in this new energy policy. Because re- just five States: Illinois, Iowa, Ne- eliminating an important disincentive gardless of the market, and whatever braska, Minnesota, and Indiana. The to pollute. the demand would be for ethanol, this geographic concentration of ethanol What is the net result? We are pro- bill requires the use of ethanol or the production is an obstacle to its use on viding a single industry with a guaran- purchase of ethanol credits at a set either the east or west coasts, particu- teed market for its products—subsidies amount, an amount that will eventu- larly because ethanol-blended gasoline on top of subsidies on top of subsidies ally exceed 5 billion gallons. cannot travel through petroleum pipe- and, on top of that, protection from li- Currently U.S. refiners use approxi- lines and, therefore, it must be trans- ability. What a sweetheart deal. mately 1.7 billion gallons of ethanol. ported by truck, rail, or barge which If the average American consumer Starting in 2004, the Nation’s refiners significantly increases its per-unit tunes in on this debate and realizes would be required to use 2.3 billion gal- cost. what is happening, there will be a re- lons of ethanol. And that number As has already been mentioned, eth- volt. I dare predict that voting for this would ratchet up to 5 billion gallons of anol production is also concentrated bill, which will raise gas prices in 45 of ethanol by 2012. And the use of a con- among a few large producers. The top 5 our States, will be a political night- stant percentage of ethanol per volume companies that produce ethanol ac- mare for the people who end up voting of gasoline would be required every count for approximately 60 percent of for it. Higher gas prices at the pump, year thereafter no matter what kind of production capacity, and the top 10 reduced Federal assistance for much new breakthroughs we had in making companies account for approximately needed transportation projects, pos- gas both more efficient and cleaner. It 75 percent of production capacity. ADM sible negative air quality, and public would not matter. We would have a big alone markets about half of the eth- health impacts, to say nothing of raid- brother, big-hand Federal Government anol produced in the country. ing the Federal Treasury to give this mandate: You have to use it no matter All of this is going to mean higher giveaway to these large producers, what. prices for the American consumer, par- makes it impossible to understand why This means that from 2012 on, the Na- ticularly on the east and west coasts. any proconsumer, prohealth, pro-envi- tion’s ethanol producers would have a There will be other costs to consumers ronment, antigovernment mandate Government-guaranteed annual mar- as well. Member of this body would vote for ket of at least 5 billion gallons, or per- As many know, ethanol already gets this provision. haps even more. a tax break in terms of the gasoline For consumers, the ethanol mandate Now, oil refiners could, in a competi- tax. Every gallon of gas with ethanol is a one, two, three, four punch. First, tive market, find smarter, cleaner, and gets a 5.4-cent Federal subsidy. The consumers will pay more at the pump

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00064 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2571 to meet arbitrary goals that boost the love to have a mandated tax increase sand reached the camp. Thousands sale of ethanol, whether we need it or directly into their pocketbooks. That later died from malnutrition and dis- not. Second, consumers will face re- is not the purpose of having an energy ease. Of those eighteen-hundred from duced Federal assistance for transpor- bill that puts us on the path to self-suf- the New Mexico Brigade, fewer than tation projects because the money is ficiency. I certainly don’t think the nine-hundred returned. going to be going to the ethanol pro- tens of millions of consumers who may On Saturday, in Las Cruces, New ducers, not to fix your roads or your be following this debate think at the Mexico, we will dedicate the Bataan bridges. Third, consumers may experi- end of the day they are going to be Death March Memorial in memory and ence potential environmental and pub- transferring hard-earned money out of in honor of these men. And because lic health impacts. But guess what. their pockets into the pockets of eth- New Mexicans made up such a large You are barred from seeking redress. anol manufacturers, whether it helps proportion of those prisoners involved Who needs tort reform, just stick this or not. in the march, this anniversary and in the energy bill and forget about ever So I really hope my colleagues will dedication ceremony have stirred getting any kind of liability against consider the impact of this policy and many emotions throughout my state. anybody who may be intentionally or join with those of us who are looking For those survivors and their families, negligently causing health or environ- at this from the longer term perspec- there is a great sense of pride. Of mental harm. And fourth, you can’t tive to come up with an amendment course, there is much lingering pain, as sue the manufacturers and the oil com- that provides the kind of support for well. But by establishing a memorial in panies. ethanol we all believe would be in our their honor, we build a bridge to that There are some very positive aspects best interest, without the damaging emotion—a bridge that will allow all of these provisions to phase out MTBE mandates that this approach would re- generations of Americans to imagine and eliminate the oxygenate require- quire. the suffering these men endured, and to ment. We have long fought for this. Again, I don’t think anybody in this remember, forever, their true valor. There are many in this body who have body came to this energy debate think- For all Americans who are unable to been working on this a lot longer than ing they were voting to raise this gas travel to the Southwest to see the I have. I applaud those Members for tax, but indeed if we pass this as cur- beautiful bronze statue portraying an doing everything possible to ban MTBE rently written, that is exactly what we American soldier and a Filipino soldier and eliminate this oxygenate require- are going to do. Those people who are comforting an injured American com- ment. With about 13 States having al- going to pay that increased cost, start- rade during the midst of that seven-day ready taken such action, this is an ing in a few years, are going to turn march, I would encourage you to take issue that needs to be addressed. But around and say: Why is this happening? the time to learn about the horrors this is the wrong way to do it. It is going to be hard for us to ex- these men suffered—to learn their New York and California are on the plain. There is no reason for us to story. It is both sobering and inspiring, front lines of this battle because Cali- make this decision when there are al- and I pay tribute to their heroism fornia had originally banned MTBE as ternatives and we can work together today. of January 1, 2003, although the Gov- and make it possible for us to have a Mr. President, I suggest the absence ernor was forced to push the date back much better approach without the of a quorum. a year. Now California and New York, damaging impact this amendment on The PRESIDING OFFICER. The with millions and tens of millions of ethanol would cause to our entire clerk will call the roll. consumers, are in the same boat be- country. The assistant legislative clerk pro- I yield back the remainder of my cause New York has also banned ceeded to call the roll. MTBE. But Arizona has also taken time. Mr. CLELAND. Mr. President, I ask final action to ban MTBE. Colorado has The PRESIDING OFFICER. The Sen- unanimous consent that the order for mandated a phaseout, Connecticut has ator from New Mexico is recognized. the quorum call be rescinded. also phased it out as of 2004, and even Mr. DOMENICI. I understand we have The PRESIDING OFFICER. Without Illinois has banned the use, sale, dis- the regular order, and the Senator who objection, it is so ordered. tribution, blending, or manufacturing is supposed to speak is not here. of MTBE as a fuel additive, along with The PRESIDING OFFICER. The Sen- The Senator from Georgia is recog- Kansas and Michigan. And Minnesota ator is correct. There is no order for nized. has prohibited the sale of gasoline con- speakers. The Senator may proceed. Mr. CLELAND. I thank the Chair. taining more than .3 percent volume by Mr. DOMENICI. Mr. President, I ask (The remarks of Mr. CLELAND per- weight of MTBE and required the unanimous consent to speak for 3 min- taining to the introduction of S. 2115 phaseout by July 2005. utes as in morning business. are printed in today’s RECORD under There are many States that have The PRESIDING OFFICER. Without ‘‘Statements on Introduced Bills and taken actions. They have actually objection, it is so ordered. Joint Resolutions.’’) passed laws. There are numbers of oth- Mr. DOMENICI. Mr. President, I rise Mr. CLELAND. Mr. President, I sug- ers who are trying to take action to today to call attention to a very spe- gest the absence of a quorum. phase it out. cial anniversary that many in my The PRESIDING OFFICER (Mrs. We do need Federal action. My col- home state of New Mexico will take CLINTON). The clerk will call the roll. leagues from New York and California time to remember this weekend. Satur- The assistant legislative clerk pro- and I understand that we need to pass day, April 13th will mark the sixty- ceeded to call the roll. provisions that will work. But that year anniversary of the Bataan Death Mr. REID. Madam President, I ask does not mean we should pass a 5-bil- March. Some eighteen-hundred men unanimous consent that the order for lion-gallon, anticonsumer, gas-price-in- from the 200th Coast Anti-Artillery the quorum call be rescinded. creasing ethanol mandate. Aircraft and the 515th Coast Anti-Ar- The PRESIDING OFFICER. Without So, Mr. President, I hope that calmer tillery, Aircraft, New Mexico National objection, it is so ordered. heads will prevail in this debate, that Guard Units were involved in that infa- we will understand the important role mous march. f of ethanol, provide an opportunity for I do not think words can fully de- that market to grow, but not mandate scribe the bravery of these veterans MORNING BUSINESS it, not interfere with the operation of and the horrific conditions they en- the market, not provide subsidies, not dured. In all, more than seventy thou- Mr. REID. Madam President, I ask require consumers to buy it whether sand American and Filipino prisoners unanimous consent the Senate proceed we need it or not, and not protect the of war were captured in April 1942 and to a period of morning business, with producers from public health and envi- force-marched to a Japanese work Senators permitted to speak for not to ronmental liability. camp. Suffering from starvation and exceed 10 minutes each. What is going on here? Any business physical abuse, more than seven thou- The PRESIDING OFFICER. Without or any sector of the economy would sand died and only about fifty-six thou- objection, it is so ordered.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00065 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2572 CONGRESSIONAL RECORD — SENATE April 11, 2002 ENTRY INTO FORCE OF THE interests that are wrapped up in the ROME STATUTE OF THE INTERNATIONAL CRIMINAL INTERNATIONAL CRIMINAL COURT Court. Those interests are not going to COURT—PARTICIPANTS—Continued be erased with the name of the United Mr. DODD. Madam President, today Participant Signature Ratification with the deposit of the 66th instru- States from the Rome Statute. That is ments of ratification of the Rome Stat- why I strenuously oppose such action: Guinea-Bissau ...... 12 Sep 2000 Guyana ...... 28 Dec 2000 ute, the International Criminal Court it is irresponsible, isolationist, and Haiti ...... 26 Feb 1999 is on track to enter into force on July contrary to our vital national inter- Honduras ...... 7 Oct 1998 Hungary ...... 15 Jan 1999 30 Nov 2001 1. I rise to acknowledge and congratu- ests. Many of our closest allies have Iceland ...... 26 Aug 1998 25 May 2000 late those who have labored to reach put their faith in the vision of this new Iran (Islamic Republic of) ...... 31 Dec 2000 Ireland ...... 7 Oct 1998 11 Apr 2002 this moment—the creation of a perma- legal instrument. We should give them Israel ...... 31 Dec 2000 the benefit of the doubt that they are Italy ...... 18 Jul 1998 26 Jul 1999 nent international forum to bring to Jamaica ...... 8 Sep 2000 justice heinous criminals who have committed to making the court work Jordan ...... 7 Oct 1998 11 Apr 2002 committed crimes against humanity, to strengthen international respect for Kenya ...... 11 Aug 1999 Kuwait ...... 8 Sep 2000 the fulfillment of the legacy of Nurem- the rule of law. I will include the list of Kyrgyzstan ...... 8 Dec 1998 berg. The Nuremberg Trial of the lead- the States that have signed and rati- Latvia ...... 22 Apr 1999 Lesotho ...... 30 Nov 1998 6 Sep 2000 ing Nazi war criminals following World fied the Rome Statute at the conclu- Liberia ...... 17 Jul 1998 War II was a landmark in the struggle sion of my remarks. Liechtenstein ...... 18 Jul 1998 2 Oct 2001 I call on the Bush administration to Lithuania ...... 10 Dec 1998 to deter and punish crimes of war and Luxembourg ...... 13 Oct 19998 8 Sep 2000 genocide, setting the stage for the Ge- recognize that there is a constructive Madagascar ...... 18 Jul 1998 and useful role that the United States Malawi ...... 22 Mar 1999 neva and Genocide Conventions. It was Mali ...... 17 Jul 1998 16 Aug 2000 also largely an American initiative. can perform without making a decision Malta ...... 17 Jul 1998 at this juncture concerning US ratifi- Marshall Islands ...... 6 Sep 2000 7 Dec 2000 Justice Robert Jackson’s team drove Mauritius ...... 11 Nov 1998 5 Mar 2002 the process of drafting the indictments, cation. We should be prepared to lend Mexico ...... 7 Sep 2000 our expertise in grappling with the Monaco ...... 18 Jul 1998 gathering the evidence and conducting Mongolia ...... 29 Dec 2000 11 Apr 2002 this extraordinary case. many issues that remain to be resolved Morocco ...... 8 Sep 2000 before the court becomes fully func- Mozambique ...... 28 Dec 2000 My father, Thomas J. Dodd, served as Nomibia ...... 27 Oct 1998 executive trial counsel at Nuremberg, tioning. That is what a global power Nauru ...... 13 Dec 2000 12 Nov 2001 with the stature of the United States Netherlands ...... 18 Jul 1998 17 Jul 2001 1 it was among his proudest accomplish- New Zealand ...... 7 Oct 1998 7 Sep 2000 ments. I believe that he would have should do. Niger ...... 17 Jul 1998 11 Apr 2002 I ask unanimous consent to print in Nigeria ...... 1 Jun 2000 27 Sep 2001 been proud today to see the Inter- Norway ...... 28 Aug 1998 16 Feb 2000 national Criminal Court, ICC, come the RECORD the list of States to which Oman ...... 20 Dec 2000 into existence. He believed that Amer- I referred. Panama ...... 18 Jul 1998 21 Mar 2002 There being no objection, the mate- Paraguay ...... 7 Oct 1998 14 May 2001 ica had a special role to help make the Peru ...... 7 Dec 2000 10 Nov 2001 rule of law relevant in every corner of rial was ordered to be printed in the Philippines ...... 28 Dec 2000 RECORD, as follows: Poland ...... 9 Apr 1999 12 Nov 2001 the globe. I believe that he would have Portugal ...... 7 Oct 1998 5 Feb 2002 endorsed President Clinton’s decision Republic of Koera ...... 8 Mar 2000 ROME STATUTE OF THE INTERNATIONAL CRIMINAL Republic of Moldova ...... 8 Sep 2000 to sign the Rome Statute in December COURT—PARTICIPANTS Romania ...... 7 Jul 1999 11 Apr 2002 of 2000 on behalf of the United States. Russian Federation ...... 13 Sep 2000 Saint Lucia ...... 27 Aug 1999 President Clinton did so knowing full Participant Signature Ratification Samoa ...... 17 Jul 1998 well that much work remains to be San Marino ...... 18 Jul 1998 13 May 1999 Albania ...... 18 Jul 1998 Sao Tome and Principe ...... 28 Dec 2000 done before the United States can be- Algeria ...... 28 Dec 2000 Senegal ...... 18 Jul 1998 2 Feb 1999 come a party to the U.N. convention Andorra ...... 18 Jul 1998 30 Apr 2001 Seychelles ...... 28 Dec 2000 Angola ...... 7 Oct 1998 Sierra Leone ...... 17 Oct 1998 15 Sep 2000 establishing an International Criminal Antigua and Barbuda ...... 23 Oct 1998 18 Jun 2001 Slovakia ...... 23 Dec 1998 11 Apr 2002 Court. Argentina ...... 8 Jan 1999 8 Feb 2001 Slovenia ...... 7 Oct 1998 31 Dec 2001 Armenia ...... 1 Oct 1999 Solomon Islands ...... 3 Dec 1998 Now that the establishment of the Australia ...... 9 Dec 1998 South Africa ...... 17 Jul 1998 27 Nov 2000 ICC is inevitable, the United States Austria ...... 7 Oct 1998 28 Dec 2000 Spain ...... 18 Jul 1998 24 Oct 2000 Bahamas ...... 29 Dec 2000 Sudan ...... 8 Sep 2000 must now determine what its relation- Bahrain ...... 11 Dec 2000 Sweden ...... 7 Oct 1998 28 Jun 2001 ship with the Court will be. Rather Bangladesh ...... 16 Sep 1999 Switzerland ...... 18 Jul 1998 12 Oct 2001 Barbados ...... 8 Sep 2000 Syrian Arab Republic ...... 29 Nov 2000 than adopting a course that will pit us Belgium ...... 10 Sep 1998 28 Jun 2000 Tajikistan ...... 30 Nov 1998 5 May 2000 against our best friends and allies, I Belize ...... 5 Apr 2000 5 Apr 2000 Thailand ...... 2 Oct 2000 Benin ...... 24 Sep 1999 22 Jan 2002 The Formere Yugoslav Republic of 7 Oct 1998 6 Mar 2002 call for the United States to be ac- Bolivia ...... 17 Jul 1998 Macedonia. tively engaged with the ICC in working Bosnia and Herzegovina ...... 17 Jul 2000 11 Apr 2002 Trinidad and Tobago ...... 23 Mar 1999 6 Apr 1999 Botswana ...... 8 Sep 2000 8 Sep 2000 Uganda ...... 17 Mar 1999 to ensure that it demonstrates the Brazil ...... 7 Feb 2000 Ukraine ...... 20 Jan 2000 highest standards of jurisprudence and Bulgaria ...... 11 Feb 1999 11 Apr 2002 United Arab Emirates ...... 27 Nov 2000 Burkina Faso ...... 30 Nov 1998 United Kingdom of Great Britain 30 Nov 1998 4 Oct 2001 integrity. Although the United States Burundi ...... 13 Jan 1999 and Northern Ireland. is not a party to the treaty, The United Cambodia ...... 23 Oct 2000 11 Apr 2002 United Republic of Tanzania ...... 29 Dec 2000 Cameroon ...... 17 Jul 1998 United States of America ...... 31 Dec 2000 States should feel free to raise its voice Canada ...... 18 Dec 1998 7 Jul 2000 Uruguay ...... 19 Dec 2000 and give its opinion on who should be Cape Verde ...... 28 Dec 2000 Uzbekistan ...... 29 Dec 2000 Central African Republic ...... 7 Dec 1999 3 Oct 2001 Venezuela ...... 14 Oct 1998 7 Jun 2000 selected to be the Court’s judges and Chad ...... 20 Oct 1999 Yemen ...... 28 Dec 2000 prosecutors. The United States should Chile ...... 11 Sep 1998 Yugoslavia ...... 19 Dec 2000 6 Sep 2001 Colombia ...... 10 Dec 1998 Zambia ...... 17 Jul 1998 also use its seat on the U.N.’s Security Comoros ...... 22 Sep 2000 Zimbabwe ...... 17 Jul 1998 Council to refer situations to the Congo ...... 17 Jul 1998 Costa Rica ...... 7 Oct 1998 7 June 2001 1 Acceptance. Court, such as the current conflict in Co´te d’lvoire ...... 30 Nov 1998 2 Accession. Sudan that has already claimed over 2 Croatia ...... 12 Oct 1998 21 May 2001 Cyprus ...... 15 Oct 1998 7 Mar 2002 f million lives as a result of war crimes, Czech Republic ...... 13 Apr 1999 genocide, and crimes against human- Democratic Republic of the Congo 8 Sep 2000 11 Apr 2002 KIDS ARE GETTING KILLED Denmark ...... 25 Sep 1998 21 Jun 2001 ity. And above all, the United States Djibouti ...... 7 Oct 1998 Mr. LEVIN. Mr. President, for the should be a watchdog of the Court’s in- Dominica ...... 12 Feb 2001 2 third time in 6 weeks, a gunman has Dominican Republic ...... 8 Sep 2000 tegrity and keep it laser focused on its Ecuador ...... 7 Oct 1998 5 Feb 2002 killed a young girl in Detroit. The first primary task, bringing to justice the Egypt ...... 26 Dec 2000 time it was a 7-year-old, killed by a Eritrea ...... 7 Oct 1998 worlds worst criminals. Estonia ...... 27 Dec 1999 30 Jan 2002 man who opened fire on a car full of There are those in Congress and the Fiji ...... 29 Nov 1999 29 Nov 1999 children. The second time it was a 3- Finland ...... 7 Oct 1998 29 Dec 2000 Administration who would have the France ...... 18 Jul 1998 9 June 2000 year-old, shot while she was watching United States repudiate the ICC, and Gabon ...... 22 Dec 1998 20 Sep 2000 television in her room. And just this Gambia ...... 4 Dec 1998 work to tear it down. They would have Georgia ...... 18 Jul 1998 past Wednesday, an 8-year-old was shot us take the unprecedented step of Germany ...... 10 Dec 1998 11 Dec 2000 while sleeping at home. The Detroit Ghana ...... 18 Jul 1998 20 Dec 1999 ‘‘unsigning’’ the Rome Statute. I have Greece ...... 18 Jul 1998 Police Department has one man in cus- just cited a number of vital American Guinea ...... 7 Sep 2000 tody, but no one has been formally

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00066 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2573 charged. These are very tragic events. seeking Department of Veterans Af- sector; and its Sports and Recreation In addition to prosecuting the crimi- fairs’ claims and benefits. Program which is dedicated to pro- nals who commit these horrific crimes, PVA is a leading advocate for quality moting a range of activities for its we can do more to prevent them, we health care not only for spinal cord in- members and other people with disabil- should close the gun show loophole so jured veterans, but for all other vet- ities, with special emphasis on activi- that it is more difficult for criminals erans as well. They also continue to ties that enhance lifetime health and to gain access to guns. press for research and education ad- fitness, including through co-sponsor- In 1994, Congress passed the Brady dressing spinal cord injury and dys- ship of the National Veterans Wheel- Law, which requires Federal Firearm function. chair Games with the Department of Licensees to perform criminal back- PVA’s commitment to research can Veterans Affairs. ground checks on gun buyers. However, be seen in its sponsorship of the Spinal For 16 years, PVA has co-authored an a loophole in this law allows unlicensed Cord Research Foundation which sup- important, highly respected policy private gun sellers to sell firearms at ports research to alleviate, and ulti- guide for the Congress, The Inde- gun shows without conducting a back- mately end, medical and functional pendent Budget: A Comprehensive Pol- ground check. consequences of paralysis; its endow- icy Document Created by Veterans for In April of last year, Senator JACK ment in 1980 of a Professorship in SCI Veterans, with the Disabled American REED introduced the Gun Show Back- Medicine at Stanford University; its Veterans, AMVETS, and the Veterans ground Check Act which would close creation of the Spinal Cord Injury Edu- of Foreign Wars which addresses the this loophole in the law. The Reed bill, cation and Training Foundation to sup- needs of veterans on issues ranging which is supported by the Inter- port innovative education and training from health care to benefits and the re- national Association of Chiefs of Po- programs; and its role in establishing sources required to meet these needs in lice, extends the Brady Bill background the PVA–EPVA Center for Neuro- the VA budget every year. check requirement to all sellers of fire- science and Regeneration Research at PVA’s Government Relations staff is arms at gun shows. I cosponsored that Yale University along with the Eastern well-known here on Capitol Hill. It’s bill because I believe it is critical that Paralyzed Veterans Association, the Advocacy Program is a leading voice we do all we can to prevent guns from Department of Veterans Affairs, and for civil rights and opportunities that getting into the hands of criminals and Yale University, with the goal of res- maximize independence of individuals terrorists. I urge the Senate to debate toration of function in people with spi- who have experienced spinal cord in- and pass this common sense gun-safety nal cord dysfunction. jury or disease, or other severe disabil- legislation. PVA also coordinates the activities ities. PVA played an important role in the passage of the Americans with Dis- f of two coalitions of professional, payer, and consumer groups, the Consortium abilities Act. It continues its advocacy CELEBRATING OVER A HALF CEN- for Spinal Cord Medicine and the Mul- as an active member of the Consortium TURY OF SERVICE TO VETERANS tiple Sclerosis Council, which develop for Citizens With Disabilities. Its Leg- Mr. ROCKEFELLER. Madam Presi- clinical practice guidelines defining islation Program staff is directly in- dent, I am pleased today to say a few standards of care for people with spinal volved in every budget, legislative, and words about the Paralyzed Veterans of cord injury and multiple sclerosis. policy initiative affecting veterans America, PVA to those of us who work While PVA’s Congressional charter under consideration in the Congress on veterans matters, in connection requires it to devote substantial re- every year. with the organization’s PVA Awareness sources to representing veterans in Over the years, I have relied heavily Week, which takes place next week. their claims for benefits from VA, the on PVA members in my State of West PVA began in February 1947, when PVA Veterans Benefits Department Virginia to keep me informed about delegates from seven groups of para- goes above and beyond the call of duty, the issues so critical to veterans with lyzed veterans from around the coun- providing assistance and representa- spinal cord injuries. I am particularly try met at the Hines VA Hospital in tion, without charge, to veterans with grateful for the wisdom and counsel of my friend Randy Pleva, President of Chicago, IL. Those veterans agreed to a spinal cord dysfunction and other WV PVA and one of PVA’s National form a national organization to address veterans seeking health care and other vice presidents. I do not know a more the needs of spinal cord injured vet- benefits for which they are eligible. dedicated and compassionate advocate erans. They believed that veterans This assistance is offered through a with spinal cord injuries would have for paralyzed veterans. network of PVA national service offi- Those of us who work with PVA the strongest voice in speaking for vet- cers across the nation who assist vet- every day recognize the dedication and erans with such injuries and for all who erans in making claims for benefits expertise that this organization brings were similarly disabled, a belief that and monitor medical care at local VA to Capitol Hill. The organization is one has been borne out over the years. The medical facilities. PVA’s national serv- of the top national veterans’ service or- original members of PVA also empha- ice officers assist claimants through ganizations in terms of expertise and sized the need both to conduct research every stage of the VA claims process dedication. We must acknowledge the to find a cure for spinal cord injury and also offer representation to vet- extreme sacrifices that the members of while, at the same time, providing for erans who have claims pending before their organization have made in service the basic, immediate needs of spinal the Social Security Administration. to this country and honor the fact that cord injured veterans. PVA’s advocacy does not stop at the PVA members continue that service on Since its inception, PVA has dedi- Board of Veterans’ Appeals. It has one behalf of veterans and all Americans cated itself to the well being of some of of the most active presences at the with disabilities. America’s most catastrophically dis- U.S. Court of Appeals for Veterans At a time when this country has sol- abled veterans as it has developed a Claims and the U.S. Court of Appeals diers deployed to far-off lands in de- unique expertise on a wide variety of for the Federal Circuit, arguing cases fense of freedom, it is important that issues involving the special needs of its that have set precedents that have we recognize these men and women members, veterans of the armed forces helped thousands, if not millions, of who have served this country in the who have experienced spinal cord in- veterans and their families. past and continue to serve our nations’ jury, SCI, or dysfunction. PVA, which Other key PVA programs include its veterans today. I look forward to a received a Congressional charter as a Architecture Program, which plays an continuing partnership with PVA to veterans service organization in 1971, is important role in the lives of severely provide for the needs of veterans, past, a dynamic, broad-based organization disabled veterans with quality design present, and future. with more than 40 chapters and sub- and construction of affordable and ac- f chapters nationwide and nearly 20,000 cessible housing; its Health Analysis members. In addition to its Wash- Program, which keeps a constant eye LOCAL LAW ENFORCEMENT ACT ington, D.C. headquarters, PVA oper- on the performance of the VA health OF 2001 ates 58 service offices around the coun- care system as well as other health Mr. SMITH of Oregon. Madam Presi- try to serve the needs of all veterans care systems in the public and private dent, I rise today to speak about hate

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00067 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2574 CONGRESSIONAL RECORD — SENATE April 11, 2002 crimes legislation I introduced with and South Korea. They were protecting discrimination. I look forward to see- Senator KENNEDY in March of last the notions of freedom and democracy ing that important legislation enacted year. The Local Law Enforcement Act our forefathers so bravely brought to soon. of 2001 would add new categories to this great land nearly 226 years ago. In Dr. Hudson received her B.A. in biol- current hate crimes legislation sending many ways, our soldiers at home and ogy at Carleton College in Minnesota; a signal that violence of any kind is abroad are fighting to protect these her Masters in microbiology from the unacceptable in our society. same ideals today. In 1950, communists University of Chicago; and the Ph.D. in I would like to describe a terrible in North Korea, China, and Russia molecular biology from the University crime that occurred August 18, 1994 in threatened to take away people’s in- of California, Berkeley. Before joining Indianola, OH. Four lesbians women nate right to sleep under a blanket of the NIH, Dr. Hudson was a senior pol- were attacked by a female teen who, freedom. Today, terrorists from around icy analyst in the office of the Assist- encouraged by a crowd of onlookers, the globe are attempting to do the ant Secretary for Health at the Depart- yelled anti-gay epithets. The assailant, same. We must never forget those who ment of Health and Human Services. Shanika Campbell, 18, was charged have fought and died to ensure that our She advised the assistant secretary on with four counts of assault in connec- way of life continues. I applaud the ef- national health and science policy tion with the incident. forts of the Department of Defense and issues involving NIH. Prior to that, Dr. I believe that government’s first duty the nearly 5000 partners around the Hudson worked in the Congressional is to defend its citizens, to defend them world for conducting this three-year Office of Technology Assessment as a against the harms that come out of commemoration ceremony. History congressional science fellow. hate. The Local Law Enforcement En- and the people who played such a vital Through her signal contributions to hancement Act of 2001 is now a symbol part in it should never be forgotten for social policy and to the Nation’s that can become substance. I believe what they accomplished and what they health, Dr. Hudson’s work has exempli- that by passing this legislation and sacrificed. As Winston Churchill stat- fied the best of government service and changing current law, we can change ed, ‘‘Out of the depths of sorrow and the difference in our Nation’s well hearts and minds as well. sacrifice will be born again the glory of being that a dedicated scientist can f mankind.’’ make. I wish Dr. Hudson all the best in Finally, I would like to pay a special KOREAN WAR COMMEMORATION her new venture as the Director of the tribute to the more than 57,000 Ken- Genetics and Public Policy Center at Mr. BUNNING. Madam President, tuckians who served in the military the Johns Hopkins University, and on today I rise to respectfully ask my fel- during the Korean War era, many who behalf of the Congress and the country, low colleagues join me in honoring the undoubtedly fought on the front lines. thank her for her outstanding govern- men and women who so bravely and I am extremely proud to know that so ment service. fiercely fought for freedom and democ- many Kentuckians were willing to racy during the Korean War and those fight for all that this great country f who fight for these same freedoms stands for. God Bless America. today. f This week at Camp Lejeune in North ADDITIONAL STATEMENTS Carolina, the often ‘‘forgotten war’’ RECOGNITION OF DR. KATHY will take center stage as an expected HUDSON’S SERVICE TO NIH crowd of more than 10,000 will gather Mr. KENNEDY. Madam President, I IN RECOGNITION OF FRESNO today at the Marine Corps Base to par- would like to take a moment to recog- COUNTY SUPERVISOR, JUAN take in various commemorative activi- nize the exemplary work of Dr. Kathy ARAMBULA, RECIPIENT OF THE ties. The commemoration will begin Hudson, who after 10 years is leaving 2002 ROSE ANN VUICH LEADER- with a full honors ceremony and ad- government service. For the last 7 SHIP AWARD dress by Navy Secretary Gordon R. years Dr. Hudson has served with dis- England and will include flyovers by tinction as the Director of the Office of ∑ Mrs. BOXER. Madam President, I vintage aircraft, modern attack heli- Policy, Planning and Communications rise today to bring to the Senate’s at- copters, F/A—18 Hornets, AV—8B Har- and the Assistant Director of the Na- tention the exemplary achievements riers and A—10 Thunderbolts as well as tional Human Genome Research Insti- and outstanding service of Juan a parachute jump by the Army’s Gold- tute at the National Institutes of Arambula, Supervisor in Fresno Coun- en Knights. The events, set to end next Health. While at the Institute, she has ty, CA. year, are part of the military’s three- been responsible for communications, Supervisor Juan Arambula, now serv- year commemoration of the 1950–1953 government relations, program plan- ing his second term as supervisor, is to War. ning, and education activities. receive the Rose Ann Vuich Leadership On June 25, 1950, eight divisions and Dr. Hudson has provided focus and Award for his outstanding leadership an armored brigade of 90,000 soldiers leadership in numerous areas for the and service. Supervisor Arambula is from the North Korean People’s Army Institute. She has played a particularly most deserving of this special recogni- attacked in three columns across the important leadership role in public pol- tion and the outpouring of admiration 38th parallel and invaded the Republic icy and public affairs for the Human from all throughout the community. of Korea. The following day, President Genome Project, the international ef- In his many years of public service as Harry S Truman sanctioned the use of fort to decipher the human genetic Past President of Fresno Unified American air and naval forces below code and apply the results to improv- School District Board of Trustees, the 38th parallel. 37 long months later ing human health. former member of the California on July 27, 1953, an Armistice was She has led efforts to identify bar- School Boards Association Board of Di- signed and the fighting ended. In all, riers such as genetic discrimination rectors and now as Supervisor for Fres- America lost 33,686 of its best and that could impede the fair and equi- no County, he has maintained a sense brightest. However, these men lost table application of genetic informa- of honor, purpose and teamwork that their lives safeguarding something big- tion to public health and has led devel- not only resonated on the Fresno Coun- ger than any of us in this room, democ- opment of policies to protect privacy ty Board of Supervisors, but through- racy. and prevent genetic discrimination. In out surrounding communities. Today, many veterans of the Korean his regard, she was instrumental in the Supervisor Arambula serves Fresno War feel as if their sacrifice is forgot- development of an Executive Order County and his constituents with great ten. They believe that their place in signed in February 2000 that banned distinction. I am honored to congratu- history has been nearly erased. I urge discrimination in Federal employment late and pay tribute to him and I en- my fellow colleagues and my fellow based on genetic information. She has courage my colleagues to join me in Americans to remember and embrace also provided exceptional technical ad- wishing Supervisor Arambula much what these men and women were fight- vice to my staff and many others in continued success in his public service ing to defend fifty years ago in North drafting legislation on genetic non- career.∑

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00068 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2575 IN RECOGNITION OF THE NA- the First Baptist Church has evolved MESSAGES FROM THE PRESIDENT TIONAL POLICE DEFENSE FOUN- into a vibrant spiritual congregation Messages from the President of the DATION dedicated to Christian Fellowship and United States were communicated to ∑ Mr. TORRICELLI. Mr. President, I engaged in active social ministry. the Senate by Ms. Evans, one of his rise today to extend my support and Since the middle of the 20th century, secretaries. the congregants of First Baptist have thanks to the members of the National f Police Defense Foundation (NPDF). willingly contributed to the advance- EXECUTIVE MESSAGES REFERRED The NPDF is dedicating this year’s An- ment and well-being of their sur- nual Awards Dinner to the many he- rounding community by building and As in executive session the Presiding roes of September 11. running a parsonage, establishing a Officer laid before the Senate messages The events of September 11 represent Food Pantry ministry, and creating from the President of the United one of the most tragic events in Amer- the First Baptist Church Federal Cred- States submitting sundry nominations ican history. However, in the horror of it Union. First Baptist has also ad- which were referred to the appropriate the moment, many of our bravest set dressed the need of adequate and af- committees. aside all of their conflicting emotions fordable housing through the First (The nominations received today are and rose to the occasion. Many risked Baptist Church Development Corpora- printed at the end of the Senate pro- and sacrificed their lives to save oth- tion. Just recently, the Corporation ceedings.) ers, and we are grateful for all they completed construction and sale of its f first affordable housing unit. achieved. MESSAGE FROM THE HOUSE I would like to extend my congratu- I am impressed by First Baptist’s At 11:30 a.m., a message from the lations to former NYC Police Commis- commitment to Christian discipleship. House of Representatives, delivered by sioner Bernard Kerik for being honored Under the leadership of Reverend Wil- Ms. Niland, one of its reading clerks, as ‘‘Man of the Year’’ and Dr. Deborah liam B. Sutton, III, and former Pastor, announced that the House has passed Mandell as ‘‘Woman of the Year.’’ Both Doctor William O. Johnson, it has pro- the following bills, in which it requests have given a great deal of themselves vided growth and development to both the concurrence of the Senate: and provided invaluable leadership dur- congregants and the surrounding com- munity. In these difficult times, I be- H.R. 1366. An act to designate the United ing this time of crisis. Commissioner States Post Office building located at 3101 Kerik is to be commended for his lead- lieve the services rendered by First Baptist serve as a positive example to West Sunflower Avenue in Santa Ana, Cali- ership and the support he provided to fornia, as the ‘‘Hector G. Godinez Post Office many in the aftermath of this tragedy. all religious congregations. Building.’’ Dr. Mandell should also be commended Once again, I congratulate the First H.R. 3925. An act to establish an exchange for spearheading the NPDF’s emer- Baptist Church of Stratford on its 125th program between the Federal Government gency response team that provided anniversary. I hope that the congrega- and the private sector in order to promote critical grief counseling and support tion will keep up its important work the development of expertise in information and continue to make lasting contribu- technology management, and for other pur- services to many of the survivors, fam- poses. ily members, and rescue workers. tions to the community of Stratford ∑ The message also announced that I would also like to extend my con- for many generations to come. pursuant to section 703 of the Social gratulations to: Security Act (42 U.S.C. 903), as amend- Chief Robert Caron for receiving the f ed by section 103 of Public Law 103–296, Special Achievement Award the Speaker appoints the following Sgt. John McLaughlin and P.O. Wil- IN RECOGNITION OF NANCY RICH- member on the part of the House of liam Jimeno for receiving the Profile ARDSON, RECIPIENT OF THE EX- Representatives to the Social Security in Courage Award CELLENCE IN PUBLIC SERVICE Advisory Board to fill the existing va- P.O. Joseph Zarrelli and Stephanie AWARD cancy thereon: Mrs. Dorcas R. Hardy of Matoursek for receiving the Operation ∑ Mrs. BOXER. Madam President, I Spotsylvania, Virginia. Kids Special Achievement Award rise today to bring to the Senate’s at- f All of the men and women of the tention the exemplary achievements NYPD, NY/NJ Port Authority Police, and outstanding service of Nancy Rich- MEASURES REFERRED U.S. Customs, U.S. Secret Service and ardson, a resident of Fresno, CA. The following bills were read the first the FBI for receiving the Special Unit Nancy Richardson has worked her and the second times by unanimous Citation Award for their efforts on the whole adult life as a community activ- consent, and referred as indicated: Great Kills Landfill Task Force. ist and dedicated advocate for children. H.R. 1366. An act to designate the United I am proud to join the NPDF in hon- It is because of her superb work and States Post Office building located at 3101 oring these individuals and the tireless commitment to the community that West Sunflower Avenue in Santa Ana, Cali- efforts of all of the men and women she is being honored with the Excel- fornia, as the ‘‘Hector G. Godinez Post Office who on September 11 and its aftermath lence in Public Service Award. Building’’; to the Committee on Govern- have worked to help their fellow Amer- mental Affairs. Nancy has a long list of achieve- H.R. 3925. An act to establish an exchange icans. They represent all that is truly ments in the community. She was a ∑ program between the Federal Government great about our nation. member of the Fresno Unified School and the private sector in order to promote f District Board of Trustees, served as a the development of expertise in information coordinator of the Interagency Council, technology management, and for other pur- CELEBRATING THE 125TH ANNI- served on the Fresno County Mental poses; to the Committee on Governmental VERSARY OF THE FIRST BAP- Health Board and was the first sworn Affairs. TIST CHURCH IN STRATFORD, Court Appointed Special Advocate, f CONNECTICUT CASA, volunteer and now works on the EXECUTIVE AND OTHER ∑ Mr. DODD. Madam President, today I Foster Care Oversight Committee. She COMMUNICATIONS congratulate the First Baptist Church is known for her integrity in all mat- The following communications were of Stratford, CT, on its 125th anniver- ters she undertakes. Her work is end- laid before the Senate, together with sary as a Christian congregation. less, and is devoted to helping children. accompanying papers, reports, and doc- Reaching this commendable bench- Nancy Richardson is most deserving uments, which were referred as indi- mark is testimony to the deep level of of this award and the outpouring of ad- cated: faith and social commitment shared by miration that greets her each day. I am this community throughout its long honored to pay tribute to her, and I en- EC–6440. A communication from the Dep- uty Director, Congressional Budget Office, history. courage my colleagues to join me in transmitting, pursuant to law, the Final Se- From its humble origins in 1877 as a wishing Nancy Richardson much con- questration Report for Fiscal Year 2002; re- small Sunday School for Stratford’s tinued success as she continues her ferred jointly, pursuant to the order of Janu- growing African American population, dedicated service.∑ ary 30, 1975 as modified by the order of April

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00069 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2576 CONGRESSIONAL RECORD — SENATE April 11, 2002 11, 1986, to the Committees on Appropria- transmitting, a draft of proposed legislation EC–6465. A communication from the Sec- tions; the Budget; Agriculture, Nutrition, entitled ‘‘Repeal of Various Reports Re- retary of Health and Human Services, trans- and Forestry; Armed Services; Banking, quired of the Department of Defense’’; to the mitting, pursuant to law, a report entitled Housing, and Urban Affairs; Commerce, Committee on Armed Services. ‘‘Appropriateness of Establishing Minimum Science, and Transportation; Energy and EC–6451. A communication from the Sec- Staffing Ratios in Nursing Homes’’; to the Natural Resources; Environment and Public retary of Defense, transmitting, the report of Committee on Finance. Works; Finance; Foreign Relations; Govern- a retirement; to the Committee on Armed EC–6466. A communication from the Gen- mental Affairs; Health, Education, Labor, Services. eral Counsel for the Department of the and Pensions; the Judiciary; Rules and Ad- EC–6452. A communication from the Sec- Treasury, transmitting, a draft of proposed ministration; Small Business and Entrepre- retary of Defense, transmitting, the report of legislation entitled ‘‘Rural Electrification neurship; and Veterans’ Affairs. a retirement; to the Committee on Armed Act Amendments of 2001’’; to the Committee EC–6441. A communication from the Dep- Services. on Agriculture, Nutrition, and Forestry. uty Director, Congressional Budget Office, EC–6453. A communication from the Presi- EC–6467. A communication from the Ad- transmitting, pursuant to law, the Seques- dent and Chief Executive Officer of the Over- ministrator of the Agricultural Marketing tration Preview Report for Fiscal Year 2003; seas Private Investment Corporation, trans- Service, Fruit and Vegetable Programs, De- referred jointly, pursuant to the order of mitting, a draft of proposed legislation enti- partment of Agriculture, transmitting, pur- January 30, 1975 as modified by the order of tled ‘‘Continuation of Health Benefits Cov- suant to law, the report of a rule entitled April 11, 1986, to the Committees on the erage for Individuals Enrolled in a Plan Ad- ‘‘Oranges, Grapefruit, Tangerines, and Tan- Budget; and Governmental Affairs. ministered by the Overseas Private Invest- gelos Grown in Florida; Modifying Proce- EC–6442. A communication from the Assist- ment Corporation’’; to the Committee on dures and Establishing Regulations to Limit ant Secretary for Administration and Man- Governmental Affairs. the Volume of Small Red Seedless Grape- agement, Department of Labor, transmit- EC–6454. A communication from the Sec- fruit’’ (Doc. No. FV01–905–2 IFR) received on ting, pursuant to law, the report of a nomi- retary of Health and Human Services, trans- April 8, 2002; to the Committee on Agri- nation confirmed for the position of Assist- mitting, pursuant to law, the Department’s culture, Nutrition, and Forestry. ant Secretary for Veterans’ Employment and Accountability Report for Fiscal Year 2001; EC–6468. A communication from the Ad- Training, received on March 21, 2002; referred to the Committee on Governmental Affairs. ministrator, Agricultural Marketing Serv- jointly, pursuant to the order of January 30, EC–6455. A communication from the Chair- ice, Cotton Program, Department of Agri- culture, transmitting, pursuant to law, the 1975 as modified by the order of April 11, 1986, man of the Council of the District of Colum- report of a rule entitled ‘‘Final Rule; 2001 to the Committees on Health, Education, bia, transmitting, pursuant to law, a report Final Amendment to Cotton Board Rules and Labor, and Pensions; and Veterans’ Affairs. on D.C. Act 14–312, ‘‘Sidewalk and Curbing EC–6443. A communication from the Assist- Assessment Amendment Act of 2002’’; to the Regulations Adjusting Supplemental Assess- ant Attorney General, Office of Legislative Committee on Governmental Affairs. ment of Imports’’ (CN–01–001) received on Affairs, Department of Justice, transmit- EC–6456. A communication from the Chair- April 8, 2002; to the Committee on Agri- culture, Nutrition, and Forestry. ting, a draft of proposed legislation to estab- man of the Council of the District of Colum- EC–6469. A communication from the Ad- lish the crime of attempted international pa- bia, transmitting, pursuant to law, a report on D.C. Act 14–317, ‘‘Emergency Management ministrator, Livestock and Seed Program, rental kidnapping, and for other purposes; to Agricultural Marketing Service, Department Assistance Compact Temporary Act of 2002’’; the Committee on the Judiciary. of Agriculture, transmitting, pursuant to EC–6444. A communication from Director, to the Committee on Governmental Affairs. law, the report of a rule entitled ‘‘Pork Pro- Policy Directives and Instructions Branch, EC–6457. A communication from the Chair- motion, Research, and Consumer Informa- Immigration and Naturalization Service, De- man of the Council of the District of Colum- tion Order—Increase in Importer Assess- partment of Justice, transmitting, pursuant bia, transmitting, pursuant to law, a report ments’’ (Doc. No. LS–01–02) received on April on D.C. Act 14–318, ‘‘Interim Disability As- to law, the report of a rule entitled ‘‘Requir- 8, 2002; to the Committee on Agriculture, Nu- sistance Temporary Amendment Act of ing Change of Status from B to F–1 or M–1 trition, and Forestry. Nonimmigrant Prior to Pursuing a Course of 2002’’; to the Committee on Governmental EC–6470. A communication from the Ad- Study’’ ((RIN1115–AG60)(INS No. 2195–02)) re- Affairs. ministrator, Agricultural Market Service, EC–6458. A communication from the Chair- ceived on April 9, 2002; to the Committee on Poultry Programs, Department of Agri- the Judiciary. man of the Council of the District of Colum- culture, transmitting, pursuant to law, the EC–6445. A communication from Assistant bia, transmitting, pursuant to law, a report report of a rule entitled ‘‘Increase in Fees Secretary for Legislative Affairs, Depart- on D.C. Act 14–319, ‘‘Education and Examina- and Charges for Egg, Poultry, and Rabbit ment of State, transmitting, pursuant to tion Exemption for Respiratory Care Practi- Grading’’ (Doc. No. PY–01–005) received on law, the texts of ILO Convention No. 184 and tioners Temporary Amendment Act of 2002’’; April 8, 2002; to the Committee on Agri- Recommendation No. 192 concerning Safety to the Committee on Governmental Affairs. culture, Nutrition, and Forestry. and Health in Agriculture; to the Committee EC–6459. A communication from the Chair- EC–6471. A communication from the Ad- on Foreign Relations. man of the Council of the District of Colum- ministrator, Agricultural Marketing Serv- EC–6446. A communication from the Sec- bia, transmitting, pursuant to law, a report ice, Fruit and Vegetable Programs, Depart- retary of Veterans’ Affairs, transmitting, a on D.C. Act 14–316, ‘‘Tax Increment Financ- ment of Agriculture, transmitting, pursuant draft of proposed legislation to enhance a ing Temporary Amendment Act of 2002’’; to to law, the report of a rule entitled ‘‘Nec- number of veterans’ programs and the abil- the Committee on Governmental Affairs. tarines and Peaches Grown in California; Re- ity to manage them; to the Committee on EC–6460. A communication from the Chair- vision of Handling Requirements for Fresh Veterans’ Affairs. man of the Council of the District of Colum- Nectarines and Peaches’’ (Doc. No. FV02–916– EC–6447. A communication from the Attor- bia, transmitting, pursuant to law, a report 1 IFR) received on April 8, 2002; to the Com- ney General, Department of Justice, trans- on D.C. Act 14–315, ‘‘Rehabilitation Services mittee on Agriculture, Nutrition, and For- mitting, a draft of proposed legislation enti- Program Establishment Temporary Act of estry. tled ‘‘Settlement of Litigation and Prompt 2002’’; to the Committee on Governmental EC–6472. A communication from the Prin- Utilization of Wireless Spectrum’’; to the Affairs. cipal Deputy Associate Administrator for Committee on Commerce, Science, and EC–6461. A communication from the Chair- the Environmental Protection Agency, Transportation. man of the Council of the District of Colum- transmitting, pursuant to law, the report of EC–6448. A communication from the Sec- bia, transmitting, pursuant to law, a report a rule entitled ‘‘Lysophospha retary of Energy, transmitting, a draft of on D.C. Act 14–311, ‘‘Misdemeanor Jury Trial tidelethanolamine (LPE); Exemption from proposed legislation to increase the bor- Act of 2002’’; to the Committee on Govern- the Requirement of Tolerance’’ (FRL6821–4) rowing authority of the Bonneville Power mental Affairs. received on April 9, 2002; to the Committee Administration, and to authorize Federal EC–6462. A communication from the Chair- on Agriculture, Nutrition, and Forestry. power marketing administrations to fund di- man of the Council of the District of Colum- EC–6473. A communication from the Sec- rectly Army Corps of Engineers operation bia, transmitting, pursuant to law, a report retary of Health and Human Services, trans- and maintenance activities, and for other on D.C. Act 14–313, ‘‘Department of Transpor- mitting, pursuant to law, the Report on the purposes; to the Committee on Energy and tation Establishment Act of 2002’’; to the Assets for Independence Demonstration Natural Resources. Committee on Governmental Affairs. (IDA) Program for Fiscal Year 1999; to the EC–6449. A communication from the Sec- EC–6463. A communication from the Chair- Committee on Health, Education, Labor, and retary of Energy, transmitting, a draft of man of the Council of the District of Colum- Pensions. proposed legislation approving the site at bia, transmitting, pursuant to law, a report EC–6474. A communication from the Sec- Yucca Mountain, Nevada, for the develop- on D.C. Act 14–321, ‘‘Tax Increment Financ- retary of Health and Human Services, trans- ment of a repository for the disposal of spent ing Amendment Act of 2002’’; to the Com- mitting, pursuant to law, the Final Report of high-level radioactive waste and spent nu- mittee on Governmental Affairs. the White House Commission on Complemen- clear fuel, pursuant to the Nuclear Waste EC–6464. A communication from the Sec- tary and Alternative Medicine Policy; to the Policy Act of 1982; to the Committee on En- retary of Agriculture, transmitting, pursu- Committee on Health, Education, Labor, and ergy and Natural Resources. ant to law, the Federal Managers’ Financial Pensions. EC–6450. A communication from the Gen- Integrity Act Report for Fiscal Year 2001; to EC–6475. A communication from the Assist- eral Counsel of the Department of Defense, the Committee on Governmental Affairs. ant Secretary, Pension and Welfare Benefits

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00070 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2577 Administration, Department of Labor, trans- EXECUTIVE REPORTS OF By Mr. TORRICELLI: mitting, pursuant to law, the report of a rule COMMITTEES S. 2094. A bill to suspend temporarily the entitled ‘‘Final Rules Relating to Use of duty on artichokes that are prepared or pre- Electronic Communication and Record- The following executive reports of served with vinegar of acetic acid; to the keeping Technologies by Employee Pension committees were submitted: Committee on Finance. and Welfare Benefit Plans’’ (RIN1210–AA71) By Mr. LEAHY for the Committee on the By Mr. TORRICELLI: received on April 9, 2002; to the Committee Judiciary. S. 2095. A bill to suspend temporarily the on Health, Education, Labor, and Pensions. Terrence L. O’Brian, of Wyoming, to be duty on benzenepropanal, 4(1,1- EC–6476. A communication from the Ad- United States Circuit Judge for the Tenth Dimethylethy)-Alpha-Methyl; to the Com- ministrator, General Service Administra- Circuit. mittee on Finance. tion, transmitting, a draft of proposed legis- Lance M. Africk, of Louisiana, to be By Mr. TORRICELLI: lation to amend the Public Buildings Act of United States District Judge for the Eastern S. 2096. A bill to suspend temporarily the 1959, as amended, to raise certain prospectus District of Louisiana. duty on certain light absorbing photo dyes; to the Committee on Finance. submission thresholds, and for other pur- Legrome D. Davis, of Pennsylvania, to be By Mr. TORRICELLI: poses; to the Committee on Environment and United States District Judge for the Eastern District of Pennsylvania. S. 2097. A bill to extend temporarily sus- Public Works. pension of duty on certain imaging chemi- EC–6477. A communication from the Prin- Patrick E. McDonald, of Idaho, to be cals; to the Committee on Finance. cipal Deputy Associate Administrator of the United States Marshal for the District of By Mr. TORRICELLI: Environmental Protection Agency, transmit- Idaho for the term of four years. Warren Douglas Anderson, of South Da- S. 2098. A bill to suspend temporarily the ting, pursuant to law, the report of a rule en- duty on artichokes that are prepared or pre- titled ‘‘Approval and Promulgation of Imple- kota, to be United States Marshal for the District of South Dakota for the term of four served without vinegar or acetic acid; to the mentation Plans; Illinois’’ (FRL7159–9) re- Committee on Finance. ceived on April 9, 2002; to the Committee on years. James Joseph Parmley, of New York, to be By Mrs. FEINSTEIN: Environment and Public Works. S. 2099. A bill to suspend temporarily the United States Marshal for the Northern Dis- EC–6478. A communication from the Prin- duty on bags for certain toys; to the Com- trict of New York for the term of four years. cipal Deputy Associate Administrator of the mittee on Finance. Environmental Protection Agency, transmit- J. Robert Flores, of Virginia, to be Admin- istrator of the Office of Juvenile Justice and By Mrs. FEINSTEIN: ting, pursuant to law, the report of a rule en- S. 2100. A bill to suspend temporarily the Delinquency Prevention. titled ‘‘Approval and Promulgation of Imple- duty on cases for certain toys; to the Com- Scott M. Burns, of Utah, to be Deputy Di- mentation Plans; State of Missouri’’ mittee on Finance. rector for State and Local Affairs, Office of (FRL7170–6) received on April 9, 2002; to the By Mrs. FEINSTEIN: National Drug Control Policy. S. 2101. A bill to suspend temporarily the Committee on Environment and Public John B. Brown, III, of Texas, to be Deputy Works. duty on cases for certain children’s products; Administrator of Drug Enforcement. to the Committee on Finance. EC–6479. A communication from the Prin- Michael Taylor Shelby, of Texas, to be cipal Deputy Associate Administrator of the By Mrs. FEINSTEIN: United States Attorney for the Southern S. 2102. A bill to suspend temporarily the Environmental Protection Agency, transmit- District of Texas for the term of four years. ting, pursuant to law, the report of a rule en- duty on certain children’s products; to the Jane J. Boyle, of Texas, to be United Committee on Finance. titled ‘‘Approval and Promulgation of State States Attorney for the Northern District of Plans for Designated Facilities and Pollut- By Mrs. FEINSTEIN: Texas for the term of four years. S. 2103. A bill to suspend temporarily the ants: Rhode Island; Negative Declarations’’ Matthew D. Orwig, of Texas, to be United (FRL7170–1) received on April 9, 2002; to the duty on certain children’s products; to the States Attorney for the Eastern District of Committee on Finance. Committee on Environment and Public Texas for the term of four years. Works. By Mrs. BOXER: James B. Comey, of New York, to be S. 2104. A bill to establish election day in EC–6480. A communication from the Prin- United States Attorney for the Southern Presidential election years as a legal public cipal Deputy Associate Administrator of the District of New York for the term of four holiday; to the Committee on the Judiciary. Environmental Protection Agency, transmit- years. By Mr. INHOFE: ting, pursuant to law, the report of a rule en- Thomas A. Marino, of Pennsylvania, to be S. 2105. A bill to amend the Trade Act of titled ‘‘Revisions to the California State Im- United States Attorney for the Middle Dis- 1974 to extend the Generalized System of plementation Plan, Lake County Air Quality trict of Pennsylvania for the term of four Preferences; to the Committee on Finance. Management District’’ (FRL7165–4) received years. By Mr. THOMAS (for himself and Mr. on April 9, 2002; to the Committee on Envi- (Nominations without an asterisk ENZI): ronment and Public Works. S. 2106. A bill to suspend temporarily the EC–6481. A communication from the Prin- were reported with the recommenda- tion that they be confirmed.) duty on certain acrylic fiber tow; to the cipal Deputy Associate Administrator of the Committee on Finance. Environmental Protection Agency, transmit- f By Mr. ROBERTS: ting, pursuant to law, the report of a rule en- INTRODUCTION OF BILLS AND S. 2107. A bill to require the conveyance of titled ‘‘Significant New Uses of Certain the Sunflower Army Ammunition Plant, Chemical Substances’’ (FRL6805–1) received JOINT RESOLUTIONS Kansas; to the Committee on Armed Serv- on April 9, 2002; to the Committee on Envi- The following bills and joint resolu- ices. ronment and Public Works. tions were introduced, read the first By Ms. STABENOW (for herself, Mr. EC–6482. A communication from the Execu- and second times by unanimous con- DOMENICI, and Mr. LEVIN): tive Vice President, Communications and sent, and referred as indicated: S. 2108. A bill to amend the Agriculture Government Relations, Tennessee Valley Au- and Consumer Protection Act of 1973 to as- thority, transmitting, pursuant to law, the By Mr. TORRICELLI: sist the neediest of senior citizens by modi- Authority’s Statistical Summary for Fiscal S. 2089. A bill to combat criminal misuse of fying the eligibility criteria for supple- Year 2001; to the Committee on Environment explosives; to the Committee on the Judici- mental foods provided under the commodity and Public Works. ary. supplemental food program to take into ac- By Mr. TORRICELLI: f count the extraordinarily high out-of-pocket S. 2090. A bill to eliminate any limitation medical expenses that senior citizens pay, REPORTS OF COMMITTEES on indictment for sexual offenses and make and for other purposes; to the Committee on awards to States to reduce their DNA case- The following reports of committees Agriculture, Nutrition, and Forestry. work backlogs; to the Committee on the Ju- By Mr. BAUCUS: were submitted: diciary. S. 2109. A bill to suspend temporarily the By Mr. CONRAD, from the Committee on By Mr. TORRICELLI: duty on chondroitin sulfate; to the Com- the Budget: S. 2091. A bill to amend title 18, United mittee on Finance. Report to accompany S. Con. Res. 100, An States Code, to prohibit gunrunning, and By Ms. COLLINS (for herself and Mr. original concurrent resolution setting forth provide mandatory minimum penalties for NELSON of Nebraska): the congressional budget for the United crimes related to gunrunning; to the Com- S. 2110. A bill to temporarily increase the States Government for fiscal year 2003 and mittee on the Judiciary. Federal medicare assistance percentage for setting forth the appropriate budgetary lev- By Mr. TORRICELLI: the medicaid program; to the Committee on els for each of the fiscal years 2004 through S. 2092. A bill to extend temporarily sus- Finance. 2012. (Rept. No. 107–141). pension of duty on 4,4’difluorobenzophenone; By Mr. GRASSLEY: By Mr. LEAHY, from the Committee on to the Committee on Finance. S. 2111. A bill to suspend temporarily the the Judiciary, with an amendment in the na- By Mr. TORRICELLI (for himself and duty on saccharose used for nonfood, non- ture of a substitute: Mr. CORZINE): nutritional purposes, as a seed kernel and in S. 924: A bill to provide reliable officers, S. 2093. A bill to suspend temporarily the additional layers in an industrial granula- technology, education, community prosecu- duty on Ezetimibe; to the Committee on Fi- tion process for biocatalyst production; to tors, and training in our neighborhoods. nance. the Committee on Finance.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00071 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2578 CONGRESSIONAL RECORD — SENATE April 11, 2002 By Mr. GRASSLEY: winning the 2002 NCAA Division I Wrestling (Mrs. FEINSTEIN) was added as a co- S. 2112. A bill to suspend temporarily the National Championship; considered and sponsor of S. 1042, a bill to amend title duty on certain filter media; to the Com- agreed to. 38, United States Code, to improve ben- mittee on Finance. f efits for Filipino veterans of World War By Mr. ROCKEFELLER (for himself, II, and for other purposes. Mr. BYRD, and Mr. SPECTER): ADDITIONAL COSPONSORS S. 2113. A bill to reduce temporarily the S. 1310 duty on N-Cyclohexylthiophthalimide; to the S. 166 At the request of Mr. REID, the name Committee on Finance. At the request of Mrs. FEINSTEIN, the of the Senator from Nevada (Mr. EN- By Mr. VOINOVICH (for himself and name of the Senator from Missouri SIGN) was added as a cosponsor of S. Mr. DEWINE): (Mrs. CARNAHAN) was added as a co- 1310, a bill to provide for the sale of S. 2114. A bill to authorize the Attorney sponsor of S. 166, a bill to limit access certain real property in the Newlands General to carry out a racial profiling edu- to body armor by violent felons and to cating and awareness program within the Project, Nevada, to the city of Fallon, Department of Justice and to assist state facilitate the donation of Federal sur- Nevada. and local law enforcement agencies in imple- plus body armor to State and local law S. 1346 menting such programs; to the Committee enforcement agencies. At the request of Mr. SESSIONS, the on the Judiciary. S. 267 name of the Senator from Nevada (Mr. By Mr. CLELAND: At the request of Mr. AKAKA, the ENSIGN) was added as a cosponsor of S. S. 2115. A bill to amend the Public Health name of the Senator from Illinois (Mr. Act to create a Center for Bioterrorism Pre- 1346, a bill to amend the Federal Food, paredness within the Centers for Disease FITZGERALD) was added as a cosponsor Drug, and Cosmetic Act with regard to Control and Prevention; to the Committee of S. 267, a bill to amend the Packers new animal drugs, and for other pur- on Health, Education, Labor, and Pensions. and Stockyards Act of 1921, to make it poses. By Mr. KERRY: unlawful for any stockyard owner, S. 1408 S. 2116. A bill to reform the program of market agency, or dealer to transfer or At the request of Mr. ROCKEFELLER, block grants to States for temporary assist- market nonambulatory livestock, and the name of the Senator from Michigan ance for needy families to help States ad- for other purposes. dress the importance of adequate, affordable (Ms. STABENOW) was added as a cospon- housing in promoting family progress to- S. 349 sor of S. 1408, a bill to amend title 38, wards self-sufficiency, and for other pur- At the request of Mr. HUTCHINSON, United States Code, to standardize the poses; to the Committee on Finance. the name of the Senator from Missouri income threshold for copayment for By Mr. DODD (for himself, Ms. SNOWE, (Mrs. CARNAHAN) was added as a co- outpatient medications with the in- Mr. JEFFORDS, Mr. DEWINE, Mr. sponsor of S. 349, a bill to provide funds come threshold for inability to defray BREAUX, Mr. REED, and Mr. ROCKE- to the National Center for Rural Law necessary expense of care, and for FELLER): Enforcement, and for other purposes. S. 2117. A bill to amend the Child Care and other purposes. Development Block Grant Act of 1990 to re- S. 414 S. 1662 authorize the Act, and for other purposes; to At the request of Mr. CLELAND, the At the request of Mr. HUTCHINSON, the Committee on Health, Education, Labor, name of the Senator from California the name of the Senator from New and Pensions. (Mrs. BOXER) was added as a cosponsor Hampshire (Mr. SMITH) was added as a By Mr. JEFFORDS: of S. 414, a bill to amend the National cosponsor of S. 1662, a bill to amend the S. 2118. A bill to amend the Toxic Sub- Telecommunications and Information stances Control Act and the Federal Insecti- Internal Revenue Code of 1986 to allow cide, Fungicide, and Rodenticide Act to im- Administration Organization Act to es- Coverdell educational savings accounts plement the Stockholm Convention on Per- tablish a digital network technology to be used for homeschooling expenses. sistent Organic Pollutants and the Protocol program, and for other purposes. S. 1686 on Persistent Organic Pollutants to the Con- S. 627 At the request of Mr. KENNEDY, the vention on Long-Range Transboundary Air At the request of Mr. GRASSLEY, the names of the Senator from New Jersey Pollution; to the Committee on Environment name of the Senator from Virginia (Mr. and Public Works. (Mr. TORRICELLI) and the Senator from By Mr. GRASSLEY (for himself and WARNER) was added as a cosponsor of S. New Jersey (Mr. CORZINE) were added Mr. BAUCUS): 627, a bill to amend the Internal Rev- as cosponsors of S. 1686, a bill to amend S. 2119. A bill to amend the Internal Rev- enue Code of 1986 to allow individuals a title XVIII of the Social Security Act enue Code of 1986 to provide for the tax deduction for qualified long-term care to provide for patient protection by treatment of inverted corporate entities and insurance premiums, use of such insur- limiting the number of mandatory of transactions with such entities, and for ance under cafeteria plans and flexible overtime hours a nurse may be re- other purposes; to the Committee on Fi- spending arrangements, and a credit quired to work in certain providers of nance. for individuals with long-term care services to which payments are made f needs. under the medicare program. SUBMISSION OF CONCURRENT AND S. 694 S. 1777 SENATE RESOLUTIONS At the request of Mr. LEAHY, the At the request of Mrs. CLINTON, the The following concurrent resolutions name of the Senator from New York name of the Senator from Oregon (Mr. and Senate resolutions were read, and (Mrs. CLINTON) was added as a cospon- SMITH) was added as a cosponsor of S. referred (or acted upon), as indicated: sor of S. 694, a bill to amend the Inter- 1777, a bill to authorize assistance for nal Revenue Code of 1986 to provide individuals with disabilities in foreign By Mr. DAYTON (for himself and Mr. that a deduction equal to fair market countries, including victims of land- WELLSTONE): S. Res. 236. A resolution commending the value shall be allowed for charitable mines and other victims of civil strife University of Minnesota-Duluth Bulldogs for contributions of literary, musical, ar- and warfare, and for other purposes. winning the 2002 National Collegiate Ath- tistic, or scholarly compositions cre- At the request of Mr. CHAFEE, his letic Association Division I Women’s Ice ated by the donor. name was added as a cosponsor of S. Hockey National Championship; considered S. 885 1777, supra. and agreed to. At the request of Mr. HUTCHINSON, S. 1967 By Mr. DAYTON (for himself and Mr. WELLSTONE): the name of the Senator from Virginia At the request of Mr. KERRY, the S. Res. 237. A resolution commending the (Mr. WARNER) was added as a cosponsor name of the Senator from West Vir- University of Minnesota Golden Gophers for of S. 885, a bill to amend title XVIII of ginia (Mr. ROCKEFELLER) was added as winning the 2002 National Collegiate Ath- the Social Security Act to provide for a cosponsor of S. 1967, a bill to amend letic Association Division I Men’s Hockey national standardized payment title XVIII of the Social Security Act National Championship; considered and amounts for inpatient hospital services to improve outpatient vision services agreed to. furnished under the medicare program. under part B of the medicare program. By Mr. WELLSTONE (for himself and S. 1042 S 2009 Mr. DAYTON): . S. Res. 238. A resolution commending the At the request of Mr. INOUYE, the At the request of Mr. DURBIN, the University of Minnesota Golden Gophers for name of the Senator from California name of the Senator from Washington

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00072 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2579 (Mrs. MURRAY) was added as a cospon- committing their crime. This is true S. 2090 sor of S. 2009, a bill to amend the Pub- even if overwhelming evidence of the Be it enacted by the Senate and House of Rep- lic Health Service Act to provide serv- offender’s guilt, such as a DNA match resentatives of the United States of America in ices for the prevention of family vio- with evidence taken from the crime Congress assembled, lence. scene, is later discovered. Some States, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Sexual As- S. 2039 including my home State of New Jer- sault Prosecution Act of 2002’’. At the request of Mr. DURBIN, the sey, have recognized the injustice pre- SEC. 2. SEXUAL OFFENSE LIMITATION. names of the Senator from Oklahoma sented by this situation and have al- (a) IN GENERAL.—Chapter 213 of title 18, (Mr. INHOFE), the Senator from Lou- ready abolished their statutes of limi- United States Code, is amended— isiana (Mr. BREAUX), the Senator from tations on sexual assault crimes, and (1) in section 3283, by striking ‘‘sexual or’’; and North Dakota (Mr. CONRAD), the Sen- many other States are considering (2) by adding at the end the following: ator from Hawaii (Mr. AKAKA), and the similar measures. Given the power and ‘‘§ 3296. Sexual offenses Senator from New Mexico (Mr. BINGA- precision of DNA evidence, it is now ‘‘An indictment for any offense committed MAN) were added as cosponsors of S. time that the Federal Government abolish the current statute of limita- in violation of chapter 109A of this title may 2039, a bill to expand aviation capacity be found at any time without limitation.’’. in the Chicago area. tions on Federal sexual assault crimes. (b) TECHNICAL AND CONFORMING AMEND- S. 2051 The precision with which DNA evi- MENTS.—The table of sections for chapter 213 dence can identify a criminal assailant At the request of Mr. REID, the of title 18, United States Code, is amended by names of the Senator from West Vir- has increased dramatically over the adding at the end the following: past couple decades. Because of its ‘‘3296. Sexual offenses.’’. ginia (Mr. ROCKEFELLER) and the Sen- exactness, DNA evidence is now rou- SEC. 3. AWARDS TO STATES TO REDUCE DNA ator from Louisiana (Mr. BREAUX) were CASEWORK BACKLOG. added as cosponsors of S. 2051, a bill to tinely collected by law enforcement personnel in the course of investigating (a) DEVELOPMENT OF PLAN.— remove a condition preventing author- (1) IN GENERAL.—Not later than 45 days ity for concurrent receipt of military many crimes, including sexual assault after the date of enactment of this Act, the retired pay and veterans’ disability crimes. The DNA profile of evidence Director of the Federal Bureau of Investiga- compensation from taking affect, and collected at a sexual assault crime tion, in coordination with the Assistant At- for other purposes. scene can be compared to the DNA pro- torney General of the Office of Justice Pro- files of convicted criminals, or the pro- grams of the Department of Justice, and S. 2075 file of a particular suspect, in order to after consultation with representatives of At the request of Mr. BAUCUS, the determine who committed the crime. States and private forensic laboratories, name of the Senator from South Da- shall develop a plan to grant voluntary Moreover, because of the longevity of awards to States to facilitate DNA analysis kota (Mr. JOHNSON) was added as a co- DNA evidence, it can be used to posi- sponsor of S. 2075, a bill to facilitate of all casework evidence of unsolved crimes. tively identify a rapist many years (2) OBJECTIVE.—The objective of the plan the availability of electromagnetic after the actual sexual assault. developed under paragraph (1) shall be to— spectrum for the deployment of wire- The enormous advancements in DNA (A) effectively expedite the analysis of all less based services in rural areas, and science have greatly expanded law en- casework evidence of unsolved crimes in an for other purposes. forcement’s ability to investigate and efficient and effective manner; and AMENDMENT NO. 3030 prosecute sexual assault crimes. Unfor- (B) provide for the entry of DNA profiles into the combined DNA Indexing System At the request of Mrs. FEINSTEIN, her tunately, the law has not kept pace (‘‘CODIS’’). name was added as a cosponsor of with science. Given the precise accu- (b) AWARD CRITERIA.—The Federal Bureau amendment No. 3030 proposed to S. 517, racy and reliability of DNA testing, of Investigation, in coordination with the a bill to authorize funding the Depart- however, the legal and moral justifica- Assistant Attorney General of the Office of ment of Energy to enhance its mission tions for continuing to impose a stat- Justice Programs of the Department of Jus- areas through technology transfer and ute of limitations on sexual assault tice, shall develop criteria for the granting partnerships for fiscal years 2002 of awards under this section including— crimes are extremely weak. To that (1) the number of unsolved crimes awaiting through 2006, and for other purposes. end, I am introducing the ‘‘Sexual As- DNA analysis in the State that is applying AMENDMENT NO. 3094 sault Prosecution Act’’ which will for an award under this section; and At the request of Mr. DURBIN, the eliminate the statue of limitations for (2) the development of a comprehensive names of the Senator from New York sexual assault crimes. This legislation plan to collect and analyze DNA evidence by (Mr. SCHUMER), the Senator from will not affect the burdens of proof and the State that is applying for an award under this section. Vermont (Mr. JEFFORDS), and the Sen- the government will still have to prove (c) GRANTING OF AWARDS.—The Federal Bu- ator from Michigan (Ms. STABENOW) guilt beyond a reasonable doubt before reau of Investigation, in coordination with were added as cosponsors of amend- any person could be convicted of a the Assistant Attorney General of the Office ment No. 3094 proposed to S. 517, a bill crime. of Justice Programs of the Department of to authorize funding the Department of Currently, the statue of limitations Justice, shall— Energy to enhance its mission areas for arson and financial institution (1) develop applications for awards to be through technology transfer and part- crimes is 10 years and is 20 years for granted to States under this section; crimes involving the theft of major (2) consider all applications submitted by nerships for fiscal years 2002 through States; and 2006, and for other purposes. artwork. If it made sense to extend the (3) disburse all awards under this section. f traditional five-year limitations period (d) AWARD CONDITIONS.—States receiving for these offenses, surely it makes awards under this section shall— STATEMENTS ON INTRODUCED sense to do so for sexual assault (1) require that each laboratory performing BILLS AND JOINT RESOLUTIONS crimes, particularly when DNA tech- DNA analysis satisfies quality assurance By Mr. TORRICELLI: nology makes it possible to identify an standards and utilizes state-of-the-art DNA S. 2090. A bill to eliminate any limi- testing methods, as set forth by the Federal offender many years after the commis- Bureau of Investigation in coordination with tation on indictment for sexual of- sion of the crime. By eliminating this the Assistant Attorney General of the Office fenses and make awards to States to ticking clock, we can see to if that no of Justice Programs of the Department of reduce their DNA casework backlogs; victim of sexual assault is denied jus- Justice; to the Committee on the Judiciary. tice simply because the clock ran out. (2) ensure that each DNA sample collected Mr. TORRICELLI. Madam President, I look forward to working with each and analyzed be made available only— I rise today to introduce the Sexual As- and every one of you in order to get (A) to criminal justice agencies for law en- sault Prosecution Act. This legislation this legislation enacted into law. forcement purposes; will ensure that no rapist will evade I ask unanimous consent that the (B) in judicial proceedings if otherwise ad- prosecution when there is reliable evi- missible; text of the legislation be printed in the (C) for criminal defense purposes, to a dence of their guilt. RECORD. criminal defendant who shall have access to As Federal law is written today, a There being no objection, the bill was samples and analyses performed in connec- rapist can walk away scot-free if they ordered to be printed in the RECORD, as tion with any case in which such defendant are not charged within five years of follows: is charged; or

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00073 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2580 CONGRESSIONAL RECORD — SENATE April 11, 2002 (D) if personally identifiable information is We can never rest when it comes to fer of firearm to person from another State), removed, for— gun violence. This problem will not section 922(a)(6) (relating to false statements (i) a population statistics database; just go away, and we cannot standby made in acquisition of firearm or ammuni- (ii) identification research and protocol de- and watch as innocent men, women and tion from licensee), section 922(d) (relating velopment purposes; or to disposition of firearm or ammunition to a (iii) quality control purposes; and children die at the hands of criminals prohibited person), section 922(g) (relating to (3) match the award by spending 15 percent armed with these guns. I urge my col- receipt of firearm or ammunition by a pro- of the amount of the award in State funds to leagues to support this bill, and I ask hibited person), section 922(h) (relating to facilitate DNA analysis of all casework evi- unanimous consent that the text of the possession of firearm or ammunition on be- dence of unsolved crimes. legislation be printed in the RECORD. half of a prohibited person), section 922(i) (e) AUTHORIZATION OF APPROPRIATIONS.— There being no objection, the bill was (relating to transportation of stolen firearm There are authorized to be appropriated to ordered to be printed in the RECORD, as or ammunition), section 922(j) (relating to the Department of Justice $15,000,000 for follows: receipt of stolen firearm or ammunition), each of fiscal years 2003 through 2006, for section 922(k) (relating to transportation or awards to be granted under this section. S. 2091 receipt of firearm with altered serial num- Be it enacted by the Senate and House of Rep- ber), section 922(z) (relating to gunrunning), By Mr. TORRICELLI: resentatives of the United States of America in section 924(b) (relating to shipment or re- S. 2091. A bill to amend title 18, Congress assembled, ceipt of firearm for use in a crime),’’. United States Code to prohibit SECTION 1. SHORT TITLE. (d) ENFORCEMENT.—Notwithstanding any gunrunning, and provide mandatory This Act may be cited as the ‘‘Gun Kingpin limitations imposed by or under the Federal minimum penalties for crimes related Penalty Act’’. Workforce Restructuring Act (108 Stat. 111), to gunrunning; to the Committee on SEC. 2. GUN KINGPIN PENALTIES. the Secretary of the Treasury may hire and employ 200 personnel, in addition to any per- the Judiciary. (a) PROHIBITION AGAINST GUNRUNNING.— sonnel hired and employed by the Depart- Mr. TORRICELLI. Madam President, Section 922 of title 18, United States Code, is ment of the Treasury under other law, to en- I rise today to introduce the Gun King- amended by adding at the end the following: force the amendments made by this section. pin Penalty Act. In introducing this ‘‘(z) It shall be unlawful for a person not li- bill, I hope that my colleagues will censed under section 923 to ship or transport, By Ms. STABENOW (for herself, Mr. soon join me in sending a clear and or conspire to ship or transport, 5 or more DOMENICI, and Mr. LEVIN): strong signal to gunrunners, your ac- firearms from a State into another State during any period of 12 consecutive months, tions will no longer be tolerated. S. 2108. A bill to amend the Agri- with the intent to transfer all of such fire- culture and Consumer Protection Act Data gathered by the Bureau of Alco- arms to another person who is not so li- hol, Tobacco and Firearms clearly censed.’’. of 1973 to assist the neediest of senior demonstrates what many of us already (b) MANDATORY MINIMUM PENALTIES FOR citizens by modifying the eligibility know all too well, several of our Na- CRIMES RELATED TO GUNRUNNING.—Section criteria for supplemental foods pro- tion’s highways have become pipelines 924 of title 18, United States Code, is amend- vided under the commodity supple- for merchants of death who deal in ille- ed by adding at the end the following: mental food program to take into ac- gal firearms. ‘‘(p)(1)(A)(i) Except as otherwise provided count the extraordinarily high out-of- My own State of New Jersey is proud in this subsection, whoever violates section pocket medical expenses that senior to have some of the toughest gun con- 922(z) shall be imprisoned not less than 3 citizens pay, and for other purposes; to years, and may be fined under this title. trol laws in the Nation. But for far too ‘‘(ii) Except as otherwise provided in this the Committee on Agriculture, Nutri- long, the courageous efforts of New subsection, in the case of a person’s second tion, and Forestry. Jersey citizens in enacting these tough or subsequent violation of section 922(a), the Ms. STABENOW. Madam President, I laws have been weakened by out of term of imprisonment shall be not less than rise today to introduce the Senior Nu- State gunrunners who treat our State 5 years. trition Act that will help prevent our like their own personal retail outlet. ‘‘(B) If a firearm which is shipped or trans- seniors from having to make the choice ATF data shows that in 1996 New Jer- ported in violation of section 922(z) is used between food and medicine as they try sey exported fewer guns used in crimes, subsequently by the person to whom the fire- to balance their budgets. per capita, than any other State, less arm was shipped or transported, or by any That, is the most horrible of choices. than one gun per 100,000 residents, or 75 person within 3 years after the shipment or The problem, is this: transportation, in an offense in which a per- The average senior citizen pays over total guns. Meanwhile, an incredible son is killed or suffers serious bodily injury, number of guns used to commit crimes the term of imprisonment for the violation $1,000 per year on prescription drugs. in New Jersey came from out of State, shall be not less than 10 years. Many of these seniors, the majority of 944 guns were imported, a net import of ‘‘(C) If more than 50 firearms are the sub- whom are widows, depend entirely on 869 illegal guns used to commit crimes ject of a violation of section 922(z), the term Social Security for their income and against the people of New Jersey. of imprisonment for the violation shall be cannot afford to buy their prescription This represents a one way street, not less than 15 years. drugs without cutting back on their guns come from, States with lax gun ‘‘(D) If more than 50 firearms are the sub- food. laws straight to States, like New Jer- ject of a violation of section 922(z) and 1 of At the same time, many food banks the firearms is used subsequently by the per- and other nutrition programs are re- sey, with strong laws. It is clear that son to whom the firearm was shipped or New Jersey’s strong gun control laws transported, or by any person within 3 years porting an increase in participation by offer criminals little choice but to im- after the shipment or transportation, in an seniors. port their guns from States with weak offense in which a person is killed or suffers These same food banks also say they laws. We must act on a Federal level to serious bodily injury, the term of imprison- are frustrated that many seniors they send a clear message that this cannot ment for the violation shall be not less than would like to help are not eligible be- continue and will not be tolerated. 25 years. cause under the United States Depart- The Gun Kingpin Penalty Act would ‘‘(2) Notwithstanding any other provision ment of Agriculture’s, USDA, impor- create a new Federal gunrunning of- of law, the court shall not impose a proba- tant nutrition program, the Com- fense for any person who, within a tionary sentence or suspend the sentence of a person convicted of a violation of section modity Supplemental Food Program, twelve-month period, transports more 922(z), nor shall any term of imprisonment CSFP, seniors are not able to deduct than 5 guns to another State with the imposed on a person under this subsection the cost of their medications when intent of transferring all of the weap- run concurrently with any other term of im- seeking eligibility for food assistance. ons to another person. The Act would prisonment imposed on the person by a court While clearly in need of help, and establish mandatory minimum pen- of the United States.’’. clearly deserving of help, these seniors alties for gunrunning as follows: a (c) CRIMES RELATED TO GUNRUNNING MADE have to be turned away. mandatory 3 year minimum sentence PREDICATE OFFENSES UNDER RICO.—Section Michigan has the greatest number of for a first offense involving 5–50 guns; a 1961(1)(B) of title 18, United States Code, is CSFP participants in the country, last amended by inserting before ‘‘section 1028’’ year over 80,000 people benefited from mandatory 5 year minimum sentence the following: ‘‘section 922(a)(1)(A) (relating for second offense involving 5–50 guns; to unlicensed importation, manufacture, or this important program in my State and a mandatory 15 year minimum sen- dealing in firearms), section 922(a)(3) (relat- and 66,123 were seniors. I have a letter tence for any offense involving more ing to interstate transportation or receipt of from the Director of the largest pro- than 50 guns. firearm), section 922(a)(5) (relating to trans- gram in our State asking for help. I

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00074 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2581 would like to insert his letter for the The golden years should be bright (C) by striking ‘‘in each of the fiscal years record because he raises some very im- and active years for our seniors. They 1991 through 2002 to the Secretary of Agri- portant points. Most importantly, he should not be lived in a grey dusk of in- culture’’ and inserting ‘‘in each fiscal year’’; points out that if something is not (2) in subsection (i)— difference as we sit by and watch them (A) by redesignating paragraphs (1), (2), done to fix this program, many seniors make literal life and death decisions and (3) as subparagraphs (A), (B), and (C), re- will be turned away. These are seniors between food and medicine. spectively, and indenting appropriately; and just barely getting along, who rely on I would like to thank my colleagues (B) by striking ‘‘(i) Each’’ and inserting the modest food package provided by who have joined me as original cospon- the following: the CSFP. sors of this bill, Senators LEVIN and ‘‘(i) PROGRAMS SERVING ELDERLY PER- SONS.— The Senior Nutrition Act helps re- DOMENICI. Together, I know we can solve this problem and helps the need- ‘‘(1) ELIGIBILITY.—An elderly person shall make a difference for seniors. be eligible to participate in a commodity iest seniors by amending the eligibility I ask unanimous consent that the criteria for nutrition assistance pro- supplemental food program serving elderly text of this bill and that the letters persons if the elderly person is at least 60 vided through the CSFP. Most impor- from Mr. Frank Kubik and Ms. Barb years of age and— tantly, the bill acknowledges the ex- Packett be printed in the RECORD. ‘‘(A) is eligible for food stamp benefits traordinarily high out-of-pocket med- There being no objection, the mate- under the Food Stamp Act of 1977 (7 U.S.C. ical expenses that senior citizens have rial was ordered to be printed in the 2011 et seq.); or and helps these seniors by making ‘‘(B) has a household income that is less RECORD, as follows: many of them eligible for the food than or equal to 185 percent of the most re- S. 2108 available through the CSFP. The Sen- cent Federal Poverty Income Guidelines pub- Be it enacted by the Senate and House of Rep- lished by the Department of Health and ior Nutrition Act means the fewer sen- Human Services. iors will be forced to make the tough resentatives of the United States of America in Congress assembled, ‘‘(2) PROVISION OF INFORMATION.—Each’’; choice between medication or food. and Nationally, 28 States and the District SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Senior Nu- (3) by adding at the end the following: of Columbia participate in the CSFP, ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.— trition Act of 2002’’. which works to improve the health of ‘‘(1) IN GENERAL.—There are authorized to both women with children and seniors SEC. 2. FINDINGS. be appropriated to carry out the commodity Congress finds that— by supplementing their diets with nu- supplemental food program— (1) senior citizens in the United States ‘‘(A) $120,000,000 for fiscal year 2003; tritious USDA commodity foods. An have significant out-of-pocket costs for med- ‘‘(B) $140,000,000 for fiscal year 2004; average of more than 388,000 people ical expenses, especially for prescription ‘‘(C) $160,000,000 for fiscal year 2005; each month participated in the CSFP drugs; ‘‘(D) $180,000,000 for fiscal year 2006; during fiscal year 2000. Of those, 293,000 (2) 3 in 5 Medicare beneficiaries do not ‘‘(E) $200,000,000 for fiscal year 2007; and were elderly and that number is on the have dependable, affordable, prescription ‘‘(F) such sums as are necessary for fiscal rise. This program is important for drug coverage; year 2008 and each fiscal year thereafter. anyone who cares about making sure (3) as medical costs continue to rise, many ‘‘(2) LIMITATION ON USE OF FUNDS.—None of seniors have enough to eat. senior citizens are forced to make the dif- the funds made available under paragraph (1) The bill I am introducing today, the ficult choice between purchasing prescrip- shall be available to reimburse the Com- tion drugs and purchasing food; modity Credit Corporation for commodities Senior Nutrition Act, makes the fol- (4) the commodity supplemental food pro- donated to the commodity supplemental lowing important changes: one: In gram provides supplemental nutritious foods food program.’’. those areas where CSFP operates, cat- to senior citizens in a number of States and (b) CONFORMING AMENDMENTS.— egorical eligibility is granted for sen- localities; (1) Section 5(a) of the Agriculture and Con- iors for the CSFP if the individual par- (5) under the commodity supplemental sumer Protection Act of 1973 (7 U.S.C. 612c ticipates or is eligible to participate in food program— note; Public Law 93–86) is amended by strik- the Food Stamp Program. No further (A) women, infants, and children with ing ‘‘Secretary (1) may’’ and all that follows verification of income would be nec- household incomes up to 185 percent of the through ‘‘(2) shall’’ and inserting ‘‘Secretary Federal Poverty Income Guidelines pub- shall’’. essary in such cases. The Food Stamp lished annually by the Department of Health (2) Section 5(g) of the Agriculture and Con- Program provides a medical expense and Human Services may be eligible for sup- sumer Protection Act of 1973 (7 U.S.C. 612c deduction, which seniors may use to plemental foods; but note; Public Law 93–86) is amended by strik- account for their high prescription (B) senior citizens are ineligible for supple- ing ‘‘(as defined by the Secretary)’’ and in- drug costs. mental foods if their household incomes are serting ‘‘described in subsection (i)(1)’’. Two: This bill says that the same in- greater than 130 percent of the Federal Pov- come standard that is currently used erty Income Guidelines; February 21, 2002. to determine eligibility for women, in- (6) during fiscal year 2000— Hon. DEBBIE STABENOW, fants and children in the CSFP, 185 per- (A) an average of more than 388,000 people Hart Senate Office Building, Washington, DC. DEAR SENATOR STABENOW: I am writing cent of the Poverty Income Guidelines, each month participated in the commodity supplemental food program; and this letter to ask for your continued support would be applied to seniors as well. The (B) the majority of those participants, for the Commodity Supplemental Food Pro- current income eligibility standard for 293,000, were senior citizens; and gram. We are facing some potential problems seniors has been capped by regulation (7) in order to serve the neediest senior in the upcoming months that I would like to at just 130 percent. Under the current citizens, taking into account their high out- bring to your attention. For FY02 we may be seeing program par- standards a single senior must earn no of-pocket medical (including prescription ticipation threaten to exceed our assigned drug) expenses, the eligibility requirements more than $11,518 per year to qualify. caseload of 42,700 here at Focus: HOPE as for the commodity supplemental food pro- By raising the standard to 185 percent well as other programs nationally that are gram should be modified to make more sen- of poverty, the same senior can earn as at or above their assigned caseloads due to much as $16,391 to qualify for food. This ior citizens eligible for the supplemental the downturn in the economy. November saw foods provided under the program. will make a major difference in the us serve 43,553 and 42,902 participated in Jan- SEC. 3. ELIGIBILITY OF ELDERLY PERSONS uary. These are traditionally slow months lives of so many seniors who are strug- UNDER THE COMMODITY SUPPLE- gling with the high cost of prescription for us and my concern is that if we continue MENTAL FOOD PROGRAM. to serve over one hundred per cent of our drugs. (a) IN GENERAL.—Section 5 of the Agri- caseload and additional resources are not Finally, this bill establishes an au- culture and Consumer Protection Act of 1973 found, we may be faced with the prospect of thorization for the CSFP that will dou- (7 U.S.C. 612c note; Public Law 93–86) is removing senior citizens from our program. ble the current appropriation levels to amended— The Department of Agriculture has done an $200 million over five years to accom- (1) in the first sentence of subsection outstanding job in assigning caseload nation- modate any expansion that may occur (d)(2)— ally to maximize its usage but if this partici- in the program due to the changes in (A) by striking ‘‘provide not less’’ and in- pation trend continues they may not have serting ‘‘provide, to the Secretary of Agri- eligibility standards. the ability to meet the demand. Seniors de- culture, not less’’; pend heavily on the nutritious commodities This bill has been endorsed by the (B) by inserting ‘‘, or such greater quan- provided by CSFP. In many cases this is a National CSFP Association. I would tities of cheese and nonfat dry milk as the lifeline for them by not only giving them ac- like to submit a copy of their letter for Secretary determines are necessary,’’ after cess to the food but also the additional serv- the RECORD. ‘‘nonfat dry milk’’; and ices many CSFP’s are able to bring to the

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00075 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2582 CONGRESSIONAL RECORD — SENATE April 11, 2002 seniors by the strong use of volunteers and in the Commodity Supplemental Food colleagues in passing an economic re- other community programs. Program, CSFP, that I have long covery bill that extended benefits for My hope is that we will not get to the sought to address. unemployed workers and provide de- point of removing seniors from the program CSFP is an important U.S. Depart- and that additional caseload, if needed, can preciation incentives for businesses to be found. ment of Agriculture commodity food invest in new facilities and equipment. Another point I would like to bring up is program that serves nearly four hun- In short, the bill provided welcome re- the plight of senior citizens who are over the dred thousand individuals every lief to our unemployed workers and to income guideline limits of one hundred and month, many of whom live in my home our economy. But it also posed a dif- thirty per cent of the poverty level and are state of Michigan. The vast majority of ficult choice to State governments. ineligible for CSFP. We routinely have to these individuals are senior citizens. In In all but a handful of States, cor- turn away seniors who’s income is over the fact, CSFP is the primary senior com- guidelines yet have major expenses in the porate and individual income taxes are way of prescriptions and other medical care modity program of the USDA. The av- calculated based on the Federal tax that leaves very little to live on for the rest erage senior citizen pays $1000 dollars code’s definition of income. Thus, when of the month. The average income of a senior per year to purchase prescription we change how taxable income is cal- on our program is around $520 a month. Even drugs, and many senior citizens living culated under the Federal code, the though the maximum amount for participa- on fixed incomes, are forced to choose changes automatically affect the tion is $931 a month we find many who don’t between prescription drugs and food. amount of tax collected by States. It qualify due to the reasons I’ve mentioned. A Given the dire choices facing many has been estimated, for example, that possible solution is to increase the senior in- seniors, reforming the Commodity Sup- the tax changes made by the economic come guidelines to the same amount as plemental Food Program so that it can mothers and children who are participating recovery package will reduce State in CSFP of one hundred and eighty five per serve more seniors is a matter of great revenues by $14 billion. States can cent of the poverty level. Originally when importance. This legislation seeks to avoid the revenue loss by ‘‘decoupling’’ the senior program was piloted in 1983, the increase the ability of seniors to get their tax policies from Federal law, but income guidelines were the same. They were the food that they need by granting they do so at a price. Decoupling in- reduced after the seniors were permanently categorical eligibility for seniors if creases the complexity of paying taxes added to the program. Increasing the income they can participate in the Food Stamp and forces businesses to devote more guidelines would address the needs of a grow- Program. Additional verification is not ing senior population while still maintaining resources to compliance. At the most needed in this case. The Food Stamp basic level, they would have to cal- priority to mothers and children in the pro- Program provides a medical expense gram as required by regulations. culate taxes two different ways and I know that this is a time of tightening deduction which seniors may use to ac- would have to factor the dueling tax budgets but I am hopeful that a way will be count for their high prescription drug consequences into their business deci- found to continue to support this much need- costs. This legislation will also raise sions. ed program that has made a difference in so the CSFP eligibility level for seniors to States that automatically or affirma- many of our most vulnerable citzens. 185 percent of the poverty level. Rais- I am most appreciative of all of your sup- tively decide to conform to the tax law ing the eligibility level to 185 percent changes in the economic recovery port for Focus: HOPE and the Commodity of the poverty level, from the current Supplemental Food Program. package are faced with finding ways to Sincerely, level of 130 percent, would make eligi- cover the loss in expected revenue. bility levels consistent for women with FRANK KUBIK, This could mean making painful cuts CSFP Manager. children and senior citizens. In addi- in important areas such as health care, tion this bill will raise the authorized transportation, and education. My NATIONAL CSFP ASSOCIATION, level for CSFP to $200 million of fund- home State of Maine was faced with a March 18, 2002. ing over 5 years. This will ensure that $27 million revenue loss over the next Hon. DEBBIE STABENOW, all eligible to receive food under CSFP two years if it chose to conform to the U.S. Senate, Hart Senate Bldg., Washington, will do so while allowing for the expan- Federal tax law changes, and this on DC. sion of the program beyond the 28 DEAR SENATOR STABENOW: The National top of a much larger structural budget States and the District of Columbia Commodity Supplemental Food Program shortfall. The resulting bleak picture which currently participate in the pro- (CSFP) Association strongly supports your forced the State legislature to con- gram. efforts to introduce and pass The Stabenow/ template some extremely problematic Domenici Senior Nutrition Act in the up- I am proud to be an original cospon- coming weeks. sor of this legislation, and would like alternatives, including cuts in the State Medicaid program. CSFP enables us to reach the most vulner- to thank Senators STABENOW and Today, Medicaid is the fastest grow- able seniors along with mothers and children DOMENICI for their hard work in every month with a food package designed to ing component of State budgets. While crafting this legislation. I hope that supplement protein, calcium, iron and vita- State revenues were stagnant or de- min A & C. The Hunger in America 2001 my Senate colleagues will join us in supporting and assign this legislation. clined in many States last year, Med- study done by America’s Second Harvest re- icaid costs increased 11 percent. Maine ports that of the people seeking emergency is only one of a number of States that food assistance, 30 percent had to choose be- By Ms. COLLINS (for herself and tween paying for food and paying for medi- Mr. NELSON of Nebraska): has been forced to consider cuts in cine or medical care. By amending the eligi- S. 2110. A bill to temporarily increase their Medicaid programs to make up bility criteria for the seniors served by the Federal Medicare assistance per- for their budget shortfalls. CSFP, this Act will assist the neediest of centage for the Medicaid Program; to Earlier this year, Maine was facing a seniors in receiving nutrition assistance the Committee on Finance. $248 million revenue shortfall. Faced they so desperately need to remain in better Ms. COLLINS. Madam President, I with nothing but tough choices, our health. am pleased today to rise, with my good Governor proposed $58 million in Med- On behalf of the Association, let me thank friend Senator BEN NELSON, to intro- icaid cuts, including reductions in pay- you again for all your efforts on behalf of the CSFP and the participants we serve. We are duce a bill that would assist States ments to hospitals, nursing homes, committed to supporting The Stabenow/ through a period when many are expe- group homes, and physicians. He was Domenici Senior Nutrition Action. riencing a fiscal crisis. Stated simply, also forced to propose a delay in the Sincerely, for the remainder of this year and next, enactment of legislation passed by the BARB PACKETT, the bill would increase the Federal State Legislature last year to expand Legislative Affairs Chair. Government’s share of each State’s Medicaid to provide health coverage to Mr. LEVIN. Madam President, today Medicaid costs by 1.5 percent and hold an estimated 16,000 low-income unin- I am proud to be an original cosponsor the Federal matching rate for each sured Mainers. of the Senior Nutrition Act. This legis- State harmless in order to provide ap- While subsequent revisions in the lation which is cosponsored by my proximately $7 billion in fiscal relief to State’s revenue forecasts enabled the friend and colleague from my home States and allow them to expand, not Governor to restore most of these Med- state of Michigan, Senator STABENOW contract, their Medicaid programs. icaid cuts, the loss of revenue due to as well as my good friend Senator Last month, I was pleased to join the tax law changes in the economic DOMENICI seeks to address in inequity with an overwhelming number of our recovery package could very well put

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00076 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2583 them back on the table, particularly helped state governments by increasing Mr. NELSON of Nebraska. I thank because the Maine legislature has de- the federal contribution of the Federal the Senator. cided to defer a decision on whether to Medicaid Assistance Percentage, fully conform in 2002 to the bonus de- FMAP, by 1.5 percent. This provision By Mr. ROCKEFELLER (for him- preciation provisions of the economic enjoyed wide support. Unfortunately, self, Mr. BYRD, and Mr. SPEC- recovery package until its next legisla- and over the objections of the crafters TER): tive session. of the Centrist stimulus plan, it was S. 2113. A bill to reduce temporarily The legislation I am introducing not included in the final package the duty on N- today will help to bridge Maine’s fund- signed by President Bush. Cyclohexylthiophthalimide; to the ing gap by bringing an additional $40 Even before the passage of the stim- Committee on Finance. million to my State’s Medicaid pro- ulus bill, Medicaid costs were rising at gram over the next two years. This the same time state tax revenues were Mr. ROCKEFELLER. Madam Presi- should not only forestall the need for decreasing. States are now faced with dent, I am pleased to introduce this bill any further cuts, but will also provide the choice of either cutting Medicaid today with Senators SPECTER and BYRD additional funds to Maine to proceed services or diverting funding from to temporarily suspend a portion of the with its plans to expand its Medicaid other essential programs to fund Med- tariff applicable to a specific chemical program to provide health care cov- icaid. This ‘‘choice’’ is no choice at all product, N-(Cyclohexylthio)-phthal- erage for more of our low-income unin- either cut health care service to Med- imide, which is usually referred to as sured. icaid recipients or cut funding for ‘‘PVI,’’ and thereby provide for greater I do not want Maine or other States schools, roads, police and firefighters. economic growth. to have to choose between helping our In a time of economic turmoil this Import duties are intimately related economy recover from recession and ‘‘choice’’ can stall the economic recov- to the tax and trade policies of the helping people in need. Our States need ery the stimulus bill was meant to United States. Just as Congress ex- more Federal assistance in providing jump-start. pressly imposes duties on imported health care services through Medicaid, Our bill would revive the FMAP pro- goods to protect specific domestic in- not less, which is why I am introducing vision this body earlier considered. It dustries and at the same time raise this bill today. By increasing the Fed- would provide a direct response to the revenue, Congress abolishes, reduces, eral medical assistance percentage for false ‘‘choice’’ faced by states. This bill or suspends duties to encourage domes- all States this year and next, we can will alleviate state’s Medicaid liabil- tic business enterprise and export ac- relieve the pressure put on States to ities by increasing the federal govern- tivity, particularly if a specific domes- cut spending on important programs ment’s contribution to the Medicaid tic industry will not be harmed. This is while increasing their capacity to pro- program by 1.5 percent for this year the situation applicable to PVI. vide services through Medicaid. I urge and next. This would mean an addi- PVI stands for ‘‘Pre-Vulcanization our colleagues to join Senator NELSON tional $7 billion for states. In Ne- Inhibitor,’’ which means that PVI re- and me in this effort. braska, the savings would amount to Mr. NELSON of Nebraska. Madam an estimated $42.7 million. This more tards the onset of the vulcanization President, I come to the floor to talk than offsets the $34 million that Ne- when rubber is being processed. In about a bill I plan on introducing later braska is expected to lose if they com- other words, PVI functions as a safe- on today with my good friend Senator ply with the business tax incentives in guard when rubber articles are being manufactured. There is no direct sub- SUSAN COLLINS. I am pleased to say the stimulus bill and would in fact pro- that our legislation could be considered vide $8.7 million on top of what was stitute product for PVI. the next step in economic stimulus. A lost. As you might expect, there is a rea- little more than a month ago, this A month ago, we took steps to help sonable demand for this product in the body passed and the President signed a the economy recover and to help work- U.S. rubber industry, particularly in bill to stimulate the economy and help ers. Today, we need to take an addi- the tire industry. To meet this de- workers. It was not a perfect bill, but tional step to help states struggling mand, various companies around the few are. But the economy was hurting with fiscal calamity. With this in- world now manufacture PVI and export and it was time to act. crease in federal Medicaid assistance it to the United States; however, PVI One of the unintended consequences throughout this year and next, states is not manufactured in the United of the stimulus bill was a revenue loss will be given some breathing room to States. for many states. The final package in- deal with the difficult choices they Therefore, the U.S. economy is pay- cluded a provision that will stimulate face in balancing their budgets. I urge ing a duty for the use of PVI, but no business development through tax in- my colleagues to join Senator COLLINS domestic industry is being protected. centives. Unfortunately, because the and I in this effort and show the states Therefore, this tariff should be sus- majority of states ‘‘couple’’ their tax that Congress is not indifferent to pended to the maximum extent pos- rates to the federal tax rates, this ben- their budget problems and that we will sible. This legislation would suspend efit for businesses will mean an esti- step in and provide meaningful assist- the tariff above the 2 percent level, mated $14 billion loss in state revenues. ance at a time when governors need it which will provide for greater eco- States can avoid the revenue loss by most. nomic growth for the United States. decoupling from the federal law, but Mrs. CLINTON. Madam President, I this approach is not without its own commend my colleague from Nebraska I encourage my colleagues to support traps and pitfalls. Decoupling makes for recognizing the extraordinary bur- this initiative. I ask unanimous con- the tax codes of states just that much dens that are being placed on our sent that the text of the bill be printed more confusing. States both because of the economic in the RECORD. Many states have explored ways to slowdown and the increase in health There being no objection, the bill was decouple, or in simpler terms, they costs, as well as the effects of the 9–11 ordered to be printed in the RECORD, as have searched for ways to hold their attacks in our State particularly, but follows: state harmless from the experienced also because of the unintended con- S. 2113 revenue loss. In fact, the state Legisla- sequences of some of the efforts that ture in Nebraska is considering such a were undertaken in the stimulus bill to Be it enacted by the Senate and House of Rep- measure today, as it attempts to find a stimulate investment which have the resentatives of the United States of America in way out of it’s expected $119 million direct effect of further cutting State Congress assembled, budget shortfall. revenues. SECTION 1. N-CYCLOHEXYLTHIOPHTHALIMIDE. We must now take steps to alleviate As a former Governor, I know our (a) IN GENERAL.—Subchapter II of chapter the unintended impact of the tax re- colleague from Nebraska understands 99 of the Harmonized Tariff Schedule of the ductions on state budgets. In pre- this intimately. I very much appreciate United States is amended by inserting in nu- viously debated stimulus packages, a his leadership on this issue and look merical sequence the following new heading: provision was included that would have forward to working with him.

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‘‘ 9902.29.82 N-Cyclohexylthiophthalimide (CAS No. 17796–82–6) (provided for in subheading 2930.90.24) ...... 3% No No On or be- change change fore 12/31/ ’’. 2005 (b) EFFECTIVE DATE.—The amendment enforcement officials and members of S. 2114 made by subsection (a) applies to articles en- the business community in order to Be it enacted by the Senate and House of Rep- tered, or withdrawn from warehouse for con- educate and break down barriers that resentatives of the United States of America in sumption, on or after the 15th day after the Congress assembled, date of enactment of this Act. lead to intolerance. Outstanding com- munities were recognized for their ef- SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Racial By Mr. VOINOVICH (for himself forts. Profiling Education and Awareness Act of and Mr. DEWINE): On Friday, April 12, 2002, Attorney 2002.’’ S. 2114. A bill to authorize the Attor- General Ashcroft is scheduled to travel SEC. 2. FINDINGS. ney General to carry out a racial to Cincinnati, Ohio to endorse a settle- Whereas, the overwhelming majority of profiling educating and awareness pro- ment agreement between the Cin- state and local law enforcement agents gram within the Department of Justice cinnati Police Department and the De- throughout the nation discharge their duties and to assist state and local law en- professionally and without bias. partment of Justice. The settlement is Whereas, a large majority of individuals forcement agencies in implementing in reference to a Federal lawsuit, filed subjected to stops and other enforcement ac- such programs; to the Committee on last March that alleges a 30-year pat- tivities based on race, ethnicity, or national the Judiciary. tern of racial profiling by the depart- origin are found to be law-abiding and there- Mr. VOINOVICH. Madam President, ment. Just one month after the suit fore racial profiling is not an effective means we’ve heard all too often of situations was filed, riots broke out in the city of to uncover criminal activity. in cities and towns across the country Cincinnati after a white officer shot Whereas, racial profiling should not be in which concerns over racial profiling confused with criminal profiling, which is a and killed an unarmed black teenager legitimate tool in fighting crime. are creating serious divisions between in a foot chase. The riots prompted Whereas, racial profiling violates the communities and law enforcement Mayor Luken of Cincinnati to invite Equal Protection Clause of the Constitution. agencies. Despite the shared interest the Justice Department to review the Using race, ethnicity, or national origin as a each have in fighting crime and mak- practices and procedures of the Cin- proxy for criminal suspicion violates the ing neighborhoods safer, mistrust and cinnati Police Department and make constitutional requirement that police and wariness stands in the way of coopera- other government officials accord to all citi- recommendations for improvement. zens the equal protection of the law. Arling- tion. What results is a settlement, en- Today I introduced a bill entitled the ton Heights v. Metropolitan Housing Develop- dorsed by all parties, including the ment Corporation, 429 U.S. 252 (1977). ‘‘Racial Profiling Education and local Fraternal Order of Police chapter SEC. 3. AUTHORIZATION OF PROGRAM. Awareness Act of 2002’’ that I believe and the local ACLU chapter, which sets (a) IN GENERAL.—The Attorney General, in will put us on the road to preventing forth several recommendations for the consultation with law enforcement agencies problems caused by racial profiling and department, including revising proce- and civil rights organizations, shall establish an education and awareness program on ra- help begin reconciliation in commu- dures governing the use of deadly force, nities torn apart by racial unrest con- cial profiling and the negative effects of ra- choke holds and irritant spray; increas- cial profiling on individuals and law enforce- nected to police-community relations. ing training requirements; and keeping Rooted in the belief that education ment. a database of all citizen-reported posi- (b) PURPOSES OF PROGRAM.—The purposes and dialogue are the most effective tive interactions with police. Most im- of this new educational program are to (1) tools for bridging racial divides, my portantly in my eyes, however, is the encourage state and local law enforcement bill establishes a program within the requirement that the department agencies to cease existing practices that Department of Justice to educate city may promote racial profiling, (2) encourage works to improve relations between involvement with the community to address leaders, police chiefs, and law enforce- communities and the police. ment personnel on the problems of ra- the problem of racial profiling, (3) assist I firmly believe that Cincinnati can state and local law enforcement agencies in cial profiling and the value of commu- become a model for turning around a developing and maintaining adequate poli- nity outreach, as well as to recognize difficult situation and building good cies and procedures to prevent racial and disseminate information on ‘‘best community-police relations. And I be- profiling, and (4) assist state and local law practice’’ procedures for addressing po- lieve that if other cities and towns enforcement agencies in developing and im- lice-community racial issues. plementing internal training programs to My experience as mayor of Cleveland throughout the country can open the combat racial profiling and to foster en- and governor of Ohio has taught me lines of communication between their hanced community relations. that reaching the hearts and minds of communities and law enforcement as (c) PROGRAM FOR LOCAL LAW ENFORCEMENT AGENCIES.—The education and awareness people is the most effective means of Cincinnati is doing, they can prevent problems from ever happening. program and materials developed pursuant dealing with intolerance and the prob- to subsections (a) and (b) shall be offered to lems that result. The overwhelming majority of State state and local law enforcement agencies. As mayor of Cleveland I established and local law enforcement agents (d) REGIONAL PROGRAMS.—The education the city’s first urban coalition, the throughout the Nation discharge their and awareness program developed pursuant Cleveland Roundtable, to bring to- duties professionally and justly. I sa- to subsections (a) and (b) shall be offered at gether representatives of the city’s lute them for their committed efforts various regional centers across the country in what is one of America’s toughest to ensure that all law enforcement agencies various racial, religious and economic have reasonable access to the program. groups to create a common agenda. I jobs. It is unfortunate that the mis- deeds of a minute few have such a cor- SEC. 4. EVALUATION OF BEST PRACTICES. also established a one-week sensitivity (a) PERFORMANCE MEASURES.—The Depart- training course for all Cleveland police rosive effect on the police-community ment of Justice shall develop measures to officers and created six police district relationship. Through education and evaluate the performance of programs imple- community relations committees to dialogue we can help turn situations mented under Section 3(b)(4). open lines of communication between around so that groups who once (b) EVALUATION ACCORDING TO PERFORM- ANCE MEASURES.—Applying the performance police officers and community mem- thought they had little in common can realize how much they actually have to measures developed under subsection (a), the bers. Department of Justice shall evaluate pro- As governor, I launched efforts to in- gain by working together to make our grams implemented under section 3(b)(4)— crease community outreach by law en- communities safer places to live. (1) to judge their performance and effec- forcement in order to foster a coopera- I ask unanimous consent that the tiveness; tive, rather than adversarial, relation- text of the bill be printed in the (2) to identify which of the programs rep- resents the best practices to combat racial ship between citizens and law enforce- RECORD. profiling; and ment. Through my ‘‘Governor’s Chal- There being no objection, the bill was (3) to identify which of the programs may lenge,’’ I worked to bring members of ordered to be printed in the RECORD, as be replicated and used to provide assistance local communities together with law follows: to other law enforcement agencies.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00078 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2585 (c) Applying the performance measures de- HHS’s bioterrorism initiative, the As my friend and former Senator veloped under subsection (a), the Depart- lion’s share of which was used by the Sam Nunn so wonderfully noted in tes- ment of Justice shall work with those state CDC to bolster bioterrorism prepared- timony to Congress just months before and local law enforcement agencies that ness and response capacity of State and September 11 of last year: would most benefit from the education pro- gram and materials developed under section local health departments. A biological weapons attack cuts across three in order to assist them in imple- This initiative was a good start, but categories and mocks old strategies. menting a plan for the prevention of racial it is now clear that between 1999 and We need a new approach. Under the profiling within their agency. September 11, 2001, we continued to present structure, CDC’s bioterrorism SEC. 5. AUTHORIZATION OF APPROPRIATIONS. grossly underestimate the national preparedness and response efforts exist There are authorized to be appropriated commitment that would be required to alongside and are dispersed among its such sums as are necessary to carry out this counter the threat of bioterrorism. more traditional programs. This is the Act. Finally, late last year, as we finished prevailing state of affairs because allocating funds for fiscal year 2002 in HHS’s bioterrorism initiative is still By Mr. CLELAND: the wake of September 11 and the an- relatively new, not because it is the S. 2115. A bill to amend the Public thrax attacks, we boosted HHS bioter- ideal method of organizing CDC’s re- Health Act to create a Center for Bio- rorism spending to $3 billion, roughly a sponse to bioterrorism, but the time terrorism Preparedness within the Cen- tenfold increase. has come to give the CDC’s bioter- ters for Disease Control and Preven- Congress is often accused of being re- rorism defense efforts the focus they tion; to the Committee on Health, Edu- active instead of proactive, and I think deserve. cation, Labor, and Pensions. that criticism is, I am sad to say, valid Counterbioterrorism activities at the Mr. CLELAND. Madam President, I in this case. Certainly a dramatic CDC jumped from zero percent of the rise today to introduce legislation to ratcheting up to our commitment to CDC’s overall budget in 1998 to 4 per- create a National Center for Bioter- bioterrorism defense was the right re- cent in 2001 and 34 percent in 2002. rorism Preparedness and Response action to the events of last fall. But Each of the CDC’s other major pro- within the Centers for Disease Control now we are presented with the oppor- grams, none of which now even ap- and Prevention. This center will be the tunity, and I think the obligation, to proaches the bioterrorism program in first in the Federal Government to be take proactive steps to anticipate fu- terms of size, has been given a national dedicated solely to protecting the Na- ture threats and needs based on our re- center with its own director, its own tion against the public health threats cent experiences. budget authority, and own account- My proposal today is just such a step, posed by biological, chemical, and radi- ability to Congress. ological weapons attacks. and I exhort my colleagues in this body The CDC’s Bioterrorism Preparedness and in the House to support the imme- The monumental importance of this and Emergency Response Program, by diate authorization of a National Cen- task, compounded by the potentially contrast, is not even funded through ter for Bioterrorism Preparedness and devastating consequences of a failure the CDC. Its resources come from the Response. to give it the national commitment it external public health and social serv- deserves, makes the creation of a sin- The CDC is on the public health front in the war against domestic terrorism, ice emergency fund. gle center that will focus all its ener- In the Children’s Health Act of 2000, the tip of the spear. It is not the only gies and resources on encountering the we authorized a National Center on weapon in our arsenal. The CDC joins public health threat of bioterrorism Birth Defects and Developmental Dis- the National Institutes of Health, the imperative and of the greatest urgency. abilities, not because the CDC had no Food and Drug Administration, and The events of last fall made it pain- prior programs relating to birth defects fully clear that we as a nation are not Health Resources and Services Admin- istration, the many State and local and developmental disabilities, but as prepared as we need to be to deal rather because only in their own dedi- with a bioterrorist attack. health departments, and many others on the front line. But the CDC is the cated center could these programs re- The Federal response to the anthrax ceive the focus and priority they de- crisis has been variously characterized one with the greatest responsibility in the event of a bioterrorist attack. serve. as fragmented, slow, confused, ineffec- Despite the critical nature of these There is a National Center for Health tual—in a word, inadequate. This is in responsibilities, we must remember Statistics, but there is right now no no way a reflection on the dedication how new they are to the CDC, espe- National Center for Bioterrorism Pre- or abilities of the men and women who cially relative to the CDC’s 56 years of paredness and Response. It seems to me performed so exceptionally well in experience addressing public health that if a dedicated center is called for their roles at the Federal, State, and threats of a fundamentally different by the need for accurate health statis- local level in response to a threat none nature. tics, the urgent need for a comprehen- of us had encountered before. They did The threat posed by bioterrorism sive, effective, and focused defense not let us down. If anything, we, the bears a surface resemblance to that against bioterrorism certainly de- Congress of the United States, let them posed by more conventional disease mands one as well. down through years of neglect of the outputs. But closer inspection reveals Under my legislation, the National public health sector and by failing to real substantive differences, and a rec- Center for Bioterrorism Preparedness give adequate recognition sooner to the ognition of these differences can make and Response would be charged with threat posed to us by bioterrorism. the difference between an effective and the following responsibilities: training, It was not until 1999 that the Depart- ineffective emergency response. preparing, and equipping bioterrorism ment of Health and Human Services The scientists and other experts at emergency response teams, who will launched its bioterrorism initiative. the National Center for Infectious Dis- become the special forces of the Public The military had understood and taken eases and the National Center for Envi- Health Service, for the unique purpose steps to counter the threat of biologi- ronmental Health are highly skilled in of immediate emergency response to a cal warfare against our troops decades controlling and preventing disease out- man-made assault on the public health; earlier. But it took the civilian sector breaks of a natural origin, but when it overseeing, expanding, and improving until 3 years ago even to begin to take comes to bioterrorism, they are tread- the laboratory response network; and seriously the threat of domestic ter- ing new ground without a compass. that is a mission; developing response rorism. CDC’s rapid response personnel, in plans for all conceivable contingencies Today not one of us could possibly the absence of the specialized and fo- involving terrorist attacks with weap- fail to understand how serious the cused bioterrorism training that a na- ons of mass destruction, that is much threat posed by bioterrorism truly is. tional center could provide, will inevi- needed and developing protocols of co- Some among us were the intended tar- tably bring to bear epidemiological ordination and communication be- gets of last fall’s bioterrorist attack. models and methods that, while excep- tween Federal, State, and local actors, All of us keenly felt the threat. tionally effective in approaching natu- as well as between different Federal ac- Between 1999 and 2001, we spent in rally occurring disease outbreaks, are tors, in collaboration with these enti- this Nation a total of $730 million on poorly suited to manmade outbreaks. ties, for each of those contingencies,

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00079 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2586 CONGRESSIONAL RECORD — SENATE April 11, 2002 which is highly needed; maintaining, In 1947, President Truman advocated lic health partners to upgrade public health managing, and deploying the National and presided over the creation of the core capacities, including— Pharmaceutical Stockpile, what an im- National Military Establishment, a ‘‘(A) improving surveillance and epidemi- portant challenge that is; regulating ology; new department bringing the Depart- ‘‘(B) increasing the speed of laboratory di- and tracking the possession, use, and ments of War and Navy under one agnosis; transfer of dangerous biological, chem- aegis. In 1949, the National Military Es- ‘‘(C) ensuring a well-trained public health ical, and radiological agents that the tablishment was renamed the Depart- workforce; and Secretary of HHS determines pose a ment of Defense. President Truman ‘‘(D) providing timely, secure communica- threat to the public health; developing recognized in the waning days of World tions and information systems (such as the and implementing disease surveillance War II that the Nation’s military as it Health Alert Network); systems, including a nationwide secure was then structured would be incapable ‘‘(2) maintain, manage, and in a public electronic network linking doctors, health emergency deploy, the National Phar- of meeting future threats. That is im- maceutical Stockpile administered by the hospitals, public health departments, portant. The Department of Defense, Centers for Disease Control; and the CDC, for the early detection, with its unified command structure ‘‘(3) ensure that all States have functional identification, collection, and moni- and cohesive focus on national defense, plans in place for effective management and toring of terrorist attacks involving was his solution to the problem. Today, use of the National Pharmaceutical Stock- weapons of mass destruction; admin- we all know how well the Department pile should it be deployed; istering grants to state and local pub- of Defense has served us. In the 1980s, ‘‘(4) establish, in consultation with the De- partment of Justice, the Department of En- lic health departments for building President Reagan appointed the first core capacities, such as the Health ergy, and the Department of Defense, a list drug czar to lend focus to what had of biological, chemical, and radiological Alert Network; and organizing and car- previously been a loosely dispersed and agents and toxins that could pose a severe rying out simulation exercises with re- consequently ineffectual war on drugs. threat to public health and safety; spect to terrorist attacks involving bi- More recently, President Bush created ‘‘(5) at least every 6 months review, and if ological, chemical, or radiological the Office of Homeland Security be- necessary revise, in consultation with the weapons in close coordination with cause he recognized that we need one Department of Justice, the Department of other relevant federal, state, and local Energy, and the Department of Defense, the office and one director whose sole re- list established in paragraph (4); actors. sponsibility is to ensure the security of This Center is designed specifically ‘‘(6) regulate and track the agents and tox- our homeland. In this same tradition, I ins listed pursuant to paragraph (4) by— to complement HHS’s existing struc- propose a National Center for Bioter- ‘‘(A) in consultation and coordination with ture for the coordination of its multi- rorism Preparedness and Response. the Department of Justice, the Department agency counter-bioterrorism initiative. When a threat—be it our inability to of Energy, and the Department of Defense— At present, the Director of the Office of win future wars, rampant drug use, or ‘‘(i) establishing procedures for access to Public Health Preparedness is respon- listed agents and toxins, including a screen- terrorist designs on our homeland— ing protocol to ensure that individual access sible for coordinating the bioterrorism reaches critical proportions, our Na- functions of the CDC with those of the to listed agents and toxins is limited; and tion has historically responded by cre- ‘‘(ii) establishing safety standards and pro- NIH, with those of the FDA and so ating a focal point whose sole mandate cedures for the possession, use, and transfer forth. The housing of all the CDC’s bio- is addressing that threat. Today, I can of listed agents and toxins, including reason- terrorism functions in one dedicated say without fear of contradiction that able security requirements for persons pos- center will facilitate the Director’s co- the threat of bioterrorism has sur- sessing, using, or transferring listed agents, ordination task by providing a single so as to protect public health and safety; and passed the critical threshold. In my ‘‘(B) requiring registration for the posses- point of contact within the CDC for its view, we are therefore called upon by bioterrorism defense efforts. When the sion, use, and transfer of listed agents and history and by our obligation to future toxins and maintaining a national database National Center for Bioterrorism Pre- generations to create a dedicated Na- of the location of such agents and toxins; paredness and Response goes online, tional Center for Bioterrorism Pre- and the CDC will benefit from a much more paredness and Response. ‘‘(7) train, prepare, and equip bioterrorism focused and prioritized bioterrorism I ask unanimous consent that the emergency response teams, composed of mandate; the Office of Public Health text of my legislation be printed in the members of the Epidemic Intelligence Serv- Preparedness will benefit from a ice, who will be dispatched immediately in RECORD. the event of a suspected terrorist attack in- streamlining of its coordination duties; There being no objection, the bill was and the American people will benefit volving biological, chemical, or radiological ordered to be printed in the RECORD, as weapons; from a firmer, sounder, stronger de- follows: ‘‘(8) expand and improve the Laboratory fense against bioterrorism. S. 2115 Response Network; Let me be clear that what I am pro- ‘‘(9) organize and carry out simulation ex- Be it enacted by the Senate and House of Rep- posing is not an added layer of bu- ercises with respect to terrorist attacks in- resentatives of the United States of America in reaucracy. Most of the responsibilities volving biological, chemical, or radiological Congress assembled, that would be assigned to the National weapons, in coordination with State and Center for Bioterrorism Preparedness SECTION 1. NATIONAL CENTER FOR BIOTER- local governments for the purpose of assess- RORISM PREPAREDNESS AND RE- ing preparedness; and Response already accrue to the SPONSE. ‘‘(10) develop and implement disease sur- CDC in Atlanta. My legislation would Title III of the Public Health Service Act veillance measures, including a nationwide (42 U.S.C. 241 et seq.) is amended by adding gather these existing bioterrorism electronic network linking doctors, hos- at the end the following: functions from their various locations pitals, public health departments, and the throughout the CDC, which has 21 dif- ‘‘PART R—NATIONAL CENTER FOR BIO- Centers for Disease Control and Prevention, ferent buildings, I might add, and bring TERRORISM PREPAREDNESS AND RE- for the early detection, identification, col- them all under one roof, one center—an SPONSE lection, and monitoring of terrorist attacks elimination of bureaucratic layers, not ‘‘SEC. 399Z–1. NATIONAL CENTER FOR BIOTER- involving biological, chemical, or radio- an addition of a new one. There are a RORISM PREPAREDNESS AND RE- logical weapons; SPONSE. few new responsibilities that my legis- ‘‘(11) develop response plans for all con- ‘‘(a) IN GENERAL.—There is established ceivable contingencies involving terrorist at- lation would charge to the Center that within the Centers for Disease Control and tacks with biological, chemical, or radio- do not currently reside with the CDC, Prevention a center to be known as the Na- logical weapons, that specify protocols of but I challenge anyone to claim that tional Center for Bioterrorism Preparedness communication and coordination between they constitute merely an added layer and Response (referred to in this section as Federal, State, and local actors, as well as of bureaucracy. Where there are new the ‘Center’) that shall be headed by a direc- between different Federal actors, and ensure responsibilities—for instance, the tor appointed by the Director of the Centers that resources required to carry out the tracking and regulation not merely of for Disease Control and Prevention. plans are obtained and put into place; and ‘‘(b) DUTIES.—The Director of the Center the transfer but of the possession and ‘‘(12) perform any other relevant respon- shall— sibilities the Secretary deems appropriate. use of deadly biological toxins—it is ‘‘(1) administer grants to State and local ‘‘(c) TRANSFERS.— only in instances of national security public health entities, such as health depart- ‘‘(1) IN GENERAL.—Notwithstanding any imperatives of the highest order. ments, academic institutions, and other pub- other provision of law, on the date described

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00080 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2587 in paragraph (4), each program and function of their income for rent or live in seri- conditions often can cause or exacer- described in paragraph (3) shall be trans- ously substandard housing. Nationwide bate health problems. ferred to, and administered by the Center. there are only 39 affordable housing Fourth, my bill would encourage co- ‘‘(2) RELATED TRANSFERS.—Personnel em- units available for rent for every 100 operation among welfare agencies and ployed in connection with the programs and functions described in paragraph (3), and low-income families needing housing. agencies that administer federal hous- amounts available for carrying out such pro- And for the fourth year in a row, rents ing subsidies. By improving the dia- grams and functions shall be transferred to have increased faster than inflation. logue between public housing agencies the Center. Such transfer of amounts does We must address the issue of affordable and state welfare agencies, the two not affect the availability of the amounts housing during reauthorization of the groups will be able to enter into agree- with respect to the purposes for which the welfare law because many low-income ments on how to promote the economic amounts may be expended. families hit this formidable roadblock stability of public housing residents ‘‘(3) PROGRAMS AND FUNCTIONS DESCRIBED.— on their path to employment. who are receiving or have received The programs and functions described in this Though access to affordable housing paragraph are all programs and functions TANF benefits. that— is often left out of the discussion of Fifth, the legislation would authorize ‘‘(A) relate to bioterrorism preparedness welfare reform, it is crucial that we ad- HHS and HUD to conduct a joint dem- and response; and dress this issue during our reauthoriza- onstration to explore the effectiveness ‘‘(B) were previously dispersed among the tion of the welfare reform law this of a variety of service-enriched and various centers that comprise the Centers year. The welfare reform legislation supportive housing models for TANF for Disease Control and Prevention. will not allocate considerable new families with multiple barriers to ‘‘(4) DATE DESCRIBED.—The date described funds to increase affordable housing work, including homeless families. in this paragraph is the date that is 180 days opportunities, however, modifications Finally, my bill would clarify that after the date of enactment of this section.’’. to the TANF statute can be made to legal immigrant victims of domestic By Mr. KERRY: address the problem by other means. violence eligible for TANF and other S. 2116. A bill to reform the program That is why today I am introducing the welfare-related benefits are also eligi- of block grants to States for temporary Welfare Reform and Housing Act. This ble for housing benefits. The proposal assistance for needy families to help legislation will address the housing would ensure that abused immigrant States address the importance of ade- issue in the context of welfare reform women seeking protection under the quate, affordable housing in promoting in six major ways: 1994 Violence Against Women Act that family progress towards self-suffi- First, the measure will make it sim- are also eligible for other federal ben- ciency, and for other purposes; to the pler for states to use TANF funds to efit programs have access to federal Committee on Finance. provide ongoing housing assistance. housing programs under section 214 of Mr. KERRY. Madam President, I am TANF-funded housing subsidies pro- the Housing and Community Develop- pleased today to introduce the Welfare vided for more than four months would ment Act. Reform and Housing Act. This bill con- be considered ‘‘non-assistance’’ instead Recent proposals made by the Ad- tains measures to improve access to of ‘‘assistance’’. By considering these ministration and some members of adequate and affordable housing for subsidies as ‘‘non-assistance,’’ states Congress aim to increase work require- families eligible for Temporary Assist- that want to implement housing assist- ments for families receiving TANF ance for Needy Families, TANF, bene- ance programs using TANF funds will funds. Therefore it is important that fits. not have to work within the con- we are committed to ensuring that It is essential that low-income fami- straints of current Health and Human low-income families have a fair chance lies struggling to make the transition Services rules surrounding ‘‘assist- at employment. We have made progress from welfare to work have access to af- ance’’ subsidies. addressing many barriers to work for fordable, quality housing options. Fam- Second, the bill would encourage low-income families such as child care, ilies with housing affordability prob- states to consider housing needs as a job training, and transportation. But lems are often forced to move fre- factor in TANF planning and imple- in order to fully support families make quently, which disrupts work schedules mentation. My legislation would direct the transition to work we must address and jeopardizes employment. Many of the Department of Health and Human the shortage of adequate and affordable the affordable housing options are lo- Services to work with the Department housing. The Welfare Reform and Hous- cated in areas that have limited em- of Housing and Urban Development to ing Act brings housing into the welfare ployment opportunities and are located gather increased and improved data on reform dialogue and aims to help ame- a long distance from centers of job the housing status of families receiving liorate the housing problem so that growth. Furthermore, high housing TANF and the location of places of em- low-income families leaving welfare costs can rob low-wage workers of a ployment in relation to families’ hous- have a chance to succeed in the work majority of their income, leaving in- ing. States will be required to consider force. sufficient funds for child care, food, the housing status of TANF recipients transportation, and other basic neces- and former recipients in TANF plan- By Mr. DODD (for himself, Ms. sities. ning. SNOWE, Mr. JEFFORDS, Mr. Maintaining stable and affordable Third, the legislation would allow DEWINE, Mr. BREAUX, Mr. REED, housing is critically important to hold- states to determine what constitutes and Mr. ROCKEFELLER): ing down a job, yet an alarming num- ‘‘minor rehabilitation costs’’ payable S. 2117. A bill to amend the Child ber of low-income families do not have with TANF funds. It is now permissible Care and Development Block Grant Act access to affordable housing. The data to use TANF funds for ‘‘minor rehabili- of 1990 to reauthorize the Act, and for from Massachusetts is shocking: in tation’’ but there is no guidance from other purposes; to the Committee on order to afford a two-bedroom unit at HHS on what types or cost of repairs Health, Education, Labor, and Pen- the fair market rent established by the are allowable, making it difficult for sions. Department of Housing and Urban De- states to determine the extent to Mr. DODD. Madam President, I am velopment, HUD, a minimum-wage which using TANF funds in this area is pleased to join with my colleagues Sen- worker would have to work 105 hours permissible. By allowing states to de- ators SNOWE, JEFFORDS, DEWINE, per week; in 1995, 2,900 poor families fine what constitutes ‘‘minor rehabili- BREAUX, REED, ROCKEFELLER, and COL- used private homeless shelters, while tation,’’ more states with similar needs LINS. By joining together on this legis- in 2000 the number grew to 4,300, with a will follow suit. A recent study of the lation, we are indicating a strong bi- majority of these families being low- health of current and former welfare partisan consensus to invest in both wage workers who had once been on recipients found that non-working improving the quality of child care and welfare. Lack of affordable housing is TANF recipients were nearly 50 percent expanding assistance to low income not a problem exclusive to Massachu- more likely than working former re- working families. setts. The Brookings Institution found cipients to have two or more problems It is significant that we are joining that nearly three-fifths of poor renting with their housing conditions. Re- together today not only in a bipartisan families nationwide pay more than half search has shown that poor housing manner, but also as members of the

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00081 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2588 CONGRESSIONAL RECORD — SENATE April 11, 2002 HELP and Finance Committees in rec- working, from 63.5 percent in 1996 to 73 pays, and waiting lists. Sound famil- ognition of the support and neccessity percent in 2001. iar? That’s right. With the cost of child of child care assistance. But, let’s face it. Most welfare leav- care today, even with additional re- Today we are introducing legislation ers are leaving for low wage jobs. On sources provided over the last several to reauthorize the Child Care and De- average, they are making $7 or $8 an years, too many of the states are velopment Block Grant. We are calling hour. They are working, but they are forced to restrict access to low income this legislation the ‘‘Access to High still struggling to get by. Many low working parents. Assistance that is Quality Child Care Act’’, because it’s wage parents move from one low wage provided often limits parents’ choices. about time that we put the focus on job to another, but rarely to a high We can do better than this. Too often ‘‘Development’’ back into the Child wage job. Therefore, even over time, I hear about low income families Care and Development Block Grant. these parents still need child care as- stringing together whatever care they Children are 20 percent of our popu- sistance to stay employed. can find so that they can hold their lation, but 100 percent of our future. I am very concerned that the Admin- jobs. For many this means Grandma Today, 78 percent of mothers with istration’s welfare reauthorization one day, an aunt the next day, an uncle school-age children are working. 65 per- plan, with no additional funds for child the following day, and then maybe the cent of mothers with children under 6 care, will result in States shifting as- aunt’s boyfriend. are working. And, more than half of sistance from the working poor to It’s no wonder that 46 percent of kin- mothers with infants are working. those on welfare. House Republicans dergarten teachers report that half or Most parents are simply not home joined with Secretary Thompson on more of their students are not ready full-time anymore. Many would like to Wednesday to announce the introduc- for kindergarten. be. For those who are, I introduced leg- tion of the President’s welfare plan in We need to look at these issues in an islation in the Senate to provide a tax the House. One change they made to integrated manner. The education bill credit for stay-at-home parents. Be- address child care needs was to allow that the President recently signed will cause they, too, deserve support in states additional flexibility to transfer require schools to test every child their efforts to raise their children. 50 percent of TANF funds to child care every year from 3rd through 8th grade, But most families don’t have a instead of 30 percent under current law. and the results of those tests will be choice. If the kids are going to eat, go Since States are already spending all used to hold schools accountable. But, if we expect children to be on to school, and have a roof over their of their TANF money and the Adminis- par by third grade, we need to look at heads, both parents must work. I don’t tration’s welfare plan adds significant how they start school. The learning know of any working parents who additional work requirements for gap doesn’t begin in kindergarten, it is think that balancing work and family TANF recipients, I just don’t see what first noticed in kindergarten. giving the States additional flexibility is easy. It’s not. If we are serious about education re- Since 1996, the number of families re- buys them in child care dollars. At form, we need to look at the child care ceiving child care assistance has grown best, it’s robbing Peter to pay Paul, settings children are in and figure out dramatically to about 2 million chil- taking cash assistance payments away how to strengthen them. Seventy-five dren today. But, for as many children from welfare parents to pay for child percent of children under 5 in working who receive assistance, available child care for working TANF parents. That families are in some type of child care care funds reach only one out of seven makes no sense. So, instead of robbing arrangement. Too often it is of poor eligible children. assistance from the working poor to quality. Child care in too many communities pay for child care assistance for wel- The bill we are introducing today is is not affordable. And in too many fare recipients, states would rob wel- geared toward improving the quality of more, it’s not available, or, even worse, fare assistance directly from the worst care to promote school readiness while of dubious quality. off who are not working to pay for expanding child care assistance to About 14 million children under the child care for those on welfare who are more working poor families. age of 6 are in some type of child care working? What’s the logic? How does The Child Care and Development arrangement every day. This includes this help anyone? Block Grant is designed to give parents about 6 million infants. The cost of We held two hearings on child care in maximum choice among child care pro- care averages between $4,000 and $10,000 March. At one hearing, a woman from viders. In our bill, we retain parental a year, more than the cost of tuition at Maine testified who earns about $18,000 choice, but provide States with a num- any state university. a year, pays half her income in child ber of ways to help child care providers Far too many of America’s parents care every week, but remains on a improve the quality of care that they are left with far too little choice. waiting list to receive assistance. In provide. Nearly 20 States currently have wait- the meantime, she and her two year old We set aside 5 percent of child care ing lists for child care assistance. sleep on her grandmother’s couch be- funds to promote workforce develop- Every State has difficulty meeting cause she can’t afford a place of her ment, helping States to improve child child care needs. No state serves every own. care provider compensation and bene- eligible child. At another hearing, a woman from fits, offer scholarships for training in Now, I know that there are some who Florida with $13,000 in earnings a year early childhood development, initiate say that we don’t need more money for recently lost her child care assistance or maintain career ladders for child- child care, that during the last few because in Florida families working hood care professional development, years we have pumped billions more their way off TANF have only 2 years foster partnerships with colleges and into child care. But, I think we have a of transitional child care. After that, ‘‘resource & referral’’, R&Rs, organiza- responsibility to look at what has hap- they must join the waiting list of some tions to promote teacher training in pened over the last few years as well. 48,000 children. Because she lost her the social, emotional, physical, and The welfare caseload dropped by 1.8 child care assistance and the state cognitive development of children, in- million families from 1996 to 1999. The waiting list is so long, this woman may cluding preliteracy and oral language majority of welfare leavers are now have to return to welfare. so necessary for school readiness. employed in low wage jobs. I’ve heard some say the answer is We set aside 5 percent of child care The share of TANF families working flexibility, that if we give the States funds to help States increase the reim- or participating in work-related activi- more flexibility, then they will step up bursement rate for child care providers ties while receiving TANF has soared to the plate. A more realistic pre- to ensure that parents have real to nearly 900,000 in fiscal year 99. diction would be that if we give states choices among quality providers. Under Between 1996 and 1999, the number of the resources, they will step up to the current law, child care payment rates employed single mothers grew from 1.8 plate. are supposed to be sufficient ‘‘to ensure million to 2.7 million. Let me tell you what flexibility with- equal access for eligible children to According to the Congressional Re- out sufficient resources leads to: low comparable child care services in the search Service, there has been a eligibility levels, no outreach, low pro- State or substate area that are pro- marked increase in single mothers vider reimbursement rates, high co- vided to children whose parents are not

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00082 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2589 eligible to receive assistance’’. But, welfare to work. The Child Care Devel- works its way through Committee con- low State reimbursement rates do not opment Block Grant, working with the sideration. offer parents comparable care. welfare law, provides more than $4.8 Approximately 14 million children The children of working parents need billion for child care in 2002, giving as- under the age of six are regularly in quality child care if they are to enter sistance to those families that are in child care, corresponding with the fact school ready to learn. Yet, 30 States re- transition as well as those who have al- that 65 percent of mothers with chil- quire no training in early childhood de- ready successfully made it out of the dren under age six are in the work- velopment before a teacher walks into welfare system, and helping them stay force. Considering that the goal of wel- a child care classroom. Forty-two out of the welfare system by helping fare reform is to move people off the States require no training in early them meet the high cost of child care. welfare rolls and onto payrolls, offering childhood development before a family The result is that since 1996, with more help with the cost of child care is one day care provider opens her home to parents working, more children than sure way to ensure that parents can unrelated children. ever before are receiving child care work. Child care is expensive and often Our bill would require States to set subsidy assistance. difficult to find. In some states, child training standards, just as they are re- The key to the successful welfare re- care costs as much as four years in a quired to do now for health and safety form, as witnessed by the 52 percent de- public college. And that’s even before under current law. Such training would cline in welfare caseloads since 1996, is considering the additional cost of car- go beyond CPR and first aid to include the system of work supports that pro- ing for infants, or for odd hour care for training in the social, emotional, phys- vides assistance to working parents to those working nights or weekends, or ical, and cognitive development of chil- help them make ends meet while in low care for children with special needs. dren. paying jobs, and sustain the family’s And the fact is, we know child care Relatives would be exempt, but successful transition from welfare to pays off in encouraging more parents through the quality funding in CCDBG, self sufficiency. And perhaps the most on welfare to find and keep a job. States could partner with colleges and critical of all work supports is child States have devoted significant fund- R&Rs to provide training to relatives care. Without access to quality child ing to child care assistance, and have and informal caregivers on a voluntary care, a parent is left with two choices, redirected the bulk of unspent federal basis. Initial evaluations in Con- to leave their child in a unsafe, and welfare dollars under the Temporary necticut of such efforts show that rel- often unsupervised situation, or to not Assistance for Needy Families block atives and informal caregivers are vol- work at all. Frankly, neither option is grant, TANF, and state Maintenance of untarily participating and are feeling acceptable. Effort, MOE, dollars to child care as- better about themselves and their This is the underlying philosophy be- sistance. In 2000 alone, states trans- interactions with the children have im- hind the legislation we introduce ferred $2.4 billion in TANF dollars to proved. today: to ensure that working parents the Child Care and Development Block Leading studies have found that have access to affordable, high quality Grant, and spent an additional $1.5 bil- early investments in children can re- child care. lion in direct TANF dollars for child duce the likelihood of being held back From the onset, our goal has been to care. Why? Because they realize that in school, reduce the need for special reauthorize the Child Care Develop- child care assistance keeps parents education, reduce the dropout rate of ment Block Grant to ensure the work- working and that is the key to self suf- high school students, and reduce juve- ing parents of America can continue ficiency. nile crime arrest rates. their jobs with the peace of mind that However, since parents who are mak- If we don’t improve both the quality their children are in a safe and quality ing the transition from welfare to work of child care that our children now child care situation, whether it is at a typically hold minimum wage jobs, spend so much time in and expand ac- child care center, a relative’s home, or those workers’ ability to place their cess to child care assistance to more of in their own home. children in quality child care often the working poor, we will be in danger We do so by increasing the amount of stretches their families’ budget to the of missing the boat on a whole genera- funding set aside to raise the quality of limit. And while these families may no tion of children. care, giving states the ability to im- longer be in need of, or eligible for, I think I speak for all of the cospon- prove strengthen their child care work- cash assistance, without child care as- sors of this legislation that we hope to force. States will have the option to sistance, they may be forced back on mark up child care in conjunction with choose how they will do so, but options the welfare rolls. the Finance Committee consideration include partnering with community The fact of the matter is, quality af- of welfare reform. colleges and Resource and Referral fordable child care remains difficult to Ms. SNOWE. Madam President, I rise agencies to provide training in early afford for families nationwide. This re- today to join my good friend and col- childhood development to the work- ality was made clear last month, when league Senator DODD, in introducing force, or by simply increasing child a young woman from Maine, Sheila the ‘‘Access to High Quality Child Care care worker’s wages. Astonishingly, Merkinson, testified before Senator Act of 2002.’’ This legislation seeks to the national average salary for a child DODD’s Health, Education, Labor and build upon Congress’ efforts in 1996 to care worker is between $15,000 and Pensions Subcommittee, that the cost reform the Nation’s welfare system and $16,000, and usually with few benefits. of her son’s child care absorbs 48 per- with it, overhaul the Nation’s largest This legislation would give states even cent of her weekly income, leaving her child care assistance program, the greater flexibility to decide how to im- to provide for her family with only half Child Care Development Block Grant. prove quality using even greater re- of her $18,000 a year earnings. Sadly, One of the most important tasks be- sources. Sheila’s situation is not unique. fore Congress this session is the reau- Additionally, our legislation sim- Our legislation will help Sheila, and thorization of two critical public as- plifies and streamlines the use of fed- thousands like her, by improving the sistance laws, the landmark 1996 wel- eral welfare dollars for child care, current child care delivery system, and fare reform law, and the Child Care De- whether it be spent directly on child increases the funding for the Child velopment Block Grant. Together, care or whether it is transferred to the Care Development Fund to meet the these two programs, which are inex- Child Care Development Block Grant, needs established by the welfare work tricably linked, comprise the backbone while holding these expenditures to the requirements. This link not only for our Nation’s support infrastructure same health and safety standards as makes sense, it also is critical, respon- for working families. those under the CCDBG. As a member sible and essential for the future of our The 1996 welfare law reformed the en- of the Senate Finance Committee, nation’s children and families. tire nature of the welfare system, end- which has the jurisdiction over the Mr. JEFFORDS. Madam President, I ing welfare as a way of life and making welfare reauthorization, fixing what’s would like to thank Senators DODD, it instead a temporary program, pro- wrong with the rules regarding the use SNOWE, DEWINE, BREAUX, REED, ROCKE- viding a hand up instead of a hand out of federal welfare funding for child care FELLER, and COLLINS for their hard to families making the transition from is a high priority of mine as welfare work and dedication to helping provide

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00083 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2590 CONGRESSIONAL RECORD — SENATE April 11, 2002 working families with access to high- provide working families with access real opportunity to nurture that devel- quality child care, and I am proud to be to child care and to improve the qual- opment and improve the quality of care an original co-sponsor of this impor- ity of child care around the State. For for our youngest children in this coun- tant legislation. Senator DODD and I a small State like Vermont, this is a try so that all of our children enter have been working together on this and lot of money, but is hardly sufficient to school ready to learn. I urge my col- other critical issues affecting children provide the type of access and quality leagues to support this bold, yet crit- for over twenty years now. And, I look necessary to make sure all kids enter ical initiative, so that indeed, every forward to continue working with him school ready to learn. The State would child truly has an opportunity to learn. and my esteemed colleagues as we need an additional $40 to $50 million to Mr. DEWINE. Madam President, I move forward in helping children and effectuate real change. rise today to join my colleagues, Sen- families across the country. And further, due to the recent eco- ators SNOWE and DODD, in intro- A recent Administration report re- nomic downturn, a majority of the ducing the Access to High Quality veals that as many as 75 percent of States has reported revenues well Child Care Act, ACCESS. This legisla- children under the age of five in this below expected levels. Accordingly, tion would reauthorize the Child Care country are in some form of child care while the States want to do more to and Development Block Grant through arrangement. And, as more mothers of further the quality and accessibility of 2007 and rename it the ACCESS Act. young children enter the workforce, child care, many States will actually We all know that our children are the working families need even greater ac- have less money to spend on helping most vulnerable members of our popu- cess to higher quality child care. In my families with quality care and edu- lation and our most valuable resources. State of Vermont, approximately 87 cation. Again, the President has pro- Today, 75 percent of children less than percent of Vermont children under the posed no additional funding to help five years of age are in some kind of age of six live with two working par- States provide families with quality regular childcare arrangement. Parents ents, and only 56 percent of the esti- child care. On the contrary, we must need to feel confident that the people mated need for child care in Vermont significantly increase funding for child caring for their children are giving the is met through regulated care. care to help States and local commu- love and support that children deserve. The evidence overwhelmingly dem- nities provide this vital support to The bill we are introducing today onstrates that the quality of early working families and their children. would help give parents that kind of child care and education has a signifi- I am proud to be an original co-spon- piece of mind. cant effect on children’s health and de- sor of the new Access to High Quality There are two pieces of the ACCESS velopment and their readiness for Child Care Act of 2002. Act that I would like to focus on be- school. According to a recent study, The 2002 ACCESS Act not only helps cause they are vital to improving the children participating in quality, com- provide families with greater access to accessibility of high quality care. Last prehensive early care and education child care, but also significantly raises year, Senator DODD and I introduced programs had a 29 percent higher rate the bar on the quality of child care in the Child Care Facilities Financing of high school completion, a 41 percent this country. The 2002 ACCESS Act Act, which uses small investments to reduction in special education place- provides States with real resources to help leverage existing community re- ment, a 40 percent reduction in the help them improve the quality of child sources. In my home State of Ohio, and rate of grade retention, a 33 percent care for working families. It allows for throughout the country, resources for lower rate of juvenile arrest, and a 42 great flexibility, yet holds States ac- the development or enhancement of percent reduction in arrest for a vio- countable for making real quality im- space are extremely scarce for lent offense. provements. childcare facilities. This leveraging ap- All other industrialized nations ac- Research shows that qualified and proach has been successful in helping knowledge the great value of early care well-trained providers are critical to expand childcare capacity. Let me give and education, and make the care and supporting and enhancing the cognitive you an example. education of toddlers and pre-schoolers and social development of children in Wonder World in Akron, OH, is an a mandatory part of their public edu- child care. The 2002 ACCESS Act helps urban childcare center located in an cation system, and pay for it. Unfortu- States strengthen the quality of the old church. This facility was in dire nately, the United States does not. child care workforce by setting aside a need of repairs. The upstairs space was Quality child care is available in the dedicated portion of funds to support poorly lit and not well ventilated, and United States to young parents, but in State initiatives that improve both the the downstairs was a damp basement. many cases, it costs more than ten qualifications and the compensation of The childcare rooms had no windows thousand dollars per year. This is al- child care providers. and no direct access to bathrooms or a most twice the cost of going to many The ACCESS Act also helps States kitchen. There was no outdoor play public colleges. increase child care provider reimburse- space. This environment, itself, had a Earlier last week, the President pro- ment rates to more accurately reflect negative effect on the children, no posed an initiative to strengthen early the true cost of care. It helps States matter how dedicated the caregivers. learning. He stated that he wants every provide training and technical assist- In spite of these dismal conditions, the child to enter school ready to learn. I ance to informal and family child care center had a waiting list. There were am pleased that the President is mak- providers as well as center-based pro- no other choices for affordable ing the care and education of our viders. It helps States develop and ex- childcare facilities within the commu- youngest children a priority. However, pand resource and referral services. It nity! if we really want to help all children helps families gain access to quality Fortunately, in Ohio, we have the enter school ready to learn, then we child care for infants and toddlers, and Ohio Community Development Finance need to actually provide the resources children with special needs. It provides Fund, OCDFF, which is a statewide to do so. The costs of quality child care oversight to child care centers situated nonprofit organization that works with exceed what most working families can on Federal property. And, the ACCESS local organizations in low-income com- afford. Yet, unbelievably, the President Act also helps States leverage funding munities. This fund was able to coordi- has proposed NO additional funding to to provide technical assistance, and nate public and private monies to build help families gain access to quality share in the cost of construction and a new eight-room childcare facility, a child care. This just doesn’t make any improvement of child care facilities facility that serves approximately 200 sense. and equipment. children! It is programs like OCDFF Many States across the country are I believe that we all recognize that that are possible under the Child Care working hard to improve the quality the foundation for learning begins in Facilities Fund. The ACCESS Act in- and accessibility of child care, but they the earliest years of life. However, a cludes the language from the Child simply do not have the resources to failure to nurture development in these Care Facilities Fund bill that Senator provide sufficient access and quality. early years is a lost opportunity for- DODD and I introduced, which author- For example, the State of Vermont ever. The 2002 ACCESS Act provides izes $50 million dollars for the Child spends approximately $33 million to States and local communities with a Care Facilities Fund.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00084 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2591 The second most important part of Congress continue its commitment to bioaccumulate in human and animal our ACCESS Act is a section that con- low-income families by presenting the tissue, biomagnify through the food tains vital language to help provide President with a bipartisan bill reau- chain, and are toxic to humans. These emergency childcare services. This sec- thorizing the Child Care and Develop- substances travel across international tion would allow parents to access ment Block Grant. boundaries, creating a circle of pollu- quality care when their childcare pro- I share the Administration’s goal to tion requiring a global solution. vider is sick or has a family emer- ‘‘Leave No Child Behind.’’ Children In April 2001, one year ago, President gency. The need for this type of care should not be the victims of welfare re- Bush announced his support for the was made clear by a tragic incident form, left behind with inconsistent Stockholm Convention on Persistent that happened in Ohio, when little two- child care accommodations that do not Organic Pollutants, POPs, and in May year-old Charles Knight’s mother had adequately prepare them for the chal- 2001, the U.S. signed the Convention. I to go to work and had no one available lenges to come. It is precisely this share the President’s enthusiasm for to care for Charles and his siblings. cycle of dependency and poverty that this sound and workable treaty that The boy’s father was supposed to welfare reform was intended to end. targets chemicals detrimental to baby-sit, but he failed to show up that In 1996, we fundamentally changed human health and the environment. day. Charles’ mother tried to find a the mentality of welfare from depend- The Stockholm Convention seeks the neighbor or family member to care for ence to independence by creating the elimination or restriction of produc- her children, but no one was available. Temporary Assistance to Needy Fami- tion and use of all intentionally pro- duced POPs. The POPs that are to be Tragically, she made the poor decision lies TANF, block grant. At the same initially eliminated include the pes- to leave her sleeping children unat- time, we made a commitment to poor ticides aldrin, chlordane, dieldrin, tended, so she could work her 12-hour families that were sent into the work endrin, heptachlor, mirex, and shift. She thought her boys’ father force at low wages that they would be toxaphene, and the industrial chemi- would eventually show up and baby-sit supported with access to quality child cals hexachlorobenzene and poly- while she worked. care. chlorinated biphenyls, PCBs. Use of the The father never arrived. Charles was Reliable child care is directly related pesticide DDT is limited to disease able to climb up on the balcony. This to job retention. A parent cannot be in control until safe, effective, and afford- young, unsupervised child fell nine sto- two places at once, and an employer is able alternatives are identified. The ries off the apartment balcony to his not likely to retain an employee that Convention also seeks the continuing death. His mother was charged with is unreliable at work due to a lack of minimization and, where feasible, ulti- manslaughter, and his father was consistent care for their child. It is not mate elimination of releases of unin- charged with child neglect. just about getting a job, this is about tentionally produced POPs such as This sad incident just might have helping families keep their jobs and dioxins and furans. been prevented with emergency move up the career ladder. Today, I am introducing a bill to childcare centers. With access to such In Louisiana, I hear over and over amend the Toxic Substances Control a center, Charles’ mother could have again about access to safe and afford- Act, TSCA, and the Federal Insecti- gone to work knowing her children able child care. The legislation being cide, Fungicide, and Rodenticide Act, were safe and secure. introduced today will ensure that child FIFRA, to implement the Stockholm Just last month, Summit County, care provided to these families is not Convention on POPs and the Protocol OH, started a program called ChildCare only affordable, but that it meets cer- on POPs to the Convention on Long- NOW in response to an alarming spike tain safety and quality standards to Range Transboundary Air Pollution. in child death and injuries. ChildCare ensure children are placed in an envi- These are the first amendments to NOW is being offered at 17 centers in ronment where they can grow and TSCA since its enactment in October the Akron-Canton area of Ohio. These learn. 1976. childcare centers are opening their Access to child care is often limited Currently in the U.S., the registra- doors to many parents whose baby-sit- by states to families with the lowest tions for nine of the twelve POPs cov- ter cancels at the last minute. This incomes. National studies show only ered by the Stockholm Convention program is not meant as a permanent 12–15 percent of children eligible for have been canceled, the manufacture of childcare replacement but when an federally subsidized child care get it. PCBs has been banned, and stringent ‘‘emergency’’ arises, these are safe al- And in many rural areas, there are no controls have been placed on the re- ternatives to parental care. child care providers at all. So as Con- lease of the other covered chemicals. The language I have included in this gress debates increasing work require- The POPs Implementation Act of 2002 bill, emphasizes that local and State ments for people on welfare, the in- provides EPA with the authority, childcare agencies may use funds on creasing need for working families to which it currently does not have, to emergency childcare programs, pro- have quality child care must also be prohibit the manufacture for export of grams like ChildCare NOW. More im- taken into consideration. the twelve POPs and POPs that are portantly, the next time a mother I commend Senators DODD and SNOWE identified in the future. In addition, must chose between going to work and for their efforts to increase access to this legislation provides a science- leaving her children all alone or stay- child care for low income families, based process consistent with the ing at home and losing a day’s pay, she while improving the quality of child Stockholm Convention for listing addi- will have a third option, to leave her care services. tional chemicals exhibiting POPs char- children in an emergency child care acteristics, thereby attempting to center. I think that is an important op- By Mr. JEFFORDS: avoid the further production and use of tion that we must give to working S. 2118. A bill to amend the Toxic POPs. To assist in this goal, the Na- mothers. It is my hope that this lan- Substances Control Act and the Fed- tional Academy of Sciences is directed guage will prevent future tragedies eral Insecticide, Fungicide, and to develop new strategies to screen like the death of two-year-old Charles Rodenticide Act to implement the candidate POPs and new sampling Knight. Stockholm Convention on Persistent methodologies to identify future POPs. Once again, I want to thank Senator Organic Pollutants and the Protocol on Although a previous EPA draft in- SNOWE and Senator DODD for their Persistent Organic Pollutants to the cluded a mechanism for adding new work on the ACCESS Act. This bill is Convention on Long-Range Trans- chemicals, the Administration’s cur- necessary for parents who work, espe- boundary Air Pollution; to the Com- rent POPs implementation package cially parents who have worked hard to mittee on Environment and Public does not. The Stockholm Convention get off welfare. They should be con- Works. was not intended to be a static agree- fident that their children are receiving Mr. JEFFORDS. Madam President, I ment, as it explicitly provides for the quality care. rise today to introduce the POPs Im- additional of new chemicals. If we are Mr. BREAUX. Madam President. I plementation Act of 2002. to be most effective in globally reduc- am pleased to be a cosponsor of the 2002 POPs, or persistent organic pollut- ing these dangerous chemicals, we ACCESS Act. It is imperative that the ants, are chemicals that are persistent, must fully commit to this treaty.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00085 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2592 CONGRESSIONAL RECORD — SENATE April 11, 2002 By Mr. GRASSLEY (for himself Mr. President, I ask unanimous con- ‘‘(A) IN GENERAL.—The term ‘acquired enti- and Mr. BAUCUS): sent that the text of the bill and a ty’ means the domestic corporation or part- S. 2119. A bill to amend the Internal technical explanation be printed in the nership substantially all of the properties of which are directly or indirectly acquired in Revenue Code of 1986 to provide for the RECORD. There being no objection, the mate- an acquisition described in subsection tax treatment of inverted corporate en- (a)(2)(A) to which this subsection applies. rial was ordered to be printed in the tities and of transactions with such en- ‘‘(B) AGGREGATION RULES.—Any domestic tities, and for other purposes; to the RECORD, as follows: person bearing a relationship described in Committee on Finance. S. 2119 section 267(b) or 707(b) to an acquired entity Mr. GRASSLEY. Madam President, I Be it enacted by the Senate and House of Rep- shall be treated as an acquired entity with rise today to offer a bill on behalf of resentatives of the United States of America in respect to the acquisition described in sub- Senator BAUCUS and myself, to address Congress assembled, paragraph (A). the growing problem of corporate in- SECTION 1. SHORT TITLE. ‘‘(3) APPLICABLE PERIOD.—For purposes of This Act may be cited as the ‘‘Reversing versions. Our legislation, the ‘‘Revers- this section— the Expatriation of Profits Offshore Act’’. ‘‘(A) IN GENERAL.—The term ‘applicable pe- ing the Expatriation of Profits Off- SEC. 2. TAX TREATMENT OF INVERTED COR- riod’ means the period— shore,’’ REPO Act, will stem the rising PORATE ENTITIES. ‘‘(i) beginning on the first date properties tide of corporate inversions. (a) IN GENERAL.—Subchapter C of chapter are acquired as part of the acquisition de- It’s tax season. Citizens across Amer- 80 of the Internal Revenue Code of 1986 (re- scribed in subsection (a)(2)(A) to which this ica are filing their taxes this week. lating to provisions affecting more than one subsection applies, and They’re paying their taxes. A lot of subtitle) is amended by adding at the end the ‘‘(ii) ending on the date which is 10 years following new section: taxes. But some corporate citizens are after the last date properties are acquired as ‘‘SEC. 7874. RULES RELATING TO INVERTED COR- relaxing this tax season. They’ve part of such acquisition. PORATE ENTITIES. ‘‘(B) SPECIAL RULE FOR INVERSIONS OCCUR- moved their mailing address out of the ‘‘(a) INVERTED CORPORATIONS TREATED AS RING BEFORE MARCH 21, 2002.—In the case of country. They’ve set up a filing cabinet DOMESTIC CORPORATIONS.— any acquired entity to which paragraph and a mail box overseas. This way, ‘‘(1) IN GENERAL.—If a foreign incorporated (1)(A) applies, the applicable period shall be they escape from millions of dollars of entity is treated as an inverted domestic cor- the 10-year period beginning on January 1, Federal taxes. poration, then, notwithstanding section 2002. 7701(a)(4), such entity shall be treated for These corporate expatriations aren’t purposes of this title as a domestic corpora- ‘‘(c) TAX ON INVERSION GAINS MAY NOT BE illegal. But they’re sure immoral. Dur- tion. OFFSET.—If subsection (b) applies— ing a war on terrorism, coming out of ‘‘(2) INVERTED DOMESTIC CORPORATION.—For ‘‘(1) IN GENERAL.—The taxable income of an a recession, everyone ought to be pull- purposes of this section, a foreign incor- acquired entity for any taxable year which ing together. But instead, these compa- porated entity shall be treated as an in- includes any portion of the applicable period nies are using recession and terrorism verted domestic corporation if, pursuant to a shall in no event be less than the inversion plan (or a series of related transactions)— gain of the entity for the taxable year. to get out of the United States. If com- ‘‘(2) CREDITS NOT ALLOWED AGAINST TAX ON panies don’t have their hearts in Amer- ‘‘(A) the entity completes after March 20, 2002, the direct or indirect acquisition of sub- INVERSION GAIN.—Credits shall be allowed ica, they ought to get out. stantially all of the properties held directly against the tax imposed by chapter 1 on an Adding insult to injury, some of or indirectly by a domestic corporation or acquired entity for any taxable year de- these companies have fat contracts substantially all of the properties consti- scribed in paragraph (1) only to the extent with the government. So they’ll take tuting a trade or business of a domestic part- such tax exceeds the product of— other people’s tax dollars to make a nership, ‘‘(A) the amount of taxable income de- profit, but they won’t pay their share ‘‘(B) after the acquisition at least 80 per- scribed in paragraph (1) for the taxable year, and of taxes to keep America strong. cent of the stock (by vote or value) of the en- tity is held— ‘‘(B) the highest rate of tax specified in The bill Chairman BAUCUS and I are ‘‘(i) in the case of an acquisition with re- section 11(b)(1). introducing today will place corporate spect to a domestic corporation, by former ‘‘(3) SPECIAL RULES FOR PARTNERSHIPS.—In inversions on the endangered species shareholders of the domestic corporation by the case of an acquired entity which is a list. Our bill requires the IRS to look reason of holding stock in the domestic cor- partnership— at where a company has its heart and poration, or ‘‘(A) the limitations of this subsection soul, not where it has a filing cabinet ‘‘(ii) in the case of an acquisition with re- shall apply at the partner rather than the and a mail box. If a company remains spect to a domestic partnership, by former partnership level, controlled in the United States, our partners of the domestic partnership, and ‘‘(B) the inversion gain of any partner for any taxable year shall be equal to the sum bill requires the company to pay its ‘‘(C) the expanded affiliated group which after the acquisition includes the entity does of— fair share of taxes, plain and simple. not have substantial business activities in ‘‘(i) the partner’s distributive share of in- When I am firmly committed to halt- the foreign country in which or under the version gain of the partnership for such tax- ing corporate inversions, I also recog- law of which the entity is created or orga- able year, plus nize that the rising tide of corporate nized when compared to the total business ‘‘(ii) gain required to be recognized for the expatriations demonstrates that our activities of such expanded affiliated group. taxable year by the partner under section international tax rules are deeply ‘‘(b) PRESERVATION OF DOMESTIC TAX BASE 367(a), 741, or 1001, or under any other provi- flawed. In many cases, those flaws seri- IN CERTAIN INVERSION TRANSACTIONS TO sion of chapter 1, by reason of the transfer WHICH SUBSECTION (a) DOES NOT APPLY.— during the applicable period of any partner- ously undermine an American com- ‘‘(1) IN GENERAL.—If a foreign incorporated ship interest of the partner in such partner- pany’s ability to compete in the global entity would be treated as an inverted do- ship to the foreign incorporated entity, and marketplace. This competitive dis- mestic corporation with respect to an ac- ‘‘(C) the highest rate of tax specified in the advantage is often cited by companies quired entity if either— rate schedule applicable to the partner under that engage in inversion transactions. ‘‘(A) subsection (a)(2)(A) were applied by chapter 1 shall be substituted for the rate of I believe that we need to bring our substituting ‘on or before March 20, 2002’ for tax under paragraph (2)(B). international tax system in line with ‘after March 20, 2002’ and subsection (a)(2)(B) ‘‘(4) INVERSION GAIN.—For purposes of this our open market trade policies, and were applied by substituting ‘more than 50 section, the term ‘inversion gain’ means the wish to affirm for the record that re- percent’ for ‘at least 80 percent’, or gain required to be recognized under section ‘‘(B) subsection (a)(2)(B) were applied by 304, 311(b), 367, 1001, or 1248, or under any form of our international tax laws is substituting ‘more than 50 percent’ for ‘at other provision of chapter 1, by reason of the necessary for our U.S. businesses to re- least 80 percent’, transfer during the applicable period of main competitive in the global mar- then the rules of subsection (c) shall apply to stock or other properties by an acquired en- ketplace. Moreover, those U.S. compa- any inversion gain of the acquired entity tity— nies that rejected doing a corporate in- during the applicable period and the rules of ‘‘(A) as part of the acquisition described in version are left to struggle with the subsection (d) shall apply to any related subsection (a)(2)(A) to which subsection (b) complexity and competitive impedi- party transaction of the acquired entity dur- applies, or ments of our international tax rules. ing the applicable period. This subsection ‘‘(B) after such acquisition to a foreign re- shall not apply for any taxable year if sub- lated person. This is an unjust result for companies section (a) applies to such foreign incor- ‘‘(5) COORDINATION WITH SECTION 172 AND that chose to remain in the United porated entity for such taxable year. MINIMUM TAX.—Rules similar to the rules of States of America. I am committed to ‘‘(2) ACQUIRED ENTITY.—For purposes of paragraphs (3) and (4) of section 860E(a) shall remedying this inequity. this section— apply for purposes of this subsection.

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‘‘(d) SPECIAL RULES APPLICABLE TO RE- ‘‘(2) EXPANDED AFFILIATED GROUP.—The REVERSING THE EXPATRIATION OF PROFITS LATED PARTY TRANSACTIONS.— term ‘expanded affiliated group’ means an OFFSHORE, REPO, ACT—TECHNICAL EXPLA- ‘‘(1) ANNUAL PREAPPROVAL REQUIRED.— affiliated group as defined in section 1504(a) NATION OF THE STAFF OF THE COMMITTEE ON ‘‘(A) IN GENERAL.—An acquired entity to but without regard to section 1504(b), except FINANCE which subsection (b) applies shall enter into that section 1504(a) shall be applied by sub- Senate Finance Committee Ranking Mem- an annual preapproval agreement under sub- stituting ‘more than 50 percent’ for ‘at least ber Chuck Grassley, R–IA, and Chairman paragraph (C) with the Secretary for each 80 percent’ each place it appears. Max Baucus, D–MT, today are offering their taxable year which includes a portion of the ‘‘(3) FOREIGN INCORPORATED ENTITY.—The legislative response to the growing problem applicable period. term ‘foreign incorporated entity’ means any of corporate inversions, the ‘‘Reversing the ‘‘(B) FAILURES TO ENTER AGREEMENTS.—If entity which is, or but for subsection (a)(1) Expatriation of Profits Offshore’’, REPO, an acquired entity fails to meet the require- would be, treated as a foreign corporation for Act. Following is a brief summary of the ments of subparagraph (A) for any taxable purposes of this title. REPO Act. year, then for such taxable year— ‘‘(4) FOREIGN RELATED PERSON.—The term In general, this legislation would curtail ‘‘(i) there shall not be allowed any deduc- ‘foreign related person’ means, with respect the tax benefits sought by U.S. companies tion, or addition to basis or cost of goods to any acquired entity, a foreign person undertaking inversion transactions. The leg- which— sold, for amounts paid or incurred, or losses islation would apply to two types of inver- ‘‘(A) bears a relationship to such entity de- incurred, by reason of a transaction between sion transactions, which would be subject to scribed in section 267(b) or 707(b), or the acquired entity and a foreign related per- different regimes under the proposal. ‘‘(B) is under the same common control son, The first type would be a ‘‘pure’’ or nearly (within the meaning of section 482) as such ‘‘(ii) any transfer or license of intangible pure inversion, in which: 1. a U.S. corpora- entity. property (as defined in section 936(h)(3)(B)) tion becomes a subsidiary of a foreign cor- ‘‘(f) REGULATIONS.—The Secretary shall between the acquired entity and a foreign re- poration or otherwise transfers substantially lated person shall be disregarded, and provide such regulations as are necessary to carry out this section, including regulations all of its properties to a foreign corporation; ‘‘(iii) any cost-sharing arrangement be- 2. the former shareholders of the U.S. cor- tween the acquired entity and a foreign re- providing for such adjustments to the appli- cation of this section as are necessary to pre- poration end up with 80 percent or more (by lated person shall be disregarded. vent the avoidance of the purposes of this vote or value) of the stock of the foreign cor- ‘‘(C) PREAPPROVAL AGREEMENT.—For pur- section, including the avoidance of such pur- poration after the transaction; and 3. the for- poses of subparagraph (A), the term poses through— eign corporation, including its subsidiaries, ‘preapproval agreement’ means a prefiling, ‘‘(1) the use of related persons, pass- does not have substantial business activities advance pricing, or other agreement speci- through or other noncorporate entities, or in its country of incorporation. The legisla- fied by the Secretary which— other intermediaries, or tion would deny the intended tax benefits of ‘‘(i) is entered into at such time as may be ‘‘(2) transactions designed to have persons this type of inversion by deeming the top- specified by the Secretary, and cease to be (or not become) members of ex- tier foreign corporation to be a domestic cor- ‘‘(ii) contains such provisions as the Sec- panded affiliated groups or related persons.’’. poration for all purposes of the Internal Rev- retary determines necessary to ensure that (b) TREATMENT OF AGREEMENTS.— enue Code. This proposal would be effective the requirements of sections 163(j), 267(a)(3), (1) CONFIDENTIALITY.— as to inversion transactions occurring on or 482, and 845, and any other provision of this (A) TREATMENT AS RETURN INFORMATION.— after March 21, 2002. title applicable to transactions between re- Section 6103(b)(2) of the Internal Revenue For purposes of this proposal, corporations lated persons and specified by the Secretary, Code of 1986 (relating to return information) with no significant operating assets, few or are met. is amended by striking ‘‘and’’ at the end of no permanent employees, or no significant ‘‘(2) MODIFICATIONS OF LIMITATION ON INTER- subparagraph (C), by inserting ‘‘and’’ at the real property in the foreign country of incor- EST DEDUCTION.—In the case of an acquired end of subparagraph (D), and by inserting poration would not be treated as meeting the entity to which subsection (b) applies, sec- after subparagraph (D) the following new substantial business activities test. In addi- tion 163(j) shall be applied— subparagraph: tion, companies would not be considered to ‘‘(A) without regard to paragraph (2)(A)(ii) ‘‘(E) any preapproval agreement under sec- be conducting substantial business activities thereof, and tion 7874(d)(1) to which any preceding sub- in the country of incorporation by merely ‘‘(B) by substituting ‘25 percent’ for ‘50 per- paragraph does not apply and any back- holding board meetings in the foreign coun- cent’ each place it appears in paragraph ground information related to the agreement try or by relocating a limited number of ex- (2)(B) thereof. or any application for the agreement,’’. ecutives to the foreign jurisdiction. ‘‘(e) OTHER DEFINITIONS AND SPECIAL (B) EXCEPTION FROM PUBLIC INSPECTION AS The second type of inversion covered by RULES.—For purposes of this section— WRITTEN DETERMINATION.—Section the legislation would be a transaction simi- ‘‘(1) RULES FOR APPLICATION OF SUBSECTION 6110(b)(1)(B) of such Code is amended by lar to the ‘‘pure’’ inversion defined above, ex- (a)(2).—In applying subsection (a)(2) for pur- striking ‘‘or (D)’’ and inserting ‘‘, (D), or cept that the 80 percent ownership threshold poses of subsections (a) and (b), the following (E)’’. is not met. In such a case, if a greater-than- rules shall apply: (2) REPORTING.—The Secretary of the 50 percent but less than 80 percent ownership ‘‘(A) CERTAIN STOCK DISREGARDED.—There Treasury shall include with any report on threshold is met, then a second set of rules shall not be taken into account in deter- advance pricing agreements required to be would apply to these ‘‘limited’’ inversions. mining ownership for purposes of subsection submitted after the date of the enactment of Under these rules, the inversion trans- (a)(2)(B)— this Act under section 521(b) of the Ticket to action would be respected, i.e., the foreign ‘‘(i) stock held by members of the expanded Work and Work Incentives Improvement Act corporation would be respected as foreign, affiliated group which includes the foreign of 1999 (Public Law 106–170) a report regard- but: 1. the corporate-level ‘‘toll charge’’ for incorporated entity, or ing preapproval agreements under section establishing the inverted structure would be ‘‘(ii) stock of such entity which is sold in 7874(d)(1) of the Internal Revenue Code of strengthened, and 2. restrictions would be a public offering related to the acquisition 1986. Such report shall include information placed on the company’s ability to reduce described in subsection (a)(2)(A). similar to the information required with re- U.S. tax on U.S.-source income going for- ‘‘(B) PLAN DEEMED IN CERTAIN CASES.—If a spect to advance pricing agreements and ward. These measures generally would apply foreign incorporated entity acquires directly shall be treated for confidentiality purposes for a 10-year period following the inversion. or indirectly substantially all of the prop- in the same manner as the reports on ad- This prong of the proposal would be effective erties of a domestic corporation or partner- vance pricing agreements are treated under as to inversion transactions in this second ship during the 4-year period beginning on section 521(b)(3) of such Act. category occurring on or after March 21, the date which is 2 years before the owner- (c) CONFORMING AMENDMENTS.—The table 2002. It would also be effective as to all struc- ship requirements of subsection (a)(2)(B) are of sections for subchapter C of chapter 80 of tures arising from pure inversions or limited met, such actions shall be treated as pursu- the Internal Revenue Code of 1986 is amended inversions that are grandfathered under the ant to a plan. by adding at the end the following new item: legislation, but it would be applied to those ‘‘(C) CERTAIN TRANSFERS DISREGARDED.— ‘‘Sec. 7874. Rules relating to inverted cor- structures prospectively. The transfer of properties or liabilities (in- porate entities.’’ Under the legislation, the corporate-level cluding by contribution or distribution) shall ‘‘toll charge’’ imposed under sections 304, SEC. 3. REINSURANCE OF UNITED STATES RISKS be disregarded if such transfers are part of a IN FOREIGN JURISDICTIONS. 311(b), 367, 1001, 1248, or any other provision plan a principal purpose of which is to avoid (a) IN GENERAL.—Section 845(a) of the In- of the Internal Revenue Code with respect to the purposes of this section. ternal Revenue Code of 1986 (relating to allo- the transfer of controlled foreign corporation ‘‘(D) SPECIAL RULE FOR RELATED PARTNER- cation in case of reinsurance agreement in- stock or other assets from a U.S. corporation SHIPS.—For purposes of applying subsection volving tax avoidance or evasion) is amended to a foreign corporation would be taxable, (a)(2) to the acquisition of a domestic part- by striking ‘‘source and character’’ and in- without offset by any other tax attributes, nership, except as provided in regulations, serting ‘‘amount, source, or character’’. e.g., net operating losses or foreign tax cred- all partnerships which are under common (b) EFFECTIVE DATE.—The amendments its. No similar ‘‘walling-off’’ of toll charges control (within the meaning of section 482) made by this section shall apply to any risk would apply to shareholder-level toll charges shall be treated as 1 partnership. reinsured after April 11, 2002. imposed under section 367(a).

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00087 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2594 CONGRESSIONAL RECORD — SENATE April 11, 2002 In addition, no deductions or additions to tion or an individual, doesn’t pay their SUBMITTED RESOLUTIONS basis or cost of goods sold for transactions fair share of taxes, we all pay. The with foreign related parties would be per- REPO Act cracks down on corporations mitted unless the taxpayer concludes an an- that avoid taxes at the expense of hon- nual pre-filing agreement, advance pricing est, hardworking American taxpayers. agreement, or other agreement with the IRS, SENATE RESOLUTION 236—COM- a ‘‘preapproval agreement’’, to ensure that The local hardware store in Butte, MENDING THE UNIVERSITY OF all related-party transactions comply with MT, isn’t re-incorporating in Bermuda MINNESOTA-DULUTH BULLDOGS all relevant provisions of the Code, including or one of these tax haven countries. He FOR WINNING THE 2002 NA- sections 482, 845, 163(j), and 267(a)(3). Simi- is keeping his company an American TIONAL COLLEGIATE ATHLETIC larly, the transfer or license of intangible company. The companies reincor- ASSOCIATION DIVISION I WOM- property from a U.S. corporation to a related porating in tax haven countries, and EN’S ICE HOCKEY NATIONAL foreign corporation would be disregarded, their executives, are still physically lo- CHAMPIONSHIP and cost-sharing arrangements would not be cated in the United States. Their ex- respected unless approved under such an ecutives and employees enjoy all the agreement. Mr. DAYTON (for himself and Mr. The confidentiality and disclosure rules privileges afforded to honest U.S. tax- WELLSTONE) submitted the following normally applicable to advance pricing payers. resolution; which was considered and I understand that the corporate in- agreements would apply to all preapproval agreed to: agreements entered into pursuant to this version issue is complex. I also under- legislation, and the parameters for the IRS’s stand that, over the long term, we may S. RES. 236 statutorily required annual APA report need to consider whether the structure Whereas on March 24, 2002, the defending would be amended to require a summary sec- of the U.S. international tax rules cre- NCAA Women’s Ice Hockey National Cham- tion for inversion transactions. ates an incentive for U.S. corporations pion, the University of Minnesota-Duluth The second set of measures also includes to shift their operations abroad in Bulldogs, won the National Championship modifications to the ‘‘earnings stripping’’ order to remain competitive. For now, for the second straight year; rules of section 163(j) (which deny or defer Whereas Minnesota-Duluth defeated Brown deductions for certain interest paid to for- we are putting a stop to the erosion of the U.S. tax base through these tax University in the championship game by the eign related parties), as applied to inverted score of 3-2, having previously defeated Niag- corporations. The legislation would elimi- avoidance schemes. ara University in the semi-final by the same nate the debt-equity threshold generally ap- Our legislation distinguishes between score; plicable under that provision and reduce the two types of inversions, pure inversions Whereas sophomore Tricia Guest scored 50 percent threshold for ‘‘excess interest ex- and limited inversions. A pure inver- the unassisted game-winning goal in the pense’’ to 25 percent. sion is when a U.S. company becomes a third period, and assisted in the Bulldogs’ The provisions of both prongs of this legis- subsidiary of a foreign company or opening goal in the first period; lation also would apply to certain partner- shifts substantially all of its properties Whereas during the 2001-2002 season, the ship transactions similar to corporate inver- Bulldogs won 24 games, while losing only 6, sion transactions. to a foreign corporation and 80 percent and tying 4; The legislation also strengthens the of more of the shareholders in the Whereas forward Joanne Eustace and present-law rules of section 845(a) in a man- original U.S. company are now share- defensewoman Larissa Luther were both se- ner intended to address reinsurance trans- holders in the new foreign company. lected to the 2002 All-Tournament team; actions with foreign related parties that The foreign company has no substan- Whereas forward and team captain Maria have the effect of stripping out earnings of a tial business activity in the foreign tax Rooth led the Bulldogs in scoring the last 2 U.S. corporation, regardless of whether an haven country. Companies that hold years, and was named to the Jofa Women’s inversion transaction has occurred. The leg- board meetings in the tax haven coun- University Division Ice Hockey All-Amer- islation modifies the present-law provision try or send a few employees or execu- ican first team, the only first team repeat permitting the Treasury Department to allo- tives to work in the tax haven country from 2001; cate or recharacterize items of investment will not meet the substantial business Whereas Minnesota-Duluth Head Coach, income, premiums, deductions, assets, re- Shannon Miller, after winning the National serves, credits or other items, or to make activity standard. Under our legisla- tion, the parent company will be treat- Championship in 2 consecutive years, was other adjustments, under a reinsurance named a finalist for the 2002 NCAA Division agreement between related parties, if nec- ed as a U.S. company. I Coach of the Year; and essary to reflect the proper source and char- A limited inversion transaction is Whereas all of the team’s players showed acter of income. The legislation permits when more than 50 percent and fewer tremendous dedication throughout the sea- such an allocation, recharacterization or ad- than 80 percent of the shareholders are son toward the goal of winning the National justment if necessary to reflect the proper the same. The new foreign company is Championship: Now, therefore, be it amount, source or character of income. This recognized as a foreign company for Resolved, That the Senate— provision would be effective for any risk re- tax purposes but there is a tax cost. insured after April 11, 2002. (1) commends the University of Minnesota- The company won’t be able to use tax Duluth Women’s Ice Hockey Team for win- Mr. BAUCUS. Madam President, I am attributes, such as net operating losses ning the 2002 NCAA Division I Collegiate Ice pleased to be a co-sponsor, with Sen- and foreign tax credits, to offset the Hockey National Championship; ator GRASSLEY, of this important piece gain incurred upon inverting. Finally, (2) recognizes the achievements of all the of legislation. Our legislation, Revers- the company won’t be able to strip team’s players, coaches, and support staff, ing the Expatriation of Profits Off- earnings out of the U.S. to avoid U.S. and invites them to the United States Cap- itol to be honored; shore, (REPO), Act, is designed to put taxes. the brakes on the potential rush to (3) requests that the President— This week is the last week leading up (A) recognize the achievements of the Uni- move U.S. corporate headquarters to to the April 15 tax filing deadline. versity of Minnesota-Duluth Women’s Ice tax havens, through increasingly pop- Families in Montana and across the na- Hockey Team; and ular transactions known as corporate tion are sitting down at their kitchen (B) invite them to the White House for an inversions. Prominent U.S. companies tables, or at their home computers, and appropriate ceremony honoring a national are literally re-incorporating in off- figuring out their taxes. The calcula- championship team; and shore tax havens in order to avoid U.S. tions may be complex, the tax bite may (4) directs the Secretary of the Senate to— taxes. They are, in effect, renouncing seem high, but by and large, with quiet (A) make available enrolled copies of this their U.S. citizenship to cut their tax patriotism, average Americans will Resolution to the University of Minnesota- Duluth for appropriate display; and bill. step up and pay the tax they owe. (B) transmit an enrolled copy of the Reso- Tax avoidance costs honest taxpayers They’re counting on us to make sure lution to every coach and member of the 2002 tens of billions of dollars each year. that sophisticated corporations pay NCAA Division I Women’s Ice Hockey Na- When one taxpayer, whether a corpora- their fair share, as well. tional Championship Team.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00088 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2595 SENATE RESOLUTION 237—COM- SENATE RESOLUTION 238—COM- and invites them to the United States Cap- MENDING THE UNIVERSITY OF MENDING THE UNIVERSITY OF itol to be honored; MINNESOTA GOLDEN GOPHERS MINNESOTA GOLDEN GOPHERS (3) requests that the President recognize FOR WINNING THE 2002 NCAA DI- the achievements of the University of Min- FOR WINNING THE 2002 NA- nesota wrestling team and invite them to TIONAL COLLEGIATE ATHLETIC VISION I WRESTLING NATIONAL the White House for an appropriate cere- ASSOCIATION DIVISION I MEN’S CHAMPIONSHIP mony honoring a national championship HOCKEY NATIONAL CHAMPION- Mr. WELLSTONE (for himself and team; and (4) directs the Secretary of the Senate to SHIP Mr. DAYTON) submitted the following transmit a copy of this resolution to the resolution; which was considered and President of the University of Minnesota. Mr. DAYTON (for himself and Mr. agreed to: WELLSTONE) submitted the following f S. RES. 238 resolution; which was considered and Whereas the University of Minnesota wres- AMENDMENTS SUBMITTED AND agreed to: tling team successfully defended its 2001 na- PROPOSED S. RES. 237 tional title by winning the 2002 National Col- SA 3114. Mrs. FEINSTEIN proposed an legiate Athletic Association championship amendment to amendment SA 2917 proposed Whereas on April 6, 2002, the University of on March 23, 2002, in Albany, New York; by Mr. DASCHLE (for himself and Mr. BINGA- Minnesota Men’s Hockey Team won the Na- Whereas the victory was the first back-to- MAN) to the bill (S. 517) to authorize funding tional Championship for the first time in 23 back national championship in an intercolle- the Department of Energy to enhance its years; giate athletic competition in University of mission areas through technology transfer Whereas Minnesota defeated the Univer- Minnesota history since the Golden Gophers and partnerships for fiscal years 2002 through sity of Maine in overtime in the champion- captured 2 consecutive national champion- 2006, and for other purposes. ship game by the score of 4–3, having pre- ship football titles in 1940 and 1941; SA 3115. Mrs. FEINSTEIN (for herself and viously defeated the University of Michigan Whereas the University of Minnesota won Mrs. BOXER) proposed an amendment to in the semifinal by the score of 3–2; the national crown with 126.5 points, over amendment SA 2917 proposed by Mr. Whereas Grant Potulny, from North Da- Iowa State (103 points), Oklahoma (101.5 DASCHLE (for himself and Mr. BINGAMAN) to kota, the team’s only non-Minnesotan, points), Iowa (89 points) and Oklahoma State the bill (S. 517) supra. scored the winning goal in overtime and was (82.5 points); SA 3116. Mr. VOINOVICH (for himself and named the tournament’s Most Outstanding Whereas the University of Minnesota be- Ms. LANDRIEU) submitted an amendment in- tended to be proposed to amendment SA 2917 Player; came the first Division I wrestling team proposed by Mr. DASCHLE (for himself and Whereas during the 2001–2002 season, the since the 1995–96 season to go undefeated in Mr. BINGAMAN) to the bill (S. 517) supra; Golden Gophers won 32 games, while losing dual meets and win the National Duals, con- ference and NCAA team titles in a single sea- which was ordered to lie on the table. only 8, and tying 4; son and the first team to win these titles in SA 3117. Mr. DODD (for himself and Mr. Whereas senior defenseman Jordan consecutive seasons since the 1994–95 and MCCONNELL) proposed an amendment to the Leopold was named the winner of the Hobey 1995–96 seasons; bill S. 565, to require States and localities to Baker Memorial Award, given annually to Whereas the Golden Gophers wrestling meet uniform and nondiscriminatory elec- the college hockey Player of the Year, and team has finished in the top 3 in the Nation tion technology and administration require- was also named an All-American for the sec- in the last 6 years: placing third in 1997, ments applicable to Federal elections, to es- ond consecutive year; being the runner up in 1998 and 1999; placing tablish grant programs to provide assistance Whereas senior forward Johnny Pohl was third in 2000; and winning the national title to States and localities to meet those re- also named to the All-American team, and in 2001 and 2002; quirements and to improve election tech- led the NCAA Division I in scoring; Whereas the University of Minnesota wres- nology and the administration of Federal Whereas senior goalie Adam Hauser was tling team has now placed in the top 10 at elections, to establish the Election Adminis- named to the ‘‘Frozen Four’’ All-Tour- the NCAA Championships 25 times in the his- tration Commission, and for other purposes. nament team, became the all-time Western tory of the program; SA 3118. Mr. DODD (for himself and Mr. MCCONNELL) proposed an amendment to the Collegiate Hockey Association leader in vic- Whereas Coach J. Robinson, as head coach bill H.R. 3295, supra. tories, and established Minnesota records for of the University of Minnesota wrestling SA 3119. Mr. BINGAMAN (for Mr. ROCKE- team, now has finished in the top 10 at the most wins, shutouts, and saves; FELLER) proposed an amendment to amend- NCAA Championships 10 times during his 16- Whereas Minnesota Head Coach Don Lucia, ment SA 2917 proposed by Mr. DASCHLE (for year tenure; after winning the National Championship in himself and Mr. BINGAMAN) to the bill (S. 517) Whereas two members of the Minnesota just his third season at Minnesota, was to authorize funding the Department of En- wrestling team, Jared Lawrence and Luke named a finalist for the 2002 Spencer Penrose ergy to enhance its mission areas through Becker, each earned an individual national Award, which is presented to the NCAA Divi- technology transfer and partnerships for fis- crown, marking the first time in school his- sion I National Hockey Coach of the Year; cal years 2002 through 2006, and for other tory that two Minnesota athletes were indi- and purposes. vidual champions in a single NCAA sport in SA 3120. Mr. BINGAMAN (for Mr. LEVIN Whereas all of the team’s players showed the same year; (for himself, Mr. DEWINE, and Ms. STABE- tremendous dedication throughout the sea- Whereas Lawrence, at 149 pounds, and NOW)) proposed an amendment to amendment son toward the goal of winning the National Becker, at 157 pounds, captured the 13th and SA 2917 proposed by Mr. DASCHLE (for him- Championship: Now, therefore, be it 14th NCAA individual titles in school his- self and Mr. BINGAMAN) to the bill (S. 517) tory, respectively; Resolved, That the Senate— supra. (1) commends the University of Minnesota Whereas Ryan Lewis, at 133 pounds, was SA 3121. Mr. BINGAMAN (for Mr. SCHUMER) Men’s Hockey Team for winning the 2002 the runner-up, Owen Elzen, at 197 pounds, proposed an amendment to amendment SA NCAA Division I Collegiate Hockey National finished in fourth place, Damion Hahn, at 184 2917 proposed by Mr. DASCHLE (for himself Championship; pounds, finished in fifth place, Garret and Mr. BINGAMAN) to the bill (S. 517) supra. (2) recognizes the achievements of all the Lowney, at heavyweight, finished in fifth SA 3122. Mr. BINGAMAN (for Mr. SMITH, of team’s players, coaches, and support staff, place, and Chad Erikson, at 141 pounds, fin- Oregon) proposed an amendment to amend- and invites them to the United States Cap- ished in seventh place; ment SA 2917 proposed by Mr. DASCHLE (for Whereas seven University of Minnesota itol to be honored; himself and Mr. BINGAMAN) to the bill (S. 517) wrestlers, Chad Erikson, Jared Lawrence, (3) requests that the President— supra. Luke Becker, Damion Hahn, Owen Elzen, (A) recognize the achievements of the Uni- SA 3123. Mr. BINGAMAN (for Mr. DURBIN Ryan Lewis, and Garrett Lowney, earned versity of Minnesota Men’s Hockey Team; (for himself and Ms. COLLINS)) proposed an All-American honors; and amendment to amendment SA 2917 proposed and Whereas the Golden Gophers have now had by Mr. DASCHLE (for himself and Mr. BINGA- (B) invite the team to the White House for 68 wrestlers earn 111 All-American citations MAN) to the bill (S. 517) supra. an appropriate ceremony honoring a na- in the history of the varsity wrestling pro- f tional championship team; and gram at the University of Minnesota: Now, (4) directs the Secretary of the Senate to— therefore, be it TEXT OF AMENDMENTS (A) make available enrolled copies of this Resolved, That the Senate— Resolution to the University of Minnesota SA 3114. Mrs. FEINSTEIN proposed (1) commends the Golden Gophers of the an amendment to amendment SA 2917 for appropriate display; and University of Minnesota for winning the 2002 (B) transmit an enrolled copy of the Reso- National Collegiate Athletic Association Di- proposed by Mr. DASCHLE (for himself lution to every coach and member of the 2002 vision I Wrestling National Championship; and Mr. BINGAMAN) to the bill (S. 517) NCAA Division I Men’s Hockey National (2) recognizes the achievements of all the to authorize funding the Department of Championship Team. team’s members, coaches, and support staff, Energy to enhance its mission areas

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00089 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2596 CONGRESSIONAL RECORD — SENATE April 11, 2002 through technology transfer and part- tion, for a construction, operation, or main- system under Federal law (such as the Fed- nerships for fiscal years 2002 through tenance activity. eral Energy Regulatory Commission with re- 2006, and for other purposes; as follows: (3) ELECTRICITY TRANSMISSION FACILITY.— spect to interstate natural gas pipelines), (A) IN GENERAL.—The term ‘‘electricity that Federal agency shall be the lead agency Beginning on page 195, strike line 19 and transmission facility’’ means a facility used in conducting any environmental review, all that follows through page 196, line 4, and in the transmission of electricity in inter- preparing any environmental review docu- insert the following: state or foreign commerce. ment, and carrying out any other activity ‘‘(B) PETITIONS FOR WAIVERS.— (B) INCLUSIONS.—The term ‘‘electricity that— ‘‘(i) IN GENERAL.—The Administrator, in transmission facility’’ includes a trans- (i) is required under the National Environ- consultation with the Secretary of Agri- mission line, substation, or other facility mental Policy Act of 1969 (42 U.S.C. 4321 et culture and the Secretary of Energy, shall necessary to the delivery of electricity. seq.); and approve or disapprove a State petition for a (C) EXCLUSION.—The term ‘‘electricity (ii) relates to construction, operation, or waiver of the requirement of paragraph (2) transmission facility’’ does not include a maintenance of an energy delivery system. within 30 days after the date on which the generation facility. (B) MULTIPLE RESPONSIBLE FEDERAL AGEN- petition is received by the Administrator. (4) ENERGY DELIVERY SYSTEM.—The term CIES.—In any case in which no single Federal ‘‘(ii) FAILURE TO ACT.—If the Administrator ‘‘energy delivery system’’ means an oil and agency has primary authority to issue an fails to approve or disapprove a petition gas pipeline or pipeline system, or an elec- overall authorization for an energy delivery within the period specified in clause (i), the tricity transmission facility, for which an system under Federal law, but more than 1 petition shall be deemed to be approved. authorization issued by 1 or more Federal Federal or State agency has authority to agencies is required under Federal law. issue an authorization for the energy deliv- SA 3115. Mrs. FEINSTEIN (for him- (5) INTEGRATED REVIEW PROCESS.—The term ery system under Federal law— self and Mrs. BOXER) proposed an ‘‘integrated review process’’ means the co- (i) the applicant may request that the Fed- amendment to amendment SA 2917 pro- ordinated environmental review and author- eral agencies with that authority designate a posed by Mr. DASCHLE (for himself and ization process described in subsection lead agency to conduct any environmental Mr. BINGAMAN) to the bill (S. 517) to au- (c)(2)(B) for construction, operation, or review, prepare any environmental review thorize funding the Department of En- maintenance of an energy delivery system. document, and carry out any other activity (6) LEAD AGENCY.—The term ‘‘lead agency’’ that— ergy to enhance its mission areas means the Federal agency designated under (I) is required under the National Environ- through technology transfer and part- subsection (c)(1) to conduct any environ- mental Policy Act of 1969 (42 U.S.C. 4321 et nerships for fiscal years 2002 through mental review, prepare any environmental seq.); and 2006, and for other purposes; as follows: review document, and carry out any other (II) relates to construction, operation, or On page 189, line 3, strike ‘‘2004’’ and insert activity that— maintenance of an energy delivery system; ‘‘2005’’. (A) is required under the National Environ- and On page 189, line 5, strike ‘‘2004’’ and insert mental Policy Act of 1969 (42 U.S.C. 4321 et (ii)(I) the Federal agencies shall jointly ‘‘2005’’. seq.); and designate 1 of the Federal agencies as the On page 189, line 8, strike ‘‘2004’’ and insert (B) relates to construction, operation, or lead agency, taking into account— ‘‘2005’’. maintenance of an energy delivery system. (aa) the extent of the involvement of each On page 189, in the table between lines 10 (7) OIL AND GAS PIPELINE OR PIPELINE SYS- Federal agency in issuing the authorization and 11, strike the item relating to calendar TEM.— for the energy delivery system; and year 2004. (A) IN GENERAL.—The term ‘‘oil and gas (bb) the expertise of each Federal agency On page 193, line 10, strike ‘‘2004’’ and in- pipeline or pipeline system’’ means each part concerning the energy delivery system; or sert ‘‘2005’’. of a physical facility through which crude (II) if the Federal agencies do not make a On page 194, line 21, strike ‘‘2004’’ and in- oil, petroleum product, or natural gas moves joint designation under subclause (I) by the sert ‘‘2005’’. in transportation in interstate or foreign date that is 30 days after the date of the re- On page 196, line 17, strike ‘‘2004’’ and in- commerce. quest by the applicant under clause (i), the sert ‘‘2005’’. (B) INCLUSIONS.—The term ‘‘oil and gas Council on Environmental Quality estab- On page 197, line 4, strike ‘‘2004’’ and insert pipeline or pipeline system’’ includes— lished by title II of the National Environ- ‘‘2005’’. (i) a pipe, valve, or other appurtenance at- mental Policy Act of 1969 (42 U.S.C. 4341 et On page 199, line 4, strike ‘‘2004’’ and insert tached to a pipe; seq.) shall designate, not later than 45 days ‘‘2005’’. (ii) a compressor unit; after the date of the request by the applicant On page 199, line 17, strike ‘‘2004’’ and in- (iii) a metering station; under clause (i), 1 of the Federal agencies as the lead agency. sert ‘‘2005’’. (iv) a regulator station; (v) a delivery station; (2) FEDERAL AGENCY RESPONSIBILITIES.— (A) SINGLE ENVIRONMENTAL REVIEW.— SA 3116. Mr. VOINOVICH (for himself (vi) a holder; and (vii) a fabricated assembly. (i) DUTIES OF LEAD AGENCY.—The lead agen- and Ms. LANDRIEU) submitted an cy shall— amendment intended to be proposed to (C) EXCLUSIONS.—The term ‘‘oil and gas pipeline or pipeline system’’ does not include (I) conduct any environmental review and amendment SA 2917 proposed by Mr. a production or refining facility. prepare any environmental review document DASCHLE (for himself and Mr. BINGA- (8) PARTICIPATING AGENCY.—The term ‘‘par- that— MAN) to the bill (S. 517) to authorize ticipating agency’’ means a Federal or State (aa) is required under the National Envi- funding the Department of Energy to agency that has authority to issue an au- ronmental Policy Act of 1969 (42 U.S.C. 4321 enhance its mission areas through thorization, or impose a condition on an au- et seq.) or other Federal law; and (bb) relates to construction, operation, or technology transfer and partnerships thorization, for an energy delivery system under Federal law, or to participate in an en- maintenance of an energy delivery system; for fiscal years 2002 through 2006, and (II) in any case in which an activity de- for other purposes; which was ordered vironmental review relating to construction, operation, or maintenance of the energy de- scribed in subclause (I) is carried out by the to lie on the table; as follows: livery system, but that is not the lead agen- applicant or a third-party contractor, evalu- At the end, add the following: cy with respect to construction, operation, ate, and approve or complete, the activity; and DIVISION H—MISCELLANEOUS or maintenance of the energy delivery sys- (III) communicate with other agencies, es- TITLE ll—INTEGRATED REVIEW OF tem. (b) PURPOSE.—The purpose of this section tablish deadlines, and carry out any other ENERGY DELIVERY SYSTEMS is to promote the timely completion of au- activity required under the National Envi- SEC. ll01. SHORT TITLE. thorizations and environmental reviews ronmental Policy Act of 1969 (42 U.S.C. 4321 This title may be cited as the ‘‘Integrated under Federal law relating to construction, et seq.). Review of Energy Delivery Systems Act of operation, or maintenance of energy delivery (ii) DUTIES OF PARTICIPATING AGENCIES.— 2002’’. systems consistent with the public safety, Each participating agency with respect to SEC. ll02. AUTHORIZATION AND ENVIRON- energy efficiency, and socioeconomic values the energy delivery system shall— MENTAL REVIEW OF ENERGY DELIV- of— (I)(aa) provide to the lead agency input ERY SYSTEMS UNDER FEDERAL LAW. (1) the National Environmental Policy Act that relates to the environmental review and (a) DEFINITIONS.—In this section: of 1969 (42 U.S.C. 4321 et seq.); and other activities described in clause (i) and fo- (1) APPLICANT.—The term ‘‘applicant’’ (2) other Federal laws that further the pur- cuses on direct project impacts; and means a person that applies for, or submits poses of that Act. (bb) submit data based on sound science notice of intent to apply for, an authoriza- (c) INTEGRATED REVIEW PROCESS.— necessary to substantiate that input; and tion required under Federal law for an en- (1) DESIGNATION OF LEAD AGENCY.— (II) in issuing the authorization for which ergy delivery system. (A) PRIMARILY RESPONSIBLE FEDERAL AGEN- the participating agency has authority, rely (2) AUTHORIZATION.—The term ‘‘authoriza- CY.—In any case in which a single Federal on the activities described in clause (i) car- tion’’ means a license, permit, exemption, or agency has primary authority to issue an ried out, approved, or completed by the lead other form of authorization or reauthoriza- overall authorization for an energy delivery agency for the energy delivery system.

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(B) INTEGRATION OF FEDERAL ENVIRON- (bb) notify each participating agency of (1) IN GENERAL.—At the request of a Gov- MENTAL REVIEW AND AUTHORIZATION PROC- the development of the application and of ernor of a State, and with the concurrence of ESS.— the role of the lead agency; an applicant, the lead agency may delegate (i) IN GENERAL.—In consultation with each (cc) request input by each participating to an appropriate State agency the authority participating agency, the lead agency shall— agency concerning the application; and to prepare an environmental impact state- (I) develop and implement a single coordi- (dd) enter into a memorandum of under- ment or an environmental assessment relat- nated and timely process that provides such standing with all participating agencies con- ing to construction, operation, or mainte- environmental review as is required under cerning the issues to be considered by the nance of an energy delivery system if— Federal law for construction, operation, or lead agency and the participating agencies (A) such an environmental impact state- maintenance of an energy delivery system; in conducting the integrated review process ment or environmental assessment is re- and with respect to the application. quired under the National Environmental (II) ensure, to the maximum extent prac- (II) DEADLINE.—The lead agency shall Policy Act of 1969 (42 U.S.C. 4321 et seq.); ticable, the integration with that environ- carry out subclause (I) not later than— (B)(i) the energy delivery system is located mental review process of all relevant Fed- (aa) if the lead agency is designated under entirely within the State; and eral, State, and local environmental protec- paragraph (1)(A), 45 days after the earlier of (ii) the State agency has sufficient exper- tion requirements applicable to the energy the date on which the applicant requests tise concerning energy delivery systems to delivery system. that the lead agency carry out the activities prepare the environmental impact statement described in subclause (I) or the date on or environmental assessment; (ii) ACTIVITIES TO BE INTEGRATED.—The in- tegrated review process shall integrate— which the applicant submits the application (C) the responsible Federal official of the (I) the preparation of an environmental im- to the lead agency; or lead agency provides guidance and partici- pact statement, or, at the discretion of the (bb) if the lead agency is designated under pates in the preparation of the environ- paragraph (1)(B), 45 days after the date of the mental impact statement or environmental lead agency, the preparation of an environ- designation. assessment by the State agency; mental assessment, if such a statement or (ii) DUTIES OF PARTICIPATING AGENCIES.— (D) the responsible Federal official inde- assessment is required under the National Unless otherwise required by law, each par- pendently evaluates any environmental im- Environmental Policy Act of 1969 (42 U.S.C. ticipating agency shall— pact statement or environmental assessment 4321 et seq.); and (I) communicate with the lead agency at prepared by the State agency before the (II) the conduct of any other review, anal- the earliest practicable time concerning any statement or assessment is approved; and ysis, opinion, or determination, and the potential issues relating to, or impediment (E) the responsible Federal official— issuance of any authorization, required to, the issuance of the authorization to the (i) provides early notification to and solic- under Federal law. applicant; its the views of any other affected State or (iii) CONSIDERATION OF ALTERNATIVES.— (II) commit to early and continuous in- any affected Federal land management enti- (I) PROPOSAL.—The lead agency shall en- volvement and concurrence at key decision ty of any action or alternative to the action sure that the applicant has the opportunity points as determined by the lead agency; and that may have a significant impact on the to propose an alternative to a condition that (III) refrain from raising any additional State or the Federal land management enti- a Federal agency seeks to impose on an au- issues with respect to an application after ty; and thorization. the date of execution of the memorandum of (ii) if the State agency disagrees with the (II) CONSIDERATION.—The lead agency shall understanding concerning the application assessment of the responsible Federal offi- give special consideration to an alternative under clause (i)(I)(dd). cial with respect to an impact described in that would— (3) PUBLIC PARTICIPATION.— clause (i), prepares a written assessment of (aa) cost less to implement; or (A) IN GENERAL.—The lead agency, in con- the impact for incorporation into the envi- (bb) result in improved energy values from junction with each State affected by an ap- ronmental impact statement or environ- the energy delivery system. plication for an authorization for an energy mental assessment prepared by the State (C) DEADLINES.— delivery system— agency. (i) ESTABLISHMENT BY LEAD AGENCY.—The (i) shall provide for early environmental (2) EFFECT ON OTHER RESPONSIBILITIES AND lead agency shall establish deadlines for— screening to identify and address any envi- STATEMENTS.—Nothing in paragraph (1)— (I) completion of environmental reviews, ronmental concerns associated with the au- (A) relieves the responsible Federal official environmental review documents, and other thorization for the energy delivery system; referred to in that paragraph of— activities required under the National Envi- and (i) any responsibility of the official for the ronmental Policy Act of 1969 (42 U.S.C. 4321 (ii) to the extent practicable, shall ensure scope, objectivity, or content of the environ- et seq.) for construction, operation, or main- public participation early in the integrated mental impact statement referred to in that tenance of an energy delivery system; and review process. paragraph; or (II) issuance of all authorizations required (B) PRESENTATION OF INFORMATION.—Under (ii) any other responsibility of the official under Federal law for the energy delivery subparagraph (A)(ii), the lead agency shall under the National Environmental Policy system. ensure that the presentation of environ- Act of 1969 (42 U.S.C. 4321 et seq.); or (ii) COMPLIANCE BY PARTICIPATING AGEN- mental information to the public is inform- (B) affects the legal sufficiency of any en- CIES.— ative and understandable. vironmental impact statement prepared by a (I) IN GENERAL.—Each participating agency (4) DISPUTE RESOLUTION.—If the lead agen- State agency with less than statewide juris- with respect to the energy delivery system cy finds that an environmental concern re- diction. shall comply with each deadline established lating to an authorization for an energy de- (g) FINANCIAL ASSISTANCE.—To ensure that under clause (i). livery system over which a participating the policies of the National Environmental (II) EFFECT OF FAILURE TO COMPLY.—If a agency has jurisdiction under Federal law Policy Act of 1969 (42 U.S.C. 4321 et seq.) and participating agency fails to comply with a has not been resolved, the lead agency, in other laws that further the purposes of that deadline established under clause (i), the consultation with the Council on Environ- Act are most effectively implemented, the input of the participating agency with re- mental Quality and the head of the partici- lead agency may make funds available to the spect to the energy delivery system under pating agency, shall resolve the matter not Governor of a State that assumes responsi- subparagraph (A)(ii)— later than 30 days after the date of the find- bility for environmental review that would (aa) shall be advisory; and ing. otherwise be conducted by the lead agency. (bb) shall be taken into account at the dis- (d) DELEGATION FROM PARTICIPATING AGEN- (h) PREEMPTION.—Nothing in this section cretion of the lead agency and only to the CY TO LEAD AGENCY.—Notwithstanding any preempts any Federal or State law relating extent that taking the input into account other provision of law, with the agreement of to siting, construction, or operation of en- does not delay issuance of an authorization the lead agency, the head of any partici- ergy delivery systems. for the energy delivery system. pating agency may delegate to the lead agen- (iii) MINIMIZATION OF DUPLICATION AND cy the authority to issue any authorization SA 3117. Mr. DODD (for himself and DELAYS.—The integrated review process shall for an energy delivery system or a class of Mr. MCCONNELL) proposed an amend- seek to minimize— energy delivery systems. ment to the bill S. 565, to require (I) duplication of activities carried out by (e) PARTICIPATION OF STATE AGENCIES.—A States and localities to meet uniform the lead agency and the participating agen- State agency that has jurisdiction under and nondiscriminatory election tech- cies; and State law (which jurisdiction has not been nology and administration require- (II) delays in decisionmaking by those preempted by Federal law) over siting, con- ments applicable to Federal elections, agencies. struction, or operation of energy delivery to establish grant programs to provide (D) COMMUNICATION BETWEEN AGENCIES.— systems may elect to participate in an inte- assistance to States and localities to (i) DUTIES OF LEAD AGENCY.— grated review process under the terms and (I) IN GENERAL.—With respect to an appli- conditions established by the lead agency for meet those requirements and to im- cation for an authorization for an energy de- all Federal agencies that participate in the prove election technology and the ad- livery system, the lead agency shall— integrated review process. ministration of Federal elections, to (aa) identify each participating agency; (f) FEDERAL DELEGATION TO STATES.— establish the Election Administration

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00091 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2598 CONGRESSIONAL RECORD — SENATE April 11, 2002 Commission, and for other purposes; as SEC. 17lll. STUDY OF NATURAL GAS AND served by measurement of energy consumed, follows: OTHER ENERGY TRANSMISSION IN- and efficiency improvements, at the actual FRASTRUCTURE ACROSS THE GREAT site of energy consumption, or through the Amend the title to read as follows: ‘‘A bill LAKES. full fuel cycle, beginning at the source of en- to require States and localities to meet uni- (a) DEFINITIONS.—In this section: ergy production. The Secretary shall submit form and nondiscriminatory election tech- (1) GREAT LAKE.—The term ‘‘Great Lake’’ the report to the Congress.’’ nology and administration requirements ap- means Lake Erie, Lake Huron (including plicable to Federal elections, to establish Lake Saint Clair), Lake Michigan, Lake On- SA 3123. Mr. BINGAMAN (for Mr. grant programs to provide assistance to tario (including the Saint Lawrence River DURBIN for himself and Ms. COLLINS, States and localities to meet those require- from Lake Ontario to the 45th parallel of proposed an amendment to amendment latitude), and Lake Superior. ments to improve election technology and SA 2917 proposed by Mr. DASCHLE (for the administration of Federal elections, to (2) SECRETARY.—The term ‘‘Secretary’’ himself and Mr. BINGAMAN) to the bill establish the Election Administration Com- means the Secretary of Energy. mission, and for other purposes.’’. (b) STUDY.— (S. 517) to authorize funding the De- (1) IN GENERAL.—The Secretary, in con- partment of Energy to enhance its mis- sion areas through technology transfer SA 3118. Mr. DODD (for himself and sultation with representatives of appropriate Federal and State agencies, shall— and partnerships for fiscal years 2002 Mr. MCCONNELL) proposed an amend- (A) conduct a study of— through 2006, and for other purposes; as ment to the bill H.R. 3295, to require (i) the location and extent of anticipated follows: States and localities to meet uniform growth of natural gas and other energy On page 213, between lines 10 and 11, insert and nondiscriminatory election tech- transmission infrastructure proposed to be the following: nology and administration require- constructed across the Great Lakes; and SEC. 8 . CONSERVE BY BICYCLING PROGRAM. ments applicable to Federal elections, (ii) the environmental impacts of any nat- (a) ESTABLISHMENT.—The Secretary of to establish grant programs to provide ural gas or other energy transmission infra- Transportation shall establish a Conserve By assistance to States and localities to structure proposed to be constructed across Bicycling pilot program that shall provide meet those requirements and to im- the Great Lakes; and for up to 10 geographically dispersed projects (B) make recommendations for minimizing prove election technology and the ad- to encourage the use of bicycles in place of the environmental impact of pipelines and motor vehicles. Such projects shall use edu- ministration of Federal elections, to other energy transmission infrastructure on cation and marketing to convert motor vehi- establish the Election Administration the Great Lakes ecosystem. cle trips to bike trips, document project re- Commission, and for other purposes; as (2) ADVISORY COMMITTEE.—Not later than 30 sults and energy savings, and facilitate part- follows: days after the date of enactment of this Act, nerships among entities in the fields of the Secretary shall enter into an agreement Amend the title to read as follows: ‘‘A bill transportation, law enforcement, education, with the National Academy of Sciences to to require States and localities to meet uni- public health, environment, or energy. At establish an advisory committee to ensure least 20 percent of the cost of each project form and nondiscriminatory election tech- that the study is complete, objective, and of shall be provided from State or local sources. nology and administration requirements ap- good quality. Not later than 2 years after implementation plicable to Federal elections, to establish (c) REPORT.—Not later than 1 year after of the projects, the Secretary of Transpor- grant programs to provide assistance to the date of enactment of this Act, the Sec- tation shall submit a report to Congress on States and localities to meet those require- retary shall submit to Congress a report that the results of the pilot program. ments and to improve election technology describes the findings and recommendations (b) NATIONAL ACADEMY STUDY.—The Sec- and the administration of Federal elections, resulting from the study under subsection retary of Transportation shall contract with to establish the Election Administration (b). the National Academy of Sciences to con- Commission, and for other purposes.’’. duct a study on the feasibility and benefits SA 3121. Mr. BINGAMAN (for Mr. of converting motor vehicle trips to bicycle SA 3119. Mr. BINGAMAN (for Mr. SCHUMER) proposed an amendment to trips and to issue a report, not later than ROCKEFELLER) proposed an amendment amendment SA 2917 proposed by Mr. two years after enactment of this Act, on the to amendment SA 2917 proposed by Mr. findings of such study. DASCHLE (for himself and Mr. BINGA- (c) AUTHORIZATION OF APPROPRIATIONS.— DASCHLE (for himself and Mr. BINGA- MAN) to the bill (S. 517) to authorize There is authorized to be appropriated to the MAN) to the bill (S. 517) to authorize funding the Department of Energy to Secretary of Transportation $5,500,000, to re- funding the Department of Energy to enhance its mission areas through main available until expended, to carry out enhance its mission areas through technology transfer and partnerships the pilot program and study pursuant to this technology transfer and partnerships for fiscal years 2002 through 2006, and sections. for fiscal years 2002 through 2006, and for other purposes; as follows: f for other purposes; as follows: On page 408, line 8, strike ‘‘technologies.’’ AUTHORITY FOR COMMITTEES TO On page 564, after line 2, insert the fol- and insert ‘‘technologies; and MEET lowing: (3) the use of high temperature super- COMMITTEE ON BANKING, HOUSING, AND URBAN ‘‘SEC. 1506. FEDERAL MINE INSPECTORS. conducting technology in projects to dem- onstrate the development of superconductors AFFAIRS ‘‘In light of projected retirements of Fed- that enhance the reliability, operational Mr. NELSON of Nebraska. Mr. Presi- eral mine inspectors and the need for addi- flexibility, or power-carrying capability of dent, I ask unanimous consent that the tional personnel, the Secretary of Labor electric transmission systems or increase the Committee on Banking, Housing, and shall hire, train, and deploy such additional electrical or operational efficiency of elec- skilled mine inspectors (particularly inspec- Urban Affairs be authorized to meet tric energy generation, transmission, dis- tors with practical experience as a practical during the session of the Senate on tribution and storage systems.’’ mining engineer) as necessary to ensure the Thursday, April 11, 2002, at 2:30 p.m. to conduct an oversight hearing on ‘‘Pro- availability of skilled and experienced indi- SA 3122. Mr. BINGAMAN (for Mr. viduals and to maintain the number of Fed- posals To Improve the Housing Vouch- SMITH of Oregon) proposed an amend- eral mine inspectors at or above the levels er Program.’’ authorized by law or established by regula- ment to amendment SA 2917 proposed The PRESIDING OFFICER. Without tion.’’. by Mr. DASCHLE (for himself and Mr. objection, it is so ordered. BINGAMAN) to the bill (S. 517) to au- COMMITTEE ON FINANCE SA 3120. Mr. BINGAMAN (for Mr. thorize funding the Department of En- Mr. NELSON of Nebraska. Mr. Presi- LEVIN (for himself, Mr. DEWINE, and ergy to enhance its mission areas dent, I ask unanimous consent that the Ms. STABENOW)) proposed an amend- through technology transfer and part- Committee on Finance be authorized to ment to amendment SA 2917 proposed nerships for fiscal years 2002 through meet during the session of the Senate by Mr. DASCHLE (for himself and Mr. 2006, and for other purposes; as follows: on Thursday, April 11, 2002 at 10:00 a.m. BINGAMAN) to the bill (S. 517) to au- On page 301, after line 22, insert the fol- to hear testimony on Schemes, Scams thorize funding the Department of En- lowing: and Cons, Part II: The IRS Strikes ergy to enhance its mission areas ‘‘SEC. 930. STUDY OF ENERGY EFFICIENCY Back. through technology transfer and part- STANDARDS. The PRESIDING OFFICER. Without nerships for fiscal years 2002 through ‘‘The Secretary of Energy shall contract with the National Academy of Sciences for a objection, it is so ordered. 2006, and for other purposes; as follows: study, to be completed within one year of en- COMMITTEE ON GOVERNMENTAL AFFAIRS At the end of title XVII, insert the fol- actment of this Act, to examine whether the Mr. NELSON of Nebraska. Mr. Presi- lowing: goals of energy efficiency standards are best dent, I ask unanimous consent that the

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00092 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2599 Committee on Government Affairs be To be United States Marshal: Subcommittee on Consumer Affairs, authorized to meet on Thursday, April Warren Douglas Anderson for the Foreign Commerce, and Tourism, of 11, 2002 at 9:00 a.m. to discuss legisla- District of South Dakota; the Committee on Commerce, Science, tion to establish a Department of Na- Patrick E. McDonald for the District and Transportation be authorized to tional Homeland Security and a White of Idaho; and meet on Thursday, April 11, 2002, at 9:30 House Office to combat terrorism. James Joseph Parmley for the North- a.m. on examining Enron: Electricity The PRESIDING OFFICER. Without ern District of New York. Market Manipulation and the Effect on objection, it is so ordered. II. Bills the Western States. COMMITTEE ON GOVERNMENTAL AFFAIRS The PRESIDING OFFICER. Without Mr. NELSON of Nebraska. Mr. Presi- S. 924, Providing Reliable Officers, objection, it is so ordered. Technology, Education, Community dent, I ask unanimous consent that the SUBCOMMITTEE ON PERSONNEL Prosecutors, and Training In Our Committee on Governmental Affairs be Mr. NELSON of Nebraska. Mr. Presi- Neighborhoods (PROTECTION) Act of authorized to meet on Thursday, April dent, I ask unanimous consent that the 2001. [Biden/Specter]; 11, 2002 at 3:00 p.m. to consider the Subcommittee on Personnel of the nomination of Paul A. Quander, Jr. to S. 864, Anti-Atrocity Alien Deporta- tion Act of 2001 [Leahy/Lieberman/ Committee on Armed Services be au- be Director of the District of Columbia thorized to meet during the session of Offender Supervision, Defender, and Levin]; S. 2031, Intellectual Property Protec- the Senate on Thursday, April 11, 2002, Courts Services Agency. tion Restoration Act of 2002 [Leahy/ at 9:30 a.m. in open session to receive The PRESIDING OFFICER. Without testimony on military personnel bene- objection, it is so ordered. Brownback]; and S. 2010, Corporate and Criminal fits in review of the Defense Authoriza- COMMITTEE ON HEALTH, EDUCATION, LABOR, Fraud Accountability Act of 2002 tion Request for Fiscal Year 2003. AND PENSIONS [Leahy/Daschle/Durbin]. The PRESIDING OFFICER. Without Mr. NELSON of Nebraska. Mr. Presi- THE PRESIDING OFFICER. Without objection, it is so ordered. dent I ask unanimous consent that the objection, it is so ordered. SUBCOMMITTEE ON STRATEGIC Committee on Health, Education, COMMITTEE ON THE JUDICIARY Mr. NELSON of Nebraska. Mr. Presi- Labor, and Pensions be authorized to dent, I ask unanimous consent that the meet for a hearing on Capacity to Care: Mr. NELSON of Nebraska. Mr. Presi- dent, I ask unanimous consent that the Subcommittee on Strategic of the In a World Living with Aids during the Committee on Armed Services be au- session of the Senate on Thursday, Committee on the Judiciary be author- ized to meet to conduct a nominations thorized to meet during the session of April 11, 2002 at 10:30 a.m. the Senate on Thursday, April 11, 2002, The PRESIDING OFFICER. Without hearing on Thursday, April 11, 2002 at at 2:30 p.m., in open and closed session objection, it is so ordered. 2:30 p.m. in Dirksen Room 226. Panel I: The Honorable ARLEN SPEC- to receive testimony on the intel- COMMITTEE ON THE JUDICIARY TER, United States Senator [R–PA]; the ligence, surveillance, and reconnais- Mr. NELSON of Nebraska. Mr. Presi- Honorable BOB SMITH, United States sance programs of the Department of dent, I ask unanimous consent that the Senator [R–NH]; the Honorable PAUL the Defense in review of the Defense Committee on the Judiciary be author- WELLSTONE, United States Senator [D– Authorization Request for Fiscal Year ized to meet to conduct a markup on MN]; the Honorable DIANNE FEINSTEIN, 2003. Thursday, April 11, 2002, at 10 a.m., in United States Senator [D–CA]; the The PRESIDING OFFICER. Without SD226. Honorable BARBARA BOXER, United objection, it is so ordered. Tentative Agenda States Senator [D–CA]; the Honorable f I. Nominations JUDD GREGG, United States Senator [R– NH]; the Honorable RUSSELL F. FEIN- VITIATION OF ACTION—S. 565 Terrence L. O’Brien to the United GOLD, United States Senator [D–WI]; Mr. REID. Madam President, I ask States Court of Appeals for the Tenth the Honorable MARK DAYTON, United consent that the passage of S. 565 be vi- Circuit; States Senator [D–MN]; the Honorable tiated and the measure be returned to Lance Africk to the United States JIM RAMSTAD, United States Rep- the calendar. District Court for the Eastern District resentative [R–MN, 3rd Congressional The PRESIDING OFFICER. Without of Louisiana; District]; the Honorable THOMAS M. objection, it is so ordered. Legrome Davis to the United States BARRETT, United States Representative District Court for the Eastern District [D–WI, 5th Congressional District]; and EXECUTIVE SESSION of Pennsylvania; the Honorable MARK GREEN, United Mary Ann Solberg to be Deputy Di- States Representative [R–WI, 8th Con- rector of the Office of National Drug EXECUTIVE CALENDAR gressional District]. Control Policy; Mr. REID. I ask consent that the Scott Burns to be Deputy Director PANEL II: Jeffrey Howard for the Senate proceed to Executive session to for State and Local Affairs, Office of United States Court of Appeals for the consider Calendar No. 758; that the National Drug Control Policy; First Circuit; Percy Anderson for the nomination be confirmed, the motion Barry Crane to be Deputy Director United States District Court for the to reconsider be laid upon the table, for Supply Reduction, Office of Na- Central District of California; Michael the President be immediately notified tional Drug Control Policy; M. Baylson for the United States Dis- John Robert Flores to be the Admin- trict Court for the Eastern District of of the Senate’s action, any statements istrator of the Office of Juvenile Jus- Pennsylvania; William C. Griesbach for be printed in the RECORD, and the Sen- tice and Delinquency Prevention, De- the United States District Court for ate return to legislative session with- partment of Justice; and the Eastern District of Wisconsin; Joan out intervening action or debate. John Brown III to be Deputy Admin- E. Lancaster for the United States Dis- The PRESIDING OFFICER. Without istrator of the Drug Enforcement trict Court for the District of Min- objection, it is so ordered. Agency. nesota; Cynthia M. Rufe for the United The nomination was considered and To be United States Attorney: States District Court for the Eastern confirmed as follows: Jane J. Boyle for the Northern Dis- District of Pennsylvania; and John F. NATIONAL AERONAUTICS AND SPACE trict of Texas; Walter for the United States District ADMINISTRATION James B. Comey for the Southern Court for the Central District of Cali- Robert Watson Cobb, of Maryland, to be In- District of New York; fornia. spector General, National Aeronautics and Thomas A. Marino for the Middle The PRESIDING OFFICER. Without Space Administration. District of Pennsylvania; objection, it is so ordered. f Matthew D. Orwig for the Eastern SUBCOMMITTEE ON CONSUMER AFFAIRS, District of Texas; and FOREIGN COMMERCE, AND TOURISM LEGISLATIVE SESSION Michael Taylor Shelby for the South- Mr. NELSON of Nebraska. Mr. Presi- The PRESIDING OFFICER. The Sen- ern District of Texas. dent, I ask unanimous consent that the ate will return to legislative session.

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00093 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2600 CONGRESSIONAL RECORD — SENATE April 11, 2002 COMMENDING UNIVERSITY OF (4) directs the Secretary of the Senate to— son toward the goal of winning the National MINNESOTA-DULUTH BULLDOGS (A) make available enrolled copies of this Championship: Now, therefore, be it Resolution to the University of Minnesota- Resolved, That the Senate— Mr. REID. Madam President, I ask Duluth for appropriate display; and (1) commends the University of Minnesota consent that the Senate proceed to the (B) transmit an enrolled copy of the Reso- Men’s Hockey Team for winning the 2002 consideration of S. Res. 236, submitted lution to every coach and member of the 2002 NCAA Division I Collegiate Hockey National earlier today by Senators DAYTON and NCAA Division I Women’s Ice Hockey Na- Championship; WELLSTONE. tional Championship Team. (2) recognizes the achievements of all the The PRESIDING OFFICER. The f team’s players, coaches, and support staff, and invites them to the United States Cap- clerk will report the resolution by COMMENDING UNIVERSITY OF title. itol to be honored; MINNESOTA GOLDEN GOPHERS (3) requests that the President— The assistant legislative clerk read DIVISION I MEN’S HOCKEY NA- (A) recognize the achievements of the Uni- as follows: TIONAL CHAMPIONSHIP versity of Minnesota Men’s Hockey Team; A resolution (S. Res. 236) commending the and University of Minnesota-Duluth Bulldogs for Mr. REID. I ask unanimous consent (B) invite the team to the White House for winning the 2002 NCAA Division I Women’s the Senate turn to the consideration of an appropriate ceremony honoring a na- Ice Hockey National Championship. S. Res. 237, submitted earlier today by tional championship team; and There being no objection, the Senate Senators DAYTON and WELLSTONE. (4) directs the Secretary of the Senate to— proceeded to consider the resolution. The PRESIDING OFFICER. The (A) make available enrolled copies of this Mr. REID. Madam President, I ask clerk will report the resolution by Resolution to the University of Minnesota title. for appropriate display; and consent the resolution and preamble be (B) transmit an enrolled copy of the Reso- agreed to en bloc, the motion to recon- The assistant legislative clerk read as follows: lution to every coach and member of the 2002 sider be laid upon the table, and any NCAA Division I Men’s Hockey National A resolution (S. Res. 237) commending the statements related to the resolution be Championship Team. University of Minnesota Golden Gophers for printed in the RECORD. winning the 2002 National Collegial Athletic f The PRESIDING OFFICER. Without Association Division I Men’s Hockey Na- objection, it is so ordered. COMMENDING UNIVERSITY OF tional Championship. MINNESOTA GOLDEN GOPHERS The resolution (S. Res. 236) was There being no objection, the Senate agreed to. DIVISION I WRESTLING NA- proceeded to consider the resolution. TIONAL CHAMPIONSHIP The preamble was agreed to. Mr. REID. I ask consent that the res- The resolution (S. Res. 236), with its olution and preamble be agreed to en Mr. REID. I ask consent that the preamble, reads as follows: bloc, the motion to reconsider be laid Senate proceed to the consideration of S. RES. 236 upon the table, and any statements re- S. Res. 238, submitted earlier today. Whereas on March 24, 2002, the defending lated thereto be printed in the RECORD. The PRESIDING OFFICER. The NCAA Women’s Ice Hockey National Cham- The PRESIDING OFFICER. Without clerk will report the resolution by pion, the University of Minnesota-Duluth objection, it is so ordered. title. Bulldogs, won the National Championship The resolution (S. Res. 237) was The assistant legislative clerk read for the second straight year; agreed to. as follows: Whereas Minnesota-Duluth defeated Brown The preamble was agreed to. A resolution (S. Res. 238) commending the University in the championship game by the The resolution, with its preamble, University of Minnesota Golden Gophers for score of 3-2, having previously defeated Niag- winning the 2002 NCAA Division I Wrestling ara University in the semi-final by the same reads as follows: National Championship. score; S. RES. 237 Whereas sophomore Tricia Guest scored Whereas on April 6, 2002, the University of There being no objection, the Senate the unassisted game-winning goal in the Minnesota Men’s Hockey Team won the Na- proceeded to consider the resolution. third period, and assisted in the Bulldogs’ tional Championship for the first time in 23 Mr. REID. I ask consent that the res- opening goal in the first period; years; olution and preamble be agreed to en Whereas during the 2001-2002 season, the Whereas Minnesota defeated the Univer- bloc, the motion to reconsider be laid Bulldogs won 24 games, while losing only 6, sity of Maine in overtime in the champion- upon the table, and any statements be and tying 4; ship game by the score of 4–3, having pre- Whereas forward Joanne Eustace and viously defeated the University of Michigan printed in the RECORD. defensewoman Larissa Luther were both se- in the semifinal by the score of 3–2; The PRESIDING OFFICER. Without lected to the 2002 All-Tournament team; Whereas Grant Potulny, from North Da- objection, it is so ordered. Whereas forward and team captain Maria kota, the team’s only non-Minnesotan, The resolution (S. Res. 238) was Rooth led the Bulldogs in scoring the last 2 scored the winning goal in overtime and was agreed to. years, and was named to the Jofa Women’s named the tournament’s Most Outstanding The preamble was agreed to. University Division Ice Hockey All-Amer- Player; The resolution, with its preamble, ican first team, the only first team repeat Whereas during the 2001–2002 season, the reads as follows: from 2001; Golden Gophers won 32 games, while losing Whereas Minnesota-Duluth Head Coach, only 8, and tying 4; S. RES. 238 Shannon Miller, after winning the National Whereas senior defenseman Jordan Whereas the University of Minnesota wres- Championship in 2 consecutive years, was Leopold was named the winner of the Hobey tling team successfully defended its 2001 na- named a finalist for the 2002 NCAA Division Baker Memorial Award, given annually to tional title by winning the 2002 National Col- I Coach of the Year; and the college hockey Player of the Year, and legiate Athletic Association championship Whereas all of the team’s players showed was also named an All-American for the sec- on March 23, 2002, in Albany, New York; tremendous dedication throughout the sea- ond consecutive year; Whereas the victory was the first back-to- son toward the goal of winning the National Whereas senior forward Johnny Pohl was back national championship in an intercolle- Championship: Now, therefore, be it also named to the All-American team, and giate athletic competition in University of Resolved, That the Senate— led the NCAA Division I in scoring; Minnesota history since the Golden Gophers (1) commends the University of Minnesota- Whereas senior goalie Adam Hauser was captured 2 consecutive national champion- Duluth Women’s Ice Hockey Team for win- named to the ‘‘Frozen Four’’ All-Tour- ship football titles in 1940 and 1941; ning the 2002 NCAA Division I Collegiate Ice nament team, became the all-time Western Whereas the University of Minnesota won Hockey National Championship; Collegiate Hockey Association leader in vic- the national crown with 126.5 points, over (2) recognizes the achievements of all the tories, and established Minnesota records for Iowa State (103 points), Oklahoma (101.5 team’s players, coaches, and support staff, most wins, shutouts, and saves; points), Iowa (89 points) and Oklahoma State and invites them to the United States Cap- Whereas Minnesota Head Coach Don Lucia, (82.5 points); itol to be honored; after winning the National Championship in Whereas the University of Minnesota be- (3) requests that the President— just his third season at Minnesota, was came the first Division I wrestling team (A) recognize the achievements of the Uni- named a finalist for the 2002 Spencer Penrose since the 1995–96 season to go undefeated in versity of Minnesota-Duluth Women’s Ice Award, which is presented to the NCAA Divi- dual meets and win the National Duals, con- Hockey Team; and sion I National Hockey Coach of the Year; ference and NCAA team titles in a single sea- (B) invite them to the White House for an and son and the first team to win these titles in appropriate ceremony honoring a national Whereas all of the team’s players showed consecutive seasons since the 1994–95 and championship team; and tremendous dedication throughout the sea- 1995–96 seasons;

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00094 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY April 11, 2002 CONGRESSIONAL RECORD — SENATE S2601 Whereas the Golden Gophers wrestling Madam President, I also ask unani- cent, or 20 of 22 circuit court nominees team has finished in the top 3 in the Nation mous consent that Senator LANDRIEU received a hearing during the first Con- in the last 6 years: placing third in 1997, be recognized for up to 30 minutes dur- gress. being the runner up in 1998 and 1999; placing ing that 1 hour of time. Now we are in the second session of third in 2000; and winning the national title in 2001 and 2002; The PRESIDING OFFICER. Without the first Congress under President Whereas the University of Minnesota wres- objection, it is so ordered. George W. Bush, and only 10 of 29 cir- tling team has now placed in the top 10 at f cuit court nominees have even received the NCAA Championships 25 times in the his- a hearing, for a percentage of 34.5 per- tory of the program; PROGRAM cent. Whereas Coach J. Robinson, as head coach Mr. REID. Madam President, at 11:30 What is going on here in the Senate of the University of Minnesota wrestling a.m. tomorrow, the Senate will begin with regard to even giving a hearing to team, now has finished in the top 10 at the circuit court judicial nominees is sim- NCAA Championships 10 times during his 16- consideration of the border security year tenure; bill. There will be no rollcall votes on ply without precedent. Whereas two members of the Minnesota Friday. No President has been treated so wrestling team, Jared Lawrence and Luke poorly in recent memory—not even a f Becker, each earned an individual national hearing. Ten of the 29 circuit court crown, marking the first time in school his- ORDER FOR ADJOURNMENT nominees of President George W. Bush tory that two Minnesota athletes were indi- have not even received a hearing. By Mr. REID. Madam President, if there vidual champions in a single NCAA sport in contrast, only about one-third of Presi- is no further business to come before the same year; dent Bush’s circuit court nominees the Senate, I ask unanimous consent Whereas Lawrence, at 149 pounds, and have received a hearing. Becker, at 157 pounds, captured the 13th and the Senate stand in adjournment under With respect to receiving a Judiciary 14th NCAA individual titles in school his- the previous order, following the re- Committee vote, looking at it a dif- tory, respectively; marks of Senator MCCONNELL and Sen- ferent way, from Jimmy Carter Whereas Ryan Lewis, at 133 pounds, was ator VOINOVICH, and the RECORD remain through Bill Clinton at least 86 percent the runner-up, Owen Elzen, at 197 pounds, open today until 6:40 p.m. for the intro- finished in fourth place, Damion Hahn, at 184 of circuit court nominees received a duction of legislation by Senator pounds, finished in fifth place, Garret Judiciary Committee vote. GRASSLEY. Lowney, at heavyweight, finished in fifth During President Carter’s first Con- The PRESIDING OFFICER. Without place, and Chad Erikson, at 141 pounds, fin- gress, 100 percent of his nominees for ished in seventh place; objection, it is so ordered. the circuit court received a vote in Whereas seven University of Minnesota Mr. MCCONNELL. Madam President, wrestlers, Chad Erikson, Jared Lawrence, committee. are we in morning business? During President Reagan’s first Con- Luke Becker, Damion Hahn, Owen Elzen, The PRESIDING OFFICER. We are. Ryan Lewis, and Garrett Lowney, earned gress, 95 percent of his circuit court All-American honors; and f nominees—19 out of 20—received a vote Whereas the Golden Gophers have now had PACE OF JUDICIAL CONFIRMA- of the committee. 68 wrestlers earn 111 All-American citations During the first President Bush’s TIONS: A HISTORICAL COMPARI- in the history of the varsity wrestling pro- first Congress, 22 of 23 received a com- SON gram at the University of Minnesota: Now, mittee vote. That is 95.7 percent. therefore, be it Mr. MCCONNELL. Madam President, During President Bill Clinton’s first Resolved, That the Senate— my friends on the other side of the (1) commends the Golden Gophers of the Congress, 86.4 percent of his circuit University of Minnesota for winning the 2002 aisle have defended the slow pace of court nominees—19 out of 22—received National Collegiate Athletic Association Di- the judicial confirmation process by a Judiciary Committee vote during his vision I Wrestling National Championship; saying their treatment of President first 2 years. Of course, those were (2) recognizes the achievements of all the Bush’s nominees compares favorably years during which his party also con- team’s members, coaches, and support staff, with precedents. I had the Congres- trolled the Senate. and invites them to the United States Cap- sional Research Service look into this, During the first 2 years of President itol to be honored; and their research showed this is clear- George W. Bush, only 27.6 percent—or 8 (3) requests that the President recognize ly not the case. This Congress’s treat- the achievements of the University of Min- out of 29—of the nominees for circuit nesota wrestling team and invite them to ment of President Bush’s judicial courts received a Judiciary Committee the White House for an appropriate cere- nominees compares quite poorly, at all vote—very shabby treatment and cer- mony honoring a national championship stages of the confirmation process, tainly unprecedented in recent times. team; and with the treatment that prior Con- With respect to Senate floor votes, at (4) directs the Secretary of the Senate to gresses afforded the judicial nominees least 86 percent of circuit court nomi- transmit a copy of this resolution to the of President Bush’s four predecessors nees from the administration of Presi- President of the University of Minnesota. during their first Congress. dent Jimmy Carter through President Mr. REID. I would say, Madam Presi- It has done a poor job with respect to Bill Clinton got a full Senate vote. dent, those Minnesotans know how to confirming both district and appellate Looking at President Carter’s first 2 play hockey and wrestle. court nominees, but it has been par- years, 100 percent of his nominees for f ticularly bad with regard to circuit the circuit court received a Senate court nominees, which is what I am vote. ORDERS FOR FRIDAY, APRIL 12, going to talk about tonight. Looking at President Reagan’s first 2 2002 From Jimmy Carter through Bill years, 95 percent of his nominees re- Mr. REID. Madam President, I ask Clinton, over 90 percent of the circuit ceived a Senate vote. unanimous consent that when the Sen- court nominees received a Judiciary Looking at the first President Bush ate completes its business today, it ad- Committee hearing during the Presi- circuit court nominees during the first journ until the hour of 10:30 a.m. to- dent’s first Congress. This is illus- 2 years, 95.7—or 22 out of 23—got a full morrow, April 12; that following the trated by this chart. During President Senate vote. Of course, that was when prayer and the pledge, the Journal of Carter’s term, 100 percent of his circuit the Senate was controlled by the oppo- proceedings be deemed approved to court nominees received a hearing dur- sition party under the first President date, the morning hour be deemed ex- ing his first Congress. Under President Bush. pired, the time for the two leaders be Reagan, 95 percent—19 out of 20 circuit President Clinton in his first 2 years reserved for their use later in the day; court nominees—received a hearing in office, 86.4 percent—or 19 out of 22— and there be a period of morning busi- during his first Congress. Under the of the circuit court nominees got a full ness until 11:30, with Senators per- first President Bush, 95.7 percent of his Senate vote. Of course that was during mitted to speak for up to 10 minutes nominees for the circuit courts—22 out a period where President Clinton’s own each, with time equally divided be- of 23—received a hearing during the party controlled the Senate. tween the two leaders or their des- first Bush’s Presidency. During Presi- Looking at the first 2 years of Presi- ignees. dent Clinton’s first Congress, 91 per- dent George W. Bush, to this point,

VerDate Mar 15 2010 20:27 Jan 09, 2014 Jkt 081600 PO 00000 Frm 00095 Fmt 4624 Sfmt 0634 E:\2002SENATE\S11AP2.REC S11AP2 mmaher on DSKCGSP4G1 with SOCIALSECURITY S2602 CONGRESSIONAL RECORD — SENATE April 11, 2002 only 24.1 percent of the nominees to was chairman, 10 times he held hear- whether or not we would be able to get the circuit courts have received a full ings with more than one circuit court electricity into New York, into the Senate vote—only 7 of 29. nominee on the agenda. With the cir- Presiding Officer’s part of the country, This is really unprecedented, shabby cuit court vacancy rate approaching 20 because of the issue of transmission treatment of President Bush’s circuit percent, this is something we should be lines. We were fortunate last summer court nominees. doing now as well. was not that hot and the demand was The final chart shows comprehen- In sum, we need to do a better job in not up, so there were not any brown- sively how poorly we are doing right the confirmation process, particularly outs or blackouts. But it is very impor- now at all stages of the process in mov- with respect to circuit court nominees. tant we move forward with siting these ing circuit court nominees. These historical precedents give us a transmission lines so we can get power Looking at it in terms of hearings, reasonable goal to which to aspire, and into the areas that need them. committee votes, or full Senate votes, we need to redouble our efforts to meet The amendment Senator LANDRIEU during a President’s first 2 years in of- past practices. and I have written would require all fice, the picture tells the story. I might say in closing that we have a Federal agencies to coordinate the en- Under President Carter, 100 percent particular crisis in the Sixth Judicial vironmental reviews of energy pipe- received both a hearing, a committee Circuit, which includes the States of lines and transmission lines so that the vote, and a full Senate vote during his Michigan, Ohio, Kentucky, and Ten- reviews take place simultaneously and first 2 years. nessee. The Sixth Circuit is 50-percent a decision can be reached quickly on During President Reagan, 95 percent vacant. Eight out of 16 seats are not whether to move forward with the of his nominees received a hearing, a filled—not because there haven’t been projects. committee vote, and a full Senate vote. nominations. Seven of the eight nomi- This amendment does not change un- The first President Bush, 95.7 percent nations are before the Senate Judiciary derlying environmental statutes, nor of his nominees got all three—a hear- Committee. A couple of them have does it change the environmental ing, a committee vote, and a full Sen- been there for almost a year. No hear- standards used for approving these ate vote. ings have been held. We have a judicial projects. All current and future envi- President Clinton: 91 percent of his emergency in the Sixth Circuit. ronmental laws are not changed by the nominees in his first 2 years—again, re- I think this needs to be talked about. amendment. Let me repeat that: Cur- membering that President Clinton’s Regretfully, our record is quite sorry. rent and future environmental laws are party controlled the Senate his first 2 We have some months left to be in ses- not changed. years—91 percent received a hearing in sion. Hopefully, this will improve as This amendment is based on a bill I committee, and 86.4 percent received a the weeks roll along. introduced last year, S. 1580, the Envi- vote both in committee and in the full Madam President, I suggest the ab- ronmental Streamlining of Energy Fa- Senate. sence of a quorum. cilities Act of 2001, which would have Then, looking at President George W. The PRESIDING OFFICER. The applied to all energy facilities. Bush, only 34.5 percent of his nominees clerk will call the roll. The idea for this amendment is from The assistant legislative clerk pro- for circuit court—a mere 10 out of 29— the environmental streamlining provi- have even been given a hearing in com- ceeded to call the roll. Mr. VOINOVICH. Madam President, I sions of the highway bill, TEA–21. In mittee, only 27.6 percent have been ask unanimous consent the order for that legislation, an amendment offered given votes in committee, and only 24 the quorum call be rescinded and that by Senators WYDEN, GRAHAM, and BOB percent—a mere 7 out of 29—have been I be recognized to speak in morning SMITH required the Transportation De- given votes in the full Senate. partment to coordinate all environ- This is a very poor record that I business. The PRESIDING OFFICER. Without mental reviews for highway projects so think begins to become a national objection, it is so ordered. that the reviews would take place at issue. At the rate this is going, I think the same time, saving years on major it will be discussed all across our coun- f highway projects. try in the course of the Senate elec- PIPELINE AND TRANSMISSION What we are trying to do today is tions this fall. STREAMLINING apply this same concept to the building It is pretty clear that we are not Mr. VOINOVICH. Madam President, I of pipelines and transmission lines. doing a very good job of filling vacan- would like to spend a few minutes Today we are facing a shortage of pipe- cies, particularly the 19 percent of va- today talking about an amendment lines, and it is becoming more difficult cancies that exist at the circuit court that I filed on the energy bill, amend- every day to site transmission lines. level, and 50 percent of the vacancies ment No. 3116. It is titled the ‘‘Inte- While this amendment would not that exist in my own State of Ken- grated Review of Energy Delivery Sys- change the laws of eminent domain or tucky. tems Act of 2002.’’ the environmental standards, what it We did have a markup for a lone cir- This amendment, which Senator will do is help expedite the review cuit court nominee this morning, and LANDRIEU has cosponsored, will stream- process. we had a confirmation hearing this line the siting process for energy pipe- I would like to briefly outline the afternoon for another lone circuit lines and transmission lines. provisions of my amendment. court nominee. I suppose that is a step As my colleagues know, one of the First, we designate one lead agency in the right direction. Some progress is biggest challenges we face in ensuring to coordinate the review process. To certainly, of course, better than none. that we have a consistent energy pol- eliminate the duplication efforts by But if we are going to address the icy is ensuring we get energy to where agencies with oversight for the con- major vacancy problem on the appel- it is needed. One of the problems we struction, operation, and maintenance late courts, we must have more than have had in previous winters has been of pipelines and transmission lines, a one circuit court nominee per con- the inability of energy supply to meet single Federal agency would be identi- firmation hearing, and we must have the demand solely because of bottle- fied to coordinate all required paper- more than one circuit court nominee at necks in the distribution system. work and research for the environ- a markup. Unless we address the situation, each mental review of a proposed pipeline or Furthermore, we are going to have to winter places such as the northeastern transmission system. have regular hearings and regular part of the United States will continue The agencies involved in this process markups for circuit court nominees. to face high spikes in prices because would include the Environmental Pro- Before today, for example, it had been their electric power grid and their tection Agency, the Department of En- 4 weeks since we had a markup. Thus, pipeline system are both severely over- ergy, FERC, the Army Corps of Engi- in the 2 weeks prior to recess, we had taxed. Removing this bottleneck will neers, and the Department of Transpor- only one markup with only one circuit help stem huge potential problems tation’s Office of Pipeline Safety. court nominee on the agenda. And that down the road. Agencies with partial oversight for a nominee was, in fact, defeated on a The Presiding Officer knows that one project would provide information party-line vote. When Senator HATCH of the concerns we had last year was from their area of expertise, while the

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How- livery of energy and that this can be view process. ever, in my view, the region which done without changing or undermining The lead agency, along with the Gov- probably needs this provision the most our environmental laws. ernor of the State where the applica- is the Northeast. I yield the floor. tion for the facility has been made, According to a study by ISO New would work together to provide early England Corporation, the nonprofit op- f notification to the public in order to erator of New England’s power grid has identify and address any environ- said that New England is increasing its ADJOURNMENT UNTIL 10:30 A.M. mental concerns associated with the natural gas demand from 16 percent in TOMORROW proposed system. 1999, to a projected 45-percent demand The PRESIDING OFFICER. Under If there appears to be an environ- in 2005. Unfortunately, they lack the the previous order, the Senate stands mental concern related to the permit- local pipelines to distribute that gas to adjourned until 10:30 a.m. on Friday, ting, the Council on Environmental their markets. April 12, 2002. Quality, in conjunction with the heads The study says that there is no worry Thereupon, the Senate, at 6:32 p.m., of the lead agency and participating about any blackouts, unless nothing adjourned until Friday, April 12, 2002, agencies, would work together to re- has changed one year from now. Three at 10:30 a.m. solve the matter within 30 days. of the changes they need are: New gas- The problem is, when differences of fired plants should be allowed to de- f opinion arise, it can take forever for velop the ability to burn oil as a these differences to be resolved. What NOMINATIONS we are suggesting in this legislation is backup. The second is the regional that they would be brought to the pipeline system has to be expanded. Executive nominations received by Council on Environmental Quality, and And third, new compressors need to be the Senate April 11, 2002: they would sit down with the lead added to existing pipelines to increase POSTAL RATE COMMISSION delivery capacity. So there is a genuine agency and participating agencies, and TONY HAMMOND, OF VIRGINIA, TO BE A COMMISSIONER they would work together to get a res- need there to move forward with pro- OF THE POSTAL RATE COMMISSION FOR THE REMAIN- viding pipelines so they can get gas DER OF THE TERM EXPIRING OCTOBER 14, 2004, VICE ED- olution within 30 days. WARD JAY GLEIMAN, RESIGNED. into the Northeast, s ISO stated in its The amendment directs coordination DEPARTMENT OF JUSTICE between the Federal, State, and local report issued in January of last year. STEVEN M. BISKUPIC, OF WISCONSIN, TO BE UNITED governments on particular projects. The chairman of the ISO New Eng- STATES ATTORNEY FOR THE EASTERN DISTRICT OF WIS- After a lead agency is appointed, it land, Mr. William Berry, said: CONSIN FOR THE TERM OF FOUR YEARS, VICE THOMAS PAUL SCHNEIDER, RESIGNED. would be required to coordinate the en- The long and complicated federal permit- JAN PAUL MILLER, OF ILLINOIS, TO BE UNITED STATES vironmental review process with input ting process for building new interstate pipe- ATTORNEY FOR THE CENTRAL DISTRICT OF ILLINOIS FOR THE TERM OF FOUR YEARS, VICE FRANCES from Federal, State, and local govern- lines is a greater obstacle than the technical construction work. CUTHBERT HULIN, RESIGNED. ments. This includes the preparation of IN THE ARMY environmental impact statements, re- The amendment Senator LANDRIEU and I introduced will help speed up, as THE FOLLOWING NAMED OFFICER FOR APPOINTMENT view analysis, opinions, determina- IN THE UNITED STATES ARMY TO THE GRADE INDICATED tions, or authorizations required under Mr. Berry calls it, ‘‘the long and com- WHILE ASSIGNED TO A POSITION OF IMPORTANCE AND RESPONSIBILITY UNDER TITLE 10, U.S.C., SECTION 601: Federal law. plicated federal permitting process,’’ The amendment also allows for Fed- and it will do so without jeopardizing To be general eral delegation to the States. At the any environmental protections and LT. GEN. LEON J. LAPORTE, 0000 request of a Governor, and with the without changing any of our current IN THE MARINE CORPS agreement of the applicant, a State environmental laws. THE FOLLOWING NAMED OFFICER FOR APPOINTMENT This amendment is supported by the IN THE UNITED STATES MARINE CORPS TO THE GRADE agency may assume the role of lead INDICATED WHILE ASSIGNED TO A POSITION OF IMPOR- agency. The Federal agency would del- American Gas Association, the Amer- TANCE AND RESPONSIBILITY UNDER TITLE 10, U.S.C., egate to the State agency the author- ican Chemistry Council, the Edison SECTION 601: ity to prepare the Federal environ- Electric Institute, the Interstate Nat- To be lieutenant general mental impact statement or other en- ural Gas Association of America, the MAJ. GEN. GARY H. HUGHEY, 0000 vironmental assessment following the Association of Oil Pipelines, and the THE FOLLOWING NAMED LIMITED DUTY OFFICERS FOR procedures for a Federal lead agency. National Association of Manufacturers. APPOINTMENT TO THE GRADE INDICATED IN THE UNITED STATES MARINE CORPS UNDER TITLE 10, U.S.C., Where there is a delegation of au- This is a commonsense approach to SECTION 624: thority to the State, the lead agency requiring our Federal agencies to work To be lieutenant colonel continues to provide guidance and par- together to get the permitting deci- MICHAEL J. BISSONNETTE, 0000 ticipation in preparing the final sions considered at the same time. Ac- MARK A. CLESTER, 0000 version of the environmental impact cording to the Interstate Natural Gas DANIEL J. MCLEAN, 0000 statement or environmental assess- Association of America, the United f ment. The lead Federal agency must States will need 49,500 miles of new natural gas transmission lines between also provide an independent evaluation CONFIRMATION of the statement or assessment prior to now and 2015. That is just to keep up its approval. with the large projected increase in de- Executive nomination confirmed by Finally, the standard of review under mand for natural gas. It is also pro- the Senate April 11, 2002: State and Federal laws relating to the jected that our demand for natural gas NATIONAL AERONAUTICS AND SPACE siting or construction or operation of a will increase by 50 percent by the year ADMINISTRATION pipeline or transmission line would not 2020. ROBERT WATSON COBB, OF MARYLAND, TO BE INSPEC- We need to act today to ensure that TOR GENERAL, NATIONAL AERONAUTICS AND SPACE AD- be preempted, and the lead Federal MINISTRATION. agency is authorized to provide funding our energy can be delivered to Amer- THE ABOVE NOMINATION WAS APPROVED SUBJECT TO ican homes tomorrow. I hope this THE NOMINEE’S COMMITMENT TO RESPOND TO RE- to the State when they assume the QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY Federal responsibility. amendment will be accepted and we CONSTITUTED COMMITTEE OF THE SENATE.

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CONGRATULATIONS, TED AND BEAR RIVER MIGRATORY BIRD generous people in the world through their fi- LOIS WELLINGTON, ON 65TH REFUGE SETTLEMENT ACT OF 2002 nancial generosity to the victims of the trag- WEDDING ANNIVERSARY edy. Unfortunately, organ donors—Americans SPEECH OF who sacrifice for others—are often overlooked. HON. JIM MATHESON Organ transplantation is a unique medical pro- cedure, since it relies on the kindness and HON. ADAM B. SCHIFF OF UTAH compassion of others—often strangers—to OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES save lives. Despite the generosity of thou- IN THE HOUSE OF REPRESENTATIVES Tuesday, April 9, 2002 sands of donors, however, the supply of or- gans still falls short of the need. Thursday, April 11, 2002 Mr. MATHESON. Mr. Speaker, rise today to give my whole-hearted endorsement and sup- Currently, there is a nationwide shortage of Mr. SCHIFF Mr. Speaker, I rise today to port for H.R. 3958, the Bear River Migratory available and suitable organs for patients needing a transplant. Nearly 75,000 people honor two outstanding citizens of California’s Bird Refuge Settlement Act. This bill provides more than just a mere set- are currently waiting to receive a transplant, 27th Congressional District. Ted and Lois Wel- and every 14 minutes another name is added lington, life long residents of Burbank, Cali- tlement between the federal government and the State of Utah, it is a model of how state to the list. In the last decade alone, the waiting fornia, celebrated their 65th Wedding Anniver- and federal interests can work together in list has grown by over 300 percent. Because sary on March 27, 2002. Over their lifetime, order to protect our shared environment. of low donor rates, thousands of people die both Lois and Ted have devoted themselves The Bear River Refuge is an ecological each year for lack of suitable organs. to the well being of the greater Burbank com- treasure. Surrounded by a desert and a brack- Through his tragic death, the grandson of munity. ish marsh, the Bear River is truly an oasis for one of my constituents was able to give life and hope to many others. Corey had been in- Ted and Lois both attended Burbank public thousands of birds. In 1843, explorer John C. Freemont visited the site and said that the volved with motorcycles since he was a small schools while growing up and met each other boy. He was riding at a motorcycle track, like while attending Burbank High School. But it sounds of waterfowl were like ‘‘a thunder, and the whole scene was animated with water- he had done many times before, practicing wasn’t until Ted became the accountant in fowl.’’ with his new motorcycle. The cycle over-throt- Lois’s father’s mechanic shop that they began The refuge, however, is threatened. In 1983 tled and crashed into his best friend, who was dating. They were married on March 27, 1937 the Great Salt Lake breached its banks and riding a motorcycle in the opposite direction. and remained in Burbank to raise their family. flooded the fragile ecosystem of the refuge. Corey suffered immediate brain swelling and They raised two children in Burbank—Barbara The pristine waters became contaminated; mi- never recovered. But fortunately for others, ‘‘Dee’’ Erman of Placentia and Frederick crobes, plants, and animals were all put at Corey’s parents chose to donate his organs ‘‘Rick’’ Wellington of San Gabriel. They are ex- risk. and give others the gift of life. I would like to tremely proud of their two children and are The refuge is now on its way to recovery. personally thank them for their gift and com- mend their great sacrifice in their own time of also blessed to have four grandchildren: Mi- There has been a concerted effort by the fed- eral government and the state to remediate mourning. chael, Lawrence, Edward, and Patrick, and Through a gracious letter from the donor two great grandchildren: Sean and Haley. the damage caused and return the refuge to its prior condition. services organization, Corey’s family was able Over the years Ted has worked for Fox Stu- That job has been complicated, not by the to learn how his gift was able to touch the dios, Lockheed, and he concluded his ac- forces of nature but by the anachronistic ambi- lives of so many others. His heart went to a counting career in the Los Angeles County guities of lines of ownership between federal young 14-year-old in Alabama, who required a Tax Assessor’s office. Lois, while working for and state holdings. The lack of a meander line transplant due to a heart defect from birth. the City of Burbank Department of Water and survey of the land has led to uncertainty of Corey’s liver went to a 67-year-old mother from Virginia, and his pancreas to a 49-year- Power, is one of the original founders of the ownership within the refuge. State and federal agencies are unsure of old mother of two from Tennessee. Burbank Public Employees Association. Donation of a person’s organs is a pro- their jurisdiction, and that uncertainty has sty- Lois’s involvement in the community is not foundly selfless act that should be respected mied the important environmental work that and acknowledged. Out of Corey’s donation, only limited to Burbank, she has served as the needs to be completed. many lives were touched and many people President of the Retired Public Employees As- This $15 million agreement would invest now have hope that they might not have had sociation, as the President of the Congress of much needed resources into the continued otherwise. I would encourage all Americans to California Seniors, as an officer for the Inter- protection of the refuge-$10 million would be follow Corey’s example and register to donate national Seniors Council Association and as provided into a wetlands protection account. their organs so that others may live. the Chair of the President’s Council of the Na- The remaining $5 million will be used for de- tional Council of Senior Citizens. She is cur- velopment, improvement, and expansion of a f rently a Senator of the Silver Haired Con- trail system throughout the refuge. HONORING ACHIEVEMENTS AND gress. This is a good deal for the United States, a BIRTHDAY OF CESAR CHAVEZ great agreement for Utah, and important step Not to be outdone, Ted has been active in in preserving a fragile ecosystem. local, county, state, and national politics HON. ADAM B. SCHIFF f throughout his life. Locally he has been per- OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES sistent in his attempts to attract young people IMPORTANCE OF ORGAN to politics. And when Ted isn’t reading, he is DONATION Thursday, April 11, 2002 tending to his vegetable garden, which some Mr. SCHIFF. Mr. Speaker, I rise today to say produces the best tomatoes in Burbank. HON. MICHAEL BILIRAKIS honor the achievements and birthday this March 31st of the late Cesar Chavez, a true I would like all Members of the United OF FLORIDA IN THE HOUSE OF REPRESENTATIVES pioneer for workers and communities who States House of Representatives to join me in rose to become one of our nation’s—and Thursday, April 11, 2002 congratulating Ted and Lois Wellington on world’s—greatest advocates of nonviolent so- their 65th Wedding Anniversary. They have Mr. BILIRAKIS. Mr. Speaker, after Sep- cial change. truly shown devotion not only to each other tember 11th, Americans proved once again Cesar Chavez is best remembered for but to their family and community as well. that they are the most compassionate and founding and leading the first successful farm

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

VerDate 112000 05:35 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00001 Fmt 0626 Sfmt 9920 E:\CR\FM\A11AP8.000 pfrm04 PsN: E11PT1 E500 CONGRESSIONAL RECORD — Extensions of Remarks April 11, 2002 workers’ union and becoming the president of held, where activities can be organized, and mitments of this organization include the pres- the United Farm Workers of America. His tre- communities can come together. ervation of cultural diversity, the promotion of mendous efforts—and those who worked with This legislation will help to do both. The bill equality, the battle for justice, and the peace- him—improved the lives of tens of thousands authorizes $2.5 million for the construction and keeper among all peoples. of workers and families, and inspired millions maintenance of the Sand Hallow Recreational The Ellis Island Medal of Honor serves to of people from all walks of life around our na- Area. This will help provide the needed re- acknowledge individuals whom have accom- tion and world. sources to allow for the continued water and plished personal achievements while pro- Born on a small Arizona farm on March 31, recreational resources of Washington County. moting their particular heritage. The award is 1927, Cesar Chavez began his life as a farm As a child, I spent many days in the area named in honor of the persistence of worker in the field at age 10. He served in the around Sand Hollow. It is a magnificent area, 12,000,000 immigrants as they entered a new United States Navy during World War II. and a place that will only be enhanced by this world to pursue freedom and economic oppor- With the strength of family and the unity of authorization. tunity. This award honors the commitments of fellow farm workers, Cesar Chavez became f peoples seeking to preserve their heritage in a an organizer with the Community Service Or- diverse nation. ganization, a civic group of Mexican-Ameri- GREATEST WINTER OLYMICS The Ellis Island Medal of Honor is important cans, in the early 1950s. Soon thereafter, he EVER in that it acknowledges the contributors of our moved with his wife, Helen, and eight children great nation. SPEECH OF to California’s Central Valley where he found- Since the Ellis Island Medal of Honor was ed the National Farm Workers Association. HON. JIM MATHESON established in 1986, over 1,500 individuals With his young children by his side, Cesar OF UTAH from many different ethnic groups have re- would visit California farm communities to IN THE HOUSE OF REPRESENTATIVES ceived the award, including over 5,000 individ- bring public light to the substandard working uals whom are nominated each year. I was Tuesday, April 9, 2002 conditions and lack of sufficient pay and bene- honored to receive the Ellis Island Medal of fits of thousands of Latino migrant workers Mr. MATHESON. Mr. Speaker, it is with Honor and I greatly respect the achievements who worked long hours on farms. Chavez led great pleasure that I rise today to congratulate of the other recipients of this award. peaceful boycotts to bring national attention to the people of Salt Lake City and the State of At the 2002 Ellis Island Medal of Honor the fight for equality and justice for migrant Utah, as well as athletes from around the ceremony, contributors to the relief and recov- farm workers. His passionate leadership world for a successful 19th Winter Olympics. I ery efforts of September 11 will be honored. brought together a remarkable alliance of stu- express my appreciation for the hard work by These honorees and other contributors to the dents, unions, minorities, churches and others the thousands of volunteers of what has been United States will rightly be recognized under to fight for their fellow men, women, and chil- described as the world’s greatest Winter the Ellis Island Medal of Honor for their dren working in the agricultural sector. Olympics ever. achievements and dedication to their country. I was proud to be a member of the Cali- The Games showed how as Americans, we f fornia State Senate in 2000 and vote to have have not given up, but have rallied around our the State of California recognize Cesar national— and international—banners. Over TOM JOYNER MORNING SHOW Chavez’s birthday as a day to remember his 27,000 people served as volunteers during the good work and to re-ignite our personal and games. Volunteers made up almost the entire HON. EARL F. HILLIARD social passion for continually improving the cast of the opening and closing ceremony per- OF ALABAMA conditions of workers and communities across formances. Doctors, nurses, businessmen, IN THE HOUSE OF REPRESENTATIVES housewives, and even teenagers worked for our nation and world. Thursday, April 11, 2002 So, Mr. Speaker, today I ask all Members of 17 straight days to make sure this event was the United States House of Representatives to one that no one would ever forget. Mr. HILLIARD. Mr. Speaker, I rise to pay pause and honor a great man, Cesar Chavez, Mr. Speaker, I hope that as Members of this tribute to the award winning syndicated radio and the great cause he helped lead of ad- body watched the Games on television that talk show, ‘‘The Tom Joyner Morning Show,‘‘ vancing fairness, justice, and the improvement they too saw what I saw: People from through- and Congresswoman CARRIE MEEK for a job of the living and working conditions of our fel- out the world coming together to celebrate the well done in making sure that everyone was low human beings. spirit of fair competition and sport. I appreciate included in the 2000 Census count. f the work of the Congress and the President to More than one million people in the African ensure that the games ran smoothly and se- American community were counted who would H.R. 3848, WASHINGTON COUNTY, curely. It is my hope that the Salt Lake Olym- not have been counted, but for the efforts of UTAH RECREATIONAL AND VIS- pic Games will be an example for the world of this radio program. I also wish to thank Mr. ITOR FACILITIES how to host a large, safe, secure, and suc- Joyner, his team, and Kweisi Mfume for their cessful international event. efforts in turning out the vote in the November SPEECH OF f 2000 Election. Their numerous presentations HON. JIM MATHESON during this critical time on a continuing basis RECOGNIZING THE IMPORTANCE OF UTAH were outstanding! OF THE ELLIS ISLAND MEDAL Each morning the program was informative, IN THE HOUSE OF REPRESENTATIVES OF HONOR motivational and highly successful in achieving Tuesday, April 9, 2002 its goal. Because of this program, the percent- Mr. MATHESON. HON. CAROLYN B. MALONEY age of African-American votes was greater Mr. Speaker, I rise today to lend my voice OF NEW YORK than that of Whites and other groups of the in support of this important legislation. IN THE HOUSE OF REPRESENTATIVES voting age population in the state of Florida Washington County, Utah is one of the fast- and in most Southern states. est growing counties not only in Utah, but in Thursday, April 11, 2002 The group’s impact was so tremendous that the United States. Within the last ten years the Mrs. MALONEY of New York. Mr. Speaker, it served as a catalyst for motivating African- population of Washington County has grown I rise today in support of H. Res. 377 and to Americans across this country to register to by more than 80 percent. The City of St. acknowledge the importance of the Ellis Island vote and participate in the Census count. This George is fast becoming one of America’s pre- Medal of Honor, an award established by the newfound sense of empowerment increased mier retirement and vacation gateway commu- National Ethnic Coalition of Organizations to African-American interest in social and political nities in the country. applaud individuals of various ethnic groups affairs; increased their social, financial and po- With this growth come two very basic for their contributions to the United States. litical wealth; and resulted in their becoming needs. First, all cities, regardless of size, ge- The Ellis Island Medal of Honor organization better citizens. ography, lay out, structure, or economy, need is a member of the National Ethnic Coalition of Mr. Joyner has been a creative trailblazer water. Nowhere is this need felt more than in Organizations, the largest organization of its and by taking the show on the road he has in- the red rock desert of southwestern Utah. kind in the United States, representing over 5 spired, motivated, educated and informed Secondly, vibrant cities need a place for million family members and serving as a unit- America. In addition, he has brought his family people to recreate. They need areas where ing force for 275 organizations in the fields of into millions of households in America. By ac- families can gather, where picnics can be ethnic heritage, culture, and religion. The com- tively participating in the work of ‘‘The Tom

VerDate 112000 05:35 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00002 Fmt 0626 Sfmt 9920 E:\CR\FM\A11AP8.004 pfrm04 PsN: E11PT1 April 11, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E501 Joyner Foundation’’ which is an instrument to sons—-Thomas Joyner, Jr., the CEO of The CELEBRATING 20TH ANNIVERSARY give back to the community, he has given Tom Joyner Foundation and Oscar Joyner, Di- OF TAIWAN RELATIONS ACT scholarships to help needy students at Histori- rector of Marketing for the foundation. cally Black Colleges and Universities Tom’s efforts and awards cannot go unno- HON. ILEANA ROS-LEHTINEN (HBCU’s) and strengthened the African-Amer- ticed and must be recorded in history. There- OF FLORIDA ican concept of parents and children cooper- fore, this insertion in the CONGRESSIONAL IN THE HOUSE OF REPRESENTATIVES ating together to build a greater society. RECORD is made so that Tom Joyner’s efforts This is just one of the many programs which and all of his positive actions and ‘‘solid gold Thursday, April 11, 2002 has involved his talented and creative efforts. programming’’ will be engrossed and embed- Ms. ROS-LEHTINEN. Mr. Speaker, on April His weekly Thursday Morning Moms highlights ded in the history of this country. 10th, we celebrated the 20th anniversary of the struggles of African-American women ris- f the Taiwan Relations Act being signed into ing to the highest level of family. His weekly law. Since the time of its enactment, it has tribute to Real Fathers Real Men; his feature A TRIBUTE TO ALFRED E. MANN only served to strengthen the position of the of Little Known Black History Facts; his feature Republic of China on Taiwan, internationally, of Christmas Wish List; and his feature of Ce- HON. ADAM B. SCHIFF as both an economic power and champion of lebrity Interviews continue to inspire, enlighten OF CALIFORNIA democracy in Asia. and motivate African-Americans to be proud of IN THE HOUSE OF REPRESENTATIVES The Taiwan Relations Act set the premise the past, achieve in the present and prepare Thursday, April 11, 2002 for the United States long standing friendship for the future. with the Formosa Island. Throughout the Mr. Joyner’s leadership on issues which af- Mr. SCHIFF. Mr. Speaker, it is an honor to years, that commitment of friendship has been fect African-Americans on a daily basis is su- rise today and honor Alfred E. Mann, a great met with our continual support of their security perb and outstanding. His ‘‘fly jocking’’ across philanthropist in the Southern California com- needs, as well as a strong trade partnership. America to various cities and states not only munity and famed national bio-medical re- In closing, I want to commend the wonderful increased the awareness of issues of interests searcher. He has dedicated his life to his fam- work of Ambassador C.J. Chen and his staff to the African-American community, but moti- ily, his church, and to the search for cures to in representing the needs and concerns of the vated them to take action. He earned this ‘‘fly the world’s most devastating diseases and af- ROC and always extending the friendship of jocking’’ title through his dedication to serve flictions. the Taiwanese to those of us here in Wash- radio audiences in Dallas, Texas and Chicago, Alfred Mann was born in Portland, Oregon ington, DC. Through their efforts, I am certain Illinois. Both markets recognized his impres- in 1925 and has been a resident of Los Ange- that the relationship between the United sive talent and wanted him at the same time. les, California since 1946. He attended the States and Taiwan, anchored in the Taiwan Before expanding his presence into 120 mar- University of California, Los Angeles and has Relations Act, will continue to strengthen in kets across the country, Tom flew from Dallas received honorary doctorate degrees from the the years ahead. to Chicago every day for seven years. University of Southern California and The f Tom’s actions are commendable and very John Hopkins University. much appreciated. The other super stars, i.e., He has earned his reputation as a bio- IN RECOGNITION OF THE DEAN OF J. Anthony Brown, Sybil Wilkes, Miss Dupree, medical pioneer because of his outstanding THE FLORIDA LEGISLATURE Myra J., Tavis Smiley, and Donna Richardson accomplishments throughout his professional also inform and motivate the public. The Tom life. As the Chairman and co-CEO of Ad- HON. E. CLAY SHAW, JR. Joyner Morning Show is truly inspirational. vanced Bionics Corporation, he manufactured OF FLORIDA Mr. Joyner and his morning crew have re- a developed advanced cochlear implants for IN THE HOUSE OF REPRESENTATIVES ceived many awards, which reflect their skills, the restoration of hearing and is currently de- Thursday, April 11, 2002 talents and contributions specifically to Afri- veloping a number of neurostimulation sys- can-Americans, and generally to all Ameri- tems which may prove to be beneficial in Mr. SHAW. Mr. Speaker, I rise today to cans. treating those who face paralysis and any honor the 24-year legislative career of my Lastly and most importantly, I would like to number of neurological disorders. He is also friend, and constituent, Ron Silver. Ron Silver share a piece of Tom Joyner’s personal his- responsible for the manufacturing of contin- exemplifies the essence of what it means to tory. uous glucose monitoring systems primarily be a public servant. Throughout his legislative Born to Frances and Hercules Lionel Joyner used for the treatment of diabetes and for the career Ron has served Florida and the people of Tuskegee, Alabama, Tom attended elemen- manufacture of hospital intravenous pumps. of Miami-Dade county with dignity and honor. tary school at the Chambliss Children’s Mr. Mann has made a lifelong commitment His peers fondly named him Dean of the Flor- House, which was a laboratory school located to philanthropy. His countless number of chari- ida Legislature. on the grounds of Tuskegee Institute. He went table donations has made a lasting impact on A native of Cambridge, Massachusetts, Ron on to enroll at Tuskegee Institute High School our nation. In fact, each year, his name can and his family moved to Florida in 1958 where where he received his educational training be found on the list of the ten most philan- young Ron began laying the groundwork for a under the direction of Mrs. Alberta Ritchie, the thropic minded individuals. Two of his largest legislative career that would span over two mother of famous singer and songwriter Lionel donations, 100 million to the University of decades, include five U.S. presidents and six Ritchie. Southern California and the promise of 100 Florida governors. In 1978, Ron took his ideas During his matriculation at Tuskegee Insti- million to the University of California, Los An- and vision to Tallahassee as a member of the tute, Tom played records in the college cafe- geles, will help shape the face of current and Florida House of Representatives. There, Ron teria after basketball and football games. He future research at both of these institutions. worked tirelessly on issues such as health further expressed his love for music and enter- Also, as the founder of two medical re- care, aging and long term care, and criminal tainment as a member of a local singing search foundations—the Alfred Mann Founda- justice. His leadership was rewarded when his group, The Commodores. After performing tion and the Alfred Mann Institute at the Uni- colleagues elected him to two terms as House with the group for two years, Tom asked his versity of Southern California—Alfred Mann Majority Whip and Majority Leader. In these parents’ permission to leave school and tour has ensured that the biomedical community leadership roles, Ron had the enviable task of with The Commodores. His parents refused to will be able to engage in the lasting study of building consensus among of his Democratic allow him to drop out of College and follow the the diseases and ailments that affect so many colleagues. Not an easy task, but one that group, but instead, they strongly encouraged Americans. Ron relished. him to finish his education at Tuskegee Insti- Alfred Mann’s dedication to the biomedical In 1992, Ron, with the support of his be- tute. community has and will continue to produce loved wife, Irene, was elected to the Florida Upon graduation in 1971, Tom decided to lasting and important discoveries as our nation Senate. In the Senate, he was again elected pursue his dream as a radio announcer. His faces the challenge of curing the world’s most to a leadership role as Majority Leader. As a mission was to change the face of Black radio devastating illnesses. His commitment to help- member of that distinguished body, Ron into an advocacy medium, with particular inter- ing others through research and philanthropy stands out as a champion of disadvantaged ests in broadening the awareness of HBCU’s has and will continue to have a positive affect Floridians. Ron shares my commitment to re- and increasing voter registration. for all of us. I ask all Members of Congress to ducing Florida’s welfare rolls by promoting Tom is married to fitness expert and trainer join me in honoring a man who has given a personal responsibility and giving a hand up Donna Richardson. He is the father of two lifetime to making a difference in our Nation. as opposed to a hand out. Our partnership

VerDate 112000 05:35 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 0626 Sfmt 9920 E:\CR\FM\A11AP8.009 pfrm04 PsN: E11PT1 E502 CONGRESSIONAL RECORD — Extensions of Remarks April 11, 2002 grew as a result of the historic 1996 welfare tablishments in an organized manner in the creation of the Court and its institutions. In the reform act and it continues today as we fund state are being booked under the milder Preparatory Commission meetings estab- the critical program known as Temporary As- Criminal Procedure Code. POTO allows a lishing the mechanics and operations of the person to be held without bail for 30 days. sistance for Needy Families (TANF). Rights activists here contended that this Court, U.S. diplomats and other officials have Although 2002 brings an end to Ron Silver’s was yet another example of the state govern- played a key role in shaping this institution. legislative service, Mr. Speaker, I am certain ment’s bias against the Muslim community, While I have no illusions that the United Ron will continue serving his community and and called for the scrapping of POTO. States will ratify the Rome Statute anytime the great state of Florida for many years to Earlier, Chief Minister Narendra Modi’s soon, it would be shortsighted for us to take come. government had announced compensation of steps to neutralize our ability to assist in this Mr. Speaker, as Chairman of Florida’s Con- Rs. 200,000 ($4,166) for the victims of the process. In particular, I call on the Administra- gressional delegation, I salute Ron Silver, on Godhra tragedy, while the amount for those tion not to ‘‘unsign’’ the Rome Statute. As a his twenty-four great years of honorable serv- who died in the widespread retaliatory riots was fixed at half that amount, Rs. 100,000 signatory and in our observer capacity, we can ice in the Florida legislature and wish him and ($2,083). continue influencing the form of the Court over his family the very best in the years to come. Rights activists as well as journalists cov- the course of the next year into an institution I’m proud to call Ronald Alden Silver my ering the riots have noted how Muslim estab- that can have the effect of supporting U.S. na- friend. lishments were targeted in an organized tional security goals, not damaging them. That f manner—even when they masqueraded under is what we should focus on, not actions that Hindu names and were run in Hindu majority would isolate us further from our friends and IN SECULAR INDIA, HINDU LIVES areas. allies. WORTH TWICE AS MUCH AS MUS- f Let us move forward constructively with re- LIM LIVES spect to the International Criminal Court. If we THE INTERNATIONAL CRIMINAL do so, we may well be able to help advance COURT HON. CYNTHIA A. McKINNEY the cause of human rights and international OF GEORGIA justice. IN THE HOUSE OF REPRESENTATIVES HON. TOM LANTOS f Thursday, April 11, 2002 OF CALIFORNIA IN THE HOUSE OF REPRESENTATIVES NATIONAL ORGAN AND TISSUE Ms. MCKINNEY. Mr. Speaker, the govern- DONOR AWARENESS WEEK ment of India is compensating the families of Thursday, April 11, 2002 those who lost their lives in the recent riots in Mr. LANTOS. Mr. Speaker, today a number HON. CAROLYN McCARTHY Gujarat. While no amount of money makes up of countries will ratify the Rome Statute of the OF NEW YORK for the loss, this is a decent thing to do and International Criminal Court, surpassing the 60 IN THE HOUSE OF REPRESENTATIVES I salute India for it. countries needed to bring the Rome Statute However, Mr. Speaker, I was disturbed to into force. Ratification of this treaty is a nota- Thursday, April 11, 2002 find out that apparently in the world’s largest ble achievement for the new foreign policy of Mrs. MCCARTHY of New York. Mr. Speak- secular democracy, a Hindu life is worth twice the European Union, which adopted a com- er, I rise in recognition of National Organ and as much as a Muslim life. According to News mon position in support of ratification. Indeed Tissue Donor Awareness Week which begins India-Times, the Indian government is paying many of our European allies and our other April 21–27, 2002. As a nurse, I saw firsthand out 200,000 Rupees each to the families of friends, such as Belgium, Canada, Finland, how transplants and the generosity of donors Hindus who were killed, but just 100,000 Ru- France, Germany, Hungary, Italy, the Nether- save lives. As a Congresswoman, I have been pees to the family of each Muslim killed. lands, New Zealand, Sweden, Switzerland and proud to help my constituents work through Mr. Speaker, I think it is offensive that a the United Kingdom, have all ratified this land- the process of transplant surgery, and bring country that claims it is democratic thinks that mark international instrument. awareness to the importance of donors. the life of one person or group is twice as val- Everyone agrees that those who perpetrate A few years ago my office was fortunate uable as that of another person or group. genocide, crimes against humanity and war enough to help a constituent, John Pellegrino What if our government declared white lives crimes must face justice, either before inter- of Floral Park, New York, navigate through the twice as valuable as black ones, or vice national tribunals or before the national courts insurance maze. I’m pleased to note John versa? Would that be tolerated? of their own countries. And as we recently celebrates his two-year liver transplant anni- The article also notes that during the riots, heard in the testimony before the Committee versary on April 13. However, John’s anniver- ‘‘Muslim establishments were targeted in an on International Relations, there may be situa- sary is bittersweet, especially for his donor’s organized manner—even when they tions, such as post-conflict societies, where it parents, now also his good friends, Harold and masqueraded under Hindu names and were is simply impossible for national institutions to Melinda Yarbrough of Louisiana. In the midst run in Hindu majority areas.’’ This seems to in- pursue prosecutions of such crimes. For ex- of facing the agony of losing their precious dicate the government’s hand in the planning ample, the International Criminal Tribunals on daughter Breann, the Yarbroughs gave life to of the riots, an impression that is reinforced by the former Yugoslavia and Rwanda have done John and six other people. the fact that the police stood by and let the excellent work in those specific instances of It is fitting to honor John and the carnage happen. gross violations of recognized international Yarbroughs—as well as the thousands of This is simply part of an ongoing Hindu na- human rights norms. transplant recipients and donors. According to tionalist campaign to wipe out religious minori- While many Members of this House have the U.S. Department of Health and Human ties. It is unacceptable, Mr. Speaker, and expressed reservations regarding the exact Services, Congress first designated the third America must help to put a stop to it. We form of this Court, we all must now recognize full week in April as National Organ and Tis- should stop all aid to India until all people that it is a reality. Over 60 countries from sue Donor Awareness Week in 1983 (Public enjoy equal rights and we should demand a every continent have determined that it may Law 98–99) to raise awareness of the critical free and fair plebiscite in Kashmir, Khalistan, be appropriate at times for an international need for organ and tissue donation and to en- Nagaland, and the other nations seeking to court, rather than their own national courts, to courage all Americans to share their decision get out from under India’s brutal occupation. prosecute and try perpetrators of genocide, concerning donation with their families. Bone These steps will help bring real freedom, sta- crimes against humanity, and war crimes com- grafts enable individuals to walk again while bility, and prosperity to the South Asian re- mitted on their territory. Given the concerns skin grafts save the lives of critically burned gion. that have been expressed regarding the possi- patients, and donated corneas prevent or cor- Mr. Speaker, I would like to place the News bility of overzealous prosecutions coming from rect blindness. Heart valves help repair critical India-Times article into the RECORD. the Court, I believe that it is imperative that we cardiac defects. Today, more than 79,000 [From the News India-Times March 29, 2002] now all work together to ensure that the Court men, women and children wait for an organ MUSLIMS SUFFER BIAS EVEN AFTER THE RIOTS is a responsible international actor that ad- transplant, without an increase in donation, AHMEDABAD—The state government has vances the cause of human rights and inter- that number will continue to escalate, Cur- been booking those responsible for the national accountability, and fulfills its promise rently, 16 people die each day because there Godhra carnage under draconian Prevention as a worthy legacy of the Nuremberg Tribunal. are not enough organs available for transplant. of Terrorism Ordinance (POTO), while those In order to achieve this end, I believe that Every day 114 individuals are added to the who targeted Muslims and their business es- the United States must remain engaged in the national waiting list for organs.

VerDate 112000 05:35 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00004 Fmt 0626 Sfmt 9920 E:\CR\FM\A11AP8.013 pfrm04 PsN: E11PT1 April 11, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E503 I commend Breann’s parents for making a 90th birthday. Mr. Sesto has been an extraor- very special to him. Luisa and her father decision that allowed John to live. I am grate- dinary asset to the City of Santa Maria, Cali- shared a very close relationship. Throughout ful to Breann for her gift to John. We need fornia, as well as to Vandenberg Air Force Luisa’s life her father was a constant source of more heroes like Breann. With awareness Base, since he arrived on the Central Coast in love and support. He was a father, mentor and about organ and tissue donation, more organ 1950. best friend to her. Luisa will long remember transplants can save and enhance lives. Even at the age of 90, it is difficult to find the wonderful things he brought to her family Join me in bringing awareness to National anyone who is as active in the community as and to the lives that he touched. Philip was Organ and Tissue Donor Awareness Week, Mr. Sesto. He continues to serve on several and remains a tremendous figure in the April 21–27, 2002. community boards, and at a recent Santa thoughts and memories of his loved ones. His f Maria Chamber of Commerce annual meeting, loss will be felt most deeply. was dubbed ‘‘Mr. Santa Maria.’’ Mr. Sesto re- They say a man is measured by the lives he IN OPPOSITION TO PROPOSED ceived the Golden Medallion Award for being touches. Through the Grace of God he Phillip CUTS BY THE BUSH ADMINIS- the Chairman of the Local American Heart As- Ambris Sustaita touched many lives. Philip TRATION IN THE CENTERS FOR sociation, and was the President of the Santa was widely admired by family, friends and col- DISEASE CONTROL AND PREVEN- Maria Chamber of Commerce in 1954. He has leagues. He was hard working, dedicated, TION’S (CDC) CHRONIC DISEASE also been the Chairman for the Ways and committed, disciplined, loving and supporting. PROGRAMS Means Committee for the Construction of the He was everything one would want in a father, Marian Medical Center, which is the primary husband, and grandfather. He demonstrated HON. SILVESTRE REYES hospital in Santa Maria. Mr. Sesto has served his commitment to marriage and his family he OF TEXAS on the County Grand Jury, the County Arts provided love and ongoing support to his chil- IN THE HOUSE OF REPRESENTATIVES Commission, the County Health Commission, dren, grandchildren and played an active role Thursday, April 11, 2002 and the City of Santa Maria Planning Commis- in raising them. He was a strong person, the sion. He was the Chairman for the Develop- backbone to his family. He possessed hon- Mr. REYES. Mr. Speaker, I rise today to ment of the Cultural Facilities, Chairman for esty, strength, leadership and courage. He urge the House to increase funding for the the Bond Drive to Build Hancock College Per- was considered a true friend in every sense of Centers for Disease Control and Prevention’s forming Arts Theater and past President of the the word. Luisa’s mother, brothers and sisters (CDC) chronic disease programs including the Robert Goddard Chapter of the Air Force As- and numerous nieces and nephews, join her CDC’s diabetes control program. The diabetes sociation. in mourning the loss of their father. control program has been successfully imple- Mr. Sesto is also the Chairman of the Mili- And so Mr. Speaker, I submit this loving mented in 16 states and we must continue to tary Affairs Committee and has served as liai- memorial and join with all of those whom he build on this success by assuring its imple- son to Vandenberg Air Force Base since its loved in extending my prayers along with Bar- mentation in all 50 states. Mr. Speaker, it is inception in 1957. He has received national, bara to Luisa and hope that she may find important to note that by 2010, it is estimated state and local awards for his Air Force Asso- peace and comfort during this time of sorrow. that over 10 percent of the population will ciation activities, including the highest civilian Phillip Ambris Sustaita leaves his legacy in the have diabetes. In addition, current data sug- award given by the Air Force, ‘‘The Excep- heart of his beloved daughter, Luisa Sustaita, gest that diabetes is the seventh leading tional Service Award.’’ In 1990, Mr. Sesto was and all those who knew him. cause of death for Americans living along the named the Honorary Missileer at the Missile f U.S.-Mexico border and the third leading Competition, and the base auditorium was cause of death for Mexicans living on the named The Sesto Auditorium in 1986. IN HONOR OF MR. THOMAS A. other side of the border. It is estimated that Joe Sesto has shared his glorious sense of CRAIGG, JR., SERGEANT, USMC nearly 30 percent of residents along the U.S.- humor and generous heart with his fellow cen- RETIRED Mexico border have diabetes and that one tral coast neighbors for many, many years. He third don’t even know they have the disease. and his wife Philomene, who have been mar- HON. WALTER B. JONES Prevention of diabetes and its deadly com- ried for 67 years, can only be described as OF NORTH CAROLINA plications are keys to fighting this horrible dis- true pillars of the Santa Maria Valley. I am IN THE HOUSE OF REPRESENTATIVES ease. blessed to know this wonderful individual, and Thursday, April 11, 2002 Chronic diseases like diabetes, heart dis- urge my colleagues to join me in wishing him ease, cancer, and arthritis are the leading birthday greetings on this joyous occasion. Mr. JONES of North Carolina. Mr. Speaker, it is my honor to stand before you and my col- cause of death in the United States, killing f seven out of ten Americans. The costs of leagues today as I talk to you about a man chronic diseases are staggering, with more TRIBUTE TO THE MEMORY OF who, in accordance with his great service to than 70 percent of health care expenditures in PHILLIP AMBRIS SUSTAITA our nation, will receive two honors that have the United States going to combat or treat been years in coming. chronic diseases. By 2020, it is estimated that HON. JOE BACA In 1940, Mr. Thomas Craigg enlisted in the $1 trillion, or 80 percent of health expendi- OF CALIFORNIA Marine Corps. When War broke out in 1941, tures, will be spent on chronic diseases. IN THE HOUSE OF REPRESENTATIVES Private First Class Thomas Craigg was on the Unfortunately, President Bush’s budget calls Philippine Island of Luzon and Marines were Thursday, April 11, 2002 for a $175 million cut in the CDC’s chronic dis- under Army command distributed along the ease budget. With cuts of these magnitudes, Mr. BACA. Mr. Speaker, today I would like Bataan Peninsula. the CDC will not have the resources it needs to pay tribute to the memory of Phillip Ambris On the morning of February 24, 1942, ‘‘the to combat the pending diabetes epidemic. I Sustaita, the loving father of my friend, Luisa Commanding Officer of Charlie Battery, urge my colleagues to support a $350 million Sustaita. It is with much sadness that I inform mounted a patrol of 75 Marines and Sailors to increase in the CDC’s chronic disease budget my colleagues of the passing of a great indi- investigate an enemy Japanese force. The pa- and to send a clear message that combating vidual, a man who filled our world and the trol encountered an enemy, which was far su- diseases such as diabetes must remain a na- lives of those around him with love, compas- perior in number and well equipped troops tional priority. sion and family values. with heavy machine guns and supporting mor- f Luisa’s father, Phillip, was born on May 10, tars. The Commanding Officer dispatched a 1921 in Denver, Colorado, and passed away runner to the nearest antiaircraft battery for re- HONORING JOE SESTO on March 17, 2002 at the age of 80. Phillip inforcements with instructions for the gun cap- Sustaita bravely served his country during tain to report to the commanding officer’s posi- HON. LOIS CAPPS World War II as a member of the United tion on the bluff overlooking Lapiay Point. Pri- OF CALIFORNIA States Navy. Afterwards, Mr. Sustaita began a vate First Class Craigg arrived with his 13- IN THE HOUSE OF REPRESENTATIVES 40-year career as a Stationary Engineer with man squad and engaged two enemy gun em- National Ice and Cold Storage. He lived in placements, which had the main body pinned Thursday, April 11, 2002 Sacramento, California for 60 years. down and were dropping mortar and howitzer Mrs. CAPPS. Mr. Speaker, today I would Phillip Ambris Sustaita was a hardworking rounds among the patrol. With complete dis- like to pay tribute to an outstanding citizen, man and pioneer who raised his family with regard for his personal safety, Private First Mr. Joe Sesto, upon the celebration of his love especially his daughter Luisa who was Class Craigg repeatedly exposed himself to

VerDate 112000 05:35 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00005 Fmt 0626 Sfmt 9920 E:\CR\FM\A11AP8.016 pfrm04 PsN: E11PT1 E504 CONGRESSIONAL RECORD — Extensions of Remarks April 11, 2002 enemy fire providing clear and concise guid- TAXPAYER PROTECTION AND IRS The young people of this country have a lot to ance to his squad and effectively eliminated ACCOUNTABILITY ACT OF 2002 say, and I think that it’s important for members one gun position. He laid down covering fire, of Congress to listen to them. which enabled the patrol to disengage from SPEECH OF Following are the names of the students the main enemy force and withdraw to another HON. CAROLYN McCARTHY who participated in the Town Meeting and their schools or youth organizations: Jessica position.’’ OF NEW YORK Walters and Falinda Hough from the Lund Following Private First Class Craigg’s heroic IN THE HOUSE OF REPRESENTATIVES actions, his Commanding Officer informed him Family Center discussed problems relating to Tuesday, April 9, 2002 that he was going to officially recommend him Teenage Drinking; Dan Hill from YouthBuild for the Silver Star Medal. Unfortunately, Mr. Mrs. MCCARTHY of New York. Mr. Speak- Burlington discussed Affordable Housing Craigg’s Commanding Officer was killed in ac- er, I rise to express my concern with H.R. issues; Becca Van Hrn, Eli Brannon and Sam tion before this recommendation could be 3991, the Taxpayer Protection and IRS Ac- Parker from Proctor High School talked about made. Thankfully, Mr. Speaker, while Mr. countability Act, because of the ‘‘527’’ provi- ‘‘Free Trade not being Fair Trade’’; Lee Gold- Craigg’s Commanding Officer could no longer sion hidden inside of it. This provision is a fee- smith, Greg Howard and Robby Short from Mt. retell the story of his courageous actions that ble attempt by the GOP leadership to gut Anthony High School spoke about Student ID cards; Ruth Blake from Straight Talk Vermont Day in 1942, others never forgot what he did, campaign finance reform by attaching a con- talked about the Teen Expressions Dance and as a result, I am proud to say that on troversial provision to a popular and passable Company; Troy Ault, Reid Garrow, Stefanie March 30th, Mr. Craigg will be awarded the taxpayer protection bill. Gray, Danielle Harvey and Andrea Shahan Silver Star Medal for ‘‘extraordinary heroism in The ‘‘527’’ provision would have opened a from Straight Talk Vermont discussed the the face of extreme danger.’’ loophole in the recently passed campaign fi- nance bill by permitting thousands of dollars of Problem of Child Labor, Erica Hollner, Katie Amazingly enough Mr. Speaker, Mr. Kervorkian, Kerry McIntosh and Bethany Wal- Craigg’s story does not end here. Shortly after campaign contributions to escape public dis- closure. The problem lies in the bill’s provi- lace from Mt. Anthony High School talked this battle, Private First Class Craigg would be about being pen pals with students in Paki- captured by Japanese forces on the Bataan sions to exempt state and local 527s from Federal reporting as long as they are required stan; Matt Alden from the Craftsbury School Peninsula only to escape a short time later spoke about Underage Drinking; Candace and make his way via boat to the island of to report ‘‘substantially similar’’ information at the state level. My problem with that is who Crosby, Kim Dickenson, Katie Lanigan and Corregidor where he would engage the enemy Gladys Wong from Spaulding High School dis- in battle once again. would be the judge of what ‘‘substantially simi- lar’’ means? The bill makes it easier for fed- cussed the issue of Inadequate Financial Aid After 28 days of further fighting however, eral candidates and party officials to solicit for College; Steph Bernath, Nicolette Baron, the Marines and Sailors on Corregidor were funds and coordinate campaigns with 527s. Alan Blackman and Halie Paradee from ordered to surrender and they were taken The bottom line is that this provision would Lamoille High School talked about the rights of back to Bataan where Private First Class make it extremely difficult to track these Abenaki Indians in Vermont; Marcia Lo Craigg would survive the infamous Bataan groups and their activities. Monoco, Sarah Kunz, Delia Kipp and Colin death march. Mr. Craigg was eventually sent I want a real solution that would ease the Robinson from Brattleboro High School talked on a brutal trip to Japan where he would federal filing requirements while closing all about CLEA-Child Labor Education Action and spend more than two years working in coal loopholes. I cannot allow all of our progress their trip to Guatemala; Joseph Ferris from mines while enduring severe starvation and made from passing the campaign finance bill Rutland High School talked about the impor- beatings. As a result of the beatings he re- to be underscored by voting for a bill with a tance of Amtrak; Sean Fontaine, James Nich- ceived, Mr. Craigg will also be receiving his poison pill inserted into it. The amount of hard ols and Krystal Turnbaugh from YouthBuild third award of the Purple Heart on March 30th. work and support put into the campaign fi- Burlington discussed issues related to Juvenile Despite his traumatic experience as a pris- nance reform bill cannot be allowed to be un- Justice; Katie Blanchard, Cady Merrill, Jesse oner of war, Mr. Craigg returned to the ranks done by passing H.R. 3991. Butler and Stephanie Horvath from Rutland High School talked about the issue of Abortion and participated in the historic American inva- f sion at Inchon, Korea with the 7th Marine and parental involvement; Kelly Green from Regiment. In October of 1963, Mr. Craigg re- A TOWN MEETING FOR YOUNG Craftsbury School talked about the Cost of tired from the United States Marines Corps PEOPLE College and the Burden of Debt; Peter Hicks, with the rank of Gunnery Sergeant. Kristy Lamb, Brittany Hickman, Evan Worth After his retirement, Mr. Craigg’s passion for HON. BERNARD SANDERS and Nick Smith from Lamoille High School dis- the armed service did not wane. He became OF VERMONT cussed Education Reform; Travis Buck from very involved in his local chapter of the Dis- IN THE HOUSE OF REPRESENTATIVES Mt. Abraham High School talked about Geneti- cally Modified Foods; Elizabeth Echeverria abled American Veterans and from 1981–1983 Thursday, April 11, 2002 served as State Commander. and Damon Rooney from Craftsbury School Mr. SANDERS. Mr. Speaker, I want to take spoke about Labor Exploitation; Jessica Though born in Arkansas, Mr. Craigg made this opportunity to inform you about a very im- Predom and Autumn Rozon from the Boys & the wise decision of marrying a North Caro- portant and exciting Town Meeting for Young Girls Club of Vergennes discussed Teen linian, the late Anne Toler. The Craigg family People that I held at the University of Vermont Image issues; Daniel A. May from Rutland also includes 5 children: Beverly, Joan, David, on Monday, April 8, 2002. This meeting High School talked about Student Representa- Carroll Wayne and Thomas III. Mr. Craigg now brought young people together from all over tion on School Boards; Amy Canton, Shana resides in Jacksonville, which is also fittingly the state of Vermont to discuss some of the Griffin, Ashley St. John and Jamie Walbridge the home of Marine Corps Base Camp most pressing issues facing our country. Fif- from Spaulding High School discussed Grad- Lejeune. teen high schools and youth organizations and uated License issues; Megan Sullivan, Matt There are few words to aptly praise the about 100 students attended this all day event O’Brien, Rebecca Emmons, Alex McKenzie courage, sacrifice, and heart it takes to serve and provided some excellent and well-re- and Carson Gazely from Harwood High his country the way Mr. Craigg did during his searched testimony that I intend, at a later School talked about educational funding and twenty-two years in the United States Marine date, to enter into the CONGRESSIONAL Other Peoples Children-National Act 60; Corps. As an American, I am deeply grateful RECORD. I want to thank UVM President Ed- Heidi Neil and Martha Mack from Mt. Abra- for the sacrifices made all those years ago. As ward Colodny for welcoming the students to ham High School addressed the issue of Teen a man, I am awed by Mr. Craigg’s dedication UVM, and I want to thank the University for Smoking; Keith Blow, Jessica Davis, Jessica to his community, his country, and, of course, their hospitality. I also want to thank Professor Oakes, Shirlaine Miller and Ruhin Yuridulla his family. And as a United States Congress- Huck Gutman for spending the entire day with from Spaulding High School talked about their man, I am humbled by the privilege of being the students and me and doing an excellent concern regarding Income Taxes for Student allowed the opportunity to share the accom- job in flushing out their ideas. Workers; Chastity Norris and Kim Lunna from plishments of Gunnery Sergeant Thomas A. Let me at this time mention to you who was Mt. Abraham High School gave their views on Craigg, Jr. at the event and some of the topics that they the need for a National Civil Unions; Amy We salute you, Mr. Craigg. Your most re- addressed. Let me also suggest that other Downs and Anissa Coward from YouthBuild cent awards have been a long time in coming, Members might be interested in putting on Burlington talked about Affordable Childcare; but it is well deserved. God Bless you! similar events in their congressional districts. Lindy Stetson from Mt. Abraham High School

VerDate 112000 05:35 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00006 Fmt 0626 Sfmt 9920 E:\CR\FM\A11AP8.020 pfrm04 PsN: E11PT1 April 11, 2002 CONGRESSIONAL RECORD — Extensions of Remarks E505 talked about Drug Testing for Students; Thom- Let me conclude by thanking all of the young with protesters on Vieques Island, while others as Lamson, Vanessa Hinton and Monica people and their teachers for their participa- came to Virginia to provide special protection Brooks from Spaulding High School spoke tion. for those being prosecuted in America’s war about the Attack on Individual Rights; Jack f on terrorism. During the September 11th cri- Fleisher and Elden Kelly from Mt. Mansfield sis, the Special Operations Group helped se- U.S. MARSHALS SERVICE High School talked about Alternative Energy cure airports around the country, preserve evi- Vehicles; Jonathan Edmondson from Rice Me- dence at the Pentagon and World Trade Cen- morial High School spoke about Arafat: Lead- HON. CHRIS CANNON ter crash sites, and protect federal judges and er of Freedom Fighters or Terrorist Leader; OF UTAH courthouses from other threats. Tim Fitzgerald from Rice Memorial High IN THE HOUSE OF REPRESENTATIVES While much of this is all in a day’s work, I School spoke about US Aid to Third World Thursday, April 11, 2002 Countries; Elizabeth Christolini from Rice Me- am amazed that this group of men and morial High School talked about Bettering Mr. CANNON. Mr. Speaker, today I rise to women actually volunteer to take on the extra Education; Rebecca Lee Marquis from Rice speak about a little-known but tremendously challenges and greater dangers of being a Memorial High School talked about a Multi- important part of the Department of Justice: SOG member. Those in the Special Oper- national Impact; Timothy Plante from Rice Me- the United States Marshals Service. The Mar- ations Group receive no extra pay. Yet, the morial High School addressed the issue of shals play a critical role in areas we take for training and the missions are incredibly de- Israel and Palestine: Change of Leadership granted, such as court security and prisoner manding. And the demands are not just on the For Progress; Hailey Davis from Rice Memo- transportation. And for that, the Marshals members themselves, but on their families— rial High School discussed Is NATO Nec- should be applauded. being a member of SOG requires extensive essary?; and Pierson Booher also of Rice Me- However, I recently learned of the efforts of travel away from wives, husbands, and chil- morial High School discussed the issue of The an elite part of the Marshals Service—the dren. Special Operations Group (SOG). Lead by Arab-Israel Conflict and America’s Position. Nevertheless, Commander Flood and his I am extremely proud of all of the students Commander Scott Flood and Executive Officer team work quietly outside of the spotlight to who attended this Town Meeting. I was deeply Walter ‘‘Keith’’ Ernie, the Special Operations make sure that the tough jobs get done. impressed by their testimony and applaud Group is based in Camp Beauregard, Lou- their initiative in seeking to make their commu- isiana. This all-volunteer team of more than 90 Much of what SOG does cannot be dis- nities a better place in which to live. Too often, professionals is to be commended for their cussed on the floor of the House of Rep- in my view, the media focuses on the prob- willingness to take on any assignment, no resentatives. Nevertheless, I believe that the lems facing young people. As a nation we do matter how dangerous, in pursuit of Justice men and women of the United States Mar- not pay enough attention to the hard and con- and the safety and stability of our country. shals Service’s Special Operations Group are structive work being done by millions of stu- Just last weekend, members of the Special true heroes. And I, for one, am grateful for dents and their teachers all across our nation. Operations Group flew to Puerto Rico to deal their service to our Nation.

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HIGHLIGHTS Senate passed H.R. 3295, Election Reform. The House passed H.R. 3762, Pension Security Act. Senate Rejected: Chamber Action By 48 yeas to 52 nays (Vote No. 64), Clinton Routine Proceedings, pages S2507–S2603 Amendment No. 3108, to establish a residual ballot Measures Introduced: Thirty-one bills and three performance benchmark. Pages S2516, S2543 resolutions were introduced, as follows: S. During consideration of this measure today, Senate also took the following action: 2089–2119, and S. Res. 236–238. Pages S2577–78 McConnell (for Hatch) Amendment No. 3107, to Measures Reported: establish the Advisory Committee on Electronic Vot- Report to accompany S. Con. Res. 100, setting ing and the Electoral Process, and to instruct the At- forth the congressional budget for the United States torney General to study the adequacy of existing Government for fiscal year 2003 and setting forth electoral fraud statutes and penalties, adopted by the the appropriate budgetary levels for each of the fiscal Senate on Wednesday, April 10, 2002, was modified years 2004 through 2012. (S. Rept. No. 107–141) to reflect a technical correction. Page S2516 S. 924, to provide reliable officers, technology, Subsequently, passage of S. 565 was vitiated, and education, community prosecutors, and training in the bill was then returned to the Senate Calendar. our neighborhoods, with an amendment in the na- Page S2599 ture of a substitute. Page S2577 Election Reform: By unanimous consent, Com- Measures Passed: mittee on Rules and Administration was discharged from further consideration of H.R. 3295, to require Election Reform: By 99 yeas to 1 nay (Vote No. States and localities to meet uniform and non- 65), Senate passed S. 565, to require States and lo- discriminatory election technology and administra- calities to meet uniform and nondiscriminatory elec- tion requirements applicable to Federal elections, to tion technology and administration requirements ap- establish grant programs to provide assistance to plicable to Federal elections, to establish grant pro- States and localities to meet those requirements and grams to provide assistance to States and localities to to improve election technology and the administra- meet those requirements and to improve election tion of Federal elections, and to establish the Elec- technology and the administration of Federal elec- tion Administration Commission, and the bill was tions, and to establish the Election Administration then passed, after striking all after the enacting Commission, after taking action on the following clause and inserting in lieu thereof, the text of S. amendments proposed thereto: Pages S2516–56 565, Senate companion measure, as amended, and Adopted: after agreeing to the following amendment proposed By 56 yeas to 43 nays (Vote No. 63), Roberts/ thereto: Pages S2543, S2544 McConnell Amendment No. 2907, to eliminate the Dodd/McConnell Amendment No. 3118, to administrative procedures of requiring election offi- amend the title of the bill. Page S2543 cials to notify voters by mail whether or not their Senate insisted on its amendment, requested a individual vote was counted. Pages S2516, S2542–43 conference with the House thereon, and the Chair Dodd/McConnell Amendment No. 3117, to was authorized to appoint conferees on the part of the Senate. Page S2543 amend the title of the bill. Page S2543 Commending University of Minnesota-Duluth Bulldogs: Senate agreed to S. Res. 236, commending D315

VerDate 11-MAY-2000 06:04 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00001 Fmt 0627 Sfmt 0627 E:\CR\FM\D11AP2.REC pfrm11 PsN: D11AP2 D316 CONGRESSIONAL RECORD — DAILY DIGEST April 11, 2002 the University of Minnesota-Duluth Bulldogs for quirement. (By 61 yeas to 36 nays (Vote No. 67), winning the 2002 National Collegiate Athletic Asso- Senate tabled the amendment.) ciation Division I Women’s Ice Hockey National Pages S2508–11, S2558–63, S2565–66 Championship. Page S2600 Pending: Commending University of Minnesota Golden Daschle/Bingaman Further Modified Amendment Gophers: Senate agreed to S. Res. 237, commending No. 2917, in the nature of a substitute. the University of Minnesota Golden Gophers for Pages S2508–16 winning the 2002 National Collegiate Athletic Asso- Kerry/McCain Amendment No. 2999 (to Amend- ciation Division I Men’s Hockey National Cham- ment No. 2917), to provide for increased average pionship. Page S2600 fuel economy standards for passenger automobiles and light trucks. Page S2508 Commending University of Minnesota Golden Dayton/Grassley Amendment No. 3008 (to Gophers: Senate agreed to S. Res. 238, commending Amendment No. 2917), to require that Federal the University of Minnesota Golden Gophers for agencies use ethanol-blended gasoline and biodiesel- winning the 2002 NCAA Division I Wrestling Na- blended diesel fuel in areas in which ethanol-blended tional Championship. Pages S2600–01 gasoline and biodiesel-blended diesel fuel are avail- Energy Policy Act: Senate continued consideration able. Page S2508 of S. 517, to authorize funding for the Department Lott Amendment No. 3028 (to Amendment No. of Energy to enhance its mission areas through tech- 2917), to provide for the fair treatment of Presi- nology transfer and partnerships for fiscal years 2002 dential judicial nominees. Page S2508 through 2006, taking action on the following Landrieu/Kyl Amendment No. 3050 (to Amend- amendments proposed thereto: ment No. 2917), to increase the transfer capability Pages S2507–16, S2556–71 of electric energy transmission systems through par- Adopted: ticipant-funded investment. Page S2508 By 69 yeas to 30 nays (Vote No. 66), Durbin Graham Amendment No. 3070 (to Amendment Modified Amendment No. 3094 (to Amendment No. 2917), to clarify the provisions relating to the No. 2917), to establish a Consumer Energy Commis- Renewable Portfolio Standard. Page S2508 sion to assess and provide recommendations regard- Schumer/Clinton Amendment No. 3093 (to ing energy price spikes from the perspective of con- Amendment No. 2917), to prohibit oil and gas sumers. Pages S2563–65 drilling activity in Finger Lakes National Forest, Bingaman (for Rockefeller) Amendment No. 3119 New York. Page S2508 (to Amendment No. 2917), to ensure the safety of Dayton Amendment No. 3097 (to Amendment the nation’s mines and mine workers. Pages S2567–69 No. 2917), to require additional findings for FERC Bingaman (for Levin) Amendment No. 3120 (to approval of an electric utility merger. Page S2508 Amendment No. 2917), to require the Secretary of Schumer Amendment No. 3030 (to Amendment Energy to conduct a study on the effect of natural No. 2917), to strike the section establishing a re- gas pipelines and other energy transmission infra- newable fuel content requirement for motor vehicle structure across the Great Lakes on the Great Lakes fuel. Pages S2511–15 ecosystem. Pages S2567–69 Feinstein/Boxer Amendment No. 3115 (to Bingaman (for Schumer) Amendment No. 3121 Amendment No. 2917), to modify the provision re- (to Amendment No. 2917), to promote the dem- lating to the renewable content of motor vehicle fuel onstration of certain high temperature super- to eliminate the required volume of renewable fuel conducting technologies. Pages S2567–69 for calendar year 2004. Pages S2515–16 Bingaman (for Smith of OR) Amendment No. U.S. Border Security/Energy Policy Act Agree- 3122 (to Amendment No. 2917), to authorize a ment: A unanimous-consent agreement was reached study of the way in which energy efficiency stand- providing that the Committee on the Judiciary be ards are determined. Pages S2567–69 discharged from further consideration of H.R. 3525, Bingaman (for Durbin) Amendment No. 3123 (to to enhance the border security of the United States, Amendment No. 2917), to encourage energy con- and the Senate begin consideration of the bill at servation through bicycling. Pages S2567–69 11:30 a.m., on Friday, April 12, 2002. Further, that Rejected: upon the resumption of the S. 517, Energy Policy Feinstein Amendment No. 3114 (to Amendment Act, Senator Murkowski be recognized to offer an No. 2917), to reduce the period of time in which amendment with respect to ANWR. Page S2564 the Administrator may act on a petition by 1 or Nominations Confirmed: Senate confirmed the fol- more States to waive the renewable fuel content re- lowing nominations:

VerDate 11-MAY-2000 06:04 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00002 Fmt 0627 Sfmt 0627 E:\CR\FM\D11AP2.REC pfrm11 PsN: D11AP2 April 11, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D317 Robert Watson Cobb, of Maryland, to be Inspec- and New Jersey, Thomas Von Essen, on behalf of the tor General, National Aeronautics and Space Admin- International Association of Fire Chiefs, and Stephen istration. Pages S2599, S2603 E. Flynn, Council on Foreign Relations, all of New Nominations Received: Senate received the fol- York, New York; Michael J. Crouse, International lowing nominations: Association of Fire Fighters, Washington, D.C.; Tony Hammond, of Virginia, to be a Commis- Philip C. Stittleburg, LaFarge Volunteer Fire De- sioner of the Postal Rate Commission for the re- partment, LaFarge, Wisconsin, on behalf of the Na- mainder of the term expiring October 14, 2004. tional Volunteer Fire Council; Lonnie J. Westphal, Steven M. Biskupic, of Wisconsin, to be United Colorado State Patrol, Denver, on behalf of the States Attorney for the Eastern District of Wisconsin International Association of Chiefs of Police; Gary for the term of four years. Cox, Tulsa City-County Health Department, Tulsa, Jan Paul Miller, of Illinois, to be United States Oklahoma, on behalf of the National Association of Attorney for the Central District of Illinois for the County and City Health Officials; Michael Errico, term of four years. Washington Suburban Sanitary Commission, Laurel, 1 Army nomination in the rank of general. Maryland, on behalf of the Association of Metropoli- 1 Marine Corps nomination in the rank of general. tan Water Agencies; David Lochbaum, Union of A routine list in the Marine Corps. Page S2603 Concerned Scientists, Cambridge, Massachusetts; and Messages From the House: Page S2575 Jeff Benjamin, Exelon Generation Company, Chi- cago, Illinois, on behalf of the Nuclear Energy Insti- Measures Referred: Page S2575 tute. Executive Communications: Pages S2575–77 Executive Reports of Committees: Page S2577 DEFENSE AUTHORIZATION Additional Cosponsors: Pages S2578–79 Committee on Armed Services: Subcommittee on Per- Statements on Introduced Bills/Resolutions: sonnel concluded hearings on proposed legislation Pages S2579–95 authorizing funds for fiscal year 2003 for the De- partment of Defense, focusing on military personnel Additional Statements: Pages S2574–75 benefits, after receiving testimony from Charles S. Amendments Submitted: Pages S2595–98 Abell, Assistant Secretary of Defense for Force Man- Authority for Committees to Meet: Pages S2598–99 agement Policy; Derek B. Stewart, Director, Defense Capabilities and Management, General Accounting Record Votes: Five record votes were taken today. Office; Master Chief Joseph L. Barnes, USN (Ret.), (Total—67) Pages S2543, S2544, S2565, S2566 Fleet Reserve Association, Joyce W. Raezer, National Adjournment: Senate met at 10:01 a.m., and ad- Military Family Association, Inc., and Master Sgt. journed at 6:32 p.m., until 10:30 a.m., on Friday, Michael P. Cline, USA (Ret.), Enlisted Association April 12, 2002. (For Senate’s program, see the re- of the National Guard of the United States, all of marks of the Acting Majority Leader in today’s Alexandria, Virginia; and Susan M. Schwartz, Re- Record on page S2601). tired Officers Association, and CMSGT James E. Lokovic, USAF (Ret.), Air Force Sergeants Associa- Committee Meetings tion, both of Washington, D.C. (Committees not listed did not meet) DEFENSE AUTHORIZATION HOMELAND SECURITY Committee on Armed Services: Subcommittee on Stra- Committee on Appropriations: Committee concluded tegic concluded open and closed hearings on pro- hearings to examine homeland security funding posed legislation authorizing funds for fiscal year issues, focusing on federal funding support of state 2003 for the Department of Defense, focusing on the and local government security efforts, including first intelligence, surveillance, and reconnaissance pro- responders and bioterrorism, infrastructure security, grams of the Department of Defense, after receiving port security, water infrastructure, and nuclear facil- testimony from John P. Stenbit, Assistant Secretary ity security, receiving testimony from former Senator of Defense for Command, Control, Communications Rudman, on behalf of the U.S. Commission on Na- and Intelligence; and Lt. Gen. Gregory S. Newbold, tional Security/21st Century; Maj. Gen. Richard C. USMC, Director of Operations, J3, and Rear Adm. Alexander, ANGUS (Ret.), National Guard Associa- Stanley R. Szemborski, USN, Deputy Director for tion of the United States; Adm. Richard M. Resources and Requirements, J8, both of the Joint Larrabee, USCG (Ret.), Port Authority of New York Staff.

VerDate 11-MAY-2000 06:04 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00003 Fmt 0627 Sfmt 0627 E:\CR\FM\D11AP2.REC pfrm11 PsN: D11AP2 D318 CONGRESSIONAL RECORD — DAILY DIGEST April 11, 2002 HOUSING VOUCHER PROGRAM a Department of National Homeland Security and a Committee on Banking, Housing, and Urban Affairs: White House Office to Combat Terrorism, receiving Committee concluded oversight hearings to examine testimony from Senators Graham, Gregg, and Spec- proposals to improve the Section 8 Housing Choice ter; Representatives Harman, Tauscher, and Thorn- Voucher Program, after receiving testimony from berry; former Senator Rudman, on behalf of the U.S. Ophelia B. Basgal, Housing Authority of County of Commission on National Security /21st Century; Alameda and City of Dublin, Hayward, California, David M. Walker, Comptroller General of the on behalf of the National Association of Housing United States, General Accounting Office; Mitchell and Redevelopment Officials; Scott Gardner, E. Daniels, Jr., Director, Office of Management and Crosshaven Properties, Inc., Tulsa, Oklahoma, on be- Budget; Philip Anderson, Center for Strategic and half of the National Apartment Association; Ann International Studies, and Paul C. Light, Brookings O’Hara, Technical Assistance Collaborative, Boston, Institution, both of Washington, D.C.; I.M. Destler, Massachusetts, on behalf of the National Low Income University of Maryland School of Public Affairs, Col- Housing Coalition; and Benson F. Roberts, Local lege Park; Stephen Gross, Border Trade Alliance, San Initiatives Support Corporation, Washington, D.C. Diego, California; and Elaine Kamarck, Harvard University John F. Kennedy School of Government, ENRON CORPORATION Cambridge, Massachusetts. Committee on Commerce, Science, and Transportation: Sub- Hearings recessed subject to call. committee on Consumer Affairs, Foreign Commerce, NOMINATION and Tourism concluded hearings to examine Enron’s Committee on Governmental Affairs: Committee con- potential role in electricity market manipulation and cluded hearings on the nomination of Paul A. the subsequent effect on the western states, after re- Quander, Jr., to be Director of the District of Co- ceiving testimony from California State Senator Jo- lumbia Offender Supervision, Defender, and Courts seph Dunn, and S. David Freeman, California Power Services Agency, after the nominee, who was intro- Authority, both of Sacramento; Loretta Lynch and duced by District of Columbia Delegate Eleanor Gary Cohen, both of California Public Utilities Holmes Norton, testified and answered questions in Commission, San Francisco; Wenonah Hauter, Pub- his own behalf. lic Citizen, Washington, D.C.; and Robert McCullough, McCullough Research, Portland, Or- GLOBAL AIDS egon. Committee on Health, Education, Labor, and Pensions: TAX AVOIDANCE SCHEMES Committee concluded hearings to examine issues re- lated to health care for patients with the AIDS virus Committee on Finance: Committee held hearings to ex- and what can be done to address the global HIV/ amine various improper and illegal tax avoidance AIDS pandemic, after receiving testimony from San- schemes, including the use of credit/debit cards to dra Thurman, International AIDS Trust, Wash- access offshore bank accounts established to conceal ington, D.C.; Elton John, Elton John AIDS Founda- taxable income, receiving testimony from Ronald A. tion, Beverly Hills, California; Peter Mugyenyi, Joint Cimino, Chief, Western Region Criminal Enforce- Clinical Research Centre, Kampala, Uganda; Allan ment Section, Tax Division, Donald Daniels, Assist- Rosenfield, Columbia University Mailman School of ant United States Attorney for the Western District Public Health, New York, New York; and Debbie of Michigan, both of the Department of Justice; Dortzbach, World Relief International, Baltimore, Charles O. Rossotti, Commissioner, Internal Revenue Maryland. Service, and David C. Williams, Inspector General, Treasury Inspector General for Tax Administration, BUSINESS MEETING both of the Department of the Treasury; Michael Committee on the Judiciary: Committee ordered favor- Brostek, Director, Tax Issues, General Accounting ably reported the following business items: Office; Jack A. Blum, Lobel, Novins and Lamont, S. 924, to provide reliable officers, technology, Washington, D.C.; Daniel W. Bullock, Atwater, education, community prosecutors, and training in California; Jennifer P. Sodaro, Scottsdale, Arizona; our neighborhoods, with an amendment in the na- Kelly Stone, Belgrade, Montana; and Robert L. and ture of a substitute; and Mary Elaine Spears, both of Traverse City, Michigan. The nominations of Terrence L. O’Brian, of Wyo- Hearings recessed subject to call. ming, to be United States Circuit Judge for the Tenth Circuit, Lance M. Africk, to be United States NATIONAL HOMELAND SECURITY District Judge for the Eastern District of Louisiana, Committee on Governmental Affairs: Committee held Legrome D. Davis, to be United States District hearings to examine proposed legislation to establish Judge for the Eastern District of Pennsylvania; Scott

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M. Burns, of Utah, to be Deputy Director for State trict Judge for the District of Minnesota, Cynthia M. and Local Affairs, Office of National Drug Control Rufe, to be United States District Judge for the Policy; and J. Robert Flores, of Virginia, to be Ad- Eastern District of Pennsylvania, and John F. Wal- ministrator of the Office of Juvenile Justice and De- ter, to be United States District Judge for the Cen- linquency Prevention, John B. Brown III, of Texas, tral District of California, after the nominees testi- to be Deputy Administrator of Drug Enforcement, fied and answered questions in their own behalf. Mr. Jane J. Boyle, to be United States Attorney for the Howard was introduced by Senators Smith and Northern District of Texas, James B. Comey, to be Gregg, Mr. Anderson and Mr. Walter were intro- United States Attorney for the Southern District of duced by Senator Feinstein, Mr. Baylson and Ms. New York, Thomas A. Marino, to be United States Rufe were introduced by Senator Specter, Mr. Attorney for the Middle District of Pennsylvania, Griesbach was introduced by Senator Feingold and Matthew D. Orwig, to be United States Attorney for Representatives Barrett and Green, and Ms. Lan- the Eastern District of Texas, Michael Taylor Shelby, caster was introduced by Senators Dayton and to be United States Attorney for the Southern Dis- Wellstone. trict of Texas, Warren Douglas Anderson, to be United States Marshal for the District of South Da- DRUG LAW ENFORCEMENT kota, Patrick E. McDonald, to be United States Mar- shal for the District of Idaho, and James Joseph United States Senate Caucus on International Narcotics Parmley, to be United States Marshal for the North- Control: Committee concluded to examine the en- ern District of New York, all of the Department of forcement of the nation’s drug enforcement laws, fo- Justice. cusing on the scope of the drug use and trafficking problems in rural and mid-size communities and the NOMINATIONS challenges facing local law enforcement, after receiv- Committee on the Judiciary: Committee concluded ing testimony from Asa Hutchinson, Administrator, hearings on the nominations of Jeffrey R. Howard, Drug Enforcement Administration, Department of of New Hampshire, to be United States Circuit Justice; Maj. Gen. Raymond F. Rees, USA, Vice Judge for the First Circuit, Percy Anderson, to be Chief, National Guard Bureau; Susan Foster, Colum- United States District Judge for the Central District bia University National Center on Addiction and of California, Michael M. Baylson, to be United Substance Abuse, New York, New York; Ralph A. States District Judge for the Eastern District of Weisheit, Illinois State University, Normal; William Pennsylvania, William C. Griesbach, to be United E. Bryson, Camden Police Department, Camden, States District Judge for the Eastern District of Wis- Delaware; and Gary Anderson, Appanoose County consin, Joan E. Lancaster, to be United States Dis- Sheriff Office, Centerville, Iowa. h House of Representatives H. Con. Res. 347, authorizing the use of the Cap- Chamber Action itol Grounds for the National Peace Officers’ Memo- Measures Introduced: 49 public bills, H.R. rial Service (H. Rept. 107–399); 4167–4215; and 4 resolutions, H.J. Res. 86–87 and H. Con. Res. 348, authorizing the use of the Cap- H. Con. Res. 374–375, were introduced. itol Grounds for the National Book Festival (H. Pages H1281–83 Rept. 107–400); Reports Filed: Reports were filed today as follows: H. Con. Res. 354, authorizing the use of the Cap- H.R. 476, to amend title 18, United States Code, itol Grounds for the District of Columbia Special to prohibit taking minors across State lines in cir- Olympics Law Enforcement Torch Run (H. Rept. cumvention of laws requiring the involvement of 107–401); parents in abortion decisions (H. Rept. 107–397); H. Con. Res. 356, authorizing the use of the Cap- H.R. 2628, to direct the Secretary of the Interior itol Grounds for the Greater Washington Soap Box to conduct a study of the suitability and feasibility Derby (H. Rept. 107–402); of establishing the Muscle Shoals National Heritage H.R. 3839, to reauthorize the Child Abuse Pre- Area in Alabama (H. Rept. 107–398); vention and Treatment Act, amended (H. Rept. 107–403);

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H.R. 3801, to provide for improvement of Federal viding judicial remedies to employees for plan education research, statistics, evaluation, information, abuses, and whistleblower protection, by a recorded and dissemination, amended (H. Rept. 107–404); vote of 187 ayes to 232 noes, Roll No. 90. and Pages H1248–64 H.R. 3983, to ensure the security of maritime H. Res. 386, the rule that provided for consider- transportation in the United States against acts of ation of the bill was agreed to by a recorded vote terrorism, amended (H. Rept. 107–405). Page H1281 of 215 ayes to 209 noes, Roll No. 88. Agreed to Journal Vote: Agreed to the Speaker’s approval of order the previous question by a yea-and-nay vote of the Journal of Wednesday, April 10 by a recorded 218 yeas to 208 nays, Roll No. 87. Pages H1205–16 vote of 360 ayes to 56 noes with 1 voting ‘‘present,’’ Legislative Program: Representative Portman an- Roll No. 89. Pages H1203, H1216–17 nounced the legislative program for the week of Pension Security Act: The House passed H.R. April 15. Page 1267 3762, to amend title I of the Employee Retirement Income Security Act of 1974 and the Internal Rev- Meeting Hour—Monday, April 15: Agreed that enue Code of 1986 to provide additional protections when the House adjourns today, it adjourn to meet to participants and beneficiaries in individual ac- at 2 p.m. on Monday, April 15. Page H1267 count plans from excessive investment in employer Meeting Hour—Tuesday, April 16: Agreed that securities and to promote the provision of retirement when the House adjourns on Monday, April 15, it investment advice to workers managing their retire- adjourn to meet at 12:30 p.m. on Tuesday, April 16 ment income assets, and to amend the Securities Ex- for morning hour debate. Page H1267 change Act of 1934 to prohibit insider trades during any suspension of the ability of plan participants or Calendar Wednesday: Agreed to dispense with the beneficiaries to direct investment away from equity Calendar Wednesday business of Wednesday, April securities of the plan sponsor by a recorded vote of 17. Page H1267 255 ayes to 163 noes, Roll No. 92. Pages H1217–67 Official Photographs of the House of Represent- Rejected the George Miller of California motion atives: The House agreed to H. Res. 378, permit- that sought to recommit the bill to the Committee ting official photographs of the House of Representa- on Education and the Workforce with instructions to tive to be taken while the House is in actual session. report it back promptly with an amendment that Page H1267 treats certain funded deferred compensation plans for corporate executives as pension plans covered under Congratulating the University of Maryland Ter- the Employee Retirement Income Security Act rapins for Their NCAA National Championship: (ERISA) of 1974 by a recorded vote of 204 ayes to The House agreed to H. Res. 383, Congratulating 212 noes, Roll No. 91. Pages H1264–66 the University of Maryland for winning the 2002 Pursuant to the rule, the amendment in the na- National Collegiate Athletic Association men’s bas- ture of a substitute printed in part A of H. Rept. ketball championship. Pages H1267–69 107–396, the report accompanying the rule, was House Permanent Select Committee on Intel- considered as adopted; Page H1221 ligence Membership: Read a letter from Represent- Rejected the George Miller of California amend- ative Hastings of Florida wherein he announced his ment in the nature of a substitute that sought to in- resignation from the House Permanent Select Com- clude provisions for executive accountability and no- mittee on Intelligence. Subsequently, the Chair an- tice when executives are selling company stock, nounced the Speaker’s appointment of Representative timely information for employees including regular Cramer to fill the vacancy on the Committee. benefit statements and independent investment ad- vice, employee participation on pension boards, pro- Page H1269 hibition of executives from selling stock if the rank Quorum Calls—Votes: Two yea-and-nay votes and and file employees are prohibited from doing so, four recorded votes developed during the proceedings elimination of special treatment for executive pen- of the House today and appear on pages H1215–16, sion plans, employee options to diversify company- H1216, H1216–17, H1264, H1265–66, and matched stock after three years of plan participation, H1266–67. There were no quorum calls. requiring plan fiduciaries to secure insurance to Adjournment: The House met at 10 a.m. and ad- cover benefits and increasing criminal penalties for journed at 6:05 p.m. fiduciaries who violate workers’ pension rights, pro-

VerDate 11-MAY-2000 06:04 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00006 Fmt 0627 Sfmt 0627 E:\CR\FM\D11AP2.REC pfrm11 PsN: D11AP2 April 11, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D321 CORPORATION FOR NATIONAL AND Committee Meetings COMMUNITY SERVICE COMMERCE, JUSTICE, STATE AND Committee on Education and the Workforce: Sub- JUDICIARY APPROPRIATIONS committee on Select Education held a hearing on the Committee on Appropriations: Subcommittee on Com- ‘‘Corporation for National and Community Service.’’ merce, Justice, State and Judiciary held a hearing on Testimony was heard from Leslie Lankowsky, CEO, State Department Management. Testimony was Corporation For National and Community Service; heard from the following officials of the Department and a public witness. of State: Richard L. Armitage, Deputy Secretary; and DRINKING WATER NEEDS AND Grant S. Green, Under Secretary, Management. INFRASTRUCTURE INTERIOR APPROPRIATIONS Committee on Energy and Commerce: Subcommittee on Committee on Appropriations: Subcommittee on Interior Environment and Hazardous Materials held a hearing held a hearing on U.S. Fish and Wildlife Service. entitled ‘‘Drinking Water Needs and Infrastructure.’’ Testimony was heard from Steven Williams, Direc- Testimony was heard from Ben Grumbles, Deputy tor, U.S. Fish and Wildlife Service, Department of Assistant Administrator, Office of Water, EPA; the Interior. Perry Beider, Principal Analyst, CBO; Dave Wood, Director, Natural Resources and Environmental LABOR, HHS AND EDUCATION Issues, GAO; and public witnesses. APPROPRIATIONS Committee on Appropriations: Subcommittee on Labor, NRC LICENSED FACILITIES—REVIEW Health and Human Services, Education held a hear- ENHANCED SECURITY REQUIREMENTS ing on Department of Education Panel: No Child Committee on Energy and Commerce: Subcommittee on Left Behind Implementation Issues. Testimony was Oversight and Investigations met in executive ses- heard from the following officials of the Department sion to hold a hearing entitled ‘‘A Review of En- of Education: Eugene Hickok, Under Secretary, Edu- hanced Security Requirements at NRC Licensed Fa- cation; and Susan B. Neuman, Assistant Secretary, cilities.’’ Testimony was heard from the following of- Elementary and Secondary Education. ficials of the NRC: Richard A. Meserve, Chairman; Nils J. Diaz, Edward McGaffigan, Jr., and Jeffrey S. TRANSPORTATION APPROPRIATIONS Merrifield, all Commissioners; and David N. Orrik, Committee on Appropriations: Subcommittee on Trans- Reactor Security Specialist, Office of Nuclear Secu- portation held a hearing on National Transportation rity and Incident Response; and public witnesses. Safety Board. Testimony was heard from Marion C. Blakey, Chairman, National Transportation Safety MISCELLANEOUS MEASURES Board. Committee on Financial Services: Ordered reported, as amended, H.R. 2941, Brownfields Redevelopment VA, HUD AND INDEPENDENT AGENCIES Enhancement Act; and H.R. 3764, Securities and APPROPRIATIONS Exchange Commission Authorization Act of 2002. Committee on Appropriations: Subcommittee on VA, The Committee also began markup of H.R. 3763, HUD and Independent Agencies held a hearing on Corporate and Auditing Accountability, Responsi- NSF. Testimony was heard from the following offi- bility, and Transparency Act of 2002. cials of the NSF: Eamon M. Kelly, Chairman; and Will continue April 16. Rita R. Colwell, Director, NSF. PRESIDENTIAL RECORDS ACCESS—VIEWS NATIONAL DEFENSE AUTHORIZATION OF HISTORIANS BUDGET REQUEST Committee on Government Reform: Held a hearing on Committee on Armed Services: Subcommittee on Mili- ‘‘The Importance of Access to Presidential Records: tary Procurement and the Subcommittee on Research The Views of Historians.’’ Testimony was heard from and Development held a joint hearing on fiscal year the following historians: Robert Dallek; Richard 2003 National Defense Authorization budget re- Reeves; Stanley Kutler; and Joan Hoff. quest. Testimony was heard from the following offi- cials of the Department of Defense: Lt. Gen. John PAPERWORK INFLATION M. Riggs, USA, Director, Objective Force-Task Committee on Government Reform: Subcommittee on Force; and Lt. Gen. Edward Hanlon, USMC, Com- Energy Policy, Natural Resources, and Regulatory manding General, Marine Corps Combat Develop- Affairs held a hearing on ‘‘Paperwork Inflation-The ment Command. Growing Burden on America.’’ Testimony was heard

VerDate 11-MAY-2000 06:04 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00007 Fmt 0627 Sfmt 0627 E:\CR\FM\D11AP2.REC pfrm11 PsN: D11AP2 D322 CONGRESSIONAL RECORD — DAILY DIGEST April 11, 2002 from John D. Graham, Administrator, Office of In- MISCELLANEOUS MEASURES formation and Regulatory Affairs, OMB; Charles O. Committee on Resources: Subcommittee on Fisheries Rossotti, Commissioner, IRS, Department of the Conservation, Wildlife and Oceans held a hearing on Treasury; Vic Rezendes, Managing Director; Stra- the following bills: H.R. 3470, to clarify the bound- tegic Issues, GAO; Thomas Hunt Shipman, Deputy aries of Coastal Barrier Resources System Cape Fear Under Secretary, Farm and Foreign Agricultural Unit NC0907P; H.R. 3908, North American Wet- Services, USDA; Scott Cameron, Deputy Assistant lands Conservation Reauthorization Act; and H.R. Secretary, Performance and Management, Depart- 4044, to authorize the Secretary of the Interior to ment of the Interior; and public witnesses. provide assistance to the State of Maryland for im- plementation of a program to eradicate nutria and FEDERAL SUPPLY SERVICE—FEDERAL restore marshland damaged by nutria. Testimony TECHNOLOGY SERVICE HOW PURCHASING was heard from Representative McIntyre; Cathleen AGENCIES CHOOSE Short, Assistant Director, Fisheries and Habitat Con- Committee on Government Reform: Subcommittee on servation, U.S. Fish and Wildlife Service, Depart- Technology and Procurement held a hearing on ment of the Interior; Kevin Sullivan, APHIS State ‘‘Making Sense of Procurement’s Alphabet Soup: Director, Wildlife Services, USDA; Edith Thompson, How Purchasing Agencies Choose Between FSS and Invasive Species Coordinator, Department of Natural FTS.’’ Testimony was heard from David E. Cooper, Resources, State of Maryland; and public witnesses. Director, Acquisition and Sourcing Management, MISCELLANEOUS MEASURES GAO; Stephen Perry, Administrator, GSA; Claudia Committee on Resources: Subcommittee on National S. Knott, Executive Director, Logistics Policy and Parks, Recreation and Public Lands held a hearing Acquisition Management, Defense Logistics Agency, on the following bills: H.R. 3718, Little San Department of Defense; and public witnesses. Bernardino Mountains Right-of-Way Act; H.R. 3258, Reasonable Right-of-Way Fees Act of 2001; U.S. POLICY TOWARD COLOMBIA and H.R. 3307, Vicksburg National Military Park Committee on International Relations: Subcommittee on Boundary Modification Act. Testimony was heard the Western Hemisphere held a hearing on U.S. Pol- from Representatives Cubin, Thompson of Mis- icy Toward Colombia. Testimony was heard from sissippi and Bono; the following officials of the De- Otto J. Reich, Assistant Secretary, Bureau of West- partment of the Interior: Pete Culp, Assistant Direc- ern Hemisphere Affairs, Department of State; the tor, Minerals, Realty and Resource Protection, Bu- following officials of the Department of Defense: reau of Land Management; and Durand Jones, Dep- Peter W. Rodman, Assistant Secretary, International uty Director, National Park Service; and public wit- Security Affairs; and Maj. Gen. Gary D. Speer, USA, nesses. Acting Commander-in-Chief, U.S. Southern Com- OVERSIGHT—ADEQUACY FAA OVERSIGHT mand; and public witnesses. OF PASSENGER AIRCRAFT MAINTENANCE Committee on Transportation and Infrastructure, Sub- OVERSIGHT—CIVIL RIGHTS COMMISSION committee on Aviation held an oversight hearing on Ade- quacy of FAA Oversight of Passenger Aircraft Mainte- Committee on the Judiciary: Subcommittee on the Con- nance. Testimony was heard from the following officials stitution held an oversight hearing on the U.S. Com- of the Department of Transportation: Nicholas A. mission on Civil Rights. Testimony was heard from Sabatini, Associate Administrator, Regulation and Certifi- the following officials of the U.S. Commission on cation, FAA; and Alexis M. Stefani, Assistant Inspector Civil Rights: Abigail Thernstrom, Commissioner; General, Auditing; and public witnesses. and Les Jim, Staff Director; and public witnesses. OVERSIGHT—FEMA’S OFFICE OF NATIONAL PREPAREDNESS OVERSIGHT—U.S. PATENT AND Committee on Transportation and Infrastructure: Sub- TRADEMARK OFFICE committee on Economic Development, Public Build- Committee on the Judiciary: Subcommittee on Courts, ings and Emergency Management held an oversight the Internet, and Intellectual Property held an over- hearing on FEMA’s Office of National Preparedness. sight hearing on the U.S. Patent and Trademark Of- Testimony was heard from Bruce Baughman, Direc- fice: Operations and Fiscal Year 2003 Budget. Testi- tor, Office of National Preparedness, FEMA: Debo- mony was heard from James Rogan, Under Secretary, rah Daniels, Assistant Attorney General, Office of Intellectual Property and Director, U.S. Patent and Justice Programs, Department of Justice; and Ran- Trademark Office, Department of Commerce; and dall Yim, Managing Director, National Prepared- public witnesses. ness, GAO.

VerDate 11-MAY-2000 06:04 Apr 12, 2002 Jkt 099060 PO 00000 Frm 00008 Fmt 0627 Sfmt 0627 E:\CR\FM\D11AP2.REC pfrm11 PsN: D11AP2 April 11, 2002 CONGRESSIONAL RECORD — DAILY DIGEST D323 OVERSIGHT—PASSENGER RAIL IN Thompson, Secretary of Health and Human Services; AMERICA and public witnesses. Committee on Transportation and Infrastructure: Sub- EXPLORE PERMANENT NORMAL committee on Railroads held an oversight hearing on RELATIONS FOR RUSSIA Passenger Rail in America: What Should It Look Committee on Ways and Means: Subcommittee on Like? Testimony was heard from Jayetta Hecker, Di- Trade held a hearing to explore Permanent Normal rector, Physical Infrastructure Issues, GAO; and pub- Relations for Russia. Testimony was heard from lic witnesses. Representatives Lantos and Cox; Peter F. Allgeier, Deputy U.S. Trade Representative; Alan P. Larson, VETERANS LEGISLATION Under Secretary, Economic, Business, and Agricul- Committee on Veterans’ Affairs: Subcommittee on Bene- tural Affairs, Department of State; and public wit- fits held a hearing on the following bills: H.R. nesses. 1108, to amend title 38, United States Code, to pro- vide that remarriage of the surviving spouse of a vet- Joint Meetings eran after age 55 shall not result in termination of dependence and indemnity compensation; H.R. FARM BILL 2095, Reservist VA Home Loan Fairness Act of Conferees met to resolve the differences between the 2001; H.R. 2222, Veterans Life Insurance Improve- Senate and House passed versions of H.R. 2646, to ment Act of 2001; and H.R. 3731, to amend title provide for the continuation of agricultural programs 38, United States Code, to increase amounts avail- through fiscal year 2011, but did not complete ac- able to State approving agencies to ascertain the tion thereon, and will meet again tomorrow. qualifications of educational institutions for fur- f nishing courses of education to veterans and eligible persons under the Montgomery GI Bill and under COMMITTEE MEETINGS FOR FRIDAY, other programs of education administered by the De- APRIL 12, 2002 partment of Veterans Affairs. Testimony was heard (Committee meetings are open unless otherwise indicated) from Representatives Bilirakis and Filner; Daniel Cooper, Under Secretary, Veterans Benefits Adminis- Senate tration, Department of Veterans Affairs; and rep- Committee on the Judiciary: Subcommittee on Immigra- resentatives of veterans organizations. tion, to hold hearings to examine the Enhanced Border Security and Visa Entry Reform Act, 9 a.m., SD–226. WELFARE REFORM REAUTHORIZATION House PROPOSALS No committee meetings are scheduled. Committee on Ways and Means: Subcommittee on Human Resources held a hearing on Welfare Reform Joint Meetings Reauthorization Proposals. Testimony was heard Conference: meeting of conferees on H.R. 2646, to pro- from Representatives Mink of Hawaii, Kaptur, vide for the continuation of agricultural programs Kucinich, Lee, Tierney and Reynolds; Tommy G. through fiscal year 2011, 11 a.m., HC–5 Capitol.

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Next Meeting of the SENATE Next Meeting of the HOUSE OF REPRESENTATIVES 10:30 a.m., Friday, April 12 2 p.m., Monday, April 15

Senate Chamber House Chamber Program for Friday: After the recognition of one Sen- Program for Monday: Pro forma session. ator for a speech and the transaction of any morning busi- ness (not to extend beyond 11:30 a.m.), Senate will con- sider H.R. 3525, U.S. Border Security.

Extensions of Remarks, as inserted in this issue

HOUSE Hilliard, Earl F., Ala., E500 Matheson, Jim, Utah, E499, E500, E500 Jones, Walter B., N.C., E503 Reyes, Silvestre, Tex., E503 Baca, Joe, Calif., E503 Lantos, Tom, Calif., E502 Ros-Lehtinen, Ileana, Fla., E501 Bilirakis, Michael, Fla., E499 McCarthy, Carolyn, N.Y., E502, E504 Sanders, Bernard, Vt., E504 Cannon, Chris, Utah, E505 McKinney, Cynthia A., Ga., E502 Schiff, Adam B., Calif., E499, E499, E501 Capps, Lois, Calif., E503 Maloney, Carolyn B., N.Y., E500 Shaw, E. Clay, Jr., Fla., E501

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