E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, FIRST SESSION

Vol. 145 WASHINGTON, MONDAY, AUGUST 2, 1999 No. 111 House of Representatives The House met at 12:30 p.m. and was (Mr. MATSUI), the gentleman from Or- lion in bonding authority for commu- called to order by the Speaker pro tem- egon (Mr. BLUMENAUER) and I, along nities across the country to buy up pore (Mr. STEARNS). with a number of our colleagues, have threatened farmland or to purchase f filed this legislation to establish the downtown waterfront property to con- Better America Bonds program. vert into a park perhaps, like the great DESIGNATION OF SPEAKER PRO Mr. Speaker, we believe that the Fed- hike and bike trail we have along Town TEMPORE eral Government should be an active Lake in my hometown of Austin, The SPEAKER pro tempore laid be- partner with local communities sup- Texas. In Austin, we have a number of fore the House the following commu- porting their efforts to build more liv- new projects that are under consider- nication from the Speaker: able communities as we approach the ation, including a project along Waller WASHINGTON, DC, 21st century. Creek, and a project for an additional August 2, 1999. I believe that there is strong, broad- Town Lake park, both to preserve I hereby appoint the Honorable CLIFF based support for these locally devel- green space. Additional green space STEARNS to act as Speaker pro tempore on oped, ‘‘smart growth’’ or sustainable provided through these projects means this day. growth initiatives. The Better America not only more fun but more oppor- J. DENNIS HASTERT, Bonds program would assist State and tunity for economic development in Speaker of the House of Representatives. local governments in their efforts to some areas that have been neglected f plan for their future growth and devel- and not properly used in the past by MORNING HOUR DEBATES opment. the city. Through the issuance of this new My constituents back in central The SPEAKER pro tempore. Pursu- type of bond, one that carries a Federal Texas have realized the importance of ant to the order of the House of Janu- tax credit as opposed to a small additional green space acquisition and ary 19, 1999, the Chair will now recog- amount in interest payments, local of clean water by approving local bond nize Members from lists submitted by governments would be enabled to make initiatives through which the City of the majority and minority leaders for purchases to preserve green space, cre- Austin has already purchased some morning hour debates. The Chair will ate or restore urban parks, or simply 15,000 acres of land towards this objec- alternate recognition between the par- to clean up land or water. tive. These new land purchases will ties, with each party limited to 30 min- I believe that the preservation of protect our sensitive environment in utes, and each Member, except the ma- more open space, more green space in central Texas and provide additional jority leader, the minority leader, or which families can enjoy life, is becom- parks. the minority whip, limited to 5 min- ing a leading environmental issue They have also provided a unique op- utes. across this country. Both property val- portunity for some groups that have The Chair recognizes the gentleman ues on homes and the basic quality of warred against each other to work to- from Texas (Mr. DOGGETT) for 5 min- life that we all expect are improved gether. In Austin, the Save Our Springs utes. with additional open space and parks. Alliance, the Greater Austin Chamber f It really is not that hard to under- of Commerce and the Real Estate stand why that is so if we are coming Council were once opposing each other BETTER AMERICA BONDS, H.R. 2446 or going from Washington, D.C. along over some of the environmental efforts Mr. DOGGETT. Mr. Speaker, it has the George Washington Parkway or the in the community. Now they have been said that the only means of con- Rock Creek Parkway. Or if, as my wife united in what is called a ‘‘Vast Open servation is innovation, and I believe and I like to do, one is enjoying bicy- Spaces’’ project to acquire additional that is what Vice President GORE had cling along the trail that leads beside land and in the process of uniting over in mind in recommending an innova- the parkway down to Mt. Vernon, one this issue, they have come to achieve tive proposal called Better America recognizes how much the beauty of the some common ground on a number of Bonds. I joined him back in January of green space and the opportunity to other issues toward improving the this year over at the American Insti- walk and play in that green space adds quality of life in central Texas as well. tute of Architects with a number of to the quality of life. I believe that the Better America outstanding planners and conservation- Mr. Speaker, the Better America Bonds program, by supporting that ists to announce this initiative. Now, Bonds legislation has some 110 Mem- kind of effort, will allow them to do an the gentleman from Missouri (Mr. GEP- bers of this House now as cosponsors. even better job, reach more parts of HARDT), the gentleman from California We would provide up to almost $10 bil- our community, and provide more

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.

H6761

. H6762 CONGRESSIONAL RECORD — HOUSE August 2, 1999 parks and green space, not only along The ‘‘Weed and Seed’’ program began education for young people, drug abuse Town Lake but throughout central with three pilot sites in 1991. As of resistance education, and of course Texas. today, there are over 200 pilot sites and dealing with the gangs through edu- Mr. Speaker, I think the same kind one of those, of course, Mr. Speaker, is cation and training. of thing can happen around the coun- in my hometown of Ocala, Florida, Mr. Speaker, this morning I am try, whether it is along the Anacostia which is in my congressional district. pleased to be here. I commend the here in Washington, the Chattahoochee The article, as I mentioned earlier, is Ocala Police Department, the local and in Atlanta, or along the Los Angeles written by Ken DeVilling, a lieutenant State officials, and all the organiza- River, these bonds provide the oppor- with the Ocala Police Department, the tions involved in this dramatic, dra- tunity to reinvigorate downtown areas, Crime Prevention section. I would like matic success achieved in crime pre- make them more livable, and reinvigo- to share what Lieutenant DeVilling’s vention. As we here in Congress at- rate the economy in some of these observations were and actually the tempt to find solutions to the violence areas. eminent success of the Ocala Police that is sweeping this country and this The Better America Bonds initiative Department and the surrounding com- Nation, it is comforting to know that has received support from the Amer- munity in their fight against crime. our local law enforcement and commu- ican Institute of Architects and the As Lieutenant DeVilling mentioned nity organizations working hard to National Realty Committee because in his article, the City of Ocala was, of combat this problem at its source and they support strong neighborhood plan- course, not immune to the effects of it is happening in my hometown of ning and this program provides the crack cocaine and the subsequent surge Ocala. They are succeeding. means for communities to do just that. of crime. Additional resources were Mr. Speaker, I will submit to enter Communities and local governments needed and the Ocala Police Depart- into the RECORD Lieutenant are also supporting the Better America ment had the foresight to recognize the DeVilling’s article as it appears in the Bonds program because these bonds are newly developed ‘‘Weed and Seed’’ pro- Department of Justice’s spring 1990 re- much less costly to a local government gram as a viable solution to rising port, ‘‘Weed and Seed and Best Prac- for them to use than the traditional in- crime in my hometown. So myself, and tices Report.’’ For brevity, Mr. Speak- terest bearing ones. with the help of my other colleagues in er, I will submit only that section deal- As Vice President GORE said earlier Florida and the Florida delegation, ing with ‘‘Taking it to the Streets,’’ this year, ‘‘Plan well, and you have a they assisted me in getting Ocala as a which is a small part of this article ex- community that nurtures commerce site designated as a ‘‘Weed and Seed’’ plaining how the Ocala Police Depart- and private life. Plan badly, and you program. ment actually reduced crime in my have what many of us suffer from first- A number of initiatives were created hometown using the ‘‘Weed and Seed’’ hand: Gridlock, sprawl and that by the Ocala Police Department using program. uniquely modern evil of all, too little the funds that were provided by this My efforts this morning are also to time.’’ ‘‘Weed and Seed’’ program. One initia- recognize the fine things being done by We incorporated this concept of Bet- tive was the creation of a community the Ocala Police Department to reduce ter America Bonds in the Democratic organization called the Community and eliminate crime in my hometown tax substitute. It received a substan- Council Against Substance Abuse of Ocala, Florida. tial number of votes, and I hope that which was comprised of members of the TAKING IT TO THE STREETS we can come together in a bipartisan local Community Commission, the city The programs and projects conducted by effort to support Better America Bonds council, school board, State attorney’s the Ocala Police Department, Crime Preven- in the future. I believe that we must all office and of course other community tion Section include: be active participants in preserving our organizations. Drug Education For Youth (DEFY): This livable communities for our children As a result of these organizations program was developed by the U.S. Navy and and grandchildren. Through innovative getting together, Ocala recorded its offered through the Department of Justice to conservation programs like Better lowest crime rate in 1998. Furthermore, local law enforcement organizations. The America Bonds, we can ensure this leg- in 1997, the city’s homicide rate was program at our level reaches out to under- acy. only one, and in the previous decades it privileged children and offers one-on-one mentoring for a full year. Most of the men- f went as high as 20 per year. tors are police personnel. We conduct a sum- Another program that is cited in this mer day camp and the local Army Reserve OCALA, FLORIDA POLICE DEPART- article is called ‘‘Problem-Oriented Po- MENT CRIME PREVENTION: personnel attend and provide various in- licing.’’ Under this program, officers structional topics for the kids. We take the ‘‘WEED AND SEED’’ identify possible areas which, quote, children on field trips to places offering edu- The SPEAKER pro tempore (Mr. detract from good living conditions in cational and inspirational experiences. We MICA). Under the Speaker’s announced the neighborhoods they patrol, end also arrange for them to conduct their own policy of January 19, 1999, the gen- quote. These areas may be abandoned community programs such as delivering fruit tleman from Florida (Mr. STEARNS) is lots or houses that are abandoned or baskets to the elderly. DARE (Drug Abuse Resistance Education): recognized during morning hour de- they might be areas that provide haven DARE is a well-known elementary school bates for 5 minutes. for drug trafficking and criminal ac- program which we have implemented in all Mr. STEARNS. Mr. Speaker, I would tivities. of the primary schools in Ocalo with the as- like to bring to the attention of my Once they identify these areas, a sistance of the Marion County School Board. colleagues a report that was issued this form is completed by the officer and is Our program reaches over 1000 school-chil- spring of this year from the Depart- sent through the chain of command. dren each year. ment of Justice Office of Justice Pro- The identified site is then referred to GREAT (Gang Resistance Education and grams called ‘‘Weed and Seed Best the city department best able to handle Training): the GREAT program is similar in Practices.’’ I thought this was a very the situation. Let me quote from Lieu- concept to DARE, but it is directed toward an older group of students and offers a dif- interesting report and in this report is tenant DeVilling in the article when he ferent message. Street gangs are becoming a featured an officer from my hometown says, ‘‘It is not uncommon for a police serious problem in the United States. Some of Ocala, Florida. officer to identify a dilapidated build- cities are already overburdened with ‘‘after For many of my colleagues, the ing which is used as a crack House. the fact’’ abatement programs and addi- ‘‘Weed and Seed’’ program, as they Within a short time, the building is tional police efforts to cope with the vio- know, is a community-based crime pre- burned to the ground by firemen to lence, destruction, and crime created by vention program. Federal, State, and practice and improve their skills. The these groups. The Ocala Police Department local law enforcement agencies, com- property is then cleared and recycled. and the Marion County School Board, with munity support services, local busi- These recycled properties are fre- the help of CCASA have implemented the nesses, and ordinary citizens get to- GREAT program in all seventh grade classes quently used for purposes such as in the city schools. The classes teach anti-vi- gether to weed out violent crime and building a brand-new home by Habitat olence, drug resistance, gang resistance, self- drug use and plant the seeds to foster for Humanity.’’ esteem, conflict resolution, and other impor- new community growth and, of course, Other programs operated by the tant topics. This program will soon reach stability in that community. Ocala Police Department include drug 1000 students each school year. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6763 Other ongoing programs implemented and regulations and starting new pro- that rather than continuing to rebuild through the Ocala Police Department are de- grams, one the most important con- a repeatedly flooded home, the pro- signed to address specific challenges in issue tributions the Federal Government can gram would provide homeowners with areas at various times. These projects may make is using our existing resources money to help them move away from be operated for only a short time (one to two days) or for extended periods (a full year). more wisely. flood waters or at least floodproof their We employ a concept of dynamic approach Nowhere is that more clearly illus- homes. Those who refuse assistance and response to community needs in order to trated than what we do with water re- must start paying the real actuarial in- provide our services in a timely manner. sources. Currently, the Federal Gov- surance costs for the risks that they Programs can be implemented and discon- ernment makes it easier to spend choose to take. tinued as community needs indicate. money paving a creek to stop flooding This policy is both humanitarian and The following activities and events are than to restore wetlands to achieve the fiscally responsible, allowing people to only part of those conducted by Crime Pre- same goal. I have already introduced move out of harm’s way and protecting vention Section and the Ocala Police Depart- legislation that would make it easier the Federal taxpayer by making the ment family as part of their regular duties: National Flood Insurance program sol- Business Police Academy. for communities to invest in cheaper, Citizens Police Academy. greener approaches to flood protection. vent. We need to enforce the existing Citizens Police Academy Alumni Associa- This approach does not need to cost the rules and regulations to keep people tion. Federal Government an additional out of harm’s way. We need to spend Bicycle Safety Rodeos. dime, and it gives the communities money to prevent loss rather than re- ‘‘Cops’’ Kids & Firemen Day. more choices as they solve their prob- peatedly cleaning up after it is too Crime Prevention Week. lems and increase livability. late. Neighborhood Watch. The National Flood Insurance pro- This basic solution to more livable Business Watch. communities will not require more Safe Halloween. gram poses another critical water re- Community Clean-up Days. source management challenge. It is ap- money or bureaucratic regulations. As Special Olympics Picnic. propriate for the Federal Government usual, a livable community is possible DARE and GREAT Skate Nights. to step in when there is a case of un- if the Federal Government is a ‘‘AMI’’ (Aid to the Mentally Impaired). foreseen natural disaster. However, if thoughtful partner with citizens and Police Explorers Post. it is clear that some people make it their local government. I would like to Neighborhood Cookouts. hard on themselves by continuing to urge my colleagues to join with me and ‘‘SAFE HOME’’ Program. the gentleman from Nebraska (Mr. BE- Police Recruit Academy. invest in unwise anti-environmental, REUTER) to reform the National Flood Scholarships. unsustainable situations, then we have Community Resource Center. an obligation to draw the line. The Insurance program and to sign on as Crime Prevention Programs. Federal taxpayer should not be paying cosponsors of our ‘‘Two Floods and Security Surveys. for people to live in places where God You’re Out’’ legislation. McGruff Program Activity. repeatedly has shown that he does not f ‘‘Crash Dummies’’ Program. want them. WHO IS RECKLESS? ‘‘Casey’’ the talking car. There is a home in Houston which Operation ‘‘Kid ID’’ The SPEAKER pro tempore. Under has an appraised value of $114,000 which Project Graduation. the Speaker’s announced policy of Jan- Host Statewide DARE Day. has received over $800,000 in flood in- uary 19, 1999, the gentleman from Flor- surance payments in 16 events in the HUD Summer Programs. ida (Mr. MICA) is recognized during Red Ribbon Campaign. last 10 years. Over 5,600 properties, morning hour debates for 5 minutes. Vacation Bible School. nearly 1 in 10, have loss claims which Mr. MICA. Mr. Speaker, from time to Health Fairs. exceed the value of the property. Forty The future of law enforcement is already time the comments from this adminis- percent of our flood insurance goes to 2 tration and the President of the United here. Crime prevention has proven to be suc- percent of the property that is repeat- cessful and will continue to be the founda- States lead me to the floor to com- tion of progressive law enforcement as we edly flooded. ment. I think my colleagues and the move into the 21st century. Mr. Speaker, if the local government American people saw the President of For more information contact: Lt. Ken and private property owners are going the United States calling the Repub- DeVilling, Phone (352) 629–8290, Fax (352) 629– to be foolish, they need to do it on licans reckless. And I guess I am in- 8391. their own dime. Indeed, it is not just cluded in that, I am a Republican. We f our money they are wasting; these de- were called reckless for proposing a velopment patterns take on a life of TWO FLOODS AND YOU ARE OUT significant tax cut for the American their own. They pressure organizations people. The SPEAKER pro tempore. Under like the Corps of Engineers, FEMA and Mr. Speaker, I almost had to chuckle the Speaker’s announced policy of Jan- state and local communities to further to hear the President of the United uary 19, 1999, the gentleman from Or- engineer the environment and protect States call me reckless and the Repub- egon (Mr. BLUMENAUER) is recognized ill-advised development from flooding, licans for offering a tax cut. It is al- during morning hour debates for 5 min- often succeeding in making matters most hysterical when we think about it utes. worse. when the other side of the aisle for Mr. BLUMENAUER. Mr. Speaker, Despite having spent over $40 billion some 40 years had control of this body there is a theme this morning on the since 1960, our losses adjusted for infla- and under the Constitution of the floor of the House: dealing with how we tion are three times greater than when United States we all know bills, finan- can promote livable communities. we started the building spree. Our dis- cial bills start in the House of Rep- Whether it is dealing with community- aster relief costs have increased 550 resentatives on the basis of a judgment oriented policing, ‘‘Weed and Seed,’’ or percent in the last 10 years. made by our founding fathers. For 40 associating the comments of the gen- It is time for us to rethink our poli- years, the recklessness of the other tleman from Texas (Mr. DOGGETT) cies and our investments. It is time to side nearly bankrupt this Nation. about Better America Bonds, there is a stop the waste of money, predictable When I came into the House of Rep- lot that the Federal Government can loss of property, and threat to public resentatives in 1992, we were facing fi- do to make a difference for things that safety. As a basic simple common sense nancial disaster. This was carried people really care about, making their step, it is time to reform the National through with the reckless policy of this families safe, economically secure and Flood Insurance program. President who instituted one of the healthy. Mr. Speaker, I am pleased to join largest tax increases in American his- Mr. Speaker, a critical part of mak- with the gentleman from Nebraska, tory a few months after his election. ing the Federal Government a better (Mr. BEREUTER) who has long been a And again when he had complete ma- partner in promoting livable commu- champion of reforming the Flood Insur- jorities in the House, the Senate, and nities is the work we do with basic in- ance Program to propose a simple ap- controlled the White House. frastructure. Rather than spending a proach to repetitive flood loss. We re- What was reckless is 40 years of tak- lot of new money, making new rules tool the Flood Insurance Program so ing money out of Social Security. It is H6764 CONGRESSIONAL RECORD — HOUSE August 2, 1999 like robbing our senior citizens’s pen- This week is no exception at all. The $125,000 a year. And, again, I would sion accounts, their funds, and using it Republican leadership says that their urge my colleagues to remember that for outlandish spending. Spending real- tax cut is for the middle-class. For the the portion of the population that is ly to buy votes and win elections in a middle-class in America, working getting most of the tax break includes giveaway program that backfired and Americans. For the middle-class. Well, every Member of the House and the nearly ran us into financial oblivion. that is clearly not true if we look at Senate of the United States. I have to That is reckless. what has passed the House and the Sen- ask, does anyone think that that is a Reckless when they robbed every ate. The House passed its bill 2 weeks fair way to distribute tax reduction in trust fund, including the Federal em- ago. And starting at the wealthiest end this country? ployee’s trust funds, when they robbed of Americans, at Bill Gates, at the f the highway trust funds, which this re- wealthiest end and come down to an sponsible new majority has restored. Is annual income of $300,000 a year, that 1 RECESS it reckless in fact when we guarantee percent, just over a million Americans The SPEAKER pro tempore. Pursu- 63 percent and we create a lock-box to who have incomes between $300,000 a ant to clause 12 of rule I, the Chair de- secure revenues for the future stability year and Bill Gates, that richest 1 per- clares the House in recess until 2 p.m. and security of Social Security? That cent is on average going to get $54,000 Accordingly (at 12 o’clock and 58 is responsible. of tax breaks. It turns out to be 45 per- minutes p.m.), the House stood in re- Mr. Speaker, some people I guess just cent of the total of all the tax reduc- do not know the meaning of reckless- cess until 2 p.m. tion being proposed goes to the 1 per- f ness. cent of the wealthiest Americans. Then to provide health insurance, If we take 6 million Americans, 5 per- b 1400 there are 43 million Americans in this cent starting at the top of the scale Nation that do not have health insur- down to an income of $125,000 a year, I AFTER RECESS ance. What is interesting is two-thirds think it might be instructive to re- The recess having expired, the House to three-quarters of them are em- member that every single Member of was called to order by the Speaker pro ployed. Our plan for financial assist- the Congress, every Member of the tempore (Mr. STEARNS) at 2 p.m. ance and tax cuts and tax credits will House and every Member of the Senate allow millions and millions of Ameri- f has income greater than $125,000 a year, cans who work at minimum or low that 5 percent will average $15,000 a PRAYER wage or small employers who are the year in tax cuts and gets 61 percent of largest employers, and most of those The Chaplain, the Reverend James the total reduction. people who do not have health insur- David Ford, D.D., offered the following Mr. Speaker, if we start at the other prayer: ance are not covered but they do work, end and come all the way up, all the we are providing in this tax relief pack- Let us pray. We are grateful, O God, way up from the lowest income Amer- that the scriptures remind us that You age a responsible package. It is reck- ican to people making under $125,000 a less in my opinion not to provide those are always with us and that Your love year, all 95 percent of them, all 120 mil- working men and women with at least and forgiveness and strength will never lion taxpayers, they will receive less a minimal chance of getting some depart from us. Whatever our concern than the 1 percent whose income is health coverage. or whatever our adversity, You restore So somehow we have a difficulty be- over $300,000 per year. It turns out that our souls; and You lead us in the paths tween determining what is reckless and those people, who include the broad of righteousness. So it is with grati- what is responsible. I think what the middle-class, income from $25,000 a tude that we know we are never alone Republicans, the majority and myself, year to $65,000 a year under the House- and we are never apart from Your have done is a responsible action. I passed bill, would get less than half as strong arm. Your rod and Your staff think we have a history of a President much in total tax reduction as the 1 they comfort us. Surely goodness and and a party who has dealt in reckless- percent richest portion of the popu- mercy shall follow us all the days of ness. I think the examples are clear lation. our lives and we will dwell in Your and the financial statements speak for Let me put that in slightly different house forever. themselves. terms. If we were to take 100 people Amen. that we know, one person whose in- f come is over $300,000 a year and the f TAKE A CLOSE LOOK AT TAX CUT rest whose income comes down from THE JOURNAL PROPOSALS that point, and we have $100 to give out in tax reduction, 100 people and $100 in The SPEAKER pro tempore. The The SPEAKER pro tempore. Under Chair has examined the Journal of the the Speaker’s announced policy of Jan- tax reduction, that one wealthiest per- son, that single one is going to get $45. last day’s proceedings and announces uary 19, 1999, the gentleman from Mas- to the House his approval thereof. sachusetts (Mr. OLVER) is recognized Forty-five of the dollars that it is pos- Pursuant to clause 1, rule I, the Jour- during morning hour debates for 5 min- sible to give out under the cir- nal stands approved. utes. cumstances. Ninty-five people, the 95 Mr. OLVER. Mr. Speaker, it is sort of starting from the lowest income up to f irony that I should be following the incomes that covers the broad middle- PLEDGE OF ALLEGIANCE gentleman who just spoke because I am class, they are going to get a total of going to be speaking about the same $39 divided among them. The SPEAKER pro tempore. Will the thing. That was not specifically If we look at it in terms of families, gentleman from Ohio (Mr. CHABOT) planned, but I am glad that it comes a family making $30,000 a year would come forward and lead the House in the out that way. get less than $1 a day in tax reduction. Pledge of Allegiance. Mr. Speaker, we are told this week A family making $50,000 a year, two Mr. CHABOT led the Pledge of Alle- that the main business of the Congress people working, second jobs whatever giance as follows: is proposals which have now passed it happens to be but under $50,000 a I pledge allegiance to the Flag of the both the House and the Senate to pro- year, at $50,000 a year they would get United States of America, and to the Repub- vide for an $800 billion tax cut. Any less than $2 a day in income. Yet the lic for which it stands, one nation under God, time the Congress is thinking about person who is making $1 million a year, indivisible, with liberty and justice for all. tax cuts, it behooves everyone in that person would get $70,000 in that f America to hang on to their wallet, to year. $200 a day in tax breaks. sit up and take notice, to pay very The Senate-passed plan is a little bit MESSAGE FROM THE PRESIDENT close attention to who is being given different. The wealthiest 5 percent in A message in writing from the Presi- tax breaks and why. But also how that the Senate plan gets almost the same dent of the United States was commu- differs from who the proponents are amount as the 95 percent, the 120 mil- nicated to the House by Mr. Sherman saying is going to get the tax breaks. lion people whose income is less than Williams, one of his secretaries. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6765 MESSAGE FROM THE SENATE Ms. Juliette N. Kayyem of Cambridge, buy money. Beam me up, Mr. Speaker. Massachusetts. So help me. A message from the Senate by Mr. Yours Very Truly, Lundregan, one of its clerks, an- I yield back further the fact that RICHARD A. GEPHARDT. North Korea is building missiles that nounced that the Senate had passed f without amendment concurrent resolu- are being aimed in the future at Amer- tions of the House of the following ti- THE REAL COST OF TAXING ica. tles: MINING INTERESTS f H. Con. Res. 107. Concurrent resolution ex- (Mr. GIBBONS asked and was given DEFINING A TARGETED TAX CUT pressing the sense of Congress rejecting the permission to address the House for 1 (Mr. CHABOT asked and was given conclusions of a recent article published in minute and to revise and extend his re- the Psychological Bulletin, a journal of the permission to address the House for 1 American Psychological Association, that marks.) minute and to revise and extend his re- suggests that sexual relationships between Mr. GIBBONS. Mr. Speaker, today I marks). adults and children might be positive for rise to address the claim of some of my Mr. CHABOT. Mr. Speaker, when I children. colleagues that gold mines get a free hear some of my liberal friends on the H. Con. Res. 168. Concurrent resolution ride because they do not pay their fair other side of the aisle, not the gen- waiving the requirement in section 132 of the share of Federal royalties. Well, when tleman who just spoke, I might add, Legislative Reorganization Act of 1946 that considering a Federal tax increase on talk about targeted tax cuts, I know the Congress adjourn sine die not later than the mining industry, we must always exactly what they mean. It means you July 31, 1999. remind my tax and spend colleagues to will not be getting one. The message also announced that the take into account the adverse effect of Republicans, I should add, also are Senate had passed with an amendment such a tax increase on state and local putting forth a targeted tax cut, but in which the concurrence of the House tax revenues as well. there is a very big difference. If you are is requested, a bill of the House of the There is a direct correlation between a taxpayer, you get one. following title: increasing mining royalties or taxes That is right, our targeted tax cuts H.R. 2488. An act to provide for reconcili- and the reduction in mining activities. target all taxpayers, a concept that ation pursuant to sections 105 and 211 of the The unintended consequence is that really sticks in the craw of many of my concurrent resolution on the budget for fis- liberal friends on the other side of the cal year 2000. State and local governments suffer great tax losses by these resulting de- aisle. The message also announced that the creases in mining activities. Federal Many politicians in Washington have Senate insists upon its amendment to royalties are deductible from the in- a hard time coming to grips with the the bill (H.R. 2488) ‘‘An Act to provide come base on which many of these fact that the budget surplus, a tax for reconciliation pursuant to sections State taxes are levied. This results in overpayment, really, does not belong 105 and 211 of the concurrent resolution an even less tax dollar amount for to them. That money, every penny of on the budget for fiscal year 2000,’’ and State and local governments. Even a it, belongs to the taxpayers. requests a conference with the House recent economic analysis shows that Washington is taking more than it on the disagreeing votes of the two an 8 percent gross royalty would cost needs out of the pockets of those who Houses thereon, and appoints Mr. State and local governments hundreds work all over this country and pay ROTH, Mr. LOTT, and Mr. MOYNIHAN, to of millions in tax revenues every year. their taxes. be the conferees on the part of the Sen- Mr. Speaker, it becomes very clear The bottom line is the American peo- ate. that when a Federal royalty is not in ple are overtaxed, and the real issue is, The message also announced that the the best economic interests of this who should decide how the money gets Senate had passed bills of the following country or the mining industry, we spent: The bureaucrats up here in titles, in which the concurrence of the should avoid it. Washington, or the taxpayers all over House is requested: Abraham Lincoln had the great fore- this country. I will cast my lot with the people of S. 1467. An act to extend the funding levels sight when he said, ‘‘Tell the miners this Nation. Let us cut the taxes on the for aviation programs for 60 days. for me that I shall promote their inter- S. 1468. An act to authorize the minting American people, and let us do it now. ests to the utmost of my ability, be- and issuance of Capitol Visitor Center Com- f memorative coins, and for other purposes. cause their prosperity is the prosperity The message also announced that of the Nation, and we shall prove in a REPORT ON REVISED DEFERRAL pursuant to Public Law 100–458, the very few short years that we are indeed OF BUDGET AUTHORITY—MES- Chair, on behalf of the Majority Lead- the treasury of the world.’’ SAGE FROM THE PRESIDENT OF er, appoints the Senator from Virginia f THE UNITED STATES (H. DOC. NO. 106–109) (Mr. WARNER) to the Board of Trustees NORTH KOREA ACCUSED OF DRUG of the John C. Stennis Center for Pub- DEALING The SPEAKER pro tempore laid be- lic Service Training and Development, fore the House the following message for a term ending October 11, 2004. (Mr. TRAFICANT asked and was from the President of the United given permission to address the House f States; which was read and, together for 1 minute and to revise and extend with the accompanying papers, without COMMUNICATION FROM HON. RICH- his remarks.) objection, referred to the Committee ARD A. GEPHARDT, DEMOCRATIC Mr. TRAFICANT. Mr. Speaker, need- on Appropriations and ordered to be LEADER ing cash to run their government, the printed: government of North Korea has been The Speaker pro tempore laid before To the Congress of the United States: the House the following communica- accused of selling heroin and cocaine. I In accordance with the Congressional tion from RICHARD A. GEPHARDT, am not kidding you. Reports say that Budget and Impoundment Control Act Democratic Leader: North Korean agents were arrested by of 1974, I herewith report one revised international police possessing 80 HOUSE OF REPRESENTATIVES, deferral of budget authority, now total- OFFICE OF THE DEMOCRATIC LEADER, pounds of cocaine and $100 million ing $173 million. Washington, DC, July 30, 1999. worth of methamphetamines that was The deferral affects programs of the Hon. J. DENNIS HASTERT, sponsored for sale officially by their Department of State. Speaker of the House, government. WILLIAM J. CLINTON. House of Representatives, Now, if that is not enough to trigger THE WHITE HOUSE, August 2, 1999. Washington, DC. your overdose, on or about the same f DEAR MR. SPEAKER: Pursuant to Section time, the White House announced they 591(a)(2) of the Foreign Operations, Export are asking Congress for another $55 ANNOUNCEMENT BY THE SPEAKER Financing, and Related Programs Appropria- PRO TEMPORE tions Act, 1999 (112 STAT. 2681–210), I hereby million in foreign aid for North Korea. appoint to the National Commission on Ter- Unbelievable. North Korea is selling The SPEAKER pro tempore. Pursu- rorism: dope, and Uncle Sam is fronting the ant to the provisions of clause 8 of rule H6766 CONGRESSIONAL RECORD — HOUSE August 2, 1999 XX, the Chair announces that he will the ranking member, the gentlewoman Committee on Banking and Financial postpone further proceedings today on from California (Ms. WATERS), and I Services in supporting this much need- each motion to suspend the rules on understand it has the support of my ed measure. It will ensure that the pub- which a recorded vote or the yeas and good friend, the gentleman from Min- lic has available any and all cash it nays are ordered or on which the vote nesota (Mr. VENTO). might demand near the end of the year is objected to under clause 6 of rule Mr. Speaker, I would like to take a as the country’s computer systems XX. brief moment to explain the need for make their changeover to the new mil- Such rollcall votes, if postponed, will the bill and the issue of timing. Sec- lennium. Although we expect few if any be taken later today. tion 16 of the Federal Reserve Act re- problems with our Nation’s banks at f quires the Federal Reserve to that time, this is a prudent move to collateralize Federal Reserve notes help relieve any doubt that the public AMENDING FEDERAL RESERVE when they are issued. The list of eligi- will have access to hard currency. ACT TO BROADEN RANGE OF ble collateral includes, at present, H.R. 1094 provides for a technical DISCOUNT WINDOW LOANS Treasury and Federal agency securi- change in the Federal Reserve Act to WHICH MAY BE USED AS COL- ties, gold certificates, special drawing facilitate the Federal Reserve’s ability LATERAL FOR FEDERAL RE- rights certificates, and foreign cur- to distribute as much as $50 billion in SERVE NOTES rencies. In addition, the legally eligible currency during this period, if needed. Mr. LEACH. Mr. Speaker, I move to backing for currency includes discount Under current law, every unit of cur- suspend the rules and pass the bill window loans made under Section 13 of rency issued by the Federal Reserve (H.R. 1094) to amend the Federal Re- the Federal Reserve Act. must be collateralized by certain assets serve Act to broaden the range of dis- Over the years, Congress has added a held by the Federal Reserve. The assets count window loans which may be used new section to the law to permit lend- on the current list have always been as collateral for Federal reserve notes, ing by the Federal Reserve to deposi- adequate to collateralize currency in circulation. However, should there be a as amended. tory institutions under provisions surge in currency demand at the end of The Clerk read as follows: other than section 13 and against a 1999 and the beginning of the year 2000, H.R. 1094 broader range of collateral. However, section 16 has not been similarly the current list could be inadequate. Be it enacted by the Senate and House of Rep- The list, therefore, needs to be ex- resentatives of the United States of America in amended to accommodate these new sections, thus limiting the types of panded to include other assets which Congress assembled, That the third sentence the Federal Reserve already owns but of the second undesignated paragraph of sec- loans the Federal can use to back cur- tion 16 of the Federal Reserve Act (12 U.S.C. rency. For example, certain discount which, largely due to historical over- 412) is amended by striking ‘‘acceptances ac- window loans made by the Federal sight, are not now included. Chairman Greenspan in a letter to quired under the provisions of section 13 of under 10B of the Act and secured by me dated July 30, 1998, suggested lan- this Act’’ and inserting ‘‘acceptances ac- mortgages on one-to-four family resi- guage comparable to that contained in quired under section 10A, 10B, 13, or 13A of dences cannot be used to back cur- this Act’’. H.R. 1094. Federal Reserve Governor rency. Edward Kelly in testimony before the The SPEAKER pro tempore. Pursu- The bill before us today, H.R. 1094, Committee on Banking and financial ant to the rule, the gentleman from simply seeks to update the currency services on April 13 of this year specifi- Iowa (Mr. LEACH) and the gentleman collateral provisions in section 16 to re- from New York (Mr. LAFALCE) each cally endorsed H.R. 1094. flect the broader range of collateral ac- Mr. Speaker, I fully support H.R. 1094 will control 20 minutes. cepted for discounted window loans The Chair recognizes the gentleman and wish to express my appreciation to under section 10A, section 10B and sec- the chairman of our committee for the from Iowa (Mr. LEACH). tion 13A of the Federal Reserve Act. Mr. LEACH. Mr. Speaker, I yield my- bipartisan attitude which has been able Finally, I would like to point out the in all circumstances to approach Y2K self such time as I may consume. reason for bringing this measure to the (Mr. LEACH asked and was given per- problems. I also wish to thank espe- floor today as a stand-alone proposal is cially the ranking minority member of mission to revise and extend his re- one of timing. According to the Federal marks.) the financial institutions sub- Reserve Board, the existing limits on committee, the gentleman from Min- Mr. LEACH. Mr. Speaker, I rise in currency collateral are becoming a po- support of H.R. 1094, a bill to broaden nesota (Mr. VENTO), for his great work tential problem because of the in- on this legislation. This legislation is the range of discount window loans creased use of retail sweep accounts which may be used as collateral for merely the latest example of that gen- over the past 5 years and the cor- eral tremendous bipartisan spirit. Federal Reserve notes. responding decline in reserve balances Mr. Speaker, I yield such time as he I would like to point out at the out- that can be used as excess collateral may consume to the gentleman from set this is not a new approach for this for currency. The small margin of Minnesota (Mr. VENTO). House. Virtually the same proposal was available currency collateral could Mr. VENTO. Mr. Speaker, I thank incorporated into the bankruptcy re- pose a potential problem should there the gentleman ranking Banking Mem- form bill, H.R. 833, which passed this be a substantial increase in the demand ber LAFALCE for yielding me time, as body on May 5, but which has not yet for discount window loans due to tem- well as the gentleman from Iowa cleared the other body. porary, or unusual, circumstances, (Chairman LEACH) for his comments. The bill enjoys the strong support of such as might occur around the year Mr. Speaker, I concur in their state- the Federal Reserve, as reflected in 2000 date change. ments. I think this is an appropriate correspondence with Federal Reserve Mr. Speaker, as I explained earlier, bill to forestall any emerging problems Chairman Alan Greenspan to the last this is not a new proposal, but given with regard to the issuance of Federal Congress, and again in testimony by the issues of timing and the need to en- Reserve Board paper, the one dollar the member of the Federal’s Board of sure that our bank agencies have all bills and larger bills that some of us Governors, Edward Kelly, at a hearing the necessary tools at their disposal to have an opportunity to spend. held by the committee in April. smooth the transition to the year 2000, Two things have happened. One is, The bill also enjoins strong bipar- I believe it is important for this body obviously as has been pointed out by tisan support on the Committee on to act separately on this bill. I appre- the chairman and ranking member, the Banking and Financial Services. The ciate the great courtesies extended by types of credit paper available have original sponsors of the bill include the the minority in this regard. changed and evolved and we have not ranking minority member of the full Mr. Speaker, I reserve the balance of kept up with them with regard to the committee, the gentleman from New my time. provisions of law to be used as collat- York (Mr. LAFALCE), as well as the Mr. LAFALCE. Mr. Speaker, I yield eral to back up the Federal Reserve Chairman of the Subcommittee on Do- myself such time as I may consume. Board notes the dollar bills. mestic and Monetary Policy, the gen- Mr. Speaker, I join the gentleman The other, as pointed out by our staff tleman from Alabama (Mr. BACHUS), from Iowa (Chairman LEACH) of the and research folks, is in fact the Fed, August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6767 like most accounts, are subject to Whereas Shuttle Mission STS–93 is the worked hard and has been bestowed the sweep accounts. Some of the credit first mission in the history of the United great honor of commanding a U.S. paper that they otherwise have is not States space program to be commanded by a space shuttle into space. deposited there long enough to use, so woman; In reality, Colonel Collins has Whereas women continue to be underrep- it cannot be used to offset the dollars resented in the science, engineering, and emerged as a role model for all young placed into circulation. As our good technology fields; women who aspire to one day follow in counsel, Mr. Peterson, pointed out in Whereas the selection of Colonel Eileen her footsteps or to pursue careers in the research papers of the gentleman Collins as the first female space shuttle com- other scientific fields. However, Mr. from New York (Mr. LAFALCE), if in mander has raised the level of awareness and Speaker, a young girl watching the re- fact we issue treasuries, which the Fed appreciation of women’s contributions in the cent nightly news coverage of Colonel could do, they could buy treasuries at advancement of science; and Collins’ flight will not be able to com- the end of the year and that might Whereas Colonel Eileen Collins’ accom- mand her own space shuttle flight un- plishments in the United States space pro- cause a spike in the market with the gram have made her a role model for women less she acquires the science and math demand for currency expected regard- pursuing an education and career in sci- skills necessary to succeed as an astro- ing the Y2K phenomena. entific fields: Now, therefore, be it naut in the U.S. space program. b Resolved, That the House of Sadly, many young girls, and boys 1415 Representatives— for that matter, are not receiving a So in order to preserve orderly mar- (1) congratulates the crew of Shuttle Mis- quality education even in the most kets, to respond to Y2K problems and sion STS–93 and honors Colonel Eileen Col- basic math and science courses. The re- other events that may occur of an un- lins on being the first female commander of lease last year of the Third Inter- usual nature in the history of mone- a United States space shuttle; (2) recognizes the important contribution national Mathematics and Science tary policy, it is prudent to, in fact, Colonel Eileen Collins has made to the (TIM) study revealed that American have these alternative and new instru- United States space program and to the ad- high school seniors, even our Nation’s ments to offset and use as collateral. vancement of women in science; and best students in advanced classes, are Mr. Speaker, I yield back the balance (3) invites Colonel Eileen Collins and the among the world’s least prepared. of my time. crew of STS–93 to the United States Capitol We must expect more from our Na- Mr. LEACH. Mr. Speaker, I have no to be honored and recognized by the House of tion’s students with respect to math further requests for time, and I yield Representatives for their achievements. and science. Curricula for all elemen- back the balance of my time. The SPEAKER pro tempore. Pursu- tary and secondary years need to be de- The SPEAKER pro tempore (Mr. ant to the rule, the gentleman from veloped in a manner that conveys the STEARNS). The question is on the mo- Wisconsin (Mr. SENSENBRENNER) and excitement of science and math so that tion offered by the gentleman from the gentlewoman from California (Ms. students are prepared to follow in the Iowa (Mr. LEACH) that the House sus- LOFGREN) each will control 20 minutes. footsteps of Colonel Collins and her pend the rules and pass the bill, H.R. The Chair recognizes the gentleman crew if they choose to do so. 1094, as amended. from Wisconsin (Mr. SENSENBRENNER. Mr. Speaker, I would like to thank The question was taken; and (two- GENERAL LEAVE the gentlewoman from Maryland (Mrs. thirds having voted in favor thereof) Mr. SENSENBRENNER. Mr. Speak- MORELLA), the chairwoman of the Sub- the rules were suspended and the bill, er, I ask unanimous consent that all committee on Technology, and the gen- as amended, was passed. Members may have 5 legislative days tlewoman from Texas (Ms. Eddie Ber- A motion to reconsider was laid on within which to revise and extend their nice Johnson), the ranking member of the table. remarks on H. Res. 267. the Subcommittee on Basic Research, f The SPEAKER pro tempore. Is there for introducing H. Res. 267 for our con- objection to the request of the gen- sideration today. GENERAL LEAVE tleman from Wisconsin? I congratulate Colonel Eileen Collins Mr. LEACH. Mr. Speaker, I ask unan- There was no objection. and the crew of Shuttle Mission STS–93 imous consent that all Members may Mr. SENSENBRENNER. Mr. Speak- and urge my colleagues to support H. have 5 legislative days within which to er, I yield myself such time as I may Res. 267. revise and extend their remarks on the consume. Mr. Speaker, I reserve the balance of bill just passed. Mr. Speaker, last Tuesday evening, my time. The SPEAKER pro tempore. Is there Space Shuttle Columbia touched down Ms. LOFGREN. Mr. Speaker, I yield objection to the request of the gen- at the Kennedy Space Center in Cape myself such time as I may consume. tleman from Iowa? Canaveral, Florida. The crew of Space Mr. Speaker, I want to speak in sup- There was no objection. Shuttle Columbia completed an impor- port of the resolution to honor the ac- tant mission. A few short hours after f complishments of Colonel Eileen Col- launch, shuttle mission STS–93 suc- lins, NASA astronaut. EXPRESSING THE SENSE OF THE cessfully deployed the Chandra X-ray As my colleagues know, she recently HOUSE WITH REGARD TO SHUT- Observatory. With the launch of commanded the successful STS–93 TLE MISSION STS–93, COM- Chandra, we begin to explore the uni- shuttle mission. As such she was the MANDED BY COLONEL EILEEN verse in new and exciting ways. first female shuttle commander in the COLLINS, FIRST FEMALE SPACE Chandra will allow us to examine the history of the United States Space Pro- SHUTTLE COMMANDER hot, turbulent regions in space with gram. She completed the mission with Mr. SENSENBRENNER. Mr. Speak- images nearly 25 times sharper than distinction, and she and the rest of the er, I move to suspend the rules and previous X-ray pictures. The scientific crew are to be congratulated. agree to the resolution (H. Res. 267) ex- promises that Chandra holds are far By all accounts she has handled all of pressing the sense of the House of Rep- reaching and will have a significant her assignments at NASA and in the resentatives with regard to Shuttle impact on our understanding of how Air Force with distinction, and she rep- Mission STS–93, commanded by Colo- our universe operates. resents the best in service to our Na- nel Eileen Collins, the first female Yet beyond the scientific accomplish- tion. space shuttle commander. ments of the recent shuttle mission, we In addition, Colonel Collins is a valu- The Clerk read as follows: rise today to celebrate a new turning able role model for young women. She point in history. STS–93 is the first- shows them that the sky is not the H. RES. 267 ever shuttle mission commanded by a limit if they study hard, work hard, Whereas Shuttle Mission STS–93 success- woman, U.S. Air Force Colonel Eileen and are willing to dream. Colonel Col- fully deployed the Chandra X-Ray Observ- Collins. Colonel Collins has lins shows that determination can lead atory; Whereas the Chandra X-Ray Observatory downplayed her role as the first female one to get ahead. will provide scientists from around the world space shuttle commander. In her mind, She began her academic career at with a better understanding of the structure she is just another astronaut, not un- Corning Community College where she and evolution of the universe; like her male predecessors, who has got a degree in mathematics and H6768 CONGRESSIONAL RECORD — HOUSE August 2, 1999 science. She went to get her bachelor’s I would like to point out to the gen- She just turned twelve when Apollo 8 made degree in mathematics and economics tlewoman from California, however, its 10 historic orbits of the moon on Christmas from Syracuse in 1978, a master’s of that the mark that came out of the Day 1968, and I have no doubt she was science degree in operations research Committee on Appropriations for fiscal among the millions who watched Neil Arm- from Stanford University in 1986, and a year 2000 is $700 million higher than strong, Michael Collins, and Buzz Aldrin make master’s of arts degree in space sys- the outyear budget that was submitted their voyage in Apollo 11 in the summer of tems management from Webster Uni- in January of 1996 by the Clinton ad- 1969. versity in 1989. ministration. In other words, the Clin- She dreamed of being a test pilot and an Colonel Collins had nothing given to ton administration’s projections for astronaut, but it didn't come easy for her. her, but Colonel Collins worked hard the NASA budget for fiscal year 2000 Though women were early pioneers of flight, and made a future for herself in the was $700 million lower than the Com- in the 1930s fewer opportunities were open to space program and as a role model for mittee on Appropriations mark which women. It wasn't until the mid-1970s that girls all over the country. She is just has been so roundly criticized. women became eligible for positions as mili- the person to help inspire more young So I think that we ought to quit tary aviators, the traditional route to the astro- Americans to seek benefits of a math playing games with numbers, I hate to naut program. and science education. use these numbers to counter the num- Collins was working her way through com- Mr. Speaker, I am pleased that Con- bers of the gentlewoman from Cali- munity college during this time and earned a gress is planning to honor her with this fornia, and get on to the business of scholarship to Syracuse. She studied mathe- resolution. Unfortunately, however, I making sure that NASA has the funds matics and economics, going on to later earn believe that it risks being a hollow to do its job. a Master of Science degree in operations re- honor. On the one hand we will vote Mr. Speaker, I yield back the balance search from Stanford University and a Master today to honor Colonel Collins for her of my time. of Arts in space systems management from accomplishments at NASA. On the Mrs. MORELLA. Mr. Speaker, two weeks Webster University. In 1979, the same year other hand later this week, the major- ago we celebrated the 30th anniversary of a Skylab fell out of Earth's orbit, she completed ity is preparing to bring to the floor an tremendous moment in our history. Who can her pilot training for the Air Force. appropriations bill that will cut forget that first message from the surface of She became a flight instructor, and in 1983, NASA’s budget by a billion dollars another world spoken on the morning of July when Sally Ride became the first American compared to fiscal year 1999. 20th thirty years ago: ``Houston, Tranquility woman in space, she was a C±141 com- It is a bill that cuts the President’s Base here. The Eagle has landed.'' These mander and instructor. As a test pilot, she request for human space flight by a words, spoken by Neil Armstrong, marked the eventually logged over 5,000 hours in 30 dif- quarter of a billion dollars. The request beginning of a new age for humanity. ferent aircraft. for space science research is also cut by Through hard work and determination born She was selected as an astronaut in 1990 a quarter of a billion dollars. The re- of a national pride and international rivalry, the and became the first woman pilot of the Space quest for Earth science research is cut world saw one of our own safely journey from Shuttle aboard the Discovery on STS±63 in by more than a quarter of a billion dol- the Earth to the Moon. Just a short seven February of 1995. Going into this past mis- lars. And the request for NASA’s infra- hours after that initial transmission from the sion, she had already logged over 419 hours structure budget for facilities, per- Lunar Module, Neil Armstrong descended the of time in space. sonnel, and so forth, is cut by almost a ladder to the cratered surface. As he ventured With her latest mission, however, she em- quarter of a billion dollars. away from the vehicle that brought him to that barked on an adventure that marks another I think that the majority is making place, he again uttered words which will al- moment in history. She became the first a grave mistake. NASA has done a ways be engraved in our national pride: woman commander of a mission to space. great job in streamlining its programs As Chair of the Subcommittee on Tech- and delivering good value for the tax- ``That's one small step for [a] man, one giant nology, I introduced the legislation that created payers’ investment. We should be sup- leap for mankind.'' With that simple statement, the Commission on Women and Minorities in porting NASA’s efforts, not slashing its the world changed. No harder a challenge has Science, Engineering and Technology working budgets while voting an 800 billion tax ever been issued, and no greater dream has cut. ever been accomplished. to reverse the underrepresentation of these I hope that we can restore the fund- As a testament of the possibilities that groups in the sciences through better edu- ing for NASA when the VA–HUD bill dreams present to us, I rise today to offer a cation and encouragement at all levels of reaches the floor. resolution honoring another American hero. learning. Through my work on the Science Ms. LOFGREN. Mr. Speaker, I yield After two frustrating, but necessary delays, Committee, I have had the pleasure of meet- back the balance of my time. STS±93 finally launched early in the morning ing Col. Collins. I was impressed by her Mr. SENSENBRENNER. Mr. Speak- on July 23, and last Tuesday, the Space Shut- ``down to earth'' personality and sense of self er, I yield myself the balance of my tle Columbia landed safely at the Kennedy in such an historical context. Commenting on time. Space Center after the successful completion the low number of women astronauts, she Mr. Speaker, I share the concern of of its mission. On its 26th voyage to earth's said, ``If you don't have large numbers of the gentlewoman from California (Ms. orbit, Columbia launched the Chandra X±Ray women apply, it will be hard to select large LOFGREN) about the activities of the Observatory. This marvel of technology will numbers of women.'' Committee on Appropriations relative travel one third of the way to the moon and Mr. Speaker, this resolution we debate to the NASA budget. And it was my from that vantage point promises to unlock today seeks not to compare this milestone to hope that at least some of these funds many secrets of the origins of the universe the triumph of 30 years ago, but to recognize can be added to the Committee on Ap- and the formation of galaxies, stars, and plan- wider possibilities. This latest mission is a sig- propriations mark between now and ets. nal to little girls who dream; space is there for the time the VA-HUD bill comes to the As promising and exciting as this latest en- them too. And the next time humankind en- floor. terprise of exploration is to scientists and stu- deavors to take another giant leap, it could Let me state, however, that passage dents everywhere, there is still a greater sig- well be a woman to make it. of the VA-HUD bill is necessary even at nificance to this mission. Mrs. FOWLER, Mr. Speaker, I rise today in the lower amount if we are to avoid The Commander of this mission, U.S. Air support of House Resolution 267, honoring having a government shutdown of Force Colonel Eileen Marie Collins was born Colonel Eileen Collins, our first female shuttle NASA as well as HUD and VA depart- in 1956, just one year before the space race commander, and her crew on Shuttle Mission ments at the end of September. That I began with the Soviet launch of Sputnik 1. STS±93. think is the worst of all possible alter- She grew up in the tense climate of the cold While each new exploration into space re- natives. war, fully aware that, as demonstrated by mains a marvel of scientific ingenuity and the So we have to work together in a bi- Sputnik, the Soviet Union could launch a mis- creative spirit, this mission is a truly special partisan basis to attempt to get a VA- sile with enough force to threaten her home. one. As we mark the 30th Anniversary of the HUD bill out of this House and over to No doubt she shared the apprehension that greatest triumph of the American space pro- the other body for its consideration as would spark the Space Race and see the gramÐmankind's first footsteps on the we continue working on giving NASA United States play catch-up to the apparent moonÐwe can see how far we have come. an appropriate appropriation. dominance of the world's other Superpower. This latest shuttle mission deployed the most August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6769 sophisticated X-ray observatory ever built and Ms. SLAUGHTER. Mr. Speaker, on July 23, Women have faced numerous barriers when will give us even greater opportunities to ob- 1999 Col. Eileen Marie Collins, U.S.A.F. took it comes to advancing in science professions. serve areas of the universe about which we one giant step for all womankind by serving as I cam remember when women were dis- still know very little, such as the remnants of the first woman in history to command a criminated against in employment. We passed exploded stars. space shuttle flight. I was privileged to fly to the Civil Rights Act of 1964 and Title VII which Still more special, however, is that this 118 Cape Canaveral, Florida with the First Lady prohibits gender discrimination in employment. hour and 50 minute mission was the first com- and the U.S. Women's Soccer Team on July I can remember when signs were put up ad- manded by a woman. Colonel Collins has four 20, 1999 to watch the shuttle's first attempt. vertising for a job but saying ``women need not degrees in science and mathematics and Although we were disappointed that the flight apply.'' We passed the Civil Service Act in spent three years teaching mathematics at the was delayed, we all marveled that just a few 1973 eliminating weight and height require- U.S. Air Force Academy, making her some- years ago events such as this one could not ments in federal jobs and the EEOC ruled that thing of an anomaly in a society where so few have occurred. employers cannot discriminate against women. of our young girls go on to science and math- Col. Collins was born in upstate New York, Today, women have been leaping bounds in ematics course work in their secondary and not far from my district, at a time when women professional careers. It seems that today there post-secondary education. While much were excluded from our nation's space explo- are no limits to the professional success of progress has been made over the past few ration program. Col. Collins rarely ever missed women. years, there is still a disparity in the number of an episode of Star Trek or Lost in Space ac- The selection of Col. Eileen Collins as shut- girls who go on to take advanced mathematics cording to her family. Along with her father, tle commander is not only a product of her and science classes in high school and col- Col. Collins would watch the gliders soaring own hard work and effort, but a product of the lege. Similarly, women are less likely to pur- over Elmira hoping one day she too could fly. rights which women have established for sue a science or mathematics degree in col- Eileen Collins dared to dream and her themselves. Col. Collins accomplishments in lege or related career. dreams became our dreams. Her efforts are the U.S. space program have made her a role This disparity is not caused by lack of inspiring young women and girls to tackle and model for women pursuing an education and achievement, as earlier science and math pro- excel at math and the sciences today. Col. career in scientific fields. ficiency gaps between young boys and girls Collins is blazing a trail that will undoubtedly Women continue to be underrepresented in have narrowed and virtually disappeared. Ac- be followed by future women astronauts. She the science, engineering, and technology cording to a recent National Science Founda- has rendered outstanding service to her coun- fields. The statistics paint a bleak picture: tion study on women's entry into science and try and is a true role model to young and old Women have historically been underrep- engineering fields, one possible reason is the alike. I would like to take this opportunity to resented in scientific and engineering occupa- lack of female teacher role models in sec- commend and congratulate her on a tremen- tions, and although progress has been made ondary schools. Colonel Collins may not be a dous accomplishment. over the last several decades, there is still high school teacher, but she is certainly a fine Mrs. MINK of Hawaii. Mr. Speaker, I am de- room for improvement. role model for aspiring engineers, astronauts, lighted to join my colleagues in honoring Colo- Female and minority students take fewer and mathematicians. In fact, both girls and nel Eileen M. Collins, the first American high-level mathematics and science courses in boys can look up to her as an example of woman to command a mission in space. I con- high school. where science and mathematics can take us. gratulate Colonel Collins and her crewÐPilot Female students earn fewer bachelors, I commend Colonel Collins for her pio- masters, and doctoral degrees in science and neering role in America's space program and Jeffrey S. Ashby and Mission Specialist Ste- ven A. Hawley, Catherine G. Coleman, and engineering. her crew for a job well-done. Among recent bachelors of science and Mrs. KELLY. Mr. Speaker, I rise today in Michel TogniniÐon a very successful mission. On July 23, 1999, Colonel Collins made his- bachelors of engineering graduates, women support of H. Res. 267, to pay tribute to Col. are less likely to be in the labor force, to be Eileen Marie Collins, as the first female space tory when the Space Shuttle Columbia took off under her command with the heaviest payload employed full-time, and to be employed in shuttle commander. I congratulate her for her their field than are men. leadership and thank her for her efforts to im- in shuttle history. The objective of the mis- sionÐto deploy the Chandra X-Ray Observ- Among doctoral scientists and engineers, prove our space program. Through her dedi- women are far more likely to be employed at cation she has become one of the most visible atoryÐwas flawlessly accomplished. A veteran of three space flights since becoming an as- 2-year institutions, are far less likely to be em- role models for girls in aeronautics and ployed in research universities, and are much science today. Since 1978, when NASA hired tronaut in 1991, Collins has logged over 537 hours in space. She served as pilot on her two more likely to teach part-time. it's first female astronaut, women have come Among university full-time faculty, women previous shuttle flights in 1995 and 1997Ðin to earn a place in the space program, peaking are less likely to chair departments or hold fact, she was also the first woman pilot of a with Col. Collins' historic effort as the first fe- high-ranked positions. space shuttle. male commander in NASA's 95 missions, A substantial salary gap exists between The girls of today have some powerful role commanding the space shuttle Columbia. With men and women with doctorates in science models to emulate, and Colonel Collins is one this mission she has earned a place in history and engineering. of the best. She has consistently excelled in alongside pioneers like, Amelia Earhart and It is for all of these reasons that Col. Collins' fields dominated by men. Colonel Collins has Cosmonaut Valentina Tereshkova, the first accomplishment is all the more historic. The demonstrated that there are no limits to what woman in space. selection of Col. Eileen Collins as the first fe- women can accomplish if given the oppor- I had the good fortune to travel to Cape Ca- male space shuttle commander has raised the tunity. Her example will inspire more women naveral on July 20th for this historic launch. level of awareness and appreciation of wom- to pursue careers in science and technology. Regrettably, safety precautions grounded the en's contributions in the advancement of Mrs. MALONEY of New York. Mr. Speaker, mission that day. However, on July 23, this science. I rise in support of H. Res. 267, the resolution mission was able to take place. What a proud I would like to congratulate the crew of congratulating NASA on its successful Shuttle day that was for Col. Collins, NASA and for Shuttle Mission STS±93 and honor Col. Eileen Mission STS±93, commanded by Colonel Ei- the women of our country. She has per- Collins on being the first female commander of leen Collins, the first female space shuttle severed in a way that most of us can only a United States space shuttle. dream of. commander. In recognition of the important contribution Col. Eileen Marie Collins, who is originally Mr. Speaker, we all can remember the awe Col. Eileen Collins has made to the U.S. from Elmira, New York, was selected by that we felt as children as we watched John space program and to the advancement of Glenn, Neil Armstrong and their fellow astro- NASA in January 1990, and became an astro- women in science, I would like to invite Col. nauts, as they brought space discovery home naut in July 1991. She has an extensive re- Collins and the crew of STS±93 to the United to all of us. Thanks to Col. Collins an her col- sume at NASA. A veteran of three space States Capitol to be honored and recognized leagues, our children will also be inspired by flights, Collins has logged over 537 hours in by the House of Representatives for their brave Americans, who like Col. Collins, have space. She served as pilot on STS±63 (Feb- achievements. dedicated their lives to the space program and ruary 2±11, 1995) and STS±84 (May 15±24, The SPEAKER pro tempore. The improving our knowledge of the world around 1997), and was the first woman Shuttle com- question is on the motion offered by us. Once again I would like to congratulate mander on STS±93 (July 22±27, 1999). the gentleman from Wisconsin (Mr. Col. Collins and NASA on their successful Women have come a long way since Alan SENSENBRENNER) that the House sus- mission in which they claimed a place in his- Shepard became the first American man to go pend the rules and agree to the resolu- tory and opened a new eye on the universe. into space in 1961. tion, H. Res. 267. H6770 CONGRESSIONAL RECORD — HOUSE August 2, 1999 The question was taken; and (two- or a weapon of mass destruction, or to dis- (d) LIMITATION ON FEES.—Not more than 15 thirds having voted in favor thereof) tribute by any means information pertaining percent of the sums authorized to be paid by the rules were suspended and the reso- to, in whole or in part, the manufacture or subsection (a) shall be paid to or received by lution was agreed to. use of an explosive, destructive device, or any agent or attorney for services rendered A motion to reconsider was laid on weapon of mass destruction, with the intent in connection with the recovery of such the table. that the teaching, demonstration, or infor- sums. Any person violating this subsection f mation be used for, or in furtherance of, an shall be fined not more than $1,000. activity that constitutes a Federal crime of FOR THE RELIEF OF GLOBAL EX- violence; or The SPEAKER pro tempore. Pursu- PLORATION AND DEVELOPMENT ‘‘(B) to teach or demonstrate to any person ant to the rule, the gentleman from CORPORATION, KERR-MCGEE the making or use of an explosive, a destruc- Florida (Mr. MCCOLLUM) and the gen- CORPORATION, AND KERR-MCGEE tive device, or a weapon of mass destruction, tlewoman from California (Ms. CHEMICAL, LLC or to distribute to any person, by any means, LOFGREN) each will control 20 minutes. Mr. MCCOLLUM. Mr. Speaker, I information pertaining to, in whole or in The Chair recognizes the gentleman move to suspend the rules and pass the part, the manufacture or use of an explosive, from Florida (Mr. MCCOLLUM). Senate bill (S. 606) for the relief of destructive device, or weapon of mass de- Global Exploration and Development struction, knowing that such person intends GENERAL LEAVE Corporation, Kerr-McGee Corporation, to use the teaching, demonstration, or infor- Mr. MCCOLLUM. Mr. Speaker, I ask and Kerr-McGee Chemical, LLC (suc- mation for, or in furtherance of, an activity unanimous consent that all Members cessor to Kerr-McGee Chemical Cor- that constitutes a Federal crime of vio- poration), and for other purposes, as lence.’’. may have 5 legislative days within amended. (b) PENALTIES.—Section 844 of title 18, which to revise and extend their re- The Clerk read as follows: United States Code, is amended— marks, and include extraneous mate- S. 606 (1) in subsection (a)— rial on the bill under consideration. Be it enacted by the Senate and House of Rep- (A) by striking ‘‘person who violates any of The SPEAKER pro tempore. Is there resentatives of the United States of America in subsections’’ and inserting the following: objection to the request of the gen- Congress assembled, ‘‘person who— tleman from Florida? ‘‘(1) violates any of subsections’’; SECTION 1. SATISFACTION OF CLAIMS AGAINST There was no objection. THE UNITED STATES. (B) by striking the period at the end and (a) PAYMENT OF CLAIMS.—The Secretary of inserting ‘‘; and’’; and Mr. MCCOLLUM. Mr. Speaker, I yield the Treasury shall pay, out of money not (C) by adding at the end the following: myself such time as I may consume. otherwise appropriated— ‘‘(2) violates subsection (p)(2) of section Mr. Speaker, section 1 of this legisla- 842, shall be fined under this title, impris- (1) to the Global Exploration and Develop- tion will right a long-standing wrong ment Corporation, a Florida corporation in- oned not more than 20 years, or both.’’; and corporated in Delaware, $9,500,000; (2) in subsection (j), by inserting ‘‘and sec- involving the Federal Government and (2) to Kerr-McGee Corporation, an Okla- tion 842(p)’’ after ‘‘this section’’. Global Exploration and Development homa corporation incorporated in Delaware, SEC. 3. SETTLEMENT OF CLAIMS OF MENOMINEE Corporation and Kerr-McGee Corpora- $10,000,000; and INDIAN TRIBE OF WISCONSIN. tion. Global and Kerr-McGee became (3) to Kerr-McGee Chemical, LLC, a lim- (a) PAYMENT.—The Secretary of the Treas- embroiled in a dispute with the Depart- ited liability company organized under the ury shall pay to the Menominee Indian Tribe ment of Interior more than 20 years laws of Delaware, $0. of Wisconsin, out of any funds in the Treas- ago when they were improperly denied (b) CONDITION OF PAYMENT.— ury of the United States not otherwise ap- an opportunity to participate in the (1) GLOBAL EXPLORATION AND DEVELOPMENT propriated, $32,052,547 for damages sustained CORPORATION.—The payment authorized by by the Menominee Indian Tribe of Wisconsin environmental assessment process of a subsection (a)(1) is in settlement and com- by reason of— potential mining site in the Osceola promise of all claims of Global Exploration (1) the enactment and implementation of Forest in Florida. and Development Corporation, as described the Act entitled ‘‘An Act to provide for a per In January 1991, I introduced legisla- in the recommendations of the United States capita distribution of Menominee tribal tion for the relief of Global and Kerr- Court of Federal Claims set forth in 36 Fed. funds and authorize the withdrawal of the McGee for damages incurred due to Cl. 776. Menominee Tribe from Federal jurisdiction’’, wrongful government actions. That bill (2) KERR-MCGEE CORPORATION AND KERR- approved June 17, 1954 (68 Stat. 250 et seq., MCGEE CHEMICAL, LLC.—The payment author- chapter 303); and was successfully referred to the U.S. ized by subsections (a)(2) and (a)(3) are in (2) the mismanagement by the United Court of Federal Claims which ruled settlement and compromise of all claims of States of assets of the Menominee Indian that the Government had, in fact, com- Kerr-McGee Corporation and Kerr-McGee Tribe held in trust by the United States be- mitted a wrongful act. The parties sub- Chemical, LLC, as described in the rec- fore April 30, 1961, the effective date of ter- sequently reached a settlement, the ommendations of the United States Court of mination of Federal supervision of the Me- terms of which are embodied in this Federal Claims set forth in 36 Fed. Cl. 776. nominee Indian Tribe of Wisconsin. legislation. (c) LIMITATION ON FEES.—Not more than 15 (b) EFFECT OF PAYMENT.—Payment of the percent of the sums authorized to be paid by amount referred to in subsection (a) shall be Mr. Speaker, I am hopeful that the subsection (a) shall be paid to or received by in full satisfaction of any claims that the passage of this legislation will bring any agent or attorney for services rendered Menominee Indian Tribe of Wisconsin may long awaited and long overdue relief in connection with the recovery of such have against the United States with respect for the parties involved. Protecting pri- sums. Any person violating this subsection to the damages referred to in that sub- vate rights and rectifying public shall be fined not more than $1,000. section. SEC. 2. CRIMINAL PROHIBITION ON THE DIS- wrongs are essential if we are truly a (c) REQUIREMENTS FOR PAYMENT.—The pay- government of, for, and by the people. TRIBUTION OF CERTAIN INFORMA- ment to the Menominee Indian Tribe of Wis- TION RELATING TO EXPLOSIVES, DE- The second section of S. 606, authored STRUCTIVE DEVICES, AND WEAPONS consin under subsection (a) shall— OF MASS DESTRUCTION. (1) have the status of a judgment of the by Senator DIANE FEINSTEIN, would (a) UNLAWFUL CONDUCT.—Section 842 of United States Court of Federal Claims for amend the Federal Criminal Code to title 18, United States Code, is amended by the purposes of the Indian Tribal Judgment prohibit any person from teaching or adding at the end the following: Funds Use or Distribution Act (25 U.S.C. 1401 demonstrating the making or use of an ‘‘(p) DISTRIBUTION OF INFORMATION RELAT- et seq.); and explosive, destructive device, or weap- ING TO EXPLOSIVES, DESTRUCTIVE DEVICES, (2) be made in accordance with the require- on of mass destruction. This conduct AND WEAPONS OF MASS DESTRUCTION.— ments of that Act on the condition that, of would be criminal if accompanied by ‘‘(1) DEFINITIONS.—In this subsection— the amounts remaining after payment of at- ‘‘(A) the term ‘destructive device’ has the torney fees and litigation expenses— either the intent that the teaching, same meaning as in section 921(a)(4); (A) at least 30 percent shall be distributed demonstrating, or information be used ‘‘(B) the term ‘explosive’ has the same on a per capita basis; and for or in furtherance of an activity meaning as in section 844(j); and (B) the balance shall be set aside and pro- that constitutes a Federal crime of vio- ‘‘(C) the term ‘weapon of mass destruction’ grammed to serve tribal needs, including lence, or knowing that a person intends has the same meaning as in section funding for— to use the teaching, demonstration, or 2332a(c)(2). (i) educational, economic development, and information for such activity. ‘‘(2) PROHIBITION.—It shall be unlawful for health care programs; and any person— (ii) such other programs as the cir- We live in dangerous times and some ‘‘(A) to teach or demonstrate the making cumstances of the Menominee Indian Tribe believe that in the next century we or use of an explosive, a destructive device, of Wisconsin may justify. may witness an unprecedented number August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6771 of acts of terror in the United States. Mr. Speaker, I reserve the balance of the Menominee Indian Tribe settle- We face the very real threat that a my time. ment, and the other provision is public weapon of mass destruction will be Ms. LOFGREN. Mr. Speaker, I yield in nature relative to disseminating on used against civilians in a major Amer- myself such time as I may consume. the Internet a do-it-yourself kit on how ican city in the next 10 or 20 years. We Mr. Speaker, this bill, which passed individuals can make their own weap- certainly pray that does not happen, both the Subcommittee on Immigra- ons of mass destruction. So they all but we must do everything in our tion and Claims and the full Com- should become law, and I support this power to reduce the threat of terrorism mittee on the Judiciary during the legislation today. on a massive scale. 105th Congress, and passed the full Sen- However, I am disturbed at the prac- ate this year, will pay $10 million and tice of the other body in mixing public b 1430 $9,500,000 respectively to Kerr-McGee and private legislation in the same bill, No one should be allowed to dis- Corporation and Global Exploration and I would hope that the consider- tribute bomb-making information with and Development Corporation based on ation of this bill today as a mixture of the intent that it be based and be used the recommendation made by the both public legislation and private leg- to commit a violent crime. This legis- Court of Claims as to the amounts eq- islation will not be viewed as a prece- lation has been carefully crafted to uitably due those companies. dent for future mixings by either this prohibit and punish conduct, not This legislation is intended to resolve body or the other body. speech, and I am quite confident it will litigation between the Federal Govern- I would hope that this motion to sus- withstand constitutional challenge. ment and these corporations. This liti- pend the rules will be overwhelmingly Senator FEINSTEIN worked with the gation was based upon the corpora- agreed to so that we can get these Justice Department on the constitu- tions’ allegations that the United three items out of the way and enacted tionality, and they support it. States improperly failed to grant or ap- into law, but I would hope we would be With the Internet, it has become all prove leases or to allow phosphate min- a little bit more careful procedurally too easy to disseminate bomb-making ing by Global and Kerr-McGee Corpora- as we deal with both public and private information to anyone with a personal tions in Osceola National Forest. legislation in the future. computer. While we cannot and should After a 6-week trial before the Court Ms. LOFGREN. Mr. Speaker, I yield not inhibit constitutionally-protected of Federal Claims, but before the court myself such time as I may consume to speech, we can and should do every- could issue an opinion, the parties simply respond that I think the gen- thing in our power to prohibit the dis- agreed to a joint stipulation of settle- tleman from Wisconsin’s point is well semination of bomb-making informa- ment and submitted this stipulation to taken, I concur, and I also agree we tion to commit a violent crime. the court. On November 18, 1996, the should move forward today but we Similar or virtually identical provi- court published its recommendation to ought to be more vigilant. I appreciate sions were passed on the floor of this Congress that the disputes be settled his remarks. House were passed previously and I am for the amounts set forth in this bill. Mr. Speaker, I have no further re- confident this will now finally become The Court’s recommendation to Con- quests for time, and I yield back the law if we pass it today. gress was not based upon the finding of balance of my time. Now, I turn to section 3 of this bill. any wrongdoing by the United States Mr. MCCOLLUM. Mr. Speaker, I yield S.606 additionally authorizes the U.S. in its dealings with Global or the Kerr- myself such time as I may consume to Government to finally make good on a McGee Corporations. Rather, the conclude. $32 million court settlement with the court’s recommendation was based I think it has been well stated what Menominee Indian Tribe of Wisconsin. upon and limited to a finding that an is in this legislation. It is good legisla- The history of this settlement can be equitable claim against the United tion. It is three separate provisions traced back to 1954, when the Federal States existed and it was in the best in- that should become law, and I urge its Government terminated the tribe’s terest of all parties to settle this claim adoption. Mr. Speaker, I have no further re- Federal trust status and the Bureau of for the amounts set forth in the bill. Indian Affairs grossly mismanaged Mr. Speaker, I urge that my col- quests for time, and I yield back the many of the tribe’s assets. leagues vote in favor of passing S. 606. balance of my time. The SPEAKER pro tempore (Mr. In 1967, the tribe filed a lawsuit chal- Mr. Speaker, I would note that the STEARNS). The question is on the mo- lenging this determination and seeking section referred to in the bill by my tion offered by the gentleman from damages. After decades of litigation, in colleague, the chairman of the Sub- Florida (Mr. MCCOLLUM) that the 1993 Congress passed a congressional committee on Crime, relative to pen- House suspend the rules and pass the reference directing the U.S. Claims alties for teaching individuals weapons Court to determine what damages, if Senate bill, S. 606, as amended. of mass destruction may or may not The question was taken; and (two- any, were owed the tribe. prove violative of the first amendment. thirds having voted in favor thereof) Finally, in August of last year, the But clearly a very strong effort has the rules were suspended and the Sen- tribe and the Federal Government pre- been made to comport with the re- ate bill, as amended, was passed. sented a settlement agreement to the quirements of the first amendment, A motion to reconsider was laid on Claims Court paying the tribe $32 mil- and I would urge my colleagues to sup- the table. lion. That settlement was approved by port the measure. We will certainly f the court. These dollars will only be find out soon enough whether our ef- used to improve education, health care, forts to succeed in that regard are suc- ARCTIC TUNDRA HABITAT and economic opportunities for the cessful or not when the measure is EMERGENCY CONSERVATION ACT tribe and the areas surrounding the challenged in court. Mr. SAXTON. Mr. Speaker, I move to reservation. Mr. Speaker, I reserve the balance of suspend the rules and pass the bill I particularly want to commend the my time. (H.R. 2454) to assure the long-term con- gentleman from Wisconsin (Mr. GREEN) Mr. MCCOLLUM. Mr. Speaker, I yield servation of mid-continent light geese and the gentleman from Wisconsin (Mr. 2 minutes to the gentleman from Wis- and the biological diversity of the eco- SENSENBRENNER) for their work in this consin (Mr. SENSENBRENNER). system upon which many North Amer- particular area. Mr. SENSENBRENNER. Mr. Speak- ican migratory birds depend, by direct- In closing, Mr. Speaker, though these er, I thank the gentleman from Florida ing the Secretary of the Interior to im- three provisions are somewhat related, for yielding me this time. plement rules to reduce the overabun- and as such a good illustration of the Let me just put a word of procedural dant population of mid-continent light more open rules of process employed by caution relative to how this bill is geese, as amended. the other body, each of the legislative being considered. All three of the pro- The Clerk read as follows: initiatives contained within S.606 are visions of this bill have merit and H.R. 2454 straightforward and relatively non- should be enacted into law on their Be it enacted by the Senate and House of Rep- controversial. I ask for the support of own. Two of them are private bills in resentatives of the United States of America in this bill. nature, the Kerr-McGee settlement and Congress assembled, H6772 CONGRESSIONAL RECORD — HOUSE August 2, 1999 SECTION 1. SHORT TITLE. under section 102(2)(C) of the National Environ- Wildlife Service withdrew these two This Act may be cited as the ‘‘Arctic Tundra mental Policy Act of 1969 (42 U.S.C. 4332(2)(C)); regulations on June 17. While the judge Habitat Emergency Conservation Act’’. and did not rule on the merits of the regu- SEC. 2. FINDINGS AND PURPOSES. (C) May 15, 2001. lations, the Service was instructed to (c) RULE OF CONSTRUCTION.—This section (a) FINDINGS.—The Congress finds the fol- complete an Environmental Impact lowing: shall not be construed to limit the authority of (1) The winter index population of mid-con- the Secretary or the Service to issue rules, under Statement. This process will take be- tinent light geese was 800,000 birds in 1969, another law, to regulate the taking of mid-con- tween 12 and 18 months to complete, while the total population of such geese is more tinent light geese. and during that time the tundra will than 5,200,000 birds today. SEC. 4. DEFINITIONS. continue to be systematically de- (2) The population of mid-continent light In this Act: stroyed by an ever-increasing popu- geese is expanding by over 5 percent each year, (1) MID-CONTINENT LIGHT GEESE.—The term lation of light geese. and in the absence of new wildlife management ‘‘mid-continent light geese’’ means Lesser snow This is a simple bill. It will reinstate actions it could grow to more than 6,800,000 geese (Anser caerulescens caerulescens) and the two regulations already carefully breeding light geese in 3 years. Ross’ geese (Anser rossii) that primarily migrate evaluated, approved and then with- (3) The primary reasons for this unprece- between Canada and the States of Alabama, Ar- dented population growth are— drawn by the Fish and Wildlife Service. kansas, Colorado, Illinois, Indiana, Iowa, Kan- States would have the flexibility to (A) the expansion of agricultural areas and sas, Kentucky, Louisiana, Michigan, Min- the resulting abundance of cereal grain crops in nesota, Mississippi, Missouri, Montana, Ne- allow the use of electronic goose calls the United States; braska, New Mexico, North Dakota, Ohio, Okla- and unplugged shotguns, and to imple- (B) the establishment of sanctuaries along the homa, South Dakota, Tennessee, Texas, Wis- ment conservation orders to take mid- United States flyways of migrating light geese; consin, and Wyoming. continent light geese. and ECRETARY.—The term ‘‘Secretary’’ means H.R. 2454 enacts these regulations in (C) a decline in light geese harvest rates. (2) S (4) As a direct result of this population explo- the Secretary of the Interior. their identical form. In addition, the sion, the Hudson Bay Lowlands Salt-Marsh eco- (3) SERVICE.—The term ‘‘Service’’ means the bill sunsets when the Service has com- system in Canada is being systematically de- United States Fish and Wildlife Service. pleted both its Environmental Impact stroyed. This ecosystem contains approximately The SPEAKER pro tempore. Pursu- Statement and a new rule on mid-con- 135,000 acres of essential habitat for migrating ant to the rule, the gentleman from tinent light geese. In short, this is an light geese and many other avian species. Biolo- New Jersey (Mr. SAXTON) and the gen- interim solution to a very serious and 1 gists have testified that ⁄3 of this habitat has tleman from California (Mr. GEORGE evergrowing environmental problem. been destroyed, 1⁄3 is on the brink of devasta- MILLER) each will control 20 minutes. Mr. Speaker, I urge an ‘‘aye’’ vote. tion, and the remaining 1⁄3 is overgrazed. Mr. Speaker, I reserve the balance of (5) The destruction of the Arctic tundra is The Chair recognizes the gentleman having a severe negative impact on many avian from New Jersey (Mr. SAXTON). my time. species that breed or migrate through this habi- Mr. SAXTON. Mr. Speaker, I yield Mr. GEORGE MILLER of California. tat, including the following: myself such time as I may consume. Mr. Speaker, I yield myself such time (A) Canada Goose. (Mr. SAXTON asked and was given as I may consume. (B) American Wigeon. permission to revise and extend his re- (Mr. GEORGE MILLER of California (C) Dowitcher. asked and was given permission to re- (D) Hudsonian Godwit. marks.) Mr. SAXTON. Mr. Speaker, I am vise and extend his remarks.) (E) Stilt Sandpiper. Mr. GEORGE MILLER of California. pleased that we are considering H.R. (F) Northern Shoveler. Mr. Speaker, I rise in support of this (G) Red-Breasted Merganser. 2454, the Arctic Tundra Habitat Emer- legislation with the changes that have (H) Oldsquaw. gency Conservation Act. This bipar- been made in terms of making this pro- (I) Parasitic Jaeger. tisan legislation addresses the dev- (J) Whimbrel. gram available for the next two hunt- (K) Yellow Rail. astating impact of an exploding popu- ing seasons. I think that puts the kind (6) It is essential that the current population lation of light geese, more commonly of limitation on it that we can monitor of mid-continent light geese be reduced by 50 known as snow geese. and will make it a well-run program. percent by the year 2005 to ensure that the frag- Included within the Members’ folders ile Arctic tundra is not irreversibly damaged. In game bird and wildlife management, is a chronology on the issue. The U.S. some times our best efforts to restore wildlife (b) PURPOSES.—The purposes of this Act are Fish and Wildlife Service has been the following: populations can go awry and produce unin- (1) To reduce the population of mid-continent monitoring snow geese populations for tended consequences, and that seems to be light geese. over 50 years. During that time the the case with mid-continent light geese. (2) To assure the long-term conservation of mid-continent population, that is the No reasonable field biologist who has exam- mid-continent light geese and the biological di- population that frequents the Mis- ined light geese census data disputes the fact versity of the ecosystem upon which many sissippi flyway, has increased from that the population of light geese has shot up North American migratory birds depend. 800,000 birds in 1969 to more than 5.2 dramatically over the past decade to a point SEC. 3. FORCE AND EFFECT OF RULES TO CON- million geese today. In the absence of TROL OVERABUNDANT MID-CON- now where the birds are virtually eating them- TINENT LIGHT GEESE POPU- new wildlife management actions, selves out of their arctic and subarctic nesting LATIONS. there will be more than 6 million habitats. Our own management actions, in- (a) FORCE AND EFFECT.— breeding light geese in 3 years. cluding the establishment of protective areas (1) IN GENERAL.—The rules published by the This unprecedented population explo- Service on February 16, 1999, relating to use of and abundance of cereal grain crops, are part- sion is creating serious problems. The ly to blame, but so is the natural wariness and additional hunting methods to increase the har- geese appetite for Arctic coastal tun- vest of mid-continent light geese (64 Fed. Reg. reproductive capacity of this species. 7507–7517) and the establishment of a conserva- dra has created a strip of desert And so, we are left with the unfortunate re- tion order for the reduction of mid-continent stretching for 2,000 miles in Canada. ality that in one or anotherÐeither through in- light goose populations (64 Fed. Reg. 7517–7528), These birds are world-class foragers, creased human harvest or natural mortalityÐ shall have the force and effect of law. and their favorite foods are found in population of light geese will be culled in order (2) PUBLIC NOTICE.—The Secretary, acting the 135,000 acres that comprise the to prevent widespread habitat deterioration. It through the Director of the Service, shall take Hudson Bay lowland salt marsh eco- is a regrettable circumstance which offers no such action as is necessary to appropriately no- system. These geese are literally eat- simple, painless solutions. tify the public of the force and effect of the ing themselves out of house and home rules referred to in paragraph (1). H.R. 2454 would authorize two emergency (b) APPLICATION.—Subsection (a) shall apply and, in the process, destroying thou- regulations proposed earlier this year by the only during the period that— sands of acres of irreplaceable nesting Fish and Wildlife Service to increase the har- (1) begins on the date of the enactment of this habitat. These wetlands are crucial to vest of light geese in States within either the Act; and the survival not only of light geese but Mississippi and Central flyways. These regula- (2) ends on the latest of— to dozens of other species. tions were broadly supported by a wide range (A) the effective date of rules issued by the On February 16, the U.S. Fish and Service after such date of enactment to control of State and private wildlife and conservation overabundant mid-continent light geese popu- Wildlife Service issued two final rules organizations, including Ducks Unlimited and lations; to reduce this ever-expanding popu- the National Audubon Society. (B) the date of the publication of a final envi- lation of light geese. Sadly, in response These regulations were withdrawn earlier ronmental impact statement for such rules to a legal challenge, the U.S. Fish and this year by the Fish and Wildlife Service after August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6773 a Federal appeals court ruled that the Service particularly the thousands of orphaned, mal- In fact, in the end, the Service issued two needed to complete a full environmental im- nourished and eventually dead goslings who modest rules which would have increased the pact statement (EIS) regarding the proposed cannot survive on barren tundra. harvest of light geese by allowing hunters to emergency actions. I commend the Service for Together with expected population in- use electronic calls and unplugged shotguns. voluntary withdrawing their proposed regula- creases is another vexing problem: recovery While these changes by themselves would not tions and for recognizing the need to develop of habitat, destroyed by overfeeding at this far- save the fragile Arctic ecosystem, they were a a full EIS, and urge the Service to complete north latitude, is expected to take at least 15 responsible step in the right direction. this EIS at the earliest possible date. years; it will take even longer if some of the Once enacted these rules will reduce the I think it important to note for members that acreage continues to be foraged by geese population of mid-continent geese and more Congress is legislating in this matter solely be- during the recovery period. importantly they will slow the destruction of the cause all other administrative options available The U.S. Fish and Wildlife Service has been Arctic Tundra that is being transformed from to the ServiceÐunder NEPA or any other stat- working for a few years in partnership with the thickly vegetated wetlands to a virtual desert. uteÐhad been exhausted, and that the only Canadian Wildlife Service, several depart- In La Prouse Bay in Canada, which is a crit- remedy remaining was a legislative fix. This is ments of Fish and Game, Ducks Unlimited, ical nesting site, more than 60 percent of the an important factor driving the need for this the Audubon Society and other non-govern- salt-marsh vegetation has already been de- legislation. mental entities to try to address the problem. stroyed or damaged to the point where it is I do appreciate the helpful modifications In February of this year, the Fish and Wildlife unable to nourish birds. Regrettable, in response to a court order, made to the bill in the Resources Committee. Service issued two final rules to authorize the the Fish and Wildlife Service withdrew their Even improved, the bill does contain two trou- use of additional hunting methods to reduce regulations and they are now completing an bling provisions of which I am still concerned. the population of snow geese so that a rea- Environmental Impact Statement on mid-con- First, the bill would waive all procedural re- sonable population can survive on a viable habitat. The goal was to reduce the number of tinent light geese. quirements under the National Environmental While that occurs, the Arctic Tundra will Policy Act (NEPA). and second, the bill au- mid-continent light geese in the first year by 975,000 using additional hunting methods continue to be destroyed an acre at a time thorizes the use of otherwise outlawed hunting and these essential wetlands which provide practices, notably the use of electronic calling carefully studied and approved by the Fish and Wildlife Service. life for literally hundreds of avian species, be- devices and un-plugged shotguns. sides geese, will be irreplaceably lost. However, while I personally disagree with Unfortunately, the Service withdrew the rules in the aftermath of a court challenge. There is a better way. H.R. 2454 will rein- the Congress passing legislation to waive state the Fish and Wildlife Service's rules in NEPA or to authorize the otherwise illegal The result of inaction, however, would be dev- astating. Chairman Saxton was correct to their identical form. It is a temporary solution hunting methods, and while I remain con- and it will sunset no later than May 15, 2001. cerned that these regulations may be too press for a legislative solution to expedite the recovery process by implementing the Serv- This legislation is strongly supported by the broad, I realize that under the constraints of Administration, the States, and by most of the ice's rules, as the bill before us does today. It this specific emergency situation, such provi- conservation community including Ducks Un- is clear that human decision making has con- sions may be warranted, if not necessary. limited and the National Audubon Society. Moreover, I am pleased that the Resources tributed mightily to the light geese problem In closing, let me quote from the Chairman Committee amended the bill to include an ex- through increased agricultural production, of the Arctic Goose Habitat Working Group, piration date of May 15, 2001, or earlier if the sanctuary designation, and reduction in har- Dr. Bruce Batt, who testified that ``the finite Service files its final EIS before that date, to vest rates. amount of suitable goose breeding habitat is Mr. Speaker, the bill before us takes an af- limit the duration of this emergency action. rapidly being consumed and eventually will be firmative and humane step to help assure the And while I believe the Fish and Wildlife lost. Every technical, Administrative, legal and long-term survival of mid-continent light geese Service will act in good faith to complete the political delay just adds to the problem. There and the conservation of the habitat upon EIS at the earliest possible date, I also believe is real urgency here as we may not be far which they and other species depend. I urge that a fixed expiration date is necessary to en- from the point where the only choice is to my colleagues to support this important bill. record the aftermath of the crash of goose sure that a temporary action does not inad- Mr. YOUNG of Alaska. Mr. Speaker, as co- numbers with the related ecosystem destruc- vertently become permanent. I look forward to author of H.R. 2454, I rise in strong support of tion with all the other species that live there the Service completing its EIS, and I hope that the Arctic Tundra Habitat Emergency Con- this additional analysis will provide other alter- with geese.'' servation Act. The fundamental goal of this I urge an aye vote on H.R. 2454, a bipar- natives to address the overabundance of light legislation is to stop the destruction of the Ca- geese in a less indiscriminate manner and tisan bill that will save critical Arctic wetlands. nadian Arctic Tundra by a growing population Mr. GEORGE MILLER of California. without requiring Congress to pass legislation. of mid-continent light geese. If we do not act, Mr. DINGELL. Mr. Speaker, I rise in strong Mr. Speaker, I have no further requests these valuable wetlands may be lost forever. for time, and I yield back the balance support of the legislation being offered today Three years ago, the U.S. Fish and Wildlife by the gentleman from New Jersey [Mr. of my time. Service joined with the Canadian Wildlife Mr. SAXTON. Mr. Speaker, I have no SAXTON]. Service, Ducks Unlimited, the National Audu- H.R. 2545, the ``Arctic Tundra Habitat Emer- further requests for time, and I yield bon Society and several State and Provincial back the balance of my time. gency Conservation Act,'' quite simply is trying Fish and Game Departments in forming the The SPEAKER pro tempore. The to head off an unmitigated conservation dis- Arctic Goose Habitat Working Group. After question is on the motion offered by aster for white geese, including greater and carefully studying the problem, the Group the gentleman from New Jersey (Mr. lesser snow geese and Ross' geese. During issued a report that recommended that the SAXTON) that the House suspend the the past three decades, these mid-continent population of mid-continent light geese, which rules and pass the bill, H.R. 2454, as snow geese species populations have literally now numbers more than five million birds, be amended. exploded, from an estimated 800,000 in 1969 cut in half within six years. The question was taken; and (two- to more than five million today. This dramatic The working group suggested that the food thirds having voted in favor thereof) increase has resulted in the devastation of supply be reduced along U.S. Flyways, baiting the rules were suspended and the bill, nearly 50,000 acres of snow geese habitat of light geese be permitted, sharpshooters be as amended, was passed. around Canada's Hudson Bay. This tundra hired to kill large numbers of geese and addi- A motion to reconsider was laid on habitat, most of which comprises a coastal salt tional hunting methods such as electronic the table. marsh, is vital for nesting. As the snow geese goose calls and unplugged shotguns be uti- f proliferate and consume this habitat, other lized. populations of birds are also placed at risk by The Fish and Wildlife Service carefully re- ARIZONA STATEHOOD AND ENA- this loss of habitat. viewed these recommendations and it con- BLING ACT AMENDMENTS OF 1999 A special report issued in January 1998, by ducted an exhaustive analysis of the various Mr. SAXTON. Mr. Speaker, I move to Ducks Unlimited provides a good example of wildlife management options to reduce the suspend the rules and pass the bill the depth and the breadth of the problem. In population. It flatly rejected the flawed idea of (H.R. 747) to protect the permanent studies conducted in Churchill, Manitoba, ``letting nature run its course'' because it trust funds of the State of Arizona there were 2,000 nesting pairs in 1968. In would cause an environmental catastrophe from erosion due to inflation and mod- 1997, that number grew to more than 40,000 and many of the suggestions of the Working ify the basis on which distributions are pairs. The result is a cruel fate for the birds, Group were not implemented. made from those funds. H6774 CONGRESSIONAL RECORD — HOUSE August 2, 1999 The Clerk read as follows: 747, a bill to amend the Arizona Ena- been explained. Let me just say that it H.R. 747 bling Act of 1910 to allow the State of has been approved by the Governor. It Be it enacted by the Senate and House of Rep- Arizona to manage its State trust dif- is supported by the entire Arizona dele- resentatives of the United States of America in ferently. gation as well. Congress assembled, The bill was introduced by our col- The proposition on the ballot that SECTION 1. SHORT TITLE. league, the gentleman from Arizona was considered in the State of Arizona This Act may be cited as the ‘‘Arizona (Mr. STUMP), who we will hear from in makes very minor changes to the 1910 Statehood and Enabling Act Amendments of just a moment. The State of Arizona, Enabling Act. I urge its support. 1999’’. like many other States, receives reve- I would also like to thank the Arizona dele- SEC. 2. PROTECTION OF TRUST FUNDS OF STATE nues generated from lands that were gation, Mr. PASTOR, Mr. KOLBE, Mr. OF ARIZONA. HAYWORTH, Mr. SALMON and Mr. SHADEGG for (a) IN GENERAL.—Section 28 of the Act of granted to the State upon admission to June 20, 1910 (36 Stat. 574, chapter 310) is the Union. These revenues contribute their support and cosponsorship of H.R. 747, amended in the first paragraph by adding at funds to schools and other public insti- the Arizona Statehood and Enabling Act the end the following: ‘‘The trust funds (in- tutions. Amendments of 1999. cluding all interest, dividends, other income, As currently provided for in the Mr. Speaker, H.R. 747 amends the 1910 act and appreciation in the market value of as- original Enabling Act, the funds must of Congress that granted the State of Arizo- sets of the funds) shall be prudently invested pay all of their own income. This cre- na's entry into the Union. This bill makes two on a total rate of return basis. Distributions ates a problem because it does not ac- minor changes to the Arizona Enabling Act re- from the trust funds shall be made as pro- lating to the administration of state trust funds. vided in Article 10, Section 7 of the Constitu- count for or adjust to rates of infla- tion. Moreover, the current Enabling This legislation is supported by the Governor tion of the State of Arizona.’’. of Arizona, our State Treasurer, State Attorney (b) CONFORMING AMENDMENTS.— Act has a number of investment re- (1) Section 25 of the Act of June 20, 1910 (36 strictions. While these restrictions General, State Legislature, and most impor- Stat. 573, chapter 310), is amended in the pro- may have been appropriate at one tantly, the citizens of Arizona through their ap- viso of the second paragraph by striking time, they are outdated and no longer proval of this change through the ballot proc- ‘‘the income therefrom only to be used’’ and necessary or advisable. ess. inserting ‘‘distributions from which shall be On November 3, 1998, Arizona voters In order to make the necessary made in accordance with the first paragraph passed Proposition 102. This ballot measure changes to allow the State trust fund of section 28 and shall be used’’. amended the Arizona constitution to authorize to be managed differently, it is nec- (2) Section 27 of the Act of June 20, 1910 (36 the investment of Permanent Land Trust Fund essary for Congress to approve and Stat. 574, chapter 310), is amended by strik- monies in equity securities. These trust fund ing ‘‘the interest of which only shall be ex- amend the Arizona Enabling Act. monies derive from the sale of State Trust pended’’ and inserting ‘‘distributions from b which shall be made in accordance with the 1445 Lands granted to Arizona by the federal gov- first paragraph of section 28 and shall be ex- This legislation is almost identical ernment at statehood. The proposition allows pended’’. to a bill that we passed the last Con- the State of Arizona to capitalize on the higher SEC. 3. USE OF MINERS’ HOSPITAL ENDOWMENT gress that amended the New Mexico return rates offered through equity securities. FUND FOR ARIZONA PIONEERS’ This would improve management in the State HOME. Enabling Act. This is an important piece of legislation that will benefit and assist in the generation of more revenues (a) IN GENERAL.—Section 28 of the Act of for the beneficiaries by gaining authorization to June 20, 1910 (36 Stat. 574, chapter 310) is the State of Arizona. I urge my col- amended in the second paragraph by insert- leagues to support it. invest part of the fund in stocks and to invest ing before the period at the end the fol- Mr. Speaker, I reserve the balance of some earnings to offset inflation. lowing: ‘‘, except that amounts in the Min- my time. The Arizona Statehood and Enabling Act ers’ Hospital Endowment Fund may be used Mr. GEORGE MILLER of California. Amendments legislation will also make a much for the benefit of the Arizona Pioneers’ Mr. Speaker, I yield myself such time needed and essential change to the funding of Home’’. as I may consume. the Arizona Pioneers' Home. This state-oper- (b) EFFECTIVE DATE.—The amendment Mr. Speaker, I rise in support of this ated facility has been dedicated to the long- made by subsection (a) shall be deemed to term care of miners and homesteaders since have taken effect on June 20, 1910. legislation. 1911. Inadequate funds exist in the Miners' SEC. 4. CONSENT OF CONGRESS TO AMEND- Mr. Speaker, the Act of June 20, 1910, MENTS TO CONSTITUTION OF STATE which provided statehood for Arizona, Hospital Endowment Fund to build and oper- OF ARIZONA. granted federally owned lands to the ate a separate hospital for disabled miners. Congress consents to the amendments to new State and created a permanent Disabled miners have been cared for at the the Constitution of the State of Arizona pro- trust fund into which revenues from Arizona Pioneers' Home, but current law pro- posed by Senate Concurrent Resolution 1007 these lands are invested. However, the hibits the commingling of funds associated of the 43rd Legislature of the State of Ari- with state trust lands. H.R. 747 would allow zona, Second Regulator Session, 1998, enti- act also placed certain limitations on tled ‘‘Senate Concurrent Resolution request- the fund which have worked over time the Arizona Pioneers' Home to expend monies ing the Secretary of State to return Senate to prevent the State from managing from the Miners' Hospital Endowment Fund to Concurrent Resolution 1018, Forty-Third the trust fund as profitably as possible. continue care for miners who meet the statu- Legislature, First Regular Session, to the H.R. 747 will alter the terms of the tory admission requirements. Legislature and submit the Proposition con- trust fund and correct the problem. Mr. Speaker, H.R. 747 is a bill that is sup- tained in Sections 3, 4, and 5 of this Resolu- These changes have been approved by ported by bipartisan interests in the State of tion of the proposed amendments to Article the voters in Arizona, but because they Arizona and most importantly, the citizens of IX, Section 7, Article X, Section 7, and Arti- Arizona. I ask my colleagues for favorable cle XI, Section 8, Constitution of Arizona, to alter the original statehood act, Con- gress must approve them as well. This consideration of this legislation. the voters; relating to investment of State Mr. SAXTON. Mr. Speaker, I yield monies’’, approved by the voters of the State measure is almost identical to legisla- back the balance of my time. of Arizona on November 3, 1998. tion approved in a previous Congress Mr. GEORGE MILLER of California. The SPEAKER pro tempore. Pursu- for the State of New Mexico. Mr. Speaker, I yield back the balance ant to the rule, the gentleman from It is noncontroversial, and I urge my of my time. New Jersey (Mr. SAXTON) and the gen- colleagues to support the bill. The SPEAKER pro tempore (Mr. tleman from California (Mr. GEORGE Mr. Speaker, I reserve the balance of STEARNS). The question is on the mo- MILLER) each will control 20 minutes. my time. tion offered by the gentleman from The Chair recognizes the gentleman Mr. SAXTON. Mr. Speaker, I yield New Jersey (Mr. SAXTON) that the from New Jersey (Mr. SAXTON). such time as he may consume to the House suspend the rules and pass the Mr. SAXTON. Mr. Speaker, I yield gentleman from Arizona (Mr. STUMP). bill, H.R. 747. myself such time as I may consume. Mr. STUMP. Mr. Speaker, I thank The question was taken. (Mr. SAXTON asked and was given the gentleman for yielding me the Mr. SAXTON. Mr. Speaker, on that I permission to revise and extend his re- time. demand the yeas and nays. marks.) Mr. Speaker, I want to thank the The yeas and nays were ordered. Mr. SAXTON. Mr. Speaker, I am gentleman from Utah (Mr. HANSEN) for The SPEAKER pro tempore. Pursu- pleased that we are considering H.R. all his hard work on this. The bill has ant to clause 8 of rule XX and the August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6775 Chair’s prior announcement, further United States for the construction of a In short, jurisdiction over this site proceedings on this motion will be visitor center. for the visitor center must be trans- postponed. The visitor center facility would ferred from the National Park Service f jointly serve the F.D.R. Historic Site to the National Archives and Records and the Franklin D. Roosevelt Presi- Administration before we can begin VISITOR CENTER FOR HOME OF dential Library, located in Hyde Park, construction on this long-awaited vis- FRANKLIN D. ROOSEVELT NA- New York. The land transferred is au- itor center. TIONAL HISTORIC SITE thorized to be not more than one acre. Mr. Speaker, Franklin D. Roosevelt, Mr. SAXTON. Mr. Speaker, I move to H.R. 1104 is the result of efforts by our Nation’s 32nd President, lived at suspend the rules and pass the bill the gentleman from New York (Mr. his home in Hyde Park, New York, (H.R. 1104) to authorize the Secretary SWEENEY) and retired Congressman commonly referred to as of the Interior to transfer administra- Jerry Solomon, also from New York. ‘‘Springwood,’’ for most of his young tive jurisdiction over land within the This bill is supported by the adminis- life. boundaries of the Home of Franklin D. tration. While Governor of New York and as Roosevelt National Historic Site to the I urge my colleagues to support the President, Mr. Roosevelt frequented Springwood often and entertained Archivist of the United States for the bill. many dignitaries, including Winston construction of a visitor center. Mr. Speaker, I reserve the balance of my time. Churchill and King George VI. The Clerk read as follows: Franklin D. Roosevelt was involved H.R. 1104 Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself such time in the planning and construction of the Be it enacted by the Senate and House of Rep- Presidential library at the site. The resentatives of the United States of America in as I may consume. Mr. Speaker, I rise in support of this F.D.R. Library is the only Presidential Congress assembled, library that was used by a sitting legislation. H.R. 1104 is a minor house- SECTION 1. VISITOR CENTER FOR HOME OF President for official duty. FRANKLIN D. ROOSEVELT NATIONAL keeping measure to authorize the Na- F.D.R. was intent on preserving his HISTORIC SITE, HYDE PARK, NEW tional Park Service to transfer juris- YORK. papers and mementos for future gen- diction over approximately one acre of erations to cherish and study. Included (a) TRANSFER OF ADMINISTRATIVE JURISDIC- land to the National Archives to enable TION.—The Secretary of the Interior may in his collection are 44,000 books, pho- transfer to the Archivist of the United construction of a joint visitor center tographs, Roosevelt’s White House States administrative jurisdiction over land facility at the Franklin D. Roosevelt desk and chair, and his collection of located in the Home of Franklin D. Roo- National Historic Site in Hyde Park, naval prints, models, and many paint- sevelt National Historic Site, for use by the NY. ings. Archivist for the construction of a visitor It is our understanding that the site The F.D.R. Library became the site center facility to jointly serve the Home of in question has been mutually agreed of the broadcast of Mr. Roosevelt’s pop- Franklin D. Roosevelt National Historic Site upon by the two agencies and that the ular fireside chats, and President Roo- and the Franklin D. Roosevelt Presidential funds have already been appropriated Library, located in Hyde Park, New York. sevelt would regularly hold conferences to construct the joint-use facility. (b) CONDITIONS OF TRANSFER.— with world leaders in his personal (1) PROTECTION OF HISTORIC SITE.—The Mr. Speaker, both the National Park study. transfer authorized in subsection (a) shall be Service and the National Archives and This legislation enjoys widespread subject to an agreement between the Sec- Records Administration testified in support of the National Park Service, retary and the Archivist that shall include favor of this legislation, and we are un- the National Archives and Records Ad- such provisions for the protection of the aware of any controversy and we sup- ministration, the town of Hyde Park, Home of Franklin D. Roosevelt National His- port the legislation. the Eleanor Roosevelt Site at Val-Kill, toric Site and the joint use of the facility to Mr. Speaker, I yield back the balance the Franklin and Eleanor Roosevelt In- be constructed as the Secretary and the Ar- stitute, Historic Hudson, and the Hud- chivist may consider necessary. of my time. son River Valley Greenway. (2) CONSIDERATION.—A transfer made pur- Mr. SAXTON. Mr. Speaker, I yield suant to subsection (a) shall be made with- such time as he may consume to the All of these organizations and com- out consideration or reimbursement. gentleman from New York (Mr. munities have dedicated their time and (3) TERMINATION.—If use by the Archivist of SWEENEY) the author of the bill. expertise to ensure that this visitor the land referred to in subsection (a) is ter- Mr. SWEENEY. Mr. Speaker, I thank center becomes a reality, and I thank minated by the Archivist at any time, ad- the gentleman from New Jersey for them all for their support. ministrative jurisdiction over the land shall yielding me the time and for his sup- I look forward to seeing many Ameri- automatically revert to the Department of port. cans and all of those who would travel the Interior. I thank the gentleman from Cali- and venture to Hyde Park, New York, (c) DESCRIPTION OF LAND.—The land re- fornia (Mr. MILLER) for his support. to seeing the visitor center finally be- ferred to in subsection (a) shall consist of come a reality at the Franklin D. Roo- not more than 1 acre of land as may be mu- Finally, I would like to thank the tually agreed to by the Secretary and the gentleman from Utah (Mr. HANSEN), sevelt Historic Site. Archivist and more particularly described in the subcommittee chair, for his sup- Mr. SAXTON. Mr. Speaker, I have no the agreement required under subsection port. further requests for time, and I yield (b)(1). I am proud to rise in support of H.R. back the balance of my time. The SPEAKER pro tempore. The The SPEAKER pro tempore. Pursu- 1104, the legislation I introduced to question is on the motion offered by ant to the rule, the gentleman from transfer administrative jurisdiction the gentleman from New Jersey (Mr. New Jersey (Mr. SAXTON) and the gen- from the National Park Service to the SAXTON) that the House suspend the tleman from California (Mr. GEORGE National Archives for the construction rules and pass the bill, H.R. 1104. MILLER) each will control 20 minutes. of a visitor center at the Franklin R. The question was taken; and (two- The Chair recognizes the gentleman Roosevelt National Historic Site. thirds having voted in favor thereof) from New Jersey (Mr. SAXTON). The much anticipated visitor center the rules were suspended and the bill (Mr. SAXTON asked and was given will serve three area National Historic was passed. permission to revise and extend his re- Sites and will be a great addition to A motion to reconsider was laid on marks.) the rich history of the Nation’s Roo- the table. Mr. SAXTON. Mr. Speaker, I yield sevelt era and that of New York’s Hud- f myself such time as I may consume. son Valley. Mr. Speaker, H.R. 1104 is a non- The 105th Congress provided $8.2 mil- OLD JICARILLA ADMINISTRATIVE controversial bill that would authorize lion to the National Archives for con- SITE the Secretary of the Interior to trans- struction of the much-needed new fa- Mr. SAXTON. Mr. Speaker, I move to fer administrative jurisdiction over cility on a one-acre parcel within the suspend the rules and pass the bill land within the boundaries of the Home historic site. However, construction is (H.R. 695) to direct the Secretary of Ag- of Franklin D. Roosevelt National His- stalled due to a legal snag; and this riculture and the Secretary of the Inte- toric Site to the Archivist of the legislation corrects that snag. rior to convey an administrative site in H6776 CONGRESSIONAL RECORD — HOUSE August 2, 1999 San Juan County, New Mexico, to San This legislation will require the Sec- CONSTRUCTION INDUSTRY PAY- Juan College, as amended. retary to convey a 10-acre parcel MENT PROTECTION ACT OF 1999 The Clerk read as follows: known as the ‘‘Old Jicarilla Site’’ to Mr. HORN. Mr. Speaker, I move to H.R. 695 San Juan college. The Forest Service suspend the rules and pass the bill Be it enacted by the Senate and House of Rep- no longer requires its use and has not (H.R. 1219) to amend the Office of Fed- resentatives of the United States of America in occupied the site for several years. eral Procurement Policy Act and the Congress assembled, The bill will also require the site to Miller Act, relating to payment protec- SECTION 1. OLD JICARILLA ADMINISTRATIVE be used for educational and rec- tions for persons providing labor and SITE. reational purposes. Our good friend the materials for Federal construction (a) CONVEYANCE OF PROPERTY.—Not later gentleman from New Mexico (Mr. than one year after the date of completion of projects, as amended. UDALL) has done a great job on this The Clerk read as follows: the survey referred to in subsection (b), the Sec- legislation. I urge all my colleagues to retary of the Interior shall convey to San Juan H.R. 1219 College, in Farmington, New Mexico, subject to support its passage under the sus- Be it enacted by the Senate and House of Rep- the terms, conditions, and reservations under pended rules. resentatives of the United States of America in subsection (c), all right, title, and interest of the Mr. Speaker, I reserve the balance of Congress assembled, United States in and to a parcel of real property my time. SECTION 1. SHORT TITLE. (including any improvements on the land) not to Mr. GEORGE MILLER of California. This Act may be cited as the ‘‘Construction exceed 20 acres known as the ‘‘Old Jicarilla Mr. Speaker, I yield myself such time Industry Payment Protection Act of 1999’’. Site’’ located in San Juan County, New Mexico as I may consume. SEC. 2. AMENDMENTS TO THE MILLER ACT. (T29N; R5W; portions of sections 29 and 30). Mr. Speaker, I rise in support of H.R. (a) ENHANCEMENT OF PAYMENT BOND PROTEC- (b) DESCRIPTION OF PROPERTY.—The exact 695 by the gentleman from New Mexico TION.—Subsection (a)(2) of the first section of acreage and legal description of the real prop- the Miller Act (40 U.S.C. 270a(a)(2)) is amended erty conveyed under subsection (a) shall be de- (Mr. UDALL) which would direct the Secretary of the Interior to convey ap- by striking the second, third, and fourth sen- termined by a survey satisfactory to the Sec- tences and inserting in lieu thereof the fol- retary of the Interior, the Secretary of Agri- proximately 20 acres of both Forest lowing: ‘‘The amount of the payment bond shall culture, and the President of San Juan College. Service and Bureau of Land Manage- be equal to the total amount payable by the The cost of the survey shall be borne by San ment land, including real property on terms of the contract unless the contracting offi- Juan College. the land, on the Carson National For- cer awarding the contract makes a written de- (c) TERMS, CONDITIONS, AND RESERVATIONS.— est in San Juan County, New Mexico, termination supported by specific findings that (1) Notwithstanding exceptions of application to San Juan College in Farmington, a payment bond in that amount is impractical, under the Recreation and Public Purposes Act in which case the amount of the payment bond (43 U.S.C. 869(c)), consideration for the convey- New Mexico. The ‘‘Old Jicarilla Site,’’ as it is shall be set by the contracting officer. In no ance described in subsection (a) shall be— case shall the amount of the payment bond be (A) an amount that is consistent with the Bu- known, contains a surplus and aban- less than the amount of the performance reau of Land Management special pricing pro- doned ranger station. The college bond.’’. gram for Governmental entities under the Recre- would pay for all lands in accordance (b) MODERNIZATION OF DELIVERY OF NO- ation and Public Purposes Act; and with the Recreation and Public Pur- TICE.—Section 2(a) of the Miller Act (40 U.S.C. (B) an agreement between the Secretaries of poses Act and use the site for edu- 270b(a)) is amended in the last sentence by strik- the Interior and Agriculture and San Juan Col- cational and recreational purposes. ing ‘‘mailing the same by registered mail, post- lege indemnifying the Government of the United age prepaid, in an envelope addressed’’ and in- States from all liability of the Government that The bill represent a bipartisan effort both in the House and the Senate. I serting ‘‘any means which provides written, arises from the property. third-party verification of delivery.’’. (2) The lands conveyed by this Act shall be urge my colleagues to support it. (c) NONWAIVER OF RIGHTS.—The second sec- used for educational and recreational purposes. I would like to take the time to con- tion of the Miller Act (40 U.S.C. 270b) is amend- If such lands cease to be used for such purposes, gratulate the gentleman from New ed by adding at the end the following new sub- at the option of the United States, such lands Mexico (Mr. UDALL) on his sponsorship section: will revert to the United States. of this piece of legislation in an effort ‘‘(c) Any waiver of the right to sue on the (3) The Secretary of Agriculture shall identify payment bond required by this Act shall be void any reservations of rights-of-way for ingress, to get it passed. Mr. Speaker, I yield back the balance unless it is in writing, signed by the person egress, and utilities as the Secretary deems ap- whose right is waived, and executed after such propriate. of my time. person has first furnished labor or material for (4) The conveyance described in subsection (a) Mr. SAXTON. Mr. Speaker, I have no use in the performance of the contract.’’. shall be subject to valid existing rights. further requests for time, and I yield SEC. 3. IMPLEMENTATION THROUGH THE GOV- (d) LAND WITHDRAWALS.—Public Land Order back the balance of my time. ERNMENT-WIDE PROCUREMENT 3443, only insofar as it pertains to lands de- The SPEAKER pro tempore. The REGULATIONS. scribed in subsections (a) and (b), shall be re- question is on the motion offered by (a) PROPOSED REGULATIONS.—Proposed revi- voked simultaneous with the conveyance of the the gentleman from New Jersey (Mr. sions to the Government-wide Federal Acquisi- property under subsection (a). tion Regulation to implement the amendments SAXTON) that the House suspend the made by this Act shall be published not later The SPEAKER pro tempore. Pursu- rules and pass the bill, H.R. 695, as ant to the rule, the gentleman from than 120 days after the date of the enactment of amended. this Act and provide not less than 60 days for New Jersey (Mr. SAXTON) and the gen- The question was taken; and (two- public comment. tleman from California (Mr. GEORGE thirds having voted in favor thereof) (b) FINAL REGULATIONS.—Final regulations MILLER) each will control 20 minutes. the rules were suspended and the bill, shall be published not less than 180 days after The Chair recognizes the gentleman as amended, was passed. the date of the enactment of this Act and shall from New Jersey (Mr. SAXTON). A motion to reconsider was laid on be effective on the date that is 30 days after the date of publication. (Mr. SAXTON asked and was given the table. permission to revise and extend his re- The SPEAKER pro tempore. Pursu- marks.) f ant to the rule, the gentleman from Mr. SAXTON. Mr. Speaker, I yield California (Mr. HORN) and the gen- myself such time as I may consume. tleman from Texas (Mr. TURNER) each Mr. Speaker, H.R. 695 would direct GENERAL LEAVE will control 20 minutes. the Secretary of Agriculture and the Mr. SAXTON. Mr. Speaker, I ask The Chair recognizes the gentleman Secretary of the Interior to convey the unanimous consent that all Members from California (Mr. HORN). administrative site in San Juan Coun- may have 5 legislative days within Mr. HORN. Mr. Speaker, I yield my- ty, New Mexico, to San Juan College. which to revise and extend their re- self such time as I may consume. H.R. 695 a bill to direct the Secretary marks and to include extraneous mate- I include for the RECORD at this point of Agriculture and the Secretary of the rial on H.R. 2654, H.R. 1104, and H.R. a letter from the chairman of the Com- Interior to convey an administrative 747, the bills just passed. mittee on the Judiciary, the gentleman site in San Juan County, New Mexico, The SPEAKER pro tempore. Is there from Illinois (Mr. HYDE), agreeing to to San Juan College, was introduced by objection to the request of the gen- the discharge of the Committee on the our colleague the honorable gentleman tleman from New Jersey? Judiciary from further consideration of from New Mexico (Mr. UDALL). There was no objection. H.R. 1219. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6777 HOUSE OF REPRESENTATIVES, use to notify the prime contractor of is great enough to protect all of the COMMITTEE ON THE JUDICIARY, their intent to seek payment from the subcontractors. At the same time the Washington, DC, June 18, 1999. payment bond. It permits notice by legislation will modernize and Hon. DAN BURTON, any delivery service that provides writ- strengthen the Miller Act and will pro- Chairman, Committee on Government Reform, House of Representatives, Washington, DC. ten third-party verification of delivery, vide a means of improving a relation- DEAR CHAIRMAN BURTON: I understand that including the United States Postal ship of the subcontractors that has the Government Reform Committee desires Service or a private express delivery been long needed. to take H.R. 1219, the ‘‘Construction Indus- service. This bill was reported by the Com- try Payment Protection Act,’’ to the floor Moreover, the bill would require that mittee on Government Reform on May without this committee reporting the bill. any waiver of the Miller Act protec- 19 by voice vote. The measure has also The bill contains certain matters within the tions by a beneficiary of those protec- been referred to the Committee on the Rule X jurisdiction of the Judiciary Com- tions must be in writing and may be Judiciary which has discharged the mittee which were the basis of the bill’s re- ferral to us. Such matters include amend- made only after a subcontractor or bill. I would like to thank particularly ments to the Miller Act made by section 3 supplier has furnished labor or mate- the gentleman from Pennsylvania (Mr. and procedural rules for promulgating revi- rials for use in the performance of the GEKAS) and the gentleman from New sions to the Federal Acquisition Regulation contract. York (Mr. NADLER) for their help in established by section 4. b 1500 crafting this bill. In the interest of moving this non-con- Mr. Speaker, I reserve the balance of troversial bill forward expeditiously, I will The bill also requires that the Office my time. agree to the Judiciary Committee being dis- of Management and Budget issue final Mr. HORN. Mr. Speaker, I yield such charged from further consideration of H.R. regulations implementing these provi- time as he may consume to the gen- 1219. However, this should not be construed sions not less than 180 days after enact- tleman from Virginia (Mr. DAVIS). He as a relinquishment of the Committee’s Rule ment of this legislation. X jurisdiction as to the matters addressed by has done an outstanding job in bring- the bill or any further amendments relating H.R. 1219 represents a bipartisan ef- ing many of the parties together on to it. fort to update the 1935 Miller Act. This this particular bill and we deeply ap- Please place a copy of this letter in the bill contains proposals to amend the preciate his work on it. record of debate on the bill. Miller Act that address some of the Mr. DAVIS of Virginia. Mr. Speaker, Sincerely, concerns of a variety of trade associa- I thank the chairman of the sub- HENRY J. HYDE, tions representing essentially every committee for yielding me this time Chairman. segment of the construction and surety and I particularly thank the author of Mr. Speaker, H.R. 1219, the Construc- industries. Our thanks go to the Demo- this bill the gentlewoman from New tion Industry Payment Protection Act crats and Republicans who have York who has worked, I think, over and of 1999, is a bill introduced by my col- worked together long and hard to bring beyond the usual call of duty in trying league, the gentlewoman from New this important bipartisan measure to to bring consensus to something very York (Mrs. MALONEY). It would mod- the floor. technical but I think something very ernize the 1935 Miller Act. I was pleased to be a cosponsor of the meaningful to government contractors Under the Miller Act, contractors gentlewoman from New York’s bill, the and subcontractors and sureties. performing work on a Federal public prime author, and the gentleman from I rise today in support of H.R. 1219, works project costing in excess of Virginia (Mr. DAVIS) was also one of the Construction Industry Payments $100,000 are required to furnish a pay- the key people in assuring that these Act of 1999. ment bond. The payment bond is in- different parties came together. The This is legislation we have been in- tended to protect subcontractors and time has come to modernize the Miller volved with since the 105th Congress suppliers and materials against the Act. I urge my colleagues to support when the gentlewoman from New York risk of nonpayment when working on this measure. began working with the affected indus- Federal construction projects. Mr. Speaker, I reserve the balance of try groups to find consensus on updat- The Act also requires a performance my time. ing the original Miller Act of 1935. I am bond to guarantee completion of the Mr. TURNER. Mr. Speaker, I yield happy to say that this bipartisan co- project. myself such time as I may consume. operation resulted in a strong bill that In addition, the Miller Act requires Mr. Speaker, this bill was introduced industry, Congress and the Federal the contractor to provide a perform- by the gentlewoman from New York Government can all support. It is fis- ance bond that guarantees completion (Mrs. MALONEY) as a means of address- cally responsible and it offers reason- of the project. ing some very serious concerns sur- able protections to all parties involved The 1935 Act caps the total amount of rounding the bond requirements estab- in this type of Federal procurement. the payment bond at $2.5 million. Al- lished in the Miller Act of 1935. I want H.R. 1219 amends the 1935 Miller Act though that amount might have been to commend the gentlewoman from which has stood the test of time very appropriate for public works projects New York for her leadership in this leg- well. It has needed relatively little leg- in 1935, in many cases today it no islation, specifically her work in bring- islative attention or congressional longer provides subcontractors with ing all the parties together that have oversight since its passage. Currently, adequate protection. an interest in this bill, working with the Miller Act requires a contractor Today, more than half of all Federal them, ensuring that all of the concerns awarded a Federal contract in excess of construction projects exceed $2.5 mil- that were laid on the table by all of the $100,000 to furnish the government with lion. H.R. 1219 seeks to correct this parties were addressed. She did an out- a performance bond and a payment problem by requiring general contrac- standing job in working in a very bi- bond. These bonds protect the govern- tors to obtain payment bonds of an partisan way on this bill. ment and certain persons providing amount equivalent to the total value of Specifically, subcontractors who per- labor and material for performance of the contract. form construction projects for the Fed- that work. H.R. 1219 prepares the Mil- As noted, H.R. 1219 would require eral Government have raised questions ler Act for the 21st century. It should general contractors to obtain payment about the adequacy of the payment achieve its objectives without unrea- bonds of an amount equal to the total bond requirement. The gentlewoman sonably increasing the financial expo- contract price unless the contracting from New York as a member of the sure or placing additional burdens on officer makes a written determination Committee on Government Reform, the prime contractor or the surety that a payment bond in that amount is former ranking member of the Sub- bond producers and corporate sureties impractical. However, under no cir- committee on Government Manage- that provide Miller Act bond payments. cumstances can the amount of the pay- ment, Information, and Technology, It modernizes the act in three areas: ment bond be less than the amount of has been persistent in trying to correct The legislation raises the payment the performance bond. the deficiencies of the current law. bond to the value of the contract The bill also would expand the meth- H.R. 1219 would remedy these prob- award, allows receipt of notice through ods by which the subcontractors could lems and ensure that the payment bond any method that provides written third H6778 CONGRESSIONAL RECORD — HOUSE August 2, 1999 party verification of receipt, and it pre- ADDITIONAL INDUSTRY GROUPS WHO ASSISTED on Federal projects will actually be vents any waiver of the Miller Act IN DRAFTING THE MILLER ACT, H.R. 1219, paid and will not have to worry about rights prior to the commencement of THE CONSTRUCTION INDUSTRY PAYMENT ACT being paid for their work. H.R. 1219 will the work. These three key updates of Air Conditioning Contractors Association modernize the 65-year-old Miller Act the 1935 legislation enhance the proce- American Insurance Association which was passed in 1935 to provide dures and protections of the Miller Act American Subcontractors Association payment protection for construction Mechanical Contractors Association of for the government and those with America subcontractors and suppliers. Under rights under the act as we continue to National Association of Plumbing-Heating- the Miller Act, prime contractors on update our procurement procedures the Cooling Contractors Federal projects are required to pur- next century. National Association of Surety Bond Pro- chase two types of surety bonds, one, I am particularly impressed with ducers the performance bond which assures H.R. 1219 and the reasonable updates of National Electrical Contractors Association the government that the work will in the Miller Act that allow it to be par- Painting and Decorating Contractors of fact be completed, and a second, the ticularly effective in protecting all America payment bond that provides payment parties in the contracting process. Not Sheet Metal & Air Conditioning Contractors protection for subcontractors and sup- National Association only does it preserve the authority of Surety Association of America pliers. The payment bond is critical, the United States courts to adjudicate American Fire Sprinkler Association because it is the payment protection of issues under the Miller Act but it pre- Architectural Woodwork Institute last resort in the event of a default on serves the freedom of the contractor Association of the Wall & Ceiling Industries- the part of the prime contractor. Yet and the subcontractor to choose within International under the Miller Act’s depression era their own contract the particular dis- Automatic Fire Alarm Association requirements, prime contractors are pute resolution process that will gov- Independent Electrical Contractors not required to obtain a payment bond ern their dispute. This is an effective Mason Contractors Association of America equal to the full value of the contract. National Association of Credit Management In fact, for contracts of $5 million or reform that focuses on everyone’s goal, National Ground Water Association providing the best product to the Fed- National Insulation Association more, the payment bond need not be eral Government in a timely manner. World Floor Covering Association worth more than $2.5 million regardless Additionally, H.R. 1219 maintains a Mr. TURNER. Mr. Speaker, it is an of the size of the project. Since 1935, subcontract provision that allows for honor for me to yield such time as she Federal construction projects have requiring arbitration or another alter- may consume to the gentlewoman from changed dramatically in size and dollar native dispute resolution process. A New York (Mrs. MALONEY). I too would value. The protections afforded by the protected person’s Miller Act rights like to thank the gentlewoman for the Miller Act may have been adequate in would be preserved by a timely suit in leadership she has provided on this bill. 1935, but they are simply not sufficient the District Court that can be stayed She has spent more time working on for today. In fact, if the value of $2.5 pending the subcontract dispute resolu- this than any other Member of this million were simply adjusted for infla- tion process. House. She is the sponsor of this bill. tion, it would now be at least $30 mil- Simply put, this legislation modern- Mrs. MALONEY of New York. Mr. lion. With Federal construction izes the procedures and protections of Speaker, I thank the ranking member projects costing hundreds of millions of the Miller Act, preserves the exclusive for yielding me this time and I thank dollars, $2.5 million is simply not jurisdiction of the U.S. District Court him for his leadership and support. enough to provide payment protection to resolve issues arising under the Mil- The best legislation is bipartisan and for subcontractors, particularly those ler Act, and respects the freedom of the this has truly been a bipartisan effort working in the later stages of complex, contractor and subcontractor to choose over the past 3 years. I particularly multi-year construction projects. their own dispute resolution process, congratulate the gentleman from Cali- Earlier this year, President Clinton thereby bolstering the Federal Govern- fornia (Mr. HORN) with whom I have announced that the Federal Govern- ment’s strong policy in favor of alter- worked in a constructive way on many ment, along with Senator MOYNIHAN, native dispute resolution. pieces of legislation before this body would be taking the lead in renovating Finally, I want to again thank the and the gentleman from Pennsylvania the Farley Building in my home city of gentlewoman from New York for her (Mr. GEKAS) who likewise led on this New York as part of the Penn Station willingness to sit down and negotiate effort and the gentleman from Virginia mass transit redevelopment project. It on this legislation what appeared to be (Mr. DAVIS) who led actually a task is estimated that this project will cost differences too great to overcome in force over the last summer between the almost $400 million. Now, under the the waning days of the 105th Congress. different bodies that came forward Miller Act, the general contractor Instead this has resulted in a strong, with a consensus and compromise bill. would only be required to furnish a updated Miller Act early on in this And finally the stakeholders, all of the payment bond worth $2.5 million, clear- Congress. I believe the extensive nego- industries involved, over 25 industries ly not enough to provide protection for tiations between the gentlewoman came together and signed their own subcontractors and suppliers and their from New York, myself and others dis- contract in support of the legislation workers on a $400 million project. But tilled the key elements of the Miller and their pledge to work to pass it. So thanks to this legislation that we are Act to address and improve future situ- it has indeed been a combined effort about to pass today, the subcontractors ations in Federal contracting. H.R. 1219 which will ultimately not only help the working on the Farley Building will ac- is legislation that both enhances and employers and the employees but the tually be paid and will enjoy full pay- preserves the 1935 legislation. This American taxpayer, because the cost of ment protection. could not have occurred without a will- the jobs will go down because those I learned firsthand about the prob- ingness to build consensus or work to- bidding on them will know that the lems of the Miller Act when I was con- gether. I would also like to thank the risk of not being paid will now be cov- tacted by one of my constituents, Fred many industry organizations that ered and that risk will not be built into Levinson, in 1997. Fred owns a subcon- agreed to sit down and come up with their bid. So it has been a day where tracting firm in my district. Fred reasonable compromises that helped us everyone benefits in our country and I Levinson was hired to work on a develop the strong bill before us today. am very proud to have been part of the project for the Federal Bureau of Pris- In particular, I want to thank the As- team that made this happen. ons for over $100 million. But when the sociated Builders and Contractors of This is truly a historic day for the prime contractor on the building was America, the Surety Association of construction industry and their work- terminated, Mr. Levinson was left America, the American Insurance As- ers. Today we are passing bipartisan without any way to collect the money sociation, and other organizations that legislation that will restore full pay- he was owed for the work that he per- I will insert in the RECORD. ment protection for construction firms formed. As a result, he lost $9.5 million I urge the passage of this bill. I would and their employees who do business simply because the Miller Act did not also like to thank Amy Heerink and with the Federal Government. Thanks provide for full payment protection. Melissa Wojciak from my staff. to this bill, subcontractors who work Mr. Levinson was fortunate enough to August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6779 be able to save his company, but this jointly by my friend from California Mr. Speaker, I urge all Members to payment problem still forced him to (Mr. HORN) and my friend from Penn- support this important bipartisan bill. lay off employees and scale back his sylvania (Mr. GEKAS). Mr. TURNER. Mr. Speaker, I have no business. Other subcontractors on big At that hearing we heard from sev- further requests for time, and I yield Federal projects are simply not so eral witnesses who spoke on the need back the balance of the time. lucky and risk bankruptcy when the to modernize the act, including my Mr. HORN. Mr. Speaker, I yield my- prime contractor defaults. constituent Fred Levinson and one of self such time as I may consume. Thanks to this bill, no subcontractor Chairman GEKAS’ constituents, Micki I just want to, in conclusion, note in the future, including those working Weaver. Mrs. Weaver, who owns a small that the gentleman from Texas (Mr. on the Farley Building or any Federal specialty firm told of how the inad- TURNER), the ranking minority mem- building, will have to suffer from inad- equacies of the Miller act led her to ber on the subcommittee, has been equate payment bond protection as did avoid bidding altogether on future Fed- very helpful on this; and I mentioned my constituent Fred Levinson. This is eral projects. earlier, I will mention again, the gen- also, I might add, a case study in de- Both the gentleman from California tleman from Pennsylvania (Mr. GEKAS) mocracy, an example of how one person (Mr. HORN) and the gentleman from is a very distinguished legislator from can come to a legislator, point out a Pennsylvania (Mr. GEKAS) agreed that Pennsylvania and a key person on the problem, and work with them to solve the Miller act needed to be modernized Committee on the Judiciary, and the it and to make a difference. I would and joined me as an original sponsor. I gentleman from Illinois (Mr. HYDE) like to dedicate my work on this bill to am very grateful for their hard work as gave the waiver of this bill to the floor, Fred Levinson, who brought it to my well as that of their staffs and my own, and we are extremely grateful for that attention. staff which have helped to get us to bipartisan, bi-committee cooperation. Mr. Speaker, as someone who has where we are today. In addition, the But in closing, I want to say to the long been interested in Federal pro- gentleman from Indiana (Mr. BURTON) gentlewoman from New York (Mrs. curement policy, I can speak firsthand and the gentleman from Illinois (Mr. MALONEY) who put it right on the nose, to the importance of full and timely HYDE) both were instrumental in mov- this is a case study in democracy. Ev- payment to all segments of the con- ing this bill through the legislative eryone that is listening or hearing or struction industry. In particular, small process, as were the ranking members, reading the RECORD is going to see this firms face enormous risks when they the gentleman from California (Mr. is an example of a constituent walking are not paid for work they complete. WAXMAN) and the gentleman from through their Representative’s door Many firms across the country have Michigan (Mr. CONYERS). and say, Look, I’ve had a problem here. risked bankruptcy simply because they My friend from Virginia (Mr. DAVIS) Can you do anything about it? A lot of were not paid on time or in full by a took the lead in getting everyone in- us have had that experience, and the project owner. Cases in which the Fed- volved in this issue to agree to sit fact is people do not need to go through eral Government is the owner of the down at the table and negotiate so that lobbyists; they do not need to go project are certainly no exception. we could reach the agreement on the through people that are at PAC parties legislation we have before us today. In or anything else. They can just walk b 1515 addition, many other Members of this into their legislator, and if they got a This bill will make three important House, including the gentleman from good case, something will happen. The changes to the Miller act. Florida (Mr. SCARBOROUGH), the gen- gentlewoman from New York (Mrs. First, it will require that prime con- tleman from Texas (Mr. SESSIONS), the MALONEY) showed something that hap- tractors working on Federal projects gentleman from Texas (Mr. SMITH), and pened, and all of us cooperated to do it furnish a payment bond of a value the gentleman from Pennsylvania (Mr. because we knew this was just and we equal to the value of the contract they KANJORSKI) have supported and worked needed to update that law, and I would have been awarded. This provision will on this legislation from the beginning hope that we have a unanimous vote of ensure full payment protection for sub- and were very instrumental in moving the House. contractors who choose to work on it to the floor today. I want to thank my own majority Federal projects. They will no longer Equally important, Mr. Speaker, is staff, George, the chief counsel and be a $2.5 million limit. the hard work that many of the indus- staff director, Randy. The counsel and Second, this bill will modernize the try groups have done. I am pleased that professional staff member have worked provisions of the Miller act which deal every industry group with an interest with the staff of the gentlewoman from with notification of an intent to make in modernizing the Miller act supports New York (Mrs. MALONEY) and the staff a claim on a payment bond. Current this bipartisan legislation. This bill en- of the gentleman from Pennsylvania law permits notification only by cer- joys the backing of at least 25 industry (Mr. GEKAS), and we thank them all for tified mail. Under this bill, notification organizations, all of which have had a their help. I urge adoption of this will be permitted by any means that vested interest in the payment bond measure. permits written third-party notifica- protection afforded by the act. The SPEAKER pro tempore. The tion of delivery. In this era of over- In particular, I would like to thank question is on the motion offered by night mail and electronic commerce, it the American Subcontractors Associa- the gentleman from California (Mr. simply makes no sense to permit noti- tion which has spearheaded the broad- HORN) that the House suspend the rules fication only through registered mail. based coalition to modernize the Miller and pass the bill, H.R. 1219, as amend- Finally, this bill includes a provision act for their hard work on this bill as ed. that prohibits any waiver of the right well as that of the Associated General The question was taken. to sue under a payment bond unless Contractors of America and the Surety Mr. HORN. Mr. Speaker, on that I de- that waiver is signed by the person Association of America, both of which mand the yeas and nays. whose right is waived after they have played a critical role in the negotia- The yeas and nays were ordered. commenced work on the project. This tions which led to this bill. The SPEAKER pro tempore. Pursu- will ensure that no subcontractor Mrs. MALONEY of New York. Mr. ant to clause 8 of rule XX and the waives his or her right to sue before be- Speaker, finally I am very pleased to Chair’s prior announcement, further ginning work on a project. This provi- announce that the administration has proceedings on this motion will be sion is critical to protecting the rights recently said that it, too, supports the postponed. of subcontractors throughout the bid- bill. This bill will bring about a com- f ding process and beyond. mon sense reform that will make a tre- I always believe that the best legisla- mendous difference for construction GENERAL LEAVE tion is bipartisan, and that is certainly subcontractors and their workers who Mr. HORN. Mr. Speaker, I ask unani- true in this case. This legislation en- do business with the Federal Govern- mous consent that all Members may joys broad support from Members ment. It will not cost the taxpayers have 5 legislative days within which to across the political spectrum. This bill anything, and in fact it might lower revise and extend their remarks on grew out of a hearing that was held the cost of Federal projects. H.R. 1219, as amended. H6780 CONGRESSIONAL RECORD — HOUSE August 2, 1999 The SPEAKER pro tempore. Is there SEC. 3. DEFINITION. TITLE II—IMPROVING FEDERAL DEBT objection to the request of the gen- As used in this Act, the term ‘‘nontax COLLECTION PRACTICES tleman from California? debt’’ means any debt (within the meaning of SEC. 201. MISCELLANEOUS CORRECTIONS TO There was no objection. that term as used in chapter 37 of title 31, SUBCHAPTER II OF CHAPTER 37 OF TITLE 31, UNITED STATES CODE. United States Code) other than a debt under f (a) CHILD SUPPORT ENFORCEMENT.—Section the Internal Revenue Code of 1986 or the Tar- 3716(h)(3) of title 31, United States Code, is GOVERNMENT WASTE, FRAUD, iff Act of 1930. AND ERROR REDUCTION ACT OF amended to read as follows: SEC. 4. APPLICATION OF ACT. ‘‘(3) In applying this subsection with re- 1999 spect to any debt owed to a State, other than No provision of this Act shall apply to the Mr. HORN. Mr. Speaker, I move to past due support being enforced by the State, Department of the Treasury or the Internal subsection (c)(3)(A) shall not apply.’’. suspend the rules and pass the bill Revenue Service to the extent that such (H.R. 1442) to amend the Federal Prop- (b) DEBT SALES.—Section 3711 of title 31, provision— United States Code, is amended by striking erty and Administrative Services Act (1) involves the administration of the in- subsection (i). of 1949 to continue and extend author- ternal revenue laws; or (c) GAINSHARING.—Section 3720C(b)(2)(D) of ity for transfers to State and local gov- (2) conflicts with the Internal Revenue title 31, United States Code, is amended by ernments of certain property for law Service Restructuring and Reform Act of striking ‘‘delinquent loans’’ and inserting enforcement, public safety, and emer- 1998, the Internal Revenue Code of 1986, or ‘‘debts’’. gency response purposes, as amended. the Tariff Act of 1930. (d) PROVISIONS RELATING TO PRIVATE COL- LECTION CONTRACTORS.— The Clerk read as follows: TITLE I—GENERAL MANAGEMENT (1) COLLECTION BY SECRETARY OF THE IMPROVEMENTS H.R. 1442 TREASURY.—Section 3711(g) of title 31, United Be it enacted by the Senate and House of Rep- SEC. 101. IMPROVING FINANCIAL MANAGEMENT. States Code, is amended by adding at the end resentatives of the United States of America in the following: Congress assembled, Section 3515 of title 31, United States Code, ‘‘(11) In attempting to collect under this is amended— SECTION 1. SHORT TITLE; TABLE OF CONTENTS. subsection through the use of garnishment (1) in subsection (a)— (a) SHORT TITLE.—This Act may be cited as any debt owed to the United States, a pri- (A) by striking ‘‘1997’’ and inserting ‘‘2000’’; the ‘‘Government Waste, Fraud, and Error vate collection contractor shall not be pre- and Reduction Act of 1999’’. cluded from verifying the debtor’s current (B) by inserting ‘‘Congress and’’ after ‘‘sub- (b) TABLE OF CONTENTS.—The table of con- employer, the location of the payroll office mit to’’; and tents for this Act is as follows: of the debtor’s current employer, the period (2) by striking subsections (e), (f), (g), and the debtor has been employed by the current Sec. 1. Short title; table of contents. (h). employer of the debtor, and the compensa- Sec. 2. Purposes. tion received by the debtor from the current Sec. 3. Definition. SEC. 102. IMPROVING TRAVEL MANAGEMENT. employer of the debtor. Sec. 4. Application of Act. (a) LIMITED EXCLUSION FROM REQUIREMENT ‘‘(12) In evaluating the performance of a TITLE I—GENERAL MANAGEMENT REGARDING OCCUPATION OF QUARTERS.—Sec- contractor under any contract entered into IMPROVEMENTS tion 5911(e) of title 5, United States Code, is under this subsection, the Secretary of the Sec. 101. Improving financial management. amended by adding at the end the following Treasury shall consider the contractor’s Sec. 102. Improving travel management. new sentence: ‘‘The preceding sentence shall gross collections net of commissions (as a TITLE II—IMPROVING FEDERAL DEBT not apply with respect to lodging provided percentage of account amounts placed with COLLECTION PRACTICES under chapter 57 of this title.’’. the contractor) under the contract. The ex- istence and frequency of valid debtor com- Sec. 201. Miscellaneous corrections to sub- (b) USE OF TRAVEL MANAGEMENT CENTERS, plaints shall also be considered in the eval- chapter II of chapter 37 of title AGENTS, AND ELECTRONIC PAYMENT SYS- uation criteria. 31, United States Code. TEMS.— ‘‘(13) In selecting contractors for perform- Sec. 202. Barring delinquent Federal debtors (1) REQUIREMENT TO ENCOURAGE USE.—The ance of collection services, the Secretary of from obtaining Federal bene- head of each executive agency shall, with re- the Treasury shall evaluate bids received fits. spect to travel by employees of the agency in through a methodology that considers the Sec. 203. Collection and compromise of the performance of the employment duties bidder’s prior performance in terms of net nontax debts and claims. by the employee, require, to the extent prac- ticable, the use by such employees of travel amounts collected under Government collec- TITLE III—SALE OF NONTAX DEBTS tion contracts of similar size, if applicable. OWED TO UNITED STATES management centers, travel agents author- ized for use by such employees, and elec- The existence and frequency of valid debtor Sec. 301. Authority to sell nontax debts. tronic reservation and payment systems for complaints shall also be considered in the Sec. 302. Requirement to sell certain nontax the purpose of improving efficiency and evaluation criteria.’’. debts. economy regarding travel by employees of (2) COLLECTION BY PROGRAM AGENCY.—Sec- TITLE IV—TREATMENT OF HIGH VALUE the agency. tion 3718 of title 31, United States Code, is amended by adding at the end the following: NONTAX DEBTS (2) PLAN FOR IMPLEMENTATION.—(A) The ‘‘(h) In attempting to collect under this Administrator of General Services shall de- Sec. 401. Annual report on high value nontax subsection through the use of garnishment velop a plan regarding the implementation debts. any debt owed to the United States, a pri- of this subsection and shall, after consulta- Sec. 402. Review by Inspectors General. vate collection contractor shall not be pre- tion with the heads of executive agencies, Sec. 403. Requirement to seek seizure and cluded from verifying the current place of submit to Congress a report describing such forfeiture of assets securing employment of the debtor, the location of plan and the means by which such agency high value nontax debt. the payroll office of the debtor’s current em- heads plan to ensure that employees use TITLE V—FEDERAL PAYMENTS ployer, the period the debtor has been em- travel management centers, travel agents, ployed by the current employer of the debt- Sec. 501. Transfer of responsibility to Sec- and electronic reservation and payment sys- or, and the compensation received by the retary of the Treasury with re- tems as required by this subsection. debtor from the current employer of the spect to prompt payment. (B) The Administrator shall submit the debtor. Sec. 502. Promoting electronic payments. plan required under subparagraph (A) not ‘‘(i) In evaluating the performance of a Sec. 503. Debt services account. later than March 31, 2000. TITLE VI—FEDERAL PROPERTY contractor under any contract for the per- (c) PAYMENT OF STATE AND LOCAL TAXES ON formance of debt collection services entered Sec. 601. Amendment to Federal Property TRAVEL EXPENSES.— into by an executive, judicial, or legislative and Administrative Services (1) IN GENERAL.—The Administrator of agency, the head of the agency shall consider Act of 1949. General Services shall develop a mechanism the contractor’s gross collections net of com- SEC. 2. PURPOSES. to ensure that employees of executive agen- missions (as a percentage of account The purposes of this Act are the following: cies are not inappropriately charged State amounts placed with the contractor) under (1) To reduce waste, fraud, and error in and local taxes on travel expenses, including the contract. The existence and frequency of Federal benefit programs. transportation, lodging, automobile rental, valid debtor complaints shall also be consid- (2) To focus Federal agency management and other miscellaneous travel expenses. ered in the evaluation criteria. attention on high-risk programs. (2) REPORT.—Not later than March 31, 2000, ‘‘(j) In selecting contractors for perform- (3) To better collect debts owed to the the Administrator shall, after consultation ance of collection services, the head of an ex- United States. with the heads of executive agencies, submit ecutive, judicial, or legislative agency shall (4) To improve Federal payment systems. to Congress a report describing the steps evaluate bids received through a method- (5) To improve reporting on Government taken, and proposed to be taken, to carry out ology that considers the bidder’s prior per- operations. this subsection. formance in terms of net amounts collected August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6781 under government collection contracts of ‘‘(B) Any Federal permit or Federal license (1) by redesignating subparagraphs (A) similar size, if applicable. The existence and required by law. through (H) as clauses (i) through (viii); frequency of valid debtor complaints shall ‘‘(b) The Secretary of the Treasury may ex- (2) by inserting ‘‘(A)’’ after ‘‘(9)’’; also be considered in the evaluation cri- empt any class of claims from the applica- (3) in subparagraph (A) (as designated by teria.’’. tion of subsection (a) at the request of an ex- paragraph (2) of this subsection) in the mat- (3) CONSTRUCTION.—None of the amend- ecutive, judicial, or legislative agency. ter preceding clause (i) (as designated by ments made by this subsection shall be con- ‘‘(c)(1) The head of any executive, judicial, paragraph (1) of this subsection), by insert- strued as altering or superseding the provi- or legislative agency may waive the applica- ing ‘‘and subject to subparagraph (B)’’ after sions of title 11, United States Code, or sec- tion of subsection (a) to any Federal benefit ‘‘as applicable’’; and tion 6103 of the Internal Revenue Code of that is administered by the agency based on (4) by adding at the end the following: 1986. standards promulgated by the Secretary of ‘‘(B)(i) The head of an executive, judicial, (e) CLERICAL AMENDMENT.—Section the Treasury. or legislative agency may not discharge a 3720A(h) of title 31, United States Code, is ‘‘(2) The head of an executive, judicial, or nontax debt or terminate collection action amended— legislative agency may delegate the waiver on a nontax debt unless the debt has been re- (1) beginning in paragraph (3), by striking authority under paragraph (1) to the chief fi- ferred to a private collection contractor or a the close quotation marks and all that fol- nancial officer or, in the case of any Federal debt collection center, referred to the Attor- lows through the matter preceding sub- performance-based organization, the chief ney General for litigation, sold without re- section (i); and operating officer of the agency. course, administrative wage garnishment (2) by adding at the end the following: ‘‘(3) The chief financial officer or chief op- has been undertaken, or in the event of ‘‘For purposes of this subsection, the dis- erating officer of an agency to whom waiver bankruptcy, death, or disability. bursing official for the Department of the authority is delegated under paragraph (2) ‘‘(ii) The head of an executive, judicial, or Treasury is the Secretary of the Treasury or may redelegate that authority only to the legislative agency may waive the application his or her designee.’’. deputy chief financial officer or deputy chief of clause (i) to any nontax debt, or class of (f) CORRECTION OF REFERENCES TO FEDERAL operating officer of the agency. Such deputy nontax debts if the head of the agency deter- AGENCY.—Sections 3716(c)(6) and 3720A(a), chief financial officer or deputy chief oper- mines that the waiver is in the best interest (b), (c), and (e) of title 31, United States ating officer may not redelegate such au- of the United States. Code, are each amended by striking ‘‘Federal thority. ‘‘(iii) As used in this subparagraph, the agency’’ each place it appears and inserting ‘‘(d) As used in this section, the term term ‘nontax debt’ means any debt other ‘‘executive, judicial, or legislative agency’’. ‘nontax debt’ means any debt other than a than a debt under the Internal Revenue Code of 1986 or the Tariff Act of 1930.’’. (g) INAPPLICABILITY OF ACT TO CERTAIN debt under the Internal Revenue Code of 1986 AGENCIES.—Notwithstanding any other pro- or the Tariff Act of 1930.’’. TITLE III—SALE OF NONTAX DEBTS OWED vision of law, no provision in this Act, the (b) CLERICAL AMENDMENT.—The table of TO UNITED STATES Debt Collection Improvement Act of 1996 sections at the beginning of chapter 37 of SEC. 301. AUTHORITY TO SELL NONTAX DEBTS. (chapter 10 of title III of Public Law 104–134; title 31, United States Code, is amended by (a) PURPOSE.—The purpose of this section 31 U.S.C. 3701 note), chapter 37 or subchapter striking the item relating to section 3720B is to provide that the head of each executive, II of chapter 33 of title 31, United States and inserting the following: judicial, or legislative agency shall establish Code, or any amendments made by such Acts ‘‘3720B. Barring delinquent Federal debtors a program of nontax debt sales in order to— or any regulations issued thereunder, shall from obtaining Federal bene- (1) minimize the loan and nontax debt apply to activities carried out pursuant to a fits.’’. portfolios of the agency; law enacted to protect, operate, and admin- (2) improve credit management while serv- (c) CONSTRUCTION.—The amendment made ing public needs; ister any deposit insurance funds, including by this section shall not be construed as al- (3) reduce delinquent nontax debts held by the resolution and liquidation of failed or tering or superseding the provisions of title the agency; failing insured depository institutions. 11, United States Code. (h) CONTRACTS FOR COLLECTION SERVICES.— (4) obtain the maximum value for loan and Section 3718 of title 31, United States Code, SEC. 203. COLLECTION AND COMPROMISE OF nontax debt assets; and NONTAX DEBTS AND CLAIMS. is amended— (5) obtain valid data on the amount of the (a) USE OF PRIVATE COLLECTION CONTRAC- (1) in the first sentence of subsection Federal subsidy inherent in loan programs TORS AND FEDERAL DEBT COLLECTION CEN- (b)(1)(A), by inserting ‘‘, or, if appropriate, conducted pursuant to the Federal Credit TERS.—Paragraph (5) of section 3711(g) of any monetary claim, including any claims Reform Act of 1990 (Public Law 93–344). title 31, United States Code, is amended to for civil fines or penalties, asserted by the (b) SALES AUTHORIZED.—(1) Section 3711 of read as follows: Attorney General’’ before the period; title 31, United States Code, is amended by ‘‘(5)(A) Nontax debts referred or trans- (2) in the third sentence of subsection inserting after subsection (h) the following ferred under this subsection shall be serv- (b)(1)(A)— new subsection: iced, collected, or compromised, or collec- (A) by inserting ‘‘or in connection with ‘‘(i)(1) The head of an executive, judicial, tion action thereon suspended or terminated, other monetary claims’’ after ‘‘collection of or legislative agency may sell, subject to in accordance with otherwise applicable claims of indebtedness’’; section 504(b) of the Federal Credit Reform statutory requirements and authorities. (B) by inserting ‘‘or claim’’ after ‘‘the in- Act of 1990 (2 U.S.C. 661c(b)) and using com- ‘‘(B) The head of each executive agency debtedness’’; and petitive procedures, any nontax debt owed to that operates a debt collection center may (C) by inserting ‘‘or other person’’ after the United States that is administered by enter into an agreement with the Secretary ‘‘the debtor’’; and the agency. of the Treasury to carry out the purposes of ‘‘(2) Costs the agency incurs in selling (3) in subsection (d), by inserting ‘‘or any this subsection. nontax debt pursuant to this subsection may other monetary claim of’’ after ‘‘indebted- ‘‘(C) The Secretary of the Treasury shall— be deducted from the proceeds received from ness owed’’. ‘‘(i) maintain a schedule of private collec- the sale. Such costs include— SEC. 202. BARRING DELINQUENT FEDERAL DEBT- tion contractors and debt collection centers ‘‘(A) the costs of any contract for identi- ORS FROM OBTAINING FEDERAL operated by agencies that are eligible for re- fication, billing, or collection services; BENEFITS. ferral of claims under this subsection; ‘‘(B) the costs of contractors assisting in (a) IN GENERAL.—Section 3720B of title 31, ‘‘(ii) maximize collections of delinquent the sale of nontax debt; United States Code, is amended to read as nontax debts by referring delinquent nontax ‘‘(C) the fees of appraisers, auctioneers, follows: debts to private collection contractors and realty brokers; ‘‘§ 3720B. Barring delinquent Federal debtors promptly; ‘‘(D) the costs of advertising and sur- from obtaining Federal benefits ‘‘(iii) maintain competition between pri- veying; and ‘‘(a)(1) A person shall not be eligible for the vate collection contractors; ‘‘(E) other reasonable costs incurred by the award or renewal of any Federal benefit de- ‘‘(iv) ensure, to the maximum extent prac- agency, as determined by the Director of the scribed in paragraph (2) if the person has an ticable, that a private collection contractor Office of Management and Budget. outstanding nontax debt that is in a delin- to which a nontax debt is referred is respon- ‘‘(3) Sales of nontax debt under this quent status with any executive, judicial, or sible for any administrative costs associated subsection— legislative agency, as determined under with the contract under which the referral is ‘‘(A) shall be for— standards prescribed by the Secretary of the made. ‘‘(i) cash; or Treasury. Such a person may obtain addi- ‘‘(D) As used in this paragraph, the term ‘‘(ii) cash and a residuary equity, joint ven- tional Federal benefits described in para- ‘nontax debt’ means any debt other than a ture, or profit participation, if the head of graph (2) only after such delinquency is re- debt under the Internal Revenue Code of 1986 the agency, in consultation with the Direc- solved in accordance with those standards. or the Tariff Act of 1930.’’. tor of the Office of Management and Budget ‘‘(2) The Federal benefits referred to in (b) LIMITATION ON DISCHARGE BEFORE USE and the Secretary of the Treasury, deter- paragraph (1) are the following: OF PRIVATE COLLECTION CONTRACTOR OR DEBT mines that the proceeds will be greater than ‘‘(A) Financial assistance in the form of a COLLECTION CENTER.—Paragraph (9) of sec- the proceeds from a sale solely for cash; loan (other than a disaster loan) or loan in- tion 3711(g) of title 31, United States Code, is ‘‘(B) shall be without recourse against the surance or guarantee. amended— United States; and H6782 CONGRESSIONAL RECORD — HOUSE August 2, 1999 ‘‘(C) shall transfer to the purchaser all each agency that administers a program that ‘‘(B) no later than 30 days after a proper in- rights of the United States to demand pay- gives rise to a delinquent high value nontax voice for the amount due is received if a spe- ment of the nontax debt, other than with re- debt shall submit a report to Congress that cific payment date is not established by con- spect to a residuary equity, joint venture, or lists each such debt. tract;’’; and profit participation under subparagraph (b) CONTENT.—A report under this section (2) by striking ‘‘and’’ after the semicolon (A)(ii), but shall not transfer to the pur- shall, for each debt listed in the report, in- at the end of paragraph (8), by striking the chaser any rights or defenses uniquely avail- clude the following: period at the end of paragraph (9) and insert- able to the United States. (1) The name of each person liable for the ing ‘‘; and’’, and by adding at the end the fol- ‘‘(3) This subsection is not intended to debt, including, for a person that is a com- lowing: limit existing statutory authority of the pany, cooperative, or partnership, the names ‘‘(10) provide that the Secretary of the head of an executive, judicial, or legislative of the owners and principal officers. Treasury may waive the application of re- agency to sell loans, nontax debts, or other (2) The amounts of principal, interest, and quirements under paragraph (1) to provide assets.’’. penalty comprising the debt. for early payment of vendors in cases where SEC. 302. REQUIREMENT TO SELL CERTAIN (3) The actions the agency has taken to an agency will implement an electronic pay- NONTAX DEBTS. collect the debt, and prevent future losses. ment technology which improves agency Section 3711 of title 31, United States Code, (4) Specification of any portion of the debt cash management and business practice.’’. is amended further by adding at the end the that has been written-down administratively (b) AUTHORITY TO ACCEPT ELECTRONIC PAY- following new subsection: or due to a bankruptcy proceeding. MENT.— ‘‘(j)(1)(A) The head of each executive, judi- (5) An assessment of why the debtor de- (1) IN GENERAL.—Subject to an agreement cial, or legislative agency shall sell any faulted. between the head of an executive agency and nontax loan owed to the United States by (c) DEFINITIONS.—In this title: the applicable financial institution or insti- the later of— (1) AGENCY.—The term ‘‘agency’’ has the tutions based on terms acceptable to the ‘‘(i) the date on which the nontax debt be- meaning that term has in chapter 37 of title Secretary of the Treasury, the head of such comes 24 months delinquent; or 31, United States Code, as amended by this agency may accept an electronic payment, ‘‘(ii) 24 months after referral of the nontax Act. including debit and credit cards, to satisfy a debt to the Secretary of the Treasury pursu- (2) HIGH VALUE NONTAX DEBT.—The term nontax debt owed to the agency. ant to section 3711(g)(1) of title 31, United ‘‘high value nontax debt’’ means a nontax (2) GUIDELINES FOR AGREEMENTS REGARDING States Code. Sales under this subsection debt having an outstanding value (including PAYMENT.—The Secretary of the Treasury shall be conducted under the authority in principal, interest, and penalties) that ex- shall develop guidelines regarding agree- section 301. ceeds $1,000,000. ments between agencies and financial insti- ‘‘(B) The head of an executive, judicial, or SEC. 402. REVIEW BY INSPECTORS GENERAL. tutions under paragraph (1). legislative agency, in consultation with the The Inspector General of each agency shall SEC. 503. DEBT SERVICES ACCOUNT. Director of the Office of Management and review the applicable annual report to Con- (a) TRANSFER OF FUNDS TO DEBT SERVICES Budget and the Secretary of the Treasury, gress required in section 401 and make such ACCOUNT.—The Secretary of the Treasury may exempt from sale delinquent debt or recommendations as necessary to improve may transfer balances in accounts estab- debts under this subsection if the head of the performance of the agency. Each Inspector lished before the date of the enactment of agency determines that the sale is not in the General shall periodically review and report this Act pursuant to section of 3711(g)(7) of best financial interest of the United States. to Congress on the agency’s nontax debt col- title 31, United States Code, to the Debt ‘‘(2) The head of each executive, judicial, lection management practices. As part of Services Account established under sub- or legislative agency shall sell each loan ob- such reviews, the Inspector General shall ex- section (b). All amounts transferred to the ligation arising from a program adminis- amine agency efforts to reduce the aggregate Debt Services Account under this section tered by the agency, not later than 6 months amount of high value nontax debts that are shall remain available until expended. after the loan is disbursed, unless the head of resolved in whole or in part by compromise, (b) ESTABLISHMENT OF DEBT SERVICES AC- the agency determines that the sale would default, or bankruptcy. COUNT.—Subsection (g)(7) of section 3711 of interfere with the mission of the agency ad- SEC. 403. REQUIREMENT TO SEEK SEIZURE AND title 31, United States Code, is amended by ministering the program under which the FORFEITURE OF ASSETS SECURING striking the second sentence and inserting loan was disbursed, or the head of the agen- HIGH VALUE NONTAX DEBT. the following: ‘‘Any fee charged pursuant to cy, in consultation with the Director of the The head of an agency authorized to col- this subsection shall be deposited into an ac- Office of Management and Budget and the lect a high value nontax debt that is delin- count established in the Treasury to be Secretary of the Treasury, determines that a quent shall, when appropriate, promptly known as the ‘Debt Services Account’ (here- longer period is necessary to protect the fi- seek seizure and forfeiture of assets pledged inafter referred to in this section as the ‘Ac- nancial interests of the United States. Sales to the United States in any transaction giv- count’).’’ under this subsection shall be conducted ing rise to the nontax debt. When an agency (c) REIMBURSEMENT OF FUNDS.—Section under the authority in section 301. determines that seizure or forfeiture is not 3711(g) of title 31, United States Code, is ‘‘(3) After terminating collection action, appropriate, the agency shall include a jus- amended— the head of an executive, judicial, or legisla- tification for such determination in the re- (1) by striking paragraph (8); tive agency shall sell, using competitive pro- port under section 401. (2) by redesignating paragraphs (9) and (10) cedures, any nontax debt or class of nontax TITLE V—FEDERAL PAYMENTS as paragraphs (8) and (9), respectively; and debts owed to the United States unless the SEC. 501. TRANSFER OF RESPONSIBILITY TO SEC- (3) by amending paragraph (9) (as redesig- head of the agency, in consultation with the RETARY OF THE TREASURY WITH nated by paragraph (2)) to read as follows: Director of the Office of Management and RESPECT TO PROMPT PAYMENT. ‘‘(9) To carry out the purposes of this sub- Budget and the Secretary of the Treasury, (a) DEFINITION.—Section 3901(a)(3) of title section, including services provided under determines that the sale is not in the best fi- 31, United States Code, is amended by strik- sections 3716 and 3720A, the Secretary of the nancial interests of the United States. Sales ing ‘‘Director of the Office of Management Treasury may— under this paragraph shall be conducted and Budget’’ and inserting ‘‘Secretary of the ‘‘(A) prescribe such rules, regulations, and under the authority of subsection (i). Treasury’’. procedures as the Secretary considers nec- ‘‘(4)(A) The head of an executive, judicial, (b) INTEREST.—Section 3902(c)(3)(D) of title essary; or legislative agency shall not, without the 31, United States Code, is amended by strik- ‘‘(B) transfer such funds from funds appro- approval of the Attorney General, sell any ing ‘‘Director of the Office of Management priated to the Department of the Treasury as nontax debt that is the subject of an allega- and Budget’’ and inserting ‘‘Secretary of the may be necessary to meet liabilities and ob- tion of or investigation for fraud, or that has Treasury’’. ligations incurred prior to the receipt of fees been referred to the Department of Justice (c) REGULATIONS.—Section 3903(a) of title that result from debt collection; and for litigation. 31, United States Code, is amended by strik- ‘‘(C) reimburse any funds from which funds ‘‘(B) The head of an executive, judicial, or ing ‘‘Director of the Office of Management were transferred under subparagraph (B) legislative agency may exempt from sale and Budget’’ and inserting ‘‘Secretary of the from fees collected pursuant to sections 3711, under this subsection any class of nontax Treasury’’. 3716, and 3720A. Any reimbursement under debts or loans if the head of the agency de- SEC. 502. PROMOTING ELECTRONIC PAYMENTS. this subparagraph shall occur during the pe- termines that the sale would interfere with (a) EARLY RELEASE OF ELECTRONIC PAY- riod of availability of the funds transferred the mission of the agency administering the MENTS.—Section 3903(a) of title 31, United under subparagraph (B) and shall be avail- program under which the indebtedness was States Code, is amended— able to the same extent and for the same incurred.’’. (1) by amending paragraph (1) to read as purposes as the funds originally trans- TITLE IV—TREATMENT OF HIGH VALUE follows: ferred.’’. NONTAX DEBTS ‘‘(1) provide that the required payment (d) DEPOSIT OF TAX REFUND OFFSET FEES.— SEC. 401. ANNUAL REPORT ON HIGH VALUE date is— The last sentence of section 3720A(d) of title NONTAX DEBTS. ‘‘(A) the date payment is due under the 31, United States Code, is amended to read as (a) IN GENERAL.—Not later than 90 days contract for the item of property or service follows: ‘‘Amounts paid to the Secretary of after the end of each fiscal year, the head of provided; or the Treasury as fees under this section shall August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6783 be deposited into the Debt Services Account by providing the Federal Government Mr. Speaker, I yield such time as he of the Department of the Treasury described with additional authorities to improve may consume to the gentleman from in section 3711(g)(7) and shall be collected its collection of delinquent non-tax California (Mr. CALVERT). and accounted for in accordance with the debts. The bill would prohibit Federal provisions of that section.’’. b 1530 agencies from writing off delinquent TITLE VI—FEDERAL PROPERTY non-tax debts prior to initiating collec- Mr. CALVERT. Mr. Speaker, I rise to SEC. 601. AMENDMENT OF FEDERAL PROPERTY tion procedures. The bill authorizes the support passage of this bill. H.R. 1442 AND ADMINISTRATIVE SERVICES will amend the Federal Property and ACT OF 1949. offset or withholding of Social Secu- Section 203(p)(1)(B) of the Federal Property rity benefits to recipients who owe Administrative Services Act of 1949 to and Administrative Services Act of 1949 (40 past-due child support to a State. extend authority for transfers to State U.S.C. 484(p)(1)(B)) is amended— Currently, Social Security benefits and local governments of certain prop- (1) by striking clause (ii); can be intercepted to offset a recipi- erty for law enforcement and emer- (2) by striking ‘‘(i)’’; ent’s debt to the Federal Government. gency response purposes. (3) by striking ‘‘(I)’’ and inserting ‘‘(i)’’; This bill would assist States in their I introduced H.R. 1442, the Law En- and forcement Public Safety Enhancement (4) by striking ‘‘(II)’’ and inserting ‘‘(ii)’’. efforts to collect the billions of dollars in unpaid child support, billions of dol- Act of 1999, to permanently extend the The SPEAKER pro tempore. Pursu- pilot program that has become an im- ant to the rule, the gentleman from lars in unpaid child support. According to the Congressional Budget Office, portant tool for local law enforcement California (Mr. HORN) and the gen- and public safety officials. Without the this added offset authority would re- tleman from Texas (Mr. TURNER) each help, leadership and support of the gen- cover $17 million each year in past-due will control 20 minutes. tleman from California (Mr. HORN), my child support. To help eliminate waste, The Chair recognizes the gentleman good friend from Long Beach, Cali- fraud, and error in Federal benefit and from California (Mr. HORN). fornia, chairman of the Subcommittee credit programs, H.R. 1442, as amended, Mr. HORN. Mr. Speaker, I yield my- on Government Management, Informa- would authorize Federal agencies to self such time as I may consume. tion and Technology, this legislation bar delinquent debtors from obtaining H.R. 1442 the Law Enforcement and would never have come to the House a Federal permit, license or from re- Public Enhancement Act of 1999 is a floor. I owe a debt of gratitude to him ceiving financial assistance in the form bill introduced by my colleague from for helping to find the offsets necessary California (Mr. CALVERT). The amend- of a loan or loan guarantee until the for this bill to conform to budgetary ment I am offering aims to accomplish debt is repaid. constraints. two goals. First, it would improve the The bill also focuses attention on I would also like to thank the chair- efficiency and economy of Federal debt large debts. It would require agencies man of the Committee on Government collection practices, Federal credit to report annually to Congress on their Reform as well as the ranking members management and Federal travel prac- high value delinquent debts of $1 mil- of the full committee and sub- tices. lion or more. H.R. 1442, as amended, committee for their efforts. Second, the bill would also eliminate promotes the sale of new and delin- As we all know, one of the keys to a December 31, 1999, sunset date for a quent loans by Federal agencies. Loan crime prevention is a well-trained local provision in the Federal Property and sale programs would benefit the Fed- police force and public safety officials. Administrative Services Act that au- eral Government in a number of ways. My bill will strengthen law enforce- thorizes the transfer of surplus Federal Loans that are sold in a competitive ment and emergency management real property at no cost to the State market could yield substantial pro- training, while saving these organiza- and local governments for law enforce- ceeds, reduce administrative costs, and tions thousands, sometimes millions, ment and emergency response pur- allow agencies to focus their limited of dollars. poses. resources on other programs. An agen- When the Federal Government de- In a moment I will yield to the gen- cy with guidance from the Office of clares real property as a surplus, var- tleman from California (Mr. CALVERT) Management and Budget could exempt ious local entities may apply for the to explain the portion of the bill that any class of debt from the sale provi- property on a no-cost basis if they use would amend the Federal Property and sions of this bill if it were determined the property for some valid social pur- Administrative Services Act of 1949. that the sale would interfere with pose. To obtain the excess Federal First, however, let me say that the bill agencies, programs or mission. property, the local entity must apply before us contains a number of provi- For example, certain performing to a Federal agency to sponsor the no- sions that are designed to improve Fed- loans requiring specialized services cost transfer. My bill would perma- eral debt collection, credit manage- provided by the Federal departments nently extend this 2-year-old authority ment and travel management. As the and agencies could be exempt from the to allow local agencies the ability to Subcommittee on Government Man- sales provision of this bill by the agen- apply for surplus property at no cost agement, Information and Technology cy head in consultation with the direc- for the purpose of law enforcement and learned at its June 15, 1999, hearing on tor of the Office of Management and emergency response training. Federal debt collection, at the end of Budget provided that the sale would Due to the efforts of the Riverside, fiscal year 1998 the Federal Govern- interfere with the mission of an agency California, Sheriff’s Department to cre- ment was owed more than $60 billion in and be not in the financial interests of ate a comprehensive multijuris- delinquent, non-tax debt such as stu- the United States. dictional training center, the need for dent loans and housing loans. The bill, as amended, also includes this legislation became clear. In 1997, More than $49 billion of this $60 bil- provisions to improve Federal em- Congress passed legislation to create a lion in delinquent non-tax debts was ployee travel management. The admin- 2-year pilot program to allow the De- delinquent for more than 180 days. To istrator of General Services would be partment of Justice and the Federal facilitate collection of this enormous required to develop a mechanism to en- Emergency Management Agency to amount of non-tax debt, Congress sure that employees of executive sponsor local law enforcement and passed and the President signed into branch agencies are not charged State emergency management response enti- law the Debt Collection Improvement and local taxes on travel expenses re- ties for a no cost transfer. The results Act of 1996. This bipartisan legislation lating to official business. H.R. 1442 of this 2-year program are startling. in which the gentlewoman from New also includes a provision that would re- Twenty-one separate local agencies in York (Mrs. MALONEY) was the ranking move a December 31, 1999, sunset provi- 11 States applied for this program. member and joined me in authoring sion in the Federal Property and Ad- Their applications are in various stages this legislation, this bipartisan legisla- ministrative Services Act of 1949. It of the process. Without this legislation, tion established significant new debt would make permanent the authority these projects will be stopped in their collection authorities and enhanced ex- for State and local governments to ac- tracks. isting ones. quire surplus Federal property for law I would like to encourage all of my H.R. 1442, as amended, builds upon enforcement and emergency response colleagues to support this pro-law en- the Debt Collection Improvement Act purposes. forcement legislation and give back to H6784 CONGRESSIONAL RECORD — HOUSE August 2, 1999 the men and women that battle on our 1997 to $2.5 billion in fiscal year 1999, working closely with the administra- streets every day. after the Debt Collection Improvement tion. Mr. TURNER. Mr. Speaker, I yield Act enhanced the Treasury’s offset au- Mr. CRAMER. Mr. Speaker, I rise today in myself such time as I may consume. thority. support of H.R. 1442, the Law Enforcement Mr. Speaker, the Federal Property Clearly there has been improvement and Public Safety Enhancement Act of 1999. Act currently allows surplus Federal in the government collection efforts. I am a co-sponsor of this legislation which property to be transferred to state and There are, however, many challenges makes permanent the General Services Ad- local governments at a discount off the that remain. According to the Depart- ministration authority to transfer federal sur- fair market value. Public benefit dis- ment of Treasury, the Federal Govern- plus lands at no cost to state and local gov- counts are available under current law ment is owed approximately $50 billion for public health or educational uses, in delinquent, non-taxed debt. Of this ernments for the purpose of law enforcement public parks or recreational areas, his- amount, $47 billion has been delinquent and emergency response services. toric monuments, correctional institu- for more than 180 days. In addition, the H.R. 1442 will have a direct and immediate tions, port facilities, public airports Federal Government writes off about impact on my Congressional District as well as and wildlife conservation. $10 billion in delinquent debts every a number of other districts throughout the In 1997, this Congress overwhelm- year. country. Currently, thirteen sites across the ingly passed a bill that made Federal H.R. 1442 focuses management atten- nation, one of which is in my District, are uti- surplus property available to State and tion on high-risk programs and builds lizing a temporary authorization allowing the local authorities for law enforcement upon prior initiatives to improve Fed- Department of Justice (DOJ) to transfer ex- and emergency response purposes for a eral debt collection practices by pro- cess federal property to local government enti- 2-year trial period. With the sunset viding Federal agencies with the addi- ties for law enforcement and public safety pur- date fast approaching in December of tional tools they need to improve Fed- poses. this year, H.R. 1442, which was intro- eral debt collection. It is almost iden- This temporary authority, which expires De- duced through the good work of the tical to H.R. 4857, a bill that passed the cember 31, 1999, allows local law enforce- gentleman from California (Mr. CAL- House of Representatives with over- ment, fire services, and emergency manage- VERT), we will extend that worthwhile whelming bipartisan support under sus- ment agencies the opportunity to receive fed- provision and make it permanent. pension of the rules in the 105th Con- eral surplus property through a ``no-cost'' Mr. Speaker, this bill would allow gress. We passed these provisions by a transfer. This legislation aims to make perma- the Department of Justice and FEMA vote of 419 to 1 earlier this year. nent this temporary authority. to sponsor the use of excess Federal I would like to commend the gen- property for law enforcement and fire tleman from California (Chairman In my Congressional District, the Fifth Dis- fighting and rescue training purposes. I HORN), who has done an outstanding trict of Alabama, the City of Huntsville has ap- expect this bill will move quickly job in leading to improve the Federal plied for the transfer of a Naval Reserve Cen- through the legislative process and be- debt collection practices through his ter to the City for use as a public safety train- come law. Only last week the Senate diligent legislative oversight activi- ing facility for our police officers, firefighters, successfully included a similar provi- ties. The gentleman has worked to as- and rescue personnel. This facility will allow sion in the Commerce-Justice-State sure that the taxpayers get every dol- Huntsville to provide excellent training to the appropriations bill for fiscal year 2000. lar they are entitled to and no more. men and women who safeguard our citizens. There are currently at least 22 juris- I also want to mention and commend Currently, Huntsville's application is under re- dictions around the country who have the leadership of the gentlewoman view. Many projects that are currently under- submitted applications to acquire sur- from New York (Mrs. MALONEY), who way or those pending applications for land plus Federal property for these pur- has continued her partnership with the transfersÐlike the one in my districtÐwill be poses, and at least three of them have gentleman from California (Chairman severely impacted by the quickly approaching successfully acquired their property. HORN) since the time she served in the sunset date of December 31, 1999. This legis- We must not deny the remaining 19 the position of ranking member of this sub- lation will permanently allow the Department of opportunity to complete their applica- committee. Justice (DOJ) and the Federal Emergency tion process and to secure the property Mr. Speaker, I have no further re- Management Agency (FEMA) to sponsor the that they need to make their commu- quests for time, and I yield back the use of excess federal property for law enforce- nities safer. balance of my time. ment, public safety, and emergency manage- Law enforcement and fire rescue Mr. HORN. Mr. Speaker, I yield my- ment purposes. services provide vital services for State self such time as I may consume. I would like to once again express my and local governments, and it is crit- Mr. Speaker, I just want to thank the strong support for this legislation. We in Con- ical that we allow them to acquire this gentleman from Texas (Mr. TURNER), gress can and should do everything in our Federal surplus property at a discount. the ranking member. He had an excel- power to assist law enforcement officers, fire- This legislation benefits police offi- lent series of questions this morning of fighters, and emergency management per- cers, fire fighters, and other emergency the Commissioner of Internal Revenue sonnel in their efforts to improve public safety response officials across the country, and the General Accounting Officer. on our streets, in our schools, and in our and I commend the gentleman from The gentleman is deeply committed to neighborhoods. California (Mr. CALVERT) for his hard an effective and efficient government, work on this particular provision. and especially to getting at the non- Mr. HORN. Mr. Speaker, I yield back In addition, H.R. 1442, as amended, is tax debt. the balance of my time. designed to address problems with Fed- Mr. Speaker, I urge my colleagues to The SPEAKER pro tempore. The eral debt collection and Federal credit support this legislation. H.R. 1442, as question is on the motion offered by management. In 1996 Congress passed amended, contains provisions designed the gentleman from California (Mr. the Debt Collection Improvement Act, to improve the efficiency and effective- HORN) that the House suspend the rules which was designed to centralize man- ness of Federal debt collection and and pass the bill, H.R. 1442, as amend- agement of Federal debt collection at credit management. It would also as- ed. the Department of Treasury and to en- sist State and local governments in hance cooperation of Federal agencies their efforts to acquire much needed The question was taken; and (two- in the collection of delinquent debt. surplus property for law enforcement thirds having voted in favor thereof) Within the past 2 years, the Federal and emergency response. This legisla- the rules were suspended and the bill, Government centralized debt collection tion has broad bipartisan support, as as amended, was passed. activities at the Financial Manage- was evident on the floor. The provi- The title of the bill was amended so ment Service have begun to work more sions are the result of a bipartisan ef- as to read: ‘‘To reduce waste, fraud, efficiently. In fact, collections have fort between majority and minority on and error in Government programs by grown from $1.7 million in fiscal year the Committee on Government Reform, making improvements with respect to August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6785 Federal management and debt collec- SEC. 3. POLICY OF THE UNITED STATES. ‘‘(3) assisting in the reconstruction of resi- tion practices, Federal payment sys- It shall be the policy of the United States dential and economic infrastructure de- tems, Federal benefit programs, and for in the countries of the South Caucasus and stroyed by war. ‘‘(d) POLICY.—It is the sense of the Con- other purposes.’’. Central Asia— (1) to promote and strengthen independ- gress that the United States should, where A motion to reconsider was laid on ence, sovereignty, democratic government, appropriate, support the establishment of the table. and respect for human rights; neutral, multinational peacekeeping forces f (2) to promote tolerance, pluralism, and to implement peace agreements reached be- understanding and counter racism and anti- tween belligerents in the countries of the GENERAL LEAVE Semitism; South Caucasus and Central Asia. Mr. HORN. Mr. Speaker, I ask unani- (3) to assist actively in the resolution of ‘‘SEC. 499A. ECONOMIC ASSISTANCE. mous consent that all Members may regional conflicts and to facilitate the re- ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose have 5 legislative days within which to moval of impediments to cross-border com- of assistance under this section is to foster revise and extend their remarks on merce; economic growth and development, including (4) to promote friendly relations and eco- the conditions necessary for regional eco- H.R. 1442, as amended. nomic cooperation; nomic cooperation, among the countries of The SPEAKER pro tempore. Is there (5) to help promote market-oriented prin- the South Caucasus and Central Asia. objection to the request of the gen- ciples and practices; ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To tleman from California? (6) to assist in the development of the in- carry out the purpose of subsection (a), the There was no objection. frastructure necessary for communications, President is authorized to provide assistance f transportation, education, health, and en- for the countries of the South Caucasus and ergy and trade on an East-West axis in order Central Asia to support the activities de- SILK ROAD STRATEGY ACT OF 1999 to build strong international relations and scribed in subsection (c). commerce between those countries and the ‘‘(c) ACTIVITIES SUPPORTED.—In addition to Mr. BEREUTER. Mr. Speaker, I move the activities described in section 498, activi- to suspend the rules and pass the bill stable, democratic, and market-oriented countries of the Euro-Atlantic Community; ties supported by assistance under sub- (H.R. 1152) to amend the Foreign As- and section (b) should support the development sistance Act of 1961 to target assist- (7) to support United States business inter- of the structures and means necessary for ance to support the economic and po- ests and investments in the region. the growth of private sector economies based litical independence of the countries of SEC. 4. UNITED STATES EFFORTS TO RESOLVE upon market principles. ‘‘(d) POLICY.—It is the sense of the Con- South Caucasus and Central Asia, as CONFLICTS IN THE SOUTH CAUCASUS AND CENTRAL ASIA. gress that the United States should— amended. ‘‘(1) assist the countries of the South The Clerk read as follows: It is the sense of the Congress that the President should use all diplomatic means Caucasus and Central Asia to develop poli- H.R. 1152 practicable, including the engagement of cies, laws, and regulations that would facili- Be it enacted by the Senate and House of Rep- senior United States Government officials, tate the ability of those countries to develop resentatives of the United States of America in to press for an equitable, fair, and permanent free market economies and to join the World Congress assembled, resolution to the conflicts in the South Trade Organization to enjoy all the benefits SECTION 1. SHORT TITLE. Caucasus and Central Asia. of membership; and ‘‘(2) consider the establishment of zero-to- This Act may be cited as the ‘‘Silk Road SEC. 5. AMENDMENT TO THE FOREIGN ASSIST- Strategy Act of 1999’’. ANCE ACT OF 1961. zero tariffs between the United States and Part I of the Foreign Assistance Act of 1961 the countries of the South Caucasus and SEC. 2. FINDINGS. Central Asia. Congress makes the following findings: (22 U.S.C. 2151 et seq.) is amended by adding at the end the following new chapter: ‘‘SEC. 499B. DEVELOPMENT OF INFRASTRUC- (1) The ancient Silk Road, once the eco- TURE. nomic lifeline of Central Asia and the South ‘‘CHAPTER 12—SUPPORT FOR THE ECO- ‘‘(a) PURPOSE OF PROGRAMS.—The purposes Caucasus, traversed much of the territory NOMIC AND POLITICAL INDEPENDENCE of programs under this section include— now within the countries of Armenia, Azer- OF THE COUNTRIES OF THE SOUTH ‘‘(1) to develop the physical infrastructure baijan, Georgia, Kazakstan, Kyrgyzstan, CAUCASUS AND CENTRAL ASIA necessary for regional cooperation among Tajikistan, Turkmenistan, and Uzbekistan. ‘‘SEC. 499. UNITED STATES ASSISTANCE TO PRO- the countries of the South Caucasus and (2) Economic interdependence spurred mu- MOTE RECONCILIATION AND RECOV- Central Asia; and tual cooperation among the peoples along ERY FROM REGIONAL CONFLICTS. ‘‘(2) to encourage closer economic relations the Silk Road and restoration of the historic ‘‘(a) PURPOSE OF ASSISTANCE.—The pur- and to facilitate the removal of impediments relationships and economic ties between poses of assistance under this section to cross-border commerce among those coun- those peoples is an important element of en- include— tries and the United States and other devel- suring their sovereignty as well as the suc- ‘‘(1) the creation of the basis for reconcili- oped nations. cess of democratic and market reforms. ation between belligerents in the countries ‘‘(b) AUTHORIZATION FOR PROGRAMS.—To (3) The development of strong political, of the South Caucasus and Central Asia; carry out the purposes of subsection (a), the economic, and security ties among countries ‘‘(2) the promotion of economic develop- following types of programs for the countries of the South Caucasus and Central Asia and ment in areas of the countries of the South of the South Caucasus and Central Asia may the West will foster stability in this region, Caucasus and Central Asia impacted by civil be used to support the activities described in which is vulnerable to political and eco- conflict and war; and subsection (c): nomic pressures from the south, north, and ‘‘(3) the encouragement of broad regional ‘‘(1) Activities by the Export-Import Bank east. cooperation among countries of the South of the United States to complete the review (4) The development of open market econo- Caucasus and Central Asia that have been process for eligibility for financing under the mies and open democratic systems in the destabilized by internal conflicts. Export-Import Bank Act of 1945. countries of the South Caucasus and Central ‘‘(b) AUTHORIZATION FOR ASSISTANCE.— ‘‘(2) The provision of insurance, reinsur- Asia will provide positive incentives for ‘‘(1) IN GENERAL.—To carry out the pur- ance, financing, or other assistance by the international private investment, increased poses of subsection (a), the President is au- Overseas Private Investment Corporation. trade, and other forms of commercial inter- thorized to provide humanitarian assistance ‘‘(3) Assistance under section 661 of this actions with the rest of the world. and economic reconstruction assistance for Act (relating to the Trade and Development (5) Many of the countries of the South the countries of the South Caucasus and Agency). Caucasus have secular Muslim governments Central Asia to support the activities de- ‘‘(c) ACTIVITIES SUPPORTED.—Activities that are seeking closer alliance with the scribed in subsection (c). that may be supported by programs under United States and that have active and cor- ‘‘(2) DEFINITION OF HUMANITARIAN ASSIST- subsection (b) include promoting actively dial diplomatic relations with Israel. ANCE.—In this subsection, the term ‘humani- the participation of United States companies (6) The region of the South Caucasus and tarian assistance’ means assistance to meet and investors in the planning, financing, and Central Asia could produce oil and gas in suf- humanitarian needs, including needs for construction of infrastructure for commu- ficient quantities to reduce the dependence food, medicine, medical supplies and equip- nications, transportation, including air of the United States on energy from the ment, education, and clothing. transportation, and energy and trade, includ- volatile Persian Gulf region. ‘‘(c) ACTIVITIES SUPPORTED.—Activities ing highways, railroads, port facilities, ship- (7) United States foreign policy and inter- that may be supported by assistance under ping, banking, insurance, telecommuni- national assistance should be narrowly tar- subsection (b) include— cations networks, and gas and oil pipelines. geted to support the economic and political ‘‘(1) providing for the humanitarian needs ‘‘(d) POLICY.—It is the sense of the Con- independence as well as democracy building, of victims of the conflicts; gress that the United States representatives free market policies, human rights, and re- ‘‘(2) facilitating the return of refugees and at the International Bank for Reconstruc- gional economic integration of the countries internally displaced persons to their homes; tion and Development, the International Fi- of the South Caucasus and Central Asia. and nance Corporation, and the European Bank H6786 CONGRESSIONAL RECORD — HOUSE August 2, 1999 for Reconstruction and Development should section (b), assistance may not be provided II for assistance for the independent states of encourage lending to the countries of the under this chapter for the government of a the former Soviet Union may be used in ac- South Caucasus and Central Asia to assist country of the South Caucasus or Central cordance with the provisions of this chapter. the development of the physical infrastruc- Asia if the President determines and cer- ‘‘(c) TERMS AND CONDITIONS.—Assistance ture necessary for regional economic co- tifies to the appropriate congressional com- under this chapter shall be provided on such operation. mittees that the government of such terms and conditions as the President may ‘‘SEC. 499C. BORDER CONTROL ASSISTANCE. country— determine. ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose ‘‘(A) is engaged in a consistent pattern of ‘‘(d) AVAILABLE AUTHORITIES.—The author- of assistance under this section includes aid- gross violations of internationally recog- ity in this chapter to provide assistance for ing the countries of the South Caucasus and nized human rights; the countries of the South Caucasus and Central Asia to secure their borders and im- ‘‘(B) has, on or after the date of enactment Central Asia is in addition to the authority plement effective controls necessary to pre- of this chapter, knowingly transferred to, or to provide such assistance under the FREE- vent the trafficking of illegal narcotics and knowingly allowed to be transferred through DOM Support Act (22 U.S.C. 5801 et seq.) or the proliferation of technology and mate- the territory of such country to, another any other Act, and the authorities applicable rials related to weapons of mass destruction country— to the provision of assistance under chapter (as defined in section 2332a(c)(2) of title 18, ‘‘(i) missiles or missile technology incon- 11 may be used to provide assistance under United States Code), and to contain and in- sistent with the guidelines and parameters of this chapter. hibit transnational organized criminal ac- the Missile Technology Control Regime (as ‘‘SEC. 499G. DEFINITIONS. tivities. defined in section 11B(c) of the Export Ad- ‘‘In this chapter: ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To ministration Act of 1979 (50 U.S.C. App. ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT- carry out the purpose of subsection (a), the 2410b(c)); or TEES.—The term ‘appropriate congressional President is authorized to provide assistance ‘‘(ii) any material, equipment, or tech- committees’ means the Committee on For- to the countries of the South Caucasus and nology that would contribute significantly eign Relations of the Senate and the Com- Central Asia to support the activities de- to the ability of such country to manufac- mittee on International Relations of the scribed in subsection (c). ture any weapon of mass destruction (includ- House of Representatives. ‘‘(c) ACTIVITIES SUPPORTED.—Activities ing any nuclear, chemical, or biological ‘‘(2) COUNTRIES OF THE SOUTH CAUCASUS AND that may be supported by assistance under weapon) if the President determines that the CENTRAL ASIA.—The term ‘countries of the subsection (b) include assisting those coun- material, equipment, or technology was to South Caucasus and Central Asia’ means Ar- tries of the South Caucasus and Central Asia be used by such country in the manufacture menia, Azerbaijan, Georgia, Kazakstan, in developing capabilities to maintain na- of such weapons; Kyrgyzstan, Tajikistan, Turkmenistan, and tional border guards, coast guard, and cus- ‘‘(C) has repeatedly provided support for Uzbekistan.’’. toms controls. acts of international terrorism; SEC. 6. ANNUAL REPORT. ‘‘(d) POLICY.—It is the sense of the Con- ‘‘(D) is prohibited from receiving such as- Section 104 of the FREEDOM Support Act gress that the United States should encour- sistance by chapter 10 of the Arms Export (22 U.S.C. 5814) is amended— age and assist the development of regional Control Act or section 306(a)(1) and 307 of the (1) by striking ‘‘and’’ at the end of para- military cooperation among the countries of Chemical and Biological Weapons Control graph (3); the South Caucasus and Central Asia and Warfare Elimination Act of 1991 (22 (2) by striking the period at the end of through programs such as the Central Asian U.S.C. 5604(a)(1), 5605); or paragraph (4) and inserting ‘‘; and’’; and Battalion and the Partnership for Peace of ‘‘(E) has not made significant progress to- (3) by adding the following new paragraph: the North Atlantic Treaty Organization. ward resolving trade disputes registered with ‘‘(5) with respect to the countries of the ‘‘SEC. 499D. STRENGTHENING DEMOCRACY, TOL- and raised by the United States embassy in South Caucasus and Central Asia— ERANCE, AND THE DEVELOPMENT such country. OF CIVIL SOCIETY. ‘‘(A) identifying the progress of United ‘‘(2) CERTIFICATIONS PRIOR TO ELIGIBILITY.— ‘‘(a) PURPOSE OF ASSISTANCE.—The purpose States foreign policy to accomplish the pol- Assistance may not be provided under this of assistance under this section is to pro- icy identified in section 3 of the Silk Road chapter to a country unless the President mote institutions of democratic government Strategy Act of 1999; certifies to the appropriate congressional and to create the conditions for the growth ‘‘(B) evaluating the degree to which the as- committees that elections held in that coun- of pluralistic societies, including religious sistance authorized by chapter 12 of part I of try are free and fair and are free of substan- tolerance and respect for internationally the Foreign Assistance Act of 1961 has been tial criticism by the Organization for Secu- recognized human rights, in the countries of able to accomplish the purposes identified in rity and Cooperation in Europe and other ap- the South Caucasus and Central Asia. that chapter; and propriate international organizations.’’. ‘‘(b) AUTHORIZATION FOR ASSISTANCE.—To ‘‘(C) recommending any additional initia- carry out the purpose of subsection (a), the ‘‘(b) EXCEPTIONS TO INELIGIBILITY.— tives that should be undertaken by the President is authorized to provide the fol- ‘‘(1) EXCEPTIONS.—Assistance prohibited by United States to implement the policy and lowing types of assistance to the countries of subsection (a) or any similar provision of purposes contained in the Silk Road Strat- the South Caucasus and Central Asia: law, other than assistance prohibited by the egy Act of 1999.’’. ‘‘(1) Assistance for democracy building, in- provisions referred to in subparagraphs (B) SEC. 7. UNITED STATES-ISRAEL ECONOMIC DE- cluding programs to strengthen parliamen- and (D) of subsection (a)(1), may be furnished VELOPMENT COOPERATION IN THE tary institutions and practices. under any of the following circumstances: SOUTH CAUCASUS AND CENTRAL ASIA. ‘‘(2) Assistance for the development of non- ‘‘(A) The President determines that fur- It is the sense of the Congress that the governmental organizations. nishing such assistance is important to the United States should continue to provide as- ‘‘(3) Assistance for development of inde- national interest of the United States. sistance to the Centre for International Co- pendent media. ‘‘(B) The President determines that fur- operation (MASHAV) of the Ministry of For- ‘‘(4) Assistance for the development of the nishing such assistance will foster respect eign Affairs of Israel under the Cooperative rule of law, a strong independent judiciary, for internationally recognized human rights Development Program/Central Asian Repub- and transparency in political practice and and the rule of law or the development of in- lics (CDP/CAR) program of the United States commercial transactions. stitutions of democratic governance. Agency for International Development, for ‘‘(5) International exchanges and advanced ‘‘(C) The assistance is furnished for the al- economic development activities in agri- professional training programs in skill areas leviation of suffering resulting from a nat- culture, health, and other relevant sectors, central to the development of civil society. ural or man-made disaster. that are consistent with the priorities of the ‘‘(6) Assistance to promote increased ad- ‘‘(D) The assistance is provided under the Agency for International Development in the herence to civil and political rights under secondary school exchange program adminis- countries of the South Caucasus and Central section 116(e) of this Act. tered by the United States Information ‘‘(c) ACTIVITIES SUPPORTED.—Activities Agency. Asia. that may be supported by assistance under ‘‘(2) REPORT TO CONGRESS.—The President SEC. 8. CONFORMING AMENDMENTS. subsection (b) include activities that are de- shall immediately report to Congress any de- Section 102(a) of the FREEDOM Support signed to advance progress toward the devel- termination under paragraph (1) (A) or (B) or Act (Public Law 102–511) is amended in para- opment of democracy. any decision to provide assistance under graphs (2) and (4) by striking each place it ‘‘(d) POLICY.—It is the sense of the Con- paragraph (1)(C). appears ‘‘this Act)’’ and inserting ‘‘this Act gress that the Voice of America and RFE/RL, ‘‘SEC. 499F. ADMINISTRATIVE AUTHORITIES. and the Silk Road Strategy Act of 1999)’’. Incorporated, should maintain high quality ‘‘(a) ASSISTANCE THROUGH GOVERNMENTS SEC. 9. DEFINITIONS. broadcasting for the maximum duration pos- AND NONGOVERNMENTAL ORGANIZATIONS.—As- In this Act: sible in the native languages of the countries sistance under this chapter may be provided (1) APPROPRIATE CONGRESSIONAL COMMIT- of the South Caucasus and Central Asia. to governments or through nongovernmental TEES.—The term ‘‘appropriate congressional ‘‘SEC. 499E. INELIGIBILITY FOR ASSISTANCE. organizations. committees’’ means the Committee on For- ‘‘(a) IN GENERAL.— ‘‘(b) USE OF ECONOMIC SUPPORT FUNDS.— eign Relations of the Senate and the Com- ‘‘(1) BASES FOR EXCLUSION.—Subject to Except as otherwise provided, any funds that mittee on International Relations of the paragraph (2), and except as provided in sub- have been allocated under chapter 4 of part House of Representatives. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6787 (2) COUNTRIES OF THE SOUTH CAUCASUS AND and the Central Asian states are stra- publics and, indeed, moved the Free- CENTRAL ASIA.—The term ‘‘countries of the tegically located at the geographic dom Support Act for just this purpose. South Caucasus and Central Asia’’ means Ar- nexus of Russia, China, Iran, Afghani- b 1545 menia, Azerbaijan, Georgia, Kazakstan, stan and Turkey. At least six are sec- Kyrgyzstan, Tajikistan, Turkmenistan, and This body can and must continue leg- Uzbekistan. ular Islamic states that largely have rejected the expansion of Islamic fun- islative initiatives in this area. This The SPEAKER pro tempore. Pursu- damentalism. They are a front-line Member’s proposed legislation, H.R. ant to the rule, the gentleman from force in U.S. efforts to contain the 1152, the Silk Road Strategy Act of Nebraska (Mr. BEREUTER) and the gen- spread of terrorism, the proliferation of 1999, is an essential tool in building to- tleman from Pennsylvania (Mr. sensitive weapons and technologies and ward U.S. goals in the region. Broadly, HOEFFEL) each will control 20 minutes. drug trafficking. Rich in natural re- this bill targets U.S. assistance to sup- The Chair recognizes the gentleman sources, these nations are a proven port the economic and political inde- from Nebraska (Mr. BEREUTER). storehouse of energy with vast crude pendence and cross-border cooperation GENERAL LEAVE oil and natural gas reserves. of the Caucasus and Central Asian Mr. BEREUTER. Mr. Speaker, I ask Second, given the region’s clear im- states. This puts the U.S. squarely be- unanimous consent that all Members portance, it is time for the United hind efforts to, first, build democracy may have 5 legislative days within States to become more energetically and cross-border cooperation as well as which to revise and extend their re- and effectively engaged in the region, resolve regional conflicts; second, to marks on H.R. 1152, as amended. for this area is at an historic cross- build market-oriented economies and The SPEAKER pro tempore. Is there roads, poised between merging into or legal systems as well as the infrastruc- objection to the request of the gen- retreating from the free world order. It ture to facilitate strong East-West tleman from Nebraska? is undergoing an uncertain and turbu- commerce and other relations; and, There was no objection. lent economic, political and cultural third, to promote U.S. business inter- Mr. BEREUTER. Mr. Speaker, I yield transformation. ests and investments in the region. myself such time as I may consume. H.R. 1152 seeks to invigorate and pro- Sustained, affordable engagement (Mr. BEREUTER asked and was vide direction to U.S. policy in the that matches U.S. ambitions with re- given permission to revise and extend Caucasus region and the Central Asian sources is indispensable to the Caspian his remarks.) Republics. region’s evolution in a manner compat- Mr. BEREUTER. Mr. Speaker, as the First, it outlines what our foreign ible with the Free World order and in- Vice Chairman of the Committee on policy and foreign aid priorities should terests. H.R. 1152 is an essential tool in International Relations and the origi- be. helping to ensure that the region’s po- nal sponsor of H.R. 1152, this Member Second, it delineates potential re- litical and economic options are clear rises in strong support of the Silk Road wards for continued cooperation with and expansive, and that the far-reach- Strategy Act of 1999. In introducing the United States, as well as actions ing changes under way in the nations this important legislation, this Mem- that would result in the termination of there will turn out to be desirable ones. ber was joined by the distinguished U.S. assistance. Mr. Speaker, this Member urges his ranking Democrat on the Sub- Third, it does not authorize new colleagues to vote in favor of H.R. 1152, committee on Asia and the Pacific, the money. Instead, it redirects funding al- the Silk Road Strategy Act of 1999. gentleman from California (Mr. LAN- ready provided to the countries of the Mr. Speaker, I reserve the balance of TOS), the distinguished gentleman from former Soviet Union. my time. New York (Mr. ACKERMAN), the distin- Fourth, it does not address the dif- Mr. HOEFFEL. Mr. Speaker, I yield guished gentleman from California ficult question of section 907 of the myself such time as I may consume. (Mr. BERMAN) and many other col- Foreign Assistance Act, the prohibi- Mr. Speaker, I rise in strong support leagues in the House who were inter- tion of assistance to Azerbaijan. of H.R. 1152, the Silk Road Strategy ested in and concerned about improv- Frankly, where the votes are on this Act. I would like to start by com- ing U.S. relations with the countries in issue is well-known, and elements of mending the distinguished gentleman this vital region of the world. this legislation are too important to from Nebraska (Mr. BEREUTER) for his Mr. Speaker, with the disintegration subordinate to a Section 907 debate. leadership on this bill. He is the prime of the Soviet Union in 1991, Russia be- The states of this region are looking sponsor. He is the distinguished chair came the focus of U.S. attention and to the outside for political and eco- of the Subcommittee on Asia and the heir to the vast Soviet arsenal. Russia nomic support, to Russia and Iran and Pacific, and has provided great leader- also retained the Soviet permanent Turkey potentially, to China and Paki- ship on this. seat on the UN Security Council and stan, and even to Afghanistan, as well Mr. Speaker, I also commend as well membership now, of course, in the G–8. as to the United States. They are ac- a bipartisan group of cosponsors from A peaceful post-Soviet era largely de- tively looking to the United States for the committee, including the gen- pended on Washington’s ability to get leadership and guidance on a range of tleman from California (Mr. LANTOS), along with Moscow. It is not surprising international issues and to long-stand- the gentleman from California (Mr. then that U.S. attention, including the ing U.S. friends in the area, such as BERMAN), the gentleman from New Freedom Support Act, was directed Israel and Turkey, for closer relations. York (Mr. ACKERMAN), and the gen- principally at Moscow. At this crucial juncture in their evo- tleman from New York (Mr. KING). We should remember, however, that lution, the support the U.S. does pro- Mr. Speaker, the five countries of 15 countries emerged or reemerged vide can tip the scales of these coun- Central Asia and the three countries of from the collapse of the Soviet Union. tries’ orientation towards or against the South Caucasus are an important A few, the Baltics and Ukraine, gar- the West. We have a unique oppor- part of the newly independent States. nered special attention in the Freedom tunity to influence events there now by This bill recognizes the unique inter- Support Act, or in the SEED Act, adopting a broad-based and proactive ests that the United States has in these which addressed Eastern Europe. But policy of engagement designed to keep countries. the Caucasus and Central Asia region conquerors away from the region, to We have a strategic interest in seeing received scant attention. foster cooperation among the states, that the region does not become a hot- The area includes some 75 million and to unleash and channel the engines bed of armed conflict, terrorism and people in the Nations of Georgia, Ar- of growth, economic, social and demo- drug trafficking, and we have some rea- menia, Azerbaijan, Turkmenistan, cratic growth. son to worry. Many of these countries Uzbekistan, Kazakhstan, Kyrgystan We cannot build toward these goals have difficult neighbors, including and Tajikistan. without the creation and use of effec- Iran, Afghanistan, and China. Mr. Speaker, two points are clear as tive tools. This body has been at the The region is also rife with not only we look at the situation in these eight forefront in encouraging the formation the seeds of ethnic and political con- countries. First, there is much at stake of coherent policies for assisting the flict, but as we have seen in Nagorno- for our national security. The Caucasus Caucasus region and Central Asian re- Karabagh, with actual conflicts that H6788 CONGRESSIONAL RECORD — HOUSE August 2, 1999 have claimed tens of thousands of lives that we all share. If these issues are The bill simply ensures that an added, spe- and have created hundreds of thou- not resolved during the conference, it cific focus on the states of Central Asia and sands of refugees. may jeopardize administration support the Caucasus. We have legitimate and important for the final version of this bill. Mr. Speaker, I support passage of this economic interests in Central Asia and Mr. Speaker, it is my view and our measure, which should serve as a signal of the Caucasus. All eight of these coun- view that this bill is helpful; that it fo- America's interest in the future of the eight tries have a lot to offer in terms of nat- cuses attention on the region, makes a newly independent states in the regions of ural and human resources. There is call for a renewed push on solving re- Central Asia and the Caucasus. great potential for trade and invest- gional conflicts promoting regional in- It should serve as well as a signal to the ment and a positive exchange of people tegration and democratization. I urge peoples of those countries of America's desire and ideas. all of the Members of the House to sup- to ensure that their future will be one of de- We have a great political interest in port this bill, H.R. 1152. mocracy, prosperity, peace and security. Central Asia and the South Caucasus. Mr. Speaker, I reserve the balance of Mr. Speaker, I urge my colleagues to join in These countries are still emerging my time. supporting the passage of this measure. from Soviet rule, and it is in our inter- Mr. BEREUTER. Mr. Speaker, I yield Mr. BEREUTER. Mr. Speaker, I yield est to help them in the difficult transi- myself such time as I may consume. to the distinguished gentleman from tion away from their communist past. Mr. Speaker, I first want to thank California (Mr. RADANOVICH) for the Unfortunately, many of the govern- the distinguished gentleman from purposes of a colloquy. And I would say ments of the region have a long way to Pennsylvania (Mr. HOEFFEL), a first- as we begin this that the gentleman go regarding democratization. It is our term member of the Committee on has been very much interested and con- desire to engage these countries eco- International Relations, who is making cerned about this legislation and sup- nomically and to pursue our strategic a major contribution there, for his portive overall and came to the com- interests, but we must not neglect the kind remarks and for his support. I re- mittee hearings and participated in democratization that must occur there. call well how the gentleman came up those hearings. Mr. Speaker, this dis- We need to keep democratic values and to me after the markup and pointed tinguished gentleman from California human rights at the top of the agenda out something that we mutually is a new member of the committee. Mr. RADANOVICH. Mr. Speaker, I in the bilateral meetings with leaders agreed was a problem, and we have a way outlined to resolve it and I think thank the gentleman from Nebraska of all eight of these countries and need to meet the administration’s satisfac- (Mr. BEREUTER) for his leadership in to reach out further to those within tion. It was one of those things that we bringing this bill to the floor. I share these countries that are working to de- recognized, but at the moment we the gentleman’s vision in promoting velop a civil society, including inde- could not do anything about. Mr. greater regional cooperation, sup- pendent media, the people in the non- Speaker, I want to thank the gen- porting increased economic integra- governmental sector and in private tleman for his perceptiveness in that tion, and facilitating the free flow of business. respect. transportation and communication It is imperative that we make sure Mr. Speaker, at this point I submit among the States of the Caucasus and that democratization becomes and re- for the RECORD a statement in support Central Asia. mains a priority of ours in this region. of the legislation from the gentleman While I support these goals, I along Mr. Speaker, I also welcome the in- from New York (Mr. GILMAN), the with many of my colleagues, remain clusive nature of the bill. We recognize chairman of the committee. concerned that this legislation may, at the fact that these countries are inter- Mr. Speaker, the gentleman indi- a subsequent step in the legislative related, there is economic integration cates, for example, that he believes process, become a vehicle for the weak- that is needed in this region, and that this legislation will serve as a signal to ening or the repeal of Section 907 of the includes all of the countries of this re- the peoples of those countries of Amer- Freedom Support Act. gion. We will not see a full potential ica’s desire to ensure that their future Mr. Speaker, it is my understanding for this region without the full partici- will be one of democracy, prosperity, that this bill is being brought forth pation of all eight countries. peace and security. today with the clear understanding It is our hope that these countries Mr. GILMAN. Mr. Speaker, I rise in support that Section 907 of the Freedom Sup- understand the incentive of coopera- of the bill before us today, H.R. 1152, the ``Silk port Act will remain in place and un- tion and make a renewed effort to solve Road Strategy Act of 1999,'' sponsored by my changed throughout the remaining leg- the conflicts that have stood in the colleagues from Nebraska, Congressman BE- islative process. way of a greater integration. REUTER. Mr. BEREUTER. Mr. Speaker, re- Similarly, because we are endorsing The Subcommittee on the International Re- claiming my time, I will be happy to integration within the region, this lations Committee chaired by Congressman respond to the gentleman’s statement. should not be seen as an endorsement BEREUTERÐthe Subcommittee on Asia and I am pleased that the gentleman has of excluding others outside of the re- the PacificÐhas jurisdiction over the countries joined the Committee on International gion. To tap the resources of South of Central Asia, but the countries of the Relations this year, and as my col- Asia and the Caucasus to settle these Caucasus regionÐalso covered by this billÐ league knows, this Member, the author conflicts, we will need to work with deserve to be a specific focus of our policy of the legislation, has made it a point others outside of the immediate region and assistance in the region of the former So- to ensure that the Silk Road Strategy such as Russia, Ukraine and Turkey, in viet Union as well. Act intentionally did not include any order to have the fullest possible suc- This bill, which relates to all eight countries change in Section 907. Neither the Sen- cess. of Central Asia and the Caucasus, attempts to ate version of the Silk Road legislation Mr. Speaker, I would like to note the ensure the implementation of that specific which was advanced after amendment, administration is already pursuing focus. repeals or otherwise revises Section many of these policy issues called for While it creates a new Chapter 12 of the 907. So there would be no basis in a in this bill. It is also providing the Foreign Assistance Act to provide that focus, conference, with the approval of this kind of assistance authorized by this however, it cites, with regard to those coun- legislation we pass in the House today, bill. tries, the on-going authority of Chapter 11 of for Section 907 to be repealed or al- I must also note that the administra- that ActÐknown as the ``FREEDOM Support tered. Therefore, I think the gentle- tion has expressed strong reservations Act of 1992.'' man’s concerns are fully addressed. about two amendments attached dur- I think that it is very important, given the key Neither the House, by the passage of ing the committee markup. The admin- work done by the office of the State Depart- this legislation, or the Senate legisla- istration is concerned that these provi- ment Coordinator of Assistance created by the tion, after the amendment deleting the sions which condition assistance on 1992 ``FREEDOM Support Act.'' provision of the senior Senator of the certification of free and fair elections Nothing in this measure should or will en- State of Kansas, contains anything ref- and the resolution of business disputes danger that important coordinating function for erencing Section 907. may actually hinder progress on all of the New Independent States of the Mr. RADANOVICH. Mr. Speaker, if achieving those goals which are goals former Soviet Union. the gentleman would continue to yield, August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6789 I thank him for his continued support wise have a strong interest in assuring that oil, Mr. BEREUTER. Mr. Speaker, I urge on this matter. With this assurance, gas, and other natural resources are devel- again support of the legislation, and I my colleagues and I will feel much oped and are available on the world markets yield back the balance of my time. more confident in supporting this bill. through free and fair international trade. The SPEAKER pro tempore. The Mr. BEREUTER. Mr. Speaker, I re- We have a strategic interest in seeing that question is on the motion offered by serve the balance of my time. these areas do not become hotbeds of armed the gentleman from Nebraska (Mr. BE- Mr. PORTER. Mr. Speaker, I rise in support conflict, terrorism or drug trafficking. These REUTER) that the House suspend the of this legislation and commend the gentleman countries are located in a difficult neighbor- rules and pass the bill, H.R. 1152, as from Nebraska for his strategy with this bill hoodÐthe adjacent countries include Iran, Af- amended. and attention to current events in Caucuses ghanistan, and China. In this area are a num- The question was taken; and (two- region. Since 1923, Armenia and Azerbaijan ber of serious ethnic conflicts and unresolved thirds having voted in favor thereof) have been in conflict over Nagorno-Karabagh. political differences which could lead to blood- the rules were suspended and the bill, In the beginning of this year, Armenia and shed and instability. We need only remember, as amended, was passed. Nagorno-Karabagh accepted a compromise Mr. Speaker, that in this region we have al- A motion to reconsider was laid on peace proposal developed by the Organization ready seen serious strife in Nagorno-Karabakh the table. for Security and Cooperation in Europe and Abkhazia, which have resulted in the loss f (OSCE). Azerbaijan rejected it outright. This of tens of thousands of lives and the creation reaction by Azerbaijan was extremely dis- of hundreds of thousands of refugees. CERTIFIED DEVELOPMENT COM- appointing to those involved in the peace Mr. Speaker, H.R. 1152 authorizes and PANY PROGRAM IMPROVEMENTS process. However, at the NATO summit in urges that we provide humanitarian assist- ACT OF 1999 Washington in April and in recent weeks, the ance, as well as help for economic develop- Mrs. KELLY. Mr. Speaker, I move to Presidents of Armenia and Azerbaijan have ment and the development of democratic insti- suspend the rules and pass the bill been discussing other strategies for peace. tutions. These countries are already eligible (H.R. 2614) to amend the Small Busi- This is very promising, and I hold out hope for for other forms of U.S. assistance, but we can ness Investment Act to make improve- a permanent peace in this area. and should be doing more. I would also note, ments to the certified development The most important role that the United Mr. Speaker, that the Administration is cur- company program, and for other pur- States can play at this point is to continue to rently pursuing many of the policy lines that poses. encourage all parties towards a lasting peace. are called for in this bill, and I commend the The Clerk read as follows: Administration for its efforts in this regard. I This includes the continued enforcement of H.R. 2614 Section 907 of the Freedom Support Act. This support this legislation because it helps to focus attention on this important region and Be it enacted by the Senate and House of Rep- provision keeps needed pressure on Azer- resentatives of the United States of America in baijan to come to the negotiating table and urges our government to make a greater effort Congress assembled, to help solve regional conflicts, promote re- works toward a permanent peace settlement. SECTION 1. SHORT TITLE. All Azerbaijan must do to have Section 907 gional economic development, and further the This Act may be cited as the ‘‘Certified De- lifted is to ``take demonstrable steps to cease development of democracy. velopment Company Program Improvements Mr. Speaker, I do want to express my sup- all blockades against Armenia and Nagorno- Act of 1999’’. port for an amendment adopted during the Karabagh.'' Any attempt to repeal or waive SEC. 2. WOMEN-OWNED BUSINESSES. markup of this legislation in the International Section 907 legitimizes Azerbaijan's blockade Section 501(d)(3)(C) of the Small Business Relations Committee. American companies and rewards its rejection of the current OSCE Investment Act (15 U.S.C. 695(d)(3)(C)) is and firms from other OECD nations have compromise plan. Further, such a waiver amended by inserting before the comma ‘‘or made substantial direct investments in ``Silk women-owned business development’’. would seriously jeopardize any chance for Road'' countries, but they are not being ac- peace in the near future. SEC. 3. MAXIMUM DEBENTURE SIZE. corded fair treatment. In some cases invest- Section 502(2) of the Small Business Invest- While I share a commitment to greater re- ment contracts are not being honored, export ment Act of 1958 (15 U.S.C. 696(2)) is amended gional cooperation and economic integration in permits are not being issued, and de facto ra- to read as follows: the Caucasus and Central Asia, I am very tionalizations of foreign investment have taken ‘‘(2) Loans made by the Administration concerned that this legislation could become a place. In several instances, formal complaints under this section shall be limited to vehicle for the weakening or repeal of Section $1,000,000 for each such identifiable small have been lodged by investors through em- 907. I would strongly oppose such action and business concern, except loans meeting the bassies of the United States and other coun- urge the House to retain its position omitting criteria specified in section 501(d)(3), which tries. shall be limited to $1,300,000 for each such any reference to Section 907 in conference In order to discourage this kind of mistreat- and avoid a contentious debate that could un- identifiable small business concern.’’. ment, the International Relations Committee SEC. 4. FEES. dermine the good and important objectives of amended the legislation to include language this legislation. Section 503(f) of the Small Business Invest- conditioning U.S. assistance on the fair treat- ment Act of 1958 (15 U.S.C. 697(f)) is amended Mr. LANTOS. Mr. Speaker, I join my col- ment of foreign investors. Specifically, the to read as follows: leagues in urging the adoption of H.R. 1152, amendment requires recipient governments to ‘‘(f) EFFECTIVE DATE.—The fees authorized the Silk Road Strategy Act of 1999. I want to demonstrate ``significant progress'' in resolving by subsections (b) and (d) shall apply to pay tribute to my distinguished colleague from investment and other trade disputes that have financings approved by the Administration Nebraska (Mr. BEREUTER) for his leadership in been registered with the U.S. Embassy and on or after October 1, 1996, but shall not introducing this legislation. I am pleased to be apply to financings approved by the Admin- raised by the U.S. Embassy with the host gov- istration on or after October 1, 2003.’’. an original cosponsor of this legislation. ernment. The Silk Road Strategy Act deals with a SEC. 5. PREMIER CERTIFIED LENDERS PRO- I cosponsored this amendment in Com- GRAM. number of newly-emerging countries, which mittee and I support its inclusion in the bill, Mr. only recently became independent nationsÐ Section 217(b) of the Small Business Reau- Speaker, because without it the Silk Road thorization and Amendments Act of 1994 (re- the Central Asian republics of Kazakhstan, Strategy Act could lead countries in this region lating to section 508 of the Small Business Kyrgyzstan, Tajikistan, Turkmenistan, and to conclude that they have a green light to re- Investment Act) is repealed. Uzbekistan and the Southern Caucasus re- nege on commitments to foreign investors, SEC. 6. SALE OF CERTAIN DEFAULTED LOANS. publics of Armenia, Azerbaijan, and Georgia. jeopardizing hundreds of millions of dollars of Section 508 of the Small Business Invest- Mr. Speaker, this legislation calls for the foreign investments. The inclusion of this ment Act of 1958 (15 U.S.C. 697e) is amended— United States to give greater attention to the amendment should send a strong signal that (1) in subsection (a), by striking ‘‘On a important countries of Central Asia and the countries cannot expect to receive American pilot program basis, the’’ and inserting Caucasus. We have significant national con- assistance if they mistreat the companies that ‘‘The’’; (2) by redesignating subsections (d) though cerns in this region related to our national se- provide critical investment capital and employ- curity and our international economic interests. (i) as subsections (e) though (j), respectively; ment opportunities for their own citizens. (3) in subsection (f) (as redesignated by These countries were part of the former Soviet Mr. Speaker, I urge my colleagues to sup- paragraph (2)), by striking ‘‘subsection (f)’’ Union, and we have a great interest in fos- port H.R. 1152, the Silk Road Act of 1999. and inserting ‘‘subsection (g)’’; tering democracy, an open market economy, Mr. HOEFFEL. Mr. Speaker, I have (4) in subsection (h) (as redesignated by and respect for human rights there. Many of no requests for time, and I yield back paragraph (2)), by striking ‘‘subsection (f)’’ these countries are resource-rich, and we like- the balance of my time. and inserting ‘‘subsection (g)’’; and H6790 CONGRESSIONAL RECORD — HOUSE August 2, 1999 (5) by inserting after subsection (c) the fol- tions of any company described in subsection denied within the 15-day period required by lowing: (a) to determine if such company is eligible subclause (I), the Administration shall with- ‘‘(d) SALE OF CERTAIN DEFAULTED LOANS.— for the delegation of authority under this in such period provide in accordance with ‘‘(1) NOTICE.—If, upon default in repay- section. If the Administration determines subparagraph (E) notice to the company that ment, the Administration acquires a loan that a company is not eligible, the Adminis- submitted the request. guaranteed under this section and identifies tration shall provide the company with the ‘‘(C) WORKOUT PLAN.— such loan for inclusion in a bulk asset sale of reasons for such ineligibility. ‘‘(i) IN GENERAL.—In carrying out functions defaulted or repurchased loans or other ‘‘(c) SCOPE OF DELEGATED AUTHORITY.— described in paragraph (1)(C), a qualified financings, it shall give prior notice thereof ‘‘(1) IN GENERAL.—Each qualified State or State or local development company shall to any certified development company which local development company to which the Ad- submit to the Administration a proposed has a contingent liability under this section. ministration delegates authority under sec- workout plan. The notice shall be given to the company as tion (a) may with respect to any loan de- ‘‘(ii) ADMINISTRATION ACTION ON PLAN.— soon as possible after the financing is identi- scribed in subsection (a)— ‘‘(I) TIMING.—Not later than 15 business fied, but not less than 90 days before the date ‘‘(A) perform all liquidation and fore- days after a workout plan is received by the the Administration first makes any records closure functions, including the purchase in Administration under clause (i), the Admin- on such financing available for examination accordance with this subsection of any other istration shall approve or reject the plan. by prospective purchasers prior to its offer- indebtedness secured by the property secur- ‘‘(II) NOTICE OF NO DECISION.—With respect ing in a package of loans for bulk sale. ing the loan, in a reasonable and sound man- to any workout plan that cannot be approved ‘‘(2) LIMITATIONS.—The Administration ner according to commercially accepted or denied within the 15-day period required shall not offer any loan described in para- practices, pursuant to a liquidation plan ap- by subclause (I), the Administration shall graph (1) as part of a bulk sale unless it— proved in advance by the Administration within such period provide in accordance ‘‘(A) provides prospective purchasers with under paragraph (2)(A); with subparagraph (E) notice to the company the opportunity to examine the Administra- ‘‘(B) litigate any matter relating to the that submitted the plan. tion’s records with respect to such loan; and performance of the functions described in ‘‘(D) COMPROMISE OF INDEBTEDNESS.—In ‘‘(B) provides the notice required by para- subparagraph (A), except that the Adminis- carrying out functions described in para- graph (1).’’. tration may— graph (1)(A), a qualified State or local devel- SEC. 7. LOAN LIQUIDATION. ‘‘(i) defend or bring any claim if— opment company may— (a) LIQUIDATION AND FORECLOSURE.—Title V ‘‘(I) the outcome of the litigation may ad- ‘‘(i) consider an offer made by an obligor to of the Small Business Investment Act of 1958 versely affect the Administration’s manage- compromise the debt for less than the full (15 U.S.C. 695 et seq.) is amended by adding ment of the loan program established under amount owing; and at the end the following: section 502; or ‘‘(ii) pursuant to such an offer, release any ‘‘SEC. 510. FORECLOSURE AND LIQUIDATION OF ‘‘(II) the Administration is entitled to obligor or other party contingently liable, if LOANS. legal remedies not available to a qualified the company secures the written approval of ‘‘(a) DELEGATION OF AUTHORITY.—In accord- State or local development company and the Administration. ance with this section, the Administration such remedies will benefit either the Admin- ‘‘(E) CONTENTS OF NOTICE OF NO DECISION.— shall delegate to any qualified State or local istration or the qualified State or local de- Any notice provided by the Administration development company (as defined in section velopment company; or under subparagraphs (A)(ii)(II), (B)(ii)(II), or 503(e)) that meets the eligibility require- ‘‘(ii) oversee the conduct of any such liti- (C)(ii)(II)— ments of subsection (b)(1) the authority to gation; and ‘‘(i) shall be in writing; foreclose and liquidate, or to otherwise treat ‘‘(C) take other appropriate actions to ‘‘(ii) shall state the specific reason for the in accordance with this section, defaulted mitigate loan losses in lieu of total liquida- Administration’s inability to act on a plan loans in its portfolio that are funded with tion or foreclosures, including the restruc- or request; the proceeds of debentures guaranteed by the turing of a loan in accordance with prudent ‘‘(iii) shall include an estimate of the addi- Administration under section 503. loan servicing practices and pursuant to a tional time required by the Administration ‘‘(b) ELIGIBILITY FOR DELEGATION.— workout plan approved in advance by the Ad- to act on the plan or request; and ‘‘(1) REQUIREMENTS.—A qualified State or ministration under paragraph (2)(C). ‘‘(iv) if the Administration cannot act be- local development company shall be eligible ‘‘(2) ADMINISTRATION APPROVAL.— cause insufficient information or docu- for a delegation of authority under sub- ‘‘(A) LIQUIDATION PLAN.— mentation was provided by the company sub- section (a) if— ‘‘(i) IN GENERAL.—Before carrying out func- mitting the plan or request, shall specify the ‘‘(A) the company— tions described in paragraph (1)(A), a quali- nature of such additional information or doc- ‘‘(i) has participated in the loan liquida- fied State or local development company umentation. tion pilot program established by the Small shall submit to the Administration a pro- ‘‘(3) CONFLICT OF INTEREST.—In carrying Business Programs Improvement Act of 1996 posed liquidation plan. out functions described in paragraph (1), a (15 U.S.C. 695 note), as in effect on the day ‘‘(ii) ADMINISTRATION ACTION ON PLAN.— qualified State or local development com- before promulgation of final regulations by ‘‘(I) TIMING.—Not later than 15 business pany shall take no action that would result the Administration implementing this sec- days after a liquidation plan is received by in an actual or apparent conflict of interest tion; the Administration under clause (i), the Ad- between the company (or any employee of ‘‘(ii) is participating in the Premier Cer- ministration shall approve or reject the plan. the company) and any third party lender, as- tified Lenders Program under section 508; or ‘‘(II) NOTICE OF NO DECISION.—With respect sociate of a third party lender, or any other ‘‘(iii) during the 3 fiscal years immediately to any plan that cannot be approved or de- person participating in a liquidation, fore- prior to seeking such a delegation, has made nied within the 15-day period required by closure, or loss mitigation action. an average of not less than 10 loans per year subclause (I), the Administration shall with- ‘‘(d) SUSPENSION OR REVOCATION OF AU- that are funded with the proceeds of deben- in such period provide in accordance with THORITY.—The Administration may revoke tures guaranteed under section 503; and subparagraph (E) notice to the company that or suspend a delegation of authority under ‘‘(B) the company— submitted the plan. this section to any qualified State or local ‘‘(i) has 1 or more employees— ‘‘(iii) ROUTINE ACTIONS.—In carrying out development company, if the Administration ‘‘(I) with not less than 2 years of sub- functions described in paragraph (1)(A), a determines that the company— stantive, decision-making experience in ad- qualified State or local development com- ‘‘(1) does not meet the requirements of sub- ministering the liquidation and workout of pany may undertake routine actions not ad- section (b)(1); problem loans secured in a manner substan- dressed in a liquidation plan without obtain- ‘‘(2) has violated any applicable rule or reg- tially similar to loans funded with the pro- ing additional approval from the Adminis- ulation of the Administration or any other ceeds of debentures guaranteed under section tration. applicable law; or 503; and ‘‘(B) PURCHASE OF INDEBTEDNESS.— ‘‘(3) fails to comply with any reporting re- ‘‘(II) who have completed a training pro- ‘‘(i) IN GENERAL.—In carrying out functions quirement that may be established by the gram on loan liquidation developed by the described in paragraph (1)(A), a qualified Administration relating to carrying out of Administration in conjunction with qualified State or local development company shall functions described in paragraph (1). State and local development companies that submit to the Administration a request for ‘‘(e) REPORT.— meet the requirements of this paragraph; or written approval before committing the Ad- ‘‘(1) IN GENERAL.—Based on information ‘‘(ii) submits to the Administration docu- ministration to the purchase of any other in- provided by qualified State and local devel- mentation demonstrating that the company debtedness secured by the property securing opment companies and the Administration, has contracted with a qualified third-party a defaulted loan. the Administration shall annually submit to to perform any liquidation activities and se- ‘‘(ii) ADMINISTRATION ACTION ON REQUEST.— the Committees on Small Business of the cures the approval of the contract by the Ad- ‘‘(I) TIMING.—Not later than 15 business House of Representatives and of the Senate a ministration with respect to the qualifica- days after receiving a request under clause report on the results of delegation of author- tions of the contractor and the terms and (i), the Administration shall approve or deny ity under this section. conditions of liquidation activities. the request. ‘‘(2) CONTENTS.—Each report submitted ‘‘(2) CONFIRMATION.—On request the Ad- ‘‘(II) NOTICE OF NO DECISION.—With respect under paragraph (1) shall include the fol- ministration shall examine the qualifica- to any request that cannot be approved or lowing information: August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6791 ‘‘(A) With respect to each loan foreclosed me briefly describe the provisions of Mr. Speaker, I reserve the balance of or liquidated by a qualified State or local de- H.R. 2614. my time. velopment company under this section, or H.R. 2614, will increase the maximum Ms. VELA´ ZQUEZ. Mr. Speaker, I for which losses were otherwise mitigated by debenture size for Section 504 loans yield myself such time as I may con- the company pursuant to a workout plan from $750,000 to $1 million, and the size sume. under this section— Mr. Speaker, I rise in strong support ‘‘(i) the total cost of the project financed of public policy debenture backed loans with the loan; from $1 million to $1,300,000. It has been of H.R. 2614, legislation that will up- ‘‘(ii) the total original dollar amount guar- 10 years since the committee acted to date and improve the Certified Devel- anteed by the Administration; increase the maximum guarantee opment Company, also known as the ‘‘(iii) the total dollar amount of the loan at amount in the 504 program. To keep 504 program. The proposed changes to the time of liquidation, foreclosure, or miti- pace with inflation, the maximum this program are thoughtful changes gation of loss; guarantee amount should be increased that will help more businesses gain ac- ‘‘(iv) the total dollar losses resulting from to approximately $1.25 million; how- cess to the capital they need. the liquidation, foreclosure, or mitigation of ever, the committee believes that a The 504 program is one of the most loss; and simple increase to $1 million is prob- important small business loan pro- ‘‘(v) the total recoveries resulting from the grams administered by the Small Busi- liquidation, foreclosure, or mitigation of ably sufficient. loss, both as a percentage of the amount This increase is especially needed in ness Administration. It represents ac- guaranteed and the total cost of the project the 504 program because it is primarily cess to capital for countless entre- financed. a real estate-based program and the preneurs who might otherwise not have ‘‘(B) With respect to each qualified State cost of commercial real estate has in- a chance to turn their dreams into re- or local development company to which au- creased markedly in the last several ality. Since 1980, over 25,000 businesses thority is delegated under this section, the years. have received more than $20 billion in totals of each of the amounts described in H.R. 2614 also adds women-owned fixed asset financing through the 504 clauses (i) through (v) of subparagraph (A). businesses to the current list of busi- program. ‘‘(C) With respect to all loans subject to I believe that the proposed changes foreclosure, liquidation, or mitigation under nesses eligible for the larger public pol- this section, the totals of each of the icy loans of up to $1.3 million. This to the 504 program are reasonable and amounts described in clauses (i) through (v) continues our efforts to increase assist- designed to update the program. By in- of subparagraph (A). ance to women-owned businesses. creasing the debenture size, granting the Premier Certified Lenders Program ‘‘(D) A comparison between— b 1600 ‘‘(i) the information provided under sub- permanent status, adding women- paragraph (C) with respect to the 12-month The Committee on Small Business owned businesses to the policy goals, period preceding the date on which the re- recognizes the important role women- and making the loan liquidation pro- port is submitted; and owned businesses play in the economy gram permanent, we will be strength- ‘‘(ii) the same information with respect to and believes this change is needed to ening an already exemplary program. loans foreclosed and liquidated, or otherwise ensure the expansion of this sector of treated, by the Administration during the These steps also continue the commit- our economy. tee’s commitment to improve and up- same period. H.R. 2614 will reauthorize also the ‘‘(E) The number of times that the Admin- date the program by making it more istration has failed to approve or reject a liq- fees currently levied on the borrower, responsive to the needs of lenders and uidation plan in accordance with subpara- the Certified Development Company, small businesses alike. This is a model graph (A)(i), a workout plan in accordance and the participating bank. The 504 program and I strongly support this with subparagraph (C)(i), or to approve or program now operates with a zero sub- legislation. deny a request for purchase of indebtedness sidy rate based on calculations esti- There is a lot of talk today about under subparagraph (B)(i), including specific mating the net present value of a economic development and providing information regarding the reasons for the year’s loans plus fees and recoveries opportunity for all Americans. This Administration’s failure and any delays that from defaulted loans minus losses. resulted.’’. comes from a realization that, despite The fees in the 504 program cover all the recent economic growth, many of (b) REGULATIONS.— these costs, resulting in a program (1) IN GENERAL.—Not later than 150 days our communities lag behind. There are after the date of enactment of this Act, the that operates at no cost to the tax- still too many neighborhoods that are Administrator shall issue such regulations payer. The fees sunset on October 1, not enjoying the economic growth felt as may be necessary to carry out section 510 2000 and H.R. 2614 will continue them by many in our communities. We need of the Small Business Investment Act of through October 1, 2003. to not only provide jobs, but jobs with 1958, as added by subsection (a) of this sec- Additionally, 2614 will grant perma- a living wage, so that families can pull tion. nent status to the Preferred Certified themselves out of poverty. Small busi- (2) TERMINATION OF PILOT PROGRAM.—Be- Lender Program before it sunsets at nesses represent the engine of our ginning on the date which the final regula- the end of fiscal year 2000. This pro- economy and they have the ability to tions are issued under paragraph (1), section gram enables experienced CDCs to use 204 of the Small Business Programs Improve- provide these jobs. ment Act of 1996 (15 U.S.C. 695 note) shall streamlined procedures for loan mak- I have seen firsthand what effect the cease to have effect. ing and liquidation, resulting in im- 504 program can have on a community. proved service to the small business Recently I visited Les Fres Ford, a re- The SPEAKER pro tempore. Pursu- borrower and reduced losses and liq- ant to the rule, the gentlewoman from cipient of a 504 loan in my district. uidation costs. This business will use the 504 loan to New York (Mrs. KELLY) and the gentle- Finally, to address the problem of build a new service center which will woman from New York (Ms. low recovery rates on defaulting 504 allow them to better serve their cus- VELA´ ZQUEZ) each will control 20 min- loans, H.R. 2614 makes the Loan Liq- tomers and expand their business. It utes. uidation Pilot Program a permanent will also bring up to 50 new jobs to the The Chair recognizes the gentle- program. This gives qualified and expe- community. These are good-paying woman from New York (Mrs. KELLY). rienced CDCs the ability to handle the jobs that will help families in the com- Mrs. KELLY. Mr. Speaker, I yield liquidation of loans with only minimal munities I represent. myself such time as I may consume. involvement of the SBA, resulting in The changes made by H.R. 2614 will Mr. Speaker, I rise in strong support savings to the program, and a cor- allow this program to continue assist- of H.R. 2614, which amends the Small responding reduction in the fees ing entrepreneurs in one of the most Business Investment Act to make charged to the borrowers and the lend- critical areas in business expansion, fi- changes in the Section 504 loan pro- ers. nance assistance for building and gram administered by the Small Busi- Mr. Speaker, I again want to urge my equipment purchases. These are crit- ness Administration. The 504 loan pro- colleagues to support H.R. 2614. It will ical ingredients for business growth, gram guarantees small business loans mean a significant improvement in and the 504 programs make sure that for construction and renovation and services to their small business con- small businesses continue to grow. provides nearly $3 billion of financial stituents, and a reduction in the cost When a business is able to expand, ev- assistance every year. Mr. Speaker, let of providing those services. eryone benefits. H6792 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Mr. Speaker, I urge the adoption of The question was taken; and (two- ‘‘(i) IN GENERAL.—Notwithstanding sub- this legislation. thirds having voted in favor thereof) paragraph (A), if the total deferred participa- Mr. Speaker, I reserve the balance of the rules were suspended and the bill tion share of a loan guaranteed under this my time. was passed. subsection is less than or equal to $120,000, the guarantee fee collected under subpara- Mrs. KELLY. Mr. Speaker, I yield A motion to reconsider was laid on myself such time as I may consume graph (A) shall be in an amount equal to 2 the table. percent of the total deferred participation and strongly urge passage of H.R. 2614. f share of the loan. Ms. MILLENDER-MCDONALD. Mr. Speaker, ‘‘(ii) RETENTION OF FEES.—Lenders partici- I would like to rise in support of H.R. 2614, the AMENDING SMALL BUSINESS ACT pating in the programs established under Certified Development Company Loan Pro- TO MAKE IMPROVEMENTS IN this subsection may retain not more than 25 gram. GENERAL BUSINESS LOAN PRO- percent of the fee collected in accordance This bill will ensure a greater access to cap- GRAM with this subparagraph with respect to any ital for potential business owners. By providing loan not exceeding $150,000 in gross loan Mr. TALENT. Mr. Speaker, I move to this access, this will allow our economy to amount.’’. suspend the rules and pass the bill continue to grow and ensure future prosperity SEC. 6. LEASE TERMS. (H.R. 2615) to amend the Small Busi- for the country. H.R. 2614 makes a number of Section 7(a) of the Small Business Act (15 ness Act to make improvements to the U.S.C. 636(a)) is further amended by adding necessary changes to the Small Business Ad- general business loan program, and for at the end the following: ministration's (SBA) 504 loan program. ‘‘(28) LEASING.—In addition to such other H.R. 2614 allows more businesses to have other purposes. The Clerk read as follows: lease arrangements as may be authorized by access to loans. It is clear that access to the Administration, a borrower may perma- loans gives business owners access to oppor- H.R. 2615 nently lease to 1 or more tenants not more tunities. In addition, by increasing the deben- Be it enacted by the Senate and House of Rep- than 20 percent of any property constructed ture size, we will allow Certified Development resentatives of the United States of America in with the proceeds of a loan guaranteed under Companies (CDCs) to make more loans. Congress assembled, this subsection, if the borrower permanently H.R. 2614 increases opportunities for busi- SECTION 1. LEVELS OF PARTICIPATION. occupies and uses not less than 60 percent of ness owned by women. Based on statistics, Section 7(a)(2)(A) of the Small Business the total business space in the property.’’. women-owned businesses contribute more Act (15 U.S.C. 636(a)(2)(A)) is amended— The SPEAKER pro tempore. Pursu- than $2.38 Trillion annually in revenues to the (1) in paragraph (i) by striking ‘‘$100,000’’ ant to the rule, the gentleman from and inserting ‘‘$150,000’’; and Missouri (Mr. TALENT) and the gen- economy, which is more than the gross do- (2) in paragraph (ii) by striking ‘‘$100,000’’ mestic product of most countries. Women and inserting ‘‘$150,000’’. tleman from Illinois (Mr. MANZULLO), as a Member opposed to the bill, each owned businesses also employ one out of SEC. 2. LOAN AMOUNTS. every five workers in the United States, which Section 7(a)(3)(A) of the Small Business will control 20 minutes. is a total of 18.5 million employees. Based on Act (15 U.S.C. 636(a)(3)(A)) is amended by The Chair recognizes the gentleman these facts, women must have adequate ac- from Missouri (Mr. TALENT). striking ‘‘$750,000,’’ and inserting, ‘‘$1,000,000 ´ cess to capital through loans. (or if the gross loan amount would exceed Ms. VELAZQUEZ. Mr. Speaker, I ask Mr. Speaker, we must ensure that the 504 $2,000,000),’’. unanimous consent that the time in loan program remains solvent. The 504 pro- SEC. 3. INTEREST ON DEFAULTED LOANS. support of H.R. 2615 be equally divided gram is a self-sufficient program which is driv- Subparagraph (B) of section 7(a)(4) of the between myself and the gentleman en by the market. Through the reauthorization Small Business Act (15 U.S.C. 636(a)(4)) is from Missouri (Mr. TALENT). of fees, we can ensure the solvency of the amended by adding at the end the following: Mr. TALENT. Mr. Speaker, reserving program. We also have a responsibility to ‘‘(iii) APPLICABILITY.—Clauses (i) and (ii) the right to object, and I will not ob- make the 504 program more efficient. Under shall not apply to loans made on or after Oc- ject, I would just join the gentlewoman tober 1, 1999.’’. the Premier Certified Lender Program, specific in her unanimous consent request. experienced CDC's are granted the authority SEC. 4. PREPAYMENT OF LOANS. Mr. Speaker, I withdraw my reserva- (a) IN GENERAL.—Section 7(a)(4) of the to approve debentures without SBA involve- tion of objection. Small Business Act (15 U.S.C. 636(a)(4)) is The SPEAKER pro tempore. Does the ment. In return, the lenders agree to reim- amended— ALENT burse the SBA 10% of any loss on a deben- (1) by striking ‘‘(4) INTEREST RATES AND gentleman from Missouri (Mr. T ) ture guaranteed by the SBA. By making the FEES.—’’ and inserting ‘‘(4) INTEREST RATES seek to yield half his time to the gen- Premier Certified Lender Program permanent, AND PREPAYMENT CHARGES.—’’; and tlewoman from New York (Ms. the 504 program will be more efficient. (2) by adding at the end the following: VELA´ ZQUEZ)? The 504 loan program must properly serve ‘‘(C) PREPAYMENT CHARGES.— Mr. TALENT. Yes, Mr. Speaker. It the borrower. The current loan liquidation pro- ‘‘(i) IN GENERAL.—A borrower who prepays was my intention to yield the time to gram has been successful in ensuring that the any loan guaranteed under this subsection the gentlewoman, and I join her in her shall remit to the Administration a subsidy 504 program works for borrowers. Loan liq- unanimous consent request. recoupment fee calculated in accordance The SPEAKER pro tempore. The uidation is the most expensive portion of the with clause (ii) if— 504 program. Through the involvement of the ‘‘(I) the loan is for a term of not less than Chair understands the 20 minutes in CDC, which has resulted in a higher response 15 years; favor of the bill will be divided equally, rate, the overall costs are lowered for the pro- ‘‘(II) the prepayment is voluntary; so that the gentleman from Missouri gram. By lowering the cost of the program, ‘‘(III) the amount of prepayment in any (Mr. TALENT) has 10 minutes and the businesses will have access to reduced rates calendar year is more than 25 percent of the gentlewoman from New York (Ms. on loans, which will lower expenses to small outstanding balance of the loan; and VELA´ ZQUEZ) has 10 minutes. ‘‘(IV) the prepayment is made within the Without objection, the gentleman businesses. first 3 years after disbursement of the loan from Missouri (Mr. TALENT) is recog- H.R. 2614 is good for borrowers and small proceeds. nized. businesses and is therefore good for our ‘‘(ii) SUBSIDY RECOUPMENT FEE.—The sub- economy. We should vote in favor of H.R. sidy recoupment fee charged under clause (i) There was no objection. 2614 and expand opportunities for small busi- shall be— Mr. TALENT. Mr. Speaker, I yield ness owners. ‘‘(I) 5% of the amount of prepayment, if myself such time as I may consume. Mrs. KELLY. Mr. Speaker, I have no the borrower prepays during the first year Mr. Speaker, I rise in strong support further requests for time, and I yield after disbursement; of H.R. 2615, a bill to amend the Sec- back the balance of my time. ‘‘(II) 3% of the amount of prepayment, if tion 7(a) loan program at the Small Ms. VELA´ ZQUEZ. Mr. Speaker, I the borrower prepays during the 2nd year Business Administration. I want to have no further requests for time, and after disbursement; and start by thanking my colleague, the ‘‘(III) 1% of the amount of prepayment, if I yield back the balance of my time. gentlewoman from New York (Ms. the borrower prepays during the 3rd year ´ The SPEAKER pro tempore (Mr. MIL- after disbursement.’’. VELAZQUEZ), the ranking Democrat on LER of Florida). The question is on the the committee, for her assistance in SEC. 5. GUARANTEE FEES. motion offered by the gentlewoman Section 7(a)(18)(B) of the Small Business crafting this bill. Her help has been in- from New York (Mrs. KELLY) that the Act (15 U.S.C. 636(a)(18)(B)) is amended to valuable, and I thank her on behalf of House suspend the rules and pass the read as follows: myself and the small business commu- bill, H.R. 2614. ‘‘(B) EXCEPTION FOR CERTAIN LOANS.— nity as a whole. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6793 Mr. Speaker, the 7(a) general busi- Finally, H.R. 2615 modifies current panies already have a financial track ness loan program provides over $9 bil- 7(a) program rules prohibiting loans record. It should be on the merits, not lion of financial assistance to small from passive investments. When Con- an SBA guarantee, that the bank businesses every year. The bill before gress last reauthorized the program, we should make the loans. us, H.R. 2615, will improve this pro- modified a similar restriction in the If a borrower still needs government gram and make it more responsive to 504 program in order to permit the fi- backing for an expansion project, then the needs of small businesses. nancing of projects where less than 20 they should turn to the 504 loan pro- Allow me to briefly describe the pro- percent of a business space will be gram. The 504 program should serve posed changes to the 7(a) program con- rented out when the small business capital expansion needs, not the 7(a) tained in H.R. 2615. First, the max- borrower in question will occupy the loan program. imum guarantee amount of a 7(a) loan remaining space. It is time we provides The question essentially is this: At program is increased to $1 million from similar options to 7(a) borrowers. what point should companies be the 1988 limit of $750,000 in order to Mr. Speaker, H.R. 2615 is a common weaned off government guaranteed keep pace with inflation. In fact, Mr. sense bill designed to improve the fi- loans; 1 year, 2 years, 5 years, 10 years, Speaker, to fully keep pace with infla- nancial assistance provided to small 20 years? tion, the maximum guarantee amount businesses, particularly the smallest of If the purpose of the Small Business should be increased to approximately small businesses, and I urge my col- Administration is to give a jump-start $1,250,000. The committee believes a leagues to support it. to companies that otherwise would not simple increase to $1 million is suffi- Mr. Speaker, I reserve the balance of be able to start up a business, then why cient and has not gone further. my time. are we increasing the amount of start- Second, H.R. 2615 removes a provision Mr. MANZULLO. Mr. Speaker, I yield up capital available to them from which reduced SBA’s liability for ac- myself such time as I may consume. $750,000 to $1 million? We should be crued interest on defaulted loans since Mr. Speaker, I am grateful to the keeping it the same and encouraging the provision’s intended savings have chairman of the Committee on Small companies to get off the government failed to materialize. Business and the ranking member, and help. The third change to the 7(a) program I agree with six-sevenths of the bill. So It stands to reason that if the SBA concerns the problem of early repay- that is pretty good. My colleagues may has an overall fixed amount of total ment of large loans, which is jeopard- say, well, if the gentleman agrees with loans it can support, then throughout izing the subsidy rate supporting the six-sevenths of the bill, should that not the year, as small business owners are program. H.R. 2615 will remedy this be enough? Normally, under most cir- able to borrower larger amounts, then problem by assessing the fee to the bor- cumstances, I would say yes, but in its the overall loan volume will decrease, rower for prepayment of any loan with current form, I rise in opposition to the to the detriment of the number of a term in excess of 15 years within the bill and, therefore, will vote against it. small borrowers. first 3 years after disbursement. We should not rush to pass this bill This is what is really confusing. The The committee believes this increase under suspension of the rules until we SBA maintained, for the longest period in prepayments is due to a variety of actually have more information from of time, and sent a memo to my office factors. There have been some in- the SBA. I realize most of my col- which they have never corrected in stances of misuse by the program by leagues are not versed on the different writing, that if the authorization level businesses seeking bridge financing. programs run by the SBA. The SBA has were kept the same, which it is, but There have also been cases where, due two main loan programs, the 7(a) pro- the level of 7(a) loans went from to the strong economy, lenders have gram and the 504 program. 7(a) mainly $750,000 to $1 million, then in excess of approached borrowers offering im- provides start-up capital for new entre- 6,000 entrepreneurs, who otherwise proved terms, effectively skimming preneurs, while the 504 program is de- would be applying for and qualifying loans, and avoiding the need to process signed to meet the capital needs of for small business loans, would be left credit analyses. This removes author- growing small businesses for expansion out because the bigger borrowers would ization dollars from the program which or purchases of additional equipment. be in there taking up all the money. could have been used for other loans We just passed, with my concurrence, That was SBA’s position for the long- and is a disservice to both the small H.R. 2614, which increased the max- est period of time until they mysteri- business borrowers and the 7(a) lenders. imum loan guarantee amount in the ously, and without any empirical evi- Both parties work to put financing 504 loan program from $750,000 to $1 dence, suddenly changed their mind packages together at the cost of both million. I agree with that because and said that the small business incen- time and money. growing small businesses already in ex- tives in the small business bill means H.R. 2615 also includes three changes istence have greater capital needs. In there would be a net loss of people re- designed to encourage the making of addition, the 504 loan program operates ceiving loans. smaller loans. The 80 percent guar- at no cost to the taxpayer because the We have to think about that. This antee rate will be expanded from loans fees it charges offset its costs. How- bill has a small business incentive in under $100,000 to loans under $150,000. ever, H.R. 2615 plans to do the same the Small Business Administration Likewise, the 2 percent guarantee fee thing for the 7(a) loan program and I loan program. will now apply to loans up to $150,000. disagree with this policy change. b That represents a significant savings No one should start up a small busi- 1615 for these small borrowers. ness with a $1 million loan backed by So now we are in the process of defin- Finally, for small loans we have in- the SBA. If a bank needs a 75 percent ing a small business within a small cluded a provision allowing lenders to government-backed guarantee to feel business to give incentives to small retain one quarter of the guarantee fee comfortable with a $1 million loan, businesses within the small business on loans under $150,000 as an incentive then we should think twice before pass- loan program. to make these loans. ing the bill. If someone requires a $1 It makes us wonder why we even These changes add to the innovations million loan for start-up, they are have the program in the first place. that Congress has introduced over the probably buying a lot of new equip- But it is here. And if it is here, then it past several years concerning the ment and large amounts of real estate. should not be abused. And if it is here availability of loans at the lower end of They should rethink their business and the money is available, it should the 7(a) spectrum. As a result, since plan because this is a recipe for failure be available for the small entre- 1994, the number of loans made under and the taxpayers will be left paying preneurs, not the people who can bor- $100,000 significantly. In 1998 alone, 53 off the default. row up to $1 million. percent of the 7(a) loans were under If a loan is for an already existing The cost implications in the bill are 100,000. This compares with only 37 per- small business, then the bank should still not clear. H.R. 2615 contains cent in 1994. The figure fluctuates, Mr. make these loans on a sound commer- much-needed incentives to encourage Speaker, but the general trend is defi- cial basis without having to rely upon the banks to make the smaller loans. nitely in the direction of smaller loans. the crutch of the taxpayer. These com- And there we are. H6794 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Now, we have got a system not of set- update the General Business Loan serve this Nation’s small businesses, it asides but a system somehow built into Guaranty, or 7(a), program. must keep in step with the changing fi- language that says the Small Business With the passage of today’s legisla- nancial landscape. Administration should prefer small tion, we will grow the 7(a) loan pro- The changes made by H.R. 2615 create businesses. gram in a reasonable and thoughtful a balanced approach that updates the I want the Members of Congress and way that expands the program, while 7(a) program while affirming our com- the Speaker to think about that state- continuing our commitment to those mitment to small businesses that small ment. If we are encouraging small busi- businesses that need access to start-up loans are still accessible. I urge my ness loans within the Small Business capital. colleagues to support H.R. 2615. Administration, then I think that we Although SBA administers numerous I just would like to take a moment to have an agency now that has lost its programs that provide financial and respond to the points made by the gen- mission when it starts dividing up technical assistance to small firms, the tleman from Illinois (Mr. MANZULLO). what exactly is a small business. 7(a) program is the agency’s flagship I am just as concerned that we con- When H.R. 2615 was marked up in loan program. It is far and away the tinue our commitment to small loans committee, the sponsors of the bill agency’s largest and most important to address this. To address this, the readily admitted that any additional both in terms of numbers of loans and committee has placed several provi- revenue that may be raised with the program level supported. sions aimed at encouraging small fees charged to higher dollar loan bor- Under 7(a), loan guarantees are pro- loans. These provisions offer incentives rowers will be used to pay for the small vided to eligible small businesses that for 7(a) lenders to continue to make loan incentive contained in the bill. have been unsuccessful in obtaining smaller loans, especially loans under Thus, the impact on most expensive private financing on reasonable terms. $150,000. items in the SBA budget supposedly The proceeds from a 7(a) loan may be These incentives include the increase would be a wash at best. But we have used for virtually any business purpose in the loan guarantee amount from 75 no empirical data, nothing, that has and have made the difference for to 80 percent for loans under $150,000 in been furnished to this Member of Con- countless entrepreneurs. section 1; the reduction of borrower’s gress, who requested the SBA first of Under a 7(a) partnership between fees from three percent to two percent all to come to an analysis as to the loss Government and nearly 7,000 banks and on loans up to $120,000 in section 5; and of businesses that would be deprived of non-bank lenders that participate, the fee-splitting provision in section 5 start-up capital; and they, on their small businesses are ensured the access that will allow up to 25 percent of the own, advised this Member of Congress to capital they need. Since the pro- borrower’s fees on loans under $150,000 that it would be in excess of 6,000. gram’s inception, more than 600,000 7(a) to go to the 7(a) lenders rather than to Later on they changed their mind, loans totaling $80 billion have been SBA. but they told the press still that the made to help this Nation’s small busi- Without the increase in the loan information given to this Member of nesses. guarantee that pays for these incen- Congress was correct. One of the important items in this tives, we will be faced with a choice, ei- Therefore, I can come to one conclu- legislation is the increase in the loan ther increase the program’s subsidy sion, and that is that the Small Busi- guarantee from $750,000 to $1 million. It rate, which will require additional ness Administration itself does not un- has been over a decade since we in- funds are appropriated, and given the derstand the mechanics of this bill. creased the loan guarantee. As a mat- current state of the Commerce-Justice- And if they do not understand the me- ter of fact, if we were to index the cur- State appropriations bill we will con- chanics of this bill and they do not un- rent guarantee using the Consumer derstand the wording of it and they do sider this week, that is unlikely; or not understand the impact of it, then Price Index, we would actually have a eliminate these important small busi- this bill should not pass, it should loan guarantee that is higher than ness loan provisions. And I believe that come up under regular order and be what is under consideration today. that will be short-sighted. I believe what we are doing is reason- subject to an amendment. Mr. Speaker, I reserve the balance of I urge my colleagues to reject the able and necessary if the program is to my time. bill now and send it back to com- continue to serve our Nation’s small Mr. TALENT. Mr. Speaker, may I in- mittee. Once we have a more clear un- businesses. quire how much time I have remain- derstanding of how this bill will impact To safeguard against the risk that in- ing? the budget and small loan borrowers, creasing the guarantee will harm those The SPEAKER pro tempore (Mr. MIL- then we can always act on this provi- seeking smaller loans, we have capped LER of Florida). The gentleman from 1 sion. We do not have the information the total loan amount that can be Missouri (Mr. TALENT) has 6 ⁄2 minutes yet. made under the 7(a) program at $2 mil- remaining. There is plenty of time to work on lion. This is in combination with other Mr. TALENT. Mr. Speaker, I yield this legislation. An additional hike in provisions of the legislation that will myself such time as I may consume. the maximum guarantee amount of the ensure that the 7(a) program will be Mr. Speaker, the jurisdiction of the 7(a) loan program can be included in available to all who need it. small business community, the legisla- the regular SBA authorization bill. It I would also like to voice my strong tive jurisdiction of it, is really only would be easy to bring it up at a later support for the small loan provisions over the Small Business Administra- time. We can mark up a separate bill contained in this legislation. The com- tion and its programs. later this fall. But I do not see the rea- mittee has made sure that small loans Since I became chairman, I have son for rushing to action on this now are still a priority by adopting such tried to use the oversight jurisdiction when we have incomplete information. changes as reducing the program’s cost of the committee, which is much Thus, I respectfully disagree with my to the borrower of loans of $150,000 or broader, to struggle for tax and regu- chairman and ranking minority mem- less from three percent of the loan to latory relief for small businesses ber and ask that H.R. 2615 be defeated two percent, making certain that small around the country. And that is really in its current form. businesses will keep more of their what we devote a whole lot of our time This is the only alternative left to money. to on the committee. But we do take me because I cannot amend the bill We are also creating incentives for seriously the job of overseeing the pro- under suspension of the rules. The rest lenders to continue to make small grams in the Small Business Adminis- of the bill is fine. loans by giving those lenders addi- tration. Mr. Speaker, I reserve the balance of tional funds guaranteed by the SBA In order to accomplish that, we peri- my time. through an increasing guarantee from odically work together on a bipartisan Ms. VELA´ ZQUEZ. Mr. Speaker, I 75 percent to 80 percent and a rebate basis and we pass bills designed to up- yield myself such time as I may con- that could be as high as $600 per loan. date the network of statutes that on sume. These proposals will ensure that the the basis of which those loan programs Mr. Speaker, I rise in strong support program continues its mission. If the run. I have tried to push them in the of H.R. 2615, legislation to improve and 7(a) program is going to continue to direction in my chairmanship and with August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6795 the support first of the gentleman from out of the general revenue in order to amounts from $750,000 to $1 million? New York (Mr. LAFALCE) and then of support this program. That begs the basic question as to what the gentlewoman from New York (Ms. Again, Mr. Speaker, I respect the the purpose of the Small Business Ad- VELA´ ZQUEZ) in the direction of making gentleman from Illinois (Mr. MAN- ministration is. those programs more efficient and ZULLO). He and I have worked together I am trying the best I can to preserve making them run as entirely private on our time on the committee to- some type of mission that the SBA has. lending programs do whenever we can. gether. I respect the sincerity of his We have absolutely no empirical data, This bill is part of that trend. It con- view here. nothing to refute the original data that tains a number of different provisions I would say it is a small part of this the SBA gave me, nothing in writing, which are important to achieving that bill. I am happy to work with the gen- no words from the SBA, nothing from effort. tleman as we go through the process either of the speakers here to refute We have worked together on a bipar- over in the Senate and then in con- the fact that the memo they gave me tisan basis. We produced the bill by a ference. But I hope we can have the stated unequivocally and in concur- 24–4 vote in the committee. I ask the confidence of the House in supporting rence with Mr. Hocker who testified at House to support us in these efforts. this bill. the Small Business hearing that unless This is important to the people who It came out of the committee by an the authorization were increased, the rely on these programs and administer overwhelming majority. It may be fact that we are increasing the amount these programs and important to what housekeeping to most of the House. It that could be borrowed from $750,000 to we are trying to accomplish on the is important to these programs. We try $1 million means that in excess of 6,000 committee. to do a responsible, bipartisan job on small businesspeople who otherwise The gentleman from Illinois said cor- the Committee on Small Business. The would qualify for an SBA loan will be rectly, I think, that he agrees with six- ranking member and I are in full agree- excluded from the process. To aggra- sevenths of the bill. I say it might be ment, as was the overwhelming major- vate that, in the past 3 years, as the even more than that. The only dispute ity of the committee. amount of SBA loans go up, the num- is a provision that, in the view of the Again, I ask the House for its sup- ber of small business recipients goes gentleman, pushes the portfolio away ports. We will continue working on this down and the number of small from the direction of smaller loans. issue as we move through the process. businesspeople receiving the loan has First of all, Mr. Speaker, there is no Mr. Speaker, I reserve the balance of now dropped to about 53 percent of the question and I do not think the gen- my time. total, meaning that the larger appli- tleman would deny that, on balance, Mr. MANZULLO. Mr. Speaker, may I cants are getting the lion’s share of the this bill continues the trend of moving inquire of the Chair the amount of money and that is the dangerous trend. the 7(a) portfolio in the direction of time that I have remaining? I am trying to stop that. smaller loans. The SPEAKER pro tempore. The gen- Is it worth objecting to an entire bill First of all, the bill caps the total tleman from Illinois (Mr. MANZULLO) because you are opposed to one-seventh size of any guaranteed loan at $2 mil- has 12 minutes remaining. of the bill? The answer is yes. The lion. So a lender cannot issue a 7(a) Mr. MANZULLO. Mr. Speaker, I yield name of the bill is small business. Does loan or make a 7(a) loan for more than myself such time as I may consume. anybody think that borrowing $1 mil- $2 million. There has been no statutory Mr. Speaker, first of all, I want to lion today is small business? It could cap on loan size. concur with the statements of the be, but if it is of that magnitude, then The bill allows lenders to retain a chairman of the Committee on Small the bank should be willing to kick in somewhat greater percentage of fees Business, who has done a tremendous the extra amount and to guarantee the that are paid when they make smaller effort in turning the Committee on extra amount, not put it upon the loans, and the bill increases guarantee Small Business into a committee that shoulders of the taxpayers to say we rates for smaller loans. So there is no has been very responsive, listening to want you to guarantee up to $1 million. question that this bill will continue the needs and the desires of the people If you are solvent enough to borrow prudently pushing the portfolio in the across this Nation. $750,000 with an SBA guarantee, then direction of smaller loans. I chair the Subcommittee on Small the banks themselves should be willing The sole dispute is over one small Business, Tax, and Trade. I have seen to loan the rest of the amount of provision in this bill which allows the the chairman conduct other hearings, money based upon their own private total amount of the guaranteed loan to and I know that he has the small busi- arrangement with the borrower. It is go up from $750,000 to $1 million. In ness person at heart. In fact, when he just that simple. other words, the portion that the Gov- practiced law before he came to this Ms. VELA´ ZQUEZ. Mr. Speaker, I ernment guarantees of any loan is now body, it was as a person involved in yield myself such time as I may con- at $750,000. If this bill passes and the small business and he knows the needs sume. President signs it, it will be $1 million. of the small business community inti- I would just like to echo the com- The reason we do that, Mr. Speaker, mately well. ments made by the gentleman from is that amount has not been adjusted I would only suggest to the chairman Missouri. You have to continue updat- for inflation for 11 years. It was made of the Committee on Small Business, ing a program. What works in the 1980s $750,000 in 1988 I believe. We have not my friend the gentleman from Missouri does not necessarily work in the 1990s. changed it at all. We have made a mod- (Mr. TALENT) this fact: With the in- No bank would allow its loan program est adjustment that does not even keep crease of the loan amounts from to go a decade without updating it. If pace with inflation. It is the only part $750,000 to $1 million, financially there we are going to make SBA a cutting of this bill that is in issue. is less money in the overall pot. Be- edge financial institution of the 21st To be perfectly frank, I simply do not cause there has been no increase in the century, we must continue to improve see why it is that big a deal. We felt it authorization. these programs. It just makes sense. was important to do it because, with- b Mr. Speaker, I yield back the balance out some aspect of this portfolio being 1630 of my time. somewhat larger loans, it tends to un- As the gentlewoman from New York Mr. TALENT. Mr. Speaker, I yield dermine the stability and the financial (Ms. VELA´ ZQUEZ) says, there is little myself such time as I may consume. prudence of the portfolio as a whole. opportunity, little likelihood that Let me repeat again both my friend- We want to push it in the direction of there would be an increase in the au- ship and my respect for the passion and the smaller loans. But if we go too far thorization. Simply based upon the the commitment of the gentleman and too fast, we yank out of the port- fact that there is less money in the from Illinois to small business. He and folio the somewhat larger loans which pot, who is going to be the recipient of I have talked over this issue. We had a really support the whole 7(a) portfolio. not getting the money? Is it going to full debate over it in committee. I do And we do not want to do that. That be the little guy, or the people who want to continue working with him as could result in a lot more defaults and have the attorneys and the CPAs and this bill goes through the process. I do a lot more money that we have to find the bankers that can increase their want to emphasize the importance to H6796 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Members of the House who may not, There was no objection. resentatives. Prior to his election as and I certainly could not blame them if f Speaker, Ambassador Foley was the they were not familiar with the ins and majority leader, majority whip, chair THOMAS S. FOLEY UNITED outs of all these programs, but I hope of the Democratic Caucus and chair- STATES COURTHOUSE AND WAL- they will understand that these pro- man of the Committee on Agriculture. TER F. HORAN PLAZA grams are important, that the com- Before being elected to the Congress, mittee does oversee them and that it is Mr. COBLE. Mr. Speaker, I move to Ambassador Foley was special counsel important that we move this legisla- suspend the rules and pass the bill to the Senate Committee on Interior tion through to make all the different (H.R. 211) to designate the Federal and Insular Affairs. He also served as corrections that are in there. building and United States courthouse deputy prosecuting attorney in Spo- So I would ask of the House, let us located at West 920 Riverside Avenue in kane and assistant attorney general for get this bill out and get it in con- Spokane, Washington, as the ‘‘Thomas the State of Washington. ference. I pledge to continue working S. Foley Federal Building and United After leaving this body, former with the gentleman. It is a small part States Courthouse’’, and the plaza at Speaker Foley continues to distinguish of the bill over which we have a dis- the south entrance of such building and himself in public service as the United agreement. There is no question that courthouse as the ‘‘Walter F. Horan States Ambassador to Japan. Naming the bill as a whole moves in the direc- Plaza’’, as amended. the courthouse in Ambassador Foley’s tion of pushing the portfolio gently to- The Clerk read as follows: hometown is a reminder of his dedica- wards smaller loans. I like that. We H.R. 211 tion and hard work in public service. have worked for that under my chair- The plaza entrance to the courthouse manship. He have worked for that with Be it enacted by the Senate and House of Rep- resentatives of the United States of America in will be designated as the ‘‘Walter F. the ranking member. This is a modest Congress assembled, Horan Plaza’’. This will be a reminder inflationary update. I would hope that SECTION 1. DESIGNATION OF COURTHOUSE. to all that are entering the courthouse we would have the House’s confidence (a) DESIGNATION.—The Federal building through the main plaza of the many ac- in being able to make it and that we and United States courthouse located at 920 complishments by former Congressman can move this bill through. West Riverside Avenue in Spokane, Wash- Horan for his eastern Washington dis- I would urge the House to support ington, shall be known and designated as the H.R. 2615. trict. ‘‘Thomas S. Foley United States Court- If there ever was an example of the Mr. MANZULLO. Mr. Speaker, will house’’. the gentleman yield? (b) REFERENCES.—Any reference in a law, American dream, it is Walter Horan. Mr. TALENT. I yield to the gen- map, regulation, document, paper, or other He was born in a log cabin on the banks tleman from Illinois. record of the United States to the Federal of the Wenatchee River in 1898. After Mr. MANZULLO. Based upon the building and United States courthouse re- attending the Wenatchee public gentleman’s assertions that he is will- ferred to in subsection (a) shall be deemed to schools, he was graduated from Wash- ing to continue discussing this figure be a reference to the ‘‘Thomas S. Foley ington State College in 1925. Prior to of $750,000 increased to $1 million, I United States Courthouse’’. that, he entered World War I, serving would still be opposed to the bill, I will SEC. 2. DESIGNATION OF PLAZA. for 2 years in the United States Navy vote ‘‘no’’ on an oral vote but not call (a) DESIGNATION.—The plaza located at the as a gunner’s mate third class. Upon south entrance of the Federal building and for a recorded vote. United States courthouse referred to in sec- graduation, he returned to his apple Mr. TALENT. Reclaiming my time, I tion 1(a) shall be known and designated as farm in Wenatchee, Washington where appreciate very much the gentleman’s the ‘‘Walter F. Horan Plaza’’. he engaged in fruit growing, packing, most gracious concession in that re- (b) REFERENCES.—Any reference in a law, storing and shipping until he was elect- gard. I certainly will be glad to keep map, regulation, document, paper, or other ed to the 78th Congress in 1942. He went working with him. He and I disagree on record of the United States to the plaza re- on to serve in the next 10 succeeding this. My major concern is making sure ferred to in subsection (a) shall be deemed to Congresses and rose to third in senior- that we have a proper balance in the be a reference to the ‘‘Walter F. Horan ity on the Committee on Appropria- Plaza’’. portfolio so that we do not have the tions. He always gave close attention unintended impact of undermining the The SPEAKER pro tempore. Pursu- to agriculture and the conservation stability of the smaller loans that we ant to the rule, the gentleman from community. Former Congressman do make by not allowing this minor in- North Carolina (Mr. COBLE) and the Horan passed away in 1966. Naming the flationary update. But perhaps we can gentleman from Washington (Mr. Plaza on his behalf is a fitting designa- provide for that in some other context. BAIRD) each will control 20 minutes. tion. I am happy to work with the gen- The Chair recognizes the gentleman This is a fitting tribute, Mr. Speaker, tleman in that regard. from North Carolina (Mr. COBLE). to two former Members of this body. I Mr. Speaker, I yield back the balance Mr. COBLE. Mr. Speaker, I yield my- support the bill and urge my colleagues of my time. self such time as I may consume. to join in support. The SPEAKER pro tempore (Mr. MIL- Mr. Speaker, H.R. 211, as amended, Mr. Speaker, I reserve the balance of LER of Florida). The question is on the introduced by the gentleman from my time. motion offered by the gentleman from Washington (Mr. NETHERCUTT), honors Mr. BAIRD. Mr. Speaker, I yield my- Missouri (Mr. TALENT) that the House two former Members of this body, self such time as I may consume. Also, suspend the rules and pass the bill, former Speaker Tom Foley and Con- I want to thank the gentleman from H.R. 2615. gressman Walter Horan. The amend- The question was taken; and (two- North Carolina (Mr. COBLE) for intro- ment simply corrects the address and thirds having voted in favor thereof) ducing this bill and the gentleman properly designates the facility as a the rules were suspended and the bill from Pennsylvania (Mr. SHUSTER) for United States courthouse, which the was passed. bringing this bill to the floor in such a A motion to reconsider was laid on building is typically referred to as in timely manner. the table. Spokane. I rise in strong support of H.R. 211, a This legislation will designate the f bill to designate the Federal building United States courthouse and court- and courthouse located at 920 West GENERAL LEAVE house plaza in Spokane, Washington, Riverside Avenue in Spokane, Wash- Mr. TALENT. Mr. Speaker, I ask as the ‘‘Thomas S. Foley United States ington as the Thomas S. Foley United unanimous consent that all Members Courthouse and Walter F. Horan States Courthouse, and the plaza lo- may have 5 legislative days in which to Plaza’’. This designation is a most de- cated at the south entrance as the Wal- revise and extend their remarks and to serving one. ter F. Horan Plaza. include extraneous material on H.R. Ambassador Foley served in the Con- Mr. Speaker, as a new Member from 2615. gress from January 1965 until Decem- Washington State, I know that we The SPEAKER pro tempore. Is there ber 1994. As most of the Members here come here with big shoes to fill. We objection to the request of the gen- are well aware, Ambassador Foley was had Scoop Jackson, Warren Magnuson, tleman from Missouri? our 49th Speaker of the House of Rep- and we had Speaker of the House Tom August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6797 Foley. Tom Foley had an outstanding Agriculture, and I felt I had to be here predecessor who had served for 30 very and distinguished public career and it today to express my enormous admira- long years and dignified years and is a career that continues to this day. tion for this distinguished American. years filled with great service, and I As we all know, for 30 years he ably b 1645 felt sorry that he ended his service represented the Fifth Congressional with an election like that which oc- District in Washington. During that He as a Speaker, a Democratic curred in 1994, but at the same time I time he served as the majority leader, Speaker, but a Speaker of the Whole was pleased to be able to represent the the majority whip, chairman of the House, was always very, very fair. This Fifth Congressional District and go for- House Committee on Agriculture and distinguished American treated those ward in the years ahead, wanting to was, of course, the 49th Speaker of the of us in the minority, when indeed Re- have good representation for the entire publicans in the minority, with fair- House. Mr. Foley continues to serve east side of the State of Washington. ness, with consideration. In fact, one of today as our country’s Ambassador to So it was bitter sweet in many re- my Democratic friends some years ago Japan. spects, but my respect for Mr. Foley During his time in Congress, Tom Fo- when Speaker Foley was indeed in the certainly is not bitter sweet. It is un- Chair leaned over with a smile on his ley’s top legislative priorities included dying, it is unyielding, it is constant, face and whispered to me, ‘‘You know, increasing the minimum wage, revising because I have had him as my rep- one of the things, perhaps the only clean air standards and parental leave resentative before I came to public life thing, that is wrong with Tom Foley is and child care measures. for 30 years and Mr. Horan for the prior sometimes he is too bipartisan.’’ Well, Tom was a Washington native. He 22 years, virtually my entire adult life of course the Speaker is the Speaker of was born in Spokane in 1929. He at- until I was elected in 1994. So I have the Whole House, and he was fulfilling tended local school, graduated from known these two men and watched his duties and his obligations, and he Gonzaga High School and went on to them represent eastern Washington was fulfilling them with dignity, with attend the University of Washington in and the State of Washington’s interests intelligence and in the best tradition of Seattle. He later graduated from the with great dignity, with certainly un- the great speakers of this august body. University of Washington Law School Mr. Speaker, I certainly therefore questionable respect for the institution in 1957. want to very strongly support this leg- of Congress and respect for the people Tom Foley’s legacy is lasting and his islation today as a tribute particularly of eastern Washington. reputation for fairness, for dignity and to Ambassador Foley, and I want to During law school I happened to for openness is a model for all Members note that indeed it is a Republican serve as a law clerk in the Spokane to follow. He is well respected, affable Member of Congress, the gentleman County Superior Court, and my prime judge for whom I was assigned was Wil- and a conciliatory person. Speaker from Washington (Mr. NETHERCUTT) Foley served to help make Congress who has been the prime mover of this liam F. Williams, a very close friend of the best forum for democracy in the legislation, and I think that is very fit- Foley who was later a Supreme Court entire world. It is with great pride that ting because I believe it sends the very Justice in our State. But I also served I support this bill. clear message that we on this side of as a law clerk for Thomas S. Foley’s fa- Mr. Speaker, as was mentioned, H.R. the aisle have the same respect and ther, Judge Ralph Foley. 211 also honors Walt F. Horan by desig- love and affection for Speaker Foley So Tom, the former Speaker, comes nating the plaza at the south entrance that our good friends on the other side to this institution with a very distin- to the building as the Walter F. Horan of the aisle certainly have indicated. guished background, a distinguished Plaza. So I urge the passage of this legisla- family. His mother and father were As was mentioned earlier, Mr. Horan tion, and I trust and hope it will be very highly recognized and respected in served his country in the House of Rep- unanimous. eastern Washington, as was Thomas S. resentatives for 22 years, from 1943 to Mr. BAIRD. Mr. Speaker, I have no Foley. He served, as was stated here, 1965. He was proud of the fact, it was more requests for time at this point, for 30 years representing our district as mentioned, that he was born in a log and I yield back the balance of my Speaker of the House, as majority lead- cabin on the banks of the Wenatchee time. er, as chairman of the Committee on River, truly a pioneer in our State and Mr. COBLE. Mr. Speaker, I yield such Agriculture, a chairmanship that was a pioneer in this legislative body. He time as he may consume to the gen- vitally important to eastern Wash- attended local public schools. After tleman from Washington (Mr. ington and the agricultural community graduating high school, he served in NETHERCUTT), the sponsor of the bill. that exists there even to this day. World War I as a gunner’s mate third Mr. NETHERCUTT. Mr. Speaker, I I saw Mr. Foley in Japan earlier this class. In 1925 he graduated from Wash- thank the gentleman from North Caro- spring, and in characteristic conduct ington State College in Pullman. lina (Mr. COBLE) for the time and the he conducted himself and has con- Walter Horan served with dignity and gentleman from Pennsylvania (Mr. ducted himself as a representative of diligence for over 20 years. It is fitting SHUSTER) and the gentleman from the United States of America in Japan and proper to honor him with this des- Washington (Mr. BAIRD) for their kind with great respect and dignity, just as ignation. remarks. I am proud to be the sponsor he did here in this House for so many Mr. Speaker, I strongly support H.R. of this legislation along with the other years. 211. 8 members of the Washington State I just want the people of eastern Mr. Speaker, I reserve the balance of congressional delegation to name the Washington, the people of this country, my time. Federal Court House in Spokane, Wash- to know that in designating this court- Mr. COBLE. Mr. Speaker, I am ington, my hometown, the Thomas S. house in the name sake of Tom Foley pleased to yield such time as he may Foley United States Courthouse and and Walt Horan we are paying tribute consume to the gentleman from Penn- the plaza in front of that courthouse as and respect to their work for all of us sylvania (Mr. SHUSTER) the chairman the Walter F. Horan Plaza. in eastern Washington and in our State of the House Committee on Transpor- As the successor to Tom Foley, I of Washington, our beloved State of tation and Infrastructure. came to know him very well in the 1994 Washington. So it was with pleasure Mr. SHUSTER. I thank the gen- elections, and I must say, as difficult that all of the members of our delega- tleman for yielding me this time. as elections can be, the one that oc- tion signed onto this bill that I intro- Mr. Speaker, I did not have the privi- curred in 1994 in my judgment and I duced, most notably Democrats and lege of knowing Congressman Horan. I think in the judgment of many other Republicans alike who had worked support this legislation strongly. But I people was one that was carried on with Mr. Foley and Mr. Horan in some did have the privilege and do have the with great dignity and discussion and respects and have enormous respect for privilege of knowing Ambassador debate of the issues and the leadership those two men. Foley, of knowing him as a colleague, that was proper for the future for our So I thank the House for considering of knowing him as the distinguished Fifth Congressional District. this bill, I urge that it be adopted Speaker of this House, of knowing him I won that election with mixed emo- unanimously and that the respect and as the chairman of the Committee on tions frankly. I felt terrible for my dignity that is due Mr. Horan and Mr. H6798 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Foley will continue under the name of the legitimate items that are infringed dress Congress’ desire to impose strict sake of the Thomas S. Foley United upon and the quantity of the infringing penalties for violations of the act that States Courthouse and the Walt F. items. To the extent the conduct involves a will deter infringement in their recent Horan Plaza. violation of section 2319A of title 18, United report. H.R. 1761 clarifies Congress’ in- States Code, the enhancement shall be based tent that the United States Sentencing Mr. COBLE. I have no further re- upon the retail price of the infringing items quests for time, Mr. Speaker, and I and the quantity of the infringing items. Commission ensure that the sentencing yield back the balance of my time. ‘‘(3) Paragraph (1) shall be implemented guideline for the intellectual property The SPEAKER pro tempore (Mr. MIL- not later than 3 months after the later of— offenses provide for consideration of LER of Florida). The question is on the ‘‘(A) the first day occurring after May 20, the retail price of the legitimate in- motion offered by the gentleman from 1999, or fringed-upon item and the quantity of North Carolina (Mr. COBLE) that the ‘‘(B) the first day after the date of the en- infringing items in order to make the House suspend the rules and pass the actment of this paragraph, guidelines sufficiently stringent to bill, H.R. 211, as amended. on which sufficient members of the Sen- deter such crime. This language gives tencing Commission have been confirmed to The question was taken; and (two- the Sentencing Commission the discre- constitute a quorum. tion to adopt an aggravating adjust- thirds having voted in favor thereof) ‘‘(4) The Commission shall promulgate the the rules were suspended and the bill, guidelines or amendments provided for under ment where it may be appropriate in as amended, was passed. this section in accordance with the proce- cases of pre-released copyright piracy The title of the bill was amended so dures set forth in section 21(a) of the Sen- in which no corresponding legitimate as to read: ‘‘A bill to designate the tencing Act of 1987, as though the authority copyrighted item yet exists, but the Federal building and United States under that Act had not expired.’’. economic harm could be devastating. courthouse located at 920 West River- SEC. 4. EFFECTIVE DATE. These changes will enable the Depart- side Avenue in Spokane, Washington, The amendments made by section 2 shall ment of Justice to better prosecute as the ‘Thomas S. Foley United States apply to any action brought on or after the crimes against intellectual property. date of the enactment of this Act, regardless Courthouse’, and the plaza at the south It is vital that the United States rec- of the date on which the alleged activity ognizes intellectual property rights entrance of such building and court- that is the basis of the action occurred. house as the ‘Walter F. Horan Plaza’.’’ and provides strong protection and en- The SPEAKER pro tempore. Pursu- forcement against violations of those A motion to reconsider was laid on ant to the rule, the gentleman from the table. rights. By doing that the United States North Carolina (Mr. COBLE) and the will protect its valuable intellectual f gentleman from California (Mr. BER- property and encourage other countries MAN) each will control 20 minutes. GENERAL LEAVE to enact and enforce strong copyright The Chair recognizes the gentleman protection laws. Mr. COBLE. Mr. Speaker, I ask unan- from North Carolina (Mr. COBLE). I would like to commend the distin- imous consent that all Members may GENERAL LEAVE guished gentleman from California have 5 legislative days within which to Mr. COBLE. Mr. Speaker, I ask unan- (Mr. ROGAN) for his leadership in intro- revise and extend their remarks and in- imous consent that all Members may ducing this bill and his hard work in clude extraneous material on H.R. 211, have 5 legislative days to revise and ex- bringing it to this point. H.R. 1761 is an as amended. tend their remarks and insert extra- important piece of legislation, and I The SPEAKER pro tempore. Is there neous material into the RECORD on the urge my colleagues to support it. objection to the request of the gen- bill under consideration. Mr. Speaker, I reserve the balance of tleman from North Carolina? The SPEAKER pro tempore. Is there my time. There was no objection. objection to the request of the gen- Mr. BERMAN. Mr. Speaker, I yield f tleman from North Carolina? myself such time as I may consume. Mr. Speaker, I rise in support of H.R. There was no objection. COPYRIGHT DAMAGES 1761, the Copyright Damages Improve- Mr. COBLE. Mr. Speaker, I yield my- IMPROVEMENT ACT OF 1999 ment Act of 1999. Consistent with the self such time as I may consume. responsibility conferred on us by arti- Mr. COBLE. Mr. Speaker, I move to Mr. Speaker, H.R. 1761 makes signifi- cle 1, section 8, of the Constitution, we suspend the rules and pass the bill cant improvements in the ability of the are required from time to time to as- (H.R. 1761) to amend provisions of title Copyright Act to deter copyright in- 17, United States Code, relating to pen- sess the efficacy of our intellectual fringement. It will increase the statu- property laws in protecting the works alties, and for other purposes as tory damages available to copyright amended. of authors and inventors. Toward that owners whose registered works have end earlier this year the Subcommittee The Clerk read as follows: been infringed in an effort to deter in- on Courts and Intellectual Property re- H.R. 1761 fringing conduct. Copyright piracy is solved to address several concerns Be it enacted by the Senate and House of Rep- flourishing in the world. With the ad- which had been brought to our atten- resentatives of the United States of America in vanced technologies available and the tion regarding the deterrence of copy- Congress assembled, fact that many computer users are ei- right infringement and penalties for SECTION 1. SHORT TITLE. ther ignorant of the copyright laws or such infringement in those instances This Act may be cited as the ‘‘Copyright simply believe that they will not be when it does unfortunately occur. Damages Improvement Act of 1999’’. caught or punished, the piracy trend The bill originally reported out by SEC. 2. STATUTORY DAMAGES ENHANCEMENT. will continue. the Committee on the Judiciary was Section 504(c) of title 17, United States One way to combat this problem is to broader in scope than the bill before us Code, is amended— increase the statutory penalties for today, and I supported that bill in its (1) in paragraph (1)— copyright infringement so that there (A) by striking ‘‘$500’’ and inserting ‘‘$750’’; previous form, but we resolved to bring and will be an effective deterrent to this before this body a bill reflecting a con- (B) by striking ‘‘$20,000’’ and inserting conduct. sensus, and that is what we have done. ‘‘$30,000’’; and Another significant aspect of H.R. I know of no opposition to the bill (2) in paragraph (2), by striking ‘‘$100,000’’ 1761 addresses a problem the sub- under consideration today. and inserting ‘‘$150,000’’. committee learned about during an The bill has two key features. First SEC. 3. SENTENCING COMMISSION GUIDELINES. oversight hearing on the implementa- the bill provides an inflation adjust- Section 2(g) of the No Electronic Theft tion of the NET Act and enforcement ment for copyright statutory damages. (NET) Act (28 U.S.C. 994 note) is amended by against Internet piracy. The House Ju- It has been well over a decade since we striking paragraph (2) and inserting the fol- diciary Subcommittee on Courts and last adjusted statutory damages for in- lowing: Intellectual Property received testi- ‘‘(2) In implementing paragraph (1), the flation. Our purpose must be to provide Sentencing Commission shall amend the mony about the lack of prosecutions meaningful disincentives for infringe- guideline applicable to criminal infringe- being brought under the act by the De- ment, and to accomplish this the cost ment of a copyright or trademark to provide partment of Justice and the Sen- of infringement must substantially ex- an enhancement based upon the retail price tencing Commission staff failure to ad- ceed the cost of compliance so that August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6799 those who use or distribute intellectual Sentencing Commission's failure to address S. 1257 property have an incentive to comply Congress' desire to impose strict penalties for Be it enacted by the Senate and House of Rep- with the law. The inflation adjust- violators. The committee heard how the price resentatives of the United States of America in ments provided in H.R. 1761 accomplish that pirated material is sold for on the black Congress assembled, that objective. market is often the value used for prosecution, SECTION 1. SHORT TITLE. This Act may be cited as the ‘‘Digital Secondly, at a hearing held this past not the actual value of the copyrighted item. Theft Deterrence and Copyright Damages May, the Subcommittee on Courts and This is wrong. My bill clarifies that the Sen- Improvement Act of 1999’’. Intellectual Property heard evidence tencing Commission shall use the retail price SEC. 2. STATUTORY DAMAGES ENHANCEMENT. that the current sentencing guidelines and quantity of the infringed-upon goods as Section 504(c) of title 17, United States for intellectual property crimes is not bases for determining their value. Code, is amended— sufficiently stringent to deter such Finally, I want to recognize and thank all of (1) in paragraph (1)— crimes. the interested parties who came together to (A) by striking ‘‘$500’’ and inserting ‘‘$750’’; and b 1700 work out the compromise language that is (B) by striking ‘‘$20,000’’ and inserting contained in the manager's amendment today. ‘‘$30,000’’; and The subcommittee’s conclusion rati- These needed changes will give added protec- fied by the committee was that the (2) in paragraph (2)— tions to copyright owners by strengthening the (A) by inserting ‘‘(A)’’ after ‘‘(2)’’; current guideline with its reliance on deterrents for intellectual property theft, and (B) by striking ‘‘$100,000’’ and inserting the value of the infringing item should enable the Department of Justice to better ‘‘$150,000’’; be replaced with a guideline based on prosecute crimes against copyright owners. (C) by inserting after the second sentence the retail price of the infringed upon Mr. Speaker, it is crucial that our country re- the following: item. At the same time, as a result of main the leader in the protection and enforce- ‘‘(B) In a case where the copyright owner quite productive discussions with the demonstrates that the infringement was part ment of intellectual property rights, H.R. 1761 of a repeated pattern or practice of willful staff of the sentencing commission, we increases the damages for copyright infringe- acknowledged the commission’s ability infringement, the court may increase the ment, and serves as a strict deterrent for award of statutory damages to a sum of not to make reasonable adjustments, ag- those who try to skirt the law. I urge my col- more than $250,000 per work.’’; and gravating or mitigating, as appro- leagues to support the passage of this bill in (D) by striking ‘‘The court shall remit priate. its amended form. statutory damages’’ and inserting the fol- Mr. Speaker, I want to thank the Mr. COBLE. Mr. Speaker, I have no lowing: chairman of the subcommittee for further requests for time, and I yield ‘‘(C) The court shall remit statutory dam- bringing this bill to the floor and for ages’’. back the balance of my time. Passed the Senate July 1, 1999. his consistent work in bringing bills to The SPEAKER pro tempore (Mr. MIL- strengthen our intellectual property MOTION OFFERED BY MR. COBLE LER of Florida). The question is on the Mr. COBLE. Mr. Speaker, I offer a laws to the floor. motion offered by the gentleman from Mr. Speaker, I yield back the balance motion. North Carolina (Mr. COBLE) that the The Clerk read as follows: of my time. House suspend the rules and pass the Mr. COBLE. Mr. Speaker, I yield my- Mr. COBLE moves to strike all after the en- bill, H.R. 1761, as amended. acting clause of the Senate bill, S. 1257, and self such time as I may consume. The question was taken; and (two- to insert in lieu thereof the text of H.R. 1761 Mr. Speaker, I thank my friend from thirds having voted in favor thereof) as it passed the House. California, and I was about to do the the rules were suspended and the bill, The motion was agreed to. same to him. We have worked very as amended, was passed. The Senate bill was ordered to be closely on this. This has taken a good A motion to reconsider was laid on read a third time, was read the third amount of time, both on the part of the table. time, and passed. gentleman from California (Mr. BER- Mr. COBLE. Mr. Speaker, I ask unan- The title of the Senate bill was MAN) and me as well as other members imous consent to take from the Speak- amended so as to read: ‘‘to amend pro- of the subcommittee and staff. All have er’s table the Senate bill (S. 1257) to visions of title 17, United States Code, done a good job. This is an important amend statutory damages provisions of relating to penalties, and for other pur- piece of legislation. title 17, United States Code, and ask poses.’’. Mr. ROGAN. Mr. Speaker, copyright viola- for its immediate consideration in the A motion to reconsider was laid on tions, particularly those via the Internet, are a House. the table. growing problem. H.R. 1761 the Copyright The Clerk read the title of the Senate A similar House bill (H.R. 1761) was Damages Improvement Act of 1999 ensures bill. laid on the table. that changes in federal law keep up with The SPEAKER pro tempore. Is there f changes in technology. This bill provides an objection to the request of the gen- GENERAL LEAVE effective deterrent against copyright infringers tleman from North Carolina? Mr. COBLE. Mr. Speaker, I ask unan- and Internet privacy. I am pleased to join the Mr. BERMAN. Mr. Speaker, reserving imous consent that all Members may chairman of the Courts and Intellectual Prop- the right to object, I do so simply to have 5 legislative days within which to erty Subcommittee, Mr. COBLE, and the gen- yield to my friend from North Carolina revise and extend their remarks on tleman from Virginia Mr. GOODLATTE, along to indicate his intentions with respect H.R. 1761, as amended. with the ranking member of the subcommittee, to bringing up the Senate bill at this The SPEAKER pro tempore. Is there the gentleman from California Mr. BERMAN, to time. objection to the request of the gen- make these significant improvements to the Mr. COBLE. Mr. Speaker, will the tleman from North Carolina? Copyright Act and the No Electronic Theft Act. gentleman yield? There was no objection. H.R. 1761 will increase the amount of statu- Mr. BERMAN. I yield to the gen- f tory damages available for copyright infringe- tleman from North Carolina. ment. Specifically, this bill, as amended, in- Mr. COBLE. Mr. Speaker, the purpose RECESS creases existing penalties for infringement by of this request is to amend the com- The SPEAKER pro tempore. Pursu- 50%. Further, the bill clarifies Congress' intent panion Senate bill and send it back to ant to clause 12 of rule I, the Chair de- that the United States Sentencing Commission the Senate with the amendment that clares the House in recess until ap- consider the retail price of a legitimate in- the House just passed. proximately 5:15 p.m. fringed-upon work and the quantity of the in- Mr. BERMAN. Mr. Speaker, reclaim- Accordingly (at 5 o’clock and 3 min- fringed upon works when determining sen- ing my time, I withdraw my reserva- utes p.m.), the House stood in recess tencing guidelines for intellectual property of- tion of objection. until approximately 5:15 p.m. fenses. The SPEAKER pro tempore. Is there f During the subcommittee's hearing on the objection to the request of the gen- b 1717 ``Implementation of the NET Act and Enforce- tleman from North Carolina? ment Against Internet Privacy,'' the concern There was no objection. AFTER RECESS raised about the lack of prosecutions being The Clerk read the Senate bill, as fol- The recess having expired, the House brought by the Justice Department and the lows: was called to order by the Speaker pro H6800 CONGRESSIONAL RECORD — HOUSE August 2, 1999 tempore (Mr. MILLER of Florida) at 5 States for his consideration so that it Mr. ARCHER. Mr. Speaker, I yield o’clock and 17 minutes p.m. would become law. myself such time as I may consume, f Yet, Mr. Speaker, nobody in the and I rise in opposition to the motion House or the Senate, no Democrats or to instruct conferees. APPOINTMENT OF CONFEREES ON Republicans, truly believe that any- Mr. Speaker, this motion it is almost H.R. 2488, FINANCIAL FREEDOM body believes the President is going to identical to the motion to recommit ACT OF 1999 sign such a bill. that was offered by the minority when Mr. ARCHER. Mr. Speaker, pursuant This thing rushed through the Com- the tax bill was debated on the floor of to clause 1 of rule XXII and by the di- mittee on Ways and Means in 1 day. the House and perhaps we might sim- rection of the Committee on Ways and And why? Because it was already pre- plify things by simply stipulating to Means, I move to take from the Speak- packaged. We already had an offer from the debate that occurred on that mo- er’s table the bill (H.R. 2488) to provide the majority that we had to refuse. A tion and then we could just go to a for reconciliation pursuant to sections similar thing occurred in the Senate. vote. 105 and 211 of the concurrent resolution So this evening we meet for the first But I am not sure that I am quite as on the budget for fiscal year 2000, with time. Do we really meet to work out eloquent as the gentleman from Okla- a Senate amendment thereto, disagree our differences in order to have a tax homa (Mr. WATTS); but I would say, Mr. to the Senate amendment, and agree to cut bill? No. We meet to see how Re- Speaker, that the American people are the conference asked by the Senate. publicans in the House and Republicans caught in a tax trap. The longer they The SPEAKER pro tempore. The gen- in the Senate can fashion a bill to such work, the harder they work, the more tleman from Texas (Mr. ARCHER) is rec- an extent that they know that the they pay. And that is wrong. ognized for 1 hour. President of the United States will Now the American people are simply Mr. ARCHER. Mr. Speaker, I yield have to veto it. And so instead of talk- paying too much. Perhaps it was unex- myself such time as I may consume. ing as legislators, instead of talking as pected, but they are paying too much. Mr. Speaker, this is the customary tax writers, we are having a political And the strongest proof of this is that motion to go to the conference with meeting to determine the campaign for the IRS is now accumulating more the Senate. I understand that the mi- the year 2000. cash and will accumulate more cash in nority has a motion to instruct which Chairman Greenspan had indicated the future. is debatable for 1 hour, so I would yield that he thought it would be best for the Americans are sending too much back the balance of my time. economy for us just to take a deep money to Washington and there is ac- The SPEAKER pro tempore. The breath, to do nothing. To just allow tually more money than is projected question is on the motion offered by hundreds of billions of dollars to pay for the government’s needs in which to down our national debt, to give a tax operate. the gentleman from Texas (Mr. AR- cut for everybody by reducing the in- Mr. Speaker, the problem is not that CHER). Washington does not have enough The motion was agreed to. terest for everybody. And then we say that after we take a look at this objec- money. The problem is that Wash- MOTION TO INSTRUCT OFFERED BY MR. RANGEL tive suggestion by Chairman Green- ington does not spend money effi- Mr. RANGEL. Mr. Speaker, I offer a span, we should do what every respon- ciently, prudently, productively. We motion to instruct conferees. sible citizen would want us to do, and should begin to cut out the waste in- The Clerk read as follows: that is to find out how much money do stead of saying we have got to have Mr. RANGEL moves that (1) in order to pre- we owe? How much money do we have? more money and more money and more serve 100 percent of the Social Security And why not pay off some of this debt money. Trust Fund surpluses for the Social Security before we move forward? I know there are those who believe program and to preserve 50 percent of the The Republicans would suggest, oh, that Washington knows best how to currently projected non-Social Security sur- pluses for purposes of reducing the publicly my God, we have to return this money spend the people’s money and they held national debt, and; to the taxpayers because if we do not, should not be given the opportunity to (2) in order to insure that there will be ade- we will spend it. Well, I know it is a do it because maybe they might make quate budgetary resources available to ex- very small majority that they have, a mistake; but it is their money, not tend the solvency of the Social Security and but they still are the majority. They ours and I am proud that the House and Medicare systems, and to provide a Medicare still are the leaders. And unless we Senate on a bipartisan basis think this prescription drug benefit, have an implosion, unless we have an is unfair and have passed good plans to The managers on the part of the House at exodus, it seems as though they will let people keep more of their money. the conference on the disagreeing votes of Yes, the plans are different, but they the two Houses on the Senate amendments have the majority at least until the to the bill, H.R. 2488 be instructed, to the ex- year 2000. So what are they afraid of if are both based on the principle that all tent permitted within the scope of con- they are the ones that are in control of Americans deserve to keep more of ference, to insist on limiting the net 10-year the spending? what they have earned. After all, it is tax reduction provided in the conference re- So we just hope that the motion to their money. If we keep it in Wash- port to not more than 25 percent of the cur- instruct the conferees is save Social ington, politicians will most surely rently projected non-Social Security sur- Security, save Medicare, and let the spend it. pluses (or if greater, the smallest tax reduc- conference say we do not need a polit- That has been the way it has been tion permitted within the scope of the con- ical statement, but we are going to throughout history. And over the last ference). come back together, send this bill hundred years right here in Wash- The SPEAKER pro tempore. The gen- quickly to the President to get the ington, over 70 percent of all of the sur- tleman from New York (Mr. RANGEL) veto that you are begging for, and then pluses that have ever been generated and the gentleman from Texas (Mr. AR- we will not have to debate throughout into the Federal Government have been CHER) each will control 30 minutes. August what the tax bill would have spent by politicians. Unfortunately, The Chair recognizes the gentleman been, but we can work together not as the motion before us is designed to from New York (Mr. RANGEL). Democrats, not as Republicans, but keep hundreds of billions of dollars in Mr. RANGEL. Mr. Speaker, I yield Members of the House and Senate to excess taxpayer money in Washington myself such time as I may consume. say to America we fixed the Social Se- to be spent. All along, we warned that Mr. Speaker, few people in the coun- curity system, we fixed the Medicare there would be enormous pressure and try and a lot of people in the House of system, we fixed the prescription drugs great temptation to spend this budget Representatives are unaware as to that are so necessary for our senior surplus on more government programs, what this procedure is in terms of citizens. Now we will review and see and it looks like we were right. But, going to conference. Civics 101 would what in the responsible way we can do Mr. Speaker, we do not need full-time dictate that the House and Senate con- to reduce the tax burdens on all of government and part-time families. We ferees are trying to come out in a con- America and not just the richest need part-time government and full- ference in working out their dif- among us. time families. ferences so that we can send a tax cut Mr. Speaker, I reserve the balance of This motion guts broad-based tax re- bill to the President of the United my time. lief for the taxpayers who created the August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6801 budget surplus in the first place. This The gentleman from Oklahoma (Mr. again.’’ Whenever Republicans want to motion threatens marriage penalty re- WATTS) said last week that that will lower the tax burden on families, my lief. This motion would make it tough- save Social Security. That will not friends on the other side of the aisle al- er for people who care for elderly rel- save Social Security. By putting the $2 ways say it is going to somehow hurt atives at home by blocking health and trillion in a lockbox, all that does is people when they lower their taxes. long-term care insurance incentives. make sure that Social Security prob- Now, where I come from, people tell This motion would stand in the way of lem does not get any worse, that it me their tax burden is too high. Our pension modernization that will help does not get any worse. That is what tax burden today is 21 percent of our more men and women enjoy retirement the issue is. But it will not solve that economy which is consumed by the security. problem. Federal Government. This motion would take away edu- In fact, what will be needed, if we do Since 1993, the tax burden has contin- cation incentives to make college more not want to cut benefits, is general ued to go up. In fact, in 1993, the tax affordable and to give parents the abil- fund money going into the Social Secu- burden was less than 18 percent. Today ity to save for their children’s edu- rity system. The bill of the gentleman it is 21 percent of our gross domestic cation and that is what is fair. from Texas (Mr. ARCHER) and the gen- product going to the Federal Govern- Mr. Speaker, we can save Social Se- tleman from Florida (Mr. SHAW) puts ment. That tax burden is too high. curity, strengthen Medicare, and pro- general fund money into the Social Se- When it comes to Medicare and So- vide for prescription drug benefit for curity system. cial Security, thanks to this Repub- needy seniors, pay down the debt and Now, we have a $1 trillion dollars sur- lican Congress, we have a balanced provide tax relief for the American plus that is projected, it is only pro- budget, the first balanced budget in 28 people. Mr. Speaker, 25 cents out of jected over the next decade in the on- years. It is now projected to provide a every dollar of surplus is what we are budget, non-Social Security surplus. If $3 trillion surplus over the next 10 talking about in this tax relief bill. in fact this tax cut goes through and years. Under our budget, of course we do There is plenty to do all of these other becomes law, and we all agree it prob- something that Congresses of the past things. ably will not, but assuming my col- and Presidents of the past for the last I hearken back again when I say deja leagues vote for this tax bill, that es- 30 years have refused to do; and that is, vu to 1995, 1996, and the beginning of sentially means that they are going to we set aside 100 percent of Social Secu- 1997 when the same people who offer favor cuts in benefits over the Social rity for retirement security to save this motion to instruct said, oh, we Security system. cannot give tax relief until after we Medicare and Social Security. I have to say the purpose of this vote Now these 3 dollar bills I have, each have balanced the budget. First things is to put Members on record so that the first. dollar bill represents $1 trillion. Under American public in the year 2000 will our budget, we set aside $1 trillion, $2 b 1730 find out who wants to protect Social trillion. In fact, we set aside two-thirds Yet, most of them voted for a tax re- Security and maintain the level of ben- of the so-called surplus over the next 10 lief bill when we did not even have a efits we have now or who wants to cut years for retirement security, leaving balanced budget. Most of them voted benefits. Because this vote, if my col- one-third for other purposes. for a tax relief bill almost as big as this leagues vote against this motion to re- We believe the vast majority of that one today that they call risky and irre- commit, they are saying, in the year extra surplus, the non-Social Security sponsible when we had no surplus pro- 2001, when we try to deal with Social surplus, should go to help working fam- jections at all. Security, that they are going to cut ilies, helping working families by low- We heard not one word about Social benefits, or an alternative, they may ering their taxes. Security. We heard not one word about want to raise payroll taxes, although I Now, folks complain their taxes are Medicare. We heard not one word about do not believe that is true, so they are too high. That is a common concern. paying down the debt. My how things going to be cutting benefits. But folks also tell me back home that change. So this vote against the motion to the tax code is too complicated. They To my colleagues on the other side recommit will be to cut benefits and are frustrated that they will have to who say we cannot, I simply remind Social Security. What we are talking hire someone else to do their taxes. them of the Democratic Senator from about here is a reduction in benefits of They are frustrated about the unfair- Nebraska, BOB KERREY’s comment 25 percent of the Social Security bene- ness of the tax code. Frankly, a lot of about their argument. He said, ‘‘To fits. them are just plain angry that, under suggest that we cannot afford to cut So I urge a ‘‘yes’’ vote on the motion our tax code, a married working couple income taxes when we are running a $3 of the gentleman from New York (Mr. on average pays $1,400 in higher taxes trillion surplus is ludicrous.’’ RANGEL). just because they are married. Mr. Speaker, I urge opposition to this Mr. ARCHER. Mr. Speaker, I yield Under this packaged tax relief to motion to instruct conferees. myself 1 minute simply to respond to help working families, we eliminate Mr. Speaker, I reserve the balance of the gentleman from California (Mr. the marriage tax penalty for a major- my time. MATSUI), and he is my friend. ity of those who suffer it. I have an ex- Mr. RANGEL. Mr. Speaker, I yield 3 This is the same sort of statement ample here of a couple back in Joliet, minutes to the gentleman from Cali- that we heard when we passed the last Illinois, Michelle and Shad Callahan. fornia (Mr. MATSUI). tax relief bill: One cannot balance the They are schoolteachers in the Joliet Mr. MATSUI. Mr. Speaker, I would budget and pass tax relief. One will be public school district. In fact, Michelle just like to make a couple observa- cutting benefits. One will be doing all here is due any day to have a baby, tions. As the ranking member of the these awful things. But we did it. their first child. Subcommittee on Social Security who I say, Mr. Speaker, today we can save They discovered when they got mar- has studied the issue of Social Security Social Security, we can save Medicare, ried that they now pay higher taxes now for 21⁄2 years, I have to say that we can give a prescription drug benefit, just because they are married. In fact, there was a lot of misleading informa- and we can pay down the debt, and we they pay the average marriage tax pen- tion passed on by the House of Rep- can give a small amount in tax relief to alty of $1,400. Their combined income is resentatives last week when we dis- the people who earned it. about $60,000. cussed this bill. Mr. Speaker, I yield 4 minutes to the Under our legislation we passed out There has been a lot of talk about a respected gentleman from Illinois (Mr. of the House, 70 percent of taxpayers lockbox and $3 trillion. The fact that $2 WELLER), a member of the Committee receive direct marriage tax relief. I be- trillion will be put in a lockbox, that in on Ways and Means. lieve by the time the House and Senate fact is Social Security money. That is (Mr. WELLER asked and was given work out their differences, more fami- payroll tax money coming in over the permission to revise and extend his re- lies like Michelle and Shad will receive next decade, 15 years, the $2 trillion. marks.) marriage tax relief. The problem is that will not preserve Mr. WELLER. Mr. Speaker, as Ron- We work to address the marriage tax Social Security. ald Reagan once said ‘‘Here we go penalty, addressing the unfairness in H6802 CONGRESSIONAL RECORD — HOUSE August 2, 1999 the tax code, and also simplify the tax they meet our current responsibilities. they had the White House, the House, code. Because in the House-passed tax We think that should be our first pri- and the Senate. They wanted govern- relief, 6 million couples will no longer ority. ment socialized health care. It failed need to itemize. Why do we say that? If they look at miserably. I would also point out that, under our the Republican bill to pass this House, They want government control of legislation, since Michelle is due to it not only spends the trillion dollars education and environmental laws. have a baby, like many moms like to during the first 10 years, but then it ex- They even want government control of do, she is a working mom, she may plodes after that, because it is private property. They want union over take some time off from being in the backloaded. It shoots up to $4 trillion small business. They want the highest work force to be home with her baby. over the next 10 years. Just as the baby possible socialized spending, and they Under the legislation we passed out of boomers are reaching the age of eligi- want the highest possible progressive the House, we are going to let Michelle bility for Social Security and Medi- tax that they can get. The highest pro- make up missed contributions to her care, we are not going to be able to gressive tax, income tax. retirement accounts with catch-up pro- meet our obligations for Social Secu- That is what the Democratic Party is visions. That will help Michelle and rity and Medicare. That is why we say controlled by, their leadership, the Shad and working families just like they cannot do both. We cannot do Democratic Socialists of America, the Michelle and Shad Callahan. both. Progressive Caucus. Guess what, one of This legislation is good legislation. Our priority is to protect Social Se- their agenda is also to cut defense by 50 We simplify the code by eliminating curity and Medicare. And how about percent to pay for that spending. the marriage tax penalty for millions paying off some of the debt? That will We fought to save Medicare, and the of working couples, by eliminating the help everybody. The Republicans on Democrats fought against it, dead death tax which is suffered by family one hand offer tax relief, they say; and fought against it, $100 million of union farmers and family businesses, by pro- then, on the other hand, they are going ads against it. In 1993 when they had viding alternative minimum tax relief to increase interest rates because of the White House, they had the Senate, to millions of middle class families their irresponsibility. and they had the House, they raised that now suffer the alternative min- That couple that was so nice that taxes. They promised a middle-class imum tax. Also, if one is self-employed, they are trying to help, they are going tax cut. What did they do? They in- an entrepreneur, we give 100 percent to lose all that money by increased in- creased the tax on the middle class. deductibility for one’s health insur- terest costs if they have any credit re- They increased the tax on Social Secu- ance, the same corporations get. sponsibility under any charge accounts rity. Today, one only gets 60 percent, and we or financing a car. They are going to Yeah, they made some cuts, and they believe one should get 100 percent. end up paying back more that is in the showed what their real stripes were be- Mr. Speaker, lowering taxes in a time Republican tax bill. cause they cut veterans’ COLAs, they of prosperity is a good idea. In fact, let This is an irresponsible and reckless cut military COLAs, and they in- me quote a Democrat on the other side proposal. That is why our motion to in- creased the tax on Social Security. of the aisle, BOB KERREY. He says, ‘‘To struct is an attempt to try to bring b 1745 suggest we cannot afford to cut income some sanity to what left this House as taxes when we are running a $3 trillion far as the tax relief is concerned. Now, we have a balanced budget, and surplus is ludicrous.’’ Fortunately, this bill will not be- we are going to have tax relief, not for Cutting taxes deserves bipartisan come law. That is the good news. The the rich, as the Karl Marx-Engels class support. President is going to veto it if it passes warfare Democrats talk about, but we Mr. RANGEL. Mr. Speaker, I yield anywhere near its current form. We do are going to have a tax break for work- myself 10 seconds to thank the gen- not believe that we should go back to ing Americans. tleman from Illinois (Mr. WELLER) the 1980s when we tried trickle-down Mr. RANGEL. Mr. Speaker, I yield making this so personal in sharing the economics and we were told that tax myself 10 seconds just to say that Her- happiness of Shelly and Shad Callahan, cuts were going to help our economy, bert Hoover is still alive and Herbert and I would like to wish them well. But and all it did was grow our debt. Hoover is well. The same accusations if they are really looking for a sim- Now, I understand the Republicans that were made against President plification from what is going on in the did not support the 1993 economic pro- Franklin Roosevelt for the Social Se- House and Senate conference, they are gram that brought about our pros- curity System we hear today. in for a nightmare. perity. We understand that. But do not Mr. Speaker, I yield 3 minutes to the Mr. Speaker, I yield 3 minutes to the turn the clock backwards and try to gentleman from Michigan (Mr. LEVIN). gentleman from Maryland (Mr. accumulate large debt again. (Mr. LEVIN asked and was given per- CARDIN). We do have projected surpluses in the mission to revise and extend his re- Mr. CARDIN. Mr. Speaker, first, let future. Let us use that to pay down our marks.) me correct the gentleman from Illinois debt so that we can continue the eco- Mr. LEVIN. Mr. Speaker, I want to (Mr. WELLER) in that we do not have a nomic prosperity that we have. Let us get back to the subject at hand. When balanced budget. We do not have a bal- meet our obligations under Social Se- the Republican leadership was trying anced budget today unless they count curity and Medicare. Let us invest in to find the votes for the bill, the major- the surplus for Social Security gen- the priorities that are important, in- ity leader said this: ‘‘You always know erated income, and none of us want to cluding responsible tax legislation. how many horses are in the herd, it is do that. This bill is irresponsible. The motion just a question of how long it takes to They talk about $3 trillion over the to instruct corrects it. I urge my col- get them into the barn.’’ Well, I hope next 10 years. We do not have that. If leagues to support the motion. that some of the horses that went into they look at what is the on-budget sur- Mr. ARCHER. Mr. Speaker, I yield 2 the barn will take a second look and plus that we all acknowledge is money minutes to the gentleman from Cali- get out of this barn before we get a that could be used, we have a projected fornia (Mr. CUNNINGHAM). roaring deficit once again that would $1 trillion surplus over the next 10 Mr. CUNNINGHAM. Mr. Speaker, I burn it down. years; and we have not seen dime one want my colleagues to look up in the The proponents of this bill like to of it yet. Yet, the Republicans want to web page www.dsausa.org. It stands for talk about a $792 billion cost, but look spend the surplus before we get the sur- Democratic Socialists of America. at the second 10 years. It would be $3 plus. That is not responsible. In there, the Progressive Caucus, 58 trillion, $3 trillion. And the timing We are talking about what should the Members of the Democratic party be- could not be worse, as this chart shows, priorities be, and the Democratic mo- long to that. What do they want, Mr. because at the time there would be an tion makes it clear that our priorities Speaker? This is their own 12-point explosion, an explosion, in terms of should first meet our current respon- agenda, not mine, but their 12-point revenue loss that same second 10-year sibilities under Social Security and agenda. They want government control period, the Social Security surplus be- Medicare, not an expanded role, but of health care. They tried that when gins to fall. During the same period, August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6803 Medicare runs out of money, 2015. And documents, ‘‘The President’s proposals will not listen to them, they should lis- during that same period, non-Social would spend most of the projected on- ten to the chairman of the Federal Re- Security budget surpluses begin to fall. budget surpluses.’’ Would spend them. serve, Mr. Greenspan, who has vocally Look, there could not be anything And the debt would increase by a denounced a massive tax cut initiative worse in timing. But to make it even greater amount than under the budget such as the ones passed by the House worse, the projected surpluses do not that we Republicans passed this year and the Senate as potentially harmful even include recognition that there and is now the congressional budget for to our Nation. may be emergency supplementals. the United States of America. This bill does not strengthen Social Listen, I say to the Republicans, to a Will it be easy? No, it will not be Security and Medicare and it does not fellow Republican, Alan Greenspan, easy. We need to assure the taxpayers assist our school districts with build- who serves in a nonpartisan position at that the money that they send here is ing new schools and modernizing their the moment. Here is what he has said spent right and not wastefully, instead old, outdated, and ofttimes unsafe ex- about the Republican bill. ‘‘Hold off for of merely saying we have to throw isting structures. a while,’’ ‘‘the timing is not right for more money at it. And there is more In closing, Mr. Speaker, I ask my col- your bill,’’ ‘‘allow the surpluses to run than enough money in the Social Secu- leagues to envision one classroom in for a while.’’ rity surplus to pay down the Federal my district. A single-room classroom The chairman of the Committee on debt, to save Social Security, to save with 50 kindergarten students in it, Ways and Means refers to the 1997 tax Medicare. two teachers, and no funds under this bill, $275 over 10 years. This is a $3 tril- The charts that my friend from tax proposal to improve the situation lion tax cut over 20 years. This is a ri- Michigan used are a little outdated. I in the near future. diculous, a reckless, and an irrespon- am sure he did not prepare them re- Mr. Speaker, I urge my colleagues to sible proposal. It would return our cently, in the last 24 hours. The Senate support this motion to instruct con- country to the days of borrow and already, by their rules, prohibits any ferees. Mr. ARCHER. Mr. Speaker, I yield spend. additional revenue losses outside of the I heard the chairman of our com- 10-year window. They are shut off to- myself such time as I may consume, because again Mr. Greenspan’s com- mittee say we can do it all; it is easy. tally. Not $1 is permitted to be used for ments are taken out of context. He said We can do everything. Do not worry, be tax relief outside of the 10-year win- that as between tax relief and spend- happy. Well, if this law ever were en- dow. ing, he would far prefer tax relief. In acted, this country would be very sad. Besides that, there are no official fact, he said, ‘‘It is not even a close The Republican Party is becoming the projections for the years after 10 years, call.’’ spendthrift party. The spendthrift so one can only guess. There are not of- ficial government documents, but The Congressional Budget Office has party. just certified that the President pro- This is reckless, it is irresponsible, under the Senate provisions that must be complied with, there is not $1 of rev- poses to spend almost all of the pro- let us vote for the motion to instruct. jected on-budget surplus. Mr. Green- Mr. ARCHER. Mr. Speaker, I yield enue loss outside of the 10-year win- dow. So the gentleman needs to find a span would most certainly say that tax myself such time as I may consume. relief is better than spending from the I would say to the gentleman from new chart for his next speech. Mr. Speaker, I reserve the balance of surplus. In fact, he did say it and he Michigan, I did not say it was easy. I my time. will continue to say it. did not say it would be easy to balance Mr. RANGEL. Mr. Speaker, I yield 2 Mr. Speaker, I reserve the balance of the budget and give tax relief, but we minutes to the gentleman from New my time. did it. And the President himself York (Mr. CROWLEY). Mr. RANGEL. Mr. Speaker, I yield 1 speaks over and over again about the (Mr. CROWLEY asked and was given minute to the gentleman from Kansas accomplishment of a tax bill that we permission to revise and extend his re- (Mr. MOORE). pushed, and a balanced budget that we marks.) Mr. MOORE. Mr. Speaker, I also pushed. He claims that. Mr. CROWLEY. Mr. Speaker, I rise to would like to speak to the last gen- I did not say it would be easy. It will support the Democratic motion to in- tleman who spoke and say that I also not be easy. What I did say is it is not struct conferees on the Republican tax heard Mr. Greenspan in the Committee that Washington does not have enough bill. on Banking and Financial Services. I money to spend, but if we get tough America needs a fiscally responsible heard what he said, and what he said and we eliminate the waste and we be- tax bill, not an excessive and reckless was, ‘‘My first preference is to pay come prudent and productive in the $800 billion tax cut, almost a trillion down debt.’’ My first preference is to utilization of the taxpayers’ dollars, we dollar tax cut. A tax bill of this mag- pay down debt. Now, maybe the major- do not have to keep adding bushels and nitude stands in the way of strength- ity knows something Alan Greenspan bushels of money by taxing the Amer- ening Medicare and Social Security does not, but I do not think so. I do not ican people more and more and more. and threatens the progress we have think so. They earned it; they produced it; they made in eliminating the deficit and re- We have a $5.6 trillion debt in this worked hard for it; and Washington is ducing the national debt, and it does country. We have an opportunity for enjoying a windfall. Maybe there nothing, it does absolutely nothing, to the first time in a generation to do the should be a new windfall profits tax on help our crumbling schools. right thing and put our financial house the windfall to Washington to let the My constituents have demanded this in order. The question is whether we people keep more of their money. Congress strengthen and protect Social will step up to the plate and do that or As far as Alan Greenspan is con- Security and Medicare as well as to we will take the money and run and cerned, a lot of what he said has been continue to pay off the national debt, hand the debt to our children and taken out of context and it needs to be rather than give tax breaks to the top grandchildren. set straight. He said, ‘‘If you can save 1 percent of Americans. I am not argu- It is simply not right. It is uncon- the money, save it.’’ If. ing there are no Americans who need scionable and we should not do it. The And he knows full well what the halls tax relief, but let me just add that no fiscally prudent and the financially of history teach this country and other one on this side of the aisle has said no sound thing to do is to use 50 percent countries that are democracies, and one in this country needs some tax re- to pay down the debt, 25 percent for tax that is that politicians will spend the lief, we are saying just do not give it to relief, and 25 percent for Social Secu- surplus. Let me repeat again that in the 1 percent richest people on this rity and Medicare. the last 100 years every surplus gen- planet. Many middle income families Mr. ARCHER. Mr. Speaker, may I in- erated by the Federal Government, 70 would greatly benefit from affordable quire how much time is remaining on percent has been spent by the politi- tax cuts, however, these families are each side? cians. That is a history of surpluses not the ones assisted by the Republican The SPEAKER pro tempore (Mr. MIL- that are left to ‘‘ride’’ unencumbered. tax bill. LER of Florida). The gentleman from What does the President do? In his Mr. Speaker, please listen to the Texas (Mr. ARCHER) has 14 minutes re- budget, and I now cite from the CPO American people. And if my colleagues maining, and the gentleman from New H6804 CONGRESSIONAL RECORD — HOUSE August 2, 1999

York (Mr. RANGEL) has 13 minutes re- plication of the Tax Code and also in Two weeks ago this House had a his- maining. various areas like the marriage pen- toric opportunity that every business- Mr. ARCHER. Mr. Speaker, I yield alty, and one I really want to focus on man and woman understands. That is, 31⁄2 minutes to the gentleman from is retirement security. when faced with a choice of paying Ohio (Mr. PORTMAN), a respected mem- In this bill our provisions are the down the debt or spending the surplus, ber of the Committee on Ways and most fundamental changes in retire- we should pay down the debt. We had a Means. ment security in well over a generation motion on the floor that would dedi- Mr. PORTMAN. Mr. Speaker, I thank that allow every American to have the cate 50 percent of the on-budget sur- the gentleman for yielding me this ability to save more money for them- plus to paying down the debt, 25 per- time, and I would like to say that he selves for their own retirement. It lets cent to tax cuts, 25 percent to priority deserves a lot of credit for getting this everybody save more on their 401(k) ac- spending needs such as Medicare and bill through the House and for having count. It allows everybody coming Social Security. spent this weekend working with the back into the workforce at age 50 or Today we are trying again. Senate to come up with a compromise above, particularly helpful to women Where have all the fiscal conserv- package that will, in the end, be able who have stayed at home to raise kids, atives gone in the Republican Party? to give taxpayers the relief that they to put more into their defined con- Fiscal conservatives do not spend so well deserve. tribution plans, 401(k)s, 457s, 403(b)s, money that we do not even have yet. Mr. Speaker, I rise in strong opposi- and so on. Fiscal conservatives do not ignore the tion to the motion to instruct. I was It expands all the defined benefit advice of Federal Reserve Chairman watching it over in my office and plans. These are plans that are, unfor- Alan Greenspan. Fiscal conservatives thought I should come over and talk tunately, dying on the vine out there. do not gamble with our economic secu- about the fact that the Financial Free- There are fewer and fewer of them rity, our health security, our retire- dom Act that the gentleman from being offered. We go into these plans. ment security. Fiscal conservatives un- Texas (Mr. ARCHER) and others have We enable people to save more. We en- derstand that paying down the debt put together, so many of us have had a able people to get more in terms of a means lower interest rates. Fiscal con- part in this, is, in fact, not fiscally ir- benefit. We enable people who are in servatives do not pass on debts to our responsible but it is simply taking multi-employer plans, section 415, to be children and our grandchildren. And what is $3 trillion in projected sur- able to get more into their own retire- fiscal conservatives do not backload pluses over the next 10 years and allow- ment, taking away some limits that do tax cuts into an uncertain future. ing the taxpayers to keep a little more not make any sense. It will help in the The President is right to veto this of their hard-earned money, roughly end every single American. bill. We can take it up next year. What one-third of that amount, rather than What I love about this is that 77 per- is the rush anyway? There is only $5 spending it here in Washington on new cent of pension participants are pre- billion in tax cuts next year out of the programs. cisely the people we are trying to help $792 billion in the bill, and half of that It comes down to a philosophical dif- the most who make under $55,000 a is extenders. ference, really. The philosophical dif- year. It is in this bill, and it is pre- Only six-tenths of 1 percent of the ference is that Republicans believe peo- cisely what this Congress ought to be tax relief will be effective next year, ple should be able to keep more of their doing, in the context of tax relief, sim- fiscal year 2000. The 10 percent across- hard-earned money, and the other side plifying the Tax Code, increasing the the-board tax cut, the increase in believes that it ought to be spent. savings rate in this country, and fi- standard deduction to reduce the mar- Now, we have talked about Alan nally providing retirement security for riage penalty, those could not even Greenspan here a lot today. I heard millions of Americans. happen next year. There is little tax re- Alan Greenspan testify before the Com- Sixty to 70 million Americans do not lief in the bill next year, so what is the mittee on Ways and Means, and I ques- have any kind of pension at all now. rush? tioned him. He was very straight- Millions of those Americans will be I say pay down the debt. Do what is forward. He said if it is going to be able to get immediate retirement secu- right for our children, right for Social spent or it is going to be sent back in rity from the legislation that is con- Security, right for Medicare, and right terms of tax relief, he would far prefer tained within this tax bill. for America. tax relief. In fact, he said it is not even Again, I commend the chairman. I Mr. ARCHER. Mr. Speaker, what is a close call. hope we can move on from this motion the time proration again, please? Now, Alan Greenspan may believe if to instruct, get this legislation to- The SPEAKER pro tempore (Mr. MIL- it were to stay here in Washington that gether between the House and the Sen- LER of Florida). The gentleman from it would be used to reduce the surplus. ate, and get it to the President where, Texas (Mr. ARCHER) has 101⁄2 minutes I find that hard to believe when I look hopefully, he will change his mind and remaining. The gentleman from New at the President’s own budget proposal, sign it for the American taxpayer. York (Mr. RANGEL) has 11 minutes re- which in fact spends the money. In Mr. RANGEL. Mr. Speaker, I yield 2 maining. The gentleman from New fact, in this tax bill there is more debt minutes to the gentleman from Texas York has the right to close. relief than there is in the President’s (Mr. TURNER). Mr. ARCHER. Mr. Speaker, I reserve proposal, based on what the Congres- Mr. TURNER. Mr. Speaker, the Re- the balance of my time. sional Budget Office, the nonpartisan publican tax message is one that we Mr. RANGEL. Mr. Speaker, I yield Congressional Budget Office, just told cannot trust Congress to act respon- 21⁄2 minutes to the gentleman from us last week. sibly with the surplus. California (Mr. BECERRA), a member of Second, I believe that if we look sim- They say, get the money out of town the Committee on Ways and Means. ply at the record of the last 40 years, before it even arrives here yet. Is it not (Mr. BECERRA asked and was given we will see that every time there is in- a little bit ironic to think their theme permission to revise and extend his re- deed a surplus in this town, Congress is one cannot trust the Congress to marks.) turns around and spends it, expanding manage money wisely, when they in Mr. BECERRA. Mr. Speaker, I thank Federal programs already in place and fact are in the majority? Do my col- the gentleman for yielding me the creating new programs. leagues not think that we could be dis- time. ciplined enough just to run one true Mr. Speaker, I rise in support of the b 1800 budget surplus before we spend what motion to instruct. I hope we will vote So what we are saying is very simple, we do not even have yet? for this motion to be responsible and to which is one dollar out of the three If a business had borrowed money be prudent. ought to go back. from a bank to operate for 25 years We have to remember, we are not at Second, I want to make the point straight and for the first time in 25 a crap table in Washington, D.C. This that this tax bill contains a number of years showed a small profit, would we is not Vegas. And I have seen the trick wonderful provisions for the taxpayer not think we would try to pay down made with the $3. I hope that all Amer- in terms of relief from excessive com- that huge debt? icans understand that the $3 we keep August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6805 hearing about, these $3 which represent wants to speak against the motion to tax cuts to death, as well. But that is $3 trillion, when we talk $2 trillion instruct. not the alternative that he was pre- being saved for Social Security, we are Mr. RANGEL. Mr. Speaker, reclaim- sented. There is the alternative instead not saving it for Social Security; we ing my time, that does not sound fair. of this massive tax cut bill of reducing are just telling all the people who con- Let me say this. Would the chairman the Federal debt. When he was asked tributed this money, the Social Secu- want me to have all of the Democrats last week about this House and Senate rity contributors, the taxpayers who speak and then close the argument de- Republican approach to taxes, he said give out of their payroll taxes that bate? it would be ‘‘creating a risk that I money, that we are going to reserve it. Mr. ARCHER. Mr. Speaker, if the don’t think we need.’’ Because that is what it was supposed gentleman will continue to yield, I We do not need to jeopardize either to go for. It was never meant to be served in the minority for 24 years, Social Security or our economic suc- spent for tax cuts or something else. So where I was greatly outnumbered. So I cess. And the leading Republican eco- when my colleagues talk about the feel very comfortable today being by nomic expert in this country is the one three, take the two off the table. Be- myself here. who said we ought not to do it. If he cause no one would want us to play Mr. RANGEL. Well, I guess that were here tonight, he would be endors- with that money. makes sense. But what I am trying to ing the motion of the gentleman from When we take out of people’s pay- do is to find out whether or not my col- New York (Mr. RANGEL), which is only check every month Social Security league intends to be the last speaker a motion to assure a fiscally respon- taxes, we do not tell them it is for tax before I close the debate. Because I sible bipartisan alternative; and it cuts or anything else. We tell them it have half a dozen people here and I just ought to be preferred over this tax is for their retirement. want to know, with the time being break and borrow-more scheme that is So we are left with $1 trillion, this $1 what it is, I have 8 minutes and my col- being advanced by our Republican col- bill. Most of that, under this Repub- league has 11, I do not know how to leagues. lican bill, would go to tax cuts, some space it. Mr. ARCHER. Mr. Speaker, I yield 3 $800 billion dollars. Mr. ARCHER. Mr. Speaker, if the minutes to gentleman from Arizona Now, if we take that $800 billion tax gentleman will continue to yield, when (Mr. HAYWORTH), A respected member cut, two-thirds of all that money, two- he gets to his last speaker, then I will of the Committee on Ways and Means. thirds of this $1 trillion is going to go be glad to yield the balance of my Mr. HAYWORTH. Mr. Speaker, I to 10 percent of all of America. The 10 time. thank my colleague, the esteemed Mr. RANGEL. Very good. I under- percent wealthiest tax filers get two- chairman of the House Committee on stand. thirds of this dollar. That means the Ways and Means, for yielding me the Mr. Speaker, I yield 2 minutes to the remaining one-third is left 90 percent time. of America. That is what we get with distinguished gentleman from Texas As I walked onto the floor, Mr. this tax bill. (Mr. DOGGETT), a member of the com- Speaker, I was greeted by the familiar But forget about all that because all mittee. incendiary rhetoric of my friend from this is just projections. We do not Mr. DOGGETT. Mr. Speaker, this Re- Texas. While I appreciate his ability to know what kind of surplus we will publican tax bill has declared Christ- frame in the most extreme terms what have. The projection is we will have a mas while it sizzles. is a reasonably prudent bill and action large surplus. But this is all like play- On this Christmas tree that has been to give the American people more of ing craps on a crap table. They are erected here in Washington, one will their hard-earned dollars, give it back shooting and hoping and praying that find a package wrapped up for anyone to them, I do find it interesting that they win. who has a lobbyist and a political ac- But what happens if they do not? Let tion committee. my friend from Texas supported tax re- me put it to my colleagues this way: There is one break after another. duction in 1997 when this government the average tax cut for someone who They think nothing of having the tax- was still in a deficit and yet he would earns about $50,000, a couple who earns payers subsidize 80 percent of the cost use all matters of extreme rhetoric to about $50,000 under the Republican tax of a $100 bottle of cabernet or a two- try and mischaracterize the essence of bill is about $200 per year. And that is martini lunch. They want the tax- what we are doing here as the respon- when we have got some of these provi- payers to subsidize our defense con- sible majority in the United States sions fully phased in. Because, by the tractors to go out and start more arms House of Representatives as we prepare way, in the year 2000 no one is going to races around the world. And these con- to go to conference with our friends get $200 in tax relief if they earned ferees will even be considering a tax from the other body. about $50,000. They have got to wait subsidy for chicken manure, something I think the motion offered from my until all these provisions are phased in. that many people have said symbolizes good friend from New York (Mr. RAN- But say they are all phased in. They this entire bill. GEL), the ranking member of the com- get about $200 in tax cuts. They are not Instead of simplifying the Tax Code, mittee, shows the length to which the going to have it. Because all they have this bill makes the Tax Code even more minority will go to separate the Amer- to do is save that money, use it for complex, and it certainly does not re- ican people from their hard-earned debt relief; and if they have a $20,000 duce the abusive billions of dollars that money. It is sad but true, and the rhet- debt, interest rates go down by one per- occur in corporate tax shelters that all oric indicates it and so does the motion cent, they will save $200. Do not vote the rest of us end up having to pay. to recommit. for the tax bill. Vote for this motion to And of course when it comes to fair- Mr. Speaker, as we have documented instruct. ness, this Christmas tree, while it siz- before, we talk so much about billions Mr. ARCHER. Mr. Speaker, I reserve zles, is one that provides a third of its and trillions of dollars in this body and the balance of my time. proposed individual tax benefits to the on the airwaves across America that Mr. RANGEL. Mr. Speaker, I have so wealthiest one percent of Americans. sometimes we tend to lose focus about many speakers, perhaps the distin- It is truly amusing to listen to this what it is our common sense majority guished chairman of the Committee on debate about Alan Greenspan. After proposes. Ways and Means might yield some time all, what difference does it really I think the best way to characterize to us so that we could allow the Mem- make? Well, the difference I think cen- it, Mr. Speaker and my colleagues, is bers to speak out. ters on the fact that he is a President to ask us to take a look at these $3 Mr. ARCHER. Mr. Speaker, will the Ronald Reagan appointee, an admitted bills and let them represent the $3 tril- gentleman yield? Republican, who has been given credit lion of surplus that this government Mr. RANGEL. I yield to the gen- by many people, Democrats and Repub- will have in the years to come. This is tleman from Texas. licans, for the success of our economic what we propose to do, to lock away al- Mr. ARCHER. Mr. Speaker, I would expansion. most $2 trillion dollars to save Social be happy to yield adequate time to It has been said he would prefer tax Security and Medicare. And that leaves anyone on the side of my colleague who cuts to spending. My guess is he prefers the remaining trillion dollars. H6806 CONGRESSIONAL RECORD — HOUSE August 2, 1999 This is the crux of the question, when and provide more Medicaid dollars. I defense by $68 billion? You are not we get through all the legislative leg- would hope my colleague from Texas going to do it. erdemain and the name calling, this and all of my colleagues, Republicans The Committee on Appropriations question remains at the end of the day. and Democrats, will come down on the met last week. It did not do it. It will not do it. And so if you do not do it, b 1815 side of middle-income tax cuts and sav- ing Social Security, Medicare and Med- $720 billion of the $792 billion tax cut is To whom does this money belong? We icaid. not there. It evaporates because it is would say, in the common sense major- Mr. ARCHER. Mr. Speaker, I yield built upon a false assumption. You ity, this money belongs to the people myself such time as I may consume. know it and we know it and that’s why who earned it, not to the Washington Mr. Speaker, the one thing that has you should support this truthful in- bureaucrats. Let us take this money not been debated tonight yet is what is struction to the conferences. and return it to the hardworking tax- in the Democrats’ motion to instruct. Mr. ARCHER. Mr. Speaker, I yield 2 payers who have been called on again One thing that is not in it is a 10 per- minutes to the gentleman from Michi- and again and again to feed the gaping cent across-the-board tax relief to all gan (Mr. CAMP). maw which is this insatiable Wash- working Americans and families, men Mr. CAMP. I thank the distinguished ington bureaucracy. and women who made this surplus pos- gentleman for yielding me this time. And so the gentleman’s motion to in- sible. What is not in it is marriage pen- Mr. Speaker, I think it is important struct conferees again asks us, after we alty relief for millions of Americans to point out that we are here talking have seen the largest tax increase in who are being punished simply because about this measure only after we have American history, so extreme a tax in- they got married. That is not in their a balanced budget. We have passed leg- crease that over 10 years’ time it asked motion to instruct. They do not in- islation to set aside the surplus to save for an additional $800 billion from the clude education incentives on student Social Security and Medicare. We have pockets of every American, we are told loan interest payments, education sav- locked that Social Security surplus somehow that is responsible, a tax in- ings accounts, and making prepaid col- away in a lockbox, and we are talking crease so extreme that it was retro- lege tuition plans tax-free. Those edu- about part of what is left. active, to take money from taxpayers I think it is important to point out cation provisions are not in their mo- beyond the grave in terms of the death that the average American family, and tion to instruct. Health care provi- tax. I repeat, the average American family sions, providing a tax deduction for What we simply say is, Americans today pays double in taxes what it paid people who buy their own health insur- have had enough of this. We should put only in 1985. Today’s tax burden is the the death tax to death, we should re- ance, and for long-term care, including highest ever in peacetime history. duce the marriage penalty, and I am help for people who take care of their I think the key question is, should glad my friend from Texas mentioned elderly in their own homes. Our plan your hard-earned tax dollars stay here the special interests. Because, as we has those provisions. It is nowhere to in Washington to be spent on new Fed- have seen throughout the years, no one be found in the Democrats’ motion to eral programs? Or should they be re- accedes to the special interests more instruct. The Democrat motion has no turned to you, the taxpayer, who sent than the previous liberal majority. strengthening of our pension system to them here in the first place? I think Mr. Speaker, I stand with my friends help more American workers, particu- the answer is pretty clear that you, the on the right. Reject the motion to in- larly women, get a pension and have taxpayer, deserves the money. struct conferees. greater retirement security. No, that is We have over $1 trillion in non-Social Mr. RANGEL. Mr. Speaker, I yield 1 not in their motion. Security surplus, and I think we abso- minute to the gentlewoman from Texas To 100 million American investors, lutely must return the taxpayers’ (Ms. JACKSON-LEE). the Democrats say, ‘‘Sorry, you’ve got money to the people who sent it here. (Ms. JACKSON-LEE of Texas asked to keep paying taxes on your savings Our bill means that the average Michi- and was given permission to revise and every time you sell an asset.’’ To 68 gan factory worker and his family will extend her remarks.) million Americans who have small sav- save $1,000 in income taxes. Our across- Ms. JACKSON-LEE of Texas. Mr. ings accounts, the Democrats have no the-board rate reduction will save the Speaker, I thank the gentleman from provision in their motion to instruct to seniors who live in my district over New York for yielding me this time. I help. And the Democrats’ tax hike, be- $500 in income taxes, and, if that senior rise to support the motion to instruct. cause that is what they proposed in has a mutual fund, will cut her invest- Mr. Speaker, I wish we had time for their substitute, and this motion does ment tax rate so that more of her sav- a philosophical debate as was just not even lessen the unfair death tax or ings can stay with her, not the govern- given by my esteemed colleague, but the punitive alternative minimum tax. ment. we have business to do. I would simply This motion is a turnback to the days Mr. Speaker, I believe tax relief is tell him that from the far reaches of of more taxes and more spending and needed. There is no doubt about that. my district and the people that I have away from the days of economic We have balanced the budget, we have spoken to, businesspersons, they say growth and opportunity for every set aside money for Social Security they do not want a tax cut that is so American. which pays down the debt, and I think enormous that it damages Social Secu- Mr. Speaker, I reserve the balance of now is the time for the American peo- rity and Medicare, they do not want a my time. ple to reap the rewards of their hard tax cut that will increase the national Mr. RANGEL. Mr. Speaker, I yield 1 work. I urge that we vote against the debt by $1 trillion over the next 10 minute to the gentleman from Virginia motion to instruct. years, will increase the national debt (Mr. MORAN). Mr. RANGEL. Mr. Speaker, I yield 2 by an additional $4.4 trillion over the Mr. MORAN of Virginia. Mr. Speak- minutes to the gentleman from Texas next 10 years. What they want is a fam- er, I think the biggest problem with (Mr. STENHOLM). ily-friendly, middle-income tax cut and this tax cut is that it is built upon a (Mr. STENHOLM asked and was what the Harris County citizens want false assumption, a false assumption given permission to revise and extend is the ability to be able to support the that at least the majority party is not his remarks.) Harris County Hospital District with willing to admit, and, that is, that of Mr. STENHOLM. Mr. Speaker, my Medicare and Medicaid dollars so that the $792 billion tax cut, $720 billion is friend from Texas left off a few other we do not have to cut 165 beds, cut the attributable to cutting the existing things that are not in the motion to in- treatment for AIDS and cancer, and I level of Federal spending by 29 percent struct. There is not a $200 billion in- would imagine the public hospital sys- below today’s current spending level. It crease in the national debt over the tems around this Nation are crying is not going to happen. next 5 years. There is not a $3 trillion now because we are taking $800 billion The majority party is not going to increase in our national debt from 2011 away from treating sick people, closing cut veterans spending by 28 percent, to 2020, or $4.5 trillion of additional beds, denying them service. agriculture by 33 percent, the FBI by 28 debt when you add in interest. That is What we want is a motion to instruct percent. Are you going to cut transpor- also not in the Democratic motion to to protect Social Security, Medicare, tation by 23 percent, are going to cut instruct. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6807 The motion to instruct is truly a de- While my Republican colleagues are correct pay down the debt, deal with Social Se- bate about priorities and values. The when they say that the lockbox requires us to curity and Medicare first, and then priorities, we believe very strongly this use the $2 trillion in Social Security surpluses talk about tax cuts. Do not spend pro- is the time for us to use that which we to pay down the debt held by the public, they jected surpluses that may not ever have the opportunity to do, and, that forget to mention the rest of the story: that we exist and certainly do not exist today. is, to pay down our national debt. We will be accumulating $2 trillion in IOUs to the Let us take this terrible burden of a do have a surplus. This is the time for Social Security trust fund at the same time. If $5.6 trillion national debt off our chil- us to be fiscally responsible and pay the lockbox is successful in requiring us to dren. Vote for the motion to instruct. down the national debt. This is the save future Social Security surpluses, it will Mr. ARCHER. Mr. Speaker, I yield time for us to be dealing with a very prevent us from digging the hole deeper, but the balance of my time to the gen- serious problem of 2014 and Social Se- it won't do anything about the $5.6 trillion hole tleman from Florida (Mr. SHAW), the curity, of which the gentleman from we have already dug for ourselves. chairman of the Subcommittee on So- Texas certainly knows and the gen- Despite all of the talk about the debt reduc- cial Security. tleman from Florida (Mr. SHAW) here tion trigger added to the tax bill, the debt left The SPEAKER pro tempore (Mr. MIL- knows that unless we do some things of for future generations to pay would not be one LER of Florida). The gentleman from a responsible nature soon, we will have dime smaller than the tax bill passed by the Florida is recognized for 2 minutes. deeper problems in 2014. That is what House. In fact, the national debt would in- Mr. SHAW. Mr. Speaker, I thank the we ought to be doing. That is what the crease by $200 billion over the next five years gentleman for yielding me this time. motion to instruct is all about. Do not under the Republican tax bill according to their In looking at what is before us and have a tax cut today. What we should own numbers. the guidelines in which the tax bill be debating this week before we go My Republican friends will say that the that is presently going to conference is home is Social Security reform. What President's budget will increase the debt as drawn, and looking at that in compari- we ought to be dealing with is Medi- well because his budget uses some of the sur- son with the motion to instruct, these care and Medicaid reform. We ought to pluses for new spending. I agree with much of tax bills, both the House and the Sen- have the debate on this floor right now those criticisms, but that is not what we are ate, were very carefully drawn and dealing with the problems of our hos- talking about today. The motion before us crafted within the budget limitations. I pitals around the country that are say- today provides that we should reduce the debt think it is very important for this ing to me, ‘‘Unless you deal with some and deal with Social Security and Medicare House to realize that the budget that of our problems by October the 1st, we before we talk about tax cuts or new spend- passed this House and the Senate and, must close.’’ That is what we ought to ing. under which this tax bill is tailored, be doing. The only way to truly reduce burden on fu- pays down the debt more than the Really and truly what this motion to ture generations is to lock up a significant por- President’s budget. instruct is all about is just saying ‘‘no’’ tion of the non-Social Security surpluses to re- We have heard a lot of rhetoric this to a tax cut first, let us deal with So- duce debt held by public. That is what this afternoon regarding Social Security. cial Security, let us deal with Medicare motion to instruct calls on our conferees to do. b 1830 first and then let us bring a tax cut to Paying down the national debt is the most the floor. important thing Congress can do to maintain a There is a bill, that will be filed If we would only do that, we would strong and growing economy with low inflation shortly, that the people on both sides send the kind of message to our chil- and providing working men and women with a of the aisle are fully versed in, that is dren and grandchildren that they need tax cut in the form of lower mortgages, lower the Archer-Shaw bill that could save to hear. We should not be spending credit card payments, etc. Reducing our $5.4 Social Security for all time. There is their future inheritance today based on trillion national debt will reduce the burden left ample money to save Social Security our desires and all of the wonderful to future generations by reducing the amount and save Medicare and pay down the things that we say today. We ought to of the federal budget that will be consumed by debt and give the taxpayers some re- be paying down the debt so that they interest payments. lief. will have an opportunity for the same The motion to recommit will provide an op- The previous speaker, I know he did kind of future. portunity to begin a bipartisan process to not mean to be flip, but he talked Although a lot of numbers get thrown achieve a responsible budget agreement. about funny money. This is not funny around in the budget discussions, this is really Members on both sides of the aisle have said money. This is the taxpayers’ hard- a debate about priorities and values. This mo- they agree with the Blue Dog budget approach earned dollars, and I think when my tion to instruct is based on the value that has of paying down our national debt, dealing with colleagues find that we are moving for- guided generations of Americans: the value Social Security and Medicare, and then deal- ward, that we have created a surplus, I that we should leave our country stronger for ing with tax cuts. think it is important that we not only children and grandchildren. This motion simply Voting for the motion to instruction would pay down the debt, which I agreed says that meeting our obligations for Social send a strong message to the conferees, the with, the accumulated debt must be re- Security and Medicare and first reducing the leadership in Congress and the President that duced; But I think it is also important debt burden on future generations should be a we are committed to a fiscally responsible, bi- that we let the taxpayer keep some of higher priority than current consumption for tax partisan budget that is based on the principles their own money. cuts or new spending. of paying down the national debt and dealing This is hard-earned dollars. The tax- We should put our fiscal house in order be- with our obligations before agreeing to tax payers are paying far too much money fore we talk about tax cuts or new spending. cuts or new spending. today, and when we put all the taxes We should agree to lock up a substantial por- Mr. RANGEL. Mr. Speaker, I yield 1 together that the taxpayers pay, let us tion of the surpluses outside of the Social Se- minute to the gentleman from Arkan- reject this motion to instruct, and let curity trust fund to pay down national debt and sas (Mr. BERRY). us let the conferees go about their task deal with Social Security and Medicare before (Mr. BERRY asked and was given of conferencing this most important we start talking about how to carve up the sur- permission to revise and extend his re- bill and give the taxpayers some relief plus between tax cuts and new spending. How marks.) that they so richly deserve. can we talk about having surpluses to spend Mr. BERRY. Mr. Speaker, I rise Mr. RANGEL. Mr. Speaker, I yield when we still have a $5.6 trillion national debt today in support of the motion to in- the balance of my time to the gen- and huge unfunded liabilities facing Social Se- struct on the Republican tax cut bill. tleman from Wisconsin (Mr. KLECZKA) curity and Medicare? This motion will urge conferees to take to close the debate on the motion to in- The tax bills passed by the House and Sen- responsibility and commit to reducing struct the conferees. ate do not deal with these obligations and do the debt. I am for a tax cut. I think we Mr. KLECZKA. Mr. Speaker, I would not reduce the burden on future generations at all are. But not with funny money. We like to respond to some of the items all. Even if we stick with the lock box and save should be sure that we really have a that have been brought up in debate. the Social Security surplus, this will not reduce surplus before we commit to these tax Let me start out by saying I support the total national debtÐit just shifts the debt cuts, put the budget on a long-term the motion to instruct, and my Repub- from one part of the ledger to another. path, take the so-called surplus and lican colleagues know full well that H6808 CONGRESSIONAL RECORD — HOUSE August 2, 1999 after their tax bill is vetoed, we are ernment in taxes, Washington will just spend Meeks (NY) Pomeroy Stenholm Menendez Price (NC) Strickland going to be back to precisely what we it on more big government programs. Mr. Millender- Rahall Stupak are talking about today, a tax cut Speaker, it is time we let those who worked McDonald Rangel Tanner which would give back about 25 percent for the money spend it as they see fit. Miller, George Rivers Tauscher of the projected, projected surplus. I urge the President to reconsider his posi- Minge Rodriguez Taylor (MS) Mink Roemer Thompson (CA) My good friend from Florida talks tion against American taxpayers and support Moakley Rothman Thompson (MS) about funny money. The thing that is the Financial Freedom Act. Government Mollohan Roybal-Allard Thurman funny about the money is it is not here should do more for its citizens than raise their Moore Rush Tierney yet. I have heard this afternoon Mem- Moran (VA) Sabo Towns taxes and feed the federal bureaucracy. Murtha Sanchez Traficant bers come up and say, give it back, it The SPEAKER pro tempore (Mr. MIL- Nadler Sanders Turner is not easy to balance the budget, but LER of Florida). Without objection, the Napolitano Sandlin Udall (CO) we did it. My friends and colleagues, as previous question is ordered on the mo- Neal Sawyer Udall (NM) Oberstar Schakowsky Velazquez we close out this fiscal year, the budg- tion to instruct. Obey Scott Vento et is not in surplus, but in a $5 billion There was no objection. Olver Serrano Visclosky deficit, and for those who say, give it The SPEAKER pro tempore. The Ortiz Sherman Waters back, we do not have it. It is a projec- Owens Shows Watt (NC) question is on the motion to instruct Pallone Sisisky Waxman tion over the next 10 years based on offered by the gentleman from New Pascrell Skelton Weiner some very rosy assumptions, very low York (Mr. RANGEL). Pastor Slaughter Wexler inflation. One economic downturn, Mr. The question was taken; and the Payne Smith (WA) Weygand Pelosi Snyder Wise Speaker, and those dollars will not be Speaker pro tempore announced that Peterson (MN) Spratt Woolsey here. the noes appeared to have it. Phelps Stabenow Wu In fact, I said it before, and I will say Mr. RANGEL. Mr. Speaker, I object Pickett Stark Wynn it again. I have a better chance at win- to the vote on the ground that a NAYS—213 ning the lottery than this government quorum is not present and make the Aderholt Gilchrest Norwood having a trillion dollars surplus over point of order that a quorum is not Archer Gillmor Nussle the next 10 years. present. Armey Gilman Ose We have had unheralded economic Bachus Goode Oxley The SPEAKER pro tempore. Evi- Baker Goodlatte Packard success over the last 4 years. To think dently a quorum is not present. Ballenger Goodling Paul it is going to continue for 14 and then The Sergeant at Arms will notify ab- Barr Goss Pease for another 10 to make it 24 is totally sent Members. Barrett (NE) Graham Petri absurd. Bartlett Granger Pickering The Chair announces that pro- Barton Green (WI) Pitts The motion before us says, let us pay ceedings will resume immediately fol- Bass Greenwood Pombo down the debt. The gentleman says al- lowing this vote on two motions to sus- Bateman Gutknecht Porter ready we are paying down the debt. If Bereuter Hansen Portman pend the rules postponed from earlier Biggert Hastings (WA) Quinn the Congress will go home for 2 years, today. The first vote on the motion to Bilirakis Hayes Radanovich that debt would be paid down because suspend the rules and pass H.R. 747 will Bliley Hayworth Ramstad it is a double counting of the Social Se- be not less than 15 minutes in length, Blunt Hefley Regula curity surplus. Do not kid a kidder. Boehlert Herger Reynolds followed by a 5-minute vote on the mo- Boehner Hill (MT) Riley That is going to happen with or with- tion to suspend the rules and pass H.R. Bonilla Hilleary Rogan out the Congress doing anything. 1219. Bono Hobson Rogers Brady (TX) Hoekstra Rohrabacher But what we are saying in our mo- The vote was taken by electronic de- tion is let us take it down even further. Bryant Horn Ros-Lehtinen vice, and there were—yeas 205, nays Burr Hostettler Roukema It is in excess of $5 trillion. The Repub- 213, not voting 15, as follows: Burton Houghton Royce lican tax bill expands all the money Buyer Hulshof Ryan (WI) [Roll No. 356] and leaves no room for modernizing Callahan Hunter Ryun (KS) YEAS—205 Calvert Hutchinson Salmon Medicare. What happens to the extra Camp Hyde Sanford Ackerman DeFazio Jackson (IL) dollars that are there? We spend it on Campbell Isakson Saxton Allen DeGette Jackson-Lee Canady Istook Schaffer increase on the national debt. So to Andrews Delahunt (TX) Cannon Jenkins Sensenbrenner say that we are doing Social Security Baird DeLauro Jefferson Castle Johnson (CT) Sessions Baldacci Deutsch John and Medicare is totally false. Chabot Johnson, Sam Shadegg Baldwin Dicks Johnson, E. B. The bill will be vetoed. I ask my col- Chambliss Jones (NC) Shaw Barcia Dingell Jones (OH) Chenoweth Kasich Shays leagues to vote for the motion to re- Barrett (WI) Dixon Kanjorski Coble Kelly Sherwood Becerra Doggett Kaptur commit, vote for the motion to in- Coburn King (NY) Shimkus Bentsen Dooley Kennedy struct because in October that is ex- Collins Kingston Shuster Berkley Doyle Kildee Combest Knollenberg Simpson actly what we are going to do any way. Berman Edwards Kilpatrick Cook Kolbe Skeen Mr. PACKARD. Mr. Speaker, I would like to Berry Engel Kind (WI) Crane Kuykendall Smith (MI) Bishop Eshoo Kleczka express my extreme concern over the Presi- Cubin LaHood Smith (NJ) Blagojevich Etheridge Klink dent's threat to veto H.R. 2488, the Financial Cunningham Largent Smith (TX) Blumenauer Evans Kucinich Davis (VA) Latham Souder Freedom Act of 1999. This legislation offers Bonior Farr LaFalce Deal LaTourette Spence Borski Fattah Lampson nearly $800 billion in tax relief for America's DeLay Lazio Stearns Boswell Filner Larson families, including eliminating the death tax, DeMint Leach Stump Boucher Forbes Lee Diaz-Balart Lewis (CA) Sununu reducing the marriage penalty tax and capital Boyd Ford Levin Dickey Lewis (KY) Sweeney gains tax, a 10 percent across the board in- Brady (PA) Frost Lewis (GA) Doolittle Linder Talent Brown (FL) Gejdenson Lipinski come tax reduction for all Americans. Dreier LoBiondo Tancredo Brown (OH) Gephardt Lofgren The President opposes the Financial Free- Duncan Lucas (OK) Tauzin Capps Gonzalez Lowey Dunn Manzullo Terry dom Act because he claims this legislation Capuano Gordon Lucas (KY) Ehlers McCollum Thomas Cardin Green (TX) Luther does not secure Social Security. This is false. Ehrlich McCrery Thornberry Carson Gutierrez Maloney (CT) The fact is, H.R. 2688 leaves more than $2 Emerson McHugh Thune Clay Hall (OH) Maloney (NY) English McInnis Tiahrt trillion for Social Security and Debt Reduction, Clement Hall (TX) Markey Everett McKeon Toomey which exceeds the amount requested in the Clyburn Hastings (FL) Martinez Ewing Metcalf Upton Condit Hill (IN) Mascara President's own budget. Fletcher Mica Vitter Conyers Hilliard Matsui Mr. Speaker, tax relief is the right thing to Foley Miller (FL) Walden Costello Hinchey McCarthy (MO) Fossella Miller, Gary Walsh do. H.R. 2688 gives the surplus back to those Coyne Hinojosa McCarthy (NY) Fowler Moran (KS) Wamp who created it, the American taxpayer. Over Cramer Hoeffel McGovern Franks (NJ) Morella Watkins Crowley Holden McIntyre the next ten years, the government will receive Frelinghuysen Myrick Watts (OK) Cummings Holt McKinney an average $5,307 more in taxes from each Gallegly Nethercutt Weldon (FL) Danner Hooley McNulty Gekas Ney Weldon (PA) American family than it needs to operate. If Davis (FL) Hoyer Meehan Gibbons Northup Weller families continue to overpay the federal gov- Davis (IL) Inslee Meek (FL) August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6809 Whitfield Wilson Young (AK) Calvert Hall (OH) McNulty Simpson Tauscher Walsh Wicker Wolf Young (FL) Camp Hall (TX) Meehan Sisisky Tauzin Wamp Campbell Hansen Meek (FL) Skeen Taylor (MS) Waters NOT VOTING—15 Canady Hastings (FL) Meeks (NY) Skelton Terry Watkins Abercrombie Frank (MA) Peterson (PA) Cannon Hastings (WA) Menendez Slaughter Thomas Watt (NC) Bilbray Ganske Pryce (OH) Capps Hayes Mica Smith (MI) Thompson (CA) Watts (OK) Clayton Lantos Reyes Capuano Hayworth Millender- Smith (NJ) Thompson (MS) Waxman Cooksey McDermott Scarborough Cardin Hefley McDonald Smith (WA) Thornberry Weiner Cox McIntosh Taylor (NC) Carson Herger Miller (FL) Snyder Thune Weldon (PA) Castle Hill (IN) Miller, Gary Souder Thurman Weller b 1855 Chabot Hill (MT) Miller, George Spence Tiahrt Wexler Chambliss Hilleary Minge Spratt Tierney Weygand Messrs. TANCREDO, VITTER, and Chenoweth Hilliard Mink Stabenow Toomey Whitfield LAHOOD changed their vote from Clay Hinchey Moakley Stark Towns Wicker ‘‘yea’’ to ‘‘nay.’’ Clement Hinojosa Mollohan Stearns Traficant Wilson Clyburn Hobson Moore Stenholm Turner Wise So the motion to instruct conferees Coble Hoeffel Moran (KS) Strickland Udall (CO) Wolf was rejected. Coburn Hoekstra Moran (VA) Stump Udall (NM) Woolsey The result of the vote was announced Collins Holden Morella Stupak Upton Wu as above recorded. Combest Holt Murtha Sununu Velazquez Wynn Condit Hooley Myrick Sweeney Vento Young (AK) A motion to reconsider was laid on Conyers Horn Nadler Talent Visclosky Young (FL) the table. Cook Hostettler Napolitano Tancredo Vitter Stated against: Costello Houghton Neal Tanner Walden Coyne Hoyer Nethercutt Mr. MCINTOSH. Mr. Speaker, on rollcall No. NOT VOTING—17 Cramer Hulshof Ney 356, I was detained at the airport. Had I been Crane Hunter Northup Abercrombie Gephardt Reyes present, I would have voted ``no.'' Crowley Hutchinson Norwood Bilbray Lantos Scarborough Clayton McDermott Smith (TX) The SPEAKER pro tempore (Mr. CAL- Cubin Hyde Nussle Cummings Inslee Oberstar Cooksey Metcalf Taylor (NC) VERT). The Chair will announce con- Cunningham Isakson Obey Cox Peterson (PA) Weldon (FL) ferees at a later date. Danner Istook Olver Frank (MA) Pryce (OH) f Davis (FL) Jackson (IL) Ortiz b Davis (IL) Jackson-Lee Ose 1912 Davis (VA) (TX) Owens Mr. THOMAS changed his vote from ANNOUNCEMENT BY THE SPEAKER Deal Jefferson Oxley PRO TEMPORE DeFazio Jenkins Packard ‘‘nay’’ to ‘‘yea.’’ So (two-thirds having voted in favor The SPEAKER pro tempore. Pursu- DeGette John Pallone Delahunt Johnson (CT) Pascrell thereof) the rules were suspended and ant to clause 8, rule XX, the Chair will DeLauro Johnson, E. B. Pastor the bill was passed. now put the question on each motion DeLay Johnson, Sam Paul The result of the vote was announced to suspend the rules on which further DeMint Jones (NC) Payne Deutsch Jones (OH) Pease as above recorded. proceedings were postponed earlier Diaz-Balart Kanjorski Pelosi A motion to reconsider was laid on today in the order in which that mo- Dickey Kaptur Peterson (MN) the table. tion was entertained. Dicks Kasich Petri Votes will be taken in the following Dingell Kelly Phelps f Dixon Kennedy Pickering order: Doggett Kildee Pickett ANNOUNCEMENT BY THE SPEAKER H.R. 747, by the yeas and nays; and Dooley Kilpatrick Pitts PRO TEMPORE H.R. 1219 by the yeas and nays. Doolittle Kind (WI) Pombo The Chair will reduce to 5 minutes Doyle King (NY) Pomeroy The SPEAKER pro tempore. Pursu- Dreier Kingston Porter ant to the provisions of clause 8 of rule the time for the electronic vote on the Duncan Kleczka Portman second motion to suspend the rules. Dunn Klink Price (NC) XX, the Chair announces that he will Edwards Knollenberg Quinn reduce to a minimum of 5 minutes the f Ehlers Kolbe Radanovich period of time within which a vote by Ehrlich Kucinich Rahall ARIZONA STATEHOOD AND ENA- Emerson Kuykendall Ramstad electronic device may be taken on each BLING ACT AMENDMENTS OF 1999 Engel LaFalce Rangel additional motion to suspend the rules English LaHood Regula on which the Chair has postponed fur- The SPEAKER pro tempore. The Eshoo Lampson Reynolds ther proceedings. pending business is the question of sus- Etheridge Largent Riley Evans Larson Rivers f pending the rules and passing the bill, Everett Latham Rodriguez H.R. 747. Ewing LaTourette Roemer CONSTRUCTION INDUSTRY PAY- The Clerk read the title of the bill. Farr Lazio Rogan MENT PROTECTION ACT OF 1999 The SPEAKER pro tempore. The Fattah Leach Rogers Filner Lee Rohrabacher question is on the motion offered by The SPEAKER pro tempore. The Fletcher Levin Ros-Lehtinen pending business is the question of sus- the gentleman from New Jersey (Mr. Foley Lewis (CA) Rothman pending the rules and passing the bill, SAXTON) that the House suspend the Forbes Lewis (GA) Roukema Ford Lewis (KY) Roybal-Allard H.R. 1219, as amended. rules and pass the bill, H.R. 747, on Fossella Linder Royce which the yeas and nays are ordered. The Clerk read the title of the bill. Fowler Lipinski Rush The SPEAKER pro tempore. The The vote was taken by electronic de- Franks (NJ) LoBiondo Ryan (WI) vice, and there were—yeas 416, nays 0, Frelinghuysen Lofgren Ryun (KS) question is on the motion of the gen- Frost Lowey Sabo not voting 17, as follows: tleman from California (Mr. HORN) that Gallegly Lucas (KY) Salmon the House suspend the rules and pass [Roll No. 357] Ganske Lucas (OK) Sanchez Gejdenson Luther Sanders the bill, H.R. 1219, as amended, on YEAS—416 Gekas Maloney (CT) Sandlin which the yeas and nays are ordered. Ackerman Barton Boehner Gibbons Maloney (NY) Sanford This will be a 5-minute vote. Aderholt Bass Bonilla Gilchrest Manzullo Sawyer Allen Bateman Bonior Gillmor Markey Saxton The vote was taken by electronic de- Andrews Becerra Bono Gilman Martinez Schaffer vice, and there were—yeas 416, nays 0, Archer Bentsen Borski Gonzalez Mascara Schakowsky not voting 17, as follows: Armey Bereuter Boswell Goode Matsui Scott Bachus Berkley Boucher Goodlatte McCarthy (MO) Sensenbrenner [Roll No. 358] Baird Berman Boyd Goodling McCarthy (NY) Serrano YEAS—416 Baker Berry Brady (PA) Gordon McCollum Sessions Ackerman Baker Bartlett Baldacci Biggert Brady (TX) Goss McCrery Shadegg Aderholt Baldacci Barton Baldwin Bilirakis Brown (FL) Graham McGovern Shaw Allen Baldwin Bass Ballenger Bishop Brown (OH) Granger McHugh Shays Andrews Ballenger Bateman Barcia Blagojevich Bryant Green (TX) McInnis Sherman Archer Barcia Becerra Barr Bliley Burr Green (WI) McIntosh Sherwood Armey Barr Bentsen Barrett (NE) Blumenauer Burton Greenwood McIntyre Shimkus Bachus Barrett (NE) Bereuter Barrett (WI) Blunt Buyer Gutierrez McKeon Shows Baird Barrett (WI) Berkley Bartlett Boehlert Callahan Gutknecht McKinney Shuster H6810 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Berman Ford Linder Rush Smith (WA) Udall (CO) cating liquor, which was referred to the Berry Fossella Lipinski Ryan (WI) Snyder Udall (NM) House Calendar and ordered to be Biggert Fowler LoBiondo Ryun (KS) Souder Upton Bilirakis Franks (NJ) Lofgren Sabo Spence Velazquez printed. Bishop Frelinghuysen Lowey Salmon Spratt Vento f Blagojevich Frost Lucas (KY) Sanchez Stabenow Visclosky Bliley Gallegly Lucas (OK) Sanders Stark Vitter ANNOUNCEMENT REGARDING Blumenauer Ganske Luther Sandlin Stearns Walden AMENDMENT PROCESS FOR H.R. Blunt Gejdenson Maloney (CT) Sanford Stenholm Walsh 417, BIPARTISAN CAMPAIGN FI- Boehlert Gekas Maloney (NY) Sawyer Strickland Wamp Boehner Gibbons Manzullo Saxton Stump Waters NANCE REFORM ACT OF 1999 Bonilla Gilchrest Markey Schaffer Stupak Watkins Mr. REYNOLDS. Mr. Speaker, a Bonior Gillmor Martinez Schakowsky Sununu Watt (NC) Bono Gilman Mascara Scott Sweeney Watts (OK) ‘‘Dear Colleague’’ letter will be sent to Borski Gonzalez Matsui Sensenbrenner Talent Waxman all Members informing them that the Boswell Goode McCarthy (MO) Serrano Tancredo Weiner Committee on Rules is planning to Boucher Goodlatte McCarthy (NY) Sessions Tanner Weldon (FL) meet this week to grant a rule which Boyd Goodling McCollum Shadegg Tauscher Weldon (PA) Brady (PA) Gordon McCrery Shaw Tauzin Weller may limit the amendment process for Brady (TX) Goss McGovern Shays Taylor (MS) Wexler floor consideration of H.R. 417, the Bi- Brown (FL) Graham McHugh Sherman Terry Weygand partisan Campaign Finance Reform Brown (OH) Granger McInnis Sherwood Thomas Whitfield Shimkus Thompson (CA) Wicker Act of 1999. Bryant Green (TX) McIntosh The Committee on House Adminis- Burr Green (WI) McIntyre Shows Thompson (MS) Wilson Burton Greenwood McKeon Shuster Thornberry Wise tration ordered H.R. 417 reported this Buyer Gutierrez McKinney Simpson Thune Wolf evening, and is expected to file its com- Callahan Gutknecht McNulty Sisisky Thurman Woolsey mittee report on Wednesday, August 4. Skeen Tiahrt Wu Calvert Hall (OH) Meehan Any Member wishing to offer an Camp Hall (TX) Meek (FL) Skelton Tierney Wynn Campbell Hansen Meeks (NY) Slaughter Toomey Young (AK) amendment should submit 55 copies Canady Hastings (FL) Menendez Smith (MI) Towns Young (FL) and a brief explanation of the amend- Smith (NJ) Traficant Cannon Hayes Metcalf ment to the Committee on Rules in Smith (TX) Turner Capps Hayworth Mica room H–312 of the Capitol by 4 p.m. on Capuano Hefley Millender- NOT VOTING—17 Wednesday, August 4. Amendments Cardin Herger McDonald Carson Hill (IN) Miller (FL) Abercrombie Gephardt Peterson (PA) should be drafted to the bill as ordered Castle Hill (MT) Miller, Gary Bilbray Hastings (WA) Pryce (OH) reported by the Committee on House Chabot Hilleary Miller, George Clayton Lantos Reyes Cooksey McDermott Scarborough Administration. Copies of the bill may Chambliss Hilliard Minge be obtained from the Committee on Chenoweth Hinchey Mink Cox Moran (VA) Taylor (NC) Clay Hinojosa Moakley Frank (MA) Ney House Administration, and is also ex- Clement Hobson Mollohan b 1922 pected to be posted on that commit- Clyburn Hoeffel Moore tee’s web site. Coble Hoekstra Moran (KS) So (two-thirds having voted in favor Members should use the Office of Coburn Holden Morella thereof) the rules were suspended and Collins Holt Murtha Legislative Counsel to ensure that Combest Hooley Myrick the bill, as amended, was passed. their amendments are properly drafted, Condit Horn Nadler The result of the vote was announced and should check with the Office of the Conyers Hostettler Napolitano as above recorded. Parliamentarian to be certain their Cook Houghton Neal The title of the bill was amended so amendments comply with the rules of Costello Hoyer Nethercutt Coyne Hulshof Northup as to read: the House. Cramer Hunter Norwood A bill to amend the Miller Act, relating to f Crane Hutchinson Nussle payment protections for persons providing Crowley Hyde Oberstar labor and materials for Federal construction GENERAL LEAVE Cubin Inslee Obey projects. Cummings Isakson Olver Mr. CALLAHAN. Mr. Speaker, I ask Cunningham Istook Ortiz A motion to reconsider was laid on unanimous consent that all Members Danner Jackson (IL) Ose the table. may have 5 legislative days within Davis (FL) Jackson-Lee Owens which to revise and extend their re- Davis (IL) (TX) Oxley f Davis (VA) Jefferson Packard marks on further consideration of the Deal Jenkins Pallone REPORT ON RESOLUTION PRO- bill (H.R. 2206), making appropriations DeFazio John Pascrell VIDING FOR CONSIDERATION OF for foreign operations, export financ- DeGette Johnson (CT) Pastor H.R. 987, WORKPLACE PRESERVA- ing, and related programs for the fiscal Delahunt Johnson, E. B. Paul DeLauro Johnson, Sam Payne TION ACT year ending September 30, 2000, and for DeLay Jones (NC) Pease Mr. REYNOLDS, from the Com- other purposes. DeMint Jones (OH) Pelosi mittee on Rules, submitted a privi- The SPEAKER pro tempore (Mr. CAL- Deutsch Kanjorski Peterson (MN) VERT). Is there objection to the request Diaz-Balart Kaptur Petri leged report (Rept. No. 106–280) on the Dickey Kasich Phelps resolution (H. Res. 271) providing for of the gentleman from Alabama? Dicks Kelly Pickering consideration of the bill (H.R. 987) to There was no objection. Dingell Kennedy Pickett f Dixon Kildee Pitts require the Secretary of Labor to wait Doggett Kilpatrick Pombo for completion of a National Academy REQUEST FOR CONSIDERATION OF Dooley Kind (WI) Pomeroy of Sciences study before promulgating S. 1457 Doolittle King (NY) Porter a standard or guideline on ergonomics, Doyle Kingston Portman Mr. SHUSTER. Mr. Speaker, I ask Dreier Kleczka Price (NC) which was referred to the House Cal- unanimous consent to take from the Duncan Klink Quinn endar and ordered to be printed. Speaker’s table the bill (S. 1457) and Dunn Knollenberg Radanovich f Edwards Kolbe Rahall ask for its immediate consideration in Ehlers Kucinich Ramstad REPORT ON RESOLUTION PRO- the House. Ehrlich Kuykendall Rangel VIDING FOR CONSIDERATION OF Mr. OBEY. Mr. Speaker, I object. Emerson LaFalce Regula The SPEAKER pro tempore. The Engel LaHood Reynolds H.R. 2031, TWENTY-FIRST AMEND- English Lampson Riley MENT ENFORCEMENT ACT Chair is not able to entertain the gen- Eshoo Largent Rivers tleman’s request at this time. Etheridge Larson Rodriguez Mr. REYNOLDS, from the Com- Mr. SHUSTER. Mr. Speaker, the gen- Evans Latham Roemer mittee on rules, submitted a privileged tleman from Minnesota (Mr. OBER- Everett LaTourette Rogan Ewing Lazio Rogers report (Rept. No. 106–281) on the resolu- STAR), I understand, is reserving the Farr Leach Rohrabacher tion (H. Res. 272) providing for consid- right to object. Fattah Lee Ros-Lehtinen eration of the bill (H.r. 2031) to provide The SPEAKER pro tempore. The gen- Filner Levin Rothman for injunctive relief in Federal district tleman from Pennsylvania (Mr. SHU- Fletcher Lewis (CA) Roukema Foley Lewis (GA) Roybal-Allard court to enforce State laws relating to STER) is not recognized for that pur- Forbes Lewis (KY) Royce the interstate transportation of intoxi- pose. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6811 Mr. SHUSTER. May I ask why the The CHAIRMAN. The Clerk will des- We will hear that somehow or an- gentleman is objecting? Is it in order, ignate the amendment. other this is unilateral disarmament in Mr. Speaker, for me to ask why the The text of the amendment is as fol- the war on trade. It is nothing of the gentleman is objecting? lows: sort. It is the recognition that the real The SPEAKER pro tempore. Under Amendment No. 6 offered by Mr. ANDREWS: engine of international growth for the the Speaker’s guidelines, the Chair is Page 116, after line 5, insert the following: U.S. economy is not the taxpayers’ not recognizing the gentleman from PROHIBITION ON FUNDS FOR NEW OPIC PROJECTS pockets, but the entrepreneurs taking Pennsylvania for that purpose at this SEC. 585. None of the funds made available a risk. time. by this Act may be used by the Overseas Pri- This is one of the few amendments I f vate Investment Corporation, after the en- have ever seen that is supported by actment of this Act, for the issuance of any APPOINTMENT OF CONFEREES ON new guarantee, insurance, reinsurance, or fi- Ralph Nader and Milton Freedman. H.R. 2488, FINANCIAL FREEDOM nancing, or for initiating any other activity And that is probably all people need to ACT OF 1999 which the Corporation is otherwise author- know about why they should support ized to undertake. it. The SPEAKER pro tempore. Without The CHAIRMAN. Pursuant to the Mr. Chairman, I reserve the balance objection, the Chair announces the previous order of the House, the gen- of my time. Speaker’s appointment of the following tleman from New Jersey (Mr. AN- Ms. PELOSI. Mr. Chairman, I ask conferees on the bill (H.R. 2488) to pro- DREWS) and a Member opposed each unanimous consent to yield the 71⁄2 vide for reconciliation pursuant to sec- will control 15 minutes. minutes that has been yielded to me to tions 105 and 211 of the concurrent reso- Does the gentleman from Alabama the gentleman from New Jersey (Mr. lution on the budget for fiscal year (Mr. CALLAHAN) seek to control the MENENDEZ) and that he be allowed to 2000: time in opposition? control that time. For consideration of the House bill, Mr. CALLAHAN. Yes, I do, Mr. Chair- The CHAIRMAN. Is there objection and the Senate amendment, and modi- man. fications committed to conference: to the request of the gentlewoman Mr. Chairman, I ask unanimous con- from California? Messrs. ARCHER, ARMEY, CRANE, sent that my time be halved with the There was no objection. THOMAS, RANGEL, and STARK. gentlewoman from California (Ms. The CHAIRMAN. The gentleman As additional conferees for consider- PELOSI), and that she be given the au- from New Jersey (Mr. MENENDEZ) will ation of sections 313, 315–316, 318, 325, thority to yield the time for her 71⁄2 1 335, 338, 341–42, 344–45, 351, 362–63, 365, minutes. control the 7 ⁄2 minutes. 369, 371, 381, 1261, 1305, and 1406 of the The CHAIRMAN. Is there objection Mr. MENENDEZ. Mr. Chairman, I Senate amendment, and modifications to the request of the gentleman from yield 1 minute to the gentleman from committed to conference: Alabama? New York (Mr. RANGEL), the distin- Messrs. GOODLING, BOEHNER, and There was no objection. guished ranking Democrat on the Com- CLAY. The CHAIRMAN. The gentleman mittee on Ways and Means. There was no objection. from New Jersey (Mr. ANDREWS) is rec- (Mr. RANGEL asked and was given f ognized for 15 minutes. permission to revise and extend his re- Mr. ANDREWS. Mr. Chairman, I marks.) FOREIGN OPERATIONS, EXPORT yield myself such time as I may con- FINANCING, AND RELATED PRO- Mr. RANGEL. Mr. Chairman, I op- sume. pose this amendment. It really puts a GRAMS APPROPRIATIONS ACT, Mr. Chairman, in 1996, this House 2000 damper on American entrepreneurship voted to end welfare as we know it for as we try to transfer technology to the The SPEAKER pro tempore. Pursu- single moms and for people struggling least developed countries that we have ant to House Resolution 263 and rule to raise families across America. This in the world. XVIII, the Chair declares the House in amendment says that it is time for us Recently, this House passed the Afri- the Committee of the Whole House on to end corporate welfare as we know it. can Growth and Opportunity bill. It the State of the Union for the further The amendment says that the Over- was not just out of compassion that we consideration of the bill, H.R. 2606. seas Private Investment Corporation, did it, but we wanted to make certain OPIC, will be precluded from initiating b 1929 that we have people that are able to be new deals, new transactions, with the able to be productive, to have dispos- IN THE COMMITTEE OF THE WHOLE money that is in this underlying bill. It able income, to have jobs, to have dig- Accordingly, the House resolved says that DuPont and General Electric, nity, and not to be looking for welfare itself into the Committee of the Whole and McDonald’s, and some of the larg- and to be looking for foreign assist- House on the State of the Union for the est corporations in the world, ought to ance. further consideration of the bill (H.R. risk their capital in risky inter- What OPIC does is encourage private 2606) making appropriations for foreign national investments, not the capital investment to have partnerships so operations, export financing, and re- of the American taxpayers. lated programs for the fiscal year end- Now, I have had the opportunity to that we are able to say that all over ing September 30, 2000, and for other outline my views previously on Thurs- the world, especially in developing na- tions, that our great Republic will be purposes, with Mr. THORNBERRY in the day night, but I want to quickly sum- chair. marize them before yielding to sup- able to have meaningful commercial trade relations. b 1930 porters of my amendment. We will no doubt hear that this will I have been to Africa. I have been The Clerk read the title of the bill. cause chaos at OPIC. It will not. This there with Eximbank. I have been The CHAIRMAN. When the Com- amendment does not interfere with the there with OPIC. I have been there mittee of the Whole rose on Thursday, ongoing operation and the wind-down with the State Department. Believe July 29, 1999, amendment No. 3 printed of the entity. It simply says that funds me, OPIC really encourages foreign in- in part B of House Report 106–269 by should be used to effectuate that wind- vestment, and we need it now more the gentleman from Pennsylvania (Mr. down rather than to initiate new deals. than ever. PITTS) had been disposed of. We will hear that this will have a Mr. CALLAHAN. Mr. Chairman, I Under the order of the House of that devastating effect on U.S. investment yield 2 minutes to the gentleman from day, it is now in order to consider overseas. Frankly, the huge majority, Nebraska (Mr. BEREUTER), the chair- amendment No. 6 printed in the CON- the immense majority of private in- man of the Subcommittee on Asia and GRESSIONAL RECORD by the gentleman vestments by U.S. corporations over- the Pacific of the Committee on Inter- from New Jersey (Mr. ANDREWS). seas have nothing to do with OPIC. national Relations. AMENDMENT NO. 6 OFFERED BY MR. ANDREWS They have to do with the judgments of (Mr. BEREUTER asked and was Mr. ANDREWS. Mr. Chairman, I offer entrepreneurs and investors in the given permission to revise and extend an amendment. global market every day. his remarks.) H6812 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Mr. BEREUTER. Mr. Chairman, I of those exports are to be from over 150 and am, indeed, a cosponsor on this rise in strong opposition to the amend- American small businesses. amendment because it makes sense to ment. While the amendment might OPIC has proven itself to be a successful the United States taxpayer. make for catchy so-called cost-cutting supporter of American foreign policy. OPIC This amendment is not about the in- sound bites, in reality it would signifi- mobilizes private sector investment in support efficiency of OPIC. As government or- cantly hurt U.S. foreign policy, result of U.S. foreign policy at no cost to the Amer- ganizations go, it is quite efficient. It in a revenue loss for the Federal Gov- ican taxpayer. The Andrews amendment is not about the management. It has a ernment, and cost American jobs and would mean no support for U.S. investment in good management. I have met with American export opportunities. This high priority foreign policy areas. It would George Munoz, who is head of OPIC. amendment has only costs, in my judg- eliminate an estimated $9 billion in increased The issue that this amendment gets to ment, and no benefits. trade and investment with Sub-Saharan Africa, is not is OPIC able to handle the man- First, contrary to some things that $4 billion in Central America and the Carib- date that it has been given, but rather have been said, OPIC has contributed bean, and $8 billion for development of Cas- is that mandate in the best interest of $3.3 billion to deficit reduction and the pian Sea energy resources. the United States taxpayer. And I Function 1050 account. In fiscal year Since 1971, OPIC supported projects which think if we look under the hood on 2000, OPIC anticipates it will con- have resulted in the export of $58 billion of this, we would come to the conclusion tribute approximately $200 million to American products. More than $2.8 billion in that no is the answer. deficit reduction. OPIC is self-sus- American exports were generated by OPIC First, Mr. Chairman, there is a finan- taining and generates an annual in- supported projects in 1998 alone. cial risk to the U.S. taxpayer with crease in funding. If OPIC were elimi- With respect to the Andrews-Sand- OPIC. OPIC was given a billion dollars nated, the budget would lose revenues ers-Sanford amendment, I would have of seed money in 1971 when OPIC was rather than achieve savings. In fact, to say that it hurts American competi- begun, and yet if we look, since 1971 this amendment would put the Federal tiveness and benefits our foreign com- there has not been, for instance, a Government $200 million in the red for petitors. Most of our developing na- world war. These loans or guarantees just the next year. tions, like France, Germany and are backed with the full faith and cred- Since OPIC's operating costs are covered Japan, offer a comprehensive array of it of the United States Government. If by user fees, eliminating OPIC does not mean export and overseas investment sup- there was a war, we would see the cost these resources are available for other pro- port. They clearly understand the im- to those guarantees. There has not grams or can be considered as cut spending. portance of such programs in sup- been a global depression since 1971. If There are no millions of dollars in savings as porting jobs and economic growth at there was a severe economic downturn, claimed by the amendment's supporters, just home. The U.S. spends less per capita, we would see the cost to those guaran- lost jobs and export opportunities without any as a percentage of GDP, and in dollar tees. offsetting benefit. terms on supporting private sector in- In fact, if we look in Brazil, where OPIC supports new, high-paying, export-ori- vestment in developing countries than there is $1.9 billion of taxpayer expo- ented jobs in the United States. More than any other major competitor country. sure, OPIC itself has said that fully 237,000 jobs have been created as a result of Mr. Chairman, the support OPIC pro- half of their portfolio could be affected OPIC-supported projects. In 1998 alone, near- vides is not corporate welfare and has by the crisis there. The same could be ly 7,000 U.S. jobs were created by OPIC not eliminated American jobs as the said, for instance, in Russia. So, one, projects. Without OPIC, it is estimated that ‘‘Dear Colleague’’ letter circulated re- there is a contingent liability that goes 70,000 job opportunities could be lost in the cently complained. Caterpillar was back to the United States taxpayer. next 4 years. cited. It makes tractors in Illinois, and Two, there is a direct cost. To those who express concern about OPIC that is the epitome in Peoria of an With the money that was originally supported investment abroad luring jobs away American city. The Member, I suspect, provided, interest is earned on that from America to foreign countries, this Mem- would be surprised to find among the money. And if we look at the income ber recommends they examine closely what Caterpillar workers any of them who statement of last year, $139 million was kind of investments OPIC is supporting and believe they are fat cats. the net income and $193 million came what kind of so-called foreign jobs are being These are hard-working Americans. OPIC as a result of these interest payments. created. The United States cannot supply raw helps promote the sale of the tractors they That leaves a loss of $54 million. electric power to Egypt. We can supply Amer- make at no cost to the American taxpayer. Admittedly, $54 million is not a lot of ican-made power generating equipment and Given the significant support foreign competi- money in Washington, but back home services. How is selling power generating tors receive from their governments, without that is a lot of money. In fact, I did a equipment and years of spare parts and serv- OPIC, America's Caterpillar is in many in- back-of-the-envelope calculation, and ices taking jobs away from Americans? If we stances at a real disadvantage to Japan's it would take 13,500 taxpayers, average don't sell the Egyptians these power plants, Komatsu or Korea's Hyundai. Let us not ig- taxpayers, working and paying taxes the Europeans, Japanese, Canadians, or other nore the consequencesÐultimately, this for a full year, to send Washington $54 foreigners will. Amendment benefits foreign competitors like million. The United States does not grow tea. Komatsu at the expense of American workers Third consideration is that it does Therefore, how does investing in a tea planta- in all 50 states. cost American jobs. And that is not my tion in Rwanda steal American jobs? Indeed, Mr. Chairman, in response to the charges opinion or the opinion of the gen- it supports U.S. jobs insofar as that tea oper- by some OPIC critics that OPIC is not even tleman from New Jersey (Mr. AN- ation needs tools, machines, trucks and other authorized, this Member would remind his col- DREWS). That is the opinion of Time servicesÐand these are products and serv- leagues that the House International Relations magazine. They did a three-part series ices made by American labor. Committee, the appropriate authorizing body, on corporate welfare. What they found The United States is not home to the great has already considered and marked up a new was, for instance, a $29 million loan African savannah and giraffes, lions, zebras, reauthorization for OPIC. This legislation is guarantee for Levi Strauss and Com- and baboons are not native wildlife. Therefore, pending on the Union Calendar. pany to build a manufacturing plant in how does supporting the eco-tourism industry Mr. Chairman, I urge opposition to Turkey, while, at the same time, the in Botswana by investing in new hotels and the Andrews amendment. Labor Department was handing out un- tour operations take away American jobs? On Mr. ANDREWS. Mr. Chairman, I employment and training benefits for the contrary, this development requires all yield 4 minutes to the gentleman from 6,400 American workers who had been kinds of infrastructure, construction materials, South Carolina (Mr. SANFORD), one of laid off in 11 American plants with Levi furnishings, vehicles, and servicesÐthese the co-authors of this amendment and Strauss and Company. The point of goods and services Americans produce and a person who has been very diligent that article was saying that the two sell. about cutting costs for the American were directly correlated. OPIC-backed projects around the world are public. Finally, I would just make mention U.S. small businesses. Over the next 4 years Mr. SANFORD. Mr. Chairman, I of the fact that this changes markets. it is estimated that OPIC projects will generate thank the gentleman for yielding me If we change a market, we change $23 billion more in America exports. $6 billion this time. I support this amendment where an investment can be made. And August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6813 so what we are doing is subsidizing de- b 1945 I hear our friend say that OPIC velopment off our coast. And as well, Mr. MANZULLO. Mr. Chairman, we makes money, OPIC makes money. what we are doing is preventing a mar- have OPIC because there is no private Well, if OPIC makes money, then ketplace from developing with other sector that can fill that gap. Lloyds of maybe we better think about govern- insurers. London, nobody could come in and fill ment insurance in other areas. And I This is a need that needs to take that gap. would yield right now to any person place, but it could be easily handled by In fact, OPIC has been partnering who is opposing the Andrews amend- the Lloyds of London, who are not in with Lloyds of London on being able to ment to tell us that they are prepared this business right now because OPIC come up to a relationship whereby part to support government insurance for is. of this type of insurance can be homeowners, government insurance for Mr. MENENDEZ. Mr. Chairman, I automobile people who need auto- 1 privatized. The reason we need OPIC is yield myself 2 ⁄4 minutes. so that we can be on an even keel with mobile insurance. First, let me thank the distinguished our exporting partners around the Are they in favor of that, Mr. Chair- gentlewoman from California (Ms. world. man? Not. I ask the gentleman from PELOSI), the ranking member of the Mr. ANDREWS. Mr. Chairman, I am New Jersey (Mr. MENENDEZ). committee, for yielding me this time. Only government insurance for the I join my colleague the gentleman pleased to yield 4 minutes to the gen- tleman from Vermont (Mr. SANDERS), large multinational corporations. Let from New Jersey (Mr. ANDREWS) in say- ing that I am against corporate wel- one of the coauthors of the amendment us stop corporate welfare. Let us sup- fare, but this, the subject of his amend- with a leading voice for progressive port the Andrews amendment. ment, is not about corporate welfare. It issues in America. Mr. MENENDEZ. Mr. Chairman, I Mr. SANDERS. Mr. Chairman, I is hard to understand how anyone can yield 1 minute to the distinguished thank the gentleman for yielding me object to a program that returns gentleman from Connecticut (Mr. money to the U.S. Treasury while at the time. GEJDENSON), ranking Democrat of the Mr. Chairman, I strongly support the same time furthering our foreign Committee on International Relations. this amendment, which would strike a policy goals and helping to increase Mr. GEJDENSON. Mr. Chairman, I good blow against the $125 billion a foreign investments and exports over- would join my friend from Vermont year we are currently spending on cor- seas. (Mr. SANDERS) in having universal Last year, OPIC earned a profit of porate welfare. health coverage, but that is not the de- My, this is a strange debate. I am $139 million. And in fiscal year 2000, bate today. The debate today is wheth- hearing conservative Republicans tell OPIC will contribute an estimated $204 er this program helps or hurts Ameri- million in net negative budget author- us they believe in government insur- cans and American workers. ity. In fact, OPIC has had a positive ance. This is what it is. I would argue that $52 billion in ex- Now, it is interesting, however. This net income for every year of operation ports that OPIC facilitated helps Amer- is not government insurance for mid- with reserves now totaling $3.3 billion. ican workers, that almost $3 billion in All that we do through the appropria- dle-class homeowners. This is not gov- the U.S. the Treasury in fees from tion process is to allow OPIC to spend ernment insurance for those people these corporations, not welfare, but money that it has already earned to who are paying outrageous premiums charges to these corporations giving us cover its administrative costs. We do for automobile insurance. No, no, no. profits in every year that OPIC has op- not save money for the taxpayers by We do not get government insurance erated in, $20 million in 1970, in excess cutting OPIC’s appropriations. In fact, for that. of $200 million in 1997, and even during But if they are J.P. Morgan, they can quite to the contrary. By supporting the Asian financial crisis $138 million, get government insurance for a $200 this amendment, we will forfeit an esti- and anticipated back over to $200 mil- mated over $200 million in net budget million investment in an oil field in Angola. If they are Texaco, they get lion next year. authority for the next fiscal year. What this does is help American jobs, government insurance for $139 million At a time when Congress is trying to helps us export manufacturing, helps for investment of a power generating adhere to the constraints of a balanced America’s international national for- budget, OPIC stands apart as a rev- project in the Philippines. If they are the Chase Manhattan Bank, they get eign policy get executed. It is cheaper enue-earning program. And at a time than a Marshall Plan and it helps that we are facing record high trade socialized insurance. Here we have conservative Repub- American jobs. deficits, we need to be looking at ways The gentlemen who are opposing this to expand our export promotion pro- licans, corporate Democrats telling us government insurance for the multi- amendment have good intentions, but grams, not contract them. they are dead wrong. More American exports mean more nationals. I think that that is pretty strange. Mr. CALLAHAN. Mr. Chairman, I American jobs. More than 237,000 yield 1 minute to the gentleman from American jobs have been created as a Mr. Chairman, it seems to me that New York (Mr. GILMAN), chairman of result of OPIC’s supported projects. In we should note that in Indonesia right the Committee on International Rela- our home State of New Jersey, OPIC now OPIC officials are in that country, tions. has provided over $1 billion in financ- and they are in that country because (Mr. GILMAN asked and was given ing and insurance, generating $3 billion the government there is suggesting permission to revise and extend his re- in U.S. exports and creating over 10,000 that an American-backed company marks.) jobs. may not be able to make as much We should not be so shortsighted. We money as they wanted; and if that in Mr. GILMAN. Mr. Chairman, I thank live in a global economy and only those fact takes place, it is going to be the the gentleman for yielding me the who can compete will succeed. This is American taxpayer through OPIC that time. not corporate welfare. OPIC is one of bails out that particular company that Mr. Chairman, I rise in strong opposi- the ways that we ensure that American invested in Suharto’s dictatorship. tion to the amendment offered by the companies and American jobs thrive in Mr. Chairman, another disturbing as- gentleman from New Jersey prohib- the next century. We cannot afford to pect of this situation is that the United iting OPIC from supporting any new in- be so naive as to believe that American States Government is providing finan- vestment projects. companies, large and small, can com- cial incentives to the largest corpora- This amendment would not only pete without this type of support when tions in this country to invest abroad. close down any future OPIC invest- their competitors have the full eco- Now, some of us think that it would ments in Africa, but it would eliminate nomic and diplomatic support of their be a very good idea for these corpora- billions of dollars of OPIC-related hur- governments. tions that are investing tens of billions ricane assistance for Central America Mr. Chairman, I urge my colleagues of dollars abroad to maybe bring that and the Caribbean. The adoption of this to oppose the Andrews amendment. investment back to the State of amendment would prevent billions of Mr. CALLAHAN. Mr. Chairman, I Vermont and other States around this dollars of future U.S. exports from ever yield 30 seconds to the gentleman from country to put our people to work at taking place. Thousands of jobs now Illinois (Mr. MANZULLO). decent paying jobs. held by American workers would be H6814 CONGRESSIONAL RECORD — HOUSE August 2, 1999 lost, and millions of dollars in tax rev- did we lose those jobs, but the Labor We pay interest on that $3 billion. And enue would be unavailable to our Department had to go in, and let me this agency gets $194 million from it, States and local communities. tell my colleagues what they had to do. four times the amount of the requested Since its inception in 1971, OPIC gen- They had to provide unemployment as- appropriation. erated over $58 billion in U.S. exports, sistance, and they also had to provide No wonder on paper it looks profit- created more than 237,000 jobs. It oper- trade adjustment assistance because of able. And they say, well, the private ates on a self-sustaining basis and ac- the Levi Strauss factory which had companies will not insure some of tually provides funding authority to been built in Turkey, financed by these projects. That means it is prob- pay for the humanitarian development OPIC. ably risky. Why should the taxpayer and anti-narcotics programs contained I strongly urge support of this assume the risk? Why should these cor- in the legislation we are now debating. amendment. porations be protected with this cor- Accordingly, I urge my colleagues to Mr. CALLAHAN. Mr. Chairman, I am porate welfare? oppose the Andrews amendment. pleased to yield 2 minutes to the gen- This is the reason why jobs are ex- Mr. ANDREWS. Mr. Chairman, I tleman from Missouri (Mr. BLUNT), the ported at a cost to the American tax- yield 3 minutes to my friend, the gen- chief deputy whip. payer. It is bad economics. And it is a tleman from Alabama (Mr. BACHUS). Mr. BLUNT. Mr. Chairman, I thank lot of twisting of the facts if we call Mr. KASICH. Mr. Chairman, will the the gentleman for yielding me the this agency profitable at the same time gentleman yield? time. they are getting $194 million that we Mr. BACHUS. I yield to the gen- Mr. Chairman, I rise in opposition to barely talk about. tleman from Ohio. the amendment. How many other agencies of govern- Mr. KASICH. Mr. Chairman, let me As the gentleman from New Jersey ment get interest like this? This is al- just make one thing very clear about (Mr. MENENDEZ) and others have talked most a government unto itself, the fact OPIC making money. OPIC holds gov- about, we are in a global economy. that it has that much financing with- ernment bonds. The Department of the OPIC does open markets. OPIC has out even a direct appropriation because Treasury of the United States then helped create jobs in this country. And it is paid out of the interest budget. pays interest on the government bonds. OPIC charges premiums. OPIC charges This is indeed a very important So when we talk OPIC making profit, premiums. amendment. I believe that we should the profit is being paid for by tax- One of the big criticisms of OPIC is definitely vote for this. If we care at all payers to an organization that holds that the premiums are too high and about the taxpayer of this country, we government bonds. It has nothing to do that is why they have $3.3 billion in re- should expose what is happening with with making money or having a profit. serves. Now, if the premiums are too corporate welfare. The little people are not coming to So let us just be clear about the fact high and the private sector would be us today begging us to vote against that we use this terminology carefully. interested in going into these areas, this amendment. It is the corporations, We know this is a very tough fight here why is it not there? the giant corporations, not our small because it is right at the heart of sub- OPIC fills a void that the private sec- mom-and-pop businesses. They are not sidies to the most powerful, and we un- tor will not go into if OPIC is elimi- coming and saying, please, please pro- derstand that it is hard to win that. nated. They will go into troubled coun- tect OPIC. No, it is the giant corpora- But I think it is very important that tries. They go into countries that in- tions that have been able to manipu- when we have this debate that we be surance companies of a private nature will not go into. These premiums have late and get benefits from programs clear about it. like this. I am not suggesting for a second that generated $139 million last year. They are expected to generate $200 million The CHAIRMAN. The gentleman anybody is trying to distort the truth. from Alabama (Mr. CALLAHAN) has 2 We have just got to get the facts about this year. OPIC’s claims because of the way minutes remaining. The gentleman what profits are all about. It is not from New Jersey (Mr. ANDREWS) has 2 about any government operation mak- OPIC is funded become a priority when- ever these troubled countries try to re- minutes remaining. The gentleman ing money in the marketplace. It has from New Jersey (Mr. MENENDEZ) has to do with taxpayers giving them establish relationships with the United 31⁄2 minutes remaining. The gentleman money that then gets scored as extra States. No private company would have that from Alabama (Mr. CALLAHAN) has the money, which some call profits. That is great advantage in settling claims. right to close. in error. So we ought to be clear about That is why OPIC does not lose money. Mr. MENENDEZ. Mr. Chairman, I what this organization actually does. That is why OPIC does encourage yield 1 minute to the gentleman from Mr. BACHUS. Mr. Chairman, re- trade. That is why OPIC works. That is Texas (Mr. BENTSEN). claiming my time, I would say, as why the private sector will not replace (Mr. BENTSEN asked and was given chairman of the Subcommittee Domes- it if it is eliminated. permission to revise and extend his re- tic and International Monetary Policy, I urge my colleagues to vote against marks.) I would join the chairman in his assess- this amendment. Mr. BENTSEN. Mr. Chairman, the ment on the profit it makes. Mr. ANDREWS. Mr. Chairman, I reason why we have this insurance pro- Now, we have heard that OPIC helps yield 2 minutes to the gentleman from gram is the same reason why we have American workers, and we have heard Texas (Mr. PAUL). the HUD insurance program for home- that it hurts American workers. I want (Mr. PAUL asked and was given per- owners in this country, low-income to focus on that one claim. mission to revise and extend his re- homeowners, because the marketplace Let us look at one of these trans- marks.) does not provide for it, just as my col- actions. In 1997, OPIC financed the Mr. PAUL. Mr. Chairman, I thank league from Missouri just said. building for Levi Strauss of a garment- the gentleman for yielding me the The other reason we have this pro- making factory in Turkey, a $29-mil- time. gram is because our trading partners lion guarantee, because they did not Mr. Chairman, I rise in strong sup- around the world do this and do it a lot want to finance it themselves and pri- port for this amendment. If it were more. So if we are to pass this amend- vate insurers would not do it. true that this agency is profitable, we ment and unilaterally withdraw from Well, what happened when Levi would not be here. They would be mak- being a competitive trading Nation, we Strauss built that factory? They laid ing profit, and OPIC would not need to will only drive up the imports in this off 6,400 workers at U.S. garment-mak- come here every year. country, drive down the exports from ing factories in 11 locations in the They are asking for $55 million. this country, and cost Americans jobs. United States. Where does the profit come from? It By passing this amendment, we will Now, do my colleagues think that was stated earlier very clearly; from not do anything to bring capital back those 6,400 employees, if any of them the interest they earn. They have a into this country. OPIC is used in my are listening today, that they will buy portfolio of $3 billion of U.S. securities. district where we have companies that this argument that we are creating But these did not reduce the national are looking for new markets to get jobs? We lost those jobs. And not only debt. That is part of the national debt. into. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6815 The Stewart & Stevenson Company quire this company to go three out of Mr. Chairman, I have always been told, if it builds turbine engines and then sells five arbitrations? ain't broke, don't fix it! them throughout the world. And when Mr. Chairman, Mid-American has fol- OPIC is not broke, let's not try to fix it. they sell more engines, they hire more lowed OPIC guidelines. Now it must Mr. ANDREWS. Mr. Chairman, I Americans to build them in my dis- fulfill its obligations. I urge the sup- yield myself the balance of my time. I trict. port of this amendment. appreciate the opportunity to summa- rize our point of view in the debate. I b 2000 Mr. MENENDEZ. Mr. Chairman, I yield the balance of my time to the share with my friend from Illinois a That is what this is about. So if you gentleman from Illinois (Mr. DAVIS). real desire to develop Africa and other want to try and find some pure philos- The CHAIRMAN. The gentleman less developed areas. I just think we ophy that only the United States is from Illinois is recognized for 1 minute. should do it openly and directly and going to do, it will be at the expense of Mr. DAVIS of Illinois. Mr. Chairman, not through the Trojan horse of cor- the American worker. I am opposed to corporate welfare. I am porate welfare which I believe is what Mr. MENENDEZ. Mr. Chairman, I opposed to giving away taxpayers’ OPIC is. 1 yield 1 ⁄2 minutes to the gentleman money. I am even opposed to fattening Here is what OPIC really says. If from Oregon (Mr. WU). fat cats. But I am not opposed to stim- someone wants to build a plant or a Mr. WU. Mr. Chairman, I rise today ulating business growth and develop- factory in New Jersey or Oregon or on behalf of small business owners and ment in sub-Saharan Africa, the poor- Texas, they are on their own, they have workers in my home State of Oregon est region of the world. I am not op- to go to a bank and take a risk and and in opposition to the amendment of- posed to saying that in order to facili- borrow the money themselves. But if fered by the gentleman from New Jer- tate the development of opportunity in they want to build the plant in a for- sey (Mr. ANDREWS). This amendment to areas that unless there was some pri- eign country, another continent, then abolish OPIC would damage the efforts vate investment, nothing would hap- the United States taxpayers, if they of Oregon’s small businesses in emerg- pen. And so while generally I would be are big enough and powerful enough, ing markets overseas. In Oregon, OPIC on the other side of an issue like this will have to reach into our pockets and has financed and insured projects one, but because of the need in areas of subsidize it. The idea of us subsidizing worth $27 million. These efforts have the world for business development, I these operations is wrong. generated over $33 million in Oregon find myself in opposition to this Let us end corporate welfare as we exports. Many new jobs come through amendment because I want to see Afri- know it and support this amendment. businesses that supply goods and serv- Mr. CALLAHAN. Mr. Chairman, I ca have an opportunity to grow and de- ices to projects insured or financed by yield myself the balance of my time. velop, and I support investment in OPIC, businesses like Hyster Sales Mr. Chairman, let me say that I countries like sub-Saharan Africa. I op- Company in Tigard, Oregon, and know the distinguished gentleman pose the amendment. Interwrap Industries in Portland, Or- from New Jersey is well-intended in his Mr. Chairman, I rise in strong opposition to egon. beliefs, but I do believe him to be abso- OPIC helps level the playing field for this amendment to prohibit any funds for new lutely wrong. American businesses of all sizes which projects by the Overseas Private Investment He mentioned the fact that plants compete for overseas projects. OPIC of- Corporation. Cutting OPIC's administrative have already spent their own money in fers American businesses essential risk budget will hurt our nation's 22 million small his home State without government as- insurance for their investments in businesses who export directly or by contract sistance, which is wrong to begin with, high-risk emerging markets. It pro- to other countries. but the plants that are already there, Specifically, cutting funds would cut what lit- vides temporary financing for invest- like AT&T, like Berger International, tle business assistance sub Saharan Africa, ments when private sector support is like Schick, like Johnson & Johnson, the poorest region of the world receives. lacking. Nabisco, Squibb and Ingersoll-Rand are But OPIC does all of this in a fiscally During this decade OPIC has increased its all using OPIC, and I am sure that the sound manner. Customers which ben- effectiveness in helping Africa. For instance, thousands of employees who are bene- efit from OPIC repay the full principal OPIC has currently four privately managed in- fitting from the fact that they are ex- amount. vestment funds available to support invest- porting the products could probably I urge my colleagues to vote ‘‘no’’ on ment in Africa. These programs focus on min- convince their fellow New Jerseyan the Andrews amendment. ing, manufacturing, broadcasting, information that he was making a mistake. Mr. ANDREWS. Mr. Chairman, I technology and I hope to see soon healthcare. The same with the gentleman from yield 1 minute to the gentleman from The point I am trying to make here is that Alabama who stood up and talked Nebraska (Mr. TERRY), a very articu- if we cut OPIC'S budget we would hurt small about it. Yet in his hometown of Bir- late freshman Member. business, decrease our nation's exports, and mingham, Alabama, Mr. Chairman, Mr. TERRY. Mr. Chairman, I rise in cut jobs. For the past three years, OPIC's they utilize OPIC more than any other support of the Andrews amendment. I budget has been effectively frozen. We al- city in the entire State. But the good am not debating whether or not it is ready have this organization working on a thing about that is they ship those corporate welfare, but I want to talk shoestring budget. products through the port of Mobile about how OPIC must get its own OPIC is not a giveaway program, it is not a and enhance the ability of the people in house in order first as I lack confidence subsidy and it is not general assistance. It is my district to benefit from exporting in this program. not corporate welfare. This is an investment these products. I am going to tell my colleagues a and I might add, an investment that is paying They say OPIC is not really making story about a company in my district, off. OPIC projects have generated $58 billion any money and how the books say that, Mid-American Energy, who has been in U.S. exports and created more than but OPIC is making $200 million a year, working with OPIC, had used OPIC to 237,000 U.S. jobs. period. That is the fact. They are not build a power plant in Indonesia. I must confess that I am at a loss to under- losing money. It is true that when our The government did a bait and stand how or why we would want to cut fund- countries go now into a foreign coun- switch. They put in a claim. Now they ing for an effort that is producing results, and try, they are on a levelized playing are pursuing to recover this lost in- effectively carrying out its mission. Why would field with all of the other industri- vestment. In May 1999, OPIC required you cut the budget on an agency whose budg- alized nations because all of the other an arbitration. Mid-American won in et is funded from user fees? Why prevent new nations have similar programs. These the United Nations Commission on investments? Why eliminate $9 billion in trade are insurance programs that for the International Trade Law, 3–0. and investment in sub Saharan Africa? Why most part insure that if the govern- What next? OPIC said, ‘‘That’s not eliminate $4 billion in hurricane rebuilding re- ment expropriates all of the properties good enough. We need you to do it sources in Central America and the Carib- there, that OPIC, the United States of again. We want you to go somewhere bean? Why undercut private sector rebuilding America, will guarantee payment to else for another arbitration.’’ initiatives for the war torn Balkans? There is the bank from which most of this When OPIC loses this time, will they no reason to, and there is no reason to sup- money comes from for their guaran- change the rules again? Will they re- port this amendment. tees. H6816 CONGRESSIONAL RECORD — HOUSE August 2, 1999 This is not corporate welfare. This is A recorded vote was ordered. Latham Ortiz Smith (TX) LaTourette Ose Smith (WA) a sensible export program that is vital The vote was taken by electronic de- Lazio Owens Snyder to American industry. I would urge my vice, and there were—ayes 103, noes 315, Leach Oxley Spence colleagues to vote ‘‘no’’ on the An- not voting 15, as follows: Lee Packard Spratt drews amendment. Levin Pallone Stabenow [Roll No. 359] Lewis (CA) Pastor Stenholm PARLIAMENTARY INQUIRY AYES—103 Lewis (GA) Payne Stump Mr. CALLAHAN. Mr. Chairman, I Lewis (KY) Pelosi Sweeney Andrews Graham Paul Lofgren Phelps Talent have a parliamentary inquiry. Archer Hayworth Pease Lowey Pickering Tanner The CHAIRMAN. The gentleman will Armey Hefley Peterson (MN) Lucas (KY) Pickett Tauscher Bachus Herger Petri state it. Lucas (OK) Pitts Tauzin Baldwin Hilleary Pombo Mr. CALLAHAN. Mr. Chairman, is it Maloney (CT) Pomeroy Taylor (MS) Barcia Hinchey Ramstad the Chair’s understanding that after Maloney (NY) Porter Taylor (NC) Barr Hobson Rangel Manzullo Portman Thomas this vote, there will be no more votes Barrett (WI) Hoekstra Rivers Markey Price (NC) Thompson (CA) Bartlett Holden Rogan tonight, that the rest of the amend- Martinez Quinn Thompson (MS) Bass Hostettler Rohrabacher ments that we debate tonight will be Mascara Radanovich Thornberry Berkley Hunter Royce Matsui Rahall Thune carried over until tomorrow so that Bono Jones (NC) Ryun (KS) McCarthy (MO) Regula Thurman this would be the last vote of the Brown (OH) Kanjorski Salmon McCarthy (NY) Reynolds Tiahrt Burton Kaptur Sanders night? McCollum Riley Towns Campbell Kasich Sanford The CHAIRMAN. The gentleman is McCrery Rodriguez Turner Cannon Kingston Schaffer correct. Under the rule the Chair has McGovern Roemer Udall (CO) Chabot Kucinich Sensenbrenner McHugh Rogers Udall (NM) the authority to postpone votes on Chenoweth Largent Shadegg McKeon Ros-Lehtinen Upton Coble Linder Smith (MI) amendment and intends to do so after McNulty Rothman Velazquez Coburn Lipinski Souder the vote on the Andrews amendment. Meehan Roukema Vento Collins LoBiondo Stark Mr. CALLAHAN. Mr. Chairman, I Meek (FL) Roybal-Allard Vitter Condit Luther Stearns Meeks (NY) Rush Walden would urge my colleagues to vote ‘‘no’’ Cox McInnis Strickland Menendez Ryan (WI) Walsh on this last amendment. Crane McIntosh Stupak Millender- Sabo Waters DeFazio McIntyre Sununu Mr. FRELINGHUYSEN. Mr. Chairman, I rise McDonald Sanchez Watkins DeMint McKinney Tancredo today in opposition to the Andrews amend- Miller, Gary Sandlin Watt (NC) Dickey Metcalf Terry Minge Sawyer Watts (OK) ment and in support of the Overseas Private Doolittle Mica Tierney Mink Saxton Weiner Investment Corporation, or OPIC. Duncan Miller (FL) Toomey Moakley Schakowsky Weldon (FL) Ehrlich Miller, George Traficant Let me tell you what OPIC has meant to Mollohan Scott Weldon (PA) Evans Myrick Visclosky companies, large and small, in my state of Moore Serrano Weller Farr Nadler Wamp Moran (KS) Sessions Wexler New Jersey. With the help of risk insurance Fletcher Norwood Woolsey Moran (VA) Shaw Weygand provided by OPIC since the program began, Goode Obey Morella Shays Whitfield Goodlatte Pascrell New Jersey companies have generated $3 bil- Murtha Sherman Wicker lion in exports which supported 10,000 jobs. NOES—315 Napolitano Shimkus Wilson I hope my colleague from New Jersey will Neal Shows Wise take note of the companies from New Jersey Ackerman Coyne Gordon Nethercutt Simpson Wolf Aderholt Cramer Goss Ney Sisisky Wu who needed OPIC insurance in order to sell Allen Crowley Granger Northup Skeen Wynn their products abroad and thus support jobs Baird Cubin Green (TX) Nussle Skelton Young (AK) here at home in our state of New Jersey. Baker Cummings Green (WI) Oberstar Slaughter Young (FL) Baldacci Cunningham Greenwood Olver Smith (NJ) Many New Jersey companies have bene- Ballenger Danner Gutierrez fited from OPIC financing and insurance. They Barrett (NE) Davis (FL) Gutknecht NOT VOTING—15 include, among others, Copelco Capital of Barton Davis (IL) Hall (TX) Abercrombie Hall (OH) Reyes Mahwah, Croll Reynolds Co. of Westfield; Bateman Davis (VA) Hansen Bilbray Lantos Scarborough Engelhard Pollution Control of Iselin; Guest Becerra Deal Hastings (FL) Cooksey McDermott Sherwood Bentsen DeGette Hastings (WA) Frank (MA) Peterson (PA) Shuster Supply Inc. of Monmouth Junction; H.W. Bereuter Delahunt Hayes Gephardt Pryce (OH) Waxman Baker Linen Co. of Mahwah; Ingersoll-Dresser Berman DeLauro Hill (IN) Pump Co. of Liberty Corner; Ingersoll-Rand of Berry DeLay Hill (MT) b 2028 Biggert Deutsch Hilliard Woodcliff Lake, ITT of Midland Park; Maersk Bilirakis Diaz-Balart Hinojosa Mr. WATKINS and Mr. EVERETT Inc. of Madison; Regal International of Closter. Bishop Dicks Hoeffel changed their vote from ‘‘aye’’ to ‘‘no.’’ And what have these companies been able Blagojevich Dingell Holt Mr. FLETCHER changed his vote to do with OPIC Insurance? Let's just talk Bliley Dixon Hooley from ‘‘no’’ to ‘‘aye.’’ Blumenauer Doggett Horn about some of the small New Jersey compa- Blunt Dooley Houghton So the amendment was rejected. nies that have benefited. Misco America from Boehlert Doyle Hoyer The result of the vote was announced Holmdel supplied products for a project in Boehner Dreier Hulshof as above recorded. Ethiopia; Casale Industries from Garwood was Bonilla Dunn Hutchinson Stated against: Bonior Edwards Hyde Mr. SHERWOOD. Mr. Chairman, on rollcall involved in an electrical service project in Tur- Borski Ehlers Inslee key; GAR International from Red Bank was a Boswell Emerson Isakson No. 359 I was inadvertently detained. Had I supplier for the privatization of a copper mine Boucher Engel Istook been present, I would have voted ``no.'' Boyd English Jackson (IL) in Peru. b 2030 So, again, I hope my colleague from New Brady (PA) Eshoo Jackson-Lee Brady (TX) Etheridge (TX) Mr. CALLAHAN. Mr. Chairman, I Jersey takes note of the importance of OPIC Brown (FL) Everett Jefferson to New Jersey companies, large and small, Bryant Ewing Jenkins move to strike the last word in order and their employees. Burr Fattah John to enter into a colloquy with the gen- OPIC is a key component in our efforts to Buyer Filner Johnson (CT) tleman from Georgia (Mr. DEAL). Callahan Foley Johnson, E. B. Mr. Chairman, the gentleman from open up markets all over the globe to U.S. Calvert Forbes Johnson, Sam products and services. Camp Ford Jones (OH) Georgia has a very serious problem Again, Mr. Chairman, I urge my colleagues Canady Fossella Kelly that he brought to the attention of the to oppose this amendment and support OPIC. Capps Fowler Kennedy committee. When we went to the Com- Capuano Franks (NJ) Kildee mittee on Rules, we found that prob- The CHAIRMAN. The question is on Cardin Frelinghuysen Kilpatrick the amendment offered by the gen- Carson Frost Kind (WI) ably it would be better suited in the tleman from New Jersey (Mr. AN- Castle Gallegly King (NY) bill of the gentleman from Kentucky DREWS). Chambliss Ganske Kleczka (Mr. ROGERS) which is to come up later Clay Gejdenson Klink The question was taken; and the Clayton Gekas Knollenberg on this week. Chairman announced that the noes ap- Clement Gibbons Kolbe In any event, the seriousness of the peared to have it. Clyburn Gilchrest Kuykendall problem in Georgia actually impacts Combest Gillmor LaFalce RECORDED VOTE all others. I thought that we could Conyers Gilman LaHood Mr. ANDREWS. Mr. Chairman, I de- Cook Gonzalez Lampson enter into this colloquy with the gen- mand a recorded vote. Costello Goodling Larson tleman from Georgia (Mr. DEAL) so August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6817 that he might explain the problem, so believe this is the law of the land any- a few years ago, and there were only a in the event that the measure cannot way. It is my understanding we are just few hundred people killed, and it cost be handled successfully in the Com- not adequately enforcing it; that the us probably several hundred million merce, State, Justice bill, that we may State Department and the Justice De- dollars to have our troops down there, consider it in conference. partment have the authority already but we thought it was a good cause in I would like yield to the gentleman to enforce this, and yet they are failing this country. Yet in places like the from Georgia (Mr. DEAL) to explain the to do so. It is an issue that needs to be Sudan, where 2 million people have problem and his request. addressed by this Congress, and I am been killed, 2 million, in the struggle Mr. DEAL of Georgia. Mr. Chairman, very appreciative of the gentleman for freedom, we have not done a thing. will the gentleman yield? from Georgia for bringing it to our at- Our role is almost nonexistent. Mr. CALLAHAN. I yield to the gen- tention. In other parts of Africa, Rwanda, Bu- tleman from Georgia. AMENDMENT OFFERED BY MR. BURTON rundi and Burma, where thousands and Mr. DEAL of Georgia. Mr. Chairman, thousands, hundreds of thousands of as the chairman indicated, we have a Mr. BURTON of Indiana. Mr. Chair- man, I offer an amendment. people have been killed, we have not serious problem in this country with done a thing. We do not even talk regard to individuals who are nonciti- The CHAIRMAN. The Clerk will des- ignate the amendment. about it. zens who have been arrested for serious In a place called Kashmir, where felonies and have been ordered de- The text of the amendment is as fol- lows: there are half a million Indian troops ported. occupying that area, women are being They are then in the custody of the Amendment offered by Mr. BURTON of Indi- gang raped and men are being tortured Immigration and Naturalization Serv- ana: and killed. Amnesty International calls ice pending the acceptance back by Page 116, after line 5, insert the following: the policy of the Indian government their country of their citizenship. Un- SEC. . Of the funds appropriated or other- wise made available in this Act in title II ‘‘An official policy sanctioning fortunately, we have many countries, under the heading ‘‘DEVELOPMENT ASSIST- extrajudicial killings,’’ and we do not well over 100 countries now, who have ANCE’’, not more than $33,500,000 may be even talk about it. either refused to accept their citizens made available to the Government of India. In Punjab, since 1984, the last 14 to 15 back or are unduly delaying the proc- The CHAIRMAN. Pursuant to the years, a quarter of a million, 250,000 ess of accepting them back, over 3,300 order of the House of Thursday, July Sikhs, have been killed, not to mention people, and we are adding approxi- 29, 1999, the gentleman from Indiana those who have been tortured and mately 60 every month to this list. (Mr. BURTON), and a Member opposed maimed. In Kashmir, since 1988, a mere These are individuals who are having each will control 25 minutes. 10 years ago, 60,000 Muslims have been to be detained in our Federal detention Mr. CALLAHAN. Mr. Chairman, I killed. Thousands of so-called untouch- facilities at a cost of about $67 a day, rise in opposition to the Burton amend- ables, Dalits, the blacks in India, have and the cost on an annual basis is ment and claim all time in opposition somewhere in the neighborhood of been killed. to the Burton amendment. As result of some of these problems, about $80 million. The CHAIRMAN. The gentleman My amendment would have addressed there is a conflict going on on the bor- from Alabama (Mr. CALLAHAN) will that by simply saying to those nations, der between India and Pakistan that control 25 minutes. many of whom do receive assistance could lead to a real problem for that Mr. CALLAHAN. Mr. Chairman, I ask under this particular bill, that they part of the world, and, yes, the whole would not be able to receive that as- unanimous consent to yield half of the world itself, because both of those sistance unless they cooperated, which time allocated to me to the gentle- countries have nuclear weapons. Ac- is the responsibility and the comity of woman from California (Ms. PELOSI), cording to our own State Department, nations to accept your citizens back and that she be allowed to control said India paid over 41,000 cash bounties to once they have been ordered deported time. police for killing innocent Sikhs be- from another country, and that that The CHAIRMAN. Is there objection tween 1991 and 1993. In July of 1998, po- would be a condition for their receiving to the request of the gentleman from lice picked up Kashmir Sing, a man in assistance under this bill. Alabama? Punjab. They said they arrested him As the chairman has indicated, un- There was no objection. for theft. Then they tortured him for 15 fortunately, we did not receive the Ms. PELOSI. Mr. Chairman, I thank days. They rolled logs over his legs so waiver from the Committee on Rules, the distinguished gentleman for yield- he could not walk. They submerged but it is a serious problem, not only in ing me time. him in a tub of water and slashed his my district, but in many other parts of Mr. Chairman, I ask unanimous con- thighs with razor blades and put hot the country. We cannot criticize the sent to yield my time to the gentleman peppers into the wounds. INS for not issuing deportation orders from New York (Mr. ACKERMAN), and Sikhs are routinely found floating when we run into the problems of these that he be allowed to control said time. dead in canals with their hands and over 100 countries who refuse to co- The CHAIRMAN. Is there objection feet bound together. One thousand operate with that deportation process. to the request of the gentlewoman cases of unidentified bodies were cre- I want to thank the chairman for his from California? mated not too long ago by the mili- cooperation in making the matter a There was no objection. tary. matter before the House tonight. I ap- The CHAIRMAN. The gentleman Of course, I talked to you about the preciate his cooperation and look for- from Indiana (Mr. BURTON) is recog- Muslim persecution in Kashmir where ward to working with the gentleman as nized. there are 500,000 troops. Women are we approach the Commerce, Justice Mr. BURTON of Indiana. Mr. Chair- gang raped while their husbands are and State appropriation, as hopefully man, I yield myself such time as I may forced to wait outside at gun point. we can find wording that will address consume. The Christian persecution, since the issue there. I also appreciate his Mr. Chairman, our foreign policy in Christmas Day of 1998, there has been a willingness that if we are not success- our country has been concerned about wave of attacks on Christian churches, ful there, to continue to work with us human rights violations around the prayer halls, schools, including the to find a solution. world for a long time. However, Mr. murder of priests, one of which was be- I think the American people expect Chairman, we have been concerned headed. when we order a person deported, that about human rights around the world Our State department agrees. They their country will accept them back, on a very selective basis in this coun- said, ‘‘There was a sharp increase in at- and, if they do not, that they should try. tacks against Christians just last not expect to receive foreign aid at the Recently we were in Yugoslavia, in year.’’ Some of the things that are same time they are costing the Amer- Kosovo, trying to help the people who going on I cannot even talk about. ican taxpayers over $80 million a year. were being persecuted on both sides, They parade Dalit women, the blacks, Mr. CALLAHAN. Mr. Chairman, re- and there were about 10,000 deaths in around naked, and they are gang raped claiming my time, I would also say I Kosovo. In Haiti, we sent in our troops as well in many cases. H6818 CONGRESSIONAL RECORD — HOUSE August 2, 1999 The State Department report on page was put on India that they reluctantly India than the President, the Secretary 22 says, ‘‘The Human Rights Commis- bowed and complied with the U.N. rules of State, USAID, and the committee is sion is prohibited by statute from di- governing these transactions. recommending. I do not think it was rectly investigating allegations of India’s minister of oil and gas said, the intent of the gentleman from Indi- abuse involving army and paramilitary granted his agreement would violate ana to increase funding for India, but forces.’’ They are talking about the U.N. sanctions, but he said his country based upon the reading of his amend- Human Rights Commission in India. would never allow a friend like Iraq to ment, it appears to me that it raises They are specifically prohibited by suffer. He went on to say India is deep- the level of assistance to India and he statute from directly investigating al- ly concerned about the situation in may want to withdraw it. legations of abuse involving the army Iraq, adding that the Indian govern- Mr. ACKERMAN. Mr. Chairman, I and paramilitary forces. ment would offer Iraq all the political, yield such time as he may consume to The human rights organizations material, and moral support that they the gentleman from California (Mr. around the world, such as Human needed. BERMAN). Rights Watch says, ‘‘Despite govern- India also wants to help Iraq reha- (Mr. BERMAN asked and was given ment claims that normalcy has re- bilitate some Iraqi oil refineries and a permission to revise and extend his re- turned to Kashmir, Indian troops in lubricant oil plant. India and Iraqi offi- marks.) the state continue to carry out sum- cials have said they would like to soon Mr. BERMAN. Mr. Chairman, I rise mary executions, disappearances, rape sign a contract to develop two oil fields in strong opposition to the Burton and torture.’’ This report was written in southern Iraq. amendment. in July of 1999, this year. So India wants to help one of the Cutting development assistance for India at Methods of torture include severe worst tyrannical regimes in the world, this time would be totally counterproductive beatings with truncheons, rolling a Saddam Hussein’s, at a time when we because it would undermine U.S.-India rela- heavy log on the legs, hanging the de- are participating in a U.N. embargo. tions just when we're starting to make some tainee upside down, and the use of elec- And we are going to continue to send real progress. tric shocks. Indian security forces have the same amount of foreign aid or al- India showed great restraint in the recent raped women in Kashmir during search most the same amount. We are not Kashmir crisis, and the Indian government has operations. going to send any signal about the made a strong commitment to resuming bilat- I can go on and on. human rights violations or about them eral discussions with Pakistan as soon as all Amnesty International, another breaking this embargo, or wanting to militants have withdrawn behind the Line of human rights group says, ‘‘Torture, in- break this embargo, about their inten- Control. cluding rape and ill-treatment con- tion to work with Saddam Hussein to India has also indicated that signing the tinue to be endemic throughout the develop the oil fields in southern Iraq? Comprehensive Test Ban Treaty will be a high country.’’ This is in their annual re- And I say to my colleagues, do you not priority. port, 1999. ‘‘Disappearances continue to want to say anything about this? Do On both counts, India is moving in a direc- be reported during the year, predomi- you not want to send any kind of a sig- tion that's totally consistent with U.S. security nantly in Punjab and Kashmir,’’ 1999. nal to India? interests in South Asia. It would be foolish to ‘‘Hundreds of extrajudicial killings and Eleven million dollars is a drop in put this progress in jeopardy by cutting India's executions were reported in many the bucket, but it will tell the whole development assistance. states, including Kashmir and Punjab,’’ world that the United States is paying Mr. Chairman, human rights abuses should 1999, this year. attention to the horrible human rights be taken seriously wherever they occur. India, I talk about this year after year after abuses that are taking place, the atroc- like most countries in the world, doesn't have year. My colleagues who defend India’s ities that are taking place, the killings a perfect record. government policies keep coming down that are taking place, and, yes, the vio- But according to the latest State Department saying, ‘‘Oh, well, it is a big country, lations of the U.N. embargo that they report on human rights practices, India is mak- the second biggest in the world. We want to take place. ing real progress. The Indian Supreme Court have to keep those economic doors has acknowledged and condemned earlier b 2045 open. We have got to make sure that human rights abuses in Punjab, and the inde- we do business with them.’’ So I would say to my colleagues, who pendent National Human Rights Commission Well, okay, let us do business with I know have their minds already made is conducting an investigation. them, but let us at least send them a up and who are going to be out here en The best way to improve human rights in signal, send a little-bitty signal to masse tonight opposing this amend- India is to continue an open and frank dia- them that these kinds of atrocities ment, have a heart. Show a little bit of logue, not to cut programs that limit the cannot be tolerated, should not be tol- heart for these people who are suffering spread of AIDS, improve access to reproduc- erated. $11 million cut from our foreign over there. Because unless we say tive health services, and provide basic health aid to India is a drop in the bucket. something, nobody will. care for mothers and children. They are getting foreign aid from all Mr. Chairman, I reserve the balance With some 500 million Indians living below over the world. So if we cut them by a of my time. the poverty line, the modest amount of assist- mere $11 million, one-fourth of the de- Mr. CALLAHAN. Mr. Chairman, I ance we provide barely scratches the surface velopmental aid we are going to give yield myself 1 minute. when compared to the overall need. them, to send a little signal that they Mr. Chairman, I wish to point out to But it's an important symbol of the relation- should stop these human rights abuses, Members and to the author of the ship between the world's two largest democ- is that wrong? I think not. amendment that the intent of his racies and it should be continued. But if the persecution of these people amendment is unclear. The amendment I urge my colleagues to defeat the amend- were not enough, let me talk to you places a ceiling of $33.5 million on the ment. about something else, something that I amount of development assistance aid Mr. ACKERMAN. Mr. Chairman, I think is extremely important that we available to the government of India. yield 1 minute to the gentleman from have not talked about for a while. However, the President’s fiscal year Ohio (Mr. BROWN). Last week, my colleagues who sup- 2000 budget request for all development Mr. BROWN of Ohio. Mr. Chairman, I port these atrocities in India by not assistance to India, including both aid thank the gentleman from New York sending them a signal, last week the to the government and aid directly to (Mr. ACKERMAN) for yielding me this Indian oil minister attempted to cir- nongovernmental organizations, is time. cumvent the United Nations embargo only $28.7 million. In fact, about 85 per- Mr. Chairman, I rise in strong opposi- on Iraq by extending a $25 million loan cent of all aid funding to India goes tion to the Burton amendment. We to Iraq in a deal that knowingly vio- through NGOs, not the government. have heard a variety of arguments as lated, or were going to knowingly vio- Therefore, the amendment of the to why we should abandon ties with late the U.N. trade sanctions imposed gentleman from Indiana (Mr. BURTON) India, and frankly none of them make on Iraq for invading Kuwait in 1990. It would actually allow considerably sense. The fact is that India, the was not until international pressure more funding to the government of world’s largest democracy, is becoming August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6819 more closely aligned with the United The momentum gained in U.S.-India First of all, and again let me go back States and is increasingly important to relations in recent years needs to be to, India is a democratic government. I us as a trading partner and a strategic sustained and strengthened. It is the would hope people would invest in partner. world’s largest democracy and the India, and I hope that the United Over a quarter of a million people are world’s strongest democracy should be States has closer ties to India in the expected to vote in India’s fall elec- supporting our friend and ally. I urge a future. Nothing would make that more tions, free and fair elections open to ‘‘no’’ vote. likely than for them to seek peace in every citizen of every religion of every Mr. BURTON of Indiana. Mr. Chair- Kashmir by permitting the people region of every race. Think about that. man, I yield 4 minutes to the gen- there to have a vote of plebiscite which A nation of 1 billion people with a free tleman from California (Mr. ROHR- India, because of ego, continues to say and open press practicing democracy. ABACHER). no, no, no. And as long as that happens, This amendment sends the wrong Mr. ROHRABACHER. Mr. Chairman, India will be spending tens of millions message to the billions of people I rise in support of the intent of the if not hundreds of millions of dollars on around the world who yearn for a sec- gentleman from Indiana (Mr. BURTON) weapons. ular stable political system, a political to send a message to India. I really ac- Mr. Chairman, think of this. Today system in this country that our Found- tually admire India. India is a very we are only talking about decreasing ing Fathers believed should be based on large country that was created in a pe- the foreign aid to India by $11 million, universal freedoms. It sends the wrong riod of turmoil after the decline and when the Indians themselves are spend- message to the best allies that the the dissolution of the British Empire, ing hundreds of millions on conven- United States will ever have, the and India has managed over the years, tional weapons and at least tens of mil- world’s fledgling democracies, whether with great hardship, to have some fun- lions, probably hundreds of millions, on they are the people of India, the people damentally democratic institutions; nuclear weapons as well. That makes of Taiwan, or the people of Mali. and we should all recognize that they no sense at all for us to be subsidizing Mr. Chairman, I ask for opposition to have elections there and have struggled the weapons program of India. Instead, the Burton amendment. to have independent courts and free we should be sending this message to Mr. BURTON of Indiana. Mr. Chair- elections and some kind of freedom of convince them to solve this long-fes- man, I yield myself 1 minute. speech. tering problem in Kashmir and permit Mr. Chairman, the gentleman from There have been ups and downs. In some of the democratic reforms to take Alabama (Mr. CALLAHAN), chairman of fact, I believe that the American busi- place in Punjab and Jammu. the committee, just said that our ness community has made a tragic This would be a very positive mes- amendment only addresses develop- error in focussing on Communist China sage for us to send for only an $11 mil- mental assistance when he knows full as being that country which would be lion reduction. I would hope that my well that this amendment has been the recipient of aid and the recipient of colleagues join me. I am sorry if there proposed in years past when develop- investment over the years, when India has been some kind of a drafting prob- mental assistance and child survival was there and ready and willing to be a lem with this amendment, and I would and disease assistance was lumped into country that could increase the stand- hope that the gentleman from Indiana one category. Today he is trying to say is permitted to solve that drafting that if our amendment passes, that we ard of living of its people by industri- alizing and making itself more pros- problem here on the floor with some are actually increasing money to India, minor alteration of the text. when I think they are trying to come perous. However, let us recognize that with Mr. Chairman, I ask support for the up with a straw issue here to defeat the that that India has made some major intent of the gentleman from Indiana amendment and it is very dis- errors and some of them are based to- (Mr. BURTON). concerting. Mr. CALLAHAN. Mr. Chairman, I tally on ego. And when it comes to the Mr. CALLAHAN. Mr. Chairman, I yield 2 minutes to the gentleman from Kashmir and the Punjab and Jammu, yield myself 15 second in which to re- Michigan (Mr. KNOLLENBERG), who is a the Indian Government might as well spond by simply reading the gentle- member of our subcommittee. man’s amendment. It says ‘‘under the not be a democracy. For people in Mr. KNOLLENBERG. Mr. Chairman, heading Development Assistance.’’ The those areas, India might as well be I thank the gentleman from Alabama Nazi Germany. It might as well not gentleman’s amendment is drafted (Mr. CALLAHAN) for yielding me this wrong. I know that is not his intent. I have free elections at all, because time. was telling the gentleman this to make those people are being denied their Mr. Chairman, I rise in strong opposi- him aware of the consequences. The right and have been all along, espe- tion to the amendment offered by the amendment will actually increase the cially in Kashmir, to determine their gentleman from Indiana (Mr. BURTON) ability of the administration to in- own destiny through a plebiscite that as I have done for the last 5 years or so. crease development assistance. was required of them by the United Na- In light of the heightened tensions in Mr. ACKERMAN. Mr. Chairman, I tions. Kashmir, the Burton amendment is the yield 1 minute to the gentlewoman The Indian Government today has, as wrong approach at the wrong time. The from New York (Mrs. MALONEY). the gentleman from Indiana (Mr. BUR- gentleman from Alabama has men- Mrs. MALONEY of New York. Mr. TON) pointed out, hundreds of thou- tioned the NGO situation. That is aside Chairman, I thank the gentleman from sands of troops occupying Kashmir; from some of the things that I want to New York (Mr. ACKERMAN) for yielding and many of these troops have engaged say. It is important, obviously, but I me this time and for his great leader- in, as troops do when they are in hos- want to say this amendment will have ship on this issue and so many others. tile territory, engaged in major human the inappropriate and ill-considered ef- Mr. Chairman, I rise in opposition to rights abuses that have been docu- fect of ostracizing India at a critical the Burton amendment which would mented time and again by Amnesty point in the ongoing conflict over cut aid to India. A similar resolution International. There is really no doubt. Kashmir. or amendment was defeated in 1997, and Our own government’s Human Rights Mr. Chairman, instead of risking fur- we should do so again tonight. department here and the State Depart- ther tension in the region, the United The last two State Department ment have documented these human States should be actively engaged in Human Rights reports praised India for rights abuses. And take a look at what promoting peace in the subcontinent of the progress the country has made in is being said. The type of grotesque Asia. While the eventual resolution of the area of human rights. And in the human rights abuses against the people the Kashmir conflict must be resolved wake of the recent Pakistani-backed of Kashmir is the very same things we bilaterally between India and Paki- incursion across the line of control saw Saddam Hussein committing and stan, the United States has an interest into Kashmir, India has been praised also Milosevic down there in Kosovo in facilitating meaningful negotiations by the international community for and against the Bosnians. These things between the parties. In fact, I believe the restraint it demonstrated and for require us to act and to treat India in so strongly in bringing peace to this re- the steps it took to ensure that the sit- a certain way to try to get them to gion, that I have encouraged the ad- uation did not escalate out of control. change their behavior. ministration to appoint a special envoy H6820 CONGRESSIONAL RECORD — HOUSE August 2, 1999 to serve as an honest broker to the Mr. Chairman, the United States must work ment of India have negotiated on very sen- conflict. with India to limit the proliferation of nuclear sitive matters of disarmament and non-pro- But in order to help bring a frame- weapons, to address the security concerns of liferation. work for peace, the U.S. must come to the region, and to safeguard the progress that Serious efforts have been made by our two the table with clean hands. Supporting has been made in protecting human rights. countries to find common ground on these im- the Burton amendment would put the This amendment would not merely affect the portant security issues. recent progress in relations between level of assistance, which is already extremely Any action by the United States to stig- India and America at risk. Over the limited, but far more significantly, would stig- matize India on inaccurate human rights alle- past year, we have seen increased dia- matize India at precisely the moment we need gations will likely complicate our efforts to cre- logue on nuclear nonproliferation, a most to build trust. I urge my colleagues to ate a lasting and meaningful friendship in a better understanding of India’s secu- vote no on this amendment. very dangerous part of the World. rity concerns, and an increase in U.S.- Mr. ACKERMAN. Mr. Chairman, I It should also be noted that the aid we pro- India trade and investment. This im- yield such time as she may consume to vide to India goes for very important projects. provement in U.S.-India relations the gentlewoman from North Carolina The aid we provide to India goes to the control should be sustained and strengthened, (Mrs. CLAYTON). of AIDS, to population control, disease control not put at risk. (Mrs. CLAYTON asked and was given and rural development. In order to address concerns we may permission to revise and extend her re- These are important and worthy causes, have about India, it is important to marks.) causes that not only benefits India, they ben- focus on fostering a positive and con- Mrs. CLAYTON. Mr. Chairman, I rise efit us and the rest of the world. In 1997, we overwhelmingly defeated this structive dialogue. This amendment in opposition to the Burton amend- ment. amendment by a vote of 342 to 82. would do the exact opposite by risking We took the right position then, and we the progress we have made. Mr. Chairman, I oppose the Burton amend- ment. should take the right position now. Mr. Chairman, I urge my colleagues Mr. Chairman, let us as Members of Con- This amendment, whether it freezes, cuts, on both sides to vote against the Bur- gress not view the Government of India as or caps foreign assistance to India, is a step ton amendment and in support of peace being callous to alleged human rights viola- in Kashmir and engagement with India. in the wrong direction. India's Government is moving in the right di- tions. Mr. ACKERMAN. Mr. Chairman, I India has made great strides in their battle rection, at a rapid pace to strengthen its ties yield such time as he may consume to to bring together diverse states within its Re- with the United States and the world. the gentleman from North Carolina gion. (Mr. PRICE). The economic and diplomatic relationship Vote NO! on the Burton Amendment. (Mr. PRICE of North Carolina asked between the United States, the world's oldest Mr. ACKERMAN. Mr. Chairman, I and was given permission to revise and democracy, and India, the world's largest de- yield such time as she may consume to extend his remarks.) mocracy, would receive a harmful blow with the gentlewoman from Texas (Ms. Mr. PRICE of North Carolina. Mr. successful passage of this amendment. JACKSON-LEE. Chairman, I rise in strong opposition Mr. Chairman, the Government of India has (Ms. JACKSON-LEE of Texas asked to the Burton amendment and ask per- been on a constant pace of change since and was given permission to revise and mission to include the full text of my 1991. extend her remarks.) remarks in the RECORD. Indeed, the most recent State Department Ms. JACKSON-LEE of Texas. Mr. Mr. Chairman, I rise again this year to op- human rights reports praised India for the sub- Chairman, I rise in strong opposition pose the Burton amendment which would un- stantial progress it has made. to the Burton amendment. fairly and unwisely cut foreign assistance to India has established a process to receive Mr. ACKERMAN. Mr. Chairman, I India. As this body has done repeatedly in the and resolve complaints of human rights viola- yield 11⁄2 minutes to the gentleman past, I urge my colleagues to reject this tions. from New Jersey (Mr. PALLONE). amendment. Those complaints are investigated. Mr. PALLONE. Mr. Chairman, I just Adoption of this amendment would send the And when officials and members of security find it so sad to listen to my colleagues wrong message at the wrong time. We have forces are found to have violated human in support of this Burton amendment recently witnessed the de-escalation of a dan- rights, India has taken swift and sure action. spread inaccurate information about Indeed, the human rights violations that Mr. gerous confrontation between the world's two India which has tried so hard to deal BURTON alleges, no longer exist. effectively with human rights problems newest nuclear powers, India and Pakistan. India is a strong and vibrant democracy, Rather than praising India for the restraint it within the country. with an independent judiciary, a free press The true human rights problem in demonstrated during the recent situation in and an active voting population. Jammu and Kashmir, the Burton amendment Kashmir is that of a violent separatist More than 650 million citizens are expected movement supported by outsiders, sup- would rebuff India and, in targeting humani- to vote in India's elections later this year. ported by Pakistan, carried out by the tarian aid, would punish the poorest and need- There is no other nation that can boast of followers of bin Laden and other ex- iest people in a country where 500 million live voter participation by that many citizens, and tremist terrorist leaders destroying the below the poverty line. few that can match India's voter turnout which homes and lives of thousands of peace- We are all aware of tensions in our relation- ranges around two-thirds of its voters. loving Hindus and Muslims. ship with India because of the nuclear tests And, there is no other nation that can boast In Kashmir, and Kashmir is part of fourteen months ago. Over the past year, of its economic ties to the United States in India, the Indian security forces are however, we have made significant progress comparison to India. trying to maintain order and protect in intense bilateral talks between the United U.S. business in India has grown at an as- all the citizens of Kashmir, Muslims States and India. India has expressed readi- tonishing rate of nearly 50 percent a year and Hindu alike, just like we would do ness to cooperate in developing a multilateral since 1991, from $500 million then, to more in any State of the United States. agreement to halt production of fissile mate- than $12 billion now, with the United States I heard mention of Punjab. In Pun- rials and to sign the Comprehensive Test Ban becoming India's largest trading partner and jab, there is a Sikh government elected Treaty. We need to be encouraging this sort of largest investor. by the Sikhs themselves which has progress. The Burton amendment could stop it Some one hundred of America's Fortune been in place for over 21⁄2 years. cold. 500 companies have invested in India, opened Mr. Chairman, I heard mention of India has made significant progress in liber- offices and plants there. Dalits. The President of India is a alizing her economy and increasing trade and With so many large American companies Dalit, an untouchable. The President of investment. The momentum created by these that have now invested in India and opened India. The Indian Constitution specifi- reforms would also be impeded by passage of operations there, it would be foolish to break cally provides that the caste system is the Burton amendment. United States busi- those ties, ties that we have so diligently outlawed and not recognized in that nesses are India's number one overseas in- strived to assemble. state. vestor. Some 107 Fortune 500 countries are It is false and misdirected to say that India b currently invested in India, and United States is not our friend. 2100 high tech firms see India as one of the world's I would remind my colleagues, Mr. Chair- We have a national human rights most important developing markets. man, that our Government and the Govern- commission in India that has been August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6821 lauded by the State Department and those specifically in India in this in- with trade between our two countries exceed- other international agencies for going stance would be cut off. We are talking ing $10 billion annually. after human rights violations, bringing about immunizations against commu- Deep cuts in humanitarian assistance to people to justice, jailing people who nicable diseases, basic education, nu- some of the world's neediest people are not committed those kinds of violations. trition programs, programs relating to the way to go about addressing the gentle- The gentleman from Indiana (Mr. HIV/AIDS. man's concerns and advancing American in- BURTON) talked about a loan to Iraq. I urge opposition to the amendment terests. Accordingly, this member urges his The loan to Iraq, from what we under- of the gentleman from Indiana (Mr. colleagues to reject the Burton Amendment. stand, we have talked to the embassy, BURTON). Mr. ACKERMAN. Mr. Chairman, I is nothing more than basically for hu- India is already subject to a wide range of yield 1 minute to the gentleman from manitarian purposes. It is just totally sanctions in accordance with Glenn Amend- Florida (Mr. HASTINGS). inaccurate information that we are ment to the Arms Export Control Act. As a re- Mr. HASTINGS of Florida. Mr. Chair- getting on the other side. sult, all military assistance and even the com- man, I thank the ranking member for Mr. BURTON of Indiana. Mr. Chair- mercial sale of defense articles are prohibited. yielding me this time. This marks the man, I yield myself such time as I may All foreign assistance except humanitarian as- fifth year that the gentleman from In- consume. sistance has been terminated. diana (Mr. Burton) has submitted an Inaccurate information. Human While this Amendment does not affect the amendment that unjustly singles out Rights Watch. My colleagues, I hear $81 million in P.L. 480 Title II food aid pro- India and hopefully the fifth year that them quoting from them all the time. vided by the United States, it does directly af- we decide to vote it down. Amnesty International, I hear my col- fect other kinds of humanitarian aid. Utilizing The alleged claims of the gentleman leagues quoting them all the time. the waiver process, the remaining U.S. devel- from Indiana (Mr. BURTON) of India’s They quote them all the time. They sit opment aid program responds other non-food human rights violations completely ig- over there, and they smile and they humanitarian aid which supports to two key nore the last two State Department laugh. U.S. national interests: (1) The global issues human rights reports that praise India Amnesty International Human of population growth, infectious diseases and for its considerable progress in the Rights Watch, the 1999 report that just environmental conservation; and (2) the hu- human rights area. Supporting the Burton amendment came out, 1999 report: gang raping manitarian concerns of alleviating poverty and would not just weaken our dialogue women, gang raping women, torturing supporting child survival. with India but would undermine the people, throwing people in canals with This Amendment would directly affect these strong economic relationship that both their hands tied behind their back and poverty alleviation and basis development pro- of our countries have achieved. their feet tied, drowning them; and grams. It would cut HIV/AIDs containment and The United States is India’s largest that is an error? Come on, guys. cut immunizations against such communicable trading partner and largest investor. My colleagues are obviously con- diseases as polio and tuberculosis. It would U.S. investment has grown from $500 cerned about constituents of theirs cut basic education and nutrition programs. million per year in 1991 to more than who lobby them hard. I understand The recipients of this aid, mostly poor Indian $12 billion in 1999. Many large Amer- that. But the fact of the matter is women and children, have absolutely nothing ican companies have seen the economic these things are going on, and we are to do with their government's nuclear prolifera- opportunities in India and have in- not doing a damn thing about it. tion, human rights or foreign trade policies. vested heavily there. Mr. Chairman, I reserve the balance Their lives should not be further jeopardized We clearly need to sustain and fur- of my time. for the sake of making a symbolic political ther strengthen the momentum that Mr. CALLAHAN. Mr. Chairman, I statement. has been gained in U.S.-Indo relations, yield 1 minute to the gentleman from Our national interests in South Asia go be- instead of proposing legislation that Nebraska (Mr. BEREUTER), who is yond poverty alleviation. With India's and Paki- merely alienates an important ally. chairman of the Subcommittee on Asia stan's successful testing of nuclear weapons, Mr. Chairman, I rise today in opposition to and the Pacific. it is in our own short term and long term na- the amendment offered by the gentleman from (Mr. BEREUTER asked and was tional security interests to bring both South Indiana. This marks the fifth year that Mr. given permission to revise and extend Asian countries into the regime of international BURTON has submitted an amendment that un- his remarks.) arms control agreements. The chances for justly singles out India, and hopefully, the fifth Mr. BEREUTER. Mr. Chairman, I and consequences of nuclear warfare in this year that we decide to vote it down. rise in opposition to the amendment. very volatile region are too great to belittle Mr. BURTON's alleged claims of India's The amendment, according to the in- with symbolic political statements aimed at human rights violations completely ignore the tent of the gentleman from Indiana only party. In just the past few months, we last two State Department human rights re- (Mr. BURTON), would cut one-quarter of have seen tensions escalate to a very dan- ports that praise India for its considerable the development assistance aid to gerous level due to Pakistan's irresponsible progress in this area. The Burton amendment India. This would affect, of course, not provocations in Kashmir. The fact that India would substantially cut cricial U.S. humani- only American national interests, but reacted in a relatively measured and inter- tarian aid to India and would send the wrong some of the neediest people in the nationally responsible way certainly helped message from the world's first democracy to world in South Asia. contain and diffuse the conflict. While this the world's largest. Make no mistake about it, the pur- Member doesnot support direct linkage be- With the recent Pakistani incursion across pose of the gentleman’s amendment is tween humanitarian aid and regional conflict the Line of Control into Jammu and Kashmir, punitive. It is designed to show our dis- resolution, to arbitrarily cut humanitarian as- India was praised by both the Administration pleasure and our disapproval of the sistance to India given these recent positive and the International Community for the ex- government of India. But India, a na- actions by New Delhi would, indeed, under- traordinary restraint it displayed in confining its tion of a billion people, is too impor- mine the leverage we have and jeopardize our response to terrorist occupied territory. Mr. tant to American interests to threaten efforts to further engage India on critical nu- BURTON'S amendment has a peculiar way of or to punish in order to send a message clear proliferation issues that affect their own showing our support. or to show a pro-Pakistan tilt. Regret- national security. The government of India has worked hard to tably, despite his intent to the con- Human rights problems exist in India. It is address human rights issues. India has ar- trary, I have to submit that the gentle- appropriate for us to express concern about rested and prosecuted more than 100 individ- man’s amendment does not serve our this issue. However, cutting humanitarian as- uals associated with the recent string of reli- national interests, neither with regard sistance is not an appropriate or effective way gious attacks that occurred earlier this year to arms control nor in relationship to to influence human rights practices in India. and has passed laws to take action against human rights. On the contrary, it only punishes the poor in those officials that have committed human It cuts off all aid except Public Law India, who unfortunately, are often the actual rights violations. Truly, Mr. BURTON'S allega- 480 Title II when it comes to humani- victims of human rights transgressions. tions continue to be based on outdated and in- tarian aid. Some of the most important India is not our enemy. India is a friendly accurate information. things that we are trying to do to as- democracy. The United States continues to be Supporting the Burton amendment would sist the poorest people in the world and India's largest trade and investment partner not only weaken our dialogue with India but H6822 CONGRESSIONAL RECORD — HOUSE August 2, 1999 would also undermine the strong economic re- a terror to that entire region. He is a Today, India is the world's largest democ- lationship that both of our countries have blot on the world. India says they want racy with 950 million people. For half a cen- achieved. The United States is India's largest to help them, and we are not going to tury India has struggled to overcome colo- trading partner and largest investor. U.S. in- send a signal? Let alone the human nialism, religious and ethnic conflicts and all of vestment has grown from $500 million per rights violations. the problems of underdevelopment. year in 1991 to more than $12 billion in 1999. Mr. Chairman, I reserve the balance India has made tremendous progress in try- Many large American companies have seen of my time. ing to address its human rights problems. the economic opportunities in India and have Mr. CALLAHAN. Mr. Chairman, I India has instituted a process to receive com- invested heavily there. yield 2 minutes to the gentleman from plaints, initiate investigations of all claims, and We clearly need to sustain and further New York (Mr. GILMAN), the chairman passed laws to take action against those offi- strengthen the momentum that has been of the Committee on International Re- cials and members of security forces that have gained in U.S.-Indo relations. Instead of pro- lations. committed human rights offenses. The Burton posing legislation that merely alienates an im- (Mr. GILMAN asked and was given amendment would eliminate U.S. assistance portant ally, I suggest the esteemed member permission to revise and extend his re- to help sustain these achievements. from Indiana first take the time to travel to marks.) Mr. Chairman, I know that India is not a per- India and see its progress first-hand. Mr. Mr. GILMAN. Mr. Chairman, I rise in fect country. However, and perhaps unfortu- Chairman, I urge all of my colleagues to help opposition to the amendment offered nately, there are none, or at the very least, India continue its progress in spreading the by the gentleman from Indiana (Mr. none that I am aware of. Even in our own ideals of democracy by voting no to the Burton BURTON), cutting development assist- country, one whose democracy is much older, amendment. ance to India. one that is more technologically advanced, we Mr. BURTON of Indiana. Mr. Chair- Democratic India is in a tough neigh- are still trying to form a more perfect union man, I yield myself such time as I may borhood. China occupies Tibet to In- and so is India. consume. dia’s north. China sells nuclear and So why, why reduce or cut funding to the Mr. Chairman, I would just like to ballistic technology to Pakistan on In- world's largest democracy? Why cut funds to point out that there are seven multi- dia’s west, and China has sold over $1 a nation that is working hard and struggling to lateral and 13 bilateral donors that pro- billion worth of arms to the drug-run- pull itself out of the depths of poverty and de- vide assistance to India. ning Burmese military junta to India spair? Why cut back and or cut out the The United States is the seventh east. Our Nation should be strongly progress that is being made? W.E.B. Dubois largest donor after the World Bank, the supporting India, the only truly demo- is reported to have once said, when asked Asian Development Bank, the Euro- cratic nation of the subcontinent. about the lack of progress being made by Afri- pean Union, Japan, Germany, and the Passage of the Burton amendment can Americans towards becoming a part of United Kingdom. would undercut our strategic goals of mainstream America, Dubois is reported to So there is a lot of people that are supporting peace and stability through have said that ``a people so deprived should giving money to India. But nobody is the promotion of democratic govern- not be expected to race with the wind,'' per- sending any kind of a message to them ments in the region. haps one could say that a young democracy that they ought to clean up their act as In regards to the point of the gen- like India should not be expected to progress far as the human rights tragedies that tleman from Indiana (Mr. BURTON) that at a much faster pace. are going on. India will enter into a commercial ar- They are making progress in the human Christians are dying in Nagaland. rangement with Iraq, I received infor- rights arena, but have not quite gotten there Dalits, the blacks in India, are being mation from the State Department yet. They are moving in the right direction and persecuted and are dying because of In- that the Indian ministry of external af- I say, let's help and not hinder them, let us dian repression, because of the caste fairs has issued a statement that India support and not oppose them, let us fund and system. In Punjab, Sikhs are dying and will only enter into contracts approved not cut them. being tortured. In Kashmir, women are by the U.N. sanctions committee on Mr. Chairman, I have lived long enough to being gang raped and men are being Iraq. understand the African proverb that says when tortured and dying. People are going to Accordingly, I urge my colleagues to elephants fight it is the grass that suffers, in jail without proper judicial pro- vote against the Burton amendment. this case it is the people, 950 million of them. ceedings. Mr. ACKERMAN. Mr. Chairman, I Today let us make a stand for the 950 million We ought to at least send a signal. yield 1 minute to the gentleman from people who need our help. That is all we are saying. They are get- Illinois (Mr. DAVIS). Vote ``No'' on the Burton amendment and ting money from all over the world. A (Mr. DAVIS of Illinois asked and was ``Yes'' for people of India. signal. The signal is going to be sent given permission to revise and extend Mr. CALLAHAN. Mr. Chairman, I tonight whether we pass this amend- his remarks.) yield 11⁄2 minutes to the gentleman ment or not because we are talking Mr. DAVIS of Illinois. Mr. Chairman, from Florida (Mr. MCCOLLUM). about it. I want to thank the gentleman for (Mr. MCCOLLUM asked and was The Indian ambassador came to me yielding me this time. given permission to revise and extend and did not want me to introduce this India is the world’s largest democ- his remarks.) amendment because of what is going on racy, and I agree that she is not a per- Mr. MCCOLLUM. Mr. Chairman, I over there right now. But somebody fect nation. But I really do not know rise to oppose the Burton amendment said to me a little while ago, what any perfect nations. this evening, as I have done several about the signal this is sending because India is a young democracy, much times over. A very similar amendment of the chaotic situation that is going younger than our very own. We still to make the same type of point was de- on up there on the border between have problems with human rights in feated in 1997 by a vote of 82 to 342 in Kashmir and Pakistan or India and America. But India is moving, moving this House, and I would hope that this Pakistan? positively and progressively to try and amendment would be defeated by a But what about the signal that was overcome some of the difficulties of a similarly wide margin. sent when they were going to give $25 country that has been colonized, a The reason I feel this way and so million to Iraq just the other day? country steeped in poverty, a country strongly is because it is our national When the Indian ambassador was in my that is seeking, working, struggling to security interest for the United States office, they were planning to give $25 overcome. Let us not take them back. to have a strong relationship with million to Iraq in violation of the U.N. Let us help them, not hurt them. India. embargo. Does not anybody care about There is an old African proverb that We do not need to be showing the that? says ‘‘When elephants fight, the grass kind of vote that a vote for this amend- Do we want them to support and gets hurt.’’ Well, India will be hurt, 950 ment would do right now when we are work with Saddam Hussein? They said million of them. Let us help them, not having the best relationships we have they are planning to work with him in hurt them. ever had with India in the entire his- developing oil fields in southern Iraq. Mr. Chairman, I rise in support of India and tory of the two countries; at a time Saddam Hussein has not changed. He is against the Burton amendment. when India is sharing a common fight August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6823 with us against terrorism, terrorism All I can say is we are not talking cross that off and do not have annex- spawned by radical Islamists in that about destabilizing or causing a prob- ation to Pakistan on the agenda. Let region of the world which do terrorist lem in India right now. What we are them vote either to join India or to be- acts, not only in India, but all over the talking about is sending a message to come an independent state. They will world, and particularly against our in- them. We are talking about sending a not even agree to that. terests in many parts and maybe message to them that human rights If Kashmir were located in Europe or against us ourselves; at a time when violations, that gang rapes by Indian in Yugoslavia, we would all be con- China is a growing presence that we soldiers who are occupying, imposing cerned about the denial of self-deter- are not quite sure of and India provides martial law on Kashmir and Punjab mination by the people of Kashmir. It a democratic ballast in that part of the will not be tolerated. has gone on for decades now and no- world; at a time when India has just I am not saying sever relations with body seems to care about the fact that rebuffed the Pakistani incursion across India. I am not saying that we should the world’s largest democracy, and the line of control in Kashmir and, not do business with India, trade with India likes to call itself the world’s under very extreme pressure of inva- India. I am saying we should send them largest democracy, and I applaud de- sion, did the right thing and limited a strong signal like we should send to mocracy in India, but it has great limi- itself in restraint and, in the end, pre- China. We do not want espionage from tations and it is totally blind when it vailed. I think this is a time to reward China. We do not want them stealing comes to democracy for Kashmir. India, not to attack it. our nuclear secrets in our nuclear labs. Kashmir is not permitted to exercise I personally have spoken with the In- We do not want them trying to influ- the simple right to vote. dian ambassador within the past week, ence our elections, like we do not try Now we have a situation where the and I am very aware that the activity to influence theirs. We do not want situation has escalated because these level involving the question of the aid India to violate human rights, or two powers, which dispute about a to Iraq is fully within the United Na- China. number of things but mainly about tions’ parameters. So we should send signals to those Kashmir, are now nuclear powers. They There is nothing involved about countries around the world where that are nuclear powers. And I hate to say, human rights that has not been hashed occurs. We are supposedly the super- but as new nuclear powers or amateur over before. The reality is, yes, there power. We are supposedly the moral nuclear powers, they may rush into are human rights violations; but the compass in this world. If we are the something and cause havoc in that part reality is our State Department says it moral compass, then at least send a of the world. And of course, once we is improving, and it says so in its most signal to them. start using nuclear weapons, we have a current report. If we cut off just $11 million, and we problem with the atmosphere, we have Mr. ACKERMAN. Mr. Chairman, I did vote for that one year. We did pass a problem with the ashes being blown yield 30 seconds to the gentleman from that one year not too long ago, because and radioactivity, all kinds of things NDREWS). New Jersey (Mr. A can be set off by a war over Kashmir (Mr. ANDREWS asked and was given I do remember debating Steven Solarz between Pakistan and India. permission to revise and extend his re- on this subject. I think sending that I think that if we remove Kashmir as marks.) signal was the reason that India un- Mr. ANDREWS. Mr. Chairman, I rise leashed all of its resources that they a point of contention between India in opposition to the Burton amend- possibly could to lobby this body so and Pakistan, we would take a giant ment. There is no higher priority in that we would not ever do it again. step toward promoting peace in that U.S. foreign policy than checking the They evidently have been fairly suc- part of the world and toward avoiding potential of aggression by the People’s cessful. a catastrophe which would pull in Republic of China. There is no greater But the feeling I have that is so many other nations. interest in checking that potential ag- strong and the reason I bring this up Now, I was all in favor of doing what gression than the promotion of a sta- year after year is because I cannot go we did in Kosovo, because I thought it ble, secure, and democratic India. to sleep at night when I know that was important to establish a new As the gentleman from Illinois (Mr. there are gang rapes taking place, peo- moral order and to send a message to DAVIS) just said, no, India is not per- ple being tortured, people being put in predators like Slobodan Milosevic. But fect. No one is. But India is essential to jail for no good reason other than they India does not have any evil person we the future long-term interests of the do not like what is going on when we can personify in the case of Kashmir. United States. are supposed to be the people who real- But they have a long-term policy, a This amendment takes us in the ly believe in freedom, democracy, and long-term policy of just denying the wrong direction. It should be defeated. human rights. right to self-determination to the peo- Mr. BURTON of Indiana. Mr. Chair- Mr. Chairman, I yield such time as he ple of Kashmir. Who can justify that? man, I yield myself such time as I may may consume to the gentleman from And why not send a signal to India? consume. New York (Mr. OWENS). Why not do something? Mr. Chairman, the logic of some of Mr. OWENS. Mr. Chairman, I have I do not hear the United Nations de- the arguments tonight kind of eludes listened to the debate for the last 10 bating it. I do not hear anybody pro- me. One of my colleagues was talking minutes, and I am appalled by the fact posing a sense of the Congress resolu- about India being such an essential in- that the debate is taking place without tion. Why are we ignoring the problem gredient in world peace and, for that any real examination of the question of of Kashmir? Why do we let it go on and reason, we ought to do everything we Kashmir. on for decades? Are we waiting for an explosion? Are we waiting for some- can to work with them. b The logic that we have used with 2115 thing more serious that we will be China is that China is so big, and they I have heard the various reasons that drawn into? Are we waiting when we are a nuclear power, we have to stay the gentleman has given for sending a will have to take sides because of geo- engaged with them. We cannot criticize signal to India, but the reason that all politics, that China may be on one side, them. We cannot do anything but ap- of us should be concerned about send- therefore we have to get on the other pease them because it might lead to a ing a signal to India is that the Kash- side? Why do we not proceed with a conflict down the road. As a result, we mir bind that we have been in for al- simple nonviolent solution. accept things like nuclear espionage; most 50 years is caused by the fact that People have said we should not have we accept things like illegal campaign India refuses to accept the simple route gone into Kosovo with bombs; we contributions coming to the United of Democratic self-determination for should not have gone into Kosovo with States. Kashmir. NATO; we should have had a non- Attitudes of appeasement usually do Kashmir is a large body of people violent solution. Here is an oppor- not lead to a solution. They lead to a who ought to have the right to vote as tunity for a nonviolent solution. And conflict. We saw that in World War II to what they want to do, whether they India, as a nation, has always been in when Lord Chamberlain went to Mu- want to be independent or join Paki- favor of nonviolence in many in- nich. stan, or maybe we will even let India stances. Gandhi was the founder of the H6824 CONGRESSIONAL RECORD — HOUSE August 2, 1999 whole nonviolent movement. Why do tional and regional political parties We have heard talk of the Iraqi po- we not send a signal to India that we will be participating in the elections. tential loan, and yet that loan would would like to see them change their India maintains an independent judici- go through only with the approval of ways and let Kashmir have a vote on ary, a free press, and diverse political the U.N. Sanctions Committee, which self-determination. Any signal would parties. The India press corps actively means that India will do nothing with- be a good signal in my opinion. insists in investigating human rights out the consent of the United States I certainly will support the gentle- abuses on a regular basis. which has a veto on that committee. man’s amendment, because nothing So I understand my colleague. Every We are told that India should just else is being done. year he comes to the House floor and allow Kashmir to secede, but there Mr. CALLAHAN. Mr. Chairman, I offers this amendment. But in this have already been elections in Kash- yield 11⁄2 minutes to the gentleman case, I think his differences with the mir. The chief minister is a Muslim. from Florida (Mr. STEARNS). government of India should not harm And we should hesitate a minute before (Mr. STEARNS asked and was given the Indian people, especially those who we announce that every country should permission to revise and extend his re- are in need of the aid. allow any province at any time to hold marks.) Mr. ACKERMAN. Mr. Chairman, may a referendum on secession, because Mr. STEARNS. Mr. Chairman, I rise I inquire as to the time remaining? when South Carolina wanted to secede, to oppose the amendment of my good The CHAIRMAN. The gentleman that was a rather bad idea. 1 friend the gentleman from Indiana (Mr. from New York (Mr. ACKERMAN) has 6 ⁄2 The Burton amendment is the wrong ap- BURTON). minutes remaining, the gentleman proach at the wrong time. In the wake of the 1 Without question, the U.S. relationship with from Indiana (Mr. BURTON) has 1 ⁄2 min- recent Pakistani incursion across the line of India has been undergoing tremendous im- utes remaining, and the gentleman control, the U.S. and India have a new oppor- 1 provements in the last decade. With the rising from Alabama (Mr. CALLAHAN) has 4 ⁄2 tunity to build a broad-based relationship. In- influence of Communist China over Asia, it is minutes remaining. stead of applauding India for the admirable re- Mr. ACKERMAN. Mr. Chairman, I in the vital national security interest of the straint shown in the recent Kashmir crisis, this yield 1 minute to the gentleman from United States to solidify our friendship and co- amendment would punish India by cutting cru- operation with india. New Jersey (Mr. HOLT). Mr. HOLT. Mr. Chairman, I thank cial humanitarian assistance. Not only is India directly threatened by the The Burton amendment would substantially the gentleman for yielding me this belligerent government in China, Pakistan cut critical U.S. humanitarian aid to India. time, and I rise in opposition to the gave military assistance to a band of terrorists These programs limit the spread of HIV/AIDS, Burton amendment. who crossed into indian territory of Kashmir As in the past, the gentleman from improve access to reproductive health serv- and began a military assault. ices, and provide supplemental feeding and Indiana (Mr. BURTON) has cited human The Indian military responded with equal rights abuses in India as the reason for basic health services to mothers and children. force and fought to defend its territorial integ- his legislative initiative. While human A similar amendment was defeated in 1997 by rity. India was praised for demonstrating re- rights abuses have been uncovered in a vote of 342±82. No similar amendment was straint and confined its military activities to re- India, it is important to note the sig- offered in 1998. capturing its territory that was occupied by nificant progress that India has made India is addressing the human rights viola- Pakistani-backed military forces. By adopting a in resolving human rights problems. tions cited by Mr. BURTON. The last two State proper and proportionate military response to As noted in the State Department’s Department Country Reports on Human the violation of india's borders, India took human rights report on India, India is Rights praised India for making substantial steps to ensure that the situation did not spin addressing its human rights problems progress in the area of human rights and for out of control and escalate further. because it is a democracy, as noted, the its independent National Human Rights Com- The Burton Amendment would substantially world’s largest. Although the country mission. The Government of India has also cut critical U.S. humanitarian aid to India. Ex- has confronted many challenges since continued to allow the International Committee amples of humanitarian aid projects include: gaining independence in 1947, it has of the Red Cross to visit prisons in Kashmir. AIDS control, population and disease control, stayed true to its founding principles. As further evidence of progress on human and rural development. For 50 years, India has been striving rights, India has arrested and prosecuted In regard to trade, the U.S. is India's largest to build a civil society, to institu- more than 100 individuals associated with the trading partner and largest investor. U.S. in- tionalize democratic values of free ex- recent string of religious attacks that occurred vestment has grown from $500 million per pression and religion, and to find earlier this year. In addition, India has passed year in 1991 to $12 billion in 1998. Despite strength in the diversity of its land and laws to take action against those officials and the collapse of various economies in South- its people, despite such things as out- members of security forces that have com- east Asia over the last two years, the indian side insurgence in Kashmir. mitted human rights violations. economy continued to grow at a rate of 6% in I do not see why we would want to India is under constant terrorist attacks from 1998. jeopardize this humanitarian aid. With- the followers of people like Osama bin Ladin, India has been criticized in the past holding this aid would punish the same who have training camps set up across India's for human rights violations. The last people this ill-conceived amendment borders in Pakistan. Groups like Harkat ul- two reports on human rights from the seeks to protect, adequate nutrition, Mujahidin, an organization officially designated State Department praised India for the shelter, and education. These are as terrorist, by the State Department, routinely substantial progress the country has human rights too. attack Indian citizens with car bombs, sniper made in the area of human rights and, I oppose the amendment, and I urge attacks, kidnappings and wholesale slaughter of course, as mentioned the creation of my colleagues to also oppose it. of towns in an attempt to disrupt any kind of the independent National Human Mr. ACKERMAN. Mr. Chairman, I peace in the Indian state of Jammu and Kash- Rights Commission. yield 1 minute to the gentleman from mir. As many of my colleagues know, this California (Mr. SHERMAN). The greatest violations of human rights in is the world’s largest democracy. Elec- (Mr. SHERMAN asked and was given Kashmir are being committed by the Pakistani tions have been held in this country in permission to revise and extend his re- sponsored terrorist groups which in the last a fair manner and they have made tre- marks.) several months have targeted dozens of en- mendous strides towards their democ- Mr. SHERMAN. Mr. Chairman, I rise tirely innocent civilians, from participants in racy. In 1997, in the State of Punjab in opposition to the Burton amend- wedding parties to passengers on buses. open and democratic elections were ment as I have in the past. India is a strong and vibrant democracy that held and there was a 67 percent turn- We have heard India attacked for features an independent judiciary, free press out. Elections in India are regular. spending money on its own defense and and diverse political parties. In fact, the Indian They are contested by numerous par- yet it is subject to attack by the Paki- press corp, among the most active in the ties and scrutinized by a free press. stani army in an action of aggression world, assists in investigating human rights Later this year, India will conduct as Kashmir. And just as importantly, abuses, as do Indian non-governmental orga- the largest exercised democracy in the China, one of the world’s emerging nizations. world. More than 250 million people are powers, occupies a small part of India’s The U.S. is India's largest trading partner expected to vote. More than 100 na- territory. and largest investor. U.S. direct investment August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6825 has grown from $500 million per year in 1991 embargo. They were going to violate from Indiana comes to the floor as a to $12 billion in 1998. Despite the collapse of the U.N. sanctions. champion of human rights. Does he not various economies in Southeast Asia over the Let me just end by saying that the know that in Kashmir there is an elect- last two years, the Indian economy continued reason I come down here year after ed government, democratically elected; to grow at a rate of 6% in 1998. In the first year is not because I like to argue with a government that is under continuous half of 1999, new foreign investment in India my colleagues, because I know the assault from secessionist terrorists totaled $600 million. other side outnumbers me. And though who are responsible for numerous seri- Many large American companies have in- I really liked Cyrano de Bergerac, ous abuses, including extrajudicial exe- vested in India and opened plants and offices where he fought hundreds of people by cutions, torture, kidnapping and extor- there. More than 100 of the U.S. Fortune 500 himself and emerged victorious, I come tion? have invested in India. Among those compa- down here with no false illusions. I Mr. Chairman, the fountainhead of nies are General Electric, Boeing, AT&T, know when I come down, my colleagues human rights violations in Kashmir is Citigroup, Morgan Stanley, Ford Motor Com- will beat me into the ground. But I state-sponsored terrorism from across pany, Microsoft, IBM, Coca Cola, Pepsico, Eli think it is important that we bring the border in Kashmir. Just recently, Lilly, Merrill Lynch, McDonnell Douglas, US this issue up, because human rights are we bore witness yet again to the fact West, Bell Atlantic, Sprint, Raytheon, Motor- being violated in Kashmir and Punjab; that India was being victimized by an ola, Amoco, Hughes, Mobil, and Enron. because U.N. agreements have been egregious invasion of forces from Later this year, India will conduct the largest violated, going back to 1948 and the across the border in Pakistan. This in- exercise of democracy in the history of the plebiscite that was agreed to. vasion would have become a full- world. More than 250 million people are ex- All I can say to my colleagues is that fledged war but for the commendable pected to vote and more than 100 national someday I hope that we will see fit to restraint shown by New Delhi. India and regional parties will be participating in the send some kind of signal to India that has demonstrated that it is a respon- elections. will bring about some positive change. sible nuclear power, that it does not The best way for us to help India continue Mr. Chairman, I ask unanimous con- get provoked easily, and it knows that to improve its human rights record is to en- sent to withdraw my amendment. real power means acting with re- gage in positive and constructive dialogue, The CHAIRMAN. Is there objection straint. one democracy to another. Not with punitive to the request of the gentleman from b 2130 sanctions and cuts in assistance. Indiana? The Burton amendment will run counter to Mr. ACKERMAN. Reserving the right India should be recognized for its ex- the progress that has been made in bilateral to object, Mr. Chairman, I will not ob- ceptional conduct during the recent relations between the U.S. and India. During ject if we do that after the closing Kargil aggression. This amendment of the past year, U.S.-India relations have been statements. the gentleman from Indiana (Mr. BUR- marked by increased dialogue on nuclear non- Mr. BURTON of Indiana. Mr. Chair- TON) does just the opposite. proliferation, a better understanding of India's man, I withdraw my request to with- Who are the people terrorizing that security concerns, and an increase in U.S.- draw the amendment. he speaks of? These people are terror- India trade and investment. India and the The CHAIRMAN. The gentleman izing the peace-loving people of the In- United States worked very closely to repel the withdraws his request. dian state of Jammu Kashmir, Hindus Pakistani regulars and Pakistani-backed terror- The gentleman from New York (Mr. and Muslims alike. They are the vic- ists from the Indian side of the Line of Control. ACKERMAN) has 61⁄2 minutes remaining. tims of terrorism for the last several The momentum gained in U.S.-India rela- Mr. ACKERMAN. Mr. Chairman, I years. It is terror that is unbridled and tions needs to be sustained and strengthened. yield myself such time as I may con- violent, and it is let loose by the A vote for the Burton amendment would send sume. Mujahidin members brought in from the wrong signal to the people of India. (Mr. ACKERMAN asked and was all over the world from overseas and Proponents of the Burton Amendment will given permission to revise and extend aided and given arms by the Paki- make note of reports that India has offered his remarks.) stanis. That is the real cause for Iraq a $25 million line of credit. India has said Mr. ACKERMAN. Mr. Chairman, I human rights abuses in Kashmir. that they will only do this in the context of UN think we are seeing a rather unique oc- Mr. Chairman, the real violators of guidelines on the Iraqi sanctions. That means currence here on the floor today. In- human rights in Kashmir are the nu- they will need unanimous approval by the deed, we usually enjoy doing battle merous terrorist outfits owing alle- Sanctions Committee, which is essentially the with the gentleman from Indiana (Mr. giance for the fundamentalist religious Security Counsel, before they will go forward BURTON). He sometimes is really a lone groups. It is these religious fanatics be- with the loan. The US can stop it and India will warrior on this issue, the over- longing to such groups as the Harkat- abide by the decision of the UN. whelming majority of the House of ul-Mujahideen, recruited, trained and Mr. BURTON of Indiana. Mr. Chair- Representatives voting against his unleashed by Osama bin Laden and his man, I yield myself the balance of my amendment. But, nonetheless, we have terror network, who are fanning the time, and I think I will make just a never come to the point where we have flames of human rights violations in couple of points and then I will with- forced him into a full retreat on the Kashmir. The Indian troops that are draw the amendment, because I have floor of the House, and that is too bad, there are there to maintain the peace been convinced that since 2 years ago because we do appreciate hearing his and stability of their State of Jammu they changed the way the develop- point of view, in the minority though and Kashmir. mental assistance was provided and it might be. The rights that the gentleman from that there has been a misprinting or The gentleman’s amendment is being New York (Mr. BURTON) would seek to miswriting of the amendment, which I withdrawn because it is flawed, as is protect are the rights of Mr. Bin truly regret, but I do not think I will his logic, as are his arguments. The Laden, who has blown up U.S. embas- get unanimous consent to change it, so gentleman’s intent, as it usually is, is sies all over the world. Is that who we I will not even ask. to come to the floor, as he has time are concerned about? I think not. It is Mr. Chairman, the previous speaker and time again, to bash India. And his these terrorist groups and training talked about India’s minister of oil and intent here was to cut aid. And, in- camps that we have to target, not gas, and he said that India was only stead, the flawed amendment would in- Democratic India, as violators of going to allow that loan if the U.N. deed allow an increase in aid to be sent human rights. said that it was all right. The fact of to India. Instead of sending a letter India is a beacon of unity and diver- the matter is India’s minister of oil bomb, had his amendment passed, he sity. It is a multi-ethnic, multi-lin- and gas, and I am quoting him now, ac- would have sent a Valentine’s card. gual, multi-cultural, and multi-reli- knowledged the grant would violate The gentleman’s intent was basically gious civilization with a commendable U.N. sanctions but said his country to hurt the most vulnerable people of record of tolerance. would never allow a friend like Iran to the Indian society. Our assistance pro- This is not the time, as the gen- suffer. So the intent of India was very grams help children and the elderly tleman of Indiana (Mr. BURTON) recog- clear. They were going to violate the and pregnant women. The gentleman nizes, to bring this amendment up. It is H6826 CONGRESSIONAL RECORD — HOUSE August 2, 1999 not the time to bash India and to re- Mr. BURTON of Indiana. Mr. Chair- reducing corruption in the commercial sec- ward Pakistan. It is not time to punish man, let me just close by saying to my tor and worked closely with the Government the victims and to reward the aggres- colleague, the gentleman from New of Colombia to strengthen the commitment of such Government to preserve and advance sors. York (Mr. ACKERMAN), that I am not in Mr. CALLAHAN. Mr. Chairman, how its democratic institutions. full retreat. Withdrawing the amend- (3) The flower industry of Colombia em- much time do I have remaining? ment was because of a technicality, ploys directly and indirectly approximately The CHAIRMAN. The gentleman and I think my good friend knows that. 125,000 people in Colombia. from Alabama (Mr. CALLAHAN) has 41⁄2 And we are good friends. We worked to- (4) The flower industry of Colombia has es- minutes remaining. gether on other issues. tablished numerous social programs for Mr. CALLAHAN. Mr. Chairman, I But the thing that motivates me is workers and their families such as nursing yield myself 21⁄2 minutes. 200,000 Christians that have died over care, day care, subsidized food and nutrition First of all, Mr. Chairman, and to my the past 30, 40, 50 years in Nagaland; programs, subsidized schooling, and most re- colleagues in the House and to those the 250,000 Sikhs that were killed in cently, a program and publication dedicated that might be watching on television, to reducing intra-family violence. Punjab in the last 15 years; the 60,000 (5) This publication is designed to if we were to have a vote on the floor Muslims that were killed in Kashmir in of this House tonight or anytime and strengthen family value and human rights the last 10 years; and the thousands of among the workers of the Colombian flower we would ask the Members of Congress Dalits, who are lower cast people, the sector. as to whether or not they condone blacks, who are mistreated and killed (b) SENSE OF THE CONGRESS.—It is the sense atrocities that are created anyplace in in India. of the Congress that the flower industry of the world by any people, it would be 435 Maybe we are jousting windmills Colombia should be recognized for its con- against. That is not really the question tributions to strengthening United States here. I do not know. But we have got to and Colombian relations by insuring strong here tonight. do what we think is right. I do not question the motives of the and healthy families, domestic stability, and So I would just like to say to my col- promoting good government in the demo- gentleman from Indiana (Mr. BURTON). league, we will be back another time to cratic nation of Colombia. As a matter of fact, I applaud him for fight this battle. And I am sure I will The CHAIRMAN. Pursuant to the bringing this issue to our attention, an have some formidable opponents like issue of great concern to him. But my order of the House of Thursday, July my colleagues over there, but we will observation is India is the largest de- 29, 1999, the gentleman from Florida do the best we can. mocracy in the world, and there are 300 (Mr. HASTINGS) and a Member opposed Just remember what Arnold each will control 5 minutes. million people who live in poverty in Schwartzenegger said, ‘‘I’ll be back.’’ that largest democracy. And 85 percent Mr. CALLAHAN. Mr. Chairman, I re- Mr. Chairman, I ask unanimous con- serve a point of order on the amend- of the monies that we appropriate in sent to withdraw my amendment. this bill goes to private, volunteer or- ment. The CHAIRMAN. Is there objection The CHAIRMAN. Does the gentleman ganizations who spend it on making to the request of the gentleman from from Alabama (Mr. CALLAHAN) also things better for the poverty stricken Indiana? seek to control the time in opposition people of India. Mr. ACKERMAN. Mr. Chairman, re- to the amendment? There are other monies that go to serving the right to object, I just want Mr. CALLAHAN. Yes, Mr. Chairman, India indirectly through this com- to understand that the gentleman from I do. mittee. For example, we fund UNICEF, Indiana (Mr. BURTON), under the unani- The CHAIRMAN. The gentleman and we also fund indirectly the Rotary mous consent request of last Friday I from Florida (Mr. HASTINGS) is recog- International, which is in the process believe, has the right to offer an nized for 5 minutes. today of immunizing every child in amendment, that this being withdrawn Mr. HASTINGS of Florida. Mr. Chair- India so there will not be a polio epi- does not give the gentleman the right man, I yield myself such time as I may demic there and we will help to eradi- to offer a different amendment, and consume. cate it. that that is not his intent. Mr. Chairman, I thank the chairman So I do not question the fact that the Mr. BURTON of Indiana. Mr. Chair- and the ranking member for their pa- gentleman from Indiana (Mr. BURTON) man, that is correct. tience with this amendment. is concerned. I do not question his mo- Mr. ACKERMAN. Mr. Chairman, I I rise today to offer the amendment tives at all. None of us agree with any withdraw my reservation of objection. to the Foreign Operations bill. The atrocities that are committed. The CHAIRMAN. Without objection, amendment is designed to recognize If we look at the situation that the the amendment offered by the gen- members of the Colombian flower in- gentleman from New York (Mr. OWENS) tleman from Indiana (Mr. BURTON) is dustry who have worked diligently to mentioned in Kosovo, the KLA is mur- withdrawn. improve the living standard of all peo- dering people in Kosovo. Yet, within There was no objection. ple in Colombia. the next few months, we are going to AMENDMENT OFFERED BY MR. HASTINGS OF Known by their countrymen as Grow- appropriate some more money for FLORIDA ers of Flowers, these business persons Kosovo for humanitarian efforts. Mr. HASTINGS of Florida. Mr. Chair- have been leaders in Latin American We have already appropriated hun- man, I offer an amendment. private industry in reducing corruption dreds of millions of dollars already, and The CHAIRMAN. The Clerk will des- in the commercial sector, while work- yet we still see the KLA now slaugh- ignate the amendment. ing closely with the Colombian Govern- tering the Serbs as they try to exit The text of the amendment is as fol- ment to bolster and advance its Demo- Kosovo and back into Serbia. lows: cratic initiatives. So it is not an indication of toler- Amendment offered by Mr. HASTINGS of Programs being supported and funded ance. It is not an indication of no con- Florida: by Growers of Flowers include corrup- cern. It is an indication of we are doing Page 116, after line 5, insert the following: tion reduction in the private sector, the right thing, in my opinion, by ap- SENSE OF THE CONGRESS RELATING TO the establishment of nursing care, day- propriating this small amount of COLOMBIAN FLOWER INDUSTRY care, subsidized food, nutrition, and money, of which only probably less SEC. ll. (a) FINDINGS.—The Congress finds educational programs, and a new pro- than $3 million goes to the Government the following: gram to eradicate domestic violence. of India and it is restricted in its use. (1) The flower industry of Colombia has At this time there is scarce good So, in my opinion, we are doing the been recognized on several occasions by the news coming out of Colombia. On this right thing with the money we have Department of State, the Drug Enforcement past weekend, we read and saw further agreed to give to the President in order Agency, and the United States Customs bombings taking place in Colombia. that he can handle the international Service for its substantive part in reducing The work that Growers of Flowers is drug-related and other criminal activities affairs as he sees fit, as the Constitu- while working closely with United States voluntarily doing on the ground is, tion says he will. law enforcement agencies to establish exten- however, a bright little light. Mr. Chairman, I yield the balance of sive anti-smuggling programs. I am offering this amendment this my time to the gentleman from Indi- (2) The flower industry of Colombia has evening to acknowledge the contribu- ana (Mr. BURTON). been a leader as a major private industry in tions of Growers of Flowers, and I hope August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6827 my colleagues will join me in this ef- So, hopefully, we will be able to find We must do all we can to encourage Co- fort. a way to recognize and also recognize lombia to seek alternatives to drug protection. Mr. Chairman, I reserve the balance our own industries here, as well. However, the ATPA has neither effectively re- of my time. Mr. CUNNINGHAM. Mr. Chairman, I rise not duced drug crop production in Colombia, nor Mr. CALLAHAN. Mr. Chairman, con- to oppose the gentleman's amendment, but to has it improved the economic situation of cut tinuing to reserve my point of order on address the concerns many of us have about flower growers in the United States. If we are the amendment, I yield such time as he the impact that the Colombian flower industry going to fight drug production at its source in may consume to the gentleman from is having on American flower growers. I won't Colombia, Members and the American people California (Mr. FARR). disagree with the gentleman that the Colom- should be informed that the Andean Trade Mr. FARR of California. Mr. Chair- bian flower industry has made progress in Co- Preference Act is not up to the task. man, I thank the gentleman for yield- lombia. However, I ask Mr. Speaker, at what Mr. HASTINGS of Florida. Mr. Chair- ing. cost? man, I ask unanimous consent to with- Mr. Chairman, I rise with concern In 1991, Congress enacted the Andean draw the amendment. I thank the over this amendment. The amendment Trade Preference Act (ATPA) which provided chairman and the ranking member for expresses a sense of Congress. Colombia for duty-free treatment, or reduced duties, on their indulgence. is in a very grave situation right now. many products, including fresh-cut flowers, im- The CHAIRMAN. Is there objection Its 40-year-old government guerrilla ported from the four South American Andean to the request of the gentleman from struggle and the latter day antidrug countries of Bolivia, Colombia, Ecuador, and Florida? struggle is critical. Peru. This legislation was proposed to pro- There was no objection. The Colombian flower growers have mote alternatives to coca cultivation and pro- The CHAIRMAN. The amendment of- been one of its most successful enter- duction by offering broader access to U.S. fered by the gentleman from Florida prises in Latin America, but not with- markets for legal products. Unfortunately, the (Mr. HASTINGS) is withdrawn. out help from our country. Our country act has not accomplished these goals. AMENDMENT OFFERED BY MR. TANCREDO allowed Colombian flowers into this Since the enactment of ATPA, it is clear that Mr. TANCREDO. Mr. Chairman, I country duty free. Colombian fresh-cut flowers have been the offer an amendment. There is a downside to the Colombian greatest beneficiaries. In 1992, Colombia ex- The CHAIRMAN. The Clerk will des- success, the injury done to U.S. flower ported $87.7 million worth of fresh-cut flowers ignate the amendment. growers. We might note that since 1992, to the United States. By 1995, Colombian ex- The text of the amendment is as fol- 50 percent of the U.S. carnation pro- ports increased to more than $374.4 million. lows: ducers have left the business, 39 per- This represents a 427-percent increase over Amendment offered by Mr. Tancredo: cent of the mini-carnation producers that 3-year period. Page 116, after line 5, insert the following: have left the business, 54 percent of the How does the growth in Colombian exports SEC. . None of the funds appropriated or U.S. chrysanthemum producers have compare with the domestic-cut flower indus- otherwise made available by this Act may be left the business, and 41 percent of the try? Domestic growers of roses and carnations provided for the United Nations Man and the rose growers have left the business. have been particularly hard hit. In 1996, Co- Biosphere (MAB) Program or the United Na- U.S. flower growers do not get ac- lombia exported approximately 1.7 billion tions World Heritage Fund. knowledged by U.S. Congress. Nor do roses and carnations to the United States. Co- The CHAIRMAN. Pursuant to the they get any Federal help. lombia now controls more than 50 percent of order of the House of Thursday, July Well, I am here to congratulate those the United States market for roses and 80 per- 29, 1999, the gentleman from Colorado businesses in Colombia that are doing cent of the carnation market. Overall, Colom- (Mr. TANCREDO) and a Member opposed well. I think that the flower growers bian flowers account for about 65 percent of each will control 5 minutes. are a good enterprise for Colombia. the United States fresh-cut flower market. Mr. CALLAHAN. Mr. Chairman, I re- Let us not forget or let us not do this Meanwhile, the total number of U.S. fresh- serve a point of order on the amend- praise without remembering that there cut flower growers has plummeted from 932 in ment. is a downside, because all of those Co- 1992 to 706 in 1995, a decline of over 10 per- The CHAIRMAN. The gentleman lombian flowers get into the United cent a year. Specifically, since the passage of from Colorado (Mr. TANCREDO) is recog- States free of duty. the ATPA, more than 52.52 percent of U.S. nized for 5 minutes on his amendment. Mr. CALLAHAN. Mr. Chairman, con- Carnation producers, 39.02 percent of U.S. Mr. TANCREDO. Mr. Chairman, I tinuing to reserve my point of order, I mini carnation producers, 53.95 percent of the yield myself such time as I may con- yield such time as she may consume to U.S. Chrysanthemum producers, 41.62 per- sume. the gentlewoman from California (Ms. cent of the U.S. Pompon Chrysanthemum pro- Mr. Chairman, the amendment I offer PELOSI). ducers, and 41.3 percent of the U.S. rose pro- today cuts nothing from the total ap- Ms. PELOSI. Mr. Chairman, I thank ducers have left the business. This impact on propriations for the Foreign Operations the gentleman for being so generous in the domestic-cut flower industry has been dis- appropriations, but it does prohibit any yielding. proportionately placed upon California, home use of funds for the Man and the Bio- I support both of the gentlemen. I of 58 percent of the United States cut flower sphere Program and the World Herit- think they are both right. I think that growers. age Convention. the Hastings amendment is one that is The ATPA provides the preferential treat- Currently, there are 47 Biosphere Re- an important one, and the recognition ment for Colombian fresh-cut flowers onlyÐ serves and 20 World Heritage Sites in that he seeks to present to the flower not for flowers from the Netherlands, or from the United States that in total make industry of Colombia is important. any other country. This preferential treatment, up a land area the size of my home But our colleague from California however, is not serving its other intended pur- State of Colorado. Creation of these re- (Mr. FARR) is also right. I do not think poses of reducing illegal drug production in serves and sites has significant impact that that recognition does damage to the nation of Colombia. on non-Federal lands outside the des- the flower industry in the U.S.; the free In 1996, an International Trade Commission ignated areas and in several instances market does. But we must be sensitive (ITC) report found that the ``ATPA had little ef- has caused major problems for private to those needs because we have a won- fect on drug crop eradication in the Andean land owners. derful flower industry in our country. region.'' This is a major understatement. in In fact, several States have passed But that does not negate the facts that fact, since ATPA's enactment illegal drug crop resolutions opposing U.S. Biosphere the gentleman from Florida (Mr. cultivation has increased in Colombia. The Programs. HASTINGS) presents. I thank him for his number of hectares devoted to coca cultivation Over the past several years in both leadership on this, especially at this in Colombia increased from 37,500 in 1991 to the United States and Australia, the sensitive time in Colombia’s future. more than 50,000 in 1995. The ITC report also weight levied by World Heritage Sites My colleague, the gentleman from found that ``[the] ATPA had a small and indi- has been brought to bear by private California (Mr. FARR), has been a rect effect on crop substitution during 1995.'' citizens carrying out the course of champion on that score. He has been a Thus, we have not achieved the intended goal their industry. friend of Colombia and is sensitive to of reducing drug crop cultivation by providing In Yellowstone National Park, the the concerns that are there, too. market access for alternative crops. environmental impact statement for H6828 CONGRESSIONAL RECORD — HOUSE August 2, 1999 the New World Mine was not even fin- istration under which countries volun- Everglades, as we did with Grand Can- ished when the World Heritage Com- tarily identify culturally and environ- yon, as we did with Yellowstone. That mittee voted to place Yellowstone on mentally significant areas within their is the purpose of this program. The the ‘‘In Danger’’ list for World Heritage own borders and promise to continue to international scientific study is there Sites. protect them. so scientists in one country can help b 2145 The program is totally voluntary. other scientists learn about the kind of The land must be protected in order to protections, about the kinds of pro- Likewise, the Jabiluka Mine in be nominated. It is not protected after grams that work to protect these envi- Kakido National Forest in Australia it is nominated. The only power that ronmental assets. came up against a similar threat by the World Heritage Committee has is if Mr. Chairman, I rise in strong, strong the World Heritage Committee, but the country who nominated the site opposition to this amendment. this time the verdict was much more goes back on its promise to protect This amendment is a late-night, backdoor agreeable. What is ironic is that the de- that area, the committee can drop the attempt to kill two programs that critics of cision was handed down in Paris. site from the list. those programs have been unable to kill in the Mr. CALLAHAN. Mr. Chairman, if The Man and the Biosphere program light of day. Legislation to abolish the Man and the gentleman will yield, I withdraw identifies protected areas where sci- the Biosphere and World Heritage Programs my point of order. entists can study entire ecosystems failed in 1996 and 1997 and looks like it may The CHAIRMAN. The gentleman and then sets up a framework where fail again this year. So we are here tonight to from Alabama withdraws the point of those scientists can share their infor- short circuit the process with a little amend- order. mation internationally. ment buried in a huge appropriations bill. Mr. TANCREDO. A decision affecting The framework documents which The World Heritage Convention is an inter- the land of private citizens in Australia control the Man and the Biosphere pro- national treaty, conceived and spearheaded by was decided by bureaucrats in a coun- gram and the World Heritage Conven- the United States during the Nixon administra- try halfway around the world. These tion both contain language making tion, under which countries voluntarily identify are decisions which should be handled clear that they in no way alter the culturally and environmentally significant areas by the government of the country in ownership or control of these lands. within their own borders and promise to con- which the action in question takes Since we were the first signatory of tinue protecting them. place. It should in no way be given over the World Heritage Convention in 1973, 1. The program is totally voluntary. to an international organization with 152 other nations have followed suit. 2. The land must already be protected in foreign influence. This convention was not only a prom- order to be nominated, it is not protected after Similar amendments to the one I ise to live up to our own standards for its nominated. 3. The only power the World Heritage Com- have proposed have been passed in pre- protecting these sites, it was an invita- mittee has is, if the country who nominated vious appropriations bills because tion to other countries around the the site goes back on its promise to protect these programs draw from funds of over world to follow suit. 10 governmental agencies. This House These two programs have established that area, the Committee can drop the site has gone on record before to deny fund- the United States as a world leader in from the list. The Man and the Biosphere program identi- ing to these two particular organiza- environmental protection and sci- fies protected areas where scientists can tions, and I believe that we must come entific study and the sharing of that study entire ecosystems and then set up a together again to make sure more information. Killing these programs framework where those scientists can share American taxpayer money is not used will not hurt these sites in the U.S. their information internationally. for programs which do not serve the They are already protected and will re- The framework documents which control the American people justly. main so. Yellowstone and Glacier Na- Man and the Biosphere program and the I believe that there are certainly bet- tional Parks will still be national World Heritage Convention both contain lan- ter places for this funding to be spent parks if we withdraw from the World guage making clear that they in no way alter than in UNESCO, an organization from Heritage Convention. The Everglades the ownership or control of these lands. which the United States withdrew over will still be protected if we stop our So if these programs are so innocuous, a decade and a half ago. scientific study under the Man and the what's the big deal if we abandon them? Mr. Chairman, I reserve the balance Biosphere program. Well, since the United States was the first of my time. But this action will send a signal signatory of the World Heritage Convention in The CHAIRMAN. Does the gentleman around the world that we no longer 1973, 152 other nations have followed suit. from Alabama (Mr. CALLAHAN) seek to value the kind of environmental pro- This convention was not only a promise to live control the time in opposition? tection and scientific study that we as up to our own standards for protecting these Mr. CALLAHAN. I do seek to control a Nation pioneered and asked the world sites, it was an invitation to other countries the time, Mr. Chairman, but I also ask community to join. around the world to follow suit. unanimous consent to give the time to We have seen this amendment a num- These two programs have established the the gentlewoman from California (Ms. ber of times in the last several years United States as a world leader in environ- PELOSI) and give her the authority to and the House has rejected this amend- mental protection and scientific study. Killing yield as she so deems necessary. ment each and every time because in these programs won't hurt these sites in the The CHAIRMAN. Without objection, fact a majority of the House under- United States. They are already protected and the gentlewoman from California (Ms. stands the nature of the scientific will remain so. Yellowstone and Glacier Na- PELOSI) will control 5 minutes. study, the importance of designating tional Park will still be national parks if we There was no objection. these sites as World Heritage areas, withdraw from the World Heritage Convention Ms. PELOSI. I thank the distin- and they also understand that this is a and the Everglades will still protected if we guished chairman for his generosity in voluntary program. The fact that the stop our scientific study of that area under the yielding all the time to me. process takes place in Belgium or in MAB program. Mr. Chairman, I yield such time as he Paris or somewhere else, this is an But, this action will send a signal around the may consume to the very distinguished international body. This is an inter- world that we no longer value the kind of envi- gentleman from California (Mr. national body. So that should not be ronmental protection and scientific study that GEORGE MILLER), the ranking member foreign to the Members of Congress and we pioneered. We would be relinquishing our on the authorizing committee. that is one of the reasons why it is in role as a world leader in the protection and Mr. GEORGE MILLER of California. this legislation. This is an inter- preservation of culturally and environmentally I thank the gentlewoman for yielding national organization to foster the pro- important areas. me this time in opposition to this tection of these huge, huge world class Why at a time when the Nation is justifiably amendment. environmental assets. The size of these proud of its role as a world leader in so many Mr. Chairman, the World Heritage assets is immaterial. Some of them are areas, would we want to abdicate our role as Convention is an international treaty there because nations decided that a world leader in perhaps the most important conceived and spearheaded by the these landscapes, these huge areas fight of all, the fight to protect and preserve United States during the Nixon admin- should be protected as we did with the this planet for generations to come? August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6829 This amendment is an attempt to short cir- Biosphere program. Everything else is 29, 1999, the gentleman from Ohio (Mr. cuit the will of the Congress and it would send fully funded. KUCINICH) and a Member opposed each a terrible signal to the rest of the world. Op- Mr. Chairman, I urge my colleagues will control 5 minutes. pose the Tancredo amendment. to vote ‘‘no’’ on the amendment. I com- The Chair recognizes the gentleman Mr. TANCREDO. Mr. Chairman, I mend the distinguished gentleman from Ohio (Mr. KUCINICH). yield myself such time as I may con- from California (Mr. GEORGE MILLER) Mr. CALLAHAN. Mr. Chairman, I re- sume. The opponents of the amend- for his leadership on this issue. serve a point of order. ment have suggested that in fact we Mr. TANCREDO. Mr. Chairman, I The CHAIRMAN. The gentleman have seen this many times before and yield myself such time as I may con- from Alabama reserves a point of it has been turned down by the House. sume. order. In fact, the House has passed and the There have been a number of com- Mr. KUCINICH. Mr. Chairman, I yield Congress has passed this amendment ments made with regard to the original myself such time as I may consume. Mr. Chairman, my amendment cuts more than once on other programs, on treaty obligations of the United States, funding to environmentally sensitive other appropriations. I refer specifi- but concerning the Man and the Bio- Overseas Private Investment Corpora- cally to the State Department author- sphere program, Congress has never tion fund projects, such as oil refin- izations for fiscal year 1998 and 1999, gone on record either authorizing or eries, chemical plants, oil and gas pipe- agreed to by recorded vote of 222–202. supporting such a program to be car- lines, large scale logging projects, and The Interior appropriations bill, fiscal ried out. Furthermore, many people projects near wetlands or other pro- have raised the issue as to the treaty year 1998, agreed to 222–203. The De- tected areas. Current OPIC investment obligation for the World Heritage partment of Defense Appropriations funds are not subject to any trans- Fund. This, however, is not true. Act, 1998, all of these. parency requirements. Furthermore, For one thing Mr. Chairman, these In article 16, paragraph 2 of the con- no specific information on these vention concerning the protection of two programs actually receive funding projects is contained in OPIC’s annual world cultural and natural heritage, it from a variety of different organiza- reports. tions and a variety of different depart- states that each state may declare at As a consequence, Congress, the pub- ments, and so you have to go after the time of ratification that it shall lic and the residents living near OPIC them as you see them arise. That is not be bound by the provisions of para- projects have no knowledge of the po- why we have had to do this before. But graph 1 which deals with the payment tential environmental and related fi- each time, at least in the situations of regular contributions to the World nancial and political risks. What is the that I have identified, they have been Heritage Fund. Likewise on October 26, taxpayer’s interest in these projects? passed by this House. 1973, the Senate consented to the ratifi- Taxpayers are liable for OPIC invest- Mr. Chairman, I reserve the balance cation of the convention subject to the ments overseas if they fail. I want to of my time. declaration that the United States is repeat that. Taxpayers are liable for Ms. PELOSI. Mr. Chairman, I yield not bound by provisions dealing with OPIC investments overseas if they fail. myself such time as I may consume. regular contributions to the World Her- Private corporations and investors Mr. Chairman, I will defend the com- itage Fund. The Senate has the power make investments in OPIC investment mittee position in opposing reluctantly to ratify, but this House has the re- funds. OPIC-supported funds, in turn, the distinguished gentleman from sponsibility of the public purse. We are make direct equity and equity-related Colorado’s amendment to our bill. not bound to contribute to the program investments in new, expanding and Mr. Chairman, I think it is important with the hard-earned money of the privatizing companies in ‘‘emerging to note that the House Committee on American people. market’’ economies. While taxpayer Appropriations mark for the IO&P ac- I strongly urge support of this money is not actually invested in these count is $167 million, which is $25 mil- amendment. funds, taxpayers are liable for the in- lion below the administration’s re- The CHAIRMAN. The question is on vestments should they fail. These funds quest. An additional reduction of $2 the amendment offered by the gen- have invested in more than 240 business million to this account would further tleman from Colorado (Mr. TANCREDO). projects in over 40 countries. Recent erode our ability to gain international The question was taken; and the estimates show that the total amount cooperation in protecting the environ- Chairman announced that the ayes ap- in Investment Fund programs will soon ment and natural resources. peared to have it. reach $4 billion. A $2 million reduction to the IO&P Mr. GEORGE MILLER of California. Since taxpayers are exposed to mil- account exceeds our voluntary con- Mr. Chairman, I demand a recorded lions of dollars of potential liabilities, tribution to the Man and the Biosphere vote. I believe OPIC has a responsibility to program, $355,000, and the World Herit- The CHAIRMAN. Pursuant to House Congress and to the public to operate age Fund, $450,000. As a result, this Resolution 263, further proceedings on in an open and transparent manner. amendment would force reductions in the amendment offered by the gen- The lack of environmental trans- other worthwhile scientific and edu- tleman from Colorado (Mr. TANCREDO) parency conceals environmentally de- cational activities, such as the Inter- will be postponed. structive investment of these funds not governmental Oceanographic Commis- AMENDMENT OFFERED BY MR. KUCINICH only from Congress and the American sion and the International Council of Mr. KUCINICH. Mr. Chairman, I offer public but also to locally affected peo- Scientific Unions at a time when we an amendment. ple in the countries where OPIC look toward science to increase our un- The CHAIRMAN. The Clerk will des- projects are run. derstanding of global environmental ignate the amendment. For example, a 1996 Freedom of Infor- problems. The text of the amendment is as fol- mation lawsuit focusing on OPIC activ- Mr. TANCREDO. Mr. Chairman, will lows: ity in Russia revealed that an invest- the gentlewoman yield? Amendment offered by Mr. Kucinich: ment fund project was involved in a Ms. PELOSI. I yield to the gentleman At the end of the bill, insert after the last clear cutting of primary ancient for- from Colorado. section (preceding the short title) the fol- ests in northwest Russia. Russian citi- Mr. TANCREDO. I thank the gentle- lowing new section: zens, expecting democracy building as- woman for letting me interject here. SEC. . None of the funds made available in sistance from the U.S. Government, The fact is that we have amended our this Act may be used by the Overseas Pri- vate Investment Corporation for any cat- had not been provided with any envi- own amendment. We do not strike any egory A Investment Fund project, as listed ronmental documentation. In fact, ac- particular dollar amount, we just pre- in Appendix E, Category A Projects, of the cording to documents obtained in a vent funds from going for these two Corporation’s Environmental Handbook of lawsuit, an OPIC consultant had false- programs. It actually would go other April 1999, as required pursuant to Executive ly documented the Russian citizens’ places in the bill. Order 12114 and section 239(g) of the Foreign support for the harmful, irreversible Ms. PELOSI. Reclaiming my time, I Assistance Act of 1961 (22 U.S.C. 2199(g)). logging of pristine forests. thank the gentleman. We need to make The CHAIRMAN. Pursuant to the OPIC investment funds have also those contributions to the Man and the order of the House of Thursday, July been involved in a gold mine in the H6830 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Cote d’Ivoire in the area of a primary those living in the affected area of the monitoring over the life of the project. This in- tropical forest which is opposed by project, could voice their opinions of cludes the Russian forest project which has local citizens. Reports of other trou- the project. In the case of projects al- been cited and about which this Member has bling projects are also being circulated. ready under way, a renegotiation of been informed did meet applicable World Conservation groups have filed Free- contracts to allow for public disclosure Bank Environmental Standards. dom of Information requests to obtain would be required to avoid breach of Moreover, by imposing new, additional the names, nature, location and envi- contract concerns. In the absence of standards by Congressional fiat and well be- ronmental impact assessments for all legislation like this and because of the yond those established at the time the fund OPIC investment fund projects. OPIC, limitations of appropriations bills, my was established, this amendment could poten- however, continues to conceal the envi- amendment simply cuts funding for en- tially expose the U.S. taxpayer to lawsuits for ronmental consequences of these ques- vironmentally sensitive investment breach of contract. tionable investments from the public. fund projects. If we cannot have full The Kucinich amendment as written would What little information has been un- transparency in all investment fund directly undercut U.S. assistance programs to covered about these funds reveals a projects, then OPIC should not be in- the neediest of developing countries and leave checkered environmental record. With volved in projects that are environ- the environments of these countries open to environmentally and socially sensitive mentally sensitive. unregulated exploitation. For example, the projects being a main focus of the While projects like oil refineries, gas and oil new $350 million Africa Infrastructure Fund funds, public disclosure of environ- pipelines, chemical plants that produce haz- would not be able to make the most of its po- mental impact assessments is even ardous or toxic materials, and large-scale log- tential investment because infrastructure, by more crucial. ging projects may be necessary for the indus- definition, tends to involve environmentally Organizations such as the National trial development of developing countries, sensitive programs. These investments, under Wildlife Federation, Friends of the holding the U.S. taxpayers liable for invest- current laws and regulations, must follow Earth, Institute for Policy Studies, En- ments in projects that could pose serious envi- sound environmental standards. This initial vironmental Defense Fund, Sierra ronmental or health risks to local populations $350 million investment is expected to lever- Club, Center for International Environ- with no public oversight or disclosure is unac- age another $2 billion in investment in Sub- mental Law and Pacific Environment ceptable. Saharan Africa. It is unlikely that the Africa In- and Resources Center have long advo- It is OPIC's policy, as outlined in the Envi- frastructure Fund could even raise private sec- cated increased transparency in OPIC ronmental Handbook to conduct rigorous inter- tor money under the conditions required by investment fund projects. nal Environmental Impact Assessments on all the pending Amendment. As a result, the ben- Representatives of these organiza- environmentally sensitive projects. Environ- efits that Africa so desperately needs will be tions met with the new OPIC President mental impact assessments are also required lost. This includes environmental improvement in February, where he agreed with by law as found in Executive Order 12114 and projects in the areas of clean water, forest their assertion that these funds should Public Law 99±204. However, while the as- protection and conservation of natural re- be transparent when it comes to the sessments for insurance and finance projects sources. Indeed, if unable to access resources environment. OPIC recently launched a are publicly disclosed, assessments on Invest- from the Africa Infrastructure Fund, African na- $350 million equity fund for investment ment Fund projects are not. Accountable gov- tions will be forced to run to other sources of in sub-Saharan Africa which will in- ernment demands that these assessments be investment including those that may not re- clude transparency and public disclo- disclosed. quire the same standards of environmental re- sure provisions. But, Mr. Chairman, Mr. Chairman, my amendment is endorsed sponsibility as we do thereby resulting in fur- there are still 26 other funds which re- by Friends of the Earth, Environmental De- ther exploitation of and damage to Africa's main shrouded in secrecy. With almost fense Fund, U.S. Public Interest Research fragile environment. $4 billion invested in these programs Group, Sierra Club, Defenders of Wildlife, This Member would refer his colleagues and OPIC’s sketchy environmental Center for International Environmental Law, back to all of the sound reasons detailed dur- record, it is ever more important that Pacific Environment and Resources Center, ing the debate we just had on the Andrews OPIC be held accountable to the public Rainforest Action Network, Institute for Policy amendment about why OPIC is an important regarding its investment in environ- Studies and Amazon Watch. and successful component of American for- mentally sensitive projects. I urge my colleagues to support my amend- eign policy and trade promotion. While the ap- ment and shed some light on OPIC's environ- b 2200 proach of the Kucinich amendment may be mentally sensitive Investment Fund projects. somewhat different, the cost of it equals that Mr. CALLAHAN. Mr. Chairman, it is Mr. BEREUTER. Mr. Chairman, as vice of the Andrews amendment. Mr. Chairman, my understanding that it is the intent chairman of the International Relations Com- this Member urges his colleagues to strongly of the gentleman to withdraw his mittee, this Member rises in strong opposition oppose this amendment. amendment. to the Kucinich amendment which would cut Any projects supported by OPIC in what is That being the case, I will withdraw the funding of the Overseas Private Invest- called Category A that subsequently change in my reservation of objection and claim ment Corporation's (OPIC) Investment Fund nature from the description provided in appli- the opposition time. program. While this Member shares the distin- cation materials, and will thereby cause mate- The CHAIRMAN. The gentleman guished gentleman's concern about funding rial impacts to the environment, shall be re- from Alabama is recognized for 5 min- only environmentally responsible projects, quired to submit additional EA documents to utes. given that OPIC already has an effective envi- OPIC that must be acceptable to OPIC in its Mr. CALLAHAN. Mr. Chairman, I ronmental review program, it appears that the sole discretion. yield 1 minute to the gentleman from underlying purpose of this amendment is to Industrial categories: Ohio (Mr. KUCINICH). drastically cut and restrict OPIC under the A. Large-scale industrial plants. Mr. KUCINICH. Mr. Chairman, I guise of environmental protection. Mr. Chair- B. Industrial estates. thank the gentleman for yielding this man, we have already had this debate on the C. Crude oil refineries. time to me. So with almost $4 billion Andrews amendment. D. Large thermal power projects (200 invested in these programs and OPIC’s Contrary to the claims of some OPIC oppo- megawatts or more). sketchy environmental record, it is nents, all of OPIC's fund investments must E. Major installations for initial smelting of ever more important that OPIC be held meet stringent world class environmental cast iron and steel and production of non fer- accountable to the public regarding its standards. These standards are higher than rous metals. investment in environmentally sen- any other bilateral export credit, investment or F. Chemicals: sitive projects. The ideal legislation to insurance agency in the world. In fact, no 1. Manufacture and transportation of pes- correct the lack of transparency in in- other investment funds program has higher ticides; vestment fund projects would require standards. OPIC requires that each environ- 2. Manufacture and transportation of haz- the public disclosure of environmental mentally sensitive fund investment must un- ardous or toxic chemicals or other materials. impact assessments conducted on all dergo a complete environmental impact as- G. All projects which pose potential serious new investment projects. sessment and must meet OPIC obligations to occupational or health risks. It would also allow for public com- mitigate potential environmental harm. Each H. Transportation infrastructure: mentary where citizens, especially funds project is subject to OPIC environmental 1. Roadways; August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6831 2. Railroads; $350 million in exports from the United province of the Federal Republic of Yugo- 3. Airports (runway length of 2,100 meters States. slavia (Serbia and Montenegro) until the or more); II. This amendment undercuts the environ- Secretary of State prepares and submits to 4. Large port and harbor developments; mental protections and new transparency built the Congress a report containing a detailed description of the atrocities that have been 5. Inland waterways and ports that permit into the New Africa Infrastructure Fund committed against ethnic Serbians in passage of vessels of over 1,350 tons. OPIC has world-class environmental stand- Kosovo, including a description of the inci- I. Major oil and gas developments. ards that apply to all OPIC programs and dent in which 14 Serbian farmers were killed J. Oil and gas pipelines. funds: on or about July 25, 1999, and a description of K. Disposal of toxic or dangerous wastes: All environmentally sensitive projects must actions taken by North Atlantic Treaty Or- 1. Incineration; undergo a complete environmental impact as- ganization (NATO) forces in Kosovo to pre- 2. Chemical treatment. sessment. vent further atrocities. L. Landfill. The New Africa Infrastructure Fund projects The CHAIRMAN. Pursuant to the M. Construction or significant expansion of will provide for public notice and public com- order of the House of Thursday, July dams and reservoirs not otherwise prohibited. ment period in the host country. 29, 1999, the gentleman from Florida N. Pulp and paper manufacturing. All environmentally sensitive projects must (Mr. STEARNS) and a Member opposed O. Mining. meet OPIC requirements to mitigate potential each will control 5 minutes. P. Offshore hydrocarbon production. environmental harm. Mr. CALLAHAN. Mr. Chairman, I re- Q. Major storage of petroleum, petro- All environmentally sensitive projects are serve a point of order. chemical and chemical products. subject to OPIC environmental monitoring over The CHAIRMAN. A point of order is R. Forestry/large scale logging. the life of a project. reserved. S. Large scale wastewater treatment. The New Africa Infrastructure Fund must Mr. OLVER. Mr. Chairman, I also re- T. Domestic solid waste processing facili- have at all times an environmental manage- serve a point of order. ties. ment system and a full-time qualified environ- The CHAIRMAN. The gentleman U. Large-scale tourism development. mental expert supervising the implementation from Massachusetts also reserves a V. Large-scale power transmission. point of order. W. Large-scale reclamation. of OPIC requirements. III. The amendment would jeopardize invest- The Chair recognizes the gentleman X. Large-scale agriculture involving the in- from Florida (Mr. STEARNS). tensification or development of previously un- ments by two other OPIC-supported Africa funds totaling $270 million. Mr. STEARNS. Mr. Chairman, I yield disturbed land. myself such time as I may consume. Y. All projects with potentially major impacts These funds: Would be prohibited from investments in I come here tonight, Mr. Chairman, on people or serious socioeconomic concerns. just to request a simple study. None of Z. Projects, not categorically prohibited, but many manufacturing, agricultural, and proc- essing projects as well as many basic services the funds that are appropriated under located in or sufficiently near sensitive loca- this act, under the title ‘‘peacekeeping tions of national or regional importance to in sub-Saharan Africa. Will generate more than $300 million in US operations,’’ they should not be obli- have perceptible environmental impacts on: gated or expended for peacekeeping op- 1. Wetlands; exports (estimated). Will create an estimated 5000 African jobs. erations in Kosovo, province of the 2. Areas of archaeological significance; Federal Republic of Yugoslavia, until 3. Areas prone to erosion and/or IV. The amendment would harm, rather than the Secretary of State prepares and desertification; help, the environment in Africa. submits to this Congress a report con- 4. Areas of importance to ethnic groups/in- Because OPIC funds would be prohibited taining a detailed description of the digenous peoples; from any environmentally sensitive investment: atrocities that have been committed in 5. Primary temperate/boreal forests. Some infrastructure projects will go forward this case against the Serbians in 6. Coral reefs; with no obligation or requirement to meet 7. Mangrove swamps; OPIC's world-class environmental standards. Kosovo. 8. Nationally-designated seashore areas; Africa will lose the benefit of OPIC's world- Thirty-four churches, Mr. Chairman, 9. Managed resource protected areas, pro- class standards being applied to a broad have been bombed since the Air Force, tected landscape/seascape (IUCN categories range of infrastructure, manufacturing and nat- since NATO has stopped their bombing V and VI) as defined by IUCN's Guidelines for ural resource projects. exercise and we declared that we won Protected Area Management Categories; addi- V. This amendment will undermine OPIC's the war, and of course recently 14 Ser- tionally, these projects must meet IUCN's ability to fulfill its commitment to create an- bian farmers were massacred on or management objectives and follow the spirit of other $150 million fund for Africa as called for about July 25, 1999; and my point this IUCN definitions. in the House-passed Africa Growth and Op- evening is that we are going to appro- Mr. Chairman, this member will finally in- portunity Act. priate more money for peacekeeping clude with information as to why the Kucinich Mr. KUCINICH. Mr. Chairman, I ask operations, and I really think it is ap- amendment on OPIC supports investment unanimous consent to withdraw my propriate that we get the State Depart- funds will kill the new Africa Infrastructure amendment. ment under NATO, State Department Fund. The CHAIRMAN. Is there objection working with NATO, to start to tell us I. The Kucinich amendment is a bullet to the to the request of the gentleman from what actually occurred. Are Serbians heart of OPIC's $350-million New Africa Infra- Ohio? now seeing reverse cleansing at the ex- structure Fund. There was no objection. pense of the Albanians? This amendment would: The CHAIRMAN. The amendment of Now there was a recent U.S. Today Stop the fund from investing in a majority of the gentleman from Ohio (Mr. article that raised so many questions infrastructure projects (since many infrastruc- KUCINICH) is withdrawn. about the Clinton administration talk- ture projects are environmentally sensitive). AMENDMENT OFFERED BY MR. STEARNS ing about their numbers, and they said, Prohibit most investments in clean water, Mr. STEARNS. Mr. Chairman, I offer quote, ‘‘many of the figures used by the sewage treatment, transportation, electric an amendment. administration and NATO to describe power and other projects that improve the The CHAIRMAN. The Clerk will des- the war-time plight of the Albanians in lives of African people. ignate the amendment. Kosovo now appear greatly exaggerated Undercut the fund's ability to raise the pri- The text of the amendment is as fol- as allied forces took control of the vate sector matching funds. lows: providence. Instead of 100,000 ethnic Al- banian men feared murdered by the Make the fund uneconomical and less able Amendment offered by Mr. STEARNS: to invest in women and microenterprises. Page 116, after line 5, insert the following: rampaging Serbs the estimate now is only 10,000.’’ It would deny the benefits of the fund, in- REPORT ON ATROCITIES AGAINST ETHNIC cluding: SERBIANS IN KOSOVO So I am hoping to bring to light through the study that I have in my 6,800 new jobs for Africans. SEC. ll. None of the funds appropriated Almost $50 million in annual revenues for or otherwise made available by this Act in amendment that before we go any fur- the countries of sub-Saharan Africa. title III under the heading ‘‘PEACEKEEPING ther let us find out what has happened $2.5 billion in additional financing capital to OPERATIONS’’ may be obligated or expended in Kosovo and about these 34 churches Africa. for peacekeeping operations in the Kosovo that have been bombed and the number H6832 CONGRESSIONAL RECORD — HOUSE August 2, 1999 of people that have been killed and bian citizens who are trying to do the by Serb forces, and because there are now no talking about these 14 Serbian farmers same thing that the Kosovars were border controls, many gangs are moving in who are massacred. Why not? Let us doing when they actually did Kosovar unhampered by the 37,000 K-For soldiers. hear the straight scoop now that we into Albania. We are not going to tol- While the U.N. plans to deploy 3,125 inter- national police, only 400 have arrived. The are in control of Kosovo and find out erate that. police commander has decided not to put the real story. With respect to the gentleman’s con- troops into active service until he has Mr. Chairman, I yield 2 minutes to cern about reconstruction in Kosovo, enough to patrol entire areas. Currently, the the gentleman from Ohio (Mr. as subcommittee chairman, along with commander says, his most urgent need is for KUCINICH). the full committee chairman, we have border police to keep out more gangs and (Mr. KUCINICH asked and was given a full hold on all money going to smugglers. permission to revise and extend his re- Kosovo until such time as the adminis- The German K-For commander, General marks.) tration proves to us that the money is Fritz von Koriff, said his soldier stop cars to Mr. KUCINICH. Mr. Chairman, I rise going to be spent for the intended pur- search for weapons and frequently come in support of the Stearns amendment across smuggled items, such as massive pose of refugee assistance. amounts of cigarettes, particularly at the that would call for a report on atroc- The United States cannot tolerate Morina-Kukes border crossing. But Nato’s ities against Serbs. A report by the the slaughter of Serbs. They are faced mandate does not permit his soldiers to con- Secretary of State on the atrocities with the same problem, the same philo- fiscate any item except weapons, and the against Serbs in Kosovo and the July 25 sophical differences, but in the reverse smugglers are permitted into Kosovo with massacre is necessary because there of the Kosovars; and we cannot tol- their loot if it is believed they are from the must be ongoing accountability for the erate that, and we must insist with the province. ongoing atrocities against Kosovar administration at some point, which I One of the biggest problems involves gangs Serbs and Albanians in Kosovo. think I can do that as chairman of this showing up at homes to claim ownership and Security must be our top priority in threatening to beat those who refuse to subcommittee, of accountability. move out. the Balkans. Peacekeeping operations Give us the accountability of what is No statistics are available on the number are supposed to keep the peace. But taking place there. How can we con- of property seizures, but anecdotal evidence there was no peace when 14 Serbian tinue to tolerate this? Or how can we suggests a growing problem. And, while ini- farmers were killed on July 25, 1999, in continue not to speak out so openly tially it seemed that seizures were ethnically one of the worst massacres since the against the same atrocities that led motivated, and targeted at Kosovo Serbs in end of the war. Who is accountable for this Congress to appropriate the mil- the capital Pristina, increasingly Kosovo Al- this? Who did this? How did this atroc- lions of dollars that we sent to Kosovo banians are victims as well. ity happen amidst peacekeeping and the front-line states. Kosovo’s provisional prime minister, KLA troops? How can we prevent this from So I share my colleagues’ concerns, leader Hashim Thaci, 31, denied his organiza- tion was behind seizures of Kosovo Serb ever happening again? We need an- but I still reserve my point of order. apartments. ‘‘We have no such information. swers. Mr. KUCINICH. Mr. Chairman, will We know there are those who have left A report describing these atrocities the gentleman yield? Kosovo, but we have not forced anybody to will provide answers. More than 146 Mr. CALLAHAN. I yield to the gen- leave, or put pressure on them to leave. That Kosovar Serbs and Albanians have been tleman from Ohio. is propaganda. Any one who has not com- killed since the end of the bombing Mr. KUCINICH. Mr. Chairman, the mitted crimes is free to live in Kosovo.’’ campaign on June 10. More than 150,000 gentleman is absolutely correct. And I According to a U.N. police commander, Serbs have fled Kosovo since NATO ar- am sure the gentleman is likewise who asked not to be identified, intelligence suggests there are three main types of orga- rived on June 10. More than 20 Serbian aware of the fact that another, that other action has granted $20 million for nized criminal gangs in Kosovo: Russian, Al- Orthodox churches have been damaged banian, and those linked to the KLA. Some or destroyed since June 10. Only yes- security for Kosovo, and with the KLA analysts suggest that the seized apartments terday a Serb Orthodox cathedral in being in charge of the province, it and other looted goods are the KLA’s way of the province’s capital, Pristina, was raises questions as to whether or not paying debts to arms procurers, funders and bombed. that money would actually be for the important soldiers and there relatives. These are not signs of peace. For true security of the people there or would be U.N. officials deny the organization’s slow- peace to prevail, there must be ac- to advance the interests of the KLA. ness is responsible for Kosovo’s growing countability of these actions. Peace- So I thank the gentleman for ex- crime problem. One senior U.N. commander said, unlike K-For, which has been preparing keeping operations will amount to pressing his concern that was raised by the gentleman from Florida (Mr. for a Kosovo mission since February, the nothing if they cannot prevent contin- U.N. wasn’t told it was to take over civilian ued ethnic cleansing. Peacekeeping op- STEARNS), and I appreciate the gentle- operations in Kosovo until June. erations will amount to nothing if the man’s sentiments. An American involved in the international perpetrators of these and other crimes ORGANIZED CRIME GANGS RULE KOSOVO police force warned that by the time the are not brought to justice. This report (By Laura Rozen) U.N. police are deployed, criminal gangs will on atrocities committed against the Around 30 people a week are being killed in already have their networks set up, and will Serbs including the July 25 massacre is Kosovo as organized gangs take advantage of be as much a menace for Kosovo’s Albanian population as they are for the Serbs. necessary if the NATO-led peace- the U.N.’s failure to police the province. keeping force intends to prevent any Nato spokesman Jamie Shea admitted yes- Ms. PELOSI. Mr. Chairman, will the terday a ‘‘law and order vacuum’’ has been gentleman yield? further atrocities from happening in created by a long delay in deploying U.N. Kosovo. civil administrators and an expected 3,000- Mr. CALLAHAN. I yield to the gen- Again, I support this important strong police force. But he insisted the war- tlewoman from California. amendment, and I ask my colleagues to torn province was not yet out of control. Ms. PELOSI. Mr. Chairman, I wish to join me in voting for the Stearns Western diplomats in Pristina say gangs, associate myself with my colleagues’ amendment; and again I think we are some of which are suspected of having links remarks, and I look forward to working all concerned about events in Kosovo. to the Kosovo Liberation Army, are taking with them to press upon the adminis- We are all concerned about what hap- apartments, real estate, businesses, fuel sup- tration the concerns that were ex- plies and cars from Kosovo Albanians and pressed here by the gentleman from pened to the Kosovar Albanians. Let Serbs, who have little recourse to justice. justice be consistent, and let us also be A British K-For official in Pristina said: Florida (Mr. STEARNS) and the gen- concerned about what is happening to ‘‘UNMIK (the U.N. interim administration) tleman from Ohio (Mr. KUCINICH), and I the Serbians. is unprepared to take over law and order. In commend them for their leadership on Mr. CALLAHAN. Mr. Chairman, still the absence of police and legitimate rules, a this issue. reserving my point of order, I yield my- vacuum has occurred. Mr. CALLAHAN. Mr. Chairman, to self such time as I may consume. ‘‘That vacuum is being filled by organized further comment, too, on my com- crime. Albanian gangs are inviting Kosovo I would like to enter into a colloquy Serbs to leave their apartments. Now Kosovo ments, as my colleagues know, I have a with the gentleman from Florida (Mr. Albanians are being invited to leave.’’ friend who is from greater Serbia. He STEARNS) about his concerns in Kosovo Because so many Kosovo Albanians had now lives in French Guyana. His name and mindless killing of innocent Ser- identity documents and license plates seized is Mr. Nalvik, and Mr. Nalvik has kept August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6833 me posted throughout this entire en- the atrocities; and I could go into a list India. Part of my reasoning for such counter on the feelings of a lot of Ser- of them, one after another, the atroc- strong opposition was to encourage op- bian people which are diametrically op- ities of 30 and 40 and 50 people who had portunities for peace and the resolu- posed to Mr. Milosevic. So we do have been killed and burned, hacked apart tion of the conflict and to encourage some people in Serbia who deserve by machete attack, small children, India to engage in efforts to resolve the some attention, some respect because children as young as 2 years shot in the tragic conflict and to support India in they did not agree with Mr. Milosevic, head, along with aged people thrown that effort. but in any event the gentleman’s point into a well along with cows and rocks I now rise to express that same kind is taken. I hope he will withdraw it, and so forth as part of the atrocities of support for the terrible tragedy that and if so, I will remove my point of that were perpetrated there. So there is occurring in Eritrea and Ethiopia. I order. is no shortage of atrocities, but we can- rise with a sense of Congress to encour- Mr. STEARNS. Mr. Chairman, I yield not condone those activities, and I age a peaceful resolution of Eritrea and myself such time as I may consume. thank the gentleman for withdrawing the Ethiopian conflict and to offer this Mr. Chairman, I thank the distin- his amendment. amendment to acknowledge that there guished gentleman from Alabama, and Mr. STEARNS. Mr. Chairman, I ask has been progress. I will withdraw it. I just would like to unanimous consent to withdraw my Currently negotiations are being con- make a final argument here. amendment. ducted by the State of Eritrea and the I think the gentleman has touched The CHAIRMAN. Is there objection Federal Democratic Republic of Ethi- upon it, and my good colleague from to the request of the gentleman from opia. These negotiations are in re- Ohio has touched upon it when he men- Florida? sponse to their governments’ accept- tions the word ‘‘accountability.’’ We There was no objection. ance of the OAU framework, the Orga- need to take taxpayers’ money and The CHAIRMAN. The amendment of- nization of African unity framework, help people; I understand that. But in fered by the gentleman from Florida to settle the dispute between these two the overall understanding of this (Mr. STEARNS) is withdrawn. critical on the Horn of Africa. Our colleague, Mickey Leland, some project, we need to have accountability AMENDMENT OFFERED BY MS. JACKSON-LEE OF 10 years ago was continuing to go back for the taxpayers’ money, how it is TEXAS and forth to Ethiopia because of the being spent. Ms. JACKSON-LEE of Texas. Mr. tragedy of the famine. In a few days, it So with that in mind, and I am hope- Chairman, I offer an amendment. will be 10 years when we lost Mickey ful that the chairman will consider The CHAIRMAN. The Clerk will des- Leland in Ethiopia on a humanitarian part of what I have in report language, ignate the amendment. if not at least to make the attempt to mission. The text of the amendment is as fol- I know that his continued efforts tell the administration that money lows: will not be given, taxpayers’ money there were to ensure that Ethiopia Amendment offered by Ms. JACKSON-LEE of would be a strong nation, peaceful na- will not be given until there is full ac- Texas: tion, and a friend of the United States. countability in this case and that we Page 116, after line 5, insert the following: Now we have an opportunity to en- have balance and fairness. SENSE OF THE CONGRESS RELATING TO RESOLU- courage Ethiopia and Eritrea to cor- Mr. CALLAHAN. Before, Mr. Chair- TION OF THE CONFLICT BETWEEN ERITREA AND rect and resolve this latest conflict, man, I had forgotten I told the gen- ETHIOPIA and I applaud them for agreeing to en- tleman from Massachusetts that I SEC. ll. The Congress— gage in peace negotiations. The com- would yield to him. Whatever time re- (1) expresses its satisfaction with the deci- sion of President Isais of the State of Eritrea mitment the Prime Minister of Ethi- maining I have on my point of order, I opia and the President of Eritrea to yield to the gentleman from Massachu- and Prime Minister Meles of the Federal Democratic Republic of Ethiopia to agree to move forward and give their people setts (Mr. OLVER). the Organization of African Unity (OAU) peace and tranquility should be ap- The CHAIRMAN. The gentleman framework in settling the border dispute be- plauded. The Ethiopia-Eritrea conflict from Massachusetts (Mr. OLVER) is rec- tween Eritrea and Ethiopia and to enter into has substantially damaged the eco- ognized for 2 minutes. proximity talks in Algeria for implementing nomic growth and development of the Mr. OLVER. Mr. Chairman, I thank a cease-fire between the two countries; countries and has led to humanitarian the gentleman for yielding this time to (2) encourages the completion of the mo- suffering on both sides of the border. me, and I also would like to associate dality talks between Eritrea and Ethiopia as For 30 years, a problem dividing myself with the comments that have quickly as possible and encourages the two countries not to renew hostilities; Ethiopia and Eritrea was Eritrea’s been made by the distinguished chair- claim that its people have a right to man of the subcommittee. There is no (3) appreciates the de facto cease-fire agreed to by Eritrea and Ethiopia; self-determination. In 1991, this long question that there is no shortage of (4) appreciates the efforts of the Organiza- and costly struggle ended through a co- hatred in Kosovo these days, and I tion of African Unity and the Government of alition built to topple the Ethiopian would just point out that the first siz- Algeria for aiding in the negotiations be- dictatorship that was not acceptable to able delegation of Members of the Con- tween Eritrea and Ethiopia; and either country. For 7 years of peace, gress was led by the gentleman from (5) in order to more firmly move Eritrea both neighbors pursued paths of eco- Ohio, the chairman of the Sub- and Ethiopia toward a resolution of the con- flict between the two countries, expresses its nomic and social development to give committee on Military Construction, rise to the very idea of renaissance, es- of which I serve as the ranking mem- intent to reconsider its position with respect to Eritrea and Ethiopia if there is a resump- tablishing a path to economic growth ber; and we saw the attempt on the tion of hostilities between the two countries. and a better quality of life for the peo- part of American forces there, having Mr. CALLAHAN. Mr. Chairman, I re- ple. detained some 10 or so Serbian serve a point of order. The border dispute that ignited hos- Kosovars and some, almost 30, Alba- The CHAIRMAN. Pursuant to the tilities has smothered any confidence nian Kosovars for a variety of actions, order of the House of Thursday, July that things would be really better. The but there are no courts in Kosovo to 29, 1999, the gentlewoman from Texas war has taken a vicious toll on the peo- send those actions to, actions of (Ms. JACKSON-LEE) and a Member op- ple in the countries. The number of looting and arson and, in fact, murder. posed each will control 5 minutes. casualties are almost surreal. We have In this particular instance, the 14 The Chair recognizes the gentle- seen reports of over 18,000 victims with- Serbian farmers, and one can surely woman from Texas (Ms. JACKSON-LEE). in 3 or 4 days of fighting. Individual not condone that kind of activity, al- border battles have involved over 90,000 b ready three people have been arrested 2215 soldiers fighting from various fronts. for that. On the other hand, there have Ms. JACKSON-LEE of Texas. Mr. In Eritrea the army is estimated to be been no arrests and may well never be. Chairman, I yield myself such time as over 250,000 soldiers, men and women, a In fact, the perpetrators out of the I may consume. huge drain on a population of 3.5 peo- Yugoslavian armed forces are probably Mr. Chairman, just a few minutes ago ple. quite free and among the elite of the I rose in opposition to the Burton That is why I brought to the atten- military in Belgrade at this time for amendment regarding cutting funds to tion of this Congress my desire for a H6834 CONGRESSIONAL RECORD — HOUSE August 2, 1999 sense of Congress to acknowledge the ment. I do not want to insist on my Mr. CALLAHAN. Mr. Chairman, I ask movement, the progress, that has been point of order, but I must insist if the unanimous consent to transfer my 5 made, the fact that the OAU agreement gentlewoman does not choose to with- minutes to the gentlewoman from Cali- has been accepted or at least has been draw it. fornia (Ms. PELOSI), and that she may moved on and as well that there are ef- Ms. JACKSON-LEE of Texas. Mr. yield said time. forts toward trying to resolve this. Chairman, will the gentleman yield? The CHAIRMAN. Is there objection Mr. GILMAN. Mr. Chairman, will the Mr. CALLAHAN. I yield to the gen- to the request of the gentleman from gentlewoman yield? tlewoman from Texas. Alabama? Ms. JACKSON-LEE of Texas. I yield Ms. JACKSON-LEE of Texas. If the There was no objection. to the gentleman from New York, the chairman would allow me just to sum- The CHAIRMAN. The gentleman Chairman of the Committee on Inter- marize, then I would like to ask unani- from Texas (Mr. PAUL) is recognized for national Relations. mous consent upon my summary to 5 minutes. Mr. GILMAN. Mr. Chairman, I share withdraw this amendment. (Mr. PAUL asked and was given per- the gentlewoman’s concerns that Ethi- I appreciate very much the chairman mission to revise and extend his re- opia and Eritrea, two fine countries of the Committee, the chairman of the marks.) Mr. PAUL. Mr. Chairman, I yield my- that have already suffered too many Committee on International Relations years of communist dictatorship, have self 3 minutes. and their ranking members for their Mr. Chairman, the amendment is spent 14 months at war with one an- kind words and agreement with me on straightforward. It prohibits the use of other, and the loss has been tragic. We the importance of this issue. any money for population control, fam- are hopeful now that there is a cease- Let me close by simply saying that ily planning, or abortion of any funds fire, that they will implement the we have at least the makings of the po- authorized in this bill, appropriated in cease-fire and return to peace. I want tential of an opportunity for peace. this bill. to commend the gentlewoman for fo- The de facto cease-fire and the work of Mr. Chairman, the question really is cusing attention on the cease-fire that the government of Algeria in aiding this: Should the American taxpayer be is under way. the negotiations between Eritrea and required to pay for birth control pills, Ms. PELOSI. Mr. Chairman, will the Ethiopia should also be recognized, and IUDs, Depo-Provera, Norplant, condom gentlewoman yield? hopefully the Congress will continue to distribution, as well as abortion in for- Ms. JACKSON-LEE of Texas. I yield monitor this circumstance to avoid the eign countries. Those who believe this to the gentlewoman from California. loss of life and certainly in tribute to is a proper and legitimate function will Ms. PELOSI. Mr. Chairman, I thank my predecessor, Mickey Leland and his vote against the amendment. Those the gentlewoman for yielding me time. love for Ethiopia and love for mankind who believe that it is not a proper Mr. Chairman, I know that the dis- we can monitor the circumstances function for us to be doing these things tinguished chairman of our committee there. around the world would vote for my will be calling for a point of order on Mr. GILMAN. Mr. Chairman, I share the amendment. this sense of the Congress motion, but gentlewoman's concerns that Ethiopia and Eri- Mr. Chairman, I mention abortion be- I did want to take a half a moment to trea, two fine countries that have already suf- cause although this bill does not au- join her in commending our former col- fered many years of communist dictatorship, thorize funds directly for abortion, any league here, Mickey Leland. When the have spent 14 months at war with one an- birth control center that is involved gentlewoman mentioned that it is 10 other. that receives funds from us and are in- years, it seems impossible, but indeed I am very hopeful that they will implement volved with abortion, all they do is it was 1989. I was with my family in the ceasefire and return to peace. shift the funds. All funds are fungible, Cairo when we got the bad news. We Ms. JACKSON-LEE. of Texas. Mr. so any country that we give money to were all going to join Mickey in Chairman, I ask unanimous consent to that is involved with abortion, for Nairobi when he left Ethiopia. Of withdraw my amendment. whatever reason, or especially in a course, he invited everyone to go to The CHAIRMAN. Is there objection family planning clinic, can very easily Ethiopia with him. to the request of the gentlewoman shift those funds and perform abor- Fortunately for everyone else, he did from Texas? tions. So this is very, very clear-cut. not have a large enough plane for ev- There was no objection. I would like to spend a minute eryone. Maybe if he had a larger plane, AMENDMENT NO. 9 OFFERED BY MR. PAUL though on the authority that is cited he would still with be us. Every day I Mr. PAUL. Mr. Chairman, I offer an for doing such a thing. Under the House remember him, because his picture is amendment. rules, the committee is required to at on the wall of my office, holding a The CHAIRMAN. The Clerk will des- least cite the constitutional authority baby, that beautiful picture of Mickey ignate the amendment. for doing what we do on each of our Leland. He was there, not helping The text of the amendment is as fol- bills. Of course, I was curious about countries, but helping people. lows: this, because I was wondering whether I am particularly pleased that the this could be general welfare. This does gentlewoman at least has us focused on Amendment No. 9 offered by Mr. PAUL: At the end of the bill, insert after the last not sound like the general welfare of peace in that region because that is section (preceding the short title) the fol- the U.S. taxpayer, to be passing out what we should be working toward. lowing: condoms and birth control pills and Once again, I commend the gentle- LIMITATION ON FUNDS FOR ABORTION, FAMILY forcing our will on other people, impos- woman for calling the Congress’ atten- PLANNING, OR POPULATION CONTROL EFFORTS ing our standards on them and forcing tion to this important region of the SEC. . None of the funds appropriated or our taxpayers to pay. That does not world. otherwise made available by this Act may be seem to have anything to do whatso- Mr. CALLAHAN. Mr. Chairman, I made available for— ever with the general welfare of this yield myself such time as I may con- (1) population control or population plan- country. sume. ning programs; Of course, the other clause that is I share the gentlewoman’s concern (2) family planning activities; or generally used in our legislation is the about the war in Ethiopia and Eritrea, (3) abortion procedures. interstate commerce clause. Well, it and I too am optimistic that the war The CHAIRMAN. Pursuant to the would be pretty tough, pretty tough, between these two nations will soon be order of the House of Thursday, July justifying passing out condoms in the ending. I remind Members that bin 29, 1999, the gentleman from Texas (Mr. various countries of the world under Laden has long utilized Sudan as a ter- PAUL) and a Member opposed each will the interstate commerce clause. rorist training ground. In fact, Sudan control 5 minutes. So it was very interesting to read ex- served as a safe-harbor for the bin Mr. CALLAHAN. Mr. Chairman, I actly what the justification is. The Laden terrorists who blew up the U.S. rise in opposition to the amendment. Committee on Appropriations, quoting embassies in Tanzania and in Kenya. The CHAIRMAN. The gentleman from the committee report, the Com- But I sincerely hope that the gentle- from Alabama will control the time in mittee on Appropriations bases its au- woman would withdraw her amend- opposition to the amendment. thority to report this legislation from August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6835 clause 7, section 9 of Article I of the I think the gentleman knows full this subcommittee to draft a bill. And Constitution of the United States of well that no funds may be used for in order to draft a bill, I have to depend America, which states ‘‘no money shall abortion procedures. That is the law of upon a very able staff which really did be drawn from the Treasury but in con- the land. We reiterate it every time we the drafting of this 119 pages of law sequence of appropriation made by have a discussion on this subject. If that hopefully will be passed tomorrow law.’’ ‘‘Appropriations contained in you are going to apply fungibility, you morning. this act,’’ the report says, ‘‘are made would have to apply it to everything But upon my instruction, I would pursuant to this specific power granted we do here. I do not know why all of a like to reiterate, and I know the gen- by the Constitution.’’ sudden when it comes to international tleman from Texas (Mr. PAUL) has al- That is not a power. That was a pro- family planning, fungibility becomes a ready brought it out, but since I am re- hibition. It was to keep us from spend- principle, but when we are dealing with sponsible for writing this bill, the bill ing money without appropriation. If the defense bill or any other appropria- says that none of the funds made avail- this is true, we can spend money on tions, we never say that giving money able under this heading may be used to anything in the world, and the Con- for this, that or the other purpose helps pay for the performance of abortions as stitution has zero meaning. This can- that country underwrite some prac- a method of family planning. not possibly be. tices that we might not approve of. So I just wanted to make perfectly So all I would suggest is this: Be a The amendment would end a more clear my position as the author of this little more creative when we talk than 30-year-old program recognized as bill with respect to abortions. about the Constitution. There must be one of the most successful components Ms. PELOSI. Mr. Chairman, reclaim- a more creative explanation on why we of U.S. foreign assistance. Tens of mil- ing my time, the gentleman’s position are spending these kinds of monies lions of couples, Mr. Chairman, in the on this is well-known. overseas. developing world are using family plan- Mr. PAUL. Mr. Chairman, I yield my- Ms. PELOSI. Mr. Chairman, who has ning as a direct result of this program, self such time as I may consume. the right to close? Mr. Chairman, the gentlewoman The CHAIRMAN. The gentlewoman and the average number of children per family has declined more than one- makes the point that we should not use from California (Ms. PELOSI), defending third since the 1960’s. the abortion issue to talk about the position of the committee. fungibility and I believe that she is Ms. PELOSI. Mr. Chairman, I yield Three out of four Americans sur- veyed in 1995 wanted to increase or correct. I think it should apply to ev- myself such time as I may consume. erything. This is the reason I do Mr. Chairman, I rise in very strong maintain spending on family planning strongly oppose Export-Import Bank opposition to the Paul amendment, and for poor countries. I was, this year, in money going to Red China. Their viola- it is not even reluctantly. It is with India and saw what happened in those grave disappointment, frankly, that states where there was effective family tions of civil liberties and abortions this amendment is even being pro- planning as opposed to what was the are good reasons why we should not do posed, though I respect the gentle- plight of the people in areas where the it, and yet they are the greatest recipi- man’s right to do so, and I respect the women did not have access to this fam- ent of our foreign aid from the Exim gentleman. ily planning information. Bank. $5.9 billion they have received If this Paul amendment would be en- So I believe that this amendment over the years. acted, it would cause deaths and suf- would be contrary to the interests and So I would say, yes, the gentlewoman fering for millions of women and chil- values of the vast majority of the peo- is correct. All of these programs are dren. I say that without any fear of ple in the world, and certainly, speak- fungible. And I agree that the wording contradiction. ing in our own terms, of the American in the bill says that our funds cannot Of course, we all want to reduce the people. In February 1997, both the be used. But when we put our funds in number of abortions performed House and the Senate showed their with other funds, all of the sudden they throughout the world, and the best way commitment to the USAID Inter- are in a pool and they can shift them to do that is to promote family plan- national Family Planning Program by around and there is a real thing called ning. It seems hard to believe that the voting for the early release of funds fungibility. gentleman would stand up and say he specifically for this program. So once we send money to a country does not know why it is in our national for any reason, we endorse what they b 2230 interests that we improve the plight of do. Therefore, we should be rather cau- children, poor children and families We had to have a vote at that time. tious. As a matter of fact, if we were throughout the world by allowing them Mr. Chairman, I see some of my col- cautious enough we would not be in the the opportunity to make decisions for leagues on their feet, and I am pleased business of taking money at the point themselves about the timing and the to yield to the distinguished gentleman of a gun from our American taxpayer, number of children that a family would from New York (Mr. GILMAN), chair- doing things that they find abhorrent have, or that the impact that this has man of the authorizing committee, the around the world and imposing our will on women, alleviating poverty, raising Committee on International Relations. and our standards on them. the literacy rate, and, again, giving Mr. GILMAN. Mr. Chairman, I want Mr. Chairman, birth control methods more empowerment to women by hav- to associate myself with the remarks are not perfectly safe. As a gyne- ing them control their own destinies. of the gentlewoman from California cologist, I have seen severe complica- The issue of population, certainly we (Ms. PELOSI). Population control, popu- tions from the use of IUDs and Depo- understand that our world’s resources lation planning is so important today. Provera and Norplant. Women can have are finite. I think that most would That is the next crisis that we are to strokes with birth control pill. These agree that it is in our interests as well be confronted with. The growth of pop- are not benign. as the interests of every person living ulations around the world are going to And my colleagues say we want to on this Earth that we husband our re- lead to hunger in impoverished areas. stop the killing and abortions, but sources very carefully, and that in- And where we have hunger and pov- every time that the abortion is done cludes curbing uncontrolled population erty, we soon have hostility. with fungible funds, it is killing a growth. I say that as one who does not The best way to prevent that is to human being, an innocent human support any forced measures in that help with family planning and with being. So for very real reasons, if we end, but voluntary efforts to that end. population control. And I thank the were serious about stopping this and This amendment would close the gentlewoman for her arguments in op- protecting the American taxpayer, most effective avenue to preventing position to this amendment. there is nothing wrong with some of abortions. The gentleman says that Mr. CALLAHAN. Mr. Chairman, will these goals. I agree. As a gynecologist, well, if we spend this money, then the the gentlewoman yield? I would agree with the goals, but they organizations that use this money but Ms. PELOSI. I yield to the gentleman should not be done through coercion. also perform abortions have this under- from Alabama. They should be done through voluntary writing, or the money is fungible, and, Mr. CALLAHAN. Mr. Chairman, it is means through churches and charities. therefore, we are supporting abortions. my duty in this House as chairman of That is the way it should be done. H6836 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Mr. Chairman, we do not have the au- Tibetans in democracy activities and tion, are continuing to wipe out the Ti- thority to coerce our people to work for monitoring the human rights situa- betan people. It is important that the hard, pay their taxes, and then take tion in Tibet made worse by the activi- children be formost in our focus on the money into foreign countries and ties of China. In addition, we would peaceful efforts to return Tibet to its impose our will on them. offer additional funds to be of assist- people and to bring the Dalai Lama The CHAIRMAN. All time for debate ance to the Tibetan refugee program. home. has expired. Mr. Chairman, there is a need for I rise Mr. Chairman to offer an amendment The question is on the amendment something to be done. As we recently which will take $4 million out of the fund which offered by the gentleman from Texas remembered the 10th anniversary of contains the Foreign Ops funding for the (Mr. PAUL). the Tiananmen Square tragedy, we School of the Americans, and redistribute it to The question was taken; and the continue to acknowledge the human the Economic Support Fund and the Emer- Chairman announced that the noes ap- rights abuses imposed by the Chinese gency Refugee and Migrations Assistance peared to have it. government. Whether on the mainland Funds for specific use in Tibet. Mr. PAUL. Mr. Chairman, I demand a or other areas, the Chinese have shown As we recently remembered the 10th anni- recorded vote, and pending that I make themselves to be opposed to the basic versary of the Tainanmen Square tragedy we the point of order that a quorum is not human rights principles we all aspire continue to acknowledge the human rights present. to achieve. abuses imposed upon the people by the Chi- The CHAIRMAN. Pursuant to House The Chinese have tripled their mis- nese government. Whether on the mainland or Resolution 263, further proceedings on sile threat to Taiwan. China does not in other areas, the Chinese have shown them- the amendment offered by the gen- understand they cannot force a free selves to be opposed to the basic human rights principles we all aspire to achieve. tleman from Texas (Mr. PAUL) will be and democratic Taiwan to unify and The Chinese have tripled their missile threat postponed. that they should accept its existence. We still watch as China continues its to Taiwan. China does not understand they The point of no quorum is considered cannot force a free and democratic Taiwan to withdrawn. occupation of Tibet. Since 1951, when the People’s Republic of China invaded unify and that they should accept Taiwan as a AMENDMENT OFFERED BY MS. JACKSON-LEE OF Tibet, hundreds of thousands of Tibet- friendly and independent neighbor and estab- TEXAS ans have been killed outright or have lish diplomatic ties. Ms. JACKSON-LEE of Texas. Mr. died as a result of aggression, torture And we all still watch as China continues its Chairman, I offer an amendment. or starvation. Over 6,000 monasteries occupation of Tibet. Since 1951, when the The CHAIRMAN. The Clerk will des- and temples have been destroyed. People's Republic of China invaded Tibet hun- ignate the amendment. China has implemented a consistent dreds of thousand of Tibetans have been The text of the amendment is as fol- pattern of suppression in an attempt to killed outright or died as the result of aggres- lows: eradicate the Tibetan culture. sion, torture or starvation. Over 6,000 mon- The amendment offered by Ms. JACKSON- The continued population transfer of asteries and temples have been destroyed. LEE of Texas: Chinese to Tibet threatens the exist- China has implemented a consistent pattern of Page 116, after line 5, insert the following: ence of the unique national, cultural, suppression in an attempt to eradicate the Ti- SEC. ll. (a) Of the amounts made avail- and religious identity of the Tibetan betan religion and culture. able in title III under the account ‘‘INTER- people. The fragile Tibetan plateau is The continued population transfer of Chi- NATIONAL MILITARY EDUCATION AND TRAIN- seriously threatened by the exploi- nese to Tibet threatens the existence of the ING’’, $4,000,000 made available for the United tation of its environmental resources unique national, cultural and religious identity States Army School of the Americas is of the Tibetan people. transferred as follows: by China. The Tibetan people have dem- The fragile Tibetan plateau is seriously (1) $2,000,000 is transferred to the account threatened by the exploitation of its environ- ‘‘ECONOMIC SUPPORT FUND’’ in title II and onstrated repeatedly for independence mental resources by China. made available for providing training and from China. Their struggle is non- The Tibetan people have demonstrated re- education of Tibetans in democracy activi- violent and worthy of special atten- peatedly for independence from China. Their ties and for monitoring the human rights sit- tion. It is important to provide funding uation in Tibet. struggle is nonviolent and worthy of special at- to encourage them in their efforts, en- tention. Indeed, when in 1989, the Dalai (2) $2,000,000 is transferred to the account courage them in democracy, encourage ‘‘UNITED STATES EMERGENCY REFUGEE AND MI- Lama, the leader of the Tibetan people, re- them in being able to monitor the var- GRATION ASSISTANCE FUND’’ in title II and ceived the Nobel Peace Prize the international made available for the Tibetan refugee pro- ious human rights abuse. community documented its commitment to a Indeed, when in 1989 the Dalai Lama, gram. free Tibet. (b) Of the funds appropriated in this Act in leader of the Tibetan people, received There are about 110,000 Tibetan refugees title II under the account ‘‘ECONOMIC SUP- the Nobel peace prize, the inter- living in 53 settlements in India, Nepal and PORT FUND’’, not less than $2,250,000 shall be national community documented its Bhutan. Over 1.2 million Tibetans have died in made available for providing training and commitment to free Tibet. There are education of Tibetans in democracy activi- a widespread program of imprisonment, tor- 110,000 Tibetan refugees living in 53 set- ture and executions orchestrated by China. ties and for monitoring the human rights sit- tlements in India, Nepal and Bhutan. uation in Tibet. Tibet's unique culture and Buddhist religion Over 1.2 million Tibetans have died in a The CHAIRMAN. The gentlewoman have been systematically suppressed as widespread program of imprisonment China has looted Tibet's enormous mineral from Texas (Ms. JACKSON-LEE) and a torture and executions orchestrated by wealth, natural resources and priceless art Member opposed each will control 5 China. Tibet’s unique culture and Bud- treasures, transporting them back to China to minutes. dhist religion have been systematically fuel its own economic growth. Mr. CALLAHAN. Mr. Chairman, I re- suppressed as China has looted Tibet’s An apartheid system is in place, following serve a point of order against the enormous mineral wealth, natural re- the mass migration of Chinese into Tibet. amendment. sources, and priceless art treasures, These immigrants now dominate the economy Ms. JACKSON-LEE of Texas. Mr. transporting them back to China to and hold all the best jobs. Employment pros- Chairman, I yield myself such time as fuel its own economic growth. pects for Tibetans are virtually nonexistent. I may consume. Mr. Chairman, I would like to con- Coercive birth control policies, including en- Mr. Chairman, in actuality I wish I gratulate the Committee on Inter- forced abortion and sterilization, are com- did not have to rise to the floor to offer national Relations for its removal of $8 pleting the policies of wiping out Tibet's iden- this amendment. I wish that Tibet was million from the World Bank to avoid tify forever. We watch China, the world's most living in peace and harmony. I wish the this so-called apartheid system where oppressive police state, control Tibet. There Dalai Lama who is in exile, who I had there was a movement of 50,000 Chinese are between a quarter and half a million Chi- an opportunity to meet and discuss farmers into Tibet creating almost an nese troops in Tibet. China permits no news these issues with, was free to go back apartheid system where the Tibetans media in Tibet. Amnesty International and for- to Tibet. would not have the good jobs or oppor- eign diplomats are refused permission to visit. My amendment offers to provide $4 tunities, but the Chinese would. Tibetans in Tibet are liable to interrogation, im- million to the Economic Support Fund Coercive birth control policies, in- prisonment and torture for having unofficial to provide training and education of cluding forced abortion and steriliza- contact with foreigners. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6837 Tibet covers an area the size of Western Mr. CALLAHAN. Mr. Chairman, will chairman, ranking member of the sub- Europe and is the world's highest plateaus. the gentlewoman yield? committee and the Chairman of the The Culture is magnificent and unique. Until Ms. JACKSON-LEE of Texas. I yield Committee on International Relations 1950, Tibet had retained that ancient culture. to the gentleman from Alabama. as we try to bring peace and dignity to My amendment would offer additional hope Mr. CALLAHAN. Mr. Chairman, I the Tibetan people. to the Tibetan people that the international would point out that on page 39 of the Mr. Chairman, I ask unanimous con- community, particularly the United States is committee report, we recommend that sent to withdraw my amendment. supportive of their independence and that we $250,000 be made available for democ- The CHAIRMAN. Is there objection are providing resources for improved systems racy training and education activities to the request of the gentlewoman and enhancement of aid programs. for Tibetans. In addition, on page 55 of from Texas? The United States Army School of the the report, we recommend $2 million There was no objection. Americas will have $4 million of its appropria- for continued humanitarian assistance AMENDMENT OFFERED BY MR. PAUL tions transferred to a true democratic cause. for the Tibetan refugees. Mr. PAUL. Mr. Chairman, I offer an Our efforts to provide international military So the committee has already ad- amendment. training and education to the armed forces in dressed the concerns of the gentle- The CHAIRMAN. The Clerk will des- Latin America has at best led to questionable woman from Texas. We do not ear- ignate the amendment. practices by its graduates. We want democ- mark, as she well knows, in our bill. The text of the amendment is as fol- racy. We want to see our funds used to sup- This amendment would earmark and, lows: port the development of democracies. The Ti- therefore, I must continue to, number betans want democracy. Some graduates of Amendment offered by Mr. PAUL: one, reserve my point of order. Page 116, after line 5, insert the following: the School of the Americas have not dem- Mr. CALLAHAN. Mr. Chairman, I LIMITATION ON FUNDS FOR EXPORT-IMPORT onstrated such a commitment. claim the time in opposition to the BANK OF THE UNITED STATES, OVERSEAS PRI- Graduates of the United States Army School amendment. of the Americas include some of the worst VATE INVESTMENT CORPORATION, AND THE The CHAIRMAN. The gentleman TRADE AND DEVELOPMENT AGENCY human rights abusers in the Western Hemi- from Alabama (Mr. Callahan) is recog- sphere, including 19 Salvadoran soldiers SEC. . None of the funds made available nized for 5 minutes. pursuant to this Act for the Export-Import linked to the 1989 murder of six Jesuit priests Mr. CALLAHAN. Mr. Chairman, I Bank of the United States, the Overseas Pri- and their housekeeper and her daughter. Two yield such time as she may consume to vate Investment Corporation, or the Trade of the three officers cited by the Guatemalan the gentlewoman from California (Ms. and Development Agency, may be used to archbishop's office are suspected of the killing PELOSI). enter into any new obligation, guarantee, or of anthropologist Myrna Mack in 1992, as well Ms. PELOSI. Mr. Chairman, the gen- agreement on or after the date of the enact- ment of this Act. as three top leaders of the notorious Guate- tlewoman from Texas (Ms. JACKSON- malan military intelligence unit D±2 were grad- LEE) I commend for bringing the plight The CHAIRMAN. Pursuant to the uates of the School of the Americas. of Tibet to the attention once again of order of the House of Thursday, July One-half of the 247 Colombian army officers our colleagues. The gentleman from 29, 1999, the gentleman from Texas (Mr. cited in the definitive work on Colombian Alabama (Mr. CALLAHAN), our distin- PAUL) and the gentleman from Ala- human rights abuses, El Terrorismo de Estado guished chairman, has been most coop- bama (Mr. CALLAHAN) each will control en Colombia, in 1992 were graduates of this erative on this issue of Tibet. It is a 5 minutes. School. priority for many of us on the com- The gentleman from Texas (Mr. Ten of the 30 Chilean officers against whom mittee. And, of course, the gentleman PAUL) is recognized for 5 minutes. a Spanish judge in 1998 requested indict- from New York (Mr. GILMAN), chair- (Mr. PAUL asked and was given per- ments for crimes of terrorism, torture and dis- man of the authorizing committee, has mission to revise and extend his re- appearance as well as the El Salvador death been a champion on the Tibet issue for marks.) squad leader Roberto D'Aubuisson graduated a long time. Mr. PAUL. Mr. Chairman, I yield my- from the School of the Americas. self such time as I may consume. Two of the three killers of Archbishop Oscar But as the gentleman from Alabama Mr. Chairman, this amendment pro- Romero of El Salvador and 10 of the 12 offi- said, the funds are in the bill already vides that no funds for new obligations, cers responsible for the murder of 900 civil- because this is a priority. The plight of guarantees, or agreements can be ians in the El Salvadoran village El Mozote the people of Tibet challenges the con- issued under the Export-Import Bank are graduates. science of the world and by and large And the most notorious for us, three of the the world ignores their plight. Our bill under OPIC or under the Trade Devel- five officers involved in the 1980 rape and does not, and the more attention we opment Agency. This again is an at- murder of four United States churchwomen in can call, the better. tempt to try to slow up the amount of El Salvador graduated from the School of the Mr. Chairman, even though this may dollars that flow into corporations and Americas. not be able to be received by the full for their benefit specifically as well as Reducing funding for this School does not House this evening, nonetheless, the our foreign competitors. prevent the United States from providing ap- bright light that the gentlewoman fo- China, for instance, receives the larg- propriate training for military personnel of Latin cuses on Tibet once again is appre- est amount of money from the Export- American armed forces. It is conceivable that ciated and will contribute to freedom Import Bank. Outstanding liabilities by our actions a better military training and there one day. for the Export-Import Bank is now $55 education program can be developed. With a Mr. CALLAHAN. Mr. Chairman, I billion. There is $5.9 billion that have most improved screening process for potential yield such time as she may consume to been granted to the Chinese. students. the gentlewoman from Texas (Ms. Last week we had a very important I urge you to support my amendment for de- JACKSON-LEE). vote on trade. It was hotly debated mocracy. Ms. JACKSON-LEE of Texas. Mr. over human rights issues. I voted to Mr. Chairman, I yield to the gen- Chairman, I would like to conclude by trade with China because I believe it is tleman from New York (Mr. GILMAN), simply thanking both the ranking proper to trade with people. We are less chairman of the Committee on Inter- member and the chairman for the ef- likely to fight with them. And in this national Relations. forts that have been made in the Sub- institution, too often we use our terms Mr. GILMAN. Mr. Chairman, the gen- committee on Foreign Operations, Ex- carelessly and we talk about free trade tlewoman from Texas (Ms. JACKSON- port Financing and Related Programs, as being something which is managed LEE) has done an outstanding job of fo- as well as that of the chairman of the trade. Free trade here generally means cussing attention on the violations by Committee on International Relations. that we will have the NAFTA people the People’s Republic of China with re- My effort tonight was to provide more managing trade, the World Trade Orga- gard to the Tibetan people. We cannot resources because of the horrific situa- nization managing trade, and we will give enough attention to the occupa- tion in Tibet. The abuse of human subsidize our businesses. tion of the People’s Republic of China rights and the exile of the Dalai Lama. Just this past week we had the World in Tibet and we welcome the gentle- I would like to continue to work with Trade Organization rule against us say- woman’s remarks. all of the committees and as well the ing that we grant $2 billion worth of H6838 CONGRESSIONAL RECORD — HOUSE August 2, 1999 tax benefits to our own corporations It is time we look carefully at these ple can participate in global economy and they ruled that that was illegal. subsidies. is to have the same advantages as do This is all done in the name of free Mr. CALLAHAN. Mr. Chairman, I Canada, as do Japan, as do Germany, as trade. rise in opposition to the amendment. do France. We need this in order to I say that we should have free trade. Mr. Chairman, I yield 11⁄2 minutes to work today in a global economy. We should trade with our friends and the gentlewoman from California (Ms. So we are not talking about losing with anybody who would trade that we PELOSI). money. That is not the question here. are not at war with. We should really, Ms. PELOSI. Mr. Chairman, I rise in Ex-Im bank is not losing money. We really be careful about issuing sanc- opposition to the amendment. In doing are talking about whether or not we tions. But here we are, last week we so, I want to correct the record. Those are going to have a financing capa- had the great debate and a lot of people of us who were asking for raising tar- bility that will enable American jobs could not stand the idea of trading iffs on products coming from China to be exported to all of the countries with Red China because of their human were not interested in cutting off trade that the gentleman from Texas men- rights record and I understand that, al- with China. What we were doing is to tioned. though I did not accept that position. say, let us have the same reciprocity So, Mr. Chairman, I think it is the But this is the time to do something between our two countries as we would same debate that we had on OPIC ex- about it. expect from other countries. cept this one is twice as bad because, Trading with Red China under true But then to use that and say it is all also, he closes down the Ex-Im Bank as free trade is a benefit to both of us. It right to give a $70 billion trade surplus well and cuts off the ability of Amer- is a benefit to our consumers and it to the regime so they can strengthen ican business people to do business in benefits both countries because we are their hold on the people of China but most any foreign country. talking with people and we are not we should take out our concerns with I urge opposition to the amendment. fighting with them. But it gets to be a China on the Ex-Im Bank I think is Mr. Chairman, I reserve the balance serious problem when we tax our peo- very inappropriate. That is why I op- of my time. ple in order to benefit those who are re- pose it. Mr. PAUL. Mr. Chairman, I yield my- ceiving the goods overseas. The Ex-Im Bank does not subsidize self such time as I may consume. the Chinese government. The Ex-Im Mr. Chairman, I would like to point b 2245 Bank subsidizes U.S. manufacturers out that it is truly a subsidy to a for- Now, if there is a worldwide down- selling into countries, including China. eign corporation, a foreign govern- turn, this $55 billion of liabilities out The Paul amendment would not ment. For Red China, corporations and there could be very significant in how allow the Export-Import Bank to as- governments are essentially identical. it is going to be paid back. The Chinese sume any new business. This would They are not really quite in the free right now, their economy is not all mean that all of the Ex-Im’s resources market yet. that healthy. They are talking about a would be used to liquidate existing But the gentleman from Alabama devaluation. transactions. In other words, Ex-Im (Mr. CALLAHAN) points out that, no, So this is a liability that the Amer- would slowly, gradually shut down. that is not true. The money does not go ican taxpayers are exposed to. If we do I agree with the gentleman that we to Red China and they buy things; we have a concern about Red China and must subject the Ex-Im, OPIC, and all just give it directly. We do not even the Chinese, yes, let us work with of these institutions to harsh scrutiny. send it round trip. This is true. them, let us trade with them, but let us Are they performing the task that is We take taxpayers’ money. We take not subsidize them. their established purpose, to promote taxpayers’ guarantee. We give them to This is what I am trying to do. I am U.S. exports? The Ex-Im Bank, I think, those huge five corporations that do 67 trying to stop this type of subsidies. So from the scrutiny we subjected to in percent of the business. We give them my bill, my amendment would stop any our committee does that. the money. But where do the goods go? new obligation. It does not close down The gentleman’s amendment is ill- Do the goods go to the American tax- Export-Import Bank. It allows all the advised. The same would apply to payers? No. They get all of the liabil- old loans to operate and function, but OPIC, which, by the way, does not op- ities. The subsidies help the Chinese. no new obligations can be made, no erate in China. So, technically, yes, we do not send new guaranties, and no agreement, So I urge our colleagues to oppose the money there. But who is going to with the idea that someday we may this amendment for many more rea- pay it back? The Chinese pays the loan truly move to free trade, that we do sons than I have time to go into. back. If they default, who pays the bill not recognize free trade as being sub- Mr. CALLAHAN. Mr. Speaker, I yield if the Chinese defaults? Who pays the sidized trade as well as internationally myself such time as I may consume. bill if they default? It is obviously the managed trade with organizations such Mr. Chairman, we have already dis- taxpayers. as NAFTA and World Trade Organiza- cussed the impact of the closing down What I am pointing out is that $5.9 tion. of OPIC earlier tonight, and my col- billion that the Chinese now had bor- Those institutions are not free trade leagues can see that the will of the rowed from us, from the Export-Import institutions. They are managed trade House certainly agreed with those of us Bank, is a significant obligation that, institutions for the benefit of special who think that we must have this com- too, is on the backs of the American interests. That is what this type of petitive level playing field with the taxpayer. funding is for is for the benefit of spe- rest of the G–7 Nations. So I urge support for the amendment cial interests, whether it is our domes- The gentleman from Texas (Mr. because, if we are serious about free tic corporation, which, indeed, I would PAUL) is absolutely right when it trade, just please do not call it free recognize does receive some benefit. comes to basic sounding good things, a trade anymore. Call it managed trade. Sixty-seven percent of all the funding feel-good amendment, when he talks Call it subsidized trade. Call it special of the Export-Import Bank goes to, not about Ex-Im Bank giving money to Red interest trade. But please do not call it a large number of companies, to five China. Ex-Im Bank does not give free trade anymore, because it is not companies. I will bet my colleagues, if money to Red China. Ex-Im Bank loans free trade. they look at those five companies in money to American businesses to es- Mr. Chairman, I yield back the bal- this country that gets 67 percent of the tablish programs in Red China. There ance of my time. benefit and look at their political ac- is no prohibition against Red China Mr. CALLAHAN. Mr. Chairman, I tion records, my colleagues might be coming to the United States to invest yield myself such time as I may con- enlightened. I mean, I bet my col- with the support of a similar organiza- sume. leagues we would learn something tion in China. In closing, Mr. Chairman, I would about where that money goes, because What we are saying is we want to be just like to say that the $16 million, or they are big corporations and they ben- just like the rest of the world when it whatever figure he is using that goes to efit, and they will have their defenders comes to global economy. This is a China, goes in the form of things like here. global economy. The only way our peo- airplane. Yes, a lot of it goes to Boeing, August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6839 which is a huge corporation. But the tions for the Departments of Com- hereafter in the Extensions of Re- benefit that the American taxpayers merce, Justice, and State, the Judici- marks.) receive are the thousands of jobs that ary, and related agencies for the fiscal f Boeing provides in order to export this year ending September 30, 2000, and for plane to China who pays for it. If in- other purposes, which was referred to $800 BILLION TAX CUT, BUT NOT deed there was some problem, we can the Union Calendar and ordered to be FOR THE MIDDLE OR LOWER always go and get the airplanes back. printed. CLASSES It is not like we are giving something The SPEAKER pro tempore. Under The SPEAKER pro tempore. Under a away. We are creating jobs. I might tell the rule, all points of order are re- previous order of the House, the gen- my colleagues that many of those Boe- served on the bill. tleman from Massachusetts (Mr. ing jobs are located in the State of Ala- f OLVER) is recognized for 5 minutes. bama. SPECIAL ORDERS Mr. OLVER. Mr. Speaker, I am sure Mr. Chairman, I yield back the bal- that I am making friends with all of The SPEAKER pro tempore. Under the members of the staff by taking 5 ance of my time. the Speaker’s announced policy of Jan- The CHAIRMAN. The question is on uary 6, 1999, and under a previous order minutes at this hour, including the the amendment offered by the gen- of the House, the following Members Speaker, but since I have stayed here this long, I will take the 5 minutes. tleman from Texas (Mr. PAUL). will be recognized for 5 minutes each. The SPEAKER pro tempore. Under a Mr. Speaker, we are told that this is The question was taken; and the the week that the main business is Chairman announced that the noes ap- previous order of the House, the gen- tleman from Texas (Mr. PAUL) is recog- going to be, for this Congress, is the peared to have it. nized for 5 minutes. final passage of an $800 billion tax cut. Mr. PAUL. Mr. Chairman, I demand a (Mr. PAUL addressed the House. His The Republican leadership says that recorded vote. remarks will appear hereafter in the their tax cut, at least that one which The CHAIRMAN. Pursuant to House Extensions of Remarks.) passed the House of Representatives, is Resolution 263, further proceedings on f for the middle class. But I would like the amendment offered by the gen- The SPEAKER pro tempore. Under a to raise that question. The bill which previous order of the House, the gen- passed the House of Representatives tleman from Texas (Mr. PAUL) will be about 2 weeks ago had the following postponed. tleman from Maine (Mr. ALLEN) is rec- ognized for 5 minutes. features: the 1.25 million taxpayers rep- Mr. DAVIS of Illinois. Mr. Chairman, I rise in resenting the 1 percent wealthiest, (Mr. ALLEN addressed the House. His support of the Payne amendment. richest portion of the population each, remarks will appear hereafter in the on average, got $54,000 of tax reduction. Mr. Chairman, the UN World Food Program Extensions of Remarks.) (WFP) last Tuesday expressed fears of a Those are the 1 percent whose incomes f is more than $300,000 per year. ``worsening humanitarian crisis'' in southern The SPEAKER pro tempore. Under a At the other end of the scale, start- Sudan, resulting from the inability to transport previous order of the House, the gentle- ing from the bottom, from the lowest food to those who need it. This ban has made woman from Maryland (Mrs. MORELLA) income person in this society issuing a most of the region inaccessible to relief agen- is recognized for 5 minutes. tax return, if we took all 95 percent, cies trying to deliver urgent humanitarian as- (Mrs. MORELLA addressed the starting from the lowest income and sistance to some 150,000 people. House. Her remarks will appear here- coming up to an income of $125,000 a after in the Extensions of Remarks.) year, all 95 percent of that population, Mr. Chairman, the funds appropriated by f this amendment which is more than all 120 million would have received 39 The SPEAKER pro tempore. Under a percent of the total tax cut; whereas, $4,000,000 will be used for rehabilitation and previous order of the House, the gen- the 1.25 million, the wealthiest 1.25 economic recovery in areas of Sudan which tleman from New Jersey (Mr. PALLONE) million, or 1 percent, would have re- have endured many hardships due to their re- is recognized for 5 minutes. ceived 45 percent of that total tax re- ligious and political beliefs. These funds will (Mr. PALLONE addressed the House. duction. The 1 percent richest of Amer- help support education, crop growth and other His remarks will appear hereafter in icans got more than all 95 percent of needs necessary for the basic existence of the Extensions of Remarks.) our population whose income is be- these people. f neath 125,000. Mr. Chairman, this is a humane, well The SPEAKER pro tempore. Under a If I may put that in a slightly dif- previous order of the House, the gen- ferent way, if those who may still be thought out, gesture offered by the gentleman tleman from Tennessee (Mr. BRYANT) is watching would consider 100 people, 100 from New Jersey and I urge all Members to recognized for 5 minutes. people, one of whom has income over support this amendment. (Mr. BRYANT addressed the House. $300,000 and consider that we might Mr. CALLAHAN. Mr. Chairman, I His remarks will hereafter appear in have $100 of tax reduction to be able to move that the Committee do now rise. the Extensions of Remarks.) distribute among those 100 people, that The motion was agreed to. f that one person whose income is great- Accordingly, the Committee rose; The SPEAKER pro tempore. Under a er than $300,000 would get $45 of the and the Speaker pro tempore (Mr. previous order of the House, the gen- total of $100 that is available for all tax TANCREDO) having assumed the chair, tleman from California (Mr. SHERMAN) reduction for all Americans. Mr. THORNBERRY, Chairman of the is recognized for 5 minutes. b 2300 Committee of the Whole House on the (Mr. SHERMAN addressed the House. Whereas 95 people, starting at the State of the Union, reported that that His remarks will appear hereafter in Committee, having had under consider- lowest income, up to the persons who the Extensions of Remarks.) might have $125,000 of income, that ation the bill (H.R. 2606) making appro- f priations for foreign operations, export group of 95 people would find that they The SPEAKER pro tempore. Under a were able to receive only a total of $39 financing, and related programs for the previous order of the House, the gen- fiscal year ending September 30, 2000, divided among the 95 of them. tleman from Michigan (Mr. SMITH) is Now, I do not know how many people and for other purposes, had come to no recognized for 5 minutes. resolution thereon. would believe that that was a fair dis- (Mr. SMITH of Michigan addressed f tribution that would suggest that this the House. His remarks will appear tax cut was for the middle class. That REPORT ON H.R. 2670, DEPART- hereafter in the Extensions of Re- is hardly a middle class tax cut. In MENTS OF COMMERCE, JUSTICE, marks.) fact, it is designed to make the already AND STATE, THE JUDICIARY, f rich a great deal richer. And that the AND RELATED AGENCIES APPRO- The SPEAKER pro tempore. Under a middle class, those people between in- PRIATIONS ACT, 2000 previous order of the House, the gen- comes of $20,000 and perhaps $80,000 per Mr. CALLAHAN, from the Com- tleman from Florida (Mr. HASTINGS) is year, would receive $1 or $2 a day, hard- mittee on Appropriations, submitted a recognized for 5 minutes. ly a middle class tax cut. privileged report (Rept. No. 106–283) on (Mr. HASTINGS of Florida addressed But that is only a small part of the the bill (H.R. 2670) making appropria- the House. His remarks will appear story. The rest of the story is what the H6840 CONGRESSIONAL RECORD — HOUSE August 2, 1999 Republican leadership makes impos- SENATE BILL REFERRED 3312. A letter from the Secretary of De- sible if this rich-get-very-much-richer fense, transmitting notification of the ap- A bill of the Senate of the following proval of Lieutenant General John B. Hall, bill were to become law. I forgot to title was taken from the Speaker’s bring the chart that I have here, but I Jr., United States Air Force, and his ad- table and, under the rule, referred as vancement to the grade of lieutenant general will get it because I would like to show follows: on the retired list; to the Committee on the American people what happens on S. 1468. An act to authorize the minting Armed Services. just one issue, and that is the issue of and issuance of Capitol Visitor Center Com- 3313. A letter from the Secretary of De- the Nation’s debt. memorative coins, and for other purposes; to fense, transmitting notification of the ap- If this tax bill is passed, as it was the Committee on Banking and Financial proval of the retirement of Lieutenant Gen- passed in the House of Representatives, Services. eral John A. Dubia, United States Army, and his advancement to the grade of lieutenant then it would be nearly impossible to f reduce the Nation’s debt. Let me show general on the retired list; to the Committee on Armed Services. this chart. This chart shows where the ADJOURNMENT 3314. A letter from the Secretary of De- present $3.7 trillion of debt that is pub- Mr. OLVER. Mr. Speaker, I move fense, transmitting notification of the ap- licly held was created. that the House do now adjourn. proval of the retirement of Lieutenant Gen- The first 38 presidents, from George The motion was agreed to; accord- eral Patrick M. Hughes, United States Army, Washington, our first president, ingly (at 11 o’clock and 3 minutes and his advancement to the grade of lieuten- ant general on the retired list; to the Com- through Mr. Ford, our 38th president, p.m.), under its previous order, the produced $549 billion of debt. President mittee on Armed Services. House adjourned until tomorrow, Tues- 3315. A letter from the Under Secretary for Carter, in his 4 years, created an addi- day, August 3, 1999, at 9 a.m., for morn- Domestic Finance, Department of the Treas- tional $236 billion of debt. President ing hour debates. ury, transmitting the annual report on the Reagan created, in his 8 years, $1.4 tril- f Resolution Funding Corporation for the cal- lion. President Bush, $1.1 trillion, and endar year 1998; to the Committee on Bank- President Clinton, in his almost 7 EXECUTIVE COMMUNICATIONS, ing and Financial Services. years, an additional $472 billion. ETC. 3316. A letter from the Acting Under Sec- f retary, Rural Development, Department of Under clause 8 of rule XII, executive Agriculture, transmitting the Department’s LEAVE OF ABSENCE communications were taken from the final rule—Guaranteed Rural Rental Housing By unanimous consent, leave of ab- Speaker’s table and referred as follows: Program (RIN: 0575–AC14) received June 14, 1999, pursuant to 5 U.S.C. 801(a)(1)(A); to the 3303. A letter from the the Director, the Of- sence was granted to: Committee on Banking and Financial Serv- fice of Management and Budget, transmit- Mr. ABERCROMBIE (at the request of ices. ting the cumulative report on rescissions Mr. GEPHARDT) for today on account of 3317. A letter from the President and and deferrals, pursuant to 2 U.S.C. 685(e); (H. official business. Chairman, Export-Import Bank, transmit- Doc. No. 106–108); to the Committee on Ap- Mr. REYES (at the request of Mr. GEP- ting a report involving U.S. exports to propriations and ordered to be printed. China, pursuant to 12 U.S.C. 635(b)(3)(i); to HARDT) for today on account of attend- 3304. A communication from the President the Committee on Banking and Financial ing memorial service for the five sol- of the United States, transmitting a request diers whose plane crashed in Colombia. Services. for emergency supplemental appropriations 3318. A letter from the President and Mrs. CLAYTON (at the request of Mr. for the Department of Defense; (H. Doc. No. Chairman, Export-Import Bank, transmit- GEPHARDT) between 5:00 p.m. and 8:30 106–110); to the Committee on Appropriations ting a report involving U.S. exports to p.m. today on account of official busi- and ordered to be printed. Japan, pursuant to 12 U.S.C. 635(b)(3)(i); to ness. 3305. A letter from the Comptroller, Under the Committee on Banking and Financial Secretary of Defense, transmitting notifica- Mr. BILBRAY (at the request of Mr. Services. tion of a violation of the Antideficiency Act; ARMEY) for today and the balance of 3319. A letter from the Board of Governors, to the Committee on Appropriations. Federal Reserve System, transmitting a re- the week on account of personal rea- 3306. A letter from the Acquisition and sons. port on the profitability of the credit card Technology, Under Secretary of Defense, operations of depository institutions, pursu- Mr. PETERSON of Pennsylvania (at transmitting a report on the Performance of ant to 15 U.S.C. 1637; to the Committee on the request of Mr. ARMEY) for today Commercial Activities for Fiscal Year 1998, Banking and Financial Services. and the balance of the week on account pursuant to 10 U.S.C. 2304 nt.; to the Com- 3320. A letter from the Director, Office of of medical reasons. mittee on Armed Services. Management and Budget, transmitting a re- f 3307. A letter from the Personnel and Read- port on direct spending or receipts legisla- iness, Under Secretary of Defense, transmit- tion; to the Committee on the Budget. SPECIAL ORDERS GRANTED ting the Department’s Defense Manpower 3321. A letter from the Secretary of Edu- By unanimous consent, permission to Requirements Report for FY 2000, pursuant cation, transmitting Final Regulations Cor- to 10 U.S.C. 115(b)(3)(A); to the Committee on address the House, following the legis- rection—Assistance to States for the Edu- Armed Services. cation of Children with Disabilities (RIN: lative program and any special orders 3308. A letter from the Health Affairs, As- 1820–AB40), pursuant to 20 U.S.C. 1232(f); to heretofore entered, was granted to: sistant Secretary of Defense, transmitting a the Committee on Education and the Work- (The following Members (at the re- report on TRICARE Head Injury Policy and force. quest of Mr. OLVER) to revise and ex- Provider Network Adequacy; to the Com- 3322. A letter from the Acting Assistant tend their remarks and include extra- mittee on Armed Services. General Counsel for Regulatory Law, Depart- neous material:) 3309. A letter from the Deputy Secretary of ment of Energy, transmitting a report enti- Mr. ALLEN for 5 minutes, today. Defense, transmitting notification of the de- tled, ‘‘Interface with the Defense Nuclear Fa- cision to waive the limitations for the num- Mr. PALLONE for 5 minutes, today. cilities Safety Board’’; to the Committee on ber of management headquarters and head- Mr. SHERMAN for 5 minutes, today. Commerce. quarters support activities staff in the De- 3323. A letter from the Assistant General Mr. HASTINGS of Florida for 5 min- partment of Defense as of October 1, 1998; to Counsel for Regulatory Law, Department of utes, today. the Committee on Armed Services. Energy, transmitting a report on Conference Mr. OLVER for 5 minutes, today. 3310. A letter from the Secretary of De- Management; to the Committee on Com- (The following Members (at the re- fense, transmitting notification of the ap- merce. quest of Mr. PAUL) to revise and extend proval of the retirement of General Dennis J. 3324. A letter from the Assistant General their remarks and include extraneous Reimer, United States Army, and his ad- Counsel for Regulatory Law, Office of Pro- material:) vancement to the grade of general on the re- curement and Assistance Management, De- Mr. GUTKNECHT for 5 minutes, August tired list; to the Committee on Armed Serv- partment of Energy, transmitting a report 4. ices. regarding Deviations, Local Clauses, Uni- 3311. A letter from the Secretary of De- Mrs. MORELLA for 5 minutes, today. form Contract Format, and Clause Matrix; to fense, transmitting notification that the De- the Committee on Commerce. Mr. BRYANT for 5 minutes, today. partment of Defense intends to obligate up 3325. A letter from the Director, Depart- Mr. MORAN of Kansas for 5 minutes, to $438.4 million in FY 1999 funds to imple- ment of Health and Human Services, trans- August 3. ment the Cooperative Threat Reduction Pro- mitting the NIEHS Report on Health Effects Mr. DEMINT for 5 minutes, August 3. gram under the FY 1999 Department of De- from Exposure to Power-Line Frequency Mr. SMITH of Michigan for 5 minutes, fense Appropriations Act; to the Committee Electric and Magnetic Fields; to the Com- today. on Armed Services. mittee on Commerce. August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6841 3326. A letter from the Director, Office of 2776(c); to the Committee on International 3351. A letter from the Secretary of Labor, Congressional Affairs, Nuclear Regulatory Relations. transmitting the Semiannual Reports of the Commission, transmitting Instruction Con- 3339. A letter from the Assistant Secretary Corporation’s Executive Director and the Of- cerning Prenatal Radiation Exposure; to the for Legislative Affairs, Department of State, fice of Inspector General, respectively, pur- Committee on Commerce. transmitting certification of a proposed suant to 5 U.S.C. app. (Insp. Gen. Act) sec- 3327. A letter from the Director, Office of Manufacturing License Agreement with Ger- tion 5(b); to the Committee on Government Congressional Affairs, Nuclear Regulatory many [Transmittal No. DTC 76–99], pursuant Reform. Commission, transmitting a report on De- to 22 U.S.C. 2776(d); to the Committee on 3352. A letter from the Chairman, Council sign and Fabrication Code Case Accept- International Relations. of the District of Columbia, transmitting a ability, ASME Section III, Division 1; to the 3340. A letter from the Assistant Secretary copy of D.C. ACT 13–87, ‘‘Moratorium on the Committee on Commerce. for Legislative Affairs, Department of State, Issuance of New Retailer’s Licenses Class B 3328. A letter from the Director, Office of transmitting certification of a proposed Temporary Amendment Act of 1999’’ received Congressional Affairs, Nuclear Regulatory Manufacturing License Agreement for the June 18, 1999, pursuant to D.C. Code section Commission, transmitting the Commission’s export of defense services under a contract 1–233(c)(1); to the Committee on Government Management Directive 5.6, ‘‘Integrated Ma- with Italy [DTC 47–99], pursuant to 22 U.S.C. Reform. terials Performance Evaluation Program’’; 2776(d); to the Committee on International 3353. A letter from the Chairman, Council to the Committee on Commerce. Relations. of the District of Columbia, transmitting a 3329. A letter from the Secretary of En- 3341. A letter from the Assistant Secretary copy of D.C. ACT 13–91, ‘‘O Street Wall Res- ergy, transmitting the 1998 Annual Report on for Legislative Affairs, Department of State, toration Temporary Act of 1999’’ received Low-Level Radioactive Waste Management transmitting certification of a proposed June 18, 1999, pursuant to D.C. Code section Progress; to the Committee on Commerce. Manufacturing License Agreement for the 1–233(c)(1); to the Committee on Government 3330. A letter from the Secretary of Health export of defense services under a contract Reform. and Human Services, transmitting a draft of with Canada [Transmittal No. DTC 44–99], 3354. A letter from the Chairman, Council proposed legislation entitled, ‘‘Develop- pursuant to 22 U.S.C. 2776(c); to the Com- of the District of Columbia, transmitting a mental Disabilities Assistance Amendments mittee on International Relations. copy of D.C. ACT 13–86, ‘‘Metropolitan Police of 1999’’; to the Committee on Commerce. 3342. A letter from the Assistant Secretary Department Excepted Service Sworn Em- 3331. A letter from the Director, Defense for Legislative Affairs, Department of State, ployees’ Compensation System Amendment Security Cooperation Agency, transmitting transmitting certification of a proposed Act of 1999’’ received June 18, 1999, pursuant notification concerning the Department of Technical Assistance License Agreement to D.C. Code section 1–233(c)(1); to the Com- the Army’s Proposed Letter(s) of Offer and with Spain [Transmittal No. DTC 77–99], pur- mittee on Government Reform. Acceptance (LOA) to Egypt for defense arti- suant to 22 U.S.C. 2776(d); to the Committee 3355. A letter from the Chairman, Council cles and services (Transmittal No. 99–23), on International Relations. of the District of Columbia, transmitting a pursuant to 22 U.S.C. 2776(b); to the Com- 3343. A letter from the Acting Deputy copy of D.C. ACT 13–82, ‘‘Mount Horeb Plaza mittee on International Relations. Under Secretary (International Programs), Symbolic Street Designation Act of 1999’’ re- 3332. A letter from the Director, Defense Office of the Under Secretary of Defense, ceived June 18, 1999, pursuant to D.C. Code Security Cooperation Agency, transmitting transmitting a copy of Transmittal No. 08–99 section 1–233(c)(1); to the Committee on Gov- notification concerning the Department of which constitutes a Request for Final Ap- ernment Reform. the Army’s Proposed Letter(s) of Offer and proval for the Project Arrangement (PA) be- 3356. A letter from the Chairman, Council Acceptance (LOA) to Egypt for defense arti- tween the U.S. and Sweden concerning the of the District of Columbia, transmitting a cles and services (Transmittal No. 99–22), Foliage Penetration Radar Sensor Project, copy of D.C. Act 13–85, ‘‘Peoples Involvement pursuant to 22 U.S.C. 2776(b); to the Com- pursuant to 22 U.S.C. 2767(f); to the Com- Corporation Equitable Real Property Tax mittee on International Relations. mittee on International Relations. Relief Act of 1999’’ received June 18, 1999, 3333. A letter from the Assistant Secretary 3344. A letter from the Assistant Legal Ad- pursuant to D.C. Code section 1–233(c)(1); to for Legislative Affairs, Department of State, viser for Treaty Affairs, Department of the Committee on Government Reform. transmitting certification of a proposed li- State, transmitting Copies of international 3357. A letter from the Chairman, Council cense for the export of defense articles or de- agreements, other than treaties, entered into of the District of Columbia, transmitting a fense services sold commercially under a by the United States, pursuant to 1 U.S.C. copy of D.C. Act 13–83, ‘‘Lowell School, Inc., contract to Greece [Transmittal No. DTC 81– 112b(a); to the Committee on International Real Property Tax Exemption and Equitable 99], pursuant to 22 U.S.C. 2776(c); to the Com- Relations. Real Property Tax Relief Act of 1999’’ re- mittee on International Relations. 3345. A letter from the Assistant Legal Ad- ceived June 18, 1999, pursuant to D.C. Code 3334. A letter from the Assistant Secretary viser for Treaty Affairs, Department of section 1–233(c)(1); to the Committee on Gov- for Legislative Affairs, Department of State, State, transmitting Copies of international ernment Reform. transmitting certification of a proposed li- agreements, other than treaties, entered into 3358. A letter from the Chairman, Council cense for the export of defense articles or de- by the United States, pursuant to 1 U.S.C. of the District of Columbia, transmitting a fense services sold commercially under a 112b(a); to the Committee on International copy of D.C. Act 13–84, ‘‘Closing and Dedica- contract to Singapore [Transmittal No. DTC Relations. tion of a Public Alley in Square 275, S.O. 95– 82–99], pursuant to 22 U.S.C. 2776(c); to the 3346. A letter from the Assistant Secretary 62, Act of 1999’’ received June 18, 1999, pursu- Committee on International Relations. for Legislative Affairs, Department of State, ant to D.C. Code section 1–233(c)(1); to the 3335. A letter from the Assistant Secretary transmitting notification that effective July Committee on Government Reform. for Legislative Affairs, Department of State, 4, 1999, the 20% danger pay allowance for 3359. A letter from the Federal Co-Chair- transmitting certification of a proposed Central African Republic was eliminated, man, Appalachian Regional Commission, Manufacturing License Agreement with Tur- pursuant to 5 U.S.C. 5928; to the Committee transmitting the semiannual report of the key [Transmittal No. DTC 141–98], pursuant on International Relations. Inspector General for the period October 1, to 22 U.S.C. 2776(d); to the Committee on 3347. A letter from the Assistant Legal Ad- 1998, through March 31, 1999, pursuant to 5 International Relations. viser for Treaty Affairs, Department of U.S.C. app. (Insp. Gen. Act) section 5(b); to 3336. A letter from the Assistant Secretary State, transmitting Copies of international the Committee on Government Reform. for Legislative Affairs, Department of State, agreements, other than treaties, entered into 3360. A letter from the Comptroller Gen- transmitting certification of a proposed li- by the United States, pursuant to 1 U.S.C. eral, transmitting a monthly listing of new cense for the export of defense articles or de- 112b(a); to the Committee on International investigations, audits, and evaluations; to fense services sold commercially under a Relations. the Committee on Government Reform. contract to the United Kingdom [Trans- 3348. A letter from the Assistant Secretary 3361. A letter from the Deputy Director for mittal No. DTC 69–99], pursuant to 22 U.S.C. for Legislative Affairs, Department of State, Support, Personal and Family Readiness Di- 2776(c); to the Committee on International transmitting certification regarding the pro- vision, Department of the Navy, transmit- Relations. posed transfer of major defense equipment to ting the annual report for 1998 of the Retire- 3337. A letter from the Assistant Secretary Germany [Transmittal No. RSAT–1–99]; to ment Plan for Civilian Employees of the for Legislative Affairs, Department of State, the Committee on International Relations. United States Marine Corps Personal and transmitting certification of a proposed 3349. A letter from the Director, Office of Family Readiness Division; to the Com- Manufacturing License Agreement with Can- Personnel Management, transmitting a re- mittee on Government Reform. ada [Transmittal No. DTC 66–99], pursuant to port entitled, ‘‘Physicians Comparability Al- 3362. A letter from the Director, Office of 22 U.S.C. 2776(d); to the Committee on Inter- lowances,’’ pursuant to 5 U.S.C. 5948(j)(1); to Legislative Affairs, Federal Deposit Insur- national Relations. the Committee on Government Reform. ance Corporation, transmitting correction of 3338. A letter from the Assistant Secretary 3350. A letter from the Secretary of Com- an error in the auditor’s opinion section of for Legislative Affairs, Department of State, merce, transmitting the Inspector General’s the Federal Deposit Insurance Corporation’s transmitting certification of a proposed li- semiannual report and the Secretary’s report 1998 Chief Financial Officers Act Report; to cense for the export of defense articles or de- on final action taken on Inspector General the Committee on Government Reform. fense services sold commercially under a audits, pursuant to 5 U.S.C. app. (Insp. Gen. 3363. A letter from the General Accounting contract to the United Kingdom [Trans- Act) section 5(d); to the Committee on Gov- Office, transmitting a list of vacancies; to mittal No. DTC 68–99], pursuant to 22 U.S.C. ernment Reform. the Committee on Government Reform. H6842 CONGRESSIONAL RECORD — HOUSE August 2, 1999 3364. A letter from the Inspector General, transmitting Certification that shrimp har- Trade Act of 1974 with respect to Vietnam; General Services Administration, transmit- vested with technology that may adversely adversely (Rept. 106–282). Referred to the ting the Audit Report Register, including all affect certain species of sea turtles may not Committee of the Whole House on the State financial recommendations, for the period be imported into the United States unless of the Union. ending March 31, 1999, pursuant to 5 U.S.C. the President makes specific certifications Mr. ROGERS: Committee on Appropria- app. (Insp. Gen. Act) section 5(d); to the to the Congress annually by May 1, pursuant tions. H.R. 2670. A bill making appropria- Committee on Government Reform. to Public Law 101–162, section 609(b)(2) (103 tions for the Departments of Commerce, Jus- 3365. A letter from the Treasurer, National Sat. 1038); jointly to the Committees on Ap- tice, and State, the Judiciary, and related Gallery of Art, transmitting the 1998 Annual propriations and Resources. agencies for the fiscal year ending Sep- Report which contains the audited financial 3377. A letter from the Assistant Secretary tember 30, 2000, and for other purposes (Rept. statements for years ended September 30, for Legislative Affairs, Department of State, 106–283). Referred to the Committee of the 1998 and 1997, pursuant to 31 U.S.C. 3512(c)(3); transmitting Certification that shrimp har- Whole House on the State of the Union. to the Committee on Government Reform. vested with technology that may adversely f 3366. A letter from the Secretary of Edu- affect certain species of sea turtles may not cation, transmitting notification that effec- be imported into the United States unless PUBLIC BILLS AND RESOLUTIONS tive February 24, 1999, the Assistant Sec- the President makes specific certifications retary for Elementary and Secondary Edu- to the Congress annually by May 1, pursuant Under clause 2 of rule XII, public cation resigned; to the Committee on Gov- to Public Law 101–162, section 609(b)(2) (103 bills and resolutions were introduced ernment Reform. Sat. 1038); jointly to the Committees on Ap- and severally referred, as follows: 3367. A letter from the Secretary of Trans- propriations and Resources. portation, transmitting the Secretary’s Man- By Mr. ALLEN (for himself, Mr. 3378. A letter from the Secretary of Trans- agement Report on Management Decisions SAXTON, Ms. BALDWIN, Mr. BALDACCI, portation, transmitting the Department’s re- and Final Actions on Office of Inspector Gen- Mr. BARRETT of Wisconsin, Mr. port entitled ‘‘Importing Noncomplying eral Audit Recommendations for the period BONIOR, Mr. CAPUANO, Mr. DAVIS of ending March 31, 1999, pursuant to 31 U.S.C. Motor Vehicles’’ for calendar year 1998, pur- Illinois, Mr. DELAHUNT, Ms. 9106; to the Committee on Government Re- suant to 49 U.S.C. 30169(b); jointly to the DELAURO, Mr. GUTIERREZ, Mr. HIN- form. Committees on Commerce and Ways and CHEY, Mr. INSLEE, Mr. KENNEDY of 3368. A letter from the Acting Assistant Means. Rhode Island, Ms. KILPATRICK, Mrs. Attorney General, Office of Legislative Af- 3379. A letter from the Assistant Secretary MALONEY of New York, Mr. GEORGE fairs, Assistant Attorney General, Office of for Legislative Affairs, Department of State, MILLER of California, Mrs. Justice Programs, transmitting the Office of transmitting the President has issued the de- NAPOLITANO, Mr. NEAL of Massachu- Justice Programs Annual Report for Fiscal termination required to suspend the limita- setts, Mr. OLVER, Mr. QUINN, Mrs. Year 1998, pursuant to 42 U.S.C. 3712(b); to tion on the obligation of FY 1999 State De- ROUKEMA, Mr. RUSH, Mr. SANDERS, the Committee on the Judiciary. partment Appropriations [Presidential De- Ms. SCHAKOWSKY, Mr. STARK, Mr. 3369. A letter from the Chairman, National termination 99–29]; jointly to the Commit- UNDERWOOD, and Mr. VENTO): Gambling Impact Study Commission, trans- tees on International Relations and Appro- H.R. 2667. A bill to amend the Clean Air mitting the Final Report of the National priations. Act to establish requirements concerning the Gambling Impact Study Commission; to the 3380. A letter from the Secretary of Trans- operation of fossil fuel-fired electric utility Committee on the Judiciary. portation, transmitting a draft of proposed steam generating units, commercial and in- 3370. A letter from the Secretary, Naval legislation to amend the Woodrow Wilson dustrial boiler units, solid waste inciner- Sea Cadet Corps, transmitting the Annual Memorial Bridge Authority Act of 1995 to ation units, medical waste incinerators, haz- Audit Report of the Naval Sea Cadet Corps provide advance contract authority for fiscal ardous waste combustors, chlor-alkali for the fiscal year ending 31 December 1998, years 2004 through 2007; jointly to the Com- plants, and Portland cement plants to reduce pursuant to 36 U.S.C. 1101(39) and 1103; to the mittees on Transportation and Infrastruc- emissions of mercury to the environment, Committee on the Judiciary. ture and Ways and Means. and for other purposes; to the Committee on 3371. A letter from the Attorney General, f Commerce. State of South Carolina, transmitting a cer- By Mr. THOMAS (for himself, Mr. NEY, tified copy of the 1996 South Carolina legisla- REPORTS OF COMMITTEES ON Mr. BOEHNER, Mr. EHLERS, Mr. MICA, tion which, along with Georgia’s 1994 legisla- PUBLIC BILLS AND RESOLUTIONS and Mr. EWING): tion, forms the basis for an interstate com- H.R. 2668. A bill to amend the Federal Elec- pact pursuant to Article IV, Section 10 of the Under clause 2 of rule XIII, reports of tion Campaign Act of 1971 to reform the fi- United States Constitution; to the Com- committees were delivered to the Clerk nancing of campaigns for election for Fed- mittee on the Judiciary. for printing and reference to the proper eral office, and for other purposes; to the 3372. A letter from the Secretary of Trans- calendar, as follows: portation, transmitting a draft of proposed Committee on House Administration. legislation to amend title 49, United States Mr. TALENT: Committee on Small Busi- By Mr. SAXTON: Code, to revise and clarify the definition of ness. H.R. 2614. A bill to amend the Small H.R. 2669. A bill to reauthorize the Coastal ‘‘public aircraft’’; to the Committee on Business Investment Act to make improve- Zone Management Act of 1972, and for other Transportation and Infrastructure. ments to the certified development company purposes; to the Committee on Resources. 3373. A letter from the the Assistant Sec- program, and for other purposes (Rept. 106– By Mr. ROGERS: retary for Legislative Affairs, the Depart- 278). Referred to the Committee on the H.R. 2670. A bill making appropriations for ment of State, transmitting notification Whole House on the State of the Union. the Departments of Commerce, Justice, and that the President has issued the required Mr. TALENT: Committee on Small Busi- State, the Judiciary, and related agencies for determination necessary to continue normal ness. H.R. 2615. A bill to amend the Small the fiscal year ending September 30, 2000, and trade relations with the People’s Republic of Business Act to make improvements to the for other purposes. China [Presidential Determination No. 99– general business loan program, and for other By Mr. BARRETT of Nebraska: 28], pursuant to 19 U.S.C. 2432(c) and (d); (H. purposes (Rept. 106–279). Referred to the H.R. 2671. A bill to provide for the Yankton Doc. No. 106–107); to the Committee on Ways Committee of the Whole House on the State Sioux Tribe and the Santee Sioux Tribe of and Means and ordered to be printed. of the Union. Nebraska certain benefits of the Missouri 3374. A letter from the Chief, Regulations Mr. REYNOLDS: Committee on Rules. River Basin Pick-Sloan project, and for Unit, Internal Revenue Service, transmitting House Resolution 271. Resolution providing other purposes; to the Committee on Re- the Market Segment Specialization Program for the consideration of the bill (H.R. 987) to sources. Audit Techniques Guide—Low-Income Hous- require the Secretary of Labor to wait for By Mr. ETHERIDGE (for himself, Mr. ing Credit; to the Committee on Ways and completion of a National Academy of SKELTON, Mr. MCINTYRE, Mrs. CLAY- Means. Sciences study before promulgating a stand- TON, Mr. WU, Mr. STUPAK, Mr. WYNN, 3375. A letter from the Secretary of Agri- ard or guideline on ergonomics (Rept. 106– Mr. JOHN, Mr. GREEN of Texas, Mr. culture, Secretary of the Army, transmitting 280). Referred to the House Calendar. MATSUI, Mr. BECERRA, Mr. BOYD, Mr. notification of the intention of the Depart- Mr. GOSS: Committee on Rules. House PRICE of North Carolina, Mr. DOOLEY ments of the Army and Agriculture to inter- Resolution 272. Resolution providing for con- of California, Mr. BISHOP, Mr. UDALL change jurisdiction of civil works and Forest sideration of the bill (H.R. 2031) to provide of New Mexico, Mrs. TAUSCHER, Mr. Service acquired lands and interests in lands for injunctive relief in Federal district court SPRATT, Mr. GEORGE MILLER of Cali- at the Willow Island Locks and Dam naviga- to enforce State laws relating to the inter- fornia, Mr. ANDREWS, Mr. GOODE, Mr. tion project, adjacent to the Wayne National state transportation of intoxicating liquor HANSEN, Mr. BALDACCI, Mr. KAN- Forest in the State of Ohio, pursuant to 16 (Rept. 106–281). Referred to the House Cal- JORSKI, Mr. WATT of North Carolina, U.S.C. 505a; jointly to the Committees on endar. Mr. DICKS, Mr. SMITH of Washington, Agriculture and Transportation and Infra- Mr. ARCHER: Committee on Ways and Mr. TURNER, Mr. TAYLOR of Mis- structure. Means. House Joint Resolution 58. Resolu- sissippi, Mr. BERRY, Mr. SHOWS, Mr. 3376. A letter from the Assistant Secretary tion disapproving the extension of the waiver CONDIT, Mr. LUCAS of Kentucky, Mr. for Legislative Affairs, Department of State, authority contained in section 402(c) of the PHELPS, Ms. DANNER, Ms. SLAUGHTER, August 2, 1999 CONGRESSIONAL RECORD — HOUSE H6843

Mr. HILL of Indiana, Mr. THOMPSON of resolution similar to this resolution; to the H.R. 1604: Ms. WOOLSEY. Mississippi, Mr. HALL of Texas, Mr. Committee on Education and the Workforce. H.R. 1631: Mr. FATTAH. PICKERING, Mr. THUNE, Mr. TERRY, 176. Also, a memorial of the House of Rep- H.R. 1684: Ms. MCKINNEY. Mr. JONES of North Carolina, Mr. resentatives of the State of Alabama, rel- H.R. 1693: Mr. ARCHER and Mr. ALLEN. TOWNS, Mr. ADERHOLT, and Mrs. ative to House Joint Resolution No. 178 me- H.R. 1747: Mr. CHAMBLISS. MALONEY of New York): morializing Congress to enact legislation H.R. 1777: Ms. RIVERS. H.R. 2672. A bill to authorize the President amending the Social Security Act to pro- H.R. 1816: Mr. MCGOVERN. to award a gold medal on behalf of the Con- hibit recoupment by the federal government H.R. 1917: Mr. BAIRD, Mr. HILLIARD, Mr. gress to General Henry H. Shelton and to of state tobacco settlement funds; to the PALLONE, Mr. MASCARA, Mrs. EMERSON, Mr. provide for the production of bronze dupli- Committee on Commerce. GREEN of Texas, and Mr. STARK. cates of such medal for sale to the public; to 177. Also, a memorial of the Senate of the H.R. 1932: Mr. PALLONE, Ms. BALDWIN, Mr. the Committee on Banking and Financial State of Illinois, relative to Senate Resolu- BECERRA, Mr. BRADY of Pennsylvania, Mr. Services. tion No. 138 memorializing President Clin- DAVIS of Florida, Mr. EVANS, Mr. GOODE, Mr. By Mr. GEJDENSON (for himself, Mr. ton’s commitment to undertake significant KLECZKA, Mr. PETERSON of Minnesota, Mr. KUCINICH, Mr. HILLIARD, Ms. LEE, efforts in order to promote substantial SERRANO, Ms. SLAUGHTER, and Mr. STARK. Mrs. CHRISTENSEN, Mr. MALONEY of progress towards a solution to the Cyprus H.R. 1933: Mr. DUNCAN and Mr. STUMP. Connecticut, Mr. WU, Mr. ETHERIDGE, problem in 1999; to the Committee on Inter- H.R. 1999: Mr. MCNULTY and Mr. OWENS. Ms. JACKSON-LEE of Texas, Ms. national Relations. H.R. 2030: Mr. MOAKLEY and Mr. CAPUANO. MILLENDER-MCDONALD, Mr. SCOTT, 178. Also, a memorial of the Legislature of H.R. 2120: Mr. ORTIZ, Mr. BARCIA, and Mr. and Mr. MCGOVERN): the State of Missouri, relative to House GOODLATTE. H.R. 2673. A bill to provide training to pro- Joint Resolution No. 26 memorializing the H.R. 2121: Mr. SCOTT, Ms. JACKSON-LEE of fessionals who work with children affected current federal government policies on na- Texas, and Mr. KNOLLENBERG. by violence, to provide for violence preven- tional forest road closures and obliteration H.R. 2265: Mr. OBERSTAR and Mr. BERMAN. tion, and for other purposes; to the Com- be suspended and that Congress reaffirm its H.R. 2288: Mr. WATTS of Oklahoma. mittee on Education and the Workforce. directives that forest lands be managed in H.R. 2303: Ms. KAPTUR, Mr. MCDERMOTT, By Mr. PAUL: accordance with forest plans that provide for Mr. POMBO, Mr. DICKS, and Mr. REYNOLDS. H.R. 2674. A bill providing for conveyance multiple-use management; jointly to the H.R. 2314: Mr. FORD. of the Palmetto Bend project to the State of Committees on Agriculture and Resources. H.R. 2337: Mr. GIBBONS, Mr. COBURN, and Texas; to the Committee on Resources. f Mr. SUNUNU. By Mr. RADANOVICH (for himself, Mr. H.R. 2351: Ms. SCHAKOWSKY and Ms. LEE. POMBO, Mr. OSE, and Mr. HASTINGS of ADDITIONAL SPONSORS H.R. 2405: Ms. SCHAKOWSKY and Mr. SHAYS. Washington): H.R. 2418: Mr. DEFAZIO, Mr. BAKER, Mr. H.R. 2675. A bill to amend the Workforce Under clause 7 of rule XII, sponsors CUNNINGHAM, Mr. COOKSEY, Mr. HINCHEY, Mr. Investment Act of 1998 to provide increased were added to public bills and resolu- ROMERO-BARCELO, and Mr. COBURN. flexibility for the transfer of within state al- tions as follows: H.R. 2436: Mr. FLETCHER, Mr. RYAN of Wis- locations between adult and disclocated H.R. 82: Mr. LEWIS of Georgia, Mr. consin, Mr. SKIMKUS, and Mr. HUNTER. worker employment and training activities; BALDACCI, and Mrs. MORELLA. H.R. 2494: Mr. TANCREDO and Mr. SENSEN- to the Committee on Education and the H.R. 269: Mrs. MEEK of Florida. BRENNER. Workforce. H.R. 306: Mr. UDALL of New Mexico. H.R. 2529: Mr. WAMP. By Ms. RIVERS: H.R. 323: Mr. SMITH of Washington. H.R. 2538: Ms. LEE, Mr. WU, and Mr. H.R. 2676. A bill to amend the Solid Waste H.R. 355: Mr. MCHUGH and Mr. UDALL of WEXLER. Disposal Act to require a refund value for Colorado. H.R. 2568: Mr. HILL of Montana. certain beverage containers, to provide re- H.R. 357: Mr. KOLBE. H.R. 2584: Mr. LAZIO. sources for State pollution prevention and H.R. 372: Mr. FILNER, Ms. JACKSON-LEE of H.R. 2612: Mr. RAHALL. recycling programs, and for other purposes; Texas, and Mr. LUCAS of Kentucky. H.R. 2618: Mr. GILLMOR, Mr. SHOWS, and Ms. to the Committee on Commerce. H.R. 488: Mr. RUSH. JACKSON-LEE of Texas. H.R. 2677. A bill to amend the Communica- H.R. 557: Mr. SISISKY and Mr. GOODLATTEE. H.R. 2639: Mr. SIMPSON and Mr. MILLER of tions Act of 1934 to require telephone car- H.R. 559: Mr. BLAGOJEVICH. Florida. riers to completely and accurately itemize H.R. 625: Mr. COOK. H.J. Res. 55: Mr. GIBBONS. charges and taxes collected with telephone H.R. 728: Mr. LINDER. H. Con. Res. 30: Mr. ISAKSON. bills; to the Committee on Commerce. H.R. 731: Mr. WU and Mr. WEXLER. H. Con. Res. 38: Mr. NADLER. By Mr. GILMAN (for himself and Mr. H.R. 750: Mr. ENGEL. H. Con. Res. 77: Mr. KUYKENDALL. MICA): H.R. 815: Ms. ROS-LEHTINEN. H. Con. Res. 80: Mr. BOEHLERT, Mr. DAVIS H. Con. Res. 169. Concurrent resolution ex- of Virginia, Mr. DELAHUNT, Mr. HOYER, Mr. pressing United States policy toward Roma- H.R. 860: Mr. DEUTSCH. H.R. 900: Mr. BAIRD. LAZIO, Mr. KENNEDY of Rhode Island, Mr. nia; to the Committee on International Rela- GUTKNECHT, Mr. COOK, Mr. DREIER, Mr. tions. H.R. 960: Mr. HALL of Ohio and Mr. ROTH- MAN. LEWIS of Georgia, and Mr. GEPHARDT. H. Con. Res. 170. Concurrent resolution ex- H. Con. Res. 100: Mr. GEJDENSON, Mr. pressing United States policy toward the Re- H.R. 961: Mr. WEYGAND and Mr. FALEOMAVAEGA. HOLDEN, Mrs. THURMAN, Mr. COSTELLO, Mr. public of Bulgaria; to the Committee on SCOTT, Mr. ALLEN, Mr. BILBRAY, Mr. BACHUS, International Relations. H.R. 1068: Mr. HASTINGS of Florida. H.R. 1111: Mr. WATTS of Oklahoma, Mr. Ms. STABENOW, Mr. SANFORD, Mrs. MEEK of f MCHUGH, Mr. ACKERMAN, and Mrs. THURMAN. Florida, Mr. DREIER, Mr. DAVIS of Virginia, MEMORIALS H.R. 1115: Mr. BROWN of Ohio, Mr. BONILLA, Ms. DEGETTE, Mr. COOK, Mr. HOYER, and Mr. Mr. GOODLING, Mr. CAMP, and Mr. BARRETT of PRICE of North Carolina. Under clause 3 of rule XII, memorials Wisconsin. H. Con. Res. 159: Mr. FOLEY, Mr. MASCARA, were presented and referred as follows: H.R. 1187: Mr. WALDEN of Oregon. Mr. GEJDENSON, Mrs. MYRICK, Mrs. THURMAN, 174. The SPEAKER presented a memorial H.R. 1195: Mr. PRICE of North Carolina. Mr. SCOTT, Mr. BACHUS, Mr. SANFORD, Mrs. of the Legislature of the State of Maryland, H.R. 1274: Mr. INSLEE, Ms. LOFGREN, and MEEK of Florida, Ms. DEGETTE, and Mr. relative to Senate Joint Resolution No. 7 Mrs. TAUSCHER. MCNULTY. memorializing Congress to amend the Em- H.R. 1300: Mr. SANDERS, Mr. MASCARA, and H. Res. 224: Mr. SKELTON, Mr. BUYER, Mr. ployment Retirement Income Security Act Mr. MCGOVERN. PASTOR, Mr. WATKINS, Mr. OSE, Mr. LEWIS of of 1974 to authorize each state to monitor H.R. 1381: Mr. KNOLLENBERG. Kentucky, Mr. FROST, and Mr. GILLMOR. and to regulate self-funded employer-based H.R. 1388: Mr. SABO, Mr. DELAY, and Mr. H. Res. 267: Mr. GUTKNECHT, Mr. GREEN of health plans and to make a specific amend- DEUTSCH. Wisconsin, Mr. COOK, Mr. EHLERS, Mrs. ment to the ERISA; urging other state legis- H.R. 1414: Mr. LEWIS of Georgia. CAPPS, Ms. JACKSON-LEE of Texas, and Mr. latures to enact a resolution similar to this H.R. 1482: Mr. FORD. KUYKENDALL. resolution; to the Committee on Education H.R. 1488: Ms. RIVERS, Mrs. CHRISTENSEN, f and the Workforce. and Mr. QUINN. 175. Also, a memorial of the Legislature of H.R. 1497: Mr. BARRETT of Wisconsin. PETITIONS, ETC. the State of Maryland, relative to House H.R. 1579: Mr. KIND, Ms. JACKSON-LEE of Under clause 3 of rule XII, petitions Joint Resolution No. 8 memorializing Con- Texas, Mr. SKELTON, Mr. HULSHOF, Mr. FARR gress to amend the Employment Retirement of California, Mr. TURNER, Mr. MOORE, Mr. and papers were laid on the clerk’s Income Security Act of 1974 to authorize HYDE, Mr. FILNER, Mr. KASICH, Ms. BALDWIN, desk and referred as follows: each state to monitor and to regulate self- Mr. SCOTT, Ms. LOFGREN, Mr. SMITH of Texas, 41. The SPEAKER presented a petition of funded employer-based health plans and to Mr. SMITH of Washington, and Mr. SHAYS. the Berea City Counsel, relative to Resolu- make a specific amendment to the ERISA; H.R. 1592: Mr. SMITH of Texas, Mr. HEFLEY, tion No. 99–28 petitioning support for the urging other state legislatures to enact a Mr. EHRLICH, and Mr. STUPAK. ratification, by the United States, of the H6844 CONGRESSIONAL RECORD — HOUSE August 2, 1999 United Nations convention on the elimi- ‘‘SEC. 3. GENERAL PROVISIONS. Page 6, after line 9, insert the following nation of all forms of discrimination against ‘‘(a) EFFECT ON INTERNET TAX FREEDOM (and make such technical and conforming women; to the Committee on International ACT.—Nothing in this Act may be construed changes as may be appropriate): Relations. to modify or supersede the operation of the ‘‘SEC. 3. REQUIRED MARKING OF CERTAIN CON- 42. Also, a petition of Anthony Ray Wright, Internet Tax Freedom Act (47 U.S.C. 151 TAINERS BY SELLERS OF INTOXI- relative to a request for impeachment of a note). CATING LIQUOR. Baton Rouge, LA. U.S. District Court Judge ‘‘(b) ENFORCEMENT OF TWENTY-FIRST ‘‘(a) CONTAINERS FOR DELIVERY OF INTOXI- Frank J. Polozola; to the Committee on the AMENDMENT.—It is the purpose of this Act to CATING LIQUOR.—It shall be unlawful for a Judiciary. assist the States in the enforcement of sec- seller of intoxicating liquor to deliver such f tion 2 of the twenty-first article of amend- liquor in interstate commerce to the pur- ment to the Constitution of the United chaser of such liquor if the outermost con- DISCHARGE PETITIONS— States, and in no way to impose an imper- tainer of such liquor is not clearly marked to ADDITIONS OR DELETIONS missible burden on interstate commerce in identify that such liquor is contained within. violation of in article I, section 8, of the Con- ‘‘(b) PENALTY.—Whoever violates para- The following Members added their stitution of the United States. No State may graph (1) shall be liable for a fine of $1,000.’’. names to the following discharge peti- enforce under this Act a law regulating the H.R. 2031 tions. importation or transportation of any intoxi- OFFERED BY: MS. JACKSON-LEE OF TEXAS Petition 3 by Mr. DINGELL on House Reso- cating liquor that has the purpose or effect AMENDMENT NO. 4: Page 6, line 9, strike the lution 197: Michael P. Forbes and Chet Ed- of discriminating against interstate com- close quotation marks and the period at the wards. merce by out-of-State sellers. ‘‘(c) SUPPORT FOR INTERNET AND OTHER end. Petition 4 by Ms. DEGETTE on House Res- Page 6, after line 9, insert the following olution 192: Rod R. Blagojevich, Peter INTERSTATE COMMERCE.—Nothing in this Act (and make such technical and conforming Deutsch, Elijah E. Cummings, Eliot L. may be construed— changes as may be appropriate): Engel, Gregory W. Meeks, Gary L. Acker- ‘‘(1) to permit the impairment of interstate man, Calvin M. Dooley, and John Lewis. telecommunications or any other related in- ‘‘SEC. 3. REQUIREMENTS APPLICABLE TO CER- strumentality of interstate commerce, in- TAIN CARRIERS IN CONNECTION f cluding the Internet; or WITH DELIVERY OF INTOXICATING ‘‘(2) to authorize any injunction against— LIQUOR TO A PLACE OF RESIDENCE. AMENDMENTS ‘‘(A) an interactive computer service (as ‘‘(a) DELIVERY OF INTOXICATING LIQUOR BY Under clause 8 of rule XVII, proposed defined in section 230(f) of the Communica- NONGOVERNMENTAL CARRIERS FOR HIRE.—It amendments were submitted as fol- tions Act of 1934 (47 U.S.C. 230(f)); or shall be unlawful for a nongovernmental car- rier for hire to knowingly deliver a container lows: ‘‘(B) electronic communication service (as defined in section 2510(15) of title 18 of the transported in interstate commerce that Commerce, Justice, State, and Judiciary United States Code). contains intoxicating liquor to a place of res- Appropriations, 2000 idence of any kind if such carrier fails to ob- H.R. 2031 OFFERED BY: MR. VISCLOSKY tain the signature of the individual to whom OFFERED BY: MR. GOODLATTE AMENDMENT NO. 2: At the end of the bill, such container is addressed. before the short title, insert the following: AMENDMENT NO. 2: Page 6, line 9, strike the ‘‘(b) PENALTY.—Whoever violates para- close quotation marks and the period at the SEC. . None of the funds appropriated graph (1) shall be liable for a fine of $500.’’. in this Act may be used to negotiate or oth- end. H.R. 2031 Page 6, after line 9, insert the following: erwise enter into any suspension agreement FFERED Y S ACKSON EE OF EXAS ULES OF CONSTRUCTION.—(1) Subject O B M . J -L T under section 734 of the Tariff Act of 1930, ‘‘(f) R to paragraph (2), this section shall be con- AMENDMENT NO. 5: At the end of the bill, with respect to any of the following cat- strued only to extend the jurisdiction of Fed- add the following: egories of steel products: semifinished, eral courts to enforce State law that is valid plates, sheets and strips, wire rods, wire and SEC. 4. SENSE OF THE CONGRESS. as an exercise of power vested in the States— wire products, rail type products, bars, It is the sense of the Congress that the ‘‘(A) under the twenty-first article of structural shapes and units, pipes and tubes, States should enact laws to require— amendment to the Constitution of the iron ore, and coke products. (1) sellers of intoxicating liquor in con- United States as such article of amendment tainers to deliver to purchasers such liquor Commerce, Justice, State, and Judiciary is interpreted by the Supreme Court of the in outermost containers that are clearly Appropriations, 2000 United States; or marked to identify that such liquor is con- OFFERED BY: MR. VISCLOSKY ‘‘(B) under the first section of this Act; tained within; and AMENDMENT NO. 3: At the end of the bill, but shall not be construed to grant to States (2) nongovernmental carriers for hire that before the short title, insert the following: any additional power. knowingly deliver containers that contain SEC. . None of the funds appropriated ‘‘(2) This section shall not be construed— intoxicating liquor to any kind of place of in this Act may be used to implement or con- ‘‘(A) to modify or supersede the operation residence— tinue in effect any suspension agreement of the Internet Tax Freedom Act (47 U.S.C. (A) to obtain the signatures of the individ- under section 734 of the Tariff Act of 1930, or 151 note); or uals to whom such containers are addressed; to negotiate or otherwise enter into any sus- ‘‘(B) to permit the commencement of an and pension agreement under section 734 of the action under subsection (b) of this section (B) to obtain reasonable proof that the in- Tariff Act of 1930, with respect to any of the against— dividuals to whom such containers are ad- following categories of steel products: semi- ‘‘(i) an interactive computer service (as de- dressed are not less than 21 years of age. fined in section 230(f) of the Communications finished, plates, sheets and strips, wire rods, H.R. 2606 wire and wire products, rail type products, Act of 1934 (47 U.S.C. 230(f)); or OFFERED BY: MR. KUCINICH bars, structural shapes and units, pipes and ‘‘(ii) an electronic communication service tubes, iron ore, and coke products. (as defined in section 2510(15) of title 18 of AMENDMENT NO. 24: At the end of the bill, the United States Code); insert after the last section (preceding the H.R. 2031 used by another person to engage in any ac- short title) the following new section: OFFERED BY: MR. COX tivity that is subject to this Act.’’. SEC. ll. None of the funds made available AMENDMENT NO. 1: Page 6, line 9, strike the in this Act may be used by the Overseas Pri- H.R. 2031 close quotation marks and the period at the vate Investment Corporation for any cat- end. OFFERED BY: MS. JACKSON-LEE OF TEXAS egory A Investment Fund project, as listed AMENDMENT NO. 3: Page 6, line 9, strike the in Appendix E, Category A Projects, of the Page 6, after line 9, insert the following: close quotation marks and the period at the Corporation’s Environmental Handbook of end. April 1999. E PL UR UM IB N U U S Congressional Record United States th of America PROCEEDINGS AND DEBATES OF THE 106 CONGRESS, FIRST SESSION

Vol. 145 WASHINGTON, MONDAY, AUGUST 2, 1999 No. 111 Senate The Senate met at 12:01 p.m. and was SCHEDULE scribe the farm crisis, but I thought I called to order by the President pro Mr. STEVENS. Mr. President, today would read a couple letters from my tempore [Mr. THURMOND]. by previous order the Senate will begin constituents in North Dakota. 1 hour of morning business to be fol- PRAYER Before I do, I am reminded of the lowed by 2 hours of debate on S. 335, story the former chairman of the The Chaplain, Dr. Lloyd John the Deceptive Mail Prevention and En- House Agriculture Committee used to Ogilvie, offered the following prayer: forcement Act regarding sweepstakes. Almighty God, we praise You for tell. Kika de la Garza was his name. He The first rollcall vote today will occur used to talk about agriculture and food great Senators in each period of our at 5:30 p.m. on passage of the sweep- Nation’s history. And the Senate of the by telling a story about nuclear sub- stakes legislation. At 3 p.m. today, the marines. He said he met with all these 106th Congress is certainly no excep- Senate will resume consideration of tion. Thank you for our Senators who folks from the Defense Department and the Agriculture appropriations bill. It they told him about the wonders of love You, seek Your best for our Na- is hoped that Senators who have tion, and are indefatigable in their ef- these nuclear submarines the United amendments will work with the bill States had. They told him about all of forts to lead with courage and vision. managers to schedule time to debate Over the years, You have impacted their provisions and all their fuel and those amendments. Additional votes their capabilities and their speed and their consciences with Your Ten Com- beyond the 5:30 vote could occur rel- their distance. And he said, well, how mandments, Your truth, the guidance ative to the Agriculture appropriations long can a nuclear submarine stay of Your Spirit, and vision for this Na- bill. It is the intention of the majority under the sea? And the admiral says: tion so clearly enabled by our founding leader to complete action on as many Until the food runs out. It was Kika de fathers and mothers. Daily, refine their appropriations bills as possible before consciences. Purify them until they re- the August recess. Therefore, Senators la Garza’s way of pointing out that flect the pure gold of Your character should be prepared to vote into the eve- food, after all, is the essence of most of and Your priorities of righteousness, nings throughout this whole week. our existence, and we are a world, a justice, and mercy. Then may their I thank my colleagues for their at- rather fragile, large globe—as seen by consciences guide their convictions, tention. the astronauts who leave our Earth and and may they always have the courage I yield the floor. go into space—of diverse interests, di- of these sacred convictions. f verse people. What we pray for the Senators we MORNING BUSINESS However, one thing that seems con- ask for the entire Senate family. May stant in this world is that we read that we all be one in asking You to develop The PRESIDENT pro tempore. The so many people go to bed hungry—espe- in us a conscience saturated by Your able Senator from North Dakota is rec- cially children, but so many people absolutes and shaped by Your author- ognized. across the world go to bed hungry. ity. To this end, Senators and all staff Mr. DORGAN. Mr. President, I ask Somewhere around half a billion people join in rededicating our lives to glorify unanimous consent to speak for 10 min- You by serving our Nation. Amen. utes in morning business under the go to bed with a serious ache in their f time allocated to Senator DASCHLE. belly because they do not have any- The PRESIDENT pro tempore. With- thing to eat. Malnutrition and lack of PLEDGE OF ALLEGIANCE out objection, it is so ordered. good nutrition among billions of others The Honorable STROM THURMOND, (Mr. STEVENS assumed the chair.) exists around the world. a Senator from the State of South f Then we go to the farm belt in the Carolina, led the Pledge of Allegiance, FAMILY FARMING IN AMERICA United States where a family is strug- as follows: Mr. DORGAN. Mr. President, this gling to make a living on the family I pledge allegiance to the Flag of the afternoon at 3 o’clock we will begin de- farm and find that its farmer loaded United States of America, and to the Repub- some grain on the truck and took it to lic for which it stands, one nation under God, bate on a farm disaster relief plan that indivisible, with liberty and justice for all. will be offered by Senator HARKIN, my- the elevator and the grain trade said to f self, Senators CONRAD, DASCHLE, and the farmer: Your food does not have others. I think this will be, for those of any value. Our grain trade assesses the RECOGNITION OF THE ACTING us from farm country, one of the most value of your food as relatively mean- MAJORITY LEADER important pieces of legislation ad- ingless. The farmer wonders about that The PRESIDENT pro tempore. The dressed by this Congress this year. I because we live in such a hungry world. able Senator from Alaska is recog- know that unless one lives on a family How could it be that what we produce nized. farm, it is probably pretty hard to de- in such abundance has no value?

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

S9959

. S9960 CONGRESSIONAL RECORD — SENATE August 2, 1999 That is what our farmers wonder. Let not help me prepare for auction and did not didn’t have a very good name for it. It me talk just about these farmers in the even get out of bed the day of the auction didn’t sell very well. Nobody wanted to context of their words. This is a letter sale because he is so heartbroken that he buy death insurance. So what did they from a woman in the central part of cannot continue to farm this land. do? They changed the name to ‘‘life in- our State whose family farms; she This is a 17-year-old boy who is not a surance.’’ It is a better sounding name, farms. Here is the kind of plaintive cry bad boy. It is just that he couldn’t get and it sold much better. that exists from a proud and hard- out of bed to watch the auction sale of So we had a farm bill called Freedom working people in our country, family his farm because he couldn’t bear to to Farm. What a nice sounding name farmers who take enormous risks, risk see the loss of his dream and his fami- with bankrupt policies that said family everything they have to try to make a lies’ dream. He wanted to be a farmer farming doesn’t matter much in what- living with seeds they plant in the as well. ever the market system says with re- ground. They do not know whether She said: spect to agriculture. they will grow; they do not know My husband was an excellent manager, There has never been a free market whether the natural disasters will fully educated. He chose to farm rather than in agriculture, and never will be. occur—insects and hail and rain too live in a big city. He had a job once with Mo- Do you think the European countries torola. He wanted to raise his children in a whose citizens have gone hungry will much, too little. They don’t know what place with clean air, no crime, and good will happen with this money they have decide it doesn’t matter whether they schools. He worked very hard physically and have family farmers? They will never invested in the soil. If they finally get emotionally to make this farm work. And its make that decision. They will always their crop and they escape all of those failure was no fault of his. Something is seri- have a farm program that insists on problems, they get the crop off the ously wrong with our country when we will price supports for families on the farms ground and take it to the elevator, sacrifice the family farm for a political sys- in Europe. they don’t know whether there will be tem and an entire way of life for hundreds of years. The point is that this country has de- a price that allows them to get a re- cided by itself that family farming as a turn for that crop. Her point is that farmers at this point are not at fault for what is hap- concept doesn’t matter to its future; Those are the kinds of people who that whatever the market decides is pening. The world is hungry. Most peo- live on our family farms. They are the what our future shall be. If the market ple need food. We raise it in great people who create the backbone of our decides that corporate farms shall farm abundance, and family farmers are told society in our country. They are the from California to Maine, so be it. people who together build a small com- that what they produce doesn’t matter. The problem with that is that all munity where they trade and do busi- I would like to use a couple of charts across this country we will have ness. They build our churches in those that show the dilemma that family yardlights turned off and families leav- communities. They create charities. farmers are facing not only in my ing the farm. The economic arteries They do the things together in a com- State but around the country. that they provide to the small towns munity that we forget about some- I show this chart because some peo- will be closed and dried up, and those times in our country. What is it that ple might wonder, well, what is all this small towns will be boarded up. The makes this country work at its roots? farm crisis about? I ask anyone who people will be leaving small towns. We It is entrepreneurship, it is family looks at this chart—this chart shows will see the collapse, the total collapse, farming, it is a sense of community, prices received by farmers for wheat. of a rural lifestyle. and it is a sense of sharing. Most of the farmers in my part of the The author Critchfield, who was a Here is a family farm. This woman world are wheat farmers. Put minimum wonderful, world-wide, world-renown says in her letter to me: wage in this chart, if this had happened author, who actually grew up in Fargo, with the minimum wage; put corporate We aren’t asking for a free ride, just the ND, said that family values have al- possibility of surviving. We are private peo- profits on this chart, if this had hap- ways been nurtured on the family ple and we bear our pain alone, and we don’t pened to corporate profits—what do farms in this country, and the refresh- discuss the true situation out here on the you think the outcry would be? Put ing small towns rolled to the cities family farm with anybody. Our neighbors are congressional salaries on this chart. If from many family farms. It was always all in the same shape. The spirit of North this had happened to congressional sal- a seedbed of family values of nurturing Dakota will be gone with these people and aries, what would the outcry be? and helping and working together. We their farms. We cannot survive without a This represents the income farmers will lose all of that because some peo- reasonable income. How much longer will it are receiving from their products when ple say it doesn’t matter. be before people understand that we are try- We are having a debate this after- ing to feed our family, and pay for basic ne- the price of every other thing is in- cessities? But with today’s income we are creasing. The income received by farm- noon at 3 o’clock. It is critically impor- not saving money for retirement. We are not ers is collapsing. tant. This matters more than most going on trips. We are not enjoying any of For purposes of comparison, let me people in this country will ever know. the fruits from our labor. We are slowly but compare the price of corn and wheat I hope that with my colleagues we can surely going broke. with what farmers received for those easily pass a disaster bill in the first A man who lives in southeastern commodities during the middle of the step, and in the second that we can North Dakota on the family farm says: Great Depression. With the price ad- then pass a revision of the underlying farm bill, and say to farmers: You have It sometimes brings a tear to my eye that justed over time, ask yourself: What do maybe in a year, maybe two years, I will not farmers get now relative to what they a future. We want to provide you hope be around in family farming to matter any- got during the Great Depression? and help because we think you matter more. This won’t be easy to explain to my Take a look at it in 1998. These are to our country. three young daughters. This is where I want- the worst farm prices price adjusted for Mr. President, I yield the floor. Mrs. LINCOLN. Mr. President, I echo ed to bring them up, in a rural setting of life 50 years. Families cannot make a liv- that I was used to and that I understand. If the words of my colleague. it happens, I hope they read in their history ing in this country in these cir- I was raised on and continue to be a books that it wasn’t because their dad was a cumstances. part of the seventh generation Arkan- dumb man. It was because it was caused by I am tempted to go into a long dis- sas family farm. policy and giant concentration of companies cussion of so-called Freedom to Farm. I think it is so important that we who want dominance. I didn’t vote for it. It was a terrible recognize this is an issue—those from Or, from a woman named Susan, piece of farm legislation. Some loved other States, as well as farm States, whose letter I have read previously on it. Some voted for it. Some still sup- agricultural-based States—and that we this floor. She lost her husband, and port it. Certainly it has a wonderful can impress upon our colleagues in she had to sell their family farm. name. Washington, D.C. the crisis that our Prices had collapsed. It reminds me of the people early on small rural communities and our farm- I had an auction last week to sell the ma- who sold insurance. They called it ing communities are going through. chinery so that I could help pay off some of ‘‘death insurance.’’ Many years ago I will certainly be joining the Sen- the debts that incurred after 26 years of they sold ‘‘death insurance.’’ Do you ator later on this afternoon in that de- farming. I have a 17-year-old son who would know something? Death insurance bate. We need to impress upon people August 2, 1999 CONGRESSIONAL RECORD — SENATE S9961 that this is an issue for this country. It During my Senate campaign last nity to Jonesboro High School once a is not just agriculture; it is a heritage year, I spent a lot of time listening to week to mentor high school student. of this country and a heritage of our parents and teachers. From my experi- And these programs are not just rural communities. ence, a lot of the most effective solu- being put into place in our larger f tions being at the local level. towns, they’re also cropping up in rural This bill incorporates the lessons I communities. SAFE SCHOOLS ACT OF 1999 have learned from the people of my In Monticello and six counties Mrs. LINCOLN. Mr. President, I rise state who are working on the front throughout Southeast Arkansas, the to speak on what I think is the most lines to educate and care for our chil- Southeast Arkansas Foster Grand- critical as well as the most worthy of dren. parents Program has helped improve issues that we should be dealing with First, this bill would provide funds to literacy and reading test scores for in the Senate and the Congress; that is, elementary and secondary schools to hundreds of children. In this program, the emotional well-being of our chil- hire additional mental health profes- senior citizens serve as literacy and dren. They are truly the fabric of the sionals. reading tours to K–3 elementary school success of our Nation into the next Students today bring more to school students twenty hours a week. century. than backpacks and lunchboxes. Many The Boys, Girls and Adults Commu- All too often we have been through of them bring severe emotional trou- nity Development Center in Marvell, a incidents such as Jonesboro, AK, as bles. Save the Children grantee, has been well as Littleton, CO. We like to talk It is critical that schools be able to providing educational, cultural and about them and discuss these issues help these students and help teachers recreational activities, as well as men- and the crises that are going on in our deal with them. We can possibly pre- toring for children after school. 60% of children’s minds and in their souls. But vent a horrific act of violence, and if a the children participating in this pro- all too often we talk about it, and we disruptive student receives help, his or gram have improved their grade point seem to forget it. We don’t do what we her teacher will have more control of average. It works. really need to be doing on behalf of our the classroom in order to instruct all Studies show that one-on-one atten- children in this country. of the children there to learn. tion raises the academic scores of chil- Mr. President, the Safe Schools Act Unfortunately, there are not nearly dren and improves their self-esteem. of 1999 will provide resources to public enough mental health professionals With just a little extra help, a child schools so they can remain safe and working in our nation’s schools today. who is struggling with reading or math strong cornerstones of our commu- The American School Health Asso- can catch up with the help of volun- nities. ciation recommends that the student- teers or mentors and excel. As we move into the 21st century, we to-counselor ratio be 250:1. In sec- We can utilize organizations like must adapt our approach to education ondary schools, the current ratio is AmeriCorps and our older volunteers in to meet the changing needs of stu- 513:1. In elementary schools, where the the Senior Corps program. Encourage dents, teachers and parents in these student-to-teacher ratio exceeds 1000:1. high school students to mentor elemen- communities. This is just not acceptable for a tary school students who need a little Although I am one of the youngest country as advanced as ours to not be extra attention, to see an older peer Members of the Senate, I grew up in providing the needs of our children. being a part of their life makes a dif- Helena, Arkansas during what seemed The second major component of my ference. to be a much simpler time—even Safe Schools Act provides funding for The bottom line is we don’t need to though we were in the height of de-seg- after-school and mentoring programs. reinvent the wheel. Good examples al- regation in the South. Many of our children go home to ready exist in our communities, initia- Our parents pulled together to make empty houses or spend hours every day tives like the ones I’ve mentioned everyone’s education experience a suc- in poorly supervised settings. Studies today. By providing added resources to cess. Students came to school prepared show that youth crime peaks between the states, we can emphasize the suc- to learn. Teachers had control of their 3:00 and 7:00 p.m. cessful programs and make them avail- classroom. The threat of school vio- Local public schools need additional able to more students. lence was virtually non-existent. resources so they can establish or ex- I’m also asking states to inform par- Now, more than twenty years later, pand after school and summer pro- ents about the quality of public schools things are different. grams for children. by issuing a Safe Schools Report Card. Our children are subjected to unprec- This is a wonderful chance for the My own state of Arkansas will begin edented social stresses including di- community to get involved. Many non- releasing a more comprehensive report vorce, drug and alcohol abuse, child profit organizations can bring their re- card next year. abuse, poverty and an explosion of sources to children in the schools and All states should collect this infor- technology that has good and bad uses. to the community. mation and make it readily available These stresses exhibit themselves in A variety of organizations can come to parents and the community. This in- the behavior of teenagers, as well as in together to build strong after school formation will help parents and schools our young children. Increasingly, ele- and summer programs which enhance officials better address the most impor- mentary school children exhibit symp- the academic work of students and pro- tant issues at the local level. toms of substance abuse, academic vide them with other meaningful ac- Above all, we must continue to share underachievement, disruptive behav- tivities. information and ideas, to talk to one ior, and even suicide. Many communities in Arkansas are another. Our country cannot possibly Too many students bring guns and doing just that. meet the challenges of the 21st century weapons to school. The city of Fort Smith has begun the if each community operates in a vacu- This is a very complex problem and SPICE Program, which has been work- um and there is no mechanism to pass there is no one single answer. It will ing for nine years with adult tutors on what is working and what isn’t. take more than metal detectors and who help kids after-school with home- During the August recess I will hold surveillance cameras to prevent the work, and teach them arts and crafts five ‘‘Back to School’’ meetings with tragedies occurring in our schools which keep them out of trouble. students, parents, teachers, school ad- today. But we must do something. We In Little Rock, the Camp Aldersgate ministrators and concerned citizens. cannot wait any longer. We have to ad- Youth Initiative encourages teenagers These meetings will be a good chance dress this issue now. to participate in supervised commu- to discuss the various components of I believe the Safe Schools Act re- nity service activities, such as tutor- my Safe Schools Act as well as other flects the needs and wishes of students, ing, recreation and conflict manage- important education issues like school parents, teachers and school adminis- ment; construction, class size, school dis- trators. It is the first step toward ad- The Safe Jonesboro Mentoring Pro- cipline and parent involvement. dressing the emotional well-being of gram in Jonesboro, Arkansas, brings I welcome the chance to listen to our young people. adults from the local business commu- those who care deeply about our public S9962 CONGRESSIONAL RECORD — SENATE August 2, 1999 schools and I hope my colleagues will period of time, which has advantages, Let’s review some of the highlights. spend some of their time during the re- particularly for the agencies, and we The most recent one, of course, is the cess to do the same. would have the other year for over- passage of tax relief, something I think I also hope my colleagues will take sight, which is equally as important a is very legitimate, perfectly logical. the opportunity to review the compo- task for the Congress—to oversee the We went through great debates about nents of this bill. I feel strongly it expenditure of those dollars. So I hope it, of course. One of the keys, natu- should be a critical part of any federal we are able to do that. rally, is that you have to talk about re- response to school safety issues. I look This has been a tough year. We have duction of taxes after having done forward to its passage. had lots of difficulties, starting, of something to save Social Security, This is our opportunity to begin the course, with the impeachment process, having done something to strengthen process that will show our children we which was difficult. I don’t know that Medicare. That is part of the program. do care about their emotional well it slowed us up particularly. On the That is not the choice. being and the future success of our na- contrary, we did a lot of committee We see these polls that are run from tion. work during the time the impeachment time to time. They say: Would you The PRESIDING OFFICER. Who was going on. Nevertheless, it was rather have Social Security protected seeks recognition? tough. Then came the Colorado Col- or would you rather have tax relief? The Senator from Wyoming. umbine situation, of course, the trag- That is not the issue. That is one of the f edy out there at the school and, with things we worked at. All of us are set- that, the great controversy over gun ting aside this surplus that comes from PRIVILEGE OF THE FLOOR control, which we are likely to see Social Security for the preservation of Mr. THOMAS. Mr. President, first of again now after the tragedy in Georgia. Social Security. These funds which will all, I ask unanimous consent that Then Kosovo was also an issue, of be used to reduce taxes and give some Brady Hayek from my staff be per- course, although Congress really was tax relief are beyond that. mitted the privilege of the floor during not as involved. It was pretty much the I think one of the best illustrations today. President on his own, committing is the Member who had three dollars— three dollar bills. This is basically the The PRESIDING OFFICER. Without troops there. Obviously, we were going surplus we are looking at in the next 10 objection, it is so ordered. to support them. Mr. THOMAS. Mr. President, I would So it has been a difficult year. De- years, $3 trillion, each of these. Two of like to take 12 minutes of the time al- spite that, it seems to me we have ac- them are being set aside for Social Se- lotted, and then the Senator from Mon- complished a great deal. I am a little curity. Tax relief constitutes about 75 tana would like 20 minutes following disappointed that most of the accom- percent of the third one, with the addi- that time. plishments have been made without tional amount of the third one being The PRESIDING OFFICER. Without the support of the minority. Our set aside for spending and for Medicare. The press has not been very helpful, of objection, it is so ordered. friends on the other side have, in fact, course, trying to get that under- f opposed nearly everything that has standing. But in any event, I think been done—I think, unfortunately, ISSUES AND ACCOMPLISHMENTS that is a real movement forward. often more to create an issue than to OF 1999 The thing one also has to keep in create a solution. That often is the Mr. THOMAS. Mr. President, this is mind is, if there is money lying around choice we have; you can cook up some- here, it is going to be spent. It is going the last week before we go on recess. thing you can take home to talk about We will be gone approximately a to be spent enlarging Federal Govern- in political rhetoric, as opposed to try- ment. So if you go back to that origi- month. We will have an opportunity to ing to find some solutions. nal thesis, you go back to the original be home, to talk to our constituents But we have accomplished a great notion that you would like to move ac- about the issues that are here, to talk deal. Much of the controversy will con- tivities back closer to people, you do it about what we have done during this tinue, I suppose. There are legitimate that way rather than bringing more calendar year, and talk about what we differences of view when we are on the and more money here that inevitably have not done for this year as well. We floor on almost every issue. Generally, will be spent increasing the size of Gov- will be back, then, the first part of Sep- the issue is the larger issue of whether ernment. tember. We will have, probably, 2 or not you want more and more Fed- I think we have some hope there. months to continue and to complete eral Government, more and more Fed- Both Houses have passed some tax re- our work for this year. eral regulation, more and more taxes— lief. We will see if we can find a way to There are 13 appropriations bills that which is basically Senators on that put that together, hopefully this week. must be passed to keep the Govern- side of the aisle as opposed to this side Then it will be up to the President to ment running. They must be passed by of the aisle, where we are looking for say whether he wants to spend more September 30, the end of the fiscal limited government, where we are and more money, wants to spend $1 year. This is a very difficult task. We looking for less regulation, where we trillion on 81 new programs, or let the are, hopefully, running on time. We are looking for an opportunity for peo- American people have an opportunity passed eight bills out of the Senate. ple to spend more of their own money. to spend some of their own. However, none has yet been sent to the So basically, when you get down to it Education? Our position again has President. So we will have a couple of in almost all these issues, if you really been that the decisions that are basic months to wind up the year’s work. I pare it away, that is the debate. Legiti- to elementary and secondary education cannot tell you how important it is mate? Yes, indeed, it is legitimate. I ought to be made closest to the people. that we do complete that work. Of happen to be on the side of being more They ought to be made by the States course, the Presiding Officer is the key conservative, of thinking we ought to and by the school boards. Sure, we Senator in that regard. He has done a be moving more and more of these de- have an obligation to provide some fi- great job. cisions back to the States and to the nancial help, but the Ed-Flex program We do not want the President to be counties rather than deciding every- that was passed by this Senate allows able to put us in a position again of thing, one-size-fits-all, at the Federal those decisions to be made more at closing down the Government and level. But these are the differences, and home. blaming the Congress. I hope what we they are the basis for most of the I can tell you, the delivery of edu- do is get these bills to him. I think we things we find in conflict. We have had cation is quite different in Wyoming or will do that. I cannot help but mention less cooperation from the administra- different in Alaska, the State of the as we think about this a little bit, I tion than I had hoped we would have, Presiding Officer, from what it is in hope in Congress we take a look at a from that side of the aisle. I think the New York—and properly so. But to biennial budget, as we have in many President is seeking to change his make that work, then, the local people States—for instance, my home State of image so the politics become more im- have to have that opportunity. We Wyoming. The Congress or the legisla- portant than the movement of the con- have done that with Ed-Flex, and we ture would form a budget for a 2-year gressional budget. had some other educational programs. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9963 I feel fairly strongly about some of ditional $1.7 billion for veterans’ serve, to let communities make some the Federal involvement. My wife is a health. It is something that is very im- of their decisions, and we will continue teacher. She teaches special ed and portant. to be the greatest country in the world. spends almost half of her time on pa- Patients’ Bill of Rights: We passed a Mr. President, I yield the floor. perwork because of the kinds of Fed- Patients’ Bill of Rights that did not in- The PRESIDING OFFICER. The Sen- eral programs that are involved. So we volve the Federal Government, did not ator from Montana is recognized. are making some movement to change involve lawyers and the courts making f that. the decisions but indeed guaranteed TRADE AND THE ENVIRONMENT IN The military fulfills what is obvi- emergency services without having to AN ERA OF GLOBALIZATION ously one of the principal, if not the go through some kind of clearance. It principal, obligations of the Federal guaranteed, if you felt as if you were Mr. BAUCUS. Mr. President, I would Government, to provide for the safety not getting the services, an appeal to a like to talk today about the relation- and protection and defense of this physician, not to a lawyer or to a ship between trade and the environ- country. Over the last number of years, court, and that was passed. ment. the administration has increasingly re- Medicare: We moved to doing some- When I joined the Finance Com- duced the amount of resources there. thing with Medicare. A bipartisan com- mittee in 1979, debate about the Tokyo At the same time, we had more de- mission was set up and they have a rea- Round was just concluding. I don’t re- mands on the military than we had be- sonable plan for Medicare, but the member a single mention of water pol- fore. They are not able to conduct their President asked his folks whom he ap- lution, air pollution, or the protection mission on the amount of resources pointed to serve on that commission to of sea turtles and other endangered that have been available. I was very vote against it, so it did not come out species—important issues, but they disappointed it took a congressional as a commission report and as a com- were not part of the trade debate. committee to press and push and de- mission recommendation. We are going NAFTA changed this. We negotiated mand from the Joint Chiefs of Staff to to take that, basically, and move for- the environmental side agreement, and really get down to whether they are ward and do something on Medicare. created the North America Commission able to carry out their mission with We are moving toward the end. We on Environmental Cooperation. There the resources they have. The answer have some very difficult issues to deal were flaws and limitations, but it was was no. So we have moved to make with, particularly in appropriations. a turning point. some additions to that, in the first step We have to deal with them. We will Now, like it or not, environmental for a very long time. deal with them. I am hopeful we will issues are an integral part of the trade The other thing is, if you are going also have some kind of a relief valve so debate. Environmental group opposi- to have a voluntary force, you have to that if we get through and cannot come tion was one of the major reasons for make it fairly attractive to be in the to an agreement with the President the defeat of Fast Track legislation military, and after having trained peo- that it goes on as it has and will not let last year. Ambassador Barshefsky has ple to do technical things like flying that political technique be used again. said that the next round of trade nego- airplanes or servicing airplanes, they I hope we find a little less resistance tiations should expressly address envi- have to stay in the service and do that. from our friends on the other side in ronmental protection. Two months So we need more of that kind of sup- terms of finding solutions to these ago, the WTO held a series of high level port. problems. roundtable discussions on trade and Social Security? For a very long time I also hope—and this is a philosophy, the environment, in part to help define no one would talk about Social Secu- I admit—that as we go forward we con- the issues for consideration in Seattle. rity. It is the third rail of politics— tinue to understand the greatness of Why has this happened? touch it and you are dead. Now, finally, this country. And it is a great country. It is partly a function of technology. everyone does understand that you If you have had a chance to travel Environmental groups have plugged have to do something different if, in- about a bit, you find it is the greatest. into the Internet—aggressively. Browse deed, your purpose is to maintain the Each time I have a chance to go some- the web sites of almost any environ- benefits that are now going to bene- where, I come back thanking God this mental group, and you will see what I ficiaries and to provide an opportunity is the place in which I live. But it is a mean. Any citizen can follow a high- for young people, who are beginning to great country not because of the Fed- level environmental trade dispute on work and put their money into the eral Government. There is a legitimate the Internet. The heretofore insulated, fund, to have some anticipation of hav- role for the Federal Government, of inaccessible, and arcane international ing benefits for themselves. course, described, by the way, in the trade world meets the chaotic, grass- We have to make some changes. The Constitution, but the real strength of roots, democratic, and Internet-savvy sooner those changes are made the less this country lies in its communities environmental world. severe they will have to be. and in its individuals who have the Let me tell my friends in the trade The President has been talking about freedom to make decisions for them- world something about my friends in saving Social Security for several selves. They have the freedom to get the environmental world. I have years. He has no plan. He has done together and do things that are re- worked with them for years. Some- nothing except talk about it. We now quired to be done in their communities times on the same side, sometimes in have a plan. There is a bipartisan plan to make them healthy. disagreement. They are smart, dedi- on this floor. There has been a lockbox Admittedly, I come from a State that cated, energetic, and aggressive. And amendment to preserve Social Security is unique. Maybe we are the lowest they are very good at using the latest funds. It has been opposed on the other populated State now. We are one of the communications technology. So, if you side of the aisle five times, but we are largest States. The delivery of services are uncomfortable with the new role of going to move forward on Social Secu- is quite different, whether it be air- the environmental community in the rity. lines, whether it be electricity, wheth- trade debate, my only advice is: Get VA funding: The administration has er it be education. We cannot have this used to it and figure out how to work for several years requested a flat budg- one-size-fits-all situation. together. The same advice goes to my et for VA health care but at the same Again, I am pleased with what we environmental friends: The trade folks time has expanded the eligibility for have done. I say to the Presiding Offi- are here to stay. Figure out how to people to utilize those facilities. We cer that he has had one of the most dif- work with them. find, for instance, in my State we have ficult tasks of leadership in the Appro- There’s a second important reason two facilities, but they are under- priations Committee and has done a why environmental protection is now financed and are not providing the good job. an important part of the trade debate. kinds of services to which veterans are I hope we will continue to provide an We are in the midst of an economic entitled. More money needs to be pro- opportunity for us to come together to boom in the United States and the rev- vided, and we are going to do that. The resolve our problems so that we can olution of globalization. Globalization Republican budget this year had an ad- continue to have the opportunity to is bringing every classroom in every S9964 CONGRESSIONAL RECORD — SENATE August 2, 1999 small western town, and on every Na- at an alarming speed—perhaps a thou- significantly. Loopholes that allow tive American reservation, smack into sand times the natural rate. delay in complying with decisions must the middle of the information-based No matter how strictly we protect be closed. global marketplace. It allows small species here in the United States, if the Second, the Administration must businesses all over the world to tap South American rain forest continues conduct an environmental assessment into the global marketplace. It’s forc- to disappear at the current rate, all of for the trade agreement that will ing virtually every company to become our efforts will have been futile. emerge from the new round. I will in- more competitive. The message is simple. Globalization troduce legislation soon requiring such But there’s another side to the story. and expanded trade benefit us. But we a review. Call it the dark side of globalization. must ensure that globalization and ex- Third, we should eliminate all tariffs And it has a long history. panded trade are conducted in a way on environmental goods and services. America’s age of industrialization that enhances, and does not under- One important way to improve envi- created great wealth and progress. But mine, environmental protection. ronmental conditions in other coun- it left behind a terrible environmental One thing that worries my greatly is tries, especially in developing coun- legacy. Rivers so infected with toxic the polarization that has occurred tries, is to reduce the cost of environ- chemicals that they caught fire. Aban- among participants in the trade and mental technology—everything from doned mine tailings that dot the land- environment debate. The middle the elements of a sewage treatment scape of the mountainous west. The ground seems to have fallen into a sink plant to catalytic converters to loss of wetlands and other habitat nec- hole. Yet the middle is where we need groundwater bioremediation tech- essary to sustain the animal and plant people to find solutions to these very nology. U.S. companies are leaders in species upon which our survival de- difficult problems. this field, so reduced tariffs will have pends. Let’s turn to the next round of multi- the added advantage of increasing U.S. In America, we have turned the tide. lateral trade negotiations that will be exports. Our air and water are cleaner now. But the subject of the WTO Ministerial in My fourth item involves environ- we have seen what unchecked economic Seattle in late November. We must ac- mentally harmful subsidies. In some development did to us. commodate globalization and expanded cases, like fishing and agriculture, ex- Extend that kind of growth world- trade while, at the same time, preserve cessive subsidies lead to practices that wide. And pick up the pace, to reflect and enhance environmental protection. are both economically and environ- the hyper-speed of global competition. America must lead. We are the mentally harmful. By limiting such As globalization accelerates, along world’s largest economy. We are the subsidies, we can achieve a ‘‘win-win,’’ with the expanded trade that accom- world’s largest trader. And we are the that makes good economic and good panies and fuels it, we are likely to see world’s leader in developing strong en- environmental sense. I would like to a rapid increase in environmental prob- vironmental laws. As in many different see the total elimination of fishing lems. areas, if we don’t exert leadership, no subsidies. Export subsidies for agri- Tom Friedman puts it this way, in one else will. This is not arrogance. culture should be eliminated world- The Lexus and the Olive Tree: This is not unilateralism. This is lead- wide. We should also start looking seri- [globalization has] unleashed forest-crush- ership, and I offer no excuses and no ously into the reduction of domestic ing forces of development . . . which, if left apologies for it. agricultural subsidies throughout the unchecked, [has] the potential to destroy the I believe that we must follow three world. environment and uproot cultures, at a pace broad precepts in developing the proper The fifth item relates to other sub- never before seen in human history. linkage between trade and the environ- sidies—the so-called ‘‘pollution sub- Let me give you two examples. ment. Call these my ‘‘Three No’s’’. sidy’’ where intentionally keeping en- For years, Montanan and other U.S. Trade liberalization must not harm vironmental standards weak can be an softwood lumber producers have been the environment: Trade rules must not unfair and unacceptable practice that fighting against subsidized Canadian be used to stop legitimate and reason- distorts trade, cuts costs of production imports. One continuing issue is Can- able environmental protection; Envi- for the polluter, and makes taxpayers ada’s relatively weak environmental ronmental regulations must not be pay the difference through higher standards for timber harvesting. Can- used as an instrument for trade protec- health and environmental cleanup ada has no law, at the federal or pro- tion that closes markets and distorts costs. vincial level, like our Endangered Spe- trade flows. A sub-set of this problem is that of cies Act. We need to balance trade and envi- PPMs—production processes and meth- This gives Canadian producers an ronmental goals and prevent trade and ods. How a product is produced affects economic advantage over U.S. pro- environmental abuses. So, let me turn the environment. Examples include the ducers. It also can have a serious envi- to my agenda for trade and the envi- way shrimp harvesting affects sea tur- ronmental effect. In Montana, we’re ronment in the next round of trade ne- tles, and the way timber harvesting af- struggling to protect the Bull Trout, gotiations. fects species, water pollution, and the which is listed as an endangered spe- First, the WTO dispute resolution demand for recycled materials. cies. One of the biggest populations re- process must be made more open, These are complex issues. Some sides in Lake Kookanusa, just south of transparent and publicly accessible. argue that the WTO has already ac- the Canadian border. In the spring, the This is important in the context of en- cepted the principle that a production fish swim up Wigwam Creek, across the vironmental law and regulation, which process can determine how a product border in British Columbia, to spawn. relies heavily on citizen suits and the should be treated. They point out that Recently, British Columbia an- public’s right to know. And it is impor- countries already determine if an im- nounced a program of aggressive tim- tant in the context of the WTO’s credi- ported product was made with improp- ber harvesting in the Wigwam Basin. bility. Secrecy does not enhance re- erly obtained intellectual property or Maybe things will work out, and the spect and confidence in institutions. with improper government subsidies. If harvesting will occur in a way that The GATT was created in an era so, those countries can prevent the im- does not threaten the Bull Trout. But, when nation-states were the only sig- port of that good because of the process if not, our efforts to protect an endan- nificant actors on the world scene. The of production. They argue that if this gered species in this country will be WTO followed the same structure. But is the rule under the WTO for intellec- undermined because of another devel- it does not reflect today’s reality tual property and for subsidies abuses, oped country’s environmental laws where non-governmental entities have it should be the rule for environmental that are deliberately weak to support become important international and processes as well. an industry interest. national players. The rules and proce- The WTO needs to take on this set of Or consider the objectives of the En- dures must accommodate these new ac- tough issues that sits clearly at the dangered Species Act which includes tors. intersection of trade and the environ- preserving biodiversity, the web of life The dispute settlement process takes ment. We need serious and responsible that sustains us. We’re losing species too much time and must be shortened discussion now. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9965 Sixth, the environmental community ible when people are unwilling to talk interpreted or construed as implying any Fed- believes that we need to find a way to about them together. eral Government connection, approval or en- integrate multilateral trade agree- I yield the floor. dorsement’’ and inserting the following: ‘‘which ments and multilateral environmental reasonably could be interpreted or construed as f implying any Federal Government connection, agreements, MEAs, and they are right. approval, or endorsement through the use of a Actions taken under an MEA should CONCLUSION OF MORNING seal, insignia, reference to the Postmaster Gen- not be subject to a GATT challenge. BUSINESS eral, citation to a Federal statute, name of a There are two ways to go about this. The PRESIDING OFFICER (Mr. Federal agency, department, commission, or pro- One is to ‘‘grandfather’’ specific envi- KYL). Under the previous order, morn- gram, trade or brand name, or any other term or ronmental agreements, as we did in ing business is closed. symbol; or contains any reference to the Post- NAFTA. We could start out by pro- master General or a citation to a Federal statute f viding a so-called ‘‘safe haven’’ for the that misrepresents either the identity of the mailer or the protection or status afforded such Montreal Protocol and CITES, the Con- APPOINTMENT OF CONFEREES— matter by the Federal Government’’; and vention on International Trade in En- H.R. 2480 (B) in paragraph (2)— dangered Species of Wild Fauna and Ms. COLLINS. Mr. President, I ask (i) in subparagraph (A) by striking ‘‘and’’ at the end; Flora. The other is to describe the unanimous consent that with respect characteristics of an MEA that will (ii) in subparagraph (B) by striking ‘‘or’’ at to H.R. 2480, the Chair be authorized to the end and inserting ‘‘and’’; and automatically be protected. appoint conferees on the part of the Let me add a few other agenda items (iii) by inserting after subparagraph (B) the Senate. following: that are unrelated to my Seattle list The PRESIDING OFFICER. Without ‘‘(C) does not contain a false representation but need to be on our ‘‘to do’’ list in objection, it is so ordered. implying that Federal Government benefits or the United States. services will be affected by any purchase or The Presiding Officer (Mr. KYL) ap- First, we should take a hard look at nonpurchase; or’’; pointed Mr. ROTH, Mr. LOTT, and Mr. the NAFTA environmental side agree- (2) in subsection (i) in the first sentence— ment, and see how it is working. I will MOYNIHAN conferees on the part of the (A) in the first sentence by striking ‘‘contains ask the key Congressional Committees, Senate. a seal, insignia, trade or brand name, or any including the Senate Environment and f other term or symbol that reasonably could be interpreted or construed as implying any Fed- Public Works Committee, to conduct DISTRICT OF COLUMBIA eral Government connection, approval or en- appropriate oversight. APPROPRIATIONS ACT, 2000 dorsement’’ and inserting the following: ‘‘which Second, we need to improve our do- reasonably could be interpreted or construed as mestic trade policy institutions. And The PRESIDING OFFICER. Pursuant implying any Federal Government connection, that includes enhancing the role of to the order of the Senate of July 1, approval, or endorsement through the use of a Congress in trade negotiations. Last after having received H.R. 2587, the seal, insignia, reference to the Postmaster Gen- week, in a speech at the Washington Senate will proceed to the bill. All eral, citation to a Federal statute, name of a International Trade Association, I pro- after the enacting clause is stricken, Federal agency, department, commission, or pro- gram, trade or brand name, or any other term or posed the establishment of a Congres- and the text of S. 1283 is inserted. H.R. 2587 is read a third time and passed. symbol; or contains any reference to the Post- sional Trade Office. This office would master General or a citation to a Federal statute provide the Congress with additional The Senate insists on its amendment that misrepresents either the identity of the independent, non-partisan, neutral and requests a conference with the mailer or the protection or status afforded such trade expertise. House, and the Chair appoints Mrs. matter by the Federal Government’’; and Its functions would include: moni- HUTCHISON of Texas, Mr. KYL, Mr. STE- (B) in paragraph (2)— toring compliance with major bilat- VENS, Mr. DURBIN, and Mr. INOUYE con- (i) in subparagraph (A) by striking ‘‘and’’ at eral, regional, and multilateral trade ferees on the part of the Senate. the end; (The text of S. 1283 was printed in the (ii) in subparagraph (B) by striking ‘‘or’’ at agreements; analysis of Administration the end and inserting ‘‘and’’; and trade policy, trade actions, and pro- RECORD of July 12, 1999.) (iii) by inserting after subparagraph (B) the posed trade legislation; participation f following: in dispute settlement deliberations at ‘‘(C) does not contain a false representation the WTO and NAFTA, and evaluation DECEPTIVE MAIL PREVENTION implying that Federal Government benefits or of the results of dispute settlement AND ENFORCEMENT ACT services will be affected by any purchase or cases involving the United States. nonpurchase; or’’; The PRESIDING OFFICER. Under (3) by redesignating subsections (j) and (k) as The National Wildlife Federation and the previous order, the Senate will now subsections (m) and (o), respectively; and the Sierra Club have proposed such an proceed to consideration of S. 335, (4) by inserting after subsection (i) the fol- office, although the functions in my which the clerk will report by title. lowing: concept are quite different. The legislative assistant read as fol- ‘‘(j)(1) Matter otherwise legally acceptable in I will be offering legislation on this lows: the mails described under paragraph (2)— later this year. ‘‘(A) is nonmailable matter; A bill (S. 335) to amend chapter 30 of title ‘‘(B) shall not be carried or delivered by mail; One of the most difficult issues that 39, United States Code, to provide for the has arisen in recent years has been the and nonmailability of certain deceptive matter ‘‘(C) shall be disposed of as the Postal Service relationship between trade policy and relating to games of chance, administrative directs. environmental protection. The lack of procedures, orders, and civil penalties relat- ‘‘(2) Matter that is nonmailable matter re- consensus on this relationship has been ing to such matter, and for other purposes. ferred to under paragraph (1) is any matter one of the major reasons that we have The Senate proceeded to consider the that— not been able to proceed with fast bill which had been reported from the ‘‘(A) constitutes a solicitation for the pur- track legislation in the Congress. Committee on Governmental Affairs, chase of any product or service that— Paralysis helps no one. I hope that with an amendment to strike all after ‘‘(i) is provided by the Federal Government; the thoughts I have set out today for and the enacting clause and inserting in ‘‘(ii) may be obtained without cost from the Seattle and for our own domestic agen- lieu thereof the following: Federal Government; and da will help to begin a constructive and SECTION 1. SHORT TITLE. ‘‘(B) does not contain a clear and conspicuous responsible dialogue between the trade This Act may be cited as the ‘‘Deceptive Mail statement giving notice of the information under and the environmental communities. Prevention and Enforcement Act’’. subparagraph (A) (i) and (ii).’’. We need trade. We need environmental SEC. 2. RESTRICTIONS ON MAILINGS USING MIS- SEC. 3. RESTRICTIONS ON SWEEPSTAKES AND DE- protection. We need a sustainable LEADING REFERENCES TO THE CEPTIVE MAILINGS. earth, and that means a clean world UNITED STATES GOVERNMENT. Section 3001 of title 39, United States Code, is and a growing world—more and better Section 3001 of title 39, United States Code, is amended by inserting after subsection (j) (as amended— added by section 2(4) of this Act) the following: jobs everywhere, increased income, (1) in subsection (h)— ‘‘(k)(1) In this subsection, the term— cleaner air and water, the protection of (A) in the first sentence by striking ‘‘contains ‘‘(A) ‘facsimile check’ means any matter de- our natural heritage for future genera- a seal, insignia, trade or brand name, or any signed to resemble a check or other negotiable tions. These goals are only incompat- other term or symbol that reasonably could be instrument that is not negotiable; S9966 CONGRESSIONAL RECORD — SENATE August 2, 1999 ‘‘(B) ‘skill contest’ means a puzzle, game, com- ‘‘(cc) the maximum cost to enter all rounds or order and preliminary injunction under the pro- petition, or other contest in which— levels; cedural requirements of rule 65 of the Federal ‘‘(i) a prize is awarded or offered; ‘‘(dd) the estimated number or percentage of Rules of Civil Procedure. ‘‘(ii) the outcome depends predominately on entrants who may correctly solve the skill con- ‘‘(2)(A) Upon a proper showing, the court the skill of the contestant; and test or the approximate number or percentage of shall enter an order which shall— ‘‘(iii) a purchase, payment, or donation is re- entrants correctly solving the past 3 skill con- ‘‘(i) remain in effect during pendency of the quired or implied to be required to enter the con- tests conducted by the sponsor; statutory proceedings, any judicial review of test; and ‘‘(ee) the identity or description of the quali- such proceedings, or any action to enforce or- ‘‘(C) ‘sweepstakes’ means a game of chance fications of the judges if the contest is judged by ders issued under the proceedings; and for which no consideration is required to enter. other than the sponsor; ‘‘(ii) direct the detention by the postmaster, in ‘‘(2) Matter otherwise legally acceptable in the ‘‘(ff) the method used in judging; any and all districts, of the defendant’s incom- mails that is nonmailable matter described ‘‘(gg) the date by which the winner or winners ing mail and outgoing mail, which is the subject under paragraph (3) shall not be carried or de- will be determined and the date or process by of the proceedings under sections 3005 and 3006. livered by mail and may be disposed of as the which prizes will be awarded; ‘‘(B) A proper showing under this paragraph Postal Service directs. ‘‘(hh) the quantity, estimated retail value, shall require proof of a likelihood of success on ‘‘(3) Matter that is nonmailable matter re- and nature of each prize; and the merits of the proceedings under section 3005 ferred to under paragraph (2) is any matter (ex- ‘‘(ii) the schedule of any payments made over or 3006. cept matter as provided under paragraph (4)) time; or ‘‘(3) Mail detained under paragraph (2) that— ‘‘(C) includes any facsimile check that does shall— ‘‘(A)(i) includes entry materials for a sweep- not contain a statement on the check itself that ‘‘(A) be made available at the post office of stakes or a promotion that purports to be a such check is not a negotiable instrument and mailing or delivery for examination by the de- sweepstakes; and has no cash value. fendant in the presence of a postal employee; ‘‘(ii)(I) does not contain a statement that dis- and closes in the mailing, in the rules, and on the ‘‘(4) Matter that appears in a magazine, news- paper, or other periodical and contains mate- ‘‘(B) be delivered as addressed if such mail is order or entry form, that no purchase is nec- clearly shown not to be the subject of pro- essary to enter such sweepstakes; rials that are a facsimile check, skill contest, or sweepstakes is exempt from paragraph (3), if the ceedings under sections 3005 and 3006. ‘‘(II) does not contain a statement that dis- ‘‘(4) No finding of the defendant’s intent to closes in the mailing, in the rules, and on the matter— ‘‘(A) is not directed to a named individual; or make a false representation or to conduct a lot- order or entry form, that a purchase will not im- tery is required to support the issuance of an prove an individual’s chances of winning with ‘‘(B) does not include an opportunity to make a payment or order a product or service. order under this section. an entry from such materials; ‘‘(b) If any order is issued under subsection ‘‘(5) Any statement, notice, or disclaimer re- ‘‘(III) does not state all terms and conditions (a) and the proceedings under section 3005 or quired under paragraph (3) shall be clearly and of the sweepstakes promotion, including the 3006 are concluded with the issuance of an order conspicuously displayed. rules and entry procedures for the sweepstakes, under that section, any judicial review of the ‘‘(6) In the enforcement of paragraph (3), the in language that is easy to find, read, and un- matter shall be in the district in which the order Postal Service shall consider all of the materials derstand; under subsection (a) was issued.’’. ‘‘(IV) does not disclose the sponsor or mailer included in the mailing and the material and SEC. 6. CIVIL PENALTIES AND COSTS. of such matter and the principal place of busi- language on and visible through the envelope. Section 3012 of title 39, United States Code, is ness or an address at which the sponsor or mail- ‘‘(l)(1) Any person who uses the mails for any amended— er may be contacted; matter to which subsection (h), (i), (j), or (k) ap- (1) in subsection (a) by striking ‘‘$10,000 for ‘‘(V) does not contain sweepstakes rules that plies shall adopt reasonable practices and proce- each day that such person engages in conduct clearly state— dures to prevent the mailing of such matter to ‘‘(aa) the estimated odds of winning each any person who, personally or through a con- described by paragraph (1), (2), or (3) of this prize; servator, guardian, individual with power of subsection.’’ and inserting ‘‘$50,000 for each ‘‘(bb) the quantity, estimated retail value, and attorney— mailing of less than 50,000 pieces; $100,000 for nature of each prize; and ‘‘(A) submits to the mailer of such matter a each mailing of 50,000 to 100,000 pieces; with an ‘‘(cc) the schedule of any payments made over written request that such matter should not be additional $10,000 for each additional 10,000 time; mailed to such person; or pieces above 100,000, not to exceed $2,000,000.’’; ‘‘(VI) represents that individuals not pur- ‘‘(B)(i) submits such a written request to the (2) in subsection (b) (1) and (2) by inserting chasing products may be disqualified from re- attorney general of the appropriate State (or after ‘‘of subsection (a)’’ the following: ‘‘, (c), or ceiving future sweepstakes mailings; any State government officer who transmits the (d)’’; (3) by redesignating subsections (c) and (d), as ‘‘(VII) requires that a sweepstakes entry be request to that attorney general); and subsections (e) and (f), respectively; accompanied by an order or payment for a prod- ‘‘(ii) that attorney general transmits such re- (4) by inserting after subsection (b) the fol- uct previously ordered; quest to the mailer. lowing: ‘‘(VIII) represents that an individual is a win- ‘‘(2) Any person who mails matter to which ‘‘(c)(1) In any proceeding in which the Postal ner of a prize unless that individual has won a subsection (h), (i), (j), or (k) applies shall main- Service may issue an order under section prize; tain or cause to be maintained a record of all re- 3005(a), the Postal Service may in lieu of that ‘‘(IX) contains a representation that con- quests made under paragraph (1). The records order or as part of that order assess civil pen- tradicts, or is inconsistent with sweepstakes shall be maintained in a form to permit the sup- alties in an amount not to exceed $25,000 for rules or any other disclosure required to be pression of an applicable name at the applicable each mailing of less than 50,000 pieces; $50,000 made under this subsection, including any address for a 5-year period beginning on the for each mailing of 50,000 to 100,000 pieces; with statement qualifying, limiting, or explaining the date the written request under paragraph (1) is an additional $5,000 for each additional 10,000 rules or disclosures in a manner inconsistent submitted to the mailer.’’. with such rules or disclosures; or pieces above 100,000, not to exceed $1,000,000. ‘‘(X) represents that the purchase of a prod- SEC. 4. POSTAL SERVICE ORDERS TO PROHIBIT ‘‘(2) In any proceeding in which the Postal DECEPTIVE MAILINGS. uct will allow a sweepstakes entry to receive an Service assesses penalties under this subsection Section 3005(a) of title 39, United States Code, advantage in the winner selection process, to be the Postal Service shall determine the civil pen- is amended— eligible for additional prizes in that sweep- alty taking into account the nature, cir- (1) by striking ‘‘or’’ after ‘‘(h),’’ both places it stakes, or for an entry submitted in a future cumstances, extent, and gravity of the violation appears; and sweepstakes to have a better chance of winning; or violations of section 3005(a), and with respect (2) by inserting ‘‘, (j), or (k)’’ after ‘‘(i)’’ in ‘‘(B)(i) includes entry materials for a skill to the violator, the ability to pay the penalty, both such places. contest or a promotion that purports to be a skill the effect of the penalty on the ability of the vi- contest; and SEC. 5. TEMPORARY RESTRAINING ORDER FOR olator to conduct lawful business, any history of ‘‘(ii)(I) does not state all terms and conditions DECEPTIVE MAILINGS. prior violations of such section, the degree of of the skill contest, including the rules and Section 3007 of title 39, United States Code, is culpability and other such matters as justice entry procedures for the skill contest, in lan- amended— may require. guage that is easy to find, read and understand; (1) by redesignating subsection (b) as sub- ‘‘(d) Any person who violates section 3001(l) ‘‘(II) does not clearly and conspicuously dis- section (c); and shall be liable to the United States for a civil close the sponsor or mailer of the skill contest (2) by striking subsection (a) and inserting the penalty not to exceed $10,000 for each mailing to and the principal place of business or an ad- following: an individual.’’; and dress at which the sponsor or mailer may be ‘‘(a)(1) In preparation for or during the pend- (5) by amending subsection (e) (as redesig- contacted; or ency of proceedings under sections 3005 and nated by paragraph (3) of this section) to read ‘‘(III) does not contain skill contest rules that 3006, the Postal Service, in accordance with sec- as follows: clearly state, as applicable— tion 409(d), may apply to the district court in ‘‘(e)(1) From all civil penalties collected in the ‘‘(aa) the number of rounds or levels of the any district in which mail is sent or received as administrative and judicial enforcement of this contest and the cost to enter each round or part of the alleged scheme, device, lottery, gift chapter, an amount equal to the administrative level; enterprise, sweepstakes, skill contest, or fac- and judicial costs incurred by the Postal Service ‘‘(bb) that subsequent rounds or levels will be simile check or in any district in which the de- in such enforcement, not to equal or exceed more difficult to solve; fendant is found, for a temporary restraining $500,000 in each year, shall be— August 2, 1999 CONGRESSIONAL RECORD — SENATE S9967

‘‘(A) deposited in the Postal Service Fund es- person resides, is found, or transacts business, ‘‘(2) NOTIFICATION SYSTEM.—Any promoter tablished under section 2003; and and serve upon such person a petition for an that mails a skill contest or sweepstakes shall ‘‘(B) available for payment of such costs. order of such court for the enforcement of this participate in the establishment and mainte- ‘‘(2) Except for amounts deposited in the Post- section. nance of a single notification system that pro- al Service Fund under paragraph (1), all civil ‘‘(2) JURISDICTION.—Whenever any petition is vides for any individual (or other duly author- penalties collected in the administrative and ju- filed in any district court of the United States ized person) to notify the system of the individ- dicial enforcement of this chapter shall be de- under this section, such court shall have juris- ual’s election to have the name and address of posited in the General Fund of the Treasury.’’. diction to hear and determine the matter so pre- the individual excluded from all lists of names SEC. 7. ADDITIONAL AUTHORITY FOR THE POST- sented, and to enter such order or orders as may and addresses used by all promoters to mail any AL INSPECTION SERVICE. be required to carry into effect the provisions of skill contest or sweepstakes. (a) IN GENERAL.—Chapter 30 of title 39, this section. Any final order entered shall be ‘‘(d) NOTIFICATION SYSTEM.—If an individual United States Code, is amended by adding at the subject to appeal under section 1291 of title 28. contacts the notification system through use of end the following: Any disobedience of any final order entered the toll-free telephone number provided under ‘‘§ 3016. Administrative subpoenas under this section by any court may be pun- subsection (c)(1)(A), the system shall— ished as contempt. ‘‘(1) inform the individual of the information ‘‘(a) AUTHORIZATION OF USE OF SUBPOENAS BY ‘‘(d) DISCLOSURE.—Any documentary material described under subsection (c)(1)(B); and POSTMASTER GENERAL.—In any investigation provided pursuant to any subpoena issued ‘‘(2) inform the individual that the election to conducted under this chapter, the Postmaster under this section shall be exempt from disclo- prohibit mailings of skill contests or sweepstakes General may require by subpoena the produc- sure under section 552 of title 5.’’. to that individual shall take effect 45 business tion of any records (including books, papers, (b) REGULATIONS.—Not later than 120 days days after receipt by the system of the signed re- documents, and other tangible things which after the date of enactment of this section, the moval request by the individual. constitute or contain evidence) which the Post- Postal Service shall promulgate regulations set- ‘‘(e) ELECTION TO BE EXCLUDED FROM master General finds relevant or material to the ting out the procedures the Postal Service will LISTS.— investigation. use to implement this section. ‘‘(1) IN GENERAL.—An individual may elect to ‘‘(b) SERVICE.— (c) TECHNICAL AND CONFORMING AMEND- exclude the name and address of such indi- ‘‘(1) SERVICE WITHIN THE UNITED STATES.—A MENT.—The table of sections for chapter 30 of vidual from all mailing lists used by promoters subpoena issued under this section may be title 39, United States Code, is amended by add- of skill contests or sweepstakes by mailing a re- served by a person designated under section 3061 ing at the end the following: moval request to the notification system estab- of title 18 at any place within the territorial ju- ‘‘3016. Administrative subpoenas.’’. lished under subsection (c). risdiction of any court of the United States. SEC. 8. REQUIREMENTS OF PROMOTERS OF SKILL ‘‘(2) RESPONSE AFTER MAILING REMOVAL RE- ‘‘(2) FOREIGN SERVICE.—Any such subpoena CONTESTS OR SWEEPSTAKES MAIL- QUEST TO THE NOTIFICATION SYSTEM.—Not later may be served upon any person who is not to be INGS. than 45 business days after receipt of a removal found within the territorial jurisdiction of any (a) IN GENERAL.—Chapter 30 of title 39, request, all promoters who maintain lists con- court of the United States, in such manner as United States Code (as amended by section 7 of taining the individual’s name or address for the Federal Rules of Civil Procedure prescribe this Act) is amended by adding after section purposes of mailing skill contests or sweepstakes for service in a foreign country. To the extent 3016 the following: shall exclude such individual’s name and ad- that the courts of the United States may assert ‘‘§ 3017. Nonmailable skill contests or sweep- dress from all such lists. jurisdiction over such person consistent with stakes matter; notification to prohibit mail- ‘‘(3) EFFECTIVENESS OF ELECTION.—An elec- due process, the United States District Court for ings tion under paragraph (1) shall— the District of Columbia shall have the same ju- ‘‘(A) be effective with respect to every pro- ‘‘(a) DEFINITIONS.—In this section, the term— risdiction to take any action respecting compli- moter; and ‘‘(1) ‘promoter’ means any person who origi- ance with this section by such person that such ‘‘(B) remain in effect, unless an individual no- nates and causes to be mailed more than 500,000 court would have if such person were personally tifies the system in writing that such mailings in any calendar year of any skill con- within the jurisdiction of such court. individual— test or sweepstakes, except for mailings that do ‘‘(3) SERVICE ON BUSINESS PERSONS.—Service ‘‘(i) has changed the election; and not include an opportunity to make a payment of any such subpoena may be made by a Postal ‘‘(ii) elects to receive skill contest or sweep- or order a product or service; Inspector upon a partnership, corporation, asso- stakes mailings. ‘‘(2) ‘removal request’ means a written request ‘‘(f) PROMOTER NONLIABILITY.—A promoter, ciation, or other legal entity by— stating that an individual elects to have the ‘‘(A) delivering a duly executed copy thereof or any other person maintaining the notifica- name and address of such individual excluded to any partner, executive officer, managing tion system established under this section, shall from any list used by a promoter for mailing agent, or general agent thereof, or to any agent not be subject to civil liability for the exclusion skill contests or sweepstakes; thereof authorized by appointment or by law to of an individual’s name or address from any ‘‘(3) ‘skill contest’ means a puzzle, game, com- mailing list maintained by a promoter for mail- receive service of process on behalf of such part- petition, or other contest in which— nership, corporation, association, or entity; ing skill contests or sweepstakes, if— ‘‘(A) a prize is awarded or offered; ‘‘(1) a removal request is received by the noti- ‘‘(B) delivering a duly executed copy thereof ‘‘(B the outcome depends predominately on to the principal office or place of business of the fication system; and the skill of the contestant; and ‘‘(2) the promoter or person maintaining the partnership, corporation, association, or entity; ‘‘(C) a purchase, payment, or donation is re- system has a good faith belief that the request or quired or implied to be required to enter the con- ‘‘(C) depositing such copy in the United States is from— test; and ‘‘(A) the individual whose name and address mails, by registered or certified mail, return re- ‘‘(4) ‘sweepstakes’ means a game of chance for is to be excluded; or ceipt requested, duly addressed to such partner- which no consideration is required to enter. ‘‘(B) another duly authorized person. ship, corporation, association, or entity at its ‘‘(b) NONMAILABLE MATTER.— ‘‘(g) PROHIBITION ON COMMERCIAL USE OF principal office or place of business. ‘‘(1) IN GENERAL.—Matter otherwise legally LISTS.— ‘‘(4) SERVICE ON NATURAL PERSONS.—Service acceptable in the mails described under para- ‘‘(1) IN GENERAL.— graph (2)— of any subpoena may be made upon any natural ‘‘(A) PROHIBITION.—No person may provide person by— ‘‘(A) is nonmailable matter; ‘‘(B) shall not be carried or delivered by mail; any information (including the sale or rental of ‘‘(A) delivering a duly executed copy to the any name or address) in a list described under person to be served; or and ‘‘(C) shall be disposed of as the Postal Service subparagraph (B) to another person for commer- ‘‘(B) depositing such copy in the United cial use. States mails, by registered or certified mail, re- directs. ‘‘(2) NONMAILABLE MATTER DESCRIBED.—Mat- ‘‘(B) LISTS.—A list referred to under subpara- turn receipt requested, duly addressed to such ter that is nonmailable matter referred to under graph (A) is any list of names and addresses (or person at his residence or principal office or paragraph (1) is any matter that— other related information) used, maintained, or place of business. ‘‘(A) is a skill contest or sweepstakes; and created by the system established under this sec- ‘‘(5) VERIFIED RETURN.—A verified return by ‘‘(B)(i) is addressed to an individual who tion. the individual serving any such subpoena set- made an election to be excluded from lists under ‘‘(2) CIVIL PENALTY.—Any person who violates ting forth the manner of such service shall be subsection (e); or paragraph (1) shall be assessed a civil penalty proof of such service. In the case of service by ‘‘(ii) does not comply with subsection (c)(1). by the Postal Service not to exceed $2,000,000 per registered or certified mail, such return shall be ‘‘(c) REQUIREMENTS OF PROMOTERS.— violation. accompanied by the return post office receipt of ‘‘(1) NOTICE TO INDIVIDUALS.—Any promoter ‘‘(h) CIVIL PENALTIES.— delivery of such subpoena. who mails a skill contest or sweepstakes shall ‘‘(1) IN GENERAL.—Any promoter— ‘‘(c) ENFORCEMENT.— provide with each mailing a clear and con- ‘‘(A) who recklessly mails nonmailable matter ‘‘(1) IN GENERAL.—Whenever any person, spicuous statement that— in violation of subsection (b) shall be liable to partnership, corporation, association, or entity ‘‘(A) includes the address and toll-free tele- the United States in an amount of $10,000 per fails to comply with any subpoena duly served phone number of the notification system estab- violation for each mailing of nonmailable mat- upon him, the Postmaster General may request lished under paragraph (2); and ter; or that the Attorney General seek enforcement of ‘‘(B) states how the notification system may ‘‘(B) who fails to substantially comply with the subpoena in the district court of the United be used to prohibit the mailing of any skill con- the requirements of subsection (c)(2) shall be lia- States for any judicial district in which such test or sweepstakes to such individual. ble to the United States. S9968 CONGRESSIONAL RECORD — SENATE August 2, 1999 ‘‘(2) ENFORCEMENT.—The Postal Service shall forcement Act, legislation I authored in the sense that they do award the assess civil penalties under this section.’’. along with my colleagues, Senator prizes, they do deliver the merchandise (b) TECHNICAL AND CONFORMING AMEND- LEVIN, Senator COCHRAN, Senator ED- orders, and they do not seek to conceal MENTS.—The table of sections for chapter 30 of WARDS, Senator DURBIN, and Senator title 39, United States Code, is amended by add- their identities. However, there is a ing after the item relating to section 3016 the fol- SPECTER. critical distinction between running a lowing: S. 335 is the product of an extensive legal contest and treating consumers ‘‘3017. Nonmailable skill contests or sweepstakes investigation and 2 days of public hear- fairly, without resorting to misleading matter; notification to prohibit ings held by the Permanent Sub- or deceptive practices. mailings.’’. committee on Investigations, which I Our hearings in March examined the (c) EFFECTIVE DATE.—This section shall take chair. This legislation would establish key issue of whether consumers are effect 1 year after the date of enactment of this for the first time tough new Federal being clearly informed that no pur- Act. standards for sweepstakes and other chase is necessary to enter sweepstakes SEC. 9. STATE LAW NOT PREEMPTED. promotional mailings. and that buying something does not in- (a) IN GENERAL.—Nothing in the provisions of For example, these mailings would be crease their chance of winning. That is this Act (including the amendments made by required to clearly inform consumers the biggest misconception. Far too this Act) or in the regulations promulgated that a purchase is not necessary to win many consumers believe that if they under such provisions shall be construed to pre- the contest and that a purchase will empt any provision of State or local law that im- make a purchase in response to the not increase their chances of winning. sweepstakes solicitation, they some- poses more restrictive requirements, regulations, In addition to these important con- damages, costs, or penalties. No determination how improve their chances of winning. by the Postal Service that any particular piece sumer protections, the bill confers ad- Nothing could be further from the of mail or class of mail is in compliance with ditional investigative and enforcement truth. The subcommittee heard testi- such provisions of this Act shall be construed to authority on the U.S. Postal Service mony indicating that the existing dis- preempt any provision of State or local law. and authorizes civil fines of up to $2 claimers used by the large sweepstakes (b) EFFECT ON STATE COURT PROCEEDINGS.— million for companies that violate the companies are of very little value. Nothing contained in this section shall be con- consumer protection standards. They are too often deceptively worded strued to prohibit an authorized State official This comprehensive measure has the from proceeding in State court on the basis of or they are contradicted by the glow- support of the AARP, the National ing promises in the promotional copy. an alleged violation of any general civil or Consumers League, and the U.S. Postal criminal statute of such State or any specific In addition, they are hard to locate on Service. civil or criminal statute of such State. the mailing, and they are often written I particularly recognize the leader- SEC. 10. EFFECTIVE DATE. ship roles played by several members of in very tiny print that is difficult to Except as provided in section 8, this Act shall read. the committee. Senator LEVIN, in par- take effect 120 days after the date of enactment Our hearings in March prompted over ticular, has long been a leader in the of this Act. 1,000 letters from across the country to Amend the title so as to read: ‘‘A bill to effort to curtail deceptive mailings. the subcommittee. Many of those let- amend chapter 30 of title 39, United States Senator COCHRAN held some of the first ters included mailings from smaller Code, to provide for the nonmailability of hearings on this issue. Senator ED- sweepstakes companies with which the certain deceptive matter relating to sweep- WARDS, Senator SPECTER, and Senator stakes, skill contests, facsimile checks, ad- subcommittee had not been familiar. DURBIN all contributed greatly to our ministrative procedures, orders, and civil investigation. This public response prompted an ex- penalties relating to such matter, and for pansion of the subcommittee’s inves- other purposes.’’. Let me also express my appreciation for the assistance provided by the tigation into the deceptive practices of The PRESIDING OFFICER. Under chairman of the Governmental Affairs these smaller sweepstakes companies. the previous order, there will now be 2 Those smaller companies were the Committee, Senator THOMPSON, and by hours for debate on S. 335, to be equally the committee’s ranking minority focus of the subcommittee’s second divided between the Senator from hearing in July. Many of these smaller member, Senator LIEBERMAN. Maine and the Senator from Michigan In addition, I salute Senator CAMP- companies tend to be fly-by-night oper- or their designees. BELL, who was one of the first to call ations that use multiple trade names PRIVILEGE OF THE FLOOR attention to the growing problems of to hide their identities and to confuse Ms. COLLINS. Mr. President, I ask deceptive sweepstakes mailings. Some consumers. In fact, we found one com- unanimous consent that the following of the provisions in our legislation are pany that sent out solicitations under members of my staff be granted the similar to those in a bill introduced by 40 different trade names. That was ob- privilege of the floor during consider- Senator CAMPBELL. viously very confusing to consumers ation of S. 335: Lee Blaylock and Mi- I first became aware of the growing because they believed they were get- chael Bopp. problem of deceptive sweepstakes last ting a chance to enter 40 different con- The PRESIDING OFFICER. Without year after receiving several complaints tests when, in fact, it was just one objection, it is so ordered. from my constituents in Maine. In sweepstakes company using 40 different Mr. LEVIN. If the Senator will yield order to learn more about this growing names. for a similar request, I ask unanimous problem, the Permanent Subcommittee In some cases, these smaller compa- consent that Leslie Bell of my staff be on Investigations began an investiga- nies are run by promoters for a year or granted the privilege of the floor. tion into the nature of deceptive mail- two and then shut down. The operator The PRESIDING OFFICER. Without ings and the extent of sweepstakes and then starts up a new company under objection, it is so ordered. other promotional mailings. The sub- yet another name, often one that is Ms. COLLINS. Mr. President, I ask committee soon realized that the pro- specifically chosen to lend credibility unanimous consent that at 5:10 today motional mailing industry generates to the contest or to deceive consumers. Senator EDWARDS be allowed to speak an enormous volume of mail that These companies profit not only from for up to 10 minutes, with the time reaches the mailboxes of millions of their extremely deceptive mailings but coming from the time controlled by Americans. In fact, the four major also by reselling the names of their the Senator from Michigan, that the sweepstakes companies alone flood customers to other operators who then Senator from Michigan be permitted to Americans with more than 1 billion so- inundate the unlucky consumer with speak for 5 minutes following Senator licitations every year. still more mailings. Unfortunately, our EDWARDS, and that I be permitted to The subcommittee held 2 days of pub- investigation suggests that this prac- speak for 5 minutes immediately prior lic hearings. At the first subcommittee tice, this business, is quite lucrative. to the 5:30 vote. hearing in March, we examined the The smaller companies investigated The PRESIDING OFFICER. Without practices of the four major sweepstakes by the subcommittee sent approxi- objection, it is so ordered. companies: American Family Pub- mately 100 million mailings in 1998 and Ms. COLLINS. I thank the Chair. lishers, Publishers Clearinghouse; received over 4 million purchases, Mr. President, I am pleased that the Time, Inc.; and Reader’s Digest. which we conservatively estimate cost Senate is now considering S. 335, the I want to make clear that they all consumers in the neighborhood of $40 Deceptive Mail Prevention and En- run legitimate sweepstakes, legitimate million. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9969 In return, most individuals received a Time and again, family members ily Publishers eventually agreed to a discount coupon book that was fre- have described sweepstakes companies multistate settlement. quently followed by additional numer- literally bombarding elderly relatives I wish the misleading mailings from ous other mailings urging consumers with repeated mailings. Our witnesses the largest sweepstakes companies rep- to purchase the exact same coupon explained that their elderly family resented the worst of the lot. Unfortu- book once again. members spent thousands of dollars in nately, they do not. Let’s take a look Anonymity, as our hearings dem- the vain hope that if they just bought at a couple of examples of deceptive onstrated, is crucial to the success of one more trinket, or one more video- practices of some of the smaller sweep- many of these small operators. They tape, or one more magazine subscrip- stakes companies. As you will recall, depend on working in the shadows and tion, it would greatly improve their these were the companies that were underneath the radar of State and Fed- chances of winning. Of course, it never brought to the subcommittee’s atten- eral regulators. They are, in many did. tion by outraged consumers from ways, the ‘‘stealth’’ sweepstakes com- The losses suffered by consumers across this country who wrote to us panies—difficult to detect, to track, could not, however, be measured in dol- after our first round of hearings. and to stop. Our investigation discov- lars alone. As one elderly gentleman This solicitation, or promotion, from ered that most of these companies at- put it: Mellon, Astor & Fairweather is a de- tempt to conceal their identities ceptive attempt to make the consumer My wife has finally come to realize that think that a prestigious firm—presum- through multiple corporate names and she has been duped by the sweepstakes so- various mailbox drops in several dif- licitations for all these years. Although the ably an accounting firm—is ready to ferent States. Their mailings are often financial drain is now halted, the loss of her give him or her money. Despite de- scribing Mellon, Astor & Fairweather designed to deceive even the most cau- dignity is incalculable. as the ‘‘trustee of record,’’ the sponsor tious and wary consumer. Unfortunately, these are not isolated Our investigation and hearings dem- examples. According to a recent survey of this mailing admitted under oath to onstrated that sweepstakes companies, commissioned by the AARP, nearly 40 the subcommittee that Mellon, Astor & both large and small, use deceptive and percent of seniors surveyed believed Fairweather is not a trustee for any aggressive marketing techniques far there was a connection between pur- group or individual. In fact, there is no too often to entice consumers into chasing and winning, that either mak- ‘‘Mellon,’’ ‘‘Astor,’’ or ‘‘Fairweather’’ making purchases that they do not ing a purchase would help you to win associated with this company. The name was completely made up to give need or want, in the mistaken belief or it would ensure that you would win an air of legitimacy and credibility to that a purchase will improve their a prize. this mailing—in short, to deceive peo- chances of winning that grand prize. You have only to look at some of ple. Moreover, the sweepstakes pro- Indeed, we heard testimony that decep- these sweepstakes mailings to under- moter admitted that this is actually tive sweepstakes mailings can induce stand why consumers draw these con- the address of a Mail Boxes, Etc., and trusting consumers to purchase thou- clusions. For example, one mailing by that the company’s offices are located sands of dollars of questionable mer- Publishers Clearinghouse, which is fa- not in Lake Forest, IL, but in Las chandise. One example that was related mous for its Prize Patrol, tells con- sumers to ‘‘open your door to $31 mil- Vegas, NV. to us by a witness was a magazine sub- Another problem the subcommittee lion on January 31.’’ You can see the scription extending to the year 2018 found was the use of words or symbols personalized mailing, although we that had been purchased by her 82- that give the impression that the mail- blocked out the name of the person in- year-old father-in-law in response to ing is connected with the Federal Gov- volved. This mailing clearly suggests repeated solicitations. ernment. Here is another example of The subcommittee found that many to the consumer that his or her—her in this kind of mailing. It says at the of our senior citizens are particularly this case—purchases are paying off. It top—it is hard to read: The Official specifically states: vulnerable to such deceptive mailings. United Sweepstakes of America. They come from perhaps a more trust- You see, your recent order and entry has Yes, this mailing implies a Govern- ing generation. Many seniors tend to proven to us that you’re indeed one of our ment connection to the sweepstakes. It believe what they read, particularly if loyal friends and a savvy sweepstakes player. And now I’m pleased to tell you that you’ve includes a photo of the U.S. Treasury it is endorsed by a trusted spokesman, building, and by using the address of such as Ed McMahon or Dick Clark, or passed our selection criteria to receive this special invitation. . . . 611 Pennsylvania Avenue, Southeast, if it comes from a well-known com- Washington, DC, it sounds like a very pany, such as Reader’s Digest or Time, Mr. President, this is clearly and bla- tantly designed to deceive the con- prestigious Pennsylvania Avenue ad- or if it involves a mailing that appears dress of a Federal agency. In fact, once to be official. sumers into drawing a connection be- tween making a purchase and winning again, this is an address of a Mail At the subcommittee’s hearings, fam- Boxes, Etc. And, of course, the Federal ily members told of loved ones who the prize. Let me show you another example. Government does not sponsor sweep- were so convinced that they had won a stakes, contrary to the implication of sweepstakes that they refused to leave The next example is a mailing from American Family Publishers. It states: this mailing. their home for fear of missing the Prize Yet another deceptive mailing shows Patrol. One of my constituents in It’s down to a 2 person race for $11 mil- how fraudulent operators link their Maine actually postponed needed sur- lion—you and one other person in Georgia company to the Government. This is a gery because she was absolutely con- were issued the winning number. Whoever re- turns it first wins it all. blowup of a postcard sent to me by a vinced that that was going to be the constituent from Machiasport, ME. As Most people don’t see the very fine day her winnings were delivered to her. you can see, it is marked ‘‘Urgent De- print that declares: The subcommittee investigated livery, A Special Notification of Cash many cases of seniors who, enticed by .. . if you have the winning number. Currently Being Held By the U.S. Gov- the bold promises in deceptive sweep- Unless the contestant reads and un- ernment is Ready for Shipment to stakes, actually spent their Social Se- derstands this fine print, the mailing You.’’ It mimics the typical postcard curity checks, squandered their life’s leaves the unmistakable impression the Postal Service uses. It is designed savings, and even borrowed money in that this recipient, this lucky person, to look like that. order to continue to make purchases and one other person, have the winning The mailing asks the consumer to through these sweepstakes mailings. I number for the $11 million prize. send $9.97 to learn how to receive this will never forget one of our witnesses This mailing actually caused a num- cash. Of course, this was not in any who actually broke down in tears be- ber of contestants to fly to Florida in way a legitimate postcard from the fore the subcommittee as he recounted the hope that their entry would be re- Federal Government. It was merely a how he had been enticed to spend ceived first. After all, it says, ‘‘Who- ploy used by an unscrupulous promoter $15,000 on merchandise he did not want ever returns it first wins it all.’’ It also to trick an unsuspecting consumer into because he thought it would bring him prompted lawsuits by several States’ sending money. Fortunately, my con- closer to winning millions of dollars. attorneys general, and American Fam- sumer did not fall for this scam. But S9970 CONGRESSIONAL RECORD — SENATE August 2, 1999 many others did, leading the Postal ment look-alike’’ mailings by prohib- strength, and the consumers of this Na- Service to bring action against the pro- iting mailings that imply a connection tion are all better off because of that moter of this scam. to, approval, or endorsement by the leadership. This bill is a further exam- Sadly, these are just a few of the Federal Government through the mis- ple of that leadership. I am proud to be many examples of deceptive mailings leading use of a seal, insignia, ref- her principal cosponsor of the bill that that the subcommittee uncovered dur- erence to the Postmaster General, cita- we have worked on for so long. ing its investigation. The simple fact is tion to a Federal law, or any other Sweepstakes for many Americans has that far too many consumers regularly term or symbol unless the mailings become a cruel joke. Americans are fall victim to increasingly deceptive carry true disclaimers. overwhelmed with sweepstakes solici- and sophisticated marketing tech- The bill imposes new Federal stand- tations in the mail that deceptively ap- niques used in these mailings. ards for facsimile checks that are sent pear to promise large winnings but de- I want to emphasize that sweep- in any mailing. These tests must in- liver only empty appeals for purchases stakes can, of course, be a legitimate clude a statement on the check itself of unneeded products and more entries marketing technique. While I have con- stating that it is non-negotiable and into additional sweepstakes. cerns about the deceptive nature of far has no cash value. The majority of Americans may have too many sweepstakes mailings, I don’t Finally, S. 335 will strengthen the a healthy skepticism about these so- want to give the impression that all ability of the Postal Service to combat licitations and don’t believe the mis- sweepstakes are deceptive, or that they deceptive mailings. Under existing law, leading representations. But many are should be outlawed. Our legislation is the Postal Inspection Service does not not so disbelieving, and they can get setting clear standards for them to fol- possess subpoena authority, is unable caught up and do get caught up in a low to avoid the kind of deception that to obtain a judicial order to stop the spiral of financial and emotional trau- we found to be rampant in the indus- deceptive mailing at multiple mail- ma. try. boxes in different States, and may only The subcommittee heard story after Let me outline the major provisions seek financial penalties after a com- story before of seniors particularly, of the legislation before the Senate pany has violated a previously imposed some of the most vulnerable people in today. order for sending deceptive mailings. America, who receive these mailings First, S. 335 requires sweepstakes Our legislation grants the Postal and believe that they have been award- mailings to clearly and conspicuously Service subpoena authority, nation- ed a prize. Several of my constituents from display several important disclaimers wide stop mail authority, and the abil- Michigan lost tens of thousands of dol- and consumer notices, including a clear ity to impose strong civil penalties for lars to sweepstakes solicitations. statement that no purchase is nec- the first violation. At our hearings in One woman in Grand Rapids spent essary to win the contest, and, most of July, the Postal Service testified that over $12,000 in one year with Reader’s all, a statement that a purchase will civil penalties would be a significant Digest alone. not improve your chances of winning. deterrent against deceptive mailings. A woman in the Upper Peninsula of I think that is the most important We can’t just have minor penalties Michigan spent $30,000 in less than a disclaimer of all. that are treated as a cost of doing busi- month on sweepstakes-related pro- These statements have to appear in ness. The penalties under our legisla- motions. three places—on the solicitation, in the tion can reach as high as $1 million, Sweepstakes solicitations are big rules, and on the order form. and, if a company violates an order, business. Companies using sweepstakes In addition, the mailings must state that penalty is doubled and can range to promote their products, be it maga- the odds of winning, the value and the as high as $2 million. zines or coupon books, or jewelry, send nature of the prize, and the name and The current penalties—capped at over a billion pieces of mail a year to the address of the sponsor of the sweep- $10,000 per day—are simply inadequate American consumers. stakes. Sweepstakes mailings would to deter deceptive mailings, especially We learned that one person could get also be required to include all the rules since they can only be imposed after from one company alone as much as 144 and entry procedures for the contest. the mailer has evaded or failed to com- different pieces of sweepstakes mail in The bill would prohibit mailings from ply with a prior order. a year. That was from a so-called ‘‘le- describing the recipient as a ‘‘winner’’ Our bill recognizes the important gitimate company.’’ unless the recipient has really won a role played by the States in inves- Purchases through these types of prize. tigating and prosecuting deceptive mailings are in the billions of dollars. You can see from some of the mail- mailings. We do not preempt any provi- Sweepstakes are used as the ‘‘come-on’’ ings that we have discussed here today sion of State or local law. In many in- to get the recipient to purchase a prod- why that protection is so important. stances, it is the States that have uct or make a contribution. They are Second, this legislation includes the taken the strong action against decep- used, companies say, to get the recipi- provision drafted by Senator EDWARDS tive sweepstakes mailings largely be- ents to open the envelopes, and, once to require companies sending sweep- cause of the gap in Federal law. During opened, used to get the person to re- stakes or skill contests to establish a our investigation, we worked very spond with a purchase or contribution. system that will allow consumers to closely with the National Association Promoters argue that sweepstakes en- request that they be removed from of Attorneys General. trants buy these products because they sweepstakes mailing lists. Companies I would like to close my initial state- want them or need them. sending sweepstakes mailings must in- ment by urging my colleagues to sup- Our investigation demonstrated that clude either a toll-free number or the port S. 2335, the Deceptive Mail Pre- many people who enter these sweep- address at which the consumer may re- vention and Enforcement Act, so that stakes purchase items only because quest that their name be removed alto- the Senate, by passing this legislation they think doing so will improve their gether from future sweepstakes mail- later today, can take an important chances of winning the sweepstakes ings. Companies would be required to first legislative step in curtailing de- prize. A large number buy and buy and remove such individuals from sweep- ceptive sweepstakes and protect the buy, spending tens of thousands of dol- stakes lists within 35 days. American consumer. lars, with that expectation that the Our hearings showed that far too I reserve the remainder of my time. purchase of items will help improve many consumers had great difficulty in The PRESIDING OFFICER. The Sen- their chances of winning. turning off the spigot of sweepstakes ator from Michigan. Companies are not allowed by law to mailings to themselves, or, as was Mr. LEVIN. Mr. President, I thank use the U.S. mails to conduct a lottery. often the case, to an elderly family the Senator from Maine for her tre- A lottery is where payment must be member. Senator EDWARDS’ provision mendous leadership on this issue and given in order to have a chance to win. will assist consumers who want relief so many other consumer protection It is illegal for a sweepstakes promotor from the flood of solicitations. issues. She is leading the Permanent to require a purchase in order for a per- Third, our legislation strengthens Subcommittee on Investigations with son to have a chance to win or to im- the current law regarding ‘‘Govern- tremendous distinction, with great prove a person’s chances of winning. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9971 Buying something when entering a One must spend thousands and thou- sist upon. We can insist that the com- sweepstakes cannot, by law, do any- sands and thousands of dollars for panies state clearly and conspicuously thing to improve a person’s chances of items that you don’t need in order to that buying something will not im- winning. Many people don’t know that receive the savings that are promised. prove a person’s chances of winning. or believe a purchase will improve Yet we learned at our hearings this is We can insist that these companies their chance and many sweepstake a very common sweepstakes scheme. state clearly and conspicuously that companies try to leave the impression Honest businesses don’t engage in you don’t need to buy anything to win. that buying something will give that these practices, or they shouldn’t. Over We can make these companies state recipient an advantage. and over we heard from victims of the clearly and conspicuously what are the Sweepstake companies encourage deceptive sweepstakes packages that odds of winning. In many cases, the this in many ways. For example, some they thought they had to buy some- odds are nearly 1 in 100 million or 1 in use different envelopes for those who thing to receive the big prize or to im- 150 million. We can also require the buy a product and those who don’t. prove their chances of winning. The sweepstake promoters not tell a person Here is an example from Reader’s Di- sweepstake companies are very artful they have won if they haven’t and not gest. They send two envelopes. If a per- at creating this impression. This is use devices to suggest that the mail is son orders something, the envelope about stringing people along. Often the from a Government agency. That will says: Yes, Reward Entitlement [under- people being strung along are the most hopefully alert the folks receiving the lined], Granted and Guaranteed. If a vulnerable. sweepstakes promotion and will help person does not order something, the This is a promotion from Reader’s them think twice before buying items envelope says: No Reward Entitlement, Digest to a constituent of mine whose they really do not want and do not Denied and Unwarranted. house is filled to the brim with tapes, need. They go to different post office boxes, books, CDs, and magazines she bought In the last Congress, several of our clearly leaving a very different impres- believing it would help her get the colleagues joined in sponsoring a bill sion. It is a very strong different im- prize. This is a Certificate of Recogni- to increase enforcement of deceptive pression and a very deceptive different tion for her loyalty to Reader’s Digest: mailings by the Postal Service. This, impression. Dear valued customer: You’ve been se- year Senator COLLINS held hearings on Other sweepstake companies use lected to receive one of our highest sweepstakes and other forms of decep- their own envelope and address card for honors—the Reader’s Digest Recogni- tive mail. We have introduced two bills those entering the sweepstake without tion Reward. It’s your obvious love of to try to eliminate deceptive sweep- purchasing a product. In another Reader’s Digest and sweepstakes that stakes practices. Senator COLLINS’ bill sweepstakes, they are given an enve- made you an ideal candidate. In fact, it is S. 335; my bill is S. 336. We learned lope if they want to buy something; if was your recent subscription request during the hearings that the financial they don’t want to buy something but that finalized our decision. costs to consumers for deceptive and still enter, they have to fill out their In other words, keep buying and we fraudulent sweepstakes is a serious own envelope or their own card, which will keep sending opportunities to win problem and one that particularly is much more difficult than if they are a sweepstake. It is buying the Reader’s plagues our senior citizens. We learned simply buying a product. Digest that they are saying gets the Some companies try to confuse the that the Postal Service has inadequate special treatment. What is the Reader’s message, leaving the recipient to be- law enforcement tools to effectively Digest Recognition Award? It is a little lieve he has to pay a fee to collect a shut down deceptive direct marketers prize that he has already won. This cer- stick ’em label that is pulled off this who use deceptive sweepstakes pro- tificate from the ‘‘Motor Vehicle letter that has my constituent’s name motions to sell their products. We also Awards’’ states: [You] are guaranteed on it so she can paste it on any article learned that the Postal Service can’t to receive a brand-new automobile or a of furniture around her house. It really impost a fine against such a promoter cash award. is a come-on, an opportunity to enter until the Postal Service has issued a The first envelope has the name of yet another sweepstake. That is the stop order, and the stop order has been the person receiving it, so it is very award, a little stick ’em that Mrs. violated. Wily promoters craft their personalized: [Mr. or Miss Someone] Roosenberg got for spending over mailing so that it technically complies are guaranteed to receive a brand-new $12,000 in 1 year for products she didn’t with a particular stop order but is this automobile or cash award. even open, filling up her house. deceptive? Thus, time and time again They ask the recipient to confirm Through the artful placement of these promoters continue to prey on that his name is spelled correctly on words and graphics, the sweepstakes Americans, and the postal Service has the certificate and to indicate how he companies make the reader believe been all but powerless to stop them. wants the car delivered. In the very they have won. They use such large The bill before us is a combination of last paragraph it says: In addition, an screaming headlines: [Mr. X] is Offi- our two bills. It establishes a special optional commodities package with a cially Declared $833,337 Winner. provision in law for deceptive sweep- fully redeemable value of over $2,500 is A big headline you can’t miss. How- stakes mailings, requires certain dis- being held pending your submission of ever, one misses the fine print that closures to be clearly and conspicu- the standard acquisition fee. says, no, you haven’t—only if you held ously displayed in key parts of the The impression is that the recipient the right number. What jumps out is sweepstakes promotion; prohibits other has won a car, that all he has to do is the headline that you have won. misleading and deceptive statements in return the certificate for the car, and Our sweepstakes promoters try to the promotion; gives the Postal Service pay an acquisition fee. Of course, the make their envelopes look special, not additional enforcement tools, and re- impression they attempt to create— like the bulk mail which they are, or quires sweepstakes promoters to pro- and often do, according to our testi- try to make them look like a Govern- vide a mechanism for a recipient of mony—is that acquisition fee relates to ment document, or even in the case of mail to remove his or her name off a the car. a recent Publishers Clearinghouse en- mailing list if requested. If he does that, the impression is he velope, as if they were photographs Mr. President, what is the time situ- will receive a car and the commodities that the recipient paid to have devel- ation? package. That is a pretty good bargain, oped. This envelope looks exactly like The PRESIDING OFFICER. These at $14.98 for a car and commodities envelopes received from the photo are 341⁄2 minutes remaining on the Sen- package. In reality, this is a sales pro- store. In fact, this is one of these ator’s side. motion for the commodities package sweepstake offers from Publishers Mr. LEVIN. I yield myself 10 addi- connected to a sweepstake. The acqui- Clearinghouse. tional minutes. sition fee of $14.98 is buying the com- We cannot control each and every Three key provisions in S. 336 have modities package. The commodities trick that a company uses to get the been incorporated into the substitute. package is nothing more than a book- recipient of a sweepstakes promotion First, to prevent unscrupulous mailers let of coupons that require buying to buy something. However, there are from duping people into believing that items in order to redeem the coupons. some things we can and we should in- a purchase will increase their chances S9972 CONGRESSIONAL RECORD — SENATE August 2, 1999 of winning, the bill requires that a consumers in this legislation. I also in the hope that the purchases would statement that a purchase will not in- thank Senator COCHRAN for his early increase their chances of winning crease an individual’s chances of win- support and Senator EDWARDS for his money or other prizes. Since con- ning be clearly and conspicuously dis- excellent work on the provision requir- ducting that hearing, the sub- played in a prominent place and man- ing a delisting of persons not wanting committee has been flooded with sto- ner in the mailing, in the rules, and on to receive sweepstakes mailings. Fi- ries from consumers all over the coun- the order or entry form. nally, I want to thank the staff of the try who have lost thousands of dollars I believe of all of the new require- Permanent Subcommittee on Inves- in some cases—sometimes their life ments and standards, this is perhaps tigations for the terrific job they did savings—to deceptive mailing prac- the most important. The statement putting together the hearings and de- tices. But it is not just sweepstakes of- that a purchase will not increase an in- veloping this legislation. In particular fers that deceive consumers. Some dividual’s chances of winning must not I want to thank Linda Gustitus and mailers imply an association with the only be clearly and conspicuously dis- Leslie Bell of the minority staff, Lee Government, often enticing consumers played but also displayed in a promi- Blaylock and Kirk Walder of the ma- to pay unnecessary fees. nent place and manner in the mailing, jority staff, and Maureen Mahon of This bill will address several types of in the rules, and on the order or entry Senator EDWARDS’ staff. deceptive mailings, including sweep- form. Such a statement will, hopefully, I reserve the remainder of our time stakes and Government look-alike help readers dissociate the ordering as Senator COLLINS has indicated, and I mailings. process from the sweepstakes entry. yield the floor. First, it will require sweepstakes Second, it provides the Postal Serv- The PRESIDING OFFICER. For the mailings to display a statement that ice with the authority to issue a civil Senator’s information, the Senator no purchase is necessary to enter the penalty for a first-time violation of the from Michigan has 29 minutes remain- contest and that a purchase will not statute. This means the Postal Service ing. The Senator from Maine has 35 improve the chances of winning. Other does not have to first issue a stop order minutes. disclosures will also be required, in- and then wait for that order to be vio- Ms. COLLINS. Mr. President, first I cluding the sponsor of the sweepstakes lated before assessing civil penalties. thank my colleague from Michigan for and the principal place of business or This has the effect of applying the pen- his very generous comments. Also, an address at which the sponsor can be alty to the deceptive offense, not for once again I commend his outstanding reached, and the estimated odds of win- noncompliance with the order. It leadership on this issue. It has been ning each prize and the estimated makes enforcement a one-step instead terrific working with him in a variety value of each prize. In addition, all of a two-step process. Third, it gives of areas related to consumer protec- terms and conditions of the sweep- the Postal Service the subpoena au- tion. We are where we are today be- stakes promotion, including the rules thority it often needs to help identify cause of his efforts. and entry procedures for the sweep- sweepstakes scams. I also echo the thanks to our staff stakes, will be required on each mail- Despite the specificity of the disclo- who have done a tremendous job. ing. Second, the bill will expand the au- sures required under the bill, I remain PRIVILEGE OF THE FLOOR thority of the U.S. Postal Service by quite concerned that the disclosures be I do ask unanimous consent the granting the Postal Inspection Service noticeable and understandable to the privilege of the floor be granted to the subpoena authority, nationwide stop- reader. That is why the bill requires all following members of my staff during mail authority, and the ability to im- disclosures to be clearly and conspicu- the pendency of this legislation: R. pose civil penalties of up to $1 million ously displayed. With a managers’ Emmett Mattes, Kathy D. Cutler, and for the first offense and $2 million for a amendment, we define ‘‘clearly and Deirdre Foley. conspicuously displayed’’ in the bill so violation of an existing order. The PRESIDING OFFICER. Without Finally, the bill will strengthen ex- that there can be no misunderstanding objection, it is so ordered. isting law regarding Government look- by the Postal Service and the direct Ms. COLLINS. Mr. President, it is alike mailings by requiring disclaimers now my great pleasure to yield to the mail industry as to what we mean. on any mailings that might be inter- Furthermore, two critical disclsoures— Senator from Mississippi, who is the preted as implying a connection to the ‘‘no purchase necessary’’ and ‘‘a pur- chairman of the Subcommittee on Gov- Federal Government. chase will not increase an individual’s ernmental Affairs with jurisdiction This legislation was reported out of chances of winning’’—are required to over the Postal Service. Senator COCH- the Subcommittee on International Se- be not only ‘‘clearly and conspicuously RAN held the very first hearings on de- curity, Proliferation and Federal Serv- displayed’’ but ‘‘prominently’’ dis- ceptive mailings last year. He has been ices on April 12 and reported unani- played as well. This means that these a tremendous supporter of the effort to mously by the Committee on Govern- two diclsoures must be highly visible curtail deceptive mailings. I really ap- mental Affairs on May 20. It has the to and easily noticeable by the reader. preciate his leadership on this issue. support of the U.S. Postal Service, a These important messages will not be The PRESIDING OFFICER. The Sen- number of consumer groups, and the allowed to be hidden or disguised ator from Mississippi. American Association of Retired Per- through illegible print size, glitzy dis- Mr. COCHRAN. Mr. President, I am sons. plays which detract from the disclo- pleased to be a cosponsor and to sup- I commend the work of the distin- sure, or barely noticeable ink color. port the passage of the Deceptive Mail guished Senator from Maine, Ms. COL- The Deceptive Mail Prevention and Prevention and Enforcement Act, S. LINS, in crafting this legislation to Enforcement Act of 1999 takes a tough 335. This legislation would establish curb deceptive mailings. As chair of approach to dealing with sweepstakes new safeguards to protect consumers the Permanent Subcommittee on In- solicitations and other games of chance against deceptive and dishonest sweep- vestigations, Senator COLLINS has thor- offerings that are sent through the stakes and other promotional mailings. oughly examined the issue, and I ap- mail. If you use sweepstakes or a game The bill grants additional investigative plaud her important efforts in devel- of chance to promote the sale of a le- and enforcement authority to the U.S. oping this bill and her continuing ef- gitimate product, provide adequate dis- Postal Service to stop deceptive mail- forts to protect consumers. The distin- closure, and abide with Postal Service ings, and it establishes standards for guished ranking minority member of regulations, then the Postal Service all sweepstakes mailings by requiring the committee, Senator LEVIN, has also will deliver that solicitation without certain disclosures on each mailing. supported this initiative, and we appre- any interruption. If deceptive practices In the last Congress, our sub- ciate his assistance. are used in a sweepstakes or game of committee examined the use of mass This bill takes an important step to- chance solicitation, the Postal Service mail to deceive and defraud consumers. ward the prevention of deception in will be able to stop the solicitation and At the subcommittee’s hearing, we sweepstakes and other promotional impose a significant penalty. heard how sweepstakes and other pro- mailings. I urge Senators to support it. I again thank Senator COLLINS again motions were causing individuals to The PRESIDING OFFICER (Mr. for her hard work and commitment to make unwanted or excessive purchases VOINOVICH). The Senator from Maine. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9973 Ms. COLLINS. Mr. President, I thank to lead recipients into believing that obviously clearly and conspicuously the Senator from Mississippi for his they are different sweepstakes. Once displayed in a prominent manner and very kind comments and for his strong the recipient believes that they are dif- location. support of this initiative. He has been ferent sweepstakes, the recipient who Does the Senator from Maine agree a partner throughout this investiga- believes that a purchase either is re- with my description? tion into deceptive mailings, and I am quired or will confer an advantage Ms. COLLINS. Yes, I do. Of the sev- very grateful for his support. upon them will then believe that a sep- eral disclosures we require to be in- DIFFERENT PROMOTIONS FOR THE SAME arate purchase must be made for each cluded in a mailing containing a sweep- SWEEPSTAKES unique-looking sweepstakes. Because stakes or skill contest promotion, Mr. LEVIN. Mr. President, during the these different-looking mailings do not these two disclosures—that no pur- July 1999 hearing on deceptive mail clearly state that they are promoting chase is necessary and that purchasing held by the Permanent Subcommittee the same sweepstakes, I agree with the does not improve your chances of win- on Investigations, several promoters Senator from Michigan that they can ning—are particularly important for testified that they use different busi- be deceptive. the reader to see in a prominent way. ness names and different stationery to USE OF THE WORD ‘‘PROMINENT’’ The statements themselves should be send to the same people different-look- Mr. LEVIN. Mr. President, our bill clear and conspicuous, as required by ing mailings to promote the same requires a sweepstakes or skill contest the bill, and they should be prominent sweepstakes. So, for example, on day promotion, in order to be mailable in three places in each mailing, so it one, a person can get a solicitation to matter, to contain a number of specific would be very difficult for a recipient enter a $10,000 sweepstakes, and the so- disclosures. Each of the disclosures re- not to notice them. licitation says on the top that ‘‘Com- quired by the bill must be ‘‘clearly and A number of sweepstakes and skill pany Blue’’ is making the offer. In the conspicuously displayed.’’ We have de- contest promoters currently include in rules it says ‘‘your chances of winning fined that term in the bill to mean their mailings the statement that no are 1 in 3 million.’’ Let’s say you enter ‘‘readily noticeable, readable, and un- purchase is necessary. But this is often that sweepstakes. One week later you derstandable.’’ This is a definition con- included only as a part of a lengthy set get another solicitation for a $10,000 sistent with the definition used by the of rules or buried in other statements sweepstakes. Federal Trade Commission. and notices that allow it to be easily And we learned that the standard op- Two of the required disclosures—that overlooked. That is why our managers’ erating procedure for this type of no purchase is necessary to win and amendment includes the requirement sweepstakes is to send 5 or 6 mailings that purchasing does not improve your that these two statements be promi- for the same sweepstakes after the per- chances of winning—are so important nent, and clearly and conspicuously son responds to the first mailing. to giving a consumer the information displayed. I thank the Senator from So on this second mailing, it says he or she needs to decide whether or Michigan for his assistance on this ‘‘Company Red’’ at the top and the ma- not to enter a sweepstakes and if so, issue. whether or not to purchase an adver- terials look totally different from the AMENDMENT NO. 1497 ‘‘Company Blue’’ promotions. The rules tised product—that they should appear prominently in three places in each (Purpose: To provide a managers’ of this second solicitation also say you amendment) have a 1 in 3 million chance of winning mailing. Our addition of the term $10,000, which a reasonable person ‘‘prominently’’ to these two disclosures Ms. COLLINS. Mr. President, I send would think is a completely different is intended to emphasize the height- to the desk the managers’ amendment. sweepstakes. That’s also what the pro- ened significance of these disclaimers. The PRESIDING OFFICER. The moter wants you to think. So you This means that these two disclosures clerk will report. think you have a chance of winning must be highly visible and highly no- The legislative clerk read as follows: $20,000 in total. But, you don’t. The ticeable to the reader. In Edgeworth v. The Senator from Maine [Ms. COLLINS], for most you can win is $10,000. Fort Howard Paper Co., 673 F. Supp. 922, herself and Mr. LEVIN, proposes an amend- I believe these mailings are misrepre- 923 (N.D. Ill. 1987), rev. on other ment numbered 1497. senting the facts, and under existing grounds, 683 F. Supp. 1193 (1988), the Ms. COLLINS. Mr. President, I ask law these misrepresentations are de- District Court defined ‘‘prominent and unanimous consent that the reading of ceptive. For example, in the ‘‘Company accessible place’’ to mean that the the amendment be dispensed with. Blue’’ and ‘‘Company Red’’ scenario I message conveyed can readily be ob- The PRESIDING OFFICER. Without just described, the promoter wants you served by the people for whom it is in- objection, it is so ordered. to think that you’re receiving two sep- tended. In Allstate Insurance Co. v. The amendment is as follows: arate solicitations, each involving two Clemmons, 742 F. Supp. 1073, 1075 (D.NV On page 19, insert between lines 22 and 23 separate sweepstakes. In fact, the so- 1990), the District Court defined the following: licitations for ‘‘Company Blue’’ and ‘‘prominently displayed’’ to mean ‘‘the ‘‘(A) ‘clearly and conspicuously displayed’ ‘‘Company Red’’ are for the same message must have greater prominence means presented in a manner that is readily than the balance of the policy lan- noticeable, readable, and understandable to sweepstakes and thus you can win only the group to whom the applicable matter is once. Section 3005 of title 39 currently guage. .. . In other words, a clause at- disseminated; allows the Postal Service to deny de- tains prominence by being different On page 19, line 23, strike ‘‘(A)’’ and insert livery of mail used as part of a scheme from its surrounding terms.’’ ‘‘Promi- ‘‘(B)’’. to obtain money through the mail by nently’’ requires, for purposes of our On page 20, line 1, strike ‘‘(B)’’ and insert means of false representations. Clearly bill, making the two disclosures to ‘‘(C)’’. many sweepstakes promoters use dif- which ‘‘prominently’’ applies different On page 20, line 9, strike ‘‘(C)’’ and insert ferent business names and different from other messages in appearance, ‘‘(D)’’. manner of presentation, and location. On page 20, line 21, insert ‘‘prominently’’ stationery to make you think their after ‘‘that’’. multiple solicitations are unique and These two disclosures must stand out On page 21, line 1, insert ‘‘prominently’’ have no relationship to each other. from the rest of the printed material after ‘‘that’’. Does the Senator from Maine agree on the three locations where they are On page 21, lines 4 and 5, strike ‘‘an entry that these multiple mailing schemes required to appear. from such materials’’ and insert ‘‘such mislead people into thinking they are One can argue that there is going to entry’’. entering separate contests from dif- be some subjectivity in deciding On page 21, lines 8 and 9, strike ‘‘, in lan- ferent companies? whether a statement is prominently guage that is easy to find, read, and under- Ms. COLLINS. Yes, I agree with the placed in a promotion or not. Our in- stand’’. Senator from Michigan. The practice of tention here is to provide the Postal On page 21, line 15, strike ‘‘clearly’’. On page 22, line 5, insert ‘‘or’’ after the using different-looking promotional Service with enough guidance to en- semicolon. mailings without any information ex- sure that when it comes to these two On page 22, line 11, strike ‘‘or’’ after the plaining that they are for the same disclosures, there should be no close semicolon. sweepstakes serves no purpose except calls. These two disclosures should be On page 22, strike lines 12 through 17. S9974 CONGRESSIONAL RECORD — SENATE August 2, 1999 On page 22, lines 23 and 24, strike ‘‘, in lan- ‘‘(d) ELECTION TO BE EXCLUDED FROM ber of new standards on promotional guage that is easy to find, read and under- LISTS.— mailings. The managers’ amendment stand’’. ‘‘(1) IN GENERAL.—An individual (or other further defines the ‘‘clear and con- On page 23, line 1, strike ‘‘clearly and con- duly authorized person) may elect to exclude spicuous’’ standard for the disclaimers spicuously’’. the name and address of that individual from On page 23, line 6, strike ‘‘clearly’’. all lists of names and addresses used by a and notices required in this bill. All On page 34, line 1, strike all through page promoter of skill contests or sweepstakes by disclaimers and notices must be ‘‘clear- 39, line 23, and insert the following: submitting a removal request to the notifi- ly and conspicuously displayed,’’ which SEC. 8. REQUIREMENTS OF PROMOTERS OF cation system established under subsection means ‘‘in a manner that is readily no- SKILL CONTESTS OR SWEEPSTAKES (c). MAILINGS. ticeable, readable and understandable ‘‘(2) RESPONSE AFTER SUBMITTING REMOVAL (a) IN GENERAL.—Chapter 30 of title 39, to the group to whom the applicable United States Code (as amended by section 7 REQUEST TO THE NOTIFICATION SYSTEM.—Not matter is disseminated.’’ of this Act) is amended by adding after sec- later than 35 calendar days after a promoter During its investigation into decep- tion 3016 the following: receives a removal request pursuant to an tive sweepstakes mailings, the Perma- election under paragraph (1), the promoter ‘‘§ 3017. Nonmailable skill contests or sweep- shall exclude the individual’s name and ad- nent Subcommittee on Investigations stakes matter; notification to prohibit mail- dress from all lists of names and addresses found numerous examples of mailings ings used by that promoter to select recipients that misled consumers into believing ‘‘(a) DEFINITIONS.—In this section, the for any skill contest or sweepstakes. that they must purchase a product to term— ‘‘(3) EFFECTIVENESS OF ELECTION.—An elec- win a prize, or that a purchase will im- ‘‘(1) ‘promoter’ means any person who— tion under paragraph (1) shall remain in ef- prove their chances of winning. The in- ‘‘(A) originates and mails any skill contest fect, unless an individual (or other duly au- or sweepstakes, except for any matter de- vestigation showed that many mailings thorized person) notifies the promoter in scribed under section 3001(k)(4); or did not clearly inform consumers that writing that such individual— ‘‘(B) originates and causes to be mailed ‘‘(A) has changed the election; and no purchase was necessary to enter the any skill contest or sweepstakes, except for ‘‘(B) elects to receive skill contest or sweepstakes and that buying a product any matter described under section sweepstakes mailings from that promoter. did not increase their chances of win- 3001(k)(4); ‘‘(e) PROMOTER NONLIABILITY.—A promoter ning. The disclaimers and notices in ‘‘(2) ‘removal request’ means a request shall not be subject to civil liability for the stating that an individual elects to have the many existing sweepstakes mailings exclusion of an individual’s name or address are of little value because they are too name and address of such individual excluded from any list maintained by that promoter from any list used by a promoter for mailing for mailing skill contests or sweepstakes, often buried in tiny print or contra- skill contests or sweepstakes; if— dicted by the promotional copy. Con- ‘‘(3) ‘skill contest’ means a puzzle, game, ‘‘(1) a removal request is received by the sumers should not need a law degree or competition, or other contest in which— promoter’s notification system; and a magnifying glass to read the rules or ‘‘(A) a prize is awarded or offered; ‘‘(2) the promoter has a good faith belief to decipher how to enter a sweepstakes ‘‘(B) the outcome depends predominately that the request is from— without placing an order. In order to on the skill of the contestant; and ‘‘(A) the individual whose name and ad- ‘‘(C) a purchase, payment, or donation is give some value to the disclaimers and dress is to be excluded; or consumer notices mandated by this required or implied to be required to enter ‘‘(B) another duly authorized person. the contest; and ‘‘(f) PROHIBITION ON COMMERCIAL USE OF bill, S. 335 requires each of these disclo- ‘‘(4) ‘sweepstakes’ means a game of chance LISTS.— sures to be ‘‘clearly and conspicuously for which no consideration is required to ‘‘(1) IN GENERAL.— displayed.’’ enter. ‘‘(A) PROHIBITION.—No person may provide The managers’ amendment defines ‘‘(b) NONMAILABLE MATTER.— any information (including the sale or rental ‘‘clearly and conspicuously displayed’’ ‘‘(1) IN GENERAL.—Matter otherwise legally of any name or address) derived from a list in a manner that is consistent with acceptable in the mails described under para- described under subparagraph (B) to another graph (2)— previous agency and court rulings. As person for commercial use. the committee report for this legisla- ‘‘(A) is nonmailable matter; ‘‘(B) LISTS.—A list referred to under sub- ‘‘(B) shall not be carried or delivered by paragraph (A) is any list of names and ad- tion explains, the Federal Trade Com- mail; and dresses (or other related information) com- mission has issued opinions on the ‘‘(C) shall be disposed of as the Postal piled from individuals who exercise an elec- meaning of ‘‘clear and conspicuous’’ Service directs. tion under subsection (d). and this standard is a staple of com- ‘‘(2) NONMAILABLE MATTER DESCRIBED.— ‘‘(2) CIVIL PENALTY.—Any person who vio- mercial law. The definition of clear and Matter that is nonmailable matter referred lates paragraph (1) shall be assessed a civil conspicuous, as used in S. 335, is meant to under paragraph (1) is any matter that— penalty by the Postal Service not to exceed ‘‘(A) is a skill contest or sweepstakes, ex- to be consistent with the interpreta- $2,000,000 per violation. tion of the standard as developed in cept for any matter described under section ‘‘(g) CIVIL PENALTIES.— 3001(k)(4); and ‘‘(1) IN GENERAL.—Any promoter— previous regulatory opinions, state- ‘‘(B)(i) is addressed to an individual who ‘‘(A) who recklessly mails nonmailable ments, and case law. made an election to be excluded from lists matter in violation of subsection (b) shall be Thus, as the definition states, the re- under subsection (d); or liable to the United States in an amount of quired disclosures must be readily no- ‘‘(ii) does not comply with subsection $10,000 per violation for each mailing to an ticeable, readable, and understandable (c)(1). individual of nonmailable matter; or to the group to whom the matter is ‘‘(c) REQUIREMENTS OF PROMOTERS.— ‘‘(B) who fails to comply with the require- mailed. As the committee report notes, ‘‘(1) NOTICE TO INDIVIDUALS.—Any promoter ments of subsection (c)(2) shall be liable to in some instances, the language may who mails a skill contest or sweepstakes the United States. need to be highlighted, in bold letters, shall provide with each mailing a statement ‘‘(2) ENFORCEMENT.—The Postal Service that— shall assess civil penalties under this sec- or placed in a visible location. We rec- ‘‘(A) is clearly and conspicuously dis- tion.’’. ognize that the format and layout of played; (b) TECHNICAL AND CONFORMING AMEND- promotional mailings differ dramati- ‘‘(B) includes the address or toll-free tele- MENTS.—The table of sections for chapter 30 cally and, accordingly, the presen- phone number of the notification system es- of title 39, United States Code, is amended by tation of each required disclosure will tablished under paragraph (2); and adding after the item relating to section 3016 ‘‘(C) states that the notification system the following: necessarily vary. Thus, we believe it is unwise to dictate the size, font, color, may be used to prohibit the mailing of all ‘‘3017. Nonmailable skill contests or sweep- skill contests or sweepstakes by that pro- stakes matter; notification to or placement of each disclaimer im- moter to such individual. prohibit mailings.’’. posed on promotional mailings. The ‘‘(2) NOTIFICATION SYSTEM.—Any promoter (c) EFFECTIVE DATE.—This section shall definition in this managers’ amend- that mails or causes to be mailed a skill con- take effect 1 year after the date of enact- ment, however, gives the regulators test or sweepstakes shall establish and main- ment of this Act. broad guidance to interpret on a case- tain a notification system that provides for by-case basis what is required for a dis- any individual (or other duly authorized per- Ms. COLLINS. Mr. President, I offer son) to notify the system of the individual’s this managers’ amendment on behalf of claimer or notice to qualify as ‘‘clearly election to have the name and address of the myself and Senator LEVIN to clarify and conspicuously displayed.’’ individual excluded from all lists of names certain provisions of S. 335. The committee report accompanying and addresses used by that promoter to mail As I described in my opening state- S. 335 provides a detailed description of any skill contest or sweepstakes. ment, this legislation imposes a num- the clear and conspicuous standard as August 2, 1999 CONGRESSIONAL RECORD — SENATE S9975 enunciated by the Federal Trade Com- companies sending sweepstakes or skill ican families and elderly persons from mission and in court decisions. The contest mailings to establish a system some unscrupulous elements of our so- standard was designed to prevent de- for removing the names of individuals ciety. ception, and we expect those enforcing who do not wish to receive such mail- It pleases me to remark briefly on this Act to make use of this standard ings. Section 8, as reported out of the the genesis of this proposal. In my ex- to protect consumers receiving pro- Committee on Governmental Affairs, perience, the role of oversight and in- motional mailings from deceptive prac- established a uniform notification sys- vestigation has enabled the Congress to tices. We agree with the Federal Trade tem for most sweepstakes and contest craft its most informed, well reasoned, Commission that deception occurs if mailings. and thorough legislative proposals. As there is a representation, omission, or Under the new provisions companies past chairman of the Senate’s Perma- practice that is likely to mislead the would be required—on a company-by- nent Subcommittee on Investigation reasonable consumer or his or her det- company basis—to include on their and current chairman of the Senate Fi- riment. mailings a notice of the address or toll- nance Committee, I have long used and Furthermore, the managers’ amend- free telephone number that individuals will continue to use these tools to as- ment adds the word ‘‘prominently’’ to could contact to request that their sess and reform. the two most significant disclosures re- names be removed from future mail- I commend my successor as chairman quired by S. 335: first, that no purchase ings. Such names must be removed of the Permanent Subcommittee on In- is necessary to enter the sweepstakes; within 35 days after appropriate notice. vestigation, Senator SUSAN COLLINS, and second, that a purchase will not in- If a mailing is recklessly sent to con- for taking a thorough approach to crease an individual’s chances of win- sumers who have requested not to re- crafting this proposal. Following a ning with that entry. S. 335 already ceive further solicitations, the mailer process of investigation and hearings, places significance on these two dis- shall be subject to a penalty of $10,000. Senator COLLINS has applied the right claimers by requiring that they appear This section shall take effect one year tools to a common problem. The people in three different places in most sweep- after enactment of this legislation. We of Maine, Delaware, and the rest of our stakes mailings: (1) the mailing, (2) the commend our colleague and friend Sen- Nation will benefit from her hard work. rules, and (3) the entry or order form. ator EDWARDS for his strong leadership Mr. JEFFORDS. Mr. President, I rise Because the subcommittee’s investiga- in crafting this proposal. today to express my strong support for tion found strong evidence that some In closing, I thank my colleagues, S. 335, the Deceptive Mail Prevention consumers believed a purchase would particularly Senator LEVIN, for their and Enforcement Act. increase their chances of winning, we assistance in crafting this managers’ As a cosponsor of this legislation, let view these two disclosures as particu- amendment, and I urge its adoption. me first thank Senator COLLINS for her larly important. As such, and because The PRESIDING OFFICER. Without hard work in crafting this legislation, of the brevity of these disclosures, we objection, the amendment is agreed to. and for the informative and insightful believe that it is particularly impor- The amendment (No. 1497) was agreed oversight hearings she has held on the tant that they be easily identifiable by to. sweepstakes industry this year. Those the reader. Ms. COLLINS. Mr. President, I move hearings have exposed some troubling The Federal Trade Commission has to reconsider the vote. practices, and clearly demonstrate the used a variety of terms to describe Mr. LEVIN. I move to lay that mo- need for this important legislation. clear and conspicuous, including suffi- tion on the table. ciently clear and prominent. Because The motion to lay on the table was Earlier this year a constituent of many of the other disclosures required agreed to. mine from Huntington, Vermont, e- by S. 335 may be lengthy and may Ms. COLLINS. Mr. President, we are mailed my office and relayed his own only appear in one place in a mailing, expecting additional speakers. In the personal story as an example of the we believe that what is ‘‘clear and con- meantime, I suggest the absence of a need for this legislation. He had been spicuous’’ for one disclaimer may differ quorum, and I ask unanimous consent asked by his mother to help review her from what is necessitated by another. that time be charged equally to both mail as she was certain she had won A disclosure of a few words, such as sides. something from a variety of sweep- ‘‘no purchase necessary,’’ would by its The PRESIDING OFFICER. Without stakes mailings. He was shocked to very nature dictate a different objection, it is so ordered. The clerk learn in reviewing the material that yardstick than would the entire con- will call the roll. while technically correct the material test rules, which might consist of sev- The legislative clerk proceeded to she was sent was very misleading. Any eral hundred words. We expect all dis- call the roll. information that would lead the person closures to be clear and conspicuous Ms. COLLINS. Mr. President, I ask to believe they had won was high- but these two disclosures should be unanimous consent that the order for lighted or in bold print, while the ‘‘prominent’’ in the three required the quorum call be dispensed with. statements containing words like ‘‘if places in each mailing. The PRESIDING OFFICER. Without you have the winning number’’ are sub- The managers’ amendment also objection, it is so ordered. dued, and in small print. The intent of makes several technical changes. it re- Mr. ROTH. Mr. President, I rise these mailings was clearly to create a moves duplicative language from sev- today to speak in support of the Decep- false sense of ‘‘winning’’ in the recipi- eral different disclosures required by S. tive Mail Prevention and Enforcement ent. 335. These deletions, however, are not Act. Unrequested mailings are seen by As his e-mail further points out, it intended in any way to weaken the many as a nuisance. But when junk used to be only the big names which overall requirement that disclosures mail makes insupportable and out- sent out these sweepstakes mailings, must be ‘‘clearly and conspicuously rageous claims of instant wealth, phan- but it ow seems to be every fund-rais- displayed.’’ The managers’ amendment tom prices, and bogus benefits annoy- ing group, catalog, or magazine has also deletes a somewhat duplicative re- ance becomes fraud—the small print some version of these sweepstakes quirement relating to advantages that notwithstanding. mailings. However, even if you are just a sweepstakes might imply are given to Among its provisions, the Deceptive receiving material from one company those entries that accompany a pur- Mail Prevention and Enforcement Act, if can be an overwhelming amount of chase. Given the disclaimer which S. 335, would place new requirements sweepstakes mailings. states that a purchase will not improve on sweepstakes offerings and allow For example, another constituent of the contestant’s chance of winning, we fines to be levied on deceptive mail- mine from Barre, Vermont, brought determined that this provision was su- ings. S. 335 would also require sweep- into my office over fifteen pounds of perfluous. stakes information to be presented sweepstakes mailings from one com- Finally, the managers’ amendment clearly, and grants the Postal Service pany that related to only one contest. replaces section 8 of the bill reported new authority to halt misleading mail- You heard me right, fifteen pounds of by the Governmental Affairs Com- ings. I feel strongly that these reforms material for only one contest from one mittee with new language requiring all will benefit an untold number of Amer- company. Multiply that by the number S9976 CONGRESSIONAL RECORD — SENATE August 2, 1999 of contests and companies people re- The PRESIDING OFFICER. The efforts to investigate questionable pro- ceive mailings from and you are look- clerk will call the roll. motion practices beyond their state ing at an overwhelming amount of The assistant legislative clerk pro- borders. S. 335 will not only improve mail. ceeded to call the roll. the Postal Service’s ability to inves- One of the most outrageous practices Mr. THOMPSON. Mr. President, I ask tigate and stop deceptive mailings, but in these mailings is the request for a unanimous consent that the order for it will also help state attorneys general donation or a purchase of a product the quorum call be rescinded. work more effectively against fraud. without making it clear that the dona- The PRESIDING OFFICER. Without This bill represents the bipartisan ef- tion or purchase has no effect on your objection, it is so ordered. forts of a number of Senators. S. 335 chances of winning any of the prizes. Mr. THOMPSON. Mr. President, I was unanimously reported out of the This has caused some people to expend lend my strong support for Senate ap- Committee on Governmental Affairs their precious resources thinking they proval of S. 335, the Deceptive Mail with the support of both myself and are giving themselves a better chance Prevention and Enforcement Act. This the ranking minority member, Senator at winning the grand prize, when in re- bill will establish new consumer pro- LIEBERMAN. I would like to take this ality it has done nothing to change the tections to shield consumers from fall- opportunity to acknowledge the hard odds. ing victim to deceptive and fraudulent work put forth by the bill’s sponsor, Senator COLLIN’s legislation, S. 335, practices found in some sweepstakes Senator COLLINS, and other cosponsors will go a long way to solve the prob- and mail promotions. of the legislation including Senators lems of these deceptive sweepstakes Thanks to the hard work of the Per- COCHRAN, LEVIN, and EDWARDS. In addi- mailings. It requires a clear disclosure manent Subcommittee on Investiga- tion I want to acknowledge the role of of the game’s rules and an indication tions, under the leadership of Senator Senator CAMPBELL in first introducing that the odds of winning are not im- SUSAN COLLINS, we have become privy legislation last year on this issue. His proved by purchasing any products to the operations of some of these efforts served as the genesis for the that are being advertised. It also will sweepstakes companies. As the hear- successful investigative and legislative restrict the mailing from depicting an ings pointed out, sweepstakes compa- efforts we have seen this year. In conclusion, Mr. President, S. 335 individual as a winner unless that per- nies are now sending out more than one billion mailings per year. In the presents a balanced and fair approach son actually has won a prize. In addi- in protecting consumers from mis- course of these mailings, some recipi- tion, the bill will implement stricter leading and fraudulent sweepstakes ents have been led to believe that their penalties for sending mail that does and related mailings, while not unduly chances of winning large amounts of not comply with the federal standards. burdening those mailers who legiti- money could be increased through the Every day people are being inundated mately use the mail as an advertising with these mailings and many of them purchase of the promoter’s products or medium. I urge all Senators to support promote a belief that you have already merchandise. Whether through the use Senate approval of S. 335. won, or that a donation or purchase of unclear and ambiguous language, Mr. President, I yield the floor and will increase your chances of winning. symbols, or documents, these mailings suggest the absence of a quorum. For many, especially for the most vul- have been a source of confusion and The PRESIDING OFFICER. The nerable in our society, it has been very have lead to some readers spending sig- clerk will call the roll. difficult to separate the truth from the nificant sums of money ordering prod- The assistant legislative clerk pro- fantasy in these mailings, and as past ucts in the mistaken belief that this ceeded to call the roll. history has shown sweepstakes mail- would increase their chances of win- Mr. LEVIN. Mr. President, I ask ings are a particular problem for the ning. unanimous consent that the order for elderly in our society. S. 335, for the first time, would estab- the quorum call be rescinded. Mr. President, we have a chance to lish specific guidelines and parameters The PRESIDING OFFICER. Without protect all Americans, particularly the for mailings containing sweepstakes, objection, it is so ordered. elderly, and I urge all my colleagues to games of skill and facsimile checks. Mr. LEVIN. I yield 6 minutes to the support this important piece of legisla- The legislation requires clear and con- Senator from Connecticut. tion. spicuous disclaimers that ‘‘no purchase Mr. LIEBERMAN. Mr. President, I Ms. COLLINS. Mr. President, I sug- is necessary’’ on the sweepstakes claim thank my friend and colleague from gest the absence of a quorum. or entry form. The legislation also im- Michigan. I am delighted to stand in support of The PRESIDING OFFICER. The proves restrictions on government defending S. 335, the Deceptive Mail clerk will call the roll. look-alike mailings. Further, the bill Prevention and Enforcement Act. I The legislative clerk proceeded to directs sweepstakes companies to commend my colleague from Michigan, call the roll. adopt procedures to prevent the mail- along with Senators COLLINS, COCHRAN, Ms. COLLINS. Mr. President, I ask ing of these materials to anyone who unanimous consent that the order for and EDWARDS, for the way they have submits a request stating their intent worked together with my former col- the quorum call be rescinded. not to receive these mailings. The PRESIDING OFFICER. Without leagues, the State attorneys general, This bill has the strong support of the AARP, and the sweepstakes indus- objection, it is so ordered. the Postal Service. In providing the Ms. COLLINS. Mr. President, how try itself to put together this impor- Postal Service with the ability to pro- much time is remaining on the major- tant consumer protection legislation. I tect consumers through civil enforce- ity side? think their combined efforts stand as a The PRESIDING OFFICER. Fifteen ment, the bill further grants the Postal model not only of cooperation but of minutes 12 seconds. Service administrative subpoena au- thoughtful legislating from which we Ms. COLLINS. Mr. President, I ask thority. It will also give U.S. district can all learn. I am very proud to join unanimous consent that the time re- courts the ability to impose nationwide them as a cosponsor of this bill. maining on the majority side be equal- temporary training orders. No marketing effort should be based As a strong proponent of federalism, ly divided between Senator THOMPSON on misleading advertising. That prin- I think it is important that this bill and Senator BURNS. ciple is at the core of the legislation The PRESIDING OFFICER. Without does not preempt the authority of the before the Senate. It reminds everyone objection, it is so ordered. state attorneys general and various that occasionally the Federal Govern- Ms. COLLINS. I thank the Chair. consumer protection agencies which ment has to step in to make sure that Mr. LEVIN. Mr. President, I ask also combat deceptive mailings. The the free market we celebrate and ben- unanimous consent that the time Postal Service and these agencies have efit so much from truly remains free. under the quorum call, which I will ask a history of cooperation in the inves- That freedom is so often based on the for, be charged against our side. tigation and prosecution of these cases. truthfulness of representations made The PRESIDING OFFICER. Without The Postal Service reports that this by those who are marketing. objection, it is so ordered. collective effort has produced signifi- The purpose of this bill is to elimi- Mr. LEVIN. Mr. President, I suggest cant results in policing a variety of nate deceptive practices in the sweep- the absence of a quorum. frauds while enabling state prosecution stakes industry. We have all seen August 2, 1999 CONGRESSIONAL RECORD — SENATE S9977 them. Who wouldn’t be tantalized by a I yield the floor and I suggest the ab- wages somewhere between about $5.50 letter proclaiming you may already be sence of a quorum. and $7 an hour, which is barely above a winner? It is hard not to open that The PRESIDING OFFICER. The minimum wage but does not enable one up. Everybody wants to be a win- clerk will call the roll. these families to escape poverty. ner. Most of us have probably fanta- The legislative assistant proceeded My third point is, Families USA just sized about how we would spend a sud- to call the roll. came out with a study that points out den windfall that dropped into our Mr. WELLSTONE. Mr. President, I there are about 675,000 low-income citi- bank accounts. ask unanimous consent that the order zens who have now been cut off medical Unfortunately, sweepstakes mailings for the quorum call be rescinded. assistance because of the welfare bill. often involve sophisticated marketing The PRESIDING OFFICER. Without There are about 675,000 low-income techniques that persuade recipients to objection, it is so ordered. citizens who no longer are receiving spend money in the hope of finding the Mr. WELLSTONE. Mr. President, I any medical assistance. pot of gold at the end of the rainbow, am going to speak for a brief period of My final point is, there was a Wall but it is a long way off in almost all time in morning business. I see the Street Journal piece today about the cases. Often the mailings are targeted Senator from Mississippi is coming dramatic, precipitous decline of par- at the elderly or the financially vulner- into the Chamber. I know we are ready ticipation in the Food Stamp Program. able who don’t realize that sweepstake to start with the Ag appropriations I argue especially the decline of par- companies are not in business pri- bill. ticipation among children which can- marily to rain riches down upon them. f not be explained alone by the state of the economy, especially with the dra- Sweepstakes companies are in business FOOD ASSISTANCE PROGRAMS to sell products that make a profit, matic increase in the use of food shelf plain and simple. That is legitimate so Mr. WELLSTONE. Mr. President, I service. long as they do it fairly and truthfully. want to very briefly speak to an issue What is going on? Do we have a situ- It is a big business. The fact is that that actually might be one we will de- ation now where the AFDC structure is sweepstakes and telemarketing firms bate as we go through this Ag appro- no longer there, and when people come take in more than $400 million a year priations bill since part of what we in, no one tells them about the fact from promotional campaigns in my deal with within the Department of Ag- they and their families are eligible for State of Connecticut alone. Nationally, riculture is food assistance programs food stamps—that is happening—or estimates are that the sweepstakes in such as the Women, Infants, and Chil- they are not told they are eligible for telemarketing firms have gross reve- dren Program and the Food Stamp Pro- medical assistance—that is hap- nues between $40 and $60 billion a year. gram. pening—all of which leads me to two This legislation makes sure that before We have heard a great deal from the final things today as we move into this consumers take a chance on the sweep- White House and from some Members debate about the Agriculture appro- stakes, they know it is just that, a of Congress about the success of the priations bill. chance—not a winning ticket, not a welfare bill. On Sunday, the White First, I lost by one vote on a welfare prize, but a chance. They will know the House released data on the number of tracking amendment, and then the odds are not improved no matter how women who were on welfare and are Senate adopted it on the Treasury- many subscriptions they buy. now working. There will be a gathering Postal bill. It is now in conference This legislation requires a clear in Chicago tomorrow, I believe, where committee. The amendment called statement that no purchase is nec- the President will be talking about upon the States, when they apply for essary to win, as well as terms and con- welfare to work and talking about the the $1 billion bonus money, to present ditions of the promotion in language success of this. to Health and Human Services the data that is easy to find, to read, and to un- As a Senator, I want to raise a couple on what kind of jobs women have, derstand. It prohibits abuses we have of questions that I think are important whether or not they and their children seen such as symbols or statements and to focus on some unpleasant facts are participating in food stamps and do that imply Federal Government en- that we should be willing to face up to. the families have medical assistance, dorsement, and it provides meaningful First of all, I point out for my col- so we can find out if families are better disclosures to let consumers know the leagues the fact that the welfare rolls off or worse off. That is now in con- actual odds of winning. are down 40 percent begs the question ference. If that gets taken out of con- Further, the bill sets up a mechanism of whether or not we have reduced pov- ference committee—amendments are for consumers and those who care for erty. The fact of the matter is, the wel- adopted in the Senate and taken out in them to stop unwanted sweepstake so- fare rolls are down 40 percent, but pov- conference committee—I am going to licitations and a recordkeeping re- erty is barely down. The goal was not bring that amendment back up on this quirement to assure that such requests to reduce the welfare rolls; the goal ev- bill, and we are going to have a vote are properly implemented. erybody talked about was to move fam- because sometimes we do not know Finally, the bill gives the Postal ilies from poverty to economic inde- what we do not want to know, and Service the additional enforcement au- pendence. That is really what the goal sometimes we only know what we want thority it needs to stop unlawful was all about. The issue has never been to know. sweepstake schemes, particularly those welfare; the issue has been poverty. That is the way it is with the White that flirt with fraud and skip from The question is, How do you reduce House about this welfare bill. We ought State to State. the poverty? I do not quite understand to be engaged in an honest policy eval- I strongly support this legislation as how the White House or any Democrat uation to find out what is happening in a tool to help consumers negotiate or any Republican can proclaim this a the country. We are talking about poor their way through the high pressure success when we have done so little to women and poor children, and we ought sales tactics sometimes employed by reduce poverty in our country, espe- to know whether they are better off or marketers using sweepstakes to sell cially poverty of children. There are whether they are worse off. There is their products. I am very grateful to about 14 million people who are poor in some disturbing evidence that many of colleagues on the Governmental Affairs the country. these families might, in fact, be worse Committee for the leadership they My second point is, when the Presi- off. It is a little early and premature have shown. dent and the White House talk about for the White House to be declaring I am delighted to join this bipartisan the number of mothers who are now this a success or for any Senator or effort to protect our citizens—again, working, that begs the question as to Representative, Democrat or Repub- particularly the aged—from these de- what kind of jobs and what kind of lican, to be declaring it a success. ceptive marketing tactics. I urge the wages. What we should be talking My final point is, since we are deal- Senate to vote for this strong con- about are family-wage or living-wage ing with an Ag appropriations bill—and sumer protection measure. I hope the jobs. The evidence we have right now is I think I will have an amendment to House will then join in adopting this that most of the mothers who are this effect—we need to call on USDA, bill and sending it to the President. working are working in jobs with or someone, to do a study and to report S9978 CONGRESSIONAL RECORD — SENATE August 2, 1999 back to the Senate and to the Congress have the courage to step up to the The PRESIDING OFFICER. Is there in a relatively brief period of time, as plate. objection? soon as possible, what is happening I think we are about ready to start Mr. KOHL. I object. with the Food Stamp Program in this on the Ag appropriations bill. I will The PRESIDING OFFICER. Objec- country. We need to know. yield the floor. I look forward to this tion is heard. There was a dramatic piece in the debate. I came down here on the floor Mr. LOTT. Since objection has been Washington Post about 2 weeks ago. I to debate this bill. This is the crisis heard, I have no alternative other than could hardly bear to read it. It was the that is staring my State of Minnesota to offer a series of amendments. This is front page of the B section. It was a in the face. I am going to leave it up to important because we do need to move picture of an 8-year-old child, a little Senator HARKIN or Senator DASCHLE to forward with the Agriculture appro- boy. The whole piece was devoted to start out debate on our side, but I am priations bill. We brought it up earlier, hungry children in the District of Co- very anxious to be in this debate and this past month. It became embroiled lumbia. very anxious to speak for farmers and in an unrelated issue, and we had to set The gist of the article was that in for agriculture. it aside. August—now—the summer schools are I yield the floor and suggest the ab- The farmers in America and the con- going to shut down and the breakfasts sence of a quorum. sumers of America and the children of will not be there, the School Lunch The PRESIDING OFFICER (Mr. America are depending on this very im- Program will not be there, and there is THOMAS). The clerk will call the roll. portant legislation going through the The legislative assistant proceeded no food at home. process. We are talking about $60.7 bil- to call the roll. In this particular family, this grand- lion, probably more than that by the Mr. LOTT. Madam President, I ask mother with four children does not time it is completed, for agriculture in unanimous consent that the order for have enough money to feed her chil- America. We need to get it completed. the quorum call be rescinded. dren. What I want to know is, whatever I know there are some issues that The PRESIDING OFFICER (Ms. COL- happened to the Food Stamp Program? cause a lot of concern: How do you deal LINS). Without objection, it is so or- That has been our safety net program. dered. with a disaster in America, when do What is going on when we have a dra- you deal with it, and how would any as- f matic rise in the use of food shelves sistance be apportioned among the and food pantries in this country? The AGRICULTURE, RURAL DEVELOP- farmers that have been impacted by Catholic Church network study pointed MENT, FOOD AND DRUG ADMIN- disasters in a number of ways. And this out just last month. ISTRATION, AND RELATED also, of course, we have this very im- What is going on when 675,000 low-in- AGENCIES APPROPRIATIONS portant dairy issue. I have advised Sen- come people are removed from medical ACT, 2000—Resumed ator COCHRAN, Senator JEFFORDS, Sen- assistance as a result of the welfare The PRESIDING OFFICER. Under ator KOHL, and Senator DASCHLE to bill? What is going on when the vast the previous order, the Senate will now make sure everybody understands what majority of these women are working resume consideration of S. 1233, which I am doing here. I am doing it because at jobs that still do not get them and the clerk will report. I do think it is so important that we their families out of poverty? What is The assistant legislative clerk read move forward on this bill. going on when we are unwilling to do as follows: AMENDMENT NO. 1499 an honest policy evaluation of this leg- A bill (S. 1233) making appropriations for (Purpose: To provide emergency and income islation, because very soon in many Agriculture, Rural Development, Food and loss assistance to agricultural producers) States there will be a drop-dead date Drug Administration, and Related Agencies certain, and all families, all women, programs for the fiscal year ending Sep- Mr. LOTT. Madam President, I send and all children will be cut off from tember 30, 2000, and for other purposes. an amendment to the desk on behalf of any welfare assistance at all. Before Mr. LOTT. Madam President, I be- Senator DASCHLE and ask for its imme- that happens, we need to know what is lieve we have a unanimous consent re- diate consideration. happening with this legislation. quest now and some motions that we The PRESIDING OFFICER. The I have come to the floor of the Sen- will need to make. It might take a few clerk will report. ate today to basically challenge my minutes to get through this. The assistant legislative clerk read colleagues to make sure this stays in First, I ask unanimous consent that as follows: the conference committee and to an- Senator DASCHLE be recognized to offer The Senator from Mississippi [Mr. LOTT], nounce I will be out here on the floor his amendment relative to disaster as- for Mr. HARKIN, for himself, Mr. DASCHLE, with an amendment if it gets elimi- sistance and, following the reporting Mr. DORGAN, Mr. KERREY, Mr. JOHNSON, Mr. CONRAD, Mr. BAUCUS, Mr. DURBIN, Mr. by the clerk, the amendment be laid nated from the conference committee, WELLSTONE, Mrs. LINCOLN, and Mr. SAR- and to announce we ought to also have aside and Senator COCHRAN be recog- BANES, proposes an amendment numbered a study of the Food Stamp Program to nized to offer his disaster assistance 1499. find out why it is not reaching children amendment. I further ask unanimous Mr. LOTT. Madam President, I ask and families who need the help, and consent that debate run concurrently unanimous consent that reading of the also to directly challenge the White on both amendments, with the votes amendment be dispensed with. House and the President. It is not occurring in a stacked sequence at 2:15 The PRESIDING OFFICER. Without enough to say we have cut the rolls by p.m. on Tuesday, the first in relation objection, it is so ordered. 40 percent. The question is, Have we re- to the COCHRAN amendment to be fol- (The text of the amendment is print- duced the poverty by 40 percent? We lowed by a vote in relation to the ed in today’s RECORD under ‘‘Amend- have not. DASCHLE amendment, as amended, if ments Submitted.’’) It is not enough to say these mothers amended, with 2 minutes of debate Mr. LOTT. Madam President, I ask are now working. The question is, Are prior to each vote. I further ask unani- for the yeas and nays. they working jobs that will enable mous consent that no amendments be The PRESIDING OFFICER. Is there a them and their children to no longer be in order to either amendment prior to sufficient second? There is a sufficient poor in our country? That is the goal the votes. second. I ask unanimous consent that fol- which I do not believe has been met. The yeas and nays were ordered. We are talking about the lives of lowing those votes, Senator JEFFORDS poor women and poor children. They be recognized to offer his amendment AMENDMENT NO. 1500 TO AMENDMENT NO. 1499 deserve to be on our radar screen. They relative to dairy and immediately fol- (Purpose: To make a perfecting amendment) deserve an honest, rigorous policy eval- lowing the reporting by the clerk, Sen- Mr. LOTT. Madam President, on be- uation so that we, as decisionmakers, ator LOTT be recognized to send a clo- half of Senator COCHRAN and others, I know whether or not, by our actions, ture motion to the desk and that clo- send a second-degree amendment to the we are helping these women and chil- ture vote occur at 9:30 a.m. on Wednes- desk and ask for its consideration. dren or whether or not we are hurting day, with the mandatory quorum being The PRESIDING OFFICER. The these women and children. We ought to waived notwithstanding rule XXII. clerk will report. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9979 The assistant legislative clerk read Pending is the second-degree amend- in the Democrats’ package goes to con- as follows: ment offered by the majority leader on tinue or expand Federal programs, to The Senator from Mississippi [Mr. LOTT], behalf of Senator COCHRAN. enlarge programs. In other words, the for Mr. COCHRAN, proposes an amendment Mr. LOTT. For the information of all money is going to the Government to numbered 1500 to amendment No. 1499. Senators who may have missed a step expand and administer programs that Mr. LOTT. Madam President, I ask or two there, a cloture motion was just either have to work, in some cases, or unanimous consent that reading of the filed on the dairy amendment. The vote really do nothing to improve the farm- amendment be dispensed with. on the cloture motion will occur er’s ability to derive income from his The PRESIDING OFFICER. Without Wednesday under Rule XXII, unless labor. So that is a major distinction objection, it is so ordered. agreement can be reached to set a time that I hope Senators will consider as (The text of the amendment is print- certain for that vote. they try to decide which of these pro- ed in today’s RECORD under ‘‘Amend- I encourage Senators on all sides of posals to support. ments Submitted.’’) this issue to communicate with each As Senators know, most of the funds other and see if there is some accom- that go to protect income, or support MOTION TO RECOMMIT WITH AMENDMENT NO. 1501 modation that could be worked out so the production of agriculture commod- (Purpose: To restrict the use of certain funds that both sides can find it acceptable. ities in our country, are in the form of appropriated to the Agricultural Mar- keting Service) In the meantime, it is my hope that we assistance called AMTA payments. can continue to debate the important These payments are transition pay- Mr. LOTT. Madam President, I now disaster relief amendments. ments that were begun under the last move to recommit the bill with in- I thank my colleagues. I am de- farm bill to prepare farmers for the structions to report back forthwith lighted to yield the floor to the distin- time when predictable subsidies under with an amendment, and I send the mo- guished Senator from Mississippi, or to the old farm bill program are reduced tion to the desk. Senator DASCHLE if he has any com- and then finally eliminated. Over this The PRESIDING OFFICER. The ment at this time. 5-year period under this new farm law, clerk will report the motion and the I yield the floor. the transition payments are made to amendment. Mr. DASCHLE addressed the Chair. help support farmers as they become The assistant legislative clerk read The PRESIDING OFFICER. The accustomed to agriculture without the as follows: Democratic leader is recognized. benefit of the old subsidy payments. The Senator from Mississippi [Mr. LOTT] Mr. DASCHLE. Madam President, I Farmers are now free to make planting moves to recommit the pending bill to the will be very brief. I thank the majority decisions, for example, for themselves, Appropriations Committee with instructions leader for moving this process along to as indicated by the condition of the to report back forthwith with the following accommodate a procedure that takes market and the likelihood of crops amendment. into account a number of very impor- being productive and efficiently pro- Mr. LOTT. Madam President, I ask tant matters that we hope to resolve duced, rather than what the Govern- unanimous consent that reading of the this week. I think this procedure will ment tells them they should produce amendment be dispensed with. do it. I also note for my colleagues that under the restraints of Federal law. The PRESIDING OFFICER. Without I designate the Senator from Iowa, the Many farmers are beginning to make objection, it is so ordered. ranking member of the committee, to these decisions and shift from one pro- The amendment is as follows: be my designee in offering the amend- gram crop to another, without running On page 21, between lines 10 and 11, insert ment. the risk of losing Federal Government the following: The yield the floor. support. In order to show that the eco- None of the funds appropriated or other- Mr. COCHRAN addressed the Chair. nomic conditions and the market con- wise made available by this Act may be used The PRESIDING OFFICER. The Sen- ditions have been so severe as to cause to pay the salaries and expenses of personnel ator from Mississippi is recognized. farmers not to be able to operate prof- of the Department of Agriculture to Mr. COCHRAN. Madam President, as itably under the new transition pay- implement— I understand the parliamentary situa- ment system, that payment is doubled (1) sections 143 or 147(3) of the Agricultural tion at this time, pending before the under the Cochran amendment. And so Market Transition Act (7 U.S.C. 7253, 7256(3)); Senate is a second-degree amendment (2) the final decision for the consolidation instead of receiving $5,000 as a transi- and reform of Federal milk marketing or- to an amendment offered on behalf of tion payment, a person who is entitled ders, as published in the Federal Register on the Democratic leader to provide dis- to that benefit under existing law this April 2, 1999 (64 Fed. Reg. 16025); or aster assistance and economic assist- year will get twice that amount as an (3) section 738 of the Agriculture, Rural De- ance to our Nation’s farmers. economic assistance payment from the velopment, Food and Drug Administration, The amendment, which is the amend- Federal Government. A total of $5.54 and Related Agencies Appropriations Act, ment in the second degree offered by billion will be paid to agriculture pro- 1999 (Public Law 105–277; 112 Stat. 2681–30). the majority leader on my behalf, pro- ducers for market transition payments CLOTURE MOTION vides a wide range of benefits to indi- under the Cochran amendment. This is Mr. LOTT. Madam President, I send a vidual farmers and ranchers who, under a 100 percent increase in a producer’s cloture motion to the desk. the terms of this legislation, are eligi- 1999 payment under the existing farm The PRESIDING OFFICER. The ble for disaster assistance because of bill. clerk will report the cloture motion. economic losses and disasters that Other benefits that are available to The assistant legislative clerk read have occurred by reason of vagaries in agriculture producers under this as follows: the weather and other conditions that amendment would include $500 million CLOTURE MOTION will cause these farmers to undergo un- in direct payments to soybean and oil- We the undersigned Senators, in accord- usual hardship. seed producers; $350 million in assist- ance with the provisions of rule XXII of the We think this amendment is better ance to livestock and dairy producers, Standing Rules of the Senate, do hereby and a more sensitive approach to the to be administered by the Secretary of move to bring to a close debate on the pend- real needs of those involved in produc- Agriculture. The amendment would ing motion regarding the dairy compact tion agriculture than the proposal also suspend the budget deficit reduc- amendment: coming from the Democratic leader. tion assessment on sugar producers for Trent Lott, Jim Jeffords, Susan M. Col- Here is why. Most of the funds that are lins, John H. Chafee, Fred Thompson, the remainder of the farm bill, as long Richard Shelby, Olympia J. Snowe, appropriated in this amendment for as no Federal budget deficit exists. Christopher Bond, Jesse Helms, Paul economic and disaster assistance go di- There will be a direct payment pro- Coverdell, John Ashcroft, Strom Thur- rectly to the agriculture producer who vided in this amendment to producers mond, John Breaux, Jay Rockefeller, has been victimized by floods or of quota and non-quota peanuts, equal Arlen Specter, and Patrick Leahy. drought or economic catastrophes af- to 5 percent of the current loan rate. Mr. LOTT. Madam President, I now fecting his ability to earn a profit this The Cotton Step Two Export Program withdraw the motion to recommit. year. is reinstated in this amendment. There The PRESIDING OFFICER. The mo- On the other hand, much of the as- is an increase in the current loan defi- tion is withdrawn. sistance that is appropriated or funded ciency payment limit from $75,000 to S9980 CONGRESSIONAL RECORD — SENATE August 2, 1999 $150,000. There is, additionally, a provi- Mr. HARKIN. I thank the Senator. because of the lack of exports that our sion in this bill that expresses the The PRESIDING OFFICER. The Sen- farmers are in such bad shape. Here is sense of the Congress, encouraging the ator from Iowa is recognized. the chart that puts the lie to that. President to be more aggressive in Mr. HARKIN. Madam President, For wheat, rice, corn, and soybeans— strengthening trade negotiating au- today all across America most people the major commodities we export—the thority for American agriculture and are doing pretty well. Unemployment exports are fully up this year over expressing the Congress’ objectives for is at its lowest rate in years. The stock what they were in the previous couple future agriculture trade negotiations. market keeps going up. Our gross na- of years. We are exporting more. If we The amendment also requests that the tional product is going up at a great are exporting more, what is the prob- President evaluate and make rec- rate. As we now know, we have a sur- lem? The problem is, there is no price ommendations on the effectiveness of plus for the first time in almost 30 and farmers aren’t getting anything for our existing export and food aid pro- years in the Federal budget. We just their commodities. grams. had a lengthy debate last week on what Here is what has happened to soy- If you add up all of the direct bene- we are going to do with that surplus. beans just in my State of Iowa since fits that are payable, they have been Our friends on the other side want to the fall of 1997: Basically about a 45- scored by the Congressional Budget Of- take most of it and give it, through a percent decrease in the value of that fice as amounting to a total of $6.67 bil- tax break, to people mostly in the crop. The same is true with corn. There lion for fiscal year 2000. The added cost upper-income brackets. have been precipitous drops just in the over the next 3 years, from 2000 to 2004, If you just looked at that, you would last year and a half. It is not a lack of would add another $309 million to the think we shouldn’t be worried too total exports. It is a lack of the money cost of the bill, for a total of $6.979 bil- much about what is happening in and the price that farmers are getting. lion in total cost from fiscal year 2000 America; things look pretty good. While we need to get an emergency to 2004, as scored by the Congressional Out of the glare of Wall Street, far package of money out to farmers, we Budget Office. from the floor of the New York Stock need to do it now. We also have to be Madam President, Senators will re- Exchange, sort of silently and quietly, about changing the farm policy. We member that when we first brought American farmers and ranchers are los- cannot go on another year under the this bill from the committee to the ing their businesses. They are at the Freedom to Farm bill and be back here floor of the Senate, there was a great end of their rope. Our small towns and again next year looking at another deal of concern about whether or not communities that dot our countryside package of several billion dollars. The there should be a disaster program in- are facing a bleak winter, with the Freedom to Farm bill has failed miser- cluded in a title of the bill. We had prospect that things will get even ably. It has failed our Nation. It has asked the administration to submit a worse after the harvest is in and the failed our farmers. It has failed our budget request for any funds that were snow falls. rural communities. expected to be needed. We have had no The situation facing American agri- I have an article that was in the Kan- response whatsoever from the adminis- culture today—according to bankers, sas paper back in 1995 when we passed tration to that request. We attached farm economists, and agricultural the Freedom to Farm bill by my friend that as an amendment in the Com- economists from many of our univer- from Kansas, Senator ROBERTS. He mittee on Appropriations. We discussed sities—is the worst it has been since said: it on the floor of the Senate when this the Great Depression. We have to re- Finally, Freedom to Farm enhances the bill was before the Senate earlier, and spond to that. We have to respond in a farmer’s total economic situation. In fact, I am very distressed that we have yet way that is meaningful. That is what the bill results in the highest net farm in- to hear any request made by the ad- our first-degree amendment does. come over the next seven years of any pro- ministration for this assistance. So in I listened to my friend from Mis- posal before Congress. spite of the absence of cooperation in sissippi describe this amendment. I I hate to say it to my friend from trying to identify and work together guess my response basically would be, Kansas, but net farm income in key on a program that would be sensitive ‘‘Nice try.’’ Would it help farmers? farming areas is down dramatically. to the problems in production agri- Would the Republican amendment help For the principal field crops, net farm culture, we are moving to suggest to farmers? Why, sure. Any little bit income is going to be down about 29 the Senate that this is a program that would help. Does it get to the under- percent this year from the average of ought to be adopted. lying problem? Does it really help get the last 5 years. That is why we are I have additional comments to make. our farmers through this winter and facing one of the greatest depressions I will be glad to respond to questions into next year? The answer is no. It is in agriculture since the 1930s. That is that may arise from Senators on the hopelessly too short. why halfhearted measures are not content of this legislation to try to an- While I appreciate the effort by my going to work. That is why the bill we swer any questions that others may friends on the Republican side to come have come up with really does address have. But I know we will soon have a up with a last-minute amendment to the magnitude of the problem. It is vote that is scheduled to occur on an- perhaps put out a smokescreen on what deep, and it is a very large problem and other bill that was debated in the Sen- is really happening in agriculture and one that has to be addressed effi- ate earlier today. In an effort to ac- what we need to do to respond to the ciently. commodate friends who have asked for crisis, it is a nice effort, but it really The amendment that Senator time to talk on their amendment, I doesn’t do it. Our hard-working, dedi- DASCHLE and I, along with Senator will yield the floor at this time so cated, progressive farmers and ranch- DORGAN, Senator KERREY, Senator other Senators may speak. ers across this country don’t just need JOHNSON, Senator CONRAD, Senator Mr. HARKIN. Madam President, I a little bit of a handout that the Re- BAUCUS, Senator DURBIN, Senator wonder if the Senator will yield. I publican amendment will give them. WELLSTONE, Senator LINCOLN, and Sen- would like to ask the Senator a ques- What they need is a package of help ator SARBANES have just sent to the tion. that will not only get them through desk provides for a total of $10.79 bil- Mr. COCHRAN. I would be happy to this summer and this fall but through lion to farmers and ranchers for this respond to the Senator. next winter so they can get back on next year. Mr. HARKIN. I didn’t get a copy of their feet again next year. There is a great gulf of difference be- the amendment. What is the bottom You will hear a lot of talk about how tween what the Republicans have set line? What is the total package? one of the problems is our lack of ex- up and what we are proposing. First, Mr. COCHRAN. The Congressional ports. I just want to point out that the Republicans are proposing that we Budget Office has scored the items I even though the United States has a send all of this money out in a direct discussed at $6.67 billion for fiscal year trade deficit, one sector that earns us payment to farmers; an AMTA pay- 2000, and the total cost during fiscal money and that has a positive trade ment, it is called, a market transition years 2000 to 2004 is scored at $6.979 bil- balance is agriculture. But there are payment. Our payments go out in sup- lion. those who would have you believe it is plemental loan deficiency payments, August 2, 1999 CONGRESSIONAL RECORD — SENATE S9981 which means they are based upon a Mr. HARKIN. That is the amount of collapsed. If we don’t take action soon, farmer’s production—what that farmer money provided for those items. we won’t have many family farmers actually produced this year, not what Mr. COCHRAN. Emergency trade pro- left across the bread basket of the they did 10 or 20 years ago. In that way, visions, humanitarian assistance, coop- country. it is more fair and it is more direct to erator program, for a total of $988 mil- Mr. HARKIN. The Senator is abso- the actual farmers this year. We in- lion; is that what the Senator is saying lutely correct. The Freedom to Farm clude $2.6 billion for disaster assist- the CBO has verified the cost to be? bill was premised that we would put ance. Mr. HARKIN. That is the amount of farmers on the free market. As the We include a number of other meas- money we specifically provide in the Senator from Kansas said, they would ures such as $212 million for emergency amendment. have high net income for the next sev- conservation. We have had a lot of Mr. DORGAN. Will the Senator eral years. However, Freedom to Farm floods and a lot of damages in a lot of yield? ripped the safety net out from agri- States. We need to repair the damage Mr. HARKIN. I am delighted to yield, culture. to farm and ranch land and enhance and I want to thank the Senator from As I pointed out, our exports are up. our conservation. For emergency trade North Dakota with whom I serve on We are exporting more of our key com- provision, we have $978 million for pur- the agriculture appropriations sub- modities, but there is no price. The chases of commodities for humani- committee. safety net has been taken out from un- tarian assistance. We have people I appreciate the very strong help in derneath agriculture. Farmers all starving all over the world. We have a putting this package together. It has across America recognize that Freedom Public Law 480 food assistance program been a very difficult year for farmers to Farm has been a total and absolute and related programs. Our bill provides in North Dakota as well as Iowa and I disaster when it comes to protecting about $1 billion to take the surplus can say without fear of contradiction farm income, and it has to be changed. food we have and send it around the the Senator from North Dakota has That is why the first thing we need to world to starving people. The Repub- been one of the instrumental people in do is get the emergency package, but lican proposal does not include that. actually putting this package together. then we have to address the end-of-the- We include money for emergency eco- I appreciate the support. line problem of Freedom to Farm. nomic development for our rural Mr. DORGAN. I want to address the Mr. WELLSTONE. Madam President, towns, small towns, and communities question to the Senator from Iowa. The I have a question. that are hit hard. Our total package of discussion we had about income sup- Mr. HARKIN. I yield for a question. $10.79 billion addresses the magnitude port for family farmers in the nature of Mr. WELLSTONE. I actually have of the problem. It is that big. a disaster program being income sup- three quick questions. First of all, I say to the people who think $10.79 port in the form of a transition pay- dealing with the urgency of now, is it billion is a lot of money, we passed a ment or AMTA, the whole notion of a not true that the Senator from Iowa tax break bill last week for $792 billion, transition payment is to transition and other Democrat Senators have most of which goes to upper-income farmers out of a farm program into the tried to pass an emergency assistance people in this country. Very little will free market. package and we have been working on ever go to our farmers and our ranch- This chart shows what has happened this for some time? Would the Senator ers around America. to the price of wheat since 1996. This from Iowa give a little bit of a histor- This point in time is going to decide chart is similar to the corn chart and ical background? I think farmers are what happens to rural America this the price of corn which the Senator wondering how much more has to hap- winter. That is why it is so important from Iowa shared. This is what has pen to them before there is some as- to act now. That is why it is so impor- happened to the so-called ‘‘free mar- sistance. tant that we get the money out that is ket’’ for wheat. The price of wheat has Mr. HARKIN. I thank my friend from needed—not some halfhearted measure collapsed. The notion of a transition Minnesota. I also thank him for his in a way that doesn’t address the real was philosophically by those in this help in putting this package together. and devastating economic problems Chamber who said let’s transition peo- The Senator is right. We started this that farmers have all over America. ple out of a farm program. spring, in the emergency supplemental I will have more to say about my Isn’t that the base of an AMTA pay- appropriations bill, trying to add some amendment later. ment? money. We got beat on a nearly Mr. COCHRAN. Will the Senator Mr. HARKIN. As I read the debate straight party-line vote. All but one yield? and all the talk on the Freedom to Republican voted no; Democrats voted Mr. HARKIN. I yield to the Senator. Farm bill when it passed, the idea was yes. Mr. COCHRAN. My colleague asked that we would transition out of farm We then came back, as the Senator me whether the Congressional Budget programs with AMTA payments. from Minnesota knows, and tried it Office had scored the amendment that Mr. DORGAN. This is the right sub- again in the subcommittee on this bill. I offered. I ask my colleague the same ject and the right time; we are debat- We again lost on a straight party-line question: What does the Congressional ing the right issues. The Senator said vote. Budget Office say the amendment that it well. We have an economy that is Now we are on the floor. I will say we the Democratic leader has offered will growing and prospering, more people are making some progress. At least cost the American taxpayer over the are working, fewer people are unem- now our friends on the other side rec- next few years? ployed, fewer people on welfare, infla- ognize there is a problem. At least they Mr. HARKIN. I answer to my friend tion is down. So many good things are are willing to address it somewhat. The from Mississippi that all of the items going on in this country, but in rural amendment that the Senator from Mis- in our amendment are direct appropria- America family farmers are in des- sissippi sent to the desk is better than tions for next year. The only items perate trouble through no fault of their nothing, but it is not going to do that are not are the Cotton Step Two own. enough to help get our farmers through Export Program, and that is scored by If any group of Americans found this winter. It is only a little more CBO at $439 million for 3 years, and the their income had collapsed, or if the than half of what is needed. adjustment to the payment limita- salary for Members of Congress had Mr. WELLSTONE. If I might ask my tions. fallen where income for family farmers colleague from Iowa a second question Mr. COCHRAN. Does that mean that had fallen, we would have dealt with to be clear about what is at stake—we the exact dollar amount set aside for this immediately and a long time ago. will all have a chance to speak later. each of the programs such as the Wet- The same is true with corporate earn- My colleague from Iowa says that what lands Restoration Program, the EQIP ings. the Senator from Mississippi intro- program—which is an emergency con- However, we are here through no duces is an emergency assistance pack- servation program—emergency water- fault of the family farmers but because age for farmers to try to get some in- shed program, all total $212 million in they are trying to do business in a come out there to families, and my col- the bill? marketplace where prices have just league says it does about half the job. S9982 CONGRESSIONAL RECORD — SENATE August 2, 1999 Mr. HARKIN. A little bit over half. tion of funds or membership fees, be. S. 355 is designed to target these Give them the benefit of the doubt— which imply false federal government those companies that have dem- about half, though. connection or endorsement. onstrated that they will not police Mr. WELLSTONE. Where are the At the time, our main focus was on themselves. gaps? In other words, I think people as- mailings that led one to believe that Among other things, S. 335 requires sume, if we pass something that we say they were endorsed by the govern- sweepstakes mailings to display rules is going to enable them to continue to ment—for example, offers that promise clearly and state explicitly that no stay on the farm until we deal with the consumers information on federal ben- purchase is necessary to increase one’s structural problems, it is going to help efits for which they may be eligible for chance of winning. It requires the spon- them. Again, could the Senator empha- a fee, when in fact such information is sor of an offer to clearly state the odds size the difference? available at no cost directly from fed- of winning and the value of the prize, Mr. HARKIN. I will be delighted to eral agencies. and prohibits companies from making respond to the Senator, but I under- The legislation barred the use of any false statements, such as an individual stand our time is up. seal, insignia, trade or brand name, or is a winner, unless they have actually Madam President, if I might inquire other symbol designed to construe gov- won a prize. It also strengthens safe- what the parliamentary situation is ernment connection or endorsement. guards to protect those who have re- right now? Today, I am pleased to support S. 335, quested not to receive sweepstakes The PRESIDING OFFICER. The Sen- which builds on the foundation laid by mailings and other such offers, and en- ate resumes consideration of S. 335 in the 1990 law, in recognition of the prob- hances the Postal Service’s authority 15 seconds. lems that have emerged as sweepstakes to investigate, penalize, and stop de- Mr. HARKIN. I understand there is a offers have proliferated, with all of the ceptive mailings. vote at 5:30. accompanying abuses we have wit- S. 335 does not prohibit legitimate of- The PRESIDING OFFICER. That is nessed. fers. Rather, it puts fair, common sense correct. How many times have each of us re- restrictions in place in order to protect Mr. HARKIN. Further parliamentary ceived an offer in the mail promising consumers, particularly those most at inquiry. After that vote is over, will we enormous sweepstakes payoffs or other risk, such as seniors, or the disabled. return then to the Agriculture appro- prizes? These promises are a clever way This week, the Senate Commerce priations bill? to market magazine subscriptions and Committee, of which I am a member, is The PRESIDING OFFICER. The Sen- other products. The old adage—‘‘if it’s scheduled to hold a hearing on fraud ator is correct. too good to be true, it probably is’’— against seniors. It is a serious problem, Mr. HARKIN. Madam President, I comes to mind. Regrettably, for many, and one that is not going to go away on ask unanimous consent that at the end such offers seem too good to pass up its own. We must address the problem, of that vote, when we return to this particularly when the are accompanied and the deceptive mailings which S. 335 bill, the Senator from Iowa be recog- by dire warnings such as ‘‘urgent advi- seeks to curb are certainly a compo- nized to complete his statement. It will sory,’’ ‘‘don’t risk losing your multi- nent of this problem. not take very long to complete my million dollar prize,’’ or ‘‘don’t risk I am pleased that S. 335 has gen- statement. forfeiture now!’’ Many consumers are erated so much debate on this issue, The PRESIDING OFFICER. Is there misled by this type of advertising, because I believe that in addition to objection? which is deliberately designed to mis- government action, the key to this The Chair hears none. It is so or- lead. challenge is increased awareness and dered. Many offers are designed to entice personal responsibility—on the part of f the consumer into believing that he or companies and individual consumers she has already won a valuable prize, and families. DECEPTIVE MAIL PREVENTION for example, or is on the verge of win- Companies should police themselves. AND ENFORCEMENT ACT—Contin- ning, when in fact, the odds against Likewise, there are steps that con- ued winning may be astronomical. sumers can take to protect themselves. The PRESIDING OFFICER. Under The sad truth is that companies use For example, always read the rules for the previous order, the Senate will now deceptive advertising because it any offer very carefully, especially if it proceed to vote on S. 335, after recog- works—it sells more product. And the sounds too good to be true. And if it nizing Senator EDWARDS for 10 min- tragic problem facing us today is this: sounds too good to be true, it probably utes, Senator LEVIN for 5 minutes, and all too often, the consumer who is is. If you receive a letter in the mail Senator COLLINS for 5 minutes. being victimized is a senior on a fixed informing you that you have won a The Senator from Maine is recog- income or is disabled. prize, and it solicits a shipping or han- nized. We have all heard the horror stories dling fee, be wary. This type of offer Ms. SNOWE. Madam President, I rise about unwitting victims on fixed in- should raise a red flag, and could be a today in support of S. 335, the Decep- comes who have purchased hundreds or fraud. Finally, make sure you know tive Mail Prevention and Enforcement thousands of dollars worth of magazine the company is a reputable one, and Act, legislation authored by my col- subscriptions—sometimes multiple don’t give out your bank account or league from Maine, Senator SUSAN subscriptions to the same magazine, credit card number. COLLINS. I applaud her leadership on thinking they would improve their I hope this legislation will be a con- this issue as chair of the Permanent chances of winning a prize. We have structive step forward in this impor- Subcommittee on Investigations. I be- heard the tragic accounts of individ- tant effort, and I hope that it sends a lieve that this legislation strikes an uals flying to another city or state to strong message that government takes important balance between consumer claim a prize, genuinely believing that its responsibility as a watchdog and protection and over-regulation of the they had been selected as the winner, regulator of anti-consumer practices sweepstakes industry. only to find that they have become a very seriously. This issue has long been a priority victim. Some have squandered life sav- Mr. CAMPBELL. Madam President, for me. In the late 1980s, while in the ings on misleading offers. When these today the Senate is taking another im- House of Representatives, I began types of incidents become common- portant step toward enacting sweep- working on initiatives to curb decep- place, I think, we have a good indica- stakes reform legislation. tive mailings, and during the 101st Con- tion that there is a problem. And we Today we continue the good fight gress, I co-authored H.R. 2331, the De- have a responsibility to correct the that was launched nearly fourteen ceptive Mailings Prevention Act of problem. months ago when the Senate first 1989, which was signed into law by What I find most troubling about this began consideration of sweepstakes re- President Bush on November 6, 1990. issue is that many unscrupulous com- form legislation. I was pleased to lead H.R. 2331 prohibited solicitations by panies intentionally target the most the fight for sweepstakes reform on private entities for the purchase of vulnerable consumers, knowing full June 5th, 1998, in the 105th Congress, products or services or the contribu- well how devastating the results can when I introduced S. 2414, the Honesty August 2, 1999 CONGRESSIONAL RECORD — SENATE S9983 in Sweepstakes Act of 1998. This was mailings involving sweepstakes, skill alike mailings. This system has worked the first legislation of its kind. contests, facsimile checks, and mail- in other areas, and I believe that it A few months later, on September ings made to look like government would work here, as well. 1st, 1998, a high-impact Senate hearing documents. The investigation and I urge my colleagues to support this focusing on the Honesty in Sweep- hearings of the Senate Governmental bill. stakes Act of 1998 attracted national Affairs Permanent Subcommittee on The PRESIDING OFFICER. The Sen- attention and widespread public sup- Investigations have shed light on ator from North Carolina. port. That hearing, followed by a series sweepstakes and other mailings that Mr. EDWARDS. Madam President, I of hearings chaired by Senator COLLINS promise extravagant prizes in order to rise today to urge my colleagues to this year, was the turning point in the entice individuals to make unnecessary vote in favor of the sweepstakes legis- battle for sweepstakes reform and purchases. lation, which is S. 335, the Deceptive helped generate the powerful momen- Far too many of these mailings are Mail Prevention and Enforcement Act. tum that has carried sweepstakes re- full of deceptive and misleading state- Let me say first, I thank my col- form forward. ments, which lead unsuspecting recipi- league, Senator LEVIN—I do not see I was prompted to fight for Honesty ents to believe that they must pur- him on the floor right now—also, my in Sweepstakes when I heard far too chase various items in order to be a colleague, Senator COLLINS. They many horrible stories about how con- winner or in order to improve their worked so hard and so long on this re- sumers, especially our seniors, were chances of winning. In too many cases, markably important piece of legisla- being taken advantage of, and all too the prizes and awards are never grant- tion. often seriously financially harmed by ed. In many instances, the customer re- Let me start by telling a story. It is sweepstakes promotions that prey ceives a trinket or coupon book of lit- a story I have told before, but I think upon people’s hopes and dreams by tle value. Those consumers who re- it goes to the very heart of what this making convincing yet false promises spond to these mailings are then legislation is about. of riches. They use massive mailing bombarded with additional mailings There is an elderly man in North lists to deliberately target our most seeking more money for the same or Carolina who lives in Raleigh, NC, I be- vulnerable consumers with false prom- similar items. lieve—right outside of Raleigh—named ises of riches and then bombard them The effect on many consumers can be Bobby Bagwell. Bobby Bagwell is an el- again and again. devastating. One of my constituents derly man who was watched over by his Since I first introduced the Honesty wrote about his 88-year-old father, who family, his daughter-in-law. Although in Sweepstakes Act I have been con- had spent thousands of dollars in hopes he lived alone, he had a difficult time tacted by many people from Colorado of receiving a large cash prize. living alone. and all over the country with stories of This legislation would set new stand- His daughter-in-law went over to his their unfortunate experiences with ards for mailings that use sweepstakes, house one day. When going through his sweepstakes promotions. They told sto- skill contests, and facsimile checks as various belongings, she discovered ries of how their loved ones, often their promotions to sell merchandise. More boxes and boxes of sweepstakes mail- elderly parents, had squandered many disclosures would be required, disclo- ings. She came to discover in addition thousands of dollars after having been sures which are clear and conspicuous, to that, in response to these sweep- lured in by cleverly presented pro- displayed in a manner that is readily stakes mailings, Mr. Bagwell had pur- motions promising instant riches. noticeable, readable and understand- chased thousands and thousands of dol- Many people from all over the country able. Sweepstakes mailings must in- lars of devices—goods that were basi- have also sent me large envelopes clude prominent notice that no pur- cally useless. They were of no value to stuffed full of examples of the mis- chase is necessary to win, and that a him at all. When she questioned her fa- leading sweepstakes promotions they purchase will not increase the chances ther-in-law about why he had bought and their loved ones have received. of winning. In addition, the mailing these goods, the response was that he I am pleased to be an early cosponsor must state the estimated odds of win- believed it would increase his chances of the bill we consider today, S. 335, the ning. of winning the sweepstakes. He had Deceptive Mail Prevention and En- While S. 335 will probably not put a spent, I think, something on the order forcement Act, which was introduced stop to all of the egregious practices of $20,000, which was basically his life’s by my colleague Senator COLLINS. This that the unscrupulous companies em- savings, on purchasing this useless, bill includes a number of provisions ploy, I am hopeful that this bill will re- worthless material. similar to those I included in the Hon- sult in fewer deceptive mailings and As I mentioned earlier, Mr. Bagwell esty in Sweepstakes Act. There are two that fewer consumers will lose their was an elderly man. For that reason, additional provisions included in S. 335 hard-earned savings and retirement he was vulnerable. But there is an even that I believe will be especially bene- funds. worse part to this story. Mr. Bagwell, ficial in the fight against misleading One important provision of this bill as it turns out, suffers from dementia. sweepstakes. The first calls for estab- would require each company that sends So he could not remember from day to lishing centralized and easy to access these mailings to have a toll-free num- day what he had bought, how much toll free phone numbers where con- ber that consumers may call to have money he had spent, or why he had sumers’ questions can be answered. The their names removed from that com- spent it. His daughter-in-law, doing ev- second provision makes it much easier pany’s mailing list. This is a first step erything in her power to do something for people to have their names removed in making it possible for individuals to about this very sad situation, con- from mailing lists. have their names removed from mail- tacted the sweepstakes companies, ask- Our nation’s seniors and other vul- ing lists. However, this particular sys- ing them to take him off the mailing nerable consumers are clearly being tem places an undue burden on the con- lists. She got no response. She then taken advantage of, and in some cases sumer to call each company that sends sent a doctor’s order to the sweep- seriously financially harmed, by inten- him a mailing. The unscrupulous com- stakes companies saying, ‘‘My father- tionally misleading sweepstakes pro- panies could circumvent the intent of in-law suffers from dementia. I ask motions. Something needs to be done. I this provision by forming a new com- you, take him off your lists for sweep- support passage of this legislation to pany that would then use the old mail- stakes mailings because he is buying bring this harmful practice to a halt. ing lists. all these goods, he doesn’t remember Mr. DODD. Mr. President, I rise To minimize this risk, I encourage that he is spending his life’s savings, today in support of S. 335, the Decep- the industry groups to establish a sys- and we need to take him off the lists so tive Mail Prevention and Enforcement tem whereby consumers would have he does not continue to engage in this Act. I am proud to be one of the co- one toll-free number to call which kind of behavior.’’ For the second time, sponsors of this important legislation. would serve as the mechanism to re- she got no response. I commend Senators COLLINS and move their names from all mailing Finally, when they contacted me and LEVIN for their efforts in addressing lists for all sweepstakes, skill contests, I became aware of the situation and I the serious problems with deceptive facsimile checks and government look- contacted the sweepstakes companies, S9984 CONGRESSIONAL RECORD — SENATE August 2, 1999 they responded appropriately and took RECORD. They specifically provide their an industry which is too often based on him off the lists. strong support for this legislation. deception, an industry which too often The sad part of this story is that in There being no objection, the letter tells people they have won a prize, dan- this country, in this day and time, it was ordered to be printed in the gles in front of them that promised was necessary for a Senator to contact RECORD, as follows: prize, and then, of course, encloses the the sweepstakes companies in order to AARP, promotional materials that create the get this accomplished. That goes to the Washington, DC, July 28, 1999. impression that buying a product will very heart of what this sweepstakes Hon. JOHN EDWARDS, help to get that prize. legislation is about. It is the reason U.S. Senate, Hart Senate Office Building, Most people are skeptical when they Senator COLLINS has done such a re- Washington, DC. get this mail. They realize there could markable job in conducting hearings DEAR SENATOR EDWARDS: AARP thanks be 100,000 people who are told they have you for including a provision to the Man- just won a huge amount of money, but and bringing this matter to the atten- agers Amendment to S. 335, the Deceptive tion of the American people so some- Mail Prevention and Enforcement Act, to in- there is a significant percentage of our thing can be done about it. It is some- stitute a notification system. As drafted, the people who are misled. The companies thing for which I believe we have broad notification system would provide con- that do this prey on some of the most bipartisan support, support on both sumers with numbers to call to have their vulnerable among us and they take sides of the aisle. Everyone knows and names removed from the mailing lists of special advantage of our seniors. This recognizes something needs to be done companies that promote products and serv- is shown, in particular, when somebody about this problem. ices through sweepstakes. The ability to responds to one of these promotions I do want to discuss one specific fea- have one’s name removed from mailing lists and then they are frequently inundated is an important consumer protection, and fa- ture. The bill has many wonderful pro- cilitating such removal through the use of a with followup targeted promotions. In visions, including provisions that re- toll free number is even better for con- fact, according to one of our witnesses, quire the sweepstakes companies, for sumers. one person could get as many as 144 example, to tell people that buying AARP has supported the use of toll free mailings from one company in 1 year these goods does not increase their helplines to respond to questions or concerns and that, by the way, is one of the larg- chances of winning. That would save a in the telemarketing area, and the require- er companies that does that, one of the man such as Bobby Bagwell from being ment that companies provide such a service so-called legitimate companies. taken advantage of. to slow the proliferation of deceptive mail- Our bill is aimed at ending the abuses One specific provision I worked on ings is a logical extension. Further, we ap- plaud the amendment’s strong civil penalty and the deceptions and the scams. It awfully hard, with Senator COLLINS provisions imposed on companies that vio- will require the companies that are and Senator LEVIN, basically provides late a consumer’s request. using these sweepstakes to display that sweepstakes companies be re- AARP appreciates your efforts on behalf of clearly and conspicuously and in a quired to provide a vehicle for people consumers to eradicate the practice of fraud- prominent place and in a prominent to be taken off these mailing lists so ulent sweepstakes mailings through this pro- manner a statement that no purchase someone such as Bobby Bagwell, who vision to the Manager’s Amendment to S. is necessary to enter the contest and, has dementia, an elderly person who is 335. We strongly support the ‘‘notification even more important, in my judgment being taken advantage of, who is vul- system’’ provisions that you authored, and hope that this section of the bill will be re- at least, a statement saying that a pur- nerable, can be protected and can be tained as it works its way through con- chase will not improve their chances of taken off the lists. In addition to that, ference. We look forward to working with winning. it helps every North Carolinian—in my you and other Members on a bi-partisan There are other requirements in this case—and every American who simply basis to ensure that this issue is resolved in bill, and they are important require- does not want to continue to receive the 106th Congress. ments, but I think those are two of the these sweepstakes mailings. Sincerely, most important requirements that we We all recognized during the course HORACE B. DEETS, do now impose on an industry to see if of the hearings there are some rep- Executive Director. we can clean up some of these abuses. utable, legitimate companies that en- The PRESIDING OFFICER. The Sen- We also give the Postal Service some gage in these sweepstakes techniques ator from Michigan is recognized. long-needed tools to put the scam art- as a marketing tool. But people need to Mr. LEVIN. Madam President, I ists out of business. The Postal Service have a way to get off these lists if they again commend Senator COLLINS for will have subpoena authority. The want to get off the lists. One of the her really strong leadership of our sub- Postal Service will no longer have to provisions in this legislation specifi- committee in so many consumer pro- take two steps before clamping down cally provides for that. tection measures. This is just the lat- on the deception; they will be able to The bottom line is this. This legisla- est of many on which Senator COLLINS do it in one step. If the representation tion goes a long way toward elimi- has been the leader. That leadership is is deceptive and violates our bill, the nating any sort of deceptive, mis- critically important to the American Postal Service will be able to end it di- leading sweepstakes mailings. It allows people. I commend her on it. rectly and not have to first go through people who do not want to receive I also want to single out Senator ED- an order which, in turn, will have to be these mailings to no longer receive WARDS. He made a major contribution violated as is the current law. them. Ultimately, what it does is it to this bill by making it possible for If someone violates the law, they empowers American families who want people who no longer want to receive should not need two steps. One step to make sure the elderly members of these sweepstakes to call a phone num- ought to be enough to stop the viola- their families—their parents, their in- ber to stop the deluge of mail which is tion and punish the perpetrator. This laws—are taken care of. It empowers received in so many homes. As in so bill is intended to close the loopholes them to make sure they are not taken many other areas, he is already mak- in our law, to end the deceptions that advantage of with these sweepstakes ing a great contribution to this Senate. permit too many of these sweepstakes mailings, and in fact, if they so choose, I especially thank him for his contribu- to take in too many people, usually too that they no longer continue to receive tion to this bipartisan bill. That part many vulnerable people, raising hun- these mailings. of this bill is a very important part. It dreds of millions of dollars from people This is a wonderful piece of legisla- is a very creative part of the bill. who usually cannot afford the dollars tion. As I mentioned earlier, it has bi- Again, it makes it possible, in a very they are scammed into sending to the partisan support. I am very proud to practical way, for people who get sick deceptive mailers of some of these have worked with Senator COLLINS and and tired of the swamping of their sweepstakes. Senator LEVIN, who have done a tre- mailboxes with these sweepstakes of- Madam President, again, I commend mendous job for the American people fers, to end that. the Senator from Maine, Ms. COLLINS, in connection with this legislation. This bill attempts to end these for her very strong leadership, and the Lastly, I ask unanimous consent that sweepstakes swindles which are other members of our committee who a letter from the American Association swamping our Nation. The sweepstakes have participated, including Senator of Retired Persons be printed in the scams are part of a $1 billion industry, COCHRAN who has been a leader in this August 2, 1999 CONGRESSIONAL RECORD — SENATE S9985 and, again, Senator EDWARDS for his The PRESIDING OFFICER. Without Smith (OR) Thomas Voinovich Snowe Thompson Warner major contribution to this bill. objection, it is so ordered. Specter Thurmond Wellstone I thank the Chair. Ms. COLLINS. Madam President, I Stevens Torricelli Wyden The PRESIDING OFFICER. The Sen- ask unanimous consent that the Sen- NOT VOTING—7 ator from Maine. ator from Minnesota, Mr. WELLSTONE, Ms. COLLINS. I thank the Chair. Biden Hatch Shelby be added as a cosponsor of the bill S. Bond McCain Madam President, I ask unanimous 335. Domenici Sessions consent that Senator DOMENICI and The PRESIDING OFFICER. Without The bill (S. 335), as amended, was Senator FEINGOLD be added as cospon- objection, it is so ordered. passed, as follows: sors to the pending legislation S. 335. Ms. COLLINS. I suggest the absence S. 335 The PRESIDING OFFICER. Without of a quorum. objection, it is so ordered. The PRESIDING OFFICER. The Be it enacted by the Senate and House of Rep- Ms. COLLINS. Madam President, let resentatives of the United States of America in clerk will call the roll. Congress assembled, me start by expressing my deep appre- The legislative clerk proceeded to SECTION 1. SHORT TITLE. ciation to the members of the sub- call the roll. committee and the full committee who This Act may be cited as the ‘‘Deceptive Ms. COLLINS. Madam President, I Mail Prevention and Enforcement Act’’. worked so closely with me on this leg- ask unanimous consent that the order SEC. 2. RESTRICTIONS ON MAILINGS USING MIS- islation. In particular, I recognize the for the quorum call be rescinded. LEADING REFERENCES TO THE enormous contributions of the Senator The PRESIDING OFFICER. Without UNITED STATES GOVERNMENT. from Michigan, Mr. LEVIN; the Senator objection, it is so ordered. Section 3001 of title 39, United States Code, from North Carolina, Mr. EDWARDS; Without objection, the substitute is amended— and the Senator from Mississippi, Mr. amendment, as amended, is agreed to. (1) in subsection (h)— (A) in the first sentence by striking ‘‘con- COCHRAN. Without their help, we would The PRESIDING OFFICER. The tains a seal, insignia, trade or brand name, not have been able to craft such an ef- question is on the engrossment and or any other term or symbol that reasonably fective bill. I am very grateful for their third reading of the bill. could be interpreted or construed as imply- assistance and support. The bill was ordered to be engrossed ing any Federal Government connection, ap- We have heard very eloquent state- for a third reading and was read the proval or endorsement’’ and inserting the ments from a number of Senators third time. following: ‘‘which reasonably could be inter- today about the need for this legisla- The PRESIDING OFFICER. The bill preted or construed as implying any Federal tion. In closing this debate, let me having been read the third time, the Government connection, approval, or en- dorsement through the use of a seal, insig- quote from a 74-year-old woman who question is, Shall the bill pass? wrote to me about how deceptive nia, reference to the Postmaster General, ci- The yeas and nays have been ordered. tation to a Federal statute, name of a Fed- sweepstakes put her deeply into debt. The clerk will call the roll. eral agency, department, commission, or In her letter, she said: The legislative clerk called the roll. program, trade or brand name, or any other My only source of income is a monthly So- Mr. NICKLES. I announce that the term or symbol; or contains any reference to cial Security check totaling $893. I estimate Senator from Utah (Mr. HATCH), the the Postmaster General or a citation to a that I have spent somewhere between $10,000 Senator from Missouri (Mr. BOND), the Federal statute that misrepresents either and $20,000 in the last 19 years. What money the identity of the mailer or the protection Senator from New Mexico (Mr. DOMEN- I did not have, I borrowed from my daughter or status afforded such matter by the Fed- who is now responsible for my total financial ICI), the Senator from Arizona (Mr. eral Government’’; and support. I am deeply in financial debt. Their MCCAIN), the Senator from Alabama (B) in paragraph (2)— mailings were worded in such a way that I (Mr. SESSIONS), and the Senator from (i) in subparagraph (A) by striking ‘‘and’’ was certain I was going to win anywhere Alabama (Mr. SHELBY) are necessarily at the end; from $1 million to $10 million. I truly wish I absent. (ii) in subparagraph (B) by striking ‘‘or’’ at could recoup the moneys that I squandered I further announce that, if present the end and inserting ‘‘and’’; and in the hope that a real payoff would come and voting, the Senator from Utah (Mr. (iii) by inserting after subparagraph (B) my way. the following: HATCH) would vote ‘‘yea.’’ ‘‘(C) does not contain a false representa- Unfortunately, it is too late for this Mr. REID. I announce that the Sen- woman, but today the Senate can act tion implying that Federal Government ben- ator from Delaware (Mr. BIDEN), is ab- efits or services will be affected by any pur- to avoid financial hardship, wasted sav- sent attending a funeral. chase or nonpurchase; or’’; ings, and a great deal of heartache for I further announce that, if present (2) in subsection (i) in the first sentence— countless other vulnerable citizens by and voting, the Senator from Delaware (A) in the first sentence by striking ‘‘con- passing this legislation. (Mr. BIDEN) would vote ‘‘aye.’’ tains a seal, insignia, trade or brand name, It is my hope that we will have a The result was announced—yeas 93, or any other term or symbol that reasonably very strong vote today and that it will nays 0, as follows: could be interpreted or construed as imply- ing any Federal Government connection, ap- prompt the House to act and we will [Rollcall Vote No. 248 Leg.] see this important legislation signed proval or endorsement’’ and inserting the YEAS—93 following: ‘‘which reasonably could be inter- into law before we adjourn this year. preted or construed as implying any Federal I yield back the remainder of my Abraham Dorgan Kohl Akaka Durbin Kyl Government connection, approval, or en- time. I ask for the yeas and nays. I Allard Edwards Landrieu dorsement through the use of a seal, insig- think they have already been ordered, Ashcroft Enzi Lautenberg nia, reference to the Postmaster General, ci- but if they have not, I request the yeas Baucus Feingold Leahy tation to a Federal statute, name of a Fed- Bayh Feinstein Levin eral agency, department, commission, or and nays. Bennett Fitzgerald Lieberman The PRESIDING OFFICER. Is there a Bingaman Frist Lincoln program, trade or brand name, or any other sufficient second? Boxer Gorton Lott term or symbol; or contains any reference to There appears to be a sufficient sec- Breaux Graham Lugar the Postmaster General or a citation to a Brownback Gramm Mack Federal statute that misrepresents either ond. Bryan Grams McConnell the identity of the mailer or the protection The yeas and nays were ordered. Bunning Grassley Mikulski or status afforded such matter by the Fed- Ms. COLLINS. I believe the vote is Burns Gregg Moynihan eral Government’’; and slated for 5:30 p.m. Seeing no other Byrd Hagel Murkowski Campbell Harkin Murray (B) in paragraph (2)— speakers requesting time, I suggest the Chafee Helms Nickles (i) in subparagraph (A) by striking ‘‘and’’ absence of a quorum. Cleland Hollings Reed at the end; The PRESIDING OFFICER. The Cochran Hutchinson Reid (ii) in subparagraph (B) by striking ‘‘or’’ at Collins Hutchison Robb the end and inserting ‘‘and’’; and clerk will call the roll. Conrad Inhofe Roberts The legislative clerk proceeded to (iii) by inserting after subparagraph (B) Coverdell Inouye Rockefeller the following: Craig Jeffords Roth call the roll. ‘‘(C) does not contain a false representa- Ms. COLLINS. I ask unanimous con- Crapo Johnson Santorum Daschle Kennedy Sarbanes tion implying that Federal Government ben- sent that the order for the quorum call DeWine Kerrey Schumer efits or services will be affected by any pur- be rescinded. Dodd Kerry Smith (NH) chase or nonpurchase; or’’; S9986 CONGRESSIONAL RECORD — SENATE August 2, 1999 (3) by redesignating subsections (j) and (k) ‘‘(VI) represents that individuals not pur- transmits the request to that attorney gen- as subsections (m) and (o), respectively; and chasing products may be disqualified from eral); and (4) by inserting after subsection (i) the fol- receiving future sweepstakes mailings; ‘‘(ii) that attorney general transmits such lowing: ‘‘(VII) requires that a sweepstakes entry be request to the mailer. ‘‘(j)(1) Matter otherwise legally acceptable accompanied by an order or payment for a ‘‘(2) Any person who mails matter to which in the mails described under paragraph (2)— product previously ordered; subsection (h), (i), (j), or (k) applies shall ‘‘(A) is nonmailable matter; ‘‘(VIII) represents that an individual is a maintain or cause to be maintained a record ‘‘(B) shall not be carried or delivered by winner of a prize unless that individual has of all requests made under paragraph (1). The mail; and won a prize; or records shall be maintained in a form to per- ‘‘(C) shall be disposed of as the Postal ‘‘(IX) contains a representation that con- mit the suppression of an applicable name at Service directs. tradicts, or is inconsistent with sweepstakes the applicable address for a 5-year period be- ‘‘(2) Matter that is nonmailable matter re- rules or any other disclosure required to be ginning on the date the written request ferred to under paragraph (1) is any matter made under this subsection, including any under paragraph (1) is submitted to the mail- that— statement qualifying, limiting, or explaining er.’’. ‘‘(A) constitutes a solicitation for the pur- the rules or disclosures in a manner incon- SEC. 4. POSTAL SERVICE ORDERS TO PROHIBIT chase of any product or service that— sistent with such rules or disclosures; DECEPTIVE MAILINGS. ‘‘(i) is provided by the Federal Govern- ‘‘(B)(i) includes entry materials for a skill Section 3005(a) of title 39, United States ment; and contest or a promotion that purports to be a Code, is amended— ‘‘(ii) may be obtained without cost from skill contest; and (1) by striking ‘‘or’’ after ‘‘(h),’’ both places the Federal Government; and ‘‘(ii)(I) does not state all terms and condi- it appears; and ‘‘(B) does not contain a clear and con- tions of the skill contest, including the rules (2) by inserting ‘‘, (j), or (k)’’ after ‘‘(i)’’ in spicuous statement giving notice of the in- and entry procedures for the skill contest; both such places. formation under subparagraph (A) (i) and ‘‘(II) does not disclose the sponsor or mail- SEC. 5. TEMPORARY RESTRAINING ORDER FOR (ii).’’. er of the skill contest and the principal place DECEPTIVE MAILINGS. SEC. 3. RESTRICTIONS ON SWEEPSTAKES AND of business or an address at which the spon- Section 3007 of title 39, United States Code, DECEPTIVE MAILINGS. sor or mailer may be contacted; or is amended— Section 3001 of title 39, United States Code, ‘‘(III) does not contain skill contest rules (1) by redesignating subsection (b) as sub- is amended by inserting after subsection (j) that state, as applicable— section (c); and (as added by section 2(4) of this Act) the fol- ‘‘(aa) the number of rounds or levels of the (2) by striking subsection (a) and inserting lowing: contest and the cost to enter each round or ‘‘(k)(1) In this subsection, the term— the following: level; ‘‘(A) ‘clearly and conspicuously displayed’ ‘‘(a)(1) In preparation for or during the ‘‘(bb) that subsequent rounds or levels will means presented in a manner that is readily pendency of proceedings under sections 3005 be more difficult to solve; noticeable, readable, and understandable to and 3006, the Postal Service, in accordance ‘‘(cc) the maximum cost to enter all rounds the group to whom the applicable matter is with section 409(d), may apply to the district or levels; disseminated; court in any district in which mail is sent or ‘‘(dd) the estimated number or percentage ‘‘(B) ‘facsimile check’ means any matter received as part of the alleged scheme, de- of entrants who may correctly solve the skill designed to resemble a check or other nego- vice, lottery, gift enterprise, sweepstakes, contest or the approximate number or per- tiable instrument that is not negotiable; skill contest, or facsimile check or in any centage of entrants correctly solving the ‘‘(C) ‘skill contest’ means a puzzle, game, district in which the defendant is found, for past 3 skill contests conducted by the spon- competition, or other contest in which— a temporary restraining order and prelimi- sor; ‘‘(i) a prize is awarded or offered; nary injunction under the procedural re- ‘‘(ee) the identity or description of the ‘‘(ii) the outcome depends predominately quirements of rule 65 of the Federal Rules of qualifications of the judges if the contest is on the skill of the contestant; and Civil Procedure. judged by other than the sponsor; ‘‘(2)(A) Upon a proper showing, the court ‘‘(iii) a purchase, payment, or donation is ‘‘(ff) the method used in judging; shall enter an order which shall— required or implied to be required to enter ‘‘(gg) the date by which the winner or win- ‘‘(i) remain in effect during pendency of the contest; and ners will be determined and the date or proc- the statutory proceedings, any judicial re- ‘‘(D) ‘sweepstakes’ means a game of chance ess by which prizes will be awarded; view of such proceedings, or any action to for which no consideration is required to ‘‘(hh) the quantity, estimated retail value, enforce orders issued under the proceedings; enter. ‘‘(2) Matter otherwise legally acceptable in and nature of each prize; and and the mails that is nonmailable matter de- ‘‘(ii) the schedule of any payments made ‘‘(ii) direct the detention by the post- scribed under paragraph (3) shall not be car- over time; or master, in any and all districts, of the de- ried or delivered by mail and may be dis- ‘‘(C) includes any facsimile check that does fendant’s incoming mail and outgoing mail, posed of as the Postal Service directs. not contain a statement on the check itself which is the subject of the proceedings under ‘‘(3) Matter that is nonmailable matter re- that such check is not a negotiable instru- sections 3005 and 3006. ferred to under paragraph (2) is any matter ment and has no cash value. ‘‘(B) A proper showing under this para- (except matter as provided under paragraph ‘‘(4) Matter that appears in a magazine, graph shall require proof of a likelihood of (4)) that— newspaper, or other periodical and contains success on the merits of the proceedings ‘‘(A)(i) includes entry materials for a materials that are a facsimile check, skill under section 3005 or 3006. sweepstakes or a promotion that purports to contest, or sweepstakes is exempt from para- ‘‘(3) Mail detained under paragraph (2) be a sweepstakes; and graph (3), if the matter— shall— ‘‘(ii)(I) does not contain a statement that ‘‘(A) is not directed to a named individual; ‘‘(A) be made available at the post office of prominently discloses in the mailing, in the or mailing or delivery for examination by the rules, and on the order or entry form, that ‘‘(B) does not include an opportunity to defendant in the presence of a postal em- no purchase is necessary to enter such make a payment or order a product or serv- ployee; and sweepstakes; ice. ‘‘(B) be delivered as addressed if such mail ‘‘(II) does not contain a statement that ‘‘(5) Any statement, notice, or disclaimer is clearly shown not to be the subject of pro- prominently discloses in the mailing, in the required under paragraph (3) shall be clearly ceedings under sections 3005 and 3006. rules, and on the order or entry form, that a and conspicuously displayed. ‘‘(4) No finding of the defendant’s intent to purchase will not improve an individual’s ‘‘(6) In the enforcement of paragraph (3), make a false representation or to conduct a chances of winning with such entry; the Postal Service shall consider all of the lottery is required to support the issuance of ‘‘(III) does not state all terms and condi- materials included in the mailing and the an order under this section. tions of the sweepstakes promotion, includ- material and language on and visible ‘‘(b) If any order is issued under subsection ing the rules and entry procedures for the through the envelope. (a) and the proceedings under section 3005 or sweepstakes; ‘‘(l)(1) Any person who uses the mails for 3006 are concluded with the issuance of an ‘‘(IV) does not disclose the sponsor or mail- any matter to which subsection (h), (i), (j), order under that section, any judicial review er of such matter and the principal place of or (k) applies shall adopt reasonable prac- of the matter shall be in the district in business or an address at which the sponsor tices and procedures to prevent the mailing which the order under subsection (a) was or mailer may be contacted; of such matter to any person who, personally issued.’’. ‘‘(V) does not contain sweepstakes rules or through a conservator, guardian, indi- SEC. 6. CIVIL PENALTIES AND COSTS. that state— vidual with power of attorney— Section 3012 of title 39, United States Code, ‘‘(aa) the estimated odds of winning each ‘‘(A) submits to the mailer of such matter is amended— prize; a written request that such matter should (1) in subsection (a) by striking ‘‘$10,000 for ‘‘(bb) the quantity, estimated retail value, not be mailed to such person; or each day that such person engages in con- and nature of each prize; and ‘‘(B)(i) submits such a written request to duct described by paragraph (1), (2), or (3) of ‘‘(cc) the schedule of any payments made the attorney general of the appropriate this subsection.’’ and inserting ‘‘$50,000 for over time; State (or any State government officer who each mailing of less than 50,000 pieces; August 2, 1999 CONGRESSIONAL RECORD — SENATE S9987 $100,000 for each mailing of 50,000 to 100,000 States District Court for the District of Co- SEC. 8. REQUIREMENTS OF PROMOTERS OF pieces; with an additional $10,000 for each ad- lumbia shall have the same jurisdiction to SKILL CONTESTS OR SWEEPSTAKES ditional 10,000 pieces above 100,000, not to ex- take any action respecting compliance with MAILINGS. ceed $2,000,000.’’; this section by such person that such court (a) IN GENERAL.—Chapter 30 of title 39, (2) in subsection (b) (1) and (2) by inserting would have if such person were personally United States Code (as amended by section 7 after ‘‘of subsection (a)’’ the following: ‘‘, (c), within the jurisdiction of such court. of this Act) is amended by adding after sec- or (d)’’; ‘‘(3) SERVICE ON BUSINESS PERSONS.—Serv- tion 3016 the following: (3) by redesignating subsections (c) and (d), ice of any such subpoena may be made by a ‘‘§ 3017. Nonmailable skill contests or sweep- as subsections (e) and (f), respectively; Postal Inspector upon a partnership, cor- stakes matter; notification to prohibit mail- (4) by inserting after subsection (b) the fol- poration, association, or other legal entity ings lowing: by— ‘‘(a) DEFINITIONS.—In this section, the ‘‘(c)(1) In any proceeding in which the ‘‘(A) delivering a duly executed copy there- term— Postal Service may issue an order under sec- of to any partner, executive officer, man- ‘‘(1) ‘promoter’ means any person who— tion 3005(a), the Postal Service may in lieu of aging agent, or general agent thereof, or to ‘‘(A) originates and mails any skill contest that order or as part of that order assess any agent thereof authorized by appoint- or sweepstakes, except for any matter de- civil penalties in an amount not to exceed ment or by law to receive service of process scribed under section 3001(k)(4); or $25,000 for each mailing of less than 50,000 on behalf of such partnership, corporation, ‘‘(B) originates and causes to be mailed pieces; $50,000 for each mailing of 50,000 to association, or entity; any skill contest or sweepstakes, except for 100,000 pieces; with an additional $5,000 for ‘‘(B) delivering a duly executed copy there- any matter described under section each additional 10,000 pieces above 100,000, of to the principal office or place of business 3001(k)(4); not to exceed $1,000,000. of the partnership, corporation, association, ‘‘(2) ‘removal request’ means a request ‘‘(2) In any proceeding in which the Postal or entity; or stating that an individual elects to have the Service assesses penalties under this sub- ‘‘(C) depositing such copy in the United name and address of such individual excluded section the Postal Service shall determine States mails, by registered or certified mail, from any list used by a promoter for mailing the civil penalty taking into account the na- return receipt requested, duly addressed to skill contests or sweepstakes; ture, circumstances, extent, and gravity of such partnership, corporation, association, ‘‘(3) ‘skill contest’ means a puzzle, game, the violation or violations of section 3005(a), or entity at its principal office or place of competition, or other contest in which— and with respect to the violator, the ability business. ‘‘(A) a prize is awarded or offered; to pay the penalty, the effect of the penalty ‘‘(4) SERVICE ON NATURAL PERSONS.—Serv- ‘‘(B) the outcome depends predominately on the ability of the violator to conduct law- ice of any subpoena may be made upon any on the skill of the contestant; and ful business, any history of prior violations natural person by— ‘‘(C) a purchase, payment, or donation is of such section, the degree of culpability and ‘‘(A) delivering a duly executed copy to the required or implied to be required to enter other such matters as justice may require. person to be served; or the contest; and ‘‘(d) Any person who violates section 3001(l) ‘‘(B) depositing such copy in the United ‘‘(4) ‘sweepstakes’ means a game of chance shall be liable to the United States for a civil States mails, by registered or certified mail, for which no consideration is required to penalty not to exceed $10,000 for each mail- return receipt requested, duly addressed to enter. ing to an individual.’’; and such person at his residence or principal of- ‘‘(b) NONMAILABLE MATTER.— (5) by amending subsection (e) (as redesig- fice or place of business. ‘‘(1) IN GENERAL.—Matter otherwise legally nated by paragraph (3) of this section) to ‘‘(5) VERIFIED RETURN.—A verified return acceptable in the mails described under para- read as follows: by the individual serving any such subpoena graph (2)— ‘‘(e)(1) From all civil penalties collected in setting forth the manner of such service ‘‘(A) is nonmailable matter; the administrative and judicial enforcement shall be proof of such service. In the case of ‘‘(B) shall not be carried or delivered by of this chapter, an amount equal to the ad- service by registered or certified mail, such mail; and ministrative and judicial costs incurred by return shall be accompanied by the return ‘‘(C) shall be disposed of as the Postal the Postal Service in such enforcement, not post office receipt of delivery of such sub- Service directs. to equal or exceed $500,000 in each year, shall poena. ‘‘(2) NONMAILABLE MATTER DESCRIBED.— be— ‘‘(c) ENFORCEMENT.— Matter that is nonmailable matter referred ‘‘(A) deposited in the Postal Service Fund ‘‘(1) IN GENERAL.—Whenever any person, to under paragraph (1) is any matter that— established under section 2003; and partnership, corporation, association, or en- ‘‘(A) is a skill contest or sweepstakes, ex- ‘‘(B) available for payment of such costs. tity fails to comply with any subpoena duly cept for any matter described under section ‘‘(2) Except for amounts deposited in the 3001(k)(4); and Postal Service Fund under paragraph (1), all served upon him, the Postmaster General may request that the Attorney General seek ‘‘(B)(i) is addressed to an individual who civil penalties collected in the administra- made an election to be excluded from lists tive and judicial enforcement of this chapter enforcement of the subpoena in the district court of the United States for any judicial under subsection (d); or shall be deposited in the General Fund of the ‘‘(ii) does not comply with subsection Treasury.’’. district in which such person resides, is found, or transacts business, and serve upon (c)(1). SEC. 7. ADDITIONAL AUTHORITY FOR THE POST- such person a petition for an order of such ‘‘(c) REQUIREMENTS OF PROMOTERS.— AL INSPECTION SERVICE. court for the enforcement of this section. ‘‘(1) NOTICE TO INDIVIDUALS.—Any promoter (a) IN GENERAL.—Chapter 30 of title 39, ‘‘(2) JURISDICTION.—Whenever any petition who mails a skill contest or sweepstakes United States Code, is amended by adding at is filed in any district court of the United shall provide with each mailing a statement the end the following: States under this section, such court shall that— ‘‘§ 3016. Administrative subpoenas have jurisdiction to hear and determine the ‘‘(A) is clearly and conspicuously dis- ‘‘(a) AUTHORIZATION OF USE OF SUBPOENAS matter so presented, and to enter such order played; BY POSTMASTER GENERAL.—In any investiga- or orders as may be required to carry into ef- ‘‘(B) includes the address or toll-free tele- tion conducted under this chapter, the Post- fect the provisions of this section. Any final phone number of the notification system es- master General may require by subpoena the order entered shall be subject to appeal tablished under paragraph (2); and production of any records (including books, under section 1291 of title 28. Any disobe- ‘‘(C) states that the notification system papers, documents, and other tangible things dience of any final order entered under this may be used to prohibit the mailing of all which constitute or contain evidence) which section by any court may be punished as skill contests or sweepstakes by that pro- the Postmaster General finds relevant or contempt. moter to such individual. material to the investigation. ‘‘(2) NOTIFICATION SYSTEM.—Any promoter ‘‘(d) DISCLOSURE.—Any documentary mate- ‘‘(b) SERVICE.— that mails or causes to be mailed a skill con- ‘‘(1) SERVICE WITHIN THE UNITED STATES.—A rial provided pursuant to any subpoena test or sweepstakes shall establish and main- subpoena issued under this section may be issued under this section shall be exempt tain a notification system that provides for served by a person designated under section from disclosure under section 552 of title 5.’’. any individual (or other duly authorized per- 3061 of title 18 at any place within the terri- (b) REGULATIONS.—Not later than 120 days son) to notify the system of the individual’s torial jurisdiction of any court of the United after the date of enactment of this section, election to have the name and address of the States. individual excluded from all lists of names the Postal Service shall promulgate regula- ‘‘(2) FOREIGN SERVICE.—Any such subpoena and addresses used by that promoter to mail tions setting out the procedures the Postal may be served upon any person who is not to any skill contest or sweepstakes. be found within the territorial jurisdiction of Service will use to implement this section. ‘‘(d) ELECTION TO BE EXCLUDED FROM any court of the United States, in such man- (c) TECHNICAL AND CONFORMING AMEND- LISTS.— ner as the Federal Rules of Civil Procedure MENT.—The table of sections for chapter 30 of ‘‘(1) IN GENERAL.—An individual (or other prescribe for service in a foreign country. To title 39, United States Code, is amended by duly authorized person) may elect to exclude the extent that the courts of the United adding at the end the following: the name and address of that individual from States may assert jurisdiction over such per- all lists of names and addresses used by a son consistent with due process, the United ‘‘3016. Administrative subpoenas.’’. promoter of skill contests or sweepstakes by S9988 CONGRESSIONAL RECORD — SENATE August 2, 1999 submitting a removal request to the notifi- (b) EFFECT ON STATE COURT PROCEEDINGS.— Parmenter, an intern in my office, be cation system established under subsection Nothing contained in this section shall be granted floor privileges for the dura- (c). construed to prohibit an authorized State of- tion of the debate on the Agriculture ‘‘(2) RESPONSE AFTER SUBMITTING REMOVAL ficial from proceeding in State court on the appropriations bill. REQUEST TO THE NOTIFICATION SYSTEM.—Not basis of an alleged violation of any general The PRESIDING OFFICER. Without later than 35 calendar days after a promoter civil or criminal statute of such State or any receives a removal request pursuant to an specific civil or criminal statute of such objection, it is so ordered. election under paragraph (1), the promoter State. Mr. HARKIN. Mr. President, I say to shall exclude the individual’s name and ad- SEC. 10. EFFECTIVE DATE. my friend from Mississippi that I don’t dress from all lists of names and addresses Except as provided in section 8, this Act intend to talk too much longer. I did used by that promoter to select recipients shall take effect 120 days after the date of want to engage in a colloquy with a for any skill contest or sweepstakes. enactment of this Act. couple of Senators who wanted to do ‘‘(3) EFFECTIVENESS OF ELECTION.—An elec- The title was amended so as to read: so. I don’t imagine it will take that tion under paragraph (1) shall remain in ef- ‘‘A bill to amend chapter 30 of title 39, long—a little bit of time, not that long. fect, unless an individual (or other duly au- United States Code, to provide for the Mr. COCHRAN. I thank the Senator thorized person) notifies the promoter in nonmailability of certain deceptive for his clarification. writing that such individual— Mr. HARKIN. We will not take that ‘‘(A) has changed the election; and matter relating to sweepstakes, skill ‘‘(B) elects to receive skill contest or contests, facsimile checks, administra- long. As the Senator knows, I have tre- sweepstakes mailings from that promoter. tive procedures, orders, and civil pen- mendous respect for my chairman of ‘‘(e) PROMOTER NONLIABILITY.—A promoter alties relating to such matter, and for the Agriculture Committee. But I shall not be subject to civil liability for the other purposes.’’. wanted to wrap up our presentation exclusion of an individual’s name or address Ms. COLLINS. Mr. President, I move with a short colloquy with my fellow from any list maintained by that promoter to reconsider the vote. Senators prior to yielding the floor. If for mailing skill contests or sweepstakes, Mr. LEVIN. I move to lay that mo- I might, Mr. President, let me try to if— conclude the remarks that I had ear- ‘‘(1) a removal request is received by the tion on the table. The motion to lay on the table was lier. promoter’s notification system; and Did the Senator have a question? ‘‘(2) the promoter has a good faith belief agreed to. Mr. COCHRAN. No. My question of that the request is from— f ‘‘(A) the individual whose name and ad- the Senator was how much longer he dress is to be excluded; or AGRICULTURE, RURAL DEVELOP- thought he would take. This is for the ‘‘(B) another duly authorized person. MENT, FOOD AND DRUG ADMIN- purpose of advising my friend from In- ‘‘(f) PROHIBITION ON COMMERCIAL USE OF ISTRATION, AND RELATED diana how long he would sit on the LISTS.— AGENCIES APPROPRIATIONS floor and listen to your colloquy, or ‘‘(1) IN GENERAL.— ACT, 2000—Continued whatever it is the Senator intends to ‘‘(A) PROHIBITION.—No person may provide The PRESIDING OFFICER (Mr. FITZ- do, or for how long the Senator intends any information (including the sale or rental to do it. It is just a question. I am not of any name or address) derived from a list GERALD). The Senator from Mississippi. described under subparagraph (B) to another Mr. COCHRAN. Mr. President, I un- suggesting the Senator does not have person for commercial use. derstand the parliamentary situation the right to talk all night, if he wishes. Mr. HARKIN. I am not going to talk ‘‘(B) LISTS.—A list referred to under sub- is that we are now back on the Agri- paragraph (A) is any list of names and ad- all night. culture appropriations bill. The pend- Mr. COCHRAN. The Senator from dresses (or other related information) com- ing amendment is the Cochran amend- piled from individuals who exercise an elec- Iowa has the floor. I am just curious tion under subsection (d). ment to the Daschle amendment. about how much time he might take, ‘‘(2) CIVIL PENALTY.—Any person who vio- The PRESIDING OFFICER. The Sen- or could we interrupt the remarks and lates paragraph (1) shall be assessed a civil ator is correct. let the Senator from Indiana proceed? penalty by the Postal Service not to exceed Mr. COCHRAN. The Senator from Mr. HARKIN. About 15 minutes—per- $2,000,000 per violation. Iowa asked unanimous consent before haps not that long. ‘‘(g) CIVIL PENALTIES.— we permitted discussion of the Collins Let me conclude my earlier remarks. ‘‘(1) IN GENERAL.—Any promoter— bill that he be recognized following the Quite frankly, I find myself in a very ‘‘(A) who recklessly mails nonmailable vote. matter in violation of subsection (b) shall be uncomfortable position. This is ex- liable to the United States in an amount of I am rising to clarify the situation, tremely uncomfortable for me. I think $10,000 per violation for each mailing to an and also to inquire how long the distin- the pending amendments are the ulti- individual of nonmailable matter; or guished Senator is planning to speak at mate statement on the failure of the ‘‘(B) who fails to comply with the require- this point. I am hopeful that there will current farm policy. Why do I say it is ments of subsection (c)(2) shall be liable to be time for the distinguished Senator uncomfortable for me? Because I don’t the United States. from Indiana, Mr. LUGAR, who is chair- like it when farmers have to rely on ‘‘(2) ENFORCEMENT.—The Postal Service man of the Committee on Agriculture, government payments because they are shall assess civil penalties under this sec- to speak for about 30 minutes. He has tion.’’. not getting enough from the market- (b) TECHNICAL AND CONFORMING AMEND- to chair a committee hearing in the place. MENTS.—The table of sections for chapter 30 morning beginning at 9 o’clock and I am uncomfortable with an amend- of title 39, United States Code, is amended by won’t be available tomorrow morning. ment that provides above $10 billion in adding after the item relating to section 3016 I am hopeful the Senator will either let support for our farmers. I find myself the following: Senator LUGAR proceed now or after a extremely uncomfortable. That is why ‘‘3017. Nonmailable skill contests or sweep- reasonable time for the Senator to I view what we are doing here as part stakes matter; notification to then be recognized for 30 minutes. of a two-step process. First, we must prohibit mailings.’’. That is the purpose of my inquiry of get the emergency money; but second, (c) EFFECTIVE DATE.—This section shall the Senator from Iowa. I did not object take effect 1 year after the date of enact- we have to change the underlying fail- ment of this Act. when the Senator sought unanimous ures of the Freedom to Farm bill or we consent to be recognized because I SEC. 9. STATE LAW NOT PREEMPTED. will be right back where we are again thought I had talked about 15 minutes (a) IN GENERAL.—Nothing in the provisions next year, asking for billions more in of this Act (including the amendments made and the Senator had talked about the emergency payments to deal with the by this Act) or in the regulations promul- same period of time, or maybe a little crisis in the farm economy. gated under such provisions shall be con- longer. That is the purpose of my in- Our farm policy now is based on cash strued to preempt any provision of State or quiry. payments. Now we are back here talk- local law that imposes more restrictive re- Mr. HARKIN. I appreciate it. ing about even more cash payments. quirements, regulations, damages, costs, or The PRESIDING OFFICER. The Sen- We are forced into this situation be- penalties. No determination by the Postal ator from Iowa. Service that any particular piece of mail or cause the underlying farm policy is class of mail is in compliance with such pro- PRIVILEGE OF THE FLOOR wrong. And that is how the Repub- visions of this Act shall be construed to pre- Mr. HARKIN. Mr. President, I ask licans’ proposal is shaped. It is a stop- empt any provision of State or local law. unanimous consent that Traci gap gesture based on AMTA payments. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9989 So naturally, the larger farmers with the loan rates, allow the Secretary of The vast majority of farmers I talked the larger base acreages are going to Agriculture to extend commodity loans to said we have to get our supply and get the most money. This policy goes and provide storage payments to farm- demand in line. The only way we will against what government programs ers, all of which I support. I said: You get them in line anytime soon is if we ought to be. Government programs are talking to the wrong person; you have some land out of production. With ought to be for those who are in need. ought to talk to the backers of Free- short-term land retirement, something This amendment stands that principle dom to Farm. Don’t try to convince to take land out for conservation pur- on its head. The Republican proposal me, I am for it. poses for 2 years, or 3 years at the will give most of the money to the big- We ought to raise the loan rates. We most, where they get some economic gest farmers under the so-called AMTA ought to provide for storage payments. benefit for that, coupled with higher payments. Our proposal offers a more We ought to extend the loans. I think loan rates and the extension of the equitable distribution by providing the that is what we will come back and try loan and storage payments, we can assistance to producers who are actu- to do in September, the second part of start to get some stability and get the ally on the farm right now and in rela- our two-step process. farm economy back on track. tion to what they are growing now— The name Freedom to Farm reminds This past weekend as well as on other not what they grew 20 or more years me of a conversation a little bit ago Iowa visits, farmers are telling me if ago. That is a big difference between when it was asked, is there anything we don’t change the underlying farm the two approaches. good about the bill. I said about the bill it will get worse next year. The Republicans’ said they wanted to only thing good in the Freedom to Mr. DORGAN. Will the Senator get rid of the old farm programs when Farm bill is the name ‘‘freedom.’’ yield? they passed Freedom to Farm, but But considering where the farm econ- Mr. HARKIN. I yield. Mr. DORGAN. I think the points their AMTA type payments are based omy is now, I am reminded of the being made here are important to un- on that very same outdated base acre- words in the Janis Joplin song. ‘‘Free- derstand. If all we do is to pass a dis- age and payment yield system that is dom is just another word for nothin’ aster relief package and do nothing to decades old. And quite frankly, with left to lose.’’ How accurate that is change the underlying farm bill, we the AMTA system, payments can go to when it comes to the farm crisis. For will not have addressed problems in a someone who is not even trying to our farmers, the word ‘‘freedom’’ in the way that gives family farmers hope grow a crop and has not incurred those Freedom to Farm bill, is just another that there is a future. expenses. And the benefits of AMTA word for ‘‘nothin’ left to lose.’’ Mr. WELLSTONE. Mr. President, Let me ask the Senator about the un- payments are too easily claimed by ab- every time I’m home, farmers are say- derlying farm bill. The underlying sentee landlords. They could be long ing to me: We appreciate some assist- farm bill, the Freedom to Farm bill, gone and living in—Palm Beach, ance so we can live to be able to farm has put us in a position where pay- Miami, or retired in southern Texas or another day, but we want to know ments were made to farmers early on someplace else. Our proposal is de- whether we or our children or grand- when farm prices were very high and signed to provide the money to real children will have any future? How are farmers didn’t need those payments. farmers who are actually farming and you going to deal with the price crisis? Now, when farm prices have collapsed trying to grow crops. What are you going to do to change the and farmers need a bigger payment, I might also add one other thing: We direction that this freedom to farm bill they are still getting the same pay- are facing some terrible disaster condi- has taken us? ment or a lower payment than they tions around the country. I know out Farmers focus on the structural were getting when prices were high. in the upper Midwest we have had issues. They want Members to write a In other words, there is a disconnec- floods and excessive moisture that new farm bill. They don’t want a bail tion with respect to need. Freedom to have prevented planting, in the Dako- out every year. They want to be able to Farm, was it not, was a transition pay- tas for example, and we have had ter- get a decent price in the marketplace. ment. It was to transition them out of rible floods and rainstorms in parts of They want a fair shake. That is all the farm program. That was the philo- Iowa. We are facing a tremendous they want. sophical underpinning of the farm bill. drought on the eastern seaboard among I ask my colleague from Iowa, also Is it the judgment of the Senator the Atlantic coastal States where we my friend from North Dakota, what from Iowa that while we do this—and it also have farmers who are in dire should we be focusing on here in the is urgent that we must do this, pass straits. U.S. Senate beyond this emergency as- some disaster relief bill—that we also In our package, we have over $2 bil- sistance package to make sure that must accompany that with a change in lion for disaster-related assistance. The farmers can get a decent price, and the underlying farm bill, sooner rather Republican package has zero dollars to that family farmers can be able to than later, because if we do not, those help farmers survive disasters, not for make a living and their children can farmers who are making decisions those on the Eastern seaboard suffering farm and our rural communities can about the future will have to decide that terrible drought or others under- flourish? there is no hope ahead? going disasters. That is another big dif- Mr. HARKIN. In responding to my Freedom to Farm means there are ference because these are truly farmers friend from Minnesota, I was meeting lower price supports even when prices in need. They need help. Our bill has with farmers this week in Iowa talking collapse. Isn’t it true that this must be that help for them; the Republican bill about our emergency package. On more the first step in a two-step process? doesn’t. than one occasion the farmers got up Mr. HARKIN. I could not agree more. Those are the two major differences I and said: We appreciate what you are I would proffer this. If all we do is pass see. I will have more to say tomorrow trying to do. We can sure use the this emergency package, either this about the Freedom to Farm bill. Free- money. But if all you are going to do is one or the scaled-down package of the dom to Farm had a lot of cheerleaders send out another check and we are Republicans, and we do nothing else, when it passed a few years ago, saying going to have the Freedom to Farm bill farmers are going to see the hand- how great it would be. Those cheers again next year, it isn’t going to work writing on the wall. If we do not ring hollow now. The proof of the pud- because we will be even deeper in the change that Freedom to Farm bill, ding is in the eating. Quite frankly, hole next year. they are going to see it and they will farmers are going broke. And they They are begging Congress to change say, I’m going to be right back where I know it is a failure. It has not pro- this policy. am again next year. Farmers are going tected farm. I tell my friend from Minnesota what to say, I’m getting out. They will be We must change the underlying farm I hear most often from them is they leaving in droves. It will drive farmers policy. We need to get loan rates up. have to have a better price, they have out. We had a bipartisan group of State rep- to be able to market their grain more In the State of Iowa, from April of resentatives and Senators from Iowa efficiently, and they need some limited 1998 to April of 1999, land prices in Cen- here last week, Republicans and Demo- kinds of conservation land idling pro- tral Iowa have gone down 11 percent al- crats. They had a proposal for us: Raise gram shorter than 10 years. ready. The Governor of Iowa was at a S9990 CONGRESSIONAL RECORD — SENATE August 2, 1999 meeting I held in Iowa this weekend. Again, when I inquired of the Senator ing to speak, and I will soon be done He said, when the legislature left 3 from Iowa, I was thinking of the repeal after just a final question—I apologize months ago, when they went out of ses- of the three-entity rule. If there is an- you have to wait. sion, they estimated the growth in rev- other device that goes above the I especially say that to Senator enues at 1.8 percent. It is now down to $300,000, that simply compounds the ag- GRASSLEY since he was gracious 1 percent. That is going to affect our gravation with respect to who is going enough, when I was in Iowa, to tell me schools and everything else in the to get this money and how much. Let if I needed a place to stay, I could stay State of Iowa. So the broader impacts us find a way. at his farm. I much appreciated it. on Iowa’s economic health are already I ask the Senator from Iowa, isn’t Mr. HARKIN. He would have fed you being felt. It is already happening. our job here to craft a decent disaster pretty well, too. I have had people tell me if all we are bill, first, that gets the most help pos- Mr. WELLSTONE. I know. I am going to do is put the money out there, sible to family-size farms and, second, going to do it next time for sure. it will help them some with their to decide we must follow it quickly by Let me ask one more question, and debts, it will help them get through the saying the current farm bill doesn’t before I do, I ask unanimous consent— next few months, help them get work, that is obvious to everyone—ob- if tomorrow morning we are going to through the harvest, but if we do not vious because we have to pass disaster be in debate as well—that I could have change the Freedom to Farm bill, they bills every year now—and we should 15 minutes to speak on this. Mr. COCHRAN. Reserving the right are out, they are not going to be there change the underlying farm bill in the next year. to object, what is the request? same way that provides real help to Mr. WELLSTONE. I was asking Mr. DORGAN. May I ask one further family farmers so when prices collapse question? whether or not tomorrow morning we they have a chance to survive? are also going to be in debate on this Mr. HARKIN. I yield for a question. Mr. HARKIN. I respond to my friend Mr. DORGAN. Payments, as I under- and that I could have 15 minutes to from North Dakota: These big cash stand them, have gone too far in the speak on it. payments are an inherent part of the current farm bill, the underlying farm Mr. COCHRAN. I am constrained to Freedom to Farm bill—an inherent bill; too high in the disaster programs. object to any request to speak in the part of it. A lot of that money goes to Perhaps both programs should be ad- morning. We have not had an an- the big operators. Yet we have our fam- justed lower. My understanding of the nouncement as to what time we are ily farmers out there who are just try- program that has been offered earlier coming in or how the bill will be han- ing to get by. today, by the majority party, is with dled. The usual rules of seeking rec- That is why this Freedom to Farm the triple-entity rule, the payment ognition I think probably will apply to- bill—I wish I could say just one good limits would effectively, under that morrow. thing—the only good thing about Free- rule, be about $460,000—under their dis- Mr. WELLSTONE. OK. Let me ask dom to Farm was flexibility. It gave aster package. In my judgment, that is my colleague: My friend from North the farmer planting flexibility. But as too high. In my judgment, we should Dakota made the distinction between the Senator from North Dakota might craft a farm program and craft disaster agriculture and family farmers; his remember, when we were debating the programs that target help for family- passion is for the producers, the family size farms. If that is not what it is farm bill, the Senator from North Da- farmers. Beyond this assistance bill, we about, my feeling has always been, if kota offered an amendment to provide would like to see something that would we are not targeting help to family the planting flexibility to farmers and help people continue to survive. In farmers, we don’t need a Department of still have a farm program that pro- Minnesota, on August 21, we are going Agriculture. The only reason to have vided higher loan rates and storage to have a Rural Crisis Unity Day with all of this is to help family farmers. payments and some set-asides within a whole congressional delegation there Mr. HARKIN. The Senator is onto the confines of the farm program. If I to meet with the farmers and business something regarding payment limita- am not mistaken, it was the Senator people and all, really, of rural Min- tions. In the Republicans’ proposal, the from North Dakota who offered the nesota. Does he think it would be help- maximum payments that an individual amendment to provide the flexibility ful for people to say: We need you to do can receive—by setting up partnerships to farmers to plant what they wanted, something about the price crisis; we or corporations to maneuver around where they wanted, and yet it was de- need you to do something to make sure the limits—would be $460,000. Nearly feated on a party-line vote. we get a fair shake; we need you to half a million dollars to one individual. So there were those who sold to the make sure it is not just for Cargill, it Mr. DORGAN. If I might— farmers the Freedom to Farm bill on is for family farmers; it is not just for Mr. HARKIN. Again, I think we the basis that they would have plant- IBP or the packers—it is not for the ought to be here to help people who ing flexibility. But we did so in our packers, it is for the producers? Do you really need some help and get it out. proposal. We provided planting flexi- think this is the kind of thing we are To me, that is going way beyond the bility in our alternative—I believe it going to need to see in many of our ag- bounds there. was the Senator from North Dakota ricultural States over the next several I yield for a question. who offered it—— months to come, to put the pressure on Mr. DORGAN. If I might again just Mr. DORGAN. Senator CONRAD. the House and Senate to pass a bill for inquire, I had computed it under the Mr. HARKIN. Senator CONRAD, the family farmers as opposed to these big three-entity rule, what they could other Senator from North Dakota, of- conglomerates? achieve. If I have missed part of that fered it. That was to provide that Mr. HARKIN. I say to my friend from and they can achieve $460,000, it simply planting flexibility. We were all for Minnesota, I hope each of us in our own makes the point; $300,000 is too much. that. There was no one here who was capacity would understand what is Mr. President, $460,000 is way out of not for that. I think farmers by and happening out there right now. We are bounds. We ought to be trying to get a large got very confused by that. They not blind. We are not deaf. We are not reasonable amount of support during were told by our friends on the other without the capability of going out in this price collapse to family-size farms. side of the aisle you had to have Free- the countryside and talking to farmers I come from ag country, but I will dom to Farm to get flexibility. That is and listening to them. We all do that. not support giving $300,000 to anybody not so. What happened with Freedom If we have eyes to see and ears to in farm country. We don’t need that. to Farm is that it took away the safety hear and a decent knowledge of what is That is not what a farm program ought net and we are in the situation we are happening on the farms, I hope we will to be about, in disaster help or in reg- in right now. I repeat, for emphasis’ not have to have all the rallies and ular help, when prices collapse. That is sake, these big cash payments are an have farmers come to big meetings to not supporting a family-size farm; that inherent part of the Freedom to Farm try to impress upon us this need. I is spending taxpayers’ money in sup- bill. daresay, however, the way things are port of farm operations far in excess of I will yield for one more question. going that will happen. family farms. That doesn’t make any Mr. WELLSTONE. I will say to my If we do not address the underlying sense to me. colleagues—and I know they are wait- aspects of the Freedom to Farm bill, August 2, 1999 CONGRESSIONAL RECORD — SENATE S9991 you are going to get more and more Democratic position: Emergency relief for of times for an opinion on what type of farmers out to these meetings, espe- agriculture—Continued emergency spending, if any, is appro- cially after harvest. Of course, farmers [In billions of dollars] priate at this point, on August 2, for a are busy during the harvest. You will EQIP—Prioritize livestock/nutri- harvest that, by and large, is not yet in not see too many of them probably in ent management ...... 0.052 and with conditions that must, of ne- the fall. It is going to be a long, cold Wetlands Restoration Program ...... 0.070 cessity, be unknown. The administra- winter if we do not change the under- tion has been reticent to address this lying bill. It will not be just the farm- Total ...... 0.212 situation with any figure, in large part ers, you will have the bankers come in. Emergency trade provisions ...... 1.288 because the administration and, for I have heard from bankers in, and you that matter, many people in this Sen- Humanitarian assistance, oilseeds are going to have people from small and other ...... 0.978 ate have been arguing over how the towns and communities, the school Cooperator program (foreign mar- surplus we believe will come after Sep- boards and everybody else saying: ket development) ...... 0.010 tember 30 should be spent or the sur- Look, what is happening? Our towns Step 2 (cotton) ...... 0.439 plus for future years. There have been are drying up. a number of strong contending ideas I say to my friend from Minnesota, I Total ...... 1.427 which include the rescue of Medicare hope we will not force farmers to go to Emergency economic development ... 0.150 and Social Security reform, tax reduc- meetings and plead with us to recog- tion, prescription drugs for those in Cooperative revolving loan fund .... 0.050 nize the dire straits they are in. We Emergency rural economic assist- Medicare who do not have that, and the know it. We know what it is like out ance ...... 0.100 various other things the President has there. We have all the data. We have cited. the statistics. We know what the prices Total ...... 0.150 I make this point because usually on are like. Pick up the newspaper and Emergency policy reform ...... 0.012 this floor we are into that kind of de- read what the prices are. Look at what bate about our future and about how to futures prices are. I had a chart earlier Mandatory price reporting funding 0.004 use our resources. But from time to today about the prices. Cash price of Country-of-origin labeling ...... 0.008 time, we have a debate on agriculture, soybeans is down about half, about 45 Total ...... 0.012 and everything else is suspended. It is percent in about the last 2 years. You as if the money we are talking about do not really need much more than Grand total ...... 10.793 today, the $10.8 billion, for example, that to understand what the problem that Senator HARKIN addressed, does is, I say to my friend from Minnesota. Mr. HARKIN. I thank the indulgence not pertain to any of the above—tax re- Mr. President, I ask unanimous con- of my friend from Indiana. I know my duction, Medicare, Social Security, the friend wanted to engage in a little col- sent to print in the RECORD an outline surplus, and what have you. It is loquy. I am sorry for holding him up. I of the $10.793 billion that is in the first- deemed emergency spending, outside yield the floor. degree amendment, which is pending at The PRESIDING OFFICER. The Sen- the budget, outside the budget caps, the desk, outlining the different line ator from Mississippi. outside of our general consideration. items and where that money goes so Mr. COCHRAN. Mr. President, I ask If we are to do emergency spending of people can look at it tonight. unanimous consent that the distin- that amount or any amount, there There being no objection, the mate- guished Senator from Indiana, Mr. must be some requirements to show rial was ordered to be printed in the LUGAR, be recognized for such time as the criteria for what is required. That RECORD, as follows: he may consume. is what I want to review with the Sen- The PRESIDING OFFICER. Without ate this evening. Democratic position: Emergency relief for objection, it is so ordered. The Senator I suggest the Department of Agri- agriculture from Indiana. culture, in its most recent summary of where agriculture stands, points out [In billions of dollars] Mr. LUGAR. Mr. President, I want to that with low commodity prices in Income ...... 6.045 discuss the two amendments which have been offered by my colleagues, 1999, the year we are in, net farm in- come will be $43.8 billion. They point Income Loss Payment ...... 5.600 the distinguished ranking member, Dairy ...... 0.400 Senator HARKIN of Iowa, and the distin- out that will fall below the revised es- Peanuts ...... 0.045 guished chairman of the Agriculture timate of $44.1 billion for 1998, last Tobacco farmers ...... 0.328 Subcommittee on Appropriations, Sen- year. That means the estimate for this ator COCHRAN. But I want to do so in year is $300 million, or less than a 1 Total ...... 6.373 the context in which Senators may be percent change, from the net income in Disaster ...... 2.274 thoughtful about what type of action is 1998. appropriate, given not only the prob- I make that point because, as I have Crop insurance—30% premium dis- lems of agriculture but likewise the listened to the debate, Senators appear count ...... 0.400 general problems that we have in this to be describing a loss that is substan- Backfill 1998 disaster programs ...... 0.356 country that we are trying to address. tially greater than that, but USDA in Livestock assistance programs ...... 0.200 I note, for example, that the Presi- Section 32 (domestic food pur- estimates made just last week, plug- chases, direct payments related dent of the United States, in his speech ging in the low prices and plugging in to natural disasters) ...... 0.500 to the Nation on agriculture on Satur- also sometimes low inputs—that is, for Disaster Reserve ...... 0.500 day, indicated that there are a number feed costs and various other things ag- Flooded land program ...... 0.250 of things at stake here. I quote the riculture people will need—have come Emergency short-term land diver- President: to a conclusion the net change is only sion program ...... 0.200 I am committed to working with Congress the difference between $44.1 billion and Producers erroneously denied eligi- to provide the resources to help our farmers $43.8 billion. bility for ’98 relief ...... 0.070 and ranchers by dealing with today’s crisis Beyond that, the average net income FSA loans ...... 0.100 and by fixing the farm bill for the future. FSA emergency staffing needs ...... 0.040 But we must do so in a way that maintains of the last 5 years has been $46.7 bil- Ag mediation ...... 0.002 the fiscal discipline that has created our lion, which means this year’s figure, if USDA rapid response teams ...... 0.001 prosperity that now makes it possible for us it comes out this way, is $2.9 billion to save Social Security, strengthen and mod- less than the 5-year average. The aver- Shared Appreciation Agreement ernize Medicare with a prescription drug age for the 8-year period covering 1990 regulatory relief ...... benefit and to pay off our national debt guar- through 1997 is $45.7 billion, so this Total ...... 2.619 anteeing our long-term financial prosperity. year’s result is 1.9 less than the 8-year Income/disaster total ...... 8.992 These things are good for America’s farming Emergency conservation ...... 0.212 and ranching families, too, and they’re good average, or approximately 4 percent. for all Americans. I am not making a claim it is higher; Emergency Watershed Program ..... 0.060 I quote the President because the ad- I am saying it is going to be lower. It Emergency Conservation Program 0.030 ministration has been asked a number is going to be lower by $300 million as S9992 CONGRESSIONAL RECORD — SENATE August 2, 1999 opposed to last year and at least $2 bil- occupant of the Chair attended in Illi- USDA also went into the question of lion to $3 billion less than the 5-year nois. That particular article mentioned farm assets and farm debt and farm eq- and 8-year averages. low prices and pointed out the depres- uity. If you had heard the entirety of As I have been listening to the debate sion and the fall of those prices. the debate today—or maybe for some and Senators have described this as a But if the price of corn—as has been time—on this issue, the Chair might depression, a circumstance, Senators sometimes suggested—has been quoted logically believe that land values in must take a look at the parameters of at elevators at $1.75 or $1.70 per bushel, this country are going down if they what is the actual set of facts. Let me the good news is that a farmer will re- pertain to agriculture; that the net point out historically the high water ceive, at least if he is a farmer in the worth of farmers collectively in this mark for agricultural income in the central part of Indiana, $1.95. That is country is going way down. That, in last 10 years was $54.9 billion in 1996. price guaranteed through the loan defi- fact, is not the case. That followed the low year in 1995 of ciency payment in that part of the The Agriculture Department points $37.2 billion. Low of 37, high of 54.9. Av- state. out that farm equity, which was $825 erage: 45, 46 for the 5-year/10-year situ- How does this work? Let’s say the billion in 1996, rose to $857 billion in ations. This year: 43.8, close to 44 bil- farmer brings the corn in and the mar- 1997. It is estimated to go up to $865 bil- lion. ket price is $1.70 per bushel at the time lion this year. That is an increase of That is the range. This is net income, of harvest. At the Beach Grove eleva- approximately $9 billion more, or a 1- not net loss. Agriculture had a sub- tor in Indianapolis, that farmer will re- percent increase in net worth. The stantial net income never below $37 bil- ceive what amounts to 25 cents a bush- farm real estate figures are $802 billion lion and never higher than $54.9 billion el more, bringing that $1.70 up to $1.95. for this year as opposed to $794 billion in this 10-year period of time. The same is true for soybeans at Beach last year, and $783 billion the year be- We are taking a look at a situation Grove, IN. The soybean loan rate will fore, and $746 billion the year before that shows loss, but we ought to quan- be $5.40. In some parts of the country it that. tify that loss. These are the official may be $5.26, I am advised, but it is not It does not mean every acre of land USDA projections as of last week. $4 or $4.50 or $4.60 or $3.75 or various in every county all over America is Senators will recall that 1998’s net figures that have been quoted. going up. As a matter of fact, the Fed- farm income of $44 billion included This is a tough concept to try to get eral Reserve Board statistics for my $12.2 billion of direct Federal Govern- across because even after you make the home State of Indiana indicate an esti- ment payments. About $9 billion was point again and again, people talk mate that in the first quarter of 1999, provided by the farm bill and the re- about a $3.75 market price for soy- real estate values in agriculture may maining $3 billion was made available beans. What I am saying is that every have gone down by 2 percent. As a mat- by the October 1998 emergency appro- bushel of soybeans the farmer brings ter of fact, that was true of a number priations bill. But this year, already, into the elevator, he is going to get of States. But in a fair number of before this legislation comes to the $5.26 to $5.40 because the government’s States, obviously, the estimate is that floor, Federal payments are projected loan deficiency payment will provide agricultural land is going up. The ag- to be $16.6 billion. him with a payment equal to the dif- gregate, the total, for America is the Let me point out how this can be ference between his market price and land values are higher. Furthermore, true. The safety net provided by the the local county loan rate. That is very the net worth is higher because farm current farm bill—that safety net—pro- different. debt will decrease from $172 billion to vides for an annual transition pay- This is not a question about how low $171 billion. Once again, listening to the debate ment, a so-called AMTA payment, of the prices are going to go. If they go you would say, how can that be? If we $5.1 billion. That is provided for by the lower, the loan deficiency payment is are in a depression circumstance, how farm bill, and to be paid to all farmers higher. That is why the Federal Gov- can you be arguing that real estate on according to formula at the times that ernment will be paying out at least $6.6 farms is going up, that net worth is are prescribed. But loan deficiency billion to make up the difference. It going up, that debt is coming down? payments for corn, wheat, soybean, and was the same for wheat. In many parts Because that is what is occurring. You other crops eligible for marketing of the country, the wheat harvest has can give any number of statistics about loans are estimated at $6.6 billion. This already come in. But the government prices falling, but the fact is that net is a safety net provided by the current guarantees at least $2.58 for wheat at income is going to fall by $300 million. farm bill. many elevators around the country. And that will still be within $2 to $3 It has been suggested a number of I make that point because that is the billion of a range for the last 5 or 10 times that the current farm bill, in its safety net of the current farm bill. It is years of time. emphasis upon market economics, has a pretty strong safety net. It will pro- Let me try to bring clarity to the ar- no safety net. But I am pointing out vide a very substantial amount of in- gument in still another way. $5.1 billion in AMTA payments and an- come as the harvests occur, as the The distinguished Senator from Iowa, other $6.6 billion in so-called loan defi- grain comes in, as the loan rates are Mr. HARKIN, has mentioned, in a fact ciency payments, still another $4.8 bil- established. It will amount to $6.6 bil- sheet that he released and he gave lion to be paid out in conservation and lion that has not yet been received but some of these figures again today, that crop loss disaster payments, with $2 will be received by farmers. Hopefully, there will be a 29-percent drop in agri- billion of that authorized by the 1998 that will take the debate away from a cultural income, but Senator HARKIN October emergency appropriations bill. comparison of how low the prices are correctly says this is a drop in prin- It is important to note that most of going to go to the concrete figure of cipal field crops, not all of agriculture, the farm debate has focused on low what the loan deficiency payment will but principal field crops. prices, and charts have been given to be—specifically, as I say, again, in I have noted that situation on my the Senate indicating how prices have most parts of the country, at least $1.89 own farm. The distinguished Senator tended downward over the years. But, for every bushel of corn, $2.58 for every from Iowa, Mr. GRASSLEY, is on the nevertheless, the more important fig- bushel of wheat, and $5.26 for every floor. He has a family farm and could ure would be price times yield; that is, bushel of soybeans. At many elevators cite statistics from his farm if he were the income that comes from an acre. it will be a higher figure than that, in- inclined to do so. If, in fact, the price is low but the cluding the one in Indianapolis that I On my farm, Lugar farm in Marion yield is high, the product of the two cited. Farmers receive that even if the County, IN, our net income in 1998 was may still be a reasonable return for quoted market price is much lower. 18 percent less than in 1997. That was that acre in that year. There is an even Let me mention some other statistics true principally because our major in- more important fact that I suspect the USDA has pointed out that may come sources were soybeans and corn. that many Senators have not thought give you some idea about the param- My guess is that our net income in 1999 through clearly. An article that I saw eters of our discussion. may have a similar reduction, although on the front page of USA Today talked In the same report last week of I hope not so great as the 18-percent about a farm meeting the distinguished USDA giving estimates on net income, that was suffered the earlier year. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9993 Obviously, it makes a very great deal Government payments. That may not We are on the threshold of a World of difference, when you come to the net be the intent of the Senate. Trade Organization meeting in Seattle income situation or the difficulty of a My guess is most Senators under- that comes up in October. We must farmer, whether the farmer has debt. stand that farm income is down and have fast track authority. That is, the Our situation is one in which we do not they would like to make farmers President must be able to negotiate on have debt. We are able to finance our whole, at somewhere around an aver- behalf of the administration with other operating loans, our operating ex- age level, which would appear to mean countries, knowing this body will vote penses, without loans and out of re- a payment of $2 or $3 billion. Neither of up or down on the treaty without tained capital. So that gives you a big the proposals before us is of that na- amendment, because amendments by headstart. For those farmers who have ture. all of us attempting to influence the extended themselves to buy the adja- I have pointed out in colloquies with situation to benefit our particular cent farm or have never quite paid off the press during the past week that States or crops or so forth could be the family mortgage and who must there is before the Agriculture Com- matched by amendments all over the borrow each year to put a crop in the mittee now a risk management bill world and the treaty negotiations col- field, the interest costs are very sub- that would, in fact, provide about $2 lapse. stantial. Those are reflected still in the billion a year for each of the next 3 We don’t have fast track authority. overall aggregate statistics of net farm years if passed, and that would pretty We have tried in this body several income in this country. well fill the gap, if that was the intent times to obtain that. The House of As you take a look at ag statistics, of the Senate to do that. Representatives had similar difficul- the fourth that do the best as opposed I conclude that Senators finally will ties. It will require enormous leader- to the fourth that do not do as well, take a look at this entire situation and ship by the President and by many of reach some overall judgments. Let me very frequently the same amount of us, but we cannot make a new treaty offer at least some reasons why some land is involved, same weather was in- that knocks down trade barriers, that volved. The question of debt intrudes payments might be justified. First of all, farmers or the rest of increases our exports in the way that and makes a big difference in the bot- America could not have anticipated the all Senators want, without doing the tom line figure; likewise, the sophis- Asian crisis that hit about 2 years ago. basic steps. Fast track authority is one tication of the marketing plan. Even in The last year, in 1998, probably took of them, as well as a determined will the midst of the crisis we were talking away 40 percent of the demand of Asian that agriculture will not be left off the about last week, I was able to make a countries for American agricultural wagon, that agriculture is an integral sale of 1,000 bushels of corn to an eleva- products. That probably took away 10 part of what our Nation must do at the tor in Indianapolis at a figure higher percent of our entire market last year, WTO meetings. than the loan rate, the government’s which means that demand fell over- I make this point because we talk, guaranteed minimum price. That pros- night by 10 percent, whereas supplies often glibly, about the need for ex- pect was available to each farmer in for the last 3 years have not only been ports. Of course, we have a need for ex- America, I suspect, that day. We sold ample but around the world the weath- ports. But they will not happen in the that corn for $1.97 for fall delivery. er has been mighty good and the quantities that we need to have happen That is not a high price, but that is amount of supply abundant, really without lowering tariff and nontariff corn that will not be receiving a loan throughout that period of time. So a barriers, and the Seattle meeting is deficiency payment, corn sold in a 40-percent hit in terms of the Asian ex- where that does or does not get done. If market which is still out there. In port demand hit very hard. It hit sud- we don’t have fast-track authority, it weather-driven spurts, farmers have denly. Within a 90-day period of time will not occur during this administra- been able to market corn and soybeans we realized that difficulty. tion. That is a long time. even under these dire circumstances. Let me also mention, in addition to So for all these reasons, farmers have I make that point because those who the Asian situation and the oversupply taken a direct hit, largely because of made sales forward contracts last Feb- situation, the abnormally good weath- worldwide demand and in the case of ruary and March were able to sell their er in China, in Europe, in Brazil, in Ar- many fields in the State of Illinois, or corn and their soybeans at prices that gentina, Australia, major sources of in my State of Indiana, or the State of were substantially higher. Many farm- food throughout the world, that the Iowa, as much as a third to a half of all ers do these sales; some farmers do not. American farmers have run up against our acreage literally results in yields We are attempting to deal with a situa- the problem of genetically modified or- that must be exported, or we have it tion of a total aggregate, those that ganisms in European debate, which coming up around our ears. We know did very well and those that did not do means that Europeans are rejecting that and yet, as a Nation, we have not so well. corn and soybeans that come with the moved aggressively to make the dif- Finally, it seems to me it comes to a roundup ready genetic changes. ference that has to occur. basic decision the Senate must make. As we all know in America agri- So for all these reasons, the Senate That is, should the Senate say that ag- culture, in order to get rid of the weeds might come to a conclusion that some riculture, farmers in America, ought to in the field, it is a much simpler proc- compensation is required for farmers in be made whole, at least to the extent ess. It strengthens, certainly, the soy- order to keep their cash flow going. I their income is raised to, say, the aver- bean and corn plants, if a gene is made the point earlier that, as a mat- age level of the last 5 years or the aver- changed in the corn or soybean plants ter of fact, loans will be reduced this age level of the last 10 years? Is it the that rejects the herbicides that kills year. But cash flow will be reduced, goal of the Senate to say no, that is all the weeds but leaves the corn and also. And for those farmers who have not good enough? What we ought to do the soybeans standing. We believe that the need for operating loans, who are is make certain that 1999 is one of the not only is corn and soybeans from genuinely in danger because of debt sit- best years agriculture has ever had. such situations safe, but as a matter of uations, the situation could be dire and The proposals before us today will fact, our yields have increased. The family farms could be lost. not boost the $44 billion more or less of health of the plants has increased, and In the event that we are to make net farm income to $54.9, although they we felt all over the world people might payments, the so-called AMTA pay- come very close. If the Democratic want to benefit from these break- ments, put money into the hands of amendment was adopted and, literally, throughs. Not so in Europe, and a de- farmers quickly, directly, and cer- you added $10.8 billion to the estimate bate rages as to whether there is some- tainly—we had a pretty good dem- of 43.8, you come up to 54.6, which is thing fundamentally wrong with our onstration of that last year. The Sen- just 300 million short of the all-time genetically modified seeds to the point ate, in its wisdom, at the very end of record for net farm income. In short, we are finding it very difficult to ex- the session as the large appropriation not a rescue operation but an idea, I port a single bushel of corn or beans to compromise came together, appro- suspect, that this is a good time to, if the European market. That debate is priated as part of a package about $6 not set a new record, at least come going to go on for awhile, and it has billion for American agriculture. It very close to that through additional not been helpful. came as a surprise to many, but the S9994 CONGRESSIONAL RECORD — SENATE August 2, 1999 form of it came as a surprise that was Furthermore, the September debate which we move into market economics even more difficult. About $3 billion of would give us a pretty good idea of and the farm area more completely. it came in AMTA payments. Those what the yields actually are going to The thing the world dictates presently were made immediately. They were re- be for a number of our major crops. I is that market economics is the impor- ceived by farmers in the first week of suspect that, even as we speak, as peo- tant way to go. Our country testifies to November, after passage late in Octo- ple now begin to talk about a different that in almost every other debate. ber of the appropriation bill. problem in agriculture—namely, I hope we will continue to testify in I make that point because if we are drought—a whole slew of new consider- behalf of that when it comes to Amer- serious about money actually arriving ations are going to come into the pic- ican agriculture. in the hands of farmers, then we must ture. The price might go up and the I thank the Chair for this indulgence; be serious about the distribution meth- yield might go down. Once again, the likewise for other Senators. od. The AMTA method gets the money product of the two is the critical ele- I am hopeful that before action is to farmers. It does increase cash flow. ment, rather than the new per acre. taken on either of the two amend- It is seen as equitable. The ratios were Mr. President, obviously, we are in ments, there will be testimony by the long ago worked out on the basis of this debate because the occupant of the Secretary and then very thorough crop history and the signatures for the chair and, more particularly, the dis- analysis by each Senator as to what farm bill. The other half of the $6 bil- tinguished floor leader has indicated our obligations should be to American lion was for so-called disaster pay- that we need to get on with this. I ac- agriculture both to encourage and en- ments. They were ill-defined then, as cept that fact. We will have tomorrow hance it and, likewise, that our obliga- they are ill-defined now in the legisla- morning in the Agriculture Committee tion is to all the taxpayers of the coun- tion in front of us. at 9 o’clock an appearance by the Sec- The USDA struggled and, as a matter retary of Agriculture. We will ask him try and the other major objectives that of fact, finally made payments in June for his testimony and we will ask him lie before our country. of this year—not in November or Octo- for the administration’s point of view, I thank the Chair. ber of last year—and it did so after ex- which I think is relevant to what we The PRESIDING OFFICER. The Sen- ploring not only disasters of 1998 in are discussing here. ator from Mississippi. Mr. COCHRAN. some States, but ’97, ’96, ’95 and ’94— I know it is relevant on the basis of Mr. President, I thank the Senator multiple years, all mopped up with last year’s experience because we from Indiana. He has definitely ele- some type of distribution and equity passed an agriculture appropriation vated the level of discussion on the found among all sorts of contending bill, and it had considerable benefits issue before the Senate by his remarks. parties in various States and counties. for farmers. But it was vetoed by the He has given this debate unusual in- Mr. President, money is not going to President. And, as a result, the benefits sight based on his experience and his get to farmers very fast in distribution did not accrue very rapidly, and we got knowledge of the subject and his per- methods that suggest that type of pro- into what I would say was a bidding sonal experience as one who is engaged cedure, however humane the motiva- war again. That is not advisable if it in production agriculture in the State tion may be. As a matter of fact, pay- can be avoided in some normal frame- of Indiana. ments aren’t going to go to any farmer work. So I am hopeful that we will I think the Senate has benefited from very soon from this legislation because have a hearing, and at least that it will his remarks. I, for one, want to con- the House of Representatives is not provide some benefit for the debate we gratulate him and thank him for re- prepared to act upon this. So, there- are now having before us, and certainly maining on the floor this evening and fore, whatever we are doing with ur- for the debate we shall have again. We giving the Senate the benefit of his ob- gency now is going to be a matter for will have it again because the Appro- servations on this issue. September, or if the appropriation bills priations Committees will have to Tomorrow, as he points out, there do not pass for October or November, come back with conference reports, and will be a hearing in the Agriculture or whenever a grand compromise oc- we will have to judge the adequacy or Committee which could also be very curs. inadequacy of what we have done at helpful to our further understanding of I make that point because farmers that point. the situation. The Economic Research listening to this debate might feel Mr. President, I finally make the Service and other agencies of the De- there is some possibility as of tomor- point that the previous speakers have partment of Agriculture could make row or the next day a vote by the Sen- stated there is an emergency to be met, available to us information that would ate could lead to money coming to an immediate need for income. But, be very helpful and constructive as we them. But it will not come to them fundamentally, we must debate the en- try to decide what is best in this situa- very soon, whatever our result may be tire farm bill when we come back—not tion for our farmers around the coun- on the floor. Therefore, last week, I simply a question of adequate income try. suggested that we have 3 days of hear- for farmers, but the fundamental law of I don’t want to overdue this or guild ings before the Senate Agriculture the land. the lily too brightly. But I personally I am prepared for that debate, but I Committee, in which on the first day respect the Senator so much—and he simply say that before Senators get en- the Secretary of Agriculture would knows that —and consider him a great gaged in the debate, it is well to gauge come before the committee and, hope- friend. I again express my personal ap- at least the benefits that come from fully, respond to our questions as to preciation for his being here tonight the current farm bill. There are, to what the administration’s rec- and for his leadership in the agri- date, $16.6 billion this year, which is ommendations are, given all that the culture area specifically. President and the Secretary have said just $100 million short of an all-time Mr. LUGAR. Mr. President, I thank about the overall budget condition, record of farm payments. That is a sub- the distinguished Senator from Mis- about taxes, about Medicare, about So- stantial safety net. I make the point sissippi, who is my friend and whose cial Security, and given the adminis- that the farm bill recognizes that point leadership I appreciate so much. tration’s view of what is appropriate and, in fact, provides fairly amply farm or agricultural legislation. when that occurs. But it also provides Let me inquire of the distinguished And if you follow this with other freedom to farm, and that is very im- Senator from Mississippi if he knows of groups in our society who would re- portant to most farmers in this coun- further debate. If not, I make an in- spond to Senator’s questions about try—the ability to determine how to quiry because I have been asked to sub- this, the committee will hold a markup manage their land, how many acres of stitute for the leader in making mo- in the first week of September so that corn, or beans, or cotton, or rice, or tions. the Appropriations Committee that whatever the farmer wants to plant, or Mr. COCHRAN. Mr. President, I know must now struggle with this legislation not to plant at all. The AMTA payment of no other Senator who seeks recogni- would have a fairly clear roadmap of comes to a farmer who does not plant tion on this. I think it would be appro- what the compromises were and what at all, because this is a transition from priate to go to final wrap-up. considerations have been given. the date of supply control to a day in Mr. LUGAR. I thank the Senator. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9995 MORNING BUSINESS investors. In 1998, the U.S. government $475,337,000,000 (Four hundred seventy- Mr. LUGAR. Mr. President, I ask paid $91 billion in interest payments to five billion, three hundred thirty-seven unanimous consent that the Senate foreign investors. million) which reflects a debt increase now proceed to a period of morning It was not the American way to live of more than $5 trillion— beyond one’s means. Our parents business with Senators permitted to $5,163,318,711,931.60 (Five trillion, one taught us to work hard so that we can speak for up to 10 minutes each. hundred sixty-three billion, three hun- pay our bills, clothe our children and The PRESIDING OFFICER. Without dred eighteen million, seven hundred save for the future. objection, it is so ordered. eleven thousand, nine hundred thirty- Accumulating debt and simply let- one dollars and sixty cents) during the f ting it grow and grow is not—and past 25 years. should not be—an option for most fam- TAXPAYER REFORM ACT OF 1999 f ilies around this country. It should no Mrs. LINCOLN. Mr. President, I wish longer be the practice of this govern- MESSAGES FROM THE PRESIDENT to express my support for the Binga- ment. Messages from the President of the man amendment to recommit S. 1429 to Federal Reserve Board Chairman United States were communicated to the Senate Finance Committee which Alan Greenspan has repeatedly advised the Senate by Mr. Williams, one of this would have enabled us to clarify that Congress that the most important ac- secretaries. debt reduction is a top priority for this tion we could take to maintain a government in spending any budget strong and growing economy is to pay EXECUTIVE MESSAGES REFERRED surplus. down the national debt. I, for one, be- As in executive session the Presiding As we say in my home state of Ar- lieve he is on the right track. Officer laid before the Senate messages kansas, the best time to fix the roof is Clarifying our intent to prioritize from the President of the United when the sun is still shining. debt reduction is the right thing to do. States submitting sundry nominations Now is the time for us to take steps f which were referred to the appropriate to reduce our enormous federal debt. I committees. THE VERY BAD DEBT BOXSCORE believe we have an unprecedented op- (The nominations received today are portunity before us. We’ve been mak- Mr. HELMS. Mr. President, at the printed at the end of the Senate pro- ing tough decisions—living within our close of business yesterday, Thursday, ceedings.) means, so to speak. July 29, 1999, the Federal debt stood at f $5,640,577,276,840.14 (Five trillion, six We have a surplus that’s bigger than REPORT ON THE UNITED STATES we thought it would be and a chance to hundred forty billion, five hundred sev- enty-seven million, two hundred sev- EMERGENCY REFUGEE AND MI- save Social Security for future genera- GRATION ASSISTANCE FUND— tions, protect for Medicare and help enty-six thousand, eight hundred forty dollars and fourteen cents). MESSAGE FROM THE PRESI- older people afford prescription drugs. DENT—PM 54 So, now we have a shot at reducing One year ago, July 29, 1998, the Fed- our nation’s debt, which in turn will eral debt stood at $5,543,291,000,000 The PRESIDING OFFICER laid be- lower interest rates and put more (Five trillion, five hundred forty-three fore the Senate the following message money back in the pockets of more billion, two hundred ninety-one mil- from the President of the United Americans. lion). States, together with an accompanying Using a major portion of any surplus Five years ago, July 29, 1994, the Fed- report; which was referred to the Com- accumulated in these times of pros- eral debt stood at $4,636,362,000,000 mittees on Appropriations, the Budget, perity to improve the financial integ- (Four trillion, six hundred thirty-six and Foreign Relations. billion, three hundred sixty-two mil- rity of the federal government. Reduc- To the Congress of the United States: ing the national debt is a smart long- lion). Twenty-five years ago, July 29, 1974, In accordance with the Congressional term strategy for the U.S. economy the Federal debt stood at Budget and Impoundment Control Act and it must be our priority in this bill. $476,155,000,000 (Four hundred seventy- of 1974, I herewith report one revised Reducing our national debt will pro- six billion, one hundred fifty-five mil- deferral of budget authority, now total- vide a tax cut for millions of Ameri- lion) which reflects a debt increase of ing $173 million. cans because it will restrain interest more than $5 trillion— The deferral affects programs of the rates, saving them money on variable $5,164,422,276,840.14 (Five trillion, one Department of State. mortgages, new mortgages, auto loans, hundred sixty-four billion, four hun- WILLIAM J. CLINTON. credit card payments, etc. Each per- dred twenty-two million, two hundred THE WHITE HOUSE, August 2, 1999. centage point decrease in interest rates seventy-six thousand, eight hundred f would save American families hundreds forty dollars and fourteen cents) during of dollars every year. REPORTS OF COMMITTEES the past 25 years. By reducing the national debt we will The following reports of committees f protect future generations from in- were submitted: creasing tax burdens. Currently, more THE VERY BAD DEBT BOXSCORE By Mr. CAMPBELL, from the Committee than 25 percent of individual income Mr. HELMS. Mr. President, at the on Indian Affairs, without amendment: taxes go to paying interest on our na- close of business Friday, July 30, 1999, S. 944. A bill to amend Public Law 105–188 tional debt. Every dollar of lower debt the Federal debt stood at to provide for the mineral leasing of certain Indian lands in Oklahoma (Rept. No. 106–132). saves more than one dollar for future $5,638,655,711,931.60 (Five trillion, six generations, a savings that can be used hundred thirty-eight billion, six hun- f for tax cuts, or for covering the baby dred fifty-five million, seven hundred INTRODUCTION OF BILLS AND boomers retirement without tax in- eleven thousand, nine hundred thirty- JOINT RESOLUTIONS creases. one dollars and sixty cents). Reducing the national debt will also One year ago, July 30, 1998, the Fed- The following bills and joint resolu- make it easier for the government to eral debt stood at $5,544,483,000,000 tions were introduced, read the first deal with the future costs of Social Se- (Five trillion, five hundred forty-four and second time by unanimous con- curity and Medicare and repay the So- billion, four hundred eighty-three mil- sent, and referred as indicated: cial Security trust fund when the So- lion). By Mr. BREAUX: cial Security system faces annual Fifteen years ago, July 30, 1984, the S. 1471. A bill to amend the Internal Rev- shortfalls. Federal debt stood at $1,535,192,000,000 enue Code of 1986 to allow a deduction for In addition, reducing the national contributions to individual investment ac- (One trillion, five hundred thirty-five counts, and for other purposes; to the Com- debt will reduce our reliance on foreign billion, one hundred ninety-two mil- mittee on Finance. investors. More than $1.2 trillion of the lion). By Mr. SARBANES (for himself, Ms. national debt—roughly one third of the Twenty-five years ago, July 30, 1974, MIKULSKI, Mr. WARNER, Mr. ROBB, publicly held debt—is held by foreign the Federal debt stood at and Mr. AKAKA): S9996 CONGRESSIONAL RECORD — SENATE August 2, 1999 S. 1472. A bill to amend chapters 83 and 84 tributions Act of 1999. This bill makes of title 5, United States Code, to modify em- a technical correction to legislation in- ‘‘8 After December 31, 1999.’’; ployee contributions to the Civil Service Re- troduced last week that would return (6) in the matter relating to a judge of the tirement System and the Federal Employees Federal employee retirement contribu- Retirement System to the percentages in ef- United States Court of Appeals for the fect before the statutory temporary increase tion rates to their 1998 levels, effective Armed Forces for service as a judge of that in calendar year 1999, and for other purposes; January 1st, 2000. It is my belief that court by striking: to the Committee on Governmental Affairs. the temporarily increased retirement By Mr. ROBB (for himself, Ms. COLLINS, contributions enacted as part of the ‘‘8.4 January 1, 2000, to December 31, 2000. Mr. JEFFORDS, Mr. LUGAR, Mr. Balanced Budget Act of 1997 represent 8.5 January 1, 2001, to December 31, 2002. TORRICELLI, Ms. SNOWE, and Mr. HOL- an unfair penalty against Federal 8 After December 31, 2002.’’; LINGS): workers at a time when budget sur- and inserting the following: S. 1473. A bill to amend section 2007 of the pluses are predicted into the next ten Social Security Act to provide grant funding years. ‘‘8 After December 31, 1999.’’; for additional Empowerment Zones, Enter- Mr. President, I ask unanimous con- prise Communities, and Strategic Planning sent that the text of the bill be printed (7) in the matter relating to a United Communities, and for other purposes; to the States magistrate by striking: Committee on Finance. in the RECORD. By Mrs. HUTCHISON: There being no objection, the bill was S. 1474. A bill providing conveyance of the ordered to be printed in the RECORD, as ‘‘8.4 January 1, 2000, to December 31, 2000. Palmetto Bend project to the State of Texas; follows: 8.5 January 1, 2001, to December 31, 2002. 8 After December 31, 2002.’’; to the Committee on Energy and Natural Re- S. 1472 sources. Be it enacted by the Senate and House of Rep- and inserting the following: By Mr. KENNEDY (for himself, Mr. resentatives of the United States of America in DODD, Mr. CHAFEE, Mr. ROBB, Mr. Congress assembled, ‘‘8 After December 31, 1999.’’; AKAKA, Mrs. MURRAY, Mr. BINGAMAN, SECTION 1. SHORT TITLE. Mr. HARKIN, Mr. FEINGOLD, Mr. This Act may be cited as the ‘‘Federal Em- (8) in the matter relating to a Court of KERRY, and Mr. INOUYE): ployee Retirement Contributions Act of Federal Claims judge by striking: S.J. Res. 30. A joint resolution proposing 1999’’. an amendment to the Constitution of the SEC. 2. DEDUCTIONS, CONTRIBUTIONS, AND DE- ‘‘8.4 January 1, 2000, to December 31, 2000. United States relative to equal rights for POSITS. 8.5 January 1, 2001, to December 31, 2002. women and men; to the Committee on the (a) CIVIL SERVICE RETIREMENT SYSTEM.— 8 After December 31, 2002.’’; Judiciary. The table under section 8334(c) of title 5, f United States Code, is amended— and inserting the following: (1) in the matter relating to an employee SUBMISSION OF CONCURRENT AND by striking: ‘‘8 After December 31, 1999.’’; SENATE RESOLUTIONS (9) in the matter relating to the Capitol The following concurrent resolutions ‘‘7.4 January 1, 2000, to December 31, 2000. Police by striking: and Senate resolutions were read, and 7.5 January 1, 2001, to December 31, 2002. 7 After December 31, 2002.’’; referred (or acted upon), as indicated: ‘‘7.9 January 1, 2000, to December 31, 2000. By Mr. THOMPSON: and inserting the following: 8 January 1, 2001, to December 31, 2002. S. Res. 170. A resolution recognizing 7.5 After December 31, 2002.’’. Lawrenceburg, Tennessee, as the birthplace ‘‘7 After December 31, 1999.’’; and inserting the following: of southern gospel music; to the Committee on the Judiciary. (2) in the matter relating to a Member or By Mr. TORRICELLI: employee for Congressional employee service ‘‘7.5 After December 31, 1999.’’; S. Res. 171. A resolution expressing the by striking: and sense of the Senate that the President (10) in the matter relating to a nuclear ma- should renegotiate the Extradition Treaty ‘‘7.9 January 1, 2000, to December 31, 2000. terial courier by striking: Between the United States of America and 8 January 1, 2001, to December 31, 2002. the United Mexican States; to the Com- 7.5 After December 31, 2002.’’; mittee on Foreign Relations. ‘‘7.9 January 1, 2000, to December 31, 2000. By Mr. VOINOVICH (for himself and and inserting the following: 8 January 1, 2001, to December 31, 2002. Mr. LIEBERMAN): 7.5 After December 31, 2002.’’. S. Con. Res. 49. A concurrent resolution ex- ‘‘7.5 After December 31, 1999.’’; and inserting the following: pressing the sense of Congress regarding the importance of ‘‘family friendly’’ program- (3) in the matter relating to a Member for 7.5 After December 31, 1999.’’. ming on television; to the Committee on Member service by striking: Commerce, Science, and Transportation. (b) FEDERAL EMPLOYEES’ RETIREMENT SYS- f ‘‘8.4 January 1, 2000, to December 31, 2000. TEM.—Section 8422(a) of title 5, United States 8.5 January 1, 2001, to December 31, 2002. Code, is amended by striking paragraph (3) STATEMENTS ON INTRODUCED 8 After December 31, 2002.’’; and inserting the following: BILLS AND JOINT RESOLUTIONS ‘‘(3) The applicable percentage under this and inserting the following: paragraph for civilian service shall be as fol- By Mr. SARBANES (for himself, lows: Ms. MIKULSKI, Mr. WARNER, Mr. ‘‘8 After December 31, 1999.’’; ROBB, and Mr. AKAKA): (4) in the matter relating to a law enforce- ‘‘Employee ...... 7 January 1, 1987, to S. 1472. A bill to amend chapters 83 December 31, 1998. ment officer for law enforcement service and and 84 of title 5, United States Code, to 7.25 January 1, 1999, to firefighter for firefighter service by striking: December 31, 1999. modify employee contributions to the 7 After December 31, Civil Service Retirement System and 1999. ‘‘7.9 January 1, 2000, to December 31, 2000. the Federal Employees Retirement Congressional em- 7.5 January 1, 1987, to 8 January 1, 2001, to December 31, 2002. ployee. December 31, 1998. System to the percentages in effect be- 7.5 After December 31, 2002.’’; 7.75 January 1, 1999, to fore the statutory temporary increase December 31, 1999. in calendar year 1999, and for other and inserting the following: 7.5 After December 31, purposes; to the Committee on Govern- 1999. ‘‘7.5 After December 31, 1999.’’; Member ...... 7.5 January 1, 1987, to mental Affairs. December 31, 1998. FEDERAL EMPLOYEE RETIREMENT (5) in the matter relating to a bankruptcy 7.75 January 1, 1999, to CONTRIBUTIONS ACT OF 1999 judge by striking: December 31, 1999. 7.5 After December 31, Mr. SARBANES. Mr. President, I am 1999. again pleased to join with my col- ‘‘8.4 January 1, 2000, to December 31, 2000. Law enforcement offi- 7.5 January 1, 1987, to leagues, Senators MIKULSKI, WARNER, 8.5 January 1, 2001, to December 31, 2002. cer, firefighter, December 31, 1998. 8 After December 31, 2002.’’; member of the Cap- ROBB and AKAKA, in introducing the itol Police, or air Federal Employee Retirement Con- and inserting the following: traffic controller. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9997 7.75 January 1, 1999, to ment and Disability System shall be 7.25 per- prise Zones/Enterprise Community (EZ/ December 31, 1999. cent. ECs) concept combines tax credits and 7.5 After December 31, ‘‘(B) FOREIGN SERVICE CRIMINAL INVESTIGA- 1999. social service grants to promote long- TORS/INSPECTORS OF THE OFFICE OF THE IN- Nuclear materials 7 January 1, 1987, to term economic revitalization. The SPECTOR GENERAL, AGENCY FOR INTER- courier. the day before the most important aspect of Enterprise date of enactment NATIONAL DEVELOPMENT.—Notwithstanding of the strom Thur- section 805(a)(2) of the Foreign Service Act Zones are their inclusive approach—by mond National De- of 1980 (22 U.S.C. 4045(a)(2)), beginning on design—so local government, the pri- fense Authorization January 1, 1999, through December 31, 1999, vate sector and non-profit and civic Act for Fiscal Year the amount withheld and deducted from the groups together create a vision and a 1999. basic pay of an eligible Foreign Service 7.75 The date of enact- plan to implement that vision, with ment of the Strom criminal investigator/inspector of the Office the federal government playing a sup- Thurmond National of the Inspector General, Agency for Inter- portive role rather than the lead role. Defense Authoriza- national Development participating in the tion Act for Fiscal Foreign Service Retirement and Disability I’m sure many Senators can point Year 1999 to De- System shall be 7.75 percent.’’. with pride to the successes within their cember 31, 1998. (2) CONFORMING AMENDMENT.—Section own states, but I’d like to take a mo- 7.75 January 1, 1999, to 805(d)(1) of the Foreign Service Act of 1980 (22 ment to talk about the Norfolk-Ports- December 31, 1999. 7.5 After December 31, U.S.C. 4045(d)(1)) is amended in the table in mouth Enterprise Zone (EZ) in my 1999.’’. the matter following subparagraph (B) by state of Virginia. The Norfolk-Ports- striking: SEC. 3. CONFORMING AMENDMENTS RELATING mouth EZ won its new designation in TO MILITARY AND VOLUNTEER 1997. One of the many services Norfolk- SERVICE UNDER FERS. ‘‘January 1, 1970, through December Portsmouth provides through Norfolk (a) MILITARY SERVICE.—Section 8422(e)(6) of 31, 1998, inclusive 7 Works, Inc. the entity implementing title 5, United States Code, is amended to January 1, 1999, through December 31, the many activities of the EZ, are GED read as follows: 1999, inclusive 7.25 ‘‘(6) The percentage of basic pay under sec- January 1, 2000, through December 31, classes and job training and appren- tion 204 of title 37 payable under paragraph 2000, inclusive 7.4 ticeship programs. There’s even a (1), with respect to any period of military January 1, 2001, through December 31, Multi-media Training Course, which service performed during January 1, 1999, 2002, inclusive 7.5 includes an 15-week internship at a through December 31, 1999, shall be 3.25 per- After December 31, 2002 7’’. media company. Norfolk Works also re- cent.’’. and inserting the following: cruits and screen applicants for jobs. (b) VOLUNTEER SERVICE.—Section 8422(f)(4) And they don’t do this alone: Norfolk of title 5, United States Code, is amended to read as follows: ‘‘January 1, 1970, through December Works coordinates with many agencies, ‘‘(4) The percentage of the readjustment al- 31, 1998, inclusive 7 organizations and businesses to help lowance or stipend (as the case may be) pay- January 1, 1999, through December 31, the residents within the Norfolk-Ports- able under paragraph (1), with respect to any 1999, inclusive 7.25 mouth Zone. Already, the Norfolk period of volunteer service performed during After December 31, 1999 7.’’. Works has produced impressive re- January 1, 1999, through December 31, 1999, (c) FOREIGN SERVICE PENSION SYSTEM.— sults—from May 1995 to June 1999, 60 shall be 3.25 percent.’’. (1) IN GENERAL.—Section 856(a)(2) of the percent of those completing training SEC. 4. OTHER FEDERAL RETIREMENT SYSTEMS. Foreign Service Act of 1980 (22 U.S.C. are employed with another 16% in- (a) CENTRAL INTELLIGENCE AGENCY RETIRE- 4071e(a)(2)) is amended to read as follows: volved in additional training. MENT AND DISABILITY SYSTEM.— ‘‘(2) The applicable percentage under this The success of the Norfolk-Ports- (1) DEDUCTIONS, WITHHOLDINGS, AND DEPOS- subsection shall be as follows: ITS.—Section 7001(c)(2) of the Balanced Budg- mouth Enterprise Zone is just one ex- et Act of 1997 (Public Law 105–33; 111 Stat. ample of the promise and results of En- 659) is amended to read as follows: ‘‘7.5 Before January 1, 1999. terprise Zones. But unlike Round I EZ/ 7.75 January 1, 1999, to December 31, 1999. ‘‘(2) INDIVIDUAL DEDUCTIONS, WITHHOLDINGS, ECs, Round II EZ/ECs did not receive 7.5 After December 31, 1999.’’. AND DEPOSITS.—Notwithstanding section the Social Service Block Grant (SSBG) 211(a)(1) of the Central Intelligence Agency (2) VOLUNTEER SERVICE.—Section 854(c)(1) that provides resources for social serv- Retirement Act (50 U.S.C. 2021(a)(1)) begin- of the Foreign Service Act of 1980 (22 U.S.C. ices such as job training and child care ning on January 1, 1999, through December 4071c(c)(1)) is amended by striking all after which complements the tax incentives 31, 1999, the percentage deducted and with- ‘‘volunteer service;’’ and inserting ‘‘except, held from the basic pay of an employee par- the amount to be paid for volunteer service and bonding authority already ap- ticipating in the Central Intelligence Agency beginning on January 1, 1999, through De- proved. Retirement and Disability System shall be cember 31, 1999, shall be 3.25 percent.’’. Communities competed for these des- 7.25 percent.’’. SEC. 5. EFFECTIVE DATE. ignations with the understanding that (2) MILITARY SERVICE.—Section 252(h)(1)(A) This Act and the amendments made by Congress would give them the full of the Central Intelligence Agency Retire- this Act shall take effect on December 31, funding to implement their vision. We ment Act (50 U.S.C. 2082(h)(1)(A)), is amended 1999. have a responsibility to fulfill our obli- to read as follows: gations to these communities, that ‘‘(h)(1)(A) Each participant who has per- By Mr. ROBB (for himself, Ms. formed military service before the date of worked very hard to win the resources COLLINS, Mr. JEFFORDS, Mr. separation on which entitlement to an annu- to make their vision a reality. LUGAR, Mr. TORRICELLI, Ms. ity under this title is based may pay to the I look forward to working with our Agency an amount equal to 7 percent of the SNOWE, and Mr. HOLLINGS): colleagues to fulfill this promise.∑ amount of basic pay paid under section 204 of S. 1473. A bill to amend section 2007 f title 37, United States Code, to the partici- of the Social Security Act to provide pant for each period of military service after grant funding for additional Empower- ADDITIONAL COSPONSORS December 1956; except, the amount to be paid ment Zones, Enterprise Communities, for military service performed beginning on and Strategic Planning Communities, S. 37 January 1, 1999, through December 31, 1999, and for other purposes; to the Com- At the request of Mr. GRASSLEY, the shall be 7.25 percent of basic pay.’’. mittee on Finance. name of the Senator from Maine (Ms. (b) FOREIGN SERVICE RETIREMENT AND DIS- EMPOWERMENT ZONES AND ENTERPRISE COLLINS) was added as a cosponsor of S. ABILITY SYSTEM.— 37, a bill to amend title XVIII of the (1) IN GENERAL.—Section 7001(d)(2) of the COMMUNITIES ACT Balanced Budget Act of 1997 (Public Law 105– ∑ Mr. ROBB. Mr. President, I am Social Security Act to repeal the re- 33; 111 Stat. 660) is amended by striking sub- pleased to introduce today important striction on payment for certain hos- paragraphs (A) and (B) and inserting the fol- legislation that will help low-income pital discharges to post-acute care im- lowing: rural and urban areas nationwide rein- posed by section 4407 of the Balanced ‘‘(A) IN GENERAL.—Notwithstanding section vigorate their communities. Budget Act of 1997. 805(a)(1) of the Foreign Service Act of 1980 (22 The Empowerment Zones and Enter- S. 307 U.S.C. 4045(a)(1)), beginning on January 1, 1999, through December 31, 1999, the amount prise Communities Act will fully fund At the request of Mr. WYDEN, the withheld and deducted from the basic pay of the Round II Enterprise Zones author- name of the Senator from Minnesota a participant in the Foreign Service Retire- ized by Congress in 1997. The Enter- (Mr. GRAMS) was added as a cosponsor S9998 CONGRESSIONAL RECORD — SENATE August 2, 1999 of S. 307, a bill to amend title XVIII of S. 777 S. 1240 the Social Security Act to eliminate At the request of Mr. FITZGERALD, At the request of Mr. MURKOWSKI, the the budget neutrality adjustment fac- the name of the Senator from Michigan name of the Senator from Georgia (Mr. tor used in calculating the blended (Mr. LEVIN) was added as a cosponsor of COVERDELL) was added as a cosponsor capitation rate for Medicare + Choice S. 777, a bill to require the Department of S. 1240, a bill to amend the Internal organizations. of Agriculture to establish an elec- Revenue Code of 1986 to provide a par- S. 335 tronic filing and retrieval system to tial inflation adjustment for capital At the request of Mr. FEINGOLD, his enable the public to file all required gains from the sale or exchange of tim- name was added as a cosponsor of S. paperwork electronically with the De- ber. 335, a bill to amend chapter 30 of title partment and to have access to public S. 1268 39, United States Code, to provide for information on farm programs, quar- At the request of Mr. HARKIN, the the nonmailability of certain deceptive terly trade, economic, and production name of the Senator from Maine (Ms. matter relating to games of chance, ad- reports, and other similar information. COLLINS) was added as a cosponsor of S. ministrative procedures, orders, and S. 935 1268, a bill to amend the Public Health civil penalties relating to such matter, At the request of Mr. LUGAR, the Service Act to provide support for the and for other purposes. names of the Senator from Idaho (Mr. modernization and construction of bio- At the request of Mr. HUTCHINSON, his CRAIG), the Senator from Iowa (Mr. medical and behavioral research facili- name was added as a cosponsor of S. GRASSLEY), and the Senator from ties and laboratory instrumentation. 335, supra. South Dakota (Mr. JOHNSON) were S. 1269 At the request of Mr. ABRAHAM, his added as cosponsors of S. 935, a bill to At the request of Mr. MCCONNELL, name was added as a cosponsor of S. amend the National Agricultural Re- the name of the Senator from Idaho 335, supra. search, Extension, and Teaching Policy (Mr. CRAIG) was added as a cosponsor of At the request of Ms. COLLINS, the Act of 1977 to authorize research to S. 1269, a bill to provide that the Fed- names of the Senator from New Mexico promote the conversion of biomass into eral Government and States shall be (Mr. DOMENICI) and the Senator from biobased industrial products, and for subject to the same procedures and Minnesota (Mr. WELLSTONE) were added other purposes. substantive laws that would apply to as cosponsors of S. 335, supra. S. 956 persons on whose behalf certain civil At the request of Mr. LAUTENBERG, At the request of Ms. SNOWE, the actions may be brought, and for other his name was added as a cosponsor of name of the Senator from Maine (Ms. purposes. COLLINS) was added as a cosponsor of S. S. 335, supra. S. 1272 956, a bill to establish programs regard- S. 341 At the request of Mr. NICKLES, the ing early detection, diagnosis, and name of the Senator from Missouri At the request of Mr. CRAIG, the interventions for newborns and infants (Mr. BOND) was added as a cosponsor of names of the Senator from Alabama with hearing loss. (Mr. SESSIONS) and the Senator from S. 1272, a bill to amend the Controlled S. 1028 Mississippi (Mr. COCHRAN) were added Substances Act to promote pain man- At the request of Mr. HATCH, the as cosponsors of S. 341, a bill to amend agement and palliative care without name of the Senator from Arkansas the Internal Revenue Code of 1986 to in- permitting assisted suicide and eutha- (Mrs. LINCOLN) was added as a cospon- crease the amount allowable for quali- nasia, and for other purposes. sor of S. 1028, a bill to simplify and ex- fied adoption expenses, to permanently S. 1303 pedite access to the Federal courts for extend the credit for adoption ex- At the request of Mr. MURKOWSKI, the injured parties whose rights and privi- penses, and to adjust the limitations name of the Senator from Georgia (Mr. leges, secured by the United States on such credit for inflation, and for COVERDELL) was added as a cosponsor Constitution, have been deprived by other purposes. of S. 1303, a bill to amend the Internal final actions of Federal agencies, or Revenue Code of 1986 to modify certain S. 472 other government officials or entities provisions relating to the treatment of At the request of Mr. GRASSLEY, the acting under color of State law, and for forestry activities. names of the Senator from Ohio (Mr. other purposes. S. 1468 DEWINE) and the Senator from Massa- S. 1128 At the request of Mr. LOTT, the name chusetts (Mr. KERRY) were added as co- At the request of Mr. KYL, the names sponsors of S. 472, a bill to amend title of the Senator from Oregon (Mr. of the Senator from Michigan (Mr. ABRAHAM) was added as a cosponsor of XVIII of the Social Security Act to WYDEN) and the Senator from New S. 1468, a bill to authorize the minting provide certain medicare beneficiaries Hampshire (Mr. GREGG) were added as with an exemption to the financial lim- cosponsors of S. 1128, a bill to amend and issuance of Capitol Visitor Center itations imposed on physical, speech- the Internal Revenue Code of 1986 to re- Commemorative coins, and for other language pathology, and occupational peal the Federal estate and gift taxes purposes. therapy services under part B of the and the tax on generation-skipping SENATE CONCURRENT RESOLUTION 42 medicare program, and for other pur- transfers, to provide for a carryover At the request of Mr. ROBB, the name poses. basis at death, and to establish a par- of the Senator from New Mexico (Mr. S. 635 tial capital gains exclusion for inher- BINGAMAN) was added as a cosponsor of At the request of Mr. MACK, the name ited assets. Senate Concurrent Resolution 42, a of the Senator from New Hampshire S. 1187 concurrent resolution expressing the (Mr. SMITH) was added as a cosponsor At the request of Mr. DORGAN, the sense of the Congress that a commemo- of S. 635, a bill to amend the Internal name of the Senator from Georgia (Mr. rative postage stamp should be issued Revenue Code of 1986 to more accu- CLELAND) was added as a cosponsor of by the United States Postal Service rately codify the depreciable life of S. 1187, a bill to require the Secretary honoring the members of the Armed printed wiring board and printed wir- of the Treasury to mint coins in com- Forces who have been awarded the Pur- ing assembly equipment. memoration of the bicentennial of the ple Heart. S. 712 Lewis and Clark Expedition, and for SENATE RESOLUTION 95 At the request of Mr. LOTT, the name other purposes. At the request of Mr. THURMOND, the of the Senator from Montana (Mr. S. 1239 name of the Senator from Alaska (Mr. BURNS) was added as a cosponsor of S. At the request of Mr. GRAHAM, the STEVENS) was added as a cosponsor of 712, a bill to amend title 39, United name of the Senator from Alaska (Mr. Senate Resolution 95, a resolution des- States Code, to allow postal patrons to MURKOWSKI) was added as a cosponsor ignating August 16, 1999, as ‘‘National contribute to funding for highway-rail of S. 1239, a bill to amend the Internal Airborne Day.’’ grade crossing safety through the vol- Revenue Code of 1986 to treat space- SENATE RESOLUTION 99 untary purchase of certain specially ports like airports under the exempt At the request of Mr. REID, the name issued United States postage stamps. facility bond rules. of the Senator from Michigan (Mr. August 2, 1999 CONGRESSIONAL RECORD — SENATE S9999

LEVIN) was added as a cosponsor of promote family friendly programming, The trick for parents is to establish Senate Resolution 99, a resolution des- including— good viewing habits for their child—as ignating November 20, 1999, as ‘‘Na- (1) participating in meetings with leader- well as the entire family—that empha- tional Survivors for Prevention of Sui- ship of major television networks, studios, size quality programming and are suit- and production companies to share concerns; cide Day.’’ (2) expressing the importance of family ed to the age of the child. While there AMENDMENT NO. 1495 friendly programming at industry con- is generally a variety of quality chil- At the request of Mr. BAUCUS the ferences, meetings, and forums; dren’s programming throughout the names of the Senator from New Mexico (3) honoring outstanding family friendly morning and afternoon hours, the con- (Mr. BINGAMAN), the Senator from Kan- television programs with a new tribute, the cern for many parents is the content of Family Program Awards, to be held annually sas (Mr. ROBERTS), the Senator from evening programming. Right now, most in Los Angeles, California; South Dakota (Mr. JOHNSON), and the parents indicate that the so-called (4) establishing a development fund to fi- ‘‘family viewing’’ time of evening—tra- Senator from Washington (Mrs. MUR- nance family friendly scripts; and RAY) were added as cosponsors of (5) underwriting scholarships at television ditionally between 8:00 and 10:00 p.m.— amendment No. 1495 intended to be pro- studies departments at institutions of higher often contains programming that they posed to S. 1233, an original bill mak- education to encourage student interest in feel is inappropriate for their children. ing appropriations for Agriculture, family friendly programming: Now, there- It is important that broadcasters rec- Rural Development, Food and Drug Ad- fore, be it ognize that the daily ‘‘family viewing’’ Resolved by the Senate (the House of Rep- ministration, and Related Agencies period needs to focus more on program- resentatives concurring), That Congress— ming that is actually family friendly; programs for the fiscal year ending (1) recognizes and honors the efforts of the September 30, 2000, and for other pur- Forum on Family Friendly Programming shows that parents and children can poses. and other entities supporting family friendly readily watch together. No one can replace the good judg- f programming; (2) supports efforts to encourage television ment of a parent in determining what a SENATE CONCURRENT RESOLU- networks, studios, and the production com- child watches on television. However, TION 49—EXPRESSING THE munity to produce more quality family parents can use all the help they can SENSE OF CONGRESS REGARD- friendly programs; get in ensuring that more family ori- (3) supports the Family Friendly Program- ented shows are aired during the ING THE IMPORTANCE OF ‘‘FAM- ming Awards, which will encourage, recog- ILY FRIENDLY’’ PROGRAMMING evening hours. nize, and celebrate creative excellence in, To help in this endeavor, a number of ON TELEVISION and commitment to, family friendly pro- our nation’s largest companies have Mr. VOINOVICH (for himself and Mr. gramming; and (4) encourages the media and American ad- joined together to establish the Forum LIEBERMAN) submitted the following vertisers to further a family friendly tele- for Family Friendly Programming. concurrent resolution; which was re- vision environment within which appropriate Like many American families, the ferred to the Committee on Foreign advertisements can accompany the program- members of the Forum are concerned Relations: ming. that fewer and fewer television pro- S. CON. RES. 49 ∑ Mr. VOINOVICH. Mr. President, I grams are specifically geared towards Whereas American children and adoles- rise today along with my distinguished the entire family. They are concerned, cents spend between 22 and 28 hours per week colleague from Connecticut, Senator also, that too many of the programs viewing television—more than any other ac- LIEBERMAN, to submit a concurrent res- that our children view contain story- tivity except sleeping; olution recognizing the importance of Whereas American homes have an average lines, language and characters to which of 2.75 television sets, and 87 percent of expanding the amount of family friend- they should not be exposed. homes with children having more than one ly television programming, and the Most of the companies that belong to television set; contributions that the Forum for Fam- the Forum are sponsors of a wide range Whereas a very limited number of prime ily Friendly Programming is under- of television programs, but they be- time programs are suitable for the entire taking to make this goal a reality. lieve that more family-friendly tele- family; One of the more frustrating aspects vision programming, including movies, Whereas surveys of television content dem- of being a parent in the United States documentaries, series or informational onstrate that many programs contain sub- is the fact that we cannot always pro- programs that are interesting or rel- stantial sexual and/or violent content; tect our children from what they see Whereas parents are ultimately respon- evant to a broad audience, will actu- sible for the appropriate supervision of their and hear. Images and descriptions of ally appeal to more families. child’s television viewing, and critical view- violence, sex and drug and alcohol con- Right now, the members of the ing and ‘‘co-viewing’’ of television program- sumption permeate our culture, but no- Forum for Family Friendly Program- ming with the child are especially impor- where are these depicted more readily ming are working with and in the en- tant; than on television. Recent studies sup- tertainment community on a variety of Whereas ‘‘family friendly’’ programming port the theory that children exposed initiatives on family friendly program- means programs which are relevant, inter- to violent video programming at a ming including: meetings with indus- esting, and appropriate for audiences of all young age have a higher tendency to try leaders; speeches and discussions at ages, including movies, series, documen- taries, and informational programs aired engage in violent and aggressive behav- industry meetings and conferences; during hours when children and adults might ior later in life. Even more distressing award tributes to family friendly tele- be together watching television (between 8:00 is that children witness an average of vision programs; a development fund p.m. and 10:00 p.m.); five violent acts per hour on prime- for family friendly scripts; university Whereas ‘‘family friendly’’ programming is time television and 200,000 acts of vio- scholarships in television studies de- of a type that the average viewer or parent lence on television by the time they partments to encourage student inter- would not be embarrassed to watch with are 18 years old. There is no doubt that est in family friendly programming; children in the room and ideally presents an this exposure threatens the healthy de- and a public awareness campaign to uplifting message; Whereas efforts must be made by television velopment of our children. promote more family friendly program- networks, studios, and the production com- For families that have both parents ming. munity to produce more quality family working, it’s becoming harder for them Mr. President, as a father and a friendly programs and to air them during to keep track of what their children grandfather, I am deeply concerned times when parents and children are likely watch after school or during the sum- about the healthy development of all of to be viewing together; mer months. More likely than not, a our nation’s children. Since the future Whereas members of the Forum on Family child will pick up the television clicker of our country depends upon our chil- Friendly Programming market products and before he or she will pick up a book. In- dren, we must do all that we can to services to entire families and are concerned deed, each week, the average child will limit their exposure to negative influ- about the dwindling availability of family friendly television programs during prime watch 22–28 hours of television, which ences and provide them with as safe time viewing hours; and is more time than he or she spends on and nurturing an environment as pos- Whereas Congress encourages activities by any outside activity other than sleep- sible. Therefore, I encourage efforts the Forum and other entities designed to ing. that will expand the number of quality S10000 CONGRESSIONAL RECORD — SENATE August 2, 1999 family programs that are shown on tel- ican music. Since the turn of the 20th SECTION 1. SENSE OF THE SENATE REGARDING evision, and I congratulate the Forum century, Lawrenceburg has been the THE RENEGOTIATION OF THE UNITED STATES-MEXICAN EXTRA- for Family Friendly Programming on home of Southern Gospel Music, a mu- DITION TREATY. their leadership towards that goal. sical tradition embraced and perpet- It is the sense of the Senate that the Presi- I believe that passage of this resolu- uated by talented and dedicated art- dent should renegotiate the Extradition tion honoring the Forum’s commit- ists. Treaty Between the United States of Amer- ment will help raise awareness and in- The roots of Southern Gospel Music ica and the United Mexican States, signed in spire others in the business world to reach back to some of the most gifted Mexico City in 1978 (31 U.S.T. 5059), so that the possibility of capital punishment will align themselves with the goal of songwriters of our time, such as Adger not interfere with the timely extradition of bringing quality television to our na- Pace, James Rowe, G.T. Speer, William criminal suspects from Mexico to the United tion’s families. I am pleased to join Walbert, and the great James D. States. with my colleague, Senator Vaughan. Vaughan went on to found Mr. TORRICELLI. Mr. President, I LIEBERMAN, who has been a leader in the first Southern Gospel Music quar- rise today to introduce a resolution re- the Senate on addressing the needs of tet in Lawrenceburg in 1910. He also garding our extradition treaty with our children, and I urge my colleagues founded, in Lawrenceburg, the Mexico. This resolution expresses the to join us in co-sponsoring this resolu- Vaughan School of Music and the sense of the Senate that the United tion, and calling for it’s speedy consid- James D. Vaughan Music Company. States renegotiate our extradition eration by the Senate.∑ This school helped train the first gen- treaty to allow for the possibility of f eration of Southern Gospel Music art- capital punishment. The case of Jose ists, such as V.O. Stamps, Frank SENATE RESOLUTION 170—RECOG- Luis del Toro has made the need for Stamps, the Speers, and the LeFevers, this resolution clear. NIZING LAWRENCEBURG, TEN- while the music company published When Sheila Bellush was brutally NESSEE, AS THE BIRTHPLACE millions of shape-note Southern Gospel murdered in November 1997, her ac- OF SOUTHERN GOSPEL MUSIC Music songbooks during its existence cused murderer, Jose Luis del Toro, Mr. THOMPSON submitted the fol- from 1902 until 1964. fled to Mexico to escape prosecution in lowing resolution; which was referred Lawrenceburg was also integral in the United States. From this time for- to the Committee on the Judiciary: getting the word out to the world that ward, there has been little consolation S. RES. 170 Southern Gospel Music was on its way. for the Bellush family, and a great deal Whereas Lawrenceburg, Tennessee, is the Along with the many traveling quar- of hardship. While Del Toro was appre- home of many of the first major southern tets originating from the training hended in Mexico just 13 days later, a gospel music songwriters, including such ground of the Vaughan School of nightmare of government delays and songwriters as James D. Vaughan, Adger Music, Lawrenceburg was the home of roadblocks prevented his extradition to Pace, James Rowe, G. T. Speer, and William the first influential Southern Gospel the United States. Walbert; Music newspaper, The Vaughan Family The details of Sheila Bellush’s mur- Whereas Lawrenceburg, Tennessee, is the der are shocking. By all accounts, her home of the first professional southern gos- Visitor, which began publication in pel music quartet, which was founded by 1914. Eight short years later the first four 23-month-old quadruplets probably James D. Vaughan in 1910; Southern Gospel Music radio station witnessed their mother’s murder, and Whereas Lawrenceburg, Tennessee, is the WOAN was founded, also in Lawrence- wandered around in her blood trying to home of the first southern gospel music burg. wake her up for as many as 4 or 5 hours radio station WOAN, which was founded in With the endorsement of the South- before the 13-year-old daughter came 1922; ern Gospel Music Association, which home from school and found Mrs. Whereas Lawrenceburg, Tennessee, is the Bellush’s body. home of the Vaughan School of Music, which has designated Lawrenceburg the birthplace of Southern Gospel Music, I There is overwhelming evidence that helped train the first generation of southern Del Toro was involved in the murder. gospel music artists and songwriters, includ- proudly ask my colleagues to support ing V. O. Stamps, Frank Stamps, the this resolution recognizing Lawrence- The Sarasota police believe that he LeFevers, and the Speers; burg, TN, as the official birthplace of was, in fact, the gunman in a murder- Whereas Lawrenceburg, Tennessee, is the Southern Gospel Music. for-hire scheme. Del Toro’s cousin home of the Vaughan Family Visitor, the first works at a golf course where Bellush’s influential southern gospel music newspaper f ex-husband plays golf. That cousin and which was published from 1914 to 1964; one of the ex-husband’s golfing part- Whereas Lawrenceburg, Tennessee, is the SENATE RESOLUTION 171—EX- ners have been arrested as co-conspira- home of the James D. Vaughan Music Com- PRESSING THE SENSE OF THE tors. On the day of the murder, Del pany, which has published millions of shape- note southern gospel music songbooks from SENATE THAT THE PRESIDENT Toro asked directions to the Bellush the date of its founding in 1902 until 1964; and SHOULD RENEGOTIATE THE EX- house and left a clear fingerprint at the Whereas the Southern Gospel Music Asso- TRADITION TREATY BETWEEN scene. He had directions to the Bellush ciation recognizes Lawrenceburg, Tennessee, THE UNITED STATES OF AMER- house in his car, which was seen near as the official birthplace of southern gospel ICA AND THE UNITED MEXICAN the crime, and he stayed in a nearby music; Now, therefore, be it STATES motel, where a .45 caliber bullet was Resolved Mr. TORRICELLI submitted the fol- found, like the one used in the murder. SECTION 1. RECOGNITION OF LAWRENCEBURG, The Mexican government refused his TENNESSEE AS THE BIRTHPLACE OF lowing resolution; which was referred SOUTHERN GOSPEL MUSIC. to the Committee on Foreign Rela- extradition unless the United States The Senate— tions: agreed to waive the death penalty. Amazingly, we approved such a provi- (1) recognizes Lawrenceburg, Tennessee, as S. RES. 171 the birthplace of southern gospel music; and sion in the U.S.-Mexico Extradition (2) requests that the President issue a Whereas, under the Extradition Treaty Be- Treaty of 1978. This agreement allows tween the United States of America and the proclamation honoring Lawrenceburg, Ten- Mexico the right to refuse extradition nessee, as such a birthplace. United Mexican States, Mexico refused to ex- tradite murder suspect and United States if the death penalty may be applicable Mr. THOMPSON. Mr. President, citizen Jose Luis Del Toro to the United in the case. In the Bellush case, this today I rise to submit a resolution rec- States until the State of Florida agreed not provision allowed Del Toro to evade ognizing my hometown of Lawrence- to exercise its right to seek capital punish- prosecution for over a year while burg, TN, as the official birthplace of ment in its criminal prosecution of him; awaiting his extradition. Southern Gospel Music. Whereas under the Extradition Treaty I became involved in this case when Lawrenceburg is not a large town by Mexico has refused to extradite other sus- Jamie Bellush moved their six children any means, nor is it altogether promi- pects of capital crimes; and to Newton, New Jersey, and sought my Whereas the Extradition Treaty interferes nent in the political landscape. What with the justice system of the United States help with Del Toro’s extradition. I was this humble town lacks in size, how- and encourages criminals to flee to Mexico: in constant contact with the Justice ever, it more than makes up for with Now, therefore, be it and State Departments and the Mexi- its importance in the history of Amer- Resolved, can Embassy urging them to move August 2, 1999 CONGRESSIONAL RECORD — SENATE S10001 quickly in returning Del Toro. The ‘‘(B) originates and causes to be mailed ‘‘(A) has changed the election; and Mexican Government has since honored any skill contest or sweepstakes, except for ‘‘(B) elects to receive skill contest or our request, and extradited Mr. Del any matter described under section sweepstakes mailings from that promoter. Toro to Florida to stand trial. How- 3001(k)(4); ‘‘(e) PROMOTER NONLIABILITY.—A promoter ‘‘(2) ‘removal request’ means a request shall not be subject to civil liability for the ever, I believe that the U.S. should still stating that an individual elects to have the exclusion of an individual’s name or address move to renegotiate our extradition name and address of such individual excluded from any list maintained by that promoter treaty with Mexico and prevent this from any list used by a promoter for mailing for mailing skill contests or sweepstakes, unfortunate series of events from hap- skill contests or sweepstakes; if— pening to other families in the future. ‘‘(3) ‘skill contest’ means a puzzle, game, ‘‘(1) a removal request is received by the I look forward to working with this competition, or other contest in which— promoter’s notification system; and Congress to pass this resolution. ‘‘(A) a prize is awarded or offered; ‘‘(2) the promoter has a good faith belief ‘‘(B) the outcome depends predominately that the request is from— f on the skill of the contestant; and ‘‘(A) the individual whose name and ad- AMENDMENTS SUBMITTED ‘‘(C) a purchase, payment, or donation is dress is to be excluded; or required or implied to be required to enter ‘‘(B) another duly authorized person. the contest; and ‘‘(f) PROHIBITION ON COMMERCIAL USE OF DECEPTIVE MAIL PREVENTION ‘‘(4) ‘sweepstakes’ means a game of chance LISTS.— for which no consideration is required to AND ENFORCEMENT ACT ‘‘(1) IN GENERAL.— enter. ‘‘(A) PROHIBITION.—No person may provide ‘‘(b) NONMAILABLE MATTER.— any information (including the sale or rental ‘‘(1) IN GENERAL.—Matter otherwise legally COLLINS (AND LEVIN) of any name or address) derived from a list acceptable in the mails described under para- described under subparagraph (B) to another AMENDMENT NO. 1497 graph (2)— person for commercial use. ‘‘(A) is nonmailable matter; Ms. COLLINS (for herself and Mr. ‘‘(B) LISTS.—A list referred to under sub- ‘‘(B) shall not be carried or delivered by paragraph (A) is any list of names and ad- LEVIN) proposed an amendment to the mail; and bill (S. 335) to amend chapter 30 of title dresses (or other related information) com- ‘‘(C) shall be disposed of as the Postal piled from individuals who exercise an elec- 39, United States Code, to provide for Service directs. tion under subsection (d). the nonmailability of certain deceptive ‘‘(2) NONMAILABLE MATTER DESCRIBED.— ‘‘(2) CIVIL PENALTY.—Any person who vio- Matter that is nonmailable matter referred matter relating to games of chance, ad- lates paragraph (1) shall be assessed a civil to under paragraph (1) is any matter that— ministrative procedures, orders, and penalty by the Postal Service not to exceed ‘‘(A) is a skill contest or sweepstakes, ex- civil penalties relating to such matter, $2,000,000 per violation. cept for any matter described under section ‘‘(g) CIVIL PENALTIES.— and for other purposes; as follows: 3001(k)(4); and ‘‘(1) IN GENERAL.—Any promoter— On page 19, insert between lines 22 and 23 ‘‘(B)(i) is addressed to an individual who ‘‘(A) who recklessly mails nonmailable the following: made an election to be excluded from lists matter in violation of subsection (b) shall be ‘‘(A) ‘clearly and conspicuously displayed’ under subsection (d); or liable to the United States in an amount of means presented in a manner that is readily ‘‘(ii) does not comply with subsection $10,000 per violation for each mailing to an noticeable, readable, and understandable to (c)(1). individual of nonmailable matter; or the group to whom the applicable matter is ‘‘(c) REQUIREMENTS OF PROMOTERS.— ‘‘(B) who fails to comply with the require- disseminated; ‘‘(1) NOTICE TO INDIVIDUALS.—Any promoter On page 19, line 23, strike ‘‘(A)’’ and insert who mails a skill contest or sweepstakes ments of subsection (c)(2) shall be liable to ‘‘(B)’’. shall provide with each mailing a statement the United States. On page 20, line 1, strike ‘‘(B)’’ and insert that— ‘‘(2) ENFORCEMENT.—The Postal Service ‘‘(C)’’. ‘‘(A) is clearly and conspicuously dis- shall assess civil penalties under this sec- On page 20, line 9, strike ‘‘(C)’’ and insert played; tion.’’. ‘‘(D)’’. ‘‘(B) includes the address or toll-free tele- (b) TECHNICAL AND CONFORMING AMEND- On page 20, line 21, insert ‘‘prominently’’ phone number of the notification system es- MENTS.—The table of sections for chapter 30 after ‘‘that’’. tablished under paragraph (2); and of title 39, United States Code, is amended by On page 21, line 1, insert ‘‘prominently’’ ‘‘(C) states that the notification system adding after the item relating to section 3016 after ‘‘that’’. may be used to prohibit the mailing of all the following: On page 21, lines 4 and 5, strike ‘‘an entry skill contests or sweepstakes by that pro- ‘‘3017. Nonmailable skill contests or sweep- from such materials’’ and insert ‘‘such moter to such individual. stakes matter; notification to entry’’. ‘‘(2) NOTIFICATION SYSTEM.—Any promoter prohibit mailings.’’. On page 21, lines 8 and 9, strike ‘‘, in lan- that mails or causes to be mailed a skill con- (c) EFFECTIVE DATE.—This section shall guage that is easy to find, read, and under- test or sweepstakes shall establish and main- take effect 1 year after the date of enact- stand’’. tain a notification system that provides for ment of this Act. On page 21, line 15, strike ‘‘clearly’’. any individual (or other duly authorized per- f On page 22, line 5, insert ‘‘or’’ after the son) to notify the system of the individual’s semicolon. election to have the name and address of the DEPARTMENT OF THE INTERIOR On page 22, line 11, strike ‘‘or’’ after the individual excluded from all lists of names AND RELATED AGENCIES APPRO- semicolon. and addresses used by that promoter to mail PRIATIONS ACT, 2000 On page 22, strike lines 12 through 17. any skill contest or sweepstakes. On page 22, lines 23 and 24, strike ‘‘, in lan- ‘‘(d) ELECTION TO BE EXCLUDED FROM guage that is easy to find, read and under- LISTS.— MOYNIHAN AMENDMENT NO. 1498 stand’’. ‘‘(1) IN GENERAL.—An individual (or other On page 23, line 1, strike ‘‘clearly and con- duly authorized person) may elect to exclude (Ordered to lie on the table.) spicuously’’. the name and address of that individual from Mr. MOYNIHAN submitted an On page 23, line 6, strike ‘‘clearly’’. all lists of names and addresses used by a amendment intend to be proposed by On page 34, line 1, strike all through page promoter of skill contests or sweepstakes by him to the bill (H.R. 2466) making ap- 39, line 23, and insert the following: submitting a removal request to the notifi- SEC. 8. REQUIREMENTS OF PROMOTERS OF propriations for the Department of the cation system established under subsection Interior and related agencies for the SKILL CONTESTS OR SWEEPSTAKES (c). MAILINGS. ‘‘(2) RESPONSE AFTER SUBMITTING REMOVAL fiscal year ending September 30, 2000, (a) IN GENERAL.—Chapter 30 of title 39, REQUEST TO THE NOTIFICATION SYSTEM.—Not and for other purposes; as follows: United States Code (as amended by section 7 later than 35 calendar days after a promoter On page 2, lines 13 and 14, strike of this Act) is amended by adding after sec- receives a removal request pursuant to an ‘‘$634,321,000, to remain available until ex- tion 3016 the following: election under paragraph (1), the promoter pended, of’’ and insert ‘‘$634,221,000, to re- ‘‘§ 3017. Nonmailable skill contests or sweep- shall exclude the individual’s name and ad- main available until expended, of which not stakes matter; notification to prohibit mail- dress from all lists of names and addresses more than $27,406,000 shall be available for ings used by that promoter to select recipients annual maintenance relating to transpor- ‘‘(a) DEFINITIONS.—In this section, the for any skill contest or sweepstakes. tation and facilities maintenance and of’’. term— ‘‘(3) EFFECTIVENESS OF ELECTION.—An elec- On page 16, line 12, strike ‘‘$1,355,176,000, ‘‘(1) ‘promoter’ means any person who— tion under paragraph (1) shall remain in ef- of’’ and insert ‘‘$1,354,976,000, of which not ‘‘(A) originates and mails any skill contest fect, unless an individual (or other duly au- more than $247,805,000 shall be available for or sweepstakes, except for any matter de- thorized person) notifies the promoter in resource stewardship relating to park man- scribed under section 3001(k)(4); or writing that such individual— agement and not more than $431,981,000 shall S10002 CONGRESSIONAL RECORD — SENATE August 2, 1999 be available for maintenance relating to U.S.C. 1421 note; Public Law 105–277) under payments to producers of quota peanuts or park management and of’’. other law, the Secretary of Agriculture (re- additional peanuts to partially compensate On page 17, lines 19 and 20, strike ferred to in this section as the ‘Secretary’) the producers for the loss of markets for the ‘‘$221,093,000, to remain available until ex- shall use not more than $756,000,000 of funds 1998 crop of peanuts. pended, of’’ and insert ‘‘$220,893,000, to re- of the Commodity Credit Corporation to pro- (B) AMOUNT.—The amount of a payment main available until expended, of which not vide crop loss assistance in accordance with made to producers on a farm of quota pea- more than $32,840,000 shall be available for that section in a manner that, to the max- nuts or additional peanuts under subpara- special programs relating to buildings and imum extent practicable— graph (A) shall be equal to the product ob- utilities and not more than $17,000,000 shall (A) fully compensates agricultural pro- tained by multiplying— be available for construction program man- ducers for crop losses in accordance with (i) the quantity of quota peanuts or addi- agement and operations relating to buildings that section (including regulations promul- tional peanuts produced or considered pro- and utilities and of’’. gated to carry out that section); and duced by the producers under section 155 of On page 27, lines 22 through 24, strike (B) provides equitable treatment under the Agricultural Market Transition Act (7 ‘‘$1,631,996,000, to remain available until Sep- that section for agricultural producers de- U.S.C. 7271); by tember 30, 2001 except as otherwise provided scribed in subsections (b) and (c) of that sec- (ii) an amount equal to 5 percent of the herein, of’’ and insert ‘‘$1,631,896,000, to re- tion. loan rate established for quota peanuts or main available until September 30, 2001 ex- (2) CROP INSURANCE.—Of the total amount additional peanuts, respectively, under sec- cept as otherwise provided herein, of which made available under paragraph (1), the Sec- tion 155 of that Act. not more than $131,065,000 shall be available retary shall use not less than $400,000,000 to (7) TOBACCO GROWER ASSISTANCE.—The Sec- for public safety and justice programs relat- assist agricultural producers in purchasing retary shall provide $328,000,000 to be distrib- ing to special programs and pooled overhead additional coverage for the 2000 crop year uted to tobacco growers according to the for- and of’’. under the Federal Crop Insurance Act (7 mulas established pursuant to the National On page 29, lines 18 and 19, strike U.S.C. 1501 et seq.). Tobacco Grower Settlement Trust. (3) COMPENSATION FOR DENIAL OF CROP LOSS ‘‘$146,884,000, to remain available until ex- (c) FUNDS FOR STRENGTHENING MARKETS, ASSISTANCE BASED ON TAXPAYER IDENTIFICA- pended:’’ and insert ‘‘$146,784,000, to remain INCOME, AND SUPPLY (SECTION 32).— TION NUMBERS.—The Secretary shall use not available until expended, of which not more (1) IN GENERAL.—For an additional amount than $82,277,000 shall be available for edu- more than $70,000,000 of funds of the Com- for the fund maintained for funds made cation relating to construction:’’. modity Credit Corporation to make pay- available under section 32 of the Act of Au- ments to producers on a farm that were de- On page 64, lines 17 and 18, strike gust 24, 1935 (7 U.S.C. 612c), there is appro- nied crop loss assistance under section 1102 ‘‘$362,095,000, to remain available until ex- priated, out of any money in the Treasury of the Agriculture, Rural Development, Food pended’’ and insert ‘‘$361,895,000, to remain not otherwise appropriated, $500,000,000. and Drug Administration, and Related Agen- available until expended, of which not more (2) SET-ASIDE FOR CERTAIN LIVESTOCK PRO- cies Appropriations Act, 1999 (7 U.S.C. 1421 than $54,713,000 shall be available for facili- DUCERS.—Of the funds made available by note; Public Law 105–277), as the result of a ties maintenance and not more than paragraph (1), the Secretary shall use not change in the taxpayer identification num- $20,345,000 shall be available for trails main- more than $200,000,000 to provide assistance bers of the producers if the Secretary deter- tenance,’’. to livestock producers— mines that the change was not made to cre- On page 82, lines 13 and 14, strike (A) the operations of which are located in ate an advantage for the producers in the ‘‘$2,135,561,000, together with payments re- counties with respect to which during 1999 a ceived during the fiscal year pursuant to 42 crop insurance program through lower pre- miums or higher actual production histories. natural disaster was declared for losses due U.S.C. 238(b) for services furnished by the In- to excessive heat or drought by the Sec- dian Health Service:’’ and insert (b) INCOME LOSS ASSISTANCE.— (1) IN GENERAL.—The Secretary shall use retary, or a major disaster or emergency was ‘‘$2,135,461,000, together with payments re- declared for losses due to excessive heat or ceived during the fiscal year pursuant to sec- not more than $6,373,000,000 of funds of the Commodity Credit Corporation to provide drought by the President under the Robert tion 231(b) of the Public Health Service Act (on an equitable basis among producers, as T. Stafford Disaster Relief and Emergency (42 U.S.C. 238(b)) for services furnished by the determined by the Secretary) supplemental Assistance Act (42 U.S.C. 5121 et seq.); and Indian Health Service, of which not more loan deficiency payments to producers on a (B) that experienced livestock losses as a than $991,890,000 shall be available for hos- farm that are eligible for marketing assist- result of the declared disaster or emergency. pital and health clinic programs relating to ance loans for the 1999 crop of a commodity (3) WAIVER OF COMMODITY LIMITATION.—In Indian Health Service and tribal health de- under section 131 of the Agricultural Market providing assistance under this subsection, livery, and relating to clinical services:’’. Transition Act (7 U.S.C. 7231). the Secretary may waive the limitation es- On page 96, line 5, strike ‘‘$23,905,000’’ and (2) PAYMENT LIMITATION.—The total tablished under the second sentence of the insert ‘‘$24,905,000’’. amount of the payments that a person may second paragraph of section 32 of the Act of f receive under paragraph (1) during any crop August 24, 1935 (7 U.S.C. 612c), on the amount AGRICULTURE, RURAL DEVELOP- year may not exceed $40,000. of funds that may be devoted to any 1 agri- cultural commodity or product. MENT, FOOD AND DRUG ADMIN- (3) PRODUCERS WITHOUT PRODUCTION.—The payments made available under this sub- (d) EMERGENCY LIVESTOCK ASSISTANCE.— ISTRATION AND RELATED AGEN- section shall be provided (on an equitable For an additional amount to provide emer- CIES APPROPRIATIONS ACT, 2000 basis among producers, according to actual gency livestock assistance, there is appro- production history, as determined by the priated, out of any money in the Treasury Secretary) to producers with failed acreage, not otherwise appropriated, $150,000,000. DASCHLE (AND OTHERS) or acreage on which planting was prevented, (e) COMMODITY PURCHASES AND HUMANI- AMENDMENT NO. 1499 due to circumstances beyond the control of TARIAN DONATIONS.— the producers. (1) IN GENERAL.—Notwithstanding any Mr. LOTT (for Mr. DASCHLE (for him- (4) TIME FOR PAYMENT.—The assistance other provision of law, the Secretary shall self, Mr. HARKIN, Mr. DORGAN, Mr. made available under this subsection for an use not less than $978,000,000 of funds of the KERREY, Mr. JOHNSON, Mr. CONRAD, Mr. eligible owner or producer shall be provided Commodity Credit Corporation for the pur- BAUCUS, Mr. DURBIN, Mr. WELLSTONE, as soon as practicable after the date of en- chase and distribution of agricultural com- Mrs. LINCOLN, Mr. SARBANES, and Ms. actment of this Act by providing advance modities, under applicable food aid authori- MIKULSKI)) proposed an amendment to payments that are based on expected produc- ties, including— the bill (S. 1233) making appropriations tion and by taking such measures as are de- (A) section 416(b) of the Agricultural Act of for Agriculture, Rural Development, termined appropriate by the Secretary. 1949 (7 U.S.C. 1431(b)); Food and Drug Administration, and (5) DAIRY PRODUCERS.— (B) the Food for Progress Act of 1985 (7 (A) IN GENERAL.—Of the total amount made U.S.C. 1736o); and Related Agencies programs for the fis- available under paragraph (1), $400,000,000 (C) the Agricultural Trade Development cal year ending September 30, 2000, and shall be available to provide assistance to and Assistance Act of 1954 (7 U.S.C. 1691 et for other purposes; as follows: dairy producers in a manner determined by seq.). On page 76, between lines 6 and 7, insert the Secretary. (2) LEAST DEVELOPED COUNTRIES.—Not less the following: (B) FEDERAL MILK MARKETING ORDERS.— than 40 percent of the commodities distrib- SEC. 7ll. EMERGENCY AND INCOME LOSS Payments made under this subsection shall uted pursuant to this subsection shall be ASSISTANCE.—(a) ADDITIONAL CROP LOSS AS- not affect any decision with respect to rule- made available to least developed countries, SISTANCE.— making activities under section 143 of the as determined by the Secretary. (1) IN GENERAL.—Except as provided in Agricultural Market Transition Act (7 U.S.C. (3) LOCAL CURRENCIES.—To the maximum paragraph (2), in addition to amounts that 7253). extent practicable, local currencies gen- have been made available to carry out sec- (6) PEANUTS.— erated from the sale of commodities under tion 1102 of the Agriculture, Rural Develop- (A) IN GENERAL.—Of the total amount made this subsection shall be used for development ment, Food and Drug Administration, and available under paragraph (1), the Secretary purposes that foster United States agricul- Related Agencies Appropriations Act, 1999 (7 shall use not to exceed $45,000,000 to provide tural exports. August 2, 1999 CONGRESSIONAL RECORD — SENATE S10003

(f) UPLAND COTTON PRICE COMPETITIVE- 13⁄32-inch cotton, delivered C.I.F. Northern section to carry out a program to provide NESS.— Europe, for the value of any certificates crop or livestock cash indemnity payments (1) IN GENERAL.—Section 136(a) of the Agri- issued under subsection (a). to agricultural producers for the purpose of cultural Market Transition Act (7 U.S.C. ‘‘(D) SEASON-ENDING UNITED STATES STOCKS- remedying losses caused by damaging weath- 7236(a)) is amended— TO-USE RATIO.—For the purposes of making er or related condition resulting from a nat- (A) in paragraph (1), by inserting ‘‘(in the estimates under subparagraph (C), the Sec- ural or major disaster or emergency. case of each of the 1999–2000, 2000–2001, and retary shall, on a monthly basis, estimate (3) COMMERCIAL FISHERIES FAILURE.—Not- 2001–2002 marketing years for upland cotton, and report the season-ending United States withstanding any other provision of law, the at the option of the recipient)’’ after ‘‘or upland cotton stocks-to-use ratio, excluding Secretary shall provide $15,000,000 of the cash payments’’; projected raw cotton imports but including amount made available under this section to (B) by inserting ‘‘(or, in the case of each of the quantity of raw cotton that has been im- the Department of Commerce to provide the 1999–2000, 2000–2001, and 2001–2002 mar- ported into the United States during the emergency disaster assistance to persons or keting years for upland cotton, 1.25 cents per marketing year. entities that have incurred losses from a pound)’’ after ‘‘3 cents per pound’’ each place ‘‘(E) LIMITATION.—The quantity of cotton commercial fishery failure described in sec- it appears; entered into the United States during any tion 308(b)(1) of the Interjurisdictional Fish- (C) in paragraph (3), by striking subpara- marketing year described in subparagraph eries Act of 1986 (16 U.S.C. 4107(b)) with re- graph (A) and inserting the following: (A) under the special import quota estab- spect to a Northeast multispecies fishery. ‘‘(A) REDEMPTION, MARKETING, OR EX- lished under this paragraph may not exceed (j) FLOODED LAND RESERVE PROGRAM.—For CHANGE.— the equivalent of 5 weeks’ consumption of an additional amount to carry out a flooded ‘‘(i) IN GENERAL.—The Secretary shall es- upland cotton by domestic mills at the sea- land reserve program in a manner that is tablish procedures for redeeming marketing sonally adjusted average rate of the 3 consistent with section 1124 of the Agri- certificates for cash or marketing or ex- months immediately preceding the first spe- culture, Rural Development, Food and Drug change of the certificates for— cial import quota established in any mar- Administration, and Related Agencies Ap- ‘‘(I) except as provided in subclause (II), keting year.’’. propriations Act, 1999 (7 U.S.C. 1421 note; agricultural commodities owned by the Com- (3) REMOVAL OF SUSPENSION OF MARKETING Public Law 105–277), there is appropriated, modity Credit Corporation in such manner, CERTIFICATE AUTHORITY.—Section 171(b)(1)(G) out of any money in the Treasury not other- and at such price levels, as the Secretary de- of the Agricultural Market Transition Act (7 wise appropriated, $250,000,000. termines will best effectuate the purposes of U.S.C. 7301(b)(1)(G)) is amended by inserting (k) EMERGENCY SHORT-TERM LAND DIVER- cotton user marketing certificates; or before the period at the end the following: ‘‘, SION.—For an additional amount to carry out ‘‘(II) in the case of each of the 1999–2000, except that this subparagraph shall not an emergency short-term land diversion pro- 2000–2001, and 2001–2002 marketing years for apply to each of the 1999–2000, 2000–2001, and gram, there is appropriated, out of any upland cotton, agricultural commodities 2001–2002 marketing years for upland cot- money in the Treasury not otherwise appro- owned by the Commodity Credit Corporation ton’’. priated, $200,000,000. or pledged to the Commodity Credit Corpora- (4) REDEMPTION OF MARKETING CERTIFI- (l) GRAIN INSPECTION, PACKERS, AND STOCK- tion as collateral for a loan in such manner, CATES.—Section 115 of the Agricultural Act YARDS ADMINISTRATION.—For an additional and at such price levels, as the Secretary de- of 1949 (7 U.S.C. 1445k) is amended— amount for the Grain Inspection, Packers, termines will best effectuate the purposes of (A) in subsection (a)— and Stockyards Administration to support cotton user marketing certificates, including (i) by striking ‘‘rice (other than negotiable rapid response teams to enforce the Packers enhancing the competitiveness and market- marketing certificates for upland cotton or and Stockyards Act, 1921 (7 U.S.C. 181 et ability of United States cotton. rice)’’ and inserting ‘‘rice, including the seq.), there is appropriated, out of any ‘‘(ii) PRICE RESTRICTIONS.—Any price re- issuance of negotiable marketing certificates money in the Treasury not otherwise appro- strictions that would otherwise apply to the for upland cotton or rice’’; priated, $1,000,000. disposition of agricultural commodities by (ii) in paragraph (1), by striking ‘‘and’’ at (m) WATERSHED AND FLOOD PREVENTION OP- the Commodity Credit Corporation shall not the end; ERATIONS.—For an additional amount for wa- apply to the redemption of certificates under (iii) in paragraph (2), by striking the period tershed and flood prevention operations to this subparagraph.’’; and at the end and inserting ‘‘; and’’; and repair damage to waterways and watersheds (D) in paragraph (4), by inserting before (iv) by adding at the end the following: resulting from natural disasters, there is ap- the period at the end the following: ‘‘, except ‘‘(3) redeem negotiable marketing certifi- propriated, out of any money in the Treas- that this paragraph shall not apply to each cates for cash under such terms and condi- ury not otherwise appropriated, $60,000,000. of fiscal years 2000, 2001, and 2002’’. tions as are established by the Secretary.’’; (n) EMERGENCY CONSERVATION PROGRAM.— (2) ENSURING THE AVAILABILITY OF UPLAND and For an additional amount for the emergency COTTON.—Section 136(b) of the Agricultural (B) in the second sentence of subsection conservation program authorized under sec- Market Transition Act (7 U.S.C. 7236(b)) is (c), by striking ‘‘export enhancement pro- tions 401, 402, and 404 of the Agricultural amended— gram or the marketing promotion program Credit Act of 1978 (16 U.S.C. 2201, 2202, 2204) (A) in paragraph (1), by striking ‘‘The’’ and established under the Agricultural Trade Act for expenses resulting from natural disas- inserting ‘‘Except as provided in paragraph of 1978’’ and inserting ‘‘market access pro- ters, there is appropriated, out of any money (7), the’’; and gram or the export enhancement program es- in the Treasury not otherwise appropriated, (B) by adding at the end the following: tablished under sections 203 and 301 of the $30,000,000. ‘‘(7) 1999–2000, 2000–2001, AND 2001–2002 MAR- Agricultural Trade Act of 1978 (7 U.S.C. 5623, (o) ENVIRONMENTAL QUALITY INCENTIVES KETING YEARS.— 5651)’’. PROGRAM.— ‘‘(A) IN GENERAL.—In the case of each of (g) FARM SERVICE AGENCY.—For an addi- (1) IN GENERAL.—For an additional amount the 1999–2000, 2000–2001, and 2001–2002 mar- tional amount for the Farm Service Agency, for the environmental quality incentives keting years for upland cotton, the President there is appropriated, out of any money in program established under chapter 4 of sub- shall carry out an import quota program as the Treasury not otherwise appropriated, title D of title XII of the Food Security Act provided in this paragraph. $140,000,000, of which— of 1985 (16 U.S.C. 3839aa et seq.), there is ap- ‘‘(B) PROGRAM REQUIREMENTS.—Except as (1) $40,000,000 shall be used for salaries and propriated, out of any money in the Treas- provided in subparagraph (C), whenever the expenses of the Farm Service Agency; and ury not otherwise appropriated, $52,000,000. Secretary determines and announces that for (2) $100,000,000 shall be used for direct or (2) LIVESTOCK NUTRIENT MANAGEMENT any consecutive 4-week period, the Friday guaranteed farm ownership, operating, or PLANS.—The Secretary shall provide a pri- through Thursday average price quotation emergency loans under the Consolidated ority in the use of funds made available for the lowest-priced United States growth, Farm and Rural Development Act (7 U.S.C. under paragraph (1) to implementing live- as quoted for Middling (M) 13⁄32-inch cotton, 1921 et seq.), stock nutrient management plans. delivered C.I.F. Northern Europe, adjusted (h) STATE MEDIATION GRANTS.—For an ad- (p) WETLANDS RESERVE PROGRAM.—For an for the value of any certificate issued under ditional amount for grants pursuant to sec- additional amount for the wetlands reserve subsection (a), exceeds the Northern Europe tion 502(b) of the Agricultural Credit Act of program established under subchapter C of price by more than 1.25 cents per pound, 1987 (7 U.S.C. 5102(b)), there is appropriated, chapter 1 of subtitle D of title XII of the there shall immediately be in effect a special out of any money in the Treasury not other- Food Security Act of 1985 (16 U.S.C. 3837 et import quota. wise appropriated, $2,000,000. seq.), there is appropriated, out of any ‘‘(C) TIGHT DOMESTIC SUPPLY.—During any (i) DISASTER RESERVE.— money in the Treasury not otherwise appro- month for which the Secretary estimates the (1) IN GENERAL.—For the disaster reserve priated, $70,000,000. season-ending United States upland cotton established under section 813 of the Agricul- (q) FOREIGN MARKET DEVELOPMENT COOP- stocks-to-use ratio, as determined under sub- tural Act of 1970 (7 U.S.C. 1427a), there is ap- ERATOR PROGRAM.—For an additional paragraph (D), to be below 16 percent, the propriated, out of any money in the Treas- amount for the foreign market development Secretary, in making the determination ury not otherwise appropriated, $500,000,000. cooperator program established under sec- under subparagraph (B), shall not adjust the (2) CROP AND LIVESTOCK CASH INDEMNITY tion 702 of the Agricultural Trade Act of 1978 Friday through Thursday average price PAYMENTS.—Notwithstanding any other pro- (7 U.S.C. 5722), there is appropriated, out of quotation for the lowest-priced United vision of law, the Secretary may use the any money in the Treasury not otherwise ap- States growth, as quoted for Middling (M) amount made available under this sub- propriated, $10,000,000. S10004 CONGRESSIONAL RECORD — SENATE August 2, 1999

(r) RURAL ECONOMIC ASSISTANCE.—For an beef, imported lamb, imported pork, or other the package, display, holding unit, or bin additional amount for rural economic assist- designation that identifies the content of containing the commodity at the final point ance, there is appropriated, out of any United States beef, imported beef, United of sale to consumers. money in the Treasury not otherwise appro- States lamb, imported lamb, United States (B) LABELED COMMODITIES.—If the perish- priated, $150,000,000, of which— pork, and imported pork contained in the able agricultural commodity is already indi- (1) $100,000,000 shall be used for rural eco- product, as determined by the Secretary.’’. vidually labeled regarding country of origin nomic development, with the highest pri- (3) LABELING.—Section 7 of the Federal by the packer, importer, or another person, ority given to the most economically dis- Meat Inspection Act (21 U.S.C. 607) is amend- the retailer shall not be required to provide advantaged rural communities; and ed by adding at the end the following: any additional information to comply with (2) $50,000,000 shall be used to establish and ‘‘(g) MANDATORY LABELING.—The Secretary this subsection. carry out a program of revolving loans for shall provide by regulation that the fol- (5) VIOLATIONS.—If a retailer fails to indi- the support of farmer-owned cooperatives. lowing offered for retail sale bear a label cate the country of origin of a perishable ag- (s) MANDATORY PRICE REPORTING.—For an that identifies its country of origin: ricultural commodity as required by para- additional amount to carry out a program of ‘‘(1) Muscle cuts of United States beef, graph (2), the Secretary may assess a civil mandatory price reporting for livestock and United States lamb, United States pork, im- penalty on the retailer in an amount not to livestock products, on enactment of a law es- ported beef, imported lamb, and imported exceed— tablishing the program, there is appro- pork. (A) $1,000 for the first day on which the vio- priated, out of any money in the Treasury ‘‘(2) Ground beef, ground lamb, and ground lation occurs; and not otherwise appropriated, $4,000,000. pork. (B) $250 for each day on which the same (t) LABELING OF IMPORTED MEAT AND MEAT ‘‘(h) AUDIT VERIFICATION SYSTEM FOR violation continues. FOOD PRODUCTS.— UNITED STATES AND IMPORTED MUSCLE CUTS (6) DEPOSIT OF FUNDS.—Amounts collected (1) DEFINITIONS.—Section 1 of the Federal OF BEEF, LAMB, AND PORK AND GROUND BEEF, under paragraph (5) shall be deposited in the Meat Inspection Act (21 U.S.C. 601) is amend- LAMB, AND PORK.—The Secretary may re- ed by adding at the end the following: Treasury of the United States as miscella- quire by regulation that any person that pre- neous receipts. ‘‘(w) BEEF.—The term ‘beef’ means meat pares, stores, handles, or distributes muscle (7) APPLICATION OF SUBSECTION.—This sec- produced from cattle (including veal). cuts of United States beef, imported beef, tion shall apply with respect to a perishable ‘‘(x) IMPORTED BEEF.—The term ‘imported United States lamb, imported lamb, United agricultural commodity after the end of the beef’ means beef that is not United States States pork, imported pork, ground beef, 6-month period beginning on the date of the beef, whether or not the beef is graded with ground lamb, or ground pork for retail sale enactment of this Act. a quality grade issued by the Secretary. maintain a verifiable recordkeeping audit (v) LIMITATION ON MARKETING LOAN GAINS ‘‘(y) IMPORTED LAMB.—The term ‘imported trail that will permit the Secretary to en- AND LOAN DEFICIENCY PAYMENTS.—Notwith- lamb’ means lamb that is not United States sure compliance with the regulations pro- lamb, whether or not the lamb is graded with mulgated under subsection (g).’’. standing section 1001(2) of the Food Security Act of 1985 (7 U.S.C. 1308(1)), the total a quality grade issued by the Secretary. (4) REGULATIONS.—Not later than 1 year ‘‘(z) IMPORTED PORK.—The term ‘imported after the date of enactment of this Act, the amount of the payments specified in section pork’ means pork that is not United States Secretary shall promulgate final regulations 1001(3) of that Act that a person shall be en- pork. to carry out the amendments made by this titled to receive under the Agricultural Mar- ‘‘(aa) LAMB.—The term ‘lamb’ means meat, subsection. ket Transition Act (7 U.S.C. 7201 et seq.) for 1 or more contract commodities and oilseeds other than mutton, produced from sheep. (5) FUNDING.—For an additional amount to ‘‘(bb) PORK.—The term ‘pork’ means meat carry out this subsection and the amend- during the 1999 crop year may not exceed produced from hogs. ments made by this subsection, there is ap- $150,000. (w) EMERGENCY REQUIREMENT.—The entire ‘‘(cc) UNITED STATES BEEF.— propriated, out of any money in the Treas- amount necessary to carry out this section ‘‘(1) IN GENERAL.—The term ‘United States ury not otherwise appropriated, $8,000,000. and the amendments made by this section beef’ means beef produced from cattle (6) EFFECTIVE DATE.—The amendments shall be available only to the extent that an slaughtered in the United States. made by this subsection take effect 60 days official budget request for the entire ‘‘(2) EXCLUSION.—The term ‘United States after the date on which final regulations are amount, that includes designation of the en- beef’ does not include beef produced from promulgated under paragraph (4). cattle imported into the United States in (u) INDICATION OF COUNTRY OF ORIGIN OF tire amount of the request as an emergency sealed trucks for slaughter. PERISHABLE AGRICULTURAL COMMODITIES.— requirement as defined in the Balanced ‘‘(dd) UNITED STATES LAMB.— (1) DEFINITIONS.—In this section: Budget and Emergency Deficit Control Act ‘‘(1) IN GENERAL.—The term ‘United States (A) FOOD SERVICE ESTABLISHMENT.—The of 1985, as amended, is transmitted by the lamb’ means lamb produced from sheep term ‘‘food service establishment’’ means a President to the Congress: Provided, That the slaughtered in the United States. restaurant, cafeteria, lunch room, food entire amount is designated by the Congress ‘‘(2) EXCLUSION.—The term ‘United States stand, saloon, tavern, bar, lounge, or other as an emergency requirement pursuant to lamb’ does not include lamb produced from similar facility operated as an enterprise en- section 251(b)(2)(A) of such Act. sheep imported into the United States in gaged in the business of selling food to the (x) AVAILABILITY.—The amount necessary sealed trucks for slaughter. public. to carry out this section and the amend- ‘‘(ee) UNITED STATES PORK.— (B) PERISHABLE AGRICULTURAL COMMODITY; ments made by this section shall remain ‘‘(1) IN GENERAL.—The term ‘United States RETAILER.—The terms ‘‘perishable agricul- available until expended. pork’ means pork produced from hogs tural commodity’’ and ‘‘retailer’’ have the slaughtered in the United States. meanings given the terms in section 1(b) of COCHRAN AMENDMENT NO. 1500 ‘‘(2) EXCLUSION.—The term ‘United States the Perishable Agricultural Commodities Mr. LOTT (for Mr. COCHRAN) proposed pork’ does not include pork produced from Act, 1930 (7 U.S.C. 499a(b)). an amendment to amendment No. 1499 hogs imported into the United States in (2) NOTICE OF COUNTRY OF ORIGIN RE- sealed trucks for slaughter.’’. QUIRED.—Except as provided in paragraph (3), proposed by Mr. DASCHLE to the bill, S. (2) MISBRANDING.—Section 1(n) of the Fed- a retailer of a perishable agricultural com- 1233, supra; as follows: eral Meat Inspection Act (21 U.S.C. 601(n)) is modity shall inform consumers, at the final Beginning on page 1, line 3, strike all that amended— point of sale of the perishable agricultural follows ‘‘SEC.’’ to the end of the amendment (A) in paragraph (11), by striking ‘‘or’’ at commodity to consumers, of the country of and insert the following: the end; origin of the perishable agricultural com- ll. EMERGENCY AND MARKET LOSS ASSIST- (B) in paragraph (12), by striking the pe- modity. ANCE.—(a) MARKET LOSS ASSISTANCE.— riod at the end and inserting ‘‘; or’’; and (3) EXEMPTION FOR FOOD SERVICE ESTAB- (1) IN GENERAL.—Except as provided in (C) by adding at the end the following: LISHMENTS.—Paragraph (2) shall not apply to paragraph (4), the Secretary of Agriculture ‘‘(13)(A) if it is imported beef, imported a perishable agricultural commodity if the (referred to in this section as the ‘‘Sec- lamb, or imported pork offered for retail sale perishable agricultural commodity is— retary’’) shall use not more than as muscle cuts of beef, lamb, or pork and (A) prepared or served in a food service es- $5,544,453,000 of funds of the Commodity does not bear a label that identifies its coun- tablishment; and Credit Corporation to provide assistance to try of origin; (B)(i) offered for sale or sold at the food owners and producers on a farm that are eli- ‘‘(B) if it is United States beef, United service establishment in normal retail quan- gible for payments for fiscal year 1999 under States lamb, or United States pork offered tities; or a production flexibility contract for the farm for retail sale as muscle cuts of beef, lamb, (ii) served to consumers at the food service under the Agricultural Market Transition or pork, and does not bear a label that iden- establishment. Act (7 U.S.C. 7201 et seq.). tifies its country of origin; or (4) METHOD OF NOTIFICATION.— (2) AMOUNT.—Except as provided in para- ‘‘(C) if it is United States or imported (A) IN GENERAL.—The information required graph (4), the amount of assistance made ground beef, ground lamb, or ground pork by paragraph (2) may be provided to con- available to owners and producers on a farm and is not accompanied by labeling that sumers by means of a label, stamp, mark, under this subsection shall be proportionate identifies it as United States beef, United placard, or other clear and visible sign on to the amount of the contract payment re- States lamb, United States pork, imported the perishable agricultural commodity or on ceived by the owners and producers for fiscal August 2, 1999 CONGRESSIONAL RECORD — SENATE S10005 year 1999 under a production flexibility con- subsection (a), exceeds the Northern Europe determined to be in surplus, based on the tract for the farm under the Agricultural price by more than 1.25 cents per pound, most recent estimates available from the Of- Market Transition Act. there shall immediately be in effect a special fice of Management and Budget as of the last (3) TIME FOR PAYMENT.—The assistance import quota. day of the fiscal year.’’. made available under this subsection for an ‘‘(C) TIGHT DOMESTIC SUPPLY.—During any (e) OILSEED PAYMENTS.— eligible owner or producer shall be provided month for which the Secretary estimates the (1) IN GENERAL.—Notwithstanding any not later than 45 days after the date of en- season-ending United States upland cotton other provision of law, the Secretary shall actment of this Act. stocks-to-use ratio, as determined under sub- use not less than $500,000,000 of funds of the (4) PEANUTS.— paragraph (D), to be below 16 percent, the Commodity Credit Corporation to make pay- (A) IN GENERAL.—The Secretary shall use Secretary, in making the determination ments to producers of the 1999 crop of oil- such amounts as are necessary to provide under subparagraph (B), shall not adjust the seeds that are eligible to obtain a marketing payments to producers of quota peanuts or Friday through Thursday average price assistance loan under section 131 of the Agri- additional peanuts to partially compensate quotation for the lowest-priced United cultural Market Transition Act (7 U.S.C. the producers for continuing low commodity States growth, as quoted for Middling (M) 7231). prices, and increasing costs of production, 13⁄32-inch cotton, delivered C.I.F. Northern (2) COMPUTATION.—A payment to producers for the 1999 crop year. Europe, for the value of any certificates on a farm under this subsection shall be (B) AMOUNT.—The amount of a payment issued under subsection (a). computed by multiplying— made to producers on a farm of quota pea- ‘‘(D) SEASON-ENDING UNITED STATES STOCKS- (A) a payment rate determined by the Sec- nuts or additional peanuts under subpara- TO-USE RATIO.—For the purposes of making retary; by graph (A) shall be equal to the product ob- estimates under subparagraph (C), the Sec- (B) the quantity of oilseeds that the pro- tained by multiplying— retary shall, on a monthly basis, estimate ducers on the farm are eligible to place (i) the quantity of quota peanuts or addi- and report the season-ending United States under loan under section 131 of that Act. tional peanuts produced or considered pro- upland cotton stocks-to-use ratio, excluding (3) LIMITATION.—Payments made under this duced by the producers under section 155 of projected raw cotton imports but including subsection shall be considered to be contract the Agricultural Market Transition Act (7 the quantity of raw cotton that has been im- payments for the purposes of section 1001(1) U.S.C. 7271); by ported into the United States during the of the Food Security Act of 1985 (7 U.S.C. (ii) an amount equal to 5 percent of the marketing year.’’; and 1308(1)). loan rate established for quota peanuts or (B) by adding at the end the following: (f) ASSISTANCE TO LIVESTOCK AND DAIRY additional peanuts, respectively, under sec- ‘‘(7) LIMITATION.—The quantity of cotton PRODUCERS.—The Secretary shall use tion 155 of that Act. entered into the United States during any $500,000,000 of funds of the Commodity Credit (b) LIMITATION ON MARKETING LOAN GAINS marketing year under the special import Corporation to provide assistance to live- AND LOAN DEFICIENCY PAYMENTS.—Notwith- quota established under this subsection may stock and dairy producers in a manner deter- standing section 1001(2) of the Food Security not exceed the equivalent of 5 week’s con- mined by the Secretary. Act of 1985 (7 U.S.C. 1308(1)), the total sumption of upland cotton by domestic mills (g) SENSE OF CONGRESS REGARDING FAST- amount of the payments specified in section at the seasonally adjusted average rate of TRACK AUTHORITY AND FUTURE WORLD TRADE 1001(3) of that Act that a person shall be en- the 3 months immediately preceding the first ORGANIZATION NEGOTIATIONS.—It is the sense titled to receive under the Agricultural Mar- special import quota established in any mar- of Congress that— ket Transition Act (7 U.S.C. 7201 et seq.) for keting year.’’. (1) the President should make a formal re- 1 or more contract commodities and oilseeds (3) REMOVAL OF SUSPENSION OF MARKETING quest for appropriate fast-track authority during the 1999 crop year may not exceed CERTIFICATE AUTHORITY.—Section 171(b)(1) of for future United States trade negotiations; $150,000. the Agricultural Market Transition Act (7 (2) regarding future World Trade Organiza- (c) UPLAND COTTON PRICE COMPETITIVE- U.S.C. 7301(b)(1)) is amended— tion negotiations— NESS.— (A) by striking subparagraph (G); and (A) rules for trade in agricultural commod- (1) IN GENERAL.—Section 136(a) of the Agri- (B) by redesignating subparagraphs (H) ities should be strengthened and trade-dis- cultural Market Transition Act (7 U.S.C. through (L) as subparagraphs (G) through torting import and export practices should 7236(a)) is amended— (K), respectively. be eliminated or substantially reduced; (A) in paragraph (1), by striking ‘‘or cash (4) REDEMPTION OF MARKETING CERTIFI- (B) the rules of the World Trade Organiza- payments’’ and inserting ‘‘or cash payments, CATES.—Section 115 of the Agricultural Act tion should be strengthened regarding the at the option of the recipient,’’; of 1949 (7 U.S.C. 1445k) is amended— practices or policies of a foreign government (B) by striking ‘‘3 cents per pound’’ each (A) in subsection (a)— that unreasonably— place it appears and inserting ‘‘1.25 cents per (i) by striking ‘‘rice (other than negotiable (i) restrict market access for products of pound’’; marketing certificates for upland cotton or new technologies, including products of bio- (C) in the first sentence of paragraph rice)’’ and inserting ‘‘rice, including the technology; or (3)(A), by striking ‘‘owned by the Commodity issuance of negotiable marketing certificates (ii) delay or preclude implementation of a Credit Corporation in such manner, and at for upland cotton or rice’’; report of a dispute panel of the World Trade such price levels, as the Secretary deter- (ii) in paragraph (1), by striking ‘‘and’’ at Organization; and mines will best effectuate the purposes of the end; (C) agricultural negotiations of the World cotton user marketing certificates’’ and in- (iii) in paragraph (2), by striking the period Trade Organization should conclude simulta- serting ‘‘owned by the Commodity Credit at the end and inserting ‘‘; and’’; and neously with nonagricultural negotiations as Corporation or pledged to the Commodity (iv) by adding at the end the following: a single undertaking; Credit Corporation as collateral for a loan in ‘‘(3) redeem negotiable marketing certifi- (3) the President should— such manner, and at such price levels, as the cates for cash under such terms and condi- (A) conduct a comprehensive evaluation of Secretary determines will best effectuate the tions as are established by the Secretary.’’; all existing export and food aid programs, purposes of cotton user marketing certifi- and including— cates, including enhancing the competitive- (B) in the second sentence of subsection (i) the export credit guarantee program es- ness and marketability of United States cot- (c), by striking ‘‘export enhancement pro- tablished under section 202 of the Agricul- ton’’; and gram or the marketing promotion program tural Trade Act of 1978 (7 U.S.C. 5622); (D) by striking paragraph (4). established under the Agricultural Trade Act (ii) the market access program established (2) ENSURING THE AVAILABILITY OF UPLAND of 1978’’ and inserting ‘‘market access pro- under section 203 of that Act (7 U.S.C. 5623); COTTON.—Section 136(b) of the Agricultural gram or the export enhancement program es- (iii) the export enhancement program es- Market Transition Act (7 U.S.C. 7236(b)) is tablished under sections 203 and 301 of the tablished under section 301 of that Act (7 amended— Agricultural Trade Act of 1978 (7 U.S.C. 5623, U.S.C. 5651); (A) by striking paragraph (1) and inserting 5651)’’. (iv) the foreign market development coop- the following: (d) SUSPENSION OF SUGAR ASSESSMENTS.— erator program established under section 702 ‘‘(1) ESTABLISHMENT.— Section 156(f) of the Agricultural Market of that Act (7 U.S.C. 5722); and ‘‘(A) IN GENERAL.—The President shall Transition Act (7 U.S.C. 7272(f)) is amended— (v) programs established under the Agri- carry out an import quota program during (1) in paragraph (1), by inserting ‘‘except as cultural Trade Development and Assistance the period ending July 31, 2003, as provided in provided in paragraph (6),’’ after ‘‘years,’’; Act of 1954 (7 U.S.C. 1691 et seq.); and this subsection. (2) in paragraph (2), by inserting ‘‘except as (B) transmit to Congress— ‘‘(B) PROGRAM REQUIREMENTS.—Except as provided in paragraph (6),’’ after ‘‘years,’’; (i) the results of the evaluation under sub- provided in subparagraph (C), whenever the and paragraph (A); and Secretary determines and announces that for (3) by adding at the end the following: (ii) recommendations on maximizing the any consecutive 4-week period, the Friday ‘‘(6) SUSPENSION OF ASSESSMENTS.—Effec- effectiveness of the programs described in through Thursday average price quotation tive beginning with fiscal year 2000 through subparagraph (A); and for the lowest-priced United States growth, fiscal year 2002, no assessments shall be re- (4) the Secretary should carry out a pur- as quoted for Middling (M) 13⁄32-inch cotton, quired under this subsection during any fis- chase and donation or concessional sales ini- delivered C.I.F. Northern Europe, adjusted cal year that immediately follows a fiscal tiative in each of fiscal years 1999 and 2000 to for the value of any certificate issued under year during which the Federal budget was promote the export of additional quantities S10006 CONGRESSIONAL RECORD — SENATE August 2, 1999 of soybeans, beef, pork, poultry, and prod- ADDITIONAL STATEMENTS cluding a parade and an ‘‘Olde Fash- ucts of such commodities (including soybean ioned Fireman’s Muster’’. meal, soybean oil, textured vegetable pro- Newton’s rich and fruitful history tein, and soy protein concentrates and iso- POINT CABRILLO LIGHTHOUSE dates back to 1639 when families first lates) using programs established under— (A) the Commodity Credit Corporation ∑ Mrs. BOXER. Mr. President, today, I settled in the area granted by England Charter Act (15 U.S.C. 714 et seq.); recognize an important and historic known as New Salisbury (Amesbury). (B) section 416 of the Agricultural Act of restoration project now nearing com- Newton’s actual township was incor- 1949 (7 U.S.C. 1431); pletion in Mendocino, California. While porated in 1749, allowing the people to (C) titles I and II of the Agricultural Trade the North Coast of California is re- elect their own officials and to hold Development and Assistance Act of 1954 (7 nowned for its natural beauty and town meetings. U.S.C. 1701 et seq.); and breathtaking views, in Mendocino Much of the frontier region was wild (D) the Food for Progress Act of 1985 (7 there is another coastal landmark that country inhabited by the Naumkeag U.S.C. 1736o). has captured the imagination of this Indians. The settlers and the (h) EMERGENCY REQUIREMENT.—The entire amount necessary to carry out this section rugged region. Built in 1908, the Point Naumkeaks had generally peaceful re- and the amendments made by this section Cabrillo Lighthouse is a living re- lations, relying on one another for shall be available only to the extent that an minder of California’s maritime his- trading purposes. The greatest danger official budget request for the entire tory. And on August 6th, the Light- facing the settlers came from the war amount, that includes designation of the en- house celebrates the 90th anniversary parties of the Mic Macs, who originated tire amount of the request as an emergency of the first lighting of its light. from the area now known as Maine and requirement as defined in the Balanced This one-of-a-kind structure was New Brunswick, Canada. These hostile Budget and Emergency Deficit Control Act originally built by the United States groups conducted violent raids as far of 1985, as amended, is transmitted by the President to the Congress: Provided, That the Lighthouse Service to protect the leg- south as Connecticut, killing large entire amount is designated by the Congress endary ‘‘doghole schooners’’ that plied numbers of local populations. With a as an emergency requirement pursuant to the lumber trade between San Fran- combination of the settlers’ admirable section 251(b)(2)(A) of such Act. cisco and California’s northern coast at fortitude and the recurring epidemics the turn of the century. The Light- of disease, these native populations house was turned over to the U.S. were nearly wiped out. LOTT AMENDMENT NO. 1501 Coast Guard in 1939, and still houses Newton residents have persevered in Mr. LOTT proposed an amendment to Coast Guard navigational aids and other ways throughout the years, cou- the bill, S. 1233, supra; as follows: monitoring equipment. However, the rageously serving and defending Amer- Lighthouse structure and its rare ica. They have participated in the On page 21, between lines 10 and 11, insert the following: Fresnel lens suffered significant dam- French and Indian Wars, Revolutionary None of the funds appropriated or other- age after many years of neglect. Then, War, War of 1812, Civil War, World War wise made available by this Act may be used in 1998, the California Coastal Conser- I, World War II, the Korean War and to pay the salaries and expenses of personnel vancy and North Coast Interpretive As- the Vietnam Conflict. Newton’s citi- of the Department of Agriculture to sociation stepped forward to restore zens are always willing to serve our implement— and reinstate the original Fresnel lens, Nation when called upon. (1) sections 143 or 147(3) of the Agricultural and to renovate the Lighthouse for use I congratulate the town of Newton, Market Transition Act (7 U.S.C. 7253, 7256(3)); as an educational and interpretive cen- and it’s dedicated and patriotic citi- (2) the final decision for the consolidation zens. I am proud to serve the residents and reform of Federal milk marketing or- ter. ders, as published in the Federal Register on Thanks to the efforts of the people of of Newton in the United States Sen- April 2, 1999 (64 Fed. Reg. 16025); or Mendocino, the Coastal Conservancy ate.∑ (3) section 738 of the Agriculture, Rural De- and the North Coast Interpretive Asso- f velopment, Food and Drug Administration, ciation, the Lighthouse restoration ICELANDIC HERITAGE and Related Agencies Appropriations Act, project will soon be complete. A week- 1999 (Public Law 105–277; 112 Stat. 2681–30). end of festivities will celebrate the ∑ Mr. CONRAD. Mr. President, I rise Lighthouse’s revival and highlight the today to celebrate the Icelandic herit- f attractions of the Point Cabrillo Pre- age of our country and of the state of serve and Light Station. This celebra- North Dakota. NOTICE OF HEARINGS tion will acknowledge the efforts of the For a century it has been North Da- many volunteers and community part- kota’s custom to set aside time to COMMITTEE ON AGRICULTURE, NUTRITION, AND honor the contributions of Icelanders FORESTRY ners that also helped make this project a success. to North Dakota. In order to honor the Mr. LUGAR. Mr. President, I would It is important to take the time to thousands of people of Icelandic de- like to announce that the Senate Com- applaud the restoration of this nation- scent that reside in my state, the Gov- mittee on Agriculture, Nutrition, and ally significant, historic landmark. I ernor has proclaimed July 30 to August Forestry will meet on August 3, 1999, in also think it is important to recognize 2 as Icelandic Heritage Days. SH–216 at 9 a.m. The purpose of this the significance of community projects Icelandic Heritage Days culminates meeting will be to discuss the farm cri- such as the Point Cabrillo Lighthouse, with a celebration of the historical sis. which serve as invaluable, irreplace- presentation of a new constitution to COMMITTEE ON AGRICULTURE, NUTRITION, AND able links to our common past and as the Icelandic Parliament. This oc- FORESTRY unique educational tools for the future. curred on August the second, or ‘‘Au- Mr. LUGAR. Mr. President, I would I commend the efforts that have gone gust the Deuce,’’ as many Icelanders like to announce that the Senate Com- into this restoration project, and send call it, 1874 by King Kristjan the Ninth. mittee on Agriculture, Nutrition, and the Point Cabrillo Lighthouse volun- This action formally freed Iceland from Forestry will meet on August 4, 1999, in teers and other partners my best wish- hundreds of years of Danish rule. SH–216 at 9 a.m. The purpose of this es for their continued success.∑ In 1878, people of Icelandic descent meeting will be to discuss the farm cri- f first settled in northeastern North Da- sis. kota. Since this time, Icelandic-Ameri- COMMITTEE ON AGRICULTURE, NUTRITION, AND TRIBUTE TO THE TOWN OF cans have been instrumental in the de- FORESTRY NEWTON, NEW HAMPSHIRE velopment of their communities and Mr. LUGAR. Mr. President, I would ∑ Mr. SMITH of New Hampshire. Mr. my state. One settler, E.H. Bergman, like to announce that the Senate Com- President, I rise today to pay tribute was a member of the Territorial Legis- mittee on Agriculture, Nutrition, and to the town of Newton, New Hampshire lature, which passed legislation ena- Forestry will meet on August 5, 1999, in on its two hundred and fiftieth anni- bling the establishment of the states of SH–216 at 9 a.m. The purpose of this versary. The town’s residents will cele- North and South Dakota. Since meeting will be to discuss the farm cri- brate this historic occasion on August Bergman’s time, many more people of sis. 15, 1999 with a number of festivities in- Icelandic descent have represented August 2, 1999 CONGRESSIONAL RECORD — SENATE S10007 their constituencies in the ND Legisla- Bedford Presbyterian Church which is have a feeling we will work with Barry ture and state government. celebrating its 250th Anniversary on again in another more important role Mr. President, this year’s celebration August 15, 1999. The church first orga- for our Navy and our nation.∑ is especially noteworthy because an nized on August 15, 1749 and has been f honored dignitary, the Honorable serving the people of Bedford ever Olafur Ragnar Grimsson, the President since. TRIBUTE TO ROBERT STEPHEN of Iceland, will be in attendance. This The church was founded under the ∑ Mr. SMITH of New Hampshire. Mr. visit will mark the first time that an rules of Massachusetts Colony who President, I rise today to pay tribute Icelandic head-of-state has visited deeded the land to the New Hampshire to Robert Stephen of Manchester, New North Dakota. and also mandated that in order to or- Hampshire for his appointment to Di- It is a pleasure to have President ganize a town there must be land for a rector of Community Development Grimsson visit North Dakota, and a church, a minister, and an orthodox Services at New Hampshire’s Depart- privilege to honor Icelandic-Americans ministry. The church was thus formed ment of Resources and Economic De- for all they have done for North Da- in 1749 and the town charter was signed velopment. kota and this great country.∑ the next year. After ten years of service as a New f As a person of strong religious con- Hampshire State Senator, Democratic ANGELO QUARANTA victions, I applaud the services and Leader from 1984 to 1990, Robert was strong sense of family and community appointed Deputy Executive Director ∑ Mrs. BOXER. Mr. President, today, I that the church has provided to its of the New Hampshire Job Training extend special birthday wishes to a community. Furthermore, I applaud Council. In this capacity Robert was very special Californian, Angelo their monthly celebrations of this his- responsible for providing New Hamp- Quaranta, whose birthday is August 8. shire businesses with the skilled labor Angelo is perhaps best known as the toric event. I commend the Bedford Presbyterian owner and driving force behind Allegro, needed to grow and be successful and Church and wish them luck in the next an Italian restaurant on San Fran- New Hampshire citizens with the skills 250 years. It is an honor to represent cisco’s Russian Hill. Regardless of they need to become self-sufficient. He whether you are the Governor, the the members of Bedford Presbyterian has also been a driving force in work- Mayor, a community organizer or just Church in the United States Senate.∑ force development by overseeing the someone looking for a wonderful plate f state’s Rapid Response effort and con- vening the Statewide Business Rela- of pasta, Angelo’s grace and easy man- TRIBUTE TO ADMIRAL BARRY tions Team. ner always make you feel welcome. COSTELLO Angelo was born in Taranto, Italy in Not only has Robert taken on the Mr. GRAMM. Mr. President, I rise 1934. Before leaving his homeland for ∑ task of improving the New Hampshire today to recognize Rear Admiral (Se- San Francisco in 1960, he attended the workforce, but he has been an asset to police academy and became national lect) Barry Costello, United States his community. He has won numerous Judo champion while serving with the Navy, for the excellent job he has done Multiple Sclerosis Fund-Raising Italian Police Force. Upon arriving in as the Director of Senate Liaison for Awards, was a former member of the San Francisco, he first worked as a the Navy. I want to recognize Admiral New Hampshire State Athletic Com- window washer and then began a dis- Costello for his many achievements mission, has received the Easter Seal tinguished career in the insurance in- and commend him for the exemplary VIP Award and has been a business dustry. service he has provided to the Senate, owner in downtown Manchester. On top Cooking may be Angelo’s passion, to the Navy, and to our great nation. of all this service, Robert was also able but he can be found in many more Barry Costello is a sailor’s sailor who to become a three-time New Hampshire places than the kitchen. He has long has distinguished himself through his Golden Gloves Boxing Champion. been active in local government and is seamanship, tactical acumen, and in- Robert’s new responsibility as Direc- a leader in community affairs. He is spiring leadership. He has served on tor of Community Development Serv- currently president of the Commission some of our country’s finest warships, ices will give him the opportunity to of Parking and Traffic, and served on including command of the destroyer cultivate a stronger and more job San Francisco’s Recreation and Park U.S.S. Elliot (DD 967). Prior to coming ready workforce, meeting the needs Commission. In the 1970’s, he operated to the Senate, he commanded the pres- and specifications of New Hampshire an Italian television station that tigious ‘‘Little Beavers’’ of Destroyer companies. His presence at the New broadcast programming from Italy. He Squadron 23, following in the footsteps Hampshire Job Training Council will founded Unione Sportiva Italia, and of Admiral Arleigh ‘‘Thirty-One Knot’’ surely be missed. has been active in numerous efforts to Burke, who famously led the ‘‘Little I want to commend Robert Stephen celebrate the invaluable contributions Beavers’’ to a decisive victory over for his hard work on behalf of New of Italians and Italian-Americans to Japanese forces in the Battle of Cape Hampshire citizens and wish him luck the life of the city and nation. Angelo Saint George in 1943. in his new endeavor. It is an honor to has served as a member of the Juvenile In March 1997, Admiral Costello took represent Robert in the United States Diabetes Foundation and founded Can- the helm of the Navy’s Senate Liaison Senate.∑ dlelight Again, an organization com- Office. His integrity, enthusiasm, and f prised of restaurant owners and their foresight have earned the admiration patrons dedicated to raising funds for of all members of the Senate who have TAXPAYER REFUND ACT OF 1999 community needs. In recognition of his worked with him, and it is not an exag- On July 30, 1999, the Senate amended work, and in addition to many other geration to say that through his serv- and passed H.R. 2488. The text of the honors, the Mayor’s Office has twice ice to the Senate, Barry Costello has bill follows: proclaimed it ‘‘Angelo Quaranto Day in helped to ensure that our Navy re- Resolved, That the bill from the House of San Francisco.’’ mains the best trained, best equipped, Representatives (H.R. 2488) entitled ‘‘An Act Angelo has two adult daughters who and best prepared naval force in the to provide for reconciliation pursuant to sec- live with their husbands and children world. tions 105 and 211 of the concurrent resolution in Italy. It is a pleasure to join them Mr. President, Rear Admiral (Select) on the budget for fiscal year 2000.’’, do pass and the larger civic family Angelo con- Barry Costello exemplifies what is best with the following amendment: in the Navy and in America. The Sen- Strike out all after the enacting clause and tinues to nurture in San Francisco in insert: wishing him a joyous 65th birthday. ate, the Navy and the American people ∑ SECTION 1. SHORT TITLE; ETC. f are indebted to him for his many years of distinguished service. As he departs (a) SHORT TITLE.—This Act may be cited as the ‘‘Taxpayer Refund Act of 1999’’. TRIBUTE TO HONOR BEDFORD for his first assignment as a flag offi- PRESBYTERIAN CHURCH (b) AMENDMENT OF 1986 CODE.—Except as oth- cer, I know that my colleagues wish erwise expressly provided, whenever in this Act ∑ Mr. SMITH of New Hampshire. Mr. Barry, his wife LuAnne, and their sons an amendment or repeal is expressed in terms of President, I rise today to honor the Aidan and Brendan the very best. I an amendment to, or repeal of, a section or S10008 CONGRESSIONAL RECORD — SENATE August 2, 1999 other provision, the reference shall be consid- Sec. 332. Rollovers of IRAs into workplace re- Sec. 406. Treatment of qualified public edu- ered to be made to a section or other provision tirement plans. cational facility bonds as exempt of the Internal Revenue Code of 1986. Sec. 333. Rollovers of after-tax contributions. facility bonds. (c) SECTION 15 NOT TO APPLY.—No amend- Sec. 334. Hardship exception to 60-day rule. Sec. 407. Federal guarantee of school construc- ment made by this Act shall be treated as a Sec. 335. Treatment of forms of distribution. tion bonds by Federal Home Loan change in a rate of tax for purposes of section Sec. 336. Rationalization of restrictions on dis- Banks. 15 of the Internal Revenue Code of 1986. tributions. Sec. 408. Certain educational benefits provided (d) TABLE OF CONTENTS.—The table of con- Sec. 337. Purchase of service credit in govern- by an employer to children of em- tents for this Act is as follows: mental defined benefit plans. ployees excludable from gross in- Sec. 338. Employers may disregard rollovers for Sec. 1. Short title; etc. come as a scholarship. purposes of cash-out amounts. TITLE I—BROAD BASED TAX RELIEF Sec. 339. Inclusion requirements for section 457 TITLE V—HEALTH CARE TAX RELIEF Sec. 101. Reduction of 15 percent individual in- plans. PROVISIONS come tax rate. Subtitle E—Strengthening Pension Security and Sec. 501. Deduction for health and long-term Sec. 102. Increase in maximum taxable income Enforcement care insurance costs of individ- for 14 percent rate bracket. Sec. 341. Repeal of 150 percent of current liabil- uals not participating in em- TITLE II—FAMILY TAX RELIEF ity funding limit. ployer-subsidized health plans. PROVISIONS Sec. 342. Extension of missing participants pro- Sec. 502. Long-term care insurance permitted to Sec. 201. Combined return to which unmarried gram to multiemployer plans. be offered under cafeteria plans rates apply. Sec. 343. Excise tax relief for sound pension and flexible spending arrange- Sec. 202. Marriage penalty relief for earned in- funding. ments. come credit. Sec. 344. Failure to provide notice by defined Sec. 503. Additional personal exemption for tax- Sec. 203. Exclusion for foster care payments to benefit plans significantly reduc- payer caring for elderly family apply to payments by qualified ing future benefit accruals. member in taxpayer’s home. placement agencies. Sec. 345. Protection of investment of employee Sec. 504. Inclusion of certain vaccines against Sec. 204. Modification of dependent care credit. contributions to 401(k) plans. streptococcus pneumoniae to list Sec. 205. Allowance of credit for employer ex- Sec. 346. Treatment of multiemployer plans of taxable vaccines; reduction in penses for child care assistance. under section 415. per dose tax rate. Sec. 206. Modification of alternative minimum Sec. 347. Maximum contribution deduction rules TITLE VI—SMALL BUSINESS TAX RELIEF tax for individuals. modified and applied to all de- PROVISIONS Sec. 207. Long-term capital gains deduction for fined benefit plans. Sec. 601. Deduction for 100 percent of health in- Sec. 348. Increase in section 415 early retirement individuals. surance costs of self-employed in- Sec. 208. Credit for interest on higher education limit for governmental and other dividuals. loans. plans. Sec. 602. Increase in expense treatment for Sec. 209. Elimination of marriage penalty in Subtitle F—Encouraging Retirement Education small businesses. standard deduction. Sec. 351. Periodic pension benefits statements. Sec. 603. Repeal of Federal unemployment sur- Sec. 210. Expansion of adoption credit. Sec. 352. Clarification of treatment of employer- Sec. 211. Modification of tax rates for trusts for tax. provided retirement advice. Sec. 604. Income averaging for farmers and individuals who are disabled. Subtitle G—Reducing Regulatory Burdens fishermen not to increase alter- TITLE III—RETIREMENT SAVINGS TAX native minimum tax liability. RELIEF Sec. 361. Flexibility in nondiscrimination and coverage rules. Sec. 605. Farm, Fishing, and Ranch Risk Man- Subtitle A—Individual Retirement Arrangements Sec. 362. Modification of timing of plan valu- agement Accounts. Sec. 301. Modification of deduction limits for ations. Sec. 606. Exclusion of investment securities in- IRA contributions. Sec. 363. Substantial owner benefits in termi- come from passive income test for Sec. 302. Modification of income limits on con- nated plans. bank S corporations. tributions and rollovers to Roth Sec. 364. ESOP dividends may be reinvested Sec. 607. Treatment of qualifying director IRAs. without loss of dividend deduc- shares. Sec. 303. Deemed IRAs under employer plans. tion. Sec. 608. Increase in estate tax deduction for Sec. 304. Tax credit for matching contributions Sec. 365. Notice and consent period regarding family-owned business interest. to Individual Development Ac- distributions. Sec. 609. Credit for employee health insurance counts. Sec. 366. Repeal of transition rule relating to expenses. Sec. 305. Certain coins not treated as collect- certain highly compensated em- TITLE VII—ESTATE AND GIFT TAX RELIEF ibles. ployees. PROVISIONS Sec. 367. Employees of tax-exempt entities. Subtitle B—Expanding Coverage Subtitle A—Reductions of Estate, Gift, and Sec. 368. Extension to international organiza- Sec. 311. Option to treat elective deferrals as Generation-Skipping Transfer Taxes tions of moratorium on applica- after-tax contributions. Sec. 701. Reductions of estate, gift, and genera- Sec. 312. Increase in elective contribution limits. tion of certain nondiscrimination tion-skipping transfer taxes. Sec. 313. Plan loans for subchapter S owners, rules applicable to State and local Sec. 702. Unified credit against estate and gift partners, and sole proprietors. plans. taxes replaced with unified ex- Sec. 314. Elective deferrals not taken into ac- Sec. 369. Annual report dissemination. emption amount. count for purposes of deduction Sec. 370. Modification of exclusion for employer limits. provided transit passes and pas- Subtitle B—Conservation Easements Sec. 315. Reduced PBGC premium for new plans sengers permitted to utilize other- Sec. 711. Expansion of estate tax rule for con- of small employers. wise empty seats on aircraft. servation easements. Sec. 371. Reporting simplification. Sec. 316. Reduction of additional PBGC pre- Subtitle C—Annual Gift Exclusion mium for new plans. Subtitle H—Plan Amendments Sec. 721. Increase in annual gift exclusion. Sec. 317. Elimination of user fee for requests to Sec. 381. Provisions relating to plan amend- IRS regarding new pension plans. ments. Subtitle D—Simplification of Generation- Sec. 318. SAFE annuities and trusts. Skipping Transfer Tax TITLE IV—EDUCATION TAX RELIEF Sec. 319. Modification of top-heavy rules. PROVISIONS Sec. 731. Retroactive allocation of GST exemp- Subtitle C—Enhancing Fairness for Women tion. Sec. 401. Elimination of 60-month limit and in- Sec. 732. Severing of trusts. Sec. 321. Catchup contributions for individuals crease in income limitation on stu- age 50 or over. Sec. 733. Modification of certain valuation dent loan interest deduction. rules. Sec. 322. Equitable treatment for contributions Sec. 402. Modifications to qualified tuition pro- Sec. 734. Relief provisions. of employees to defined contribu- grams. tion plans. Sec. 403. Exclusion of certain amounts received TITLE VIII—TAX EXEMPT ORGANIZATIONS Sec. 323. Clarification of tax treatment of divi- under the National Health Service PROVISIONS sion of section 457 plan benefits Corps Scholarship Program and Sec. 801. Exemption from income tax for State- upon divorce. the F. Edward Hebert Armed created organizations providing Sec. 324. Modification of safe harbor relief for Forces Health Professions Schol- property and casualty insurance hardship withdrawals from cash arship and Financial Assistance for property for which such cov- or deferred arrangements. Program. erage is otherwise unavailable. Sec. 325. Faster vesting of certain employer Sec. 404. Extension of exclusion for employer- Sec. 802. Modifications to section 512(b)(13). matching contributions. provided educational assistance. Sec. 803. Simplification of lobbying expenditure Subtitle D—Increasing Portability for Sec. 405. Additional increase in arbitrage rebate limitation. Participants exception for governmental bonds Sec. 804. Tax-free distributions from individual Sec. 331. Rollovers allowed among various types used to finance educational facili- retirement accounts for charitable of plans. ties. purposes. August 2, 1999 CONGRESSIONAL RECORD — SENATE S10009 Sec. 805. Mileage reimbursements to charitable Subtitle D—Private Activity Bond Volume Cap Sec. 1129. Sense of Congress regarding the need volunteers excluded from gross in- Sec. 1081. Increase in volume cap on private ac- to encourage improvements in come. tivity bonds. Main Street businesses by expand- Sec. 806. Charitable contribution deduction for Subtitle E—Leasehold Improvements ing existing small business tax ex- certain expenses incurred in sup- Depreciation pensing rules to include invest- port of Native Alaskan subsist- ments in buildings and other de- ence whaling. Sec. 1091. Recovery period for depreciation of preciable real property. Sec. 807. Charitable contributions to certain low certain leasehold improvements. Sec. 1130. Certain Native American housing as- income schools may be made in TITLE XI—MISCELLANEOUS PROVISIONS sistance disregarded in deter- next taxable year. Sec. 1101. Repeal of certain motor fuel excise mining whether building is feder- Sec. 808. Deduction for portion of charitable taxes on fuel used by railroads ally subsidized for purposes of the contributions to be allowed to in- and on inland waterway trans- low-income housing credit. dividuals who do not itemize de- portation. Sec. 1131. Disclosure of tax information to fa- ductions. Sec. 1102. Tax treatment of Alaska Native Set- cilitate combined employment tax Sec. 809. Increase in limit on charitable con- tlement Trusts. reporting. tributions as percentage of AGI. Sec. 1103. Long-term unused credits allowed Sec. 1132. Treatment of maple syrup produc- Sec. 810. Limited exception to excess business against minimum tax. tion. holdings rule. Sec. 1104. 5-year net operating loss carryback Sec. 1133. Treatment of bonds issued to acquire Sec. 811. Certain costs of private foundation in for losses attributable to operating renewable resources on land sub- removing hazardous substances mineral interests of independent ject to conservation easement. treated as qualifying distribution. oil and gas producers. Sec. 1134. Modification of alternative minimum Sec. 812. Holding period reduced to 12 months Sec. 1105. Election to expense geological and tax for individuals. for purposes of determining geophysical expenditures. Sec. 1135. Exclusion from income of severance whether horses are section 1231 Sec. 1106. Election to expense delay rental pay- payment amounts. assets. ments Sec. 1136. Capital gain treatment under section TITLE IX—INTERNATIONAL TAX RELIEF Sec. 1107. Modification of active business defi- 631(b) to apply to outright sales Sec. 901. Interest allocation rules. nition under section 355. by land owner. Sec. 902. Look-thru rules to apply to dividends Sec. 1108. Temporary suspension of maximum Sec. 1137. Credit for clinical testing research ex- from noncontrolled section 902 amount of amortizable reforest- penses attributable to certain corporations. ation expenditures. qualified academic institutions in- Sec. 903. Clarification of treatment of pipeline Sec. 1109. Modification of excise tax imposed on cluding teaching hospitals. transportation income. arrow components. TITLE XII—EXTENSION OF EXPIRED AND Sec. 904. Subpart F treatment of income from Sec. 1110. Increase in threshold for Joint Com- EXPIRING PROVISIONS mittee reports on refunds and transmission of high voltage elec- Sec. 1201. Permanent extension and modifica- tricity. credits. Sec. 1111. Modification of rural airport defini- tion of research credit. Sec. 905. Advance pricing agreements treated as Sec. 1202. Subpart F exemption for active fi- confidential taxpayer informa- tion. Sec. 1112. Payment of dividends on stock of co- nancing income. tion. Sec. 1203. Taxable income limit on percentage Sec. 906. Airline mileage awards to certain for- operatives without reducing pa- depletion for marginal produc- eign persons. tronage dividends. tion. Sec. 907. Repeal of foreign tax credit limitation Sec. 1113. Consolidation of life insurance com- Sec. 1204. Work opportunity credit and welfare- under alternative minimum tax. panies with other corporations. to-work credit. Sec. 908. Treatment of military property of for- Sec. 1114. Expansion of exemption from per- Sec. 1205. Extension and modification of credit eign sales corporations. sonal holding company tax for lending or finance companies. for producing electricity from cer- TITLE X—HOUSING AND REAL ESTATE tain renewable resources. TAX RELIEF PROVISIONS Sec. 1115. Credit for modifications to inter-city buses required under the Ameri- Sec. 1206. Alaska exemption from dyeing re- Subtitle A—Low-Income Housing Credit cans With Disabilities Act of 1990. quirements. Sec. 1001. Modification of State ceiling on low- Sec. 1116. Increased deductibility of business Sec. 1207. Extension of expensing of environ- income housing credit. meal expenses for individuals sub- mental remediation costs. Subtitle B—Historic Homes ject to Federal limitations on TITLE XIII—REVENUE OFFSETS Sec. 1011. Tax credit for renovating historic hours of service. Subtitle A—General Provisions homes. Sec. 1117. Tax-exempt financing of qualified Sec. 1301. Modification to foreign tax credit Subtitle C—Provisions Relating to Real Estate highway infrastructure construc- carryback and carryover periods. Investment Trusts tion. Sec. 1302. Returns relating to cancellations of Sec. 1118. Expansion of DC homebuyer tax PART I—TREATMENT OF INCOME AND SERVICES indebtedness by organizations credit. lending money. PROVIDED BY TAXABLE REIT SUBSIDIARIES Sec. 1119. Extension of DC zero percent capital Sec. 1021. Modifications to asset diversification Sec. 1303. Increase in elective withholding rate gains rate. for nonperiodic distributions from test. Sec. 1120. Natural gas gathering lines treated as deferred compensation plans. Sec. 1022. Treatment of income and services 7-year property. Sec. 1304. Extension of Internal Revenue Serv- provided by taxable REIT subsidi- Sec. 1121. Exemption from ticket taxes for cer- ice user fees. aries. tain transportation provided by Sec. 1305. Transfer of excess defined benefit Sec. 1023. Taxable REIT subsidiary. small seaplanes. plan assets for retiree health ben- Sec. 1024. Limitation on earnings stripping. Sec. 1122. No Federal income tax on amounts efits. Sec. 1025. 100 percent tax on improperly allo- and lands received by Holocaust Sec. 1306. Tax treatment of income and loss on cated amounts. victims or their heirs. derivatives. Sec. 1026. Effective date. Sec. 1123. 2-Percent floor on miscellaneous PART II—HEALTH CARE REITS itemized deductions not to apply Subtitle B—Loophole Closers Sec. 1031. Health care REITs. to qualified professional develop- Sec. 1311. Limitation on use of non-accrual ex- ment expenses and qualified inci- perience method of accounting. PART III—CONFORMITY WITH REGULATED dental expenses of elementary and Sec. 1312. Limitations on welfare benefit funds INVESTMENT COMPANY RULES secondary school teachers. of 10 or more employer plans. Sec. 1041. Conformity with regulated investment Sec. 1124. Expansion of deduction for computer Sec. 1313. Modification of installment method company rules. donations to schools. and repeal of installment method PART IV—CLARIFICATION OF EXCEPTION FROM Sec. 1125. Credit for computer donations to for accrual method taxpayers. IMPERMISSIBLE TENANT SERVICE INCOME schools and senior centers. Sec. 1314. Treatment of gain from constructive Sec. 1051. Clarification of exception for inde- Sec. 1126. Increase in mandatory spending for ownership transactions. pendent operators. Child Care and Development Sec. 1315. Charitable split-dollar life insurance, PART V—MODIFICATION OF EARNINGS AND Block Grant. annuity, and endowment con- PROFITS RULES Sec. 1127. Sense of the Senate regarding savings tracts. incentives. Sec. 1316. Restriction on use of real estate in- Sec. 1061. Modification of earnings and profits Sec. 1128. Sense of Congress regarding the need vestment trusts to avoid estimated rules. for additional Federal funding tax payment requirements. PART VI—STUDY RELATING TO TAXABLE REIT and tax incentives for empower- Sec. 1317. Prohibited allocations of S corpora- SUBSIDIARIES ment zones and enterprise commu- tion stock held by an ESOP. Sec. 1071. Study relating to taxable REIT sub- nities authorized and designated Sec. 1318. Modification of anti-abuse rules re- sidiaries. pursuant to 1997 and 1998 laws. lated to assumption of liability. S10010 CONGRESSIONAL RECORD — SENATE August 2, 1999 Sec. 1319. Allocation of basis on transfers of in- Applicable ‘‘(A) the numerator of which is such spouse’s tangibles in certain nonrecogni- ‘‘Calendar year: dollar amount: adjusted gross income, and tion transactions. 2006 ...... $4,000 ‘‘(B) the denominator of which is the com- Sec. 1320. Controlled entities ineligible for REIT 2007 and thereafter ...... $5,000. bined adjusted gross incomes of the 2 spouses. status. ‘‘(ii) OTHER TABLES.—In the case of the table Any fraction determined under paragraph (7) Sec. 1321. Distributions to a corporate partner contained in subsection (b), (c), or (d)— shall be rounded to the nearest percentage of stock in another corporation. Applicable point. TITLE XIV—TECHNICAL CORRECTIONS ‘‘Calendar year: dollar amount: ‘‘(d) TREATMENT OF CREDITS.—Credits shall be Sec. 1401. Amendments related to Tax and 2006 ...... $2,000 determined (and applied against the joint liabil- 2007 and thereafter ...... $2,500. Trade Relief Extension Act of ity of the couple for tax determined under this ‘‘(B) COST-OF-LIVING ADJUSTMENT.—In the 1998. section) as if the spouses had filed a joint re- case of any taxable year beginning in any cal- Sec. 1402. Amendments related to Internal Rev- turn. endar year after 2007, the applicable dollar enue Service Restructuring and ‘‘(e) TREATMENT AS JOINT RETURN.—Except as amount shall be increased by an amount equal Reform Act of 1998. otherwise provided in this section or in the regu- Sec. 1403. Amendments related to Taxpayer Re- to— lations prescribed hereunder, for purposes of lief Act of 1997. ‘‘(i) such dollar amount, multiplied by this title (other than sections 1 and 63(c)) a com- Sec. 1404. Other technical corrections. ‘‘(ii) the cost-of living adjustment determined bined return under this section shall be treated Sec. 1405. Clerical changes. under paragraph (3) for the calendar year in as a joint return. Sec. 1406. Technical corrections to Saver Act. which the taxable year begins, determined by ‘‘(f) REGULATIONS.—The Secretary shall pre- TITLE XV—COMPLIANCE WITH substituting ‘calendar year 2006’ for ‘calendar scribe such regulations as may be necessary or CONGRESSIONAL BUDGET ACT year 1992’ in subparagraph (B) thereof.’’. appropriate to carry out this section.’’. (b) ROUNDING.—Section 1(f)(6)(A) is amended (b) UNMARRIED RATE MADE APPLICABLE.—So Sec. 1501. Sunset of provisions of Act. by inserting ‘‘(after being increased under para- much of subsection (c) of section 1 as precedes TITLE I—BROAD BASED TAX RELIEF graph (2)(B))’’ after ‘‘paragraph (2)(A)’’. the table is amended to read as follows: SEC. 101. REDUCTION OF 15 PERCENT INDI- TITLE II—FAMILY TAX RELIEF ‘‘(c) SEPARATE OR UNMARRIED RETURN VIDUAL INCOME TAX RATE. PROVISIONS RATE.—There is hereby imposed on the taxable (a) REDUCTION IN RATE.—Subsection (f) of income of every individual (other than a mar- SEC. 201. COMBINED RETURN TO WHICH UNMAR- section 1 is amended by adding at the end the RIED RATES APPLY. ried individual (as defined in section 7703) filing following new paragraph: (a) IN GENERAL.—Subpart B of part II of sub- a return which is not a combined return under ATE REDUCTION.—In prescribing the ta- ‘‘(8) R chapter A of chapter 61 (relating to income tax section 6013A, a surviving spouse as defined in bles under paragraph (1) which apply with re- returns) is amended by inserting after section section 2(a), or a head of household as defined spect to taxable years beginning in a calendar 6013 the following new section: in section 2(b)) a tax determined in accordance year after 2000, the rate applicable to the lowest with the following table:’’. income bracket shall be 14 percent.’’. ‘‘SEC. 6013A. COMBINED RETURN WITH SEPARATE RATES. (c) BASIC STANDARD DEDUCTION FOR UNMAR- (b) CONFORMING AMENDMENTS.— RIED INDIVIDUALS MADE APPLICABLE.—Subpara- ‘‘(a) GENERAL RULE.—A husband and wife (1) Subparagraph (B) of section 1(f)(2) is graph (C) of section 63(c)(2) is amended to read amended by inserting ‘‘, except as provided in may make a combined return of income taxes under subtitle A under which— as follows: paragraph (8),’’ before ‘‘by not changing’’. ‘‘(C) $3,000 in the case of an individual other (2) Subparagraph (C) of section 1(f)(2) is ‘‘(1) a separate taxable income is determined for each spouse by applying the rules provided than— amended by inserting ‘‘and the reduction under ‘‘(i) a married individual filing a return which paragraph (8) in the rate of tax’’ before the pe- in this section, and ‘‘(2) the tax imposed by section 1 is the aggre- is not a combined return under section 6013A, riod. ‘‘(ii) a surviving spouse, or gate amount resulting from applying the sepa- (3) The heading for subsection (f) of section 1 ‘‘(iii) a head of household, or’’. rate rates set forth in section 1(c) to each such is amended by inserting ‘‘RATE REDUCTION;’’ be- (d) CLERICAL AMENDMENT.—The table of sec- taxable income. fore ‘‘ADJUSTMENTS’’. tions for subpart B of part II of subchapter A of ‘‘(b) TREATMENT OF INCOME.—For purposes of (4) Section 1(g)(7)(B)(ii)(II) is amended by chapter 61 is amended by inserting after the item this section— striking ‘‘15 percent’’ and inserting ‘‘14 per- relating to section 6013 the following: cent’’. ‘‘(1) earned income (within the meaning of (5) Section 3402(p)(1)(B) is amended by strik- section 911(d)), and any income received as a ‘‘Sec. 6013A. Combined return with separate ing ‘‘15’’ and inserting ‘‘14’’. pension or annuity which arises from an em- rates.’’. (6) Section 3402(p)(2) is amended by striking ployer-employee relationship, shall be treated as (e) EFFECTIVE DATE.—The amendments made ‘‘15 percent’’ and inserting ‘‘14 percent’’. the income of the spouse who rendered the serv- by this section shall apply to taxable years be- (c) EFFECTIVE DATE.—The amendments made ices, and ginning after December 31, 2004. by this section shall apply to taxable years be- ‘‘(2) income from property shall be divided be- SEC. 202. MARRIAGE PENALTY RELIEF FOR ginning after December 31, 2000. tween the spouses in accordance with their re- EARNED INCOME CREDIT. SEC. 102. INCREASE IN MAXIMUM TAXABLE IN- spective ownership rights in such property (a) IN GENERAL.—Paragraph (2) of section COME FOR 14 PERCENT RATE BRACK- (equally in the case of property held jointly by 32(b) (relating to percentages and amounts) is ET. the spouses). amended— (a) IN GENERAL.—Section 1(f) (relating to ad- ‘‘(c) TREATMENT OF DEDUCTIONS.—For pur- (1) by striking ‘‘AMOUNTS.—The earned’’ and justments in tax tables so that inflation will not poses of this section— inserting ‘‘AMOUNTS.— result in tax increases), as amended by section ‘‘(1) except as otherwise provided in this sub- ‘‘(A) IN GENERAL.—Subject to subparagraph 101, is amended— section, the deductions described in section 62(a) (B), the earned’’, and (1) in paragraph (2)— shall be allowed to the spouse treated as having (2) by adding at the end the following new (A) by redesignating subparagraphs (B) and the income to which such deductions relate, subparagraph: (C) as subparagraphs (C) and (D), ‘‘(2) the deduction for retirement savings de- ‘‘(B) JOINT RETURNS.—In the case of a joint (B) by inserting after subparagraph (A) the scribed in paragraph (7) of section 62(a) shall be return, the phaseout amount determined under following: allowed to the spouse whose earned income subparagraph (A) shall be increased by $2,000.’’. ‘‘(B) in the case of the tables contained in qualified the savings for the deduction, (b) INFLATION ADJUSTMENT.—Paragraph (1)(B) subsections (a), (b), (c), and (d), by increasing ‘‘(3) the deduction for alimony described in of section 32(j) (relating to inflation adjust- (after adjustment under paragraph (8)) the max- paragraph (10) of section 62(a) shall be allowed ments) is amended to read as follows: imum taxable income level for the 14 percent to the spouse who has the liability to pay the al- ‘‘(B) the cost-of-living adjustment determined rate bracket and the minimum taxable income imony, under section 1(f)(3) for the calendar year in level for the 28 percent rate bracket otherwise ‘‘(4) the deduction described in paragraph (16) which the taxable year begins, determined— determined under subparagraph (A) for taxable of section 62(a) (relating to contributions to ‘‘(i) in the case of amounts in subsections years beginning in any calendar year after 2005 medical savings accounts) shall be allowed to (b)(1)(A) and (i)(1), by substituting ‘calendar by the applicable dollar amount for such cal- the spouse with respect to whose employment or year 1995’ for ‘calendar year 1992’ in subpara- endar year,’’, and self-employment such account relates, graph (B) thereof, and (C) by striking ‘‘subparagraph (A)’’ in sub- ‘‘(5) the deductions allowable by section 151(b) ‘‘(ii) in the case of the $2,000 amount in sub- paragraph (C) (as so redesignated) and inserting (relating to personal exemptions for taxpayer section (b)(1)(B), by substituting ‘calendar year ‘‘subparagraphs (A) and (B)’’, and and spouse) shall be determined by allocating 1 2004’ for ‘calendar year 1992’ in subparagraph (2) by adding at the end the following: personal exemption to each spouse, (B) of such section 1.’’. ‘‘(9) APPLICABLE DOLLAR AMOUNT.—For pur- ‘‘(6) section 63 shall be applied as if such (c) ROUNDING.—Section 32(j)(2)(A) (relating to poses of paragraph (2)(B)— spouses were not married, except that the elec- rounding) is amended by striking ‘‘subsection ‘‘(A) IN GENERAL.—The applicable dollar tion whether or not to itemize deductions shall (b)(2)’’ and inserting ‘‘subsection (b)(2)(A) (after amount for any calendar year shall be deter- be made jointly by both spouses and apply to being increased under subparagraph (B) there- mined as follows: each, and of)’’. ‘‘(i) JOINT RETURNS AND SURVIVING SPOUSES.— ‘‘(7) each spouse’s share of all other deduc- (d) EFFECTIVE DATE.—The amendments made In the case of the table contained in subsection tions shall be determined by multiplying the ag- by this section shall apply to taxable years be- (a)— gregate amount thereof by the fraction— ginning after December 31, 2004. August 2, 1999 CONGRESSIONAL RECORD — SENATE S10011 SEC. 203. EXCLUSION FOR FOSTER CARE PAY- substituting ‘calendar year 1999’ for ‘calendar penditure’ shall not include any amount to the MENTS TO APPLY TO PAYMENTS BY year 1992’ in subparagraph (B) thereof. extent such amount is funded by any grant, QUALIFIED PLACEMENT AGENCIES. ‘‘(B) ROUNDING RULES.—If any amount after contract, or otherwise by another person (or any (a) IN GENERAL.—The matter preceding sub- adjustment under subparagraph (A) is not a governmental entity). paragraph (B) of section 131(b)(1) (defining multiple of $50, such amount shall be rounded to ‘‘(C) NONDISCRIMINATION.—The term ‘quali- qualified foster care payment) is amended to the next lower multiple of $50.’’. fied child care expenditure’ shall not include read as follows: (c) MINIMUM DEPENDENT CARE CREDIT AL- any amount expended in relation to any child ‘‘(1) IN GENERAL.—The term ‘qualified foster LOWED FOR STAY-AT-HOME PARENTS.—Section care services unless the providing of such serv- care payment’ means any payment made pursu- 21(e) (relating to special rules) is amended by ices to employees of the taxpayer does not dis- ant to a foster care program of a State or polit- adding at the end the following: criminate in favor of highly compensated em- ical subdivision thereof— ‘‘(11) MINIMUM CREDIT ALLOWED FOR STAY-AT- ployees (within the meaning of section 404(q)). ‘‘(A) which is paid by— HOME PARENTS.— ‘‘(2) QUALIFIED CHILD CARE FACILITY.— ‘‘(i) the State or political subdivision thereof, ‘‘(A) IN GENERAL.—Notwithstanding sub- ‘‘(A) IN GENERAL.—The term ‘qualified child or section (d), in the case of any taxpayer with 1 care facility’ means a facility— ‘‘(ii) a qualified foster care placement agency or more qualifying individuals described in sub- ‘‘(i) the principal use of which is to provide of such State or political subdivision, and’’. section (b)(1)(A) under the age of 1, such tax- child care assistance, and (b) QUALIFIED FOSTER INDIVIDUALS TO IN- payer shall be deemed to have employment-re- ‘‘(ii) which meets the requirements of all ap- CLUDE INDIVIDUALS PLACED BY QUALIFIED lated expenses for the taxable year with respect plicable laws and regulations of the State or PLACEMENT AGENCIES.—Subparagraph (B) of to each such qualifying individual in an amount local government in which it is located, includ- section 131(b)(2) (defining qualified foster indi- equal to the sum of— ing, but not limited to, the licensing of the facil- vidual) is amended to read as follows: ‘‘(i) $200 for each month in such taxable year ity as a child care facility. ‘‘(B) a qualified foster care placement agen- during which such qualifying individual is Clause (i) shall not apply to a facility which is cy.’’. under the age of 1, and the principal residence (within the meaning of (c) QUALIFIED FOSTER CARE PLACEMENT ‘‘(ii) the amount of employment-related ex- section 121) of the operator of the facility. AGENCY DEFINED.—Subsection (b) of section 131 penses otherwise incurred for such qualifying ‘‘(B) ELIGIBLE QUALIFIED CHILD CARE FACIL- is amended by redesignating paragraph (3) as individual for the taxable year (determined ITY.—A qualified child care facility shall be paragraph (4) and by inserting after paragraph under this section without regard to this para- treated as an eligible qualified child care facility (2) the following new paragraph: graph). with respect to the taxpayer if— ‘‘(3) QUALIFIED FOSTER CARE PLACEMENT ‘‘(B) ELECTION TO NOT APPLY THIS PARA- ‘‘(i) enrollment in the facility is open to em- AGENCY.—The term ‘qualified foster care place- GRAPH.—This paragraph shall not apply with ployees of the taxpayer during the taxable year, ment agency’ means any placement agency respect to any qualifying individual for any tax- ‘‘(ii) the facility is not the principal trade or which is licensed or certified by— able year if the taxpayer elects to not have this business of the taxpayer, and ‘‘(A) a State or political subdivision thereof, paragraph apply to such qualifying individual ‘‘(iii) at least 30 percent of the enrollees of or for such taxable year.’’. such facility are dependents of employees of the ‘‘(B) an entity designated by a State or polit- (d) EFFECTIVE DATE.—The amendments made taxpayer. ical subdivision thereof, by this section shall apply to taxable years be- ‘‘(C) APPLICATION OF SUBPARAGRAPH (B).—In to make foster care payments under the foster ginning after December 31, 2000. the case of a new facility, the facility shall be care program of such State or political subdivi- SEC. 205. ALLOWANCE OF CREDIT FOR EMPLOYER treated as meeting the requirement of subpara- sion to providers of foster care.’’. EXPENSES FOR CHILD CARE ASSIST- graph (B)(iii) if not later than 2 years after ANCE. (d) EFFECTIVE DATE.—The amendments made placing such facility in service at least 30 per- by this section shall apply to taxable years be- (a) IN GENERAL.—Subpart D of part IV of sub- cent of the enrollees of such facility are depend- ginning after December 31, 1999. chapter A of chapter 1 (relating to business re- ents of employees of the taxpayer. lated credits) is amended by adding at the end ‘‘(3) QUALIFIED CHILD CARE RESOURCE AND RE- SEC. 204. MODIFICATION OF DEPENDENT CARE the following new section: CREDIT. FERRAL EXPENDITURE.— ‘‘SEC. 45D. EMPLOYER-PROVIDED CHILD CARE ‘‘(A) IN GENERAL.—The term ‘qualified child (a) INCREASE IN PERCENTAGE OF EMPLOYMENT- CREDIT. care resource and referral expenditure’ means RELATED EXPENSES TAKEN INTO ACCOUNT.— ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of Subsection (a)(2) of section 21 (relating to ex- any amount paid or incurred under a contract section 38, the employer-provided child care penses for household and dependent care serv- to provide child care resource and referral serv- credit determined under this section for the tax- ices necessary for gainful employment) is ices to employees of the taxpayer. able year is an amount equal to the sum of— ‘‘(B) EXCLUSION FOR AMOUNTS FUNDED BY amended— ‘‘(1) 25 percent of the qualified child care ex- GRANTS, ETC.—The term ‘qualified child care re- (1) by striking ‘‘30 percent’’ and inserting ‘‘40 penditures, and source and referral expenditure’ shall not in- percent’’, ‘‘(2) 10 percent of the qualified child care re- clude any amount to the extent such amount is (2) by striking ‘‘$2,000’’ and inserting source and referral expenditures, funded by any grant, contract, or otherwise by ‘‘$1,000’’, and another person (or any governmental entity). (3) by striking ‘‘$10,000’’ and inserting of the taxpayer for such taxable year. ‘‘(C) NONDISCRIMINATION.—The term ‘quali- ‘‘$30,000’’. ‘‘(b) DOLLAR LIMITATION.—The credit allow- able under subsection (a) for any taxable year fied child care resource and referral expendi- (b) INDEXING OF LIMIT ON EMPLOYMENT-RE- shall not exceed $150,000. ture’ shall not include any amount expended in LATED EXPENSES.—Section 21(c) (relating to dol- relation to any child care resource and referral lar limit on amount creditable) is amended to ‘‘(c) DEFINITIONS.—For purposes of this services unless the providing of such services to read as follows: section— ‘‘(1) QUALIFIED CHILD CARE EXPENDITURE.— employees of the taxpayer does not discriminate ‘‘(c) DOLLAR LIMIT ON AMOUNT CRED- ‘‘(A) IN GENERAL.—The term ‘qualified child in favor of highly compensated employees (with- ITABLE.— care expenditure’ means any amount paid or in the meaning of section 404(q)). ‘‘(1) IN GENERAL.—The amount of the employ- incurred— ‘‘(d) RECAPTURE OF ACQUISITION AND CON- ment-related expenses incurred during any tax- ‘‘(i) to acquire, construct, rehabilitate, or ex- STRUCTION CREDIT.— able year which may be taken into account pand property— ‘‘(1) IN GENERAL.—If, as of the close of any under subsection (a) shall not exceed— ‘‘(I) which is to be used as part of an eligible taxable year, there is a recapture event with re- ‘‘(A) an amount equal to 50 percent of the qualified child care facility of the taxpayer, spect to any eligible qualified child care facility amount determined under subparagraph (B) if ‘‘(II) with respect to which a deduction for de- of the taxpayer, then the tax of the taxpayer there is 1 qualifying individual with respect to preciation (or amortization in lieu of deprecia- under this chapter for such taxable year shall the taxpayer for such taxable year, or tion) is allowable, and be increased by an amount equal to the product ‘‘(B) $4,800 if there are 2 or more qualifying ‘‘(III) which does not constitute part of the of— individuals with respect to the taxpayer for principal residence (within the meaning of sec- ‘‘(A) the applicable recapture percentage, and such taxable year. tion 121) of the taxpayer or any employee of the ‘‘(B) the aggregate decrease in the credits al- The amount determined under subparagraph taxpayer, lowed under section 38 for all prior taxable (A) or (B) (whichever is applicable) shall be re- ‘‘(ii) for the operating costs of an eligible years which would have resulted if the qualified duced by the aggregate amount excludable from qualified child care facility of the taxpayer, in- child care expenditures of the taxpayer de- gross income under section 129 for the taxable cluding costs related to the training of employ- scribed in subsection (c)(1)(A) with respect to year. ees of the child care facility, to scholarship pro- such facility had been zero. ‘‘(2) COST-OF-LIVING ADJUSTMENT.— grams, to the providing of differential com- ‘‘(2) APPLICABLE RECAPTURE PERCENTAGE.— ‘‘(A) IN GENERAL.—In the case of a taxable pensation to employees based on level of child ‘‘(A) IN GENERAL.—For purposes of this sub- year beginning after 2000, the $4,800 amount care training, and to expenses associated with section, the applicable recapture percentage under paragraph (1)(B) shall be increased by an achieving accreditation, or shall be determined from the following table: amount equal to— ‘‘(iii) under a contract with a qualified child The applicable ‘‘(i) such dollar amount, multiplied by care facility to provide child care services to em- recapture ‘‘(ii) the cost-of-living adjustment determined ployees of the taxpayer. ‘‘If the recapture event percentage is: under section 1(f)(3) for the calendar year in ‘‘(B) EXCLUSION FOR AMOUNTS FUNDED BY occurs in: which the taxable year begins, determined by GRANTS, ETC.—The term ‘qualified child care ex- Year 1 ...... 100 S10012 CONGRESSIONAL RECORD — SENATE August 2, 1999

Year 2 ...... 80 ‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No de- other taxpayer for a taxable year beginning in Year 3 ...... 60 duction or credit shall be allowed under any the calendar year in which such individual’s Year 4 ...... 40 other provision of this chapter with respect to taxable year begins, Year 5 ...... 20 the amount of the credit determined under this ‘‘(2) a married individual (within the meaning Years 6 and thereafter ... 0. section.’’. of section 7703) filing a separate return for the ‘‘(B) YEARS.—For purposes of subparagraph (b) CONFORMING AMENDMENTS.— taxable year, or (A), year 1 shall begin on the first day of the (1) Section 38(b) is amended— ‘‘(3) an estate or trust. taxable year in which the eligible qualified child (A) by striking out ‘‘plus’’ at the end of para- ‘‘(e) SPECIAL RULE FOR PASS-THRU ENTI- care facility is placed in service by the taxpayer. graph (11), TIES.— ‘‘(3) RECAPTURE EVENT DEFINED.—For pur- (B) by striking out the period at the end of ‘‘(1) IN GENERAL.—In applying this section poses of this subsection, the term ‘recapture paragraph (12), and inserting a comma and with respect to any pass-thru entity, the deter- event’ means— ‘‘plus’’, and mination of when the sale or exchange occurs ‘‘(A) CESSATION OF OPERATION.—The cessation (C) by adding at the end the following new shall be made at the entity level. of the operation of the facility as an eligible paragraph: ‘‘(2) PASS-THRU ENTITY DEFINED.—For pur- qualified child care facility. ‘‘(13) the employer-provided child care credit poses of paragraph (1), the term ‘pass-thru enti- ‘‘(B) CHANGE IN OWNERSHIP.— determined under section 45D.’’. ty’ means— ‘‘(i) IN GENERAL.—Except as provided in (2) The table of sections for subpart D of part ‘‘(A) a regulated investment company, clause (ii), the disposition of a taxpayer’s inter- IV of subchapter A of chapter 1 is amended by ‘‘(B) a real estate investment trust, est in an eligible qualified child care facility adding at the end the following new item: ‘‘(C) an S corporation, with respect to which the credit described in ‘‘Sec. 45D. Employer-provided child care cred- ‘‘(D) a partnership, subsection (a) was allowable. it.’’. ‘‘(E) an estate or trust, and ‘‘(ii) AGREEMENT TO ASSUME RECAPTURE LI- (c) EFFECTIVE DATE.—The amendments made ‘‘(F) a common trust fund.’’. ABILITY.—Clause (i) shall not apply if the per- by this section shall apply to taxable years be- (b) COORDINATION WITH MAXIMUM CAPITAL son acquiring such interest in the facility agrees ginning after December 31, 2000. GAINS RATE.—Paragraph (3) of section 1(h) (re- in writing to assume the recapture liability of lating to maximum capital gains rate) is amend- the person disposing of such interest in effect SEC. 206. MODIFICATION OF ALTERNATIVE MIN- IMUM TAX FOR INDIVIDUALS. ed to read as follows: immediately before such disposition. In the ‘‘(3) COORDINATION WITH OTHER PROVISIONS.— (a) NONREFUNDABLE PERSONAL CREDITS event of such an assumption, the person acquir- For purposes of this subsection, the amount of FULLY ALLOWED AGAINST REGULAR TAX LIABIL- ing the interest in the facility shall be treated as the net capital gain shall be reduced (but not ITY.— the taxpayer for purposes of assessing any re- (1) IN GENERAL.—Subsection (a) of section 26 below zero) by the sum of— capture liability (computed as if there had been (relating to limitation based on amount of tax) ‘‘(A) the amount of the net capital gain taken no change in ownership). is amended to read as follows: into account under section 1202(a) for the tax- ‘‘(4) SPECIAL RULES.— ‘‘(a) LIMITATION BASED ON AMOUNT OF TAX.— able year, plus ‘‘(A) TAX BENEFIT RULE.—The tax for the tax- The aggregate amount of credits allowed by this ‘‘(B) the amount which the taxpayer elects to able year shall be increased under paragraph (1) subpart for the taxable year shall not exceed the take into account as investment income for the only with respect to credits allowed by reason of taxpayer’s regular tax liability for the taxable taxable year under section 163(d)(4)(B)(iii).’’. this section which were used to reduce tax li- year.’’. (c) DEDUCTION ALLOWABLE IN COMPUTING AD- ability. In the case of credits not so used to re- (2) CHILD CREDIT.—Subsection (d) of section JUSTED GROSS INCOME.—Subsection (a) of sec- duce tax liability, the carryforwards and 24 is amended by striking paragraph (2) and by tion 62 (defining adjusted gross income) is carrybacks under section 39 shall be appro- redesignating paragraph (3) as paragraph (2). amended by inserting after paragraph (17) the priately adjusted. (3) EFFECTIVE DATE.—The amendments made following new paragraph: ‘‘(B) NO CREDITS AGAINST TAX.—Any increase by this subsection shall apply to taxable years ‘‘(18) LONG-TERM CAPITAL GAINS.—The deduc- in tax under this subsection shall not be treated beginning after December 31, 1998. tion allowed by section 1202.’’. as a tax imposed by this chapter for purposes of (b) PERSONAL EXEMPTIONS ALLOWED IN COM- (d) TREATMENT OF COLLECTIBLES.— determining the amount of any credit under PUTING MINIMUM TAX.— (1) IN GENERAL.—Section 1222 (relating to subpart A, B, or D of this part. (1) IN GENERAL.—Subparagraph (E) of section other terms relating to capital gains and losses) ‘‘(C) NO RECAPTURE BY REASON OF CASUALTY 56(b)(1) is amended to read as follows: is amended by inserting after paragraph (11) the LOSS.—The increase in tax under this subsection ‘‘(E) SPECIAL RULE FOR CERTAIN DEDUC- following new paragraph: shall not apply to a cessation of operation of the TIONS.—The standard deduction under section ‘‘(12) SPECIAL RULE FOR COLLECTIBLES.— facility as a qualified child care facility by rea- 63(c) shall not be allowed and the deduction for ‘‘(A) IN GENERAL.—Any gain or loss from the son of a casualty loss to the extent such loss is personal exemptions under section 151 and the sale or exchange of a collectible shall be treated restored by reconstruction or replacement within deduction under section 642(b) shall each be al- as a short-term capital gain or loss (as the case a reasonable period established by the Sec- lowed, but shall each be reduced by $250.’’. may be), without regard to the period such asset retary. (2) EFFECTIVE DATE.—The amendments made was held. The preceding sentence shall apply ‘‘(e) SPECIAL RULES.—For purposes of this by this subsection shall apply to taxable years only to the extent the gain or loss is taken into section— beginning after December 31, 2005. account in computing taxable income. ‘‘(1) AGGREGATION RULES.—All persons which SEC. 207. LONG-TERM CAPITAL GAINS DEDUC- ‘‘(B) TREATMENT OF CERTAIN SALES OF INTER- are treated as a single employer under sub- TION FOR INDIVIDUALS. EST IN PARTNERSHIP, ETC.—For purposes of sub- sections (a) and (b) of section 52 shall be treated (a) GENERAL RULE.—Part I of subchapter P of paragraph (A), any gain from the sale or ex- as a single taxpayer. chapter 1 (relating to treatment of capital gains) change of an interest in a partnership, S cor- ‘‘(2) PASS-THRU IN THE CASE OF ESTATES AND is amended by redesignating section 1202 as sec- poration, or trust which is attributable to unre- TRUSTS.—Under regulations prescribed by the tion 1203 and by inserting after section 1201 the alized appreciation in the value of collectibles Secretary, rules similar to the rules of subsection following new section: held by such entity shall be treated as gain from (d) of section 52 shall apply. ‘‘SEC. 1202. CAPITAL GAINS DEDUCTION FOR IN- the sale or exchange of a collectible. Rules simi- ‘‘(3) ALLOCATION IN THE CASE OF PARTNER- DIVIDUALS. lar to the rules of section 751(f) shall apply for SHIPS.—In the case of partnerships, the credit ‘‘(a) IN GENERAL.—In the case of an indi- purposes of the preceding sentence. shall be allocated among partners under regula- vidual, there shall be allowed as a deduction for ‘‘(C) COLLECTIBLE.—For purposes of this tions prescribed by the Secretary. the taxable year an amount equal to the lesser paragraph, the term ‘collectible’ means any cap- ‘‘(f) NO DOUBLE BENEFIT.— of— ital asset which is a collectible (as defined in ‘‘(1) REDUCTION IN BASIS.—For purposes of ‘‘(1) the net capital gain of the taxpayer for section 408(m) without regard to paragraph (3) this subtitle— the taxable year, or thereof).’’. ‘‘(A) IN GENERAL.—If a credit is determined ‘‘(2) $1,000. (2) CHARITABLE DEDUCTION NOT AFFECTED.— under this section with respect to any property ‘‘(b) SALES BETWEEN RELATED PARTIES.— (A) Paragraph (1) of section 170(e) is amended by reason of expenditures described in sub- Gains from sales and exchanges to any related by adding at the end the following new sen- section (c)(1)(A), the basis of such property shall person (within the meaning of section 267(b) or tence: ‘‘For purposes of this paragraph, section be reduced by the amount of the credit so deter- 707(b)(1)) shall not be taken into account in de- 1222 shall be applied without regard to para- mined. termining net capital gain. graph (12) thereof (relating to special rule for ‘‘(B) CERTAIN DISPOSITIONS.—If during any ‘‘(c) SPECIAL RULE FOR SECTION 1250 PROP- collectibles).’’. taxable year there is a recapture amount deter- ERTY.—Solely for purposes of this section, in ap- (B) Clause (iv) of section 170(b)(1)(C) is mined with respect to any property the basis of plying section 1250 to any disposition of section amended by inserting before the period at the which was reduced under subparagraph (A), the 1250 property, all depreciation adjustments in end the following: ‘‘and section 1222 shall be ap- basis of such property (immediately before the respect of the property shall be treated as addi- plied without regard to paragraph (12) thereof event resulting in such recapture) shall be in- tional depreciation. (relating to special rule for collectibles)’’. creased by an amount equal to such recapture ‘‘(d) SECTION NOT TO APPLY TO CERTAIN TAX- (e) CONFORMING AMENDMENTS.— amount. For purposes of the preceding sentence, PAYERS.—No deduction shall be allowed under (1) Section 57(a)(7) is amended by striking the term ‘recapture amount’ means any increase this section to— ‘‘1202’’ and inserting ‘‘1203’’. in tax (or adjustment in carrybacks or ‘‘(1) an individual with respect to whom a de- (2) Clause (iii) of section 163(d)(4)(B) is carryovers) determined under subsection (d). duction under section 151 is allowable to an- amended to read as follows: August 2, 1999 CONGRESSIONAL RECORD — SENATE S10013

‘‘(iii) the sum of— zero) by the amount which bears the same ratio ‘‘(7) PHASE-IN OF INCREASE IN BASIC STANDARD ‘‘(I) the portion of the net capital gain re- to the amount which would be so allowable as DEDUCTION.—In the case of taxable years begin- ferred to in clause (ii)(II) (or, if lesser, the net such excess bears to $20,000. ning before January 1, 2008— capital gain referred to in clause (ii)(I)) taken ‘‘(B) MODIFIED ADJUSTED GROSS INCOME.—The ‘‘(A) paragraph (2)(A) shall be applied by sub- into account under section 1202, reduced by the term ‘modified adjusted gross income’ means ad- stituting for ‘twice’— amount of the deduction allowed with respect to justed gross income determined without regard ‘‘(i) ‘1.671 times’ in the case of taxable years such gain under section 1202, plus to sections 911, 931, and 933. beginning during 2001, ‘‘(II) so much of the gain described in sub- ‘‘(C) INFLATION ADJUSTMENT.—In the case of ‘‘(ii) ‘1.70 times’ in the case of taxable years clause (I) which is not taken into account under any taxable year beginning after 2005, the beginning during 2002, section 1202 and which the taxpayer elects to $50,000 and $80,000 amounts referred to in sub- ‘‘(iii) ‘1.727 times’ in the case of taxable years take into account under this clause.’’. paragraph (A) shall be increased by an amount beginning during 2003, (3) Subparagraph (B) of section 172(d)(2) is equal to— ‘‘(iv) ‘1.837 times’ in the case of taxable years amended to read as follows: ‘‘(i) such dollar amount, multiplied by beginning during 2004, ‘‘(B) the deduction under section 1202 and the ‘‘(ii) the cost-of-living adjustment determined ‘‘(v) ‘1.951 times’ in the case of taxable years exclusion under section 1203 shall not be al- under section (1)(f)(3) for the calendar year in beginning during 2005, lowed.’’. which the taxable year begins, by substituting ‘‘(vi) ‘1.953 times’ in the case of taxable years (4) Section 642(c)(4) is amended by striking ‘2004’ for ‘1992’. beginning during 2006, and ‘‘1202’’ and inserting ‘‘1203’’. ‘‘(D) ROUNDING.—If any amount as adjusted ‘‘(vii) ‘1.973 times’ in the case of taxable years (5) Section 643(a)(3) is amended by striking under subparagraph (C) is not a multiple of $50, beginning during 2007, and ‘‘1202’’ and inserting ‘‘1203’’. such amount shall be rounded to the nearest ‘‘(B) the basic standard deduction for a mar- (6) Paragraph (4) of section 691(c) is amended multiple of $50. ried individual filing a separate return shall be inserting ‘‘1203,’’ after ‘‘1202,’’. ‘‘(c) DEPENDENTS NOT ELIGIBLE FOR CREDIT.— one-half of the amount applicable under para- (7) The second sentence of section 871(a)(2) is No credit shall be allowed by this section to an graph (2)(A). amended by inserting ‘‘or 1203’’ after ‘‘section individual for the taxable year if a deduction If any amount determined under subparagraph 1202’’. under section 151 with respect to such indi- (A) is not a multiple of $50, such amount shall (8) The last sentence of section 1044(d) is vidual is allowed to another taxpayer for the be rounded to the next lowest multiple of $50.’’. amended by striking ‘‘1202’’ and inserting taxable year beginning in the calendar year in (c) TECHNICAL AMENDMENTS.— ‘‘1203’’. which such individual’s taxable year begins. (1) Subparagraph (B) of section 1(f)(6) is (9) Paragraph (1) of section 1402(i) is amended ‘‘(d) LIMIT ON PERIOD CREDIT ALLOWED.—A amended by striking ‘‘(other than with’’ and all by inserting ‘‘, and the deduction provided by credit shall be allowed under this section only that follows through ‘‘shall be applied’’ and in- section 1202 and the exclusion provided by sec- with respect to interest paid on any qualified serting ‘‘(other than with respect to sections tion 1203 shall not apply’’ before the period at education loan during the first 60 months 63(c)(4) and 151(d)(4)(A)) shall be applied’’. the end. (whether or not consecutive) in which interest (2) Paragraph (4) of section 63(c) is amended (10) Section 121 is amended by adding at the payments are required. For purposes of this by adding at the end the following flush sen- end the following new subsection: paragraph, any loan and all refinancings of tence: ‘‘(h) CROSS REFERENCE.— such loan shall be treated as 1 loan. ‘‘The preceding sentence shall not apply to the ‘‘For treatment of eligible gain not excluded ‘‘(e) DEFINITIONS.—For purposes of this amount referred to in paragraph (2)(A).’’. under subsection (a), see section 1202.’’. section— (d) EFFECTIVE DATE.—The amendments made (11) Section 1203, as redesignated by sub- ‘‘(1) QUALIFIED EDUCATION LOAN.—The term by this section shall apply to taxable years be- section (a), is amended by adding at the end the ‘qualified education loan’ has the meaning ginning after December 31, 2000. following new subsection: given such term by section 221(e)(1). SEC. 210. EXPANSION OF ADOPTION CREDIT. ‘‘(2) DEPENDENT.—The term ‘dependent’ has ‘‘(l) CROSS REFERENCE.— (a) IN GENERAL.—Section 23(a)(1) (relating to the meaning given such term by section 152. ‘‘For treatment of eligible gain not excluded allowance of credit) is amended to read as fol- ‘‘(f) SPECIAL RULES.— lows: under subsection (a), see section 1202.’’. ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No credit ‘‘(1) IN GENERAL.—In the case of an indi- (12) The table of sections for part I of sub- shall be allowed under this section for any vidual, there shall be allowed as a credit against chapter P of chapter 1 is amended by striking amount taken into account for any deduction the tax imposed by this chapter— the item relating to section 1202 and by inserting under any other provision of this chapter. after the item relating to section 1201 the fol- ‘‘(A) in the case of an adoption of a child ‘‘(2) MARRIED COUPLES MUST FILE JOINT RE- lowing new items: other than a child with special needs, the TURN.—If the taxpayer is married at the close of amount of the qualified adoption expenses paid the taxable year, the credit shall be allowed ‘‘Sec. 1202. Capital gains deduction. or incurred by the taxpayer, and under subsection (a) only if the taxpayer and ‘‘Sec. 1203. 50-percent exclusion for gain from ‘‘(B) in the case of an adoption of a child with the taxpayer’s spouse file a joint return for the certain small business stock.’’. special needs, $10,000.’’. taxable year. (f) EFFECTIVE DATES.— (b) DOLLAR LIMITATION.—Section 23(b)(1) is ‘‘(3) MARITAL STATUS.—Marital status shall be (1) IN GENERAL.—Except as provided in para- amended— determined in accordance with section 7703.’’. graph (2), the amendments made by this section (1) by striking ‘‘($6,000, in the case of a child (b) CONFORMING AMENDMENT.—The table of shall apply to taxable years beginning after De- with special needs)’’, and sections for subpart A of part IV of subchapter cember 31, 2005. (2) by striking ‘‘subsection (a)’’ and inserting A of chapter 1 is amended by inserting after the (2) COLLECTIBLES.—The amendments made by ‘‘subsection (a)(1)’’. item relating to section 25A the following new subsection (d) shall apply to sales and ex- (c) YEAR CREDIT ALLOWED.—Section 23(a)(2) item: changes after December 31, 2005. is amended by adding at the end the following SEC. 208. CREDIT FOR INTEREST ON HIGHER ‘‘Sec. 25B. Interest on higher education loans.’’. new flush sentence: EDUCATION LOANS. (c) EFFECTIVE DATE.—The amendments made ‘‘In the case of the adoption of a child with spe- (a) IN GENERAL.—Subpart A of part IV of sub- by this section shall apply to any qualified edu- cial needs, the credit allowed under paragraph chapter A of chapter 1 (relating to nonrefund- cation loan (as defined in section 25B(e)(1) of (1) shall be allowed for the taxable year in able personal credits) is amended by inserting the Internal Revenue Code of 1986, as added by which the adoption becomes final.’’. after section 25A the following new section: this section) incurred on, before, or after the (d) DEFINITION OF ELIGIBLE CHILD.—Section ‘‘SEC. 25B. INTEREST ON HIGHER EDUCATION date of the enactment of this Act, but only with 23(d)(2) is amended to read as follows: LOANS. respect to any loan interest payment due after ‘‘(2) ELIGIBLE CHILD.—The term ‘eligible child’ ‘‘(a) ALLOWANCE OF CREDIT.—In the case of December 31, 2004. means any individual who— an individual, there shall be allowed as a credit SEC. 209. ELIMINATION OF MARRIAGE PENALTY ‘‘(A) has not attained age 18, or against the tax imposed by this chapter for the IN STANDARD DEDUCTION. ‘‘(B) is physically or mentally incapable of taxable year an amount equal to the interest (a) IN GENERAL.—Paragraph (2) of section caring for himself.’’. paid by the taxpayer during the taxable year on 63(c) (relating to standard deduction) is (e) EFFECTIVE DATE.—The amendments made any qualified education loan. amended— by this section shall apply to taxable years be- ‘‘(b) MAXIMUM CREDIT.— (1) by striking ‘‘$5,000’’ in subparagraph (A) ginning after December 31, 2000. ‘‘(1) IN GENERAL.—Except as provided in para- and inserting ‘‘twice the dollar amount in effect SEC. 211. MODIFICATION OF TAX RATES FOR graph (2), the credit allowed by subsection (a) under subparagraph (C) for the taxable year’’, TRUSTS FOR INDIVIDUALS WHO ARE for the taxable year shall not exceed $1,500. (2) by adding ‘‘or’’ at the end of subpara- DISABLED. ‘‘(2) LIMITATION BASED ON MODIFIED ADJUSTED graph (B), (a) IN GENERAL.—Section 1(e) (relating to tax GROSS INCOME.— (3) by striking ‘‘in the case of’’ and all that imposed on estates and trusts) is amended to ‘‘(A) IN GENERAL.—If the modified adjusted follows in subparagraph (C) and inserting ‘‘in read as follows: gross income of the taxpayer for the taxable any other case.’’, and ‘‘(e) ESTATES AND TRUSTS.— year exceeds $50,000 ($80,000 in the case of a (4) by striking subparagraph (D). ‘‘(1) IN GENERAL.—Except as provided in para- joint return), the amount which would (but for (b) PHASE-IN.—Subsection (c) of section 63 is graph (2), there is hereby imposed on the tax- this paragraph) be allowable as a credit under amended by adding at the end the following able income of— this section shall be reduced (but not below new paragraph: ‘‘(A) every estate, and S10014 CONGRESSIONAL RECORD — SENATE August 2, 1999 ‘‘(B) every trust, ‘‘For taxable years be- The applicable dollar Internal Revenue Service Restructuring and Re- taxable under this subsection a tax determined ginning in: amount is: form Act of 1998, is amended to read as follows: in accordance with the following table: 2003 ...... $60,000 ‘‘(B) DEFINITION OF ADJUSTED GROSS IN- COME.—For purposes of subparagraph (A), ad- ‘‘If taxable income is: The tax is: 2004 ...... $65,000 Not over $1,500 ...... 15% of taxable income. 2005 ...... $70,000 justed gross income shall be determined— Over $1,500 but not over $225, plus 28% of the ex- 2006 ...... $75,000 ‘‘(i) after application of sections 86 and 469, $3,500. cess over $1,500. 2007 ...... $80,000 and Over $3,500 but not over $785, plus 31% of the ex- 2008 ...... $84,000 ‘‘(ii) without regard to sections 135, 137, 221, $5,500. cess over $3,500. 2009 ...... $89,000 and 911, the deduction allowable under section Over $5,500 but not over $1,405, plus 36% of the ex- 2010 and thereafter ...... $94,000. 219, or any amount included in gross income $7,500. cess over $5,500. Over $7,500 ...... $2,125, plus 39.6% of the ‘‘(ii) In the case of any other taxpayer (other under subsection (d)(3).’’. excess over $7,500. than a married individual filing a separate re- (2) Subparagraph (B) of section 408A(c)(3), as ‘‘(2) SPECIAL RULE FOR TRUSTS FOR DISABLED turn): amended by paragraph (1), is amended by in- INDIVIDUALS.— ‘‘For taxable years be- The applicable dollar serting ‘‘or by reason of a required distribution ‘‘(A) IN GENERAL.—There is hereby imposed on ginning in: amount is: under a provision described in paragraph (5)’’ the taxable income of an eligible trust taxable 2001 ...... $33,000 before the period at the end. under this subsection a tax determined in the 2002 ...... $34,000 (d) EFFECTIVE DATES.— same manner as under subsection (c). 2003 ...... $40,000 (1) IN GENERAL.—The amendments made by ‘‘(B) ELIGIBLE TRUST.—For purposes of sub- 2004 ...... $45,000 this section shall apply to taxable years begin- paragraph (A), a trust shall be treated as an eli- 2005, 2006, and 2007 ...... $50,000 ning after December 31, 2002. gible trust for any taxable year if, at all times 2008 ...... $52,000 (2) ROLLOVERS.—The amendment made by during such year during which the trust is in 2009 ...... $54,500 subsection (b) shall apply to taxable years be- existence, the exclusive purpose of the trust is to 2010 and thereafter ...... $57,000.’’. ginning after December 31, 2002. provide reasonable amounts for the support and (2) COST-OF-LIVING ADJUSTMENT.—Section (3) ADJUSTED GROSS INCOME.—The amendment maintenance of 1 beneficiary who is perma- 219(g)(3) is amended by adding at the end the made by subsection (c)(2) shall apply to taxable nently and totally disabled (within the meaning following new subparagraph: years beginning after December 31, 2004. of section 22(e)(3)). A trust shall not fail to meet ‘‘(C) COST-OF-LIVING ADJUSTMENT.— SEC. 303. DEEMED IRAS UNDER EMPLOYER the requirements of this subparagraph merely ‘‘(i) IN GENERAL.—In the case of any taxable PLANS. because the corpus of the trust may revert to the year beginning in a calendar year after 2010, the (a) IN GENERAL.—Section 408 (relating to indi- grantor or a member of the grantor’s family $94,000 amount in subparagraph (B)(i) and the vidual retirement accounts) is amended by re- upon the death of the beneficiary.’’. $57,000 amount in subparagraph(B)(ii) shall designating subsection (q) as subsection (r) and (b) EFFECTIVE DATE.—The amendments made each be increased by an amount equal to— by inserting after subsection (p) the following by this section shall apply to taxable years be- ‘‘(I) such dollar amount, multiplied by new subsection: ginning after December 31, 2006. ‘‘(II) the cost-of-living adjustment determined ‘‘(q) DEEMED IRAS UNDER QUALIFIED EM- TITLE III—RETIREMENT SAVINGS TAX under section 1(f)(3) for the calendar year in PLOYER PLANS.— RELIEF which the taxable year begins, determined by ‘‘(1) GENERAL RULE.—If— substituting ‘calendar year 2009’ for ‘calendar ‘‘(A) a qualified employer plan elects to allow Subtitle A—Individual Retirement employees to make voluntary employee contribu- Arrangements year 1992’ in subparagraph (B) thereof. ‘‘(ii) ROUNDING RULES.—If any amount after tions to a separate account or annuity estab- SEC. 301. MODIFICATION OF DEDUCTION LIMITS adjustment under clause (i) is not a multiple of lished under the plan, and FOR IRA CONTRIBUTIONS. $1,000, such amount shall be reduced to the next ‘‘(B) under the terms of the qualified employer (a) INCREASE IN CONTRIBUTION LIMIT.— lowest multiple of $1,000.’’. plan, such account or annuity meets the appli- (1) IN GENERAL.—Paragraph (1)(A) of section (c) CONFORMING AMENDMENTS.— cable requirements of this section or section 219(b) (relating to maximum amount of deduc- (1) Section 408(a)(1) is amended by striking 408A for an individual retirement account or an- tion) is amended by striking ‘‘$2,000’’ and insert- ‘‘in excess of $2,000 on behalf of any individual’’ nuity, ing ‘‘the deductible amount’’. and inserting ‘‘on behalf of any individual in then such account or annuity shall be treated (2) DEDUCTIBLE AMOUNT.—Section 219(b) is excess of the amount in effect for such taxable for purposes of this title in the same manner as amended by adding at the end the following year under section 219(b)(1)(A)’’. an individual retirement plan (and contribu- new paragraph: (2) Section 408(b)(2)(B) is amended by striking tions to such account or annuity as contribu- ‘‘(5) DEDUCTIBLE AMOUNT.—For purposes of ‘‘$2,000’’ and inserting ‘‘the dollar amount in ef- tions to an individual retirement plan). For pur- paragraph (1)(A)— fect under section 219(b)(1)(A)’’. poses of subparagraph (B), the requirements of ‘‘(A) IN GENERAL.—The deductible amount (3) Section 408(b) is amended by striking subsection (a)(5) shall not apply. shall be determined in accordance with the fol- ‘‘$2,000’’ in the matter following paragraph (4) ‘‘(2) SPECIAL RULES FOR QUALIFIED EMPLOYER lowing table: and inserting ‘‘the dollar amount in effect PLANS.—For purposes of this title— ‘‘For taxable years The deductible under section 219(b)(1)(A)’’. ‘‘(A) a qualified employer plan shall not fail beginning in: amount is: (4) Section 408(j) is amended by striking to meet any requirement of this title solely by 2001 ...... $3,000 ‘‘$2,000’’. reason of establishing and maintaining a pro- 2002 ...... $4,000 (5) Section 408(p)(8) is amended by striking gram described in paragraph (1), and 2003 and thereafter ...... $5,000. ‘‘$2,000’’ and inserting ‘‘the dollar amount in ef- ‘‘(B) any account or annuity described in ‘‘(B) COST-OF-LIVING ADJUSTMENT.— fect under section 219(b)(1)(A)’’ paragraph (1), and any contribution to the ac- ‘‘(i) IN GENERAL.—In the case of any taxable (d) EFFECTIVE DATE.—The amendments made count or annuity, shall not be subject to any re- year beginning in a calendar year after 2003, the by this section shall apply to taxable years be- quirement of this title applicable to a qualified $5,000 amount under subparagraph (A) shall be ginning after December 31, 2000. employer plan or taken into account in applying increased by an amount equal to— SEC. 302. MODIFICATION OF INCOME LIMITS ON any such requirement to any other contributions ‘‘(I) such dollar amount, multiplied by CONTRIBUTIONS AND ROLLOVERS under the plan. ‘‘(II) the cost-of-living adjustment determined TO ROTH IRAS. ‘‘(3) DEFINITIONS.—For purposes of this under section 1(f)(3) for the calendar year in (a) REPEAL OF AGI LIMIT ON CONTRIBU- subsection— which the taxable year begins, determined by TIONS.—Section 408A(c)(3) (relating to limits ‘‘(A) QUALIFIED EMPLOYER PLAN.—The term substituting ‘calendar year 2002’ for ‘calendar based on modified adjusted gross income) is ‘qualified employer plan’ has the meaning given year 1992’ in subparagraph (B) thereof. amended by striking subparagraph (A) and by such term by section 72(p)(4). ‘‘(ii) ROUNDING RULES.—If any amount after redesignating subparagraphs (B), (C), and (D) ‘‘(B) VOLUNTARY EMPLOYEE CONTRIBUTION.— adjustment under clause (i) is not a multiple of as subparagraphs (A), (B), and (C), respectively. The term ‘voluntary employee contribution’ $100, such amount shall be rounded to the next (b) INCREASE IN AGI LIMIT FOR ROLLOVER means any contribution (other than a manda- lower multiple of $100.’’. CONTRIBUTIONS.—Section 408A(c)(3)(A) (relating tory contribution within the meaning of section (b) INCREASE IN ADJUSTED GROSS INCOME LIM- to rollover from IRA), as redesignated by sub- 411(c)(2)(C))— ITS FOR ACTIVE PARTICIPANTS.— section (a), is amended to read as follows: ‘‘(i) which is made by an individual as an em- (1) IN GENERAL.—Subparagraph (B) of section ‘‘(A) ROLLOVER FROM IRA.—A taxpayer shall ployee under a qualified employer plan which 219(g)(3) (relating to applicable dollar amount) not be allowed to make a qualified rollover con- allows employees to elect to make contributions is amended to read as follows: tribution from an individual retirement plan described in paragraph (1), and ‘‘(B) APPLICABLE DOLLAR AMOUNT.—The term other than a Roth IRA during any taxable year ‘‘(ii) with respect to which the individual has ‘applicable dollar amount’ means the following: if, for the taxable year of the distribution to designated the contribution as a contribution to ‘‘(i) In the case of a taxpayer filing a joint re- which the contribution relates, the taxpayer’s which this subsection applies.’’. turn: adjusted gross income exceeds $1,000,000.’’. (b) AMENDMENT OF ERISA.— ‘‘For taxable years be- The applicable dollar (c) CONFORMING AMENDMENTS.— (1) IN GENERAL.—Section 4 of the Employee ginning in: amount is: (1) Subparagraph (B) of section 408A(c)(3), as Retirement Income Security Act of 1974 (29 2001 ...... $53,000 redesignated by subsection (a) and as in effect U.S.C. 1003) is amended by adding at the end 2002 ...... $54,000 before and after the amendments made by the the following new subsection: August 2, 1999 CONGRESSIONAL RECORD — SENATE S10015 ‘‘(c) If a pension plan allows an employee to amount determined under the preceding sen- State (as defined in section 521(33) of such Act), elect to make voluntary employee contributions tence is not a multiple of $10, such amount shall as such sections are in effect on the date of the to accounts and annuities as provided in section be rounded to the next highest multiple of $10. enactment of this section. 408(q) of the Internal Revenue Code of 1986, ‘‘(B) LIMITATION BASED ON AMOUNT OF TAX.— ‘‘(iii) COORDINATION WITH OTHER BENEFITS.— such accounts and annuities (and contributions The credit allowed under subparagraph (A) for The amount of qualified higher education ex- thereto) shall not be treated as part of such plan any taxable year shall not exceed the excess of— penses for any taxable year shall be reduced as (or as a separate pension plan) for purposes of ‘‘(i) the sum of the regular tax liability (as de- provided in section 25A(g)(2) and by the amount any provision of this title other than section fined in section 26(b)) plus the tax imposed by of such expenses for which a credit or exclusion 403(c), 404, or 405 (relating to exclusive benefit, section 55, over is allowed under this chapter for such taxable and fiduciary and co-fiduciary responsibil- ‘‘(ii) the sum of the credits allowable under year. ities).’’. part IV of subchapter A of this chapter. ‘‘(C) QUALIFIED FIRST-TIME HOMEBUYER (2) CONFORMING AMENDMENT.—Section 4(a) of ‘‘(C) CREDIT TREATED AS ALLOWED UNDER COSTS.—The term ‘qualified first-time home- such Act (29 U.S.C. 1003(a)) is amended by in- PART IV OF SUBCHAPTER A.—For purposes of buyer costs’ means qualified acquisition costs serting ‘‘or (c)’’ after ‘‘subsection (b)’’. subtitle F, the credit allowed under subpara- (as defined in section 72(t)(8) without regard to (c) EFFECTIVE DATE.—The amendments made graph (A) shall be treated as a credit allowable subparagraph (B) thereof) with respect to a by this section shall apply to plan years begin- under part IV of subchapter A of this chapter. principal residence (within the meaning of sec- ning after December 31, 1999. ‘‘(4) FORFEITURE OF MATCHING FUNDS.— tion 121) for a qualified first-time homebuyer (as defined in section 72(t)(8)). SEC. 304. TAX CREDIT FOR MATCHING CONTRIBU- ‘‘(A) IN GENERAL.—Amounts in the matching ‘‘(D) QUALIFIED BUSINESS CAPITALIZATION TIONS TO INDIVIDUAL DEVELOP- account established under this subsection for an MENT ACCOUNTS. eligible individual shall be reduced by the COSTS.— ‘‘(i) IN GENERAL.—The term ‘qualified business (a) IN GENERAL.—Subchapter F of chapter 1 amount of any distribution from an Individual capitalization costs’ means qualified expendi- (relating to exempt organizations) is amended by Development Account of such individual which tures for the capitalization of a qualified busi- adding at the end the following new part: is not a qualified expense distribution and which is not recontributed as part of a qualified ness pursuant to a qualified business plan. ‘‘PART IX—INDIVIDUAL DEVELOPMENT ‘‘(ii) QUALIFIED EXPENDITURES.—The term rollover (as defined in subsection (c)(2)(E)). ACCOUNTS ‘qualified expenditures’ means expenditures in- ‘‘(B) USE OF FORFEITED FUNDS.—Eligible cluded in a qualified business plan, including ‘‘Sec. 530A. Individual development accounts. matching contributions which are forfeited by capital, plant, equipment, working capital and ‘‘SEC. 530A. INDIVIDUAL DEVELOPMENT AC- an eligible individual under subparagraph (A) inventory expenses. COUNTS. shall be used by the qualified financial institu- ‘‘(a) INDIVIDUAL DEVELOPMENT ACCOUNT.— ‘‘(iii) QUALIFIED BUSINESS.—The term ‘quali- tion to make eligible matching contributions for fied business’ means any business that does not For purposes of this section, the term ‘Indi- other Individual Development Account contribu- vidual Development Account’ means a custodial contravene any law. tions by eligible individuals. ‘‘(iv) QUALIFIED BUSINESS PLAN.—The term account established for the exclusive benefit of ‘‘(5) EXCLUSION FROM INCOME.—Gross income ‘qualified business plan’ means a business plan an eligible individual or such individual’s bene- of an eligible individual shall not include any which meets such requirements as the Secretary ficiaries, but only if the written governing in- eligible matching contribution and the earnings of Housing and Urban Development may speci- strument creating the account meets the fol- thereon deposited into a matching account fy. lowing requirements: under paragraph (1) on behalf of such indi- ‘‘(E) QUALIFIED ROLLOVERS.—The term ‘quali- ‘‘(1) Except in the case of a qualified rollover vidual. fied rollover’ means, with respect to any dis- (as defined in subsection (c)(2)(E))— ‘‘(6) REGULAR REPORTING OF MATCHING CON- tribution from an Individual Development Ac- ‘‘(A) no contribution will be accepted unless it TRIBUTIONS.—Any qualified financial institution count, the payment, within 120 days of such dis- is in cash, and shall report eligible matching contributions to tribution, of all or a portion of such distribution ‘‘(B) contributions will not be accepted for the eligible individuals with Individual Develop- to such account or to another Individual Devel- taxable year in excess of the lesser of— ment Accounts on not less than a quarterly opment Account established in another qualified ‘‘(i) $350, or basis. financial institution for the benefit of the eligi- ‘‘(ii) an amount equal to the compensation in- ‘‘(7) TERMINATION.—No eligible matching con- ble individual. Rules similar to the rules of sec- cludible in the eligible individual’s gross income tribution may be made for any taxable year be- tion 408(d)(3) (other than subparagraph (C) for such taxable year. ginning after December 31, 2005. thereof) shall apply for purposes of this sub- ‘‘(2) The custodian of the account is a quali- ‘‘(c) QUALIFIED EXPENSE DISTRIBUTION.—For paragraph. fied financial institution. purposes of this section— ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For ‘‘(3) The interest of an eligible individual in ‘‘(1) IN GENERAL.—The term ‘qualified expense purposes of this section— the balance of the account (determined without distribution’ means any amount paid or distrib- ‘‘(1) ELIGIBLE INDIVIDUAL.— regard to any such matching contribution or uted out of an Individual Development Account ‘‘(A) IN GENERAL.—The term ‘eligible indi- earnings thereon) is nonforfeitable. and the matching account established under vidual’ means an individual who— ‘‘(4) The assets of the account will not be com- subsection (b) for an eligible individual if such ‘‘(i) has attained the age of 18 years, mingled with other property except in a common amount— ‘‘(ii) is a citizen or legal resident of the United trust fund or common investment fund. ‘‘(A) is used exclusively to pay the qualified States, and ‘‘(5) Except as provided in subsection (c), any expenses of such individual or such individual’s ‘‘(iii) is a member of a household— amount in the account may be paid out only for spouse or dependents, ‘‘(I) which is eligible for the earned income qualified expense distributions. ‘‘(B) is paid by the qualified financial institu- tax credit under section 32, ‘‘(II) which is eligible for assistance under a ‘‘(b) MATCHING CONTRIBUTIONS WITH RESPECT tion directly to the person to whom the amount State program funded under part A of title IV of TO INDIVIDUAL DEVELOPMENT ACCOUNTS.— is due or to another Individual Development Ac- the Social Security Act, or ‘‘(1) IN GENERAL.—If an eligible individual es- count, and ‘‘(III) the gross income of which does not ex- tablishes an Individual Development Account ‘‘(C) is paid after the holder of the Individual ceed 60 percent of the area median income (as with a qualified financial institution, the quali- Development Account has completed an eco- determined by the Department of Housing and fied financial institution may deposit into a sep- nomic literacy course offered by the qualified fi- Urban Affairs) and the net worth of which does arate, parallel, individual or pooled matching nancial institution, a nonprofit organization, or not exceed $10,000. account an eligible matching contribution for a government entity. OUSEHOLD.—The term ‘household’ the taxable year. The qualified financial institu- ‘‘(B) H ‘‘(2) QUALIFIED EXPENSES.— means all individuals who share use of a dwell- tion shall maintain a separate accounting of ‘‘(A) IN GENERAL.—The term ‘qualified ex- ing unit as primary quarters for living and eat- matching contributions and earnings thereon. penses’ means any of the following: ing separate from other individuals. ‘‘(2) ELIGIBLE MATCHING CONTRIBUTION.—For ‘‘(i) Qualified higher education expenses. ‘‘(C) DETERMINATION OF NET WORTH.— purposes of this section, the term ‘eligible ‘‘(ii) Qualified first-time homebuyer costs. ‘‘(i) IN GENERAL.—For purposes of subpara- matching contribution’ means a dollar-for-dol- ‘‘(iii) Qualified business capitalization costs. graph (A)(iii)(III), the net worth of a household lar match of the contributions made by the eligi- ‘‘(iv) Qualified rollovers. is the amount equal to— ble individual into the Individual Development ‘‘(B) QUALIFIED HIGHER EDUCATION EX- ‘‘(I) the aggregate fair market value of all as- Account described in paragraph (1) with respect PENSES.— sets that are owned in whole or in part by any to any taxable year. ‘‘(i) IN GENERAL.—The term ‘qualified higher member of a household, minus ‘‘(3) ALLOWANCE OF CREDIT FOR ELIGIBLE education expenses’ has the meaning given such ‘‘(II) the obligations or debts of any member of MATCHING CONTRIBUTIONS.— term by section 72(t)(7), determined by treating the household. ‘‘(A) IN GENERAL.—In the case of a qualified postsecondary vocational educational schools as ‘‘(ii) CERTAIN ASSETS DISREGARDED.—For pur- financial institution, there shall be allowed as a eligible educational institutions. poses of determining the net worth of a house- credit against the tax imposed by this chapter ‘‘(ii) POSTSECONDARY VOCATIONAL EDUCATION hold, a household’s assets shall not be consid- for the taxable year an amount equal to 85 per- SCHOOL.—The term ‘postsecondary vocational ered to include the primary dwelling unit and 1 cent of the eligible matching contributions made educational school’ means an area vocational motor vehicle owned by the household. by such institution with respect to an eligible education school (as defined in subparagraph ‘‘(D) PROOF OF COMPENSATION AND STATUS AS individual under this subsection for such tax- (C) or (D) of section 521(4) of the Carl D. Per- AN ELIGIBLE INDIVIDUAL.—Statements under sec- able year (determined without regard to any kins Vocational and Applied Technology Edu- tion 6051 and other forms specified by the Sec- amount described in paragraph (4)(B)). If any cation Act (20 U.S.C. 2471(4))) which is in any retary proving the eligible individual’s wages S10016 CONGRESSIONAL RECORD — SENATE August 2, 1999

and other compensation and the status of the (f) FUNDS IN ACCOUNTS DISREGARDED FOR ignate under paragraph (1) shall not exceed the individual as an eligible individual shall be pre- PURPOSES OF CERTAIN MEANS-TESTED FEDERAL excess (if any) of— sented to the custodian at the time of the estab- PROGRAMS.—Notwithstanding any other provi- ‘‘(A) the maximum amount of elective defer- lishment of the Individual Development Account sion of the Internal Revenue Code of 1986 or the rals excludable from gross income of the em- and at least once annually thereafter. Social Security Act that requires consideration ployee for the taxable year (without regard to ‘‘(2) QUALIFIED FINANCIAL INSTITUTION.—The of 1 or more financial circumstances of an indi- this section), over term ‘qualified financial institution’ means any vidual, for the purpose of determining eligibility ‘‘(B) the aggregate amount of elective defer- person authorized to be a trustee of any indi- to receive, or the amount of, any assistance or rals of the employee for the taxable year which vidual retirement account under section benefit authorized by such provision to be pro- the employee does not designate under para- 408(a)(2). vided to or for the benefit of such individual, graph (1). ‘‘(3) TREATMENT OF MORE THAN ONE AC- contributions (including earnings thereon) in ‘‘(3) ROLLOVER CONTRIBUTIONS.— COUNT.—All Individual Development Accounts any Individual Development Account and appli- ‘‘(A) IN GENERAL.—A rollover contribution of of an individual shall be treated as one account. cable matching account under section 530A of any payment or distribution from a designated ‘‘(4) OTHER RULES TO APPLY.—Rules similar to such Code shall be disregarded for such pur- plus account which is otherwise allowable under the rules of paragraphs (1), (2), and (3) of sec- pose. this chapter may be made only if the contribu- tion 219(f), section 220(f)(8), paragraphs (4) and (g) EFFECTIVE DATE.—The amendments made tion is to— (6) of section 408(d), and section 408(m) shall by this section shall apply to taxable years be- ‘‘(i) another designated plus account of the apply for purposes of this section. ginning after December 31, 2000. individual from whose account the payment or ‘‘(5) REPORTS.—The custodian of an Indi- distribution was made, or vidual Development Account shall make such SEC. 305. CERTAIN COINS NOT TREATED AS COL- LECTIBLES. ‘‘(ii) a Roth IRA of such individual. reports regarding such account to the Secretary ‘‘(B) COORDINATION WITH LIMIT.—Any rollover (a) IN GENERAL.—Subparagraph (A) of section contribution to a designated plus account under and to the individual for whom the account is 408(m)(3) (relating to exception for certain coins subparagraph (A) shall not be taken into ac- maintained with respect to contributions (and and bullion) is amended to read as follows: the years to which they relate), distributions, ‘‘(A) any coin certified by a recognized grad- count for purposes of paragraph (1). ‘‘(d) DISTRIBUTION RULES.—For purposes of and such other matters as the Secretary may re- ing service and traded on a nationally recog- this title— quire under regulations. The reports required by nized electronic network, or listed by a recog- ‘‘(1) EXCLUSION.—Any qualified distribution this paragraph— nized wholesale reporting service, and— from a designated plus account shall not be in- ‘‘(A) shall be filed at such time and in such ‘‘(i) which is or was at any time legal tender cludible in gross income. manner as the Secretary prescribes in such regu- in the United States, or ‘‘(2) QUALIFIED DISTRIBUTION.—For purposes lations, and ‘‘(ii) issued under the laws of any State, or’’. ‘‘(B) shall be furnished to individuals— of this subsection— (b) EFFECTIVE DATE.—The amendment made ‘‘(i) not later than January 31 of the calendar ‘‘(A) IN GENERAL.—The term ‘qualified dis- by this section shall apply to taxable years be- year following the calendar year to which such tribution’ has the meaning given such term by ginning after December 31, 1999. reports relate, and section 408A(d)(2)(A) (without regard to clause ‘‘(ii) in such manner as the Secretary pre- Subtitle B—Expanding Coverage (iv) thereof). scribes in such regulations. SEC. 311. OPTION TO TREAT ELECTIVE DEFER- ‘‘(B) DISTRIBUTIONS WITHIN NONEXCLUSION PE- ‘‘(e) APPLICATION OF SECTION.—This section RALS AS AFTER-TAX CONTRIBU- RIOD.—A payment or distribution from a des- shall apply to amounts paid to an Individual TIONS. ignated plus account shall not be treated as a Development Account for any taxable year be- (a) IN GENERAL.—Subpart A of part I of sub- qualified distribution if such payment or dis- ginning after December 31, 2000, and before Jan- chapter D of chapter 1 (relating to deferred com- tribution is made within the 5-taxable-year pe- uary 1, 2006.’’. pensation, etc.) is amended by inserting after riod beginning with the earlier of— (b) TAX ON EXCESS CONTRIBUTIONS.— section 402 the following new section: ‘‘(i) the 1st taxable year for which the indi- (1) TAX IMPOSED.—Subsection (a) of section ‘‘SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE vidual made a designated plus contribution to 4973 is amended by striking ‘‘or’’ at the end of DEFERRALS AS PLUS CONTRIBU- any designated plus account established for paragraph (3), adding ‘‘or’’ at the end of para- TIONS. such individual under the same applicable re- graph (4), and inserting after paragraph (4) the ‘‘(a) GENERAL RULE.—If an applicable retire- tirement plan, or following new paragraph: ment plan includes a qualified plus contribution ‘‘(ii) if a rollover contribution was made to ‘‘(5) an Individual Development Account program— such designated plus account from a designated (within the meaning of section 530A(a)),’’. ‘‘(1) any designated plus contribution made by plus account previously established for such in- (2) EXCESS CONTRIBUTIONS.—Section 4973 is an employee pursuant to the program shall be dividual under another applicable retirement amended by adding at the end the following treated as an elective deferral for purposes of plan, the 1st taxable year for which the indi- new subsection: this chapter, except that such contribution shall vidual made a designated plus contribution to ‘‘(g) INDIVIDUAL DEVELOPMENT ACCOUNTS.— not be excludable from gross income, and such previously established account. For purposes of this section, in the case of Indi- ‘‘(2) such plan (and any arrangement which is ‘‘(C) DISTRIBUTIONS OF EXCESS DEFERRALS vidual Development Accounts, the term ‘excess part of such plan) shall not be treated as failing AND EARNINGS.—The term ‘qualified distribution’ contributions’ means the excess (if any) of— to meet any requirement of this chapter solely shall not include any distribution of any excess ‘‘(1) the amount contributed for the taxable by reason of including such program. deferral under section 402(g)(2) and any income year to the accounts (other than a qualified ‘‘(b) QUALIFIED PLUS CONTRIBUTION PRO- on the excess deferral. rollover, as defined in section 530A(c)(2)(E)), GRAM.—For purposes of this section— ‘‘(3) AGGREGATION RULES.—Section 72 shall be over ‘‘(1) IN GENERAL.—The term ‘qualified plus applied separately with respect to distributions ‘‘(2) the amount allowable as a contribution contribution program’ means a program under and payments from a designated plus account under section 530A. which an employee may elect to make des- and other distributions and payments from the For purposes of this subsection, any contribu- ignated plus contributions in lieu of all or a por- plan. tion which is distributed from the Individual tion of elective deferrals the employee is other- ‘‘(e) OTHER DEFINITIONS.—For purposes of Development Account in a distribution to which wise eligible to make under the applicable retire- this section— rules similar to the rules of section 408(d)(4) ment plan. ‘‘(1) APPLICABLE RETIREMENT PLAN.—The term apply by reason of section 530A(d)(4) shall be ‘‘(2) SEPARATE ACCOUNTING REQUIRED.—A pro- ‘applicable retirement plan’ means— treated as an amount not contributed.’’. gram shall not be treated as a qualified plus ‘‘(A) an employees’ trust described in section (c) INFORMATION RELATING TO CERTAIN contribution program unless the applicable re- 401(a) which is exempt from tax under section TRUSTS AND ANNUITY PLANS.—Subsection (c) of tirement plan— 501(a), and section 6047 is amended— ‘‘(A) establishes separate accounts (‘des- ‘‘(B) a plan under which amounts are contrib- (1) by inserting ‘‘or section 530A’’ after ‘‘sec- ignated plus accounts’) for the designated plus uted by an individual’s employer for an annuity tion 219’’; and contributions of each employee and any earn- contract described in section 403(b). (2) by inserting ‘‘, of any Individual Develop- ings properly allocable to the contributions, and ‘‘(2) ELECTIVE DEFERRAL.—The term ‘elective ment Account described in section 530A(a),’’, ‘‘(B) maintains separate recordkeeping with deferral’ means any elective deferral described after ‘‘section 408(a)’’. respect to each account. in subparagraph (A) or (C) of section (d) FAILURE TO PROVIDE REPORTS ON INDI- ‘‘(c) DEFINITIONS AND RULES RELATING TO 402(g)(3).’’. VIDUAL DEVELOPMENT ACCOUNTS.—Paragraph DESIGNATED PLUS CONTRIBUTIONS.—For pur- (b) EXCESS DEFERRALS.—Section 402(g) (relat- (2) of section 6693(a) is amended by striking poses of this section— ing to limitation on exclusion for elective defer- ‘‘and’’ at the end of subparagraph (C), by strik- ‘‘(1) DESIGNATED PLUS CONTRIBUTION.—The rals) is amended— ing the period and inserting ‘‘, and’’ at the end term ‘designated plus contribution’ means any (1) by adding at the end of paragraph (1) the of subparagraph (D), and by adding at the end elective deferral which— following new sentence: ‘‘The preceding sen- the following new subparagraph: ‘‘(A) is excludable from gross income of an em- tence shall not apply to so much of such excess ‘‘(E) section 530(d)(5) (relating to Individual ployee without regard to this section, and as does not exceed the designated plus contribu- Development Accounts).’’. ‘‘(B) the employee designates (at such time tions of the individual for the taxable year.’’, (e) CLERICAL AMENDMENT.—The table of parts and in such manner as the Secretary may pre- and for subchapter F of chapter 1 is amended by scribe) as not being so excludable. (2) by inserting ‘‘(or would be included but for adding at the end the following new item: ‘‘(2) DESIGNATION LIMITS.—The amount of the last sentence thereof)’’ after ‘‘paragraph ‘‘Part IX. Individual development accounts.’’. elective deferrals which an employee may des- (1)’’ in paragraph (2)(A). August 2, 1999 CONGRESSIONAL RECORD — SENATE S10017

(c) ROLLOVERS.—Subparagraph (B) of section (B) Paragraph (2) of section 457(c) is amended emptions not to apply to certain transactions) is 402(c)(8) is amended by adding at the end the by striking ‘‘402(g)(8)(A)(iii)’’ and inserting amended by adding at the end the following following: ‘‘402(g)(7)(A)(iii)’’. new clause: ‘‘If any portion of an eligible rollover distribu- (C) Clause (iii) of section 501(c)(18)(D) is ‘‘(iii) LOAN EXCEPTION.—For purposes of sub- tion is attributable to payments or distributions amended by striking ‘‘(other than paragraph (4) paragraph (A)(i), the term ‘owner-employee’ from a designated plus account (as defined in thereof)’’. shall only include a person described in sub- section 402A), an eligible retirement plan with (b) DEFERRED COMPENSATION PLANS OF STATE clause (II) or (III) of clause (i).’’. (b) AMENDMENT TO ERISA.—Section 408(d)(2) respect to such portion shall include only an- AND LOCAL GOVERNMENTS AND TAX-EXEMPT OR- of the Employee Retirement Income Security Act other designated plus account and a Roth GANIZATIONS.— of 1974 (29 U.S.C. 1108(d)(2)) is amended by add- IRA.’’. (1) IN GENERAL.—Section 457 (relating to de- ing at the end the following new subparagraph: (d) REPORTING REQUIREMENTS.— ferred compensation plans of State and local ‘‘(C) For purposes of paragraph (1)(A), the (1) W–2 INFORMATION.—Section 6051(a)(8) is governments and tax-exempt organizations) is term ‘owner-employee’ shall only include a per- amended by inserting ‘‘, including the amount amended— son described in clause (ii) or (iii) of subpara- of designated plus contributions (as defined in (A) by striking ‘‘$7,500’’ each place it appears in subsections (b)(2)(A) and (c)(1) and inserting graph (A).’’. section 402A)’’ before the comma at the end. (c) EFFECTIVE DATE.—The amendments made (2) INFORMATION.—Section 6047 is amended by ‘‘the applicable dollar amount’’, and (B) by striking ‘‘$15,000’’ in subsection by this section shall apply to loans made after redesignating subsection (f) as subsection (g) December 31, 2000. and by inserting after subsection (e) the fol- (b)(3)(A) and inserting ‘‘twice the dollar amount in effect under subsection (b)(2)(A)’’. SEC. 314. ELECTIVE DEFERRALS NOT TAKEN INTO lowing new subsection: ACCOUNT FOR PURPOSES OF DE- (2) APPLICABLE DOLLAR AMOUNT; COST-OF-LIV- ‘‘(f) DESIGNATED PLUS CONTRIBUTIONS.—The DUCTION LIMITS. ING ADJUSTMENT.—Paragraph (15) of section Secretary shall require the plan administrator of (a) IN GENERAL.—Section 404 (relating to de- 457(e) is amended to read as follows: each applicable retirement plan (as defined in duction for contributions of an employer to an ‘‘(15) APPLICABLE DOLLAR AMOUNT.— section 402A) to make such returns and reports employees’ trust or annuity plan and compensa- ‘‘(A) IN GENERAL.—The applicable dollar regarding designated plus contributions (as so tion under a deferred payment plan) is amended amount shall be the amount determined in ac- defined) to the Secretary, participants and bene- by adding at the end the following new sub- cordance with the following table: ficiaries of the plan, and such other persons as section: the Secretary may prescribe.’’. ‘‘For taxable years be- The applicable dollar ‘‘(n) ELECTIVE DEFERRALS NOT TAKEN INTO (e) CONFORMING AMENDMENTS.— ginning in: amount is: ACCOUNT FOR PURPOSES OF DEDUCTION LIM- (1) Section 408A(e) is amended by adding after 2001 ...... $9,000 ITS.—Elective deferrals (as defined in section the first sentence the following new sentence: 2002 ...... $10,000 402(g)(3)) shall not be subject to any limitation ‘‘Such term includes a rollover contribution de- 2003 ...... $11,000 contained in paragraph (3), (7), or (9) of sub- scribed in section 402A(c)(3)(A).’’. 2004 or thereafter ...... $12,000. section (a), and such elective deferrals shall not (2) The table of sections for subpart A of part ‘‘(B) COST-OF-LIVING ADJUSTMENTS.—In the be taken into account in applying any such lim- I of subchapter D of chapter 1 is amended by in- case of taxable years beginning after December itation to any other contributions.’’. serting after the item relating to section 402 the 31, 2004, the Secretary shall adjust the $12,000 (b) EFFECTIVE DATE.—The amendment made following new item: amount specified in the table in subparagraph by this section shall apply to years beginning (A) at the same time and in the same manner as after December 31, 2000. ‘‘Sec. 402A. Optional treatment of elective defer- under section 415(d), except that the base period SEC. 315. REDUCED PBGC PREMIUM FOR NEW rals as plus contributions.’’. shall be the calendar quarter beginning July 1, PLANS OF SMALL EMPLOYERS. (f) EFFECTIVE DATE.—The amendments made 2003, and any increase under this paragraph (a) IN GENERAL.—Subparagraph (A) of section by this section shall apply to taxable years be- which is not a multiple of $500 shall be rounded 4006(a)(3) of the Employee Retirement Income ginning after December 31, 2000. to the next lowest multiple of $500.’’. Security Act of 1974 (29 U.S.C. 1306(a)(3)(A)) is SEC. 312. INCREASE IN ELECTIVE CONTRIBUTION (c) SIMPLE RETIREMENT ACCOUNTS.— amended— LIMITS. (1) LIMITATION.—Clause (ii) of section (1) in clause (i), by inserting ‘‘other than a (a) ELECTIVE DEFERRALS.— 408(p)(2)(A) (relating to general rule for quali- new single-employer plan (as defined in sub- (1) IN GENERAL.—Paragraph (1) of section fied salary reduction arrangement) is amended paragraph (F)) maintained by a small employer 402(g) (relating to limitation on exclusion for by striking ‘‘$6,000’’ and inserting ‘‘the applica- (as so defined),’’ after ‘‘single-employer plan,’’, elective deferrals) is amended to read as follows: ble dollar amount’’. (2) in clause (iii), by striking the period at the ‘‘(1) IN GENERAL.— (2) APPLICABLE DOLLAR AMOUNT.—Subpara- end and inserting ‘‘, and’’, and ‘‘(A) LIMITATION.—Notwithstanding sub- graph (E) of 408(p)(2) is amended to read as fol- (3) by adding at the end the following new sections (e)(3) and (h)(1)(B), the elective defer- lows: clause: rals of any individual for any taxable year shall ‘‘(E) APPLICABLE DOLLAR AMOUNT; COST-OF- ‘‘(iv) in the case of a new single-employer be included in such individual’s gross income to LIVING ADJUSTMENT.— plan (as defined in subparagraph (F)) main- the extent the amount of such deferrals for the ‘‘(i) IN GENERAL.—For purposes of subpara- tained by a small employer (as so defined) for taxable year exceeds the applicable dollar graph (A)(ii), the applicable dollar amount shall the plan year, $5 for each individual who is a amount. be the amount determined in accordance with participant in such plan during the plan year.’’. (b) DEFINITION OF NEW SINGLE-EMPLOYER ‘‘(B) APPLICABLE DOLLAR AMOUNT.—For pur- the following table: poses of subparagraph (A), the applicable dollar PLAN.—Section 4006(a)(3) of the Employee Re- ‘‘For taxable years be- The applicable dollar tirement Income Security Act of 1974 (29 U.S.C. amount shall be the amount determined in ac- ginning in: amount is: cordance with the following table: 1306(a)(3)) is amended by adding at the end the 2001 ...... $7,000 following new subparagraph: ‘‘For taxable years be- The applicable dollar 2002 ...... $8,000 ‘‘(F)(i) For purposes of this paragraph, a sin- ginning in: amount is: 2003 ...... $9,000 gle-employer plan maintained by a contributing 2001 ...... $11,000 2004 or thereafter ...... $10,000. sponsor shall be treated as a new single-em- 2002 ...... $12,000 ‘‘(ii) COST-OF-LIVING ADJUSTMENT.—In the ployer plan for each of its first 5 plan years if, 2003 ...... $13,000 case of a year beginning after December 31, 2004, during the 36-month period ending on the date 2004 ...... $14,000 the Secretary shall adjust the $10,000 amount of the adoption of such plan, the sponsor or any 2005 or thereafter ...... $15,000.’’. under clause (i) at the same time and in the member of such sponsor’s controlled group (or (2) COST-OF-LIVING ADJUSTMENT.—Paragraph same manner as under section 415(d), except any predecessor of either) had not established or (5) of section 402(g) is amended to read as fol- that the base period taken into account shall be maintained a plan to which this title applies lows: the calendar quarter beginning July 1, 2003, and with respect to which benefits were accrued for ‘‘(5) COST-OF-LIVING ADJUSTMENT.—In the any increase under this subparagraph which is substantially the same employees as are in the case of taxable years beginning after December not a multiple of $500 shall be rounded to the new single-employer plan. 31, 2005, the Secretary shall adjust the $15,000 next lower multiple of $500.’’. ‘‘(ii)(I) For purposes of this paragraph, the amount under paragraph (1)(B) at the same (3) CONFORMING AMENDMENTS.— term ‘small employer’ means an employer which time and in the same manner as under section (A) Subclause (I) of section 401(k)(11)(B)(i) is on the first day of any plan year has, in aggre- 415(d); except that the base period shall be the amended by striking ‘‘$6,000’’ and inserting ‘‘the gation with all members of the controlled group calendar quarter beginning July 1, 2004, and amount in effect under section 408(p)(2)(A)(ii)’’. of such employer, 100 or fewer employees. any increase under this paragraph which is not (B) Section 401(k)(11) is amended by striking ‘‘(II) In the case of a plan maintained by 2 or a multiple of $500 shall be rounded to the next subparagraph (E). more contributing sponsors that are not part of lowest multiple of $500.’’. (d) EFFECTIVE DATE.—The amendments made the same controlled group, the employees of all (3) CONFORMING AMENDMENTS.— by this section shall apply to years beginning contributing sponsors and controlled groups of (A) Section 402(g) (relating to limitation on ex- after December 31, 2000. such sponsors shall be aggregated for purposes clusion for elective deferrals), as amended by SEC. 313. PLAN LOANS FOR SUBCHAPTER S OWN- of determining whether any contributing spon- paragraphs (1) and (2), is further amended by ERS, PARTNERS, AND SOLE PROPRI- sor is a small employer.’’. striking paragraph (4) and redesignating para- ETORS. (c) EFFECTIVE DATE.—The amendments made graphs (5), (6), (7), (8), and (9) as paragraphs (a) AMENDMENT TO 1986 CODE.—Subpara- by this section shall apply to plans established (4), (5), (6), (7), and (8), respectively. graph (B) of section 4975(f)(6) (relating to ex- after December 31, 2000. S10018 CONGRESSIONAL RECORD — SENATE August 2, 1999

SEC. 316. REDUCTION OF ADDITIONAL PBGC PRE- ‘‘(2) DEFINITIONS.—For purposes of paragraph (4)(A), is not less than the applicable percentage MIUM FOR NEW PLANS. (1)— of the participant’s compensation for such year. (a) IN GENERAL.—Subparagraph (E) of section ‘‘(A) QUALIFIED PLAN.—The term ‘qualified ‘‘(B) APPLICABLE PERCENTAGE.—For purposes 4006(a)(3) of the Employee Retirement Income plan’ has the meaning given such term by sec- of this paragraph— Security Act of 1974 (29 U.S.C. 1306(a)(3)(E)) is tion 408(p)(2)(D)(ii). ‘‘(i) IN GENERAL.—The term ‘applicable per- amended by adding at the end the following ‘‘(B) PERMISSIBLE PLAN.—The term ‘permis- centage’ means 3 percent. new clause: sible plan’ means— ‘‘(ii) ELECTION OF LOWER PERCENTAGE.—An ‘‘(v) In the case of a new defined benefit plan, ‘‘(i) a SIMPLE plan described in section employer may elect to apply an applicable per- the amount determined under clause (ii) for any 408(p), centage of 1 percent, 2 percent or zero percent plan year shall be an amount equal to the prod- ‘‘(ii) a SIMPLE 401(k) plan described in sec- for any plan year for all employees eligible to uct of the amount determined under clause (ii) tion 401(k)(11), participate in the plan for such year if the em- and the applicable percentage. For purposes of ‘‘(iii) an eligible deferred compensation plan ployer notifies the employees of such percentage this clause, the term ‘applicable percentage’ described in section 457(b), within a reasonable period before the beginning means— ‘‘(iv) a collectively bargained plan but only if of such year. ‘‘(I) 0 percent, for the first plan year. the employees eligible to participate in such ‘‘(C) COMPENSATION LIMIT.—The compensa- ‘‘(II) 20 percent, for the second plan year. plan are not also entitled to a benefit described tion taken into account under this paragraph ‘‘(III) 40 percent, for the third plan year. in subsection (b)(5) or (c)(5), or for any year shall not exceed the limitation in ‘‘(IV) 60 percent, for the fourth plan year. ‘‘(v) a plan under which there may be made effect for such year under section 401(a)(17). ‘‘(V) 80 percent, for the fifth plan year. only— ‘‘(D) CREDIT FOR SERVICE BEFORE PLAN For purposes of this clause, a defined benefit ‘‘(I) elective deferrals described in section ADOPTED.— plan (as defined in section 3(35)) maintained by 402(g)(3), and ‘‘(i) IN GENERAL.—An employer may elect to a contributing sponsor shall be treated as a new ‘‘(II) employer matching contributions not in take into account a specified number of years of defined benefit plan for its first 5 plan years if, excess of the amounts described in subclauses (I) service (not greater than 10) performed before during the 36-month period ending on the date and (II) of section 401(k)(12)(B)(i). the adoption of the plan (each hereinafter re- of the adoption of the plan, the sponsor and ‘‘(b) SAFE ANNUITY.— ferred to as a ‘prior service year’) as service each member of any controlled group including ‘‘(1) IN GENERAL.—For purposes of this title, under the plan if the same specified number of the sponsor (or any predecessor of either) did the term ‘SAFE annuity’ means an individual years is available to all employees eligible to not establish or maintain a plan to which this retirement annuity (as defined in section 408(b) participate in the plan for the first plan year. title applies with respect to which benefits were without regard to paragraph (2) thereof and ‘‘(ii) ACCRUAL OF PRIOR SERVICE BENEFIT.— accrued for substantially the same employees as without regard to the limitation on aggregate Such an election shall be effective for a prior are in the new plan.’’. annual premiums contained in the flush lan- service year only if the requirements of this (b) EFFECTIVE DATE.—The amendments made guage of section 408(b)) if— paragraph are met for an eligible plan year by this section shall apply to plans established ‘‘(A) such annuity meets the requirements of (with respect to employees entitled to credit for after December 31, 2000. paragraphs (2) through (7), and such prior service year) by doubling the applica- SEC. 317. ELIMINATION OF USER FEE FOR RE- ‘‘(B) the only contributions to such annuity ble percentage (if any) for such plan year. For QUESTS TO IRS REGARDING NEW (other than rollover contributions) are employer purposes of the preceding sentence, an eligible PENSION PLANS. contributions. plan year is a plan year in the period of con- (a) ELIMINATION OF CERTAIN USER FEES.—The Nothing in this section shall be construed as secutive plan years (but not more than the num- Secretary of the Treasury or the Secretary’s del- preventing an employer from using a group an- ber specified under clause (i)) beginning with egate shall not require payment of user fees nuity contract which is divisible into individual the first plan year that the plan is in effect. under the program established under section retirement annuities for purposes of providing ‘‘(iii) ELECTION MAY NOT APPLY TO CERTAIN 7527 of the Internal Revenue Code of 1986 for re- SAFE annuities. PRIOR SERVICE YEARS.—This subparagraph shall quests to the Internal Revenue Service for ruling ‘‘(2) PARTICIPATION REQUIREMENTS.— not apply with respect to any prior service year letters, opinion letters, and determination letters ‘‘(A) IN GENERAL.—The requirements of this of an employee if— or similar requests with respect to the qualified paragraph are met for any year only if all em- ‘‘(I) for any part of such prior service year status of a new pension benefit plan or any ployees of the employer who— such employee was an active participant (within trust which is part of the plan. ‘‘(i) received at least $5,000 in compensation the meaning of section 219(g)(5)) under any de- (b) NEW PENSION BENEFIT PLAN.—For pur- from the employer during any 2 consecutive pre- fined benefit plan of the employer (or any pred- poses of this section— ceding years, and ecessor thereof), or (1) IN GENERAL.—The term ‘‘new pension ben- ‘‘(II) such employee received during such prior efit plan’’ means a pension, profit-sharing, ‘‘(ii) received at least $5,000 in compensation during the year, service year less than $5,000 in compensation stock bonus, annuity, or employee stock owner- from the employer. are entitled to the benefit described in para- ship plan which is maintained by one or more ‘‘(6) FUNDING.— eligible employers if such employer (or any pred- graph (5) for such year. ‘‘(A) IN GENERAL.—The requirements of this ecessor employer) has not made a prior request ‘‘(B) EXCLUDABLE EMPLOYEES.—An employer paragraph are met only if the employer is re- described in subsection (a) for such plan (or any may elect to exclude from the requirements quired to contribute to the annuity for each predecessor plan). under subparagraph (A) employees described in plan year the amount necessary to purchase a (2) ELIGIBLE EMPLOYER.—The term ‘‘eligible section 410(b)(3). SAFE annuity in the amount of the benefit ac- employer’’ means an employer (or any prede- ‘‘(3) VESTING.—The requirements of this para- crued for such year for each participant entitled cessor employer) which has not established or graph are met if the employee’s rights to any to such benefit. maintained a qualified employer plan with re- benefits under the annuity are nonforfeitable. ‘‘(B) TIME WHEN CONTRIBUTIONS DEEMED spect to which contributions were made, or ben- ‘‘(4) BENEFIT FORM.— MADE.—For purposes of this paragraph, an em- efits were accrued for service, in the 3 most re- ‘‘(A) IN GENERAL.—The requirements of this ployer shall be deemed to have made a contribu- cent taxable years ending prior to the first tax- paragraph are met if the only form of benefit tion on the last day of the preceding taxable able year in which the request is made. is— year if the payment is on account of such tax- (c) EFFECTIVE DATE.—The provisions of this ‘‘(i) a benefit payable annually in the form of able year and is made not later than the time section shall apply with respect to requests a single life annuity with monthly payments prescribed by law for filing the return for such made after December 31, 2000. (with no ancillary benefits) beginning at age 65, taxable year (including extensions thereof). SEC. 318. SAFE ANNUITIES AND TRUSTS. or ‘‘(C) PENALTY FOR FAILURE TO MAKE RE- (a) IN GENERAL.—Subpart A of part I of sub- ‘‘(ii) at the election of the participant, any QUIRED CONTRIBUTION.—The taxes imposed by chapter D of chapter 1 (relating to deferred com- other form of benefit which is the actuarial section 4971 shall apply to a failure to make the pensation, etc.) is amended by inserting after equivalent (based on the assumptions specified contribution required by this paragraph in the section 408A the following new section: in the SAFE annuity) of the benefit described in same manner as if the amount of the failure ‘‘SEC. 408B. SAFE ANNUITIES AND TRUSTS. clause (i). were an accumulated funding deficiency to ‘‘(a) EMPLOYER ELIGIBILITY.— The requirements of sections 401(a)(11) and which such section applies. ‘‘(1) IN GENERAL.—An employer may establish 411(b)(1)(H) shall apply to the benefits described ‘‘(7) LIMITATION ON DISTRIBUTIONS.—The re- and maintain a SAFE annuity or a SAFE trust in this subparagraph. quirements of this paragraph are met only if for any year only if— ‘‘(B) DIRECT TRANSFERS AND ROLLOVERS.—A payments under the contract may be made only ‘‘(A) the employer is an eligible employer (as plan shall not fail to meet the requirements of after the employee attains age 65 or when the defined in section 408(p)(2)(C)), and this paragraph by reason of permitting, at the employee separates from service, dies, or be- ‘‘(B) the employer does not maintain (and no election of the employee, a trustee-to-trustee comes disabled (within the meaning of section predecessor of the employer maintains) a quali- transfer or a rollover contribution. 72(m)(7)). fied plan (other than a permissible plan) with ‘‘(5) AMOUNT OF ANNUAL ACCRUED BENEFIT.— ‘‘(c) SAFE TRUST.— respect to which contributions were made, or ‘‘(A) IN GENERAL.—The requirements of this ‘‘(1) IN GENERAL.—For purposes of this title, benefits were accrued, for service in any year in paragraph are met for any year if the accrued the term ‘SAFE trust’ means a trust forming the period beginning with the year such annuity benefit of each participant derived from em- part of a defined benefit plan if— or trust became effective and ending with the ployer contributions for such year, when ex- ‘‘(A) such trust meets the requirements of sec- year for which the determination is being made. pressed as a benefit described in paragraph tion 401(a) as modified by subsection (d), August 2, 1999 CONGRESSIONAL RECORD — SENATE S10019

‘‘(B) a participant’s benefits under the plan Such present value shall be determined using ‘‘(4) DEFINITIONS.—The definitions in section are based solely on the balance of a separate ac- the assumptions specified in subparagraph (D). 408(p)(6) shall apply for purposes of this sec- count in such plan of such participant, ‘‘(D) ACTUARIAL ASSUMPTIONS.—In deter- tion.’’. ‘‘(C) such plan meets the requirements of mining the amount required to be contributed (b) DEDUCTION LIMITS NOT TO APPLY TO EM- paragraphs (2) through (8), and under subparagraph (A)— PLOYER CONTRIBUTIONS.— ‘‘(D) the only contributions to such trust ‘‘(i) the assumed interest rate shall be not less (1) IN GENERAL.—Section 404 (relating to de- (other than rollover contributions) are employer than 3 percent, and not greater than 5 percent, ductions for contributions of an employer to contributions. per year, pension, etc., plans), as amended by section 314, ‘‘(2) PARTICIPATION REQUIREMENTS.—A plan ‘‘(ii) the assumed mortality shall be deter- is amended by adding at the end the following meets the requirements of this paragraph for mined under the applicable mortality table (as new subsection: any year only if the requirements of subsection defined in section 417(e)(3), as modified by the ‘‘(o) SPECIAL RULES FOR SAFE ANNUITIES.— (b)(2) are met for such year. Secretary so that it does not include any as- ‘‘(1) IN GENERAL.—Employer contributions to a ‘‘(3) VESTING.—A plan meets the requirements sumption for preretirement mortality), and SAFE annuity shall be treated as if they are of this paragraph for any year only if the re- ‘‘(iii) the assumed retirement age shall be 65. made to a plan subject to the requirements of quirements of subsection (b)(3) are met for such ‘‘(E) CHANGES IN MORTALITY TABLE.—If, for this section. year. purposes of this subsection, the applicable mor- ‘‘(2) DEDUCTIBLE LIMIT.—For purposes of sub- ‘‘(4) BENEFIT FORM.— tality table under section 417(e)(3) for any plan section (a)(1)(A)(i), the amount necessary to sat- ‘‘(A) IN GENERAL.—Except as provided in sub- year is not the same as such table for the prior isfy the minimum funding requirement of section paragraph (B), a plan meets the requirements of plan year, the Secretary shall prescribe regula- 408B(b)(6) or (c)(6) shall be treated as the this paragraph only if the trustee distributes a tions for such purposes which phase in the ef- amount necessary to satisfy the minimum fund- SAFE annuity that satisfies subsection (b)(4) fect of the changes over a reasonable period of ing requirement of section 412.’’. where the annual benefit described in subsection plan years determined by the Secretary. (2) COORDINATION WITH DEDUCTION UNDER (b)(4)(A) is not less than the accrued benefit de- ‘‘(F) PENALTY FOR FAILURE TO MAKE RE- SECTION 219.— termined under paragraph (5). QUIRED CONTRIBUTION.—The taxes imposed by (A) Section 219(b) (relating to maximum ‘‘(B) DIRECT TRANSFERS TO INDIVIDUAL RE- section 4971 shall apply to a failure to make the amount of deduction), as amended by section TIREMENT PLAN OR SAFE ANNUITY.—A plan shall contribution required by this paragraph in the 301, is amended by adding at the end the fol- not fail to meet the requirements of this para- same manner as if the amount of the failure lowing new paragraph: graph by reason of permitting, as an optional were an accumulated funding deficiency to ‘‘(6) SPECIAL RULE FOR SAFE ANNUITIES.—This form of benefit, the distribution of the entire which such section applies. section shall not apply with respect to any balance to the credit of the employee. If the em- ‘‘(7) SEPARATE ACCOUNTS FOR PARTICIPANTS.— amount contributed to a SAFE annuity estab- ployee is under age 65, such distribution must be A plan meets the requirements of this paragraph lished under section 408B(b).’’. in the form of a direct trustee-to-trustee transfer for any year only if the plan provides— (B) Section 219(g)(5)(A) (defining active par- to a SAFE annuity, another SAFE trust, or a ‘‘(A) for an individual account for each par- ticipant) is amended by striking ‘‘or’’ at the end SAFE rollover plan (or, in the case of a distribu- ticipant, and of clause (v) and by adding at the end the fol- tion that does not exceed the dollar limit in ef- ‘‘(B) for benefits based solely on— lowing new clause: fect under section 411(a)(11)(A), any other indi- ‘‘(i) the amount contributed to the partici- ‘‘(vii) any SAFE annuity (within the meaning vidual retirement plan). pant’s account, of section 408B), or’’. ‘‘(C) SAFE ROLLOVER PLAN.—For purposes of ‘‘(ii) any income, expenses, gains and losses, (c) CONTRIBUTIONS AND DISTRIBUTIONS.— this section, the term ‘SAFE rollover plan’ and any forfeitures of accounts of other partici- (1) Section 402 (relating to taxability of bene- means an individual retirement plan for the pants which may be allocated to such partici- ficiary of employees’ trust) is amended by add- benefit of the employee to which a rollover was pant’s account, and ing at the end the following new subsection: made from a SAFE annuity, SAFE trust, or an- ‘‘(iii) the amount of any unfunded annuity ‘‘(l) TREATMENT OF SAFE ANNUITIES.—Rules other SAFE rollover plan. amount with respect to the participant. similar to the rules of paragraphs (1) and (3) of ‘‘(5) AMOUNT OF ANNUAL ACCRUED BENEFIT.— ‘‘(8) TRUST MAY NOT HOLD SECURITIES WHICH subsection (h) shall apply to contributions and A plan meets the requirements of this paragraph ARE NOT READILY TRADABLE.—A plan meets the distributions with respect to a SAFE annuities for any year only if the requirements of sub- requirements of this paragraph only if the plan under section 408B.’’. section (b)(5) are met for such year. prohibits the trust from holding directly or indi- (2) Section 408(d)(3) is amended by adding at ‘‘(6) FUNDING.— rectly securities which are not readily tradable the end the following new subparagraph: ‘‘(A) IN GENERAL.—A plan meets the require- on an established securities market or otherwise. ‘‘(H) SAFE ANNUITIES.—This paragraph shall ments of this paragraph for any year only if— ‘‘(i) the requirements of subsection (b)(6) are Nothing in this paragraph shall prohibit the not apply to any amount paid or distributed out met for such year, trust from holding insurance company products of a SAFE annuity (as defined in section 408B) ‘‘(ii) in the case of a plan which has an un- regulated by State law. unless it is paid in a trustee-to-trustee transfer funded annuity amount with respect to the ac- ‘‘(d) SPECIAL RULES FOR SAFE ANNUITIES AND into another SAFE annuity.’’. count of any participant, the plan requires that TRUSTS.— (d) INCREASED PENALTY ON EARLY WITH- the employer make an additional contribution to ‘‘(1) CERTAIN REQUIREMENTS TREATED AS DRAWALS.—Section 72(t) (relating to additional such plan (at the time the annuity contract to MET.—For purposes of section 401(a), a SAFE tax on early distributions) is amended by adding which such amount relates is purchased) equal annuity and a SAFE trust shall be treated as at the end the following new paragraph: to the unfunded annuity amount, and meeting the requirements of the following provi- ‘‘(7) SPECIAL RULES FOR SAFE ANNUITIES AND ‘‘(iii) in the case of a plan which has an un- sions: TRUSTS.—In the case of any amount received funded prior year liability as of the close of ‘‘(A) Section 401(a)(4) (relating to non- from a SAFE annuity or a SAFE trust (within such plan year, the plan requires that the em- discrimination rules). the meaning of section 408B), paragraph (1) ployer make an additional contribution to such ‘‘(B) Section 401(a)(26) (relating to minimum shall be applied by substituting ‘20 percent’ for plan for such year equal to the amount of such participation). ‘10 percent’.’’. ‘‘(C) Section 410 (relating to minimum partici- IMPLIFIED MPLOYER EPORTS unfunded prior year liability no later than 81⁄2 (e) S E R .— months following the end of the plan year. pation and coverage requirements). (1) SAFE ANNUITIES.—Section 408(l) (relating ‘‘(B) UNFUNDED ANNUITY AMOUNT.—For pur- ‘‘(D) Except as provided in subsection to simplified employer reports) is amended by poses of this paragraph, the term ‘unfunded an- (b)(4(A), section 411(b) (relating to accrued ben- adding at the end the following new paragraph: nuity amount’ means, with respect to the ac- efit requirements). ‘‘(3) SAFE ANNUITIES.— count of any participant for whom an annuity ‘‘(E) Section 412 (relating to minimum funding ‘‘(A) SIMPLIFIED REPORT.—The employer is being purchased, the excess (if any) of— standards). maintaining any SAFE annuity (within the ‘‘(i) the amount necessary to purchase an an- ‘‘(F) Section 415 (relating to limitations on meaning of section 408B) shall file a simplified nuity contract which meets the requirements of benefits and contributions under qualified annual return with the Secretary containing subsection (b)(4) in the amount of the partici- plans). only the information described in subparagraph pant’s accrued benefit determined under para- ‘‘(G) Section 416 (relating to special rules for (B). graph (5), over top-heavy plans). ‘‘(B) CONTENTS.—The return required by sub- ‘‘(ii) the balance in such account at the time ‘‘(2) CONTRIBUTIONS NOT TAKEN INTO ACCOUNT paragraph (A) shall set forth— such contract is purchased. IN APPLYING LIMITS TO OTHER PLANS.— ‘‘(i) the name and address of the employer, ‘‘(C) UNFUNDED PRIOR YEAR LIABILITY.—For ‘‘(A) DEDUCTION LIMITS.—Contributions to a ‘‘(ii) the date the plan was adopted, purposes of this paragraph, the term ‘unfunded SAFE annuity or a SAFE trust shall not be ‘‘(iii) the number of employees of the em- prior year liability’ means, with respect to any taken into account in applying sections 404 to ployer, plan year, the excess (if any) of— other plans maintained by the employer. ‘‘(iv) the number of such employees who are ‘‘(i) the aggregate of the present value of the ‘‘(B) BENEFIT LIMITS.—A SAFE annuity or a eligible to participate in the plan, accrued liabilities under the plan as of the close SAFE trust shall be treated as a defined benefit ‘‘(v) the total amount contributed by the em- of the prior plan year, over plan for purposes of section 415. ployer to each such annuity for such year and ‘‘(ii) the value of the plan’s assets determined ‘‘(3) USE OF DESIGNATED FINANCIAL INSTITU- the minimum amount required under section under section 412(c)(2) as of the close of the TIONS.—A rule similar to the rule of section 408B to be so contributed, plan year (determined without regard to any 408(p)(7) (without regard to the last sentence ‘‘(vi) the percentage elected under section contributions for such plan year). thereof) shall apply for purposes of this section. 408B(b)(5)(B), and S10020 CONGRESSIONAL RECORD — SENATE August 2, 1999

‘‘(vii) the number of employees with respect to ‘‘(2) SUMMARY DESCRIPTION.—The issuer of ‘‘(1) IN GENERAL.—An applicable employer whom contributions are required to be made for any SAFE annuity shall provide to the employer plan shall not be treated as failing to meet any such year under section 408B(b)(5)(D). maintaining the annuity for each year a de- requirement of this title solely because the plan ‘‘(C) REPORTING BY ISSUER OF SAFE ANNU- scription containing the following information: permits an eligible participant to make addi- ITY.— ‘‘(A) The name and address of the employer tional elective deferrals in any plan year. ‘‘(i) IN GENERAL.—The issuer of each SAFE and the issuer. ‘‘(2) LIMITATION ON AMOUNT OF ADDITIONAL annuity shall provide to the owner of the annu- ‘‘(B) The requirements for eligibility for par- DEFERRALS.— ity for each year a statement setting forth as of ticipation. ‘‘(A) IN GENERAL.—A plan shall not permit ad- the close of such year— ‘‘(C) The benefits provided with respect to the ditional elective deferrals under paragraph (1) ‘‘(I) the benefits guaranteed at age 65 under annuity. for any year in an amount greater than the less- the annuity, and ‘‘(D) The procedures for, and effects of, with- er of— ‘‘(II) the cash surrender value of the annuity. drawals (including rollovers) from the annuity. ‘‘(i) the applicable percentage of the applica- ‘‘(3) EMPLOYEE NOTIFICATION.—The employer ‘‘(ii) SUMMARY DESCRIPTION.—The issuer of ble dollar amount for such elective deferrals for shall provide each employee eligible to partici- any SAFE annuity shall provide to the employer such year, or pate in the SAFE annuity with the description maintaining the annuity for each year a de- ‘‘(ii) the excess (if any) of— described in paragraph (2) at the same time as scription containing the following information: ‘‘(I) the participant’s compensation for the the notification required under section ‘‘(I) The name and address of the employer year, over 408B(b)(5)(B) of the Internal Revenue Code of and the issuer. ‘‘(II) any other elective deferrals of the partic- 1986.’’. ‘‘(II) The requirements for eligibility for par- ipant for such year which are made without re- (3) WAIVER OF FUNDING STANDARDS.—Section ticipation. gard to this subsection. 301(a) of such Act (29 U.S.C. 1081) is amended ‘‘(III) The benefits provided with respect to ‘‘(B) APPLICABLE PERCENTAGE.—For purposes by striking ‘‘or’’ at the end of paragraph (9), by the annuity. of this paragraph, the applicable percentage striking the period at the end of paragraph (10) ‘‘(IV) The procedures for, and effects of, with- shall be determined in accordance with the fol- and inserting ‘‘; or’’, and by adding at the end drawals (including rollovers) from the annuity. lowing table: ‘‘(D) TIME AND MANNER OF REPORTING.—Any the following new paragraph: ‘‘(11) any plan providing for the purchase of ‘‘For taxable years be- The applicable dollar return, report, or statement required under this any SAFE annuity or any SAFE trust (as such ginning in: amount is: paragraph shall be made in such form and at terms are defined in section 408B of such 2001 ...... 10 percent such time as the Secretary shall prescribe.’’. Code).’’. 2002 ...... 20 percent (2) SAFE TRUSTS.—Section 6059 (relating to (h) EFFECTIVE DATE.—The amendments made 2003 ...... 30 percent actuarial reports) is amended by redesignating by this section shall apply to years beginning 2004 ...... 40 percent subsections (c) and (d) as subsections (d) and after December 31, 2000. 2005 and thereafter ...... 50 percent. (e), respectively, and by inserting after sub- ‘‘(3) TREATMENT OF CONTRIBUTIONS.—In the section (b) the following new subsection: SEC. 319. MODIFICATION OF TOP-HEAVY RULES. (a) MATCHING CONTRIBUTIONS TAKEN INTO case of any contribution to a plan under para- ‘‘(c) SAFE TRUSTS.—In the case of a SAFE graph (1)— trust (within the meaning of section 408B), the ACCOUNT FOR MINIMUM CONTRIBUTION RE- ‘‘(A) such contribution shall not, with respect Secretary shall require a simplified actuarial re- QUIREMENTS.—Section 416(c)(2)(A) (relating to to the year in which the contribution is made— port which contains information similar to the defined contribution plans) is amended by add- ‘‘(i) be subject to any otherwise applicable information required in section 408(l)(3)(B).’’. ing at the end the following: ‘‘Employer match- ing contributions (as defined in section limitation contained in section 402(g), 402(h), (f) CONFORMING AMENDMENTS.— 403(b), 404(a), 404(h), 408, 415, or 457, or (1) Section 280G(b)(6) is amended by striking 401(m)(4)(A)) shall be taken into account for ‘‘(ii) be taken into account in applying such ‘‘or’’ at the end of subparagraph (C), by striking purposes of this subparagraph.’’. (b) ELIMINATION OF FAMILY ATTRIBUTION.— limitations to other contributions or benefits the period at the end of subparagraph (D) and Section 416(i)(1)(B) (defining 5-percent owner) is under such plan or any other such plan, and inserting ‘‘, or’’ and by adding after subpara- amended by adding at the end the following ‘‘(B) such plan shall not be treated as failing graph (D) the following new subparagraph: new clause: to meet the requirements of section 401(a)(4), ‘‘(E) a SAFE annuity described in section ‘‘(iv) FAMILY ATTRIBUTION DISREGARDED.— 401(a)(26), 401(k)(3), 401(k)(11), 401(k)(12), 408B.’’. Solely for purposes of applying this paragraph 401(m), 403(b)(12), 408(k), 408(p), 408B, 410(b), or (2) Clause (ii) of section 408(p)(2)(D) is amend- (and not for purposes of any provision of this 416 by reason of the making of (or the right to ed by inserting before the period ‘‘(other than title which incorporates by reference the defini- make) such contribution. clause (vii) of such subparagraph (A))’’. tion of a key employee or 5-percent owner under ‘‘(4) ELIGIBLE PARTICIPANT.—For purposes of (3) Subsections (b), (c), (m)(4)(B), and this paragraph), section 318 shall be applied this subsection, the term ‘eligible participant’ (n)(3)(B) of section 414 are each amended by in- without regard to subsection (a)(1) thereof in means, with respect to any plan year, a partici- serting ‘‘408B,’’ after ‘‘408(p),’’. determining whether any person is a 5-percent pant in a plan— (4) Section 4972(d)(1)(A) is amended by strik- owner.’’. ‘‘(A) who has attained the age of 50 before the ing ‘‘and’’ at the end of clause (iii), by striking (c) DEFINITION OF TOP-HEAVY PLANS.—Para- close of the plan year, and the period at the end of clause (iv) and inserting graph (4) of section 416(g) (relating to other spe- ‘‘(B) with respect to whom no other elective ‘‘, and’’, and by adding after clause (iv) the fol- cial rules for top-heavy plans) is amended by deferrals may (without regard to this sub- lowing new clause: adding at the end the following new subpara- section) be made to the plan for the plan year ‘‘(v) any SAFE annuity (within the meaning graph: by reason of the application of any limitation or of section 408B).’’. ‘‘(H) CASH OR DEFERRED ARRANGEMENTS USING other restriction described in paragraph (3) or (5) The table of sections for subpart A of part ALTERNATIVE METHODS OF MEETING NON- contained in the terms of the plan. I of subchapter D of chapter 1 is amended by in- DISCRIMINATION REQUIREMENTS.—The term ‘top- ‘‘(5) OTHER DEFINITIONS AND RULES.—For pur- serting after the item relating to section 408A heavy plan’ shall not include a plan which con- poses of this subsection— the following new item: sists solely of— ‘‘(A) APPLICABLE DOLLAR AMOUNT.—The term ‘‘Sec. 408B. SAFE annuities and trusts.’’. ‘‘(i) a cash or deferred arrangement which ‘applicable dollar amount’ means, with respect (g) MODIFICATIONS OF ERISA.— meets the requirements of section 401(k)(12), and to any year, the amount in effect under section (1) EXEMPTION FROM INSURANCE COVERAGE.— ‘‘(ii) matching contributions with respect to 402(g)(1)(B), 408(p)(2)(E)(i), or 457(e)(15)(A), Subsection (b) of section 4021 of the Employee which the requirements of section 401(m)(11) are whichever is applicable to an applicable em- Retirement Income Security Act of 1974 (29 met. ployer plan, for such year. U.S.C. 1321) is amended by striking ‘‘or’’ at the If, but for this subparagraph, a plan would be ‘‘(B) APPLICABLE EMPLOYER PLAN.—The term end of paragraph (12), by striking the period at treated as a top-heavy plan because it is a mem- ‘applicable employer plan’ means— the end of paragraph (13) and inserting ‘‘; or’’, ber of an aggregation group which is a top- ‘‘(i) an employees’ trust described in section and by adding at the end the following new heavy group, contributions under the plan may 401(a) which is exempt from tax under section paragraph: be taken into account in determining whether 501(a), ‘‘(14) which is established and maintained as any other plan in the group meets the require- ‘‘(ii) a plan under which amounts are contrib- part of a SAFE trust (as defined in section 408B ments of subsection (c)(2).’’. uted by an individual’s employer for an annuity of the Internal Revenue Code of 1986).’’. (d) EFFECTIVE DATE.—The amendments made contract described in section 403(b), (2) REPORTING REQUIREMENTS.—Section 101 of by this section shall apply to plan years begin- ‘‘(iii) an eligible deferred compensation plan such Act (29 U.S.C. 1021) is amended by redesig- ning after December 31, 2000. under section 457 of an eligible employer as de- nating the second subsection (h) as subsection Subtitle C—Enhancing Fairness for Women fined in section 457(e)(1)(A), and (j) and by inserting after the first subsection (h) SEC. 321. CATCHUP CONTRIBUTIONS FOR INDI- ‘‘(iv) an arrangement meeting the require- the following new subsection: VIDUALS AGE 50 OR OVER. ments of section 408 (k) or (p). ‘‘(i) SAFE ANNUITIES.— (a) ELECTIVE DEFERRALS.—Section 414 (relat- ‘‘(C) ELECTIVE DEFERRAL.—The term ‘elective ‘‘(1) NO EMPLOYER REPORTS.—Except as pro- ing to definitions and special rules) is amended deferral’ has the meaning given such term by vided in this subsection, no report shall be re- by adding at the end the following new sub- subsection (u)(2)(C). quired under this section by an employer main- section: ‘‘(D) EXCEPTION FOR SECTION 457 PLANS.—This taining a SAFE annuity under section 408B(b) ‘‘(v) CATCHUP CONTRIBUTIONS FOR INDIVID- subsection shall not apply to an applicable em- of the Internal Revenue Code of 1986. UALS AGE 50 OR OVER.— ployer plan described in paragraph (5)(B)(iii) August 2, 1999 CONGRESSIONAL RECORD — SENATE S10021 for any year to which section 457(b)(3) ap- participant which may be taken into account prohibited from making elective and employee plies.’’. for purposes of this subparagraph for all years contributions in order for a distribution to be (b) INDIVIDUAL RETIREMENT PLANS.—Section may not exceed $40,000. deemed necessary to satisfy financial need shall 219(b), as amended by sections 301 and 318, is ‘‘(C) ANNUAL ADDITION.—For purposes of this be equal to 6 months. amended by adding at the end the following paragraph, the term ‘annual addition’ has the (b) EFFECTIVE DATE.—The revised regulations new paragraph: meaning given such term by paragraph (2).’’. under subsection (a) shall apply to years begin- ‘‘(7) CATCHUP CONTRIBUTIONS.— (G) Subparagraph (B) of section 402(g)(7) (as ning after December 31, 2000. ‘‘(A) IN GENERAL.—In the case of an indi- redesignated by section 312(a)) is amended by SEC. 325. FASTER VESTING OF CERTAIN EM- vidual who has attained the age of 50 before the inserting before the period at the end the fol- PLOYER MATCHING CONTRIBU- close of the taxable year, the dollar amount in lowing: ‘‘(as in effect before the enactment of TIONS. effect under paragraph (1)(A) for such taxable the Taxpayer Refund Act of 1999)’’. (a) AMENDMENTS TO 1986 CODE.—Section year shall be equal to the applicable percentage (3) EFFECTIVE DATE.—The amendments made 411(a) (relating to minimum vesting standards) of such amount determined without regard to by this subsection shall apply to years begin- is amended— this paragraph. ning after December 31, 2000. (1) in paragraph (2), by striking ‘‘A plan’’ and ‘‘(B) APPLICABLE PERCENTAGE.—For purposes (b) SPECIAL RULES FOR SECTIONS 403(b) AND inserting ‘‘Except as provided in paragraph (12), of this paragraph, the applicable percentage 408.— a plan’’, and shall be determined in accordance with the fol- (1) IN GENERAL.—Subsection (k) of section 415 (2) by adding at the end the following: lowing table: is amended by adding at the end the following ‘‘(12) FASTER VESTING FOR MATCHING CON- ‘‘For taxable years be- The applicable dollar new paragraph: TRIBUTIONS.—In the case of matching contribu- ginning in: amount is: ‘‘(4) SPECIAL RULES FOR SECTIONS 403(b) AND tions (as defined in section 401(m)(4)(A)), para- 2001 ...... 110 percent 408.—For purposes of this section, any annuity graph (2) shall be applied— 2002 ...... 120 percent contract described in section 403(b) for the ben- ‘‘(A) by substituting ‘3 years’ for ‘5 years’ in 2003 ...... 130 percent efit of a participant shall be treated as a defined subparagraph (A), and 2004 ...... 140 percent contribution plan maintained by each employer ‘‘(B) by substituting the following table for 2005 and thereafter ...... 150 percent.’’. with respect to which the participant has the the table contained in subparagraph (B): (c) EFFECTIVE DATE.—The amendment made control required under subsection (b) or (c) of The nonforfeitable by this section shall apply to contributions in section 414 (as modified by subsection (h)). For ‘‘Years of service: percentage is: taxable years beginning after December 31, 2000. purposes of this section, any contribution by an 2 ...... 20 SEC. 322. EQUITABLE TREATMENT FOR CON- employer to a simplified employee pension plan 3 ...... 40 TRIBUTIONS OF EMPLOYEES TO DE- for an individual for a taxable year shall be 4 ...... 60 FINED CONTRIBUTION PLANS. treated as an employer contribution to a defined 5 ...... 80 (a) EQUITABLE TREATMENT.— contribution plan for such individual for such 6 ...... 100.’’. (1) IN GENERAL.—Subparagraph (B) of section year.’’. (b) AMENDMENTS TO ERISA.—Section 203(a) of 415(c)(1) (relating to limitation for defined con- (2) EFFECTIVE DATE.—The amendments made the Employee Retirement Income Security Act of tribution plans) is amended by striking ‘‘25 per- by paragraph (1) shall apply to limitation years 1974 (29 U.S.C. 1053(a)) is amended— cent’’ and inserting ‘‘100 percent’’. beginning after December 31, 2000. (1) in paragraph (2), by striking ‘‘A plan’’ and (2) APPLICATION TO SECTION 403(b).—Section (c) DEFERRED COMPENSATION PLANS OF STATE inserting ‘‘Except as provided in paragraph (4), 403(b) is amended— AND LOCAL GOVERNMENTS AND TAX-EXEMPT OR- a plan’’, and (A) by striking ‘‘the exclusion allowance for GANIZATIONS.— (2) by adding at the end the following: ASTER VESTING FOR MATCHING CONTRIBU such taxable year’’ in paragraph (1) and insert- (1) IN GENERAL.—Subparagraph (B) of section ‘‘(4) F - ing ‘‘the applicable limit under section 415’’, 457(b)(2) (relating to salary limitation on eligible TIONS.—In the case of matching contributions (B) by striking paragraph (2), and deferred compensation plans) is amended by (as defined in section 401(m)(4)(A) of the Inter- nal Revenue Code of 1986), paragraph (2) shall (C) by inserting ‘‘or any amount received by a striking ‘‘331⁄3 percent’’ and inserting ‘‘100 per- former employee after the 5th taxable year fol- cent’’. be applied— ‘‘(A) by substituting ‘3 years’ for ‘5 years’ in lowing the taxable year in which such employee (2) EFFECTIVE DATE.—The amendment made was terminated’’ before the period at the end of by this subsection shall apply to years begin- subparagraph (A), and the second sentence of paragraph (3). ning after December 31, 2000. ‘‘(B) by substituting the following table for the table contained in subparagraph (B): (3) CONFORMING AMENDMENTS.— SEC. 323. CLARIFICATION OF TAX TREATMENT OF (A) Subsection (f) of section 72 is amended by DIVISION OF SECTION 457 PLAN BEN- The nonforfeitable striking ‘‘section 403(b)(2)(D)(iii))’’ and insert- EFITS UPON DIVORCE. ‘‘Years of service: percentage is: ing ‘‘section 403(b)(2)(D)(iii), as in effect before (a) IN GENERAL.—Section 414(p)(11) (relating 2 ...... 20 the enactment of the Taxpayer Refund Act of to application of rules to governmental and 3 ...... 40 1999)’’. church plans) is amended— 4 ...... 60 (B) Section 404(a)(10)(B) is amended by strik- (1) by inserting ‘‘or an eligible deferred com- 5 ...... 80 ing ‘‘, the exclusion allowance under section pensation plan (within the meaning of section 6 ...... 100.’’. 403(b)(2),’’. 457(b))’’ after ‘‘subsection (e))’’, and (c) EFFECTIVE DATES.— (1) IN GENERAL.—Except as provided in para- (C) Section 415(a)(2) is amended by striking ‘‘, (2) in the heading, by striking ‘‘GOVERN- graph (2), the amendments made by this section and the amount of the contribution for such MENTAL AND CHURCH PLANS’’ and inserting shall apply to contributions for plan years be- portion shall reduce the exclusion allowance as ‘‘CERTAIN OTHER PLANS’’. ginning after December 31, 2000. provided in section 403(b)(2)’’. (b) WAIVER OF CERTAIN DISTRIBUTION RE- (2) COLLECTIVE BARGAINING AGREEMENTS.—In (D) Section 415(c)(3) is amended by adding at QUIREMENTS.—Paragraph (10) of section 414(p) the case of a plan maintained pursuant to 1 or the end the following new subparagraph: is amended by striking ‘‘and section 409(d)’’ and more collective bargaining agreements between ‘‘(E) ANNUITY CONTRACTS.—In the case of an inserting ‘‘section 409(d), and section 457(d)’’. employee representatives and 1 or more employ- annuity contract described in section 403(b), the (c) TAX TREATMENT OF PAYMENTS FROM A ers ratified by the date of enactment of this Act, term ‘participant’s compensation’ means the SECTION 457 PLAN.—Subsection (p) of section 414 participant’s includible compensation deter- is amended by redesignating paragraph (12) as the amendments made by this section shall not mined under section 403(b)(3).’’. paragraph (13) and inserting after paragraph apply to contributions on behalf of employees (E) Section 415(c) is amended by striking para- (11) the following new paragraph: covered by any such agreement for plan years beginning before the earlier of— graph (4). ‘‘(12) TAX TREATMENT OF PAYMENTS FROM A (A) the later of— (F) Section 415(c)(7) is amended to read as fol- SECTION 457 PLAN.—If a distribution or payment (i) the date on which the last of such collec- lows: from an eligible deferred compensation plan de- tive bargaining agreements terminates (deter- ‘‘(7) CERTAIN CONTRIBUTIONS BY CHURCH scribed in section 457(b) is made pursuant to a mined without regard to any extension thereof PLANS NOT TREATED AS EXCEEDING LIMIT.— qualified domestic relations order, rules similar on or after such date of enactment), or ‘‘(A) IN GENERAL.—Notwithstanding any other to the rules of section 402(e)(1)(A) shall apply to (ii) January 1, 2001, or provision of this subsection, at the election of a such distribution or payment.’’. (B) January 1, 2005. participant who is an employee of a church or (d) EFFECTIVE DATE.—The amendments made a convention or association of churches, includ- (3) SERVICE REQUIRED.—With respect to any by this section shall apply to transfers, distribu- plan, the amendments made by this section shall ing an organization described in section tions, and payments made after December 31, 414(e)(3)(B)(ii), contributions and other addi- not apply to any employee before the date that 2000. such employee has 1 hour of service under such tions for an annuity contract or retirement in- SEC. 324. MODIFICATION OF SAFE HARBOR RE- come account described in section 403(b) with re- plan in any plan year to which the amendments LIEF FOR HARDSHIP WITHDRAWALS made by this section apply. spect to such participant, when expressed as an FROM CASH OR DEFERRED AR- annual addition to such participant’s account, RANGEMENTS. Subtitle D—Increasing Portability for shall be treated as not exceeding the limitation (a) IN GENERAL.—The Secretary of the Treas- Participants of paragraph (1) if such annual addition is not ury shall revise the regulations relating to hard- SEC. 331. ROLLOVERS ALLOWED AMONG VARIOUS in excess of $10,000. ship distributions under section TYPES OF PLANS. ‘‘(B) $40,000 AGGREGATE LIMITATION.—The 401(k)(2)(B)(i)(IV) of the Internal Revenue Code (a) ROLLOVERS FROM AND TO SECTION 457 total amount of additions with respect to any of 1986 to provide that the period an employee is PLANS.— S10022 CONGRESSIONAL RECORD — SENATE August 2, 1999

(1) ROLLOVERS FROM SECTION 457 PLANS.— agrees to separately account for amounts rolled (8) Section 408(a)(1) is amended by striking (A) IN GENERAL.—Section 457(e) (relating to into such plan from eligible retirement plans not ‘‘or 403(b)(8)’’ and inserting ‘‘, 403(b)(8), or other definitions and special rules) is amended described in such clause, the plan described in 457(e)(16)’’. by adding at the end the following: such clause may not accept transfers or roll- (9) Subparagraphs (A) and (B) of section ‘‘(16) ROLLOVER AMOUNTS.— overs from such retirement plans.’’. 415(b)(2) are each amended by striking ‘‘and ‘‘(A) GENERAL RULE.—In the case of an eligi- (C) 10 PERCENT ADDITIONAL TAX.—Subsection 408(d)(3)’’ and inserting ‘‘403(b)(8), 408(d)(3), ble deferred compensation plan established and (t) of section 72 (relating to 10-percent addi- and 457(e)(16)’’. maintained by an employer described in sub- tional tax on early distributions from qualified (10) Section 415(c)(2) is amended by striking section (e)(1)(A), if— retirement plans) is amended by adding at the ‘‘and 408(d)(3)’’ and inserting ‘‘408(d)(3), and ‘‘(i) any portion of the balance to the credit of end the following new paragraph: 457(e)(16)’’. an employee in such plan is paid to such em- ‘‘(9) SPECIAL RULE FOR ROLLOVERS TO SECTION (11) Section 4973(b)(1)(A) is amended by strik- ployee in an eligible rollover distribution (within 457 PLANS.—For purposes of this subsection, a ing ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or the meaning of section 402(c)(4) without regard distribution from an eligible deferred compensa- 457(e)(16)’’. to subparagraph (C) thereof), tion plan (as defined in section 457(b)) of an em- (f) EFFECTIVE DATE; SPECIAL RULE.— ‘‘(ii) the employee transfers any portion of the ployer described in section 457(e)(1)(A) shall be (1) EFFECTIVE DATE.—The amendments made property such employee receives in such dis- treated as a distribution from a qualified retire- by this section shall apply to distributions after tribution to an eligible retirement plan described ment plan described in 4974(c)(1) to the extent December 31, 2000. in section 402(c)(8)(B), and that such distribution is attributable to an (2) SPECIAL RULE.—Notwithstanding any ‘‘(iii) in the case of a distribution of property amount transferred to an eligible deferred com- other provision of law, subsections (h)(3) and other than money, the amount so transferred pensation plan from a qualified retirement plan (h)(5) of section 1122 of the Tax Reform Act of consists of the property distributed, (as defined in section 4974(c)).’’. 1986 shall not apply to any distribution from an then such distribution (to the extent so trans- (b) ALLOWANCE OF ROLLOVERS FROM AND TO eligible retirement plan (as defined in clause (iii) ferred) shall not be includible in gross income 403(b) PLANS.— or (iv) of section 402(c)(8)(B) of the Internal for the taxable year in which paid. (1) ROLLOVERS FROM SECTION 403(b) PLANS.— Revenue Code of 1986) on behalf of an indi- ‘‘(B) CERTAIN RULES MADE APPLICABLE.—The Section 403(b)(8)(A)(ii) (relating to rollover vidual if there was a rollover to such plan on rules of paragraphs (2) through (7) (other than amounts) is amended by striking ‘‘such distribu- behalf of such individual which is permitted paragraph (4)(C)) and (9) of section 402(c) and tion’’ and all that follows and inserting ‘‘such solely by reason of any amendment made by this section 402(f) shall apply for purposes of sub- distribution to an eligible retirement plan de- section. paragraph (A). scribed in section 402(c)(8)(B), and’’. SEC. 332. ROLLOVERS OF IRAS INTO WORKPLACE ‘‘(C) REPORTING.—Rollovers under this para- (2) ROLLOVERS TO SECTION 403(b) PLANS.—Sec- RETIREMENT PLANS. graph shall be reported to the Secretary in the tion 402(c)(8)(B) (defining eligible retirement (a) IN GENERAL.—Subparagraph (A) of section same manner as rollovers from qualified retire- plan), as amended by subsection (a), is amended 408(d)(3) (relating to rollover amounts) is ment plans (as defined in section 4974(c)).’’. by striking ‘‘and’’ at the end of clause (iv), by amended by adding ‘‘or’’ at the end of clause (B) DEFERRAL LIMIT DETERMINED WITHOUT RE- striking the period at the end of clause (v) and (i), by striking clauses (ii) and (iii), and by add- GARD TO ROLLOVER AMOUNTS.—Section 457(b)(2) inserting ‘‘, and’’, and by inserting after clause ing at the end the following: (defining eligible deferred compensation plan) is (v) the following new clause: ‘‘(ii) the entire amount received (including amended by inserting ‘‘(other than rollover ‘‘(vi) an annuity contract described in section money and any other property) is paid into an amounts)’’ after ‘‘taxable year’’. 403(b).’’. eligible retirement plan for the benefit of such (C) DIRECT ROLLOVER.—Paragraph (1) of sec- (c) EXPANDED EXPLANATION TO RECIPIENTS OF individual not later than the 60th day after the tion 457(d) is amended by striking ‘‘and’’ at the ROLLOVER DISTRIBUTIONS.—Paragraph (1) of date on which the payment or distribution is re- end of subparagraph (A), by striking the period section 402(f) (relating to written explanation to ceived, except that the maximum amount which at the end of subparagraph (B) and inserting ‘‘, recipients of distributions eligible for rollover may be paid into such plan may not exceed the and’’, and by inserting after subparagraph (B) treatment) is amended by striking ‘‘and’’ at the portion of the amount received which is includ- the following: end of subparagraph (C), by striking the period ible in gross income (determined without regard ‘‘(C) in the case of a plan maintained by an at the end of subparagraph (D) and inserting ‘‘, to this paragraph). employer described in subsection (e)(1)(A), the and’’, and by adding at the end the following For purposes of clause (ii), the term ‘eligible re- plan meets requirements similar to the require- new subparagraph: tirement plan’ means an eligible retirement plan ments of section 401(a)(31). ‘‘(E) of the provisions under which distribu- described in clause (iii), (iv), (v), or (vi) of sec- Any amount transferred in a direct trustee-to- tions from the eligible retirement plan receiving tion 402(c)(8)(B).’’. trustee transfer in accordance with section the distribution may be subject to restrictions (b) CONFORMING AMENDMENTS.— 401(a)(31) shall not be includible in gross income and tax consequences which are different from (1) Paragraph (1) of section 403(b) is amended for the taxable year of transfer.’’. those applicable to distributions from the plan by striking ‘‘section 408(d)(3)(A)(iii)’’ and in- (D) WITHHOLDING.— making such distribution.’’. serting ‘‘section 408(d)(3)(A)(ii)’’. (i) Paragraph (12) of section 3401(a) is amend- (d) SPOUSAL ROLLOVERS.—Section 402(c)(9) (2) Clause (i) of section 408(d)(3)(D) is amend- ed by adding at the end the following: (relating to rollover where spouse receives dis- ed by striking ‘‘(i), (ii), or (iii)’’ and inserting ‘‘(E) under or to an eligible deferred com- tribution after death of employee) is amended by ‘‘(i) or (ii)’’. pensation plan which, at the time of such pay- striking ‘‘; except that’’ and all that follows up (3) Subparagraph (G) of section 408(d)(3) is ment, is a plan described in section 457(b) main- to the end period. amended to read as follows: tained by an employer described in section (e) CONFORMING AMENDMENTS.— ‘‘(G) SIMPLE RETIREMENT ACCOUNTS.—In the 457(e)(1)(A); or’’. (1) Section 72(o)(4) is amended by striking case of any payment or distribution out of a (ii) Paragraph (3) of section 3405(c) is amend- ‘‘and 408(d)(3)’’ and inserting ‘‘403(b)(8), simple retirement account (as defined in sub- ed to read as follows: 408(d)(3), and 457(e)(16)’’. section (p)) to which section 72(t)(6) applies, this ‘‘(3) ELIGIBLE ROLLOVER DISTRIBUTION.—For (2) Section 219(d)(2) is amended by striking paragraph shall not apply unless such payment purposes of this subsection, the term ‘eligible ‘‘or 408(d)(3)’’ and inserting ‘‘408(d)(3), or or distribution is paid into another simple retire- rollover distribution’ has the meaning given 457(e)(16)’’. ment account.’’. such term by section 402(f)(2)(A).’’. (3) Section 401(a)(31)(B) is amended by strik- (c) EFFECTIVE DATE; SPECIAL RULE.— (iii) LIABILITY FOR WITHHOLDING.—Subpara- ing ‘‘and 403(a)(4)’’ and inserting ‘‘, 403(a)(4), (1) EFFECTIVE DATE.—The amendments made graph (B) of section 3405(d)(2) is amended by 403(b)(8), and 457(e)(16)’’. by this section shall apply to distributions after striking ‘‘or’’ at the end of clause (ii), by strik- (4) Subparagraph (A) of section 402(f)(2) is December 31, 2000. ing the period at the end of clause (iii) and in- amended by striking ‘‘or paragraph (4) of sec- (2) SPECIAL RULE.—Notwithstanding any serting ‘‘, or’’, and by adding at the end the fol- tion 403(a)’’ and inserting ‘‘, paragraph (4) of other provision of law, subsections (h)(3) and lowing: section 403(a), subparagraph (A) of section (h)(5) of section 1122 of the Tax Reform Act of ‘‘(iv) section 457(b).’’. 403(b)(8), or subparagraph (A) of section 1986 shall not apply to any distribution from an (2) ROLLOVERS TO SECTION 457 PLANS.— 457(e)(16)’’. eligible retirement plan (as defined in clause (iii) (A) IN GENERAL.—Section 402(c)(8)(B) (defin- (5) Paragraph (1) of section 402(f) is amended or (iv) of section 402(c)(8)(B) of the Internal ing eligible retirement plan) is amended by strik- by striking ‘‘from an eligible retirement plan’’. Revenue Code of 1986) on behalf of an indi- ing ‘‘and’’ at the end of clause (iii), by striking (6) Subparagraphs (A) and (B) of section vidual if there was a rollover to such plan on the period at the end of clause (iv) and inserting 402(f)(1) are amended by striking ‘‘another eligi- behalf of such individual which is permitted ‘‘, and’’, and by inserting after clause (iv) the ble retirement plan’’ and inserting ‘‘an eligible solely by reason of the amendments made by following new clause: retirement plan’’. this section. ‘‘(v) an eligible deferred compensation plan (7) Subparagraph (B) of section 403(b)(8) is SEC. 333. ROLLOVERS OF AFTER-TAX CONTRIBU- described in section 457(b) of an employer de- amended to read as follows: TIONS. scribed in section 457(e)(1)(A).’’. ‘‘(B) CERTAIN RULES MADE APPLICABLE.—The (a) ROLLOVERS FROM EXEMPT TRUSTS.—Para- (B) SEPARATE ACCOUNTING.—Section 402(c) is rules of paragraphs (2) through (7) and (9) of graph (2) of section 402(c) (relating to maximum amended by adding at the end the following section 402(c) and section 402(f) shall apply for amount which may be rolled over) is amended new paragraph: purposes of subparagraph (A), except that sec- by adding at the end the following: ‘‘The pre- ‘‘(11) SEPARATE ACCOUNTING.—Unless a plan tion 402(f) shall be applied to the payor in lieu ceding sentence shall not apply to such distribu- described in clause (v) of paragraph (8)(B) of the plan administrator.’’. tion to the extent— August 2, 1999 CONGRESSIONAL RECORD — SENATE S10023 ‘‘(A) such portion is transferred in a direct failure to waive such requirement would be under another defined contribution plan (in this trustee-to-trustee transfer to a qualified trust against equity or good conscience, including paragraph referred to as the ‘transferor plan’) which is part of a plan which is a defined con- casualty, disaster, or other events beyond the to the extent that— tribution plan and which agrees to separately reasonable control of the individual subject to ‘‘(i) the forms of distribution previously avail- account for amounts so transferred, including such requirement.’’. able under the transferor plan applied to the ac- separately accounting for the portion of such (c) EFFECTIVE DATE.—The amendments made count of a participant or beneficiary under the distribution which is includible in gross income by this section shall apply to distributions after transferor plan that was transferred from the and the portion of such distribution which is December 31, 2000. transferor plan to the transferee plan pursuant not so includible, or SEC. 335. TREATMENT OF FORMS OF DISTRIBU- to a direct transfer rather than pursuant to a ‘‘(B) such portion is transferred to an eligible TION. distribution from the transferor plan; retirement plan described in clause (i) or (ii) of (a) PLAN TRANSFERS.— ‘‘(ii) the terms of both the transferor plan and paragraph (8)(B).’’. (1) AMENDMENT TO INTERNAL REVENUE CODE the transferee plan authorize the transfer de- (b) OPTIONAL DIRECT TRANSFER OF ELIGIBLE OF 1986.—Paragraph (6) of section 411(d) (relat- scribed in clause (i); ROLLOVER DISTRIBUTIONS.—Subparagraph (B) ing to accrued benefit not to be decreased by ‘‘(iii) the transfer described in clause (i) was of section 401(a)(31) (relating to limitation) is amendment) is amended by adding at the end made pursuant to a voluntary election by the amended by adding at the end the following: the following: participant or beneficiary whose account was ‘‘The preceding sentence shall not apply to such ‘‘(D) PLAN TRANSFERS.— transferred to the transferee plan; ‘‘(i) A defined contribution plan (in this sub- distribution if the plan to which such distribu- ‘‘(iv) the election described in clause (iii) was paragraph referred to as the ‘transferee plan’) tion is transferred— made after the participant or beneficiary re- shall not be treated as failing to meet the re- ‘‘(i) agrees to separately account for amounts ceived a notice describing the consequences of quirements of this subsection merely because the so transferred, including separately accounting making the election; for the portion of such distribution which is in- transferee plan does not provide some or all of ‘‘(v) if the transferor plan provides for an an- cludible in gross income and the portion of such the forms of distribution previously available nuity as the normal form of distribution under distribution which is not so includible, or under another defined contribution plan (in this the plan in accordance with section 417, the ‘‘(ii) is an eligible retirement plan described in subparagraph referred to as the ‘transferor transfer is made with the consent of the partici- clause (i) or (ii) of section 402(c)(8)(B).’’. plan’) to the extent that— pant’s spouse (if any), and such consent meets (c) RULES FOR APPLYING SECTION 72 TO ‘‘(I) the forms of distribution previously avail- requirements similar to the requirements im- IRAS.—Paragraph (3) of section 408(d) (relating able under the transferor plan applied to the ac- posed by section 417(a)(2); and to special rules for applying section 72) is count of a participant or beneficiary under the ‘‘(vi) the transferee plan allows the partici- amended by inserting at the end the following: transferor plan that was transferred from the pant or beneficiary described in subclause (III) ‘‘(H) APPLICATION OF SECTION 72.— transferor plan to the transferee plan pursuant to receive any distribution to which the partici- ‘‘(i) IN GENERAL.—If— to a direct transfer rather than pursuant to a pant or beneficiary is entitled under the trans- ‘‘(I) a distribution is made from an individual distribution from the transferor plan, feree plan in the form of a single sum distribu- retirement plan, and ‘‘(II) the terms of both the transferor plan and tion. ‘‘(II) a rollover contribution is made to an eli- the transferee plan authorize the transfer de- gible retirement plan described in section scribed in subclause (I), ‘‘(B) Subparagraph (A) shall apply to plan 402(c)(8)(B)(iii), (iv), (v), or (vi) with respect to ‘‘(III) the transfer described in subclause (I) mergers and other transactions having the effect all or part of such distribution, was made pursuant to a voluntary election by of a direct transfer, including consolidations of then, notwithstanding paragraph (2), the rules the participant or beneficiary whose account benefits attributable to different employers with- of clause (ii) shall apply for purposes of apply- was transferred to the transferee plan, in a multiple employer plan. ing section 72. ‘‘(IV) the election described in subclause (III) ‘‘(5) ELIMINATION OF FORM OF DISTRIBU- was made after the participant or beneficiary ‘‘(ii) APPLICABLE RULES.—In the case of a dis- TION.—Except to the extent provided in regula- tribution described in clause (i)— received a notice describing the consequences of tions, a defined contribution plan shall not be ‘‘(I) section 72 shall be applied separately to making the election, treated as failing to meet the requirements of such distribution, ‘‘(V) if the transferor plan provides for an an- this section merely because of the elimination of ‘‘(II) notwithstanding the pro rata allocation nuity as the normal form of distribution under a form of distribution previously available of income on, and investment in the contract, to the plan in accordance with section 417, the thereunder. This paragraph shall not apply to distributions under section 72, the portion of transfer is made with the consent of the partici- the elimination of a form of distribution with re- such distribution rolled over to an eligible retire- pant’s spouse (if any), and such consent meets spect to any participant unless— ment plan described in clause (i) shall be treated requirements similar to the requirements im- ‘‘(A) a single sum payment is available to such as from income on the contract (to the extent of posed by section 417(a)(2), and participant at the same time or times as the form ‘‘(VI) the transferee plan allows the partici- the aggregate income on the contract from all of distribution being eliminated; and pant or beneficiary described in subclause (III) individual retirement plans of the distributee), ‘‘(B) such single sum payment is based on the to receive any distribution to which the partici- and same or greater portion of the participant’s ac- pant or beneficiary is entitled under the trans- ‘‘(III) appropriate adjustments shall be made count as the form of distribution being elimi- feree plan in the form of a single sum distribu- in applying section 72 to other distributions in nated.’’. tion. such taxable year and subsequent taxable (3) EFFECTIVE DATE.—The amendments made ‘‘(ii) Clause (i) shall apply to plan mergers years.’’. by this subsection shall apply to years begin- and other transactions having the effect of a di- (d) EFFECTIVE DATE.—The amendments made ning after December 31, 2000. rect transfer, including consolidations of bene- by this section shall apply to distributions made (b) REGULATIONS.— fits attributable to different employers within a after December 31, 2000. multiple employer plan. (1) AMENDMENT TO INTERNAL REVENUE CODE SEC. 334. HARDSHIP EXCEPTION TO 60-DAY RULE. ‘‘(E) ELIMINATION OF FORM OF DISTRIBU- OF 1986.—The last sentence of paragraph (6)(B) (a) EXEMPT TRUSTS.—Paragraph (3) of section TION.—Except to the extent provided in regula- of section 411(d) (relating to accrued benefit not 402(c) (relating to transfer must be made within tions, a defined contribution plan shall not be to be decreased by amendment) is amended to 60 days of receipt) is amended to read as fol- treated as failing to meet the requirements of read as follows: ‘‘The Secretary may by regula- lows: this section merely because of the elimination of tions provide that this subparagraph shall not ‘‘(3) TRANSFER MUST BE MADE WITHIN 60 DAYS a form of distribution previously available apply to any plan amendment that does not ad- OF RECEIPT.— thereunder. This subparagraph shall not apply versely affect the rights of participants in a ma- ‘‘(A) IN GENERAL.—Except as provided in sub- to the elimination of a form of distribution with terial manner.’’. paragraph (B), paragraph (1) shall not apply to respect to any participant unless— (2) AMENDMENT TO ERISA.—The last sentence any transfer of a distribution made after the ‘‘(i) a single sum payment is available to such of section 204(g)(2) of the Employee Retirement 60th day following the day on which the dis- participant at the same time or times as the form Income Security Act of 1974 (29 U.S.C. tributee received the property distributed. of distribution being eliminated, and 1054(g)(2)) is amended to read as follows: ‘‘The ‘‘(B) HARDSHIP EXCEPTION.—The Secretary ‘‘(ii) such single sum payment is based on the Secretary of the Treasury may by regulations may waive the 60-day requirement under sub- same or greater portion of the participant’s ac- provide that this paragraph shall not apply to paragraph (A) where the failure to waive such count as the form of distribution being elimi- any plan amendment that does not adversely af- requirement would be against equity or good nated.’’. fect the rights of participants in a material man- conscience, including casualty, disaster, or (2) AMENDMENT TO ERISA.—Section 204(g) of ner.’’. other events beyond the reasonable control of the Employee Retirement Income Security Act of (3) SECRETARY DIRECTED.—Not later than De- the individual subject to such requirement.’’. 1974 (29 U.S.C. 1054(g)) is amended by adding at cember 31, 2001, the Secretary of the Treasury is (b) IRAS.—Paragraph (3) of section 408(d) (re- the end the following: directed to issue final regulations under section lating to rollover contributions), as amended by ‘‘(4)(A) A defined contribution plan (in this 411(d)(6) of the Internal Revenue Code of 1986 section 333, is amended by adding after subpara- subparagraph referred to as the ‘transferee and section 204(g)(2) of the Employee Retirement graph (H) the following new subparagraph: plan’) shall not be treated as failing to meet the Income Security Act of 1974. Such regulations ‘‘(I) WAIVER OF 60-DAY REQUIREMENT.—The requirements of this subsection merely because shall apply to plan years beginning after De- Secretary may waive the 60-day requirement the transferee plan does not provide some or all cember 31, 2001, or such earlier date as is speci- under subparagraphs (A) and (D) where the of the forms of distribution previously available fied by the Secretary of the Treasury. S10024 CONGRESSIONAL RECORD — SENATE August 2, 1999

SEC. 336. RATIONALIZATION OF RESTRICTIONS (1) AMENDMENT TO INTERNAL REVENUE CODE ‘‘(F) APPLICABLE PERCENTAGE.—For purposes ON DISTRIBUTIONS. OF 1986.—Section 411(a)(11) (relating to restric- of subparagraph (A)(i)(I), the applicable per- (a) MODIFICATION OF SAME DESK EXCEP- tions on certain mandatory distributions) is centage shall be determined in accordance with TION.— amended by adding at the end the following: the following table: (1) SECTION 401(k).— ‘‘(D) SPECIAL RULE FOR ROLLOVER CONTRIBU- ‘‘In the case of any plan The applicable (A) Section 401(k)(2)(B)(i)(I) (relating to TIONS.—A plan shall not fail to meet the require- qualified cash or deferred arrangements) is year beginning in— percentage is— ments of this paragraph if, under the terms of 2001 ...... 160 amended by striking ‘‘separation from service’’ the plan, the present value of the nonforfeitable 2002 ...... 165 and inserting ‘‘severance from employment’’. accrued benefit is determined without regard to 2003 ...... 170.’’. (B) Subparagraph (A) of section 401(k)(10) (re- that portion of such benefit which is attrib- (b) AMENDMENT TO ERISA.—Section 302(c)(7) lating to distributions upon termination of plan utable to rollover contributions (and earnings of the Employee Retirement Income Security Act or disposition of assets or subsidiary) is amend- allocable thereto). For purposes of this subpara- of 1974 (29 U.S.C. 1082(c)(7)) is amended— ed to read as follows: graph, the term ‘rollover contributions’ means (1) by striking ‘‘the applicable percentage’’ in ‘‘(A) IN GENERAL.—An event described in this any rollover contribution under sections 402(c), subparagraph (A)(i)(I) and inserting ‘‘in the subparagraph is the termination of the plan 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and case of plan years beginning before January 1, without establishment or maintenance of an- 457(e)(16).’’. 2004, the applicable percentage’’, and other defined contribution plan (other than an (2) AMENDMENT TO ERISA.—Section 203(e) of (2) by amending subparagraph (F) to read as employee stock ownership plan as defined in the Employee Retirement Income Security Act of follows: section 4975(e)(7)).’’. 1974 (29 U.S.C. 1053(c)) is amended by adding at ‘‘(F) APPLICABLE PERCENTAGE.—For purposes (C) Section 401(k)(10) is amended— of subparagraph (A)(i)(I), the applicable per- (i) in subparagraph (B)— the end the following: (I) by striking ‘‘An event’’ in clause (i) and ‘‘(4) A plan shall not fail to meet the require- centage shall be determined in accordance with inserting ‘‘A termination’’, and ments of this subsection if, under the terms of the following table: (II) by striking ‘‘the event’’ in clause (i) and the plan, the present value of the nonforfeitable ‘‘In the case of any plan The applicable inserting ‘‘the termination’’, accrued benefit is determined without regard to year beginning in— percentage is— (ii) by striking subparagraph (C), and that portion of such benefit which is attrib- 2001 ...... 160 (iii) by striking ‘‘OR DISPOSITION OF ASSETS OR utable to rollover contributions (and earnings 2002 ...... 165 SUBSIDIARY’’ in the heading. allocable thereto). For purposes of this subpara- 2003 ...... 170.’’. (2) SECTION 403(b).— graph, the term ‘rollover contributions’ means (c) EFFECTIVE DATE.—The amendments made (A) Paragraphs (7)(A)(ii) and (11)(A) of sec- any rollover contribution under sections 402(c), by this section shall apply to plan years begin- tion 403(b) are each amended by striking ‘‘sepa- 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and ning after December 31, 2000. rates from service’’ and inserting ‘‘has a sever- 457(e)(16) of the Internal Revenue Code of SEC. 342. EXTENSION OF MISSING PARTICIPANTS ance from employment’’. 1986.’’. PROGRAM TO MULTIEMPLOYER (B) The heading for paragraph (11) of section (b) ELIGIBLE DEFERRED COMPENSATION PLANS. 403(b) is amended by striking ‘‘SEPARATION PLANS.—Clause (i) of section 457(e)(9)(A) is (a) IN GENERAL.—Section 4050 of the Employee FROM SERVICE’’ and inserting ‘‘SEVERANCE FROM amended by striking ‘‘such amount’’ and insert- Retirement Income Security Act of 1974 (29 EMPLOYMENT’’. ing ‘‘the portion of such amount which is not U.S.C. 1350) is amended by redesignating sub- (3) SECTION 457.—Clause (ii) of section attributable to rollover contributions (as defined section (c) as subsection (d) and by inserting 457(d)(1)(A) is amended by striking ‘‘is sepa- in section 411(a)(11)(D))’’. after subsection (b) the following: rated from service’’ and inserting ‘‘has a sever- (c) EFFECTIVE DATE.—The amendments made ‘‘(c) MULTIEMPLOYER PLANS.—The corpora- ance from employment’’. by this section shall apply to distributions after tion shall prescribe rules similar to the rules in (b) EFFECTIVE DATE.—The amendments made December 31, 2000. subsection (a) for multiemployer plans covered by this section shall apply to distributions after SEC. 339. INCLUSION REQUIREMENTS FOR SEC- by this title that terminate under section December 31, 2000. TION 457 PLANS. 4041A.’’. SEC. 337. PURCHASE OF SERVICE CREDIT IN GOV- (a) YEAR OF INCLUSION.—Subsection (a) of (b) CONFORMING AMENDMENT.—Section 206(f) ERNMENTAL DEFINED BENEFIT section 457 (relating to year of inclusion in gross of the Employee Retirement Income Security Act PLANS. income) is amended to read as follows: of 1974 (29 U.S.C. 1056(f)) is amended by striking (a) 403(b) PLANS.—Subsection (b) of section ‘‘(a) YEAR OF INCLUSION IN GROSS INCOME.— ‘‘the plan shall provide that,’’. 403 is amended by adding at the end the fol- ‘‘(1) IN GENERAL.—Any amount of compensa- (c) EFFECTIVE DATE.—The amendments made lowing new paragraph: tion deferred under an eligible deferred com- by this section shall apply to distributions made ‘‘(13) TRUSTEE-TO-TRUSTEE TRANSFERS TO PUR- pensation plan, and any income attributable to after final regulations implementing subsection CHASE PERMISSIVE SERVICE CREDIT.—No amount the amounts so deferred, shall be includible in (c) of section 4050 of the Employee Retirement shall be includible in gross income by reason of gross income only for the taxable year in which Income Security Act of 1974 (as added by sub- a direct trustee-to-trustee transfer to a defined such compensation or other income— section (a)) are prescribed. benefit governmental plan (as defined in section ‘‘(A) is paid to the participant or other bene- SEC. 343. EXCISE TAX RELIEF FOR SOUND PEN- 414(d)) if such transfer is— ficiary, in the case of a plan of an eligible em- SION FUNDING. ‘‘(A) for the purchase of permissive service ployer described in subsection (e)(1)(A), and (a) IN GENERAL.—Subsection (c) of section credit (as defined in section 415(n)(3)(A)) under ‘‘(B) is paid or otherwise made available to 4972 (relating to nondeductible contributions) is such plan, or the participant or other beneficiary, in the case amended by adding at the end the following ‘‘(B) a repayment to which section 415 does of a plan of an eligible employer described in new paragraph: not apply by reason of subsection (k)(3) there- subsection (e)(1)(B). ‘‘(7) DEFINED BENEFIT PLAN EXCEPTION.—In of.’’. ‘‘(2) SPECIAL RULE FOR ROLLOVER AMOUNTS.— determining the amount of nondeductible con- (b) 457 PLANS.— To the extent provided in section 72(t)(9), sec- (1) Subsection (e) of section 457 is amended by tributions for any taxable year, an employer tion 72(t) shall apply to any amount includible may elect for such year not to take into account adding after paragraph (17) the following new in gross income under this subsection.’’. paragraph: any contributions to a defined benefit plan ex- (b) CONFORMING AMENDMENT.—So much of cept to the extent that such contributions exceed ‘‘(18) TRUSTEE-TO-TRUSTEE TRANSFERS TO PUR- paragraph (9) of section 457(e) as precedes sub- CHASE PERMISSIVE SERVICE CREDIT.—No amount the full-funding limitation (as defined in section paragraph (A) is amended to read as follows: 412(c)(7), determined without regard to subpara- shall be includible in gross income by reason of ‘‘(9) BENEFITS OF TAX EXEMPT ORGANIZATION a direct trustee-to-trustee transfer to a defined graph (A)(i)(I) thereof). For purposes of this PLANS NOT TREATED AS MADE AVAILABLE BY REA- paragraph, the deductible limits under section benefit governmental plan (as defined in section SON OF CERTAIN ELECTIONS, ETC.—In the case of 414(d)) if such transfer is— 404(a)(7) shall first be applied to amounts con- an eligible deferred compensation plan of an em- tributed to defined contribution plans and then ‘‘(A) for the purchase of permissive service ployer described in paragraph (1)(B)—’’. credit (as defined in section 415(n)(3)(A)) under to amounts described in this paragraph. If an (c) EFFECTIVE DATE.—The amendments made employer makes an election under this para- such plan, or by this section shall apply to distributions after ‘‘(B) a repayment to which section 415 does graph for a taxable year, paragraph (6) shall December 31, 2000. not apply by reason of subsection (k)(3) there- not apply to such employer for such taxable of.’’. Subtitle E—Strengthening Pension Security year.’’. (2) Section 457(b)(2) is amended by striking and Enforcement (b) EFFECTIVE DATE.—The amendments made ‘‘(other than rollover amounts)’’ and inserting SEC. 341. REPEAL OF 150 PERCENT OF CURRENT by this section shall apply to years beginning ‘‘(other than rollover amounts and amounts re- LIABILITY FUNDING LIMIT. after December 31, 2000. ceived in a transfer referred to in subsection (a) AMENDMENT TO INTERNAL REVENUE CODE SEC. 344. FAILURE TO PROVIDE NOTICE BY DE- (e)(16))’’. OF 1986.—Section 412(c)(7) (relating to full-fund- FINED BENEFIT PLANS SIGNIFI- (c) EFFECTIVE DATE.—The amendments made ing limitation) is amended— CANTLY REDUCING FUTURE BEN- by this section shall apply to trustee-to-trustee (1) by striking ‘‘the applicable percentage’’ in EFIT ACCRUALS. transfers after December 31, 2000. subparagraph (A)(i)(I) and inserting ‘‘in the (a) EXCISE TAX.— SEC. 338. EMPLOYERS MAY DISREGARD ROLL- case of plan years beginning before January 1, (1) IN GENERAL.—Chapter 43 of subtitle D (re- OVERS FOR PURPOSES OF CASH-OUT 2004, the applicable percentage’’, and lating to qualified pension, etc., plans) is AMOUNTS. (2) by amending subparagraph (F) to read as amended by adding at the end the following (a) QUALIFIED PLANS.— follows: new section: August 2, 1999 CONGRESSIONAL RECORD — SENATE S10025

‘‘SEC. 4980F. FAILURE OF DEFINED BENEFIT extent that the payment of such tax would be ‘‘(3) SECRETARY MAY CHANGE NOTICE AND TIME PLANS REDUCING BENEFIT ACCRU- excessive relative to the failure involved. FOR NOTICE.—If a plan amendment to which ALS TO SATISFY NOTICE REQUIRE- ‘‘(d) LIABILITY FOR TAX.—The following shall paragraph (1) applies requires an applicable in- MENTS. be liable for the tax imposed by subsection (a): dividual to choose between 2 or more benefit for- ‘‘(a) IMPOSITION OF TAX.—There is hereby im- ‘‘(1) In the case of a plan other than a multi- mulas, the Secretary may, after consultation posed a tax on the failure of an applicable pen- employer plan, the employer. with the Secretary of Labor— sion plan to meet the requirements of subsection ‘‘(2) In the case of a multiemployer plan, the ‘‘(A) require additional information to be pro- (e) with respect to any applicable individual. plan. vided in either of the notices described in para- ‘‘(b) AMOUNT OF TAX.— ‘‘(e) NOTICE REQUIREMENTS FOR PLANS SIG- graph (1) or (2), and ‘‘(1) IN GENERAL.—The amount of the tax im- NIFICANTLY REDUCING BENEFIT ACCRUALS.— ‘‘(B) require either of such notices to be pro- posed by subsection (a) on any failure with re- ‘‘(1) IN GENERAL.—If a defined benefit plan vided at a time other than the time required spect to any applicable individual shall be $100 adopts an amendment which has the effect of under either such paragraph. for each day in the noncompliance period with significantly reducing the rate of future benefit ‘‘(4) NOTICE BEFORE ADOPTION OF AMEND- respect to such failure. accrual of 1 or more participants (including any MENT.—A plan shall not be treated as failing to ‘‘(2) NONCOMPLIANCE PERIOD.—For purposes elimination or reduction of an early retirement meet the requirements of paragraph (1) or (2) of this section, the term ‘noncompliance period’ benefit or retirement-type subsidy), the plan ad- merely because notice is provided before the means, with respect to any failure, the period ministrator shall, not later than the 30th day adoption of the plan amendment if no material beginning on the date the failure first occurs before the effective date of the amendment, pro- modification of the amendment occurs before the and ending on the date the failure is corrected. vide written notice to each applicable individual amendment is adopted. ‘‘(3) MINIMUM TAX FOR NONCOMPLIANCE PE- (and to each employee organization representing ‘‘(5) NOTICE TO DESIGNEE.—Any notice under RIOD WHERE FAILURE DISCOVERED AFTER NOTICE applicable individuals) which— paragraph (1) or (2) may be provided to a person OF EXAMINATION.—Notwithstanding paragraphs ‘‘(A) sets forth the plan amendment and its ef- designated, in writing, by the person to which it (1) and (2) of subsection (c)— fective date, and would otherwise be provided. ‘‘(A) IN GENERAL.—In the case of 1 or more ‘‘(B) includes sufficient information (as deter- ‘‘(f) APPLICABLE INDIVIDUAL.—For purposes failures with respect to an applicable mined in accordance with regulations prescribed of this section— individual— by the Secretary) to allow such participants and ‘‘(1) IN GENERAL.—The term ‘applicable indi- ‘‘(i) which are not corrected before the date a beneficiaries to understand how the amendment vidual’ means, with respect to any plan notice of examination of income tax liability is generally affects different classes of employees. amendment— sent to the employer, and ‘‘(2) ADDITIONAL NOTICE REQUIRED IN CERTAIN ‘‘(A) any participant in the plan, and ‘‘(ii) which occurred or continued during the CASES.— ‘‘(B) any beneficiary who is an alternate period under examination, ‘‘(A) IN GENERAL.—If a plan amendment to payee (within the meaning of section 414(p)(8)) the amount of tax imposed by subsection (a) by which paragraph (1) applies— under an applicable qualified domestic relations reason of such failures with respect to such ben- ‘‘(i) either— order (within the meaning of section eficiary shall not be less than the lesser of $2,500 ‘‘(I) provides for a significant change in the 414(p)(1)(A)). or the amount of tax which would be imposed by manner in which the accrued benefit of an ap- ‘‘(2) EXCEPTION FOR PARTICIPANTS WITH LESS subsection (a) without regard to such para- plicable individual is determined under the THAN 1 YEAR OF PARTICIPATION.—Such term graphs. plan, or shall not include a participant who has less ‘‘(B) HIGHER MINIMUM TAX WHERE VIOLATIONS ‘‘(II) requires an applicable individual to than 1 year of participation (within the mean- ARE MORE THAN DE MINIMIS.—To the extent vio- choose between 2 or more benefit formulas, and ing of section 411(b)(4)) under the plan as of the lations by the employer (or the plan in the case ‘‘(ii) may reasonably be expected to affect effective date of the plan amendment. of a multiemployer plan) for any year are more such applicable individual, ‘‘(3) PARTICIPANTS GETTING HIGHER OF BENE- than de minimis, subparagraph (A) shall be ap- the plan shall, not later than the date which is FITS.—Such term shall not include a participant plied by substituting ‘$15,000’ for ‘$2,500’ with 6 months after the effective date of the amend- or beneficiary who, under the terms of the plan respect to the employer (or such plan). ment, provide written notice to such applicable as of the effective date of the plan amendment, ‘‘(c) LIMITATIONS ON AMOUNT OF TAX.— individual which includes the information de- is entitled to the greater of the accrued benefit ‘‘(1) TAX NOT TO APPLY WHERE FAILURE NOT scribed in subparagraph (B). under such terms or the accrued benefit under DISCOVERED EXERCISING REASONABLE DILI- ‘‘(B) ADDITIONAL INFORMATION.—The notice the terms of the plan in effect immediately be- GENCE.—No tax shall be imposed by subsection under subparagraph (A) shall include the fol- fore the effective date. (a) on any failure during any period for which lowing information: ‘‘(g) APPLICABLE PENSION PLAN.—For pur- it is established to the satisfaction of the Sec- ‘‘(i) The accrued benefit (and if the amend- poses of this section, the term ‘applicable pen- retary that none of the persons referred to in ment adds the option of an immediate lump sum sion plan’ means— subsection (d) knew, or exercising reasonable distribution, the present value of the accrued ‘‘(1) a defined benefit plan, or diligence would have known, that the failure benefit) as of the effective date, determined ‘‘(2) an individual account plan which is sub- existed. under the terms of the plan in effect imme- ject to the funding standards of section 412. ‘‘(2) TAX NOT TO APPLY TO FAILURES COR- diately before the effective date. Such term shall not include a governmental RECTED WITHIN 30 DAYS.—No tax shall be im- ‘‘(ii) The accrued benefit as of the effective plan (within the meaning of section 414(d)) or a posed by subsection (a) on any failure if— date, determined under the terms of the plan in church plan (within the meaning of section ‘‘(A) such failure was due to reasonable cause effect on the effective date and without regard 414(e)) with respect to which an election under and not to willful neglect, and to any minimum accrued benefit required by section 410(d) has not been made.’’. (2) CONFORMING AMENDMENT.—The table of ‘‘(B) such failure is corrected during the 30- reason of section 411(d)(6). day period beginning on the first date any of ‘‘(iii) Sufficient information (as determined in sections for chapter 43 of subtitle D is amended the persons referred to in subsection (d) knew, accordance with regulations prescribed by the by adding at the end the following new item: or exercising reasonable diligence would have Secretary) for an applicable individual to com- ‘‘Sec. 4980F. Failure of defined benefit plans re- known, that such failure existed. pute their projected accrued benefit under the ducing benefit accruals to satisfy ‘‘(3) OVERALL LIMITATION FOR UNINTENTIONAL terms of the plan in effect on the effective date notice requirements.’’. FAILURES.— or to acquire information necessary to compute (b) AMENDMENT TO ERISA.—Section 204(h) of ‘‘(A) IN GENERAL.—In the case of failures that such projected accrued benefit. the Employee Retirement Income Security Act of are due to reasonable cause and not to willful ‘‘(C) OPTION TO PROVIDE PROJECTED ACCRUED 1974 (29 U.S.C. 1054(h)) is amended to read as neglect, the tax imposed by subsection (a) for BENEFIT.—A plan may, in lieu of the informa- follows: failures during the taxable year of the employer tion described in subparagraph (B)(iii), include ‘‘(h)(1) An applicable pension plan may not (or, in the case of a multiemployer plan, the tax- a determination of an applicable individual’s adopt an amendment which has the effect of able year of the trust forming part of the plan) projected accrued benefit under the terms of the significantly reducing the rate of future benefit shall not exceed $500,000. For purposes of the plan in effect on the effective date. Such deter- accrual of 1 or more participants (including any preceding sentence, all multiemployer plans of mination shall include a disclosure of the as- elimination or reduction of an early retirement which the same trust forms a part shall be treat- sumptions used by the plan in determining such benefit or retirement-type subsidy) unless the ed as 1 plan. benefit and such assumptions must be reason- plan administrator provides, not later than the ‘‘(B) TAXABLE YEARS IN THE CASE OF CERTAIN able in the aggregate. 30th day before the effective date of the amend- CONTROLLED GROUPS.—For purposes of this ‘‘(D) RULES FOR COMPUTING BENEFITS.—For ment, written notice to each applicable indi- paragraph, if all persons who are treated as a purposes of this paragraph, an applicable indi- vidual (and to each employee organization rep- single employer for purposes of this section do vidual’s accrued benefit and projected accrued resenting applicable individuals) which— not have the same taxable year, the taxable benefit shall be computed— ‘‘(A) sets forth the plan amendment and its ef- years taken into account shall be determined ‘‘(i) as if the accrued benefit were in the form fective date, and under principles similar to the principles of sec- of a single life annuity commencing at normal ‘‘(B) includes sufficient information (as deter- tion 1561. retirement age (and by taking into account any mined in accordance with regulations prescribed ‘‘(4) WAIVER BY SECRETARY.—In the case of a early retirement subsidy), and by the Secretary of the Treasury) to allow appli- failure which is due to reasonable cause and not ‘‘(ii) by using the applicable mortality table cable individuals to understand how the amend- to willful neglect, the Secretary may waive part and the applicable interest rate under section ment generally affects different classes of em- or all of the tax imposed by subsection (a) to the 417(e)(3)(A). ployees. S10026 CONGRESSIONAL RECORD — SENATE August 2, 1999 ‘‘(2)(A) If a plan amendment to which para- plan as of the effective date of the plan amend- (g), a multiemployer plan (as defined in section graph (1) applies— ment. 414(f)) shall not be combined or aggregated with ‘‘(i) either— ‘‘(C) Such term shall not include a participant any other plan maintained by an employer for ‘‘(I) provides for a significant change in the or beneficiary who, under the terms of the plan purposes of applying the limitations established manner in which the accrued benefit is deter- as of the effective date of the plan amendment, in this section. The preceding sentence shall not mined under the plan, or is entitled to the greater of the accrued benefit apply for purposes of applying subsection ‘‘(II) requires an applicable individual to under such terms or the accrued benefit under (b)(1)(A) to a plan which is not a multiemployer choose between 2 or more benefit formulas, and the terms of the plan in effect immediately be- plan.’’. ‘‘(ii) may reasonably be expected to affect fore the effective date. (2) CONFORMING AMENDMENT FOR AGGREGA- such applicable individual, ‘‘(7) For purposes of this subsection, the term TION OF PLANS.—Subsection (g) of section 415 the plan shall, not later than the date which is ‘applicable pension plan’ means— (relating to aggregation of plans) is amended by 6 months after the effective date of the amend- ‘‘(A) a defined benefit plan, or striking ‘‘The Secretary’’ and inserting ‘‘Except ment, provide written notice to such applicable ‘‘(B) an individual account plan which is sub- as provided in subsection (f)(3), the Secretary’’. individual which includes the information de- ject to the funding standards of section 302. (c) APPLICATION OF SPECIAL EARLY RETIRE- scribed in subparagraph (B). Such term shall not include a governmental MENT RULES.—Section 415(b)(2)(F) (relating to ‘‘(B) The notice under subparagraph (A) shall plan (within the meaning of section 3(32)) or a plans maintained by governments and tax-ex- include the following information: church plan (within the meaning of section empt organizations) is amended— ‘‘(i) The accrued benefit (and if the amend- 3(33)) with respect to which an election under (1) by inserting ‘‘a multiemployer plan (within ment adds the option of an immediate lump sum section 410(d) of the Internal Revenue Code of the meaning of section 414(f)),’’ after ‘‘section distribution, the present value of the accrued 1986 has not been made.’’. 414(d)),’’, and benefit) as of the effective date, determined (c) EFFECTIVE DATES.— (2) by striking the heading and inserting: under the terms of the plan in effect imme- (1) IN GENERAL.—The amendments made by diately before the effective date. this section shall apply to plan amendments ‘‘(F) SPECIAL EARLY RETIREMENT RULES FOR ‘‘(ii) The accrued benefit as of the effective taking effect on or after the date of the enact- CERTAIN PLANS.—’’. date, determined under the terms of the plan in ment of this Act. (d) EFFECTIVE DATE.—The amendments made effect on the effective date and without regard (2) SPECIAL RULE FOR COLLECTIVELY BAR- by this section shall apply to years beginning to any minimum accrued benefit required by GAINED PLANS.—In the case of a plan main- after December 31, 1999. reason of section 204(g). tained pursuant to 1 or more collective bar- SEC. 347. MAXIMUM CONTRIBUTION DEDUCTION ‘‘(iii) Sufficient information (as determined in gaining agreements between employee represent- RULES MODIFIED AND APPLIED TO accordance with regulations prescribed by the atives and 1 or more employers ratified by the ALL DEFINED BENEFIT PLANS. Secretary of the Treasury) for an applicable in- date of the enactment of this Act, the amend- (a) IN GENERAL.—Subparagraph (D) of section dividual to compute their projected accrued ben- ments made by this section shall not apply to 404(a)(1) (relating to special rule in case of cer- efit under the terms of the plan in effect on the plan amendments taking effect before the earlier tain plans) is amended to read as follows: effective date or to acquire information nec- of— ‘‘(D) SPECIAL RULE IN CASE OF CERTAIN essary to compute such projected accrued ben- (A) the later of— PLANS.— efit. (i) the date on which the last of such collec- ‘‘(i) IN GENERAL.—In the case of any defined ‘‘(C) A plan may, in lieu of the information tive bargaining agreements terminates (deter- benefit plan, except as provided in regulations, described in subparagraph (B)(iii), include a de- mined without regard to any extension thereof the maximum amount deductible under the limi- termination of an applicable individual’s pro- on or after such date of enactment), or tations of this paragraph shall not be less than jected accrued benefit under the terms of the (ii) January 1, 2000, or the unfunded termination liability (determined plan in effect on the effective date. Such deter- (B) January 1, 2002. as if the proposed termination date referred to mination shall include a disclosure of the as- (3) SPECIAL RULE.—The period for providing in section 4041(b)(2)(A)(i)(II) of the Employee sumptions used by the plan in determining such any notice required by the amendments made by Retirement Income Security Act of 1974 were the benefit and such assumptions must be reason- this section shall not end before the date which last day of the plan year). able in the aggregate. is 3 months after the date of the enactment of ‘‘(ii) PLANS WITH LESS THAN 100 PARTICI- ‘‘(D) For purposes of this paragraph, an ap- this Act. PANTS.—For purposes of this subparagraph, in plicable individual’s accrued benefit and pro- SEC. 345. PROTECTION OF INVESTMENT OF EM- the case of a plan which has less than 100 par- jected accrued benefit shall be computed— PLOYEE CONTRIBUTIONS TO 401(K) ticipants for the plan year, termination liability ‘‘(i) as if the accrued benefit were in the form PLANS. shall not include the liability attributable to of a single life annuity commencing at normal (a) IN GENERAL.—Section 1524(b) of the Tax- benefit increases for highly compensated em- retirement age (and by taking into account any payer Relief Act of 1997 is amended to read as ployees (as defined in section 414(q)) resulting early retirement subsidy), and follows: from a plan amendment which is made or be- ‘‘(ii) by using the applicable mortality table ‘‘(b) EFFECTIVE DATE.— comes effective, whichever is later, within the and the applicable interest rate under section ‘‘(1) IN GENERAL.—Except as provided in para- last 2 years before the termination date. graph (2), the amendments made by this section 205(g)(3)(A). ‘‘(iii) RULE FOR DETERMINING NUMBER OF PAR- shall apply to elective deferrals for plan years ‘‘(3) If a plan amendment to which paragraph TICIPANTS.—For purposes of determining wheth- (1) applies requires an applicable individual to beginning after December 31, 1998. er a plan has more than 100 participants, all de- ‘‘(2) NONAPPLICATION TO PREVIOUSLY AC- choose between 2 or more benefit formulas, the fined benefit plans maintained by the same em- QUIRED PROPERTY.—The amendments made by Secretary of the Treasury may, after consulta- ployer (or any member of such employer’s con- this section shall not apply to any elective de- tion with the Secretary— trolled group (within the meaning of section ferral used to acquire an interest in the income ‘‘(A) require additional information to be pro- 412(l)(8)(C))) shall be treated as 1 plan, but only or gain from employer securities or employer vided in either of the notices described in para- employees of such member or employer shall be real property acquired— graph (1) or (2), and taken into account. ‘‘(B) require either of such notices to be pro- ‘‘(A) before January 1, 1999, or ‘‘(iv) PLANS ESTABLISHED AND MAINTAIN BY vided at a time other than the time required ‘‘(B) after such date pursuant to a written PROFESSIONAL SERVICE EMPLOYERS.—Clause (i) under either such paragraph. contract which was binding on such date and at shall not apply to a plan described in section ‘‘(4) A plan shall not be treated as failing to all times thereafter on such plan.’’. 4021(b)(13) of the Employee Retirement Income meet the requirements of paragraph (1) or (2) (b) EFFECTIVE DATE.—The amendment made Security Act of 1974.’’. merely because notice is provided before the by this section shall apply as if included in the (b) CONFORMING AMENDMENT.—Paragraph (6) adoption of the plan amendment if no material provision of the Taxpayer Relief Act of 1997 to of section 4972(c) is amended to read as follows: modification of the amendment occurs before the which it relates. ‘‘(6) EXCEPTIONS.—In determining the amount amendment is adopted. SEC. 346. TREATMENT OF MULTIEMPLOYER ‘‘(5) Any notice under paragraph (1) or (2) PLANS UNDER SECTION 415. of nondeductible contributions for any taxable may be provided to a person designated, in writ- (a) COMPENSATION LIMIT.—Paragraph (11) of year, there shall not be taken into account so ing, by the person to which it would otherwise section 415(b) (relating to limitation for defined much of the contributions to 1 or more defined be provided. benefit plans) is amended to read as follows: contribution plans which are not deductible ‘‘(6)(A) For purposes of this subsection, the ‘‘(11) SPECIAL LIMITATION RULE FOR GOVERN- when contributed solely because of section term ‘applicable individual’ means, with respect MENTAL AND MULTIEMPLOYER PLANS.—In the 404(a)(7) as does not exceed the greater of— to any plan amendment— case of a governmental plan (as defined in sec- ‘‘(A) the amount of contributions not in excess ‘‘(i) any participant in the plan, and tion 414(d)) or a multiemployer plan (as defined of 6 percent of compensation (within the mean- ‘‘(ii) any beneficiary who is an alternate in section 414(f)), subparagraph (B) of para- ing of section 404(a)) paid or accrued (during payee (within the meaning of section graph (1) shall not apply.’’. the taxable year for which the contributions 206(d)(3)(K)) under an applicable qualified do- (b) COMBINING AND AGGREGATION OF PLANS.— were made) to beneficiaries under the plans, or mestic relations order (within the meaning of (1) COMBINING OF PLANS.—Subsection (f) of ‘‘(B) the sum of— section 206(d)(3)(B)). section 415 (relating to combining of plans) is ‘‘(i) the amount of contributions described in ‘‘(B) Such term shall not include a participant amended by adding at the end the following: section 401(m)(4)(A), plus who has less than 1 year of participation (with- ‘‘(3) EXCEPTION FOR MULTIEMPLOYER PLANS.— ‘‘(ii) the amount of contributions described in in the meaning of section 204(b)(4)) under the Notwithstanding paragraph (1) and subsection section 402(g)(3)(A). August 2, 1999 CONGRESSIONAL RECORD — SENATE S10027 For purposes of this paragraph, the deductible statement described in subsection (a)(1)(A) or Clause (ii) shall apply only to the extent pro- limits under section 404(a)(7) shall first be ap- (a)(1)(B)(ii), whichever is applicable, in any 12- vided by the Secretary.’’. plied to amounts contributed to a defined ben- month period.’’. (2) EFFECTIVE DATES.— efit plan and then to amounts described in sub- (c) EFFECTIVE DATE.—The amendments made (A) IN GENERAL.—The amendment made by paragraph (B).’’. by this section shall apply to plan years begin- subsection (a) shall apply to years beginning (c) EFFECTIVE DATE.—The amendments made ning after December 31, 2000. after December 31, 2000. by this section shall apply to plan years begin- SEC. 352. CLARIFICATION OF TREATMENT OF EM- (B) CONDITIONS OF AVAILABILITY.—Any condi- ning after December 31, 2000. PLOYER-PROVIDED RETIREMENT AD- tion of availability prescribed by the Secretary SEC. 348. INCREASE IN SECTION 415 EARLY RE- VICE. under regulations prescribed by the Secretary TIREMENT LIMIT FOR GOVERN- (a) IN GENERAL.—Subsection (a) of section 132 under section 410(b)(1)(D) of the Internal Rev- MENTAL AND OTHER PLANS. (relating to exclusion from gross income) is enue Code of 1986 shall not apply before the (a) IN GENERAL.—Subclause (II) of section amended by striking ‘‘or’’ at the end of para- first year beginning not less than 120 days after 415(b)(2)(F)(i), as amended by section 346(c), is graph (5), by striking the period at the end of the date on which such condition is prescribed. amended— paragraph (6) and inserting ‘‘, or’’, and by add- (1) by striking ‘‘$75,000’’ and inserting ‘‘80 SEC. 362. MODIFICATION OF TIMING OF PLAN ing at the end the following new paragraph: VALUATIONS. percent of the dollar amount in effect under ‘‘(7) qualified retirement planning services.’’. (a) IN GENERAL.—Section 412(c)(9) (relating to paragraph (1)(A)’’, and (b) QUALIFIED RETIREMENT PLANNING SERV- annual valuation) is amended— (2) by striking ‘‘the $75,000 limitation’’ and in- ICES DEFINED.—Section 132 is amended by redes- serting ‘‘80 percent of such dollar amount’’. ignating subsection (m) as subsection (n) and by (1) by striking ‘‘For purposes’’ and inserting (b) EFFECTIVE DATE.—The amendments made inserting after subsection (l) the following: the following: by this section shall apply to years beginning ‘‘(m) QUALIFIED RETIREMENT PLANNING SERV- ‘‘(A) IN GENERAL.—For purposes’’, and after December 31, 1999. ICES.— (2) by adding at the end the following: Subtitle F—Encouraging Retirement ‘‘(1) IN GENERAL.—For purposes of this sec- ‘‘(B) ELECTION TO USE PRIOR YEAR VALU- Education tion, the term ‘qualified retirement planning ATION.— SEC. 351. PERIODIC PENSION BENEFITS STATE- services’ means any retirement planning service ‘‘(i) IN GENERAL.—Except as provided in MENTS. provided to an employee and his spouse by an clause (ii), if, for any plan year— (a) IN GENERAL.—Section 105(a) of the Em- employer maintaining a qualified employer ‘‘(I) an election is in effect under this sub- ployee Retirement Income Security Act of 1974 plan. paragraph with respect to a plan, and (29 U.S.C. 1025 (a)) is amended to read as fol- ‘‘(2) NONDISCRIMINATION RULE.—Subsection ‘‘(II) the assets of the plan are not less than lows: (a)(7) shall apply in the case of highly com- 125 percent of the plan’s current liability (as de- ‘‘(a)(1) Except as provided in paragraph (2)— pensated employees only if such services are fined in paragraph (7)(B)), determined as of the ‘‘(A) the administrator of an individual ac- available on substantially the same terms to valuation date for the preceding plan year, count plan shall furnish a pension benefit each member of the group of employees normally then this section shall be applied using the in- statement— provided education and information regarding formation available as of such valuation date. ‘‘(i) to a plan participant at least once annu- the employer’s qualified employer plan. ‘‘(ii) EXCEPTIONS.— UALIFIED EMPLOYER PLAN ally, and ‘‘(3) Q .—For pur- ‘‘(I) ACTUAL VALUATION EVERY 3 YEARS.— ‘‘(ii) to a plan beneficiary upon written re- poses of this subsection, the term ‘qualified em- Clause (i) shall not apply for more than 2 con- quest, and ployer plan’ means a plan, contract, pension, or secutive plan years and valuation shall be ‘‘(B) the administrator of a defined benefit account described in section 219(g)(5).’’. under subparagraph (A) with respect to any plan shall furnish a pension benefit statement— (c) EFFECTIVE DATE.—The amendments made plan year to which clause (i) does not apply by ‘‘(i) at least once every 3 years to each partici- by this section shall apply to years beginning reason of this subclause. pant with a nonforfeitable accrued benefit who after December 31, 2000. ‘‘(II) REGULATIONS.—Clause (i) shall not is employed by the employer maintaining the Subtitle G—Reducing Regulatory Burdens plan at the time the statement is furnished to apply to the extent that more frequent valu- participants, and SEC. 361. FLEXIBILITY IN NONDISCRIMINATION ations are required under the regulations under ‘‘(ii) to a participant or beneficiary of the AND COVERAGE RULES. subparagraph (A). plan upon written request. (a) NONDISCRIMINATION.— ‘‘(iii) ADJUSTMENTS.—Information under ‘‘(2) Notwithstanding paragraph (1), the ad- (1) IN GENERAL.—The Secretary of the Treas- clause (i) shall, in accordance with regulations, ministrator of a plan to which more than 1 un- ury shall, by regulation, provide that a plan be actuarially adjusted to reflect significant dif- affiliated employer is required to contribute shall be deemed to satisfy the requirements of ferences in participants. shall only be required to furnish a pension ben- section 401(a)(4) of the Internal Revenue Code ‘‘(iv) ELECTION.—An election under this sub- efit statement under paragraph (1) upon the of 1986 if such plan satisfies the facts and cir- paragraph, once made, shall be irrevocable written request of a participant or beneficiary of cumstances test under section 401(a)(4) of such without the consent of the Secretary.’’. the plan. Code, as in effect before January 1, 1994, but (b) AMENDMENTS TO ERISA.—Paragraph (9) ‘‘(3) A pension benefit statement under para- only if— of section 302(c) of the Employee Retirement In- graph (1)— (A) the plan satisfies conditions prescribed by come Security Act of 1974 (29 U.S.C. 1053(c)) is ‘‘(A) shall indicate, on the basis of the latest the Secretary to appropriately limit the avail- amended— available information— ability of such test, and (1) by inserting ‘‘(A)’’ after ‘‘(9)’’, and ‘‘(i) the total benefits accrued, and (B) the plan is submitted to the Secretary for (2) by adding at the end the following: a determination of whether it satisfies such test. ‘‘(ii) the nonforfeitable pension benefits, if ‘‘(B)(i) Except as provided in clause (ii), if, for Subparagraph (B) shall only apply to the extent any, which have accrued, or the earliest date on any plan year— provided by the Secretary. which benefits will become nonforfeitable, ‘‘(I) an election is in effect under this sub- (2) EFFECTIVE DATES.— ‘‘(B) shall be written in a manner calculated paragraph with respect to a plan, and (A) REGULATIONS.—The regulation required to be understood by the average plan partici- ‘‘(II) the assets of the plan are not less than pant, and by subsection (a) shall apply to years beginning after December 31, 2000. 125 percent of the plan’s current liability (as de- ‘‘(C) may be provided in written, electronic, fined in paragraph (7)(B)), determined as of the (B) CONDITIONS OF AVAILABILITY.—Any condi- telephonic, or other appropriate form. valuation date for the preceding plan year, ‘‘(4) In the case of a defined benefit plan, the tion of availability prescribed by the Secretary then this section shall be applied using the in- requirements of paragraph (1)(B)(i) shall be under paragraph (1)(A) shall not apply before formation available as of such valuation date. treated as met with respect to a participant if the first year beginning not less than 120 days the administrator provides the participant at after the date on which such condition is pre- ‘‘(ii)(I) Clause (i) shall not apply for more least once each year with notice of the avail- scribed. than 2 consecutive plan years and valuation ability of the pension benefit statement and the (b) COVERAGE TEST.— shall be under subparagraph (A) with respect to ways in which the participant may obtain such (1) IN GENERAL.—Section 410(b)(1) (relating to any plan year to which clause (i) does not apply statement. Such notice shall be provided in writ- minimum coverage requirements) is amended by by reason of this subclause. ten, electronic, telephonic, or other appropriate adding at the end the following: ‘‘(II) Clause (i) shall not apply to the extent form, and may be included with other commu- ‘‘(D) In the case that the plan fails to meet that more frequent valuations are required nications to the participant if done in a manner the requirements of subparagraphs (A), (B) and under the regulations under subparagraph (A). reasonably designed to attract the attention of (C), the plan— ‘‘(iii) Information under clause (i) shall, in the participant.’’. ‘‘(i) satisfies subparagraph (B), as in effect accordance with regulations, be actuarially ad- (b) CONFORMING AMENDMENTS.— immediately before the enactment of the Tax Re- justed to reflect significant differences in par- (1) Section 105 of the Employee Retirement In- form Act of 1986, ticipants. come Security Act of 1974 (29 U.S.C. 1025) is ‘‘(ii) is submitted to the Secretary for a deter- ‘‘(iv) An election under this subparagraph, amended by striking subsection (d). mination of whether it satisfies the requirement once made, shall be irrevocable without the con- (2) Section 105(b) of such Act (29 U.S.C. described in clause (i), and sent of the Secretary of the Treasury.’’. 1025(b)) is amended to read as follows: ‘‘(iii) satisfies conditions prescribed by the (c) EFFECTIVE DATE.—The amendments made ‘‘(b) In no case shall a participant or bene- Secretary by regulation that appropriately limit by this section shall apply to plan years begin- ficiary of a plan be entitled to more than one the availability of this subparagraph. ning after December 31, 2000. S10028 CONGRESSIONAL RECORD — SENATE August 2, 1999 SEC. 363. SUBSTANTIAL OWNER BENEFITS IN nal Revenue Code of 1986 shall apply (deter- ganization described in section 403(b)(1)(A)(i) of TERMINATED PLANS. mined without regard to section 1563(e)(3)(C)).’’. the Internal Revenue Code of 1986 who are eligi- (a) MODIFICATION OF PHASE-IN OF GUAR- (2) Section 4043(c)(7) of such Act (29 U.S.C. ble to make contributions under section 403(b) of ANTEE.—Section 4022(b)(5) of the Employee Re- 1343(c)(7)) is amended by striking ‘‘section such Code pursuant to a salary reduction agree- tirement Income Security Act of 1974 (29 U.S.C. 4022(b)(6)’’ and inserting ‘‘section 4021(d)’’. ment may be treated as excludable with respect 1322(b)(5)) is amended to read as follows: (d) EFFECTIVE DATES.— to a plan under section 401 (k) or (m) of such ‘‘(5)(A) For purposes of this paragraph, the (1) IN GENERAL.—Except as provided in para- Code that is provided under the same general term ‘majority owner’ means an individual who, graph (2), the amendments made by this section arrangement as a plan under such section at any time during the 60-month period ending shall apply to plan terminations— 401(k), if— on the date the determination is being made— (A) under section 4041(c) of the Employee Re- (1) no employee of an organization described ‘‘(i) owns the entire interest in an unincor- tirement Income Security Act of 1974 (29 U.S.C. in section 403(b)(1)(A)(i) of such Code is eligible porated trade or business, 1341(c)) with respect to which notices of intent to participate in such section 401(k) plan or sec- ‘‘(ii) in the case of a partnership, is a partner to terminate are provided under section tion 401(m) plan, and who owns, directly or indirectly, 50 percent or 4041(a)(2) of such Act (29 U.S.C. 1341(a)(2)) after (2) 95 percent of the employees who are not more of either the capital interest or the profits December 31, 2000, and employees of an organization described in sec- interest in such partnership, or (B) under section 4042 of such Act (29 U.S.C. tion 403(b)(1)(A)(i) of such Code are eligible to ‘‘(iii) in the case of a corporation, owns, di- 1342) with respect to which proceedings are in- participate in such plan under such section 401 rectly or indirectly, 50 percent or more in value stituted by the corporation after such date. (k) or (m). of either the voting stock of that corporation or (2) CONFORMING AMENDMENTS.—The amend- (b) EFFECTIVE DATE.—The modification re- all the stock of that corporation. ments made by subsection (c) shall take effect quired by subsection (a) shall apply as of the For purposes of clause (iii), the constructive on the date of enactment of this Act. same date set forth in section 1426(b) of the ownership rules of section 1563(e) of the Inter- SEC. 364. ESOP DIVIDENDS MAY BE REINVESTED Small Business Job Protection Act of 1996. nal Revenue Code of 1986 shall apply (deter- SEC. 368. EXTENSION TO INTERNATIONAL ORGA- mined without regard to section 1563(e)(3)(C)). WITHOUT LOSS OF DIVIDEND DE- DUCTION. NIZATIONS OF MORATORIUM ON AP- ‘‘(B) In the case of a participant who is a ma- (a) IN GENERAL.—Section 404(k)(2)(A) (defin- PLICATION OF CERTAIN NON- jority owner, the amount of benefits guaranteed ing applicable dividends) is amended by striking DISCRIMINATION RULES APPLICA- under this section shall equal the product of— BLE TO STATE AND LOCAL PLANS. ‘‘or’’ at the end of clause (ii), by redesignating ‘‘(i) a fraction (not to exceed 1) the numerator (a) IN GENERAL.—Subparagraph (G) of section of which is the number of years from the later clause (iii) as clause (iv), and by inserting after 401(a)(5), subparagraph (H) of section of the effective date or the adoption date of the clause (ii) the following new clause: 401(a)(26), subparagraph (G) of section plan to the termination date, and the denomi- ‘‘(iii) is, at the election of such participants or 401(k)(3), and paragraph (2) of section 1505(d) of nator of which is 10, and their beneficiaries— the Taxpayer Relief Act of 1997 are each amend- ‘‘(ii) the amount of benefits that would be ‘‘(I) payable as provided in clause (i) or (ii), ed by inserting ‘‘or by an international organi- guaranteed under this section if the participant or zation which is described in section 414(d)’’ were not a majority owner.’’. ‘‘(II) paid to the plan and reinvested in quali- after ‘‘or instrumentality thereof)’’. (b) MODIFICATION OF ALLOCATION OF AS- fying employer securities, or’’. (b) CONFORMING AMENDMENTS.— SETS.— (b) EFFECTIVE DATE.—The amendments made (1) The headings for subparagraph (G) of sec- (1) Section 4044(a)(4)(B) of the Employee Re- by this section shall apply to taxable years be- tion 401(a)(5) and subparagraph (H) of section tirement Income Security Act of 1974 (29 U.S.C. ginning after December 31, 2000. 401(a)(26) are each amended by inserting ‘‘AND 1344(a)(4)(B)) is amended by striking ‘‘section SEC. 365. NOTICE AND CONSENT PERIOD RE- INTERNATIONAL ORGANIZATION’’ after ‘‘GOVERN- 4022(b)(5)’’ and inserting ‘‘section GARDING DISTRIBUTIONS. MENTAL’’. 4022(b)(5)(B)’’. (a) EXPANSION OF PERIOD.— (2) Subparagraph (G) of section 401(k)(3) is (2) Section 4044(b) of such Act (29 U.S.C. (1) IN GENERAL.— amended by inserting ‘‘STATE AND LOCAL GOV- 1344(b)) is amended— (A) AMENDMENT OF INTERNAL REVENUE CODE ERNMENTAL AND INTERNATIONAL ORGANIZATION (A) by striking ‘‘(5)’’ in paragraph (2) and in- OF 1986.—Subparagraph (A) of section 417(a)(6) PLANS.—’’ after ‘‘(G)’’. serting ‘‘(4), (5),’’, and is amended by striking ‘‘90-day’’ and inserting (c) EFFECTIVE DATE.—The amendments made (B) by redesignating paragraphs (3) through ‘‘1-year’’. by this section shall apply to years beginning (6) as paragraphs (4) through (7), respectively, (B) AMENDMENT TO ERISA.—Subparagraph (A) after December 31, 2000. and by inserting after paragraph (2) the fol- of section 205(c)(7) of the Employee Retirement SEC. 369. ANNUAL REPORT DISSEMINATION. lowing: Income Security Act of 1974 (29 U.S.C. (a) IN GENERAL.—Section 104(b)(3) of the Em- ‘‘(3) If assets available for allocation under 1055(c)(7)) is amended by striking ‘‘90-day’’ and ployee Retirement Income Security Act of 1974 paragraph (4) of subsection (a) are insufficient inserting ‘‘1-year’’. (29 U.S.C. 1024(b)(3)) is amended by striking to satisfy in full the benefits of all individuals (2) MODIFICATION OF REGULATIONS.—The Sec- ‘‘shall furnish’’ and inserting ‘‘shall make who are described in that paragraph, the assets retary of the Treasury shall modify the regula- available for examination (and, upon request, shall be allocated first to benefits described in tions under sections 402(f), 411(a)(11), and 417 of shall furnish)’’. subparagraph (A) of that paragraph. Any re- the Internal Revenue Code of 1986 to substitute (b) EFFECTIVE DATE.—The amendment made maining assets shall then be allocated to bene- ‘‘1-year’’ for ‘‘90 days’’ each place it appears in by this section shall apply to reports for years fits described in subparagraph (B) of that para- Treasury Regulations sections 1.402(f)–1, beginning after December 31, 1998. graph. If assets allocated to such subparagraph 1.411(a)–11(c), and 1.417(e)–1(b). SEC. 370. MODIFICATION OF EXCLUSION FOR EM- (B) are insufficient to satisfy in full the benefits (3) EFFECTIVE DATE.—The amendments made PLOYER PROVIDED TRANSIT PASSES described in that subparagraph, the assets shall by paragraph (1) and the modifications required AND PASSENGERS PERMITTED TO be allocated pro rata among individuals on the by paragraph (2) shall apply to years beginning UTILIZE OTHERWISE EMPTY SEATS basis of the present value (as of the termination after December 31, 2000. ON AIRCRAFT. (a) IN GENERAL.—Section 132(f)(3) (relating to date) of their respective benefits described in (b) CONSENT REGULATION INAPPLICABLE TO cash reimbursements) is amended by striking the that subparagraph.’’. CERTAIN DISTRIBUTIONS.— last sentence. (c) CONFORMING AMENDMENTS.— (1) IN GENERAL.—The Secretary of the Treas- (b) Subsection (h) of section 132 of the Inter- (1) Section 4021 of the Employee Retirement ury shall modify the regulations under section nal Revenue Code of 1986 (relating to certain Income Security Act of 1974 (29 U.S.C. 1321) is 411(a)(11) of the Internal Revenue Code of 1986 fringe benefits) is amended by adding at the end amended— to provide that the description of a participant’s thereof the following new paragraph: (A) in subsection (b)(9), by striking ‘‘as de- right, if any, to defer receipt of a distribution ‘‘(4) SPECIAL RULE FOR PASSENGERS TRAVELING fined in section 4022(b)(6)’’, and shall also describe the consequences of failing to (B) by adding at the end the following: ON NONCOMMERCIAL AIRCRAFT.—Any use of non- defer such receipt. ‘‘(d) For purposes of subsection (b)(9), the commercial air transportation by an individual (2) EFFECTIVE DATE.—The modifications re- term ‘substantial owner’ means an individual shall be treated as use by an employee if no reg- quired by paragraph (1) shall apply to years be- who, at any time during the 60-month period ularly scheduled commercial flight is available ginning after December 31, 2000. ending on the date the determination is being that day from the air facility at the individual’s made— SEC. 366. REPEAL OF TRANSITION RULE RELAT- location.’’. ‘‘(1) owns the entire interest in an unincor- ING TO CERTAIN HIGHLY COM- (c) Subsection (j) of section 132 of the Internal PENSATED EMPLOYEES. porated trade or business, Revenue Code of 1986 (relating to certain fringe ‘‘(2) in the case of a partnership, is a partner (a) IN GENERAL.—Paragraph (4) of section benefits) is amended by adding at the end there- who owns, directly or indirectly, more than 10 1114(c) of the Tax Reform Act of 1986 is hereby of the following new paragraph: percent of either the capital interest or the prof- repealed. ‘‘(9) SPECIAL RULE FOR CERTAIN NONCOMMER- its interest in such partnership, or (b) EFFECTIVE DATE.—The repeal made by CIAL AIR TRANSPORTATION.—For the purposes of ‘‘(3) in the case of a corporation, owns, di- subsection (a) shall apply to plan years begin- subsection (b) the term ‘no-additional-cost serv- rectly or indirectly, more than 10 percent in ning after December 31, 1999. ice’ includes the value of transportation pro- value of either the voting stock of that corpora- SEC. 367. EMPLOYEES OF TAX-EXEMPT ENTITIES. vided by an employer to an employee on a non- tion or all the stock of that corporation. (a) IN GENERAL.—The Secretary of the Treas- commercially operated aircraft if— For purposes of paragraph (3), the constructive ury shall modify Treasury Regulations section ‘‘(A) such transportation is provided on a ownership rules of section 1563(e) of the Inter- 1.410(b)–6(g) to provide that employees of an or- flight made in the ordinary course of the trade August 2, 1999 CONGRESSIONAL RECORD — SENATE S10029

or business of the employer owning or leasing (A) pursuant to any amendment made by this ‘‘QUALIFIED STATE TUITION’’ and inserting such aircraft for use in such trade or business, title, or pursuant to any regulation issued under ‘‘QUALIFIED TUITION’’. ‘‘(B) the flight on which the transportation is this title, and (C) The headings for sections 529(b) and provided by the employer would have been made (B) on or before the last day of the first plan 530(b)(2)(B) are each amended by striking whether or not such employee was transported year beginning on or after January 1, 2003. ‘‘QUALIFIED STATE TUITION’’ and inserting on the flight, and In the case of a government plan (as defined in ‘‘QUALIFIED TUITION’’. ‘‘(C) the employer incurs no substantial addi- section 414(d) of the Internal Revenue Code of (D) The heading for section 529 is amended by tional cost in providing such transportation to 1986), this paragraph shall be applied by sub- striking ‘‘STATE’’. such employee. stituting ‘‘2005’’ for ‘‘2003’’. (E) The item relating to section 529 in the For purposes of this paragraph, an aircraft is (2) CONDITIONS.—This section shall not apply table of sections for part VIII of subchapter F of noncommercially operated if transportation pro- to any amendment unless— chapter 1 is amended by striking ‘‘State’’. vided by the employer is not provided or made (A) during the period— (c) EXCLUSION FROM GROSS INCOME OF EDU- available to the general public by purchase of a (i) beginning on the date the legislative or reg- CATION DISTRIBUTIONS FROM QUALIFIED TUI- ticket or other fare.’’. ulatory amendment described in paragraph TION PROGRAMS.— (d) EFFECTIVE DATE.—The amendment made (1)(A) takes effect (or in the case of a plan or (1) IN GENERAL.—Section 529(c)(3)(B) (relating by this section shall apply to taxable years be- contract amendment not required by such legis- to distributions) is amended to read as follows: ginning after December 31, 1999. lative or regulatory amendment, the effective ‘‘(B) DISTRIBUTIONS FOR QUALIFIED HIGHER SEC. 371. REPORTING SIMPLIFICATION. date specified by the plan), and EDUCATION EXPENSES.—For purposes of this (a) SIMPLIFIED ANNUAL FILING REQUIREMENT (ii) ending on the date described in paragraph paragraph— N KIND DISTRIBUTIONS FOR OWNERS AND THEIR SPOUSES.— (1)(B) (or, if earlier, the date the plan or con- ‘‘(i) I - .—No amount shall (1) IN GENERAL.—The Secretary of the Treas- tract amendment is adopted), be includible in gross income under subpara- ury shall modify the requirements for filing an- the plan or contract is operated as if such plan graph (A) by reason of a distribution which con- nual returns with respect to one-participant re- or contract amendment were in effect, and sists of providing a benefit to the distributee tirement plans to ensure that such plans with (B) such plan or contract amendment applies which, if paid for by the distributee, would con- assets of $500,000 or less as of the close of the retroactively for such period. stitute payment of a qualified higher education plan year need not file a return for that year. TITLE IV—EDUCATION TAX RELIEF expense. (2) ONE-PARTICIPANT RETIREMENT PLAN DE- PROVISIONS ‘‘(ii) CASH DISTRIBUTIONS.—In the case of dis- tributions not described in clause (i), if— FINED.—For purposes of this subsection, the SEC. 401. ELIMINATION OF 60-MONTH LIMIT AND term ‘‘one-participant retirement plan’’ means a INCREASE IN INCOME LIMITATION ‘‘(I) such distributions do not exceed the retirement plan that— ON STUDENT LOAN INTEREST DE- qualified higher education expenses (reduced by (A) on the first day of the plan year— DUCTION. expenses described in clause (i)), no amount (i) covered only the employer (and the employ- (a) ELIMINATION OF 60-MONTH LIMIT.— shall be includible in gross income, and er’s spouse) and the employer owned the entire (1) IN GENERAL.—Section 221 (relating to inter- ‘‘(II) in any other case, the amount otherwise business (whether or not incorporated), or est on education loans) is amended by striking includible in gross income shall be reduced by (ii) covered only one or more partners (and subsection (d) and by redesignating subsections an amount which bears the same ratio to such their spouses) in a business partnership (includ- (e), (f), and (g) as subsections (d), (e), and (f), amount as such expenses bear to such distribu- ing partners in an S or C corporation), respectively. tions. (B) meets the minimum coverage requirements (2) CONFORMING AMENDMENT.—Section ‘‘(iii) EXCEPTION FOR INSTITUTIONAL PRO- of section 410(b) of the Internal Revenue Code of 6050S(e) is amended by striking ‘‘section GRAMS.—In the case of any taxable year begin- 1986 without being combined with any other 221(e)(1)’’ and inserting ‘‘section 221(d)(1)’’. ning before January 1, 2004, clauses (i) and (ii) plan of the business that covers the employees of (3) EFFECTIVE DATE.—The amendments made shall not apply with respect to any distribution the business, by this subsection shall apply with respect to during such taxable year under a qualified tui- (C) does not provide benefits to anyone except any loan interest paid after December 31, 1999, tion program established and maintained by 1 or the employer (and the employer’s spouse) or the in taxable years ending after such date. more eligible educational institutions. partners (and their spouses), (b) INCREASE IN INCOME LIMITATION.— ‘‘(iv) TREATMENT AS DISTRIBUTIONS.—Any (D) does not cover a business that is a member (1) IN GENERAL.—Section 221(b)(2)(B) (relating benefit furnished to a designated beneficiary of an affiliated service group, a controlled group to amount of reduction) is amended by striking under a qualified tuition program shall be treat- of corporations, or a group of businesses under clauses (i) and (ii) and inserting the following: ed as a distribution to the beneficiary for pur- common control, and ‘‘(i) the excess of— poses of this paragraph. (E) does not cover a business that leases em- ‘‘(I) the taxpayer’s modified adjusted gross in- ‘‘(v) COORDINATION WITH HOPE AND LIFETIME ployees. come for such taxable year, over LEARNING CREDITS.—The total amount of quali- (3) OTHER DEFINITIONS.—Terms used in para- ‘‘(II) $50,000 (twice such dollar amount in the fied higher education expenses with respect to graph (2) which are also used in section 414 of case of a joint return), bears to an individual for the taxable year shall be the Internal Revenue Code of 1986 shall have ‘‘(ii) $15,000.’’. reduced— the respective meanings given such terms by (2) CONFORMING AMENDMENT.—Section ‘‘(I) as provided in section 25A(g)(2), and such section. 221(g)(1) is amended by striking ‘‘$40,000 and ‘‘(II) by the amount of such expenses which $60,000 amounts’’ and inserting ‘‘$50,000 (b) SIMPLIFIED ANNUAL FILING REQUIREMENT were taken into account in determining the amount’’. FOR PLANS WITH FEWER THAN 25 EMPLOYEES.— credit allowed to the taxpayer or any other per- In the case of a retirement plan which covers (3) EFFECTIVE DATE.—The amendments made son under section 25A. less than 25 employees on the 1st day of the plan by this subsection shall apply to taxable years ‘‘(vi) COORDINATION WITH EDUCATION INDI- year and meets the requirements described in ending after December 31, 1999. VIDUAL RETIREMENT ACCOUNTS.—If, with respect subparagraphs (B), (D), and (E) of subsection SEC. 402. MODIFICATIONS TO QUALIFIED TUI- to an individual for any taxable year— (a)(2), the Secretary of the Treasury shall pro- TION PROGRAMS. ‘‘(I) the aggregate distributions to which vide for the filing of a simplified annual return (a) SHORT TITLE.—This section may be cited clauses (i) and (ii) and section 530(d)(2)(A) that is substantially similar to the annual re- as the ‘‘Collegiate Learning and Student Sav- apply, exceed turn required to be filed by a one-participant re- ings (CLASS) Act’’. ‘‘(II) the total amount of qualified higher edu- tirement plan. (b) ELIGIBLE EDUCATIONAL INSTITUTIONS PER- cation expenses otherwise taken into account MITTED TO MAINTAIN QUALIFIED TUITION PRO- under clauses (i) and (ii) (after the application (c) EFFECTIVE DATE.—The provisions of this section shall take effect on January 1, 2001. GRAMS.— of clause (v)) for such year, (1) IN GENERAL.—Section 529(b)(1) (defining the taxpayer shall allocate such expenses among Subtitle H—Plan Amendments qualified State tuition program) is amended by such distributions for purposes of determining SEC. 381. PROVISIONS RELATING TO PLAN inserting ‘‘or by 1 or more eligible educational the amount of the exclusion under clauses (i) AMENDMENTS. institutions’’ after ‘‘maintained by a State or and (ii) and section 530(d)(2)(A).’’. (a) IN GENERAL.—If this section applies to any agency or instrumentality thereof ’’. (2) CONFORMING AMENDMENTS.— plan or contract amendment— (2) PRIVATE QUALIFIED TUITION PROGRAMS (A) Section 135(d)(2)(B) is amended by striking (1) such plan or contract shall be treated as LIMITED TO BENEFIT PLANS.—Clause (ii) of sec- ‘‘the exclusion under section 530(d)(2)’’ and in- being operated in accordance with the terms of tion 529(b)(1)(A) is amended by inserting ‘‘in the serting ‘‘the exclusions under sections the plan during the period described in sub- case of a program established and maintained 529(c)(3)(B)(i) and 530(d)(2)’’. section (b)(2)(A), and by a State or agency or instrumentality there- (B) Section 221(e)(2)(A) is amended by insert- (2) such plan shall not fail to meet the re- of,’’ before ‘‘may make’’. ing ‘‘529,’’ after ‘‘135,’’. quirements of section 411(d)(6) of the Internal (3) CONFORMING AMENDMENTS.— (d) COORDINATION WITH HOPE AND LIFETIME Revenue Code of 1986 by reason of such amend- (A) Sections 72(e)(9), 135(c)(2)(C), 135(d)(1)(D), LEARNING CREDITS AND QUALIFIED TUITION ment. 529, 530(b)(2)(B), 4973(e), and 6693(a)(2)(C) are PROGRAMS.— (b) AMENDMENTS TO WHICH SECTION AP- each amended by striking ‘‘qualified State tui- (1) IN GENERAL.—Section 530(d)(2)(C) is PLIES.— tion’’ each place it appears and inserting amended to read as follows: (1) IN GENERAL.—This section shall apply to ‘‘qualified tuition’’. ‘‘(C) COORDINATION WITH HOPE AND LIFETIME any amendment to any plan or annuity contract (B) The headings for sections 72(e)(9) and LEARNING CREDITS AND QUALIFIED TUITION PRO- which is made— 135(c)(2)(C) are each amended by striking GRAMS.—For purposes of subparagraph (A)— S10030 CONGRESSIONAL RECORD — SENATE August 2, 1999

‘‘(i) CREDIT COORDINATION.—The total amount determined by the eligible educational institu- SEC. 406. TREATMENT OF QUALIFIED PUBLIC of qualified higher education expenses with re- tion.’’. EDUCATIONAL FACILITY BONDS AS EXEMPT FACILITY BONDS. spect to an individual for the taxable year shall (2) EXCEPTION FOR EDUCATION INVOLVING REATMENT AS XEMPT ACILITY OND be reduced— SPORTS, ETC.—Paragraph (3) of section 529(e) (a) T E F B .— ‘‘(I) as provided in section 25A(g)(2), and (relating to qualified higher education expenses) Subsection (a) of section 142 (relating to exempt ‘‘(II) by the amount of such expenses which is amended by adding at the end the following facility bond) is amended by striking ‘‘or’’ at the were taken into account in determining the new subparagraph: end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ‘‘, or’’, credit allowed to the taxpayer or any other per- ‘‘(C) EXCEPTION FOR EDUCATION INVOLVING and by adding at the end the following new son under section 25A. SPORTS, ETC.—The term ‘qualified higher edu- ‘‘(ii) COORDINATION WITH QUALIFIED TUITION cation expenses’ shall not include expenses with paragraph: ‘‘(13) qualified public educational facilities.’’. PROGRAMS.—If, with respect to an individual for respect to any course or other education involv- (b) QUALIFIED PUBLIC EDUCATIONAL FACILI- any taxable year— ing sports, games, or hobbies unless such course TIES.—Section 142 (relating to exempt facility ‘‘(I) the aggregate distributions during such or other education is part of the beneficiary’s bond) is amended by adding at the end the fol- year to which subparagraph (A) and section degree program or is taken to acquire or improve lowing new subsection: 529(c)(3)(B) apply, exceed job skills of the beneficiary.’’. ‘‘(k) QUALIFIED PUBLIC EDUCATIONAL FACILI- ‘‘(II) the total amount of qualified higher edu- (h) EFFECTIVE DATES.— cation expenses otherwise taken into account TIES.— (1) IN GENERAL.—The amendments made by under subparagraph (A) (after the application ‘‘(1) IN GENERAL.—For purposes of subsection this section shall apply to taxable years begin- (a)(13), the term ‘qualified public educational of clause (i)) for such year, ning after December 31, 1999. the taxpayer shall allocate such expenses among facility’ means any school facility which is— (2) QUALIFIED HIGHER EDUCATION EXPENSES.— such distributions for purposes of determining ‘‘(A) part of a public elementary school or a The amendments made by subsection (g) shall the amount of the exclusion under subpara- public secondary school, and apply to amounts paid for courses beginning ‘‘(B) owned by a private, for-profit corpora- graph (A) and section 529(c)(3)(B).’’. after December 31, 1999. tion pursuant to a public-private partnership (2) CONFORMING AMENDMENTS.— (A) Subsection (e) of section 25A is amended to SEC. 403. EXCLUSION OF CERTAIN AMOUNTS RE- agreement with a State or local educational read as follows: CEIVED UNDER THE NATIONAL agency described in paragraph (2). HEALTH SERVICE CORPS SCHOLAR- ‘‘(2) PUBLIC-PRIVATE PARTNERSHIP AGREEMENT ‘‘(e) ELECTION TO HAVE SECTION APPLY.—No SHIP PROGRAM AND THE F. EDWARD DESCRIBED.—A public-private partnership agree- credit shall be allowed under subsection (a) for HEBERT ARMED FORCES HEALTH ment is described in this paragraph if it is an a taxable year with respect to the qualified tui- PROFESSIONS SCHOLARSHIP AND agreement— tion and related expenses of an individual un- FINANCIAL ASSISTANCE PROGRAM. ‘‘(A) under which the corporation agrees— less the taxpayer elects to have this section (a) IN GENERAL.—Section 117(c) (relating to ‘‘(i) to do 1 or more of the following: con- apply with respect to such individual for such the exclusion from gross income amounts re- struct, rehabilitate, refurbish, or equip a school year.’’. ceived as a qualified scholarship) is amended— facility, and (B) Section 135(d)(2)(A) is amended by striking (1) by striking ‘‘Subsections (a)’’ and inserting ‘‘(ii) at the end of the term of the agreement, ‘‘allowable’’ and inserting ‘‘allowed’’. the following: to transfer the school facility to such agency for (C) Section 530(d)(2)(D) is amended— ‘‘(1) IN GENERAL.—Except as provided in para- no additional consideration, and (i) by striking ‘‘or credit’’, and graph (2), subsections (a)’’, and ‘‘(B) the term of which does not exceed the (ii) by striking ‘‘CREDIT OR’’ in the heading. (2) by adding at the end the following new last maturity date of any bond which is a part (e) ROLLOVER TO DIFFERENT PROGRAM FOR paragraph: of the issue to be used to finance the activities BENEFIT OF SAME DESIGNATED BENEFICIARY.— ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not described in subparagraph (A)(i). Section 529(c)(3)(C) (relating to change in bene- apply to any amount received by an individual ‘‘(3) SCHOOL FACILITY.—For purposes of this ficiaries) is amended— under— subsection, the term ‘school facility’ means— (1) by striking ‘‘transferred to the credit’’ in ‘‘(A) the National Health Service Corps Schol- ‘‘(A) school buildings, clause (i) and inserting ‘‘transferred— arship program under section 338A(g)(1)(A) of ‘‘(B) functionally related and subordinate fa- ‘‘(I) to another qualified tuition program for the Public Health Service Act, or cilities and land with respect to such buildings, the benefit of the designated beneficiary, or ‘‘(B) the Armed Forces Health Professions including any stadium or other facility pri- ‘‘(II) to the credit’’, Scholarship and Financial Assistance program marily used for school events, and (2) by adding at the end the following new under subchapter I of chapter 105 of title 10, ‘‘(C) any property, to which section 168 ap- clause: United States Code.’’. plies (or would apply but for section 179), for ‘‘(iii) LIMITATION ON CERTAIN ROLLOVERS.— use in the facility. Clause (i)(I) shall not apply to any amount (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall apply to amounts re- ‘‘(4) PUBLIC SCHOOLS.—For purposes of this transferred with respect to a designated bene- subsection, the terms ‘elementary school’ and ficiary if, at any time during the 1-year period ceived in taxable years beginning after Decem- ber 31, 1993. ‘secondary school’ have the meanings given ending on the day of such transfer, any other such terms by section 14101 of the Elementary amount was transferred with respect to such SEC. 404. EXTENSION OF EXCLUSION FOR EM- and Secondary Education Act of 1965 (20 U.S.C. beneficiary which was not includible in gross in- PLOYER-PROVIDED EDUCATIONAL ASSISTANCE. 8801), as in effect on the date of the enactment come by reason of clause (i)(I).’’, and of this subsection. (a) IN GENERAL.—Section 127(d) (relating to (3) by inserting ‘‘OR PROGRAMS’’ after ‘‘BENE- ‘‘(5) ANNUAL AGGREGATE FACE AMOUNT OF termination of exclusion for educational assist- FICIARIES’’ in the heading. TAX-EXEMPT FINANCING.— ance programs) is amended by striking ‘‘May 31, (f) MEMBER OF FAMILY INCLUDES FIRST COUS- ‘‘(A) IN GENERAL.—An issue shall not be treat- 2000’’ and inserting ‘‘December 31, 2003’’. IN.—Section 529(e)(2) (defining member of fam- ed as an issue described in subsection (a)(13) if ily) is amended by striking ‘‘and’’ at the end of (b) REPEAL OF LIMITATION ON GRADUATE EDU- the aggregate face amount of bonds issued by subparagraph (B), by striking the period at the CATION.— the State pursuant thereto (when added to the end of subparagraph (C) and by inserting ‘‘; (1) IN GENERAL.—The last sentence of section aggregate face amount of bonds previously so and’’, and by adding at the end the following 127(c)(1) is amended by striking ‘‘, and such issued during the calendar year) exceeds an new subparagraph: term also does not include any payment for, or amount equal to the greater of— ‘‘(D) any first cousin of such beneficiary.’’. the provision of any benefits with respect to, ‘‘(i) $10 multiplied by the State population, or (g) DEFINITION OF QUALIFIED HIGHER EDU- any graduate level course of a kind normally ‘‘(ii) $5,000,000. CATION EXPENSES.— taken by an individual pursuing a program ‘‘(B) ALLOCATION RULES.— (1) IN GENERAL.—Subparagraph (A) of section leading to a law, business, medical, or other ad- ‘‘(i) IN GENERAL.—Except as otherwise pro- 529(e)(3) (relating to definition of qualified high- vanced academic or professional degree’’. vided in this subparagraph, the State may allo- er education expenses) is amended to read as (2) EFFECTIVE DATE.—The amendment made cate the amount described in subparagraph (A) follows: by paragraph (1) shall apply with respect to ex- for any calendar year in such manner as the ‘‘(A) IN GENERAL.—The term ‘qualified higher penses relating to courses beginning after De- State determines appropriate. education expenses’ means— cember 31, 1999. ‘‘(ii) RULES FOR CARRYFORWARD OF UNUSED ‘‘(i) tuition and fees required for the enroll- SEC. 405. ADDITIONAL INCREASE IN ARBITRAGE LIMITATION.—A State may elect to carry forward ment or attendance of a designated beneficiary REBATE EXCEPTION FOR GOVERN- an unused limitation for any calendar year for at an eligible educational institution for courses MENTAL BONDS USED TO FINANCE 3 calendar years following the calendar year in of instruction of such beneficiary at such insti- EDUCATIONAL FACILITIES. which the unused limitation arose under rules tution, and (a) IN GENERAL.—Section 148(f)(4)(D)(vii) (re- similar to the rules of section 146(f), except that ‘‘(ii) expenses for books, supplies, and equip- lating to increase in exception for bonds financ- the only purpose for which the carryforward ment which are incurred in connection with ing public school capital expenditures) is may be elected is the issuance of exempt facility such enrollment or attendance, but not to ex- amended by striking ‘‘$5,000,000’’ the second bonds described in subsection (a)(13).’’. ceed the allowance for books and supplies in- place it appears and inserting ‘‘$10,000,000’’. (c) EXEMPTION FROM GENERAL STATE VOLUME cluded in the cost of attendance (as defined in (b) EFFECTIVE DATE.—The amendment made CAPS.—Paragraph (3) of section 146(g) (relating section 472 of the Higher Education Act of 1965 by subsection (a) shall apply to obligations to exception for certain bonds) is amended— (20 U.S.C. 1087ll), as in effect on the date of en- issued in calendar years beginning after Decem- (1) by striking ‘‘or (12)’’ and inserting ‘‘(12), actment of the Taxpayer Refund Act of 1999) as ber 31, 1999. or (13)’’, and August 2, 1999 CONGRESSIONAL RECORD — SENATE S10031 (2) by striking ‘‘and environmental enhance- paragraph (1) for a taxable year with respect to sons treated as a single employer under sub- ments of hydroelectric generating facilities’’ and amounts provided to each child of such em- sections (b), (c), (m), or (o) of section 414 were inserting ‘‘environmental enhancements of hy- ployee shall not exceed $2,000. treated as one health plan. droelectric generating facilities, and qualified ‘‘(B) AGGREGATE LIMIT.—The amount ex- ‘‘(D) SEPARATE APPLICATION TO HEALTH IN- public educational facilities’’. cluded from the gross income of the employee by SURANCE AND LONG-TERM CARE INSURANCE.— (d) EXEMPTION FROM LIMITATION ON USE FOR reason of paragraph (1) for a taxable year (after Subparagraphs (A) and (C) shall be applied sep- LAND ACQUISITION.—Section 147(h) (relating to the application of subparagraph (A)) shall not arately with respect to— certain rules not to apply to mortgage revenue exceed the excess of the dollar amount con- ‘‘(i) plans which include primarily coverage bonds, qualified student loan bonds, and quali- tained in section 127(a)(2) over the amount ex- for qualified long-term care services or are fied 501(c)(3) bonds) is amended by adding at cluded from the employee’s gross income under qualified long-term care insurance contracts, the end the following new paragraph: section 127 for such year. and ‘‘(3) EXEMPT FACILITY BONDS FOR QUALIFIED ‘‘(3) PRINCIPAL SHAREHOLDERS AND OWNERS.— ‘‘(ii) plans which do not include such cov- PUBLIC-PRIVATE SCHOOLS.—Subsection (c) shall Paragraph (1) shall not apply to any amount erage and are not such contracts. not apply to any exempt facility bond issued as provided to any child of any individual if such ‘‘(2) COVERAGE UNDER CERTAIN FEDERAL PRO- part of an issue described in section 142(a)(13) individual (or such individual’s spouse) owns GRAMS.— ‘‘(A) IN GENERAL.—Subsection (a) shall not (relating to qualified public educational facili- (on any day of the year) more than 5 percent of apply to any amount paid for any coverage for ties).’’. the stock or of the capital or profits interest in an individual for any calendar month if, as of (e) CONFORMING AMENDMENT.—The heading the employer. the first day of such month, the individual is for section 147(h) is amended by striking ‘‘(4) DEGREE REQUIREMENT NOT TO APPLY.—In covered under any medical care program de- ‘‘MORTGAGE REVENUE BONDS, QUALIFIED STU- the case of an amount which is treated as a scribed in— DENT LOAN BONDS, AND QUALIFIED 501(c)(3) qualified scholarship by reason of this sub- ‘‘(i) title XVIII, XIX, or XXI of the Social Se- BONDS’’ and inserting ‘‘CERTAIN BONDS’’. section, subsection (a) shall be applied without curity Act, (f) EFFECTIVE DATE.—The amendments made regard to the requirement that the recipient be ‘‘(ii) chapter 55 of title 10, United States Code, by this section shall apply to bonds issued after a candidate for a degree. ‘‘(iii) chapter 17 of title 38, United States December 31, 1999. ‘‘(5) CERTAIN OTHER RULES TO APPLY.—Rules Code, SEC. 407. FEDERAL GUARANTEE OF SCHOOL CON- similar to the rules of paragraphs (4), (5), and ‘‘(iv) chapter 89 of title 5, United States Code, STRUCTION BONDS BY FEDERAL (7) of section 127(c) shall apply for purposes of or HOME LOAN BANKS. this subsection.’’. ‘‘(v) the Indian Health Care Improvement Act. (a) IN GENERAL.—Section 149(b)(3) (relating to (b) EFFECTIVE DATE.—The amendment made ‘‘(B) EXCEPTIONS.— exceptions) is amended by adding at the end the by this section shall apply to taxable years be- ‘‘(i) QUALIFIED LONG-TERM CARE.—Subpara- following new subparagraph: ginning after the date of enactment of this Act. graph (A) shall not apply to amounts paid for ‘‘(E) CERTAIN GUARANTEED SCHOOL CONSTRUC- TITLE V—HEALTH CARE TAX RELIEF coverage under a qualified long-term care insur- TION BONDS.—Any bond issued as part of an PROVISIONS ance contract. issue 95 percent or more of the net proceeds of ‘‘(ii) CONTINUATION COVERAGE OF FEHBP.— which are used for public school construction SEC. 501. DEDUCTION FOR HEALTH AND LONG- Subparagraph (A)(iv) shall not apply to cov- shall not be treated as federally guaranteed by TERM CARE INSURANCE COSTS OF erage which is comparable to continuation cov- INDIVIDUALS NOT PARTICIPATING reason of any guarantee by any Federal Home IN EMPLOYER-SUBSIDIZED HEALTH erage under section 4980B. Loan Bank under the Federal Home Loan Bank PLANS. ‘‘(d) LONG-TERM CARE DEDUCTION LIMITED TO QUALIFIED LONG-TERM CARE INSURANCE CON- Act (12 U.S.C. 1421 et seq.), to the extent the (a) IN GENERAL.—Part VII of subchapter B of Federal Housing Finance Board allocates au- chapter 1 is amended by redesignating section TRACTS.—In the case of a qualified long-term thority to such Bank to so guarantee such bond. 222 as section 223 and by inserting after section care insurance contract, only eligible long-term For purposes of the preceding sentence, the ag- 221 the following new section: care premiums (as defined in section 213(d)(10)) gregate face amount of such bonds which may may be taken into account under subsection (a). ‘‘SEC. 222. HEALTH AND LONG-TERM CARE INSUR- ‘‘(e) DEDUCTION NOT AVAILABLE FOR PAY- be so guaranteed may not exceed $500,000,000 in ANCE COSTS. MENT OF ANCILLARY COVERAGE PREMIUMS.— any calendar year.’’. ‘‘(a) IN GENERAL.—In the case of an indi- (b) EFFECTIVE DATE.—Subparagraph (E) of Any amount paid as a premium for insurance vidual, there shall be allowed as a deduction an which provides for— section 149(b)(3) of the Internal Revenue Code of amount equal to the applicable percentage of 1986, as added by the amendment made by sub- ‘‘(1) coverage for accidents, disability, dental the amount paid during the taxable year for in- care, vision care, or a specified illness, or section (a), shall take effect upon the enact- surance which constitutes medical care for the ment, after the date of the enactment of this ‘‘(2) making payments of a fixed amount per taxpayer and the taxpayer’s spouse and depend- day (or other period) by reason of being hos- Act, of legislation authorizing the Federal Hous- ents. ing Finance Board to allocate authority to Fed- pitalized. ‘‘(b) APPLICABLE PERCENTAGE.—For purposes shall not be taken into account under sub- eral Home Loan Banks to guarantee any bond of subsection (a), the applicable percentage section (a). described in such subparagraph, but only if shall be determined in accordance with the fol- ‘‘(f) SPECIAL RULES.— such legislation makes specific reference to such lowing table: ‘‘(1) COORDINATION WITH DEDUCTION FOR subparagraph. ‘‘For taxable years beginning The applicable HEALTH INSURANCE COSTS OF SELF-EMPLOYED IN- SEC. 408. CERTAIN EDUCATIONAL BENEFITS PRO- DIVIDUALS.—The amount taken into account by VIDED BY AN EMPLOYER TO CHIL- in calendar year— percentage is— 2001, 2002, 2003 ...... 25 the taxpayer in computing the deduction under DREN OF EMPLOYEES EXCLUDABLE section 162(l) shall not be taken into account FROM GROSS INCOME AS A SCHOL- 2004 and 2005 ...... 50 ARSHIP. 2006 and thereafter ...... 100. under this section. ‘‘(2) COORDINATION WITH MEDICAL EXPENSE (a) IN GENERAL.—Section 117 (relating to ‘‘(c) LIMITATION BASED ON OTHER COV- DEDUCTION.—The amount taken into account by qualified scholarships) is amended by adding at ERAGE.— the taxpayer in computing the deduction under the end the following: ‘‘(1) COVERAGE UNDER CERTAIN SUBSIDIZED this section shall not be taken into account ‘‘(e) EMPLOYER-PROVIDED EDUCATIONAL BEN- EMPLOYER PLANS.— under section 213. EFITS PROVIDED TO CHILDREN OF EMPLOYEES.— ‘‘(A) IN GENERAL.—Subsection (a) shall not ‘‘(g) REGULATIONS.—The Secretary shall pre- ‘‘(1) IN GENERAL.—In determining whether apply to any taxpayer for any calendar month scribe such regulations as may be appropriate to any amount is a qualified scholarship for pur- for which the taxpayer participates in any carry out this section, including regulations re- poses of subsection (a), the fact that such health plan maintained by any employer of the quiring employers to report to their employees amount is provided in connection with an em- taxpayer or of the spouse of the taxpayer if 50 and the Secretary such information as the Sec- ployment relationship shall be disregarded if— percent or more of the cost of coverage under retary determines to be appropriate.’’. ‘‘(A) such amount is provided by the employer such plan (determined under section 4980B and (b) DEDUCTION ALLOWED WHETHER OR NOT to a child (as defined in section 161(c)(3)) of an without regard to payments made with respect TAXPAYER ITEMIZES OTHER DEDUCTIONS.—Sub- to any coverage described in subsection (e)) is employee of such employer, section (a) of section 62 is amended by inserting ‘‘(B) such amount is provided pursuant to a paid or incurred by the employer. after paragraph (17) the following new item: plan which meets the nondiscrimination require- ‘‘(B) EMPLOYER CONTRIBUTIONS TO CAFETERIA ‘‘(18) HEALTH AND LONG-TERM CARE INSURANCE ments of subsection (d)(3), and PLANS, FLEXIBLE SPENDING ARRANGEMENTS, AND COSTS.—The deduction allowed by section 222.’’. MEDICAL SAVINGS ACCOUNTS.—Employer con- ‘‘(C) amounts provided under such plan are in (c) CLERICAL AMENDMENT.—The table of sec- addition to any other compensation payable to tributions to a cafeteria plan, a flexible spend- tions for part VII of subchapter B of chapter 1 employees and such plan does not provide em- ing or similar arrangement, or a medical savings is amended by striking the last item and insert- ployees with a choice between such amounts account which are excluded from gross income ing the following new items: and any other benefit. under section 106 shall be treated for purposes For purposes of subparagraph (C), the business of subparagraph (A) as paid by the employer. ‘‘Sec. 222. Health and long-term care insurance practices of the employer (as well as such plan) ‘‘(C) AGGREGATION OF PLANS OF EMPLOYER.— costs. shall be taken into account. A health plan which is not otherwise described ‘‘Sec. 223. Cross reference.’’. ‘‘(2) DOLLAR LIMITATIONS.— in subparagraph (A) shall be treated as de- (c) EFFECTIVE DATE.—The amendments made ‘‘(A) PER CHILD.—The amount excluded from scribed in such subparagraph if such plan by this section shall apply to taxable years be- the gross income of the employee by reason of would be so described if all health plans of per- ginning after December 31, 2000. S10032 CONGRESSIONAL RECORD — SENATE August 2, 1999 SEC. 502. LONG-TERM CARE INSURANCE PER- section 21(e) shall apply for purposes of this constitutes medical care for the taxpayer and MITTED TO BE OFFERED UNDER subsection.’’. the taxpayer’s spouse and dependents.’’. CAFETERIA PLANS AND FLEXIBLE (b) EFFECTIVE DATE.—The amendments made (b) CLARIFICATION OF LIMITATIONS ON OTHER SPENDING ARRANGEMENTS. by this section shall apply to taxable years be- COVERAGE.—The first sentence of section (a) CAFETERIA PLANS.— ginning after December 31, 1999. 162(l)(2)(B) of the Internal Revenue Code of 1986 (1) IN GENERAL.—Subsection (f) of section 125 is amended to read as follows: ‘‘Paragraph (1) (defining qualified benefits) is amended by in- SEC. 504. INCLUSION OF CERTAIN VACCINES AGAINST STREPTOCOCCUS shall not apply to any taxpayer for any cal- serting before the period at the end ‘‘; except PNEUMONIAE TO LIST OF TAXABLE endar month for which the taxpayer partici- that such term shall include the payment of pre- VACCINES; REDUCTION IN PER DOSE pates in any subsidized health plan maintained miums for any qualified long-term care insur- TAX RATE. by any employer (other than an employer de- ance contract (as defined in section 7702B) to (a) INCLUSION OF VACCINES.— scribed in section 401(c)(4)) of the taxpayer or the extent the amount of such payment does not (1) IN GENERAL.—Section 4132(a)(1) (defining the spouse of the taxpayer.’’. exceed the eligible long-term care premiums (as taxable vaccine) is amended by adding at the (c) EFFECTIVE DATE.—The amendments made defined in section 213(d)(10)) for such con- end the following new subparagraph: by this section shall apply to taxable years be- tract.’’. ‘‘(L) Any conjugate vaccine against strepto- ginning after December 31, 1999. (b) FLEXIBLE SPENDING ARRANGEMENTS.—Sec- coccus pneumoniae.’’. SEC. 602. INCREASE IN EXPENSE TREATMENT tion 106 (relating to contributions by employer (2) EFFECTIVE DATE.— FOR SMALL BUSINESSES. to accident and health plans) is amended by (A) SALES.—The amendment made by this sub- striking subsection (c). section shall apply to vaccine sales beginning on (a) IN GENERAL.—Paragraph (1) of section (c) EFFECTIVE DATE.—The amendments made the day after the date on which the Centers for 179(b) (relating to dollar limitation) is amended by this section shall apply to taxable years be- Disease Control makes a final recommendation to read as follows: ginning after December 31, 2000. for routine administration to children of any ‘‘(1) DOLLAR LIMITATION.—The aggregate cost which may be taken into account under sub- SEC. 503. ADDITIONAL PERSONAL EXEMPTION conjugate vaccine against streptococcus FOR TAXPAYER CARING FOR ELDER- pneumoniae, but shall not take effect if sub- section (a) for any taxable year shall not exceed LY FAMILY MEMBER IN TAXPAYER’S section (c) does not take effect. $30,000.’’. (b) EFFECTIVE DATE.—The amendment made HOME. (B) DELIVERIES.—For purposes of subpara- (a) IN GENERAL.—Section 151 (relating to al- graph (A), in the case of sales on or before the by this section shall apply to taxable years be- lowance of deductions for personal exemptions) date described in such subparagraph for which ginning after December 31, 1999. is amended by adding at the end redesignating delivery is made after such date, the delivery SEC. 603. REPEAL OF FEDERAL UNEMPLOYMENT subsection (e) as subsection (f) and by inserting date shall be considered the sale date. SURTAX. after subsection (d) the following new sub- (b) REDUCTION IN PER DOSE TAX RATE.— Section 3301 (relating to rate of Federal unem- section: (1) IN GENERAL.—Section 4131(b)(1) (relating ployment tax) is amended— ‘‘(e) ADDITIONAL EXEMPTION FOR CERTAIN EL- to amount of tax) is amended by striking ‘‘75 (1) by striking ‘‘2007’’ and inserting ‘‘2004’’, DERLY FAMILY MEMBERS RESIDING WITH TAX- cents’’ and inserting ‘‘25 cents’’. and PAYER.— (2) EFFECTIVE DATE.— (2) by striking ‘‘2008’’ and inserting ‘‘2005’’. ‘‘(1) IN GENERAL.—An exemption of the exemp- (A) SALES.—The amendment made by this sub- SEC. 604. INCOME AVERAGING FOR FARMERS AND tion amount for each qualified family member of section shall apply to vaccine sales after Decem- FISHERMEN NOT TO INCREASE AL- the taxpayer. ber 31, 2004, but shall not take effect if sub- TERNATIVE MINIMUM TAX LIABIL- ‘‘(2) QUALIFIED FAMILY MEMBER.—For pur- section (c) does not take effect. ITY. poses of this subsection, the term ‘qualified fam- (B) DELIVERIES.—For purposes of subpara- (a) IN GENERAL.—Section 55(c) (defining reg- ily member’ means, with respect to any taxable graph (A), in the case of sales on or before the ular tax) is amended by redesignating para- year, any individual— date described in such subparagraph for which graph (2) as paragraph (3) and by inserting ‘‘(A) who is— delivery is made after such date, the delivery after paragraph (1) the following: ‘‘(i) the father or mother, or an ancestor of ei- date shall be considered the sale date. ‘‘(2) COORDINATION WITH INCOME AVERAGING ther, or (3) LIMITATION ON CERTAIN CREDITS OR RE- FOR FARMERS AND FISHERMEN.—Solely for pur- ‘‘(ii) a stepfather or stepmother, FUNDS.—For purposes of applying section poses of this section, section 1301 (relating to of the taxpayer or of the taxpayer’s spouse or 4132(b) of the Internal Revenue Code of 1986 averaging of farm and fishing income) shall not former spouse, with respect to any claim for credit or refund apply in computing the regular tax.’’. ‘‘(B) who is a member for the entire taxable filed after August 31, 2004, the amount of tax (b) ALLOWING INCOME AVERAGING FOR FISHER- year of a household maintained by the tax- taken into account shall not exceed the tax com- MEN.—(1) Section 1301(a) of the Internal Rev- payer, and puted under the rate in effect on January 1, enue Code of 1986 is amended by striking ‘‘farm- ‘‘(C) who has been certified, before the due ing business’’ and inserting ‘‘farming business date for filing the return of tax for the taxable 2005. (c) VACCINE TAX AND TRUST FUND AMEND- or fishing business,’’. year (without extensions), by a physician (as (2) Section 1301(b)(1)(A)(i) is amended by defined in section 1861(r)(1) of the Social Secu- MENTS.— (1) Sections 1503 and 1504 of the Vaccine In- striking ‘‘and’’ and inserting ‘‘or’’, and by strik- rity Act) as being an individual with long-term jury Compensation Program Modification Act ing subsection (b)(1)(A)(ii) and replacing it with care needs described in paragraph (3) for a (and the amendments made by such sections) ‘‘(b)(1)(A)(ii) a fishing business; and’’ and by period— redesignating subsection (b)(1)(A)(ii) as sub- ‘‘(i) which is at least 180 consecutive days, are hereby repealed. (2) Subparagraph (A) of section 9510(c)(1) is section (b)(1)(A)(iii). and (3) Section 1301(b) is amended by inserting the ‘‘(ii) a portion of which occurs within the tax- amended by striking ‘‘August 5, 1997’’ and in- following paragraph after subsection (b)(3): able year. serting ‘‘October 21, 1998’’. ‘‘(4) FISHING BUSINESS.—The term fishing busi- Such term shall not include any individual oth- (3) The amendments made by this subsection ness means the conduct of commercial fishing as erwise meeting the requirements of the preceding shall take effect as if included in the provisions of the Tax and Trade Relief Extension Act of defined in section 3 of the Magnuson-Stevens sentence unless within the 391⁄2 month period Fishery Conservation and Management Act (16 ending on such due date (or such other period 1998 to which they relate. U.S.C. 1802).’’. as the Secretary prescribes) a physician (as so (d) REPORT.—Not later than 1 year after the (c) EFFECTIVE DATE.—The amendments made defined) has certified that such individual meets date of the enactment of this Act, the Comp- by this section shall apply to taxable years be- such requirements. troller General of the United States shall pre- pare and submit a report to the Committee on ginning after December 31, 1999. ‘‘(3) INDIVIDUALS WITH LONG-TERM CARE Ways and Means of the House of Representa- NEEDS.—An individual is described in this para- SEC. 605. FARM, FISHING, AND RANCH RISK MAN- graph if the individual— tives and the Committee on Finance of the Sen- AGEMENT ACCOUNTS. ‘‘(A) is unable to perform (without substantial ate on the operation the Vaccine Injury Com- (a) IN GENERAL.—Subpart C of part II of sub- assistance from another individual) at least 2 pensation Trust Fund and on the adequacy of chapter E of chapter 1 (relating to taxable year activities of daily living (as defined in section such Fund to meet future claims made under the for which deductions taken) is amended by in- 7702B(c)(2)(B)) due to a loss of functional ca- Vaccine Injury Compensation Program. serting after section 468B the following: pacity, or TITLE VI—SMALL BUSINESS TAX RELIEF ‘‘SEC. 468C. FARM AND RANCH RISK MANAGE- ‘‘(B) requires substantial supervision to pro- PROVISIONS MENT ACCOUNTS. tect such individual from threats to health and SEC. 601. DEDUCTION FOR 100 PERCENT OF ‘‘(a) DEDUCTION ALLOWED.—In the case of an safety due to severe cognitive impairment and is HEALTH INSURANCE COSTS OF individual engaged in an eligible farming busi- unable to perform, without reminding or cuing SELF-EMPLOYED INDIVIDUALS. ness or commercial fishing, there shall be al- assistance, at least 1 activity of at least 1 activ- (a) IN GENERAL.—Paragraph (1) of section lowed as a deduction for any taxable year the ity of daily living (as so defined) or to the extent 162(l) is amended to read as follows: amount paid in cash by the taxpayer during the provided in regulations prescribed by the Sec- ‘‘(1) ALLOWANCE OF DEDUCTION.—In the case taxable year to a Farm, Fishing, and Ranch retary (in consultation with the Secretary of of an individual who is an employee within the Risk Management Account (hereinafter referred Health and Human Services), is unable to en- meaning of section 401(c)(1), there shall be al- to as the ‘FFARRM Account’). gage in age appropriate activities. lowed as a deduction under this section an ‘‘(b) LIMITATION.—(1) The amount which a ‘‘(4) SPECIAL RULES.—Rules similar to the amount equal to 100 percent of the amount paid taxpayer may pay into the FFARRM Account rules of paragraphs (1), (2), (3), (4), and (5) of during the taxable year for insurance which for any taxable year shall not exceed 20 percent August 2, 1999 CONGRESSIONAL RECORD — SENATE S10033

of so much of the taxable income of the taxpayer ‘‘(A) IN GENERAL.—If, at the close of any tax- section 304(b)(1), is amended by striking ‘‘or’’ at (determined without regard to this section) able year, there is a nonqualified balance in any the end of paragraph (4), by redesignating para- which is attributable (determined in the manner FFARRM Account— graphs (4) and (5) as paragraphs (5) and (6), re- applicable under section 1301) to any eligible ‘‘(i) there shall be deemed distributed from spectively, and by inserting after paragraph (3) farming business or commercial fishing. such Account during such taxable year an the following: ‘‘(2) Distributions from a FFARRM Account amount equal to such balance, and ‘‘(4) a FFARRM Account (within the meaning may not be used to purchase, lease, or finance ‘‘(ii) the taxpayer’s tax imposed by this chap- of section 468C(d)), or’’. any new fishing vessel, add capacity to any ter for such taxable year shall be increased by (2) Section 4973, as amended by section fishery, or otherwise contribute to the overcapi- 10 percent of such deemed distribution. 304(b)(2), is amended by adding at the end the talization of any fishery. The Secretary of Com- The preceding sentence shall not apply if an following: merce shall implement regulations to enforce amount equal to such nonqualified balance is ‘‘(h) EXCESS CONTRIBUTIONS TO FFARRM AC- this paragraph. distributed from such Account to the taxpayer COUNTS.—For purposes of this section, in the ‘‘(c) ELIGIBLE FARMING BUSINESS.—(1) For before the due date (including extensions) for case of a FFARRM Account (within the mean- purposes of this section, the term ‘eligible farm- filing the return of tax imposed by this chapter ing of section 468C(d)), the term ‘excess con- ing business’ means any farming business (as for such year (or, if earlier, the date the tax- tributions’ means the amount by which the defined in section 263A(e)(4)) which is not a payer files such return for such year). amount contributed for the taxable year to the passive activity (within the meaning of section ‘‘(B) NONQUALIFIED BALANCE.—For purposes Account exceeds the amount which may be con- 469(c)) of the taxpayer. of subparagraph (A), the term ‘nonqualified bal- tributed to the Account under section 468C(b) ‘‘(2) COMMERCIAL FISHING.—For purposes of ance’ means any balance in the Account on the for such taxable year. For purposes of this sub- this section, the term ‘commercial fishing’ is de- last day of the taxable year which is attrib- section, any contribution which is distributed fined under section (3) of the Magnuson-Stevens utable to amounts deposited in such Account be- out of the FFARRM Account in a distribution to Fishery Conservation and Management Act (16 fore the 4th preceding taxable year. which section 468C(e)(2)(B) applies shall be U.S.C. 1802). ‘‘(C) ORDERING RULE.—For purposes of this treated as an amount not contributed.’’. ‘‘(d) FFARRM ACCOUNT.—For purposes of paragraph, distributions from a FFARRM Ac- (3) The section heading for section 4973 is this section— count (other than distributions of current in- amended to read as follows: ‘‘(1) IN GENERAL.—The term ‘FFARRM Ac- come) shall be treated as made from deposits in ‘‘SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN count’ means a trust created or organized in the the order in which such deposits were made, be- ACCOUNTS, ANNUITIES, ETC.’’. United States for the exclusive benefit of the ginning with the earliest deposits. (4) The table of sections for chapter 43 is taxpayer, but only if the written governing in- ‘‘(2) CESSATION IN ELIGIBLE BUSINESS.—At the amended by striking the item relating to section strument creating the trust meets the following close of the first disqualification period after a 4973 and inserting the following: requirements: period for which the taxpayer was engaged in ‘‘Sec. 4973. Excess contributions to certain ac- ‘‘(A) No contribution will be accepted for any an eligible farming business or commercial fish- counts, annuities, etc.’’. taxable year in excess of the amount allowed as ing, there shall be deemed distributed from the (c) TAX ON PROHIBITED TRANSACTIONS.— a deduction under subsection (a) for such year. FFARRM Account of the taxpayer an amount (1) Subsection (c) of section 4975 (relating to ‘‘(B) The trustee is a bank (as defined in sec- equal to the balance in such Account (if any) at tax on prohibited transactions) is amended by tion 408(n)) or another person who demonstrates the close of such disqualification period. For adding at the end the following: to the satisfaction of the Secretary that the purposes of the preceding sentence, the term ‘‘(6) SPECIAL RULE FOR FFARRM ACCOUNTS.—A manner in which such person will administer ‘disqualification period’ means any period of 2 person for whose benefit a FFARRM Account the trust will be consistent with the require- consecutive taxable years for which the tax- (within the meaning of section 468C(d)) is estab- ments of this section. payer is not engaged in an eligible farming busi- lished shall be exempt from the tax imposed by ‘‘(C) The assets of the trust consist entirely of ness or commercial fishing. this section with respect to any transaction con- cash or of obligations which have adequate stat- ‘‘(3) CERTAIN RULES TO APPLY.—Rules similar cerning such account (which would otherwise be ed interest (as defined in section 1274(c)(2)) and to the following rules shall apply for purposes of taxable under this section) if, with respect to which pay such interest not less often than an- this section: such transaction, the account ceases to be a nually. ‘‘(A) Section 220(f)(8) (relating to treatment on FFARRM Account by reason of the application ‘‘(D) All income of the trust is distributed cur- death). of section 468C(f)(3)(A) to such account.’’. rently to the grantor. ‘‘(B) Section 408(e)(2) (relating to loss of ex- (2) Paragraph (1) of section 4975(e) is amended ‘‘(E) The assets of the trust will not be com- emption of account where individual engages in by redesignating subparagraphs (E) and (F) as mingled with other property except in a common prohibited transaction). subparagraphs (F) and (G), respectively, and by trust fund or common investment fund. ‘‘(C) Section 408(e)(4) (relating to effect of inserting after subparagraph (D) the following: ‘‘(2) ACCOUNT TAXED AS GRANTOR TRUST.—The pledging account as security). ‘‘(E) a FFARRM Account described in section grantor of a FFARRM Account shall be treated ‘‘(D) Section 408(g) (relating to community 468C(d),’’. for purposes of this title as the owner of such property laws). (d) FAILURE TO PROVIDE REPORTS ON Account and shall be subject to tax thereon in ‘‘(E) Section 408(h) (relating to custodial ac- FFARRM ACCOUNTS.—Paragraph (2) of section accordance with subpart E of part I of sub- counts). 6693(a) (relating to failure to provide reports on chapter J of this chapter (relating to grantors ‘‘(4) TIME WHEN PAYMENTS DEEMED MADE.— certain tax-favored accounts or annuities), as and others treated as substantial owners). For purposes of this section, a taxpayer shall be amended by section 304(d), is amended by redes- ‘‘(e) INCLUSION OF AMOUNTS DISTRIBUTED.— deemed to have made a payment to a FFARRM ignating subparagraphs (C), (D), and (E) as ‘‘(1) IN GENERAL.—Except as provided in para- Account on the last day of a taxable year if subparagraphs (D), (E), and (F), respectively, graph (2), there shall be includible in the gross such payment is made on account of such tax- and by inserting after subparagraph (B) the fol- income of the taxpayer for any taxable year— able year and is made on or before the due date lowing: ‘‘(A) any amount distributed from a FFARRM (without regard to extensions) for filing the re- ‘‘(C) section 468C(g) (relating to FFARRM Ac- Account of the taxpayer during such taxable turn of tax for such taxable year. counts),’’. year, and ‘‘(5) INDIVIDUAL.—For purposes of this sec- (e) CLERICAL AMENDMENT.—The table of sec- ‘‘(B) any deemed distribution under— tion, the term ‘individual’ shall not include an tions for subpart C of part II of subchapter E of ‘‘(i) subsection (f)(1) (relating to deposits not estate or trust. chapter 1 is amended by inserting after the item distributed within 5 years), ‘‘(6) DEDUCTION NOT ALLOWED FOR SELF-EM- relating to section 468B the following: ‘‘(ii) subsection (f)(2) (relating to cessation in PLOYMENT TAX.—The deduction allowable by ‘‘Sec. 468C. Farm, Fishing and Ranch Risk eligible farming business), and reason of subsection (a) shall not be taken into Management Accounts.’’. ‘‘(iii) subparagraph (A) or (B) of subsection account in determining an individual’s net (f) EFFECTIVE DATE.—The amendments made (f)(3) (relating to prohibited transactions and earnings from self-employment (within the by this section shall apply to taxable years be- pledging account as security). meaning of section 1402(a)) for purposes of ginning after December 31, 2000. ‘‘(2) EXCEPTIONS.—Paragraph (1)(A) shall not chapter 2. SEC. 606. EXCLUSION OF INVESTMENT SECURI- apply to— ‘‘(g) REPORTS.—The trustee of a FFARRM Ac- TIES INCOME FROM PASSIVE IN- ‘‘(A) any distribution to the extent attrib- count shall make such reports regarding such COME TEST FOR BANK S CORPORA- utable to income of the Account, and Account to the Secretary and to the person for TIONS. ‘‘(B) the distribution of any contribution paid whose benefit the Account is maintained with (a) IN GENERAL.—Section 1362(d)(3)(C) (defin- during a taxable year to a FFARRM Account to respect to contributions, distributions, and such ing passive investment income) is amended by the extent that such contribution exceeds the other matters as the Secretary may require adding at the end the following: limitation applicable under subsection (b) if re- under regulations. The reports required by this ‘‘(v) EXCEPTION FOR BANKS; ETC.—In the case quirements similar to the requirements of section subsection shall be filed at such time and in of a bank (as defined in section 581), a bank 408(d)(4) are met. such manner and furnished to such persons at holding company (as defined in section For purposes of subparagraph (A), distributions such time and in such manner as may be re- 246A(c)(3)(B)(ii)), or a qualified subchapter S shall be treated as first attributable to income quired by such regulations.’’. subsidiary bank, the term ‘passive investment and then to other amounts. (b) TAX ON EXCESS CONTRIBUTIONS.— income’ shall not include— ‘‘(f) SPECIAL RULES.— (1) Subsection (a) of section 4973 (relating to ‘‘(I) interest income earned by such bank, ‘‘(1) TAX ON DEPOSITS IN ACCOUNT WHICH ARE tax on excess contributions to certain tax-fa- bank holding company, or qualified subchapter NOT DISTRIBUTED WITHIN 5 YEARS.— vored accounts and annuities), as amended by S subsidiary bank, or S10034 CONGRESSIONAL RECORD — SENATE August 2, 1999 ‘‘(II) dividends on assets required to be held lated credits) is amended by adding at the end ‘‘(I) such dollar amount, multiplied by by such bank, bank holding company, or quali- the following: ‘‘(II) the cost-of-living adjustment under sec- fied subchapter S subsidiary bank to conduct a ‘‘SEC. 45E. EMPLOYEE HEALTH INSURANCE EX- tion 1(f)(3) for the calendar year in which the banking business, including stock in the Federal PENSES. taxable year begins, determined by substituting Reserve Bank, the Federal Home Loan Bank, or ‘‘(a) GENERAL RULE.—For purposes of section ‘calendar year 2000’ for ‘calendar year 1992’ in the Federal Agricultural Mortgage Bank or par- 38, in the case of a small employer, the employee subparagraph (B) thereof. ticipation certificates issued by a Federal Inter- health insurance expenses credit determined ‘‘(ii) ROUNDING.—If any increase determined mediate Credit Bank.’’. under this section is an amount equal to the ap- under clause (i) is not a multiple of $100, such (b) EFFECTIVE DATE.—The amendment made plicable percentage of the amount paid by the amount shall be rounded to the nearest multiple by this section shall apply to taxable years be- taxpayer during the taxable year for qualified of $100. ginning after December 31, 1999. employee health insurance expenses. ‘‘(e) CERTAIN RULES MADE APPLICABLE.—For SEC. 607. TREATMENT OF QUALIFYING DIRECTOR ‘‘(b) APPLICABLE PERCENTAGE.—For purposes purposes of this section, rules similar to the SHARES. of subsection (a), the applicable percentage is rules of section 52 shall apply. (a) IN GENERAL.—Section 1361 is amended by equal to— ‘‘(f) DENIAL OF DOUBLE BENEFIT.—No deduc- adding at the end the following: ‘‘(1) 60 percent in the case of self-only cov- tion or credit under any other provision of this ‘‘(f) TREATMENT OF QUALIFYING DIRECTOR erage, and chapter shall be allowed with respect to quali- SHARES.— ‘‘(2) 70 percent in the case of family coverage fied employee health insurance expenses taken ‘‘(1) IN GENERAL.—For purposes of this (as defined in section 220(c)(5)). into account under subsection (a).’’. subchapter— ‘‘(c) PER EMPLOYEE DOLLAR LIMITATION.— (b) CREDIT TO BE PART OF GENERAL BUSINESS ‘‘(A) qualifying director shares shall not be The amount of qualified employee health insur- CREDIT.—Section 38(b) (relating to current year treated as a second class of stock, and ance expenses taken into account under sub- business credit) is amended by striking ‘‘plus’’ ‘‘(B) no person shall be treated as a share- section (a) with respect to any qualified em- at the end of paragraph (13), by striking the pe- holder of the corporation by reason of holding ployee for any taxable year shall not exceed— riod at the end of paragraph (14) and inserting qualifying director shares. ‘‘(1) $1,000 in the case of self-only coverage, ‘‘, plus’’, and by adding at the end the fol- ‘‘(2) QUALIFYING DIRECTOR SHARES DEFINED.— and lowing: For purposes of this subsection, the term ‘quali- ‘‘(2) $1,715 in the case of family coverage (as ‘‘(15) the employee health insurance expenses fying director shares’ means any shares of stock so defined). credit determined under section 45E.’’. in a bank (as defined in section 581) or in a ‘‘(d) DEFINITIONS.—For purposes of this (c) NO CARRYBACKS.—Subsection (d) of section bank holding company registered as such with section— 39 (relating to carryback and carryforward of the Federal Reserve System— ‘‘(1) SMALL EMPLOYER.— unused credits) is amended by adding at the end ‘‘(i) which are held by an individual solely by ‘‘(A) IN GENERAL.—The term ‘small employer’ the following: reason of status as a director of such bank or means, with respect to any calendar year, any ‘‘(10) NO CARRYBACK OF SECTION 45E CREDIT company or its controlled subsidiary; and employer if such employer employed an average BEFORE EFFECTIVE DATE.—No portion of the un- ‘‘(ii) which are subject to an agreement pursu- of 9 or fewer employees on business days during used business credit for any taxable year which ant to which the holder is required to dispose of either of the 2 preceding calendar years. For is attributable to the employee health insurance the shares of stock upon termination of the purposes of the preceding sentence, a preceding expenses credit determined under section 45E holder’s status as a director at the same price as calendar year may be taken into account only if may be carried back to a taxable year ending be- the individual acquired such shares of stock. the employer was in existence throughout such fore January 1, 2001.’’. ‘‘(3) DISTRIBUTIONS.—A distribution (not in year. (d) CLERICAL AMENDMENT.—The table of sec- part or full payment in exchange for stock) ‘‘(B) EMPLOYERS NOT IN EXISTENCE IN PRE- tions for subpart D of part IV of subchapter A made by the corporation with respect to quali- CEDING YEAR.—In the case of an employer which of chapter 1 is amended by adding at the end fying director shares shall be includible as ordi- was not in existence throughout the 1st pre- the following: nary income of the holder and deductible to the ceding calendar year, the determination under corporation as an expense in computing taxable subparagraph (A) shall be based on the average ‘‘Sec. 45E. Employee health insurance ex- income under section 1363(b) in the year such number of employees that it is reasonably ex- penses.’’. distribution is received.’’. pected such employer will employ on business (e) EFFECTIVE DATE.—The amendments made (b) CONFORMING AMENDMENTS.— days in the current calendar year. by this section shall apply to amounts paid or (1) Section 1361(b)(1) is amended by inserting ‘‘(2) QUALIFIED EMPLOYEE HEALTH INSURANCE incurred in taxable years beginning after De- ‘‘, except as provided in subsection (f),’’ before EXPENSES.— cember 31, 2000. ‘‘which does not’’. ‘‘(A) IN GENERAL.—The term ‘qualified em- TITLE VII—ESTATE AND GIFT TAX RELIEF (2) Section 1366(a) is amended by adding at ployee health insurance expenses’ means any PROVISIONS the end the following: amount paid by an employer for health insur- Subtitle A—Reductions of Estate, Gift, and ‘‘(3) ALLOCATION WITH RESPECT TO QUALI- ance coverage to the extent such amount is at- Generation-Skipping Transfer Taxes FYING DIRECTOR SHARES.—The holders of quali- tributable to coverage provided to any employee fying director shares (as defined in section while such employee is a qualified employee. SEC. 701. REDUCTIONS OF ESTATE, GIFT, AND GENERATION-SKIPPING TRANSFER 1361(f)) shall not, with respect to such shares of ‘‘(B) EXCEPTION FOR AMOUNTS PAID UNDER TAXES. stock, be allocated any of the items described in SALARY REDUCTION ARRANGEMENTS.—No amount (a) MAXIMUM RATE OF TAX REDUCED TO 53 paragraph (1).’’. paid or incurred for health insurance coverage PERCENT.—The table contained in section (3) Section 1373(a) is amended by striking pursuant to a salary reduction arrangement 2001(c)(1) is amended by striking the 2 highest ‘‘and’’ at the end of paragraph (1), by striking shall be taken into account under subparagraph brackets and inserting the following: the period at the end of paragraph (2) and in- (A). serting ‘‘, and’’, and adding at the end the fol- ‘‘(C) HEALTH INSURANCE COVERAGE.—The term ‘‘Over $2,500,000 ...... $1,025,800, plus 53% of the lowing: ‘health insurance coverage’ has the meaning excess over $2,500,000.’’. (b) REPEAL OF PHASEOUT OF GRADUATED ‘‘(3) no amount of an expense deductible given such term by section 9832(b)(1). RATES.—Subsection (c) of section 2001 is amend- under this subchapter by reason of section ‘‘(3) QUALIFIED EMPLOYEE.— ed by striking paragraph (2). 1361(f)(3) shall be apportioned or allocated to ‘‘(A) IN GENERAL.—The term ‘qualified em- such income.’’. ployee’ means, with respect to any period, an (c) EFFECTIVE DATES.— (1) SUBSECTION (a).—The amendment made by (c) EFFECTIVE DATE.—The amendments made employee of an employer if the total amount of subsection (a) shall apply to estates of decedents by this section shall apply to taxable years be- wages paid or incurred by such employer to dying, and gifts made, after December 31, 2000. ginning after December 31, 1999. such employee at an annual rate during the tax- (2) SUBSECTION (b).—The amendment made by SEC. 608. INCREASE IN ESTATE TAX DEDUCTION able year exceeds $5,000 but does not exceed subsection (b) shall apply to estates of decedents FOR FAMILY-OWNED BUSINESS IN- $16,000. dying, and gifts made, after December 31, 2003. TEREST. ‘‘(B) TREATMENT OF CERTAIN EMPLOYEES.— (a) IN GENERAL.—Section 2057(a)(2) (relating For purposes of subparagraph (A), the term SEC. 702. UNIFIED CREDIT AGAINST ESTATE AND to maximum deduction) is amended by striking ‘employee’— GIFT TAXES REPLACED WITH UNI- ‘‘$675,000’’ and inserting ‘‘$1,975,000’’. ‘‘(i) shall not include an employee within the FIED EXEMPTION AMOUNT. (b) CONFORMING AMENDMENTS.—Section meaning of section 401(c)(1), but (a) IN GENERAL.— 2057(a)(3)(B) (relating to coordination with uni- ‘‘(ii) shall include a leased employee within (1) ESTATE TAX.—Part IV of subchapter A of fied credit) is amended by striking ‘‘$675,000’’ the meaning of section 414(n). chapter 11 is amended by inserting after section each place it appears in the text and heading ‘‘(C) WAGES.—The term ‘wages’ has the mean- 2051 the following new section: and inserting ‘‘$1,975,000’’. ing given such term by section 3121(a) (deter- ‘‘SEC. 2052. EXEMPTION. (c) EFFECTIVE DATE.—The amendments made mined without regard to any dollar limitation ‘‘(a) IN GENERAL.—For purposes of the tax im- by this section shall apply to estates of dece- contained in such section). posed by section 2001, the value of the taxable dents dying after December 31, 2000. ‘‘(D) INFLATION ADJUSTMENT.— estate shall be determined by deducting from the SEC. 609. CREDIT FOR EMPLOYEE HEALTH INSUR- ‘‘(i) IN GENERAL.—In the case of any taxable value of the gross estate an amount equal to the ANCE EXPENSES. year beginning in a calendar year after 2001, the excess (if any) of— (a) IN GENERAL.—Subpart D of part IV of sub- $16,000 amount contained in subparagraph (A) ‘‘(1) the exemption amount for the calendar chapter A of chapter 1 (relating to business-re- shall be increased by an amount equal to— year in which the decedent died, over August 2, 1999 CONGRESSIONAL RECORD — SENATE S10035 ‘‘(2) the sum of— case may be) allowable to such surviving spouse (16) Subparagraph (A) of section 6601(j)(2) is ‘‘(A) the aggregate amount allowed as an ex- for purposes of determining the amount of the amended to read as follows: emption under section 2521 with respect to gifts exemption allowable under section 2521 with re- ‘‘(A)(i) the amount of the tax which would be made by the decedent after December 31, 2003, spect to taxable gifts made by the surviving imposed by chapter 11 on an amount of taxable and spouse during the year in which the spouse be- estate equal to the sum of $1,000,000 and the ex- ‘‘(B) the aggregate amount of gifts made by comes a citizen or any subsequent year,’’. emption amount allowable under section 2052, the decedent for which credit was allowed by (8) Section 2102 is amended by striking sub- reduced by section 2505 (as in effect on the day before the section (c). ‘‘(ii) the amount of tax which would be so im- date of the enactment of the Taxpayer Refund (9) Subsection (a) of section 2106 is amended posed if the taxable estate equaled such exemp- Act of 1999). by adding at the end the following new para- tion amount, or’’. Gifts which are includible in the gross estate of graph: (17) The table of sections for part II of sub- ‘‘(4) EXEMPTION.— the decedent shall not be taken into account in chapter A of chapter 11 is amended by striking ‘‘(A) IN GENERAL.—An exemption of $60,000. the item relating to section 2010. determining the amounts under paragraph (2). ‘‘(B) RESIDENTS OF POSSESSIONS OF THE (18) The table of sections for subchapter A of ‘‘(b) EXEMPTION AMOUNT.—For purposes of UNITED STATES.—In the case of a decedent who chapter 12 is amended by striking the item relat- subsection (a), the term ‘exemption amount’ is considered to be a nonresident not a citizen of ing to section 2505. means the amount determined in accordance the United States under section 2209, the exemp- with the following table: (d) EFFECTIVE DATE.—The amendments made tion under this paragraph shall be the greater by this section— ‘‘In the case of The exemption of— (1) insofar as they relate to the tax imposed by calendar year: ‘‘(i) $60,000, or chapter 11 of the Internal Revenue Code of 1986, amount is: ‘‘(ii) that proportion of $175,000 which the 2004 ...... $850,000 value of that part of the decedent’s gross estate shall apply to estates of decedents dying after 2005 ...... $950,000 which at the time of his death is situated in the December 31, 2003, and 2006 ...... $1,000,000 United States bears to the value of his entire (2) insofar as they relate to the tax imposed by 2007 or thereafter ...... $1,500,000.’’. gross estate wherever situated. chapter 12 of such Code, shall apply to gifts (2) GIFT TAX.—Subchapter C of chapter 12 (re- ‘‘(C) SPECIAL RULES.— made after December 31, 2003. lating to deductions) is amended by inserting be- ‘‘(i) COORDINATION WITH TREATIES.—To the Subtitle B—Conservation Easements fore section 2522 the following new section: extent required under any treaty obligation of SEC. 711. EXPANSION OF ESTATE TAX RULE FOR ‘‘SEC. 2521. EXEMPTION. the United States, the exemption allowed under CONSERVATION EASEMENTS. ‘‘(a) IN GENERAL.—In computing taxable gifts this paragraph shall be equal to the amount (a) WHERE LAND IS LOCATED.— for any calendar year, there shall be allowed as which bears the same ratio to the exemption (1) IN GENERAL.—Clause (i) of section a deduction in the case of a citizen or resident amount under section 2052 (for the calendar 2031(c)(8)(A) (defining land subject to a con- of the United States an amount equal to the ex- year in which the decedent died) as the value of servation easement) is amended— cess of— the part of the decedent’s gross estate which at (A) by striking ‘‘25 miles’’ both places it ap- ‘‘(1) the exemption amount determined under the time of his death is situated in the United pears and inserting ‘‘50 miles’’, and section 2052 for such calendar year, over States bears to the value of his entire gross es- (B) striking ‘‘10 miles’’ and inserting ‘‘25 ‘‘(2) the sum of— tate wherever situated. For purposes of the pre- miles’’. ‘‘(A) the aggregate amount allowed as an ex- ceding sentence, property shall not be treated as (2) EFFECTIVE DATE.—The amendments made emption under this section for all preceding cal- situated in the United States if such property is by this subsection shall apply to estates of dece- endar years after 2003, and exempt from the tax imposed by this subchapter dents dying after December 31, 1999. ‘‘(B) the aggregate amount of gifts for which under any treaty obligation of the United (b) CLARIFICATION OF DATE FOR DETERMINING credit was allowed by section 2505 (as in effect States. VALUE OF LAND AND EASEMENT.— on the day before the date of the enactment of ‘‘(ii) COORDINATION WITH GIFT TAX EXEMPTION (1) IN GENERAL.—Section 2031(c)(2) (defining the Taxpayer Refund Act of 1999).’’. AND UNIFIED CREDIT.—If an exemption has been applicable percentage) is amended by adding at (b) REPEAL OF UNIFIED CREDITS.— allowed under section 2521 (or a credit has been the end the following new sentence: ‘‘The values (1) Section 2010 (relating to unified credit allowed under section 2505 as in effect on the taken into account under the preceding sentence against estate tax) is hereby repealed. day before the date of the enactment of the Tax- shall be such values as of the date of the con- (2) Section 2505 (relating to unified credit payer Refund Act of 1999) with respect to any tribution referred to in paragraph (8)(B).’’. against gift tax) is hereby repealed. gift made by the decedent, each dollar amount (2) EFFECTIVE DATE.—The amendment made (c) CONFORMING AMENDMENTS.— contained in subparagraph (A) or (B) or the ex- by this subsection shall apply to estates of dece- (1)(A) Subparagraph (B) of section 2001(b)(1) emption amount applicable under clause (i) of dents dying after December 31, 1997. this subparagraph (whichever applies) shall be is amended by inserting before the comma ‘‘re- Subtitle C—Annual Gift Exclusion duced by the amount described in section reduced by the exemption so allowed under 2521 SEC. 721. INCREASE IN ANNUAL GIFT EXCLUSION. 2052(a)(2)’’. (or, in the case of such a credit, by the amount (a) IN GENERAL.—Section 2503(b) (relating to (B) Subsection (b) of section 2001 is amended of the gift for which the credit was so al- exclusions from gifts) is amended— by adding at the end the following new sen- lowed).’’. (1) by striking the following: tence: ‘‘For purposes of paragraph (2), the (10) Subsection (c) of section 2107 is ‘‘(b) EXCLUSIONS FROM GIFTS.— amount of the tax payable under chapter 12 amended— (A) by striking paragraph (1) and by redesig- ‘‘(1) IN GENERAL.—In the case of gifts’’, shall be determined without regard to the credit nating paragraphs (2) and (3) as paragraphs (1) (2) by inserting the following: provided by section 2505 (as in effect on the day and (2), respectively, and ‘‘(b) EXCLUSIONS FROM GIFTS.—In the case of before the date of the enactment of the Tax- (B) by striking the second sentence of para- gifts’’, payer Refund Act of 1999).’’. graph (2) (as so redesignated). (3) by striking paragraph (2), and (2) Subsection (f) of section 2011 is amended (11) Section 2206 is amended by striking ‘‘the (4) by striking ‘‘$10,000’’ and inserting by striking ‘‘, reduced by the amount of the uni- taxable estate’’ in the first sentence and insert- ‘‘$20,000’’. fied credit provided by section 2010’’. ing ‘‘the sum of the taxable estate and the (b) EFFECTIVE DATE.—The amendments made (3) Subsection (a) of section 2012 is amended amount of the exemption allowed under section by this section shall apply to gifts made after by striking ‘‘and the unified credit provided by 2052 or 2106(a)(4) in computing the taxable es- December 31, 2004. section 2010’’. tate’’. Subtitle D—Simplification of Generation- (4) Subsection (b) of section 2013 is amended (12) Section 2207 is amended by striking ‘‘the Skipping Transfer Tax by inserting before the period at the end of the taxable estate’’ in the first sentence and insert- first sentence ‘‘and increased by the exemption ing ‘‘the sum of the taxable estate and the SEC. 731. RETROACTIVE ALLOCATION OF GST EX- allowed under section 2052 or 2106(a)(4) (or the amount of the exemption allowed under section EMPTION. corresponding provisions of prior law) in deter- 2052 or 2106(a)(4) in computing the taxable es- (a) IN GENERAL.—Section 2632 (relating to spe- mining the taxable estate of the transferor for tate’’. cial rules for allocation of GST exemption) is purposes of the estate tax’’. (13) Subparagraph (B) of section 2207B(a)(1) amended by redesignating subsection (c) as sub- (5) Subparagraph (A) of section 2013(c)(1) is is amended to read as follows: section (d) and by inserting after subsection (b) amended by striking ‘‘2010,’’. ‘‘(B) the sum of the taxable estate and the the following new subsection: (6) Paragraph (2) of section 2014(b) is amend- amount of the exemption allowed under section ‘‘(c) RETROACTIVE ALLOCATIONS.— ed by striking ‘‘2010,’’. 2052 or 2106(a)(4) in computing the taxable es- ‘‘(1) IN GENERAL.—If— (7) Clause (ii) of section 2056A(b)(12)(C) is tate.’’. ‘‘(A) a non-skip person has an interest or a amended to read as follows: (14) Subsection (a) of section 2503 is amended future interest in a trust to which any transfer ‘‘(ii) to treat any reduction in the tax imposed by striking ‘‘section 2522’’ and inserting ‘‘sec- has been made, by paragraph (1)(A) by reason of the credit al- tion 2521’’. ‘‘(B) such person— lowable under section 2010 (as in effect on the (15) Paragraph (1) of section 6018(a) is amend- ‘‘(i) is a lineal descendant of a grandparent of day before the date of the enactment of the Tax- ed by striking ‘‘the applicable exclusion the transferor or of a grandparent of the trans- payer Refund Act of 1999) or the exemption al- amount’’ and inserting ‘‘the exemption amount feror’s spouse, and lowable under section 2052 with respect to the under section 2052 for the calendar year which ‘‘(ii) is assigned to a generation below the decedent as such a credit or exemption (as the includes the date of death’’. generation assignment of the transferor, and S10036 CONGRESSIONAL RECORD — SENATE August 2, 1999 ‘‘(C) such person predeceases the transferor, such transfer or is deemed to be made under sec- elections or the application of a rule of substan- then the transferor may make an allocation of tion 2632(b)(1)— tial compliance before the enactment of this any of such transferor’s unused GST exemption ‘‘(A) the value of such property for purposes amendment. to any previous transfer or transfers to the trust of subsection (a) shall be its value as finally de- TITLE VIII—TAX EXEMPT ORGANIZATIONS on a chronological basis. termined for purposes of chapter 12 (within the PROVISIONS ‘‘(2) SPECIAL RULES.—If the allocation under meaning of section 2001(f)(2)), or, in the case of SEC. 801. EXEMPTION FROM INCOME TAX FOR paragraph (1) by the transferor is made on a gift an allocation deemed to have been made at the STATE-CREATED ORGANIZATIONS tax return filed on or before the date prescribed close of an estate tax inclusion period, its value PROVIDING PROPERTY AND CAS- by section 6075(b) for gifts made within the cal- at the time of the close of the estate tax inclu- UALTY INSURANCE FOR PROPERTY endar year within which the non-skip person’s sion period, and FOR WHICH SUCH COVERAGE IS death occurred— ‘‘(B) such allocation shall be effective on and OTHERWISE UNAVAILABLE. ‘‘(A) the value of such transfer or transfers after the date of such transfer, or, in the case of (a) IN GENERAL.—Subsection (c) of section 501 for purposes of section 2642(a) shall be deter- an allocation deemed to have been made at the (relating to exemption from tax on corporations, mined as if such allocation had been made on a close of an estate tax inclusion period, on and certain trusts, etc.) is amended by adding at the timely filed gift tax return for each calendar after the close of such estate tax inclusion pe- end the following new paragraph: year within which each transfer was made, riod.’’. ‘‘(28)(A) Any association created before Janu- ‘‘(B) such allocation shall be effective imme- (b) TRANSFERS AT DEATH.—Subparagraph (A) ary 1, 1999, by State law and organized and op- diately before such death, and of section 2642(b)(2) is amended to read as fol- erated exclusively to provide property and cas- ‘‘(C) the amount of the transferor’s unused lows: ualty insurance coverage for property located GST exemption available to be allocated shall be ‘‘(A) TRANSFERS AT DEATH.—If property is within the State for which the State has deter- determined immediately before such death. transferred as a result of the death of the trans- mined that coverage in the authorized insurance ‘‘(3) FUTURE INTEREST.—For purposes of this feror, the value of such property for purposes of market is limited or unavailable at reasonable subsection, a person has a future interest in a subsection (a) shall be its value as finally deter- rates, if— trust if the trust may permit income or corpus to mined for purposes of chapter 11; except that, if ‘‘(i) no part of the net earnings of which in- be paid to such person on a date or dates in the the requirements prescribed by the Secretary re- ures to the benefit of any private shareholder or future.’’. specting allocation of post-death changes in individual, (b) EFFECTIVE DATE.—The amendments made value are not met, the value of such property ‘‘(ii) except as provided in clause (v), no part by this section shall apply to deaths of non-skip shall be determined as of the time of the dis- of the assets of which may be used for, or di- persons occurring after the date of the enact- tribution concerned.’’. verted to, any purpose other than— ment of this Act. (c) EFFECTIVE DATE.—The amendments made ‘‘(I) to satisfy, in whole or in part, the liabil- ity of the association for, or with respect to, SEC. 732. SEVERING OF TRUSTS. by this section shall take effect as if included in claims made on policies written by the associa- (a) IN GENERAL.—Subsection (a) of section the amendments made by section 1431 of the Tax tion, 2642 (relating to inclusion ratio) is amended by Reform Act of 1986. ‘‘(II) to invest in investments authorized by adding at the end the following new paragraph: SEC. 734. RELIEF PROVISIONS. applicable law, ‘‘(3) SEVERING OF TRUSTS.— (a) IN GENERAL.—Section 2642 is amended by ‘‘(III) to pay reasonable and necessary admin- ‘‘(A) IN GENERAL.—If a trust is severed in a adding at the end the following new subsection: istration expenses in connection with the estab- qualified severance, the trusts resulting from ‘‘(g) RELIEF PROVISIONS.— lishment and operation of the association and ‘‘(1) RELIEF FOR LATE ELECTIONS.— such severance shall be treated as separate the processing of claims against the association, ‘‘(A) IN GENERAL.—The Secretary shall by reg- trusts thereafter for purposes of this chapter. or ‘‘(B) QUALIFIED SEVERANCE.—For purposes of ulation prescribe such circumstances and proce- ‘‘(IV) to make remittances pursuant to State subparagraph (A)— dures under which extensions of time will be law to be used by the State to provide for the ‘‘(i) IN GENERAL.—The term ‘qualified sever- granted to make— payment of claims on policies written by the as- ance’ means the division of a single trust and ‘‘(i) an allocation of GST exemption described sociation, purchase reinsurance covering losses the creation (by any means available under the in paragraph (1) or (2) of subsection (b), and under such policies, or to support governmental ‘‘(ii) an election under section 2632(b)(3). governing instrument or under local law) of 2 or programs to prepare for or mitigate the effects of more trusts if— Such regulations shall include procedures for natural catastrophic events, ‘‘(I) the single trust was divided on a frac- requesting comparable relief with respect to ‘‘(iii) the State law governing the association tional basis, and transfers made before the date of enactment of permits the association to levy assessments on ‘‘(II) the terms of the new trusts, in the aggre- this paragraph. insurance companies authorized to sell property gate, provide for the same succession of interests ‘‘(B) BASIS FOR DETERMINATIONS.—In deter- and casualty insurance in the State, or on prop- of beneficiaries as are provided in the original mining whether to grant relief under this para- erty and casualty insurance policyholders with trust. graph, the Secretary shall take into account all insurable interests in property located in the ‘‘(ii) TRUSTS WITH INCLUSION RATIO GREATER relevant circumstances, including evidence of State to fund deficits of the association, includ- THAN ZERO.—If a trust has an inclusion ratio of intent contained in the trust instrument or in- ing the creation of reserves, greater than zero and less than 1, a severance is strument of transfer and such other factors as ‘‘(iv) the plan of operation of the association a qualified severance only if the single trust is the Secretary deems relevant. For purposes of is subject to approval by the chief executive offi- divided into 2 trusts, one of which receives a determining whether to grant relief under this cer or other executive branch official of the fractional share of the total value of all trust paragraph, the time for making the allocation State, by the State legislature, or both, and assets equal to the applicable fraction of the sin- (or election) shall be treated as if not expressly ‘‘(v) the assets of the association revert upon gle trust immediately before the severance. In prescribed by statute. dissolution to the State, the State’s designee, or such case, the trust receiving such fractional ‘‘(2) SUBSTANTIAL COMPLIANCE.—An alloca- an entity designated by the State law governing share shall have an inclusion ratio of zero and tion of GST exemption under section 2632 that the association, or State law does not permit the the other trust shall have an inclusion ratio of demonstrates an intent to have the lowest pos- dissolution of the association. 1. sible inclusion ratio with respect to a transfer or ‘‘(B)(i) An entity described in clause (ii) shall ‘‘(iii) REGULATIONS.—The term ‘qualified sev- a trust shall be deemed to be an allocation of so be disregarded as a separate entity and treated erance’ includes any other severance permitted much of the transferor’s unused GST exemption as part of the association described in subpara- under regulations prescribed by the Secretary. as produces the lowest possible inclusion ratio. graph (A) from which it receives remittances de- ‘‘(C) TIMING AND MANNER OF SEVERANCES.—A In determining whether there has been substan- scribed in clause (ii) if an election is made with- severance pursuant to this paragraph may be tial compliance, all relevant circumstances shall in 30 days after the date that such association made at any time. The Secretary shall prescribe be taken into account, including evidence of in- is determined to be exempt from tax. by forms or regulations the manner in which the tent contained in the trust instrument or instru- ‘‘(ii) An entity is described in this clause if it qualified severance shall be reported to the Sec- ment of transfer and such other factors as the is an entity or fund created before January 1, retary.’’. Secretary deems relevant.’’. 1999, pursuant to State law and organized and (b) EFFECTIVE DATE.—The amendment made (b) EFFECTIVE DATES.— operated exclusively to receive, hold, and invest by this section shall apply to severances after (1) RELIEF FOR LATE ELECTIONS.—Section remittances from an association described in the date of the enactment of this Act. 2642(g)(1) (as added by subsection (a)) shall subparagraph (A) and exempt from tax under SEC. 733. MODIFICATION OF CERTAIN VALUATION apply to requests pending on, or filed after, the subsection (a) and to make disbursements to pay RULES. date of the enactment of this Act. claims on insurance contracts issued by such as- (a) GIFTS FOR WHICH GIFT TAX RETURN FILED (2) SUBSTANTIAL COMPLIANCE.—Section sociation, and to make disbursements to support OR DEEMED ALLOCATION MADE.—Paragraph (1) 2642(g)(2) (as so added) shall take effect on the governmental programs to prepare for or miti- of section 2642(b) (relating to valuation rules, date of the enactment of this Act and shall gate the effects of natural catastrophic events.’’. etc.) is amended to read as follows: apply to allocations made prior to such date for (b) UNRELATED BUSINESS TAXABLE INCOME.— ‘‘(1) GIFTS FOR WHICH GIFT TAX RETURN FILED purposes of determining the tax consequences of Subsection (a) of section 512 (relating to unre- OR DEEMED ALLOCATION MADE.—If the alloca- generation-skipping transfers with respect to lated business taxable income) is amended by tion of the GST exemption to any transfers of which the period of time for filing claims for re- adding at the end the following new paragraph: property is made on a gift tax return filed on or fund has not expired. No implication is intended ‘‘(6) SPECIAL RULE APPLICABLE TO ORGANIZA- before the date prescribed by section 6075(b) for with respect to the availability of relief for late TIONS DESCRIBED IN SECTION 501(C)(28).—In the August 2, 1999 CONGRESSIONAL RECORD — SENATE S10037 case of an organization described in section are’’ and inserting ‘‘limit of section 501(h)(1) not below zero) by the sum of the amounts of 501(c)(28), the term ‘unrelated business taxable is’’. the qualified charitable distributions during income’ means taxable income for a taxable year (6) Paragraphs (4)(A) and (4)(B) of section such year which (but for this paragraph) would computed without the application of section 4911(f) are each amended by striking ‘‘limits of have been includible in the gross income of the 501(c)(28) if, at the end of the immediately pre- section 501(h)(1)’’ and inserting ‘‘limit of section taxpayer for such year.’’. ceding taxable year, the organization’s net eq- 501(h)(1)’’. (b) EFFECTIVE DATE.—The amendment made uity exceeded 15 percent of the total coverage in (7) Paragraph (8) of section 6033(b) (relating by subsection (a) shall apply to taxable years force under insurance contracts issued by the to certain organizations described in section beginning after December 31, 2000. organization and outstanding at the end of such 501(c)(3)) is amended by inserting ‘‘and’’ at the SEC. 805. MILEAGE REIMBURSEMENTS TO CHARI- preceding year.’’. end of subparagraph (A) and by striking sub- TABLE VOLUNTEERS EXCLUDED (c) TRANSITIONAL RULE.—No income or gain paragraphs (C) and (D). FROM GROSS INCOME. shall be recognized by an association as a result (c) EFFECTIVE DATE.—The amendments made (a) IN GENERAL.—Part III of subchapter B of of a change in status to that of an association by this section shall apply to taxable years be- chapter 1 is amended by inserting after section described by section 501(c)(28) of the Internal ginning after December 31, 1999. 138 the following new section: Revenue Code of 1986, as amended by subsection SEC. 804. TAX-FREE DISTRIBUTIONS FROM INDI- ‘‘SEC. 138A. MILEAGE REIMBURSEMENTS TO (a). VIDUAL RETIREMENT ACCOUNTS CHARITABLE VOLUNTEERS. (d) EFFECTIVE DATE.—The amendment made FOR CHARITABLE PURPOSES. ‘‘(a) IN GENERAL.—Gross income of an indi- by subsection (a) shall apply to taxable years (a) IN GENERAL.—Subsection (d) of section 408 vidual does not include amounts received, from beginning after December 31, 1999. (relating to individual retirement accounts) is an organization described in section 170(c), as SEC. 802. MODIFICATIONS TO SECTION 512(b)(13). amended by adding at the end the following reimbursement of operating expenses with re- spect to use of a passenger automobile for the (a) IN GENERAL.—Paragraph (13) of section new paragraph: benefit of such organization for which a deduc- 512(b) is amended by redesignating subpara- ‘‘(8) DISTRIBUTIONS FOR CHARITABLE PUR- tion would otherwise be allowable under section graph (E) as subparagraph (F) and by inserting POSES.— 170. The preceding sentence shall apply only to after subparagraph (D) the following new para- ‘‘(A) IN GENERAL.—In the case of a qualified the extent that such reimbursement would be de- graph: charitable distribution from an individual retire- ductible under section 274(d) (determined by ap- ‘‘(E) PARAGRAPH TO APPLY ONLY TO EXCESS ment account to an organization described in plying the standard business mileage rate estab- PAYMENTS.— section 170(c), no amount shall be includible in lished pursuant to section 274(d)) if the organi- ‘‘(i) IN GENERAL.—Subparagraph (A) shall the gross income of the distributee. apply only to the portion of a specified payment ‘‘(B) SPECIAL RULES RELATING TO CHARITABLE zation were not so described and such indi- received by the controlling organization which REMAINDER TRUSTS, POOLED INCOME FUNDS, AND vidual were an employee of such organization. ‘‘(b) NO DOUBLE BENEFIT.—Subsection (a) exceeds the amount which would have been paid CHARITABLE GIFT ANNUITIES.— shall not apply with respect to any expenses if if such payment met the requirements prescribed ‘‘(i) IN GENERAL.—In the case of a qualified the individual claims a deduction or credit for under section 482. charitable distribution from an individual retire- such expenses under any other provision of this ‘‘(ii) ADDITION TO TAX FOR VALUATION ment account— title. MISSTATEMENTS.—The tax imposed by this chap- ‘‘(I) to a charitable remainder annuity trust ‘‘(c) EXEMPTION FROM REPORTING REQUIRE- ter on the controlling organization shall be in- or a charitable remainder unitrust (as such MENTS.—Section 6041 shall not apply with re- creased by an amount equal to 20 percent of terms are defined in section 664(d)), ‘‘(II) to a pooled income fund (as defined in spect to reimbursements excluded from income such excess.’’. under subsection (a).’’. (b) EFFECTIVE DATE.— section 642(c)(5)), or (b) CLERICAL AMENDMENT.—The table of sec- ‘‘(III) for the issuance of a charitable gift an- (1) IN GENERAL.—The amendment made by tions for part III of subchapter B of chapter 1 nuity (as defined in section 501(m)(5)), this section shall apply to payments received or is amended by inserting after the item relating accrued after December 31, 1999. no amount shall be includible in gross income of to section 138 the following new items: (2) PAYMENTS SUBJECT TO BINDING CONTRACT the distributee. The preceding sentence shall TRANSITION RULE.—If the amendments made by apply only if no person holds any interest in the ‘‘Sec. 138A. Reimbursement for use of passenger section 1041 of the Taxpayer Relief Act of 1997 amounts in the trust, fund, or annuity attrib- automobile for charity.’’. do not apply to any amount received or accrued utable to such distribution other than one or (c) EFFECTIVE DATE.—The amendments made after the date of the enactment of this Act under more of the following: the individual for whose by this section shall apply to taxable years be- any contract described in subsection (b)(2) of benefit such account is maintained, the spouse ginning after December 31, 1999. such section, such amendments also shall not of such individual, or any organization de- SEC. 806. CHARITABLE CONTRIBUTION DEDUC- apply to amounts received or accrued under scribed in section 170(c). TION FOR CERTAIN EXPENSES IN- CURRED IN SUPPORT OF NATIVE such contract before January 1, 2000. ‘‘(ii) DETERMINATION OF INCLUSION OF ALASKAN SUBSISTENCE WHALING. SEC. 803. SIMPLIFICATION OF LOBBYING EXPEND- AMOUNTS DISTRIBUTED.—In determining the (a) IN GENERAL.—Section 170 (relating to ITURE LIMITATION. amount includible in the gross income of the dis- charitable, etc., contributions and gifts) is (a) REPEAL OF GRASSROOTS EXPENDITURE tributee of a distribution from a trust described amended by redesignating subsection (m) as sub- LIMIT.—Paragraph (1) of section 501(h) (relating in clause (i)(I) or an annuity (as described in section (n) and by inserting after subsection (l) to expenditures by public charities to influence clause (i)(III)), the portion of any qualified the following new subsection: legislation) is amended to read as follows: charitable distribution to such trust or for such ‘‘(m) EXPENSES PAID BY CERTAIN WHALING ‘‘(1) GENERAL RULE.—In the case of an orga- annuity which would (but for this subpara- CAPTAINS IN SUPPORT OF NATIVE ALASKAN SUB- nization to which this subsection applies, ex- graph) have been includible in gross income— SISTENCE WHALING.— emption from taxation under subsection (a) ‘‘(I) in the case of any such trust, shall be ‘‘(1) IN GENERAL.—In the case of an individual shall be denied because a substantial part of the treated as income described in section 664(b)(1), who is recognized by the Alaska Eskimo Whal- activities of such organization consists of car- or ing Commission as a whaling captain charged rying on propaganda, or otherwise attempting, ‘‘(II) in the case of any such annuity, shall with the responsibility of maintaining and car- to influence legislation, but only if such organi- not be treated as an investment in the contract. rying out sanctioned whaling activities and who zation normally makes lobbying expenditures in ‘‘(iii) NO INCLUSION FOR DISTRIBUTION TO engages in such activities during the taxable excess of the lobbying ceiling amount for such POOLED INCOME FUND.—No amount shall be in- year, the amount described in paragraph (2) (to organization for each taxable year.’’. cludible in the gross income of a pooled income the extent such amount does not exceed $7,500 (b) CONFORMING AMENDMENTS.— fund (as so defined) by reason of a qualified for the taxable year) shall be treated for pur- (1) Section 501(h)(2) is amended by striking charitable distribution to such fund. poses of this section as a charitable contribu- subparagraphs (C) and (D). ‘‘(C) QUALIFIED CHARITABLE DISTRIBUTION.— tion. (2) Section 4911(b) is amended to read as fol- For purposes of this paragraph, the term ‘quali- ‘‘(2) AMOUNT DESCRIBED.— lows: fied charitable distribution’ means any distribu- ‘‘(A) IN GENERAL.—The amount described in ‘‘(b) EXCESS LOBBYING EXPENDITURES.—For tion from an individual retirement account— this paragraph is the aggregate of the reason- purposes of this section, the term ‘excess lob- ‘‘(i) which is made on or after the date that able and necessary whaling expenses paid by bying expenditures’ means, for a taxable year, the individual for whose benefit the account is the taxpayer during the taxable year in car- the amount by which the lobbying expenditures maintained has attained age 701⁄2, and rying out sanctioned whaling activities. made by the organization during the taxable ‘‘(ii) which is a charitable contribution (as de- ‘‘(B) WHALING EXPENSES.—For purposes of year exceed the lobbying nontaxable amount for fined in section 170(c)) made directly from the subparagraph (A), the term ‘whaling expenses’ such organization for such taxable year.’’. account to— includes expenses for— (3) Section 4911(c) is amended by striking ‘‘(I) an organization described in section ‘‘(i) the acquisition and maintenance of whal- paragraphs (3) and (4). 170(c), or ing boats, weapons, and gear used in sanctioned (4) Paragraph (1)(A) of section 4911(f) is ‘‘(II) a trust, fund, or annuity described in whaling activities, amended by striking ‘‘limits of section 501(h)(1) subparagraph (B). ‘‘(ii) the supplying of food for the crew and have’’ and inserting ‘‘limit of section 501(h)(1) ‘‘(D) DENIAL OF DEDUCTION.—The amount al- other provisions for carrying out such activities, has’’. lowable as a deduction to the taxpayer for the and (5) Paragraph (1)(C) of section 4911(f) is taxable year under section 170 for qualified ‘‘(iii) storage and distribution of the catch amended by striking ‘‘limits of section 501(h)(1) charitable distributions shall be reduced (but from such activities. S10038 CONGRESSIONAL RECORD — SENATE August 2, 1999

‘‘(3) SANCTIONED WHALING ACTIVITIES.—For ‘‘(3) the direct charitable deduction.’’. within the meaning of section 4941(d) if such purposes of this subsection, the term ‘sanctioned (c) EFFECTIVE DATE.—The amendments made corporation were a private foundation and if whaling activities’ means subsistence bowhead by this section shall apply to taxable years be- each such disqualified person were a disquali- whale hunting activities conducted pursuant to ginning after December 31, 2004, and before Jan- fied person with respect to such corporation, uary 1, 2007. the management plan of the Alaska Eskimo ‘‘(II) in which disqualified persons with re- Whaling Commission.’’. SEC. 809. INCREASE IN LIMIT ON CHARITABLE spect to such private foundation do not own in (b) EFFECTIVE DATE.—The amendments made CONTRIBUTIONS AS PERCENTAGE the aggregate more than 2 percent of the voting by subsection (a) shall apply to taxable years OF AGI. stock and not more than 2 percent in value of beginning after December 31, 1999. (a) IN GENERAL.— all outstanding shares of all classes of stock in SEC. 807. CHARITABLE CONTRIBUTIONS TO CER- (1) INDIVIDUAL LIMIT.—Section 170(b)(1) (re- TAIN LOW INCOME SCHOOLS MAY BE lating to percentage limitations) is amended— such corporation, and MADE IN NEXT TAXABLE YEAR. (A) by striking ‘‘50 percent’’ in subparagraph ‘‘(III) for which there is submitted with the (a) IN GENERAL.—Section 170(f) (relating to (A) and inserting ‘‘the applicable percentage’’, annual return of the private foundation for disallowance of deduction in certain cases and and such year (filed within the time prescribed by (B) by striking ‘‘30 percent’’ each place it ap- special rules) is amended by adding at the end law, including extensions, for filing such re- pears in subparagraph (C) and inserting ‘‘the the following new paragraph: turn) a certification which is signed by all the applicable percentage’’. ‘‘(10) TIME WHEN CERTAIN CONTRIBUTIONS members of an audit committee of the Board of (2) CORPORATE LIMIT.—Section 170(b)(2) is DEEMED MADE.— Directors of such corporation consisting of a ‘‘(A) IN GENERAL.—At the election of the tax- amended by striking ‘‘10 percent’’ and inserting majority of persons who are not disqualified payer, a qualified low-income school contribu- ‘‘the applicable percentage’’. persons with respect to such private foundation tion shall be deemed to be made on the last day (b) APPLICABLE PERCENTAGE.—Section 170(b) and which certifies that such members, after due of the preceding taxable year if the contribution is amended by adding at the end the following inquiry, are not aware that any disqualified is made on account of such taxable year and is new paragraph: person has received compensation from such made not later than the time prescribed by law ‘‘(3) APPLICABLE PERCENTAGE.—For purposes corporation or has engaged in any act with for filing the return for such taxable year (not of this subsection, the applicable percentage such corporation that would constitute self- including extensions thereof). The election may shall be determined under the following tables: ‘‘(A) In the case of paragraph (1)(A): dealing within the meaning of section 4941(d) if be made at the time of the filing of the return such corporation were a private foundation and for such table year, and shall be made and sub- ‘‘For taxable year— The applicable if each such disqualified person were a disquali- stantiated in such manner as the Secretary shall percentage is— 2002 ...... 52 fied person with respect to such corporation. by regulations prescribe. 2003 ...... 54 ‘‘(B) QUALIFIED LOW-INCOME SCHOOL CON- 2004 ...... 56 For purposes of this clause, the fact that a dis- TRIBUTION.—For purposes of subparagraph (A), 2005 ...... 58 qualified person has received compensation from the term ‘qualified low-income school contribu- 2006 ...... 60 such corporation or has engaged in any act tion’ means a charitable contribution to an edu- 2007 and thereafter ...... 70. with such corporation which would constitute cational organization described in subsection ‘‘(B) In the case of paragraph (1)(C): self-dealing within the meaning of section (b)(1)(A)(ii)— ‘‘For taxable year— The applicable 4941(d) shall be disregarded if such receipt or ‘‘(i) which is a public, private, or sectarian percentage is— act is corrected not later than the due date (not school which provides elementary or secondary 2002 ...... 32 including extensions thereof) for the filing of education (through grade 12), as determined 2003 ...... 34 the private foundation’s annual return for the under State law, and 2004 ...... 36 year in which the receipt or act occurs and on 2005 ...... 38 ‘‘(ii) with respect to which at least 50 percent the terms that would be necessary to correct of the students attending such school are eligi- 2006 ...... 40 2007 and thereafter ...... 50. such receipt or act and thereby avoid imposition ble for free or reduced-cost lunches under the of tax under section 4941(b). school lunch program established under the Na- ‘‘(C) In the case of paragraph (2): tional School Lunch Act.’’. ‘‘For taxable year— The applicable ‘‘(E) APPLICABLE PERCENTAGE.—For purposes (b) EFFECTIVE DATE.—The amendment made percentage is— of this paragraph, the applicable percentage by this section shall apply to taxable years be- 2002 ...... 12 shall be determined under the following table: ginning after December 31, 1999. 2003 ...... 14 2004 ...... 16 ‘‘For taxable year— The applicable SEC. 808. DEDUCTION FOR PORTION OF CHARI- 2005 ...... 18 percentage is— TABLE CONTRIBUTIONS TO BE AL- 2006 and thereafter ...... 20.’’. LOWED TO INDIVIDUALS WHO DO 2007 ...... 40 (c) CONFORMING AMENDMENT.—Section NOT ITEMIZE DEDUCTIONS. 170(d)(1)(A) is amended by striking ‘‘50 percent’’ 2008 and thereafter ...... 49.’’. (a) IN GENERAL.—Section 170 (relating to charitable, etc., contributions and gifts), as each place it appears and inserting ‘‘the appli- (b) EFFECTIVE DATE.—The amendment made amended by section 806, is amended by redesig- cable percentage in effect under subsection by this section shall apply to foundations estab- nating subsection (n) as subsection (o) and by (b)(1)(A)’’. lished by bequest of decedents dying after De- (d) EFFECTIVE DATE.—The amendments made inserting after subsection (m) the following new cember 31, 2006. by this section shall apply to taxable years be- subsection: ginning after December 31, 2001. SEC. 811. CERTAIN COSTS OF PRIVATE FOUNDA- ‘‘(n) DEDUCTION FOR INDIVIDUALS NOT TION IN REMOVING HAZARDOUS SEC. 810. LIMITED EXCEPTION TO EXCESS BUSI- ITEMIZING DEDUCTIONS.—In the case of an indi- SUBSTANCES TREATED AS QUALI- NESS HOLDINGS RULE. vidual who does not itemize his deductions for FYING DISTRIBUTION. (a) IN GENERAL.—Section 4943(c)(2) (relating the taxable year, there shall be taken into ac- to permitted holdings in a corporation) is (a) IN GENERAL.—In the case of any taxable count as a direct charitable deduction under amended by adding at the end the following year beginning after December 31, 1999, the dis- section 63 an amount equal to the lesser of— tributable amount of a private foundation for ‘‘(1) the amount allowable as a deduction new subparagraphs: such taxable year for purposes of section 4942 of under subsection (a) for the taxable year, or ‘‘(D) RULE WHERE VOTING STOCK IS PUBLICLY ‘‘(2) $50 ($100 in the case of a joint return).’’. TRADED.— the Internal Revenue Code of 1986 shall be re- (b) DIRECT CHARITABLE DEDUCTION.— ‘‘(i) IN GENERAL.—If— duced (but not below zero) by any amount paid (1) IN GENERAL.—Subsection (b) of section 63 is ‘‘(I) the private foundation and all disquali- or incurred (or set aside) by such private foun- amended by striking ‘‘and’’ at the end of para- fied persons together do not own more than the dation for the investigatory costs and direct graph (1), by striking the period at the end of applicable percentage of the voting stock and costs of removal or taking remedial action with paragraph (2) and inserting ‘‘, and’’, and by not more than the applicable percentage in respect to a hazardous substance released at a adding at the end thereof the following new value of all outstanding shares of all classes of facility which was owned or operated by such paragraph: stock of an incorporated business enterprise, private foundation. ‘‘(II) the voting stock owned by the private ‘‘(3) the direct charitable deduction.’’. (b) LIMITATIONS.—Subsection (a) shall only (2) DEFINITION.—Section 63 is amended by re- foundation and all disqualified persons together apply to costs— designating subsection (g) as subsection (h) and is stock for which market quotations are readily by inserting after subsection (f) the following available on an established securities market, (1) incurred with respect to hazardous sub- new subsection: and stances disposed of at a facility owned or oper- ‘‘(g) DIRECT CHARITABLE DEDUCTION.—For ‘‘(III) the requirements of clause (ii) are met, ated by the private foundation but only if— purposes of this section, the term ‘direct chari- then subparagraph (A) shall be applied by sub- (A) such facility was transferred to such foun- table deduction’ means that portion of the stituting ‘the applicable percentage’ for ‘20 per- dation by bequest before December 11, 1980, and amount allowable under section 170(a) which is cent’. (B) the active operation of such facility by taken as a direct charitable deduction for the ‘‘(ii) REQUIREMENTS TO BE MET.—The require- taxable year under section 170(n).’’. ments of this clause are met during any taxable such foundation was terminated before Decem- (3) CONFORMING AMENDMENT.—Subsection (d) year— ber 12, 1980, and of section 63 is amended by striking ‘‘and’’ at ‘‘(I) in which disqualified persons with respect (2) which were not incurred pursuant to a the end of paragraph (1), by striking the period to the private foundation do not receive com- pending order issued to the private foundation at the end of paragraph (2) and inserting ‘‘, pensation (as an employee or otherwise) from unilaterally by the President or the President’s and’’, and by adding at the end thereof the fol- the corporation or engage in any act with such assignee under section 106 of the Comprehensive lowing new paragraph: corporation which would constitute self-dealing Environmental Response, Compensation, and August 2, 1999 CONGRESSIONAL RECORD — SENATE S10039

Liability Act of 1980 (42 U.S.C. 9606), or pursu- sequent years unless revoked with the consent ‘‘(B) ELECTING FINANCIAL INSTITUTION ant to a nonconsensual judgment against the of the Secretary.’’. GROUP.—The term ‘electing financial institution private foundation issued in a governmental (b) ELECTION TO EXPAND FINANCIAL INSTITU- group’ means the group of corporations to cost recovery action under section 107 of such TION GROUP OF WORLDWIDE GROUP.—Section which subsection (e) applies separately by rea- Act (42 U.S.C. 9607). 864 is amended by redesignating subsection (f) son of the application of subsection (e)(5)(B) (c) HAZARDOUS SUBSTANCE.—For purposes of as subsection (g) and by inserting after sub- and which includes financial corporations by this section, the term ‘‘hazardous substance’’ section (e) the following new subsection: reason of an election under paragraph (1). has the meaning given such term by section ‘‘(f) ELECTION TO EXPAND FINANCIAL INSTITU- ‘‘(6) REGULATIONS.—The Secretary shall pre- 101(14) of the Comprehensive Environmental Re- TION GROUP OF WORLDWIDE GROUP.— scribe such regulations as may be appropriate to sponse, Compensation, and Liability Act of 1980 ‘‘(1) IN GENERAL.—If a worldwide affiliated carry out this subsection and subsection (e), in- (42 U.S.C. 9601(14)). group for which an election under subsection cluding regulations— SEC. 812. HOLDING PERIOD REDUCED TO 12 (e)(6) is in effect elects the application of this ‘‘(A) providing for the direct allocation of in- MONTHS FOR PURPOSES OF DETER- subsection, all financial corporations which— terest expense in other circumstances where MINING WHETHER HORSES ARE SEC- ‘‘(A) are members of such worldwide affiliated such allocation would be appropriate to carry TION 1231 ASSETS. group, but out the purposes of this subsection, (a) IN GENERAL.—Subparagraph (A) of section ‘‘(B) are not corporations described in sub- ‘‘(B) preventing assets or interest expense 1231(b)(3) (relating to definition of property section (e)(5)(C), from being taken into account more than once, used in the trade or business) is amended by shall be treated as described in subsection and striking ‘‘and horses’’. (e)(5)(C) for purposes of applying subsection ‘‘(C) dealing with changes in members of any (b) EFFECTIVE DATE.—The amendment made (e)(5)(B). Subsection (e) shall apply to any such group (through acquisitions or otherwise) treat- by this section shall apply to taxable years be- group in the same manner as subsection (e) ap- ed under this subsection as an affiliated group ginning after December 31, 2000. plies to the pre-election worldwide affiliated for purposes of subsection (e).’’. TITLE IX—INTERNATIONAL TAX RELIEF group of which such group is a part. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years be- SEC. 901. INTEREST ALLOCATION RULES. ‘‘(2) FINANCIAL CORPORATION.—For purposes ginning after December 31, 2004. (a) ELECTION TO ALLOCATE INTEREST ON A of this subsection, the term ‘financial corpora- SEC. 902. LOOK-THRU RULES TO APPLY TO DIVI- WORLDWIDE BASIS.—Subsection (e) of section tion’ means any corporation if at least 80 per- cent of its gross income is income described in DENDS FROM NONCONTROLLED 864 (relating to rules for allocating interest, etc.) SECTION 902 CORPORATIONS. is amended by redesignating paragraphs (6) and section 904(d)(2)(C)(ii) and the regulations (a) IN GENERAL.—Section 904(d)(4) (relating to (7) as paragraphs (7) and (8), respectively, and thereunder which is derived from transactions with persons not bearing a relationship de- application of look-thru rules to dividends from by inserting after paragraph (5) the following noncontrolled section 902 corporations) is new paragraph: scribed in section 267(b) or 707(b)(1) to the cor- poration. amended to read as follows: ‘‘(6) ELECTION TO ALLOCATE INTEREST ON A ‘‘(4) LOOK-THRU APPLIES TO DIVIDENDS FROM WORLDWIDE BASIS.— ‘‘(3) ANTIABUSE RULES.—In the case of a cor- poration which is a member of an electing finan- NONCONTROLLED SECTION 902 CORPORATIONS.— ‘‘(A) IN GENERAL.—Except as provided in this ‘‘(A) IN GENERAL.—For purposes of this sub- cial institution group, to the extent that such paragraph, this subsection shall be applied by section, any dividend from a noncontrolled sec- treating a worldwide affiliated group for which corporation— ‘‘(A) distributes dividends or makes other dis- tion 902 corporation with respect to the taxpayer an election is in effect under this paragraph as shall be treated as income in a separate category an affiliated group solely for purposes of allo- tributions with respect to its stock after the date of the enactment of this paragraph to any mem- in proportion to the ratio of— cating and apportioning interest expense of ‘‘(i) the portion of earnings and profits attrib- ber of the pre-election worldwide affiliated each domestic corporation which is a member of utable to income in such category, to group (other than to a member of the electing fi- such group. ‘‘(ii) the total amount of earnings and profits. nancial institution group) in excess of the great- ‘‘(B) WORLDWIDE AFFILIATED GROUP.—For ‘‘(B) SPECIAL RULES.—For purposes of this er of— purposes of this paragraph, the term ‘worldwide paragraph— ‘‘(i) its average annual dividend (expressed as affiliated group’ means the group of corpora- ‘‘(i) IN GENERAL.—Rules similar to the rules of a percentage of current earnings and profits) tions which consists of— paragraph (3)(F) shall apply, except that the during the 5-taxable-year period ending with ‘‘(i) all corporations in an affiliated group (as term ‘separate category’ shall include the cat- the taxable year preceding the taxable year, or defined in paragraph (5)(A), except that section egory of income described in paragraph (1)(I). ‘‘(ii) 25 percent of its average annual earnings 1504 shall also be applied without regard to sub- ‘‘(ii) EARNINGS AND PROFITS.— and profits for such 5 taxable year period, or section (b)(2) thereof), and ‘‘(I) IN GENERAL.—The rules of section 316 ‘‘(ii) all foreign corporations (other than a ‘‘(B) deals with any person in any manner not shall apply. clearly reflecting the income of the corporation FSC, as defined in section 922(a)) which would ‘‘(II) REGULATIONS.—The Secretary may pre- be a member of such affiliated group if para- (as determined under principles similar to the scribe regulations regarding the treatment of graph (3) of section 1504 (b) did not apply. principles of section 482), distributions out of earnings and profits for pe- ‘‘(C) TREATMENT OF WORLDWIDE AFFILIATED an amount of indebtedness of the electing finan- riods before the taxpayer’s acquisition of the GROUP.—For purposes of applying paragraph cial institution group equal to the excess dis- stock to which the distributions relate. (1), the taxable income of the domestic members tribution or the understatement or overstate- ‘‘(iii) DIVIDENDS NOT ALLOCABLE TO SEPARATE of a worldwide affiliated group from sources ment of income, as the case may be, shall be re- CATEGORY.—The portion of any dividend from a outside the United States shall be determined by characterized (for the taxable year and subse- noncontrolled section 902 corporation which is allocating and apportioning the interest expense quent taxable years) for purposes of this sub- not treated as income in a separate category of such domestic members to such income in an section as indebtedness of the worldwide affili- under subparagraph (A) shall be treated as a amount equal to the excess (if any) of— ated group (excluding the electing financial in- dividend to which subparagraph (A) does not ‘‘(i) the total interest expense of the world- stitution group). If a corporation has not been apply. wide affiliated group multiplied by the ratio in existence for 5 taxable years, this subpara- ‘‘(iv) LOOK-THRU WITH RESPECT TO which the foreign assets of the worldwide affili- graph shall be applied with respect to the period CARRYFORWARDS OF CREDIT.—Rules similar to ated group bears to all the assets of the world- it was in existence. subparagraph (A) also shall apply to any wide affiliated group, over ‘‘(4) ELECTION.—An election under this sub- carryforward under subsection (c) from a tax- ‘‘(ii) the interest expense of all foreign cor- section with respect to any financial institution able year beginning before January 1, 2005, of porations which are members of the worldwide group may be made only by the common parent tax allocable to a dividend from a noncontrolled affiliated group to the extent such interest ex- of the pre-election worldwide affiliated group section 902 corporation with respect to the tax- pense of such foreign corporations would have and may be made only for the first taxable year payer.’’. been allocated and apportioned to foreign beginning after December 31, 2004, in which (b) CONFORMING AMENDMENTS.— source income if this subsection were applied to such affiliated group includes 1 or more finan- (1) Subparagraph (E) of section 904(d)(1), as a group consisting of all the foreign corpora- cial corporations described in paragraph (1)(B). in effect both before and after the amendments tions in such worldwide affiliated group. Such an election, once made, shall apply to all made by section 1105 of the Taxpayer Relief Act ‘‘(D) ELECTION.—An election under this para- financial corporations which are members of the of 1997, is hereby repealed. graph with respect to any worldwide affiliated electing financial institution group for such tax- (2) Section 904(d)(2)(C)(iii), as so in effect, is group may be made only by the common parent able year and all subsequent years unless re- amended by striking subclause (II) and by re- of the affiliated group referred to in subpara- voked with the consent of the Secretary. designating subclause (III) as subclause (II). graph (B)(i) and may be made only for the first ‘‘(5) DEFINITIONS RELATING TO GROUPS.—For (3) The last sentence of section 904(d)(2)(D), taxable year beginning after December 31, 2004, purposes of this subsection— as so in effect, is amended to read as follows: in which a worldwide affiliated group exists ‘‘(A) PRE-ELECTION WORLDWIDE AFFILIATED ‘‘Such term does not include any financial serv- which includes such affiliated group and at GROUP.—The term ‘pre-election worldwide affili- ices income.’’. least 1 corporation described in subparagraph ated group’ means, with respect to a corpora- (4) Section 904(d)(2)(E) is amended by striking (B)(ii). Such an election, once made, shall apply tion, the worldwide affiliated group of which clauses (ii) and (iv) and by redesignating clause to such common parent and all other corpora- such corporation would (but for an election (iii) as clause (ii). tions which are members of such worldwide af- under this subsection) be a member for purposes (5) Section 904(d)(3)(F) is amended by striking filiated group for such taxable year and all sub- of applying subsection (e). ‘‘(D), or (E)’’ and inserting ‘‘or (D)’’. S10040 CONGRESSIONAL RECORD — SENATE August 2, 1999 (6) Section 864(d)(5)(A)(i) is amended by strik- (ii) advance pricing agreements executed cu- scribe such regulations as may be necessary or ing ‘‘(C)(iii)(III)’’ and inserting ‘‘(C)(iii)(II)’’. mulatively to date and during such calendar appropriate to carry out the purposes of section (c) EFFECTIVE DATE.—The amendments made year; 6103(b)(2)(C), and the last sentence of section by this section shall apply to taxable years be- (iii) renewals of advanced pricing agreements 6110(b)(1), of the Internal Revenue Code of 1986, ginning after December 31, 2004. issued; as added by this section. SEC. 903. CLARIFICATION OF TREATMENT OF (iv) pending requests for advance pricing SEC. 906. AIRLINE MILEAGE AWARDS TO CERTAIN PIPELINE TRANSPORTATION IN- agreements; FOREIGN PERSONS. COME. (v) pending renewals of advance pricing (a) IN GENERAL.—The last sentence of section (a) IN GENERAL.—Section 954(g)(1) (defining agreements; 4261(e)(3)(C) (relating to regulations) is amend- foreign base company oil related income) is (vi) for each of the items in clauses (ii) ed by inserting ‘‘and mileage awards which are amended by striking ‘‘or’’ at the end of subpara- through (v), the number that are unilateral, bi- issued to individuals whose mailing addresses graph (A), by striking the period at the end of lateral, and multilateral, respectively; on record with the person providing the right to subparagraph (B) and inserting ‘‘, or’’, and by (vii) advance pricing agreements revoked or air transportation are outside the United inserting after subparagraph (B) the following canceled, and the number of withdrawals from States’’ before the period at the end thereof. new subparagraph: the advance pricing agreement program; and (b) EFFECTIVE DATE.—The amendment made ‘‘(C) the pipeline transportation of oil or gas (viii) advanced pricing agreements finalized or by this section shall apply to amounts paid after within such foreign country.’’. renewed by industry. December 31, 2004. (b) EFFECTIVE DATE.—The amendment made (D) General descriptions of— SEC. 907. REPEAL OF FOREIGN TAX CREDIT LIMI- by this section shall apply to taxable years of (i) the nature of the relationships between the TATION UNDER ALTERNATIVE MIN- controlled foreign corporations beginning after related organizations, trades, or businesses cov- IMUM TAX. December 31, 2002, and taxable years of United ered by advance pricing agreements; (a) IN GENERAL.—Section 59(a) (relating to al- States shareholders with or within which such (ii) the covered transactions and the business ternative minimum tax foreign tax credit) is taxable years of controlled foreign corporations functions performed and risks assumed by such amended by striking paragraph (2) and by re- end. organizations, trades, or businesses; designating paragraphs (3) and (4) as para- SEC. 904. SUBPART F TREATMENT OF INCOME (iii) the related organizations, trades, or busi- graphs (2) and (3), respectively. FROM TRANSMISSION OF HIGH nesses whose prices or results are tested to deter- (b) CONFORMING AMENDMENT.—Section VOLTAGE ELECTRICITY. mine compliance with transfer pricing meth- 53(d)(1)(B)(i)(II) is amended by striking ‘‘and if (a) IN GENERAL.—Paragraph (2) of section odologies prescribed in advanced pricing agree- section 59(a)(2) did not apply’’. 954(e) (relating to foreign base company services ments; (c) EFFECTIVE DATE.—The amendments made income) is amended by striking ‘‘or’’ at the end (iv) methodologies used to evaluate tested par- by this section shall apply to taxable years be- of subparagraph (A), by striking the period at ties and transactions and the circumstances ginning after December 31, 2004. the end of subparagraph (B) and inserting ‘‘, leading to the use of those methodologies; SEC. 908. TREATMENT OF MILITARY PROPERTY or’’, and by inserting after subparagraph (B) (v) critical assumptions made and sources of OF FOREIGN SALES CORPORATIONS. the following new subparagraph: comparables used; (a) IN GENERAL.—Section 923(a) (defining ex- ‘‘(C) the transmission of high voltage elec- (vi) comparable selection criteria and the ra- empt foreign trade income) is amended by strik- tricity.’’. tionale used in determining such criteria; ing paragraph (5) and by redesignating para- (b) EFFECTIVE DATE.—The amendment made (vii) the nature of adjustments to comparables graph (6) as paragraph (5). by this section shall apply to taxable years of or tested parties; (b) EFFECTIVE DATE.—The amendment made controlled foreign corporations beginning after (viii) the nature of any ranges agreed to, in- by this section shall apply to taxable years be- December 31, 2002, and taxable years of United cluding information regarding when no range ginning after December 31, 2004. States shareholders with or within which such was used and why, when interquartile ranges TITLE X—HOUSING AND REAL ESTATE taxable years of controlled foreign corporations were used, and when there was a statistical nar- TAX RELIEF PROVISIONS end. rowing of the comparables; Subtitle A—Low-Income Housing Credit SEC. 905. ADVANCE PRICING AGREEMENTS (ix) adjustment mechanisms provided to rec- SEC. 1001. MODIFICATION OF STATE CEILING ON TREATED AS CONFIDENTIAL TAX- tify results that fall outside of the agreed upon LOW-INCOME HOUSING CREDIT. PAYER INFORMATION. advance pricing agreement range; (a) IN GENERAL.—Clauses (i) and (ii) of sec- (a) IN GENERAL.— (x) the various term lengths for advance pric- tion 42(h)(3)(C) (relating to State housing credit (1) TREATMENT AS RETURN INFORMATION.— ing agreements, including rollback years, and Paragraph (2) of section 6103(b) (defining return ceiling) are amended to read as follows: the number of advance pricing agreements with ‘‘(i) the unused State housing credit ceiling (if information) is amended by striking ‘‘and’’ at each such term length; any) of such State for the preceding calendar the end of subparagraph (A), by inserting (xi) the nature of documentation required; year, ‘‘and’’ at the end of subparagraph (B), and by and ‘‘(ii) the greater of— inserting after subparagraph (B) the following (xii) approaches for sharing of currency or ‘‘(I) the applicable amount under subpara- new subparagraph: graph (H) multiplied by the State population, or ‘‘(C) any advance pricing agreement entered other risks. (E) Statistics regarding the amount of time ‘‘(II) $2,000,000,’’. into by a taxpayer and the Secretary and any taken to complete new and renewal advance (b) APPLICABLE AMOUNT.—Paragraph (3) of background information related to such agree- pricing agreements. section 42(h) (relating to housing credit dollar ment or any application for an advance pricing (3) CONFIDENTIALITY.—The reports required amount for agencies) is amended by adding at agreement,’’. by this subsection shall be treated as authorized the end the following new subparagraph: (2) EXCEPTION FROM PUBLIC INSPECTION AS by the Internal Revenue Code of 1986 for pur- ‘‘(H) APPLICABLE AMOUNT OF STATE CEILING.— WRITTEN DETERMINATION.—Paragraph (1) of sec- poses of section 6103 of such Code, but the re- For purposes of subparagraph (C)(ii), the appli- tion 6110(b) (defining written determination) is cable amount shall be determined under the fol- amended by adding at the end the following ports shall not include information— (A) which would not be permitted to be dis- lowing table: new sentence: ‘‘Such term shall not include any ‘‘For calendar year— The applicable advance pricing agreement entered into by a closed under section 6110(c) of such Code if such report were a written determination as defined amount is— taxpayer and the Secretary and any back- 2001 ...... $1.35 ground information related to such agreement or in section 6110 of such Code, or (B) which can be associated with, or otherwise 2002 ...... 1.45 any application for an advance pricing agree- 2003 ...... 1.55 identify, directly or indirectly, a particular tax- ment.’’. 2004 ...... 1.65 payer. (3) EFFECTIVE DATE.—The amendments made 2005 and thereafter ...... 1.75.’’. by this subsection shall take effect on the date (4) FIRST REPORT.—The report for calendar (c) ADJUSTMENT OF STATE CEILING FOR IN- of the enactment of this Act. year 1999 shall include prior calendar years CREASES IN COST-OF-LIVING.—Paragraph (3) of (b) ANNUAL REPORT REGARDING ADVANCE after 1990. section 42(h) (relating to housing credit dollar PRICING AGREEMENTS.— (c) USER FEE.—Section 7527, as added by this amount for agencies), as amended by subsection (1) IN GENERAL.—Not later than 90 days after Act, is amended by redesignating subsection (c) (b), is amended by adding at the end the fol- the end of each calendar year, the Secretary of as subsection (d) and by inserting after sub- lowing new subparagraph: the Treasury shall prepare and publish a report section (b) the following new subsection: ‘‘(I) COST-OF-LIVING ADJUSTMENT.— regarding advance pricing agreements. ‘‘(c) ADVANCE PRICING AGREEMENTS.— ‘‘(i) IN GENERAL.—In the case of a calendar (2) CONTENTS OF REPORT.—The report shall ‘‘(1) IN GENERAL.—In addition to any fee oth- year after 2005, the $1.75 amount in subpara- include the following for the calendar year to erwise imposed under this section, the fee im- graph (H) shall be increased by an amount which such report relates: posed for requests for advance pricing agree- equal to— (A) Information about the structure, composi- ments shall be increased by $500. ‘‘(I) such dollar amount, multiplied by tion, and operation of the advance pricing ‘‘(2) REDUCED FEE FOR SMALL BUSINESSES.— ‘‘(II) the cost-of-living adjustment determined agreement program office. The Secretary shall provide an appropriate re- under section 1(f)(3) for such calendar year by (B) A copy of each model advance pricing duction in the amount imposed by reason of substituting ‘calendar year 2004’ for ‘calendar agreement. paragraph (1) for requests for advance pricing year 1992’ in subparagraph (B) thereof. (C) The number of— agreements for small businesses.’’. ‘‘(ii) ROUNDING.—Any increase under clause (i) applications filed during such calendar (d) REGULATIONS.—The Secretary of the (i) which is not a multiple of 5 cents shall be year for advanced pricing agreements; Treasury or the Secretary’s delegate shall pre- rounded to the next lowest multiple of 5 cents.’’. August 2, 1999 CONGRESSIONAL RECORD — SENATE S10041

(d) CONFORMING AMENDMENTS.— ‘‘(i) any part of which is a targeted area resi- retary) is not less than such minimum period as (1) Section 42(h)(3)(C), as amended by sub- dence within the meaning of section 143(j)(1), or the regulations require. section (a), is amended— ‘‘(ii) which is located within an enterprise ‘‘(7) TENANT-STOCKHOLDER IN COOPERATIVE (A) by striking ‘‘clause (ii)’’ in the matter fol- community or empowerment zone as designated HOUSING CORPORATION.—If the taxpayer holds lowing clause (iv) and inserting ‘‘clause (i)’’, under section 1391, stock as a tenant-stockholder (as defined in sec- and but shall not apply with respect to any building tion 216) in a cooperative housing corporation (B) by striking ‘‘clauses (i)’’ in the matter fol- which is listed in the National Register. (as defined in such section), such stockholder lowing clause (iv) and inserting ‘‘clauses (ii)’’. ‘‘(3) APPROVED STATE PROGRAM.—The term shall be treated as owning the house or apart- (2) Section 42(h)(3)(D)(ii) is amended— ment which the taxpayer is entitled to occupy as (A) by striking ‘‘subparagraph (C)(ii)’’ and in- ‘certified rehabilitation’ includes a certification made by— such stockholder. serting ‘‘subparagraph (C)(i)’’, and ‘‘(8) ALLOCATION OF EXPENDITURES RELATING (B) by striking ‘‘clauses (i)’’ in subclause (II) ‘‘(A) a State Historic Preservation Officer who administers a State Historic Preservation Pro- TO EXTERIOR OF BUILDING CONTAINING COOPERA- and inserting ‘‘clauses (ii)’’. TIVE OR CONDOMINIUM UNITS.—The percentage FFECTIVE DATE.—The amendments made gram approved by the Secretary of the Interior (e) E of the total expenditures made in the rehabilita- by this section shall apply to calendar years pursuant to section 101(b)(1) of the National tion of a building containing cooperative or con- after 2000. Historic Preservation Act, as in effect on July dominium residential units allocated to the re- Subtitle B—Historic Homes 21, 1999, or ‘‘(B) a local government, certified pursuant to habilitation of the exterior of the building shall SEC. 1011. TAX CREDIT FOR RENOVATING HIS- section 101(c)(1) of the National Historic Preser- be attributed proportionately to each coopera- TORIC HOMES. vation Act, as in effect on July 21, 1999, and au- tive or condominium residential unit in such (a) IN GENERAL.—Subpart A of part IV of sub- building for which a credit under this section is chapter A of chapter 1 (relating to nonrefund- thorized by a State Historic Preservation Offi- cer, or the Secretary of the Interior where there claimed. able personal credits) is amended by inserting ‘‘(f) WHEN EXPENDITURES TAKEN INTO AC- is no approved State program), after section 25A the following new section: COUNT.—In the case of a building other than a ‘‘SEC. 25B. HISTORIC HOMEOWNERSHIP REHA- subject to such terms and conditions as may be building to which subsection (g) applies, quali- BILITATION CREDIT. specified by the Secretary of the Interior for the fied rehabilitation expenditures shall be treated ‘‘(a) GENERAL RULE.—In the case of an indi- rehabilitation of buildings within the jurisdic- for purposes of this section as made on the date vidual, there shall be allowed as a credit against tion of such officer (or local government) for the rehabilitation is completed. the tax imposed by this chapter for the taxable purposes of this section. ‘‘(g) ALLOWANCE OF CREDIT FOR PURCHASE OF year an amount equal to 20 percent of the quali- ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For REHABILITATED HISTORIC HOME.— fied rehabilitation expenditures made by the purposes of this section— ‘‘(1) IN GENERAL.—In the case of a qualified taxpayer with respect to a qualified historic ‘‘(1) QUALIFIED HISTORIC HOME.—The term purchased historic home, the taxpayer shall be home. ‘qualified historic home’ means a certified his- treated as having made (on the date of pur- ‘‘(b) DOLLAR LIMITATION.—The credit allowed toric structure— chase) the qualified rehabilitation expenditures by subsection (a) with respect to any residence ‘‘(A) which has been substantially rehabili- made by the seller of such home. For purposes of of a taxpayer shall not exceed $20,000 ($10,000 in tated, and the preceding sentence, expenditures made by the case of a married individual filing a sepa- ‘‘(B) which (or any portion of which)— the seller shall be deemed to be qualified reha- rate return). ‘‘(i) is owned by the taxpayer, and bilitation expenditures if such expenditures, if ‘‘(c) QUALIFIED REHABILITATION EXPENDI- ‘‘(ii) is used (or will, within a reasonable pe- made by the purchaser, would be qualified reha- TURE.—For purposes of this section— riod, be used) by such taxpayer as his principal bilitation expenditures. ‘‘(1) IN GENERAL.—The term ‘qualified reha- residence. ‘‘(2) QUALIFIED PURCHASED HISTORIC HOME.— bilitation expenditure’ means any amount prop- ‘‘(2) SUBSTANTIALLY REHABILITATED.—The For purposes of this subsection, the term ‘quali- erly chargeable to capital account— term ‘substantially rehabilitated’ has the mean- fied purchased historic home’ means any sub- ‘‘(A) in connection with the certified rehabili- ing given such term by section 47(c)(1)(C); ex- stantially rehabilitated certified historic struc- tation of a qualified historic home, and cept that, in the case of any building described ture purchased by the taxpayer if— ‘‘(B) for property for which depreciation in subsection (d)(2), clause (i)(I) thereof shall ‘‘(A) the taxpayer is the first purchaser of would be allowable under section 168 if the not apply. such structure after the date rehabilitation is qualified historic home were used in a trade or ‘‘(3) PRINCIPAL RESIDENCE.—The term ‘prin- completed, and the purchase occurs within 5 business. cipal residence’ has the same meaning as when years after such date, ‘‘(2) CERTAIN EXPENDITURES NOT INCLUDED.— used in section 121. ‘‘(B) the structure (or a portion thereof) will, ‘‘(A) EXTERIOR.—Such term shall not include ‘‘(4) CERTIFIED HISTORIC STRUCTURE.— within a reasonable period, be the principal res- any expenditure in connection with the rehabili- ‘‘(A) IN GENERAL.—The term ‘certified historic idence of the taxpayer, tation of a building unless at least 5 percent of structure’ means any building (and its struc- ‘‘(C) no credit was allowed to the seller under the total expenditures made in the rehabilitation tural components) which— this section or section 47 with respect to such re- process are allocable to the rehabilitation of the ‘‘(i) is listed in the National Register, or habilitation, and exterior of such building. ‘‘(ii) is located in a registered historic district ‘‘(D) the taxpayer is furnished with such in- ‘‘(B) OTHER RULES TO APPLY.—Rules similar (as defined in section 47(c)(3)(B)) within which formation as the Secretary determines is nec- to the rules of clauses (ii) and (iii) of section only qualified census tracts (or portions thereof) essary to determine the credit under this sub- 47(c)(2)(B) shall apply. are located, and is certified by the Secretary of section. ‘‘(3) MIXED USE OR MULTIFAMILY BUILDING.— the Interior to the Secretary as being of historic ‘‘(h) HISTORIC REHABILITATION MORTGAGE If only a portion of a building is used as the significance to the district. CREDIT CERTIFICATE.— principal residence of the taxpayer, only quali- ‘‘(B) CERTAIN STRUCTURES INCLUDED.—Such ‘‘(1) IN GENERAL.—The taxpayer may elect, in fied rehabilitation expenditures which are prop- term includes any building (and its structural lieu of the credit otherwise allowable under this erly allocable to such portion shall be taken into components) which is designated as being of his- section, to receive a historic rehabilitation mort- account under this section. toric significance under a statute of a State or gage credit certificate. An election under this ‘‘(d) CERTIFIED REHABILITATION.—For pur- local government, if such statute is certified by paragraph shall be made— poses of this section: the Secretary of the Interior to the Secretary as ‘‘(A) in the case of a building to which sub- ‘‘(1) IN GENERAL.—Except as otherwise pro- containing criteria which will substantially section (g) applies, at the time of purchase, or vided in this subsection, the term ‘certified reha- ‘‘(B) in any other case, at the time rehabilita- achieve the purpose of preserving and rehabili- bilitation’ has the meaning given such term by tion is completed. tating buildings of historic significance. section 47(c)(2)(C). ‘‘(2) HISTORIC REHABILITATION MORTGAGE ‘‘(C) QUALIFIED CENSUS TRACTS.—For pur- ‘‘(2) FACTORS TO BE CONSIDERED IN THE CASE CREDIT CERTIFICATE.—For purposes of this sub- poses of subparagraph (A)(ii)— OF TARGETED AREA RESIDENCES, ETC.— section, the term ‘historic rehabilitation mort- N GENERAL.—The term ‘qualified census ‘‘(A) IN GENERAL.—For purposes of applying ‘‘(i) I gage credit certificate’ means a certificate— section 47(c)(2)(C) under this section with re- tract’ means a census tract in which the median ‘‘(A) issued to the taxpayer, in accordance spect to the rehabilitation of a building to which family income is less than twice the statewide with procedures prescribed by the Secretary, this paragraph applies, consideration shall be median family income. with respect to a certified rehabilitation, given to— ‘‘(ii) DATA USED.—The determination under ‘‘(B) the face amount of which shall be equal ‘‘(i) the feasibility of preserving existing archi- clause (i) shall be made on the basis of the most to the credit which would (but for this sub- tectural and design elements of the interior of recent decennial census for which data are section) be allowable under subsection (a) to the such building, available. taxpayer with respect to such rehabilitation, ‘‘(ii) the risk of further deterioration or demo- ‘‘(5) REHABILITATION NOT COMPLETE BEFORE ‘‘(C) which may only be transferred by the lition of such building in the event that certifi- CERTIFICATION.—A rehabilitation shall not be taxpayer to a lending institution (including a cation is denied because of the failure to pre- treated as complete before the date of the certifi- non-depository institution) in connection with a serve such interior elements, and cation referred to in subsection (d). loan— ‘‘(iii) the effects of such deterioration or demo- ‘‘(6) LESSEES.—A taxpayer who leases his ‘‘(i) that is secured by the building with re- lition on neighboring historic properties. principal residence shall, for purposes of this spect to which the credit relates, and ‘‘(B) BUILDINGS TO WHICH THIS PARAGRAPH AP- section, be treated as the owner thereof if the re- ‘‘(ii) the proceeds of which may not be used PLIES.—This paragraph shall apply with respect maining term of the lease (as of the date deter- for any purpose other than the acquisition or to any building— mined under regulations prescribed by the Sec- rehabilitation of such building, and S10042 CONGRESSIONAL RECORD — SENATE August 2, 1999

‘‘(D) in exchange for which such lending in- section for any expenditure with respect to any SERVICE INCOME.—Clause (i) of section stitution provides the taxpayer— property (including any purchase under sub- 856(d)(7)(C) (relating to exceptions to impermis- ‘‘(i) a reduction in the rate of interest on the section (g) and any transfer under subsection sible tenant service income) is amended by in- loan which results in interest payment reduc- (h)), the increase in the basis of such property serting ‘‘or through a taxable REIT subsidiary tions which are substantially equivalent on a which would (but for this subsection) result of such trust’’ after ‘‘income’’. present value basis to the face amount of such from such expenditure shall be reduced by the (b) CERTAIN INCOME FROM TAXABLE REIT certificate, or amount of the credit so allowed. SUBSIDIARIES NOT EXCLUDED FROM RENTS FROM ‘‘(ii) if the taxpayer so elects with respect to ‘‘(k) DENIAL OF DOUBLE BENEFIT.—No credit REAL PROPERTY.— a specified amount of the face amount of such shall be allowed under this section for any (1) IN GENERAL.—Subsection (d) of section 856 a certificate relating to a building— amount for which credit is allowed under sec- (relating to rents from real property defined) is ‘‘(I) which is a targeted area residence within tion 47. amended by adding at the end the following the meaning of section 143(j)(1), or ‘‘(l) REGULATIONS.—The Secretary shall pre- new paragraphs: ‘‘(II) which is located in an enterprise commu- scribe such regulations as may be appropriate to ‘‘(8) SPECIAL RULE FOR TAXABLE REIT SUBSIDI- nity or empowerment zone as designated under carry out the purposes of this section, including ARIES.—For purposes of this subsection, section 1391, regulations where less than all of a building is amounts paid to a real estate investment trust a payment which is substantially equivalent to used as a principal residence and where more by a taxable REIT subsidiary of such trust shall such specified amount to be used to reduce the than 1 taxpayer use the same dwelling unit as not be excluded from rents from real property by taxpayer’s cost of purchasing the building (and their principal residence.’’. reason of paragraph (2)(B) if the requirements only the remainder of such face amount shall be (b) CONFORMING AMENDMENT.—Subsection (a) of subparagraph (A) or (B) are met. taken into account under clause (i)). of section 1016 is amended by striking ‘‘and’’ at ‘‘(A) LIMITED RENTAL EXCEPTION.—The re- ‘‘(3) METHOD OF DISCOUNTING.—The present the end of paragraph (26), by striking the period quirements of this subparagraph are met with value under paragraph (2)(D)(i) shall be at the end of paragraph (27) and inserting ‘‘, respect to any property if at least 90 percent of determined— and’’, and by adding at the end the following the leased space of the property is rented to per- ‘‘(A) for a period equal to the term of the loan new item: sons other than taxable REIT subsidiaries of referred to in subparagraph (D)(i), ‘‘(28) to the extent provided in section such trust and other than persons described in ‘‘(B) by using the convention that any pay- 25B(j).’’. section 856(d)(2)(B). The preceding sentence ment on such loan in any taxable year within (c) CLERICAL AMENDMENT.—The table of sec- shall apply only to the extent that the amounts such period is deemed to have been made on the tions for subpart A of part IV of subchapter A paid to the trust as rents from real property (as last day of such taxable year, of chapter 1 is amended by inserting after the defined in paragraph (1) without regard to ‘‘(C) by using a discount rate equal to 65 per- item relating to section 25A the following new paragraph (2)(B)) from such property are sub- cent of the average of the annual Federal mid- item: stantially comparable to such rents made by the term rate and the annual Federal long-term rate ‘‘Sec. 25B. Historic homeownership rehabilita- other tenants of the trust’s property for com- applicable under section 1274(d)(1) to the month tion credit.’’. parable space. in which the taxpayer makes an election under ‘‘(B) EXCEPTION FOR CERTAIN LODGING FACILI- (d) EFFECTIVE DATE.—The amendments made paragraph (1) and compounded annually, and TIES.—The requirements of this subparagraph by this section shall apply to expenses paid or ‘‘(D) by assuming that the credit allowable are met with respect to an interest in real prop- incurred in taxable years beginning after De- under this section for any year is received on erty which is a qualified lodging facility leased cember 31, 1999. the last day of such year. by the trust to a taxable REIT subsidiary of the ‘‘(4) USE OF CERTIFICATE BY LENDER.—The Subtitle C—Provisions Relating to Real Estate trust if the property is operated on behalf of amount of the credit specified in the certificate Investment Trusts such subsidiary by a person who is an eligible shall be allowed to the lender only to offset the PART I—TREATMENT OF INCOME AND independent contractor. regular tax (as defined in section 55(c)) of such SERVICES PROVIDED BY TAXABLE REIT ‘‘(9) ELIGIBLE INDEPENDENT CONTRACTOR.— lender. The lender may carry forward all un- SUBSIDIARIES For purposes of paragraph (8)(B)— used amounts under this subsection until ex- SEC. 1021. MODIFICATIONS TO ASSET DIVER- ‘‘(A) IN GENERAL.—The term ‘eligible inde- hausted. SIFICATION TEST. pendent contractor’ means, with respect to any ‘‘(5) HISTORIC REHABILITATION MORTGAGE (a) IN GENERAL.—Subparagraph (B) of section qualified lodging facility, any independent con- CREDIT CERTIFICATE NOT TREATED AS TAXABLE 856(c)(4) is amended to read as follows: tractor if, at the time such contractor enters into INCOME.—Notwithstanding any other provision ‘‘(B)(i) not more than 25 percent of the value a management agreement or other similar serv- of law, no benefit accruing to the taxpayer of its total assets is represented by securities ice contract with the taxable REIT subsidiary to through the use of an historic rehabilitation (other than those includible under subpara- operate the facility, such contractor (or any re- mortgage credit certificate shall be treated as graph (A)), and lated person) is actively engaged in the trade or taxable income for purposes of this title. ‘‘(ii) except with respect to a taxable REIT business of operating qualified lodging facilities ‘‘(i) RECAPTURE.— subsidiary and securities includible under sub- for any person who is not a related person with ‘‘(1) IN GENERAL.—If, before the end of the 5- paragraph (A)— respect to the real estate investment trust or the year period beginning on the date on which the ‘‘(I) not more than 5 percent of the value of its taxable REIT subsidiary. rehabilitation of the building is completed (or, if total assets is represented by securities of any 1 ‘‘(B) SPECIAL RULES.—Solely for purposes of subsection (g) applies, the date of purchase of issuer, this paragraph and paragraph (8)(B), a person such building by the taxpayer, or, if subsection ‘‘(II) the trust does not hold securities pos- shall not fail to be treated as an independent (h) applies, the date of the loan)— sessing more than 10 percent of the total voting contractor with respect to any qualified lodging ‘‘(A) the taxpayer disposes of such taxpayer’s power of the outstanding securities of any 1 facility by reason of any of the following: interest in such building, or issuer, and ‘‘(i) The taxable REIT subsidiary bears the ex- ‘‘(B) such building ceases to be used as the ‘‘(III) the trust does not hold securities having penses for the operation of the facility pursuant principal residence of the taxpayer, a value of more than 10 percent of the total to the management agreement or other similar the taxpayer’s tax imposed by this chapter for value of the outstanding securities of any 1 service contract. the taxable year in which such disposition or issuer.’’. ‘‘(ii) The taxable REIT subsidiary receives the cessation occurs shall be increased by the recap- (b) EXCEPTION FOR STRAIGHT DEBT SECURI- revenues from the operation of such facility, net ture percentage of the credit allowed under this TIES.—Subsection (c) of section 856 is amended of expenses for such operation and fees payable section for all prior taxable years with respect to by adding at the end the following new para- to the operator pursuant to such agreement or such rehabilitation. graph: contract. ‘‘(2) RECAPTURE PERCENTAGE.—For purposes ‘‘(7) STRAIGHT DEBT SAFE HARBOR IN APPLYING ‘‘(iii) The real estate investment trust receives of paragraph (1), the recapture percentage shall PARAGRAPH (4).—Securities of an issuer which income from such person with respect to another be determined in accordance with the following are straight debt (as defined in section 1361(c)(5) property that is attributable to a lease of such table: without regard to subparagraph (B)(iii) thereof) other property to such person that was in effect ‘‘If the disposition or ces- The recapture percentage shall not be taken into account in applying as on the later of— sation occurs is— paragraph (4)(B)(ii)(III) if— ‘‘(I) January 1, 1999, or within— ‘‘(A) the issuer is an individual, or ‘‘(II) the earliest date that any taxable REIT (i) One full year after the taxpayer 100 ‘‘(B) the only securities of such issuer which subsidiary of such trust entered into a manage- becomes entitled to the credit. are held by the trust or a taxable REIT sub- ment agreement or other similar service contract (ii) One full year after the close of the 80 sidiary of the trust are straight debt (as so de- with such person with respect to such qualified period described in clause (i). fined), or lodging facility. (iii) One full year after the close of 60 ‘‘(C) the issuer is a partnership and the trust ‘‘(C) RENEWALS, ETC., OF EXISTING LEASES.— the period described in clause (ii). holds at least a 20 percent profits interest in the For purposes of subparagraph (B)(iii)— (iv) One full year after the close of the 40 partnership.’’. ‘‘(i) a lease shall be treated as in effect on period described in clause (iii). SEC. 1022. TREATMENT OF INCOME AND SERV- January 1, 1999, without regard to its renewal (v) One full year after the close of the 20.’’. ICES PROVIDED BY TAXABLE REIT after such date, so long as such renewal is pur- period described in clause (iv). SUBSIDIARIES. suant to the terms of such lease as in effect on ‘‘(j) BASIS ADJUSTMENTS.—For purposes of (a) INCOME FROM TAXABLE REIT SUBSIDI- whichever of the dates under subparagraph this subtitle, if a credit is allowed under this ARIES NOT TREATED AS IMPERMISSIBLE TENANT (B)(iii) is the latest, and August 2, 1999 CONGRESSIONAL RECORD — SENATE S10043 ‘‘(ii) a lease of a property entered into after to which a taxable REIT subsidiary of such in section 856(d)(7)(A) with respect to a property whichever of the dates under subparagraph trust owns directly or indirectly— to the extent such amounts do not exceed the (B)(iii) is the latest shall be treated as in effect ‘‘(A) securities possessing more than 35 per- one percent threshold described in section on such date if— cent of the total voting power of the out- 856(d)(7)(B) with respect to such property. ‘‘(I) on such date, a lease of such property standing securities of such corporation, or ‘‘(iv) EXCEPTION FOR COMPARABLY PRICED from the trust was in effect, and ‘‘(B) securities having a value of more than 35 SERVICES.—Clause (i) shall not apply to any ‘‘(II) under the terms of the new lease, such percent of the total value of the outstanding se- service rendered by a taxable REIT subsidiary of trust receives a substantially similar or lesser curities of such corporation. a real estate investment trust to a tenant of benefit in comparison to the lease referred to in The preceding sentence shall not apply to a such trust if— subclause (I). qualified REIT subsidiary (as defined in sub- ‘‘(I) such subsidiary renders a significant ‘‘(D) QUALIFIED LODGING FACILITY.—For pur- section (i)(2)). The rule of section 856(c)(7) shall amount of similar services to persons other than poses of this paragraph— apply for purposes of subparagraph (B). such trust and tenants of such trust who are ‘‘(i) IN GENERAL.—The term ‘qualified lodging ‘‘(3) EXCEPTIONS.—The term ‘taxable REIT unrelated (within the meaning of section facility’ means any lodging facility unless wa- subsidiary’ shall not include— 856(d)(8)(F)) to such subsidiary, trust, and ten- gering activities are conducted at or in connec- ‘‘(A) any corporation which directly or indi- ants, but tion with such facility by any person who is en- rectly operates or manages a lodging facility or ‘‘(II) only to the extent the charge for such gaged in the business of accepting wagers and a health care facility, and service so rendered is substantially comparable who is legally authorized to engage in such ‘‘(B) any corporation which directly or indi- to the charge for the similar services rendered to business at or in connection with such facility. rectly provides to any other person (under a persons referred to in subclause (I). ‘‘(ii) LODGING FACILITY.—The term ‘lodging franchise, license, or otherwise) rights to any ‘‘(v) EXCEPTION FOR CERTAIN SEPARATELY facility’ means a hotel, motel, or other establish- brand name under which any lodging facility or CHARGED SERVICES.—Clause (i) shall not apply ment more than one-half of the dwelling units health care facility is operated. to any service rendered by a taxable REIT sub- in which are used on a transient basis. Subparagraph (B) shall not apply to rights pro- sidiary of a real estate investment trust to a ten- ‘‘(iii) CUSTOMARY AMENITIES AND FACILITIES.— vided to an eligible independent contractor to ant of such trust if— The term ‘lodging facility’ includes customary operate or manage a lodging facility if such ‘‘(I) the rents paid to the trust by tenants amenities and facilities operated as part of, or rights are held by such corporation as a (leasing at least 25 percent of the net leasable associated with, the lodging facility so long as franchisee, licensee, or in a similar capacity and space in the trust’s property) who are not re- such amenities and facilities are customary for such lodging facility is either owned by such ceiving such service from such subsidiary are other properties of a comparable size and class corporation or is leased to such corporation from substantially comparable to the rents paid by owned by other owners unrelated to such real the real estate investment trust. tenants leasing comparable space who are re- estate investment trust. ‘‘(4) DEFINITIONS.—For purposes of paragraph ceiving such service from such subsidiary, and ‘‘(E) OPERATE INCLUDES MANAGE.—References (3)— ‘‘(II) the charge for such service from such in this paragraph to operating a property shall ‘‘(A) LODGING FACILITY.—The term ‘lodging subsidiary is separately stated. be treated as including a reference to managing facility’ has the meaning given to such term by ‘‘(vi) EXCEPTION FOR CERTAIN SERVICES BASED the property. paragraph (9)(D)(ii). ON SUBSIDIARY’S INCOME FROM THE SERVICES.— ‘‘(F) RELATED PERSON.—Persons shall be ‘‘(B) HEALTH CARE FACILITY.—The term Clause (i) shall not apply to any service ren- treated as related to each other if such persons ‘health care facility’ has the meaning given to dered by a taxable REIT subsidiary of a real es- are treated as a single employer under sub- such term by subsection (e)(6)(D)(ii).’’. tate investment trust to a tenant of such trust if section (a) or (b) of section 52.’’. (b) CONFORMING AMENDMENT.—Paragraph (2) the gross income of such subsidiary from such (2) CONFORMING AMENDMENT.—Subparagraph of section 856(i) is amended by adding at the end service is not less than 150 percent of such sub- (B) of section 856(d)(2) is amended by inserting the following new sentence: ‘‘Such term shall sidiary’s direct cost in furnishing or rendering ‘‘except as provided in paragraph (8),’’ after not include a taxable REIT subsidiary.’’. the service. ‘‘(B)’’. SEC. 1024. LIMITATION ON EARNINGS STRIPPING. ‘‘(vii) EXCEPTIONS GRANTED BY SECRETARY.— The Secretary may waive the tax otherwise im- (3) DETERMINING RENTS FROM REAL PROP- Paragraph (3) of section 163(j) (relating to lim- posed by subparagraph (A) if the trust estab- ERTY.— itation on deduction for interest on certain in- (A)(i) Paragraph (1) of section 856(d) is debtedness) is amended by striking ‘‘and’’ at the lishes to the satisfaction of the Secretary that amended by striking ‘‘adjusted bases’’ in each end of subparagraph (A), by striking the period rents charged to tenants were established on an place that it occurs and inserting ‘‘fair market at the end of subparagraph (B) and inserting ‘‘, arms’ length basis even though a taxable REIT values’’ in each such place. and’’, and by adding at the end the following subsidiary of the trust provided services to such (ii) The amendment made by this paragraph new subparagraph: tenants. shall apply to taxable years beginning after De- ‘‘(C) any interest paid or accrued (directly or ‘‘(C) REDETERMINED DEDUCTIONS.—The term cember 31, 1999. indirectly) by a taxable REIT subsidiary (as de- ‘redetermined deductions’ means deductions (B)(i) Clause (i) of section 856(d)(2)(B) is fined in section 856(l)) of a real estate invest- (other than redetermined rents) of a taxable amended by striking ‘‘number’’ and inserting ment trust to such trust.’’. REIT subsidiary of a real estate investment ‘‘value’’. SEC. 1025. 100 PERCENT TAX ON IMPROPERLY AL- trust if the amount of such deductions would (ii) The amendment made by this paragraph LOCATED AMOUNTS. (but for subparagraph (E)) be decreased on dis- shall apply to amounts received or accrued in (a) IN GENERAL.—Subsection (b) of section 857 tribution, apportionment, or allocation under taxable years beginning after December 31, 1999, (relating to method of taxation of real estate in- section 482 to clearly reflect income as between except for amounts paid pursuant to leases in vestment trusts and holders of shares or certifi- such subsidiary and such trust. ‘‘(D) EXCESS INTEREST.—The term ‘excess in- effect on July 12, 1999 or pursuant to a binding cates of beneficial interest) is amended by redes- terest’ means any deductions for interest pay- contract in effect on such date and at all times ignating paragraphs (7) and (8) as paragraphs ments by a taxable REIT subsidiary of a real es- thereafter. (8) and (9), respectively, and by inserting after tate investment trust to such trust to the extent SEC. 1023. TAXABLE REIT SUBSIDIARY. paragraph (6) the following new paragraph: ‘‘(7) INCOME FROM REDETERMINED RENTS, RE- that the interest payments are in excess of a (a) IN GENERAL.—Section 856 is amended by DETERMINED DEDUCTIONS, AND EXCESS INTER- rate that is commercially reasonable. adding at the end the following new subsection: EST.— ‘‘(E) COORDINATION WITH SECTION 482.—The ‘‘(l) TAXABLE REIT SUBSIDIARY.—For pur- ‘‘(A) IMPOSITION OF TAX.—There is hereby im- imposition of tax under subparagraph (A) shall poses of this part— posed for each taxable year of the real estate in- be in lieu of any distribution, apportionment, or ‘‘(1) IN GENERAL.—The term ‘taxable REIT vestment trust a tax equal to 100 percent of rede- allocation under section 482. subsidiary’ means, with respect to a real estate termined rents, redetermined deductions, and ‘‘(F) REGULATORY AUTHORITY.—The Secretary investment trust, a corporation (other than a excess interest. shall prescribe such regulations as may be nec- real estate investment trust) if— ‘‘(B) REDETERMINED RENTS.— essary or appropriate to carry out the purposes ‘‘(A) such trust directly or indirectly owns ‘‘(i) IN GENERAL.—The term ‘redetermined of this paragraph. Until the Secretary prescribes stock in such corporation, and rents’ means rents from real property (as de- such regulations, real estate investment trusts ‘‘(B) such trust and such corporation jointly fined in subsection 856(d)) the amount of which and their taxable REIT subsidiaries may base elect that such corporation shall be treated as a would (but for subparagraph (E)) be reduced on their allocations on any reasonable method.’’. taxable REIT subsidiary of such trust for pur- distribution, apportionment, or allocation under (b) AMOUNT SUBJECT TO TAX NOT REQUIRED poses of this part. section 482 to clearly reflect income as a result TO BE DISTRIBUTED.—Subparagraph (E) of sec- Such an election, once made, shall be irrev- of services furnished or rendered by a taxable tion 857(b)(2) (relating to real estate investment ocable unless both such trust and corporation REIT subsidiary of the real estate investment trust taxable income) is amended by striking consent to its revocation. Such election, and trust to a tenant of such trust. ‘‘paragraph (5)’’ and inserting ‘‘paragraphs (5) any revocation thereof, may be made without ‘‘(ii) EXCEPTION FOR CERTAIN SERVICES.— and (7)’’. the consent of the Secretary. Clause (i) shall not apply to amounts received SEC. 1026. EFFECTIVE DATE. ‘‘(2) 35 PERCENT OWNERSHIP IN ANOTHER TAX- directly or indirectly by a real estate investment (a) IN GENERAL.—The amendments made by ABLE REIT SUBSIDIARY.—The term ‘taxable REIT trust for services described in paragraph (1)(B) this part shall apply to taxable years beginning subsidiary’ includes, with respect to any real es- or (7)(C)(i) of section 856(d). after December 31, 2000. tate investment trust, any corporation (other ‘‘(iii) EXCEPTION FOR DE MINIMIS AMOUNTS.— (b) TRANSITIONAL RULES RELATED TO SECTION than a real estate investment trust) with respect Clause (i) shall not apply to amounts described 1021.— S10044 CONGRESSIONAL RECORD — SENATE August 2, 1999

(1) EXISTING ARRANGEMENTS.— ‘‘(B) GRACE PERIOD.—In the case of a quali- PART IV—CLARIFICATION OF EXCEPTION (A) IN GENERAL.—Except as otherwise pro- fied health care property which is foreclosure FROM IMPERMISSIBLE TENANT SERVICE vided in this paragraph, the amendment made property solely by reason of subparagraph (A), INCOME by section 1021 shall not apply to a real estate in lieu of applying paragraphs (2) and (3)— SEC. 1051. CLARIFICATION OF EXCEPTION FOR investment trust with respect to— ‘‘(i) the qualified health care property shall INDEPENDENT OPERATORS. (i) securities of a corporation held directly or cease to be foreclosure property as of the close (a) IN GENERAL.—Paragraph (3) of section indirectly by such trust on July 12, 1999, of the second taxable year after the taxable year 856(d) (relating to independent contractor de- (ii) securities of a corporation held by an enti- in which such trust acquired such property, and fined) is amended by adding at the end the fol- ty on July 12, 1999, if such trust acquires control ‘‘(ii) if the real estate investment trust estab- lowing flush sentence: of such entity pursuant to a written binding lishes to the satisfaction of the Secretary that ‘‘In the event that any class of stock of either contract in effect on such date and at all times an extension of the grace period in clause (i) is the real estate investment trust or such person is thereafter before such acquisition, necessary to the orderly leasing or liquidation of regularly traded on an established securities (iii) securities received by such trust (or a suc- the trust’s interest in such qualified health care market, only persons who own, directly or indi- cessor) in exchange for, or with respect to, secu- property, the Secretary may grant 1 or more ex- rectly, more than 5 percent of such class of stock rities described in clause (i) or (ii) in a trans- tensions of the grace period for such qualified shall be taken into account as owning any of action in which gain or loss is not recognized, health care property. the stock of such class for purposes of applying and (iv) securities acquired directly or indirectly Any such extension shall not extend the grace the 35 percent limitation set forth in subpara- by such trust as part of a reorganization (as de- period beyond the close of the 6th year after the graph (B) (but all of the outstanding stock of fined in section 368(a)(1) of the Internal Rev- taxable year in which such trust acquired such such class shall be considered outstanding in enue Code of 1986) with respect to such trust if qualified health care property. order to compute the denominator for purpose of such securities are described in clause (i), (ii), or ‘‘(C) INCOME FROM INDEPENDENT CONTRAC- determining the applicable percentage of owner- (iii) with respect to any other real estate invest- TORS.—For purposes of applying paragraph ship).’’. (b) EFFECTIVE DATE.—The amendment made ment trust. (4)(C) with respect to qualified health care prop- erty which is foreclosure property by reason of by this section shall apply to taxable years be- Notwithstanding the preceding sentence, such subparagraph (A) or paragraph (1), income de- ginning after December 31, 2000. securities shall be taken into account in deter- rived or received by the trust from an inde- mining whether such trust fails to meet the re- PART V—MODIFICATION OF EARNINGS pendent contractor shall be disregarded to the AND PROFITS RULES quirements of section 856(c)(4)(B) of such Code extent such income is attributable to— SEC. 1061. MODIFICATION OF EARNINGS AND (as amended by such amendments) if such trust ‘‘(i) any lease of property in effect on the date acquires or receives securities to which the pre- PROFITS RULES. the real estate investment trust acquired the (a) RULES FOR DETERMINING WHETHER REGU- ceding sentence does not apply. qualified health care property (without regard (B) NEW TRADE OR BUSINESS OR SUBSTANTIAL LATED INVESTMENT COMPANY HAS EARNINGS AND to its renewal after such date so long as such re- NEW ASSETS.—Subparagraph (A) shall cease to PROFITS FROM NON-RIC YEAR.—Subsection (c) newal is pursuant to the terms of such lease as apply to securities of a corporation as of the of section 852 is amended by adding at the end in effect on such date), or first day after July 12, 1999, on which such cor- the following new paragraph: ‘‘(ii) any lease of property entered into after poration engages in a substantial new line of ‘‘(3) DISTRIBUTIONS TO MEET REQUIREMENTS such date if— business, or acquires any substantial asset, OF SUBSECTION (a)(2)(B).—Any distribution ‘‘(I) on such date, a lease of such property other than— which is made in order to comply with the re- from the trust was in effect, and (i) pursuant to a binding contract in effect on quirements of subsection (a)(2)(B)— such date and at all times thereafter before the ‘‘(II) under the terms of the new lease, such ‘‘(A) shall be treated for purposes of this sub- acquisition of such asset, trust receives a substantially similar or lesser section and subsection (a)(2)(B) as made from (ii) in a transaction in which gain or loss is benefit in comparison to the lease referred to in the earliest earnings and profits accumulated in not recognized by reason of section 1031 or 1033 subclause (I). any taxable year to which the provisions of this of the Internal Revenue Code of 1986, or ‘‘(D) QUALIFIED HEALTH CARE PROPERTY.— part did not apply rather than the most recently (iii) in a reorganization (as so defined) with ‘‘(i) IN GENERAL.—The term ‘qualified health accumulated earnings and profits, and another corporation the securities of which are care property’ means any real property (includ- ‘‘(B) to the extent treated under subparagraph described in paragraph (1)(A) of this subsection. ing interests therein), and any personal prop- (A) as made from accumulated earnings and (C) LIMITATION ON TRANSITION RULES.—Sub- erty incident to such real property, which— profits, shall not be treated as a distribution for paragraph (A) shall cease to apply to securities ‘‘(I) is a health care facility, or purposes of subsection (b)(2)(D) and section of a corporation held, acquired, or received, di- ‘‘(II) is necessary or incidental to the use of a 855.’’. rectly or indirectly, by a real estate investment health care facility. (b) CLARIFICATION OF APPLICATION OF REIT trust as of the first day after July 12, 1999, on ‘‘(ii) HEALTH CARE FACILITY.—For purposes of SPILLOVER DIVIDEND RULES TO DISTRIBUTIONS which such trust acquires any additional securi- clause (i), the term ‘health care facility’ means TO MEET QUALIFICATION REQUIREMENT.—Sub- ties of such corporation other than— a hospital, nursing facility, assisted living facil- paragraph (B) of section 857(d)(3) is amended by (i) pursuant to a binding contract in effect on ity, congregate care facility, qualified con- inserting before the period ‘‘and section 858’’. such date and at all times thereafter, or tinuing care facility (as defined in section (c) APPLICATION OF DEFICIENCY DIVIDEND (ii) in a reorganization (as so defined) with 7872(g)(4)), or other licensed facility which ex- PROCEDURES.—Paragraph (1) of section 852(e) is another corporation the securities of which are tends medical or nursing or ancillary services to amended by adding at the end the following described in paragraph (1)(A) of this subsection. patients and which, immediately before the ter- new sentence: ‘‘If the determination under sub- (2) TAX-FREE CONVERSION.—If— mination, expiration, default, or breach of the paragraph (A) is solely as a result of the failure (A) at the time of an election for a corporation lease of or mortgage secured by such facility, to meet the requirements of subsection (a)(2), the to become a taxable REIT subsidiary, the was operated by a provider of such services preceding sentence shall also apply for purposes amendment made by section 1021 does not apply which was eligible for participation in the medi- of applying subsection (a)(2) to the non-RIC to such corporation by reason of paragraph (1), care program under title XVIII of the Social Se- year.’’. and curity Act with respect to such facility.’’. (d) EFFECTIVE DATE.—The amendments made (B) such election first takes effect before Jan- (b) EFFECTIVE DATE.—The amendment made by this section shall apply to distributions after uary 1, 2004, by this section shall apply to taxable years be- December 31, 2000. such election shall be treated as a reorganiza- ginning after December 31, 2000. PART VI—STUDY RELATING TO TAXABLE tion qualifying under section 368(a)(1)(A) of PART III—CONFORMITY WITH REGULATED REIT SUBSIDIARIES such Code. INVESTMENT COMPANY RULES SEC. 1071. STUDY RELATING TO TAXABLE REIT SUBSIDIARIES. PART II—HEALTH CARE REITS SEC. 1041. CONFORMITY WITH REGULATED IN- The Commissioner of the Internal Revenue SEC. 1031. HEALTH CARE REITS. VESTMENT COMPANY RULES. shall conduct a study to determine how many (a) SPECIAL FORECLOSURE RULE FOR HEALTH (a) DISTRIBUTION REQUIREMENT.—Clauses (i) taxable REIT subsidiaries are in existence and CARE PROPERTIES.—Subsection (e) of section 856 and (ii) of section 857(a)(1)(A) (relating to re- the aggregate amount of taxes paid by such sub- (relating to special rules for foreclosure prop- quirements applicable to real estate investment sidiaries. The Secretary shall submit a report to erty) is amended by adding at the end the fol- trusts) are each amended by striking ‘‘95 percent the Congress describing the results of such lowing new paragraph: (90 percent for taxable years beginning before study. ‘‘(6) SPECIAL RULE FOR QUALIFIED HEALTH January 1, 1980)’’ and inserting ‘‘90 percent’’. CARE PROPERTIES.—For purposes of this (b) IMPOSITION OF TAX.—Clause (i) of section Subtitle D—Private Activity Bond Volume Cap subsection— 857(b)(5)(A) (relating to imposition of tax in case SEC. 1081. INCREASE IN VOLUME CAP ON PRI- ‘‘(A) ACQUISITION AT EXPIRATION OF LEASE.— of failure to meet certain requirements) is VATE ACTIVITY BONDS. The term ‘foreclosure property’ shall include amended by striking ‘‘95 percent (90 percent in (a) IN GENERAL.—The table contained in sec- any qualified health care property acquired by the case of taxable years beginning before Janu- tion 146(d)(2) (relating to per capita limit; aggre- a real estate investment trust as the result of the ary 1, 1980)’’ and inserting ‘‘90 percent’’. gate limit) is amended by striking ‘‘2002’’, termination of a lease of such property (other (c) EFFECTIVE DATE.—The amendments made ‘‘2003’’, ‘‘2004’’, ‘‘2005’’, ‘‘2006’’, and ‘‘2007’’ and than a termination by reason of a default, or by this section shall apply to taxable years be- inserting ‘‘2000’’, ‘‘2001’’, ‘‘2002’’, ‘‘2003’’, the imminence of a default, on the lease). ginning after December 31, 2000. ‘‘2004’’, and ‘‘2005’’, respectively. August 2, 1999 CONGRESSIONAL RECORD — SENATE S10045

(b) EFFECTIVE DATE.—The amendments made (1) TAXES ON TRAINS.— ‘‘(3) SPECIAL RULES WHERE TRANSFER RESTRIC- by this section shall apply to calendar years (A) IN GENERAL.—Subparagraph (A) of section TIONS MODIFIED.— after 2000. 4041(a)(1) is amended by striking ‘‘or a diesel- ‘‘(A) TRANSFER OF BENEFICIAL INTERESTS.—If, Subtitle E—Leasehold Improvements powered train’’ each place it appears and by at any time, a beneficial interest in a Settlement Depreciation striking ‘‘or train’’. Trust may be disposed of in a manner which (B) CONFORMING AMENDMENTS.— would not be permitted by section 7(h) of the SEC. 1091. RECOVERY PERIOD FOR DEPRECIA- (i) Subparagraph (C) of section 4041(a)(1) is TION OF CERTAIN LEASEHOLD IM- Alaska Native Claims Settlement Act (43 U.S.C. PROVEMENTS. amended by striking clause (ii) and by redesig- 1606(h)) if the interest were Settlement Common (a) 15-YEAR RECOVERY PERIOD.—Subpara- nating clause (iii) as clause (ii). Stock— graph (E) of section 168(e)(3) (relating to 15-year (ii) Subparagraph (C) of section 4041(b)(1) is ‘‘(i) no election may be made under paragraph property) is amended by striking ‘‘and’’ at the amended by striking all that follows ‘‘section (2)(A) with respect to such trust, and end of clause (ii), by striking the period at the 6421(e)(2)’’ and inserting a period. ‘‘(ii) if an election under paragraph (2)(A) is end of clause (iii) and inserting ‘‘, and’’, and by (iii) Paragraph (3) of section 4083(a) is amend- in effect as of such time— adding at the end the following new clause: ed by striking ‘‘or a diesel-powered train’’. ‘‘(I) such election is revoked as of the 1st day ‘‘(iv) any qualified leasehold improvement (iv) Section 6427(l) is amended by striking of the taxable year following the taxable year in property.’’. paragraph (3) and by redesignating paragraphs which such disposition is first permitted, and (b) QUALIFIED LEASEHOLD IMPROVEMENT (4) and (5) as paragraphs (3) and (4), respec- ‘‘(II) there is hereby imposed on such trust a PROPERTY.—Subsection (e) of section 168 is tively. tax equal to the product of the fair market value amended by adding at the end the following (2) FUEL USED ON INLAND WATERWAYS.— of the assets held by the trust as of the close of new paragraph: (A) IN GENERAL.—Paragraph (1) of section the taxable year in which such disposition is 4042(b) is amended by adding ‘‘and’’ at the end ‘‘(6) QUALIFIED LEASEHOLD IMPROVEMENT first permitted and the highest rate of tax under of subparagraph (A), by striking ‘‘, and’’ at the PROPERTY.— section 1(e) for such taxable year. end of subparagraph (B) and inserting a period, ‘‘(A) IN GENERAL.—The term ‘qualified lease- The tax imposed by clause (ii)(II) shall be in and by striking subparagraph (C). hold improvement property’ means any improve- lieu of any other tax imposed by this chapter for (B) CONFORMING AMENDMENT.—Paragraph (2) ment to an interior portion of a building which the taxable year. is nonresidential real property if— of section 4042(b) is amended by striking sub- paragraph (C). ‘‘(B) STOCK IN CORPORATION.—If— ‘‘(i) such improvement is made under or pur- ‘‘(i) the Settlement Common Stock in any Na- (b) EFFECTIVE DATE.—The amendments made suant to a lease (as defined in subsection tive Corporation which transferred assets to a (h)(7))— by this subsection shall take effect on October 1, 2000. Settlement Trust making an election under ‘‘(I) by the lessee (or any sublessee) of such paragraph (2)(A) may be disposed of in a man- portion, or SEC. 1102. TAX TREATMENT OF ALASKA NATIVE SETTLEMENT TRUSTS. ner not permitted by section 7(h) of the Alaska ‘‘(II) by the lessor of such portion, Native Claims Settlement Act (43 U.S.C. (a) TAX EXEMPTION.—Section 501(c), as ‘‘(ii) the original use of such improvement be- 1606(h)), and amended by section 801(a), is amended by add- gins with the lessee and after December 31, 2002, ‘‘(ii) at any time after such disposition of ‘‘(iii) such portion is to be occupied exclu- ing at the end the following new paragraph: stock is first permitted, such corporation trans- sively by the lessee (or any sublessee) of such ‘‘(29) A trust which— fers assets to such trust, portion, and ‘‘(A) constitutes a Settlement Trust under sec- clause (ii) of subparagraph (A) shall be applied ‘‘(iv) such improvement is placed in service tion 39 of the Alaska Native Claims Settlement to such trust on and after the date of the trans- more than 3 years after the date the building Act (43 U.S.C. 1629e), and fer in the same manner as if the trust permitted was first placed in service. ‘‘(B) with respect to which an election under dispositions of beneficial interests in the trust in ‘‘(B) CERTAIN IMPROVEMENTS NOT INCLUDED.— subsection (p)(2) is in effect.’’. a manner not permitted by such section 7(h). Such term shall not include any improvement (b) SPECIAL RULES RELATING TO TAXATION OF ‘‘(C) ADMINISTRATIVE PROVISIONS.—For pur- for which the expenditure is attributable to— ALASKA NATIVE SETTLEMENT TRUSTS.—Section ‘‘(i) the enlargement of the building, 501 is amended by redesignating subsection (p) poses of subtitle F, any tax imposed by subpara- ‘‘(ii) any elevator or escalator, as subsection (q) and by inserting after sub- graph (A)(ii)(II) shall be treated as an excise tax ‘‘(iii) any structural component benefiting a section (o) the following new subsection: with respect to which the deficiency procedures common area, and ‘‘(p) SPECIAL RULES FOR TAXATION OF ALASKA of such subtitle apply. ‘‘(iv) the internal structural framework of the NATIVE SETTLEMENT TRUSTS.— ‘‘(4) DISTRIBUTION REQUIREMENT ON ELECTING building. ‘‘(1) IN GENERAL.—For purposes of this title, SETTLEMENT TRUST.— ‘‘(C) DEFINITIONS AND SPECIAL RULES.—For the following rules shall apply in the case of a ‘‘(A) IN GENERAL.—If an election is in effect purposes of this paragraph— Settlement Trust: under paragraph (2) for any taxable year, a Set- ‘‘(i) COMMITMENT TO LEASE TREATED AS ‘‘(A) ELECTING TRUST.—If an election under tlement Trust shall distribute at least 55 percent LEASE.—A commitment to enter into a lease shall paragraph (2) is in effect for any taxable year— of its adjusted taxable income for such taxable be treated as a lease, and the parties to such ‘‘(i) no amount shall be includible in the gross year. commitment shall be treated as lessor and lessee, income of a beneficiary of the Settlement Trust ‘‘(B) TAX IMPOSED IF INSUFFICIENT DISTRIBU- respectively, if the lease is in effect at the time by reason of a contribution to the Settlement TION.—If a Settlement Trust fails to meet the the property is placed in service. Trust made during such taxable year, and distribution requirement of subparagraph (A) ‘‘(ii) RELATED PERSONS.—A lease between re- ‘‘(ii) except as provided in this subsection, the for any taxable year, then, notwithstanding lated persons shall not be considered a lease. provisions of subchapter J and section 1(e) shall subsection (c)(29), a tax shall be imposed on the For purposes of the preceding sentence, the term not apply to the Settlement Trust and its bene- trust under section 1(e) on an amount of taxable ‘related persons’ means— ficiaries for such taxable year. income equal to the amount of such failure. ‘‘(I) members of an affiliated group (as de- ‘‘(B) NONELECTING TRUST.—If an election is ‘‘(C) DESIGNATION OF DISTRIBUTION.—Solely fined in section 1504), and not in effect under paragraph (2) for any tax- for purposes of meeting the requirements of this ‘‘(II) persons having a relationship described able year, the provisions of subchapter J and paragraph, a Settlement Trust may elect to treat in subsection (b) of section 267(b) or 707(b)(1); section 1(e) shall apply to the Settlement Trust any distribution (or portion) during the 65-day except that, for purposes of this clause, the and its beneficiaries for such taxable year. period following the close of any taxable year as phrase ‘80 percent or more’ shall be substituted ‘‘(2) ONE-TIME ELECTION.— made on the last day of such taxable year. Any for the phrase ‘more than 50 percent’ each place ‘‘(A) IN GENERAL.—A Settlement Trust may such distribution (or portion) may not be taken it appears in such subsections.’’. elect to have the provisions of this subsection into account under this paragraph for any other (c) REQUIREMENT TO USE STRAIGHT LINE and subsection (c)(29) apply to the trust and its taxable year. METHOD.—Paragraph (3) of section 168(b) is beneficiaries. ‘‘(D) ADJUSTED TAXABLE INCOME.—For pur- amended by adding at the end the following ‘‘(B) TIME AND METHOD OF ELECTION.—An poses of this paragraph, the term ‘adjusted tax- new subparagraph: election under subparagraph (A) shall be able income’ means taxable income determined ‘‘(G) Qualified leasehold improvement prop- made— under section 641(b) without regard to any de- erty described in subsection (e)(6).’’. ‘‘(i) on or before the due date (including ex- duction under section 651 or 661. (d) EFFECTIVE DATE.—The amendments made tensions) for filing the Settlement Trust’s return ‘‘(5) TAX TREATMENT OF DISTRIBUTIONS TO by this section shall apply to qualified leasehold of tax for the 1st taxable year of the Settlement BENEFICIARIES.— improvement property placed in service after De- Trust ending after December 31, 1999, and ‘‘(A) ELECTING TRUST.—If an election is in ef- cember 31, 2002. ‘‘(ii) by attaching to such return of tax a fect under paragraph (2) for any taxable year, TITLE XI—MISCELLANEOUS PROVISIONS statement specifically providing for such elec- any distribution to a beneficiary shall be in- SEC. 1101. REPEAL OF CERTAIN MOTOR FUEL EX- tion. cluded in gross income of the beneficiary as or- CISE TAXES ON FUEL USED BY RAIL- ‘‘(C) PERIOD ELECTION IN EFFECT.—Except as dinary income. ROADS AND ON INLAND WATERWAY provided in paragraph (3), an election under ‘‘(B) NONELECTING TRUSTS.—Any distribution TRANSPORTATION. subparagraph (A)— to a beneficiary from a Settlement Trust not de- (a) REPEAL OF 4.3-CENT MOTOR FUEL EXCISE ‘‘(i) shall apply to the 1st taxable year de- scribed in subparagraph (A) shall be includible TAXES ON RAILROADS AND INLAND WATERWAY scribed in subparagraph (B)(i) and all subse- in income as provided under subchapter J. TRANSPORTATION WHICH REMAIN IN GENERAL quent taxable years, and ‘‘(C) EARNINGS AND PROFITS.—The earnings FUND.— ‘‘(ii) may not be revoked once it is made. and profits of any Native Corporation making a S10046 CONGRESSIONAL RECORD — SENATE August 2, 1999 contribution to a Settlement Trust shall not be ment to file any other form or schedule under ‘‘(A) the amount which would be the net oper- reduced on account thereof at the time of such this title with respect to distributive share infor- ating loss for the taxable year if only income contribution, but such earnings and profits mation (including any form or schedule to be in- and deductions attributable to operating min- shall be reduced (up to the amount of such con- cluded with the trust’s tax return).’’. eral interests (as defined in section 614(d)) in oil tribution) as distributions are thereafter made (e) EFFECTIVE DATE.—The amendments made and gas wells are taken into account, or by the Settlement Trust which exceed the sum by this section shall apply to taxable years of ‘‘(B) the amount of the net operating loss for of— Settlement Trusts ending after December 31, such taxable year. ‘‘(i) such Trust’s total undistributed net in- 1999, and to contributions to such trusts after ‘‘(2) COORDINATION WITH SUBSECTION (b)(2).— come for all prior years during which an elec- such date. For purposes of applying subsection (b)(2), an tion under paragraph (2) is in effect, and SEC. 1103. LONG-TERM UNUSED CREDITS AL- eligible oil and gas loss for any taxable year ‘‘(ii) such Trust’s distributable net income. LOWED AGAINST MINIMUM TAX. shall be treated in a manner similar to the man- ‘‘(6) DEFINITIONS.—For purposes of this (a) IN GENERAL.—Subsection (c) of section 53 ner in which a specified liability loss is treated. subsection— (relating to limitation) is amended by adding at ‘‘(3) ELECTION.—Any taxpayer entitled to a 5- ‘‘(A) NATIVE CORPORATION.—The term ‘Native the end the following: year carryback under subsection (b)(1)(H) from Corporation’ has the meaning given such term ‘‘(2) SPECIAL RULE FOR CORPORATIONS WITH any loss year may elect to have the carryback by section 3(m) of the Alaska Native Claims Set- LONG-TERM UNUSED CREDITS.— period with respect to such loss year determined tlement Act (43 U.S.C. 1602(m)). ‘‘(A) IN GENERAL.—If— without regard to subsection (b)(1)(H).’’. ‘‘(B) SETTLEMENT TRUST.—The term ‘Settle- ‘‘(i) a corporation to which section 56(g) ap- (c) EFFECTIVE DATE.—The amendments made ment Trust’ means a trust which constitutes a plies has a long-term unused minimum tax credit by this section shall apply to net operating Settlement Trust under section 39 of the Alaska for a taxable year, and losses for taxable years beginning after Decem- Native Claims Settlement Act (43 U.S.C. ‘‘(ii) no credit would be allowable under this ber 31, 1998. section for the taxable year by reason of para- 1629e).’’. SEC. 1105. ELECTION TO EXPENSE GEOLOGICAL (c) WITHHOLDING ON DISTRIBUTIONS BY ELECT- graph (1), AND GEOPHYSICAL EXPENDITURES. ING ANCSA SETTLEMENT TRUSTS.—Section 3402 then there shall be allowed a credit under sub- (a) IN GENERAL.—Section 263 (relating to cap- is amended by adding at the end the following section (a) for the taxable year in the amount ital expenditures) is amended by adding at the new subsection: determined under subparagraph (B). end the following: ‘‘(t) TAX WITHHOLDING ON DISTRIBUTIONS BY ‘‘(B) AMOUNT OF CREDIT.—For purposes of ‘‘(j) GEOLOGICAL AND GEOPHYSICAL EXPENDI- ELECTING ANCSA SETTLEMENT TRUSTS.— subparagraph (A), the amount of the credit TURES FOR DOMESTIC OIL AND GAS WELLS.—Not- ‘‘(1) IN GENERAL.—Any Settlement Trust (as shall be equal to the least of the following for withstanding subsection (a), a taxpayer may defined in section 501(p)(6)(B)) which is exempt the taxable year: elect to treat geological and geophysical ex- from income tax under section 501(c)(29) (in this ‘‘(i) The long-term unused minimum tax cred- penses incurred in connection with the explo- subsection referred to as an ‘electing trust’) and it. ration for, or development of, oil or gas within which makes a payment to any beneficiary shall ‘‘(ii) 50 percent of the taxpayer’s tentative the United States (as defined in section 638) as deduct and withhold from such payment a tax minimum tax. expenses which are not chargeable to capital ac- ‘‘(iii) The excess (if any) of the amount under in an amount equal to such payment’s propor- count. Any expenses so treated shall be allowed paragraph (1)(B) over the amount under para- tionate share of the annualized tax. as a deduction in the taxable year in which paid graph (1)(A). ‘‘(2) EXCEPTION.—The tax imposed by para- or incurred.’’. ‘‘(C) LONG-TERM UNUSED MINIMUM TAX CRED- graph (1) shall not apply to any payment to the (b) CONFORMING AMENDMENT.—Section IT.—For purposes of this paragraph— extent that such payment, when annualized, 263A(c)(3) is amended by inserting ‘‘263(j),’’ ‘‘(i) IN GENERAL.—The long-term unused min- does not exceed an amount equal to the amount after ‘‘263(i),’’. in effect under section 6012(a)(1)(A)(i) for tax- imum tax credit for any taxable year is the por- tion of the minimum tax credit determined under (c) EFFECTIVE DATE.—The amendments made able years beginning in the calendar year in by this section shall apply to expenses paid or which the payment is made. subsection (b) attributable to the adjusted net minimum tax for taxable years beginning after incurred in taxable years beginning after De- ‘‘(3) ANNUALIZED TAX.—For purposes of para- cember 31, 1999. graph (1), the term ‘annualized tax’ means, with 1986 and ending before the 5th taxable year im- respect to any payment, the amount of tax mediately preceding the taxable year for which SEC. 1106. ELECTION TO EXPENSE DELAY RENTAL PAYMENTS which would be imposed by section 1(c) (deter- the determination is being made. (a) IN GENERAL.—Section 263 (relating to cap- mined without regard to any rate of tax in ex- ‘‘(ii) FIRST-IN, FIRST-OUT ORDERING RULE.— ital expenditures), as amended by section cess of 31 percent) on an amount of taxable in- For purposes of clause (i), credits shall be treat- 1105(a), is amended by adding at the end the come equal to the excess of— ed as allowed under subsection (a) on a first-in, following: ‘‘(A) the annualized amount of such payment, first-out basis.’’. ‘‘(k) DELAY RENTAL PAYMENTS FOR DOMESTIC over (b) CONFORMING AMENDMENTS.—Section 53(c) ‘‘(B) the amount determined under paragraph (as in effect before the amendment made by sub- OIL AND GAS WELLS.— (2). section (a)) is amended— ‘‘(1) IN GENERAL.—Notwithstanding subsection (a), a taxpayer may elect to treat delay rental ‘‘(4) ANNUALIZATION.—For purposes of this (1) by striking ‘‘The’’ and inserting the fol- subsection, amounts shall be annualized in the lowing: payments incurred in connection with the devel- manner prescribed by the Secretary. ‘‘(1) IN GENERAL.—The’’; and opment of oil or gas within the United States (as ‘‘(5) ALTERNATE WITHHOLDING PROCEDURES.— (2) by redesignating paragraphs (1) and (2) as defined in section 638) as payments which are At the election of an electing trust, the tax im- subparagraphs (A) and (B), respectively. not chargeable to capital account. Any pay- posed by this subsection on any payment made (c) EFFECTIVE DATE.—The amendments made ments so treated shall be allowed as a deduction by such trust shall be determined in accordance by this section shall apply to taxable years be- in the taxable year in which paid or incurred. with such tables or computational procedures as ginning after December 31, 2003. ‘‘(2) DELAY RENTAL PAYMENTS.—For purposes may be specified in regulations prescribed by the SEC. 1104. 5-YEAR NET OPERATING LOSS of paragraph (1), the term ‘delay rental pay- Secretary (in lieu of in accordance with para- CARRYBACK FOR LOSSES ATTRIB- ment’ means an amount paid for the privilege of UTABLE TO OPERATING MINERAL IN- deferring development of an oil or gas well.’’. graphs (2) and (3)). TERESTS OF INDEPENDENT OIL AND ‘‘(6) COORDINATION WITH OTHER SECTIONS.— (b) CONFORMING AMENDMENT.—Section GAS PRODUCERS. 263A(c)(3), as amended by section 1105(b), is For purposes of this chapter and so much of (a) IN GENERAL.—Paragraph (1) of section amended by inserting ‘‘263(k),’’ after ‘‘263(j),’’. subtitle F as relates to this chapter, payments 172(b) (relating to years to which loss may be (c) EFFECTIVE DATE.—The amendments made which are subject to withholding under this carried) is amended by adding at the end the subsection shall be treated as if they were wages by this section shall apply to payments made or following new subparagraph: incurred in taxable years beginning after De- paid by an employer to an employee.’’. ‘‘(H) LOSSES ON OPERATING MINERAL INTER- cember 31, 1999. (d) REPORTING.—Section 6041 is amended by ESTS OF INDEPENDENT OIL AND GAS PRODUCERS.— adding at the end the following new subsection: In the case of a taxpayer— SEC. 1107. MODIFICATION OF ACTIVE BUSINESS ‘‘(f) APPLICATION TO ALASKA NATIVE SETTLE- ‘‘(i) which has an eligible oil and gas loss (as DEFINITION UNDER SECTION 355. MENT TRUSTS.—In the case of any distribution defined in subsection (j)) for a taxable year, and (a) IN GENERAL.—Section 355(b) (defining ac- from a Settlement Trust (as defined in section ‘‘(ii) which is not an integrated oil company tive conduct of a trade or business) is amended 501(p)(6)(B)) to a beneficiary, this section shall (as defined in section 291(b)(4)), by adding at the end the following new para- apply, except that— such eligible oil and gas loss shall be a net oper- graph: ‘‘(1) this section shall apply to such distribu- ating loss carryback to each of the 5 taxable ‘‘(3) SPECIAL RULES RELATING TO ACTIVE BUSI- tion without regard to the amount thereof, years preceding the taxable year of such loss.’’. NESS REQUIREMENT.— ‘‘(2) the Settlement Trust shall include on any (b) ELIGIBLE OIL AND GAS LOSS.—Section 172 ‘‘(A) IN GENERAL.—For purposes of deter- return or statement required by this section in- is amended by redesignating subsection (j) as mining whether a corporation meets the require- formation as to the character of such distribu- subsection (k) and by inserting after subsection ment of paragraph (2)(A), all members of such tion (if applicable) and the amount of tax im- (i) the following new subsection: corporation’s separate affiliated group shall be posed by chapter 1 which has been deducted ‘‘(j) ELIGIBLE OIL AND GAS LOSS.—For pur- treated as 1 corporation. For purposes of the and withheld from such distribution, and poses of this section— preceding sentence, a corporation’s separate af- ‘‘(3) the filing of any return or statement re- ‘‘(1) IN GENERAL.—The term ‘eligible oil and filiated group is the affiliated group which quired by this section shall satisfy any require- gas loss’ means the lesser of— would be determined under section 1504(a) if August 2, 1999 CONGRESSIONAL RECORD — SENATE S10047 such corporation were the common parent and than 30 days after the date of the enactment of solely by operation of section 1504(c)(2) of such section 1504(b) did not apply. this Act. Code (as in effect on the day before the date of ‘‘(B) CONTROL.—For purposes of paragraph SEC. 1110. INCREASE IN THRESHOLD FOR JOINT the enactment of this Act). (2)(D), all distributee corporations which are COMMITTEE REPORTS ON REFUNDS SEC. 1114. EXPANSION OF EXEMPTION FROM PER- members of the same affiliated group (as defined AND CREDITS. SONAL HOLDING COMPANY TAX FOR in section 1504(a) without regard to section (a) GENERAL RULE.—Subsections (a) and (b) LENDING OR FINANCE COMPANIES. 1504(b)) shall be treated as 1 distributee corpora- of section 6405 are each amended by striking (a) IN GENERAL.—Paragraph (6) of section tion.’’. ‘‘$1,000,000’’ and inserting ‘‘$2,000,000’’. 542(c) (defining personal holding company) is (b) CONFORMING AMENDMENTS.— (b) EFFECTIVE DATE.—The amendment made amended— (1) Subparagraph (A) of section 355(b)(2) is by subsection (a) shall take effect on the date of (1) by striking ‘‘rents,’’ in subparagraph (B), amended to read as follows: the enactment of this Act, except that such and ‘‘(A) it is engaged in the active conduct of a amendment shall not apply with respect to any (2) by adding ‘‘and’’ at the end of subpara- trade or business,’’. refund or credit with respect to a report that graph (B), (2) Section 355(b)(2) is amended by striking the has been made before such date of enactment (3) by striking subparagraph (C), and last sentence. under section 6405 of the Internal Revenue Code (4) by redesignating subparagraph (D) as sub- (c) EFFECTIVE DATE.— of 1986. paragraph (C). (1) IN GENERAL.—The amendments made by SEC. 1111. MODIFICATION OF RURAL AIRPORT (b) EXCEPTION FOR LENDING OR FINANCE COM- this section shall apply to distributions after the DEFINITION. PANIES DETERMINED ON AFFILIATED GROUP date of the enactment of this Act. (a) IN GENERAL.—Clause (ii) of section BASIS.—Subsection (d) of section 542 is amended (2) TRANSITION RULE.—The amendments made 4261(e)(1)(B) (defining rural airport) is amended by striking paragraphs (1) and (2) and inserting by this section shall not apply to any distribu- by striking the period at the end of subclause the following new paragraphs: tion pursuant to a transaction which is— (II) and inserting ‘‘, or’’, and by adding at the ‘‘(1) LENDING OR FINANCE BUSINESS DEFINED.— (A) made pursuant to an agreement which end the following new subclause: For purposes of subsection (c)(6), the term ‘lend- was binding on such date and at all times there- ‘‘(III) is not connected by paved roads to an- ing or finance business’ means a business of— after, other airport.’’. ‘‘(A) making loans, (B) described in a ruling request submitted to FFECTIVE DATE.—The amendments made (b) E ‘‘(B) purchasing or discounting accounts re- the Internal Revenue Service on or before such by this section shall apply to calendar years be- ceivable, notes, or installment obligations, date, or ginning after 1999. ‘‘(C) engaging in leasing (including entering (C) described on or before such date in a pub- SEC. 1112. PAYMENT OF DIVIDENDS ON STOCK OF lic announcement or in a filing with the Securi- into leases and purchasing, servicing, and dis- COOPERATIVES WITHOUT REDUCING posing of leases and leased assets), ties and Exchange Commission. PATRONAGE DIVIDENDS. ‘‘(D) rendering services or making facilities (3) ELECTION TO HAVE AMENDMENTS APPLY.— (a) IN GENERAL.—Subsection (a) of section Paragraph (2) shall not apply if the distributing 1388 (relating to patronage dividend defined) is available in the ordinary course of a lending or corporation elects not to have such paragraph amended by adding at the end the following: finance business. apply to distributions of such corporation. Any ‘‘For purposes of paragraph (3), net earnings ‘‘(E) rendering services or making facilities such election, once made, shall be irrevocable. shall not be reduced by amounts paid during the available in connection with activities described in subparagraphs (A), (B), and (C) carried on SEC. 1108. TEMPORARY SUSPENSION OF MAX- year as dividends on capital stock or other pro- IMUM AMOUNT OF AMORTIZABLE RE- prietary capital interests of the organization to by the corporation rendering services or making FORESTATION EXPENDITURES. the extent that the articles of incorporation or facilities available, or (a) INCREASE IN DOLLAR LIMITATION.—Para- bylaws of such organization or other contract ‘‘(F) rendering services or making facilities graph (1) of section 194(b) (relating to amortiza- with patrons provide that such dividends are in available to another corporation which is en- tion of reforestation expenditures) is amended addition to amounts otherwise payable to pa- gaged in the lending or finance business (within by striking ‘‘$10,000 ($5,000’’ and inserting trons which are derived from business done with the meaning of this paragraph), if such services ‘‘$25,000 ($12,500’’. or for patrons during the taxable year.’’. or facilities are related to the lending or finance (b) TEMPORARY SUSPENSION OF INCREASED (b) EFFECTIVE DATE.—The amendment made business (within such meaning) of such other DOLLAR LIMITATION.—Subsection (b) of section by this section shall apply to distributions in corporation and such other corporation and the 194(b) (relating to amortization of reforestation taxable years beginning after the date of the en- corporation rendering services or making facili- expenditures) is amended by adding at the end actment of this Act. ties available are members of the same affiliated group (as defined in section 1504). the following new paragraph: SEC. 1113. CONSOLIDATION OF LIFE INSURANCE ‘‘(5) SUSPENSION OF DOLLAR LIMITATION.— COMPANIES WITH OTHER CORPORA- ‘‘(2) EXCEPTION DETERMINED ON AN AFFILI- Paragraph (1) shall not apply to taxable years TIONS. ATED GROUP BASIS.—In the case of a lending or beginning after December 31, 1999, and before (a) IN GENERAL.—Section 1504(b) (defining in- finance company which is a member of an affili- January 1, 2004. cludible corporation) is amended by striking ated group (as defined in section 1504), such (c) CONFORMING AMENDMENT.—Paragraph (1) paragraph (2). company shall be treated as meeting the require- of section 48(b) is amended by striking ‘‘section (b) CONFORMING AMENDMENTS.— ments of subsection (c)(6) if such group (deter- 194(b)(1)’’ and inserting ‘‘section 194(b)(1) and (1) Section 1504 is amended by striking sub- mined by taking into account only members of without regard to section 194(b)(5)’’. section (c) and by redesignating subsections (d), such group which are engaged in a lending or (d) EFFECTIVE DATE.—The amendments made (e), and (f) as subsections (c), (d), and (e), re- finance business) meets such requirements.’’. by this section shall apply to taxable years be- spectively. (c) EFFECTIVE DATE.—The amendments made ginning after December 31, 1999. (2) Section 1503(c)(1) (relating to special rule by this section shall apply to taxable years end- SEC. 1109. MODIFICATION OF EXCISE TAX IM- for application of certain losses against income ing after December 31, 1999. POSED ON ARROW COMPONENTS. of insurance companies taxed under section 801) SEC. 1115. CREDIT FOR MODIFICATIONS TO (a) IN GENERAL.—Paragraph (2) of section is amended by striking ‘‘an election under sec- INTER-CITY BUSES REQUIRED 4161(b) (relating to bows and arrows, etc.) is tion 1504(c)(2) is in effect for the taxable year UNDER THE AMERICANS WITH DIS- amended to read as follows: and’’. ABILITIES ACT OF 1990. ‘‘(2) ARROWS.— (c) EFFECTIVE DATE.—The amendments made (a) IN GENERAL.—Subsection (a) of section 44 ‘‘(A) IN GENERAL.—There is hereby imposed on by this section shall apply to taxable years be- (relating to expenditures to provide access to the sale by the manufacturer, producer, or im- ginning after December 31, 2000. disabled individuals) is amended to read as fol- porter of any shaft, point, article used to attach (d) NO CARRYBACK BEFORE JANUARY 1, 2001.— lows: a point to a shaft, nock, or vane of a type used To the extent that a consolidated net operating ‘‘(a) GENERAL RULE.—For purposes of section in the manufacture of any arrow which after its loss is allowed or increased by reason of the 38, the amount of the disabled access credit de- assembly— amendments made by this section, such loss may termined under this section for any taxable year ‘‘(i) measures 18 inches overall or more in not be carried back to a taxable year beginning shall be an amount equal to the sum of— length, or before January 1, 2001. ‘‘(1) in the case of an eligible small business, ‘‘(ii) measures less than 18 inches overall in (e) NONTERMINATION OF GROUP.—No affiliated 50 percent of so much of the eligible access ex- length but is suitable for use with a bow de- group shall terminate solely as a result of the penditures for the taxable year as exceed $250 scribed in paragraph (1)(A), amendments made by this section. but do not exceed $10,250, and a tax equal to 12.4 percent of the price for which (f) WAIVER OF 5-YEAR WAITING PERIOD.— ‘‘(2) 50 percent of so much of the eligible bus so sold. Under regulations prescribed by the Secretary of access expenditures for the taxable year with re- ‘‘(B) REDUCED RATE ON CERTAIN HUNTING the Treasury or his delegate, an automatic spect to each eligible bus as exceed $250 but do POINTS.—Subparagraph (A) shall be applied by waiver from the 5-year waiting period for re- not exceed $30,250.’’. substituting ‘11 percent’ for ‘12.4 percent’ in the consolidation provided in section 1504(a)(3) of (b) ELIGIBLE BUS ACCESS EXPENDITURES.— case of a point which is designed primarily for the Internal Revenue Code of 1986 shall be Section 44 is amended by redesignating sub- use in hunting fish or large animals.’’. granted to any corporation which was pre- sections (d) and (e) as subsections (e) and (f), (b) EFFECTIVE DATE.—The amendment made viously an includible corporation but was subse- respectively, and by inserting after subsection by this section shall apply to articles sold by the quently deemed a nonincludible corporation as (c) the following new subsection: manufacturer, producer, or importer after the a result of becoming a subsidiary of a corpora- ‘‘(d) ELIGIBLE BUS ACCESS EXPENDITURES.— close of the first calendar month ending more tion which was not an includible corporation For purposes of this section— S10048 CONGRESSIONAL RECORD — SENATE August 2, 1999

‘‘(1) IN GENERAL.—The term ‘eligible bus ac- (C) AGGREGATE FACE AMOUNT OF TAX-EXEMPT property) is amended by redesignating clause cess expenditures’ means amounts paid or in- FINANCING.— (ii) as clause (iii) and by inserting after clause curred by the taxpayer for the purpose of ena- (i) IN GENERAL.—The aggregate face amount (i) the following new clause: bling the taxpayer’s eligible bus to comply with of bonds issued pursuant to this section shall ‘‘(ii) any natural gas gathering line, and’’. applicable requirements under the Americans not exceed $15,000,000,000, determined without (b) NATURAL GAS GATHERING LINE.—Sub- With Disabilities Act of 1990 (as in effect on the regard to any bond the proceeds of which are section (i) of section 168 is amended by adding date of the enactment of this subsection). used exclusively to refund (other than to ad- at the end the following new paragraph: ‘‘(2) CERTAIN EXPENDITURES NOT INCLUDED.— vance refund) a bond issued pursuant to this ‘‘(15) NATURAL GAS GATHERING LINE.—The The amount of eligible bus access expenditures section (or a bond which is a part of a series of term ‘natural gas gathering line’ means— otherwise taken into account under subsection refundings of a bond so issued) if the amount of ‘‘(A) the pipe, equipment, and appurtenances (a)(2) shall be reduced to the extent that funds the refunding bond does not exceed the out- determined to be a gathering line by the Federal for such expenditures are received under any standing amount of the refunded bond. Energy Regulatory Commission, or Federal, State, or local program. (ii) ALLOCATION.—The Secretary of Transpor- ‘‘(B) the pipe, equipment, and appurtenances ‘‘(3) ELIGIBLE BUS.—The term ‘eligible bus’ tation, in consultation with the Secretary of the used to deliver natural gas from the wellhead or means any automobile bus eligible for a refund Treasury, shall allocate the amount described in a common point to the point at which such gas under section 6427(b) by reason of transpor- clause (i) among the eligible pilot projects des- first reaches— tation described in section 6427(b)(1)(A).’’. ignated under subparagraph (B). ‘‘(i) a gas processing plant, (c) EFFECTIVE DATE.—The amendments made (iii) REALLOCATION.—If any portion of an al- ‘‘(ii) an interconnection with a transmission by this section shall apply to taxable years be- location under clause (ii) is unused on the date pipeline certificated by the Federal Energy Reg- ginning after December 31, 1999, and before Jan- which is 3 years after such allocation, the Sec- ulatory Commission as an interstate trans- uary 1, 2012. retary of Transportation, in consultation with mission pipeline, ‘‘(iii) an interconnection with an intrastate SEC. 1116. INCREASED DEDUCTIBILITY OF BUSI- the Secretary of the Treasury, may reallocate NESS MEAL EXPENSES FOR INDIVID- such portion among the remaining eligible pilot transmission pipeline, or UALS SUBJECT TO FEDERAL LIMITA- projects. ‘‘(iv) a direct interconnection with a local dis- TIONS ON HOURS OF SERVICE. (c) REPORT.— tribution company, a gas storage facility, or an The table in section 274(n)(3)(B) (relating to (1) IN GENERAL.—Not later than the earlier industrial consumer.’’. special rule for individuals subject to Federal of— (c) EFFECTIVE DATE.—The amendments made hours of service) is amended— (A) 1 year after either 1⁄2 of the projects au- by this section shall apply to property placed in (1) by striking ‘‘or 2007’’, and thorized under this section have been identified service on or after the date of the enactment of (2) by striking ‘‘2008’’ and inserting ‘‘2007’’. or 1⁄2 of the total bonds allowable for the this Act. SEC. 1117. TAX-EXEMPT FINANCING OF QUALI- projects under this section have been issued, or SEC. 1121. EXEMPTION FROM TICKET TAXES FOR FIED HIGHWAY INFRASTRUCTURE (B) 7 years after the date of the enactment of CERTAIN TRANSPORTATION PRO- CONSTRUCTION. this Act, VIDED BY SMALL SEAPLANES. (a) TREATMENT AS EXEMPT FACILITY BOND.— the Secretary of Transportation, in consultation (a) IN GENERAL.—Section 4281 (relating to A bond described in subsection (b) shall be treat- with the Secretary of the Treasury, shall submit small aircraft on nonestablished lines) is amend- ed as described in section 141(e)(1)(A) of the In- the report described in paragraph (2) to the ed to read as follows: ternal Revenue Code of 1986, except that— Committees on Finance and on Environment ‘‘SEC. 4281. SMALL AIRCRAFT. (1) section 146 of such Code shall not apply to and Public Works of the Senate and the Com- ‘‘The taxes imposed by sections 4261 and 4271 such bond, and mittees on Ways and Means and on Transpor- shall not apply to— (2) section 147(c)(1) of such Code shall be ap- tation and Infrastructure of the House of Rep- ‘‘(1) transportation by an aircraft having a plied by substituting ‘‘any portion of’’ for ‘‘25 resentatives. maximum certificated takeoff weight of 6,000 percent or more’’. (2) CONTENTS.—The report under paragraph pounds or less, except when such aircraft is op- (b) BOND DESCRIBED.— (1) shall evaluate the overall success of the pro- erated on an established line, and (1) IN GENERAL.—A bond is described in this gram conducted pursuant to this section, ‘‘(2) transportation by a seaplane having a subsection if such bond is issued after December including— maximum certificated takeoff weight of 6,000 31, 1999, as part of an issue— (A) a description of each project under the pounds or less with respect to any segment con- (A) 95 percent or more of the net proceeds of program, sisting of a takeoff from, and a landing on, which are to be used to provide a qualified high- (B) the extent to which the projects used new water. way infrastructure project, and technologies, construction techniques, or inno- For purposes of the preceding sentence, the term (B) to which there has been allocated a por- vative cost controls that resulted in savings in ‘maximum certificated takeoff weight’ means the tion of the allocation to the project under para- building the project, and maximum such weight contained in the type cer- graph (2)(C)(ii) which is equal to the aggregate (C) the use and efficiency of the Federal tax tificate or airworthiness certificate.’’. face amount of bonds to be issued as part of subsidy provided by the bond financing. (b) CLERICAL AMENDMENT.—The table of sec- such issue. SEC. 1118. EXPANSION OF DC HOMEBUYER TAX tions for part III of subchapter C of chapter 33 (2) QUALIFIED HIGHWAY INFRASTRUCTURE CREDIT. is amended by striking ‘‘on nonestablished PROJECTS.— (a) EXTENSION.—Section 1400C(i) (relating to lines’’ in the item relating to section 4281. (A) IN GENERAL.—For purposes of paragraph application of section) is amended by striking (c) EFFECTIVE DATE.—The amendments made (1), the term ‘‘qualified highway infrastructure ‘‘2001’’ and inserting ‘‘2002’’. by this section shall take effect on the date of project’’ means a project— (b) EXPANSION OF INCOME LIMITATION.—Sec- the enactment of this Act but shall not apply to (i) for the construction or reconstruction of a tion 1400C(b)(1) (relating to limitation based on any amount paid on or before such date with re- highway, and modified adjusted gross income) is amended— spect to taxes imposed by sections 4261 and 4271 (ii) designated under subparagraph (B) as an (1) by striking ‘‘$110,000’’ in subparagraph of the Internal Revenue Code of 1986. eligible pilot project. (A)(i) and inserting ‘‘$140,000’’, and SEC. 1122. NO FEDERAL INCOME TAX ON (B) ELIGIBLE PILOT PROJECT.— (2) by inserting ‘‘($40,000 in the case of a joint AMOUNTS AND LANDS RECEIVED BY (i) IN GENERAL.—The Secretary of Transpor- return)’’ after ‘‘$20,000’’ in subparagraph (B). HOLOCAUST VICTIMS OR THEIR tation, in consultation with the Secretary of the (c) EFFECTIVE DATE.—The amendments made HEIRS. Treasury, shall select not more than 15 highway by this section shall apply to taxable years be- (a) IN GENERAL.—For purposes of the Internal infrastructure projects to be pilot projects eligi- ginning after December 31, 1999. Revenue Code of 1986, gross income shall not ble for tax-exempt financing. SEC. 1119. EXTENSION OF DC ZERO PERCENT include— (ii) ELIGIBILITY CRITERIA.—In determining the CAPITAL GAINS RATE. (1) any amount received by an individual (or criteria necessary for the eligibility of pilot (a) IN GENERAL.—Section 1400B (relating to any heir of the individual)— projects, the Secretary of Transportation shall zero percent capital gains rate) is amended by (A) from the Swiss Humanitarian Fund estab- include the following: adding at the end the following new subsection: lished by the Government of Switzerland or from (I) The project must serve the general public. ‘‘(h) EXTENSION TO ENTIRE DISTRICT OF CO- any similar fund established by any foreign (II) The project is necessary to evaluate the LUMBIA.—In determining whether any stock or country, or potential of the private sector’s participation in partnership interest which is originally issued (B) as a result of the settlement of the action the provision of the highway infrastructure of after December 31, 1999, or any tangible prop- entitled ‘‘In re Holocaust Victims’ Asset Litiga- the United States. erty acquired by the taxpayer by purchase after tion’’, (E.D. NY), C.A. No. 96–4849, or as a result (III) The project must be located on publicly- December 31, 1999, is a DC Zone asset, sub- of any similar action; and owned rights-of-way. section (d) shall be applied without regard to (2) the value of any land (including structures (IV) The project must be publicly owned or paragraph (2) thereof.’’. thereon) recovered by an individual (or any heir the ownership of the highway constructed or re- (b) EFFECTIVE DATE.—The amendment made of the individual) from a government of a for- constructed under the project must revert to the by this section shall take effect on January 1, eign country as a result of a settlement of a public. 2000. claim arising out of the confiscation of such (V) The project must be consistent with a SEC. 1120. NATURAL GAS GATHERING LINES land in connection with the Holocaust. transportation plan developed pursuant to sec- TREATED AS 7-YEAR PROPERTY. (b) EFFECTIVE DATE.—This section shall apply tion 134(g) or 135(e) of title 23, United States (a) IN GENERAL.—Subparagraph (C) of section to any amount received before, on, or after the Code. 168(e)(3) (relating to classification of certain date of the enactment of this Act. August 2, 1999 CONGRESSIONAL RECORD — SENATE S10049

SEC. 1123. 2-PERCENT FLOOR ON MISCELLA- ‘‘(B) SPECIAL RULE FOR HOMESCHOOLING.— business credit), as amended by this Act, is NEOUS ITEMIZED DEDUCTIONS NOT Such term shall include expenses described in amended by striking ‘‘plus’’ at the end of para- TO APPLY TO QUALIFIED PROFES- subparagraph (A) in connection with education graph (12), by striking the period at the end of SIONAL DEVELOPMENT EXPENSES provided by homeschooling if the requirements paragraph (13) and inserting ‘‘, plus’’, and by AND QUALIFIED INCIDENTAL EX- PENSES OF ELEMENTARY AND SEC- of any applicable State or local law are met with adding at the end the following: ONDARY SCHOOL TEACHERS. respect to such education.’’. ‘‘(14) the computer donation credit determined (a) QUALIFIED PROFESSIONAL DEVELOPMENT (3) EFFECTIVE DATE.—The amendments made under section 45E(a).’’. EXPENSES DEDUCTION.— by this section shall apply to taxable years be- (c) DISALLOWANCE OF DEDUCTION BY AMOUNT (1) IN GENERAL.—Section 67(b) (defining mis- ginning after December 31, 2000, and ending be- OF CREDIT.—Section 280C (relating to certain cellaneous itemized deductions) is amended by fore December 31, 2004. expenses for which credits are allowable) is striking ‘‘and’’ at the end of paragraph (11), by SEC. 1124. EXPANSION OF DEDUCTION FOR COM- amended by adding at the end the following: striking the period at the end of paragraph (12) PUTER DONATIONS TO SCHOOLS. ‘‘(d) CREDIT FOR COMPUTER DONATIONS.—No and inserting ‘‘, and’’, and by adding at the end (a) EXTENSION OF AGE OF ELIGIBLE COM- deduction shall be allowed for that portion of the following new paragraph: PUTERS.—Section 170(e)(6)(B)(ii) (defining quali- the qualified computer contributions (as defined ‘‘(13) any deduction allowable for the quali- fied elementary or secondary educational con- in section 45E(b)) made during the taxable year fied professional development expenses of an eli- tribution) is amended— that is equal to the amount of credit determined gible teacher.’’. (1) by striking ‘‘2 years’’ and inserting ‘‘3 for the taxable year under section 45E(a). In the (2) DEFINITIONS.—Section 67 (relating to 2-per- years’’, and case of a corporation which is a member of a cent floor on miscellaneous itemized deductions) (2) by inserting ‘‘for the taxpayer’s own use’’ controlled group of corporations (within the is amended by adding at the end the following after ‘‘constructed by the taxpayer’’. meaning of section 52(a)) or a trade or business new subsection: (b) REACQUIRED COMPUTERS ELIGIBLE FOR which is treated as being under common control ‘‘(g) QUALIFIED PROFESSIONAL DEVELOPMENT DONATION.— with other trades or businesses (within the EXPENSES OF ELIGIBLE TEACHERS.—For pur- (1) IN GENERAL.—Section 170(e)(6)(B)(iii) (de- meaning of section 52(b)), this subsection shall poses of subsection (b)(13)— fining qualified elementary or secondary edu- be applied under rules prescribed by the Sec- ‘‘(1) QUALIFIED PROFESSIONAL DEVELOPMENT cational contribution) is amended by inserting retary similar to the rules applicable under sub- EXPENSES.— ‘‘, the person from whom the donor reacquires sections (a) and (b) of section 52.’’. ‘‘(A) IN GENERAL.—The term ‘qualified profes- the property,’’ after ‘‘the donor’’. (d) LIMITATION ON CARRYBACK.—Subsection sional development expenses’ means expenses— (2) CONFORMING AMENDMENT.—Section (d) of section 39 (relating to carryback and ‘‘(i) for tuition, fees, books, supplies, equip- 170(e)(6)(B)(ii) is amended by inserting ‘‘or reac- carryforward of unused credits) is amended by ment, and transportation required for the en- quired’’ after ‘‘acquired’’. adding at the end the following: (c) EFFECTIVE DATE.—The amendments made rollment or attendance of an individual in a ‘‘(9) NO CARRYBACK OF COMPUTER DONATION by this section shall apply to contributions made qualified course of instruction, and CREDIT BEFORE EFFECTIVE DATE.—No amount of in taxable years ending after the date of the en- ‘‘(ii) with respect to which a deduction is al- unused business credit available under section actment of this Act. lowable under section 162 (determined without 45E may be carried back to a taxable year begin- regard to this section). SEC. 1125. CREDIT FOR COMPUTER DONATIONS ning on or before the date of the enactment of ‘‘(B) QUALIFIED COURSE OF INSTRUCTION.— TO SCHOOLS AND SENIOR CENTERS. this paragraph.’’. (a) IN GENERAL.—Subpart D of part IV of sub- The term ‘qualified course of instruction’ means (e) CLERICAL AMENDMENT.—The table of sec- chapter A of chapter 1 (relating to business re- a course of instruction which— tions for subpart D of part IV of subchapter A lated credits), as amended by this Act, is amend- ‘‘(i) is— of chapter 1, as amended by this Act, is amend- ed by adding at the end the following: ‘‘(I) at an institution of higher education (as ed by inserting after the item relating to section defined in section 481 of the Higher Education ‘‘SEC. 45E. CREDIT FOR COMPUTER DONATIONS 45D the following: Act of 1965 (20 U.S.C. 1088), as in effect on the TO SCHOOLS AND SENIOR CENTERS. date of the enactment of this subsection), or ‘‘(a) GENERAL RULE.—For purposes of section ‘‘Sec. 45E. Credit for computer donations to ‘‘(II) a professional conference, and 38, the computer donation credit determined schools and senior centers.’’. ‘‘(ii) is part of a program of professional de- under this section is an amount equal to 30 per- (f) EFFECTIVE DATES.— velopment which is approved and certified by cent of the qualified computer contributions (1) IN GENERAL.—Except as provided in para- the appropriate local educational agency as fur- made by the taxpayer during the taxable year. graph (2), the amendments made by this section thering the individual’s teaching skills. ‘‘(b) QUALIFIED COMPUTER CONTRIBUTION.— shall apply to contributions made in taxable ‘‘(C) LOCAL EDUCATIONAL AGENCY.—The term For purposes of this section, the term ‘qualified years beginning after the date of the enactment ‘local educational agency’ has the meaning computer contribution’ has the meaning given of this Act. given such term by section 14101 of the Elemen- the term ‘qualified elementary or secondary edu- (2) CERTAIN CONTRIBUTIONS.—The amend- tary and Secondary Education Act of 1965, as so cational contribution’ by section 170(e)(6)(B), ments made by this section shall apply to con- in effect. except that— tributions made to an organization or entity not ‘‘(2) ELIGIBLE TEACHER.— ‘‘(1) such term shall include the contribution described in section 45E(c) of the Internal Rev- ‘‘(A) IN GENERAL.—The term ‘eligible teacher’ of a computer (as defined in section enue Code of 1986, as added by subsection (a), means an individual who is a kindergarten 168(i)(2)(B)(ii)) only if computer software (as de- in taxable years beginning after the date that is through grade 12 classroom teacher, instructor, fined in section 197(e)(3)(B)) that serves as a one year after the date of the enactment of this counselor, aide, or principal in an elementary or computer operating system has been lawfully in- Act. secondary school. stalled in such computer, and ‘‘(B) ELEMENTARY OR SECONDARY SCHOOL.— ‘‘(2) for purposes of clauses (i) and (iv) of sec- SEC. 1126. INCREASE IN MANDATORY SPENDING The terms ‘elementary school’ and ‘secondary tion 170(e)(6)(B), such term shall include the FOR CHILD CARE AND DEVELOP- school’ have the meanings given such terms by contribution of computer technology or equip- MENT BLOCK GRANT. section 14101 of the Elementary and Secondary ment to multipurpose senior centers (as defined Section 418(a)(3) of the Social Security Act (42 Education Act of 1965 (20 U.S.C. 8801), as so in in section 102(35) of the Older Americans Act of U.S.C. 618(a)(3)) is amended— effect.’’. 1965 (42 U.S.C. 3002(35)) to be used by individ- (1) in subparagraph (E), by striking ‘‘and’’ at (3) EFFECTIVE DATE.—The amendments made uals who have attained 60 years of age to im- the end; by this section shall apply to taxable years be- prove job skills in computers. (2) in subparagraph (F), by striking the period ginning after December 31, 2000, and ending be- ‘‘(c) INCREASED PERCENTAGE FOR CONTRIBU- at the end and inserting ‘‘; and’’; and fore December 31, 2004. TIONS TO ENTITIES IN EMPOWERMENT ZONES, EN- (3) by adding at the end the following: (b) QUALIFIED INCIDENTAL EXPENSES.— TERPRISE COMMUNITIES, AND INDIAN RESERVA- ‘‘(E) $3,918,000,000 for fiscal year 2002; (1) IN GENERAL.—Section 67(g)(1)(A), as added TIONS.—In the case of a qualified computer con- ‘‘(F) $3,979,000,000 for fiscal year 2003; by subsection (a)(2), is amended by striking tribution to an entity located in an empower- ‘‘(G) $4,010,000,000 for fiscal year 2004; ‘‘and’’ at the end of clause (i), by redesignating ment zone or enterprise community designated ‘‘(H) $3,860,000,000 for fiscal year 2005; clause (ii) as clause (iii), and by inserting after under section 1391 or an Indian reservation (as ‘‘(I) $3,954,000,000 for fiscal year 2006; clause (i) the following new clause: defined in section 168(j)(6)), subsection (a) shall ‘‘(J) $4,004,000,000 for fiscal year 2007; ‘‘(ii) for qualified incidental expenses, and’’. be applied by substituting ‘50 percent’ for ‘30 ‘‘(K) $4,073,000,000 for fiscal year 2008; and (2) DEFINITION.—Section 67(g), as added by percent’. subsection (a)(2), is amended by adding at the ‘‘(d) CERTAIN RULES MADE APPLICABLE.—For ‘‘(L) $4,075,000,000 for fiscal year 2009.’’. end the following new paragraph: purposes of this section, rules similar to the SEC. 1127. SENSE OF THE SENATE REGARDING ‘‘(3) QUALIFIED INCIDENTAL EXPENSES.— rules of paragraphs (1) and (2) of section 41(f) SAVINGS INCENTIVES. ‘‘(A) IN GENERAL.—The term ‘qualified inci- and of section 170(e)(6)(A) shall apply. It is the sense of the Senate that before De- dental expenses’ means expenses paid or in- ‘‘(e) TERMINATION.—This section shall not cember 31, 1999, Congress should pass legislation curred by an eligible teacher in an amount not apply to taxable years beginning on or after the that creates savings incentives by providing a to exceed $125 for any taxable year for books, date which is 3 years after the date of the enact- partial Federal income tax exclusion for income supplies, and equipment related to instruction, ment of the Taxpayer Refund Act of 1999.’’. derived from interest and dividends of no less teaching, or other educational job-related activi- (b) CURRENT YEAR BUSINESS CREDIT CALCULA- than $400 for married taxpayers and $200 for ties of such eligible teacher. TION.—Section 38(b) (relating to current year single taxpayers. S10050 CONGRESSIONAL RECORD — SENATE August 2, 1999 SEC. 1128. SENSE OF CONGRESS REGARDING THE to $19,000 in purchases of equipment and similar (p)(4) and sections 7213 and 7213A shall not NEED FOR ADDITIONAL FEDERAL assets; apply with respect to disclosures or inspections FUNDING AND TAX INCENTIVES FOR (2) there is bipartisan support for increasing made pursuant to this paragraph.’’. EMPOWERMENT ZONES AND ENTER- the amount of this expensing provision because PRISE COMMUNITIES AUTHORIZED SEC. 1132. TREATMENT OF MAPLE SYRUP PRO- AND DESIGNATED PURSUANT TO it helps many small businesses make the invest- DUCTION. 1997 AND 1998 LAWS. ments in equipment and machinery they need by Line 3 of subsection (k) of section 3306 of the (a) FINDINGS.—The Senate finds that— allowing them to immediately write off the costs Internal Revenue Code of 1986 is amended by in- (1) providing Federal tax incentives and other of such investments and bolstering their cash serting after ‘‘chapter’’ the following: ‘‘agricul- incentives to distressed communities across the flow; tural labor includes labor connected to the har- Nation to help them rebuild and grow was one (3) this expensing provision, however, is not vesting or production of maple sap into maple of the important goals of the Taxpayer Relief as helpful as it could be for some small busi- syrup or sugar, and’’. Act of 1997 and the Omnibus Consolidated and nesses because it does not cover their invest- SEC. 1133. TREATMENT OF BONDS ISSUED TO AC- Emergency Supplemental Appropriations Act, ments in improving the storefront or the build- QUIRE RENEWABLE RESOURCES ON 1999; ings in which they conduct their business; LAND SUBJECT TO CONSERVATION (2) to help reach that goal, the Taxpayer Re- (4) in many small towns, the local drug store, EASEMENT. lief Act of 1997 authorized 20 additional em- shoe store, or grocery store doesn’t have much (a) IN GENERAL.—Section 145 (defining quali- powerment zones, 15 urban and 5 rural, followed need for new equipment, but it does need to im- fied 501(c)(3) bond) is amended by redesignating by 20 new rural enterprise communities author- prove the storefront or the interior; subsection (e) as subsection (f) and by inserting ized in 1998; (5) although such investments are good for after subsection (d) the following new sub- (3) the 1997 law authorizing this second round Main Streets across this Nation, our current tax section: of empowerment zones (EZs) was also signifi- law creates a disincentive to make them by re- ‘‘(e) BONDS ISSUED TO ACQUIRE RENEWABLE cant and important because it broadened em- quiring a small business owner to depreciate the RESOURCES ON LAND SUBJECT TO CONSERVATION powerment zone eligibility, for the first time, to costs of the building improvements over 39 years EASEMENT.— Indian tribes and rural regions suffering from for tax purposes; ‘‘(1) IN GENERAL.—If— massive out-migration; (6) legislation to expand the current expensing ‘‘(A) the proceeds of any bond are used to ac- (4) many of our urban and rural communities provision to cover investments in depreciable quire land (or a long-term lease thereof) to- are not sharing in the benefits of the prolonged real property was recently introduced in the gether with any renewable resource associated economic expansion now enjoyed by many other Senate with broad bipartisan cosponsorship, in- with the land (including standing timber, agri- parts of our country; cluding the leaders of the Republican and cultural crops, or water rights) from an unaffili- (5) a total of more than 250 economically dis- Democratic parties; ated person, tressed urban and rural communities competed (7) this proposal is also strongly supported by ‘‘(B) the land is subject to a conservation for the 20 new empowerment zones and 20 new small business-oriented trade groups, including restriction— rural enterprise communities, and those areas the National Federation of Independent Busi- ‘‘(i) which is granted in perpetuity to an un- designated as zones and communities should be ness, the Small Business Legislative Council, affiliated person that is— provided with the Federal incentives and en- and the National Association of Realtors; ‘‘(I) a 501(c)(3) organization, or couragement they need to attract new busi- (8) the Department of the Treasury is cur- ‘‘(II) a Federal, State, or local government nesses, and the jobs they provide, in order to rently conducting a comprehensive study of all conservation organization, stimulate economic growth and improvement; depreciation provisions in our tax laws; and ‘‘(ii) which meets the requirements of clauses (6) unfortunately, those areas that are des- (9) Congress should consider expanding the (ii) and (iii)(II) of section 170(h)(4)(A), ignated EZs or ECs under the 1997 and 1998 existing expensing provision to cover invest- ‘‘(iii) which exceeds the requirements of rel- laws or rural economic area partnerships ments in storefront improvements and other de- evant environmental and land use statutes and (REAPs) by the Department of Agriculture, are preciable real property in any reform legislation regulations, and not given the full advantage of Social Services that results from this study or, if possible, in ‘‘(iv) which obligates the owner of the land to Block Grant funds, tax credits, and some other any earlier legislation. pay the costs incurred by the holder of the con- Federal incentives that Congress provided to the (b) SENSE OF CONGRESS.—It is the sense of servation restriction in monitoring compliance first round of empowerment zones and enter- Congress that— with such restriction, prise communities authorized pursuant to 1993 (1) many small businesses trying to improve ‘‘(C) a management plan which meets the re- budget legislation; their storefronts on Main Street or investing to quirements of the statutes and regulations re- (7) Congress should act swiftly to provide such upgrade their property would benefit if Congress ferred to in subparagraph (B)(iii) is developed designated areas an equal share of tax incen- expanded the existing expensing provision to for the conservation of the renewable resources, tives, grant benefits, and other Federal support cover investments in depreciable real property; and at aggregate levels of at least that provided by and ‘‘(D) such bond would be a qualified 501(c)(3) Congress to distressed urban and rural em- (2) Congress should consider including this bond (after the application of paragraph (2)) powerment zones and enterprise communities proposal in any future tax legislation. but for the failure to use revenues derived by pursuant to the 1993 omnibus budget reconcili- SEC. 1130. CERTAIN NATIVE AMERICAN HOUSING the 501(c)(3) organization from the sale, lease, or ation bill; and ASSISTANCE DISREGARDED IN DE- (8) a fully funded second round of EZs and other use of such resource as otherwise required TERMINING WHETHER BUILDING IS by this part, ECs is estimated to create and retain about FEDERALLY SUBSIDIZED FOR PUR- 90,000 jobs and stimulate $10,000,000,000 in pri- POSES OF THE LOW-INCOME HOUS- such bond shall not fail to be a qualified vate and public investments over the next dec- ING CREDIT. 501(c)(3) bond by reason of the failure to so use ade. (a) IN GENERAL.—Subparagraph (E) of section such revenues if the revenues which are not (b) SENSE OF CONGRESS.—It is the sense of 42(i)(2) of the Internal Revenue Code of 1986 (re- used as otherwise required by this part are used Congress that— lating to determination of whether building is in a manner consistent with the stated chari- (1) if Congress and the President agree to a federally subsidized) is amended— table purposes of the 501(c)(3) organization. substantial tax relief measure, it should ensure (1) in clause (i), by inserting ‘‘or the Native ‘‘(2) TREATMENT OF TIMBER, ETC.— that such measure includes full funding for the American Housing Assistance and Self-Deter- ‘‘(A) IN GENERAL.—For purposes of subsection second round of empowerment zones and enter- mination Act of 1996 (25 U.S.C. 4101 et seq.) (as (a), the cost of any renewable resource acquired prise communities authorized in 1997 and 1998 as in effect on October 1, 1997)’’ after ‘‘this sub- with proceeds of any bond described in para- well as those areas currently designated rural paragraph)’’, and graph (1) shall be treated as a cost of acquiring economic area partnerships (REAPs) by the De- (2) in the subparagraph heading, by inserting the land associated with the renewable resource partment of Agriculture; and ‘‘OR NATIVE AMERICAN HOUSING ASSISTANCE’’ and such land shall not be treated as used for (2) all such designated distressed areas, rural after ‘‘HOME ASSISTANCE’’. a private business use because of the sale or and urban, should equally share at least the (b) EFFECTIVE DATE.—The amendments made leasing of the renewable resource to, or other same aggregate level of funding, tax incentives, by subsection (a) shall apply to periods after the use of the renewable resource by, an unaffili- and other Federal support that Congress pro- date of the enactment of this Act. ated person to the extent that such sale, leasing, vided to urban and rural empowerment zones SEC. 1131. DISCLOSURE OF TAX INFORMATION TO or other use does not constitute an unrelated and enterprise communities authorized by the FACILITATE COMBINED EMPLOY- trade or business, determined by applying sec- 1993 omnibus budget reconciliation bill. MENT TAX REPORTING. tion 513(a). SEC. 1129. SENSE OF CONGRESS REGARDING THE Section 6103(d)(5) of the Internal Revenue ‘‘(B) APPLICATION OF BOND MATURITY LIMITA- NEED TO ENCOURAGE IMPROVE- Code of 1986 is amended to read as follows: TION.—For purposes of section 147(b), the cost of MENTS IN MAIN STREET BUSI- ‘‘(5) DISCLOSURE FOR COMBINED EMPLOYMENT any land or renewable resource acquired with NESSES BY EXPANDING EXISTING TAX REPORTING.—The Secretary may disclose proceeds of any bond described in paragraph (1) SMALL BUSINESS TAX EXPENSING RULES TO INCLUDE INVESTMENTS taxpayer identity information and signatures to shall have an economic life commensurate with IN BUILDINGS AND OTHER DEPRE- any agency, body, or commission of any State the economic and ecological feasibility of the fi- CIABLE REAL PROPERTY. for the purpose of carrying out with such agen- nancing of such land or renewable resource. (a) FINDINGS.—Congress finds that— cy, body, or commission a combined Federal and ‘‘(C) UNAFFILIATED PERSON.—For purposes of (1) under current tax law, small businesses State employment tax reporting program ap- this subsection, the term ‘unaffiliated person’ can immediately deduct, that is, ‘‘expense’’, up proved by the Secretary. Subsections (a)(2) and means any person who controls not more than August 2, 1999 CONGRESSIONAL RECORD — SENATE S10051

20 percent of the governing body of another per- under this section for the taxable year shall be ‘‘(4) COORDINATION WITH CREDIT FOR INCREAS- son.’’. an amount equal to 40 percent of the excess (if ING RESEARCH EXPENDITURES AND WITH CREDIT (b) EFFECTIVE DATE.—The amendment made any) of— FOR CLINICAL TESTING EXPENSES FOR CERTAIN by subsection (a) shall apply to obligations ‘‘(1) the qualified medical innovation expenses DRUGS FOR RARE DISEASES.—Any qualified med- issued after the date of the enactment of this for the taxable year, over ical innovation expense for a taxable year to Act. ‘‘(2) the medical innovation base period which an election under this section applies SEC. 1134. MODIFICATION OF ALTERNATIVE MIN- amount. shall not be taken into account for purposes of IMUM TAX FOR INDIVIDUALS. ‘‘(b) QUALIFIED MEDICAL INNOVATION EX- determining the credit allowable under section Section 56(b)(1)(E), as amended by section 206, PENSES.—For purposes of this section— 41 or 45C for such taxable year.’’. is amended by striking ‘‘$250’’ and inserting ‘‘(1) IN GENERAL.—The term ‘qualified medical (b) CREDIT TO BE PART OF GENERAL BUSINESS ‘‘$300’’. innovation expenses’ means the amounts which CREDIT.— SEC. 1135. EXCLUSION FROM INCOME OF SEVER- are paid or incurred by the taxpayer during the (1) IN GENERAL.—Section 38(b) (relating to ANCE PAYMENT AMOUNTS. taxable year directly or indirectly to any quali- current year business credits), as amended by (a) IN GENERAL.—Part III of subchapter B of fied academic institution for clinical testing re- this Act, is amended by striking ‘‘plus’’ at the chapter 1 (relating to items specifically excluded search activities. end of paragraph (14), by striking the period at from gross income) is amended by redesignating ‘‘(2) CLINICAL TESTING RESEARCH ACTIVITIES.— the end of paragraph (15) and inserting ‘‘, section 139 as section 140 and by inserting after ‘‘(A) IN GENERAL.—The term ‘clinical testing plus’’, and by adding at the end the following: section 138 the following new section: research activities’ means human clinical testing ‘‘(16) the medical innovation expenses credit ‘‘SEC. 139. SEVERANCE PAYMENTS. conducted at any qualified academic institution determined under section 41A(a).’’. in the development of any product, which oc- ‘‘(a) IN GENERAL.—In the case of an indi- (2) TRANSITION RULE.—Section 39(d), as vidual, gross income shall not include any curs before— amended by this Act, is amended by adding at ‘‘(i) the date on which an application with re- qualified severance payment. the end the following new paragraph: ‘‘(b) LIMITATION.—The amount to which the spect to such product is approved under section ‘‘(11) NO CARRYBACK OF SECTION 41A CREDIT exclusion under subsection (a) applies shall not 505(b), 506, or 507 of the Federal Food, Drug, BEFORE ENACTMENT.—No portion of the unused and Cosmetic Act (as in effect on the date of the exceed $2,000 with respect to any separation business credit for any taxable year which is at- from employment. enactment of this section), tributable to the medical innovation credit de- ‘‘(c) QUALIFIED SEVERANCE PAYMENT.—For ‘‘(ii) the date on which a license for such termined under section 41A may be carried back purposes of this section— product is issued under section 351 of the Public to a taxable year beginning before January 1, ‘‘(1) IN GENERAL.—The term ‘qualified sever- Health Service Act (as so in effect), or ance payment’ means any payment received by ‘‘(iii) the date classification or approval of 1999.’’. an individual if— such product which is a device intended for (c) DENIAL OF DOUBLE BENEFIT.—Section ‘‘(A) such payment was paid by such individ- human use is given under section 513, 514, or 515 280C, as amended by this Act, is amended by ual’s employer on account of such individual’s of the Federal Food, Drug, and Cosmetic Act (as adding at the end the following new subsection: separation from employment, so in effect). ‘‘(e) CREDIT FOR INCREASING MEDICAL INNO- ‘‘(B) such separation was in connection with ‘‘(B) PRODUCT.—The term ‘product’ means VATION EXPENSES.— a reduction in the work force of the employer, any drug, biologic, or medical device. ‘‘(1) IN GENERAL.—No deduction shall be al- and ‘‘(3) QUALIFIED ACADEMIC INSTITUTION.—The lowed for that portion of the qualified medical ‘‘(C) such individual does not attain employ- term ‘qualified academic institution’ means any innovation expenses (as defined in section ment within 6 months of the date of such sepa- of the following institutions: 41A(b)) otherwise allowable as a deduction for ration in which the amount of compensation is ‘‘(A) EDUCATIONAL INSTITUTION.—A qualified the taxable year which is equal to the amount of equal to or greater than 95 percent of the organization described in section the credit determined for such taxable year amount of compensation for the employment 170(b)(1)(A)(iii) which is owned by, or affiliated under section 41A(a). that is related to such payment. with, an institution of higher education (as de- ‘‘(2) CERTAIN RULES TO APPLY.—Rules similar ‘‘(2) LIMITATION.—Such term shall not include fined in section 3304(f)). to the rules of paragraphs (2), (3), and (4) of any payment received by an individual if the ‘‘(B) TEACHING HOSPITAL.—A teaching hos- subsection (c) shall apply for purposes of this aggregate payments received with respect to the pital which— subsection.’’. separation from employment exceed $75,000.’’. ‘‘(i) is publicly supported or owned by an or- (d) DEDUCTION FOR UNUSED PORTION OF (b) CLERICAL AMENDMENT.—The table of sec- ganization described in section 501(c)(3), and CREDIT.—Section 196(c) (defining qualified busi- tions for part III of subchapter B of chapter 1 ‘‘(ii) is affiliated with an organization meeting ness credits) is amended by redesignating para- is amended by striking the item relating to sec- the requirements of subparagraph (A). graphs (5) through (8) as paragraphs (6) tion 139 and inserting the following new items: ‘‘(C) FOUNDATION.—A medical research orga- through (9), respectively, and by inserting after ‘‘Sec. 139. Severance payments. nization described in section 501(c)(3) (other paragraph (4) the following new paragraph: ‘‘Sec. 140. Cross references to other Acts.’’. than a private foundation) which is affiliated ‘‘(5) the medical innovation expenses credit with, or owned by— determined under section 41A(a) (other than (c) EFFECTIVE DATE.—The amendments made ‘‘(i) an organization meeting the requirements such credit determined under the rules of section by subsections (a) and (b) shall apply to taxable of subparagraph (A), or 280C(d)(2)),’’. years beginning after December 31, 2000, and be- ‘‘(ii) a teaching hospital meeting the require- (e) CLERICAL AMENDMENT.—The table of sec- fore January 1, 2002. ments of subparagraph (B). tions for subpart D of part IV of subchapter A SEC. 1136. CAPITAL GAIN TREATMENT UNDER ‘‘(D) CHARITABLE RESEARCH HOSPITAL.—A of chapter 1 is amended by adding after the item SECTION 631(b) TO APPLY TO OUT- hospital that is designated as a cancer center by RIGHT SALES BY LAND OWNER. relating to section 41 the following: the National Cancer Institute. (a) IN GENERAL.—Subsection (b) of section 631 ‘‘(4) EXCLUSION FOR AMOUNTS FUNDED BY ‘‘Sec. 41A. Credit for medical innovation ex- (relating to disposal of timber with a retained GRANTS, ETC.—The term ‘qualified medical inno- penses.’’. economic interest) is amended— vation expenses’ shall not include any amount (1) by inserting ‘‘AND OUTRIGHT SALES OF (f) EFFECTIVE DATE.—The amendments made to the extent such amount is funded by any TIMBER’’ after ‘‘ECONOMIC INTEREST’’ in the by this section shall apply to taxable years be- subsection heading, and grant, contract, or otherwise by another person ginning after December 31, 1998. (or any governmental entity). (2) by adding before the last sentence the fol- TITLE XII—EXTENSION OF EXPIRED AND ‘‘(c) MEDICAL INNOVATION BASE PERIOD lowing new sentence: ‘‘The requirement in the EXPIRING PROVISIONS first sentence of this subsection to retain an eco- AMOUNT.—For purposes of this section, the term ‘medical innovation base period amount’ means SEC. 1201. PERMANENT EXTENSION AND MODI- nomic interest in timber shall not apply to an FICATION OF RESEARCH CREDIT. outright sale of such timber by the owner there- the average annual qualified medical innova- (a) PERMANENT EXTENSION.— of if such owner owned the land (at the time of tion expenses paid by the taxpayer during the 3- taxable year period ending with the taxable (1) IN GENERAL.—Section 41 (relating to credit such sale) from which the timber is cut.’’. for increasing research activities) is amended by (b) EFFECTIVE DATE.—The amendments made year immediately preceding the first taxable striking subsection (h). by this section shall apply to sales after the date year of the taxpayer beginning after December (2) CONFORMING AMENDMENT.—Paragraph (1) of the enactment of this Act. 31, 1998. ‘‘(d) SPECIAL RULES.— of section 45C(b) is amended by striking sub- SEC. 1137. CREDIT FOR CLINICAL TESTING RE- paragraph (D). SEARCH EXPENSES ATTRIBUTABLE ‘‘(1) LIMITATION ON FOREIGN TESTING.—No TO CERTAIN QUALIFIED ACADEMIC credit shall be allowed under this section with (3) EFFECTIVE DATE.—The amendments made INSTITUTIONS INCLUDING TEACH- respect to any clinical testing research activities by this subsection shall apply to amounts paid ING HOSPITALS. conducted outside the United States. or incurred after June 30, 1999. (a) IN GENERAL.—Subpart D of part IV of sub- ‘‘(2) CERTAIN RULES MADE APPLICABLE.—Rules (b) INCREASE IN PERCENTAGES UNDER ALTER- chapter A of chapter 1 (relating to business re- similar to the rules of subsections (f) and (g) of NATIVE INCREMENTAL CREDIT.— lated credits) is amended by inserting after sec- section 41 shall apply for purposes of this sec- (1) IN GENERAL.—Subparagraph (A) of section tion 41 the following: tion. 41(c)(4) is amended— ‘‘SEC. 41A. CREDIT FOR MEDICAL INNOVATION ‘‘(3) ELECTION.—This section shall apply to (A) by striking ‘‘1.65 percent’’ and inserting EXPENSES. any taxpayer for any taxable year only if such ‘‘2.65 percent’’, ‘‘(a) GENERAL RULE.—For purposes of section taxpayer elects to have this section apply for (B) by striking ‘‘2.2 percent’’ and inserting 38, the medical innovation credit determined such taxable year. ‘‘3.2 percent’’, and S10052 CONGRESSIONAL RECORD — SENATE August 2, 1999

(C) by striking ‘‘2.75 percent’’ and inserting ing ‘‘and’’ at the end of subparagraph (A), by ‘‘(c) QUALIFIED CONTAMINATED SITE.—For ‘‘3.75 percent’’. striking the period at the end of subparagraph purposes of this section— (2) EFFECTIVE DATE.—The amendments made (B) and inserting a comma, and by adding at ‘‘(1) IN GENERAL.—The term ‘qualified con- by this subsection shall apply to taxable years the end the following new subparagraphs: taminated site’ means any area— beginning after June 30, 1999. ‘‘(C) biomass (other than closed-loop biomass), ‘‘(A) which is held by the taxpayer for use in SEC. 1202. SUBPART F EXEMPTION FOR ACTIVE ‘‘(B) landfill gas, and a trade or business or for the production of in- FINANCING INCOME. ‘‘(C) poultry waste.’’. come, or which is property described in section (a) IN GENERAL.—Sections 953(e)(10) and (2) DEFINITIONS.—Section 45(c) is amended by 1221(1) in the hands of the taxpayer, and 954(h)(9) are each amended— redesignating paragraph (3) as paragraph (6) ‘‘(B) at or on which there has been a release (1) by striking ‘‘the first taxable year’’ and in- and inserting after paragraph (2) the following (or threat of release) or disposal of any haz- serting ‘‘taxable years’’, and new paragraphs: ardous substance. (2) by striking ‘‘January 1, 2000’’ and insert- ‘‘(3) BIOMASS.—The term ‘biomass’ means any ‘‘(2) NATIONAL PRIORITIES LISTED SITES NOT ing ‘‘January 1, 2005’’. solid, nonhazardous, cellulosic waste material INCLUDED.—Such term shall not include any site (b) EFFECTIVE DATE.—The amendment made which is segregated from other waste materials which is on, or proposed for, the national prior- by this section shall apply to taxable years be- and which is derived from— ities list under section 105(a)(8)(B) of the Com- ginning after December 31, 1999. ‘‘(A) any of the following forest-related re- prehensive Environmental Response, Compensa- SEC. 1203. TAXABLE INCOME LIMIT ON PERCENT- sources: mill residues, precommercial thinnings, tion, and Liability Act of 1980 (as in effect on AGE DEPLETION FOR MARGINAL slash, and brush, but not including old-growth the date of the enactment of this section). PRODUCTION. timber, ‘‘(3) TAXPAYER MUST RECEIVE STATEMENT (a) IN GENERAL.—Subparagraph (H) of section ‘‘(B) urban sources, including waste pallets, FROM STATE ENVIRONMENTAL AGENCY.—An area 613A(c)(6) is amended by striking ‘‘January 1, crates, and dunnage, manufacturing and con- shall be treated as a qualified contaminated site 2000’’ and inserting ‘‘January 1, 2005’’. struction wood wastes, and landscape or right- with respect to expenditures paid or incurred (b) EFFECTIVE DATE.—The amendment made of-way tree trimmings, but not including unseg- during any taxable year only if the taxpayer re- by this section shall apply to taxable years be- regated municipal solid waste (garbage) or ceives a statement from the appropriate agency ginning after December 31, 1999. paper that is commonly recycled, or of the State in which such area is located that SEC. 1204. WORK OPPORTUNITY CREDIT AND ‘‘(C) agriculture sources, including orchard such area meets the requirement of paragraph WELFARE-TO-WORK CREDIT. tree crops, vineyard, grain, legumes, sugar, and (1)(B). (a) TEMPORARY EXTENSION.—Sections other crop by-products or residues. ‘‘(4) APPROPRIATE STATE AGENCY.—For pur- 51(c)(4)(B) and 51A(f) (relating to termination) ‘‘(4) LANDFILL GAS.—The term ‘landfill gas’ poses of paragraph (2), the chief executive offi- are each amended by striking ‘‘June 30, 1999’’ means gas from the decomposition of any house- cer of each State may, in consultation with the and inserting ‘‘June 30, 2004’’. hold solid waste, commercial solid waste, and Administrator of the Environmental Protection (b) CLARIFICATION OF FIRST YEAR OF EMPLOY- industrial solid waste disposed of in a municipal Agency, designate the appropriate State envi- MENT.—Paragraph (2) of section 51(i) is amend- solid waste landfill unit (as such terms are de- ronmental agency within 60 days of the date of ed by striking ‘‘during which he was not a mem- fined in regulations promulgated under subtitle the enactment of this section. If the chief execu- ber of a targeted group’’. D of the Solid Waste Disposal Act (42 U.S.C. tive officer of a State has not designated an ap- (c) EFFECTIVE DATE.—The amendments made 6941 et seq.)). propriate State environmental agency within by this section shall apply to individuals who ‘‘(5) POULTRY WASTE.—The term ‘poultry such 60-day period, the appropriate environ- begin work for the employer after June 30, 1999. waste’ means poultry manure and litter, includ- mental agency for such State shall be des- SEC. 1205. EXTENSION AND MODIFICATION OF ing wood shavings, straw, rice hulls, and other ignated by the Administrator of the Environ- CREDIT FOR PRODUCING ELEC- bedding material for the disposition of ma- mental Protection Agency.’’. TRICITY FROM CERTAIN RENEWABLE nure.’’. (c) EFFECTIVE DATE.—The amendments made RESOURCES. (c) SPECIAL RULES.—Section 45(d) (relating to by this section shall apply to expenditures paid (a) EXTENSION AND MODIFICATION OF PLACED- definitions and special rules) is amended by or incurred after December 31, 1999. IN-SERVICE RULES.—Paragraph (3) of section adding at the end the following new para- TITLE XIII—REVENUE OFFSETS graphs: 45(c) is amended to read as follows: Subtitle A—General Provisions ‘‘(3) QUALIFIED FACILITY.— ‘‘(6) CREDIT ELIGIBILITY IN THE CASE OF GOV- ‘‘(A) WIND FACILITY.—In the case of a facility ERNMENT-OWNED FACILITIES USING POULTRY SEC. 1301. MODIFICATION TO FOREIGN TAX CRED- IT CARRYBACK AND CARRYOVER PE- using wind to produce electricity, the term WASTE.—In the case of a facility using poultry RIODS. ‘qualified facility’ means any facility owned by waste to produce electricity and owned by a (a) IN GENERAL.—Section 904(c) (relating to the taxpayer which is originally placed in serv- governmental unit, the person eligible for the limitation on credit) is amended— credit under subsection (a) is the lessor or the ice after December 31, 1993, and before July 1, (1) by striking ‘‘in the second preceding tax- operator of such facility. 2004. able year,’’, and ‘‘(7) PROPORTIONAL CREDIT FOR FACILITY ‘‘(B) CLOSED-LOOP BIOMASS FACILITY.—In the (2) by striking ‘‘or fifth’’ and inserting ‘‘fifth, USING COAL TO CO-FIRE WITH CERTAIN BIO- case of a facility using closed-loop biomass to sixth, or seventh’’. MASS.—In the case of a qualified facility as de- produce electricity, the term ‘qualified facility’ (b) EFFECTIVE DATE.—The amendment made means any facility owned by the taxpayer fined in subsection (c)(3)(C) using coal to co-fire by subsection (a) shall apply to credits arising which is originally placed in service after De- with biomass (other than closed-loop biomass), in taxable years beginning after December 31, cember 31, 1992, and before July 1, 2004. the amount of the credit determined under sub- 1999. ‘‘(C) BIOMASS FACILITY.—In the case of a fa- section (a) for the taxable year shall be reduced SEC. 1302. RETURNS RELATING TO CANCELLA- cility using biomass (other than closed-loop bio- by the percentage coal comprises (on a Btu TIONS OF INDEBTEDNESS BY ORGA- mass) to produce electricity, the term ‘qualified basis) of the average fuel input of the facility NIZATIONS LENDING MONEY. facility’ means any facility owned by the tax- for the taxable year.’’. (a) IN GENERAL.—Paragraph (2) of section payer which is originally placed in service be- (d) EFFECTIVE DATE.—The amendments made 6050P(c) (relating to definitions and special fore January 1, 2003. by this section shall take effect on the date of rules) is amended by striking ‘‘and’’ at the end ‘‘(D) LANDFILL GAS OR POULTRY WASTE FACIL- the enactment of this Act. of subparagraph (B), by striking the period at ITY.— SEC. 1206. ALASKA EXEMPTION FROM DYEING RE- the end of subparagraph (C) and inserting ‘‘, ‘‘(i) IN GENERAL.—In the case of a facility QUIREMENTS. and’’, and by inserting after subparagraph (C) using landfill gas or poultry waste to produce (a) EXCEPTION TO DYEING REQUIREMENTS FOR the following new subparagraph: electricity, the term ‘qualified facility’ means EXEMPT DIESEL FUEL AND KEROSENE.—Para- ‘‘(D) any organization a significant trade or any facility of the taxpayer which is originally graph (1) of section 4082(c) (relating to exception business of which is the lending of money.’’. placed in service after December 31, 1999, and to dyeing requirements) is amended to read as (b) EFFECTIVE DATE.—The amendment made before July 1, 2004. follows: by subsection (a) shall apply to discharges of in- ‘‘(ii) LANDFILL GAS.—In the case of a facility ‘‘(1) removed, entered, or sold in the State of debtedness after December 31, 1999. using landfill gas, such term shall include Alaska for ultimate sale or use in such State, SEC. 1303. INCREASE IN ELECTIVE WITHHOLDING equipment and housing (not including wells and and’’. RATE FOR NONPERIODIC DISTRIBU- related systems required to collect and transmit (b) EFFECTIVE DATE.—The amendment made TIONS FROM DEFERRED COMPENSA- gas to the production facility) required to gen- by this section applies with respect to fuel re- TION PLANS. erate electricity which are owned by the tax- moved, entered, or sold on or after the date of (a) IN GENERAL.—Section 3405(b)(1) (relating payer and so placed in service. the enactment of this Act. to withholding) is amended by striking ‘‘10 per- ‘‘(E) SPECIAL RULE.—In the case of a qualified SEC. 1207. EXTENSION OF EXPENSING OF ENVI- cent’’ and inserting ‘‘15 percent’’. facility described in subparagraph (C), the 10- RONMENTAL REMEDIATION COSTS. (b) EFFECTIVE DATE.—The amendment made year period referred to in subsection (a) shall be (a) EXTENSION OF TERMINATION DATE.—Sub- by subsection (a) shall apply to distributions treated as beginning no earlier than January 1, section (h) of section 198 is amended by striking after December 31, 2000. 2000.’’. ‘‘December 31, 2000’’ and inserting ‘‘June 30, SEC. 1304. EXTENSION OF INTERNAL REVENUE (b) EXPANSION OF QUALIFIED ENERGY RE- 2004’’. SERVICE USER FEES. SOURCES.— (b) EXPANSION OF QUALIFIED CONTAMINATED (a) IN GENERAL.—Chapter 77 (relating to mis- (1) IN GENERAL.—Section 45(c)(1) (defining SITE.—Section 198(c) is amended to read as fol- cellaneous provisions) is amended by adding at qualified energy resources) is amended by strik- lows: the end the following new section: August 2, 1999 CONGRESSIONAL RECORD — SENATE S10053 ‘‘SEC. 7527. INTERNAL REVENUE SERVICE USER ‘‘(i) the qualified current retiree health liabil- person which regularly offers to enter into, as- FEES. ities of the employer for such taxable year sume, offset, assign, or terminate positions in ‘‘(a) GENERAL RULE.—The Secretary shall es- determined— commodities derivative financial instruments tablish a program requiring the payment of user ‘‘(I) without regard to any reduction under with customers in the ordinary course of a trade fees for— subsection (e)(1)(B), and or business. ‘‘(1) requests to the Internal Revenue Service ‘‘(II) in the case of a taxable year in which ‘‘(B) COMMODITIES DERIVATIVE FINANCIAL IN- for ruling letters, opinion letters, and deter- there was no qualified transfer, in the same STRUMENT.— mination letters, and manner as if there had been such a transfer at ‘‘(i) IN GENERAL.—The term ‘commodities de- ‘‘(2) other similar requests. the end of the taxable year, by rivative financial instrument’ means any con- ‘‘(b) PROGRAM CRITERIA.— ‘‘(ii) the number of individuals to whom cov- tract or financial instrument with respect to ‘‘(1) IN GENERAL.—The fees charged under the erage for applicable health benefits was pro- commodities (other than a share of stock in a program required by subsection (a)— vided during such taxable year. corporation, a beneficial interest in a partner- ‘‘(A) shall vary according to categories (or ‘‘(C) ELECTION TO COMPUTE COST SEPA- ship or trust, a note, bond, debenture, or other subcategories) established by the Secretary, RATELY.—An employer may elect to have this evidence of indebtedness, or a section 1256 con- ‘‘(B) shall be determined after taking into ac- paragraph applied separately with respect to in- tract (as defined in section 1256(b)), the value or count the average time for (and difficulty of) dividuals eligible for benefits under title XVIII settlement price of which is calculated by or de- complying with requests in each category (and of the Social Security Act at any time during the termined by reference to a specified index. subcategory), and taxable year and with respect to individuals not ‘‘(ii) SPECIFIED INDEX.—The term ‘specified ‘‘(C) shall be payable in advance. so eligible. index’ means any one or more or any combina- ‘‘(2) EXEMPTIONS, ETC.—The Secretary shall ‘‘(D) COST MAINTENANCE PERIOD.—For pur- tion of— provide for such exemptions (and reduced fees) poses of this paragraph, the term ‘cost mainte- ‘‘(I) a fixed rate, price, or amount, or under such program as the Secretary determines nance period’ means the period of 5 taxable ‘‘(II) a variable rate, price, or amount, to be appropriate. years beginning with the taxable year in which which is based on any current, objectively deter- ‘‘(3) AVERAGE FEE REQUIREMENT.—The aver- the qualified transfer occurs. If a taxable year is minable financial or economic information with age fee charged under the program required by in 2 or more overlapping cost maintenance peri- respect to commodities which is not within the subsection (a) shall not be less than the amount ods, this paragraph shall be applied by taking control of any of the parties to the contract or determined under the following table: into account the highest applicable employer instrument and is not unique to any of the par- cost required to be provided under subparagraph ‘‘Category Average Fee ties’ circumstances. Employee plan ruling and opinion ..... $250 (A) for such taxable year.’’. ‘‘(2) HEDGING TRANSACTION.— Exempt organization ruling ...... $350 (2) CONFORMING AMENDMENTS.— ‘‘(A) IN GENERAL.—For purposes of this sec- Employee plan determination ...... $300 (A) Clause (iii) of section 420(b)(1)(C) is tion, the term ‘hedging transaction’ means any Exempt organization determination ... $275 amended by striking ‘‘benefits’’ and inserting transaction entered into by the taxpayer in the Chief counsel ruling ...... $200. ‘‘cost’’. normal course of the taxpayer’s trade or busi- ‘‘(c) TERMINATION.—No fee shall be imposed (B) Subparagraph (D) of section 420(e)(1) is ness primarily— under this section with respect to requests made amended by striking ‘‘and shall not be subject to ‘‘(i) to manage risk of price changes or cur- after September 30, 2009.’’. the minimum benefit requirements of subsection rency fluctuations with respect to ordinary (b) CONFORMING AMENDMENTS.— (c)(3)’’ and inserting ‘‘or in calculating applica- property which is held or to be held by the tax- (1) The table of sections for chapter 77 is ble employer cost under subsection (c)(3)(B)’’. payer, amended by adding at the end the following (c) EFFECTIVE DATES.— ‘‘(ii) to manage risk of interest rate or price new item: (1) IN GENERAL.—The amendments made by this section shall apply to qualified transfers oc- changes or currency fluctuations with respect to ‘‘Sec. 7527. Internal Revenue Service user fees.’’. curring after the date of the enactment of this borrowings made or to be made, or ordinary ob- (2) Section 10511 of the Revenue Act of 1987 is Act. ligations incurred or to be incurred, by the tax- repealed. (2) TRANSITION RULE.—If the cost mainte- payer, or (c) EFFECTIVE DATE.—The amendments made nance period for any qualified transfer after the ‘‘(iii) to manage such other risks as the Sec- by this section shall apply to requests made date of the enactment of this Act includes any retary may prescribe in regulations. after the date of the enactment of this Act. portion of a benefit maintenance period for any ‘‘(B) TREATMENT OF NONIDENTIFICATION OR SEC. 1305. TRANSFER OF EXCESS DEFINED BEN- qualified transfer on or before such date, the IMPROPER IDENTIFICATION OF HEDGING TRANS- EFIT PLAN ASSETS FOR RETIREE amendments made by subsection (b) shall not ACTIONS.—Notwithstanding subsection (a)(7), HEALTH BENEFITS. apply to such portion of the cost maintenance the Secretary shall prescribe regulations to (a) EXTENSION.— period (and such portion shall be treated as a properly characterize any income, gain, ex- (1) IN GENERAL.—Paragraph (5) of section benefit maintenance period). pense, or loss arising from a transaction— ‘‘(i) which is a hedging transaction but which 420(b) (relating to expiration) is amended by SEC. 1306. TAX TREATMENT OF INCOME AND LOSS striking ‘‘in any taxable year beginning after ON DERIVATIVES. was not identified as such in accordance with subsection (a)(7), or December 31, 2000’’ and inserting ‘‘made after (a) IN GENERAL.—Section 1221 (defining cap- September 30, 2009’’. ital assets) is amended— ‘‘(ii) which was so identified but is not a (2) CONFORMING AMENDMENTS.— (1) by striking ‘‘For purposes’’ and inserting hedging transaction. (A) Section 101(e)(3) of the Employee Retire- the following: ‘‘(3) REGULATIONS.—The Secretary shall pre- ment Income Security Act of 1974 (29 U.S.C. ‘‘(a) IN GENERAL.—For purposes’’, scribe such regulations as are appropriate to 1021(e)(3)) is amended by striking ‘‘1995’’ and (2) by striking the period at the end of para- carry out the purposes of paragraph (6) and (7) inserting ‘‘2001’’. graph (5) and inserting a semicolon, and of subsection (a) in the case of transactions in- (B) Section 403(c)(1) of such Act (29 U.S.C. (3) by adding at the end the following: volving related parties.’’. 1103(c)(1)) is amended by striking ‘‘1995’’ and ‘‘(6) any commodities derivative financial in- (b) MANAGEMENT OF RISK.— inserting ‘‘2001’’. strument held by a commodities derivatives deal- (1) Section 475(c)(3) is amended by striking (C) Paragraph (13) of section 408(b) of such er, unless— ‘‘reduces’’ and inserting ‘‘manages’’. Act (29 U.S.C. 1108(b)(13)) is amended— ‘‘(A) it is established to the satisfaction of the (2) Section 871(h)(4)(C)(iv) is amended by (i) by striking ‘‘in a taxable year beginning Secretary that such instrument has no connec- striking ‘‘to reduce’’ and inserting ‘‘to manage’’. before January 1, 2001’’ and inserting ‘‘made be- tion to the activities of such dealer as a dealer, (3) Clauses (i) and (ii) of section 988(d)(2)(A) fore October 1, 2009’’, and and are each amended by striking ‘‘to reduce’’ and (ii) by striking ‘‘1995’’ and inserting ‘‘2001’’. ‘‘(B) such instrument is clearly identified in inserting ‘‘to manage’’. (b) APPLICATION OF MINIMUM COST REQUIRE- such dealer’s records as being described in sub- (4) Paragraph (2) of section 1256(e) is amended MENTS.— paragraph (A) before the close of the day on to read as follows: (1) IN GENERAL.—Paragraph (3) of section which it was acquired, originated, or entered ‘‘(2) DEFINITION OF HEDGING TRANSACTION.— 420(c) is amended to read as follows: into (or such other time as the Secretary may by For purposes of this subsection, the term ‘hedg- ‘‘(3) MINIMUM COST REQUIREMENTS.— regulations prescribe); ing transaction’ means any hedging transaction ‘‘(A) IN GENERAL.—The requirements of this ‘‘(7) any hedging transaction which is clearly (as defined in section 1221(b)(2)(A)) if, before the paragraph are met if each group health plan or identified as such before the close of the day on close of the day on which such transaction was arrangement under which applicable health which it was acquired, originated, or entered entered into (or such earlier time as the Sec- benefits are provided provides that the applica- into (or such other time as the Secretary may by retary may prescribe by regulations), the tax- ble employer cost for each taxable year during regulations prescribe); or payer clearly identifies such transaction as the cost maintenance period shall not be less ‘‘(8) supplies of a type regularly used or con- being a hedging transaction.’’. than the higher of the applicable employer costs sumed by the taxpayer in the ordinary course of (c) CONFORMING AMENDMENTS.— for each of the 2 taxable years immediately pre- a trade or business of the taxpayer. (1) Each of the following sections are amended ceding the taxable year of the qualified transfer. ‘‘(b) DEFINITIONS AND SPECIAL RULES.— by striking ‘‘section 1221’’ and inserting ‘‘sec- ‘‘(B) APPLICABLE EMPLOYER COST.—For pur- ‘‘(1) COMMODITIES DERIVATIVE FINANCIAL IN- tion 1221(a)’’: poses of this paragraph, the term ‘applicable STRUMENTS.—For purposes of subsection (a)(6)— (A) Section 170(e)(3)(A). employer cost’ means, with respect to any tax- ‘‘(A) COMMODITIES DERIVATIVES DEALER.—The (B) Section 170(e)(4)(B). able year, the amount determined by dividing— term ‘commodities derivatives dealer’ means a (C) Section 367(a)(3)(B)(i). S10054 CONGRESSIONAL RECORD — SENATE August 2, 1999 (D) Section 818(c)(3). ‘‘(i) Medical benefits. ‘‘(1) such gain shall be treated as ordinary in- (E) Section 865(i)(1). ‘‘(ii) Disability benefits. come to the extent that such gain exceeds the (F) Section 1092(a)(3)(B)(ii)(II). ‘‘(iii) Group term life insurance benefits which net underlying long-term capital gain, and (G) Subparagraphs (C) and (D) of section do not provide directly or indirectly for any ‘‘(2) to the extent such gain is treated as a 1231(b)(1). cash surrender value or other money that can be long-term capital gain after the application of (H) Section 1234(a)(3)(A). paid, assigned, borrowed, or pledged for collat- paragraph (1), the determination of the capital (2) Each of the following sections are amended eral for a loan. gain rate (or rates) applicable to such gain by striking ‘‘section 1221(1)’’ and inserting ‘‘sec- The preceding sentence shall not apply to any under section 1(h) shall be determined on the tion 1221(a)(1)’’: plan which maintains experience-rating ar- basis of the respective rate (or rates) that would (A) Section 198(c)(1)(A)(i). rangements with respect to individual employ- have been applicable to the net underlying long- (B) Section 263A(b)(2)(A). ers.’’. term capital gain. (C) Clauses (i) and (iii) of section 267(f)(3)(B). (b) LIMITATION ON USE OF AMOUNTS FOR ‘‘(b) INTEREST CHARGE ON DEFERRAL OF GAIN (D) Section 341(d)(3). OTHER PURPOSES.—Section 4976(b) (defining dis- RECOGNITION.— (E) Section 543(a)(1)(D)(i). qualified benefit) is amended by adding at the ‘‘(1) IN GENERAL.—If any gain is treated as or- (F) Section 751(d)(1). end the following new paragraph: dinary income for any taxable year by reason of (G) Section 775(c). ‘‘(5) SPECIAL RULE FOR 10 OR MORE EMPLOYER subsection (a)(1), the tax imposed by this chap- (H) Section 856(c)(2)(D). PLANS EXEMPTED FROM PREFUNDING LIMITS.— ter for such taxable year shall be increased by (I) Section 856(c)(3)(C). For purposes of paragraph (1)(C), if— the amount of interest determined under para- (J) Section 856(e)(1). ‘‘(A) subpart D of part I of subchapter D of graph (2) with respect to each prior taxable year (K) Section 856(j)(2)(B). chapter 1 does not apply by reason of section during any portion of which the constructive (L) Section 857(b)(4)(B)(i). 419A(f)(6) to contributions to provide 1 or more ownership transaction was open. Any amount (M) Section 857(b)(6)(B)(iii). welfare benefits through a welfare benefit fund payable under this paragraph shall be taken (N) Section 864(c)(4)(B)(iii). under a 10 or more employer plan, and into account in computing the amount of any (O) Section 864(d)(3)(A). ‘‘(B) any portion of the welfare benefit fund deduction allowable to the taxpayer for interest (P) Section 864(d)(6)(A). attributable to such contributions is used for a paid or accrued during such taxable year. (Q) Section 954(c)(1)(B)(iii). purpose other than that for which the contribu- ‘‘(2) AMOUNT OF INTEREST.—The amount of (R) Section 995(b)(1)(C). tions were made, interest determined under this paragraph with (S) Section 1017(b)(3)(E)(i). then such portion shall be treated as reverting respect to a prior taxable year is the amount of (T) Section 1362(d)(3)(C)(ii). interest which would have been imposed under (U) Section 4662(c)(2)(C). to the benefit of the employers maintaining the fund.’’. section 6601 on the underpayment of tax for (V) Section 7704(c)(3). such year which would have resulted if the gain (W) Section 7704(d)(1)(D). (c) EFFECTIVE DATE.—The amendments made by this section shall apply to contributions paid (which is treated as ordinary income by reason (X) Section 7704(d)(1)(G). of subsection (a)(1)) had been included in gross (Y) Section 7704(d)(5). or accrued after June 9, 1999, in taxable years income in the taxable years in which it accrued (3) Section 818(b)(2) is amended by striking ending after such date. (determined by treating the income as accruing ‘‘section 1221(2)’’ and inserting ‘‘section SEC. 1313. MODIFICATION OF INSTALLMENT at a constant rate equal to the applicable Fed- 1221(a)(2)’’. METHOD AND REPEAL OF INSTALL- eral rate as in effect on the day the transaction (4) Section 1397B(e)(2) is amended by striking MENT METHOD FOR ACCRUAL METH- OD TAXPAYERS. closed). The period during which such interest ‘‘section 1221(4)’’ and inserting ‘‘section (a) REPEAL OF INSTALLMENT METHOD FOR AC- shall accrue shall end on the due date (without 1221(a)(4)’’. CRUAL BASIS TAXPAYERS.— extensions) for the return of tax imposed by this (d) EFFECTIVE DATE.—The amendments made (1) IN GENERAL.—Subsection (a) of section 453 chapter for the taxable year in which such by this section shall apply to any instrument (relating to installment method) is amended to transaction closed. held, acquired, or entered into, any transaction read as follows: ‘‘(3) APPLICABLE FEDERAL RATE.—For pur- entered into, and supplies held or acquired on or ‘‘(a) USE OF INSTALLMENT METHOD.— poses of paragraph (2), the applicable Federal after the date of enactment of this Act. ‘‘(1) IN GENERAL.—Except as otherwise pro- rate is the applicable Federal rate determined Subtitle B—Loophole Closers vided in this section, income from an installment under 1274(d) (compounded semiannually) SEC. 1311. LIMITATION ON USE OF NON-ACCRUAL sale shall be taken into account for purposes of which would apply to a debt instrument with a EXPERIENCE METHOD OF ACCOUNT- this title under the installment method. term equal to the period the transaction was ING. ‘‘(2) ACCRUAL METHOD TAXPAYER.—The in- open. (a) IN GENERAL.—Section 448(d)(5) (relating to stallment method shall not apply to income from ‘‘(4) NO CREDITS AGAINST INCREASE IN TAX.— special rule for services) is amended— an installment sale if such income would be re- Any increase in tax under paragraph (1) shall (1) by inserting ‘‘in fields described in para- ported under an accrual method of accounting not be treated as tax imposed by this chapter for graph (2)(A)’’ after ‘‘services by such person’’, without regard to this section. The preceding purposes of determining— and sentence shall not apply to a disposition de- ‘‘(A) the amount of any credit allowable (2) by inserting ‘‘CERTAIN PERSONAL’’ before scribed in subparagraph (A) or (B) of subsection under this chapter, or ‘‘SERVICES’’ in the heading. (l)(2).’’. ‘‘(B) the amount of the tax imposed by section (b) EFFECTIVE DATE.— (2) CONFORMING AMENDMENTS.—Sections 55. (1) IN GENERAL.—The amendments made by 453(d)(1), 453(i)(1), and 453(k) are each amended ‘‘(c) FINANCIAL ASSET.—For purposes of this this section shall apply to taxable years ending by striking ‘‘(a)’’ each place it appears and in- section— after the date of the enactment of this Act. serting ‘‘(a)(1)’’. ‘‘(1) IN GENERAL.—The term ‘financial asset’ (2) CHANGE IN METHOD OF ACCOUNTING.—In (b) MODIFICATION OF PLEDGE RULES.—Para- means— the case of any taxpayer required by the amend- graph (4) of section 453A(d) (relating to pledges, ‘‘(A) any equity interest in any pass-thru en- ments made by this section to change its method etc., of installment obligations) is amended by tity, and of accounting for its first taxable year ending adding at the end the following: ‘‘A payment ‘‘(B) to the extent provided in regulations— after the date of the enactment of this Act— shall be treated as directly secured by an inter- ‘‘(i) any debt instrument, and (A) such change shall be treated as initiated est in an installment obligation to the extent an ‘‘(ii) any stock in a corporation which is not by the taxpayer, arrangement allows the taxpayer to satisfy all a pass-thru entity. (B) such change shall be treated as made with or a portion of the indebtedness with the install- ‘‘(2) PASS-THRU ENTITY.—For purposes of the consent of the Secretary of the Treasury, ment obligation.’’. paragraph (1), the term ‘pass-thru entity’ and (c) EFFECTIVE DATE.—The amendments made means— (C) the net amount of the adjustments re- by this section shall apply to sales or other dis- ‘‘(A) a regulated investment company, ‘‘(B) a real estate investment trust, quired to be taken into account by the taxpayer positions occurring on or after the date of the ‘‘(C) an S corporation, under section 481 of the Internal Revenue Code enactment of this Act. ‘‘(D) a partnership, of 1986 shall be taken into account over a period SEC. 1314. TREATMENT OF GAIN FROM CON- ‘‘(E) a trust, (not greater than 4 taxable years) beginning STRUCTIVE OWNERSHIP TRANS- ‘‘(F) a common trust fund, with such first taxable year. ACTIONS. ‘‘(G) a passive foreign investment company (as SEC. 1312. LIMITATIONS ON WELFARE BENEFIT (a) IN GENERAL.—Part IV of subchapter P of defined in section 1297 without regard to sub- FUNDS OF 10 OR MORE EMPLOYER chapter 1 (relating to special rules for deter- section (e) thereof), PLANS. mining capital gains and losses) is amended by ‘‘(H) a foreign personal holding company, (a) BENEFITS TO WHICH EXCEPTION APPLIES.— inserting after section 1259 the following new ‘‘(I) a foreign investment company (as defined Section 419A(f)(6)(A) (relating to exception for section: in section 1246(b)), and 10 or more employer plans) is amended to read ‘‘SEC. 1260. GAINS FROM CONSTRUCTIVE OWNER- ‘‘(J) a REMIC. as follows: SHIP TRANSACTIONS. ‘‘(d) CONSTRUCTIVE OWNERSHIP TRANS- ‘‘(A) IN GENERAL.—This subpart shall not ‘‘(a) IN GENERAL.—If the taxpayer has gain ACTION.—For purposes of this section— apply to a welfare benefit fund which is part of from a constructive ownership transaction with ‘‘(1) IN GENERAL.—The taxpayer shall be a 10 or more employer plan if the only benefits respect to any financial asset and such gain treated as having entered into a constructive provided through the fund are 1 or more of the would (without regard to this section) be treated ownership transaction with respect to any fi- following: as a long-term capital gain— nancial asset if the taxpayer— August 2, 1999 CONGRESSIONAL RECORD — SENATE S10055 ‘‘(A) holds a long position under a notional ‘‘Sec. 1260. Gains from constructive ownership fer for which a deduction is not allowable under principal contract with respect to the financial transactions.’’. subparagraph (A), determined without regard to asset, (c) EFFECTIVE DATE.—The amendments made when such transfer is made. ‘‘(B) enters into a forward or futures contract by this section shall apply to transactions en- ‘‘(ii) PAYMENTS BY OTHER PERSONS.—For pur- to acquire the financial asset, tered into after July 11, 1999. poses of clause (i), payments made by any other ‘‘(C) is the holder of a call option, and is the person pursuant to an understanding or expec- grantor of a put option, with respect to the fi- SEC. 1315. CHARITABLE SPLIT-DOLLAR LIFE IN- tation referred to in subparagraph (A) shall be SURANCE, ANNUITY, AND ENDOW- nancial asset and such options have substan- MENT CONTRACTS. treated as made by the organization. tially equal strike prices and substantially con- ‘‘(iii) REPORTING.—Any organization on (a) IN GENERAL.—Subsection (f) of section 170 temporaneous maturity dates, or (relating to disallowance of deduction in certain which tax is imposed by clause (i) with respect ‘‘(D) to the extent provided in regulations pre- cases and special rules), as amended by section to any premium shall file an annual return scribed by the Secretary, enters into 1 or more 807, is amended by adding at the end the fol- which includes— other transactions (or acquires 1 or more posi- ‘‘(I) the amount of such premium paid during lowing new paragraph: tions) that have substantially the same effect as the year and the name and TIN of each bene- ‘‘(11) SPLIT-DOLLAR LIFE INSURANCE, ANNUITY, a transaction described in any of the preceding ficiary under the contract to which the premium AND ENDOWMENT CONTRACTS.— subparagraphs. relates, and ‘‘(A) IN GENERAL.—Nothing in this section or ‘‘(2) EXCEPTION FOR POSITIONS WHICH ARE ‘‘(II) such other information as the Secretary in section 545(b)(2), 556(b)(2), 642(c), 2055, MARKED TO MARKET.—This section shall not may require. apply to any constructive ownership transaction 2106(a)(2), or 2522 shall be construed to allow a deduction, and no deduction shall be allowed, The penalties applicable to returns required if all of the positions which are part of such under section 6033 shall apply to returns re- transaction are marked to market under any for any transfer to or for the use of an organiza- tion described in subsection (c) if in connection quired under this clause. Returns required provision of this title or the regulations there- under this clause shall be furnished at such time under. with such transfer— ‘‘(i) the organization directly or indirectly and in such manner as the Secretary shall by ‘‘(3) LONG POSITION UNDER NOTIONAL PRIN- pays, or has previously paid, any premium on forms or regulations require. CIPAL CONTRACT.—A person shall be treated as ‘‘(iv) CERTAIN RULES TO APPLY.—The tax im- holding a long position under a notional prin- any personal benefit contract with respect to the transferor, or posed by this subparagraph shall be treated as cipal contract with respect to any financial imposed by chapter 42 for purposes of this title asset if such person— ‘‘(ii) there is an understanding or expectation that any person will directly or indirectly pay other than subchapter B of chapter 42. ‘‘(A) has the right to be paid (or receive credit ‘‘(G) SPECIAL RULE WHERE STATE REQUIRES for) all or substantially all of the investment any premium on any personal benefit contract with respect to the transferor. SPECIFICATION OF CHARITABLE GIFT ANNUITANT yield (including appreciation) on such financial IN CONTRACT.—In the case of an obligation to asset for a specified period, and ‘‘(B) PERSONAL BENEFIT CONTRACT.—For pur- poses of subparagraph (A), the term ‘personal pay a charitable gift annuity referred to in sub- ‘‘(B) is obligated to reimburse (or provide cred- paragraph (D) which is entered into under the it for) all or substantially all of any decline in benefit contract’ means, with respect to the transferor, any life insurance, annuity, or en- laws of a State which requires, in order for the the value of such financial asset. charitable gift annuity to be exempt from insur- ‘‘(4) FORWARD CONTRACT.—The term ‘forward dowment contract if any direct or indirect bene- ficiary under such contract is the transferor, ance regulation by such State, that each bene- contract’ means any contract to acquire in the ficiary under the charitable gift annuity be future (or provide or receive credit for the future any member of the transferor’s family, or any other person (other than an organization de- named as a beneficiary under an annuity con- value of) any financial asset. tract issued by an insurance company author- ‘‘(e) NET UNDERLYING LONG-TERM CAPITAL scribed in subsection (c)) designated by the ized to transact business in such State, the re- GAIN.—For purposes of this section, in the case transferor. quirements of clauses (i) and (ii) of subpara- of any constructive ownership transaction with ‘‘(C) APPLICATION TO CHARITABLE REMAINDER TRUSTS.—In the case of a transfer to a trust re- graph (D) shall be treated as met if— respect to any financial asset, the term ‘net un- ‘‘(i) such State law requirement was in effect derlying long-term capital gain’ means the ag- ferred to in subparagraph (E), references in sub- paragraphs (A) and (F) to an organization de- on February 8, 1999, gregate net capital gain that the taxpayer ‘‘(ii) each such beneficiary under the chari- scribed in subsection (c) shall be treated as a would have had if— table gift annuity is a bona fide resident of such reference to such trust. ‘‘(1) the financial asset had been acquired for State at the time the obligation to pay a chari- ‘‘(D) EXCEPTION FOR CERTAIN ANNUITY CON- fair market value on the date such transaction table gift annuity is entered into, and TRACTS.—If, in connection with a transfer to or was opened and sold for fair market value on ‘‘(iii) the only persons entitled to payments for the use of an organization described in sub- the date such transaction was closed, and under such contract are persons entitled to pay- ‘‘(2) only gains and losses that would have re- section (c), such organization incurs an obliga- ments as beneficiaries under such obligation on sulted from the deemed ownership under para- tion to pay a charitable gift annuity (as defined the date such obligation is entered into. graph (1) were taken into account. in section 501(m)) and such organization pur- ‘‘(H) MEMBER OF FAMILY.—For purposes of chases any annuity contract to fund such obli- The amount of the net underlying long-term this paragraph, an individual’s family consists gation, persons receiving payments under the capital gain with respect to any financial asset of the individual’s grandparents, the grand- charitable gift annuity shall not be treated for shall be treated as zero unless the amount there- parents of such individual’s spouse, the lineal purposes of subparagraph (B) as indirect bene- of is established by clear and convincing evi- descendants of such grandparents, and any ficiaries under such contract if— dence. spouse of such a lineal descendant. ‘‘(i) such organization possesses all of the in- ‘‘(f) SPECIAL RULE WHERE TAXPAYER TAKES ‘‘(I) REGULATIONS.—The Secretary shall pre- DELIVERY.—Except as provided in regulations cidents of ownership under such contract, scribe such regulations as may be necessary or prescribed by the Secretary, if a constructive ‘‘(ii) such organization is entitled to all the appropriate to carry out the purposes of this ownership transaction is closed by reason of payments under such contract, and paragraph, including regulations to prevent the taking delivery, this section shall be applied as ‘‘(iii) the timing and amount of payments avoidance of such purposes.’’. if the taxpayer had sold all the contracts, op- under such contract are substantially the same (b) EFFECTIVE DATE.— tions, or other positions which are part of such as the timing and amount of payments to each (1) IN GENERAL.—Except as otherwise provided transaction for fair market value on the closing such person under such obligation (as such obli- in this section, the amendment made by this sec- date. The amount of gain recognized under the gation is in effect at the time of such transfer). tion shall apply to transfers made after Feb- preceding sentence shall not exceed the amount ‘‘(E) EXCEPTION FOR CERTAIN CONTRACTS HELD ruary 8, 1999. of gain treated as ordinary income under sub- BY CHARITABLE REMAINDER TRUSTS.—A person (2) EXCISE TAX.—Except as provided in para- section (a). Proper adjustments shall be made in shall not be treated for purposes of subpara- graph (3) of this subsection, section 170(f)(11)(F) the amount of any gain or loss subsequently re- graph (B) as an indirect beneficiary under any of the Internal Revenue Code of 1986 (as added alized for gain recognized and treated as ordi- life insurance, annuity, or endowment contract by this section) shall apply to premiums paid nary income under this subsection. held by a charitable remainder annuity trust or after the date of the enactment of this Act. ‘‘(g) REGULATIONS.—The Secretary shall pre- a charitable remainder unitrust (as defined in (3) REPORTING.—Clause (iii) of such section scribe such regulations as may be necessary or section 664(d)) solely by reason of being entitled 170(f)(11)(F) shall apply to premiums paid after appropriate to carry out the purposes of this to any payment referred to in paragraph (1)(A) February 8, 1999 (determined as if the tax im- section, including regulations— or (2)(A) of section 664(d) if— posed by such section applies to premiums paid ‘‘(1) to permit taxpayers to mark to market ‘‘(i) such trust possesses all of the incidents of after such date). constructive ownership transactions in lieu of ownership under such contract, and SEC. 1316. RESTRICTION ON USE OF REAL ESTATE applying this section, and ‘‘(ii) such trust is entitled to all the payments INVESTMENT TRUSTS TO AVOID ES- ‘‘(2) to exclude certain forward contracts under such contract. TIMATED TAX PAYMENT REQUIRE- which do not convey substantially all of the ‘‘(F) EXCISE TAX ON PREMIUMS PAID.— MENTS. economic return with respect to a financial ‘‘(i) IN GENERAL.—There is hereby imposed on (a) IN GENERAL.—Subsection (e) of section asset.’’. any organization described in subsection (c) an 6655 (relating to estimated tax by corporations) (b) CLERICAL AMENDMENT.—The table of sec- excise tax equal to the premiums paid by such is amended by adding at the end the following tions for part IV of subchapter P of chapter 1 is organization on any life insurance, annuity, or new paragraph: amended by adding at the end the following endowment contract if the payment of premiums ‘‘(5) TREATMENT OF CERTAIN REIT DIVI- new item: on such contract is in connection with a trans- DENDS.— S10056 CONGRESSIONAL RECORD — SENATE August 2, 1999

‘‘(A) IN GENERAL.—Any dividend received pant or beneficiary under the employee stock (2) EXCEPTION FOR CERTAIN PLANS.—In the from a closely held real estate investment trust ownership plan if— case of any— by any person which owns (after application of ‘‘(i) the aggregate number of deemed-owned (A) employee stock ownership plan established subsections (d)(5) and (l)(3)(B) of section 856) 10 shares of such individual and the members of after July 14, 1999, or percent or more (by vote or value) of the stock the individual’s family is at least 20 percent of (B) employee stock ownership plan established or beneficial interests in the trust shall be taken the number of outstanding shares of stock in the on or before such date if employer securities into account in computing annualized income S corporation constituting employer securities of held by the plan consist of stock in a corpora- installments under paragraph (2) in a manner such plan, or tion with respect to which an election under sec- similar to the manner under which partnership ‘‘(ii) if such individual is not described in tion 1362(a) of the Internal Revenue Code of income inclusions are taken into account. clause (i), the number of deemed-owned shares 1986 is not in effect on such date, ‘‘(B) CLOSELY HELD REIT.—For purposes of of such individual is at least 10 percent of the the amendments made by this section shall subparagraph (A), the term ‘closely held real es- number of outstanding shares of stock in such apply to plan years ending after July 14, 1999. tate investment trust’ means a real estate invest- corporation. SEC. 1318. MODIFICATION OF ANTI-ABUSE RULES ‘‘(B) TREATMENT OF FAMILY MEMBERS.—In the ment trust with respect to which 5 or fewer per- RELATED TO ASSUMPTION OF LI- sons own (after application of subsections (d)(5) case of a disqualified individual described in ABILITY. subparagraph (A)(i), any member of the individ- and (l)(3)(B) of section 856) 50 percent or more (a) IN GENERAL.—Section 357(b)(1) (relating to ual’s family with deemed-owned shares shall be (by vote or value) of the stock or beneficial in- tax avoidance purpose) is amended— terests in the trust.’’. treated as a disqualified individual if not other- (1) by striking ‘‘the principal purpose’’ and (b) EFFECTIVE DATE.—The amendment made wise a disqualified individual under subpara- inserting ‘‘a principal purpose’’, and by subsection (a) shall apply to estimated tax graph (A). (2) by striking ‘‘on the exchange’’ in subpara- ‘‘(C) DEEMED-OWNED SHARES.—For purposes payments due on or after September 15, 1999. graph (A). of this paragraph— SEC. 1317. PROHIBITED ALLOCATIONS OF S COR- (b) EFFECTIVE DATE.—The amendments made ‘‘(i) IN GENERAL.—The term ‘deemed-owned PORATION STOCK HELD BY AN ESOP. by this section shall apply to assumptions of li- shares’ means, with respect to any participant (a) IN GENERAL.—Section 409 (relating to ability after July 14, 1999. qualifications for tax credit employee stock own- or beneficiary under the employee stock owner- ership plans) is amended by redesignating sub- ship plan— SEC. 1319. ALLOCATION OF BASIS ON TRANSFERS ‘‘(I) the stock in the S corporation consti- OF INTANGIBLES IN CERTAIN NON- section (p) as subsection (q) and by inserting RECOGNITION TRANSACTIONS. after subsection (o) the following new sub- tuting employer securities of such plan which is allocated to such participant or beneficiary (a) TRANSFERS TO CORPORATIONS.—Section 351 section: (relating to transfer to corporation controlled by ROHIBITED ALLOCATION OF SECURITIES under the plan, and ‘‘(p) P transferor) is amended by redesignating sub- IN AN S CORPORATION.— ‘‘(II) such participant’s or beneficiary’s share section (h) as subsection (i) and by inserting ‘‘(1) IN GENERAL.—An employee stock owner- of the stock in such corporation which is held after subsection (g) the following new sub- ship plan holding employer securities consisting by such trust but which is not allocated under section: of stock in an S corporation shall provide that the plan to employees. ‘‘(h) TREATMENT OF TRANSFERS OF INTAN- no portion of the assets of the plan attributable ‘‘(ii) INDIVIDUAL’S SHARE OF UNALLOCATED GIBLE PROPERTY.— to (or allocable in lieu of) such employer securi- STOCK.—For purposes of clause (i)(II), an indi- ‘‘(1) TRANSFERS OF LESS THAN ALL SUBSTAN- ties may, during a nonallocation year, accrue vidual’s share of unallocated S corporation TIAL RIGHTS. (or be allocated directly or indirectly under any stock held by the trust is the amount of the ‘‘(A) IN GENERAL.—A transfer of an interest in plan of the employer meeting the requirements unallocated stock which would be allocated to intangible property (as defined in section of section 401(a)) for the benefit of any disquali- such individual if the unallocated stock were al- 936(h)(3)(B)) shall be treated under this section fied individual. located to individuals in the same proportions as as a transfer of property even if the transfer is ‘‘(2) FAILURE TO MEET REQUIREMENTS.—If a the most recent stock allocation under the plan. plan fails to meet the requirements of paragraph ‘‘(D) MEMBER OF FAMILY.—For purposes of of less than all of the substantial rights of the (1)— this paragraph, the term ‘member of the family’ transferor in the property. ‘‘(A) the plan shall be treated as having dis- means, with respect to any individual— ‘‘(B) ALLOCATION OF BASIS.—In the case of a tributed to any disqualified individual the ‘‘(i) the spouse of the individual, transfer of less than all of the substantial rights amount allocated to the account of such indi- ‘‘(ii) an ancestor or lineal descendant of the of the transferor in the intangible property, the vidual in violation of paragraph (1) at the time individual or the individual’s spouse, transferor’s basis immediately before the trans- of such allocation, ‘‘(iii) a brother or sister of the individual or fer shall be allocated among the rights retained ‘‘(B) the provisions of section 4979A shall the individual’s spouse and any lineal descend- by the transferor and the rights transferred on apply, and ant of the brother or sister, and the basis of their respective fair market values. ‘‘(C) the statutory period for the assessment of ‘‘(iv) the spouse of any person described in ‘‘(2) NONRECOGNITION NOT TO APPLY TO INTAN- any tax imposed by section 4979A shall not ex- clause (ii) or (iii). GIBLE PROPERTY DEVELOPED FOR TRANSFEREE.— pire before the date which is 3 years from the ‘‘(5) DEFINITIONS.—For purposes of this This section shall not apply to a transfer of in- later of— subsection— tangible property developed by the transferor or ‘‘(i) the allocation of employer securities re- ‘‘(A) EMPLOYEE STOCK OWNERSHIP PLAN.—The any related person if such development was pur- sulting in the failure under paragraph (1) giving term ‘employee stock ownership plan’ has the suant to an arrangement with the transferee.’’. rise to such tax, or meaning given such term by section 4975(e)(7). (b) TRANSFERS TO PARTNERSHIPS.—Subsection ‘‘(ii) the date on which the Secretary is noti- ‘‘(B) EMPLOYER SECURITIES.—The term ‘em- (d) of section 721 is amended to read as follows: fied of such failure. ployer security’ has the meaning given such ‘‘(d) TRANSFERS OF INTANGIBLE PROPERTY.— ‘‘(3) NONALLOCATION YEAR.—For purposes of term by section 409(l). ‘‘(1) IN GENERAL.—Rules similar to the rules of this subsection— ‘‘(6) REGULATIONS.—The Secretary shall pre- section 351(h) shall apply for purposes of this ‘‘(A) IN GENERAL.—The term ‘nonallocation scribe such regulations as may be necessary to section. carry out the purposes of this subsection, in- year’ means any plan year of an employee stock ‘‘(2) TRANSFERS TO FOREIGN PARTNERSHIPS.— ownership plan if, at any time during such plan cluding regulations providing for the treatment For regulatory authority to treat intangibles year— of any stock option, restricted stock, stock ap- transferred to a partnership as sold, see section ‘‘(i) such plan holds employer securities con- preciation right, phantom stock unit, perform- 367(d)(3).’’. ance unit, or similar instrument granted by an sisting of stock in an S corporation, and (c) EFFECTIVE DATE.—The amendments made ‘‘(ii) disqualified individuals own at least 50 S corporation as stock or not stock.’’. by this section shall apply to transfers on or (b) EXCISE TAX.— percent of the number of outstanding shares of after the date of the enactment of this Act. stock in such S corporation. (1) IN GENERAL.—Section 4979A(b) (defining SEC. 1320. CONTROLLED ENTITIES INELIGIBLE ‘‘(B) ATTRIBUTION RULES.—For purposes of prohibited allocation) is amended by striking FOR REIT STATUS. subparagraph (A)— ‘‘and’’ at the end of paragraph (1), by striking (a) IN GENERAL.—Subsection (a) of section 856 ‘‘(i) IN GENERAL.—The rules of section 318(a) the period at the end of paragraph (2) and in- shall apply for purposes of determining owner- serting ‘‘, and’’, and by adding at the end the (relating to definition of real estate investment ship, except that— following new paragraph: trust) is amended by striking ‘‘and’’ at the end ‘‘(I) in applying paragraph (1) thereof, the ‘‘(3) any allocation of employer securities of paragraph (6), by redesignating paragraph members of an individual’s family shall include which violates the provisions of section 409(p).’’. (7) as paragraph (8), and by inserting after members of the family described in paragraph (2) LIABILITY.—Section 4979A(c) (defining li- paragraph (6) the following new paragraph: (4)(D), and ability for tax) is amended by adding at the end ‘‘(7) which is not a controlled entity (as de- ‘‘(II) paragraph (4) thereof shall not apply. the following new sentence: ‘‘In the case of a fined in subsection (l)); and’’. ‘‘(ii) DEEMED-OWNED SHARES.—Notwith- prohibited allocation described in subsection (b) CONTROLLED ENTITY.—Section 856 is standing the employee trust exception in section (b)(3), such tax shall be paid by the S corpora- amended by adding at the end the following 318(a)(2)(B)(i), disqualified individuals shall be tion the stock in which was allocated in viola- new subsection: treated as owning deemed-owned shares. tion of section 409(p).’’. ‘‘(l) CONTROLLED ENTITY.— ‘‘(4) DISQUALIFIED INDIVIDUAL.—For purposes (c) EFFECTIVE DATES.— ‘‘(1) IN GENERAL.—For purposes of subsection of this subsection— (1) IN GENERAL.—The amendments made by (a)(7), an entity is a controlled entity if, at any ‘‘(A) IN GENERAL.—The term ‘disqualified in- this section shall apply to plan years beginning time during the taxable year, one person (other dividual’ means any individual who is a partici- after December 31, 2000. than a qualified entity)— August 2, 1999 CONGRESSIONAL RECORD — SENATE S10057 ‘‘(A) in the case of a corporation, owns they also may file any appropriate amended re- ‘‘(A) a corporation (hereafter in this sub- stock— turns to conform their tax treatment consistent section referred to as the ‘corporate partner’) re- ‘‘(i) possessing at least 50 percent of the total with the corporation’s loss of REIT status. ceives a distribution from a partnership of stock voting power of the stock of such corporation, or ‘‘(IV) REGULATIONS.—The Secretary shall pro- in another corporation (hereafter in this sub- ‘‘(ii) having a value equal to at least 50 per- vide appropriate regulations setting forth trans- section referred to as the ‘distributed corpora- cent of the total value of the stock of such cor- feree liability and other provisions to ensure col- tion’), poration, or lection of tax and the proper administration of ‘‘(B) the corporate partner has control of the ‘‘(B) in the case of a trust, owns beneficial in- this provision. distributed corporation immediately after the terests in the trust which would meet the re- ‘‘(iv) Clauses (ii) and (iii) shall not apply if distribution or at any time thereafter, and quirements of subparagraph (A) if such interests the corporation allows its incubator REIT status ‘‘(C) the partnership’s adjusted basis in such were stock. to lapse at the end of the initial 2-year eligi- stock immediately before the distribution exceed- ‘‘(2) QUALIFIED ENTITY.—For purposes of bility period without engaging in a going public ed the corporate partner’s adjusted basis in such paragraph (1), the term ‘qualified entity’ transaction if the corporation is not a controlled stock immediately after the distribution, means— entity as of the beginning of its fourth taxable then an amount equal to such excess shall be ‘‘(A) any real estate investment trust, and year. In such a case, the corporation’s directors applied to reduce (in accordance with sub- ‘‘(B) any partnership in which one real estate may still be liable for the penalties described in section (c)) the basis of property held by the dis- investment trust owns at least 50 percent of the subparagraph (D) during the eligibility period. tributed corporation at such time (or, if the cor- capital and profits interests in the partnership. ‘‘(D) SPECIAL PENALTIES.—If the Secretary de- porate partner does not control the distributed ‘‘(3) ATTRIBUTION RULES.—For purposes of termines that an incubator REIT election was corporation at such time, at the time the cor- this paragraphs (1) and (2)— filed for a principal purpose other than as part porate partner first has such control). ‘‘(A) IN GENERAL.—Rules similar to the rules of a reasonable plan to undertake a going public ‘‘(2) EXCEPTION FOR CERTAIN DISTRIBUTIONS of subsections (d)(5) and (h)(3) shall apply. transaction, an excise tax of $20,000 shall be im- BEFORE CONTROL ACQUIRED.—Paragraph (1) shall not apply to any distribution of stock in ‘‘(B) STAPLED ENTITIES.—A group of entities posed on each of the corporation’s directors for which are stapled entities (as defined in section each taxable year for which an election was in the distributed corporation if— ‘‘(A) the corporate partner does not have con- 269B(c)(2)) shall be treated as 1 person. effect. trol of such corporation immediately after such ‘‘(4) EXCEPTION FOR CERTAIN NEW REITS.— ‘‘(E) GOING PUBLIC TRANSACTION.—For pur- distribution, and ‘‘(A) IN GENERAL.—The term ‘controlled enti- poses of this paragraph, a going public trans- ‘‘(B) the corporate partner establishes to the ty’ shall not include an incubator REIT. action means— satisfaction of the Secretary that such distribu- ‘‘(B) INCUBATOR REIT.—A corporation shall be ‘‘(i) a public offering of shares of the stock of tion was not part of a plan or arrangement to treated as an incubator REIT for any taxable the incubator REIT; acquire control of the distributed corporation. year during the eligibility period if it meets all ‘‘(ii) a transaction, or series of transactions, ‘‘(3) LIMITATIONS ON BASIS REDUCTION.— the following requirements for such year: that results in the stock of the incubator REIT ‘‘(A) IN GENERAL.—The amount of the reduc- ‘‘(i) The corporation elects to be treated as an being regularly traded on an established securi- tion under paragraph (1) shall not exceed the incubator REIT. ties market and that results in at least 50 per- amount by which the sum of the aggregate ad- ‘‘(ii) The corporation has only voting common cent of such stock being held by shareholders justed bases of the property and the amount of stock outstanding. who are unrelated to persons who held such money of the distributed corporation exceeds the ‘‘(iii) Not more than 50 percent of the corpora- stock before it began to be so regularly traded; corporate partner’s adjusted basis in the stock tion’s real estate assets consist of mortgages. or of the distributed corporation. ‘‘(iv) From not later than the beginning of the ‘‘(iii) any transaction resulting in ownership ‘‘(B) REDUCTION NOT TO EXCEED ADJUSTED last half of the second taxable year, at least 10 of the REIT by 200 or more persons (excluding BASIS OF PROPERTY.—No reduction under para- percent of the corporation’s capital is provided the largest single shareholder) who in the aggre- graph (1) in the basis of any property shall ex- by lenders or equity investors who are unrelated gate own at least 50 percent of the stock of the ceed the adjusted basis of such property (deter- to the corporation’s largest shareholder. REIT. mined without regard to such reduction). ‘‘(v) The corporation annually increases the For the purposes of this subparagraph, the rules ‘‘(4) GAIN RECOGNITION WHERE REDUCTION value of its real estate assets by at least 10 per- of paragraph (3) shall apply in determining the LIMITED.—If the amount of any reduction under cent. ownership of stock. paragraph (1) (determined after the application of paragraph (3)(A)) exceeds the aggregate ad- ‘‘(vi) The directors of the corporation adopt a ‘‘(F) DEFINITIONS.—The term ‘established se- resolution setting forth an intent to engage in a curities market’ shall have the meaning set forth justed bases of the property of the distributed going public transaction. in the regulations under section 897.’’. corporation— ‘‘(A) such excess shall be recognized by the No election may be made with respect to any (c) CONFORMING AMENDMENT.—Paragraph (2) corporate partner as long-term capital gain, and REIT if an election under this subsection was in of section 856(h) is amended by striking ‘‘and ‘‘(B) the corporate partner’s adjusted basis in effect for any predecessor of such REIT. (6)’’ each place it appears and inserting ‘‘, (6), the stock of the distributed corporation shall be ‘‘(C) ELIGIBILITY PERIOD.— and (7)’’. increased by such excess. ‘‘(i) IN GENERAL.—The eligibility period (for (d) EFFECTIVE DATE.— ‘‘(5) CONTROL.—For purposes of this sub- which an incubator REIT election can be made) (1) IN GENERAL.—The amendments made by section, the term ‘control’ means ownership of begins with the REIT’s second taxable year and this section shall apply to taxable years ending stock meeting the requirements of section ends at the close of the REIT’s third taxable after July 14, 1999. 1504(a)(2). year, except that the REIT may, subject to (2) EXCEPTION FOR EXISTING CONTROLLED EN- ‘‘(6) INDIRECT DISTRIBUTIONS.—For purposes clauses (ii), (iii), and (iv), elect to extend such TITIES.—The amendments made by this section of paragraph (1), if a corporation acquires period for an additional 2 taxable years. shall not apply to any entity which is a con- (other than in a distribution from a partnership) ‘‘(ii) GOING PUBLIC TRANSACTION.—A REIT trolled entity (as defined in section 856(l) of the stock the basis of which is determined in whole may not elect to extend the eligibility period Internal Revenue Code of 1986, as added by this or in part by reference to subsection (a)(2) or under clause (i) unless it enters into an agree- section) as of July 14, 1999, which is a real es- (b), the corporation shall be treated as receiving ment with the Secretary that if it does not en- tate investment trust for the taxable year which a distribution of such stock from a partnership. gage in a going public transaction by the end of includes such date, and which has significant ‘‘(7) SPECIAL RULE FOR STOCK IN CONTROLLED the extended eligibility period, it shall pay Fed- business assets or activities as of such date. For CORPORATION.—If the property held by a distrib- eral income taxes for the 2 years of the extended purposes of the preceding sentence, an entity uted corporation is stock in a corporation which eligibility period as if it had not made an incu- shall be treated as such a controlled entity on the distributed corporation controls, this sub- bator REIT election and had ceased to qualify July 14, 1999, if it becomes such an entity after section shall be applied to reduce the basis of as a REIT for those 2 taxable years. such date in a transaction— the property of such controlled corporation. ‘‘(iii) RETURNS, INTEREST, AND NOTICE.— (A) made pursuant to a written agreement This subsection shall be reapplied to any prop- ‘‘(I) RETURNS.—In the event the corporation which was binding on such date and at all times erty of any controlled corporation which is ceases to be treated as a REIT by operation of thereafter, or stock in a corporation which it controls. clause (ii), the corporation shall file any appro- (B) described on or before such date in a filing ‘‘(8) REGULATIONS.—The Secretary shall pre- priate amended returns reflecting the change in with the Securities and Exchange Commission scribe such regulations as may be necessary to status within 3 months of the close of the ex- required solely by reason of the transaction. carry out the purposes of this subsection, in- tended eligibility period. SEC. 1321. DISTRIBUTIONS TO A CORPORATE cluding regulations to avoid double counting ‘‘(II) INTEREST.—Interest shall be payable on PARTNER OF STOCK IN ANOTHER and to prevent the abuse of such purposes.’’. any tax imposed by reason of clause (ii) for any CORPORATION. (b) EFFECTIVE DATE.—The amendment made taxable year but, unless there was a finding (a) IN GENERAL.—Section 732 (relating to basis by this section shall apply to distributions made under subparagraph (D), no substantial under- of distributed property other than money) is after July 14, 1999. payment penalties shall be imposed. amended by adding at the end the following TITLE XIV—TECHNICAL CORRECTIONS ‘‘(III) NOTICE.—The corporation shall, at the new subsection: SEC. 1401. AMENDMENTS RELATED TO TAX AND same time it files its returns under subclause (I), ‘‘(f) CORRESPONDING ADJUSTMENT TO BASIS OF TRADE RELIEF EXTENSION ACT OF notify its shareholders and any other persons ASSETS OF A DISTRIBUTED CORPORATION CON- 1998. whose tax position is, or may reasonably be ex- TROLLED BY A CORPORATE PARTNER.— (a) AMENDMENT RELATED TO SECTION 1004(b) pected to be, affected by the change in status so ‘‘(1) IN GENERAL.—If— OF THE ACT.—Subsection (d) of section 6104 is S10058 CONGRESSIONAL RECORD — SENATE August 2, 1999 amended by adding at the end the following (2) The amendment made by paragraph (1) (1) in subsection (a), by striking ‘‘2001 and new paragraph: shall take effect as if included in the amend- 2005 on or after September 1 of each year in- ‘‘(6) APPLICATION TO NONEXEMPT CHARITABLE ments made by section 1201 of the Small Busi- volved’’ and inserting ‘‘2001, 2005, and 2009 in TRUSTS AND NONEXEMPT PRIVATE FOUNDA- ness Job Protection Act of 1996. the month of September of each year involved’’; TIONS.—The organizations referred to in para- (c) AMOUNT OF IRA CONTRIBUTION OF LESSER (2) in subsection (b), by adding at the end the graphs (1) and (2) of section 6033(d) shall com- EARNING SPOUSE.— following new sentence: ‘‘To effectuate the pur- ply with the requirements of this subsection re- (1) Clause (ii) of section 219(c)(1)(B) is amend- poses of this paragraph, the Secretary may enter lating to annual returns filed under section 6033 ed by striking ‘‘and’’ at the end of subclause (I), into a cooperative agreement, pursuant to the in the same manner as the organizations re- by redesignating subclause (II) as subclause Federal Grant and Cooperative Agreement Act ferred to in paragraph (1).’’. (III), and by inserting after subclause (I) the of 1977 (31 U.S.C. 6301 et seq.), with the Amer- (b) AMENDMENT RELATED TO SECTION 4003 OF following new subclause: ican Savings Education Council.’’; ‘‘(II) the amount of any designated non- THE ACT.—Subsection (b) of section 4003 of the (3) in subsection (e)(2)— Tax and Trade Relief Extension Act of 1998 is deductible contribution (as defined in section (A) by striking ‘‘Committee on Labor and amended by inserting ‘‘(7)(A)(i)(II),’’ after 408(o)) on behalf of such spouse for such taxable Human Resources’’ in subparagraph (B) and in- ‘‘(5)(A)(ii)(I),’’. year, and’’. serting ‘‘Committee on Health, Education, (2) The amendment made by paragraph (1) (c) EFFECTIVE DATE.—The amendments made Labor, and Pensions’’; shall take effect as if included in section 1427 of by this section shall take effect as if included in (B) by striking subparagraph (D) and insert- the Small Business Job Protection Act of 1996. the provisions of the Tax and Trade Relief Ex- ing the following: (d) MODIFIED ENDOWMENT CONTRACTS.— ‘‘(D) the Chairman and Ranking Member of tension Act of 1998 to which they relate. (1) Paragraph (2) of section 7702A(a) is the Subcommittee on Labor, Health and Human SEC. 1402. AMENDMENTS RELATED TO INTERNAL amended by inserting ‘‘or this paragraph’’ be- Services, and Education of the Committee on REVENUE SERVICE RESTRUCTURING fore the period. AND REFORM ACT OF 1998. Appropriations of the House of Representatives (2) Clause (ii) of section 7702A(c)(3)(A) is and the Chairman and Ranking Member of the (a) AMENDMENT RELATED TO 1103 OF THE amended by striking ‘‘under the contract’’ and Subcommittee on Labor, Health and Human ACT.—Paragraph (6) of section 6103(k) is inserting ‘‘under the old contract’’. Services, and Education of the Committee on amended— (3) The amendments made by this subsection (1) by inserting ‘‘and an officer or employee of Appropriations of the Senate;’’; shall take effect as if included in the amend- (C) by redesignating subparagraph (G) as sub- the Office of Treasury Inspector General for Tax ments made by section 5012 of the Technical and paragraph (J); and Administration’’ after ‘‘internal revenue officer Miscellaneous Revenue Act of 1988. (D) by inserting after subparagraph (F) the (e) LUMP-SUM DISTRIBUTIONS.— or employee’’, and following new subparagraphs: (1) Clause (ii) of section 401(k)(10)(B) is (2) by striking ‘‘INTERNAL REVENUE’’ in the ‘‘(G) the Chairman and Ranking Member of amended by adding at the end the following heading and inserting ‘‘CERTAIN’’. the Committee on Finance of the Senate; (b) AMENDMENT RELATED TO SECTION 3509 OF new sentence: ‘‘Such term includes a distribu- ‘‘(H) the Chairman and Ranking Member of THE ACT.—Subparagraph (A) of section tion of an annuity contract from— the Committee on Ways and Means of the House ‘‘(I) a trust which forms a part of a plan de- 6110(g)(5) is amended by inserting ‘‘, any Chief of Representatives; scribed in section 401(a) and which is exempt Counsel advice,’’ after ‘‘technical advice memo- ‘‘(I) the Chairman and Ranking Member of from tax under section 501(a), or randum’’. the Subcommittee on Employer-Employee Rela- ‘‘(II) an annuity plan described in section (c) EFFECTIVE DATE.—The amendments made tions of the Committee on Education and the by this section shall take effect as if included in 403(a).’’. (2) The amendment made by paragraph (1) Workforce of the House of Representatives; the provisions of the Internal Revenue Service shall take effect as if included in section 1401 of and’’; Restructuring and Reform Act of 1998 to which the Small Business Job Protection Act of 1996. (4) in subsection (e)(3)(A)— they relate. (A) by striking ‘‘There shall be no more than (f) TENTATIVE CARRYBACK ADJUSTMENTS OF 200 additional participants.’’ and inserting SEC. 1403. AMENDMENTS RELATED TO TAXPAYER LOSSES FROM SECTION 1256 CONTRACTS.— RELIEF ACT OF 1997. (1) Subsection (a) of section 6411 is amended ‘‘The participants in the National Summit shall (a) AMENDMENT RELATED TO SECTION 302 OF by striking ‘‘section 1212(a)(1)’’ and inserting also include additional participants appointed THE ACT.—The last sentence of section ‘‘subsection (a)(1) or (c) of section 1212’’. under this subparagraph.’’; 3405(e)(1)(B) is amended by inserting ‘‘(other (2) The amendment made by paragraph (1) (B) by striking ‘‘one-half shall be appointed than a Roth IRA)’’ after ‘‘individual retirement shall take effect as if included in the amend- by the President,’’ in clause (i) and inserting plan’’. ments made by section 504 of the Economic Re- ‘‘not more than 100 participants shall be ap- (b) AMENDMENTS RELATED TO SECTION 1072 OF covery Tax Act of 1981. pointed under this clause by the President,’’, THE ACT.— SEC. 1405. CLERICAL CHANGES. and by striking ‘‘and’’ at the end of clause (i); (1) Clause (ii) of section 415(c)(3)(D) and sub- (1) Subsection (f) of section 67 is amended by (C) by striking ‘‘one-half shall be appointed paragraph (B) of section 403(b)(3) are each striking ‘‘the last sentence’’ and inserting ‘‘the by the elected leaders of Congress’’ in clause (ii) amended by striking ‘‘section 125 or’’ and insert- second sentence’’. and inserting ‘‘not more than 100 participants ing ‘‘section 125, 132(f)(4), or’’. (2) The heading for paragraph (5) of section shall be appointed under this clause by the (2) Paragraph (2) of section 414(s) is amended 408(d) is amended to read as follows: elected leaders of Congress’’, and by striking the by striking ‘‘section 125, 402(e)(3)’’ and inserting ‘‘(5) DISTRIBUTIONS OF EXCESS CONTRIBUTIONS period at the end of clause (ii) and inserting ‘‘; ‘‘section 125, 132(f)(4), 402(e)(3)’’. AFTER DUE DATE FOR TAXABLE YEAR AND CER- and’’; and (D) by adding at the end the following new (c) AMENDMENT RELATED TO SECTION 1454 OF TAIN EXCESS ROLLOVER CONTRIBUTIONS.—’’. clause: THE ACT.—Subsection (a) of section 7436 is (3) The heading for subparagraph (B) of sec- ‘‘(iii) The President, in consultation with the amended by inserting before the period at the tion 529(e)(3) is amended by striking ‘‘UNDER elected leaders of Congress referred to in sub- end of the first sentence ‘‘and the proper GUARANTEED PLANS’’. section (a), may appoint under this clause addi- amount of employment tax under such deter- (4)(A) Subsection (e) of section 678 is amended tional participants to the National Summit. The mination’’. by striking ‘‘an electing small business corpora- number of such additional participants ap- (d) EFFECTIVE DATE.—The amendments made tion’’ and inserting ‘‘an S corporation’’. pointed under this clause may not exceed the by this section shall take effect as if included in (B) Clause (v) of section 6103(e)(1)(D) is lesser of 3 percent of the total number of all ad- the provisions of the Taxpayer Relief of 1997 to amended to read as follows: ‘‘(v) if the corporation was an S corporation, ditional participants appointed under this para- which they relate. any person who was a shareholder during any graph, or 10. Such additional participants shall SEC. 1404. OTHER TECHNICAL CORRECTIONS. part of the period covered by such return during be appointed from persons nominated by the or- (a) AFFILIATED CORPORATIONS IN CONTEXT OF which an election under section 1362(a) was in ganization referred to in subsection (b)(2) which WORTHLESS SECURITIES.— effect, or’’. is made up of private sector businesses and asso- (1) Subparagraph (A) of section 165(g)(3) is (5) Subparagraph (B) of section 995(b)(3) is ciations partnered with Government entities to amended to read as follows: amended by striking ‘‘the Military Security Act promote long term financial security in retire- ‘‘(A) the taxpayer owns directly stock in such of 1954 (22 U.S.C. 1934)’’ and inserting ‘‘section ment through savings and with which the Sec- corporation meeting the requirements of section 38 of the International Security Assistance and retary is required thereunder to consult and co- 1504(a)(2), and’’. Arms Export Control Act of 1976 (22 U.S.C. operate and shall not be Federal, State, or local (2) Paragraph (3) of section 165(g) is amended 2778)’’. government employees.’’; by striking the last sentence. (6) Subparagraph (B) of section 4946(c)(3) is (5) in subsection (e)(3)(B), by striking ‘‘Janu- (3) The amendments made by this subsection amended by striking ‘‘the lowest rate of com- ary 31, 1998’’ in subparagraph (B) and inserting shall apply to taxable years beginning after De- pensation prescribed for GS–16 of the General ‘‘May 1, 2001, May 1, 2005, and May 1, 2009, for cember 31, 1984. Schedule under section 5332’’ and inserting ‘‘the each of the subsequent summits, respectively’’; (b) REFERENCE TO CERTAIN STATE PLANS.— lowest rate of basic pay for the Senior Executive (6) in subsection (f)(1)(C), by inserting ‘‘, no (1) Subparagraph (B) of section 51(d)(2) is Service under section 5382’’. later than 90 days prior to the date of the com- amended— SEC. 1406. TECHNICAL CORRECTIONS TO SAVER mencement of the National Summit,’’ after (A) by striking ‘‘plan approved’’ and inserting ACT. ‘‘comment’’ in paragraph (1)(C); ‘‘program funded’’, and Section 517 of the Employee Retirement In- (7) in subsection (g), by inserting ‘‘, in con- (B) by striking ‘‘(relating to assistance for come Security Act of 1974 (29 U.S.C. 1147) is sultation with the congressional leaders speci- needy families with minor children)’’. amended— fied in subsection (e)(2),’’ after ‘‘report’’; August 2, 1999 CONGRESSIONAL RECORD — SENATE S10059 (8) in subsection (i)— heath effects from human exposure to the sub- through (ff) of clause (i)(I) (referred to in this (A) by striking ‘‘beginning on or after October stance, including the unburned fuel or its com- subclause as a ‘State or local covered person’) to 1, 1997’’ in paragraph (1) and inserting ‘‘2001, bustion byproducts, other than those caused by off-site consequence analysis information relat- 2005, and 2009’’; and the heat of the fire or impact of the explosion.’’; ing to stationary sources located in the person’s (B) by adding at the end the following new and State; paragraph: (5) by inserting the following new subpara- ‘‘(dd) allows a State or local covered person to ‘‘(3) RECEPTION AND REPRESENTATION AUTHOR- graph at the end of paragraph (2): provide, for official use, off-site consequence ITY.—The Secretary is hereby granted reception ‘‘(D) The term ‘retail facility’ means a sta- analysis information relating to stationary and representation authority limited specifically tionary source at which more than one-half of sources located in the person’s State to a State to the events at the National Summit. The Sec- the income is obtained from direct sales to end or local covered person in a contiguous State; retary shall use any private contributions re- users or at which more than one-half of the fuel and ceived in connection with the National Summit sold, by volume, is sold through a cylinder ex- ‘‘(ee) allows a State or local covered person to prior to using funds appropriated for purposes change program.’’. obtain for official use, by request to the Admin- of the National Summit pursuant to this para- SEC. 3. PUBLIC ACCESS TO OFF-SITE CON- istrator, off-site consequence analysis informa- graph.’’; and SEQUENCE ANALYSIS INFORMATION. tion that is not available to the person under (9) in subsection (k)— (a) IN GENERAL.—Section 112(r)(7) of the item (cc). ‘‘(iii) AVAILABILITY UNDER FREEDOM OF INFOR- (A) by striking ‘‘shall enter into a contract on Clean Air Act (42 U.S.C. 7412(r)(7)) is amended MATION ACT.— a sole-source basis’’ and inserting ‘‘may enter by adding at the end the following: ‘‘(I) FIRST YEAR.—Off-site consequence anal- into a contract on a sole-source basis’’; and ‘‘(H) PUBLIC ACCESS TO OFF-SITE CONSEQUENCE ANALYSIS INFORMATION.— ysis information, and any ranking of stationary (B) by striking ‘‘fiscal year 1998’’ and insert- sources derived from the information, shall not ing ‘‘fiscal years 2001, 2005, and 2009’’. ‘‘(i) DEFINITIONS.—In this subparagraph: ‘‘(I) COVERED PERSON.—The term ‘covered per- be made available under section 552 of title 5, TITLE XV—COMPLIANCE WITH son’ means— United States Code, during the 1-year period be- CONGRESSIONAL BUDGET ACT ‘‘(aa) an officer or employee of the United ginning on the date of enactment of this sub- SEC. 1501. SUNSET OF PROVISIONS OF ACT. States; paragraph. All provisions of, and amendments made by, ‘‘(bb) an officer or employee of an agent or ‘‘(II) AFTER FIRST YEAR.—If the regulations this Act which are in effect on September 30, contractor of the Federal Government; under clause (ii) are promulgated on or before 2009, shall cease to apply as of the close of Sep- ‘‘(cc) an officer or employee of a State or local the end of the period described in subclause (I), tember 30, 2009. government; off-site consequence analysis information cov- ‘‘(dd) an officer or employee of an agent or ered by the regulations, and any ranking of sta- f contractor of a State or local government; tionary sources derived from the information, CHEMICAL SAFETY INFORMATION, ‘‘(ee) an individual affiliated with an entity shall not be made available under section 552 of title 5, United States Code, after the end of that SITE SECURITY AND FUELS REG- that has been given, by a State or local govern- ment, responsibility for preventing, planning period. ULATORY RELIEF ACT for, or responding to accidental releases; ‘‘(III) APPLICABILITY.—Subclauses (I) and (II) Mr. LUGAR. Mr. President, I ask the ‘‘(ff) an officer or employee or an agent or apply to off-site consequence analysis informa- Chair lay before the Senate a message contractor of an entity described in item (ee); tion submitted to the Administrator before, on, and or after the date of enactment of this subpara- from the House of Representatives on ‘‘(gg) a qualified researcher under clause (vii). graph. the bill (S. 880) to amend the Clean Air ‘‘(II) OFFICIAL USE.—The term ‘official use’ ‘‘(iv) AVAILABILITY OF INFORMATION DURING Act to remove flammable fuels from means an action of a Federal, State, or local TRANSITION PERIOD.—The Administrator shall the list of substances with respect to government agency or an entity referred to in make off-site consequence analysis information which reporting and other activities subclause (I)(ee) intended to carry out a func- available to covered persons for official use in a are required under the risk manage- tion relevant to preventing, planning for, or re- manner that meets the requirements of items (cc) ment plan program. sponding to accidental releases. through (ee) of clause (ii)(II), and to the public ‘‘(III) OFF-SITE CONSEQUENCE ANALYSIS INFOR- in a form that does not make available any in- The PRESIDING OFFICER laid be- MATION.—The term ‘off-site consequence anal- formation concerning the identity or location of fore the Senate the following message ysis information’ means those portions of a risk stationary sources, during the period— from the House of Representatives: management plan, excluding the executive sum- ‘‘(I) beginning on the date of enactment of Resolved, That the bill from the Senate (S. mary of the plan, consisting of an evaluation of this subparagraph; and 880) entitled ‘‘An Act to amend the Clean Air 1 or more worst-case release scenarios or alter- ‘‘(II) ending on the earlier of the date of pro- Act to remove flammable fuels from the list native release scenarios, and any electronic mulgation of the regulations under clause (ii) or of substances with respect to which report- data base created by the Administrator from the date that is 1 year after the date of enact- ment of this subparagraph. ing and other activities are required under those portions. ‘‘(v) PROHIBITION ON UNAUTHORIZED DISCLO- the risk management plan program’’, do pass ‘‘(IV) RISK MANAGEMENT PLAN.—The term ‘risk management plan’ means a risk manage- SURE OF INFORMATION BY COVERED PERSONS.— with the following amendments: ‘‘(I) IN GENERAL.—Beginning on the date of ment plan submitted to the Administrator by an Strike out all after the enacting clause and enactment of this subparagraph, a covered per- owner or operator of a stationary source under insert: son shall not disclose to the public off-site con- subparagraph (B)(iii). SECTION 1. SHORT TITLE. sequence analysis information in any form, or ‘‘(ii) REGULATIONS.—Not later than 1 year This Act may be cited as the ‘‘Chemical Safety after the date of enactment of this subpara- any statewide or national ranking of identified Information, Site Security and Fuels Regulatory graph, the President shall— stationary sources derived from such informa- Relief Act’’. ‘‘(I) assess— tion, except as authorized by this subparagraph SEC. 2. REMOVAL OF PROPANE SOLD BY RETAIL- ‘‘(aa) the increased risk of terrorist and other (including the regulations promulgated under ERS AND OTHER FLAMMABLE FUELS criminal activity associated with the posting of clause (ii)). After the end of the 1-year period FROM RISK MANAGEMENT LIST. off-site consequence analysis information on the beginning on the date of enactment of this sub- Section 112(r) of the Clean Air Act (42 U.S.C. Internet; and paragraph, if regulations have not been promul- 7412(r)) is amended— ‘‘(bb) the incentives created by public disclo- gated under clause (ii), the preceding sentence (1) by redesignating subparagraphs (A) sure of off-site consequence analysis informa- shall not apply. through (C) of paragraph (4) as clauses (i) tion for reduction in the risk of accidental re- ‘‘(II) CRIMINAL PENALTIES.—Notwithstanding through (iii), respectively, and indenting appro- leases; and section 113, a covered person that willfully vio- priately; ‘‘(II) based on the assessment under subclause lates a restriction or prohibition established by (2) by striking in paragraph (4) ‘‘Adminis- (I), promulgate regulations governing the dis- this subparagraph (including the regulations trator shall consider each of the following cri- tribution of off-site consequence analysis infor- promulgated under clause (ii)) shall, upon con- teria—’’ and inserting the following: mation in a manner that, in the opinion of the viction, be fined for an infraction under section ‘‘Administrator— President, minimizes the likelihood of accidental 3571 of title 18, United States Code, (but shall ‘‘(A) shall consider—’’; releases and the risk described in subclause not be subject to imprisonment) for each unau- (3) in subparagraph (A)(iii) (as designated by (I)(aa) and the likelihood of harm to public thorized disclosure of off-site consequence anal- paragraphs (1) and (2)), of paragraph (4)by health and welfare, and— ysis information, except that subsection (d) of striking the period at the end and inserting ‘‘; ‘‘(aa) allows access by any member of the pub- such section 3571 shall not apply to a case in and’’; lic to paper copies of off-site consequence anal- which the offense results in pecuniary loss un- (4) by adding at the end of paragraph (4) the ysis information for a limited number of sta- less the defendant knew that such loss would following: tionary sources located anywhere in the United occur. The disclosure of off-site consequence ‘‘(B) shall not list a flammable substance States, without any geographical restriction; analysis information for each specific stationary when used as a fuel or held for sale as a fuel at ‘‘(bb) allows other public access to off-site source shall be considered a separate offense. a retail facility under this subsection solely be- consequence analysis information as appro- The total of all penalties that may be imposed cause of the explosive or flammable properties of priate; on a single person or organization under this the substance, unless a fire or explosion caused ‘‘(cc) allows access for official use by a cov- item shall not exceed $1,000,000 for violations by the substance will result in acute adverse ered person described in any of items (cc) committed during any 1 calendar year. S10060 CONGRESSIONAL RECORD — SENATE August 2, 1999

‘‘(III) APPLICABILITY.—If the owner or oper- caused by criminal activity. As part of this re- mission to local emergency response personnel of ator of a stationary source makes off-site con- port, the Attorney General, using available data information intended to help the local emer- sequence analysis information relating to that to the extent possible, and a sampling of covered gency response personnel respond to chemical stationary source available to the public with- stationary sources selected at the discretion of accidents or related environmental or public out restriction— the Attorney General, and in consultation with health threats; and ‘‘(aa) subclauses (I) and (II) shall not apply appropriate State, local, and Federal govern- (B) contains an analysis of the adequacy of with respect to the information; and mental agencies, affected industry, and the pub- the information required to be submitted and the ‘‘(bb) the owner or operator shall notify the lic, shall review the vulnerability of covered sta- efficacy of the methods for delivering the infor- Administrator of the public availability of the tionary sources to criminal and terrorist activ- mation to local emergency response personnel. information. ity, current industry practices regarding site se- (c) REEVALUATION OF REGULATIONS.—The ‘‘(IV) LIST.—The Administrator shall main- curity, and security of transportation of regu- President shall reevaluate the regulations pro- tain and make publicly available a list of all lated substances. The Attorney General shall mulgated under this section within 6 years after stationary sources that have provided notifica- submit this report, containing the results of the the enactment of this Act. If the President deter- tion under subclause (III)(bb). review, together with recommendations, if any, mines not to modify such regulations, the Presi- ‘‘(vi) NOTICE.—The Administrator shall pro- for reducing vulnerability of covered stationary dent shall publish a notice in the Federal Reg- vide notice of the definition of official use as sources to criminal and terrorist activity, to the ister stating that such reevaluation has been provided in clause (i)(III) and examples of ac- Committee on Commerce of the United States completed and that a determination has been tions that would and would not meet that defi- House of Representatives and the Committee on made not to modify the regulations. Such notice nition, and notice of the restrictions on further Environment and Public Works of the United shall include an explanation of the basis of such dissemination and the penalties established by States Senate and other relevant committees of decision. this Act to each covered person who receives off- Congress. SEC. 4. PUBLIC MEETING DURING MORATORIUM site consequence analysis information under ‘‘(II) INTERIM REPORT.—Not later than 12 PERIOD. clause (iv) and each covered person who re- months after the date of enactment of this sub- (a) IN GENERAL.—Not later than 180 days ceives off-site consequence analysis information paragraph, the Attorney General shall submit to after the date of enactment of this Act, each for an official use under the regulations promul- the Committee on Commerce of the United States owner or operator of a stationary source covered gated under clause (ii). House of Representatives and the Committee on by section 112(r)(7)(B)(ii) of the Clean Air Act ‘‘(vii) QUALIFIED RESEARCHERS.— Environment and Public Works of the United shall convene a public meeting, after reasonable ‘‘(I) IN GENERAL.—Not later than 180 days States Senate, and other relevant committees of public notice, in order to describe and discuss after the date of enactment of this subpara- Congress, an interim report that includes, at a the local implications of the risk management graph, the Administrator, in consultation with minimum— plan submitted by the stationary source pursu- the Attorney General, shall develop and imple- ‘‘(aa) the preliminary findings under sub- ant to section 112(r)(7)(B)(iii) of the Clean Air ment a system for providing off-site consequence clause (I); Act, including a summary of the off-site con- analysis information, including facility identi- ‘‘(bb) the methods used to develop the find- sequence analysis portion of the plan. Two or fication, to any qualified researcher, including ings; and more stationary sources may conduct a joint a qualified researcher from industry or any pub- ‘‘(cc) an explanation of the activities expected meeting. In lieu of conducting such a meeting, lic interest group. to occur that could cause the findings of the re- small business stationary sources as defined in ‘‘(II) LIMITATION ON DISSEMINATION.—The port under subclause (I) to be different than the section 507(c)(1) of the Clean Air Act may com- system shall not allow the researcher to dissemi- preliminary findings. ply with this section by publicly posting a sum- nate, or make available on the Internet, the off- ‘‘(III) AVAILABILITY OF INFORMATION.—Infor- mary of the off-site consequence analysis infor- site consequence analysis information, or any mation that is developed by the Attorney Gen- mation for their facility not later than 180 days portion of the off-site consequence analysis in- eral or requested by the Attorney General and after the enactment of this Act. Not later than formation, received under this clause. received from a covered stationary source for the 10 months after the date of enactment of this ‘‘(viii) READ-ONLY INFORMATION TECHNOLOGY purpose of conducting the review under sub- Act, each such owner or operator shall send a SYSTEM.—In consultation with the Attorney clauses (I) and (II) shall be exempt from disclo- certification to the director of the Federal Bu- General and the heads of other appropriate Fed- sure under section 552 of title 5, United States reau of Investigation stating that such meeting eral agencies, the Administrator shall establish Code, if such information would pose a threat to has been held, or that such summary has been an information technology system that provides national security. posted, within 1 year prior to, or within 6 for the availability to the public of off-site con- ‘‘(xii) SCOPE.—This subparagraph— months after, the date of the enactment of this sequence analysis information by means of a ‘‘(I) applies only to covered persons; and Act. This section shall not apply to sources that central data base under the control of the Fed- ‘‘(II) does not restrict the dissemination of off- employ only Program 1 processes within the eral Government that contains information that site consequence analysis information by any meaning of regulations promulgated under sec- users may read, but that provides no means by covered person in any manner or form except in tion 112(r)(7)(B)(i) of the Clean Air Act. which an electronic or mechanical copy of the the form of a risk management plan or an elec- (b) ENFORCEMENT.—The Administrator of the information may be made. tronic data base created by the Administrator Environmental Protection Agency may bring an ‘‘(ix) VOLUNTARY INDUSTRY ACCIDENT PREVEN- from off-site consequence analysis information. action in the appropriate United States district TION STANDARDS.—The Environmental Protec- ‘‘(xiii) AUTHORIZATION OF APPROPRIATIONS.— court against any person who fails or refuses to tion Agency, the Department of Justice, and There are authorized to be appropriated to the comply with the requirements of this section, other appropriate agencies may provide tech- Administrator and the Attorney General such and such court may issue such orders, and take nical assistance to owners and operators of sta- sums as are necessary to carry out this subpara- such other actions, as may be necessary to re- tionary sources and participate in the develop- graph (including the regulations promulgated quire compliance with such requirements. ment of voluntary industry standards that will under clause (ii)), to remain available until ex- help achieve the objectives set forth in para- pended.’’. Mr. LAUTENBERG. Mr. President, I graph (1). (b) REPORTS.— was heavily involved in the negotia- ‘‘(x) EFFECT ON STATE OR LOCAL LAW.— (1) DEFINITION OF ACCIDENTAL RELEASE.—In tions over the manager’s amendment ‘‘(I) IN GENERAL.—Subject to subclause (II), this subsection, the term ‘‘accidental release’’ to S. 880 as passed by the Senate by this subparagraph (including the regulations has the meaning given the term in section unanimous consent on June 23, and promulgated under this subparagraph) shall su- 112(r)(2) of the Clean Air Act (42 U.S.C. persede any provision of State or local law that 7412(r)(2)). have carefully studied the House’s is inconsistent with this subparagraph (includ- (2) REPORT ON STATUS OF CERTAIN AMEND- amendments to S. 880, which we accept ing the regulations). MENTS.—Not later than 2 years after the date of today. I rise to clarify the congres- ‘‘(II) AVAILABILITY OF INFORMATION UNDER enactment of this Act, the Comptroller General sional intent with respect to S. 880, the STATE LAW.—Nothing in this subparagraph pre- of the United States shall submit to Congress a Chemical Safety Information, Site Se- cludes a State from making available data on report on the status of the development of curity and Fuels Regulatory Relief Act the off-site consequences of chemical releases amendments to the National Fire Protection As- of 1999, as we pass it and send it to the collected in accordance with State law. sociation Code for Liquefied Petroleum Gas that President. ‘‘(xi) REPORT.— will result in the provision of information to ‘‘(I) IN GENERAL.—Not later than 3 years after local emergency response personnel concerning Balance between the right-to-know the date of enactment of this subparagraph, the the off-site effects of accidental releases of sub- effect and risks of criminal activity Attorney General, in consultation with appro- stances exempted from listing under section (New section 112(r)(7)(H)(ii)): The priate State, local, and Federal Government 112(r)(4)(B) of the Clean Air Act (as added by amendment directs the President to agencies, affected industry, and the public, section 3). promulgate regulations governing the shall submit to Congress a report that describes (3) REPORT ON COMPLIANCE WITH CERTAIN IN- disclosure of the off-site Consequence the extent to which regulations promulgated FORMATION SUBMISSION REQUIREMENTS.—Not Analysis (OCA) information in a way under this paragraph have resulted in actions, later than 3 years after the date of enactment of including the design and maintenance of safe this Act, the Comptroller General of the United that minimizes the likelihood of re- facilities, that are effective in detecting, pre- States shall submit to Congress a report that— leases of the regulated chemicals, venting, and minimizing the consequences of re- (A) describes the level of compliance with Fed- whether these releases are accidental leases of regulated substances that may be eral and State requirements relating to the sub- or the result of criminal activity. In August 2, 1999 CONGRESSIONAL RECORD — SENATE S10061 other words, the amendment calls for a Public access to OCA information re- mentation of the two assessments and balancing of the risk-reducing effect of gardless of geographic location (New all information and data the President public disclosure (the ‘‘Right-to-Know section 112(r)(7)(H)(ii)(II)(aa)): The utilizes in preparation of the assess- Effect’’) against the potential of in- amendment makes clear that the regu- ments should be a part of the adminis- creased risk of criminal activity asso- lations shall allow any member of the trative record associated with any de- ciated with the posting of the OCA in- public access to the OCA information termination the President makes re- formation on the Internet. Most impor- for a limited number of facilities re- garding the regulations, or any modi- tantly, reducing the threat of criminal gardless of geographic location. This fication of the regulations. activity is not the sole or even primary reflects the fact that the need to com- General duty; Finally, the Act leaves focus of the rule-making. Rather the pare the neighborhood facility with fa- the general duty clause of section 112(r) objective is to minimize the release of cilities in other locations, or to com- of the Clean Air Act unchanged, in rec- regulated chemicals, which requires a pare one’s community with others, is ognition of the fact that the Environ- balanced approach, and nothing in this just as important and appropriate for mental Protection Agency believes Act necessarily precludes the eventual the public as it is for officials. that the general duty clause applies to electronic dissemination of the infor- Voluntary disclosure of OCA infor- releases caused by criminal or terrorist mation. mation: New section 112(r)(7)(H)(v)(III): activities. Off-site consequence analysis infor- The amendment directs any facility Mr. INHOFE. Mr. President, I rise mation (New section 112(r)(7)(H)(i)(IV) that chooses to provide its OCA infor- today to discuss my legislation, S. 880, and (V), and (xii)): The amendment de- mation to the public without legally- the Fuels Regulatory Relief Act, which fines ‘‘off-site consequence analysis in- binding restriction to inform the pub- passed Congress today, and according formation’’ (OCA information) as a por- lic, through EPA, of that voluntary to the Administration should be signed tion of a ‘‘risk management plan,’’ disclosure. into law shortly. This bill was passed which is in turn defined as referring Qualified researchers (New section in the Senate by unanimous consent on only to information ‘‘submitted to the 112(r)(7)(H)(vii)): The amendment di- June 23, 1999, and passed by the House Administrator by an owner or operator rects the Administrator, in consulta- with amendments, on July 21, 1999. of a stationary source under subpara- tion with the Attorney General, to de- I appreciate the speediness with graph (B)’’ of section 112(r)(7) of the velop a system for providing access to which the House acted on this legisla- Clean Air Act. Similarly, the amend- OCA information for ‘‘qualified re- tion and the support of my good friend ment makes clear that its restrictions searchers.’’ The Administrator is given Chairman TOM BLILEY. Unfortunately apply only to OCA information in the authority to determine whether re- the Senate is forced to act just as form submitted to the Administrator searchers are ‘‘qualified,’’ but is other- quickly on this legislation because of (New section 112(r)(7)(H)(xii)). In other wise given no authority to screen re- delays created by the administration. words, no information, except OCA in- searchers nor to deny them access to In early 1998, I raised concerns to the formation submitted to the Adminis- OCA information on the basis of polit- administration regarding the security trator, in the form in which it was sub- ical persuasion, likely findings, pur- risks posed by disseminating the worst- mitted, is affected by the amendment. pose to which findings would be put, or case scenario data on the Internet. The Even identical information that is any other such factor. FBI agreed with my concerns. Despite made available to members of the pub- Interaction with State law (New sec- the acknowledgment of the risks in- lic (unless there is a legally-binding re- tion 112(r)(7)H)(x)(II)): The amendment volved the administration did not co- striction) or that is submitted to state makes clear that States with existing operate with Congress to fix this prob- or local agencies is not affected by the or new laws that collect even data that lem until the eleventh hour. constraints on disclosure established is identical to OCA information are not by the Act. precluded from making the State- or Because of the urgency in passing Official use (New section local-gathered data available. this legislation I have decided that a 112(r)(7)(H)(i)(III) and (vi)): The amend- Reports on vulnerability to criminal conference would not be beneficial. ment defines ‘‘official use’’ broadly— activity (New section 112(r)(7)(H)(xi)): While I agree with most of the changes ‘‘an action . . . intended to carry out a The amendment directs the Attorney incorporated in the House-passed function relevant to preventing, plan- General to submit a preliminary report version, due to the haste of their con- ning for or responding to accidental re- in one year and a final report in three sideration, I feel the necessity to ex- leases or criminal releases’’—to reflect years on the extent to which the Risk plain in more detail my view, as the the sense that there are a broad range Management Program regulations have lead sponsor, of one particular provi- of official uses to which the OCA infor- resulted in actions, by stationary sion. mation may appropriately be put, so sources among others, that are effec- Section 3 of the act requires the ‘‘At- long as its public availability is con- tive in detecting, preventing, and mini- torney General, and in consultation strained in accord with the regulations mizing the consequences of releases with appropriate State, local, and Fed- developed under the amendment. The caused by criminal activity. The Comp- eral governmental agencies, affected bill does not authorize the Adminis- troller General is specifically directed industry, and the public, shall review trator to establish restrictions on such to study the ‘‘design and maintenance the vulnerability of covered stationary official use. of safe facilities’’ so that Congress may sources to criminal and terrorist activ- State and local official access to all learn the extent to which the best pro- ity, current industry practices regard- OCA information (New section tection against criminal activity is to ing site security, and security of trans- 112(r)(7)(H)(ii)(II)(ee)): The amendment maintain a facility that is inherently portation of regulated substances.’’ requires that any covered State and safe. In carrying out this provision, I ask local official be provided, upon request, Reevaluation of disclosure regula- the Attorney General, in consulting OCA information on any facility in the tions (Section 3(c)): The Act directs the with the Federal governmental agen- country, not just on facilities in the in- President to reevaluate the regulations cies, to work with the Intelligence dividual’s State or community. This governing disclosure within six years. Community as well as the FBI. If any reflects, among other things, the fact This reevaluation should be made on technical assistance regarding chemi- that a comprehensive evaluation of the the same basis used to promulgate the cals is needed I direct the Attorney facility next door should include com- regulations—i.e. the President should General to work with the Department parison with other facilities, including perform two separate assessments: (1) of Energy facilities, particularly the those owned by the same company or an assessment of the increased risk of Hazardous Material Spill Center at the its competitors. Similarly, a com- criminal activity associated with the Nevada Test site and the Sandia lab- prehensive evaluation of the hazard re- internet posting of OCA information, oratory in New Mexico. Regarding the duction programs of Community A re- and (2) an assessment of the incentives transportation issues, the Attorney quires a comparison of the hazards pre- created by public disclosure of OCA in- General should consult with the De- sented by facilities in Community A formation for reduction in the risk of partment of Transportation. In addi- with those presented in Community B. accidental releases. Written docu- tion, I would like to emphasize that S10062 CONGRESSIONAL RECORD — SENATE August 2, 1999 any confidential information or na- Senator HAGEL, or his designee, from Chief of the United States European Com- tional security information should be 9:30 to 10 a.m., to be followed by Sen- mand; closely safeguarded. ator REED of Rhode Island for 10 min- Whereas General Clark was integral to the formulation of the Dayton Accords; Mr. LUGAR. Mr. President, I ask utes, Senator BAUCUS for 10 minutes, unanimous consent that the Senate Whereas General Clark most recently dis- and Senator DURBIN for 10 minutes. tinguished himself by his tireless, resource- concur in the amendment of the House. The PRESIDING OFFICER. Without ful, and successful leadership of the first The PRESIDING OFFICER. Without objection, it is so ordered. military action of the North Atlantic Treaty objection, it is so ordered. Mr. LUGAR. Mr. President, further, I Organization despite severe constraints; and f ask unanimous consent that the Sen- Whereas General Clark’s record of exem- ate stand in recess from the hours of plary and dedicated service is an example EXECUTIVE CALENDAR 12:30 p.m. to 2:15 p.m. for the weekly which all military officers should seek to policy conferences to meet. emulate and is deserving of special recogni- tion: Now, therefore, be it EXECUTIVE SESSION The PRESIDING OFFICER. Without objection, it is so ordered. Resolved, That— Mr. LUGAR. Mr. President, I ask f (1) the United States Senate commends unanimous consent that the Senate im- and expresses its gratitude to General Wes- mediately proceed to executive session PROGRAM ley K. Clark, United States Army, for his to consider the following nominations Mr. LUGAR. Mr. President, for the outstanding record of military service to the information of all Senators, the Senate United States of America; and en bloc: Executive Calendar Nos. 202, (2) the Secretary of the Senate shall trans- 205, 207, and 216. will convene at 9:30 a.m. and be in a pe- mit a copy of this resolution to General Wes- I further ask unanimous consent that riod of morning business until 10:30. ley K. Clark. the nominations be confirmed en bloc, Following morning business, the Sen- f the motions to reconsider be laid upon ate will resume consideration of the the table, and that any statements re- pending disaster relief amendment to ADJOURNMENT UNTIL 9:30 A.M. lating to the nominations be printed in the Agriculture appropriations bill. It TOMORROW ECORD is hoped that a time agreement can be the R , the President be imme- Mr. LUGAR. Mr. President, if there made so that votes on this issue can diately notified of the Senate’s action, is no further business to come before take place by tomorrow afternoon. and the Senate then return to legisla- the Senate, I ask unanimous consent As a reminder, the Senate will recess tive session. that the Senate stand in adjournment The PRESIDING OFFICER. Without tomorrow from 12:30 to 2:15 so that the under the previous order. weekly policy conferences can meet. objection, it is so ordered. There being no objection, the Senate, The nominations were considered and Further, a cloture motion on the dairy at 7:16 p.m., adjourned until Tuesday, confirmed, as follows: compact amendment was filed today. August 3, 1999, at 9:30 a.m. BARRY GOLDWATER SCHOLARSHIP & Therefore, under the provisions of rule EXCELLENCE IN EDUCATION FOUNDATION XXII, that cloture vote will take place f James Roger Angel, of Arizona, to be a 1 hour after the Senate convenes on NOMINATIONS Member of the Board of Trustees of the Wednesday unless an agreement is Barry Goldwater Scholarship and Excellence made by the two leaders. Executive nominations received by in Education Foundation for a term expiring f the Senate August 2, 1999: February 4, 2002. DEPARTMENT OF TRANSPORTATION COMMENDING GENERAL WESLEY NATIONAL COMMISSION ON LIBRARIES AND STEPHEN D. VAN BEEK, OF THE DISTRICT OF COLUM- INFORMATION SCIENCE K. CLARK BIA, TO BE ASSOCIATE DEPUTY SECRETARY OF TRANS- Jack E. Hightower, of Texas, to be a Mem- Mr. LUGAR. Mr. President, I ask PORTATION, VICE JOHN CHARLES HORSLEY, RESIGNED. ber of the National Commission on Libraries unanimous consent that Senate Reso- DEPARTMENT OF THE TREASURY and Information Science for a term expiring lution 169 be discharged from the NEAL S. WOLIN, OF ILLINOIS, TO BE GENERAL COUNSEL July 19, 1999. FOR THE DEPARTMENT OF THE TREASURY, VICE ED- Armed Services Committee and, fur- WARD S. KNIGHT, RESIGNED. NATIONAL FOUNDATION ON THE ARTS AND THE ther, that the Senate proceed to its im- MISSISSIPPI RIVER COMMISSION HUMANITIES mediate consideration. Jerry D. Florence, of California, to be a SAM EPSTEIN ANGEL, OF ARKANSAS, TO BE A MEMBER The PRESIDING OFFICER. Without OF THE MISSISSIPPI RIVER COMMISSION FOR A TERM OF Member of the National Museum Services objection, it is so ordered. NINE YEARS. (REAPPOINTMENT) Board for a term expiring December 6, 2002. BRIGADIER GENERAL ROBERT H. GRIFFIN, UNITED The clerk will report. STATES ARMY, TO BE A MEMBER OF THE MISSISSIPPI DEPARTMENT OF JUSTICE The legislative clerk read as follows: RIVER COMMISSION, UNDER THE PROVISIONS OF SEC- Alejandro N. Mayorkas, of California, to be TION 2 OF AN ACT OF CONGRESS, APPROVED JUNE 1879 (21 A resolution (S. Res. 169) commending Gen- STAT. 37) (33 USC 642). United States Attorney for the Central Dis- eral Wesley K. Clark, United States Army. trict of California. f f There being no objection, the Senate proceeded to consider the resolution. CONFIRMATIONS LEGISLATIVE SESSION Mr. LUGAR. Mr. President, I ask Executive nominations confirmed by The PRESIDING OFFICER. Under unanimous consent that the resolution the Senate August 2, 1999: be agreed to, the preamble be agreed the previous order, the Senate will re- BARRY GOLDWATER SCHOLARSHIP AND sume legislative session. to, the motion to reconsider be laid EXCELLENCE IN EDUCATION FOUNDATION upon the table, and that any state- f JAMES ROGER ANGEL, OF ARIZONA, TO BE A MEMBER ments relating to S. Res. 169 be printed OF THE BOARD OF TRUSTEES OF THE BARRY GOLD- ORDERS FOR TUESDAY, AUGUST 3, in the RECORD. WATER SCHOLARSHIP AND EXCELLENCE IN EDUCATION 1999 The PRESIDING OFFICER. Without FOUNDATION FOR A TERM EXPIRING FEBRUARY 4, 2002. objection, it is so ordered. NATIONAL COMMISSION ON LIBRARIES AND Mr. LUGAR. Mr. President, I ask INFORMATION SCIENCE unanimous consent that when the Sen- The resolution (S. Res. 169) was JACK E. HIGHTOWER, OF TEXAS, TO BE A MEMBER OF ate completes its business today, it ad- agreed to. THE NATIONAL COMMISSION ON LIBRARIES AND INFOR- journ until the hour of 9:30 a.m. on The preamble was agreed to. MATION SCIENCE FOR A TERM EXPIRING JULY 19, 1999. Tuesday, August 3. I further ask unani- The resolution, with its preamble, NATIONAL FOUNDATION ON THE ARTS AND THE mous consent that on Tuesday, imme- reads as follows: HUMANITIES diately following the prayer, the Jour- S. RES. 169 JERRY D. FLORENCE, OF CALIFORNIA, TO BE A MEM- BER OF THE NATIONAL MUSEUM SERVICES BOARD FOR A nal of proceedings be approved to date, Whereas General Wesley K. Clark has had TERM EXPIRING DECEMBER 6, 2002, VICE JOHN L. BRY- the morning hour be deemed expired, a long and distinguished military career, ANT, JR., TERM EXPIRED. which includes graduating first in the class THE ABOVE NOMINATIONS WERE APPROVED SUBJECT the time for the two leaders be re- TO THE NOMINEES’ COMMITMENT TO RESPOND TO RE- of 1966 from the United States Military QUESTS TO APPEAR AND TESTIFY BEFORE ANY DULY served for their use later in the day, Academy at West Point and serving in com- and the Senate then begin a period of CONSTITUTED COMMITTEE OF THE SENATE. mand positions at every level in the United DEPARTMENT OF JUSTICE morning business until 10:30 a.m. with States Army, culminating in service concur- ALEJANDRO N. MAYORKAS, OF CALIFORNIA, TO BE Senators speaking for up to 5 minutes rently in the positions of Supreme Allied UNITED STATES ATTORNEY FOR THE CENTRAL DISTRICT each, with the following exceptions: Commander, Europe and Commander-in- OF CALIFORNIA. August 2, 1999 CONGRESSIONAL RECORD — Extensions of Remarks E1711 EXTENSIONS OF REMARKS

THE VIOLENCE PREVENTION bama, Ms. LEE of California, Ms. CHRISTENSEN serving as President of the Lion's Club, Presi- TRAINING FOR EARLY CHILD- of Virginia Islands, Mr. MALONEY of Con- dent of Madera Toastmasters, and President HOOD EDUCATORS ACT necticut, Mr. WU of Oregon, Mr. ETHERIDGE of of Madera County Farm Bureau. He was also North Carolina, Ms. JACKSON-LEE of Texas, elected last year to serve as a Trustee on the HON. SAM GEJDENSON Ms. MILLENDER-MCDONALD of California, Mr. Madera Unified School District Board. In addi- OF CONNECTICUT SCOTT of Virginia, and Mr. MCGOVERN of Mas- tion, Mr. Petrucci began the MUST Center and IN THE HOUSE OF REPRESENTATIVES sachusetts. served as its Director for two years. This pro- Monday, August 2, 1999 f gram was designed to teach vocational skills to the underprivileged to order to afford them Mr. GEJDENSON. Mr. Speaker, I rise to in- HONORING DINO PETRUCCI better job opportunities. Currently, Petrucci is troduce the Violence Prevention Training for actively involved at Howard Elementary Early Childhood Educators Act. HON. GEORGE RADANOVICH School where he attended as a boy, his chil- Students, parents, I rise to introduce the Vi- OF CALIFORNIA dren attended, and his grandchildren now at- olence Prevention Training for Early Childhood IN THE HOUSE OF REPRESENTATIVES tend. Educators Act. Students, parents, teachers and members of Monday, August 2, 1999 Mr. Speaker, I rise today to honor Dino communities across our country have been Mr. RADANOVICH. Mr. Speaker, I rise Petrucci for his outstanding accomplishments grappling with the issue of school violence. today to honor Dino Petrucci for receiving the and service to his community. I urge my col- There is no magic solution to this difficult mat- Senior Farmer of the Year Award. Dino leagues to join me in wishing Dino many more ter, there is no single cause that can be ad- Petrucci's efforts to educate and inspire young years of continued success and happiness. dressed to guarantee our schools will be vio- people toward agriculture render him deserv- f lence-free. However, I believe that to effec- ing of this award. PERSONAL EXPLANATION tively address this issue we must ensure that Dino was born on a farm in Madera and still those who are entering careers in early child- lives on the property his family cultivated while hood development and education are properly he was growing up. He attended Howard Ele- HON. GEORGE MILLER trained in violence prevention. mentary School, graduated from Madera High OF CALIFORNIA The legislation that my colleagues and I are School in 1947, and earned a college degree IN THE HOUSE OF REPRESENTATIVES introducing today will authorize the Secretary in Crop Science from Cal Poly, San Luis Monday, August 2, 1999 of Education to award grants ranging from Obispo. $500,000 to $1,000,000 to institutions of high- During his four years at Madera High, Dino Mr. GEORGE MILLER of California. Mr. er learning and other facilities in order to as- was actively involved in student government Speaker, I submit the following statement into sist them in making violence prevention train- and the Future Farmers of America. He was the CONGRESSIONAL RECORD. ing available to prospective teachers and elected Student Body Vice President and Sen- On rollcall vote No. 344 on July 29, 1999 I those returning for additional professional de- ior Class Speaker. He also served as Chapter mistakenly voted ``yea.'' I would like the velopment. Moreover, the bill will ensure that President of FFA and won the FAA State RECORD to reflect the fact that I oppose the teachers, school counselors and child care Speaking contest. amendment and should have voted ``nay''. The providers are provided with the skills nec- Petrucci went on to hold numerous leader- amendment would prohibit the District of Co- essary to prevent violent behavior in young ship positions in various organizations as a lumbia from spending its own funds on a nee- children at the very earliest stages. In 1992, young adult. He was elected the State FFA dle exchange program that has saved hun- Congress enacted legislation which funded President and was a National Public Speaker dreds of residents from death and disease similar training programs at Eastern Con- at the National FFA Convention in Kansas caused by the HIV±AIDS epidemic. I support necticut State University, University of Colo- City. In addition, he served as President of the such proven programs and oppose efforts by rado at Denver, University of Kansas, Univer- Crop Science Department at Cal Poly. Congress to intrude into the affairs of the Dis- sity of Minnesota, University of North Carolina, Mr. Petrucci was successful in his under- trict of Columbia in such a misinformed and Temple University and a dozen other colleges takings on behalf of these organizations and in heavy-handed fashion. and universities. his academic endeavors. He earned the cov- f There is evidence that strongly suggests eted American Farmer Degree and co-au- that early intervention and education is effec- thored a book that was used in school agri- TRIBUTE TO CORMAC HENNESSY tive in preventing delinquency. For example, culture departments across the state. one study has indicated that when preschool After college, Dino began his teaching ca- HON. PETER T. KING teachers instruct young children about inter- reer in the Ag Department in Victorville. Two OF NEW YORK personal problem-solving skills and other years later, he returned to Madera and em- IN THE HOUSE OF REPRESENTATIVES barked upon a 29-year career with the Madera forms of conflict resolution, children are less Monday August 2, 1999 likely to demonstrate problematic behavior, High Ag Department. During this time, Dino which is effective in preventing delinquency was actively farming a variety of crops with his Mr. KING. Mr. Speaker, I rise today to rec- later on. In addition, there is further evidence brother, Enzo. Dino and wife Peggy were also ognize the commitment and selfless dedication that indicates that support programs for fami- raising a family of two children and supporting one young man, Cormac Hennessy has made lies with very young childrenÐthose under the them on their 4±H and FFA projects. to myself, my staff and the people of the Third age of fiveÐare effective in preventing delin- Many of his former students attest that Mr. District of New York. Cormac began interning quency. Petrucci was a committed teacher, giving in my office in the Summer of 1998 and since Teachers are on the frontline every day. more hours than were required of him. For fif- that time he has exhibited all the qualities: in- They need to be prepared to discuss with the teen years, he advised the California Young tellect, wit and a certain style that make him children and the entire family how to resolve Farmers and was instrumental in the Madera truly the son of a Diplomat's Deiplomat. In issues without resorting to violence. I believe Chapter receiving recognition as ``Outstanding fact, Cormac was an inspiration to those who we must reinvest in this proven, worthwhile Chapter'' for many of those years. He also loved the game of golf, for there was never program in order to ensure that our teachers, served as State President of the California Ag too dull an assignment or too onerous a task daycare providers and school counselors have Teachers Association, and found time to serve that Cormac did not shirk for the sake of eight- the training they need to combat violence in as Chairman of the Livestock Department at een holes. I am confident that in the care of school and society at large. the Madera District Fair. two truly wonderful people, Pat and Pauline I am pleased to be joined in this effort by While balancing a family and career Dino Hennessy, Cormac will amount to something Mr. KUCINICH of Ohio, Mr. HILLIARD of Ala- has made time for community involvement by more than the self-proclaimed title of ``King of

∑ 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. E1712 CONGRESSIONAL RECORD — Extensions of Remarks August 2, 1999 all Interns.'' Indeed I am certain that his unsur- occupies 35 square miles, have had to endure my colleagues in the House of Representa- passed sarcasm, his indecipherable ``South- live military ammunition and bombing exer- tives would agree with me. If this practice ern'' dialect and his unique charm will cause cises. Vieques is the largest area in the West- were occurring in any one of the fifty States, him to rise to the highest levels of leadership ern hemisphere used for military exercises I know we would all stand together to oppose and success. I wish him all the best in his fu- with live ammunition, and the only place it. We owe our fellow American citizens in ture endeavors and I thank him for all that he where bombing still occurs near a substantial Puerto Rico the same level of respect. They has done and meant to me. civilian population. For years, the residents of deserve nothing less. In fact, their safety and f Vieques have expressed their concerns about their lives may depend on it. the negative impact that the bombing and live Mr. Speaker, I strongly encourage my col- PERSONAL EXPLANATION ammunition exercises are having on their leagues to take a hard look at this issue. health and safety. Unfortunately, their voices f HON. ASA HUTCHINSON have not been heard and that concerns me. CELEBRATING THE CITY OF OF ARKANSAS On April 19, 1999, the people of Vieques LOMITA IN THE HOUSE OF REPRESENTATIVES raised their voices once again, this time in de- spair. It was on that date, during routine mili- Monday, August 2, 1999 tary practices conducted by two Navy F/A±18 HON. STEVEN T. KUYKENDALL Mr. HUTCHINSON. Mr. Speaker, on Friday, Hornet jets, that two bombs were accidentally OF CALIFORNIA July 30, 1999, I was inadvertently detained dropped near an observation post manned by IN THE HOUSE OF REPRESENTATIVES and did not vote on rollcall No. 354 or 355. civilian security guards. As a result, a security Had I been present, I would have voted ``aye'' guard was killed and four others were wound- Monday, August 2, 1999 on both. ed. I believe that if the citizens of Puerto Rico Mr. KUYKENDALL Mr. Speaker, I rise today f had equal representation in Congress, legiti- to recognize the City of Lomita, California. mate concerns for their safety and health Lomita is celebrating its 35th year as an incor- HONORING JAN DUKE would have been better safeguarded. porated city. The City of Lomita is widely rec- Since that accident, the Navy has tempo- ognized for its rustic, small-town atmosphere HON. GEORGE RADANOVICH rarily ceased military maneuvers while an in- amongst the larger cities of the South Bay. OF CALIFORNIA vestigation is carried out, and Puerto Rico's Lomita was first established as a German IN THE HOUSE OF REPRESENTATIVES Governor, the Honorable Pedro Rossello, ap- farming community in 1907. The farming com- pointed a Commission that investigated the in- munity continued to grow throughout the Monday, August 2, 1999 cident and reported its findings to the Presi- years, and in June of 1964, after several un- Mr. RADANOVICH. Mr. Speaker, I rise dent's Special Panel on Military Operations on successful attempts, Lomita was finally incor- today to honor Jan Duke for receiving the Vieques on July 9, 1999. The Governor's porated as a city. prestigious Milken Educator Award. Duke Commission unanimously concluded that it is While surrounding communities have experi- teaches fourth grade at John Adam's Elemen- not possible to protect the people of Vieques, enced tremendous growth, Lomita has re- tary School in the Madera Unified School Dis- or the environment, from the extreme danger mained relatively unchanged since incorpora- trict. posed by live ammunition testing. The Navy tion. Lomita's small town attributes attract Jan Duke was one of four teachers in Cali- argues that Vieques is a unique site for train- young families in search of a safe, close knit fornia to receive this honor, and one of 160 to ing exercises with live ammunition, making it community. Lomita is a culturally diverse com- be honored nationwide. She is the first from essential to our National security. I've always munity and it also boasts one of the lowest Madera Unified School District to be given this worked to protect our National security, how- crime rates in the South Bay region. It is an award. ever, it should never be achieved at the ex- ideal place to raise a family and live the Amer- Beyond her role as an exemplary teacher, pense of the personal rights or safety of our ican Dream, and many of its residents are Jan is a skilled writer and presenter. Duke has own citizens. The only solution may be to end homeowners and small business entre- written two books on teaching fourth-graders permanently the military's live ammunition preneurs. and co-authored, with her husband, a book on testing on Vieques. The future looks bright for the city of Lomita. teaching individuals to read. She also advises No one in this House would tolerate what Preparations are currently underway for an national scholastic book clubs on what lit- the military is doing on Vieques if it were tak- ambitious revitalization of Lomita's downtown erature would be best for children. In addition, ing place in our Congressional district, and area to ensure that Lomita maintains its small- she conducts 5 to 20 seminars annually for neither would our constituents. Imagine trying town atmosphere. fourth-grade teachers nationwide. to explain to the voters why they should wel- Lomita has thrived over the last 35 years, Mr. Speaker, I rise today to honor Jan Duke come the bombardment of their communities and as we enter the 21st century, Lomita will for her achievements and service to the com- with live ammunition. Try convincing your con- continue to stand out as a small, unique town munity. I urge my colleagues to join me in stituents to accept, and in return thank you, for of the South Bay. I congratulate the City of wishing Jan many more years of continued having uranium-coated bombs dropped within Lomita and its 20,000 residents on this mile- success and happiness. a few miles of their homes, schools, hospitals, stone. f and public parks. Imagine asking your con- f stituents to accept having their children attend CONCERN FOR RESIDENTS OF classrooms which reverberate during the IN HONOR OF MYLDRED JONES VIEQUES, PUERTO RICO school day as live shells explode nearby. No one in this chamber would permit the continu- HON. LORETTA SANCHEZ HON. DAN BURTON ation of a practice by our own military that en- OF CALIFORNIA OF INDIANA dangers the lives of the very people we have IN THE HOUSE OF REPRESENTATIVES IN THE HOUSE OF REPRESENTATIVES been elected to represent. There's a reality about Puerto Rico, one that Monday, August 2, 1999 Monday, August 2, 1999 is wonderful and abhorrent at the same time. Ms. SANCHEZ. Mr. Speaker, today I rise to Mr. BURTON. Mr. Speaker, I rise today to The people of Puerto Rico are truly American honor Myldred Jones, an Orange County resi- bring to the forefront a very important issue citizens, part of America's great democracy, dent, and a great humanitarian, on this her that has not been given the attention it de- and that is wonderful. However, the people of ninetieth birthday. serves by this Congress. More than 9,000 Puerto Rico currently lack the single most im- Myldred moved to California from Pennsyl- American citizens, living on the island of portant tool that our democracy provides, two vania with her family when she was four years Vieques, live in fear. But, it isn't a fear of drug Senators and a voting delegation in the House old. Growing up during the Depression, the trafficking. It isn't a fear of violent gangs or ter- of Representatives, and that is abhorrent. It is Jones family experienced the poverty that af- rorism either. Our fellow citizens live in fear of precisely because the people of Puerto Rico fected millions of Americans. Even so, our own military, and I would like to explain don't have equal representation in Congress Myldred's parents, who were also her greatest why. that they need our help now. If they had real mentors, would share whatever food they had For more than 50 years, the residents of representation here, the military would have with other people. Although the Jones' family Vieques, Puerto Rico, an island encompassing the proper incentive to solve the problem of was also poor, they seemed to always have fewer than 52 square miles of which the Navy live ammunition testing on Vieques. I trust that enough to give to others. CONGRESSIONAL RECORD — Extensions of Remarks E1713 Early on, Myldred learned the lessons of hu- his father as monarch on March 3, 1961. its programs. The supporters set out to raise manitarianism, of unconditional love, and of Under his leadership Morocco has undergone $1 million in endowed scholarships. Today, providing and caring for others. These gifts a significant transformation. King Hassan fos- their success is apparent, as the Ag One En- were to become the very essence of her life. tered the evolution of a more democratic con- dowment Fund stands at over $1.4 million and Myldred began her career as a high school stitutional government, encouraged tolerance indications are that $2 million will be reached teacher and, later, became a juvenile proba- for ethnic and religious minorities in Morocco, by the end of this year. tion officer. During World War II, she was one and made measurable improvement in respect Rodger Jensen, a 1941 Fresno State grad- of the first eight WAVES from California. Her for human rights. uate, has touched the lives of countless young military career included duty as a Special As- Mr. Speaker, in the area of foreign policy, people through his involvement in Ag One, the sistant to Commandant 14th Naval District, King Hassan played an important role person- School and University, Valley Children's Hos- Assistant Director of the Department of Wel- ally in advancing the Middle East peace proc- pital, the San Joaquin River Parkway Trust, fare, and a faculty member on international re- ess. He was instrumental in bringing together the Boy Scouts, and many other organiza- lations for the Armed Forces Graduate School. leaders of Israel and the Arab states on a tions. She was also the Naval Liaison Officer for number of different occasions. It is significant Rodger Jensen is also involved in many both the United Nations and the National Red that in September 1993 Israeli Prime Minister professional affiliations including: The Cali- Cross. When she retired in 1959, she was the Yitzhak Rabin and Foreign Minister Shimon fornia Pistachio CommissionÐBoard of Direc- director of Social Services of the Navy Relief Peres stopped in Morocco to thank King Has- tors, the California Chamber of CommerceÐ Society. san on their return to Israel from Washington, Board of Directors, the California Commission After her retirement, Myldred became active D.C., following the signature of the Oslo Ac- of Agriculture, the California Pistachio Asso- in the Civil Rights Movement and marched cords on the South Lawn of the White House. ciationÐPresident, Chairman, the Fresno City with Martin Luther King from Selma, Alabama, The relationship between Morocco and the & County Chamber of CommerceÐBoard of to Montgomery, Alabama. In 1969, she joined United States has flourished under the leader- Directors, the Fresno County Farm BureauÐ Cesar Chavez on his marches for the United ship of King Hassan. Our association with Mo- Board of Directors, and the Western Pistachio Farm Workers. Her work in the Watts district rocco are long and friendly, having begun in AssociationÐBoard of Directors. of Los Angeles, California, earned her recogni- 1777 when Morocco was one of the first na- Mr. Jensen has contributed to the agri- tion from Governor Ronald Reagan, who em- tions formally to recognize the Government of culture food business by serving on many ployed her as a consultant on youth affairs. the United States of America. Ten years later, boards. In previous years, he served on the Recognizing the need that many young peo- in 1787, our two countries negotiated a Treaty boards of Mid-Cal Citrus Exchange, Sunkist ple had for assistance with different problems, of Peace and Friendship, which was the first Growers, and the Fruit Growers Supply. Myldred developed the first ``hotline'' for trou- such treaty concluded by our young nation. During his many years of involvement in ag- bled teenagers. Many of the teenagers were The unique relationship of our countries was riculture and the community Rodger has re- runaways or ``throwaways'' whose parents had strengthened and deepened under the leader- ceived numerous awards. He was given the either forced them to leave their homes, or ship of King Hassan. School of Agriculture Distinguished Service whose parents had left them. With no place to Mr. Speaker, I know that my colleagues join Award in 1980, the Fresno Foundation Award go, the teenagers were in a desperate situa- me in extending my deepest condolences to in 1989, and the FSU Alumni Arthur Safstrom tion. the Moroccan people on the passing of King Award in 1995. Mr. Jensen was also named Myldred's deep compassion to help these Hassan and also in extending to Crown Prince Ag USA Citrus Farmer of the Year in 1967. teenagers, led her to sell her home and pur- Sidi Mohammed ben Al Hassan our congratu- Mr. Speaker, I want to recognize Rodger chase another home which could house run- lations on his accession to the throne. I wish Jensen for his dedication to the community away children on a temporary basis. Out of the new King well as he assumes the awe- and the agriculture industry. I urge my col- this need was born the Casa Youth Shelter some responsibility for the welfare and well- leagues to join me in wishing Mr. Jensen which has since its inception in 1978, has as- being of the Moroccan people. many more years of continued success. sisted thousands of ``lost youth'' find their way f f back home and into the mainstream of soci- ety. RECOGNIZING RODGER B. JENSEN INTRODUCTION OF THE OMNIBUS The philosophy behind Myldred's home for MERCURY EMISSIONS REDUC- teenagers comes from a belief that all of the HON. GEORGE RADANOVICH TION ACT OF 1999 children can turn their lives into a success if OF CALIFORNIA they have the love and attention which had IN THE HOUSE OF REPRESENTATIVES HON. THOMAS H. ALLEN been denied to them all of their lives. OF MAINE Housing twelve youths at a time for a period Monday, August 2, 1999 IN THE HOUSE OF REPRESENTATIVES of two weeks, Casa Youth Shelter, has be- Mr. RADANOVICH. Mr. Speaker, I rise come a safe haven for many youth whose today to recognize Rodger Jensen for receiv- Monday, August 2, 1999 lives were on the line. To this day, Myldred ing the 1999 Community Salute honor. Mr. Mr. ALLEN. Mr. Speaker, today I rise to in- meets each of the youth and talks with them. Jensen is being honored for his dedication troduce the Omnibus Mercury Emissions Re- Myldred is regarded by many as ``our own and leadership in agriculture, and the local duction Act of 1999, a bill to reduce mercury Mother Teresa'' for her life has been dedi- community. emissions by 95 percent nationwide. I am cated to taking care of others who are in Rodger Jensen is President of S and J pleased to be joined by 27 of my colleagues need. She is an angel amongst us. Ranch in Madera, a farm management com- who have agreed to be original cosponsors of Colleagues, please join me today in wishing pany that began in 1950 with 2,600 acres of this important legislation. Myldred Jones a very happy birthday and also open land, dry-farmed for barley and wheat. Although mercury is a naturally occurring in congratulating her on her life which has Today, S and J farms citrus, nuts, and olives element, it has built up to dangerous levels in been lived to the fullest. in Madera, Merced, Fresno, Kern, and Tulare the environment. Mercury pollution impairs the f Counties. The company also manages thou- reproductive and nervous systems of fish and TRIBUTE TO KING HASSAN II OF sands of acres of permanent crops and boasts wildlife, and can be extremely harmful when MOROCCO a commercial citrus and pistachio nursery and ingested by humans. It is especially dan- an insectary. in order to ensure the success of gerous to pregnant women, children and de- these crops and entities, S and J employs 97 veloping fetuses. Ingesting mercury can se- HON. TOM LANTOS full-time non-harvest personnel and as many verely damage the central nervous system, OF CALIFORNIA as 500 harvest employees. causing numbness in extremities, impaired vi- IN THE HOUSE OF REPRESENTATIVES Rodger's work at S and J Ranch is not his sion, kidney disease, and, in some cases, Monday, August 2, 1999 only contribution to Valley agriculture. Twenty even death. Mr. LANTOS. Mr. Speaker, on July 23, His years ago, Rodger, along with several faculty, According to EPA's ``Mercury Study Report Majesty King Hassan II of Morocco passed alumni, and friends of California State Univer- to Congress,'' exposure to mercury poses a away and his son, Sidi Mohammad ben Al sity, Fresno, had a million-dollar idea. They significant threat to human health, and con- Hassan, assumed the throne of Morocco. wanted to start a foundation that would ben- centrations of mercury in the environment are King Hassan II reigned over the Kingdom of efit, promote, and support the School of Agri- increasing. The report concludes that mercury Morocco for thirty-eight years after succeeding cultural Sciences and Technology, along with pollution in the U.S. comes primarily from a E1714 CONGRESSIONAL RECORD — Extensions of Remarks August 2, 1999 few categories of combustion units and incin- DISAPPROVING EXTENSION OF national Trade Administration indicate that erators. Together, these sources emit more NONDISCRIMINATORY TREAT- Greater Kansas City's merchandise export than 155 tons of mercury into our environment MENT TO PRODUCTS OF PEO- sales to China total $61 million per year, a each year. These emissions can be sus- PLE’S REPUBLIC OF CHINA 151% increase since 1993. pended in the air for up to a year, and travel I applaud the extension of Normal Trade SPEECH OF Relations with China, which has helped to lift hundreds of miles before settling in bodies of 200 million Chinese out of poverty since 1978. water and soil. HON. KAREN McCARTHY OF MISSOURI Mr. Speaker, let us continue our efforts toward Nearly every State confronts the health risks IN THE HOUSE OF REPRESENTATIVES engaging China in negotiations to reform posed by mercury pollution, and the problem human rights, worker rights, and international Tuesday, July 27, 1999 is growing. Just six years ago, 27 States had security. issued mercury advisories warning the public Ms. MCCARTHY of Missouri. Mr. Speaker, I f about consuming fish contaminated with mer- rise today to speak in favor of extending Nor- mal Trade Relations to China for the coming THE SOUTH PACIFIC GAMES cury. Today, the number of States issuing year and against House Joint Resolution 57. advisories has risen to 40, and the number of Extending Normal Trade Relations will main- HON. ROBERT A. UNDERWOOD water bodies covered by the warnings has tain our healthy economic ties with China, the OF GUAM nearly doubled. In some States, including my world's fourth largest economy, and allow us IN THE HOUSE OF REPRESENTATIVES home State of Maine, every single river, lake, to move closer to agreement on a stable and Monday, August 2, 1999 and stream is under a mercury advisory. acceptable plan for China's international eco- Mr. UNDERWOOD. Mr. Speaker, one of the This growing problem has already prompted nomic engagement. China today is America's fourth largest trad- largest regional multi-sporting events in the action at the State and regional level. Last ing partner. In 1998 Americans exported $14 Pacific, the South Pacific Games, was recently year the New England Governors and Eastern billion worth of goods to China, making China hosted by the island of Guam. The 11th South Canadian Premiers enacted a plan to reduce the 13th largest market abroad for U.S. goods, Pacific Games consisted of roughly 6,000 ath- emissions, educate the public and label prod- such as aircraft and aircraft parts, fertilizer, letes and officials. Athletes from 22 countries ucts that contain mercury. Maine and Vermont and electronic equipment. competed in 26 sporting events over a 15 day have passed legislation to cut mercury pollu- My district exports plastic materials and res- period in May and June. tion, and Massachusetts and New Jersey have ins, automotive parts, telecommunications Once again, athletes from the North and enacted strict mercury emissions standards on equipment, building materials, food and dairy South Pacific gathered and engaged in var- waste incinerators. products, agricultural machinery, and pollution ious sporting eventsÐa celebration of good- control equipment to China. Continued en- will, cultural exchange, brotherhood and Although there is a clear consensus that gagement with China enhances future eco- healthy competition. This year's competitors mercury pollution poses a serious threat, State nomic opportunities for U.S. workers and busi- represented the geographic locations of Mela- and regional initiatives alone are not sufficient nesses. Dan Bunch Enterprises, a company in nesia, Polynesia and Micronesia. to deal with this problem. As Congress recog- Kansas City that exports cleaning products to The island of Guam was responsible for all nized when it passed the Clean Air Act nearly China, has shared with me that they have aspects of the organization of the 11th South 30 years ago, Federal legislation is the only seen significant increases in available jobs for Pacific Games. Every effort was made to effective way to deal with airborne pollutants their company this year as a direct result of make this year's Games the most memorable that know no State boundaries. trade relations with China, and they expect in the history. Organizers developed and im- this trend to continue in the coming years. plemented a Master Plan that guided the That is why I am introducing legislation to Another company in my district that de- Games to a successful conclusion. The 1999 reduce the amount of mercury emitted from pends on extensive and successful participa- Guam South Pacific Games Commission con- the largest polluters. This bill sets mercury tion in the Chinese market is AlliedSignal. sisted of the chairman, executive chairman, emissions standards for coal-fired utilities, China is one of the top 3 global markets eleven board members, and the commission waste combustors, commercial and industrial where AlliedSignal is focusing its efforts to staff. As chairman, the island's governor, the boilers, chlor-alkali plants and Portland cement grow. AlliedSignal presently has 1,000 em- Honorable Carl T.C. Gutierrez, committed ex- plants. According to EPA's report to Congress, ployees in China and 60,000 U.S. employees. tensive resources in support of the Games. It these sources are responsible for more than Among the major products they export to was all a great success. Competing on home turf, Guam athletes 87 percent of all mercury emissions in the China are commercial aircraft equipment (e.g., gave their best performance yet. I would like U.S. engines, auxiliary power units, landing sys- tems, avionics), turbochargers, electrical to commend and congratulate Team Guam for My bill also phases out the use of mercury power distribution transformer cores, fabrics, their superb performance, efforts and contribu- in products and ensures that municipalities fibers, and friction materials. AlliedSignal has tions toward the success of the Games. Par- work with waste incinerators to keep products taken a proactive stance regarding the issue ticipating in regional competitions such as the that contain mercury out of the waste stream. of security, especially cyber security, even South Pacific Games strengthens our relations It would also require a recycling program for going so far as to hire an outside firm to at- with our neighbors and prepares our athletes products that contain mercury as an essential tempt to penetrate their firewalls. for higher levels of competition. I am pleased to submit for the RECORD the component, and increases research into the AlliedSignal's interests in China also pro- names of the Guam athletes who have distin- effects of mercury pollution. mote capitalistic and democratic ideals in China. They provide their Chinese associates guished themselves by winning medals in the With mercury levels in the environment with comprehensive training in economics fun- 11th South Pacific Games. growing every year, it is long past time to damentals, as well as major supervisory and TRACK & FIELD enact a comprehensive strategy for controlling managerial fundamental skills training. This Brent Butler: 10k—Men: Silver mercury pollution. We have the technology for training teaches things like delegation of au- Debra Cardenas: 5000m—Women: Bronze companies to meet these standards, and this thority, team participation, high performance Brent Butler: 5000m—Men: Silver bill will allow them to choose the best ap- work team practices, priority setting, respect Susan Seay: Marathon—Women: Silver for individuals, and due process under the Debra Cardenas: 1500m—Women: Silver proach for their facility. We have reduced or Anthony Quan: 1500—Men: Silver eliminated other toxins, without the cata- work rule and plant adjudication processes. They also provide funding for their associates Neil Weare: 1500—Men: Bronze strophic effects that some industries predicted. to attend China-Europe International Business BASEBALL Now we should eliminate dangerous levels of School to receive a western style MBA. Guam Team: Gold mercury. I urge my colleagues to support this Approximately 400,000 American jobs de- BASKETBALL legislation and stop mercury from polluting our pend on exports to China and Hong Kong, Guam Men’s Team: Silver waters, infecting our fish and wildlife, and and exports to these countries have more than Guam Women’s Team: Bronze threatening the health of our children. tripled over the past decade. In 1998, Missouri BOXING exported $137 billion worth of goods to China. Nomer Alegre: 57 kg: Silver The most recent statistics from the Inter- Tana Meafou: 91kg: Silver CONGRESSIONAL RECORD — Extensions of Remarks E1715 Duane Roberts: 91 kg: Bronze Jose Dydasco: 130 kg: Silver a competent, willing public servant. Even CANOEING f more, it has lost a man of integrity, who rou- Guam Women’s Team: Women’s 2500 Meter tinely placed good government over politics G6: Bronze IN MEMORY OF G. SAGE LYONS and people over political parties.'' GOLF Mr. Speaker, on March 5th Alabama lost Guam Men’s Team: Bronze HON. SONNY CALLAHAN one of her most giving and gifted native sons. Teresita Blair: Women—Individuals: Gold OF ALABAMA Naturally, his death left a big void in the lives JUDO IN THE HOUSE OF REPRESENTATIVES of his many friends and family, as well as his hometown which benefitted so greatly by his Kazuhiro Sonoda: 60 kg: Bronze Monday, August 2, 1999 Patrick Fleming: 66kg: Bronze involvement in the public arena. Sage is sur- Caesar Whitt: 90 kg: Bronze Mr. CALLAHAN. Mr. Speaker, recently, Mo- vived by his widow, Elsie, their two children, KARATE—MEN bile, and indeed, the entire state of Alabama, George Sage, Jr. and Amelia, as well as three Pan Kim: 60 kg: Silver lost a true statesman, a fine public servant grandchildren. They remain in our thoughts Roger Nochefranca: 65 kg: Silver and simply put, an overall wonderful human and prayers, just as Sage remains in a select Rickey Flores: 75 kg: Bronze being when my longtime friend, Sage Lyons, group which is clearly among the best and Atsuyoshi Shiroma: 80 kg: Gold passed away earlier this year following a brief brightest our state has ever produced. Atsuyoshi Shiroma: Open Category Bronze battle with pancreatic cancer. f KARATE—WOMEN Not only did I consider Sage a close per- Roxanne Vertulfo:—53 kg: Silver sonal friend, but I also looked upon him as RECOGNIZING ROBERT HUME Dolores Flores: 60 kg: Silver one of my political mentors. Even though in BRADY June Uson: 60 kg+: Bronze age he was a few years my junior, I began my June Uson: Open Category: Bronze stint in public service in 1970 with my first Guam Team: Silver HON. FRANK D. LUCAS election to the Alabama House of Representa- OF OKLAHOMA SAILING tives, the same year Sage would be elected IN THE HOUSE OF REPRESENTATIVES Brett Chivers: Laser—Men: Gold Speaker of the House. For this reason, and for Erik Lewis: Laser—Men: Silver Monday, August 2, 1999 so many others, I recall with great fondness Michele Jacobs: Laser—Women: Silver Guam Team: Laser—Men Team: Gold Sage's wonderful sense of humor, his strong Mr. LUCAS of Oklahoma. Mr. Speaker, I Guam Team: Boards—Lightweight Men will, his keen intellect and one of his lasting rise today to recognize one man's many ac- Team: Bronze trademarks, the fact that his word was always complishments and contributions to the Uni- Guam Team: Boards—Women Team: Bronze as good as his bond. versity of Oklahoma and the State of Okla- SOFTBALL Mr. Speaker, while Sage's name may not homa. Mr. Robert Hume Brady was born and Guam Team: Fast Pitch—Men: Silver appear as often in Alabama history as some raised in Seiling, Oklahoma. He was awarded Guam Team: Slow Pitch—Men: Silver of our more colorful political figures, the fact is the OU Regents' Alumni Award in 1998 for his Guam Team: Slow Pitch—Women: Bronze in his own quiet, yet very effective way, Sage exceptional dedication and service to the Uni- SWIMMING—MEN made many lasting contributions to Mobile and versity of Oklahoma and served as an hon- Darrick Bollinger: 50m Freestyle: Bronze to Alabama, and it is very much an under- orary chair of the 100th anniversary celebra- Peter Manglona: 100m Breaststroke: Silver statement to say his legacy will live on for tion of the OU Association's founding. A 1960 Darrick Bollinger: 100m Freestyle: Bronze generations to come. Almost without equal, graduate with a bachelor's degree in business Daniel O’Keefe: 200m Butterfly: Silver there are few men who have left such a distin- administration, he joined Travelers Property Daniel O’Keefe: 200m Medley: Silver guished mark of public service as did my Casualty Corporation in 1963 and today Daniel O’Keefe: 400m Medley: Silver friend Sage. serves as regional vice president. In many of Daniel O’Keefe: 400m Freestyle: Bronze Darrick Bollinger, Daniel O’Keefe, Joshua Born in Mobile, Alabama, on October 1, the cities where his career has taken him, he Taitano, Mushashi Flores: 4x100 Medley 1936, George Sage Lyons graduated first from has made the OU presence stronger. He Relay: Silver University Military School in Mobile and later formed the OU Club of New Orleans in 1969, Joshua Taitano, Peter Manglona, Daniel from Washington and Lee University. From reactivated the OU Club of Kansas City in O’Keefe, Darrick Bollinger: 4x100 Free- there, he proceeded to The University of Ala- 1985, and organized the OU Club of Charlotte style Relay: Silver bama where he earned his law degree. In in 1991. He served as president of the OU TABLE TENNIS 1962, he returned to Mobile and helped estab- Club of Charlotte for seven years and cur- Guam Team: Bronze lish the firm Lyons, Pipes & Cook. rently is a member of the Board of Directors. TAEKWONDO—MEN Elected to the Alabama House of Rep- He has worked to raise funds for scholarship Vincent Flores: 58 kg: Gold resentatives in 1969, Sage flourished as a pol- support to potential OU students and to bring Joe Daryle Cruz: 62 kg: Gold itician. In 1971, at the age of 34, he became new energy to the OU Club through recruiting Christian Lee: 67 kg: Silver the youngest legislator ever to be elected and nominating younger members to leader- Sonny Chargualaf: 72 kg: Silver Speaker, a post he held until 1975 when he ship positions. He continues a long OU family Ken Orland: 84 kg: Bronze declined to seek reelection and threw himself tradition established by his great-uncle C. Guam Team: Bronze back into his legal practice. Ross Hume, a member of the first graduating TAEKWONDO—WOMEN But Sage's ties to the State Capitol in Mont- class in 1898 and one of the founders of the Eleanor Minor: 57 kg: Gold gomery did not end with his departure from of- OU Alumni Association in 1899. His grand- TRIATHLON fice. father, Dr. R.R. Hume, a member of the sec- Kari Wicklund: Women: Gold Throughout both his professional and polit- ond graduating class, was instrumental in the Alison Ward: Women: Silver ical career, Sage's advice and support contin- selection of OU's colors of crimson and Guam Team: Bronze ued to be sought by people from all walks of cream. WRESTLING—FREESTYLE lifeÐRepublicans and Democrats, blacks and Robert Brady will retire July 31, 1999, after Anthony Santos: 54 kg: Gold whites, rich and poor alike. It was commonly 37 years with Travelers, and he and his wife Regel Agahan: 58 kg: Bronze believed if you had Sage Lyons in your corner, Betty plan to return to Oklahoma City. Bob Melchor Manibusan: 69 kg: Silver then you had a real warrior on your side. started with Travelers in 1963 after graduating Ben Hernandez: 76 kg: Bronze In 1995, Sage once again answered the call from the University of Oklahoma. Further tours Joseph Santos: 85 kg: Gold to public service by putting his personal inter- of duty included New Orleans, Home Office, Drew Santos: 97 kg: Bronze John Meyenberg: 130 kg: Silver ests aside to return to Montgomery to assist Oklahoma City, Kansas City and Charlotte. then-Governor Fob James, first as his chief While in Charlotte, Bob helped make Travelers WRESTLING—GRECO-ROMAN legal advisor and later as his finance director. North Carolina's leading Independent Agency Anthony Santos: 54 kg: Gold As he had more than 20 years before, Sage carrier. Regel Agahan: 58 kg: Silver Melchor Manibusan: 69 kg: Gold provided a sound voice of reason and lent a Respected among his peers for his ele- Ben Hernandez: 76 kg: Silver steady hand on the ship of state. gance and character, Bob is a colleague, Joseph Santos: 85 kg: Gold In an editorial reflecting on Sage's death, mentor, friend, husband, father and grand- Joaquin Dydasco: 97 kg: Bronze the Mobile Register wrote: ``Alabama has lost father. E1716 CONGRESSIONAL RECORD — Extensions of Remarks August 2, 1999 CONGRATULATIONS TO DEBBIE Suzette van Arsdale also spent her early by his family and many friends, as well as nu- MCGOLDRICK AND NIALL years in banking. Born in New Jersey, Suzette merous associates throughout the First District O’DOWD UPON THE BIRTH OF rose in the ranks rapidly shortly after begin- of Alabama. THEIR DAUGHTER ALANA KATH- ning her banking career, becoming a cor- Tom Tippy's relationship with the people of LEEN porate officer of one of the Nation's largest South Alabama began over twenty-five years commercial banks. While working full time, Su- ago when, as an executive with Parsons & HON. PETER T. KING zette earned a degree in management from Whittemore, he came to the area as part of OF NEW YORK Kean University. Tom and Suzette were mar- the delegation sent by the Landegger family to IN THE HOUSE OF REPRESENTATIVES ried in 1986 and now have two children: locate a site for the construction of a new pulp and paper facility. Monday, August 2, 1999 Thomas Robert, age 12, and Matthew Ernest, age 20 months. This mill, which became known as Alabama Mr. KING. Mr. Speaker, I rise to inform the Mr. Speaker, both van Arsdales have been River Pulp, grew to employ hundreds of men House that on Sunday, July 25, 1999, at 1:34 active members of the community. Tom and women from Monroe County and the sur- a.m., Debbie McGoldrick and Niall O'Dowd be- serves on several local boards, including the rounding area, and it is a testament to the cause the proud parents of a baby daughter, Luzerne County Community College Founda- hard work of the entire Parsons & Whittemore Alana Kathleen. Alana Kathleen weighed in at tion, the Committee for Economic Growth, the corporate family, as well as the tremendous 8 pounds, 51¤2 ounces and is 21 inches long. Wyoming Valley United Way, Wyoming Semi- dedication and perseverance displayed by The best news is that Alana Kathleen and her nary, College Misericordia, the Central Divi- Tom Tippy and his staff. mother Debbie are in perfect health. sion of Pennsylvania Economy League, WVIA Prior to entering the world of business, Tom I am proud to be able to call Debbie and public radio and television, and the Northeast was a distinguished veteran of the United Niall my good friends. Niall is the Founding Philharmonic Orchestra, to name just a few. States Army Air Corps and saw a great deal Publisher of the Irish Voice newspaper and He is a member of the Pennsylvania Bankers of service in the Pacific Theater of operations. Irish America magazine. Debbie, who is clear- Association and America's Community Bank- While serving as a gunner with the crew of a ly the brains and the beauty of the operation, ers and a former chair of the Community B±24 Liberator in the 5th Army Air Corps, and is the Senior Editor of the Irish Voice. Niall Bankers Council of the Federal Reserve Bank later as a top turret gunner and flight engineer and Debbie are leaders in the Irish-American of Philadelphia. on a crew assigned to the 90th Bomber community and have been in the very forefront Suzette has an equally impressive resume Group, Tom exhibited the same qualities of of the Irish peace process. of community activity and involvement, cur- leadership, professionalism and dedication to As happy as Niall and Debbie are over the rently serving or having served as President of his crew mates and his nation that he dis- birth of their beautiful daughter, I know that the Junior League, member of the Presidents played repeatedly throughout his life. I was Alana Kathleen will soon realize how fortunate Council of King's College, second chair the saddened, but nonetheless honored, to have she is to have such outstanding parents. On Wyoming Valley Red Cross, member of the an American flag flown over this very building, behalf of myself and my family I wish them the Wyoming Seminary Board of Directors, and as a shrine to democracy throughout the world, very best of health and happiness. an active member of United Way of Wyoming which was draped over Tom's casket and pre- f Valley, Leadership Wilkes-Barre, Family Serv- sented to his family at his burial. ices Association and the Luzerne Foundation. Perhaps one of the finest comments on VAN ARSDALES HONORED Suzette has helped raise funds for the Tom's life was offered by his dear friend and Osterhout Library, the Back Mountain Library, mine, Monroe County Probate Judge Otha HON. PAUL E. KANJORSKI the Northeast Philharmonic, the American Lee Biggs, when he said, ``He wasn't happy OF PENNSYLVANIA Cancer Society, the St. Vincent's South Kitch- unless he was present with the employees of IN THE HOUSE OF REPRESENTATIVES en, the Catherine McCauley House, the Meals that company. They were a part of his family. Monday, August 2, 1999 on Wheels program, the Fine Arts Fiesta, and If they needed him, he wanted to be there for Mr. KANJORSKI. Mr. Speaker, I rise today the Theater on the Green at College him. And, for the leadership he gave to them, to bring to the attention of my colleagues, two Misericordia. they gave him their support in return. For he distinguished community leaders, Tom and In 1998, both Tom and Suzette were hon- was a people's man and he was a working Suzette van Arsdale. My good friends Tom ored by Her Majesty, the Queen of England. man's executive.'' and Suzette will be honored this month by the Tom was invested to the Order of St. John as Indeed he was. Luzerne Foundation for their community serv- an Associate Commander while Suzette was Mr. Speaker, I offer this memorial tribute to ice and leadership. I am pleased and proud to given a similar honor by the Queen and also Tom Tippy with the belief that his legacy of have been asked to participate in this tribute. invested to the Cathedral of the Church of St. goodness, of sound decisions and of always Born in New York City in 1937, Tom van John by Lord Prior. being a man of his word, will continue in per- Arsdale grew up in New England. Tom joined Mr. Speaker, I am extremely proud to call petuity. Truly, he lived his life with an enthu- the U.S. Army after high school and served in Tom and Suzette van Arsdale my friends. In siasm toward helping others and in so doing, the Signal Corps as a top secret cryptog- just 10 years, they have both had an enor- I believe he inspired the rest of us to try to do rapher for two years before receiving an hon- mous impact on northeastern Pennsylvania. I a little better ourselves as we approach our orable discharge. Tom began his business ca- have called on them numerous times to help fellow man. reer as a teller in a New Jersey bank in 1959. support community efforts and they have al- Tom is survived by his lovely wife, Rita; Within two years, Tom was a bank officer and ways provided their leadership. More impor- three sons, Tommy Tippy, Jr., Bill Tippy and within four years, he was a senior executive. tantly, they have been wonderful friends to Richard Tippy; one stepdaughter, Melanie Lee While pursuing his career, Tom was also earn- me, my wife, Nancy, and to many people Ford; eight grandchildren and five great-grand- ing degrees from Routon Valley Community throughout the area. I am proud to join with children. My condolences go out to each of College and Edison State College. the community in thanking them for their years them. Tom's business acumen gained the atten- of service and wishing them the best for the f future. tion in the banking world when he assumed DISAPPROVING EXTENSION OF the position of President of a troubled New f NONDISCRIMINATORY TREAT- Jersey bank, guided it out of its financial crisis, TRIBUTE TO TOM TIPPY, SR. MENT TO PRODUCTS OF PEO- converted it to a public bank and subsequently PLE’S REPUBLIC OF CHINA sold it to the Dime Bank of New York. Tom HON. SONNY CALLAHAN continued to serve as the bank's President SPEECH OF OF ALABAMA and CEO and was named to a directorship of IN THE HOUSE OF REPRESENTATIVES HON. ZOE LOFGREN the Dime Bank of New York. OF CALIFORNIA Tom moved to northeastern Pennsylvania in Monday, August 2, 1999 IN THE HOUSE OF REPRESENTATIVES 1990 after being named President and CEO of Mr. CALLAHAN. Mr. Speaker, I rise today to Franklin First Financial Corporation and Frank- pay tribute to an important constituent, a fine Tuesday, July 27, 1999 lin First Savings Bank. After Franklin First was community and business leader, and a close Ms. LOFGREN. Mr. Speaker, I rise to ex- sold to Onbancorp in 1993, Tom continued to personal friend, Mr. Tom Tippy, Sr. press my opposition to House Joint Resolution serve as its President and was elected to the Tom, who passed away back on March 12th 57 disapproving the extension of nondiscrim- parent bank's board until his recent retirement. following a long illness, will be sorely missed inatory treatment (or normal trade relations) to CONGRESSIONAL RECORD — Extensions of Remarks E1717 the People's Republic of China. The continued SUPPORT FOR BULGARIA, H. CON. in southeastern Europe and the Black Sea extension of normal trade relations (NTR) to RES. 170 region. (4) The economy of the Republic of Bul- China will do much to benefit the United garia has suffered considerable decline due States domestically, while engagement with HON. BENJAMIN A. GILMAN to the disruption of important markets China remains the most powerful means of OF NEW YORK caused by the break-up of the former, Soviet- advancing our interests abroad. IN THE HOUSE OF REPRESENTATIVES dominated ‘‘COMECON’’ economic and trade organization, the application of inter- I share the concerns of many of my col- Monday, August 2, 1999 national sanctions on Iraq, and the failure of leagues over China's record on human rights. Mr. GILMAN. Mr. Speaker, House Concur- the Government of the Republic of Bulgaria In particular, the plight of the people of Tibet rent Resolution 170 outlines our United States to confront widespread corrupt activities is one that we must not ignore. As we engage foreign policy towards Bulgaria, notes the ob- prior to the elections of April 1997 that re- China economically, we should work to en- sulted in the theft of large sums from both jectives of our new, post-Cold War relationship government and industry and that bank- gage China in a policy that allows Tibetan with Bulgaria, and points out some of the posi- rupted many Bulgarian banks. peoples, cultures, and beliefs to flourish. As tive changes now underway in Bulgaria. (5) The economy of the Republic of Bul- President Clinton has repeatedly emphasized, Since elections held in April 1997, the gov- garia has suffered as well from the imposi- engagement with China is one path by which ernment of Bulgaria has committed itself to tion of international sanctions on neigh- to encourage reform. The Clinton administra- making progress on badly-needed economic boring Serbia and continues to suffer from reforms, fair treatment of all of Bulgaria's citi- the conflict in that country, which has dis- tion and Congress will continue to press China rupted commerce throughout the region of for human rights' reform and democratization zens, including those from its large ethnic southeastern Europe. of its political process. Turkish minority, and Bulgaria's eventual inte- (6) The Government of the Republic of Bul- gration into the pan-European and trans-Atlan- garia has recently taken steps to finalize bi- Approximately 400,000 American jobs de- tic community. lateral agreements with the neighboring Re- pend on trade with China. Nearly all of China's However, despite Bulgaria's economic re- public of Macedonia, recognized by the other major trading partners, including Japan forms, democratization, and progressive for- United States as the ‘‘Former Yugoslav Re- and Europe, currently grant normal trade sta- eign policy, the breakup of the Soviet-domi- public of Macedonia’’, overcoming long- tus to the People's Republic of China. Were nated ``COMECON'' economic organization, standing dispute over the language to be used in those agreements. China to retaliate with trade restrictions the failure of the previous Bulgarian govern- (7) The Government of the Republic of Bul- against the United States, these nations would ment to adequately address corrupt activities, garia has undertaken to reform Bulgaria‘s gain a competitive trade edge against the and the imposition of international sanctions armed forces, adopting a military doctrine United States that would jeopardize vast num- on neighboring Serbia and nearby Iraq during to that effect in March 1999. bers of American jobs. most of this decade have placed serious bur- (8) The Government of the Republic of Bul- dens on the Bulgarian economy. garia has stated its continuing support for Additionally, the revocation of China's NTR I believe it is important that the United the mission of NATO in supporting democra- tization and stability across Europe. status would likely simply replace Chinese im- States recognize and commend Bulgaria's ef- ports with goods imported from its neighboring (9) As a result of the conflict in Serbia forts to make progress in the midst of its cur- with regard to the region of Kosovo, the Re- nations, harming only the American consumer. rent economic difficulties. House Concurrent public of Bulgaria has accepted several thou- Let us also remember that over the past dec- Resolution 170 does that and makes it clear sand refugees from the conflict. ade, American exports to China have quad- that the United States also supports Bulgaria's SEC. 2. POLICY TOWARD THE REPUBLIC OF BUL- rupled to $14.3 billion, a large portion of which eventual integration into pan-European and GARIA. is made up by high-technology imports pro- trans-Atlantic economic and security institu- It is the policy of the United States— duced in locations such as my district in Sil- (1) to promote the development in the Re- tions. public of Bulgaria of a market-based econ- icon Valley. Bulgaria is working hard to overcome the omy and a democratic government that re- It is also possible that China might soon legacy of four decades of communist rule and spects the rights of all of its citizens, regard- to assume its proper place in the trans-Atlantic gain entrance into the World Trade Organiza- less of ethnic background; community of states. Accordingly, I strongly (2) to support the territorial integrity of tion (WTO), an action that might result in the encourage my colleagues to support House the Republic of Bulgaria; critical and historic acceptance by Chinese Concurrent Resolution 170, which I believe to (3) to insist that the territorial integrity of markets of American agricultural and industrial be a recognition of our new relationship with the Republic of Bulgaria be respected by neighboring countries and by all political products. The chances of opening these Chi- this important country. I submit the text of H. nese markets would be severely diminished if movements within and outside Bulgaria; and Con. Res. 170 to be inserted at this point in (4) to support the integration of the Repub- the United States were to revoke NTR status the RECORD. lic of Bulgaria into pan-European and trans- at this point. Atlantic economic and security institutions. H. CON. RES. 170 SEC. 3. SENSE OF THE CONGRESS. China also plays an extremely important Resolved by the House of Representatives (the It is the sense of Congress that— role in guaranteeing regional security and sta- Senate concurring), (1) the Government of the Republic of Bul- bility from the Korean Peninsular to the Indian SECTION 1. FINDINGS. garia is to be commended for its efforts to Subcontinent. China's constructive efforts for The Congress finds the following: ensure proper treatment of all of its citizens, peace between North and South Korea, and (1) Elections held in April 1997 in the Re- regardless of ethnic background, particu- its push for restraint by India and Pakistan in public of Bulgaria brought to office a govern- larly those of ethnic Turkish background; ment committed to full economic reforms, the wake of their nuclear tests, highlight the (2) the Government of the Republic of Bul- discipline in government budgetary and cur- garia is to be commended— positive role China is capable of playing in the rency policies, increased foreign, direct in- (A) for its efforts to accelerate the privat- international arena. And our policy of engage- vestment in Bulgaria, and energetic efforts ization of state-owned enterprises in a fair ment has exhibited some meaningful success; to combat corrupt and criminal activities and transparent process; as a result of our policy China has signed the that had undermined previous economic re- (B) for its establishment of a currency forms. Nuclear Nonproliferation Treaty and the Com- board to ensure the value of the Bulgarian (2) The Government of the Republic of Bul- currency; and prehensive Test Ban Treaty and joined the garia has worked to ensure the proper treat- (C) for its efforts to combat corrupt and Chemical Weapons Convention and the Bio- ment of its citizens, regardless of ethnic criminal activities that undermine reforms logical Weapons Convention. background, including those of ethnic Turk- and the viability of Bulgaria’s government ish background, many of whom were sub- and industry; China clearly must take substantial steps to jected to forced assimilation campaigns and (3) the Government of the Republic of Bul- improve its record on human rights and de- deportation under the former communist re- garia should continue to implement pro- mocratize its government if it wishes to be gime in Bulgaria. grams that may qualify Bulgaria for en- fully accepted by the international community. (3) The Government of the Republic of Bul- trance into the European Union and the Yet only further engagement with China will garia has made Bulgaria’s integration into North Atlantic Treaty Organization (NATO) allow the United States the opportunity to ad- pan-European and trans-Atlantic institu- and is to be commended for its continuing tions, including the European Union and the support of the NATO effort to ensure sta- vocate on behalf of its own interests and those North Atlantic Treaty Organization (NATO), bility and democratization across Europe; of the Chinese people. I urge you vote against the highest priority of its foreign policy, and (4) the Republic of Bulgaria is suffering the House Joint Resolution 57. has undertaken efforts to promote stability adverse economic impact of the disruption of E1718 CONGRESSIONAL RECORD — Extensions of Remarks August 2, 1999 commerce in southeastern Europe and an in- Mr. Dale is the son of Hugh Henry Dale and to reform its military and adopt procedures for flux of refugees caused by the conflict in Lillie Packer Chisolm and was born in Cam- its military forces that are compatible with neighboring Serbia; den in 1911. He was valedictorian of the 1928 those of the NATO alliance. (5) the Government of the Republic of Bul- Mr. Speaker, I strongly encourage my col- garia should ensure the expedition ratifica- Wilcox County High School class and grad- tion of all bilateral treaties that have been uated cum laude from Erskine with a BA in leagues to support House Concurrent Resolu- negotiated with the neighboring Government chemistry in 1932. In 1935, he received a tion 169, an important statement of United of the Former Yugoslav Republic of Mac- Master of Arts degree, also in chemistry, from States support for Romania, for its program of edonia; Columbia University. reforms, and for its eventual integration into (6) the Government of the Republic of Bul- The first ten years after graduation were the trans-Atlantic community. I submit that the garia should undertake steps to immediately spent teaching school in Alabama, South text of H. Con. Res. 169 be inserted at this halt any illicit transfer of arms and military Carolina, and Georgia. He then served in the point in the RECORD. equipment that may occur in Bulgaria or H. CON. RES. 169 may cross Bulgarian territory; United States Air Force as a preflight instruc- (7) the Republic of Bulgaria should play a tor during the Second World War, rising to the Resolved by the House of Representatives (the central role in any effort by the NATO to rank of Major. For the five years immediately Senate concurring), create a joint peacekeeping military unit in- following the war he worked for the Veterans SECTION 1. FINDINGS. volving personnel from throughout the coun- Administration in Montgomery. After that, he The Congress finds the following: (1) Romania has negotiated, agreed to, and tries of southeastern Europe or in the cre- returned to his hometown of Camden, where ation of facilities in support of such a peace- ratified an important bilateral treaty with he has lived ever since. the neighboring Republic of Hungary that keeping unit; and Mr. Dale is married to the former Margaret (8) the United States should join other offi- recognizes the borders of those two countries cial creditors of the Republic of Bulgaria in Isabel Ware, and they have two daughters, and provides for the protection of the civil providing Bulgaria with relief from such offi- Margaret Caroline Dale Austin and Jane liberties of citizens who are members of na- cial debt through rescheduling and, where Shelton Dale, both of whom also graduated tional minorities. (2) Romania has negotiated, agreed to, and appropriate, forgiveness. from Erskine College. He has been a deacon ratified an important bilateral treaty with f and elder in the Associate Reformed Pres- neighboring Ukraine that recognizes the bor- byterian Church, in Camden, where he served ders of those two countries. PERSONAL EXPLANATION for years as its treasurer. (3) The November 1996 electoral change in Mr. Speaker, Hugh Dale is a man of the the Government of Romania was the first highest moral character, and he has lived his such change under a democratic political HON. NICK J. RAHALL II system in Romania since 1937. OF WEST VIRGINIA entire life with the aim of serving his fellow (4) Romania was the first country to join IN THE HOUSE OF REPRESENTATIVES man. It is appropriate that Erskine College rec- the ‘‘Partnership for Peace’’ program of the ognized one of its most outstanding alumni in North Atlantic Treaty Organization (NATO), Monday, August 2, 1999 this way, and it is a tribute for a job well done. in January 1994, has since become an active Mr. RAHALL. Mr. Speaker, on Thursday, I salute Mr. Dale for his many lifetime participant in that program, is a member of July 29, 1999, I inadvertently voted ``no'' on achievements, and wish him only good health NATO’s Euro-Atlantic Partnership Council, rollcall vote No. 352, the Moakley amendment and God's Blessings as he continues on life's and has stated its strong interest in admis- sion into NATO and into the European to prohibit any funding for the U.S. Army journey. Union. School of the America's located at Fort f (5) The Government of Romania has Benning, GA. As a cosponsor of legislation worked to ensure civilian control over its calling for the closure of the School of the SUPPORT FOR ROMANIA, H. CON. armed forces and has begun to implement Americas, and having consistently voted to RES. 169 military reform through force reductions, re- prohibit funding for the School of the Americas organization of officer ranks, and adoption of NATO-compatible procedures. in the past, I fully intended to cast my vote in HON. BENJAMIN A. GILMAN (6) Romania has provided military per- favor of the Moakley amendment, rollcall vote OF NEW YORK sonnel for participation in and support of No. 352. IN THE HOUSE OF REPRESENTATIVES multinational peacekeeping operations. f (7) The Government of Romania has stated Monday, August 2, 1999 its continuing support for the mission of TRIBUTE TO HUGH CHISOLM DALE Mr. GILMAN. Mr. Speaker, House Concur- NATO in supporting democratization and rent Resolution 169 outlines our United States stability across Europe. foreign policy towards Romania, recognizes SEC. 2. POLICY TOWARD ROMANIA. HON. SONNY CALLAHAN It is the policy of the United States— OF ALABAMA the strides Romania has taken in economic (1) to promote the development in Roma- IN THE HOUSE OF REPRESENTATIVES and political reforms since the end of the cold nia of a market-based economy and a demo- war, recognizes the steps Romania has taken cratic government that respects the rights of Monday, August 2, 1999 to improve relations with its neighbors and to all of its citizens, regardless of ethnic back- Mr. CALLAHAN. Mr. Speaker, I rise today in prepare itself for eventual integration into the ground; honor of Hugh Chisolm Dale who received the pan-European and trans-Atlantic communities, (2) to support the territorial integrity of Romania and to insist that the territorial in- honorary Doctor of Humanities degree on May and urges Romania forward in its reforms, de- tegrity of Romania be respected by all neigh- 15, 1999, from Erskine College in Due West, spite its current economic difficulties. boring countries and by all political move- South Carolina. Mr. Speaker, although Romania had taken ments within and outside Romania; and Without question, Hugh Dale is one of reform-oriented steps early in this decade, the (3) to support the integration of Romania Erskine's most loyal alumni, and one of South elections of November 1996, the first since into pan-European and trans-Atlantic eco- Alabama's most outstanding citizens. Erskine 1937 that led to a peaceful transfer of power nomic and security institutions. SEC. 3. SENSE OF THE CONGRESS. awarded him the Alumni Distinguished Service under a democratic system, provided a fresh It is the sense of the Congress that— Award in 1972 and the Algernon Sydney Sul- opportunity to push reforms forward. These re- (1) the United States should support efforts livan Award in 1987. In addition, he served as forms undertaken in the midst of economic by Romania to integrate into pan-European a member of the Erskine Board of Trustees for hardship made worse by corruption, criminal and trans-Atlantic institutions and should twelve years, and was Chairman of the Board activities, and the disruptions in commerce in view such integration as an important factor from 1967 to 1969. southeast Europe caused by international in consolidating democratic government in Romania; While he is naturally proud of his relation- sanctions and military actions against neigh- (2) Romania is to be commended for its ship to his alma mater, Mr. Dale has also boring Serbia, have a long way to go. work to achieve bilateral treaties with the been a one-man chamber of commerce for his I believe, however, that it is important to en- Republic of Hungary and Ukraine and the hometown of Camden, Alabama. He retired as courage Romania to continue with its reforms. Government of Romania should now work senior vice President with the Camden Na- I also believe that it should be our policy to expeditiously to negotiate, agree to, and rat- tional Bank in 1973, having first started with support Romania's eventual integration into ify a bilateral treaty with the neighboring the bank back in 1951. In this capacity, he pan-European and trans-Atlantic economic Republic of Moldova that recognizes the bor- ders of those two countries; was often called upon to help lead numerous and security institutions. In this regard, I note (3) the Government of Romania should ac- civic and community events which, in turn, that Romania was the very first country to join celerate necessary economic reforms, par- helped the growth and development of Cam- NATO's ``Partnership for Peace'' program and ticularly privatization of state-owned enter- den and Wilcox County. that it has spent most of this decade working prises under a fair and transparent process CONGRESSIONAL RECORD — Extensions of Remarks E1719 and privatization of the agricultural sector merce; Director of the Executive Committee of He resided at the Marian Shrine and Don to include privatization of land and of major the Warrior-Tombigbee Development Associa- Bosco Retreat in Rockland County for over 25 agri-business enterprises; tion; and Director of the World Dredging Asso- years. He had first taken his vows as a Sale- (4) the Government of Romania should, in ciation. sian of Don Bosco back in 1933, and lived in a concrete manner, address corrupt and criminal activities at all levels; In addition, he is on the boards of the Mo- our Hudson Valley region of New York since (5) the United States should undertake to bile Economic Development Council, the Mo- 1961. assist Romania to address the costs of dis- bile Industrial Development Board, the Na- Father Lappin, who was 88 years young ruptions in commerce in southeastern Eu- tional Waterways Conference, Blue Cross when a heart attack claimed him suddenly rope caused by the conflict in neighboring Blue Shield of Alabama, the Geological Sur- yesterday, was born in Belfast. He attended Serbia; and vey of Alabama and the Navy League of Mo- the Belfast School of Technology, the (6) the United States should join other offi- bile. Pallakenry College, and the Salesian College, cial creditors of Romania in providing Ro- Bobby's community spirit has not gone with- Cowley, Oxford. Father Lappin then traveled mania with relief from such official debt through rescheduling and, where appro- out notice or thanks. Earlier this year, the U.S. to China where he continued his studies at the priate, forgiveness. Coast Guard bestowed upon Bobby its sec- International School of Theology in Shanghai ond-highest honor, the Meritorious Public and the Salesian Studenate in Hong Kong. f Service Commendation. In addition, he has re- Father Lappin was finally ordained as a Sale- ceived the Alfred F. Delchamps, Jr. Award and sian Priest in Shanghai, and subsequently he PERSONAL EXPLANATION the National Rivers Hall of Fame Achievement spent 16 years in Shanghai as a teacher and Award. In 1990, the Propellor Club named him a parish priest. HON. JULIA CARSON Maritime Man of the Year. Father Lappin also studied at Fordham Uni- OF INDIANA Bobby is a native of Mobile and is a grad- versity and the Columbia School Writing, both IN THE HOUSE OF REPRESENTATIVES uate of Virginia Military Institute, where he was in New York City. commissioned as an Army officer and spent Father Lappin gained fame in many ways. Monday, August 2, 1999 the next two years fighting for his country in In addition to his noted best selling books, in- Ms. CARSON. Mr. Speaker, I was unavoid- the Korean Conflict. Today, Bobby serves on cluding ``Stories of Don Bosco'' and biog- ably absent for one vote on Friday, July 30, the board of VMI, as well as on the board of raphies of contemporary Christian heroes, he 1999, missing rollcall vote 355. Had I been Spring Hill College in Mobile. was author of the ``Salesian Bulletin''. He was present, I would have voted ``yes.'' There are few people in the life of Mobile an editorial board member of ``The Biographi- f who have given as much, and as often, as cal Memoirs of Saint John Bosco'' and was a has Bobby Guthans. Today, Bobby has cho- lecturer on South America and the Far East. TRIBUTE TO ROBERT A. GUTHANS sen to spend a little more time with his bride Father Lappin was active in the Knights of Co- of 40-plus years, their two children, Robert A. lumbus and in the Cambridge Society of Biog- HON. SONNY CALLAHAN Guthans, Jr. and Jean Guthans Wilkins, and raphers. their five beauitful grandchildren. But that Father Lappin was widely regarded for his OF ALABAMA doesn't mean he's going to have a lot of free talent at writing children's books which ex- IN THE HOUSE OF REPRESENTATIVES time on his hands, for Bobby doesn't know pressed the Catholic faith in a manner that Monday, August 2, 1999 how to slow down. As he recently told a re- youngsters could readily understand. He has a porter from the Mobile Register, ``I've got to be tremendous impact on countless generations Mr. CALLAHAN. Mr. Speaker, I rise today to doing something. I'm not the kind of person of young readers. honor Bobby Guthans a respected leader in who can spend his days hitting golf balls his field, an outstanding citizen in our commu- Father Lapin's writings earned for him the around.'' Venice Festival awards, the Catholic Family nity and quite frankly, as fine a gentleman as Mr. Speaker, that's good news for Mobile, I have ever known. On a personal note, I am Club award, and two Catholic Literacy Foun- Alabama. For if you think about all that Bobby dation awards. also pleased and honored to call Bobby Guthans has been able to do for his commu- Guthans my friend. Mrs. Gilman and I came to know Father nity, his state and his nation while he was also Peter Lappin over many years, as a result of Bobby recently retired as president of Mid- running a multi-million dollar corporation, just stream Fuel Inc., Petroleum Energy Products his deeply felt passion for a permanent peace think what he'll be able to do now that he in Ireland. Father Lappin traveled to the emer- Co., and Tenn-Tom Towing Co. As one of the doesn't have to show up to work at seven founders of Midstream back in 1974, Bobby ald isle extensively in his quest for a lasting o'clock in the morning. peace in his homeland. He devoted much of helped build a company that soon became Mr. Speaker, I salute Bobby Guthans. He's recognized around the world as one of the in- his life to a resolution of the troubles in the a good man and a wonderful role model for us north, and closely followedÐand supportedÐ novative leaders in the maritime industry. all. Bobby's success at Midstream didn't just the recent peace initiatives for Ireland. happen because he's a nice guy with a great f In losing Father Lappin, Georgia and I have outlook on life, although he is certainly that. lost not only a fond friend but an outstanding THE PASSING OF FATHER PETER advocate of peace throughout the world. It was the product of hard work, a good LAPPIN business head on his shoulders and a work Danny Withers, one of the more prominent ethic and respect for others that is second-to- of Irish-American leaders in my district, stated: none. In addition, Bobby, and his lovely wife HON. BENJAMIN A. GILMAN Father Lappin was a great supporter of Barbara Ann, come from the old school who OF NEW YORK independence for Ireland, and he used his believe ``it is better to give than receive.'' IN THE HOUSE OF REPRESENTATIVES God-given gift of the written word to help garner support for this worthy cause. As such, they have volunteered literally un- Monday, August 2, 1999 told hours in worthy civic and charitable en- Father Lappin came to our Nation in 1961. deavors, always with the attitude that it is right Mr. GILMAN. Mr. Speaker, I deeply regret He worked out of the New Rochelle head- to give something back to your community and informing our colleagues of the passing of one quarters of the Salesians for 11 years, trav- to your fellow man. Both Bobby and Barbara of the most remarkable and accomplished eling throughout our Nation and continuing his Ann are without peers when it comes to their residents of my 20th Congressional District of writings. He became a household word in generosity. New York. Rockland Country for the past quarter century, While being a first-class CEO, as well as a Father Peter Lappin, the author of 17 books due to his compassion, his love of all people wonderful husband, father and grandfather, on Christian theology, has been considered but most especially children, and his dynamic Bobby has also found time to hold down many the spiritual leader of the Irish community in personality. important positions of leadership in his indus- my congressional district. He long served as Mr. Speaker, I invite my colleagues to join try as well as his community. Some of these chaplain to the Rockland County Ancient with me in extending our condolences to Fa- include: Chairman of the Board of American Order of Hibernians and was a longtime sup- ther Lappin's half brother, Father James Braw- Waterways Operators; Chairman of the South- porter of the peace process in Ireland. ley of Australia, and to all of his fellow Sale- ern Region of the AWO; Chairman of the Father Peter Lappin devoted his life to the sian fathers. His were huge footsteps that will Board of the Mobile Area Chamber of Com- Salesian Fathers of which he was a member. be difficult to fill. E1720 CONGRESSIONAL RECORD — Extensions of Remarks August 2, 1999 SENATE COMMITTEE MEETINGS sistant Secretary for Indian Health; AUGUST 5 Title IV of Senate Resolution 4, and S. 406, to amend the Indian Health 9 a.m. Care Improvement Act to make perma- Agriculture, Nutrition, and Forestry agreed to by the Senate on February 4, nent the demonstration program that 1977, calls for establishment of a sys- To continue hearings on farm crisis allows for direct billing of medicare, issues. tem for a computerized schedule of all medicaid, and other third party payors, SR–328A meetings and hearings of Senate com- and to expand the eligibility under 9:30 a.m. mittees, subcommittees, joint commit- such program to other tribes and tribal Banking, Housing, and Urban Affairs tees, and committees of conference. organizations; followed by a business Housing and Transportation Subcommittee This title requires all such committees meeting to consider pending calendar To hold oversight hearings on activities to notify the Office of the Senate Daily business. of the Office of Multifamily Housing Digest—designated by the Rules com- SR–485 Assistance Restructuring of the De- mittee—of the time, place, and purpose 10 a.m. partment of Housing and Urban Devel- Judiciary opment. of the meetings, when scheduled, and To hold hearings on S. 1172, to provide a SD–538 any cancellations or changes in the patent term restoration review proce- 10 a.m. meetings as they occur. dure for certain drug products, focus- Foreign Relations As an additional procedure along ing on proposed remedies for relief, re- Near Eastern and South Asian Affairs Sub- with the computerization of this infor- lating to pipeline drugs. committee mation, the Office of the Senate Daily SD–628 To hold hearings on United States stra- Digest will prepare this information for 10:30 a.m. tegic interests in India. printing in the Extensions of Remarks Foreign Relations SD–419 To hold hearings on S. 693, to assist in Judiciary section of the CONGRESSIONAL RECORD the enhancement of the security of Business meeting to markup S. 486, to on Monday and Wednesday of each Taiwan. provide for the punishment of week. SD–419 methoamphetamine laboratory opera- Meetings scheduled for Tuesday, Au- Governmental Affairs tors, provide additional resources to gust 3, 1999 may be found in the Daily Oversight of Government Management, Re- combat methamphetamine production, Digest of today’s RECORD. structuring and the District of Colum- trafficking, and abuse in the United MEETINGS SCHEDULED bia States; and S. 620, to grant a Federal Subcommittee charter to Korean War Veterans Asso- To hold hearings on overlap and duplica- ciation, Incorporated. AUGUST 4 tion in the Federal Food Safety Sys- SD–628 8:30 a.m. tem. 2:15 p.m. Judiciary SD–342 Foreign Relations To hold hearings on the nomination of 2 p.m. To hold hearings on pending nomina- David W. Ogden, of Virginia, to be an Judiciary tions. Assistant Attorney General; and the Immigration Subcommittee SD–419 nomination of Robert Raben, of Flor- To hold hearings on annual refugee con- ida, to be an Assistant Attorney Gen- sultation. AUGUST 6 eral. SD–628 9:30 a.m. SD–628 Intelligence Joint Economic Committee 9 a.m. To hold closed hearings on pending intel- To hold hearings on the employment and Agriculture, Nutrition, and Forestry ligence matters. unemployment situation for July. To continue hearings on farm crisis SH–219 Room to be announced issues. 2:15 p.m. SR–328A Energy and Natural Resources SEPTEMBER 28 Environment and Public Works National Parks, Historic Preservation, and 9:30 a.m. Business meeting to resume markup of S. Recreation Subcommittee Veterans’ Affairs 1090, to reauthorize and amend the To hold oversight hearings to review the To hold joint hearings with the House Comprehensive Environmental Re- performance management process Committee on Veterans Affairs to re- sponse, Liability, and Compensation under the requirements of the Govern- view the legislative recommendations Act of 1980. ment Performance and Results Act, by of the American Legion. SD–406 the National Park Service. 345 Cannon Building 9:15 a.m. SD–366 Rules and Administration Commerce, Science, and Transportation To hold hearings on certain propsoed To hold hearings to examine fraud POSTPONEMENTS committee resolutions requesting against seniors. funds for operating expenses. SR–253 SR–301 2:30 p.m. AUGUST 4 9:30 a.m. Foreign Relations 9:30 a.m. Indian Affairs International Economic Policy, Export and Veterans’ Affairs To hold hearings on S. 299, to elevate the Trade Promotion Subcommittee To hold hearings on the maintenance of position of Director of the Indian To hold hearings on economic reform and unneeded medical facilities of the De- Health Service within the Department trade opportunities in Vietnam. partment of Veteran Affairs. of Health and Human Services to As- SD–419 SD–106 Monday, August 2, 1999 Daily Digest

HIGHLIGHTS Senate passed Deceptive Mail Prevention and Enforcement Act. See Re´sume´ of Congressional Activity. Senate Collins/Levin Amendment No. 1497, to provide Chamber Action for certain requirements of promoters of skill con- Routine Proceedings, pages S9959–S10062 tests or sweepstakes mailings, and to make certain Measures Introduced: Four bills and four resolu- clarifying modifications to the bill. Pages S9973±75 tions were introduced as follows: S. 1471–1474, S.J. Commending Gen. Wesley K. Clark: Committee Res. 30, S. Res. 170–171, and S. Con. Res. 49. on Armed Services was discharged from further con- Pages S9995±96 sideration of S. Res. 169, commending General Wes- Measures Reported: Reports were made as follows: ley K. Clark, United States Army, and the resolution S. 944, to amend Public Law 105–188 to provide was then agreed to. Page S10062 for the mineral leasing of certain Indian lands in Agriculture Appropriations: Senate resumed con- Oklahoma. (S. Rept. No. 106–132) Page S9995 sideration of S. 1233, making appropriations for Ag- Measures Passed: riculture, Rural Development, Food and Drug Ad- ministration, and Related Agencies programs for the District of Columbia Appropriations: Pursuant fiscal year ending September 30, 2000, taking action to the order of July 1, 1999, Senate passed H.R. on the following amendments proposed thereto: 2587, making appropriations for the government of Pages S9978±82, S9988±95 the District of Columbia and other activities charge- Pending: able in whole or in part against revenues of said Dis- Lott (for Daschle) Amendment No. 1499, to pro- trict for the fiscal year ending September 30, 2000, vide emergency and income loss assistance to agri- after striking all after the enacting clause and insert- cultural producers. Pages S9978±82 ing in lieu thereof the text of S. 1283, Senate com- Lott (for Cochran) Amendment No. 1500 (to panion measure, as passed by the Senate on July 1, Amendment No. 1499), of a perfecting nature. 1999. Senate insisted on its amendment, requested a Pages S9978±82 conference with the House thereon, and the Chair, Lott motion to recommit the bill to the Com- as authorized, appointed the following conferees on mittee on Appropriations, with instructions to report the part of the Senate: Senators Hutchison, Kyl, Ste- back forthwith, with the following amendment: Lott vens, Durbin, and Inouye. Page S9963 Amendment No. 1501 (to the instructions of the Subsequently, passage of S. 1283 was vitiated and motion to recommit), to restrict the use of certain then indefinitely postponed. funds appropriated to the Agricultural Marketing Deceptive Mail Prevention and Enforcement Service. Page S9979 Act: By a unanimous vote of 93 yeas (Vote No. A motion was entered to close further debate on 248), Senate passed S. 335, to amend chapter 30 of the pending motion to recommit and, in accordance title 39, United States Code, to provide for the non- with the provisions of Rule XXII of the Standing mailability of certain deceptive matter relating to Rules of the Senate, a vote on the cloture motion sweepstakes, skill contests, facsimile checks, adminis- will occur on Wednesday, August 4, 1999. trative procedures, orders, and civil penalties relating Page S9979 to such matter, after agreeing to the committee Subsequently, the motion to recommit was with- amendment in the nature of a substitute, and agree- drawn. Page S9979 ing to the following amendment proposed thereto: Senate will continue consideration of the bill on Pages S9965±97, S9982±88 Tuesday, August 3, 1999. D907 D908 CONGRESSIONAL RECORD — DAILY DIGEST August 2, 1999 Budget Reconciliation/Tax Relief Conferees: The expiring December 6, 2002, vice John L. Bryant, Jr., Chair was authorized to appoint the following con- term expired. Page S10062 ferees on the part of the Senate to H.R. 2488, to Nominations Received: Senate received the fol- provide for reconciliation pursuant to sections 105 lowing nominations: and 211 of the concurrent resolution on the budget Stephen D. Van Beek, of the District of Colum- for fiscal year 2000: Senators Roth, Lott, and Moy- bia, to be Associate Deputy Secretary of Transpor- nihan. Page S9965 tation. Fuels Regulatory Relief Act: Senate concurred in Neal S. Wolin, of Illinois, to be General Counsel the amendments of the House to S. 880, to amend for the Department of the Treasury. the Clean Air Act to remove flammable fuels from Sam Epstein Angel, of Arkansas, to be a Member the list of substances with respect to which reporting of the Mississippi River Commission for a term of and other activities are required under the risk man- nine years. agement plan program, clearing the measure for the Brigadier General Robert H. Griffin, United President. Pages S10059±62 States Army, to be a Member of the Mississippi River Commission, under the provisions of Section 2 Messages from the President: Senate received the of an Act of Congress, approved June 1879 (21 Stat. following message from the President of the United 37) (33 USC 642). Page S10062 States: Transmitting a supplemental report of a revised Messages From the President: Page S9995 deferral of budget authority dated August 2, 1999; Statements on Introduced Bills: Pages S9996±97 which was referred jointly, pursuant to the order of Additional Cosponsors: Pages S9997±99 January 30, 1975, as modified by the order of April Amendments Submitted: Pages S10001±06 11, 1986; to the Committees on Appropriations, the Budget, and Foreign Relations. (PM–54). Page S9995 Notices of Hearings: Page S10006 Nominations Confirmed: Senate confirmed the fol- Additional Statements: Pages S10006±07 lowing nominations: Text of H.R. 2488 as Previously Passed: Alejandro N. Mayorkas, of California, to be Pages S10007±59 United States Attorney for the Central District of Record Votes: One record vote was taken today. California. (Total—248) Page S9985 James Roger Angel, of Arizona, to be a Member of the Board of Trustees of the Barry Goldwater Adjournment: Senate convened at 12:01 p.m., and Scholarship and Excellence in Education Foundation adjourned at 7:16 p.m., until 9:30 a.m., on Tuesday, for a term expiring February 4, 2002. August 3, 1999. (For Senate’s program, see the re- marks of the Acting Majority Leader in today’s Jack E. Hightower, of Texas, to be a Member of Record on page S10062.) the National Commission on Libraries and Informa- tion Science for a term expiring July 19, 1999. Jerry D. Florence, of California, to be a Member Committee Meetings of the National Museum Services Board for a term No committee meetings were held. h House of Representatives H.R. 2615, to amend the Small Business Act to Chamber Action make improvements to the general business loan Bills Introduced: 11 public bills, H.R. 2667–2677, program (Rept. 106–279); and 2 resolutions, H. Con. Res. 169–170, were in- H. Res. 271, providing for consideration of H.R. troduced. Pages H6842±43 987, to require the Secretary of Labor to wait for Reports Filed: Reports were filed today as follows: completion of a National Academy of Sciences study H.R. 2614, to amend the Small Business Invest- before promulgating a standard or guideline on ment Act to make improvements to the certified de- ergonomics (Rept. 106–280); velopment company program (Rept. 106–278); August 2, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D909 H. Res. 272, providing for consideration of H.R. North American migratory birds depend, by direct- 2031, to provide for injunctive relief in Federal dis- ing the Secretary of the Interior to implement rules trict court to enforce State laws relating to the inter- to reduce the overabundant population of mid-con- state transportation of intoxicating liquor (Rept. tinent light geese; Pages H6771±73 106–281); FDR National Historic Site: H.R. 1104, to au- H.J. Res. 58, disapproving the extension of the thorize the Secretary of the Interior to transfer ad- waiver authority contained in section 402(c) of the Trade Act of 1974 with respect to Vietnam, amend- ministrative jurisdiction over land within the bound- ed (Adverse Rept. 106–282); and aries of the Home of Franklin D. Roosevelt National H.R. 2670, making appropriations for the Depart- Historic Site to the Archivist of the United States ments of Commerce, Justice, and State, the Judici- for the construction of a visitor center; Page H6775 ary, and related agencies for the fiscal year ending Conveyance of Jicarilla Site to San Juan Col- September 30, 2000 (H. Rept. 106–283). Page H6842 lege: H.R. 695, as amended, to direct the Secretary Speaker Pro Tempore: Read a letter from the of Agriculture and the Secretary of the Interior to Speaker wherein he designated Representative convey an administrative site in San Juan County, Stearns to act as Speaker pro tempore for today. New Mexico, to San Juan College; Pages H6775±76 Page H6761 Law Enforcement and Public Safety Enhance- Recess: The House recessed at 12:58 p.m. and re- ment Act: H.R. 1442, as amended, to amend the convened at 2:00 p.m. Page H6764 Federal Property and Administrative Services Act of National Commission on Terrorism: Read a letter 1949 to continue and extend authority for transfers from the Minority Leader wherein he announced his to State and local governments of certain property appointment of Juliette N. Kayyem of Cambridge, for law enforcement, public safety, and emergency Massachusetts to the National Commission on Ter- response purposes. Agreed to amend the title; Pages H6780±85 rorism. Page H6765 Presidential Message—Deferral of Budget Au- Silk Road Strategy Act: H.R. 1152, as amended, thority: Read a message from the President wherein to amend the Foreign Assistance Act of 1961 to tar- he transmitted one revised deferral of budget author- get assistance to support the economic and political ity affecting programs of the Department of State re- independence of the countries of the South Caucasus ferred to the Committee on Appropriations and or- and Central Asia; Pages H6785±89 dered printed (H. Doc. 106–109). Page H6765 Improving the Certified Development Company Suspensions: The House agreed to suspend the rules Program: H.R. 2614, to amend the Small Business and pass the following measures: Investment Act to make improvements to the cer- Broadening Uses of Collateral for Federal Re- tified development company program; Pages H6789±92 serve Notes: H.R. 1094, as amended, to amend the Improving the General Business Loan Program: Federal Reserve Act to broaden the range of discount H.R. 2615, to amend the Small Business Act to window loans which may be used as collateral for make improvements to the general business loan Federal reserve notes; Pages H6766±67 program; Pages H6792±96 Honoring Shuttle Mission STS–93 and Colonel Thomas S. Foley Federal Building and U.S. Eileen Collins: H. Res. 267, expressing the sense of Courthouse: H.R. 211, amended, to designate the the House of Representatives with regard to Shuttle Federal building and United States courthouse lo- Mission STS–93, commanded by Colonel Collins, the cated at West 920 Riverside Avenue in Spokane, first female space shuttle commander; Pages H6767±70 Washington, as the ‘‘Thomas S. Foley Federal Build- Relief of Global Exploration and Development ing and United States Courthouse’’, and the plaza at Corp., Kerr-Mcgee Corp., and Kerr-Mcgee Chem- the south entrance of such building and courthouse ical, LLC: S. 606, as amended, for the relief of as the ‘‘Walter F. Horan Plaza’’. Agreed to amend Global Exploration and Development Corporation, the title; Pages H6796±98 Kerr-Mcgee Corporation, and Kerr-Mcgee Chemical, Copyright Damages Improvement Act: H.R. LLC (successor to Kerr-McGee Chemical Corpora- 1761, amended, to amend provisions of title 17, tion); Pages H6770±71 United States Code. Subsequently, S. 1257, a similar Arctic Tundra Habitat Emergency Conservation Senate-passed bill, was passed in lieu after being Act: H.R. 2454, as amended, to assure the long-term amended to contain the text of H.R. 1761 as passed conservation of mid-continent light geese and the bi- the House. Agreed to amend the title, and H.R. ological diversity of the ecosystem upon which many 1761 was then laid on the table; Pages H6798±99 D910 CONGRESSIONAL RECORD — DAILY DIGEST August 2, 1999 Amending the Arizona Statehood and Enabling propriations for foreign operations, export financing, Act: H.R. 747, to protect the permanent trust funds and related programs for the fiscal year ending Sep- of the State of Arizona from erosion due to inflation tember 30, 2000. The House completed general de- and modify the basis on which distributions are bate and considered amendments to the bill on July made from those funds (passed by a yea and nay vote 29. Pages H6811±39 of 416 yeas with none voting ‘‘nay’’, Roll No. 357); Rejected: and Pages H6773±75, H6809 The Andrews amendment that sought to prohibit Construction Industry Payment Protection Act: any funds for new Overseas Private Investment Cor- H.R. 1219, as amended, to amend the Office of Fed- poration projects (rejected by a recorded vote of 103 eral Procurement Policy Act and the Miller Act, re- ayes to 315 noes, Roll No. 359; Pages H6811±16 lating to payment protections for persons providing Postponed Proceedings: labor and materials for Federal construction projects The Tancredo amendment was offered that seeks (passed by a yea and nay vote of 416 yeas with none to prohibit any funding for the United States Man voting ‘‘nay’’, Roll No. 358). Agreed to amend the and the Biosphere Program or the United Nations title. Pages H6776±79, H6809±10 World Heritage Fund. Pages H6827±29 Recess: The House recessed at 5:03 p.m. and recon- The Paul amendment was offered that seeks to vened at 5:17 p.m. Pages H6799±H6800 prohibit funding for population control or popu- Financial Freedom Act: The House disagreed to lation planning programs; family planning activities; the Senate amendment to H.R. 2488, to amend the or abortion procedures; and Pages H6834±36 Internal Revenue Code of 1986 to reduce individual The Paul amendment was offered that seeks to income tax rates, to provide marriage penalty relief, prohibit any new obligation, guarantee, or agreement to reduce taxes on savings and investments, to pro- by the Export-Import Bank, the Overseas Private In- vide estate and gift tax relief, to provide incentives vestment Corporation or the Trade and Development for education savings and health care, and agreed to Agency. Pages H6837±39 a conference. Appointed as conferees for consider- Withdrawn: ation of the House bill, and the Senate amendment, The Burton amendment was offered, but subse- and modifications committed to conference: Rep- quently withdrawn, that sought to limit Develop- resentatives Archer, Armey, Crane, Thomas, Rangel, ment Assistance funding for the Government of and Stark; and appointed as additional conferees for India to $33.5 million; Pages H6817±26 consideration of sections 313, 315–16, 318, 325, The Hastings of Florida amendment was offered, 335, 338, 341–342, 344–345, 351, 362–63, 365, but subsequently withdrawn, that sought to express 369, 371, 381, 1261, 1305, and 1406 of the Senate the Sense of Congress that the Colombian flower in- amendment, and modifications committed to con- dustry should be recognized for its contributions to ference: Representatives Goodling, Boehner, and preserve and advance democratic institutions; Clay. Pages H6800±11 Pages H6826±27 Rejected the Rangel motion to instruct conferees The Kucinich amendment was offered, but subse- that sought to insist on limiting the net 10-year tax quently withdrawn, that sought to prohibit funding reduction provided in the conference report to not for any category A Investment Fund projects by the more than 25 percent of the currently projected non- Overseas Private Investment Corporation; Social Security surpluses (or if greater, the smallest Pages H6829±31 tax reduction permitted within the scope of con- The Stearns amendment was offered, but subse- ference) in order to (1) preserve 100 percent of the quently withdrawn, that sought to require a report Social Security Trust Fund surpluses for the Social on atrocities against ethnic Serbians in Kosovo; Security program and to preserve 50 percent of the Pages H6831±33 currently projected non-Social Security surpluses for The Jackson-Lee amendment was offered, but sub- purposes of reducing the publicly held national debt, sequently withdrawn, that sought to express the and (2) in order to insure that there will be adequate Sense of the Congress concerning the progress to- budgetary resources available to extend the solvency ward the resolution of the conflict between Eritrea of the Social Security and Medicare systems, and to and Ethiopia; and Pages H6833±34 provide a Medicare prescription drug benefit by a The Jackson-Lee amendment was offered, but sub- yea and nay vote of 205 yeas to 213 nays, Roll No. sequently withdrawn, that sought to An amendment 356. Pages H6800±09 to provide $2 million in the Economic Support Fund Foreign Operations, Export Financing, and Re- for monitoring the human rights situation in Tibet lated Programs Appropriations Act: The House and for training and education of Tibetans in democ- considered amendments to H.R. 2606, making ap- racy activities and an additional $2 million in the August 2, 1999 CONGRESSIONAL RECORD — DAILY DIGEST D911 Emergency Refugee and Migration Assistance Fund rule allows the Chairman of the Committee of the for the Tibetan refugee program. Pages H6836±37 Whole to postpone votes during consideration of the H. Res. 263, the rule that is providing for consid- bill, and to reduce voting time to five minutes on eration of the bill was agreed to on July 29. The a postponed question if the vote follows a fifteen unanimous consent order that limited consideration minute vote. Finally, the rule provides one motion of amendments to the bill was also agreed to on July to recommit with or without instructions. Testimony 29. was heard from Chairman Goodling and Representa- Senate Messages: Message received from the Senate tive Clay. appears on page H6765. TWENTY-FIRST AMENDMENT Referrals: S. 1468 was referred to the Committee on ENFORCEMENT ACT Banking and Financial Services. Page H6840 Committee on Rules: Granted, by voice vote, a modi- Amendments: Amendments ordered printed pursu- fied open rule providing 1 hour of debate on H.R. ant to the rule appear on page H6844. 2031, Twenty-First Amendment Enforcement Act. Quorum Calls—Votes: Three yea and nay votes and The rule makes in order as an original bill for the one recorded vote developed during the proceedings purpose of amendment the Committee on the Judici- of the House today and appear on pages H6808–09, ary amendment in the nature of a substitute now H6809, H6809–10, and H6816. There were no printed in the bill. The rule provides that the bill quorum calls. shall be open for amendment at any point and limits Adjournment: The House met at 12:30 p.m. and the amendment process to two hours. The rule au- adjourned at 11:03 p.m. thorizes the Chair to accord priority in recognition to Members who have-printed the amendments in the Congressional Record. The rule allows the Chair- Committee Meetings man of the Committee of the Whole to postpone UNPAID PAYROLL TAXES OWED TO THE votes during consideration of the bill, and to reduce GOVERNMENT voting time to five minutes on a postponed question Committee on Government Reform: Subcommittee on if the vote follows a fifteen minute vote. Finally, the Government Management, Information, and Tech- rule provides one motion to recommit with or with- nology held a hearing on Unpaid Payroll Taxes: Bil- out instructions. Testimony was heard from Rep- lions in Delinquent Taxes and Penalty Assessments resentatives Goodlatte; Conyers, Lofgen and Jackson- are Owed to the Government. Testimony was heard Lee of Texas. from Gregory D. Kutz, Associate Director, Govern- f mentwide Accounting and Financial Management, Accounting and Information Management Division, COMMITTEE MEETINGS FOR TUESDAY, GAO; and Charles O. Rossotti, Commissioner, IRS, AUGUST 3, 1999 Department of the Treasury. (Committee meetings are open unless otherwise indicated) CAMPAIGN REFORM MEASURES Senate Committee on House Administration: Ordered reported Committee on Agriculture, Nutrition, and Forestry: to hold the following bills: H.R. 2668, amended, Campaign hearings on farm crisis issues, 9 a.m., SH–216. Reform and Election Integrity Act of 1999; H.R. Committee on Armed Services: to hold hearings on the 1922, without recommendation, Citizen Legislature nomination of Charles A. Blanchard, of Arizona, to be and Political Freedom Act; H.R. 1867, without rec- General Counsel of the Department of the Army; and the ommendation, Campaign Integrity Act of 1999; and nomination of Carol DiBattiste, of Florida, to be Under H.R. 417, unfavorably, Bipartisan Campaign Reform Secretary of the Air Force, 9:30 a.m., SR–222. Committee on Governmental Affairs: business meeting to Act of 1999. consider pending calendar business, 10 a.m., SD–342. WORKPLACE PRESERVATION ACT Committee on Indian Affairs: to hold hearings on pro- Committee on Rules: Granted, by voice vote, a modi- posed legislation to provide equitable compensation to fied open rule providing 1 hour of debate on H.R. the Cheyenne River Sioux Tribe, 10 a.m., SR–485. 987, Workplace Preservation Act. The rule provides House that the bill shall be open for amendment at any Committee on Agriculture, to continue consideration of point and limits the amendment process to two H.R. 2559, Agricultural Risk Protection Act of 1999, hours. The rule authorizes the Chair to accord pri- 9:30 a.m., 1300 Longworth. ority in recognition to Members who have-printed Subcommittee on Department Operations, Oversight, the amendments in the Congressional Record. The Nutrition, and Forestry, hearing to review the effects of D912 CONGRESSIONAL RECORD — DAILY DIGEST August 2, 1999 the implementation of the Food Quality Protection Act Subcommittee on Forests and Forest Health, hearing on public health, 1 p.m., 1300 Longworth. on the following: S. 416, to direct the Secretary of Agri- Committee on Banking and Financial Services, Sub- culture to convey to the city of Sisters, Oregon, a certain committee on Domestic and International Monetary Pol- parcel of land for use in connection with a sewage treat- icy, hearing on Federal Oversight of Internet Banking, 10 ment facility; H.R. 1749, to designate Wilson Creek in a.m., 2220 Rayburn. Avery and Caldwell Counties, North Carolina, as a com- Committee on Education and the Workforce, Subcommittee ponent of the National Wild and Scenic Rivers System; on Early Childhood, Youth, and Families, hearing on and a measure to designate certain Federal lands in the Drug Abuse Prevention: Protecting Our Students, 9 a.m., Talladega National Forest in the State of Alabama as the 2175 Rayburn. Dugger Mountain Wilderness, 2 p.m., 1334 Longworth. Committee on Government Reform, hearing on Vaccines: Committee on Rules, to consider the Department of Com- Finding the Balance Between Public Safety and Personal merce, Justice, State and the Judiciary, and Related Choice, 2 p.m., 2154 Rayburn. Agencies appropriations for Fiscal Year 2000, 1 p.m., Committee on International Relations, hearing on U.S. H–313 Capitol. Trade with Asia: Preparations for the APEC Summit, Committee on Science, Subcommittee on Basic Research, 1:30 p.m., 2172 Rayburn. hearing on Plant Genome Science: From the Lab to the Subcommittee on Africa, Nigeria: On the Democratic Field to the Market, 10 a.m., 2318 Rayburn. Path? 10 a.m., 2170 Rayburn. Committee on Transportation and Infrastructure, Sub- Committee on the Judiciary, to continue markup of H.R. committee on Aviation, hearing on Pilot Fatigue, 9:30 1875, Interstate Class Action Jurisdiction Act of 1990; a.m., 2167 Rayburn. and to mark up the following measures: H.R. 2260, Pain Subcommittee on Economic Development, Public Relief Promotion Act of 1999; H.J. Res. 54, granting the Buildings, Hazardous Materials and Pipeline Transpor- consent of Congress to the Missouri-Nebraska Boundary tation, to mark up the following: 1 lease resolution; 1 re- Compact; and H.J. Res 62, to grant the consent of Con- gress to the boundary change between Georgia and South pair and alteration resolution; and other pending business, Carolina, 10 a.m., 2141 Rayburn. 10 a.m., 2253 Rayburn. Committee on Resources, oversight hearing on Contract Joint Meetings Support Costs within the Indian Health Service and the Bureau of Indian Affairs (Part II), 11 a.m., 1324 Long- Conference: meeting of conferees on S. 507, to provide worth. for the conservation and development of water and related Subcommittee on Energy and Mineral Resources, over- resources, to authorize the Secretary of the Army to con- sight hearing on Mining Regulatory Issues and Improv- struct various projects for improvements to rivers and ing the General Mining laws, 2 p.m., 1324 Longworth. harbors of the United States, 4 p.m., SD–406. August 2, 1999 CONGRESSIONAL RECORD—DAILY DIGEST D913

Re´sume´ of Congressional Activity

FIRST SESSION OF THE ONE HUNDRED SIXTH CONGRESS The first table gives a comprehensive re´sume´ of all legislative business transacted by the Senate and House. The second table accounts for all nominations submitted to the Senate by the President for Senate confirmation.

DATA ON LEGISLATIVE ACTIVITY DISPOSITION OF EXECUTIVE NOMINATIONS January 6 through July 31, 1999 January 6 through July 31, 1999

Senate House Total Civilian nominations, totaling 276, disposed of as follows: Days in session ...... 109 87 . . Confirmed ...... 95 Time in session ...... 752 hrs., 34′ 686 hrs., 14′ . . Unconfirmed ...... 175 Congressional Record: Withdrawn ...... 6 Pages of proceedings ...... 9,957 6,760 . . Extensions of Remarks ...... 1,710 . . Public bills enacted into law ...... 7 32 39 Other civilian nominations, totaling 1,371, disposed of as follows: Private bills enacted into law ...... Confirmed ...... 1,228 Bills in conference ...... 12 11 . . Unconfirmed ...... 143 Measures passed, total ...... 253 334 587 Senate bills ...... 70 18 . . House bills ...... 45 139 . . Air Force nominations, totaling 5,612, disposed of as follows: Senate joint resolutions ...... 1 . . . . Confirmed ...... 5,609 House joint resolutions ...... 3 6 . . Unconfirmed ...... 3 Senate concurrent resolutions ...... 14 5 . . House concurrent resolutions ...... 22 37 . . Simple resolutions ...... 98 129 . . Army nominations, totaling 3,374, disposed of as follows: Measures reported, total ...... *202 *263 465 Confirmed ...... 3,364 Senate bills ...... 139 4 . . Unconfirmed ...... 10 House bills ...... 18 169 . . Senate joint resolutions ...... 3 . . . . House joint resolutions ...... 5 . . Navy nominations, totaling 3,769, disposed of as follows: Senate concurrent resolutions ...... 4 . . . . Confirmed ...... 3,520 House concurrent resolutions ...... 1 10 . . Unconfirmed ...... 249 Simple resolutions ...... 37 75 . . Special reports ...... 14 9 . . Conference reports ...... 5 . . Marine Corps nominations, totaling 2,121, disposed of as follows: Measures pending on calendar ...... 130 55 . . Measures introduced, total ...... 1,708 3,167 4,875 Confirmed ...... 2,121 Bills ...... 1,468 2,666 . . Joint resolutions ...... 29 63 . . Concurrent resolutions ...... 48 168 . . Summary Simple resolutions ...... 163 270 . . Total nominations received this Session ...... 16,523 Quorum calls ...... 7 2 . . Total confirmed ...... 15,937 Yea-and-nay votes ...... 247 165 . . Total unconfirmed ...... 580 Recorded votes ...... 188 . . Total withdrawn ...... 6 Bills vetoed ...... Vetoes overridden ...... D914 CONGRESSIONAL RECORD — DAILY DIGEST August 2, 1999

Next Meeting of the SENATE Next Meeting of HOUSE OF REPRESENTATIVES 9:30 a.m., Tuesday, August 3 9 a.m., Tuesday, August 3

Senate Chamber House Chamber Program for Tuesday: After the recognition of four Sen- Program for Tuesday: Continue Consideration of H.R. ators for speeches and the transaction of any morning 2606, Foreign Operations, Export Financing, and Related business (not to extend beyond 10:30 a.m.), Senate will Programs Appropriations Act, 2000; resume consideration of S. 1233, Agriculture Appropria- Go to Conference on H.R. 2587, District of Columbia tions. Appropriations Act, 2000; (Senate will recess from 12:30 p.m. until 2:15 p.m., for Consideration of H.R. 2031, Twenty-First Amendment their respective party conferences.) Enforcement Act (modified open rule, one hour of general debate); Consideration of H.J. Res. 58, Disapproving the Exten- sion of the Waiver Authority Contained in Section 402(c) of the Trade Act of 1974 with Respect to Vietnam (unanimous consent order, one hour of general debate); and Consideration of H.R. 987, Workplace Preservation Act (modified open rule, one hour of general debate).

Extensions of Remarks, as inserted in this issue

HOUSE Gilman, Benjamin A., N.Y., E1717, E1718, E1719 Lucas, Frank D., Okla., E1715 Hutchinson, Asa, Ark., E1712 McCarthy, Karen, Mo., E1714 Allen, Thomas H., Me., E1713 Kanjorski, Paul E., Pa., E1716 Miller, George, Calif., E1711 Burton, Dan, Ind., E1712 King, Peter T., N.Y., E1711, E1716 Radanovich, George, Calif., E1711, E1712, E1713 Callahan, Sonny, Ala., E1715, E1716, E1718, E1719 Kuykendall, Steven T., Calif., E1712 Rahall, Nick J., II, West Va., E1718 Carson, Julia, Ind., E1719 Lantos, Tom, Calif., E1713 Sanchez, Loretta, Calif., E1712 Gejdenson, Sam, Conn., E1711 Lofgren, Zoe, Calif., E1716 Underwood, Robert A., Guam, E1714

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