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, TUESDAY, MARCH 16, 1999 No. 41 Senate The Senate met at 10:30 a.m. and was order, there will be 1 hour for consider- I hope the Cochran amendment can called to order by the President pro ation of the resolution, with the time be adopted and perhaps other action tempore [Mr. THURMOND]. equally divided between Senators taken today, but if we could actually HAGEL and EDWARDS or their designees. get to final passage of this bill tonight, PRAYER At 11:30 a.m., the Senate will resume that would be very positive, because we The Chaplain, Dr. Lloyd John consideration of S. 257, the national do have two other issues we would like Ogilvie, offered the following prayer: missile defense bill, with a Cochran to be able to consider in some form this God of grace and God of judgment, we amendment pending regarding clari- week. One of them is the matter of present our lives for Your review and fication of funding. Under a previous Kosovo, how the Senate wishes to ex- Your regeneration. In the bright light consent agreement, there will be 1 hour press itself on that issue and how of Your truth, we see ourselves as we for debate on the amendment, equally ground troops would be introduced, if really are and ask for the power to be- divided between Senators COCHRAN and at all. And then also we have the emer- come all that You meant us to be. We LEVIN or their designees. gency supplemental appropriations bill pray that we will be distinguished for At the conclusion of that debate pending. Next week, the entirety of the our integrity. Help us nurture that time, the Senate will recess until 2:15 week will have to be spent on the budg- quality of undivided wholeness and p.m. to allow the weekly party cau- et resolution in order to complete ac- unimpaired completeness. Strengthen cuses to meet. Upon reconvening at tion on that before the Easter recess. our desire to have congruity between 2:15, the Senate will immediately pro- So the sooner we can finish the missile beliefs and behavior, consistency be- ceed to a vote on or in relation to the defense bill, the better it will be in ad- tween what we know is honest and Cochran amendment. And further votes dressing these other issues in a timely what we do. Particularly, we ask You are expected throughout Tuesday’s ses- fashion. to refortify the Senators’ determina- sion as the Senate continues consider- Mr. President, I know that Senators tion to have You guide their convic- ation of the missile defense bill. HAGEL and REID and EDWARDS are in tions and then give them the courage f the Chamber and wish to speak on the to vote these convictions. May their MEASURE PLACED ON THE resolution commemorating this Con- lives and their leadership reclaim the CALENDAR—S. 609 gressional Medal of Honor given to Senator KERREY, but I would like to admiration of the American people for Mr. LOTT. I understand there is a political leaders and the political proc- take just 5 minutes or so to talk about bill at the desk due for its second read- the missile defense bill. ess. Through our Lord and Savior. ing, Mr. President. f Amen. The PRESIDING OFFICER (Mr. BEN- f NETT). The clerk will report the bill. NATIONAL MISSILE DEFENSE ACT The legislative clerk read as follows: RECOGNITION OF THE MAJORITY Mr. LOTT. Mr. President, I rise in LEADER A bill (S. 609) to amend the Safe and Drug- support and am a proud sponsor of S. Free Schools and Communities Act of 1994 to The PRESIDENT pro tempore. The prevent the abuse of inhalants through pro- 257, the National Missile Defense Act of distinguished majority leader, Senator grams under that Act, and for other pur- 1999. If enacted, it would make the pol- LOTT of Mississippi, is recognized. poses. icy of the United States to deploy, as f Mr. LOTT. I object to further consid- soon as is technologically possible, an effective national missile defense sys- SCHEDULE eration of the bill at this time. The PRESIDING OFFICER. Objec- tem capable of defending the territory Mr. LOTT. Mr. President, this morn- tion is heard. The bill will be placed on of the United States against limited ing the Senate will begin consideration the Calendar. ballistic missile attack, whether acci- of a resolution commending Senator f dental, unauthorized, or deliberate. KERREY on the 30th anniversary of his As I go around the country and I talk receiving the Congressional Medal of ORDER OF PROCEDURE about this issue, people are surprised, Honor. I had the pleasure of talking to Mr. LOTT. Mr. President, with re- stunned, to hear that we do not have Senator KERREY late last night, as a gard to the missile defense bill, it this missile defense capability right matter of fact, as he typically was seems to me good progress is being now. They think that if there happened working aggressively on matters of made. And the fact that we did not to be a rogue missile launched, acci- great interest to our country. I think it have to have a vote on a motion to pro- dentally or even intended, we would be is appropriate that we have this resolu- ceed or on cloture on a motion to pro- able to just knock that out, no prob- tion before us. Under the previous ceed was a very positive development. lem. When they find out we do not have

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

S2695

. S2696 CONGRESSIONAL RECORD — SENATE March 16, 1999 that technology in place now, they are low-on to what we are trying to do this happen? Who did it? Who is to greatly alarmed. with the National Missile Defense Act. blame? All of that is interesting and we So I commend the principal sponsors I hope that before this day is out we should determine that, but here is the of this bipartisan legislation, Senator can set up this group and it will rep- real question: Is it still going on? Have COCHRAN of Mississippi and Senator resent a broad cross section of the Sen- we stopped it? INOUYE of Hawaii, for their diligent ef- ate so that everybody will understand I think Congress should take a seri- forts to ensure that all 50 States—in- what is intended. ous look at this situation. We need to deed, all Americans—enjoy protection There are real dangers here. ‘‘The deal with some laws to make it pos- against missile attack. threat is real, serious, and growing.’’ sible for us to stop this sort of espio- My colleagues are aware that similar That is not my quote. That is a quote nage. Do they need additional money? legislation has been brought before the of the Central Intelligence Agency, an We would need to have the appropriate Senate before—twice last year—and analyst who works in this critical area. briefing from the Energy Department twice we failed, just one vote short of Let me recite what has happened and the CIA to judge whether or not cutting off a filibuster. I am glad it ap- since March of last year: Pakistan additional money should be needed. pears we may not have a filibuster this launched a medium-range missile that This post-cold-war era is a unique time, that we can deal with the sub- it acquired from North Korea; China time, but it is also a dangerous time. It stance of this bill and we can vote on and North Korea continue to provide is a time when historically, reviewing amendments and hopefully get to final Pakistan with technical and other as- what we have done in the past, we drop passage, because it is clear there is bi- sistance on missiles and nuclear weap- our guard when there appears to be partisan support and the realization ons; Iran launched a medium-range times of calm and peace, but I think that we need to move forward. missile. The original design also came that is when we are at our greatest I know there are those who are con- from North Korea. It was improved by danger. Our inability to defend against cerned that it could be misinterpreted technology that it has been receiving incoming accidental or rogue-launched what we are trying to do here and what from Russia and China. Up to this day, missiles is our Achilles’ heel. It is are the ramifications with regard to Russian companies are still exchanging where we are in the greatest danger. the ABM Treaty, the Anti-Ballistic technology and information with Iran. Would we not act? Should we not begin Missile Treaty. My answer to that is They are developing greater capability. the process now? The truth of the mat- that we should make it clear what our That is extremely dangerous. ter is we should have already done it. If intentions are. This is a defensive While Congress has expressed its con- we don’t, there will come a time soon— mechanism; this is to go forward and cern about this, the administration has perhaps early in the millennium—when develop the technology, and when we even taken actions against certain we will, in fact, be threatened and in have that technology, then we should companies in Russia. It continues to serious danger. move to deploy it. But we would have this very moment. We know that Iran This National Missile Defense Act time to explain to one and all—whether is interested in developing and acquir- will get us started. It will be the kind it is Russia, members of the Russian ing a long-range missile that could of progress we need. We will still have Duma or the federation in Russia, their reach—yes—the United States as well to make the decisions about the appro- leadership, or members of the Israeli as European capitals and that Tehran priations and when we actually go for- Knesset—what our intentions are. is benefiting from this extensive assist- ward with deployment. I sense there To make sure that is done, I have ance from Russia and from China. has been movement in the Senate on been discussing with the President and North Korea is a very nervous situa- this issue. I know there has been move- with Senator DASCHLE, and with others tion. That country launched a long- ment in the administration on this on both sides of the aisle, the idea that range missile last August that dem- issue. Now is the time to act. I hope we should set up a working group, pat- onstrated both intent and capability to the Senate will do it in an expeditious terned after the example of the arms deliver payloads over extremely long and bipartisan manner. I believe we control observer group that served us distances. Having been advised of this will look back on this bill and this vote quite well during the 1980s and early development, the CIA now concludes as one of the most significant votes 1990s when we were dealing with the that the North Koreans ‘‘would be able that we take in the year 1999. SALT treaties and we were trying to to use the three-stage configuration as I yield the floor. get disarmament agreements worked a ballistic missile. . .to deliver small f out in Europe and with the Soviet payloads to ICBM ranges.’’ With minor PRIVILEGE OF THE FLOOR Union. modifications, this missile, the CIA We had Senators and Members of notes, could probably reach not only Mr. EDWARDS. Mr. President, I ask Congress who met with representatives Hawaii and Alaska but also the rest of unanimous consent that Bill Beane, a of the then Soviet Government. We the United States. fellow on my staff from the Depart- went to the Soviet Union. We had them The People’s Republic of China, PRC, ment of the Army, be allowed floor come here. We had meetings in Geneva. likewise continues to engage in a mas- privileges during the course of this And I believe that Members of the Sen- sive buildup of its missile forces both Congress for all matters relating to de- ate who were involved will tell you it at the theater level—that is aimed fense. was very helpful. I discussed it with against our friend, Taiwan, their neigh- The PRESIDING OFFICER. Without objection, it is so ordered. Senator MOYNIHAN just yesterday at bor—and the strategic level—aimed at, lunch, and he said clearly when he perhaps, even the United States. f went to Geneva and met with the Rus- Today the PRC has more than a COMMENDATION OF THE HONOR- sians and explained what our inten- dozen missiles aimed at American cit- ABLE J. ROBERT KERREY ON tions were, and they talked about their ies. Yet, we are told on occasion there THE 30TH ANNIVERSARY OF HIS concerns about cruise missiles in Eu- is not a missile aimed at the United RECEIVING THE MEDAL OF rope, that everybody had a better un- States today. That is not true. The HONOR derstanding. Chinese are in the process of develop- The PRESIDING OFFICER. The So what I have advocated is that we ing multiple warheads for those and clerk will report the resolution. set up a group which would be entitled their next-generation mobile missiles, The legislative clerk read as follows: something like this, although I am not which are much more difficult to lo- A resolution (S. Res. 61) commending the wedded to a title, but the national se- cate. Honorable J. Robert Kerrey, United States curity and missile defense working Sadly, there is a serious problem Senator from Nebraska, on the 30th anniver- group, and that Senator COCHRAN here, and it is one that is growing. Just sary of the events giving rise to his receiving would chair that group. I understand recently, of course, is the situation the Medal of Honor. Senator DASCHLE has some Senators in brought to the public’s attention re- There being no objection, the Senate mind on his side of the aisle—it would garding China’s nuclear espionage and proceeded to consider the resolution. be equally divided—who would be in- how we are dealing with that. There The PRESIDING OFFICER. The Sen- volved in this effort. It would be a fol- are those wanting to know, How did ator from Nevada. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2697 Mr. REID. It is my understanding hospital in Philadelphia for a long, In 1979, on the cover of a Newsweek there is 1 hour reserved. long period of recuperation. magazine, with a glorious picture of The PRESIDING OFFICER. The Sen- I will first read the last sentence of Teddy Roosevelt riding to the charge, ator is correct. There is 1 hour equally that citation that he received at the the headline blared out, ‘‘Where Have divided under the control of the Sen- time he received his Medal of Honor, Our Heroes Gone?’’ ator from Nebraska and the Senator which I think encapsulates what Sen- Mr. President, that was in 1979, at a from North Carolina. ator KERREY did 30 years ago this past time when many Americans were ques- Mr. EDWARDS. Mr. President, the Sunday. tioning the very foundation and base of order we intend to follow to speak on KERREY’s courageous and inspiring leader- our Government and our society. They this resolution will be myself first, fol- ship, valued fighting spirit, and tenacious de- were reaching out for inspiration and lowed by the Senator from Nebraska, votion to duty in the face of almost over- whelming opposition sustain and enhance courage and asking the Newsweek 1979 Mr. HAGEL, Senator MOYNIHAN will the finest traditions of the United States question, ‘‘Where have our heroes speak next, followed by Senator REID Naval service. gone?’’ from Nevada. The courage and leadership that Sen- There are heroes all around us. One Mr. President, this resolution is sup- in our midst is the man whom we rec- ported by all Senators, other than Sen- ator KERREY showed on that day, as I mentioned earlier, led to his receipt of ognize this morning, BOB KERREY. BOB ator KERREY. the Medal of Honor. From there, he KERREY is a hero for many reasons. I will talk for just a moment about Anyone who has been awarded the Con- how I got to know Senator KERREY and went to a veterans hospital in Philadel- phia for a long, long period of recuper- gressional Medal of Honor, our Na- what I have learned about him. Sen- tion’s highest award for valor and brav- ator KERREY and I first met about 2 ation and, as he has told many of his friends and colleagues, it was a very ery, is a hero. But the mark of a hero years ago when I was looking for a new is what happens after that recognition. job, the job that I presently have as difficult time for him. He went from What has BOB KERREY done with his U.S. Senator from North Carolina. At there to becoming a successful busi- nessman, and he eventually became life since that time 30 years ago when the time, Senator KERREY was the head he, in a selfless, valorous way, led his of the Democratic Senatorial Cam- Governor of Nebraska. That led to the time he has spent here in the U.S. Sen- men and put his men, his duty, his paign Committee. I came here to Wash- country and his mission above himself? ington to meet with Senator KERREY ate. As I mentioned, Senator KERREY is a What has happened to this man since? and was grilled by him on why I was Well, as he tells the story, in a rather seeking this office, what my motiva- man who most of us look up to; he is clear thinking and independent mind- self-effacing way—that is how we Ne- tions were, and why I thought I should braskans are, humble, self-effacing— be able to represent the people of North ed. The thing that always inspires me about him is his willingness to speak the only flaw I can find in KERREY is Carolina in this esteemed body. that he was not Army. But other than Over the course of brief time through up even when speaking up is not al- that defect, he has conducted himself campaigning and spending lots of time ways in his best political interest or in rather well. together, we have gotten to know each the best political interest of his party. The mark of a hero is what one has other very well. He is the definition of He, as I mentioned, is the definition of taken in life—the good, the bad, and all a leader, in my mind. Here is a man a leader. that is in between, and how they have who is independent, clear thinking, al- I want to mention one quote that I applied that to make the world better, ways willing to speak his mind regard- think is critically important in under- and what they have done to improve less of the politics, willing to speak standing the kind of leadership that the lives of others. That begins with against his own political party if he be- Senator KERREY has brought to this some belief—belief in oneself, belief in lieves that his position is right and body during the time he has been here. one’s country, belief in others, belief just, who cares a great deal and It is a quote that he gave recently to a that in fact God has given us all empathizes for the plight of others. Nebraska newspaper: He has done an extraordinary job It’s odd to say, but this all became a real strengths, resources and weaknesses. during the time I have seen him work gift in many ways. As BOB KERREY has often said, there here in the Senate during the brief Speaking now of the events that oc- were so many who surrounded him time that I have been here. He is the curred 30 years ago this past Sunday after those days in Vietnam—in the kind of Senator who many of us young and the injuries he received as a result: hospital, in rehabilitation—who helped Senators would like to emulate. It’s odd to say, but this all became a real him put his life back together. That is I want to talk for just a minute gift in many ways. The world got bigger to what inspired him. He rose inspired as about the events that give rise to this me. I didn’t realize there was so much pain well. He rose and reinspired, and re- resolution. Thirty years ago this past in the world. Up until then, I presumed that inspired, and reinspired. They lead and if I didn’t feel it, then it wasn’t happening. Sunday, Senator KERREY, when he was they never stop and they never stop. But it’s going on out there every day. In hos- That is the story, to me, that is most a Navy SEAL, commanded a unit of pitals. In lots of homes. magnificent about BOB KERREY. Navy SEALs that were involved in an I learned that the most valuable, priceless attack on the Vietcong. His unit scaled thing you can give anyone is kindness. At It is appropriate that we recognize a 350-foot shear cliff in order to posi- the right moment, it can be life-changing. one of our own on the floor of the Sen- tion themselves for the attack. That is a perfect description of Sen- ate today. I am particularly proud be- During the course of the attack on ator BOB KERREY. It is the reason that cause I come from the State where BOB the Vietcong, a grenade exploded at the he is the extraordinary man and the KERREY was grounded with founda- feet of Senator KERREY. He was se- extraordinary leader and the extraor- tions, with values, with standards, with verely injured by the grenade, but in dinary Senator that he has been in this expectations; and so I know how he has spite of these severe injuries, which body, and he is the reason that I sup- inspired our State. Our colleagues eventually led to the loss of a part of port, with great enthusiasm, this reso- know how he has inspired this body and his leg, he continued to direct the at- lution honoring him. the people around him, and they know tack in a clear-thinking way that even- At this time, I yield for the junior of the lives of the people that he has tually led to victory by this Navy Senator from Nebraska. touched. SEAL team. The PRESIDING OFFICER. The Sen- For all of those reasons, and more, The work he did on that day was ex- ator from Nebraska, Mr. HAGEL, is rec- Mr. President, I am proud to take a traordinarily courageous and showed ognized. moment to share in recognizing the the leadership that we have come to Mr. HAGEL. Mr. President, I thank goodness and, yes, the heroism of our know over the last 30 years since that my friend and colleague from North friend and our colleague, BOB KERREY. event occurred. He went from that Carolina for helping organize this rec- To you, good friend, I salute you. event to winning the Medal of Honor ognition of our friend and colleague, Mr. President, I yield the floor. for the events that occurred on that my senior Senator from the State of The PRESIDING OFFICER. The Sen- day, and from that place to a veterans Nebraska, BOB KERREY. ator from New York is recognized. S2698 CONGRESSIONAL RECORD — SENATE March 16, 1999 Mr. MOYNIHAN. Mr. President, I am Mr. ROBB. Thank you, Mr. President. from the Senate Chamber, Navy Lt. honored, sir, to follow the distin- I thank my friend from Nevada for BOB KERREY did something above and guished Senator from Nebraska and his yielding. I will be very brief. beyond the call of duty. If he did noth- remarks. And might I begin with a Mr. President, I happened to be serv- ing else with the rest of his life, we phrase from the old Navy—by which I ing in the Republic of Vietnam at the would, as Americans, honor him for mean the old, old Navy—when a fellow time that this particular act of hero- what he did on that island far away. was mustering out, he would say, ‘‘I’m ism was made. I am more than a little I suspect, however, when the time going to put that oar on my shoulder.’’ familiar with the criteria for the par- comes—as for all of us it must—to And the reference was that you were ticular award that was given. Almost summarize this man’s contributions to going to put that oar on your shoulder any major award for gallantry is sub- his friends, his Nation, and the world— and march inland until you reached a ject to some degree of subjectivity. the Congressional Medal of Honor will town where someone said, ‘‘Hey, fella, This is the one that is clearly proven be cited, not as an award which shaped what’s that thing you’ve got on your beyond any reasonable doubt to have the man, but rather as just one exam- shoulder?’’ And then you could settle been awarded meritoriously under any ple in a life and litany of courage down in comfort after years at sea. Ne- and all circumstances. which has known no bounds and which braska would surely qualify for such a I join all of my colleagues who are serves as a Platonic example for the site. This extraordinary man, who left here, including those veterans who rest of us to pursue, but never to Nebraska, joined the Navy, brought served in Vietnam with our distin- achieve. such honor and distinction to himself, guished Senator, and I thank my col- Thank you, Senator BOB KERREY, for and now to the Senate is remarkable league for yielding. This is one that indeed. sharing with the people of Nebraska, makes all of us proud. this Nation, and each of us who serve You’ve heard of his work. Just a word I yield the floor. with you—your exemplary life. about the man. Hemingway said that Mr. REID. Mr. President, Groucho courage was grace under pressure. BOB Marx used to say that he wouldn’t be- The PRESIDING OFFICER. The dis- KERREY has shown that grace from long to any club that would have him tinguished Senator from Arizona is rec- that very moment 30 years ago on that as a member. I get that feeling about ognized. bluff. Michael Barone in the Almanac the very small club consisting of those Mr. MCCAIN. Mr. President, ‘‘It was of American Politics recounts that who have been awarded the Medal of my duty.’’ So did my friend and col- when asked about the medals he had Honor. league BOB KERREY recently respond to won, Senator KERREY answered, ‘‘One Nobody asks to join, the price of ad- a question by CBS’ Bob Schieffer, who Purple Heart, one Bronze Star—one mission is too high. Nobody applies, had asked my friend why he did it— whatever.’’ Well, the ‘‘whatever’’ is, of the rules don’t permit applications. why he led his elite SEAL team up a course, the Congressional Medal of You get in this select club by doing 350-foot sheer cliff and then down into Honor. There have been—all told—five something that no one would do, or the waiting enemy’s camp, suffering U.S. Senators to have won that medal. should I say rarely does, and most of life-threatening injuries in the process It was created during the Civil War. the time you pass the test by not sur- but effectively commanding his team Four of the senators received the viving it. throughout their successful mission. medal for service in the Civil War. And I dare say that if BOB KERREY had For then-Lieutenant KERREY, his now, 134 years later, a fifth. been offered membership in this club as duty was his honor, and his country’s BOB KERREY does do such honor to a volunteer, he would have declined. cause was his highest calling. That a this body, as he has done to his coun- But membership isn’t voluntary. young man from the plains of Nebraska try, with grace under pressure. Perhaps Once you have performed those acts showed ‘‘conspicuous gallantry and in- nothing more distinguished him than of outstanding courage, of valor, of trepidity at the risk of his life above the long and difficult time in the heroism—above and beyond the call of and beyond the call of duty’’ in Viet- Philadelphia Naval Hospital witnessed duty—once you have come through the nam, as his Medal of Honor citation re- by many, including the marine Lewis valley of the shadow of death and into calls, reminds us that exceptional hero- Puller, Jr.—son of the most decorated the light—once you have, in the unique ism can spring from the humblest of marine in history. He wrote of Senator circumstances of military combat, roots. KERREY, ‘‘His stoicism, though saved lives and taken lives and in most It was his duty, BOB says. Near the unnerving, was a source of amazement instances, given your own life, to qual- to all.’’ It continues such. It continues very beginning of the assault on the ify for the medal—you are a marked Viet Cong camp, a grenade exploded at with an evenness that can be eerie at man. the same moment it is inspiring. Rob- his feet, injuring him terribly and BOB KERREY bears that mark. That ert Novak has recently written that threatening the success of the mission. mark shows through his grace, and his In similar circumstances, many men, what sets Senator KERREY apart is how intelligence and concentration and ‘‘unashamedly he preaches love of and incapacitated and bleeding, might have wit—aspects with which, I dare say, given up. Not BOB. His sense of duty service to country.’’ And so, sir, from many in our body are handsomely en- another generation and in a far distant did not allow it. dowed. conflict, this lieutenant junior grade That mark shines above his hard His sense of duty compelled him to salutes him and would have the Senate work, love of country, and respect for fight on, despite the trauma of sustain- know—those who don’t—that when a his fellow members—qualities which ing multiple injuries, including one Medal of Honor winner appears any- most here share in ample quantity. that would take his leg, and despite the where on ship, the answer is, ‘‘Atten- That mark transcends every other chaos of battle, which has undone tion all hands.’’ He is to be so saluted skill or point of character which makes other good men who have found them- on all occasions and honored through- us all unique human beings. The mark selves in less dire circumstances. out his life, and for the extraordinary BOB KERREY bears is his having given BOB’s courageous leadership won that legacy he will one day leave. battle on a Vietnamese island in Nha I salute you, sir. one of his limbs for our country. The mark BOB KERREY wears is his Trang Bay thirty years ago. ‘‘I don’t I thank the Chair. remember doing anything especially I yield the floor. unique courage, his honor, his valor. heroic,’’ says the plain-spoken Nebras- The PRESIDING OFFICER (Mr. ROB- He shows it in his daily life, in his po- kan. Although I do not know the men ERTS). The distinguished Senator from litical decisions, and in his dealings Nevada is recognized. with the world. BOB commanded on that fateful day, I Mr. REID. Mr. President, I yield 1 BOB KERREY, when dealing with enti- do know that their testimonial to his minute to the junior Senator from Vir- tlements, education, Iraq, and farm selfless heroism ensured that history ginia. issues, has shown unparalleled courage. recorded my friend’s sacrifice. The PRESIDING OFFICER. The Sen- But, to me he is simply my friend. That record, in the form of BOB’s ator from Virginia is recognized for 1 Thirty years ago, on an island in Medal of Honor citation, has surely in- minute. Southeast Asia, ten thousand miles spired countless Americans in uniform March 16, 1999 CONGRESSIONAL RECORD — SENATE S2699 over the past thirty years. As my col- Mr. DASCHLE. Mr. President, I com- years later, when that restaurant was leagues know, it is with reverence and mend the distinguished Senator from destroyed in a tornado, it was the Gov- awe that uniformed service members Arizona for his eloquence, as well as ernment—the people of the United and veterans speak of America’s Medal the Senator from Nevada, whom I also States—that loaned them the money to of Honor recipients. They are, indeed, heard. I thank the Senator from North rebuild. the heroes’ heroes. Carolina for making the effort to allow As Governor and, for the last 11 I myself am privileged to have served us this opportunity on the floor this years, as a Member of the Senate, BOB in the United States Navy, as did my morning. KERREY has fought to make sure Gov- father and grandfather before me. They Mr. President, last week, when Joe ernment works for all Americans. He would tell you, as I do today, how hon- DiMaggio died, I heard many people has fought to make health care more ored we all should be to know a man say it is a shame how few heroes there affordable and accessible. like BOB KERREY, a man whose fighting are left among us. To anyone who be- He has fought to give entrepreneurs spirit earned him the nation’s highest lieves that, I say: Meet my friend, BOB the chance to turn their good ideas award for exceptional military service KERREY. To me and to many others, he into profitable businesses. He has above and beyond the call of duty. is a genuine American hero. fought to make sure this nation keeps I am deeply honored to serve in the As others have noted, on a moonless its promises to veterans. Senate with BOB. Ironically, he would black night, 30 years ago this past Sun- He has also fought tirelessly to pre- be the first to tell you that he felt lit- day, Lieutenant KERREY, then a 25- serve family farms and rural commu- tle calling for public service when he year-old Navy SEAL commander, led nities. came home from Vietnam. For he came his squad in a surprise attack on North For several years now, I’ve had the home not only with a broken body, but Vietnamese Army guerillas on the is- good fortune to serve with Senator with an understandable resentment land of Hon Tre. KERREY on the Agriculture Committee. about the war, and toward those politi- During the fierce firefight that broke I know how deeply committed he is to cians in Washington who conducted it. out, an enemy grenade exploded on the restoring the agricultural economy. In 1994, he played a key role in pre- BOB’s faith in our Nation and the val- ground beside him. The blast shattered serving the Federal crop insurance pro- ues she embodies was reaffirmed by his his right leg below the knee, badly gram, and today, with the Presiding military service. ‘‘It’s a great country wounded his right hand, and pierced Officer he is one of the leaders in the that will fight for other people’s free- much of his body with shrapnel. effort to strengthen it again, so we re- dom,’’ he says. But his faith in his Gov- Despite his massive injuries, Lieuten- duce our over-reliance on disaster pro- ernment was shaken, as was that of ant KERREY continued to direct his grams and make the system fairer and many Americans, after the divisive ex- squad until the last man was safely more predictable for producers. perience of Vietnam. evacuated. Days later, doctors were Senator KERREY is continually look- What restored BOB’s faith in his Gov- forced to amputate his injured leg just ernment? By his reckoning, it was the ing for new ways to create new oppor- below the knee. Lieutenant KERREY tunities for American farmers. He is a Philadelphia Naval Hospital where he had been in Vietnam only 3 months. spent months in surgery and therapy. strong supporter of ethanol, and of in- For his sacrifice, he was awarded the creased agricultural research. He is As BOB has said, the fact that our Gov- Bronze Star, the Purple Heart, and the ernment would build and fund a hos- committed to preserving the integrity highest award our nation bestows for of the U.S. food supply, so that we con- pital for people like him—anonymous bravery, the Congressional Medal of people who had never contributed to a tinue to have the safest, most abun- Honor. But it is not only what others dant, most economical food supply in politician’s campaign—and provide the pinned over his heart that makes BOB medical care they needed, simply be- the world. KERREY a hero. It is what is in his Like Senator KERREY, I come from a cause they were wounded Americans, heart. state that is made up mostly of small was inspirational. So were the medical JOSEPH ROBERT KERREY returned towns and rural communities, so I am staff and volunteers who helped heal from Vietnam angry and disillusioned. personally grateful to him for his ef- his wounds. What he endured in Vietnam, and what forts to help agricultural producers. I Faith renewed, BOB went on to be- he saw later at the Philadelphia Naval am also grateful for his insistence that come Governor of Nebraska and a U.S. Hospital, where he spent nine months rural America be treated fairly on a Senator. His independent leadership on learning how to walk again, shook his whole array of critical issues, from ex- some of the toughest issues we face faith—both in the war, and in the Gov- panding the information superhighway, today, including Social Security, edu- ernment that had sent him there. It to improving our health care system, cation, and tax reform, demonstrates forced him to re-examine everything he and strengthening the schools Ameri- that this man, who gave so much for had ever believed about his country. ca’s children attend, especially in rural his country in military service, makes But slowly, out of his pain and anger areas. an important contribution to Ameri- and doubt, he began to acquire a new But Senator KERREY’s greatest con- ca’s governance in peacetime. faith in this Nation. tribution to this Senate, and to this In the words of BOB’s Medal of Honor Years ago, when he was Governor of Nation, may be that he is not afraid to citation: Nebraska, he described that faith to a challenge conventional wisdom. In 1994, Lt. (j.g.) Kerrey’s courageous and inspiring reporter. He said, ‘‘There are . . . peo- almost single-handedly, he created and leadership, valiant fighting spirit, and tena- ple who like to say, ‘You know all cious devotion to duty in the face of almost chaired the Bipartisan Commission on overwhelming opposition sustain and en- these subsidy programs we’ve got? Entitlement and Tax Reform. Conven- hance the finest traditions of the U.S. Naval They make people lazy.’ And I like to tional wisdom said, don’t get involved Service. jump right in their face and say, that with entitlements. You can’t make That leadership and sense of duty is an absolute lie.’’ Government help anyone happy; you can only make en- continues to motivate his public serv- ‘‘didn’t make me lazy. It made me emies. ice today. grateful.’’ But BOB KERREY’s personal experi- BOB’s contribution to America’s gov- Another time, he put it more simply. ence told him that preserving Social ernance may grow. Although he will sit While government ‘‘almost killed me’’ Security and Medicare was worth tak- out next year’s Presidential race, he in a war, he said, government also ing a risks—risking some political cap- may be a contender in the future. In ‘‘saved my life.’’ ital. He has repeatedly opposed efforts the meantime, I am honored and privi- It was the United States Govern- to amend our Constitution to make leged to work with him in the Senate. ment, he said, that fitted him with a flag-burning a crime. It is politically Thank you for your valued service, prosthesis and taught him to walk risky, even for a wounded war hero, to BOB. again. It was the Government that paid take such a position. But Senator I yield the floor. for the countless operations he needed. KERREY has taken that risk, time and The PRESIDING OFFICER. The dis- Later, in 1973, it was the Government time again, because—in his words: tinguished Democratic leader is recog- that helped him open his first res- America is a beacon of hope for the people nized. taurant with his brother-in-law. Two of this world who yearn for freedom from the S2700 CONGRESSIONAL RECORD — SENATE March 16, 1999 despotism of ‘‘repressive government.’’ This ple Hearts. FRITZ HOLLINGS holds a fired in anger, who have faced the dif- hope is diluted when we advise others that Bronze Star. DANNY INOUYE lost an arm ficulty and the challenge of combat. I we are frightened by flag burning. in Italy in World War II. He was award- can only read about it. I can only hear He is, at heart, a genuine patriot. ed a Purple Heart, a Bronze Star, and about it. I cannot identify with it in He was born in Lincoln, Nebraska, the Distinguished Service Cross. JOHN any personal way. one of 7 children. His father was a KERRY holds the Silver Star, the builder, his mother was a housewife. As So why am I taking the time to stand Bronze Star, three Purple Hearts, the here and talk about the contribution of a child, he suffered from such severe National Defense Service Medal, and asthma that one of his teachers later BOB KERREY when everyone who has two Presidential Unit Citations. JOHN said, when he breathed, he sometimes had those kinds of experiences has MCCAIN spent 51⁄2 years in hell as a talked about it? I am standing because sounded like a fireplace bellows. De- POW. He holds a Silver Star, a Bronze of an experience I had 2 years ago—3 spite his asthma, he was on his high Star, a Legion of Merit honor, a Purple years ago now—with the former major- school basketball, football, golf and Heart, and the Distinguished Flying swim teams. Is anyone surprised? ity leader, Bob Dole. I was on the cam- Cross. BILL ROTH holds a Bronze Star. After high school, he went to the paign trail with Senator Dole, and we University of Nebraska, where he fin- TED STEVENS was awarded two Distin- guished Flying Crosses and two Air were out making the usual kinds of ished his 5-year pharmacy program in 4 stops. I was told our next stop was in years. His asthma likely would have Medals in World War II. Many other Senators served with distinction as Battle Creek, MI. Battle Creek, MI, to given him a legitimate way to avoid me means breakfast cereal. I had no military service, but he wasn’t looking well in times of peace as well as in times of war. idea why Senator Dole wanted to go to for a way out. Battle Creek, MI. Shortly after he graduated, he en- One Senator among us holds the Con- listed in the Navy as an officer can- gressional Medal of Honor. To him, this We went into a building in Battle didate. The Navy was then just start- Nation is indebted for all that he did to Creek, a Federal building. It was under ing its elite SEALs program, the achieve it. renovation, but the lobby had not been I am reminded of a story Senator Navy’s version of the Green Berets. Of renovated. I felt as if I had walked into KERREY has told many times about a the 5,000 men who applied for under- a movie set. It was the 1940s all over conversation he had with his mother 30 water demolition training with the again. This building, being renovated years ago. Doctors at the Philadelphia SEALs, only 197 were selected, and into a Federal office building, had been Naval Hospital had just amputated his only about 60 made it through the bru- a Federal hospital. It was the hospital leg. When he awoke from surgery, his tal training. His plan was to do his where Bob Dole spent, on and off, 3 mother was standing at his bedside. duty with the SEALs and return to Ne- years of his life. They had found the ‘‘How much is left?’’ he asked her. place—that is, the floor—where Bob braska to work as a pharmacist. He His mother said, ‘‘There’s a lot left.’’ made the SEALs, with asthma. Is any- Dole’s bed had been when he was taken As Senator KERREY says, ‘‘She wasn’t one surprised? there in a condition where he could do But then that all changed on that talking about body parts. She was nothing for himself. He couldn’t brush black night 30 years ago. When he fi- talking about here.’’ She was talking his teeth himself. He certainly couldn’t nally got the chance to practice phar- about what is in his heart. go to the bathroom for himself. He was For 30 years, BOB KERREY has drawn macy after he had been put back to- just taken there and placed in a bed on the courage and compassion of what gether at the naval hospital, he discov- and left there, as they began to work is here—first to rebuild his own life, ered he could no longer stand for as on him. then to try to make a better life for long as the job required. Changing people in Nebraska, and then for people We walked around the floor. As I say, courses, he and his brother-in-law all across this country. He is to me a it was being renovated. Finally, Sen- started a restaurant. Eventually they genuine American hero, and he is my ator Dole identified the place on that would own several restaurants and friend. floor where his bed had been. He stood health clubs and employ more than 900 I yield the floor. there and said, ‘‘Yep, that’s the view people. Is anyone surprised? The PRESIDING OFFICER. The dis- out of the window; that’s where the In the beginning, they did everything tinguished Senator from Utah. bathroom was, where I would be themselves, from tending bar to flip- Mr. BENNETT. Mr. President, I can’t wheeled,’’ so on, so forth. ‘‘Okay, let’s ping burgers to washing dishes. Is any- pass up the opportunity to embarrass one surprised? go.’’ BOB KERREY. I know, as we all do, that He entered politics in 1982, beating an It was the working press that said, he did not ask for this and that it is al- incumbent Republican Governor in a ‘‘Wait a minute, Senator. Don’t leave. ways uncomfortable to come to your heavily Republican State. At the time, Tell us how you feel.’’ own wake, but he deserves it. I want to Nebraska was in the middle of a ter- participate in it and do what I can to Probably for the first time in public, rible budget and farm crisis. Over the not only add to his embarrassment a Bob Dole told us what it was like in a next 4 years, he replaced the 3-percent little, but to let him know how well re- military hospital without any pros- deficit he inherited with a 7-percent garded he is on both sides of the aisle pects, without any immediate hope, surplus. Knowing BOB KERREY, is any- and among those who may disagree completely paralyzed by his condition. one surprised? The thing that struck me the most and He never received lower than a 55- with him on all of the great issues that the thing that brings me to my feet percent approval rating for the entire the minority leader just listed. time he was Governor. In 1985, when he I served in the military at a time today was his description of some of stunned Nebraskans by announcing when the only shots I ever heard fired the other things that happened in that that he would not seek a second term, were in basic training. After I got out war. he was at a 70-percent approval rating. of basic training, I ended up in class- He said, catching me completely by After the Governor’s office, he went room and spent my time trying to surprise, ‘‘Over there was where Phil briefly to Santa Barbara, CA, where he teach surveying to a group of draftees Hart had his bed.’’ who didn’t understand what the word taught a college class on the Vietnam And he said, ‘‘Over there’’—or maybe War with Walter Capps. In 1988, Nebras- meant. The only reason I was doing that is because my particular military it was down the hall—‘‘was DANNY kans elected him to the U.S. Senate. In INOUYE.’’ He said, ‘‘Phil wasn’t hurt as 1992, he ran for our party’s Presidential specialty, for which I was being trained, was being phased out in the badly as the rest of us, so he could get nomination. He is a fierce defender of out from time to time. The Hart family Nebraska’s interests and a national way the military always does. They train you for an obsolete skill and then owned a hotel down the street, and he leader as well. would go down to the hotel and get This Senate is enriched by the con- make you an instructor to teach that some decent food for us and smuggle it tributions of many heroes from dif- skill to other people who do not need in so that we didn’t have the hospital ferent wars, Mr. President: it. MAX CLELAND, who lost an arm and I have absolutely no basis for identi- food all the time.’’ both of his legs in Vietnam, holds a Sil- fying with the group, the very small He said, ‘‘DANNY INOUYE was the best ver Star. CHUCK HAGEL holds two Pur- group of people who have heard shots bridge player in the whole hospital.’’ March 16, 1999 CONGRESSIONAL RECORD — SENATE S2701 Subsequent to that, I talked to Senator because it has changed the lives of so He was leading his SEALs that night INOUYE on the subway and said, ‘‘I un- many people. 30 years ago. He had brought them to a derstand you were the best bridge play- To those who do not know BOB dangerous place, and he was bound and er in the hospital in Battle Creek.’’ He KERREY as well as his colleagues know determined, at the risk of his own life, said, ‘‘Oh, no, I wasn’t very good; it’s him, I say this is a man of no wasted to bring them all back. He fought with just that Dole was terrible.’’ words. This is not a man of small talk. great valor. He never lost faith. He al- Then Bob Dole said, ‘‘As I got a little This is a man with big vision, big ideas, ways insisted that what he would do better, they began to move my bed and little time to waste. One, I think, would be in the best interests of his around the hospital, because I could can make the leap that that experi- men. tell jokes and I would cheer some of ence, that brush with death, has made For him, the world then was very the others up.’’ him understand, as many do not under- simple: his mission, his men, and then, Why do I bring this up? Of course, we stand, that life is fleeting and life goes and only then, himself. He was and is a all know Bob Dole. We have named a fast. hero. BOB KERREY saw war in all its building after Phil Hart. I don’t know Although his rehabilitation must brutality, in all its confusion, in all its what we will name after DANNY INOUYE, have seemed like an eternity, what he senselessness, but he never surrendered but he is still here. I bring this up with got out of that clearly was the love and his heart and his spirit to that brutal- respect to BOB KERREY because we support of many people, and it made ity. He never let it harden his heart or honor these men not solely for what him realize that he wanted to have a cloud his judgment. they did in the military, not solely for chance to give that kind of support to He came back from a war committed what they did to rebuild their bodies, others. to continue to serve his Nation. He re- mains an idealist, and more impor- but for the example they set to rebuild I consider working with BOB KERREY their lives. To me, that is more heroic an honor. It is always interesting. It is tantly an idealist without illusions. than the instant in battle when your always exciting. It is always an experi- And again in his acerbic way he would instincts take over and you do what ence you can never figure out until it deny all this. But it is true. He still believes deeply in his coun- your duty tells you you have to do. I actually happens, because he is not try. He still understands that it is nec- say that without ever having been someone who is driven by the ordinary; essary to lead. He still understands and there. So I could well be wrong. it is the extraordinary. keeps faith with those he led and those, But how much heroism is involved in I add my words of praise for my sadly, he left behind. He is somebody of pulling yourself together when you are friend BOB KERREY. I also add words of whom we are all tremendously proud. lying in a bed unable to brush your own praise for the people who rehabilitated And there is something else about BOB teeth and say, ‘‘I’m going to rebuild you in your tough times. Because of KERREY which might explain how he my body, I’m going to rebuild my life, their work, we have you here. could lead men successfully on vir- I’m going to go to law school or found Thank you very much. tually impossible missions, because he Mr. EDWARDS. Mr. President, before a restaurant,’’ or do whatever it is that has that kind of talent to walk into a the Senator from Rhode Island pro- has to be done to such an extent that room when everyone else is depressed, ceeds, how much time do we have re- you are qualified in the eyes of the vot- feeling oppressed, feeling without hope, maining? ers in the State in which you live to and the combination of his energy and The PRESIDING OFFICER (Mr. represent them in the U.S. Senate. his confidence and that glint in his eye SANTORUM). Eight minutes 53 seconds. We are surrounded by heroes, not just convince people they should follow Mr. EDWARDS. Mr. President, I ask because of what they did while under him, even if the task appears impos- unanimous consent for an additional 10 enemy fire, but what they did in the sible. years following when they gave our minutes so that Senators who are Fortunately for us, he has brought children and our contemporaries the present will be allowed to speak. these great skills to the U.S. Senate. example of never giving up, of never al- The PRESIDING OFFICER. Without He continues to serve his country. He lowing what happened to them to de- objection, it is so ordered. continues to take the tough missions— stroy them. Bob Dole was such a hero; Mr. REED. Thank you, Mr. Presi- not the milk runs but the hard mis- Phil Hart was such a hero; DANNY dent. sions. We all appreciate his courage INOUYE, JOHN MCCAIN, MAX CLELAND, Mr. President, today is one of those and his valor. and BOB KERREY. rare moments on the floor of the Sen- We all have many personal anec- I will never join the select group of ate that we can, with respect and rev- dotes. Let me just share one. I admired people who receive military honors or erence and, indeed, humility, salute a BOB KERREY long before I ever got to military medals, but I am proud to be true American hero, Senator BOB the U.S. Senate. I met him several part of the select group that knows and KERREY. times before, but the first time I was works with these heroes, these men Senator KERREY is a man of great really sort of speechless was on Inau- who have demonstrated to us that what courage. That is obvious from his ac- guration Day in 1996, where I showed you do over a lifetime is many times complishments, not just as a SEAL in up outside there in the corridor a few more important than what you do in an Vietnam, but as a public figure for feet away from here, ready to meet instant, and BOB KERREY stands at the many, many years. He is also a patriot, with my new colleagues in the U.S. first rank of that select group, and I someone who loves this country deeply Senate, and for the first time in my salute him. and sincerely and fervently. It is this life, within a step away, I actually saw The PRESIDING OFFICER. The dis- patriotism which caused him to join someone wearing the Medal of Honor. I tinguished Senator from Rhode Island the U.S. Navy, although I suspect if looked at Senator KERREY as a star- is recognized. you asked him back then, he would struck teenager would look at a great Mr. REED. Mr. President, prior to have made some type of joke about his hero. And, in fact, that was one of the making comments about the senior joining the Navy and joining the most rewarding and impressive mo- Senator from Nebraska, I yield 1 SEALS. But in his heart, it was be- ments of that very impressive day. minute to the Senator from California. cause of his profound love for his coun- But I will recall one other final anec- Mrs. BOXER. Mr. President, I thank try and his dedication to his future. dote. BOB and I were together in Nan- the Senator so much for yielding. Then I suspect also that in the course tucket a few years ago. We got up early I say to the Senator from North of his training, he began to realize that one morning to go running. Now, I Carolina, Mr. EDWARDS, and the Sen- he had been given the most profound must confess, I thought I might have ator from Rhode Island, Mr. REED, for privilege any American can be given, an advantage running against Senator arranging this, thank you. I think it and that is the opportunity to lead KERREY. After all, I am younger. But has been a very high moment in my ca- American fighting men. That privilege at about the 3-mile mark, when he reer in the U.S. Senate. I say to Sen- also implies a sacred trust, a commit- turned around and said, ‘‘got to go’’ ator KERREY, I wish you never had been ment to do all you can to lead your and sped away, I felt a little chagrined. hurt in war, and I just want to thank troops with both courage and sound My youth and my other talents could you for coming back from that trauma, judgment. not keep up with this gentleman. S2702 CONGRESSIONAL RECORD — SENATE March 16, 1999 He honors us with his presence. He verely injured in Vietnam, sustaining tion’s highest award for valor, not just has honored us with his service. We those critical injuries that cost him his for the qualities that people talk about treasure him. We respect him. And right leg. And over the years we have for his military service, but, more im- today we are giving him his due. heard others describe, with great elo- portantly, for his humanity and for his Senator KERREY, thank you for your quence and great poignancy, the fight- sense of purpose, for his idealism and service to this Nation. ing on that island in Nha Trang Bay for his understanding of the real prior- I yield the floor. and the courageous way in which BOB ities in life. I am delighted to be here The PRESIDING OFFICER. Who fought on after a grenade had exploded today to share in this special celebra- yields time? at his feet, that he kept fighting even tion of who our colleague is and what Mr. KERRY addressed the Chair. though he was nearly unconscious at he brings us. The PRESIDING OFFICER. The Sen- the time, kept on the radio directing Mr. EDWARDS. How much time re- ator from Massachusetts. his men, leading—leading—in the way mains? Mr. KERRY. Mr. President, who con- that we have come to know and expect trols time? How much time is remain- The PRESIDING OFFICER. Five BOB KERREY to lead, leading those minutes 20 seconds. ing? SEALs under his command to suppress Mr. EDWARDS. We yield to the Sen- the enemy’s fire and to try to safely Mr. EDWARDS. We yield 3 minutes ator from Massachusetts. get out of a bad situation. to the Senator from Illinois. Mr. KERRY. I thank the distin- I think, though, that what we really Mr. DURBIN. Mr. President, I thank guished Senator. celebrate here today—and I think for the Senator from North Carolina for Mr. President, I thank my col- those of us who have served in Viet- this resolution honoring our fellow col- leagues, Senators DASCHLE, HAGEL and nam, it is not so much the fighting league, Senator BOB KERREY of Ne- EDWARDS, for placing this resolution there as the things that people faced braska. I want to add my voice to those before us today; and I would like to when they returned. In that regard, I who have spoken in salute to this indi- speak just for a few moments about think BOB KERREY has also traveled a vidual and the contribution he has both the event and the person that it very special journey. And it is a jour- made. commemorates. ney that teaches us a great deal, as it The Vietnam war was like nothing This is an important anniversary in taught him a great deal. It is a journey else in my life politically—I am sure the life of one of our colleagues and one of personal recovery and of personal virtually everyone my age in this of our great friends, my personal discovery. Chamber would say the same thing— friend, the senior Senator from the In many ways, he struggled to put the way it preoccupied the attention of State of Nebraska. I first came to know things back into perspective. It is not this country, the way it dominated our BOB KERREY during the very time that easy to lose people; it is certainly not political and personal lives, and the de- we commemorate today. He and I were easy to lose a piece of yourself, and bate that went on for so many years. in the Navy together. We were in Viet- come back to a country that has deep There were some who stayed and some nam together. questions itself about why it was that who went and some who protested; In fact, though we did not know each it put you through that kind of tur- there were some who served. Everyone other, we knew of each other because it moil. And BOB managed to sort all of was touched by that war in some way is inevitable that two young lieuten- that out, finding a special sense of or another. ants with the same name, somewhat in humor, a kind of impish reverence, I I was particularly struck by the the same vicinity, will hear of each think we might call it at times, that he story of our colleague, Senator BOB other. And irony of ironies, I actually shares with all of us to help keep a per- KERREY, and the contribution that he was on a couple of missions in the very spective in our lives. made as a member of the U.S. Navy area, Nha Trang Bay, just about 2 He also forged a new patriotism out and of course the injury which he sus- months or so prior to the event which of that experience. Clearly, he went as tained in his heroic effort on behalf of led to BOB winning the Medal of Honor. a patriot because he chose to go. But our country. Senator JACK REED of BOB and I also knew of each other he came back and struggled even with afterwards when he came back and he Rhode Island, a graduate of West the definition of ‘‘patriotism’’ and of Point, talked about his humbling expe- was in the hospital and I had shortly his concern and love for his country. rience of joining BOB KERREY for a thereafter returned. Our mail crossed, He had to ‘‘refind’’ that, if you will, in and we have had about 30 years of our race. He is a jogger—a runner, if you those difficult times. will. I have joined him for a race from mail crossing. On one occasion I think I think it is fair to say that he has time to time. You can tell by my phy- my newsletter from Massachusetts come back more tested, more capable, sique I am not a runner. However, it is went to Nebraska, and people didn’t and more understanding of what it always a humbling experience as BOB know what that was all about. And on means to care about the country and to KERREY comes motoring past you with other occasions we have joked about give something to the country and to a big smile and you realize that this the fact that he probably received a ask other people to join you in doing man just can’t be stopped. And I am couple of real ‘‘Dear John’’ letters that. So he has the ability here to ask glad he can’t be stopped because he has while he was in the hospital and quick- all of us in the Senate or our fellow made not only a great contribution to ly discerned they were not meant for citizens in the country to join with us his State and his country but he con- him but for me. And I often had these in acts of giving in ways that others tinues to do so. images of what he might have been cannot. reading of my mail. But at any rate, I also say that it is not just for that A few years back, Senator BOB that began sort of a strange odyssey for that we celebrate his presence here, KERREY got the notion that he wanted both of us long before our paths crossed but he has been a steady friend and to run for President of the United in the U.S. Senate. ally in the effort of a number of us here States. There were some Members of I still get letters about the wheat in the U.S. Senate to keep faith with the House of Representatives who prices in Omaha and he still gets let- the lingering questions over those who stood by him and endorsed his can- ters about the cod fishing in Massachu- may have been left behind in the didacy—the few, the proud, the Mem- setts, and we somehow manage to work course of the war, and also to try to bers of Congress—who believed that these things out. But, Mr. President, it really make peace with Vietnam itself, BOB KERREY would have been an excel- is no light matter to suggest that I and to help bring the Senate to a point lent President of the United States. I have always had an enormous special where we were able to lead the country believe that today. respect for BOB KERREY. I am honored, in normalizing relations and, indeed, I have come to know this man even as I think all of my colleagues are, to putting the war behind us. better as a Member of the U.S. Senate serve with him here in the U.S. Senate. It is a great pleasure for me to say while serving with him. I know that he It was 30 years ago this past Sunday how proud I am to serve with BOB has courage. He showed it not only in that a 25-year-old lieutenant junior KERREY, not just because of the quali- battle, but he shows it every day on the grade BOB KERREY was, as we know, se- ties that were celebrated in the Na- floor of the Senate. I cannot imagine March 16, 1999 CONGRESSIONAL RECORD — SENATE S2703 what he has endured in his life. I only but couldn’t write very well, or some- It was a difficult night for me. And stand in awe and respect for what he thing else happened to their award among other things, she said to me brings to this institution because of along the way. So I am aware that that I was lucky to be alive and that I that contribution. Very few people in there are many people who have done would get through this, I would survive the history of the United States have heroic things that were not so recog- it, I would get through this valley of been awarded the Congressional Medal nized. pain that I was in at the moment. Well, of Honor. It is my great honor person- As a consequence of being introduced I remember not believing that. I be- ally to count one of those recipients as all the time and being given many op- lieved that I was not necessarily lucky a personal friend and colleague. portunities to think what it means to to be alive at all at that particular mo- I thank Senator EDWARDS and I sa- be a hero—and I again appreciate very ment of my suffering. lute my friend, BOB KERREY. I am much all this recognition—my heroes Today I recognize that she was abso- happy to stand as a cosponsor of this are those who sustained an effort. In lutely right, that I was lucky to experi- resolution. my case, it was the effort of a single ence suffering and know that you do Mr. EDWARDS. Thank you, Mr. night. Who knows; in the daytime, I not have to feel pain for pain to exist, President. may have performed differently. I may that it is out there as I speak, as we I will conclude the remarks, and if have, under different circumstances, hear these words. That suffering is uni- Senator KERREY has remarks to make, done things differently. versal is a lesson I was given in 1969, of course we would love to hear them. The heroes who are impressive to me and perhaps of all the lessons I was I have listened this morning to the are those who sustained the efforts, given, it was the most important of all. remarks from all of these distinguished whose bravery, whose courage, is called I was also given a gift in discovering Senators on this wonderful day honor- upon every single day. I think of my that the world is much bigger. It is not ing this extraordinary man. This is a mother; I think of my father. I think of just us white men from Lincoln, NE, man who loves others more than he millions of men and women who, as who grew up in a middle class home loves himself, a man who loves his mothers and fathers, sustained the and had a great deal of abundance as a country more than he loves himself. bravery and the courage needed to be a result of two rather extraordinary and I have to say, Senator KERREY, I good parent. I think of all those volun- loving people. It is a world composed of think your mother had it right when teers who came out not just to my hos- many colors, many creeds. It is a world you were lying on that hospital bed in pital—I watched Bob Dole on television composed of over 6 billion people, not Philadelphia after your operation that in 1988 in Russell, KS, break down at just the 270 million who live in the removed part of your leg when she said, the start of his Presidential campaign United States of America. ‘‘There’s an awful lot left.’’ There is an as he remembered what it was like to I have been taught and had the awful lot left, and we Americans are come home to Russell, KS, and be wel- chance to learn that you do not really the beneficiaries of what is left. comed into the arms of people who heal until you have the willingness, Thank you very much, Mr. President. took up a collection so he could travel courage and bravery to forgive people I yield to the Senator from Nebraska. to see his father. who you believe have done you wrong. The PRESIDING OFFICER. The Sen- The heroes in my life are the people I would not be back in public service, I ator from Nebraska. in Lincoln, NE, who welcomed me do not think, were it not for Walter Mr. KERREY. I want to thank Sen- home and who gave me far more than I Capps, who invited me to come to ator EDWARDS, Senator HAGEL, Senator thought I had a right to deserve. One of Santa Barbara to teach a class on Viet- DASCHLE, Senator BOXER, Senator DUR- the people in my life who has been very nam, where in studying the history of BIN, and all the others who have spo- important—I have never met him, but I that war I was able to forgive a man I ken. I appreciate very much and am read his work; indeed, he was killed hated—Richard Nixon. I doubt that very moved by these words and more shortly before I went to Vietnam. Al- former President Nixon felt any relief moved by the friendships in this body. though he was a great opponent of the in that moment when I forgave him, Thirty years ago is a long time. I am war, he came back in an airplane, understanding as I did then how easy it reminded of a slogan at the beginning along with other men who had been is to make mistakes when you are of any exercise to remember what hap- killed in that war—is a man by the given power. But I was the one who was pened, especially in combat 30 years name of Thomas Merton. Merton healed. I was the one who was liber- ago, and I will give you the watered- wrote, ated. I was the one who was able then down version of that slogan. The only Human nature has a way of making very to live a different life as a consequence difference between a fairy tale and a specious arguments to suit its own cowardice of my having the courage in that mo- war story is, the fairy tale always be- and its lack of generosity. ment to forgive. gins, ‘‘Once upon a time,’’ and the war I find myself falling victim to that I have discovered, through my own story always starts off, ‘‘No kidding, understandable human part of myself. I healing, that the most powerful thing this is true; I was there.’’ do sometimes exhibit cowardice. I do that we can give, the most valuable We don’t necessarily have perfect sometimes exhibit a lack of generosity. thing we can give another human being memories when it comes to bringing All of us, I suspect, have those mo- costs us nothing. It is merely kindness. back that moment and I, for one, have ments. It is merely laying a hand on someone always been very uncomfortable—and It is the ever-present need to sustain and saying to them, as that nurse said BOB BENNETT earlier said he wanted to the bravery to do the right thing that to me, that it will be all right; you are make me uncomfortable by saying impresses me the most. Those whose not alone here tonight; you are not some nice things about me. I have been brave acts are done, knowing there will alone with this suffering that you are uncomfortable for almost 30 years to be be no recognition, knowing there will feeling. introduced as a hero, and it made me be no moment when they will be recog- I also learned through service in the somewhat uncomfortable in part be- nized and stand before their colleagues, Senate. Oddly enough, at a time when cause I did do something that was sim- trembling and wondering what to say people think that the only reason that ply my duty; I didn’t feel that evening in response—it is those brave acts that we are given to vote a certain way is that I had done anything necessarily are done anonymously that are most because there are financial contribu- out of the ordinary. important of all. tions hanging in the balance, I have Indeed, JOHN MCCAIN’s father up- I have received a gift in many ways learned in this Senate that a nation graded my award from a Navy Cross to as a consequence not just of the award can be heroic. I discovered on the Ap- a Medal of Honor. Otherwise, this event and considering what heroes are but propriations Committee, of all things, might not be happening at all. There also as a consequence of my injury. I that that hospital in Philadelphia was are many men, Senator INOUYE will tell don’t know if Senator INOUYE feels the not there by accident. It was there be- you, who received nothing, whose ac- same way. cause a law passed this Congress—a law tions weren’t seen or were seen by I remember a night almost 30 years that was signed by Richard Nixon—au- somebody who didn’t like them, or ago to the day, in 1969, when a nurse thorizing that hospital to be operated, were seen by somebody who liked them came into my room very late at night. authorizing those nurses, those doctors S2704 CONGRESSIONAL RECORD — SENATE March 16, 1999 and all the rest of those wonderful peo- Sailors, Airmen, Marines, and Coast his willingness to act and speak ac- ple to be there to save my life. A law Guardsmen for heroic action in battles cording to his conscience. made that possible. I made no financial from the Civil War to Somalia. Our col- BOB KERREY has earned our utmost contributions in 1969. There wasn’t a league BOB KERREY is one of these gratitude and our lasting admiration. politician in America who I liked. Yet, brave American heroes. Mr. COCHRAN. Mr. President, I am this great Nation allowed its Congress Senator KERREY was awarded the very pleased to see the time the Senate to pass a law that gave me a chance to Medal of Honor for risking his life is taking this morning to pay tribute put my life back together. above and beyond the call of duty dur- to Senator BOB KERREY, and to recog- In 1990 and 1991, as a Senator, I went ing the Vietnam War. The leadership nize his contribution during our war in back to Southeast Asia, with the Bush and courage demonstrated by this Vietnam, and the recognition that he administration, trying to find a way to young, 25-year-old SEAL team leader received as a Medal of Honor winner as bring peace to Cambodia. We succeeded during intense and ferocious combat a result of his sacrifice and his heroic in 1992. But in going back, especially to are nothing short of extraordinary. actions during that conflict. I am cer- Vietnam in 1991, and especially in the These events occurred thirty years ago tainly not, in any way, sad that we South, I discovered again something this month, but the same courage and didn’t spend the time that we had ear- rather remarkable about the people of leadership can be seen everyday in his lier set aside for the Missile Defense this great country—that though I still work in the United States Senate. Act. I am very glad the Senate acted as believed the war was a tragic mistake I welcome the opportunity to com- it did to make this very important and that we made lots of errors along mend Senator BOB KERREY on this aus- statement about his service and his the way, the people of South Vietnam picious anniversary, and I commend contribution during that period in our repeatedly said to me, ‘‘We know you him as well for his outstanding service country’s history. He has certainly came here to fight and put your life on to the Senate and to the people of Ne- earned the respect not only of the Sen- the line for strangers, and that you braska and the nation. He’s a hero for ate for his service but of the American were willing to die for us will not be our time and for all times, and I’m people as well. I am glad to join with forgotten.’’ proud to serve with him in the Senate. those who pay tribute to him this I sat, along with my colleagues, and Mr. FEINGOLD. Mr. President, I morning. listened to Kim Dae-jung of South come to the floor today to honor and to Mr. BYRD. Mr. President, I am hon- Korea say the very same thing in even thank a true American hero. A man ored today to join my colleagues in sa- more personal ways. Our Nation can be who risked his life to defend this na- luting one of our own, Senator BOB heroic by recognizing that we might tion and continues to serve this nation. KERREY of Nebraska, for the courage write laws that give all of us a chance I am proud to say that J. ROBERT and heroism that he displayed as a U.S. at the American dream, and by rec- KERREY is a friend and colleague. Navy SEAL 30 years ago, and for the ognizing that as a great nation there Mr. President, thirty years ago this courage and determination that he will come a time when we must risk it Sunday, on March 14, 1969, BOB KERREY continues to inspire today. all, not for the freedom of people that led a team of Navy SEALs onto an is- The United States Senate is no we know but for the freedom of strang- land in the Bay of Nha Trang. In the stranger to heroes. Through the cen- ers. course of battle, an enemy grenade ex- turies, this Chamber has embraced the I did, as JOHN KERRY said earlier, ploded at his feet. He wound up losing souls of some of the greatest heroes of come back to the United States of his right leg below the knee, but BOB our nation. It still does. We are privi- America an angry and bitter person. I directed fire into the enemy camp, re- leged to work among heroes every day, did not have my patriotism intact. I sulting in its capture. His extraor- individuals like BOB KERREY, STROM had gone to the war patriotic because dinary valor cost him part of his leg, THURMOND, DANNY INOUYE, JOHN it was a duty, and I stand here today but it earned him the respect of every MCCAIN, and MAX CLELAND. before you honored by your words, American. I hope we never take the courage of moved by your sentiment, and to tell Mr. President, I am proud to join these individuals for granted, or lose you that I love the United States of Senators DASCHLE, EDWARDS, and sight of the great legacy of their prede- America because it not only has given HAGEL on this resolution honoring the cessors. Certainly, among the history me more than I have given it, but time only Medal of Honor winner in the cur- of heroism in the Senate, BOB KERREY’s and time again it has stood for the rent Congress. The Medal of Honor is story is one of inspiration. Horribly in- right thing, not just at home but the highest military award for valor jured by a grenade, he nevertheless car- abroad. that can be conferred on a member of ried on an attack against the Viet I appreciate just the chance to be the American armed forces. It is Cong and led his men to victory. His able to come to this floor and offer my awarded to a soldier, sailor, airman, or bravery won for him the highest honor views on what our laws ought to be. I marine who ‘‘. . . in action involving that the United States government can appreciate very much more than I can actual conflict with the enemy, bestow upon an individual for valor: say to all of you—Senator EDWARDS, distinguish[es] himself conspicuously the Congressional Medal of Honor. But Senator DASCHLE, Senator HAGEL, and by gallantry and intrepidity at the risk his act of courage also took a great the others who have spoken—your sen- of his life, above and beyond the call of toll. It cost him his leg, challenged his timent, your words and, most of all, duty.’’ spirit, and threatened to taint his life your friendship. It is that spirit we honor today, with bitterness. Mr. President, I yield the floor. which has time and again moved ordi- BOB KERREY overcame those crises. The PRESIDING OFFICER. The Sen- nary Americans to rise to every threat He turned adversity to success. He re- ator from Hawaii. to our nation and stand against great covered from the grievous wounds to Mr. INOUYE. Mr. President, the odds. It is the spirit that sustained the his body and soul. He became a success- courage and bravery and love of coun- Revolution at Valley Forge, that car- ful businessman, went on to become try that my friend, BOB KERREY, dem- ried the day at Gettysburg and Belleau governor of the state of Nebraska, and onstrated 30 years ago in Vietnam is Wood, and that made the difference at in 1988 was elected to the United States obviously still alive. For that, I salute the Battle of the Bulge and Iwo Jima. Senate. you, sir. Thank you. This is the spirit that crashed ashore As I said before, Mr. President, the Mr. KENNEDY. Mr. President, it is at Inchon, sustained our resolve at Khe United States Senate is no stranger to an honor to join in this tribute to our Sanh and swept through the deserts heroes. But the Congressional Medal of friend and colleague, Senator BOB along the Persian Gulf. Honor is something special. Only six KERREY. And BOB KERREY has showed courage Senators in our history have been The Nation’s highest award for brav- in public life. Whether it’s Social Secu- awarded that honor. All of them, with ery in combat is the Congressional rity, Medicare, the budget or protec- the exception of BOB KERREY, fought in Medal of Honor. Since its creation in tion of the First Amendment, BOB the Civil War. 1861, 3,400 Medals of Honor have been KERREY is not afraid to take the un- As I listen today to the account of awarded to America’s bravest Soldiers, popular position. Above all, I admire BOB KERREY’s heroism, hear of the March 16, 1999 CONGRESSIONAL RECORD — SENATE S2705 bravery that he displayed at the youth- is a champion of American agriculture, nual authorization and appropriation proc- ful age of 25, I am reminded of another working tirelessly to support and pro- ess. account of bravery, this one told by the tect family farmers facing economic AMENDMENT NO. 69 poet William E. Henley who, as a hardship. He has also dedicated himself The PRESIDING OFFICER. There young man, lost his leg as a result of to improving health care services in will now be 1 hour of debate on the tuberculosis of the bone. He wrote the United States. pending Cochran amendment No. 69, to these words from his hospital bed. Mr. President, we honor Senator BOB be divided equally between the chair- Out of the night that covers me, KERREY today because thirty years ago man and ranking member, or their des- Black as the Pit from pole to pole, he exhibited extraordinary heroism ignees. I thank whatever gods may be under the most difficult of cir- Mr. COCHRAN addressed the Chair. For my unconquerable soul. cumstances. Senator KERREY’s duty The PRESIDING OFFICER. The Sen- In the fell clutch of circumstance and sacrifice on that day and his im- ator from Mississippi is recognized. I have not winced nor cried aloud. portant contributions since continue to Mr. COCHRAN. Mr. President, yes- Under the bludgeonings of chance earn him the respect of the people of terday, we began debate of the Na- My head is bloody, but unbowed. Nebraska and the United States. I am tional Missile Defense Act of 1999. We Beyond this place of wrath and tears delighted to join my Senate colleagues have reached a point where we will Looms but the Horror of the shade, in honoring Senator BOB KERREY. soon be voting on an amendment that And yet the menace of the years The PRESIDING OFFICER (Mr. seeks to more clearly define the con- Finds, and shall find, me unafraid. CRAPO). Without objection, the resolu- text for this legislation and the pur- It matters not how strait the gate, tion is agreed to and the preamble is pose we see that it will serve. This leg- How charged with punishments the scroll, agreed to. islation is a statement of a new policy I am the master of my fate: The resolution (S. Res. 61) was agreed for our Government with respect to the I am the captain of my soul. to. need to develop and deploy a national The year was 1875. The poem was The preamble was agreed to. missile defense system as soon as tech- ‘‘Invictus.’’ The words belong to Wil- The resolution, with its preamble, is nology permits. liam Henley, but the spirit behind as follows It is very clear from recent develop- them belongs just as surely to Senator S. RES. 61 ments that we identified yesterday BOB KERREY. I salute him. Whereas Honorable J. Robert ‘‘Bob’’ that we are confronted with a very real Mr. LEVIN. Mr. President, I rise to Kerrey has served the United States with threat to our national security inter- join my colleagues in honoring some- distinction and honor for all of his adult life; ests from ballistic missile technology, one who has already done more to Whereas 30 years ago this past Sunday, on the proliferation of this technology, serve his country than most people March 14, 1969, Bob Kerrey lead a successful and the capacity of other countries to could accomplish in several lifetimes, sea-air-land (SEAL) team mission in Viet- use it to deliver weapons of mass de- BOB KERREY. nam during which he was wounded; struction against the territory of the Many of my colleagues today have Whereas he was awarded the Medal of United States. described the circumstances thirty Honor for his actions and leadership during Americans today are completely vul- years ago when a twenty-five year old that mission; Whereas according to his Medal of Honor nerable to a ballistic missile attack. Lieutenant KERREY led an elite Navy citation, ‘‘Lt. (j.g.) Kerrey’s courageous and We need to see that that is changed. Sea, Air, Land (SEAL) team to success- inspiring leadership, valiant fighting spirit, We need to see that the technology fully apprehend a group of North Viet- and tenacious devotion to duty in the face of that we have available to us is used to namese soldiers. I stand in awe as they almost overwhelming opposition sustain and develop and deploy a defense against have recounted the way in which Lt. enhance the finest traditions of the U.S. ballistic missile attack to protect KERREY continued to direct the team Naval Service’’; American security interests and Amer- despite his serious injury. For his ex- Whereas during his 10 years of service in ican citizens. traordinary valor, Lt. KERREY was the United States Senate, Bob Kerrey has During the discussion yesterday, rightfully bestowed the nation’s high- demonstrated the same qualities of leader- there was some suggestion that admin- est award for military service, the ship and spirit and has devoted his consider- able talents to working on social security, istration officials and military officials Medal of Honor in 1970, by President Internal Revenue Service, and entitlement in our country were opposed to this Richard Nixon. reform, improving health care services, guid- legislation. I must say that I heard These actions alone are worthy of re- ing the intelligence community and support- some of these officials testify at hear- flection by this body thirty years after ing the agricultural community: Now, there- ings, and I disagree with that conclu- the event. However, this was only one fore, be it sion. I think there is ample evidence in episode in a lifetime of extraordinary Resolved, That the United States Senate the record of our Defense Appropria- service to his country by Senator BOB commends the Honorable J. Robert Kerrey tions Subcommittee hearings, and in for the service that he rendered to the KERREY. Luckily for our nation, he did United States, and expresses its appreciation other statements that officials have not allow the unfortunate events of and respect for his commitment to and ex- made, both civilian and military offi- that day thirty years ago to stop him ample of bipartisanship and collegial inter- cials, to the media about their views on from reaching the lofty goals that he action in the legislative process. this subject, that we can draw a com- had always set for himself. After a try- SEC. 2. The Secretary of the Senate shall pletely different conclusion from the ing rehabilitation in Philadelphia, transmit a copy of this resolution to the conclusion that was expressed yester- KERREY returned to Nebraska and Honorable J. Robert Kerrey. day by some of those who participated began his life anew, becoming a suc- f in this debate. cessful businessman and eventually NATIONAL MISSILE DEFENSE ACT Let me give you one example. The winning a race for the state’s Gover- OF 1999 other day, on March 3, I was in a meet- norship. In 1988, he won election to the ing of our Defense Appropriations Sub- The PRESIDING OFFICER. Under Senate after mounting a spirited cam- committee. We were having a hearing the previous order, the Senate will now paign. reviewing the request for funds for the resume consideration of S. 257, which During his time in the Senate, BOB Department of Defense for the next fis- the clerk will report. KERREY has continued to exhibit exem- cal year. The Deputy Secretary of De- The legislative clerk read as follows: plary bravery and dedication. He has fense, Dr. Hamre, was a witness, and we A bill (S. 257) to state the policy of the taken on some of the most important United States regarding the deployment of a started a discussion about whether or and difficult issues this body faces: So- missile defense system capable of defending not the administration interpreted this cial Security reform, IRS reform and the territory of the United States against legislation that is pending now in the repeated farm crises. Senator KERREY limited ballistic missile attack. Senate to mean that the Department of focused on the issue of Social Security The Senate resumed consideration of Defense should disregard measures re- early in his career, and his many ef- the bill. lating to the operational effectiveness forts have greatly enhanced the pros- Pending: of developmental testing in determin- pects for reform of this important and Cochran Amendment No. 69, to clarify that ing whether the national missile de- far reaching program. Senator KERREY the deployment funding is subject to the an- fense system is technologically ready S2706 CONGRESSIONAL RECORD — SENATE March 16, 1999 to provide an effective defense against with a capacity to reach the territory As the author of this measure has limited ballistic missile attack. of the United States. pointed out very clearly, we would I asked Dr. Hamre, the Deputy Sec- As Secretary Cohen said when he have to go through the regular process retary of Defense, what his interpreta- came to talk to Senators not too long of authorization. This Senate and this tion of that legislation was, and if he ago, ‘‘We have checked the threat Congress will have an opportunity to read the language in a way that sug- box.’’ ‘‘We have checked the threat have a full-scale debate, to debate gested we would be deploying an oper- box.’’ The threat is clear. It is present. whether we have the funds, whether ationally ineffective system or would The threat exists. the threat is real, whether there is a require the administration to do so. That is why the administration’s pol- necessity for this system. Then it will Here is what the Deputy Secretary of icy of waiting to see whether a threat have to go through the appropriations Defense said. I am quoting. develops to then decide whether we de- process. At each level, the President of No, sir . . . I read the language that it says ploy a system that we have developed the United States will have an oppor- that you would still expect us to be good pro- is an outdated policy and needs to be tunity of either concurring or vetoing gram managers. You would still expect us to replaced with a current policy that our efforts. We are not in any way do testing, disciplined rigorous testing. Not matches the facts and the realities of short-circuiting the process that has slowing things up just to test for test’s sake our situation. been laid down by our Founding Fa- but to do disciplined testing and know that That is why this legislation is need- thers. We are following the process. it really would be effective and that it really ed, and that is why this amendment is But we are, in essence, telling our Na- would work. important, because it restates that the tion: Wake up. There is a threat, and it So it is clear from that response to policy will be subject to the annual re- is about time we look at it seriously. my question that in the mind of the view of the authorization committees, I am proud to be a cosponsor, not Deputy Secretary of Defense this bill of the appropriations committees, as only of the amendment but of the bill does not require deployment of a mis- every defense acquisition system is itself. It is about time somebody took sile defense system that is operation- under current practices. That is what the leadership to do what Senator ally ineffective. On the contrary, he this pending amendment suggests— COCHRAN has been doing. So I hope my understands clearly, as do the cospon- that we will see the jurisdictional re- colleagues will reconsider their opposi- sors of this legislation, that we would sponsibilities for authorizing a deploy- tion, look at it very objectively, and I put in place a policy and a practice ment, and funding the deployment will am certain they will concur with us. that is common and ordinary in the ac- be constrained by budget consider- For those who have been criticizing quisition process in our Department of ations, by the realities of the threat as that this is going to be a very expen- Defense. it then exists on the regular annual sive bill, there is not a single dollar in Finally, to those who suggest that a processes that this Congress follows this measure—not a single dollar. That deployment decision should wait yet each year. will have to be determined at a later another evaluation of the threat, which The administration will have an op- time if the Congress so decides. was one of the four additional criteria portunity to sign those bills, or veto I hope my colleagues on my side will outlined yesterday by the distin- them. So we are not changing the poli- join us when the final vote is taken to guished Senator from Michigan, I cies, or practices, or rules, or the laws support this measure. think a quote attributed to General that govern the appropriations and the The PRESIDING OFFICER. The Sen- Lyles, who is the Director of the Ballis- authorization processes of Congress. ator from Mississippi. tic Missile Organization, might be That is what this amendment clearly Mr. COCHRAN. Mr. President, I know helpful. He was asked again at a Janu- suggests. that under the order we are going to ary press conference whether another I am hopeful that with this further recess at 12:30, and then the order pro- evaluation of the threat would be nec- information that is available to the vides for 1 hour of debate on this essary when the administration gave Senate as we proceed to wind up debate amendment and then a vote at 2:15. the go-ahead for production of the na- on this amendment Senators will ask I am going to recommend—I do not whatever questions they have, and we tional missile defense system. This is know what the pleasure of the leader- will be glad to try to respond to them. what he said. I quote: ship will be—that we go ahead and We appreciate having the cosponsor- The key decision will be on the techno- have that vote and yield back the time logical readiness. My statement about look- ship for this amendment of the distin- on the amendment. That is going to be ing at the threat, that’s something we do for guished Senator from Hawaii, Senator my recommendation to our leader on all programs all the time. So yes, we will INOUYE, who is the senior member of this side of the aisle. I don’t know that again look at the threat. But as the Sec- the Defense Appropriations Sub- we left anything out in our debate yes- retary stated, we are affirming today that committee, Senator WARNER, who is terday. We had time from 3 o’clock the threat is real and growing, so that’s not the chairman of the Armed Services until 6:30 yesterday evening when we an issue. But we will always look at the Committee, and Senator LIEBERMAN, threat to see has it changed, is it coming debated this issue and all of the issues who is also active in the review and as- that were involved. But I am happy to from a different source, etc.? That’s part of sistance on this issue. anything we do for any program. abide by whatever decision the leader- Mr. INOUYE addressed the Chair. ship makes on that. I am just suggest- So there is really no question in the The PRESIDING OFFICER. The Sen- ing, for my part I will be happy to yield minds of the military managers and ator from Hawaii. back our time on the amendment so we the civilian leadership at the Depart- Mr. INOUYE. Mr. President, I com- can vote at 2:15 when we resume our ment of Defense about the threat. In mend and congratulate my colleague session after lunch. General Lyles’ view, or in the view of from Mississippi for his leadership in I suggest the absence of a quorum. Dr. Hamre, and as stated, as Senators this area. The PRESIDING OFFICER. The Most respectfully and candidly, I know, by the Secretary of Defense, our clerk will call the roll. former colleague, former Senator must say that I have been a bit sur- The legislative clerk proceeded to Cohen, it is routine and a matter of prised and saddened by the attacks call the roll. course that there will be a continued made upon this measure. This bill, in Mr. CONRAD. Mr. President, I ask evaluation and a monitoring of the my mind, is a wake-up call. It is telling unanimous consent that the order for threat. But the question as to whether all of us that there is a threat. Anyone the quorum call be rescinded. the threat of ballistic missile attack who studies North Korea, anyone who The PRESIDING OFFICER. Without exists now against the United States looks at the Soviet Union, anyone who objection, it is so ordered. has been more clearly demonstrated by has taken time to study the situation Mr. CONRAD. Mr. President, I ask the actions of North Korea than any in Iraq and Iran, would have to con- unanimous consent that time for this other thing anybody can say. The evi- clude that there is a threat. This meas- introduction be allocated against the dence is hard and clear and obvious. ure does not deploy any ballistic mis- time on this amendment but appear as There is a capability now in North sile defense system. It just tells us it is in morning business. Korea to launch a missile—multiple about time we begin looking to the The PRESIDING OFFICER. Without stage—with a solid fuel, third stage, possibility of deploying a system. objection, it is so ordered. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2707 The Senator from North Dakota is Thurmond Voinovich Wellstone from South Carolina, for the National recognized. Torricelli Warner Wyden Missile Defense Act. It is, in my opin- Mr. CONRAD. I thank the Chair. NOT VOTING—1 ion, long overdue and will correct a se- (The remarks of Mr. CONRAD and Mr. Feinstein rious deficiency in our defense policy, DORGAN pertaining to the introduction The amendment (No. 69) was agreed one that leaves us utterly defenseless of S. 623 are located in today’s RECORD to. against a threat that is real today and under ‘‘Statements on Introduced Bills Mr. COCHRAN. Mr. President, I move promises to get worse tomorrow. and Joint Resolutions.’’) to reconsider the vote. Last week, Thursday, in the Wall f Mr. LEVIN. I move to lay that mo- Street Journal, this headline greeted tion on the table. us: RECESS The motion to lay on the table was China Buys . . . Stolen information about the U.S.’s most The PRESIDING OFFICER. Under agreed to. Mr. THURMOND addressed the Chair. advanced miniature W–88 nuclear warhead the previous order, the hour of 12:30 from Los Alamos helped the Chinese close a having arrived, the Senate will now The PRESIDING OFFICER. The Sen- ator from South Carolina is recognized. generation gap in the development of its nu- stand in recess until the hour of 2:15 clear force. Mr. THURMOND. Mr. President, I p.m. rise to add my support to S. 257, The This, of course, is a very abbreviated Thereupon, the Senate, at 12:40 p.m., National Missile Defense Act of 1999. account of what the New York Times recessed until 2:15 p.m.; whereupon, the Any questions on whether or not the expanded on in great detail and great Senate reassembled when called to United States faces a missile threat length. I think it describes for us not order by the Presiding Officer (Mr. were answered by the Director of the only a serious breach in our national INHOFE). Central Intelligence Agency, George security but a quantum leap in the f Tenet, and the Director of the Defense ability of the Chinese Government to Intelligence Agency, General Hughes, not only threaten the security of their NATIONAL MISSILE DEFENSE ACT in testimony before the Armed Serv- neighbors in Asia but ultimately and OF 1999 ices Committee. In his opening state- eventually to threaten the security of The Senate continued with the con- ment Director Tenet described the American cities; thus, the importance sideration of the bill. threat of a new North Korean missile of a National Missile Defense Act. Mr. President, the Clinton adminis- VOTE ON AMENDMENT NO. 69 in the following terms: tration is in its sunset, but the effects Mr. DOMENICI. Mr. President, I ask With a third stage like the one dem- of its failed, flawed China policy are for the yeas and nays on the pending onstrated last August on the Taepo Dong-1, clearly on the horizon. We are faced amendment. this missile would be able to deliver large today with a very disturbing situation. The PRESIDING OFFICER. Is there a payloads to the rest of the U.S. At the same time that the administra- sufficient second? General Hughes stated: tion is fostering what it calls ‘‘con- There appears to be a sufficient sec- The number of Chinese strategic missiles structive engagement’’ with the Peo- ond. capable of hitting the United States will in- ple’s Republic of China, the Govern- The yeas and nays were ordered. crease significantly during the next two dec- ades. ment of China is increasingly posing a The PRESIDING OFFICER. The threat to the United States and its in- question is on agreeing to the amend- This testimony coupled with the terests. This policy is nothing if not ment. The yeas and nays have been or- findings of the Rumsfeld Commission contradictory and inconsistent. It is no dered. The clerk will call the roll. make an overwhelming case for a Na- less than a threat to American secu- The legislative clerk called the roll. tional Missile Defense System. We rity. Mr. REID. I announce that the Sen- must not be dissuaded by the impact of China has made significant advances ator from California (Mrs. FEINSTEIN) the National Missile Defense System in its nuclear weapons program in re- is absent because of illness. on the ABM Treaty. The evidence of cent years. By achieving the miniatur- The PRESIDING OFFICER. Are there the missile threat to the United States ization of its bombs, the Chinese mili- any other Senators in the Chamber de- is too overwhelming. tary can now attach multiple nuclear siring to vote? The bill before us is only a first step warheads to a single missile and hit The result was announced—yeas 99, toward the deployment of a National several targets. China’s technical ad- nays 0, as follows: Missile Defense System. It provides de- ployment flexibility to the Department vance means it can now deploy a mod- [Rollcall Vote No. 49 Leg.] of Defense. It states that it is the pol- ern nuclear force and pose an even YEAS—99 icy of the United States to deploy as greater threat to Taiwan, Japan and Abraham Edwards Lincoln soon as technologically possible an ef- South Korea, not to mention the Akaka Enzi Lott fective National Missile Defense sys- United States. The sad fact is that this Allard Feingold Lugar Ashcroft Fitzgerald Mack tem. It does not mandate a specific technical advance was made possible Baucus Frist McCain time nor a specific type of a system. by sensitive W–88 design information Bayh Gorton McConnell Mr. President, I want to express my stolen from Los Alamos National Lab- Bennett Graham Mikulski appreciation to Senator COCHRAN for oratory, a facility that we have discov- Biden Gramm Moynihan Bingaman Grams ered has very lax security. Murkowski introducing this legislation and for his Bond Grassley Murray passionate and articulate expression of The details that I am going to re- Boxer Gregg count in the next few minutes are Breaux Hagel Nickles support for a National Missile Defense Brownback Harkin Reed System. Our citizens owe him a debt of those that have all been published and Bryan Hatch Reid gratitude for his persistence in pursuit have been available to the public in Robb Bunning Helms of a missile defense program to protect news accounts in recent days. Burns Hollings Roberts Byrd Hutchinson Rockefeller them and the Nation. The W–88 is the smallest and most Campbell Hutchison Roth Mr. President, there has been enough advanced warhead of the U.S. arsenal. Chafee Inhofe Santorum discussion on this issue, it is time for It is typically attached to the Trident Cleland Inouye Sarbanes the Nation and this Congress to act. I II submarine-launched ballistic mis- Cochran Jeffords Schumer Collins Johnson Sessions urge the Senate to express its support sile. With smaller warheads, the Chi- Conrad Kennedy Shelby for the security of our Nation by over- nese military will be able to deploy Coverdell Kerrey Smith (NH) whelmingly approving S. 257, The Na- intercontinental ballistic missiles with Craig Kerry Smith (OR) tional Missile Defense Act of 1999. multiple warheads. Crapo Kohl Snowe Daschle The PRESIDING OFFICER. The Sen- In the last 2 days, I have attended Kyl Specter DeWine Landrieu Stevens ator from Arkansas is recognized. two briefings with the Secretary of En- Dodd Lautenberg Thomas Mr. HUTCHINSON. Mr. President, I ergy. To me, the accounts that we Domenici Leahy Dorgan Levin Thompson rise to express my strong support, heard were chilling and alarming. The Durbin Lieberman along with the distinguished Senator secret information on the W–88 was S2708 CONGRESSIONAL RECORD — SENATE March 16, 1999 probably stolen in the mid-1980s. This dered Trulock to withhold information icy that to have disclosed what was active espionage went undetected until from Congress. happening in the security realm would April of 1995, when nuclear weapons ex- That is an allegation, and it is an al- have interfered with the pursuit of that perts at Los Alamos studying Chinese legation that is a serious allegation. policy goal by the administration. So underground tests detected similarities And it is one that needs to be inves- it loosened export control laws on to the W–88. The CIA found corroborat- tigated by this Congress. supercomputers and satellites at the ing information 2 months later. The She reportedly ordered him not to very time the investigation was going FBI and the Department of Energy’s brief the House Intelligence Committee on at Los Alamos. intelligence group, under Notra on the espionage matter, and not to de- At the same time that the Clinton Trulock, investigated the matter and liver written testimony to the House administration knew about Chinese ef- were able to narrow its list of suspects National Security Committee. It was forts to steal nuclear weapons tech- to five, including Wen Ho Lee, an em- only when Trulock testified before nology, President Clinton was seeking ployee of the Los Alamos National Congressman COX’ committee inves- reelection, receiving donations from Laboratory with access to sensitive tigating this whole matter that Chinese sources, and allowing White and classified information. Lee has Trulock was then able to fully inform House access to military intelligence since been dismissed but not arrested. Congress. If what Trulock claims is officials. The other four suspects remain em- true—that he was hindered, that obsta- At the same time that the Clinton ployed. cles were placed before him and he was administration knew about Chinese ef- DOE briefed CIA officials and then ordered not to testify, not to provide forts to steal nuclear weapons tech- Deputy National Security Adviser that vital information to Congress— nology, administration officials were Sandy Berger on the espionage in early then I think we have not just a secu- preparing for a visit by President Jiang 1996. The FBI subsequently opened a rity breach that resulted in stolen se- Zemin. limited investigation in mid-1996 and crets, but it involves, in effect, a re- At the same time that Congress was recommended improved security at fusal to give vital information to Con- investigating illegal campaign con- DOE labs in April of 1997. But DOE, gress so that the administration’s tributions with Chinese sources, the under Federico Pena, shelved Trulock’s China policy could move forward with- Clinton administration withheld vital counterintelligence program and ig- out criticism—significant criticism— information regarding security nored FBI recommendations, and al- from Congress. breaches at our National Laboratories though some of these accounts in the Only in the last several weeks was a from Congress and the American peo- press have been contested and all of the lie detector test administered to Wen ple. facts are not yet out, according to Ho Lee, the main suspect in this espio- How many briefs there were is yet in press accounts, they ignored FBI rec- nage. He has now been dismissed. Only dispute. Who was providing the infor- ommendations to reinstate background now will periodic polygraph examina- mation and who was not, if anyone, is checks. Instead, Chinese officials con- tions be required of certain employees. yet in dispute. The administration’s response to this tinued to visit DOE facilities without But it is troubling that there is evi- situation seems puzzling at best. But proper clearances. Meanwhile, Trulock, dence of an effort on the part of admin- then—if you put it in context of what aware of other possible spy operations istration officials to preclude those is going on with our relations with at DOE facilities, sought to inform who should have known, those who had China—it at least raises troubling Secretary Pena. It was 4 months before oversight responsibilities, those who questions. The administration was fos- he could get an appointment. had appropriations responsibilities, Finally, in July of 1997, DOE briefed tering its policy of constructive en- from knowing the full extent of the se- National Security Adviser Sandy gagement, engaging China by in part curity breaches at our National Lab- Berger on the situation and the possi- selling nuclear technology, super- oratories. bility of current espionage efforts, and computers, and satellites to China. Berger kept President Clinton in- To bring up this vital issue of na- President Clinton’s China policy, I formed. tional security spying, espionage steal- believe, has been a failure. And I be- What was the administration’s re- ing of secrets—to have brought that up lieve that these most recent revela- sponse? It was back in the 1980s when would have disturbed the flow of high- tions fit into the broader context of the we believe most of the theft on the W– tech trade to China. And so it simply failure of this administration’s policy 88 took place. When it became evident never was brought up. toward the People’s Republic of China. in the mid-1990s, what was the adminis- At the same time that the Clinton ‘‘Constructive engagement’’ has tration’s response? Unfortunately, the administration knew about Chinese ef- proven constructive, but it has been administration swept the matter under forts to steal nuclear weapons tech- constructive only for the Chinese mili- the red carpet they were preparing to nology, it certified that China was no tary. roll out for President Jiang Zemin of longer assisting other countries in The implications of this policy ex- China. their nuclear weapons program. tend beyond the United States. In East The National Counterintelligence It is amazing that when the adminis- Asia, our allies, including Japan, South Policy Board made recommendations tration knew that espionage was occur- Korea and Taiwan will face a new and for strengthening lab security in Sep- ring at our Laboratories, that secrets greater threat because of China’s nu- tember of 1997. It was 5 months before were being stolen, it went ahead and clear capabilities. It is ironic that the President Clinton signed a Presidential certified that China was no longer as- Chinese Government warns us not to decision directive in February 1998. The sisting other countries in their nuclear develop a theater missile defense sys- recommendations occurred in Septem- weapons program. tem while it aims more missiles at Tai- ber as to the changes that should be That certification lifted a 12-year ban wan and develops multiple nuclear war- made as to the strengthening of secu- on the sale of American nuclear tech- heads. The Chinese nuclear advance- rity requirements at our Laboratories. nology to China. ments will certainly inflame anxieties It was 5 months later when President Why would we want to assist China in India, which may lead to further Clinton finally signed a PDD February in nuclear technology at the very time proliferation in both India and Paki- of 1998 mandating a more vigorous we are discovering their intensive ef- stan. counterintelligence effort at DOE. It forts to infiltrate our Laboratories? So President Clinton has left us with took 9 more months to implement At the same time that the Clinton a ‘‘strategic partner,’’ as he terms it, those changes that were first rec- administration knew about Chinese ef- pointing 13 of its 19 long-range missiles ommended back in September of 1997, forts to steal militarily sensitive tech- at us—a strategic partner building new PDD in February of 1998, and then 9 nology, it loosened export control laws long-range missiles, the DF–31 and DF– more months before implementation on supercomputers and satellites. 41; a strategic partner well on its way occurs. Once again, it becomes not just a spy to developing multiple warhead mis- In addition, it is alleged that Acting case. It becomes a situation in which siles. These are the bitter fruits of a Energy Secretary Elizabeth Moler or- the administration was pursuing a pol- policy borne out of warped motives. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2709 There were some in the administra- an irresponsible actor in the world Did that system make us safer? Did tion who would like to dismiss this es- arena a major role by offering to China taking the taxpayers’ dollars and pionage case as a failure of the Reagan World Trade Organization accession. It building that ABM system improve na- administration. I agree. There should is my sincere desire, it is my sincere tional security in this country? The have been greater security measures hope, that the administration will not judgment was it was not worth the taken at that time. But this adminis- seek to bring China into the WTO, will money after all. Yet here we are, near- tration cannot blame its failure to up- not bend the rules, will not allow China ly a quarter of a century later, debat- hold American security interests on to enter as a developing nation as they ing a bill that would require the de- past administrations. National secu- desire, and that we will, in dealing ployment of a national missile defense rity is a bipartisan issue. But it cannot with the largest, most populous nation system, another ballistic missile de- blame its failure to adequately notify on the globe, take our rightful place fense system, as soon as techno- Congress on past administrations. This and we will regain our voice where, logically feasible. administration is responsible for a when it comes to the World Trade Or- It was technologically feasible 24 comprehensive policy failure in regard ganization, we will require that Con- years ago. It was a different tech- to China. The American people will be gress approve China’s membership in nology. The technology then was, if suffering the consequences long after the WTO before they are allowed to you see a Russian missile—or a Soviet the President has left office. enter. missile then—coming in to attack this Mr. President, it is a fact that, while These facts, all incontrovertible and country, you send up some antiballistic there are many facts yet in dispute, indisputable, reveal what I think is al- missile defenses, and they have nuclear and while there are many questions ready obvious. The administration warheads, and you blow off a nuclear that have gone unanswered, and it is must reexamine its China policy and warhead somewhere up there in the my sincere desire that the appropriate restore American security as its main heavens and it obliterates the incom- committees of the U.S. Senate will priority. It must take responsibility ing missiles. That was the technology begin immediate hearings and fulfill- for defending the American people, and then. It was technologically possible ment of oversight responsibilities— it must commit to a national missile then. while there are facts in dispute, and defense system. I applaud the efforts of Now the new technology is, we are while there are questions to be an- the distinguished Senator from Mis- not going to send a nuclear missile up swered, there are some facts that are sissippi, Mr. COCHRAN, for his leader- to wipe out some incoming nuclear ship and his perseverance and his de- indisputable. missile—or a missile with a nuclear It is an indisputable fact that the termination to bring this bill forward warhead, I should say. What we will do Chinese Government stole nuclear se- and to ensure its enactment. is, we will hit a speeding bullet with I yield the floor. another speeding bullet. If someone crets allowing it to build smaller and The PRESIDING OFFICER (Mr. more efficient warheads. puts a missile up with a nuclear war- CRAPO). The Senator from North Da- head, we send a missile up with our We can argue and we can debate as to kota. whether it was a 2-year loss of tech- Mr. DORGAN. Mr. President, I lis- charge and we hit it—a bullet hitting a nology or a decade, whether it was a tened with interest to the Senator bullet. Of course, all the tests now generation, or whether it was less than from Arkansas. I think there are far demonstrate that is very hard to do. that, but it is not disputable that more questions than answers on the There have been far more test failures China stole nuclear secrets allowing it issues he raised. I think the issues of than successes in this technology. But to build a smaller and more efficient national security dealing with China here we are saying, let us deploy a Na- nuclear capability. are serious. The alleged spying, as I un- tional Missile Defense System as soon It is indisputable that the Chinese derstand it, occurred in the mid-1980s; as technologically feasible. Government continues to aggressively the transfer of missile technology and It is technologically feasible for my seek to obtain technology from U.S. agreements for that transfer occurred 11-year-old son to drive my car. I companies allowing it to better target at the beginning of the 1980s. The Sen- wouldn’t suggest that someone who their ICBMs. That is indisputable. ator raises very important security meets him on the road would consider Whether legitimate means, whether questions and we need answers to those it very safe or appropriate for Brendon legal means, or whether serreptitious questions. I am sure in the coming to be driving my automobile, but it is means, it is indisputable that China days we will learn more about many of technologically feasible. today continues on an aggressive pat- these issues as we discuss them with So what does that mean, techno- tern of seeking to obtain technology the appropriate people who have been a logically feasible? What does it mean from the U.S. companies. part of this matter for, now, a decade with respect to missile defense? Will it It is an indisputable fact that the or a decade and a half. make us safer? Here is what we do Chinese Government is engaging in an But I came to the floor and have know. A national missile defense sys- expensive modernization of their weap- waited here to speak about the na- tem cannot protect us from a low-fly- ons system. tional missile defense proposal. That is ing cruise missile launched by a Third While there may be much debate, what is on the floor at the moment, na- World despot who can much more eas- that is a fact. That is beyond dispute. tional missile defense. Mr. President, ily access a cruise missile than an China today is expending vast amounts 24 years ago our country built an anti- intercontinental ballistic missile and of its budget in order to modernize ballistic missile system in my home put it on a barge somewhere off a coast their weapons systems. State. It is the only ABM, or anti- and lob in a nuclear-tipped cruise mis- Mr. President, while there is much in ballistic missile, system anywhere in sile. Will we, when we deploy this sys- dispute, it is a fact beyond dispute that the free world. That ABM—or what we tem, defend against that? No, not at the Chinese Government continues to would now call national missile de- all. That is not what this system is for. be a major nuclear proliferator in the fense—system, that ABM program, cost It is to defend against an ICBM. And world, giving North Korea the missile over $20 billion in today’s dollars. not just any ICBM—not a Russian capability even to hit American cities. On October 1, 1975, the antiballistic ICBM, for example, because any kind of It is a fact beyond dispute that the missile system was declared oper- robust launch of more than a handful Chinese Government continues to men- ational. On October 2, 1 day later, Con- of missiles cannot be defended with ace our allies in Asia with military gress voted to mothball it. We spent a this new technology, the kind of tech- threats. And it is a fact that the Chi- great deal of money. I encourage those nological catcher’s mitt that we send nese Government has again brutally who are interested in seeing what that up to catch an incoming missile. clamped down on democracy advocates money purchased to get on an airplane It is only a missile from a rogue na- within China and seeks to extinguish and fly over that sparsely populated tion. If a rogue nation acquires an free expression, whether religious or northeastern portion of North Dakota. intercontinental ballistic missile—un- political. You will see a concrete monument to likely perhaps, but let’s assume a In the face of all these facts, the ad- the ABM system. It was abandoned a rogue nation acquires an interconti- ministration is still determined to give day after it was declared operational. nental ballistic missile and uses that S2710 CONGRESSIONAL RECORD — SENATE March 16, 1999 with a nuclear warhead attached to its This is a wing strut from a bomber nels are now sealed. That is major top to threaten this country. What are that used to carry nuclear weapons progress. If the Russians ratify START the likely threats? Among the threats, that threatened this country. This II, which I think they are likely to do, the least likely would be a rogue na- bomber, as you can see, no longer flies. we will see further dramatic reductions tion using an intercontinental ballistic This wing strut is a result of a cut from in the number of bombers and missiles missile. More likely would be their ac- the wing of that bomber that rendered and warheads on both sides. cess to a cruise missile, to purchase a that bomber useless. How did that hap- That will happen not because we are cruise missile someplace. Of course pen? How does it happen that we are fighting but because we are cooperat- this system will not defend against able to cut the wings off Russian bomb- ing, not because there are tensions but that. More likely than that is, perhaps, ers, and we are able to destroy Russian because there is an arms control re- a rental truck filled with a nuclear ex- missile silos? gime we are following and because we plosive or perhaps a suitcase nuclear Last year I held in my hand on the are helping them destroy their weapons bomb planted in the trunk of an old floor a metal flange from a missile silo at the same time we are reducing our Yugo car parked at a New York dock— in the Ukraine that used to sit on the weapons. We want to deactivate over a far more likely threat by a rogue na- prairies there in the Ukraine with a 5,000 warheads, destroy 200 missile tion than access to an intercontinental nuclear warhead aimed at the United silos, 40,000 chemical weapons. Look at ballistic missile. Will this protect us States of America, and that piece of the success. Eliminate 500 metric tons against those threats? No. metal now doesn’t come from a missile of highly enriched uranium. Would we National missile defense shields us silo. I held it in my hand. The missile or should we do anything to jeopardize against one threat only—the accidental silo is gone. The missile is gone. The this progress? What might jeopardize launch of a ballistic missile from an warhead is gone. Where a missile once it? existing nuclear power or the future sat aimed at the United States, there We have a treaty with the Russians, possibility of an attack by a rogue na- now is planted a field of sunflowers, and the treaty is an ABM Treaty. The tion. But it is not just any accidental sunflowers rather than missiles. proposal by some is to say ignore the launch. It would be an accidental How did it happen that in the treaty; it doesn’t matter. These trea- launch of just one or two or a few mis- Ukraine an intercontinental ballistic ties are not very important. These siles, because any launch beyond that, missile site was dug up, the missile treaties START I, START II, ABM, of course, would be a launch that would gone, the warhead gone, and there are hopefully a START III, these treaties prevail over a limited national missile now sunflowers? How does it happen allow us to make this progress and re- defense system. that a Soviet bomber has its wings duce the nuclear threat and reduce the If we deploy a national missile de- sawed off? I tell you how it happens threat of nuclear war. fense system before it is ready—not —Nunn-Lugar. Senators DICK LUGAR Thirty-two thousand nuclear weap- just technologically possible, but test- and Sam Nunn offered a program here ons remain in the United States and ed and ready —then what are we get- in the U.S. Senate trailing the arms Russian arsenals today. Some of those ting for our money? What does the tax- control agreements we have had with are theater weapons; thousands and payer get for the requirement to deploy the old Soviet Union and now Russia. thousands of nuclear weapons, of a new weapons program, albeit defen- It says the United States will help pay course. That is half the number of a sive, before it is ready to be deployed? for the destruction of your weapons. decade ago, but does that give us great Detecting, tracking, discriminating, Doesn’t it make good sense for us to confidence? No. We need to reduce and hitting a trashcan-sized target destroy Russian bombers, not with our them much, much further. How can we do that? I know how we traveling 20 times the speed of sound, bullets but with saws? Doesn’t it make won’t do that. All of that progress in landing in 20 or 30 minutes anywhere in good sense for us to destroy Russian the reduction of nuclear weapons could the world after it is launched—inter- missiles in their silo through the use of come to an abrupt halt if we deploy a cepting that with another bullet that American taxpayer funds, not with national missile defense system with- we send up into the skies? To put it people who have to go in the field and out any regard to the concerns raised mildly, that is problematic. Our efforts fight and risk their lives, but through about whether this legislation would to date, under highly controlled test a treaty of arms control in which we violate the ABM Treaty that we have environments, come nowhere close to help pay the cost of the destruction of made with the Russians in order to nuclear weapons and delivery systems meeting the requirements a ballistic slow the nuclear arms race. Instead of controlled by Russia and the old Soviet missile system would need to satisfy working cooperatively with other nu- Union? and justify deployment. clear powers, if we act unilaterally we If we deploy without regard to all of Since the dissolution of the Soviet surely risk a return to a costly and the other issues and all of the other Union, Russia, the Ukraine and others dangerous arms race with Russia and considerations, all of the efforts we have destroyed over 400 interconti- nental ballistic missiles, 400. China as well. have made to reduce weapons of mass A former colleague, Dale Bumpers, In the last several weeks, I saw a nu- destruction that pose such a danger to said something interesting about this. clear weapon. I was in a weapons stor- the world, will we make this a safer He said: world? Or a world that is more dan- age facility on a tour, and I won’t de- scribe it in great detail, probably be- We can ignore Russia’s concerns now, but gerous? If we deploy this system before in the years to come, she will slowly recover we have renegotiated with Russia the cause I couldn’t. A nuclear weapon is and resume a great power role in the world. Anti-Ballistic Missile Treaty, we are not very big. A nuclear bomb is not By rash actions such as abrogation of the sure to jeopardize the enormous gains large at all. You can have a nuclear ABM Treaty, we are far more likely to rekin- we have already made in arms reduc- bomb dozens of times the power of the dle the cold war with a hostile nation than tion efforts. bomb that was dropped on Hiroshima. to produce a constructive relationship with a I would like to show a picture just It is no bigger than that desk. cooperative Russia. for a moment. I also ask unanimous The Soviet Union, Russia and the Senator Bumpers, then, was wisely consent to show a piece of an airplane Ukraine, now named, have destroyed cautioning us that the calculations on the floor of the Senate. over 400 intercontinental ballistic mis- that go into our strategic defense deci- The PRESIDING OFFICER. Without siles with MIRV warheads, over 400 of sions today will have enormous con- objection, it is so ordered. them gone. Our arms control agree- sequences and costly consequences for Mr. DORGAN. Mr. President, this is a ment has rendered them gone. They are the world that we pass on to our chil- piece of a backfire bomber. I suppose gone. We helped pay for it. We cut the dren. Each day we move closer to that some years ago, you would have wings off the planes. We pulled the mis- eliminating the nuclear threat left thought the only way a Member of the siles out of the ground. We saw those over from the cold war, thanks to arms U.S. Senate could hold a piece of a So- missiles destroyed. We have cut the reductions mandated in START I and viet bomber or a Russian bomber in his wings off 37 Soviet bombers. Eighty START II and thanks to the Nunn- hands would be if it were shot down submarine missile launch tubes are Lugar threat reduction that has been somewhere in hostile action. now gone; 95 nuclear warhead test tun- so successful. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2711

As I indicated, that investment has from Mississippi, Senator COCHRAN. I the Russians, negotiate those changes, been a critically important investment enjoy working with him. I think he is but we will not take an attitude that in reducing the nuclear threat. I show bright and productive, and he is one of this treaty does not matter to this my colleagues a chart that talks about the people that makes me proud to be country. Let us hope that is what the the imbalance between money that a Senator. The same is true of my col- majority leader meant when he said, some propose we spend on a national league from Michigan, Senator LEVIN. let’s be clear about our intentions to- missile defense program versus money The fact is, they have pretty big dis- ward the ABM Treaty. I yield the floor. we spend on arms reduction. This chart agreements about some of these issues, Mr. THOMPSON addressed the Chair. shows what we are prepared to spend but this is a very big issue. The PRESIDING OFFICER. The Sen- on a national missile defense system, a This idea about how this country re- ator from Tennessee. limited one, one that won’t protect us sponds to nuclear threats and what Mr. THOMPSON. I thank the chair. against much of the threat, but com- kind of nuclear threat should persuade My friend from North Dakota points out that there are, indeed, other pare it even at that to what is planned us to respond in certain ways will have threats to this Nation besides those to be spent on arms reduction. I hope profound implications for all of us and that pose a threat that this bill is de- this is not a picture of our priorities. I for our children and our grandchildren. signed to prevent. There are, indeed, wish it were reversed. I have a young son age 11 and a This legislation that we are consider- daughter age 9 who are in school today, other threats. He points out that our ing says just do it, in the popular jar- at least I hope they are in school missile defense system may not stop gon of today. Deploy the system as today. They are the most wonderful all of the threats that are out there, and he, of course, is correct with re- soon as the military can get it up children any father would ever hope to gard to that, also. there. Cost doesn’t matter. Arms con- have. I hope when my service is done in I do not believe that is sufficient the U.S. Senate, whatever I might con- trol doesn’t matter. Nothing much grounds for opposing a missile defense tribute to public policy, that they matters. Deploy it as soon as is pos- system for this country. We have be- might say I helped in a way to reduce sible. We are nervous. come aware, much more than we would Mr. President, let me say that I sup- the nuclear threat, I helped in a signifi- like, recently of the new threats, the port the strongest possible defense cant way to have this world move away new world that we live in, the new against any threat to our country, but from the kind of nuclear threat that threats that are posed not only from if you rationally think through the has existed now for many, many dec- old sources but from many, many new range of threats to our country, you ades. sources, some of which we may not be must start with the understanding that It is hard for people to believe be- fully aware of and what their capabili- the largest possible threat to our coun- cause it does not get much press and it ties might be, which apparently have try comes from thousands of nuclear is not very sexy, but every day we are missed the estimates of our own intel- warheads that now exist, thousands of spending American taxpayer dollars to destroy missiles that used to be aimed ligence community, in many instances. nuclear warheads already in stockpiles I agree with my friend concerning at American cities. What a remarkable with delivery vehicles, bombers and the Nunn-Lugar program. I have also thing to have happen. What a remark- ICBMs and others. We must continue visited Russia and have seen that pro- able success. the work of reducing them, and we gram in operation and the many good I think it was Mark Twain who said have done that very successfully. Any- things that it is doing and its related once that bad news travels halfway thing we do here to jeopardize that programs. We have a nuclear cities pro- around the world before good news gets would be a profound mistake. gram over there where we are trying to its shoes on. That certainly has to be In addition to that, what are the turn some of their nuclear cities and true with respect to this nuclear issue, other threats? A rogue nation getting help them turn their enterprises in the nuclear threat. How much atten- an ICBM? Yes, that is a small threat other directions. way over here on the edge. How about tion does this get, the day-to-day suc- We have assisted with regard to their a rogue nation getting a rental truck, cess we have in reducing nuclear war- scientists hopefully so that they will as I said, with a nuclear device planted heads and delivery vehicles? Let us not not leave the country and go to places in the back somewhere? Probably more jeopardize that. Let us move forward and spread technology in places that likely. Or a deadly vile of the most together in a thoughtful way, under- would be detrimental to us. deadly biological agent? More likely. A standing, yes, we should prepare for We have, indeed, destroyed some of suitcase nuclear bomb? More likely. some kind of missile defense. Let’s do the nuclear stockpile, but I think it is Should we worry about all of these? it thoughtfully, let’s do it when it is important to note that we are essen- Should we prepare for all of these? Of technologically possible, but let’s tially still dipping in the ocean as far course. We would be foolhardy as a na- make sure we do it when it is cost ef- as that is concerned. We are just get- tion to underestimate the threat of ter- fective, technologically possible, will ting started in that regard. They have rorism and underestimate the inten- not interrupt and will not pose danger many, many more tons of nuclear ma- tions of rogue nations. We would be to our arms control agreements. Let us terials and many, many missiles that fools to do that. But it would be short- condition it on all of those issues to- we have not touched yet, even if we are sighted for us to decide, because we are gether and, as a country, then do the aware of their existence. concerned about all of that, we are right thing. We should not in any case believe willing to push all of our chips to the Again, I thank the Senator from that we have begun to seriously eat middle of the table and say we will risk Michigan, Senator LEVIN, for allowing into the Soviet Union’s nuclear capa- the very substantial achievements we me to have some time in this debate. I bilities. We are trying to do that. have made in arms control reductions. hope in the coming hours we will be Those programs must be maintained. It The elimination of Russian bombers able to address this just a bit further. is going to take a period of time before by cutting off their wings, the destruc- Let me conclude—I know the Senator we can make any progress in that re- tion of Russian missiles, the disman- from Tennessee is waiting—let me con- gard. tling of Russian warheads, making clude with one final statement. The We have spent hundreds of millions Ukraine nuclear free—did anyone think majority leader said this morning that of dollars in Russia in order to main- they would hear that? We risk all of we should be clear in our intentions to- tain these programs. Our taxpayers that if we move in a manner in the ward the ABM Treaty. I do not know have made a decision that it is worth- Senate that says, ‘‘You don’t matter; what that means. I encourage him to while that we go over there and try to all that matters is our short-term tell me what that means. I agree with make friends with the Russians and try nervousness about one small slice of it, we should be clear, and I hope we to help them make this transition. We one of the threats that exist.’’ That is are clear with respect to our intentions have put our cash on the barrel head to not a balanced approach. about the ABM Treaty to say that the tune of hundreds of millions of dol- Mr. President, I conclude by saying I treaty matters, that treaty means lars. That money is sorely needed in think one of the more talented Sen- something, and to the extent we seek Russia right now, and hopefully it will ators in this country is the Senator changes in that treaty, we will, with be put to good use. S2712 CONGRESSIONAL RECORD — SENATE March 16, 1999 At the same time that we are doing As we saw in the hearings of the Gov- If ongoing Chinese missile deploy- this, our intelligence community and ernmental Affairs Committee in our ments and nuclear proliferation are not our Government still have serious con- International Security Subcommittee, addressed, and if we do not provide ac- cerns about proliferation activities of chaired by Senator COCHRAN, last year, cess to effective missile defenses to the Russians. When you consider the cooperation with American satellite U.S. allies in Asia, then such vulner- threats around the world and the so- manufacturers has actually helped Bei- able countries may have little choice called rogue nations and the outlaw na- jing learn how to build better missiles but to try to develop their own means tions and the dangers they present, of- and deploy multiple payloads from a of nuclear defense or deterrence. This tentimes if you trace back to where single rocket. This enhances China’s would intensify rather than diminish they are getting their capabilities, you capability to develop this latter tech- the proliferation problem in Asia and is will go back to Russia, you will go nology for use on ballistic missiles. As yet another reason it is imperative back to China. It is a serious, serious a result, they will be able to launch that we develop the interrelated tech- problem. multiple warheads from a single mis- nologies and control systems for thea- If what we are saying today is that if sile, a capability called MIRV’ing. ter-level and national-level missile de- the United States protects itself with a So now the Chinese have more reli- fenses. missile defense program, not only is able missiles, each of which may soon We should not forget that China has Russia going to continue to proliferate become capable of delivering multiple a well established propensity to export but it is going to refuse the hundreds of warheads with one shot. And now they its nuclear weapons and ballistic mis- millions of dollars that we propose to have stolen the final ingredient to sile technology. It has been reported in put in there, then so be it. I think we make this work—our own most sophis- the press, for example, that China pro- still have to go forward in the best in- ticated miniature warhead design. vided a fully tested nuclear weapons terests of our country. But that is not all the U.S. tech- design and highly enriched uranium to Make no mistake; we do not want to nology they have. American super- Pakistan. China has also provided bal- abrogate understandings lightly. Ev- computers may allow China to main- listic missile technology to Pakistan eryone knows the circumstances have tain the W–88 without nuclear testing. and other countries. In 1988, China pro- totally changed. Our deal with the The administration has loosened ex- vided a turnkey medium-range missile U.S.S.R. no longer exists. We have port restrictions on this technology. system to Saudi Arabia. That is an en- shown our friendship. The Soviet Union The Chinese are also reported to have tire weapons system ready to use right for years and years said, ‘‘We have to stolen U.S. laser technology and, in out of the box. China has also a record counter the United States of America, conjunction with advanced computers, of providing nuclear, chemical, and bi- because they have all these hostile in- may have helped them simulate nu- ological missile technology to Iran. tentions and they have these aggres- clear explosions in the laboratory. Furthermore, the Rumsfeld Commis- sive tendencies.’’ Now the United States has a huge sion reported that a number of coun- We have shown that not to be the program underway to develop the tries hostile to the United States, in- case. We have reached out a hand of means to ensure the viability of its cluding Iran, Libya, Iraq, and North friendship, but we cannot, in turn, be weapons without conducting test ex- Korea, are capable of manufacturing threatened with closing us out, espe- plosions. Were the Chinese to develop weapons of mass destruction and ballis- cially when they are still too often similar capabilities, then they could tic missiles and that previous United spreading nuclear technology and capa- maintain this W–88 and other modern States intelligence assessments had bility and missile capability around warheads without testing. This would greatly underestimated the danger the world at a time when we are con- enable Beijing to conduct nuclear that such developments pose to the sidering whether or not we want to weapons work without telltale under- United States. Should China decide to have a missile defense system to pro- ground explosions and help the Chinese export the W–88 or a complete weapon tect ourselves against whomever might missile force threaten the United to such nations, as has been done with be hostile to us in the future. States for decades to come. so many other dangerous technologies, Clearly, that is not Russia today. But So what does this actually mean in the consequences for regional and glob- it is a dangerous world out there in terms of U.S. national security? Until al stability would be grave indeed. many, many more respects than when now, China’s nuclear arsenal has been All this, Mr. President, makes it the old Soviet Union posed its threat. quite small, built around a compara- more important than ever that the Na- Many of my colleagues have already tively tiny force of land-based and tional Missile Defense Act of 1999 be recited the growing missile and weap- mostly liquid-fueled intercontinental passed. Faced with new and growing ons of mass destruction threats which ballistic missiles. However, thanks to nuclear and ballistic missile threats, in America faces from many hostile and the acquisition, both legal and illegal, part through our own carelessness, potentially hostile countries, and I will of new technologies, Beijing now America needs the protection that such not take the time to recite them again. stands on the verge of both a quali- a missile defense system would offer. Most of these threats in fact were well tative and a quantitative break- And Americans need the confidence of known when we voted on missile de- through. knowing that a system will be deployed fense last September. What is new There are at least four new missile rather than waiting on some future ad- since the last time we debated missile programs currently underway designed ministrative decision on whether to de- defense is the news that China has ob- to provide the People’s Liberation ploy. tained the design for our most modern Army with dramatically improved ca- It is time for Congress to act. The nuclear weapon, the W–88 warhead. pabilities by the first years of the next technology to develop and deliver nu- This technology permits the develop- century. Moreover, the Chinese now clear and other weapons of mass de- ment of massively destructive nuclear have a class of submarine capable of struction is widely available and is warheads at a fraction of the size pre- launching ballistic missiles. These de- spreading rapidly. If we do not prepare viously possible. velopments are highly relevant to our today, when the day arrives that Amer- Acquiring this technology will allow debates over U.S. missile defense. ica is paralyzed by our own vulner- the Chinese to fit multiple warheads Moreover, Mr. President, these devel- ability to ballistic missile attack or into a single missile for the first time opments threaten not only the United when an attack actually occurs, we and to deploy more nuclear weapons on States but pose a more imminent will be reduced to telling the American submarines. Of course, this revelation threat to our allies in Asia. They are at people and history merely that we had must be coupled with the knowledge least as worried as we are about missile hoped this would not happen. that because of lax export controls, the and weapons of mass destruction ad- I urge my colleagues to support S. Chinese have also been able to obtain vances by China and North Korea. 257, the National Missile Defense Act of American technology to improve the After all, countries such as Japan, 1999. I yield the floor. guidance of their missiles and to de- South Korea, and Taiwan are much Mr. BIDEN addressed the Chair. velop the capability to deliver multiple more likely targets for these weapons The PRESIDING OFFICER. The Sen- warheads from one missile. than we are—at least for now. ator from Delaware. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2713 Mr. BIDEN. Mr. President, pro- to the concept of what our strategic sians they should do away with these ponents of S. 257, the bill we are debat- doctrine should be. We are saying that MIRVed missiles—do away with them. ing now, suggest that this bill is vital Taepo Dong missiles in the next 1 to 5 That means we would achieve crisis to our country’s defense. The very dis- years—the Koreans may be able to get stability; it adds up to stability. tinguished Senator from Tennessee up to five of them—may be able to hit What is left on both sides are single- just got up and made his case, and as the United States, assuming the re- warhead missiles that don’t have to be an illustration he pointed to the tech- gime in North Korea lasts that long or launched on warning, because they are nology that the Chinese Government, outlives the research that would be re- less tempting targets in a first strike; apparently through espionage, has ac- quired to get this done. We are talking therefore, you pull back from the hair quired. about building a thin nuclear defense trigger. So if, God forbid, there is a I want to make it clear for the system to counter that immediate mistake, it doesn’t mean Armageddon record, I am not confirming anything threat and future threats from Iran, is guaranteed. That is a sound policy. at this point. But assume that what Iraq, and other rogue states, and we are There is only one little trick. Russia was said is accurate—and I am not dis- talking about it in almost total dis- has a quasidemocracy—my term, puting it either. One of the two things regard of what impact it will have upon ‘‘quasi’’ democracy. They have learned the Senator pointed out, as things we the ABM Treaty. the perils and joys of living with a par- should be worried about, is that they People say, ‘‘What is the ABM Trea- liament, a congress, a legislative body, may have acquired the capability of ty?’’ The ABM Treaty, as Senator DOR- called the Duma. The Duma has not MIRVing missiles. For the public, that GAN discussed, is the basis upon which ratified this agreement yet. means they can put more than one nu- we have gone from somewhere on the Why hasn’t the Duma ratified the clear bomb on the nose of a missile, an order of 25,000 to 30,000 nuclear war- agreement? The Duma has not ratified intercontinental ballistic missile. And heads—and the capacity that my friend the agreement for a lot of reasons. they may have gained the capacity to from Tennessee is worried about the Some Nationalists think it is a bad independently target those warheads. Chinese acquiring—down to 12,000 idea; some old apparatchik Com- Put another way, we know what the total, roughly, or 13,000 maybe, roughly munists think it is a terrible idea; Russians can do. The Russians have evenly divided between the United some of the democrats there don’t SS–18s and other intercontinental mis- States and Russia. quite know what to do as the next step. siles, each with any of 3, 7, 10—depend- Guess what? George Bush came along Here is what happens: Unfortunately ing on the missile—nuclear bombs with and said the single most destabilizing for the Russians, the bulk of their nu- a combined capacity that exceeds Hiro- thing of all—in what I call ‘‘nuclear clear arsenal is in these MIRVed, silo- shima and Nagasaki. They could theology’’—are these ‘‘MIRVed’’ mis- based weapons, these intercontinental launch a missile, and within 30 minutes siles, those missiles with up to 10 nu- ballistic missiles with multiple war- they could have one of those warheads, clear bombs on their tip, able to be tar- heads. The bulk of ours are on sub- one of those nuclear weapons, landing geted independently, once they sepa- marines (which are less vulnerable to a in Wilmington, DE, a small town, in rate, able to go in ten different direc- first strike), in single-warhead missiles relative terms, in my State, taking out tions with significant accuracy. called Minuteman missiles, or on B–1 all of the Delaware Valley and its 10 Why are they destabilizing? They are bombers and B–52 bombers. million people, and the same missile destabilizing because of the nuclear The Russians, if they go forward with could send one warhead to Washington, scenarios about who strikes first and the deal to destroy their silo-based DC, one to Roanoke, VA, et cetera—all whether you can strike back. Anybody MIRVed missiles, at the end of the day with one missile. That is a very, very, who faces an enemy that has this ca- will have less destructive capacity in very awesome capacity. We are worried pacity has to target those missiles, be- their arsenal than we will. Now, they that the Chinese may have acquired cause they are the single most dan- don’t have to keep it as less, because some of that technology. gerous thing out there. That means they are allowed to build single-war- It is also suggested that the Chinese that in a crisis, if a missile were acci- head missiles so we would each end up may have acquired the capacity to tar- dentally launched, or we thought one with the same number of warheads. get with more accuracy. An accurate was launched, what we would have to But guess what? They are bankrupt. missile can breach the overpressure do is go and strike those missiles first. They don’t have any money. They limit of certain missile silos—the What would the Russians now have to hardly have the money they need to de- pounds per square inch they could sus- do? They would have to launch on stroy the missiles they have agreed to tain from a blast and still be able to warning. Knowing that their MIRVed destroy. That is why we have the launch—so it became important during missiles were logical targets, they Nunn-Lugar program, spending mil- the time of the arms buildup between would adopt the use-it-or-lose-it phi- lions of dollars a year to send Amer- the Soviet Union and the United States losophy. It is the only rational decision ican technicians over to Russia to help what the hard kill capacity was. That a nuclear planner could make. dismantle, destroy, break up, and crush is, could you fire a missile that would So George Bush figured out these are strategic weapons. not only kill all the people in all the incredibly destabilizing weapons. They Think about that. If I had stood on Delaware Valley, but, assuming there are vulnerable to a first attack by so- the floor 20 years ago and said that, my were silos that had Minuteman rockets phisticated missiles and they are awe- colleagues would have had a little in those silos with nuclear weapons, some—awesome, as the kids say—in white jacket ready for me. They would could also knock out that missile their destructive capacity. So what do have hauled me off to the nearest in- itself? That is what they called the you do? As long as they are around, it sane asylum, I having lost my credibil- hard kill. Accuracy became a big deal means they must be on a hair trigger. ity completely by suggesting that the because you could take out the other No country who possesses them can Russians would ever let Americans guy’s missiles, and not just his cities. wait for them to be struck before they come over and destroy their nuclear We had the capacity to drop these fire them. Everybody can understand weapons. missiles 12,000 or 13,000 miles away that. The gallery is nodding; they all The reason they made that agree- within 30 minutes on pinpointed areas get it. They figured it out. When it is ment is that they realized it is in their the size of a soccer field in the Soviet explained in simple terms, everybody long-term interests, and they had no Union then, in Russia now. We are wor- understands it. That is called crisis in- money to do it. If they don’t have ried the Chinese may have acquired stability. money to do that, they also don’t have that capacity. I think my friend from What did we do? George Bush came money to build these new weapons that Tennessee is absolutely correct to be along and said these are bad things to only have one bomb on the end. It costs worried about that; so am I. have hanging around, so we negotiated a lot of money to do that. So if they What are we doing here today? We this treaty called the START II treaty can’t do that and they keep the agree- are debating what I believe to be a po- where, in an incredible bit of negotia- ment called START II, they end up at litical document, not a substantive tion on the part of the Republican ad- the end of the day with fewer nuclear piece of legislation that adds anything ministration, they convinced the Rus- bombs than we have—something we S2714 CONGRESSIONAL RECORD — SENATE March 16, 1999 would never do. We would never allow the best of my knowledge, but others parison to the threat that remains in us not to have parity with the Rus- are. And we say to them that they Russia—a country that is, at its best, sians. should not worry. Why worry? We are to be characterized now as struggling That is their dilemma right now. only building this tiny, thin shield. Our to keep its head above water; at worst, That is why the administration is ar- shield isn’t designed to affect them. it is losing the battle of democratiza- guing about a thing called START III. Yet, to the best of my knowledge, the tion. At Helsinki, President Clinton said not sponsor of this bill would not even ac- Mr. President, the threat of a missile only should we do START II, we could cept an amendment that would say, by attack on the United States is real and jump and do START III and take the the way, if whatever we come up with disturbing, but the true test is not how total number of nuclear warheads each would violate the ABM Treaty, we will angry we get, but how rationally we of us has to between 2,000 and 2,500, negotiate a change with the Russians deal with the threats to our national from 6,000 to 6,500 which is in the first first. It seems like a simple propo- interests. A rational development and stage of the reduction. sition, doesn’t it? deployment of a limited nuclear mis- Obviously, the Russians are very in- Now, where does this leave us? I sile defense does not require us to ig- terested in being able to go right to think I can say, without fear of con- nore our ABM Treaty obligations. Only START III. They don’t want to spend a tradiction, that at best, it leaves us fear and politics drive missile defense whole lot of time where we have more with essentially a congressional resolu- adherents to take such a risk in the bombs than they have, and they don’t tion of no meaning, of no consequence, bill before us. have the money to build many new changing nothing that the administra- My generation understands both that missiles. Although they are allowed to tion has said about seeking the ability fear and the dream of a ballistic mis- build more missiles, they don’t have to have a thin missile defense system, sile defense. Anyone who has ducked the money to do it. for it doesn’t appropriate money; it under his desk in grade school in an air What are we debating? We are here says this is subject—which is obvious— raid drill knows the collective sense of debating as if it were a serious part of to the yearly appropriations bill. It vulnerability and futility caused by the our nuclear strategy whether or not we doesn’t make any guarantees; it thought of a nuclear holocaust. will deploy some time in the future a doesn’t say anything of consequence. We have spent well over $100 billion system that has not yet been devel- In one sense, it is a meaningless resolu- in our effort to ease that sense of help- oped, that if it is developed may be tion. lessness through civil defense or mis- able to take out what might end up But in another sense, because we sile defense. But the role of this Sen- being up to five weapons that might be have debated it so vigorously, it is in- ate, over two centuries, has been to re- able to get to the continental United vested with a meaning beyond its sub- sist those savage fears and passionate States, from a government that might stance. What I worry about now is that dreams that would otherwise take us be in place 5 years from now. it will be taken as viewing our national down a dangerous path. America needs So, what to worry about, right? No strategy on nuclear weapons as no a balanced strategy to meet the rogue problem, it is not going to stop the longer envisioning as the centerpiece state missile threat, while also preserv- Russian missiles, so they are not going of that strategy the ABM Treaty—the ing the ABM Treaty, continuing the to get worried about this. Let’s put very treaty that allows us to keep re- START process, and using non- this in reverse. Let’s assume we were ducing the number of strategic weap- proliferation assistance to combat about to ratify a START II that was ons on each side. loose nukes in Russia and, at the same going to put us at having fewer nuclear Let me make one more point. You time, advancing entry into force of the bombs than the Russians, and we heard may say, ‘‘Well, BIDEN, what does the Comprehensive Test Ban Treaty. That that the Russian Government was ABM Treaty have to do with the is what I believe to be a sound and bal- about to erect a nuclear shield—they START agreement and reducing these anced strategy, and that is what I hope called it a ‘‘thin’’ shield—to intercept nuclear weapons?’’ Well, there are two Senator KERRY and Senator LEVIN and missiles that were going to come from kinds of truisms in this nuclear theol- I will propose in a thing called the Iran. Now, I am sure not a single Mem- ogy. One is, if you are incapable of ‘‘National Security Policy Act of 1999.’’ ber on this floor would say the follow- building a missile shield, and you think I respectfully suggest that it is a far ing: the other side might build one, then cry from the ‘‘bumper sticker’’ bill You know, what those Russians are really there is only one thing you can do: that is currently before us. If reason doing is erecting something that is going to build more missiles to overwhelm the can overcome fear, perhaps reason can stop our missiles from being able to strike. defense system. That is axiomatic, it is also overcome politics. If the Repub- What have they done to us? They have con- cheaper, it is consistent with old-line licans have the courage and foresight vinced our administration to destroy mis- policy, and it is doable. At a minimum, to pursue their goal of a limited na- siles that we have that can penetrate their you would say, don’t destroy the num- territory now; they convinced them to do tional missile defense, while preserving that. We are going to end up with fewer mis- ber of weapons you have. arms control and strategic stability, I siles than them, and they are going ahead at Look at it this way. If you think the urge them to get to the business of the same time and building this nuclear other team is about to put up this mis- talking about that. shield. And you actually have some people in sile shield—thin, thick or medium—and But right now, what is left uncertain the Duma saying, ‘‘The ABM Treaty doesn’t you now have 6,500 weapons that can is not whether or not we should have a mean anything to me.’’ reach their territory, you know, as a limited nuclear defense—we should and What do you think would happen matter of course, that if you reduce could if it is capable of being done—but with my right-wing friends, my left- that number to 2,500 or 2,000, you have it can and must be done only in the wing friends, my middle friends, all my a two-thirds fewer opportunities to context of the ABM Treaty, START II friends? There would be a mild frenzy. penetrate that shield. So why would and START III, as well as the Com- I can hear the Republican Party now; you do that? Why would you do that? prehensive Test Ban Treaty. That con- they would be talking about the selling I realize my friend from Louisiana is stitutes a national strategic policy. out of America, and they would have about to offer an amendment that I Mr. President, I have departed from good reason to think about that. We hope will at least be read as having the my text in order to convey the depth of would have Democrats joining, and I impact of saying, hey, look, arms re- my concern over this bill. Allow me can hear Pat Buchanan now—he could duction is still important to us—trans- now to restate those concerns in a make a whole campaign out of that. lated to mean the ABM Treaty still more precise manner. Well, what do you think is going on makes a difference. But let’s under- When I said that this was nothing in Russia right now with the National- stand that, at best, this bill is hor- more than an exercise in political thea- ists and the old Communists? Are they tatory. At worst, it is a real, real bad ter, I may have sounded like the Police listening to our debate about the ABM idea because, to the extent that the Commissioner in the film ‘‘Casa- Treaty, which some people say doesn’t threat is real—and there is a potential blanca.’’ I am ‘‘shocked . . . shocked’’ apply anymore? That is not what the threat from Korea—to the extent that to discover politics in the U.S. Senate. sponsor of the amendment is saying, to it is real, it pales, pales, pales in com- But we ought to make one thing clear: March 16, 1999 CONGRESSIONAL RECORD — SENATE S2715 the issue at stake is not—is not— weapons of mass destruction. It is clear Most importantly, the pragmatic so- whether to deploy a national missile that we need to inject new life into the lution considers ballistic missile de- defense. 1994 Agreed Framework if we are to fense in the context of the U.S.-Rus- Recent Administration actions make curtail North Korea’s nuclear program. sian strategic relationship. clear that it will deploy a missile de- It is also clear that we need to take Perhaps we will need to deploy a na- fense system if that should be in the proactive steps to halt North Korea’s tional missile defense. But this ideo- national interest. The real issue here is long-range missile capability. logical bill would foolishly sacrifice whether we will be pragmatic or ideo- To be taken seriously, any U.S. ini- arms control, non-proliferation and logical about it. tiative toward North Korea must com- strategic stability with Russia in order The pragmatic solution considers the bine carrots and sticks. We must bol- to field an imperfect missile defense. cost of a missile defense; this ideologi- ster our deterrent posture to dem- And the fact is, we don’t have to cal bill ignores it. onstrate to the North Koreans the pen- make that sacrifice in order to address Serious technical challenges remain alties they face if they threaten United the ballistic missile threat. But we do in developing a national missile de- States security. Improving our theater have to reject simplistic answers to fense system. But that is not for a lack defenses, increasing our capability for complex issues. of trying. In fact, we have committed pre-emptive strikes if we should face The basic problem with this bill is significant resources to the effort. Dep- imminent attack, interdicting North not that it advocates a national missile uty Secretary of Defense John Hamre Korean missile shipments abroad, and defense, but that it is so narrowly ideo- testified last October that the National increasing our security cooperation logical about it. What a shame, that we Missile Defense program ‘‘is as close as with other regional actors are all pos- spend our time debating right-wing lit- we can get in the Department of De- sible sticks we can wield. mus tests. A bill that looked more fense to a Manhattan Project.’’ At the same time, our policy should broadly at challenges to our national The Clinton administration has sub- also provide adequate incentives to security would be much more worthy mitted plans to spend approximately persuade the North Korean elite that of our attention. $30 billion in additional funds between their best choice for survival is the To underscore that point, I intend to 1999 and 2005 for missile defense devel- path of civil international behavior. introduce in the coming days the ‘‘Na- opment and deployment. Of that, These incentives could include our tional Security Policy Act of 1999.’’ roughly $11 billion is earmarked for de- joining Japan and South Korea in fund- Working with me on that bill are Sen- ployment of a ‘‘thin’’ National Missile ing two light-water reactors in ex- ator KERREY of Nebraska, who is Vice Defense with 20 interceptors. The De- change for our possession of the spent Chairman of the Intelligence Commit- fense Department estimated last sum- fuel in North Korea’s Yongbyon nu- tee; and Senator LEVIN of Michigan, mer that an expanded 100-interceptor clear reactor, sanctions relief in return who is Ranking Member on the Armed system at a single site would cost up- for a verifiable end to North Korea’s Services Committee. wards of $15 billion to deploy. missile programs, and security assur- We earnestly hope that our bill will That $11–15 billion may very well pro- ances that we have no intention of provoke a much more serious debate vide us with a deployed system that is forcing a change in North Korea’s po- than is possible on the one-sentence effective against rudimentary counter- litical system. bill before us. We invite our Republican measures. It is not at all clear, how- While these initiatives would cost colleagues to join with us in forging a ever, that it will buy a system that is money, together they could be funded comprehensive, truly bipartisan con- capable against truly advanced coun- for far less than the $11–15 billion we sensus on critical national security termeasures, such as are claimed for plan to spend for missile defense de- issues. Russia’s new SS–27 missile or even ployment. Thus, an article in Sunday’s One such issue is the future of deter- other current Russian or Chinese mis- Washington Post noted that North rence. Is deterrence so weak that we siles. Korea has already offered to cease ex- must deploy a national missile defense Now, before my colleagues remind porting its missile technology in re- to combat third-rate powers like North me that our missile defense system is turn for only one billion dollars. Korea, Iran and Iraq? If so, then I be- not aimed at Russia, I would refer We rejected that proposal, and I lieve we must reinforce deterrence. them to the Rumsfeld Report. That re- think we can get that deal for a lower Deterrence is—and will remain—the port warns that technology transfer is price. But we should remember our ex- bedrock of U.S. nuclear strategy. the key way that potential antagonists perience in negotiating access to that Rogue states must never be allowed to might acquire missile capabilities suspect underground site in North forget that utter annihilation will be against the United States. Korea. In this time of famine, North their fate if they should attack the The danger is that we will spend bil- Korea would settle for food aid instead United States with weapons of mass de- lions of dollars deploying a missile de- of cash. And a billion dollars spent on struction. We should emphasize that fense system that may work against food aid goes to American farmers, basic fact. SCUD-like technology, but will not rather than to North Korean weapons. What about the risk of ICBM’s in the work even five or ten years down the I don’t know how much it would cost hands of a leader too crazy to be de- road, against the potential threat from to truly end North Korea’s missile and terred? If that should happen, we rogue states who have bought or devel- nuclear programs, but we might con- should make it clear that the United oped more sophisticated missile tech- sider putting our money where our States will destroy—pre-emptively— nology. mouth is. While an embryonic missile any ICBM’s that such a leader may tar- It may be the case that we will have defense program might increase our get at us. I intend that our bill will do to spend those $11–15 billion dollars on sense of security, halting the North that, building on our basic deterrence missile defense deployment. It seems Korean’s missile and nuclear programs policy. to me, however, that a much smaller would provide real benefit to our na- What is it about nuclear deterrence sum might suffice to remove much of tional security. that makes it so hard for some people the threat that concerns us here. The pragmatic solution considers to support that strategy? Nuclear de- If we could move from START to whether the first ‘‘technologically pos- terrence between the United States and START Two and START Three, a por- sible’’ national missile defense will be the Soviets, and now between the tion of that $11–15 billion could be reliable and effective, especially in United States and Russia, is based spent on dismantling Russian nuclear light of warnings by the head of the upon what is sometimes called ‘‘Mutu- weapons and securing its large quan- Ballistic Missile Defense Office that ally Assured Destruction’’ or a ‘‘bal- tity of fissile material. This would national missile defense is a ‘‘high ance of terror.’’ Each country main- make a real, immediate, and lasting risk’’ program. This ideological bill tains the capability to destroy the contribution to our security. commits us to spend at least 5 million other, even if the other side strikes Another portion of those funds could dollars per day to build and deploy that first. be used to curb North Korea’s efforts to first system, even if it has only a medi- Both the right wing and the left wing develop intercontinental missiles or ocre test record. of American politics rebel against this. S2716 CONGRESSIONAL RECORD — SENATE March 16, 1999 They abhor leaving our very fates to logic that has worked in so many other ballistic missile defense adherents is to U.S. and Russian political leaders and instances—will work against the North do away with the ABM Treaty. military personnel. They also hear the Koreans. Again, lets consider the Why would they want to do that? Be- warning of some religious and ethical record. cause they know that the ‘‘thin’’ mis- leaders that no nuclear war can ever be For years, North Korea has had the sile defense proposed in this bill is at a ‘‘just war’’ in moral terms. ability to rain short-range missiles on best a strictly limited defense. It may But the ‘‘balance of terror’’ remains all of South Korea and to kill untold work against a handful of incoming in place, fully half a century after the thousands within range of North Ko- missiles, but not against an attack of Soviet Union joined the United States rean artillery. Yet the South Korean any serious magnitude. as a nuclear power. And those of us in and U.S. militaries have kept the peace To achieve a defense against a seri- the center of the political spectrum by threatening punishing retaliation ous ballistic missile attack with nu- continue to support it. should the North Koreans attack. We clear weapons, we would probably need Why is that? To put it simply: ‘‘be- have kept the peace by threatening to multiple radar sites—perhaps using cause it works.’’ destroy the very heart of the North Ko- ship-borne radars—and surely more in- Yet one of the implicit purposes of rean regime—its military—which is terceptor sites. (The Heritage Founda- this bill is to substitute our policy of crucial to its control over its popu- tion proposes putting the interceptors deterrence with one of defense. Instead lation. on ships, as well.) of deterring an attack on our territory Our military will continue to have To stop a serious missile attack we would defend against such an at- that retaliatory capability in the using chemical or biological warheads, tack with missile defenses. North Korean theater of operations— we might well need a boost-phase inter- Some people believe we must make whether we have a national missile de- cept system, either ship-borne or this transition from deterrence to de- fense or not. We maintain approxi- space-based. That is because the chem- fense—in this case using a National mately 37,000 troops on the ground in ical or biological agents could be car- Missile Defense—because the leaders of Korea, including the 8th Army and 7th ried in scores of bomblets dispersed North Korea, Iran, and Iraq cannot be Air Force, to say nothing of the 47,000 shortly after boost-phase shut-off. The deterred by the same means we have American troops in Japan or the por- national missile defense systems cur- used to deter Russia and China. I dis- tions of the 7th Fleet deployed in the rently under development would be agree. These countries’ leaders take region. nearly useless against such bomblets. tactical risks, but none has been will- Moreover, the North Koreans must So missile defense is rather like ing to risk complete annihilation. know that our early warning radars Lay’s Potato Chips: it’s hard to eat Let’s consider the record of deter- could pinpoint the source of any mis- just one. For the real ballistic missile rence against extremist leaders. sile attack on the United States and defense adherents, even ‘‘Star Wars’’ is In the 1950’s, the Soviet Union under that such an attack would bring a dev- therefore not dead. But the ABM Trea- Joseph Stalin was deterred from a con- astating response. ty bars both ship-borne and space- ventional invasion of Western Europe. Maintaining U.S. retaliatory forces, based ABM systems. But why? Why did the Soviets not and demonstrating our willingness to Still, the dream persists: if only this crush the Berlin Airlift? Because Sta- use them when necessary, are the keys bill were passed, if only the ABM Trea- lin—that great butcher of souls—feared that have kept the peace. There is ty were killed, then ‘‘Brilliant Peb- a nuclear war. every prospect that the credible threat bles’’ or some other system could be Why did the Soviet Union pull back of retaliation will continue to deter ex- pulled out of the drawer, dusted off, from confrontation in Berlin in 1961 tremist states in the future. and contracted out to every congres- and Cuba in 1962? Because Nikita Khru- So let us all think carefully—and ra- sional district to keep the money com- shchev—that foolish risk-taker who tionally—before letting our fears of de- ing. was later deposed by his nervous co- struction move us away from a policy Many missile defense adherents are horts—still feared nuclear war. that has avoided destruction so well quite open about their determination Why has China not invaded Taiwan? and for so long. to kill the ABM Treaty, and frustrated Because every Chinese Communist Traditional deterrence may unnerve because Congress lacks the Constitu- leader—from the consummate butcher us because it depends upon rational tional authority to do that. Some fall Mao to the would-be capitalist dic- leaders and weapons control systems. back on strained legal theories to tators of today—has feared nuclear But the alternative—missile defense— argue that the break-up of the Soviet war. depends in turn upon the perfection of Union left the ABM Treaty null and More recently, Saddam Hussein was complex systems and their human com- void—while hoping that nobody will deterred from using chemical or bio- ponents. apply that reasoning to other U.S.-So- logical weapons during the Gulf War, Think of the great computer-assisted viet treaties. despite his threats to do so, by the systems of our time: the Internal Reve- At other times, missile defense ad- United State’s promise that such an at- nue Service, the air traffic control sys- herents press to deploy a ballistic mis- tack would meet with a devastating tem, credit bureaus, or the National sile defense regardless of whether this U.S. response. Weather Service. requires violation or abrogation of the The record demonstrates that ex- Then ask yourselves whether missile ABM Treaty. That is what this bill tremist states are deterred when we defense will really make you safe—es- would do. credibly threaten to retaliate, and pecially if the price of it is the end of If we enact S. 257 and make it U.S. when our threatened retaliation imper- the START process and, therefore, con- policy to deploy an ABM system with- ils their vital interests. tinued Russian reliance upon MIRVed out addressing Russian concerns and That is what has deterred the Iraqis, ICBM’s. U.S. treaty obligations, then Russia the Soviets, and the Chinese from Whatever missiles a rogue state will almost certainly use its thousands using weapons of mass destruction might build, however, the one missile of ICBM warheads to maintain its nu- against U.S. interests in the past. That threat to our very existence is still clear deterrence posture. is what has brought the Serbs to the from Russia. A rogue state might de- That would end strategic arms con- bargaining table, both in the Bosnian ploy a few tens of nuclear warheads; trol. It would also sacrifice our long- and Kosovo crises. That is what has de- Russia has thousands. And what is es- standing goal—ever since the Reagan terred the Syrians from directly at- pecially appalling is this bill’s cavalier Administration—of removing the tacking Israel. treatment of the U.S.-Russia relation- greatest threat to strategic stability: Yet our concern today is over the ship. land-based, MIRVed ICBM’s. North Korean threat. At some point in As we debate S. 257, I have to ask my- MIRVed ICBM’s—with Multiple, the near future, the North Koreans self: Why is the other side so deter- Independently-targeted Re-entry Vehi- may achieve a limited ability to strike mined to pass this bill, rather than a cles—are the cheapest way for Russia U.S. territory. We must ask ourselves more serious piece of legislation? The to overwhelm a missile defense. But whether the logic of deterrence—a sad truth is that the real goal of many they also put nuclear Armageddon just March 16, 1999 CONGRESSIONAL RECORD — SENATE S2717 a hair-trigger away, because a missile preparations for World War II, and and its successors: especially the Inter- with 3, or 7, or 10 warheads is a truly some continued to accuse him of ‘‘get- mediate Nuclear Forces agreement, the tempting target for a first strike by ting us into’’ that war for another 20 START Treaties, and the Chemical the other side. years, as though America would have Weapons Convention. In a crisis, a Russia that relies upon been better off accepting a Nazi Eu- The Clinton Administration has MIRVed ICBM’s may feel it has to ‘‘use rope. And some Republicans opposed achieved ratification of START Two them or lose them.’’ That’s why Presi- the United Nations in the post-World and the Chemical Weapons Convention, dent Bush signed START Two to ban War II world. but perhaps only because former Re- those missiles. Conservative Republicans have op- publican officials worked with Demo- Today, maintaining the START mo- posed arms control treaties as well, crats to complete President Bush’s leg- mentum is a real national security from the Limited Test Ban Treaty of acy. The real political problem with challenge. The Russian Duma has 1963 to the SALT Treaty of 1972, the the Comprehensive Test Ban Treaty is balked at ratifying START Two, large- Threshold Test Ban Treaty of 1974, the that it was a Democratic president who ly because Russia cannot afford to re- START Treaties of 1991 and 1993, and signed it. place its MIRVed ICBM’s with enough the Chemical Weapons Convention of The truth is that conservative Re- new, single-warhead missiles to main- 1993. Today they oppose the Com- publicans are still uncomfortable with tain the force levels permitted by the prehensive Test Ban Treaty and call the whole concept of arms control. treaty. for an end to the Anti-Ballistic Missile They see arms control treaties as ei- But major force reductions under Treaty of 1972. ther hamstringing the United States or START Three, to reduce nuclear forces Imagine their frustration, then, with defrauding the world by merely codify- to a level that Russia can hope to the tendency of Republican Presidents ing what the two sides would have done maintain, could get the Russian Duma to negotiate and sign arms control unilaterally. to permit Russia to give up MIRVed treaties. Dwight Eisenhower’s pursuit Against this background, it is not so ICBMs. of a test-ban treaty was the first be- surprising that Republicans are willing Serious legislation would call for trayal, even though it was John F. to sacrifice the START process in order lower START Three levels than those Kennedy who finally signed the Lim- to kill the ABM Treaty. Conservatives proposed at the Helsinki summit in ited Test Ban Treaty. were not very pleased to be signing 1997. The bill before us, by contrast, Richard Nixon was truly a turncoat, arms control treaties in the first place. would put the final nail in the coffin of to many Republicans. Aside from rec- To them, the end of the Cold War is a START Two. ognizing Communist China, Nixon time to rid ourselves of those ‘‘foreign That is because Russia truly doubts signed both the ABM Treaty and the entanglements,’’ to use President that it can do without MIRVed ICBM’s SALT Treaty with the Soviet Union. Washington’s famous phrase. if the United States deploys a national The Soviets promptly used a loophole As a Democrat, I must admit to missile defense. Now, U.S. officials are in SALT to deploy the MIRVed SS–19 being perplexed by some of this behav- explaining to Russian leaders how a ICBM, which the Senate had thought ior. You might expect that conserv- limited missile defense could defend would be illegal under the treaty. Re- atives would appreciate the virtues of America without threatening Russia or publican anger was hardly lessened ‘‘law and order’’ in the field of strate- the basic goals of the ABM Treaty. when it came to light that the Soviets gic weapons, just as they preach it at The Administration thinks there is a had told U.S. officials of their plans, home. reasonable chance of bringing Russia and that the word had not been passed Certainly professional military offi- around. But that will take time. Our to the Senate. cers appreciate the virtue of predict- bill will endorse that process of edu- I think that the conservative Repub- ability that enables them to prepare cation and negotiation. lican anger at Henry Kissinger—which more rationally for any future conflict. Passage of S. 257, by contrast, risks continues to this day—is due to his As a result, the military nearly always torpedoing those important U.S.-Rus- willingness to pursue arms control supports ratification of arms control sian talks. This bill will very likely be with the Soviet Union and better rela- treaties, again to the great frustration seen by Russia as a slap in the face. tions with China, even as the United of conservative Republicans. The Com- And it’s hard to blame them, when the States bombed their ships in Haiphong prehensive Test Ban Treaty is just the litmus-testers set up a vote just a few harbor. Nixon and Kissinger pursued latest example, as every Chairman of days before Russia’s Prime Minister is the Vietnam War far beyond the point the Joint Chiefs of Staff since General due here for talks with Vice President of diminishing returns, and they sup- David Jones from the Reagan Adminis- GORE. ported right-wing regimes from Greece tration supports ratification, while If my colleagues want a limited na- to Chile and Guatemala. But their sub- conservative Republicans in the Senate tional missile defense without sacrific- tle power politics rejected isolationist vow to keep that treaty from coming ing the ABM Treaty, we can get that. ideology, and true-blue conservatives to a vote. If, however, their real aim is to kill the never forgave them. Perhaps the real clash here is be- ABM Treaty and strategic arms con- Gerald Ford was hardly better, as he tween ideology and reality. Conserv- trol, then they are making a tragic signed the Threshold Test Ban Treaty. ative Republicans idolize self-reliance, mistake. Ronald Reagan could never be seen as both in the individual and in the state. S. 257, which ignores our treaty obli- a traitor to the right wing. He brought The Great Depression of 60 years ago gations, could force us to abrogate the it into the White House and brought and the interdependent world economy ABM Treaty. Enactment of this bill Republicans to power in the Senate. He of today have made rugged individual- would thus practically guarantee that opposed SALT Two and breached the ism an insufficient guideline in eco- the START process would collapse, limits of that signed-but-unratified nomic and social policy. Two world leaving us facing MIRVed Russian treaty. He also brought back the mis- wars and the threat of annihilation ICBM’s for decades to come. sile defense issue, with his Strategic posed by weapons of mass destruction One of the fascinating questions in Defense Initiative—better known as have done the same thing in our inter- the missile defense debate is why mis- ‘‘Star Wars,’’ as much for its over- national relations. sile defense adherents are so willing to reaching ambition as for its space- The American people understand this sacrifice the START process. The an- based architecture. and vote consistently against those swers tell us a lot about isolationist Even Ronald Reagan puzzled many who would sacrifice national or inter- ideology and the politics of paranoia. right-wingers, however, when he came national consensus for the sake of left- Isolationists in the Senate—mostly out against nuclear weapons and pro- wing or right-wing ideologies. Republicans—have a long history of op- posed sharing Star Wars technology But the dream of unfettered individ- posing international obligations. Henry with the Soviets. Puzzlement turned to ualism lives on. For some, it is the Cabot Lodge opposed the League of Na- frustration in the Bush Administra- dream of resuming nuclear weapons tions after World War I. Republicans tion, as some Reagan proposals were tests, even though the price of that opposed Franklin Delano Roosevelt’s actually accepted by the Soviet Union would be permitting similar tests by S2718 CONGRESSIONAL RECORD — SENATE March 16, 1999 increasing numbers of other countries. nuclear material and by improving ex- and strategic stability, I urge them to For others, it is the dream of fighting port and border controls to prevent the withdraw S. 257 and talk to us. the next war in the so-called ‘‘high proliferation of weapons of mass de- Otherwise, I urge all my colleagues frontier’’ of outer space. And for still struction. Still others help weapons to reject this bill and avert the sub- others, it is the dream of a shield scientists and technicians to find non- stantial peril that it risks to our na- against enemy missiles—perhaps a U.S. military employment, so they will not tional security. shield against our enemies or, in some have to consider contracts with rogue I hope the amendment of my friend versions, a U.S.-Russian shield against states for their dangerous goods or from Louisiana prevails because, al- the rest of the world. services. though she may not mean it this way, To these dreamers, the bill before us Economic collapse and resurgent na- I read it to say arms reduction is still is but a first step. A ‘‘thin’’ national tionalism may be closing Russia’s win- vitally important. Arms reductions are missile defense will lead to ‘‘thicker’’ dow to the West. But these programs critical and, I would argue, are not ca- defenses. Demise of the ABM Treaty help to keep that window open. The pable of being conducted with any effi- and strategic arms control will merely Clinton Administration has seen the cacy in the absence of an ABM Treaty. usher in an age of unfettered nuclear risks and opportunities that are inher- I thank my colleague for allowing me dominion, as the United States builds ent in Russia’s economic plight: the to speak, my colleague from Louisiana an eventually impregnable, space-based risk of rogue-state recruitment has in- who is about to introduce her amend- defense from missiles of all sorts. creased, but so has the buying power of ment. I also thank my friend from Mis- This is only a dream. But it is a every dollar and Deutschmark that we sissippi, who is a consummate gen- dream that energizes the right wing. and our allies can devote to threat re- tleman for following and listening to And it is a dream that has become a duction and non-proliferation assist- what I have to say. litmus test for Republicans in this ance. I yield the floor. body. The Expanded Threat Reduction Ini- AMENDMENT NO. 72 That is truly a shame. For rational tiative announced last month deserves (Purpose: To add a statement of policy that policy must be built on reality, not on our support, and I am confident that it the United States seek continued nego- dreams. will gain that support. I believe that tiated reductions in Russian nuclear Mr. President, the threat of a missile we should do even more, including fi- forces) attack on the United States is real; it nancing retired officer housing in re- Ms. LANDRIEU. Mr. President, I is disturbing. But the true test of turn for Russian withdrawal of troops send an amendment to the desk. statecraft is not how angry you get, from Moldova and Georgia. The PRESIDING OFFICER (Mr. but how rationally you deal with We should also consider more pro- VOINOVICH). The clerk will report. threats to the national interest. grams that employ former weapons ex- The legislative clerk read as follows: A rational development and deploy- perts in non-military pursuits, even if The Senator from Louisiana (Ms. ment of a limited national missile de- their activities are not likely to result LANDRIEU), for herself, Mr. LEVIN, Ms. fense does not require us to ignore our in commercially viable ventures. Even- SNOWE, Mr. DORGAN, Mr. BREAUX, and Mr. ABM Treaty obligations. Only fear and tually the Russian economy will turn LIEBERMAN, proposes an amendment num- bered seventy-two: politics drive missile defense adherents around and provide new careers for the At the end, add the following: to take such a risk in the bill before us. talented experts from the Soviet SEC. 3. POLICY ON REDUCTION OF RUSSIAN NU- My generation understands both that Union’s nuclear, chemical weapons, bi- CLEAR FORCES. fear and the dream of a ballistic mis- ological weapons, and long-range mis- It is the policy of the United States to seek sile defense. Anyone who has ducked sile programs. Until that happens, how- continued negotiated reductions in Russian under his desk in a school ‘‘air raid’’ ever, it is clearly in our national inter- nuclear forces. drill knows the collective sense of vul- est to keep that talent off the inter- The PRESIDING OFFICER. The Sen- nerability and futility caused by the national market. ator from Louisiana. thought of a nuclear holocaust. We Democrats will support our moderate Ms. LANDRIEU. Thank you, Mr. have spent well over a hundred billion Republican friends on these issues, and President. dollars on efforts to ease that sense of I believe that Republicans will support Mr. President, it is a simply worded helplessness through civil defense or our similar efforts in return. But my amendment but a very important missile defense. moderate Republican friends should amendment. But the role of this Senate, for over not deceive themselves: these programs The distinguished Senator from Dela- two centuries, has been to resist those will not survive if right-wing policies ware brought up excellent points in savage fears and passionate dreams on national missile defense bring down terms of the necessity for us, as we that would otherwise take us down the ABM Treaty and the START proc- consider this important bill that the dangerous paths. ess. Senator from Mississippi has brought America needs a balanced strategy, Russian pride is already damaged by to us, to continue to talk about our to meet the rogue-state missile threat its shattered power and by the need to commitments to further reductions of while also preserving the ABM Treaty, accept our money. If a precipitous deci- nuclear weapons. continuing the START process, using sion to deploy missile defense leads I strongly support a limited national non-proliferation assistance to combat Russia to preserve its MIRVed ICBM’s, missile defense. It is important that we ‘‘loose nukes’’ in Russia, and achieving Cooperative Threat Reduction will be pursue this program with energy and entry into force of the Comprehensive ended. Once that goes, I predict that determination. But we must also keep Test-Ban Treaty. Russian cooperation on non-prolifera- pursuing other means of enhancing our That is what I hope Senator KERREY, tion will go as well. security. Senator LEVIN and I will propose in the Then our nuclear and chemical and We need to move our strategic rela- ‘‘National Security Policy Act of 1999.’’ biological weapon fears will expand tionship with Russia from the cold war It is a far cry from the bumper-sticker from the fear of missile warheads to paradigm of mutually assured destruc- bill currently before us. the fear of every ship or plane or truck tion to one of mutually assured secu- Let me make a special appeal to that approaches our borders. And the rity. We have made great progress in those Republican members with whom far-sighted legacy of Sam Nunn and his this regard, as has been pointed out in we Democrats make common cause to concerned co-sponsors will have been the last hour on this floor by Members support threat reduction programs in but a blissful rest stop on the highway on both sides, but much remains to be the former Soviet Union. Some of those to destruction. done. programs, like the Nunn-Lugar pro- If reason can overcome fear, perhaps However, in making this transition, gram, further the START process by reason can also overcome the politics we cannot allow the territory of the underwriting the destruction of former behind S. 257. If Republicans have the United States to be threatened by bal- Soviet weapons. courage and foresight to pursue their listic missiles from rogue nations, es- Others guard against proliferation by goal of a limited national missile de- pecially if it is in our capacity to pro- safeguarding or downgrading special fense while preserving arms control tect ourselves from this imminent March 16, 1999 CONGRESSIONAL RECORD — SENATE S2719 threat. Nevertheless, we should not an unusual and extraordinary threat to the are seeking a fairly early vote on this allow our missile defense effort to dis- national security, foreign policy, and econ- amendment. I wonder if I can inquire of tract from our security relationship omy of the United States, and hereby declare my friend from Colorado approxi- with Russia, if at all possible. And that a national emergency to deal with that mately how long he plans on speaking. threat. is the essence of this amendment. Mr. ALLARD. Probably 15 to 20 min- Our country and Russia have come a For those who say the threat is not utes would be adequate for my re- long way in terms of reducing strategic real, recently—last year—some new in- marks. I request 20 minutes, and then, nuclear threats to both countries, and formation came out about the signifi- if I finish before that, I will yield back. nothing we do today should negate this cance of this threat. Mr. LEVIN. There is no time limit, of This is 1994. course, at this point. progress. But, in my view, nothing in Let me go on to read: the 20th century has contributed more Mr. President, I then alert our col- Several countries hostile to the United leagues. I think I am speaking for Sen- to American security than an end to States have been particularly determined to the imminent threat of nuclear war. acquire missiles and weapons of mass de- ator COCHRAN also. We are seeking to It is important that we carry this struction. President Clinton observed in Jan- know how many people will want to momentum to finish the task. No uary of 1998, for example, that ‘‘Saddam Hus- speak on the pending amendment after threat from a rogue nation should out- sein has spent the better part of this decade, the Senator from Colorado has com- weigh the need for us to attain a mutu- and must of his nation’s wealth, not on pro- pleted. Perhaps the cloakrooms can be ally secure and stable relationship with viding for the Iraqi people, but on developing notified of that promptly, if that is ap- our Russian partners. On the eve of a nuclear, chemical and biological weapons propriate, so we can determine just and the missiles to deliver them’’. visit from Prime Minister Primakov, it whether it is possible to have a vote on is important that we continue to work Let me also say that it is not just the pending amendment sometime towards this goal and we use this op- this country. Qadhafi, the Libyan lead- prior to the—what was the Senator’s portunity to further our negotiations. er, has stated: goal? Therefore, I offer this amendment, If they know that you have a deterrent Mr. COCHRAN. Mr. President, if the which simply states that it is our pol- force capable of hitting the United States, Senator will yield, I would like to see they would not be able to hit you. If we had a vote around 4:30, or 4:45 at the latest. icy to seek continued negotiated reduc- possessed a deterrent—missiles that could tions in Russian nuclear forces which But we don’t want to cut any Sen- reach New York—we would have hit it at the ators off. If others want to speak on will reaffirm the Senate’s belief that same moment. Consequently, we should such reductions are in our national in- build this force so that they and others will this amendment, then we want to en- terests. It would also be an important no longer think about an attack. courage them to come over and let us signal to the Russians on the eve of I could go on. But I think the RECORD hear their remarks. This is an amend- that visit. is replete with quote after quote by ment we are prepared to recommend be Furthermore, this amendment is in hostile leaders to the United States approved by the Senate. We think it is keeping with the recommendations of that it is most certainly their inten- a good amendment, noncontroversial, our National Defense Panel. As you tion to develop these weapons that helps the bill, strengthens the bill, and know, the NDP was created by Con- could possibly hit our homeland. Al- I compliment the distinguished Sen- gress to review the Pentagon’s conclu- though it is hard for people to think ator for offering it. sion in its Quadrennial Defense Review. about this—and we most certainly PRIVILEGE OF THE FLOOR It is a nonpartisan panel of defense ex- don’t want people to panic—we want to Mr. LEVIN. Mr. President, I ask perts, some of the finest minds working be realistic to the threat. unanimous consent that the privilege on national security. They are in I thank the Senator from Mississippi of the floor be granted to John Brad- agreement that a defensive system, for bringing this bill before us at this shaw, who is a fellow in Senator such as our national missile defense, is time. WELLSTONE’s office, during the pend- best developed if coupled with limiting I offer this amendment in an attempt ency of this bill. our offensive capabilities in our arms to get more bipartisan support for The PRESIDING OFFICER. Without reduction efforts. what I consider to be a good bill, and a objection, it is so ordered. That is what we are trying to do with quite timely one, that will not, and Mr. LEVIN. Mr. President, we will this amendment. I believe it will re- should not, disrupt our ongoing and propound a unanimous consent agree- ceive bipartisan support. It will help very beneficial relations with Russia in ment hopefully after the Senator from make this bill an even better bill. our reductions, but one that will pro- Colorado has completed his presen- Before I conclude, I would like to add tect the people of Louisiana, the people tation. I will need about 10 minutes in just a few things to the RECORD that I of Alaska, the people of Mississippi, the support of the Landrieu-Levin amend- think are very important as we nego- people of Michigan, and everyone in ment, which is a critically important tiate the passage of this important this Nation for this growing and immi- amendment. It should be discussed be- piece of legislation. nent threat that even the President fore we vote on it because of the im- Our distinguished colleague from himself has acknowledged over and pact it will have, I believe, on the bill Mississippi did not include this lan- over is real. and perhaps on the vote on the bill, be- guage in his very simple bill to deploy I yield the remainder of my time. I cause it will also have an impact on an effective national missile defense ask the floor leaders to give whatever the recommendation of the senior ad- system in his efforts to gain support. time they think is appropriate to the visers to the President as to whether or And I agree with that. But I think it is discussion of this amendment. I will not he will veto this bill. important, Mr. President, for those call for a rollcall vote at the appro- Because it is so significant—it is sim- who are considering whether or not to priate time. ple but very vital and very signifi- vote for this bill—and I hope they will Several Senators addressed the cant—it is important that there be dis- vote for this amendment and then vote Chair. cussion of the Landrieu amendment. So for the bill—for me to take 2 minutes Mr. ALLARD. Mr. President, I be- I will need about 10 minutes on that, I to read into the RECORD some impor- lieve the minority manager wants to be alert my friend from Mississippi. We tant statements that have been made recognized. I yield, with the under- can figure out if any time agreement is by our President, as well as some of the standing that I will follow. possible after the Senator from Colo- enemies of this country, about why it Mr. LEVIN. Mr. President, I thank rado has completed. I thank him for his is important for this bill to pass. my friend from Colorado. courtesy. Not last year, not the year before, I want to make an inquiry of both The PRESIDING OFFICER. The Sen- but in 1994, President Clinton certified him and the Senator from Louisiana as ator from Colorado. that: well and, of course, the floor managers, PRIVILEGE OF THE FLOOR I * * * find that the proliferation of nu- and the sponsors of the bill. We are try- Mr. ALLARD. Mr. President, I rise in clear, biological, and chemical weapons ing to determine how much time is support of S. 257, the National Missile (‘weapons of mass destruction’) and the going to be needed on the Landrieu- Defense Act of 1999. Before I make my means of delivering such weapons, constitute Levin amendment which is pending. We comments, I ask unanimous consent S2720 CONGRESSIONAL RECORD — SENATE March 16, 1999 that Tim Coy be granted the privilege thorization and appropriations process, Hawaii, and is apparently developing a of the floor for the duration of the con- which is an amendment we just adopt- second missile which will be capable of sideration of S. 257. ed here in a vote we had around 2 reaching the entire United States The PRESIDING OFFICER. Without o’clock or 2:15. mainland. North Korea has sold every objection, it is so ordered. This bill does not mandate a date for missile it has developed, and the asso- Mr. ALLARD. Mr. President, I thank deployment of a system, calling in- ciated technology, to other rogue the Senator from Mississippi for his stead for deployment as soon as the re- states. thought and effort in this regard. quired technology is mature. During the Armed Services hearing Mr. President, I think we get stuck As I mentioned earlier, the United on February 2, 1999, Director of Central in the way things used to be. The fact States has no defense against these Intelligence George Tenet said: is, this is a changing world. We have systems, but I think it is important North Korea is on the verge of developing changing dynamics as far as what that we continue to push for their de- ballistic missiles capable of hitting the con- other countries are doing in regard to velopment as soon as it is techno- tinental United States. weapons development and what their logically feasible—that we quickly Again, relating to the North Koreans’ risks may be to the mainland of the move ahead. I think this is completely launch when they set off a second-stage United States. compatible with the January 20, 1999, rocket that went over the tip of Japan, My colleague from Mississippi has statement of the Secretary of Defense: Tenet said: said yes, this is a changing world out ‘‘The United States in fact will face a The proliferation implications of these there and we need to make sure we rogue nation threat to our homeland missiles are obviously significant. have a national missile defense system. against which we will have to defend During the hearing, Director Tenet If you talk to the average Americans the American people.’’ And, he goes on also warned that Russia is reneging on out here on the street, they think we to say, ‘‘technological readiness will be their earlier commitment to the do have a national missile defense sys- the sole remaining criterion’’ in decid- United States to curb the transfer of tem. The fact is, we are no longer in a ing when to deploy a national missile advanced missile technology to Iran. cold war era where the foreign policy of defense system. Again, he stated: threat of mutual destruction is going Secretary Cohen stated on February The bottom line is that assistance from to be effective. We are in a modern era 3, 1999, during the Armed Services Russian countries is still contributing sub- where countries can develop a missile hearing, that any country which fires stantially to progress in Iran’s dangerous missile programs. rather quickly, because of the natural ballistic missiles at us will face imme- resources that they have—maybe it is diate retaliation. Again, this is the old, He added: oil and gas—and with these huge finan- cold war attitude of mutual destruc- India, Pakistan, and Iran, who have tradi- cial resources that all of a sudden be- tion. While I agree with this state- tionally been considered technology cus- tomers, now have developed capabilities that come available to them. In fact, we ment, we again decide to place our- could, in some cases, be exported to others. have heard testimony in the commit- selves at the mercy of rogue states in- So here we are. We have a commis- tees on which I serve—I serve on both stead of being proactive in protecting sion set up by the United States to the Intelligence Committee and the our citizens, because these rogue states analyze our defensive posture and our Armed Services Committee—that the have the capability of developing a sys- ability to counteract a missile attack, time required for a newly developed tem of missiles with some type of war- and we have the Director of the Central country to build a missile from scratch head—whether it is bacteriological, Intelligence Agency both warning us has halved in the last few years. That chemical, or nuclear—and we do not that we need to update our defense sys- is because there is lots of technology have any defense system today to tem to a current situation that exists out there, that is readily available, counteract any missile that would be throughout the world. I happen to be- that they can acquire quickly. They headed towards the United States. lieve both the report as well as the can put this all together into a very ef- I would like to talk a little bit about comments by George Tenet. I think fective offensive system if they so the threats that are posed to the U.S. that we need to move forward. choose. mainland today. I want to refer to the The President’s 3+3 Missile Defense So I want to take some time today to July 1998 Rumsfeld report on ballistic Plan has already been pushed back to talk about what the bill means to me, missile threats to the United States. 2005, but the problem is that the threat and some of the language in the bill The commissioners who put together is right now. It is not in 2005. In De- specifically. I would like to talk a lit- the report concluded: cember, Robert Walpole, National In- tle bit about the threats of today’s [T]he threat to the U.S. posed by these telligence Officer for Strategic and Nu- world and talk about the system’s fea- emerging capabilities is broader, more ma- clear Programs, said in a speech that sibility. We have heard comments here ture and evolving more rapidly than has the Central Intelligence Agency was on the floor that we are dreaming, that been reported in estimates and reports by caught by surprise by North Korea’s the Intelligence community. this is really not that feasible an ap- flight testing of a three-stage missile. proach. I want to make some com- The report goes on and further While the third stage of the missile ments in that regard and talk a little states: failed, CIA analysts had to agree to the bit about the cost of the system and [T]he warning times that the U.S. can ex- Rumsfeld report, as I stated earlier in how I think we can pay for it. And pect of new ballistic missile deployments are my comments, that the threat is here then, finally, before I conclude, I want being reduced. despite the CIA’s dismissal of the re- to talk a little bit about the ABM I believe the missile threat to the port when it was released. Treaty and the treaty ramifications. United States is growing at an acceler- I want to talk a little bit about the What does S. 257, the National De- ated pace. Numerous hostile nations feasibility of us moving ahead with the fense Act of 1999, do? Simply, the Na- have declared their intent to obtain technology that we have today. We tional Defense Act of 1999 states that it missiles capable of attacking the have the pieces of a national missile is the policy of the United States ‘‘to United States, and are succeeding in defense system with proven tech- deploy as soon as technologically pos- doing so. These include launches that nology. However, the risk to develop- sible a National Missile Defense system have been made from North Korea and ment lies not in the pieces but in the capable of defending the territory of China, the old missile fields of the integration of these pieces into an ef- the United States against limited bal- former Soviet Union—now in the Com- fective system in a timely manner, listic missile attack (whether that is monwealth of Independent States. I which is exactly what this bill does. accidental, unauthorized or delib- happen to believe that very soon Iraq, When we talk about the term ‘‘techno- erate).’’ Iran, Libya, India, and Pakistan will logically possible,’’ it includes system The bill’s policy statement is iden- have the same capability. integration. There is no date in the tical to that of S. 1873, which was pro- Two of the worst proliferators of bal- bill. The bill just calls for the policy to posed during the 105th Congress, except listic missiles are North Korea and deploy when technologically possible. for the addition of the statement that Russia. North Korea has tested a mis- During a February 3, 1999, Sea Power missile defense is subject to the au- sile capable of attacking Alaska and interview, General Shelton said: March 16, 1999 CONGRESSIONAL RECORD — SENATE S2721 The simple fact is that we do not have the is, before we decide to deploy will only this is a bipartisan bill. This bill was technology to field a national missile de- place us at the mercy of a threat we al- introduced by Senator COCHRAN and fense. . . . My colleagues—the Joint Chiefs ready know is out there. Senator INOUYE, and the exact same and I—believe that when we have the tech- Let me speak a little bit about the nology for NMD, we ought to have the capa- bill in the 105th Congress had three bility to be able to transition right into the cost of the system. With regard to the Democrat cosponsors, with four voting deployment, if the threat warrants. national missile defense budget, on one for cloture. A followup on that, Ted Warner, As- hand, the administration added $600 Let me end with a final conclusion sistant Secretary of Defense for Strat- million from its fiscal year 1999 emer- from the Rumsfeld report and our abil- egy and Threat Reduction, said that gency supplemental but has yet to put ity to protect the threats for the fu- the threat is no longer the issue hold- forward exactly where this money will ture: ing back national missile defense, but be spent. There was discussion to use Therefore, we unanimously recommend technical feasibility is all that drives part of this money for the Wye peace that U.S. analyses, practices and policies agreement. Then the administration that depend on expectations of extended deployment. warning of deployment be reviewed and, as During a February 3, 1999, Armed added $6.6 billion over the 5-year plan for the national missile defense but appropriate, revised to reflect the reality of Services hearing, Secretary Cohen an environment in which there may be little stated that the Department is commit- pushed the majority of the money into or no warning. the outyears, making it vulnerable to ted to advancing its missile defense ef- I yield the floor, Mr. President, and I future cuts and the whims of another forts as technology risks allow, with- suggest the absence of a quorum. out any mention of when the threat is administration. I happen to believe The PRESIDING OFFICER. The there. He admits that the threat is that we should field an NMD system as clerk will call the roll. here now. soon as it works. Given that most of The legislative clerk proceeded to I will discuss the architecture of a the system is technologically feasible call the roll. national missile defense system. The already, we should be putting money in Mr. LEVIN. Mr. President, I ask architecture for national missile de- military construction and procurement unanimous-consent that the order for fense consists of three pieces: the bat- starting in fiscal year 2000 and deploy the quorum call be rescinded. tle management system, the radars much earlier than the year 2005. The PRESIDING OFFICER. Without that detect incoming missiles, and the To make a few comments about the objection, it is so ordered. booster and ground-based interceptor ABM Treaty and the treaty ratifica- Mr. COCHRAN addressed the Chair. that will comprise our response. tion, this bill is not about the ABM The PRESIDING OFFICER. The Sen- The battle management command, Treaty, specific architecture, deploy- ator from Mississippi. control and communications system ment dates, or reports. The cold war is Mr. COCHRAN. Mr. President, has will receive data on the incoming mis- over, and we shouldn’t hold to the cold anyone propounded the unanimous- siles, calculate the number of intercep- war ways of protecting ourselves, the consent request? tors needed to destroy the missiles, and ABM Treaty. MAD, referred to as mu- The PRESIDING OFFICER. No. monitor the status of the test ele- tually assured destruction, should not UNANIMOUS-CONSENT AGREEMENT ments, giving decisionmakers a rule our defense posture. We are no Mr. COCHRAN. Mr. President, I ask prioritized set of choices for our re- longer facing a superpower but now unanimous consent that there now be sponse. Portions of this system have face rogue states. 20 minutes for debate on the pending already been tested and performed We keep hearing that if we deploy a amendment, with the debate divided as flawlessly in previous tests. missile defense system, Russia will not follows: 10 minutes for Senator LEVIN; 5 Our current detection system con- ratify START II. They have used this minutes for Senator LANDRIEU; 5 min- sists of a combination of upgraded threat entirely too many times—in the utes for Senator COCHRAN. I further ask early warning radars, new ground- bombing of Iraq, they used it; in the unanimous consent that following that based radars and our space-based sat- sanctions for missile proliferation with debate, the Senate proceed to a vote ellites. Once the satellites detect a Iran. on, or in relation to, the amendment, launch, they will pass the data to our As columnist Charles Krauthammer with no other amendments in order ground-based radars, which will create wrote: prior to the vote. a detection net to gather high-fidelity What standing does Russia, of all nations, The PRESIDING OFFICER. Without data on the incoming missile that will have to dictate how and whether the United objection, it is so ordered. help our interceptor strike its target. States will defend itself? Russia is the prin- Mr. LEVIN addressed the Chair. The upgraded early warning radars cipal supplier to Iran of the missile and nu- The PRESIDING OFFICER. The Sen- have been rigorously tested using both clear technology that could one day turn ator from Michigan. computer simulations and actual test New York into a Hiroshima. Mr. LEVIN. Mr. President, the launches and are more than capable of The administration has been saying amendment of Senator LANDRIEU that performing their mission. that any national missile defense is not is pending is a very simple and a very Their replacement, a space-based in- directed at Russia. National Security straightforward amendment, but it is a frared radar system, will vastly im- Adviser Sandy Berger said: vital amendment. It will make a major prove our detection. Moreover, our tar- It’s directed at rogue states that have long difference in this bill, because if this geting capabilities will be increased range missiles. These are threats not only to amendment is adopted, this bill will with the eventual deployment of a us, but to the Russians. contain two policy statements. It now complementary low space-based infra- In conclusion, Mr. President, a firm contains but one. The policy statement red system which performs cold-body policy to build a defense against ballis- that it currently contains has to do tracking of incoming missiles. tic missiles will send a clear message with the deployment of a missile de- The least proven piece of the archi- to rogue states that they are wasting fense system. The policy statement, tecture may very well be the booster their money building ballistic missiles which the Landrieu amendment will and interceptor. Various parts of the with which to attack or threaten the add, is that it is the policy of the interceptors, such as the seeker, have United States. If rogue countries de- United States to seek continued nego- been tested many times, and the test cide to ignore this message, the United tiated reductions in Russian nuclear objectives have been met. Actually, States will be prepared to protect itself forces. just yesterday the PAC–3 missile col- as soon as the technology is ready This is a very significant policy lected, detected, tracked and gauged against such attack or threat of at- statement, and I want to take just a and then hit an incoming test missile. tack. minute and explain why. The technology exists to build a na- The bill is a policy declaration, mak- In my opening comments on this bill, tional missile defense system. Further ing clear to the citizens, allies, and ad- I addressed what I consider to be a testing of integration should show versaries of the United States that it number of flaws or omissions in this whether the system is ready to deploy. will not remain defenseless against a bill. I talked about the fact that there Requiring more studies and analysis to ballistic missile attack. I believe there is no reference here to ‘‘operational ef- see if the technology is here, which it is a need to have a bipartisan bill, and fectiveness.’’ One can look at the word S2722 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘effective’’ in this bill’s language and as being important, in terms of consid- Hopefully, someday we will have a argue, I think reasonably, that oper- ering national missile defense deploy- cost-effective, operationally effective ational effectiveness is included in that ment, is the effect of that deployment national missile defense system. And term ‘‘effectiveness.’’ Nonetheless, I on nuclear arms reductions. Nobody is hopefully, we can take that step after think the bill would be stronger if that going to give Russia or any other coun- negotiating modifications with the were clearer. That was one of the try a veto over whether or not we de- Russians to that treaty, so that we can issues which was raised. ploy a national missile defense system. proceed consistent with a cooperative It is a very important question to our That issue has got to be resolved in relationship with the Russians and not uniformed military and to the Sec- terms of our own security. If it adds to in a confrontational way. If we cannot retary of Defense, because they want to our security, we should do it. If it di- do it cooperatively and with an amend- be sure that before any decision is minishes our security, we should not. ment to that treaty, and if our security made to deploy, that we have an oper- But whether or not it adds to our se- interests indicate that we should do it ationally effective system, that it curity is dependent upon a number of because we have something operation- works. And those are not just casual factors. And one of those factors is the ally effective and cost effective, and words. ‘‘Operational effectiveness’’ are effect on the nuclear weapons reduc- the threat is there, then we should do words that have a very important tech- tion program on Russian soil. This has it anyway. nical meaning to our military. been pointed out at the highest level But what the Landrieu language does I also pointed out in my opening re- between President Clinton and Presi- is state a very important policy objec- marks that there was no reference in dent Yeltsin. In their Helsinki summit tive that I hope all of us share: to seek here to cost. Now there is. statement in March of 1997, they em- continued negotiated reductions in With the Cochran amendment that phasized—and these are their words— Russian nuclear forces. It is that was adopted earlier this afternoon, we ‘‘the importance of further reductions straightforward. It is that important. I now at least have an acknowledgment in strategic offensive arms’’ and they commend the Senator from Louisiana that the usual authorization and ap- recognized explicitly, in their words, for framing an amendment in a way propriation process is going to apply to ‘‘the significance of the ABM Treaty which hopefully will attract broad bi- national missile defense. The author- for those objectives.’’ partisan support but at the same time izers and the appropriators naturally Secretary Cohen, has recognized and makes a very important addition to look at cost. So there is now, at least stated the importance of that treaty this bill by setting forth, if this is in this bill with the adoption of the between ourselves and Russia in terms adopted, two important policies of this Cochran amendment, a way in which of accomplishing these nuclear arms Government. the cost issue will be addressed in the reduction objectives. Ms. LANDRIEU addressed the Chair. years to come. Sandy Berger, in a letter which he The PRESIDING OFFICER. The Sen- Another factor which the uniformed has addressed to us, has recognized and ator from Louisiana. Ms. LANDRIEU. I thank the Chair. military and our civilian leadership stated the importance of that treaty Mr. President, I thank our ranking wanted to look at is the threat. I think between ourselves and Russia in terms of reducing nuclear arms and the member, the Senator from Michigan, it is clear to most of us that there is a for his good work in this area. He is a threat that was not predicted to come threat of proliferation to this country. In his letter he said: national leader and has been outspoken this quickly but which is either here or on this issue. His guidance and counsel will soon be here from states such as The Administration strongly opposes S. 257 because it suggests that our decision on de- have been very important as we have North Korea. ploying this system should be based solely worked through this very important Finally—and this was the one which on a determination that the system is ‘‘tech- piece of legislation. I thank him. to me was the greatest sticking point— nologically possible.’’ This unacceptably I also thank the Senator from Mis- is the omission in this bill, until Sen- narrow definition would ignore other critical sissippi for his graciousness and being ator LANDRIEU’s amendment was intro- factors that the Administration believes open to working out this bill—although duced and hopefully will be adopted, of must be addressed when it considers the de- simple, it is quite important and quite ployment question in 2000. ... the acknowledgment of the importance historic—and to make sure it is done in of continuing to negotiate reductions And then he went on to say: the right and appropriate way. in Russian nuclear forces. Those reduc- A decision regarding national missile de- I am convinced, Mr. President, that if tions are critically important to our fense deployment must also be addressed this amendment I have offered, on be- within the context of the ABM Treaty and security. Those reductions have been half of myself, Senator LEVIN, and carried out, and hopefully additional our objectives for achieving future reduc- tions in strategic offensive arms through some of my colleagues here and on the reductions will be carried out, because START II and [START] III. The ABM Treaty other side of the aisle, is adopted, it we have a treaty with Russia which has remains a cornerstone of strategic stability, will enable us to vote in good faith and allowed for these reductions to be car- and Presidents Clinton and Yeltsin agree in good conscience for this bill, which I ried out in a way which is strategically that it is of fundamental significance to have said earlier I support but have stable. achieving the elimination of thousands of some hesitation. That treaty, called the Anti-Ballistic strategic nuclear arms under these treaties. This amendment will make sure it is Missile Treaty, has been critically im- What this amendment before us does the policy that we have a national mis- portant to nuclear arms reductions. is simply acknowledge the policy of the sile defense system capable to deploy, Hopefully, there will be further reduc- United States to seek continued nego- as soon as technologically possible, an tions negotiated. Hopefully, the Duma tiated reductions in Russian nuclear effective system and one that also will ratify START II. But it is impor- forces. That is all that it says. In that states, with this amendment, that tant that we be aware of the fact that sense it is very straightforward, very while we are developing this we will arms reductions, nuclear arms reduc- direct. But it also, to me at least, and continue to negotiate reductions in tions, are very important in terms of I think to many other Members of this Russian nuclear forces. It is the policy, reducing proliferation threats and very body, acknowledges that we have a a joint policy. It makes this bill important in terms of the terrorist number of policy goals that we should stronger and better. And it enables us threat. be achieving. to pass this bill that recognizes the If we act in such a way that leads One is the deployment of an effective threat is real, that the world has Russia to stop the reduction of the nu- national missile defense system to changed significantly. clear weapons on her soil, to stop the meet a threat—I believe that is a le- The record is replete, as I have men- dismantling of the nuclear weapons on gitimate policy goal that Senator tioned earlier in my remarks, with hos- her soil, to stop negotiating further re- COCHRAN’s bill sets forth—a policy to tile neighbors to the United States, ductions in nuclear weapons, we are deploy a cost-effective, operationally with the development of these weapons taking a very dangerous step in terms effective national missile defense to that could, in fact, now threaten parts of our own security. meet a threat. We do not have that sys- of our homeland—Hawaii, for instance, That is why the fourth point which tem yet. It is being developed as quick- which is why the distinguished Sen- our uniformed military has pointed to ly as we possibly can. ators from Hawaii are supporting this March 16, 1999 CONGRESSIONAL RECORD — SENATE S2723 bill. And it is clear to many of us now I yield back whatever time remains, pound a unanimous consent request re- that this threat is more real than ever and I ask for the yeas and nays on the garding the amendments that would be before, so the need for this bill is im- amendment of the Senator from Lou- in order to the bill and a time agree- portant. isiana. ment on each, in the hope that we can I think this amendment helps to The PRESIDING OFFICER. Is there a complete action on this bill tomorrow strengthen the bill. It most certainly sufficient second? and have final passage. If we do get the will enable several of us on this side of There is a sufficient second. agreement, we would then proceed to the aisle to vote for this bill and to The yeas and nays were ordered. hear any further statements that Sen- pass it with bipartisan support and, I Mr. LEVIN. Mr. President, a brief 10 ators might have on the bill tonight. believe, with the administration’s sup- seconds. As I indicated earlier, I have Senator ASHCROFT, I know, is here and port. been informed by the President’s Na- available to speak on the bill, but there I thank my distinguished ranking tional Security Adviser that if this would be no further votes on amend- member. I thank the author and spon- amendment is adopted, the rec- ments tonight. sor of this bill, and I yield back the re- ommendation to the President to veto UNANIMOUS-CONSENT AGREEMENT maining time I have. this bill will be withdrawn. I think Mr. COCHRAN. Mr. President, I ask I strongly urge my colleagues to give that is a very significant development unanimous consent that the following consideration to this amendment and I think folks may want to consider amendments be the only amendments which will make a good bill even bet- that as part of the overall debate on remaining in order, that they be sub- ter. this amendment. ject to first- and second-degree amend- Mr. HELMS. Mr. President, I am The PRESIDING OFFICER. The ments where applicable, and they must pleased to support the amendment of question is on agreeing to the amend- be relevant to the first-degree they the able Senator from Louisiana (Ms. ment. The yeas and nays have been or- propose to amend. LANDRIEU) because I interpret that it dered. I further ask that all first-degree refers to the policy of pursuing Russian The clerk will call the roll. amendments be limited to 1 hour, ratification of the START II Treaty. The legislative clerk called the roll. equally divided in the usual form for Any proposed reduction below the Mr. REID. I announce that the Sen- debate, and any second-degree amend- START II level should, of course, be ator from California (Mrs. FEINSTEIN) ments limited to 30 minutes in the considered on its specific merits. is absent because of illness. usual form. I commend Senator LANDRIEU for of- The result was announced—yeas 99, I further ask that following the dis- fering the amendment consistent with nays 0, as follows: position of the listed amendments, the my interpretation stated above. [Rollcall Vote No. 50 Leg.] bill be immediately advanced to third The PRESIDING OFFICER. The Sen- YEAS—99 reading and passage occur, all without ator from Mississippi. Abraham Enzi Lugar intervening action or debate, and that Mr. COCHRAN. Mr. President, as I Akaka Feingold Mack no motions be in order other than mo- indicated earlier, I support the amend- Allard Fitzgerald McCain tions to table. ment offered by the distinguished Sen- Ashcroft Frist McConnell Baucus Gorton Mikulski The list is as follows: a Bingaman ator from Louisiana and thank her for Bayh Graham Moynihan amendment on operational success of her contribution to strengthening the Bennett Gramm Murkowski system; Conrad amendment, space- legislation. Like the statement of pol- Biden Grams Murray based missile defense; Dorgan amend- icy already contained in S. 257, this is Bingaman Grassley Nickles Bond Gregg Reed ment on NMD deployment; a second a straightforward statement of an im- Boxer Hagel Reid Dorgan amendment on NMD deploy- portant national security goal. Breaux Harkin Robb ment; Harkin amendment on study on The high levels of strategic forces de- Brownback Hatch Roberts Bryan Helms Rockefeller relevant risks, and a second amend- ployed during the cold war are no Bunning Hollings Roth ment on condition on relevant; Kerry longer necessary in today’s vastly Burns Hutchinson Santorum amendment, relevant; a Levin amend- changed strategic environment. Al- Byrd Hutchison Sarbanes ment, relevant; a Robb amendment, ready our two countries have reduced Campbell Inhofe Schumer Chafee Inouye Sessions relevant; and a Wellstone amendment, levels significantly through START I Cleland Jeffords Shelby relevant. and will reduce them further under Cochran Johnson Smith (NH) The PRESIDING OFFICER. Is there START II. Both policies articulated Collins Kennedy Smith (OR) Conrad Kerrey Snowe objection? here, our determination to deploy a Coverdell Kerry Specter Mr. LEVIN. Mr. President, we have missile defense against limited threats Craig Kohl Stevens no objection to that, and I believe that and our continued interest in further Crapo Kyl Thomas all of the Senators on this side of the offensive reductions, are in our inter- Daschle Landrieu Thompson DeWine Lautenberg Thurmond aisle now are included. I wanted to ests. Of course, inclusion of both in Dodd Leahy Torricelli make sure that they all understand this bill does not imply that one is con- Domenici Levin Voinovich there is, in addition to this list, a time tingent upon the other, but that is Dorgan Lieberman Warner agreement here, as the Senator from Durbin Lincoln Wellstone completely consistent with what we Edwards Lott Wyden Mississippi has indicated. have been saying all along—that defen- The PRESIDING OFFICER. Is there sive and offensive reductions are not NOT VOTING—1 objection? The Chair hears none, and it incompatible. I urge all Senators to Feinstein is so ordered. support the amendment. The amendment (No. 72) was agreed Mr. COCHRAN. Mr. President, in I also urge Senators, if they have to. light of this agreement limiting other amendments, to let us know Mr. COCHRAN addressed the Chair. amendments, there will be no further about them. I am hoping that we can The PRESIDING OFFICER (Mr. votes this evening, and I thank all col- get an agreement that would identify SMITH of Oregon). The Senator from leagues for their cooperation. any other amendments and that we can Mississippi. The PRESIDING OFFICER. The Sen- have a time limit agreed upon with re- Mr. COCHRAN. Mr. President, I move ator from Missouri. spect to those amendments. If there to reconsider the vote. PRIVILEGE OF THE FLOOR are no other amendments, it would be Mr. LEVIN. Mr. President, I move to Mr. ASHCROFT. Mr. President, I ask our expectation that we could go to lay that motion on the table. unanimous consent that Stephanie third reading within a short period of The motion to lay on the table was Sharp of my staff be granted the privi- time. Senators communicating that to agreed to. lege of the floor during the pendency of the managers or their intentions to the Mr. COCHRAN. Mr. President, we un- my remarks. managers would be appreciated very derstand that it is possible to reach an The PRESIDING OFFICER. Without much so we could go forward with the agreement on the identity of amend- objection, it is so ordered. expeditious handling and conclusion of ments that are yet to be offered to the Mr. ASHCROFT. Mr. President, I rise the bill. bill. I will, on behalf of the leader, pro- today in strong support of S. 257, the S2724 CONGRESSIONAL RECORD — SENATE March 16, 1999 National Missile Defense Act of 1999. I year 2000. This effort was suspended, Iran and North Korea, have come to commend the two principal sponsors of and the budget for the national missile the threshold of acquiring ICBM capa- the bill, Senator COCHRAN and Senator defense system was slashed by an as- bility, this administration and many of INOUYE, for their commitment to this tounding 71 percent in the first year of my Democratic colleagues continue to legislation and for their dedication to the Clinton administration. oppose legislation which simply states the national security of our country. Here is a chart which shows our com- that it is United States policy to de- The fact that we are having a debate mitment to missile defense. During the fend the American people as soon as we on this bill at all, in the sense of trying Reagan and Bush years, we saw a con- can. to overcome opposition to this legisla- sistent and strong commitment to mis- Winston Churchill once said, ‘‘Occa- tion, is somewhat troubling to me. The sile defense. In the years when the sionally you must take the enemy into foreign missile threat has come to our budgeting was under the control of this consideration.’’ This administration very door in the last 6 years, and yet administration, we saw an astounding would be well advised to heed Mr. the administration and many of my drop, a 71-percent drop in the funding Churchill’s words and to grasp the seri- Democratic colleagues continue to op- to develop a national missile defense ousness of the multiple missile threats pose this legislation, which simply says system. posed to the United States. we will defend the American people as Now, after 4 years of undermining At least 25 countries have or are pur- soon as we can. the National Missile Defense Program, suing weapons of mass destruction pro- A recent poll shows that more than the administration is rushing to in- grams that could threaten not only 85 percent of Americans favor the de- crease the funding levels because the their neighbors but the stability of this ployment of a missile defense system threat can no longer be ignored or de- globe, and nearly all of those countries and that three out of every four Ameri- nied. also have ballistic missiles of one kind cans were surprised to learn that the The administration has used faulty or another. The technology is out there United States cannot destroy an in- intelligence estimates of the foreign and is being proliferated at an alarm- coming ballistic missile. The American missile threat to justify a missile de- ing rate. people would be even more surprised to fense policy of delay and obfuscation. In spite of these rising missile learn that they remain defenseless Based in part on a National Intel- threats to the United States, the ad- today, not so much due to the cost or ligence Estimate in 1995 that said the ministration continues to speak of the technological hurdles of missile de- Continental United States would not Antiballistic Missile Treaty as the cor- fense as to a lack of political leader- face a new ballistic missile threat until nerstone of strategic stability. Al- ship here in Washington. 2010, the President vetoed the FY 1996 though the legal status of the treaty is The administration’s record on mis- defense authorization bill because of in doubt after the dissolution of the sile defense has been plagued with the language which called for the deploy- Soviet Union, the accord continues to same inconsistency and lack of fore- ment of a missile defense system by guide administration policies that have sight that is characteristic of our more the year 2003. undermined the entire missile defense general foreign policy over the last 6 Now, 3 years after the President’s effort. years. In each of the critical areas that veto, with North Korea and Iran devel- As William Graham, former science we are facing today in deploying a mis- oping ballistic missiles to strike the adviser to President Reagan, stated be- sile defense system—modifications of United States, with China modernizing fore the Senate Foreign Relations the Anti-Ballistic Missile Treaty, pro- its nuclear weapons, possibly with U.S. Committee: gram management and budgeting, and technology, and with the threat of ac- Not only has the ABM Treaty prohibited the assessment of the missile threat— cidental missile launch from Russia the deployment of national missile defenses, the administration is having to reverse rising, 2003 is, if anything, too late to it has led to the prohibition of funding for astoundingly shortsighted policies deploy a national missile defense sys- the research and development on systems adopted only a few years ago. tem. which might, if deployed, conflict with the Secretary Albright has encountered ABM Treaty. Moreover, it has made Defense The administration has relied on Department program managers unwilling firm resistance from Russia in modify- faulty intelligence to our collective even to propose missile defense systems and ing the Anti-Ballistic Missile Treaty, peril. North Korea’s test of the Taepo programs that might. . .be viewed as con- but Russia eagerly discussed possible Dong 1 in August of 1998 was the last flicting with the largely ambiguous details modifications to the treaty in the nail in the coffin of the National Intel- of the ABM Treaty. . . . Ross-Mamedov talks in 1992. To Rus- ligence Estimate and a strong indict- Mr. Graham’s point is simply this: sia’s great surprise, one of the first ment of the administration’s compla- that the ABM Treaty has kept people things President Clinton did after com- cency in preparing for an imminent in the administration from even ex- ing to office was suspend this dialogue foreign missile threat. But the Taepo ploring alternatives that might well on modifying the ABM Treaty. Now, 6 Dong test was a result of proliferation defend the people of this country. years later, with a greatly altered dip- trends that have been detectable and This administration’s commitment lomatic landscape, the window of op- discernible for over a decade. to the ABM Treaty has precluded our portunity for active Russian coopera- We could see the threat coming as best space-based options for national tion on modifying the treaty may be proliferation accelerated in the 1980s. missile defense and limited the more permanently closed. Regardless of We saw the threat arrive when the advanced capabilities of our theater one’s views on the ABM Treaty, squan- largest single loss of life of U.S. sol- missile defense programs. dering opportunities such as the Ross- diers in the Gulf War occurred when an A host of critical missile defense ini- Mamedov dialogue is serious neg- Iraqi ballistic missile killed 28 of our tiatives under the Bush administration ligence. soldiers and wounded 89 more on Feb- were derailed or downsized in 1993. Bril- The lack of foresight in program ruary 25, 1991. liant Eyes, now known as SBIRS Low, management and budgeting for missile The threat was apparent by 1991, at a satellite program to provide essential defense also has undermined the devel- the latest, and that is why the Senate tracking capabilities for national mis- opment and deployment of an effective passed the National Missile Defense sile defense, has seen its deployment system. When President Clinton en- Act that year as part of the Defense delayed by as much as a decade. tered office in 1993, promising missile Authorization bill. The National Mis- Brilliant Pebbles, a system of hit-to- defense initiatives fostered under the sile Defense Act was a strong piece of kill vehicles in low Earth orbit and Bush administration were limited or legislation calling for modifications to still potentially the best national mis- curtailed. Ambassador Hank Cooper, the Antiballistic Missile Treaty and sile defense option, was canceled as a President Bush’s Director of the Stra- calling for deployment of an effective result of this administration’s policies. tegic Defense Initiative Organization, missile defense system by a date cer- A space-based national missile de- had a procurement program in place in tain, that date to be 1996. fense system could best defend the 1992 for the first site of a ground-based Yet now, 8 years after passage of the American people. So why isn’t it being missile defense system which poten- National Missile Defense Act, 8 years pursued? Even President Clinton’s cur- tially could have been deployed by the in which two terrorist governments, rent Director of the Ballistic Missile March 16, 1999 CONGRESSIONAL RECORD — SENATE S2725 Defense Organization, General Lester Ambassador Cooper stated before the behind the Soviet arms buildup, while Lyles, stated before the Armed Serv- Senate Foreign Relations Committee: Reagan’s resolve to confront Soviet ag- ices Committee last month: . . .the 28 military personnel killed when gression, in part through the Strategic I think all of us recognize that the opti- an Iraqi Scud hit their barracks during the Defense Initiative—hastened the col- mum way to do missile defense, particularly Gulf War might have been spared if Patriot lapse of the Soviet Union. President in a robust manner in the future, is from had not been dumbed-down and delayed be- Reagan used missile defense to deter space. cause of ABM Treaty concerns. Soviet aggression, and the dissolution This is President Clinton’s Director It seems like the loss of life and the of the Soviet empire led to the reduc- of the Ballistic Missile Defense Organi- injury to dozens and dozens of others in tions in arms that always proved elu- zation. that particular incident should have sive to advocates of appeasement. Space-based national missile defense sounded a wakeup call sufficiently ur- Reagan’s success in confronting and systems have been shelved for one sim- gent to at least startle this administra- undermining Soviet tyranny was one of ple reason: this administration’s com- tion into pursuing a course of action the greatest contributions to freedom mitment to the outdated and dan- which would not be guided by an un- in modern history. As part of that gerous Antiballistic Missile Treaty. warranted commitment to the ABM broader policy, Reagan’s commitment If the administration is so concerned Treaty. to missile defense is at once a telling about the cost of missile defense, why In spite of the restrictions the Anti- indictment on the failed policies of the is it expending precious missile defense Ballistic Missile Treaty imposes on more recent past and a shining exam- dollars on the least effective systems, U.S. missile defense efforts, the admin- ple of the courage needed to chart a rather than the most effective ones ac- istration continues to view the accord course for the revitalized defense of the knowledged by the administration’s as the cornerstone of strategic stabil- American people. own Director of the Ballistic Missile ity and essential for future arms con- The legislation we are considering Defense Organization? today simply says this: We will defend If the administration is so concerned trol efforts. Although the past 27 years have demonstrated that the treaty the American people against missile about deploying a technologically attack as soon as possible. How could sound missile defense system, why is a probably accelerated the arms race rather than curtailed it, this adminis- there be opposition to this bill when ground-based system that has the high- every conflict we have fought in the est technological challenges the ad- tration remains committed to the idea that reductions in nuclear weapons past has proven that weakness and vul- ministration’s only near-term missile nerability invite aggression? We do not defense initiative? As Ambassador Coo- cannot occur unless the American peo- ple are completely vulnerable to mis- get a reduction in our vulnerability by per testified before the Senate Foreign remaining vulnerable. We get a reduc- Relations Committee in September sile attack. I want to say that again. This admin- tion in our vulnerability by showing 1996, ground-based systems are the strength. most expensive, least effective defense istration remains committed to the idea that reductions in nuclear weap- How could there be opposition to this that will take the longest to build. The bill when missiles from North Korea administration has cut the national ons cannot occur unless the American people are completely vulnerable to and Iran pose an imminent threat to missile defense budget and diverted the United States? How can there be those scarce funds into the least effec- missile attack. My view is that we deter aggression through strength, not opposition to this bill when China tive national missile defense programs. points the majority of its nuclear All of this, because the administra- through increasing our own vulner- ability. To continue to risk American weapons at the United States and has tion refuses to relinquish its tight grip implicitly threatened Los Angeles if on the ABM Treaty. lives for thoroughly invalidated arms control policies is a serious abnegation American forces defend Taiwan? Finally, the ABM Treaty is under- Mr. President, the sad truth is that of our duty to protect and defend the mining the robustness of theater mis- the United States is completely de- United States. sile defense programs. For example, fenseless against a ballistic missile Administration officials seem morti- limiting the use of additional off-site strike. George Washington once said, fied by the prospect that Russia will radars for theater missile defense pro- ‘‘If we desire to avoid insult, we must reject the START II treaty if the grams out of concerns for the ABM be able to repel it. . .’’ Why are North United States builds an effective mis- Treaty increases the cost of missile de- Korea and Iran pursuing advanced mis- sile defense. The administration seems fense exponentially. Bill Graham, sile technology at breakneck speed? to have forgotten however that the size former science adviser to Presidents These terrorist governments are seek- Reagan and Bush, states: of Russia’s nuclear stockpile will con- ing the tools of aggression because . . .the area that a surface-based intercep- tinue to decline with or without an- they know that we cannot repel their tor system can defend using only other arms control agreement. The size attacks. its. . .radar is one-tenth the area that the of Russia’s nuclear arsenal is in freefall same interceptor can defend using space- Our ambivalence and complacency in thanks in large part to one American providing an effective missile defense based sensing. Therefore, to defend the same President who returned America to the area without space-based sensing, 10 times as for American citizens and for American many missile/radar systems would have to be tried and true principle that strength interests is an unconscionable act of deployed at a cost that would be approxi- deters aggression. negligence. We should not shrink from mately 10 times as much. . .. Ronald Reagan knew that ‘‘Nations or shirk the burden of eternal vigilance So this persistent, dogged determina- do not mistrust each other because in the defense of freedom because the tion to honor an outdated treaty, the they are armed; they are armed be- cost of missile defense is high or the ABM Treaty, increases the cost of our cause they mistrust each other.’’ He technology is complicated or there will theater missile defense systems ten- confronted and deterred aggression, be difficulties to overcome in the de- fold, just to cover the same territory. and although this administration velopment of a system. In almost every theater missile de- would like the forget it, Ronald Reagan As Franklin Roosevelt said in Sep- fense program we have, serious con- used ballistic missile defense to hasten tember 1941, ‘‘Let us not ask ourselves straints have been imposed to try to the demise of the Soviet Union. whether the Americas should begin to limit the ICBM intercept capability of This particular graph shows the level defend themselves after the first at- regional theater missile defense sys- of nuclear warheads maintained by the tack, or the fifth attack, or the tenth tems. Software and radar of the Navy United States and the Soviet Union, attack, or the twentieth attack. The Aegis cruisers have been constrained to later Russia, over the last several dec- time for active defense is now.’’ limit their ability to track ballistic ades. The ABM Treaty was negotiated Mr. President, those words ring as missiles. Software for THAAD has been in 1972, and shortly after the ABM true today as they did before World constrained to limit its intercept capa- Treaty came into force, we see the lev- War II and reflect the commitment of bility. The ballistic missile intercept els of Soviet nuclear warheads begin to the American people to safeguard the capability of the Patriot system was increase dramatically. This graph il- blessings of liberty. The defeatist poli- restrained until the urgency of the gulf lustrates that America’s weaknesses cies which would leave America vulner- war. under the ABM Treaty was one factor able to nuclear, chemical or biological S2726 CONGRESSIONAL RECORD — SENATE March 16, 1999 warheads have been followed for too ongoing negotiations with Russia con- necessary today. Instead, the missile long, to the great detriment of our cerning the Anti-Ballistic Missile Trea- defense system we are talking about country. We must return to the sound ty. Mr. President, if that is the case, today is a limited system, designed to policies of an active defense system be- then so be it. The ABM Treaty was protect the United States from rogue- fore a missile strike on U.S. soil signed with the Soviet Union. That state ballistic missile launches and ac- eclipses the catastrophe of Pearl Har- state no longer exists and as such the cidental launches—precisely the kind bor. We do not have another 6 years to treaty should be declared void. A num- of threats that will not be countered by waste, Mr. President. I applaud Sen- ber of constitutional scholars have our traditional reliance on deterrence. ator COCHRAN and Senator INOUYE for adopted this view. Nevertheless, if it is The truth is, Mr. President, we do their leadership on ballistic missile de- the policy of this administration to not currently possess the ability to fense and I urge my colleagues in the honor the treaty, that policy should protect the American people from Senate to pass this legislation. not be permitted to impede the deploy- these threats. But we should. The legis- Mr. SHELBY. Mr. President, I stand ment of a missile defense system. The lation we are debating today would today in support of a very simple yet administration can negotiate enough take the first step toward protecting essential piece of legislation, the Na- flexibility into the treaty to permit a the United States by declaring it to be tional Missile Defense Act of 1999. The viable national missile defense. the official policy of the United States bill states: Mr. President, the bill we are consid- to deploy a national missile defense It is the policy of the United States to de- ering states that this nation will de- system. The bill before us does not ploy as soon as is technologically possible an ploy a system when it is techno- identify a particular system for deploy- effective National Missile Defense system ca- logically feasible. That technology is ment It does not authorize or appro- pable of defending the territory of the United being developed as we speak and is priate a single dollar. These are deci- States against limited ballistic missile at- nearly at hand. However, I would urge tack, whether that attack is accidental, un- sions that will be left up to this and fu- my colleagues in the months and years ture Congresses. Instead, the National authorized, or deliberate. ahead to continue investment in mis- That is all the language does. Mr. Missile Defense Act simply states that sile defense support technology. It is the United States should deploy a mis- President, this bill may concern rocket an important yet often overlooked in- science but it does not take a rocket sile defense system to protect the vestment. Under funding support tech- American people. scientist to realize the inherent neces- nology today will jeopardize the future sity of this legislation for the safety of effectiveness of any missile defense Mr. President, perhaps the only situ- this country. system. Rapid changes in technology ation worse than not having an ade- Currently, our nation is defenseless and potential development of missile quate missile defense system to protect against the threat of ballistic missile defense countermeasures by our adver- the American people, is deploying a attack. Some have shrugged their saries require that this nation main- system that has not been proven fea- shoulders and said, ‘‘So what, America tain its technological superiority. That sible. I am pleased with the recent an- won the cold war without a missile de- superiority does not come without a nouncement by the Clinton administra- fense. The Soviet Union never attacked price. However the cost of losing our tion that they plan to increase spend- us and no one else will either.’’ Yet the technological edge is one I hope this ing on missile defense research by $6 fact that the United States won the body never has to consider. billion over the next five years. I ap- cold war is the very reason that Amer- Mr. President, some well intentioned plaud the administration’s decision to ica faces a new and very real missile opponents of this bill have stated that fund missile defense in the fiscal year threat today. treaties and superior intelligence gath- 2000 Defense budget so that a decision The world is not as simple in 1999 as ering will protect us from a future bal- to deploy a missile defense in 2005 it was during the cold war. Today, a listic missile attack. This is nothing could be made as early as June of next much less stable Russia still maintains more than a gamble with the lives of year. We should all take note of the an awesome nuclear arsenal. Com- the American people. Treaties have outstanding scientific and engineering munist China is developing into a su- been broken throughout history. Intel- efforts which have been ongoing for perpower with interests which are fre- ligence is effective only when properly years in the Defense Department to get quently adverse to our own. That de- interpreted and disseminated. Ask the us to this point. This administration velopment includes a force of ballistic men of the U.S.S. Arizona at the bot- deserves credit for vigorously attack- missiles capable of striking the con- tom of Pearl Harbor. Intelligence col- ing the very daunting set of scientific tinental United States. And as we have lection did them little good. Mr. Presi- and engineering challenges by which a seen in recent weeks, China is persist- dent, I am not willing to gamble with bullet can strike another bullet. At the ent in its efforts to acquire the tech- the lives of the American people. I con- same time, development of a system nology necessary to make its missiles tinue to strongly support the National will only come through further re- more accurate and deadly. Missile Defense Act of 1999 and I urge search and development and a rigorous Equally disturbing, today’s threat in- my colleagues to do the same. testing regime. cludes the use of ballistic missiles by Mr. KERREY. Mr. President, I rise Many opponents of this legislation rogue nations and terrorist groups. The today to offer my support for S. 257, have asked why should we take this disintegration of the Soviet Union has the National Missile Defense Act cur- step now? It’s true, the threat of ballis- exacerbated the proliferation of missile rently pending before the Senate. I do tic missiles is not a new one. The technology and lethal payloads. Iran so with the firm belief that passage of American people have lived for decades and North Korea are developing and this legislation will help keep the under this threat. In fact, during the testing longer range missiles. Both American people safe. Given the seri- cold war, the Soviet Union had thou- countries are potential adversaries in ousness of the threat posed by ballistic sands of nuclear-tipped ballistic mis- regions vital to the national interest of missiles, it is our duty to act to con- siles pointed, ready to shoot at Amer- the United States. Both countries have front this threat through the develop- ican cities. What has changed is the ties to international terrorist groups. ment of a national missile defense sys- source of the ballistic missile threat. With proliferation rampant, these two tem. During the cold war, and even today, countries will surely not be the last to I believe some of the controversy sur- we used the power of deterrence to pro- acquire long range missile technology. rounding this piece of legislation tect ourselves. Nations like Russia and The failure to deploy an effective na- comes from the misperception of what China know that an attack on America tional missile defense system could national missile defense really is. Mr. would be met with an immediate and subject this nation to diplomatic President, we are not proposing to overwhelming response by United blackmail from any rogue state or ter- build a star wars-style system. We are States forces. They were and still are rorist group that can purchase or steal not proposing to build a system de- deterred by a calculation of their own ballistic missile technology. signed to counter a massive nuclear at- self-interest. However, the underlying Some have argued, as does the ad- tack from the Soviet Union. That plan assumption of deterrence is rational ministration, that this bill will disrupt was unworkable in the 1980s and is un- behavior by the other side. None of the March 16, 1999 CONGRESSIONAL RECORD — SENATE S2727 emerging threats—whether they be ter- defense, I do not believe Russian oppo- secure its nuclear arsenal. The best rorist states or rouge or desperate indi- sition is insurmountable. form of missile defense is helping Rus- viduals—can be counted on to respond Just as our allies like Britain and sia destroy its missiles. rationally to the threat of retaliation. France realize United States national Mr. President, my support for the bill In the past, I have voted against clo- missile defense is not directed against before you comes from my belief that ture on the motion to proceed to this them, the Russians can be convinced its passage will make Americans safer. bill. However, two distinct events over the threats we seek to counter through The time to prepare for the emerging the last few months have highlighted missile defense come from unauthor- threat of ballistic missiles is today. the changed nature of the threat and ized and rouge-nation launches. Fur- The legislation before us sets us on the have led me to support this legislation. thermore, these are threats—given path to confront these threats in a real First, the release of the Rumsfeld Com- their proximity to countries like Iraq, and manageable way. I strongly en- mission Report last July stated that Iran, and North Kora—Russia must courage my colleagues support for this the newer ballistic missile threats are also confront. Although Russia has de- legislation and I yield the floor. developing from countries like Iran, ployed an ABM system around Moscow, Mr. COCHRAN addressed the Chair. Iraq, and North Korea. The report went there is nothing particular about Rus- The PRESIDING OFFICER. The Sen- on to state that these nations could be sia that will make it impervious to ator from Mississippi. able to acquire the capability to inflict these threats. Mr. President, in their f major destruction on the United States vulnerability I see a chance to engage within about 5 years of a decision to Russia; to work cooperatively to con- MORNING BUSINESS acquire ballistic missiles. Further- front the mutual threat of ballistic Mr. COCHRAN. Mr. President, know- more, the Rumsfeld Report warmed missile proliferation. By jointly devel- ing of no other Senators seeking rec- that these emerging threats had more oping national missile defense with ognition on the bill, I now ask unani- mature capabilities than previous as- Russia, we will make our citizens safer mous consent that the Senate proceed sessments has thought possible. and improve our bilateral relationship. to a period of morning business, with Then, almost on cue, North Korea Similarly, the problems presented by Members permitted to speak for up to tested the Taepo Dong I missile on Au- the ABM Treaty may in fact present 10 minutes each. gust 31, 1998. The details of this test opportunities. There is no reason why The PRESIDING OFFICER. Without have been widely reported in the we can’t work with Russia to adapt the objection, it is so ordered. media. But the real lesson of this mis- ABM Treaty to reflect the changes f sile test was that our intelligence com- that have occurred in the world since munity was surprised by the North Ko- the treaty was signed in 1972. At that THE VERY BAD DEBT BOXSCORE reans’ ability to launch a three-stage time, we could not anticipate the pro- Mr. HELMS. Mr. President, at the missile. We saw that North Korea may liferation of ballistic missile tech- close of business yesterday, Monday, have the ability to hit parts of the nology we face today. By changing the March 15, 1999, the federal debt stood at United States with a missile with a treaty to allow each side to develop a $5,634,976,613,497.51 (Five trillion, six small payload. We also know that the limited missile defense system to pro- hundred thirty-four billion, nine hun- North Koreans continue to work on the tect from unauthorized or rogue dred seventy-six million, six hundred Taepo Dong II; an intercontinental launches, we can address the threat, thirteen thousand, four hundred nine- missile with the capability of reaching maintain the treaty, and not upset the ty-seven dollars and fifty-one cents). the United States mainland. In addi- strategic balance ABM sought to cre- Five years ago, March 15, 1994, the tion, North Korea’s nuclear capability ate. federal debt stood at $4,549,059,000,000 and nuclear ambitions turn these mis- Mr. President, I see further oppor- (Four trillion, five hundred forty-nine sile developments into a clear strategic tunity to reduce the threat of ballistic billion, fifty-nine million). warning. missiles and make significant strides Ten years ago, March 15, 1989, the Mr. President, aside from dem- in our relationship with Russia. In the federal debt stood at $2,737,036,000,000 onstrating the validity of the conclu- past, and again today, I call on the (Two trillion, seven hundred thirty- sions of the Rumsfeld Report, the President to seize this opportunity to seven billion, thirty-six million). North Korean missile test put a face on make a bold gesture to reduce the dan- Fifteen years ago, March 15, 1984, the the emerging ballistic missile threat. ger posed by United States and Russian federal debt stood at $1,465,029,000,000 There may not be a more unpredictable strategic nuclear weapons. More than 6 (One trillion, four hundred sixty-five regime on earth than that of Kim Jong years after the end of the cold war, billion, twenty-nine million). II. A government which continues to both the United States and Russia Twenty-five years ago, March 15, pour resources into weapons of mass maintain thousands of nuclear weapons 1974, the federal debt stood at destruction while its people undergo a on hair-trigger alert. My fear, Mr. $471,094,000,000 (Four hundred seventy- famine is beyond our understanding. President, is our maintenance of more one billion, ninety-four million) which But I have no doubt of North Korea’s weapons than we need to defend our in- reflects a debt increase of more than $5 willingness to use ballistic missiles—in terests is prompting Russia to keep trillion—$5,163,882,613,497.51 (Five tril- an all-out desperate act of terror— more weapons than she is able to con- lion, one hundred sixty-three billion, against United States cities. Tradi- trol. eight hundred eighty-two million, six tional threats of massive retaliation I have proposed that the President, hundred thirteen thousand, four hun- are unlikely to deter a man as unstable acting in his capacity as Commander in dred ninety-seven dollars and fifty-one as Kim Jong II. They will not likely Chief, order the immediate elimination cents) during the past 25 years. deter the Iranian or Libyan govern- of U.S. strategic nuclear forces in ex- f ments or other future rogue states. In- cess of proposed START III levels. MESSAGES FROM THE HOUSE stead, we must protect our nation Such a bold gesture would give the through a limited missile defense. Russians the security to act recip- At 10:47 a.m., a message from the Time remains for us to counter this rocally. Russia not only wants to fol- House of Representatives, delivered by threat. But we must act now. low our lead in such reductions, it Mr. Hays, one of its reading clerks, an- Mr. President, opponents of this leg- must. Russia’s own Defense Minister nounced that the House has passed the islation have valid concerns about how recently said, publicly, that Russia is following bills, in which it requests the national missile defense will affect our thinking of its long-term nuclear arse- concurrence of the Senate: relationship with Russia. I share these nal in terms of hundreds, not thou- H.R. 808. An act to extend for 6 additional concerns. Our long-term global inter- sands. To help Russia accomplish these months the period for which chapter 12 of ests are best secured by maintaining a reductions, Congress must be prepared title 11, United States Code, is reenacted. cooperative relationship with Russia. to provide funding through the Nunn- The message also announced that the While a wide variety of Russian politi- Lugar Cooperative Threat Reduction House has agreed to the following con- cal leaders have expressed their opposi- Program. We should spend whatever is current resolutions, in which it re- tion to United States national missile necessary to help Russia dismantle and quests the concurrence of the Senate: S2728 CONGRESSIONAL RECORD — SENATE March 16, 1999 H. Con. Res. 28. Concurrent resolution ex- accompanying papers, reports, and doc- ting, pursuant to law, the report of a rule en- pressing the sense of the Congress that the uments, which were referred as indi- titled ‘‘Additional Disability or Death Due United States should introduce and make all cated: to Hospital Care, Medical or Surgical Treat- efforts necessary to pass a resolution criti- ment, Examination, or Training and Reha- cizing the People’s Republic of China for its EC–2190. A communication from the Sec- bilitation Services’’ (RIN2900-AJ04) received human rights abuses in China and Tibet at retary of Defense, transmitting, pursuant to on March 2, 1999; to the Committee on Veter- the annual meeting of the United Nations law, the Department’s report entitled ‘‘The ans Affairs. Commission on Human Rights. Security Situation in the Taiwan Strait’’; to EC–2203. A communication from the Dep- H. Con. Res. 42. Concurrent resolution re- the Committee on Armed Services. uty General Counsel of the Small Business EC–2191. A communication from the Sec- garding the use of United States Armed Administration, transmitting, pursuant to retary of Energy, transmitting, pursuant to Forces as part of a NATO peacekeeping oper- law, the report of a rule entitled ‘‘Business law, the Department’s report on the Defense ation implementing a Kosovo peace agree- Loan Programs’’ received on March 10, 1999; Nuclear Facilities Safety Board for calendar ment. to the Committee on Small Business. year 1998; to the Committee on Armed Serv- EC–2204. A communication from the Direc- The message further announced that ices. tor of the Policy Directives and Instructions pursuant to section 710(a)(2) of Public EC–2192. A communication from the Under Branch, Immigration and Naturalization Law 105–277, the Minority Leader ap- Secretary for Export Administration, De- Service, Department of Justice, transmit- points the following individuals to the partment of Commerce, transmitting, pursu- ting, pursuant to law, the report of a rule en- Parents Advisory Council on Youth ant to law, notice of licenses issued for the titled ‘‘Interim Designation of Acceptable Drug Abuse: Ms. Marilyn Bader of St. export of commercial communications sat- Receipts for Employment Eligibility Ver- ellites and related items; to the Committee ification’’ (RIN1115–AE94) received on Feb- Louis, Missouri, for a one year term on Armed Services. ruary 8, 1999; to the Committee on the Judi- and Mr. J. Tracy Wiecking of Farming- EC–2193. A communication from the Under ciary. ton, Missouri, for a two-year term. Secretary of Defense for Acquisition and EC–2205. A communication from the Acting ENROLLED BILL SIGNED Technology, transmitting, pursuant to law, Assistant Secretary of Commerce and Acting The message also announced that the the Department’s report on pilot programs Commissioner of Patents and Trademarks, Department of Commerce, transmitting, pur- Speaker has signed the following en- to improve cooperation with private sector entities for the performance of research and suant to law, the report of a rule entitled rolled bill: development functions; to the Committee on ‘‘Consideration of Interocutory Rulings at S. 447. An act to deem as timely filed, and Armed Services. Final Hearing in Interference Proceedings’’ process for payment, the applications sub- EC–2194. A communication from the Under (RIN0651–AB03) received on March 11, 1999; to mitted by the Dodson School Districts for Secretary of Defense for Acquisition and the Committee on the Judiciary. certain Impact Aid payments for fiscal year Technology, transmitting, pursuant to law, EC–2206. A communication from the Chair- 1999. the Military Traffic Management Com- man of the Federal Maritime Commission, The enrolled bill was signed subse- mand’s report entitled ‘‘Current DOD Dem- transmitting, pursuant to law, the report of a rule entitled ‘‘Licensing, Financial Re- quently by the President pro tempore onstration Program to Improve the Quality of Personal Property Shipments of Armed sponsibility Requirements, and General Du- (Mr. THURMOND). Forces, Interim Progress Report’’; to the ties for Ocean Transportation Inter- f Committee on Armed Services. mediaries’’ (Docket 98–28) received on March 2, 1999; to the Committee on Commerce, MEASURES PLACED ON THE EC–2195. A communication from the Under Secretary of Defense (Comptroller), trans- Science, and Transportation. CALENDAR mitting, pursuant to law, certification that EC–2207. A communication from the Dep- The following bill was read the sec- the Future Years Defense Program fully uty Assistant Administrator for Fisheries, National Marine Fisheries Service, Depart- ond time and placed on the calendar: funds the support costs associated with the Longbow Hellfire missile multiyear procure- ment of Commerce, transmitting, pursuant S. 609. An act to amend the Safe and Drug- ment program; to the Committee on Armed to law, the report of a rule entitled ‘‘Taking Free Schools and Communities Act of 1994 to Services. and Importing Marine Mammals; Taking Ma- prevent the abuse of inhalants through pro- EC–2196. A communication from the Assist- rine Mammals Incidental to Rocket grams under the Act, and for other purposes. ant Secretary of Defense for Health Affairs, Launches’’ (I.D. 093097E) received on March 11, 1999; to the Committee on Commerce, The following concurrent resolution transmitting, pursuant to law, a report on Science, and Transportation. the Plan for Redesign of the Military Phar- was read and placed on the calendar: EC–2208. A communication from the Senior H. Con. Res. 28. Concurrent resolution ex- macy System; to the Committee on Armed Attorney, Office of the Secretary, Depart- pressing the sense of the Congress that the Services. ment of Transportation, transmitting, pur- United States should introduce and make all EC–2197. A communication from the Sec- suant to law, the report of a rule entitled efforts necessary to pass a resolution criti- retary of the Navy, transmitting, pursuant ‘‘Disclosure of Code-Sharing Arrangements cizing the People’s Republic of China for its to law, certification that the Department and Long-Term Wet Leases’’ (RIN2105–AC10) human rights abuses in China and Tibet at has converted the Fisher House Trust Fund received on March 11, 1999; to the Committee the annual meeting of the United Nations to a nonappropriated fund instrumentality; on Commerce, Science, and Transportation. Commission on Human Rights. to the Committee on Armed Services. EC–2209. A communication from the Sec- EC–2198. A communication from the De- retary of Health and Human Services and the The following concurrent resolution partment of the Air Force, transmitting, was read and ordered placed on the cal- Attorney General, transmitting, pursuant to pursuant to law, notice of a cost comparison law, a report on the Health Care Fraud and endar: of the Communications and Information Abuse Control Program for fiscal year 1998; H. Con. Res. 42. Concurrent resolution re- functions at 11 Air Force Reserve Command to the Committee on Finance. garding the use of United States Armed bases; to the Committee on Armed Services. EC–2210. A communication from the Com- Forces as a part of a NATO peacekeeping op- EC–2199. A communication from the Direc- missioner of Social Security, transmitting, a eration implementing a Kosovo peace agree- tor of the Office of Management and Budget, report entitled ‘‘Social Security and Supple- ment. Executive Office of the President, transmit- mental Security Income Disability Pro- f ting, pursuant to law, a report on govern- grams: Managing for Today, Planning for To- ment-wide spending to combat terrorism; to morrow’’; to the Committee on Finance. ENROLLED BILL PRESENTED the Committee on Armed Services. EC–2211. A communication from the Chief EC–2200. A communication from the Direc- The Secretary of the Senate reported of the Regulations Unit, Internal Revenue tor of the Office of the Secretary of Defense, Service, Department of the Treasury, trans- that on March 16, 1999, he had pre- transmitting, pursuant to law, a report mitting, pursuant to law, the report of a rule sented to the President of the United under the Federal Vacancies Reform Act re- entitled ‘‘Trade or Business Expenses: Rent- States, the following enrolled bill: garding the position of Principal Deputy As- als’’ (Rev. Rul. 99–14) received on March 11, S. 447. An act to deem as timely filed, and sistant Secretary of Defense (Legislative Af- 1999; to the Committee on Finance. process for payment, the applications sub- fairs); to the Committee on Armed Services. EC–2212. A communication from the Acting mitted by the Dodson School Districts for EC–2201. A communication from the Alter- Assistant General Counsel for Regulatory certain Impact Aid payments for fiscal year nate OSD Federal Register, Office of the Sec- Law, Office of Scientific and Technical Infor- 1999. retary, Department of Defense, transmitting, mation, Department of Energy, transmit- pursuant to law, the report of a rule entitled f ting, pursuant to law, the report of a rule en- ‘‘CHAMPUS; Corporate Services Provider titled ‘‘Scientific and Technical Information EXECUTIVE AND OTHER Class’’ (RIN0721-AA27) received on March 5, Management’’ (DOE O 241.1) received on COMMUNICATIONS 1999; to the Committee on Armed Services. March 11, 1999; to the Committee on Energy EC–2202. A communication from the Direc- and Natural Resources. The following communications were tor of the Office of Regulations Management, EC–2213. A communication from the Acting laid before the Senate, together with Department of Veterans Affairs, transmit- Assistant General Counsel for Regulatory March 16, 1999 CONGRESSIONAL RECORD — SENATE S2729 Law, Office of Environment, Safety and try of Rio Arriba, New Mexico (Rept. No. 106– By Mr. BAUCUS (for himself and Mr. Health, Department of Energy, transmitting, 16). CRAIG): pursuant to law, the report of a rule entitled S. 293: A bill to direct the Secretaries of S. 629. A bill to amend the Federal Crop In- ‘‘Documentation for Work Smart Standards Agriculture and Interior and to convey cer- surance Act and the Agricultural Market Applications: Characteristics and Consider- tain lands in San Juan County, New Mexico, Transition Act to provide for a safety net to ations’’ (DOE G 450.3–1) received on March 11, to San Juan College (Rept. No. 106–17). producers through cost of production crop 1999; to the Committee on Energy and Natu- f insurance coverage, to improve procedures ral Resources. used to determine yields for crop insurance, EC–2214. A communication from the Acting INTRODUCTION OF BILLS AND to improve the noninsured crop assistance Assistant General Counsel for Regulatory JOINT RESOLUTIONS program, and for other purposes; to the Com- Law, Office of Human Resources and Admin- The following bills and joint resolu- mittee on Agriculture, Nutrition, and For- istration, Department of Energy, transmit- estry. ting, pursuant to law, the report of a rule en- tions were introduced, read the first and second time by unanimous con- By Mr. BURNS (for himself and Mr. titled ‘‘Contractor Human Resource Manage- BAUCUS): ment Programs’’ (DOE O 350.1 Chg 1) re- sent, and referred as indicated: S. 630. A bill to provide for the preserva- ceived on March 11, 1999; to the Committee By Mr. KENNEDY (for himself, Mr. tion and sustainability for the family farm on Energy and Natural Resources. SPECTER, Mr. WYDEN, Mr. SCHUMER, through the transfer of responsibility for op- EC–2215. A communication from the Direc- Mr. SMITH of Oregon, Mr. DASCHLE, eration and maintenance of the Flathead Ir- tor of the Office of Surface Mining Reclama- Mr. LEAHY, Mr. TORRICELLI, Mr. rigation Project, Montana; to the Committee tion and Enforcement, Department of the In- AKAKA, Mr. BIDEN, Mr. BINGAMAN, on Energy and Natural Resources. terior, transmitting, pursuant to law, the re- Mrs. BOXER, Mr. BRYAN, Mr. CHAFEE, By Mr. DEWINE (for himself, Mr. port of a rule entitled ‘‘Indiana Regulatory Mr. CLELAND, Mr. DODD, Mr. DURBIN, BROWNBACK, Mr. BINGAMAN, Mr. Program’’ (SPATS No. IN-144-FOR) received Mr. HARKIN, Mr. JEFFORDS, Mr. JOHN- INOUYE, Mr. LEVIN, Mr. HOLLINGS, and on March 11, 1999; to the Committee on En- SON, Mr. KERREY, Mr. KERRY, Ms. Mr. DURBIN): ergy and Natural Resources. LANDRIEU, Mr. LAUTENBERG, Mr. S. 631. A bill to amend the Social Security EC–2216. A communication from the Assist- LEVIN, Mr. LIEBERMAN, Ms. MIKULSKI, Act to eliminate the time limitation on ben- ant Secretary for Legislative Affairs, De- Mrs. MURRAY, Mr. REED, Mr. REID, efits for immunosuppressive drugs under the partment of State, transmitting, pursuant to Mr. ROBB, Mr. ROCKEFELLER, Mr. medicare program, to provide continued en- law, notice of a proposed license for the ex- SARBANES, and Mr. WELLSTONE): titlement for such drugs for certain individ- port of Area Weapons Effect Simulator sys- S. 622. A bill to enhance Federal enforce- uals after medicare benefits end, and to ex- tems to the United Kingdom; to the Commit- ment of hate crimes, and for other purposes; tend certain medicare secondary payer re- tee on Foreign Relations. to the Committee on the Judiciary. quirements; to the Committee on Finance. EC–2217. A communication from the Assist- By Mr. CONRAD (for himself and Mr. ant Legal Adviser for Treaty Affairs, Depart- By Mr. DEWINE (for himself, Mr. DORGAN): ment of State, transmitting, pursuant to ABRAHAM, Mr. CHAFEE, Mr. GRAHAM, S. 623. A bill to amend Public Law 89-108 to Mr. BOND, Mr. DOMENICI, Mr. KEN- law, the texts of international agreements increase authorization levels for State and other than treaties entered into by the NEDY, Mr. DURBIN, Mr. BURNS, and Indian tribal, municipal, rural, and indus- Mr. DODD): United States (99–19 to 99–31) received on trial water supplies, to meet current and fu- March 10, 1999; to the Committee on Foreign S. 632. A bill to provide assistance for poi- ture water quantity and quality needs of the son prevention and to stabilize the funding Relations. Red River Valley, to deauthorize certain EC–2218. A communication from the Sec- of regional poison control centers; to the project features and irrigation service areas, Committee on Health, Education, Labor, and retary of Agriculture, transmitting, pursu- to enhance natural resources and fish and ant to law, the Department’s Annual Per- Pensions. wildlife habitat, and for other purposes; to By Mr. ASHCROFT: formance Plan for fiscal year 1999; to the the Committee on Environment and Public Committee on Agriculture, Nutrition, and S. 633. A bill to amend title II of the Social Works. Security Act to require that investment de- Forestry. By Mr. BURNS (for himself and Mr. EC–2219. A communication from the Ad- cisions regarding the social security trust BAUCUS): ministrator of the Environmental Protection funds be made on the basis of the best inter- S. 624. A bill to authorize construction of ests of beneficiaries, and for other purposes; Agency, transmitting, pursuant to law, a re- the Fort Peck Reservation Rural Water Sys- port on the 1993 Survey of Certified Commer- to the Committee on Finance. tem in the State of Montana, and for other By Mr. BROWNBACK (for himself, Mr. cial Applicators of Non-Agricultural Pes- purposes; to the Committee on Energy and HARKIN, Mr. HELMS, Mr. MACK, Mr. ticides; to the Committee on Agriculture, Natural Resources. ROBB, Mr. GORTON, Mr. KYL, and Mr. Nutrition, and Forestry. By Mr. GRASSLEY (for himself, Mr. EC–2220. A communication from the Ad- ROBERTS): TORRICELLI, Mr. BIDEN, and Mr. SES- ministrator of the Agricultural Marketing S. 634. A bill to suspend certain sanctions SIONS): with respect to India and Pakistan; to the Service, Department of Agriculture, trans- S. 625. A bill to amend title 11, United Committee on Foreign Relations. mitting, pursuant to law, the report of a rule States Code, and for other purposes; to the By Mr. MACK (for himself, Mr. GRAMS, entitled ‘‘Raisins Produced From Grapes Committee on the Judiciary. Mr. LIEBERMAN, and Mr. KYL): Grown in California; Final Free and Reserve By Mr. ROBERTS (for himself and Mr. Percentages for 1998–99 Zante Currant Rai- S. 635. A bill to amend the Internal Reve- BROWNBACK): sins’’ (Docket FV99–989–3 IFR) received on S. 626. A bill to provide from unfair inter- nue Code of 1986 to more accurately codify March 11, 1999; to the Committee on Agri- est and penalties on refunds retroactively or- the depreciable life of printed wiring board culture, Nutrition, and Forestry. dered by the Federal Energy Regulatory and printed wiring assembly equipment; to EC–2221. A communication from the Con- Commission; to the Committee on Energy the Committee on Finance. gressional Review Coordinator, Animal and and Natural Resources. By Mr. REED: Plant Health Inspection Service, Department By Mr. HUTCHINSON (for himself, Mr. S. 636. A bill to amend title XXVII of the of Agriculture, transmitting, pursuant to Public Health Service Act and part 7 of sub- BROWNBACK, Mr. BURNS, Mr. SMITH of law, the report of a rule entitled ‘‘Noxious title B of title I of the Employee Retirement New Hampshire, Mr. COVERDELL, Mr. Weeds; Update of Weed Lists’’ (Docket 98– Income Security Act of 1974 to establish MCCAIN, Mr. INHOFE, Mr. ASHCROFT, 063–2) received on March 11, 1999; to the Com- standards for the health quality improve- Mr. BUNNING, Mr. ALLARD, Mr. mittee on Agriculture, Nutrition, and For- ment of children in managed care plans and GRAMM, Mr. GORTON, Mr. DEWINE, estry. other health plans; to the Committee on Mr. GRAMS, Mr. BOND, Mr. DOMENICI, Health, Education, Labor, and Pensions. f Mr. SESSIONS, Mr. HELMS, Mr. CRAIG, By Mr. SCHUMER: REPORTS OF COMMITTEES and Mr. CRAPO): S. 627. A bill to terminate the Internal S. 637. A bill to amend title 18, United The following reports of committees Revenue Code of 1986; to the Committee on States Code, to regulate the transfer of fire- were submitted: Finance. arms over the Internet, and for other pur- poses; to the Committee on the Judiciary. By Mr. THOMPSON, from the Committee By Mr. ROCKEFELLER (for himself, on Governmental Affairs: Ms. COLLINS, Mr. COCHRAN, Mr. f Report to accompany the bill (S. 558) To CONRAD, Mr. WYDEN, and Mr. JEF- Prevent the Shutdown of the Government at FORDS): SUBMISSION OF CONCURRENT AND the Beginning of a Fiscal Year if a New S. 628. A bill to amend titles XVIII and XIX SENATE RESOLUTIONS Budget Is Not Yet Enacted (Rept. No. 106–15). of the Social Security Act to expand and The following concurrent resolutions clarify the requirements regarding advance By Mr. MURKOWSKI, from the Committee and Senate resolutions were read, and on Energy and Natural Resources, without directives in order to ensure that an individ- amendment: ual’s health care decisions are compiled referred (or acted upon), as indicated: S. 278: A bill to direct the Secretary of the with, and for other purposes; to the Commit- By Mr. DASCHLE (for himself, Mr. Interior to convey certain lands to the coun- tee on Finance. LOTT, Mr. EDWARDS, Mr. HAGEL, Mr. S2730 CONGRESSIONAL RECORD — SENATE March 16, 1999

CLELAND, Mr. MCCAIN, Mr. HARKIN, Mr. LEVIN, Mr. LIEBERMAN, Ms. committed an offense not only because Mr. KERRY, Mr. ROBB, Mr. REED, Mr. MIKULSKI, Mrs. MURRAY, Mr. of the victim’s race, color, religion, or SMITH of New Hampshire, Mr. ABRA- REED, Mr. REID, Mr. ROBB, Mr. national origin, but also because of the HAM, Mr. AKAKA, Mr. ALLARD, Mr. ROCKEFELLER, Mr. SARBANES, victim’s participation in one of six nar- ASHCROFT, Mr. BAUCUS, Mr. BAYH, Mr. BENNETT, Mr. BIDEN, Mr. BINGA- and Mr. WELLSTONE): rowly defined ‘‘federally protected ac- MAN, Mr. BOND, Mrs. BOXER, Mr. S. 622. A bill to enhance Federal en- tivities’’ enumerated in the statute. BREAUX, Mr. BROWNBACK, Mr. BRYAN, forcement of hate crimes, and for other These activities are: (A) enrolling in or Mr. BUNNING, Mr. BURNS, Mr. BYRD, purposes; to the Committee on the Ju- attending a public school or public col- Mr. CAMPBELL, Mr. CHAFEE, Mr. diciary. lege; (B) participating in or enjoying a COCHRAN, Ms. COLLINS, Mr. CONRAD, THE HATE CRIMES PREVENTION ACT OF 1999 service, program, facility or activity Mr. COVERDELL, Mr. CRAIG, Mr. Mr. KENNEDY. Mr. President, it is a provided or administered by any state CRAPO, Mr. DEWINE, Mr. DODD, Mr. privilege to join Senator SPECTOR, Sen- or local government; (C) applying for DOMENICI, Mr. DORGAN, Mr. DURBIN, Mr. ENZI, Mr. FEINGOLD, Mrs. FEIN- ator WYDEN, Senator SCHUMER, and or enjoying employment; (D) serving in STEIN, Mr. FITZGERALD, Mr. FRIST, Senator SMITH in introducing the Hate a state court as a grand or petit juror; Mr. GORTON, Mr. GRAHAM, Mr. Crimes Prevention Act of 1999. This bill (E) traveling in or using a facility of GRAMM, Mr. GRAMS, Mr. GRASSLEY, has the support of the Department of interstate commerce; and (F) enjoying Mr. GREGG, Mr. HATCH, Mr. HELMS, Justice, constitutional scholars, law the goods or services of certain places Mr. HOLLINGS, Mr. HUTCHINSON, Mrs. enforcement officials, and many orga- of public accommodation. HUTCHISON, Mr. INHOFE, Mr. INOUYE, nizations with a long and distinguished Second, the statute provides no cov- Mr. JEFFORDS, Mr. JOHNSON, Mr. KEN- history of involvement in combating erage for hate crimes based on the vic- NEDY, Mr. KOHL, Mr. KYL, Ms. tim’s sexual orientation, gender, or dis- LANDRIEU, Mr. LAUTENBERG, Mr. hate crimes, including the Leadership LEAHY, Mr. LEVIN, Mr. LIEBERMAN, Conference on Civil Rights, the Anti- ability. Together, these limitations Mrs. LINCOLN, Mr. LUGAR, Mr. MACK, Defamation League, the Human Rights prevent the federal government from Mr. MCCONNELL, Ms. MIKULSKI, Mr. Campaign, the National Gay and Les- working with state and local law en- MOYNIHAN, Mr. MURKOWSKI, Mrs. bian Task Force, the National Organi- forcement agencies in the investiga- MURRAY, Mr. NICKLES, Mr. REID, Mr. zation for Women Legal Defense and tion and prosecution of many of the ROBERTS, Mr. ROCKEFELLER, Mr. Education Fund, the National Coali- most vicious hate crimes. ROTH, Mr. SANTORUM, Mr. SARBANES, tion Against Domestic Violence and Our legislation amends 18 U.S.C. § 245 Mr. SCHUMER, Mr. SESSIONS, Mr. to address each of these limitations. In SHELBY, Mr. SMITH of Oregon, Ms. The Consortium for Citizens with Dis- SNOWE, Mr. SPECTER, Mr. STEVENS, abilities Rights Task Force. cases involving racial, religious, or Mr. THOMAS, Mr. THOMPSON, Mr. Congress has a responsibility to act ethnic violence, the bill prohibits the THURMOND, Mr. TORRICELLI, Mr. this year to deal with the festering intentional infliction of bodily injury VOINOVICH, Mr. WARNER, Mr. problem of hate crimes. The silence of without regard to the victim’s partici- WELLSTONE, and Mr. WYDEN): Congress on this basic issue has been pation in one of the six ‘‘federally pro- S. Res. 61. A resolution commending the deafening, and it is unacceptable. We tected activities’’. In cases involving Honorable J. Robert Kerrey, United States Senator from Nebraska, on the 30th anniver- must stop acting like we don’t care— hate crimes based on the victim’s sex- sary of the events giving rise to his receiving that somehow this fundamental issue ual orientation, gender, or disability, the Medal of Honor; considered and agreed is just a state problem. It isn’t. It’s a the bill prohibits the intentional inflic- to. national problem, and it’s an outrage tion of bodily injury whenever the act By Mr. MACK (for himself, Mrs. FEIN- that Congress has been A.W.O.L. has a nexus, as defined in the bill, to STEIN, Mr. ABRAHAM, Mr. AKAKA, Mrs. Few crimes tear more deeply at the interstate commerce. These provisions BOXER, Mr. CLELAND, Mr. DEWINE, fabric of our society than hate crimes. will permit the federal government to Mr. DODD, Mr. DURBIN, Mr. FITZGER- These despicable acts injure the vic- work in partnership with state and ALD, Mr. FRIST, Mr. GRASSLEY, Mr. GORTON, Mr. HOLLINGS, Mrs. tim, the community, and the nation local officials in the investigation and HUTCHISON, Mr. HUTCHINSON, Mr. itself. The brutal murders in Texas, prosecution of hate crimes. I urge the INOUYE, Mr. KENNEDY, Mr. LAUTEN- Wyoming, and most recently in Ala- Senate to act quickly on this impor- BERG, Mr. MCCONNELL, Ms. MIKULSKI, bama have shocked the conscience of tant legislation, and I look forward to Mr. MURKOWSKI, Mrs. MURRAY, Mr. the nation. Sadly, these three crimes working with my colleagues to bring it ROTH, Mr. SARBANES, Mr. SMITH of are only the tip of the hate crimes ice- to a vote. I ask unanimous consent Oregon, Ms. SNOWE, Mr. SPECTER, Mr. berg. We need to do more—much that the bill and a more detailed de- STEVENS, Mr. THURMOND, and Mr. more—to combat them. scription of the bill be printed in the TORRICELLI): S. Res. 62. A resolution proclaiming the I’m convinced that if Congress acted RECORD. month of January 1999 as ‘‘National Cervical today, and President Clinton signed There being no objection, the mate- Health Month’’; to the Committee on the Ju- our bill tomorrow, we’d have fewer rial was ordered to be printed in the diciary. hate crimes in all the days that follow. RECORD, as follows: By Mr. MOYNIHAN (for himself, Mr. Current federal laws are clearly inad- S. 618 LOTT, Mr. DASCHLE, Mr. SCHUMER, equate. It’s an embarrassment that we Be it enacted by the Senate and House of Mrs. BOXER, Mrs. FEINSTEIN, Mr. haven’t already acted to close these Representatives of the United States of America LEAHY, Mr. JOHNSON, Mr. HELMS, and glaring gaps in present law. For too in Congress assembled, Mr. BUNNING): S. Res. 63. A resolution recognizing and long, the federal government has been SECTION 1. SHORT TITLE. honoring Joe DiMaggio; considered and forced to fight hate crimes with one This Act may be cited as the ‘‘Hate Crimes agreed to. hand tied behind its back. Prevention Act of 1999’’. f Our bill does not undermine the role SEC. 2. FINDINGS. of the states in investigating and pros- Congress finds that— STATEMENTS ON INTRODUCED (1) the incidence of violence motivated by ecuting hate crimes. States will con- BILLS AND JOINT RESOLUTIONS the actual or perceived race, color, national tinue to take the lead. But the full origin, religion, sexual orientation, gender, By Mr. KENNEDY (for himself, power of federal law should also be or disability of the victim poses a serious na- Mr. SPECTER, Mr. WYDEN, Mr. available to investigate, prosecute, and tional problem; SCHUMER, Mr. SMITH of Oregon, punish these crimes. (2) such violence disrupts the tranquility Mr. DASCHLE, Mr. LEAHY, Mr. The Hate Crimes Prevention Act of and safety of communities and is deeply divi- TORRICELLI, Mr. AKAKA, Mr. 1999 addresses two serious deficiencies sive; BIDEN, Mr. BINGAMAN, Mrs. in the principal federal hate crimes (3) existing Federal law is inadequate to BOXER, Mr. BRYAN, Mr. CHAFEE, statutes, 18 U.S.C. § 245, which applies address this problem; (4) such violence affects interstate com- Mr. CLELAND, Mr. DODD, Mr. to hate crimes committed on the basis merce in many ways, including— DURBIN, Mr. HARKIN, Mr. JEF- of race, color, religion, or national ori- (A) by impeding the movement of members FORDS, Mr. JOHNSON, Mr. gin. of targeted groups and forcing such members KERREY, Mr. KERRY, Ms. First, the statute requires the gov- to move across State lines to escape the inci- LANDRIEU, Mr. LAUTENBERG, ernment to prove that the defendant dence or risk of such violence; and March 16, 1999 CONGRESSIONAL RECORD — SENATE S2731 (B) by preventing members of targeted an attempt to commit aggravated sexual tending a public school or public college; (B) groups from purchasing goods and services, abuse, or an attempt to kill. participating in or enjoying a service, pro- obtaining or sustaining employment or par- ‘‘(B) For purposes of subparagraph (A), the gram, facility or activity provided or admin- ticipating in other commercial activity; circumstances described in this subpara- istered by any state or local government; (C) (5) perpetrators cross State lines to com- graph are that— applying for or enjoying employment; (D) mit such violence; ‘‘(i) in connection with the offense, the de- serving in a state court as a grand or petit (6) instrumentalities of interstate com- fendant or the victim travels in interstate or juror; (E) traveling in or using a facility of merce are used to facilitate the commission foreign commerce, uses a facility or instru- interstate commerce; and (F) enjoying the of such violence; mentality of interstate or foreign commerce, goods or services of certain places of public (7) such violence is committed using arti- or engages in any activity affecting inter- accommodation. cles that have traveled in interstate com- state or foreign commerce; or 2. The bill adds a new provision, 18 U.S.C. merce; ‘‘(ii) the offense is in or affects interstate § 245(c)(1), which prohibits the intentional in- (8) violence motivated by bias that is a or foreign commerce.’’. fliction of bodily injury on the basis of race, relic of slavery can constitute badges and in- SEC. 5. DUTIES OF FEDERAL SENTENCING COM- color, religion, or national origin. This new cidents of slavery; MISSION. provision does not require a showing that (9) although many State and local authori- (a) AMENDMENT OF FEDERAL SENTENCING the defendant committed the offense because ties are now and will continue to be respon- GUIDELINES.—Pursuant to its authority of the victim’s participation in a federally sible for prosecuting the overwhelming ma- under section 994 of title 28, United States protected activity. However, an offense jority of violent crimes in the United States, Code, the United States Sentencing Commis- under the new 18 U.S.C. § 245(c)(1) will be including violent crimes motivated by bias, sion shall study the issue of adult recruit- prosecuted as a felony only, and a showing of Federal jurisdiction over certain violent ment of juveniles to commit hate crimes and bodily injury or death or of an attempt to crimes motivated by bias is necessary to sup- shall, if appropriate, amend the Federal sen- cause bodily injury or death through the use plement State and local jurisdiction and en- tencing guidelines to provide sentencing en- of fire, a firearm, or an explosive device is sure that justice is achieved in each case; hancements (in addition to the sentencing required. Other attempts will not constitute (10) Federal jurisdiction over certain vio- enhancement provided for the use of a minor offenses under this section. lent crimes motivated by bias enables Fed- during the commission of an offense) for 3. The bill adds another new provision, 18 eral, State, and local authorities to work to- adult defendants who recruit juveniles to as- U.S.C. § 245(c)(2), which prohibits the inten- gether as partners in the investigation and sist in the commission of hate crimes. tional infliction of bodily injury or death (or prosecution of such crimes; and (b) CONSISTENCY WITH OTHER GUIDELINES.— an attempt to inflict bodily injury or death) (11) the problem of hate crime is suffi- In carrying out this section, the United through the use of fire, a firearm, or an ex- ciently serious, widespread, and interstate in States Sentencing Commission shall— plosive device on the basis of religion, gen- nature as to warrant Federal assistance to (1) ensure that there is reasonable consist- der, sexual orientation, or disability. Like 18 States and local jurisdictions. ency with other Federal sentencing guide- U.S.C. § 245(c)(1), this provision authorizes SEC. 3. DEFINITION OF HATE CRIME. lines; and the prosecution of felonies only, and ex- In this Act, the term ‘‘hate crime’’ has the (2) avoid duplicative punishments for sub- cludes most attempts, while omitting the same meaning as in section 280003(a) of the stantially the same offense. ‘‘federally protected activity’’ requirement. Violent Crime Control and Law Enforcement SEC. 6. GRANT PROGRAM. Unlike 18 U.S.C. § 245(c)(1), this provision re- Act of 1994 (28 U.S.C. 994 note). (a) AUTHORITY TO MAKE GRANTS.—The Of- quires proof of a Commerce Clause nexus as fice of Justice Programs of the Department an element of the offense. SEC. 4. PROHIBITION OF CERTAIN ACTS OF VIO- 4. For prosecutions under both of the new LENCE. of Justice shall make grants, in accordance provisions, a certification by the Attorney Section 245 of title 18, United States Code, with such regulations as the Attorney Gen- eral may prescribe, to State and local pro- General or other senior Justice Department is amended— official that ‘‘a prosecution by the United (1) by redesignating subsections (c) and (d) grams designed to combat hate crimes com- mitted by juveniles, including programs to States is in the public interest and necessary as subsections (d) and (e), respectively; and to secure substantial justice.’’ (2) by inserting after subsection (b) the fol- train local law enforcement officers in inves- lowing: tigating, prosecuting, and preventing hate FEDERALIZATION ‘‘(c)(1) Whoever, whether or not acting crimes. It is expected that the Hate Crimes Pre- under color of law, willfully causes bodily in- (b) AUTHORIZATION OF APPROPRIATIONS.— vention Act of 1999 will result in only a mod- jury to any person or, through the use of There are authorized to be appropriated such est increase in the number of hate crimes fire, a firearm, or an explosive device, at- sums as may be necessary to carry out this prosecutions brought by the federal govern- tempts to cause bodily injury to any person, section. ment. The intent is to ensure that the fed- because of the actual or perceived race, SEC. 7. AUTHORIZATION FOR ADDITIONAL PER- eral government will limit its prosecutions color, religion, or national origin of any SONNEL TO ASSIST STATE AND of hate crimes to cases that implicate the person— LOCAL LAW ENFORCEMENT. greatest federal interest and present a clear ‘‘(A) shall be imprisoned not more than 10 There are authorized to be appropriated to need for federal intervention. The Act is not years, or fined in accordance with this title, the Department of the Treasury and the De- intended, for example, to federalize all rapes or both; and partment of Justice, including the Commu- or all acts of domestic violence. ‘‘(B) shall be imprisoned for any term of nity Relations Service, for fiscal years 2000, The bill requires a nexus to interstate years or for life, or fined in accordance with 2001 and 2002 such sums as are necessary to commerce for hate crimes based on sexual this title, or both if— increase the number of personnel to prevent orientation, gender, or disability. This re- ‘‘(i) death results from the acts committed and respond to alleged violations of section quirement, which the government must in violation of this paragraph; or 245 of title 18, United States Code (as amend- prove beyond a reasonable doubt as an ele- ‘‘(ii) the acts omitted in violation of this ed by this Act). ment of the offense, will limit federal juris- paragraph include kidnapping or an attempt SEC. 8. SEVERABILITY. diction in these categories to cases that in- to kidnap, aggravated sexual abuse or an at- If any provision of this Act, an amendment volve clear federal interests. tempt to commit aggravated sexual abuse, or made by this Act, or the application of such The bill excludes misdemeanors and limits an attempt to kill. provision or amendment to any person or federal hate crimes based on sexual orienta- ‘‘(2)(A) Whoever, whether or not acting circumstance is held to be unconstitutional, tion, gender, or disability to those involving under color of law, in any circumstance de- the remainder of this Act, the amendments bodily injury or death (and a limited set of scribed in subparagraph (B), willfully causes made by this Act, and the application of the attempts to cause bodily injury or death). bodily injury to any person or, through the provisions of such to any person or cir- These limitations will limit federal cases to use of fire, a firearm, or an explosive device, cumstance shall not be affected thereby. truly serious offenses. 18 U.S.C. § 245 already requires a written attempts to cause bodily injury to any per- certification by the Attorney General, the son, because of the actual or perceived reli- SUMMARY OF THE HATE CRIMES PREVENTION Deputy Attorney General, the Associate At- gion, gender, sexual orientation, or disabil- ACT OF 1999 torney General, or a specially designated As- ity of any person— The Hate Crimes Prevention Act of 1999 sistant Attorney General that ‘‘a prosecu- ‘‘(i) shall be imprisoned not more than 10 creates a three-tiered system for the federal tion by the United States is in the public in- years, or fined in accordance with this title, prosecution of hate crimes under 18 U.S.C. terest and necessary to secure substantial or both; and § 245, as follows: justice.’’ This requirement will apply to the ‘‘(ii) shall be imprisoned for any term of 1. The bill leaves 18 U.S.C. § 245(b)(2) un- new crimes in the Act. years or for life, or fined in accordance with changed. That provision prohibits the inten- this title, or both, if— tional interference, or attempted inter- EXISTING FEDERAL LAW AND THE NEED FOR ‘‘(I) death results from the acts committed ference, with a person’s participation in one EXPANDED JURISDICTION in violation of this paragraph; or of six specifically enumerated ‘‘federally pro- 1. The ‘‘Federally Protected Activity’’ require- ‘‘(II) the acts committed in violation of tected activities’’ on the basis of the person’s ment of 18 U.S.C. § 245(b)(2) this paragraph include kidnapping or an at- race, color, religion, or national origin. 18 U.S.C. § 245(b)(2) has been the principal tempt to kidnap, aggravated sexual abuse or These activities are: (A) enrolling in or at- federal hate crimes statute for many years. S2732 CONGRESSIONAL RECORD — SENATE March 16, 1999 It prohibits the use of force, or threat of incidents based on the sexual orientation of The Hate Crimes Prevention Act is a meas- force, to injure, intimidate, or interfere with the victim were reported to local law en- ured response to a critical problem facing (or to attempt to injure, intimidate, or inter- forcement agencies in 1997; that 1,256 such the Nation. It will make the federal govern- fere with) ‘‘any person because of his race, incidents were reported in 1996; and 1,019 and ment a full partner in the battle against color, religion, or national origin’’ and be- 677 such incidents were reported in 1995 and hate crimes. In recognition of State and cause of his participation in any of six ‘‘fed- 1994, respectively. The National Coalition of local efforts, the Act also provides grants to erally protected activities’’ specifically enu- Anti-Violence Programs (NCAVP), a private states and local governments to combat hate merated in the statute. The six enumerated organization that tracks bias incidents based crimes, including programs to train local law ‘‘federally protected activities’’ are: (A) en- on sexual orientation, reported 2,445 such in- enforcement officers in investigating, pros- rolling in or attending a public school or cidents in 1997; 2,529 in 1996; 2,395 in 1995; and ecuting and preventing hate crimes. public college; (B) participating in or enjoy- 2,064 in 1994. ∑ Mr. WYDEN. Mr. President, the leg- ing a service, program, facility or activity Even the higher statistics reported by islation I am proud to be a principal provided or administered by any state or NCAVP may significantly understate the local government; (C) applying for or enjoy- number of hate crimes based on sexual ori- cosponsor of again today is a referen- ing employment; (D) serving in a state court entation actually committed in this country. dum on whether Congress will tolerate as a grand or petit juror; (E) traveling in or Many victims of anti-lesbian and anti-gay acts born out of prejudice. Every hate- using a facility of interstate commerce; and incidents do not report the crimes to local filled attack, whether the target is a (F) enjoying the goods or services of certain law enforcement officials because they fear a young gay man in Alabama or Wyo- places of public accommodation. hostile response or mistreatment. According ming or an African American man in Federal jurisdiction exists under 18 U.S.C. to the NCAVP survey, 12% of those who re- Jasper, Texas, is an attack on all § 245(b)(2) only if a crime motivated by ra- ported hate crimes based on sexual orienta- Americans. We must not allow such cial, ethnic, or religious hatred has been tion to the police in 1996 stated that the po- committed with the intent to interfere with lice response was verbally or physically abu- acts to stain our national greatness. the victim’s participation in one or more of sive. Our nation is committed to the ideal the six federally protected activities. Even b. Gender that all men and women are created in the most blatant cases of racial, ethnic, or Although acts of violence committed equal, and protected equally in the religious violence, no federal jurisdiction ex- against women traditionally have been eyes of the law. But some people aren’t ists under this section unless the federally viewed as ‘‘personal attacks’’ rather than as getting the message. It is high time to protected activity requirement is satisfied. hate crimes, a significant number of women drive that message home. This requirement has limited the ability of are exposed to terror, brutality, serious in- The 1999 Hate Crimes Prevention Act federal law enforcement officials to work jury, and even death because of their gender. with state and local officials in the inves- will put bigots and racists on notice: In the enactment of the Violence Against hate and bigotry will not be tolerated tigation and prosecution of many incidents Women Act (VAWA) in 1994, Congress recog- of brutal, hate-motivated violence and has in America. nized that some violent assaults committed This bill will close the loopholes in led to acquittals in several cases in which against women are bias crimes rather than the Department of Justice has found a need mere ‘‘random’’ attacks. The Senate Report the current hate crimes laws. Right to assert federal jurisdiction. on VAWA, which created a federal civil cause now, there’s a patchwork of hate The most important benefit of concurrent of action for victims of gender-based hate crimes laws in states across the coun- state and federal criminal jurisdiction is the crimes, stated: ‘‘The Violence Against try. This bill will provide a unified, ability of state and federal law enforcement Women Act aims to consider gender-moti- officials to work together as partners in the Federal approach in how to deal with vated bias crimes as seriously as other bias investigation and prosecution of serious hate these despicable crimes. crimes. Whether the attack is motivated by crimes. When federal jurisdiction has existed It puts an end to the double standard racial bias, ethnic bias, or gender bias, the in the limited contexts authorized by 18 where Federal authorities can help results are often the same. The victims are U.S.C. § 245(b)(2), the federal government’s reduced to symbols of hatred; they are cho- states and localities prosecute crimes resources, forensic expertise, and experience sen not because of who they are as individ- motivated by ethnicity, religion, race, in the identification and proof of hate-based uals but because of their class status. The vi- and color, but not those motivated by motivations often have provided a valuable olence not only wounds physically, it de- gender, disability, or sexual orienta- investigative assistance to local investiga- grades and terrorizes, instilling fear and in- tion. This bill would finally extend fed- tors. By working cooperatively, state and hibiting the lives of all those similarly situ- federal law enforcement officials have the eral hate crime laws to cover attacks ated. ‘Placing this violence in the context of best chance of bringing the perpetrators of against women, gays and lesbians, peo- the civil rights laws recognizes it for what it hate crimes swiftly to justice. ple with disabilities. is—a hate crime.’ ’’ Senate Repot No. 103–138 The work of the National Church Arson It also removes the current straight- (1993) (quoting testimony of Prof. Burt Task Force is a useful precedent. Created in Neuborne.) jacket on local law enforcement seek- 1996 to address the rash of church arsons The majority of states do not specifically ing Federal help to prosecute hate across the country, the Task Force’s federal prohibit gender-based hate crimes. All 50 crimes. Current law targets hate prosecutors and investigators from ATF and states have statutes prohibiting rape and crimes that are committed against vic- the FBI have collaborated with state and other crimes typically committed against local officials in the investigation of every tims who are performing a federally women, but only 17 states have hate crimes church arson since then. The results of these protected act, like voting, or eating in statutes that include gender among the cat- state-federal partnerships have been impres- a restaurant. But a hate crime is a egories of prohibited bias motives. sive. Thirty-four percent of the joint state- The federal government should have juris- hate crime, regardless of what the vic- federal church arson investigations con- diction to work with state and local law en- tims are doing when they’re attacked. ducted by the Task Force resulted in arrests forcement officials in the investigation of With this legislation, we could pros- of one or more suspects on state or federal violent gender-based hate crimes and, where ecute under Federal law the thugs who charges. This arrest rate is more than double appropriate in rare circumstances, to bring murdered James Byrd, Matthew the normal 16 percent arrest rate in all arson federal prosecutions to vindicate the strong Shepard, and Billy Jack Gaither, as cases nationwide, most of which are inves- federal interest in combating the serious tigated by local officials without federal as- well as other victims. gender-based hate crimes of violence. No one is suggesting that the Federal sistance. More than 80 percent of the sus- Enactment of the Hate Crimes Prevention pects in joint state-federal church arson in- Act will not result in the federalization of all government should override local law vestigations by the Task Force have been rapes, other sexual assaults, or acts of do- enforcement authorities. This bill will prosecuted in state court under state law. mestic violence. The intent is to ensure that complement, not supplant, the work of 2. Violent hate crimes based on sexual orienta- the federal government’s investigations and local law enforcement in investigating tion, gender, or disability prosecutions of gender-based hate crimes and prosecuting hate crimes. It gives Current federal law does not prohibit hate will be strictly limited to the most flagrant these local authorities more tools in crimes based on the victim’s sexual orienta- cases. prosecuting these crimes. If they need tion, gender, or disability. c. Disability assistance in prosecuting a hate crime, a. Sexual Orientation Congress has shown a consistent commit- then Federal authorities would be Statistics gathered by the federal govern- ment over the past decade to the protection available to assist them—to make sure ment and private organizations indicate that of persons with disabilities from discrimina- a significant number of hate crimes based on tion. In amendments to the Fair Housing Act that justice is served. the sexual orientation of the victim are com- in 1988, and the Americans With Disabilities Of course, no legislation can ever mitted every year in the United States. Data Act in 1990, Congress extended protections to make up for the loss of any victim of a collected by the FBI pursuant to the Hate persons with disabilities in many traditional hate crime. But we can honor their Crimes Statistics Act indicate that 1,102 bias civil rights contexts. memories by doing our best to make March 16, 1999 CONGRESSIONAL RECORD — SENATE S2733 sure that crimes like these never hap- ciently respectful of state and local Mr. President, the Dakota Water Re- pen again.∑ law enforcement interests. I welcome sources Act represents a fiscally re- Mr. LEAHY. Mr. President, I again such questions and believe that Con- sponsible, environmentally sound, trea- urge prompt consideration and passage gress should think carefully before fed- ty-compliant approach to completing of Hate Crimes Prevention Act. I co- eralizing prohibitions that already the Garrison project. The U.S. Senate sponsored this measure in the last Con- exist at the state level. is well aware of the history of failed gress and do so again this year. This To my mind, there is nothing ques- promises on water development bill would amend the federal hate tionable about the notion that hate projects on the Missouri River. The crimes statute to make it easier for crimes warrant federal attention. As 1944 Flood Control Act authorized six federal law enforcement officials to in- evidenced by the national outrage at main-stem dams along the Missouri vestigate and prosecute cases of racial the Byrd, Shepard, and Gaither mur- River. These structures flooded about and religious violence. It would also ders, hate crimes have a broader and 550,000 acres of land in North Dakota. focus the attention and resources of more injurious impact on our national These were prime agricultural lands the federal government on the problem society than ordinary street crimes. that were flooded. We were promised of hate crimes committed against peo- The 1991 murder in the Crown Heights that we would get certain things in re- ple because of their sexual preference, section of Brooklyn, New York, of an turn for the loss of these lands. We gender, or disability. Hasidic Jew, Yankel Rosenbaum, by a were promised that we would get a As the Ranking Member of the Judi- youth later tried federally for violation major water project for the State of ciary Committee, I look forward to of the hate crime law, showed that North Dakota. Unfortunately, only working on hearings next month on hate crimes may lead to civil unrest part of that promise has been kept. this important initiative. Violent and even riots. This heightens the fed- You can see here the kinds of things crime motivated by prejudice demands eral interest in such cases, warranting that have happened. This is the town of attention from all of us. It is not a new enhanced federal penalties, particu- Elbowoods, July 7, 1954. This town is problem, but recent incidents of hate larly if the state declines the case or now under water. It is not the only crimes have shocked the American does not adequately investigate or town that is under water. Town after conscience. The beating death of Mat- prosecute it. town along the Missouri was flooded in Beyond this, hate crimes may be thew Shepard in Wyoming was one of order to give protection to downstream committed by multiple offenders who those crimes; the dragging death of States, to remove from them the flood belong to hate groups that operate James Byrd in Texas was another. The threat that so long had devastated across state lines. Criminal activity recent murder of Billy Jack Gaither in them economically. with substantial multi-state or inter- Alabama appears to be yet another. We accepted the permanent flood, a national aspects raises federal inter- These are sensational crimes, the ones flood that came and has never gone. ests and warrants federal enforcement that focus public attention. But there That flood has cost our State tremen- attention. is a toll we are paying each year in Current law already provides some dously. All we are asking is that the other hate crimes that find less notori- measure of protection against exces- promise that was made to us in ex- ety, but with no less suffering for the sive federalization by requiring the At- change for flooding these 550,000 acres victims and their families. torney General to certify all prosecu- now be kept. It remains painfully clear that we as Mr. President, the Dakota Water Re- tions under the hate crimes statute as a nation still have serious work to do being ‘‘in the public interest and nec- sources Act would assure North Dakota in protecting all Americans and ensur- essary to secure substantial justice.’’ an adequate supply of quality water for ing equal rights for all our citizens. We should be confident that this provi- municipal, rural, and industrial pur- The answer to hate and bigotry must sion is sufficient to ensure restraint at poses. In fact, without these amend- ultimately be found in increased re- the federal level under the broader hate ments, many communities in North spect and tolerance. But strengthening crimes legislation that we introduce Dakota will be forced to be without our federal hate crimes legislation is a today. I look forward to examining clean and reliable water supplies. step in the right direction. Bigotry and that issue and considering ways to I think you can see these two jars. hatred are corrosive elements in any guard against unwarranted federal in- This is water that is delivered to rural society, but especially in a country as trusions under this legislation. In the North Dakotans via a pipeline. It is diverse and open as ours. We need to end, we should work on a bipartisan clean. It is healthy. It is wholesome. This is the typical water supply for make clear that a bigoted attack on basis to ensure that the Hate Crimes one or some of us diminishes each of Prevention Act operates as intended, rural North Dakotans. It looks like us, and it diminishes our nation. As a strengthening federal jurisdiction over coffee or dark tea. This is actually nation, we must say loudly and clearly hate crimes as a back-up, but not a what comes out when you turn on your that we will defend ourselves against substitute, for state and local law en- spigot in the homes of many of the peo- such violence. forcement. ple in rural North Dakota. This is like All Americans have the right to live, living in the Third World. I tell my col- travel and gather where they choose. By Mr. CONRAD (for himself and leagues, there is nothing quite like get- In the past we have responded as a na- Mr. DORGAN): ting ready to step into a bathtub of tion to deter and to punish violent de- S. 623. A bill to amend Public Law 89– water when it looks like this; even nials of civil rights. We have enacted 108 to increase authorization levels for worse, to have your child getting ready federal laws to protect the civil rights State and Indian tribal, municipal, to step into a bathtub of water that of all of our citizens for more than 100 rural, and industrial water supplies, to looks like this. This is absolutely at years. This continues that great and meet current and future water quan- the heart of what we are trying to ac- honorable tradition. tity and quality needs of the Red River complish with the Dakota Water Re- Several of us come to this issue with Valley, to deauthorize certain project sources Act, to provide clean, healthy backgrounds in local law enforcement. features and irrigation service areas, to supplies of water to our population. We support local law enforcement and enhance natural resources and fish and Mr. President, water development is work for initiatives that assist law en- wildlife habitat, and for other pur- essential for economic development, forcement. It is in that vein that I sup- poses; to the Committee on Environ- agriculture, recreation and improving port the Hate Crimes Prevention Act, ment and Public Works. the environment. The legislation that which has received strong bipartisan DAKOTA WATER RESOURCES ACT OF 1999 we are offering today will provide an support from state and local law en- Mr. CONRAD. I rise today to intro- adequate and dependable water supply forcement organizations across the duce the Dakota Water Resources Act throughout North Dakota, including country. of 1999, as cosponsored by my col- communities in the Red River Valley. When the Committee takes up the league, Senator DORGAN. Our colleague, This picture shows what we have issue of hate crimes next month, one of Congressman POMEROY, is introducing faced in the past. This is 1910. This is the questions that must be addressed is identical legislation in the House of the Red River, the famous Red River of whether the bill as drafted is suffi- Representatives today. the North. You could have walked S2734 CONGRESSIONAL RECORD — SENATE March 16, 1999 across this river. You can see, at that Mr. President, this legislation rep- that if your word is your bond and the point it was nothing more than a few resents a fiscally responsible, environ- Federal Government said take this puddles. It had virtually dried up. Now, mentally sound, treaty-compliant ap- flood and we will provide these benefits since that time we have had major cit- proach to completing the Garrison for your State, and we need these bene- ies spring up, and we can’t face a cir- Project that was promised in North Da- fits for our State to be able to move cumstance in which those towns would kota. I look forward to continuing to good quality water around our State, be high and dry. Fargo, ND—I think work with Members of this body and for that reason we feel compelled to many people have heard of Fargo, ND— the other body and the administration say to the Federal Government, finish Grand Forks, ND; they are on the Red to advance this legislation. the job. River. They depend, for their water I thank the Chair, and I yield the That is what this legislation is supplies, on the Red River. Yet periodi- floor. about. It is not, as some environmental cally in history the Red River all but The PRESIDING OFFICER. The Sen- organizations insist, some new billion- dries up. We need to make certain that ator from North Dakota. dollar project. It is not that at all. In there is ample supplies of water so that Mr. DORGAN. Mr. President, I am fact, what we are doing will, in a minor we aren’t facing that circumstance. happy to join my colleague, Senator way, reduce the authorized project that The bill that we are offering today is CONRAD, on the introduction of the Da- already exists as a result of the 1965 au- addressing the current water needs of kota Water Resources Act of 1999. We thorization and the 1986 authorization. our State. Those needs are signifi- have previously introduced similar leg- This bill makes the final adjustments cantly different than what we faced in islation. to this project. 1944. We worked on this legislation with I have a series of charts which I will Let me briefly summarize the bill. It the Governor of North Dakota, as well not go through, recognizing that the provides $300 million for statewide as the bi-partisan leadership in the folks who are in charge of the timing of MR&I projects. It provides $200 million State legislature in North Dakota, this institution want to go to lunch. for tribal MR&I projects—in many Tribal leaders, and many others. Re- Let me come back at a more appro- cases, the water conditions on our res- publicans and Democrats together de- priate time and go through all of my ervations are even worse than the ones veloped a piece of legislation that we charts in great detail for the benefit of that I have shown that pertain in much think is not only good for our State everyone. of rural North Dakota—$200 million to and important for the State’s long- I will only say in closing that my col- deliver water to the Red River Valley term future, but which also completes league and I feel that this is a very im- to make certain that those towns and the promise that was given our State portant project and a bipartisan piece cities have reliable and adequate sup- many, many years ago. of legislation that will be good for this plies of water; $40 million to replace I will not talk about the specific pro- country, allow our country to keep its the dangerous Four Bears Bridge that visions of the bill in a way that will du- promise and will especially be a good was required because of flooding that plicate information which has already investment for North Dakota. My pre- occurred, a bridge was built—that been provided, but let me again de- pared remarks on the Dakota Water Resources Act will explain these points bridge is now badly out of date and scribe the story, just for a moment. in greater detail. dangerous—$25 million for a natural re- People say, Water projects—this is Mr. President, the new bill has been some kind of proposal to enrich your sources trust fund; $6.5 million for substantially modified in the form of a region of the country. Well, there is recreation projects; and an understand- substitute amendment (No. 3112) which more to the story. ing that the State pays for the project we introduced on July 9, 1998. This re- facilities that it uses. We think that is In the 1940s, we had a wild Missouri River that would periodically flood in a vised bill represents a bi-partisan con- a fundamental principle that ought to sensus carefully negotiated by the very significant way, and in the down- be recognized. major elected officials in our State. stream reaches of the river, Kansas Those are the key elements of the It’s a water development bill that I bill that we are offering. Let me say, City, MO, and elsewhere, areas would am proud to sponsor. It reduces Fed- this bill is friendly to taxpayers as have massive spring flooding. The Fed- eral costs, meets environmental and well, because our bill, while proposing eral Government said, Let’s put some international obligations, and fulfills $770 million of new authority to com- main stem dams on the Missouri River the Federal promise to address North plete the project, deauthorizes many in order to control that flooding. As we Dakota’s contemporary water needs. parts of the project that were pre- put these dams on that river, we will This is still among the most impor- viously authorized. The total project also be able to generate electricity tant pieces of legislation I will intro- cost of the Dakota Water Resources from those dams, so we will prevent duce for my State. I emphasize once Act would be roughly $1.5 billion, near- flooding and provide electrical bene- more that this is because the key to ly $500 million less than the current fits. It will be a wonderful opportunity. North Dakota’s economic development cost of constructing the remainder of North Dakota, your deal in this is to is water resource management and de- the 1986 project that is already author- accept a flood that comes and stays velopment. And the key to water devel- ized. In other words, we are trading in every year. You take a half-million- opment in my State has come to be the parts of the project that no longer acre flood that comes to your State Garrison Diversion Project in the Da- make the most sense in exchange for and stays there forever. If you are will- kota Water Resources Act of 1999. new elements which do make sense, ing to play host to a flood forever, we I want to share with my colleagues in and we are doing it in a way that is will make you a deal. We know it is not greater detail the frustrating story of cost-effective for the taxpayers, reduc- in your interest to say, please, bring us an unfulfilled promise to build a water ing the overall bill by $500 million. a permanent flood, so if you do that, project because some have questioned Now, there are some, representing we will make you a deal. Accept a the rationale for the project. I want to certain national environmental organi- flood—the size of the State of Rhode Is- explain why the people of North Da- zations that will remain unnamed here, land, by the way—and when that flood kota need and expect to have this who have said that this is nearly a bil- comes, you can take the water from be- promise fulfilled in the form of the Da- lion dollars of new spending. They hind the reservoir and move it around kota Water Resources Act. aren’t telling the truth. That is not the your State for water development and Over 100 years ago, John Wesley Pow- truth. We are reducing the spending by quality purposes. ell of the U.S. Geological Survey pre- deauthorizing certain features pre- That was the original Garrison pro- dicted to the North Dakota Constitu- viously authorized in exchange for new posal. Now, that promise, that commit- tional Convention that the lean years ones, less costly ones that make sense ment has not been kept. The flood in agriculture would cause ‘‘thousands in light of contemporary needs. came; that part of the bargain has been of people . . . (to) become discouraged Mr. President, North Dakota has kept. But we have not received the full and leave.’’ He was referring to the dif- been waiting a long time, a long time flower of benefits that we would expect ficulty of making a living on farms and for the promise to be kept to our State. as a result of the Federal commitment. ranches in a state with abundant water It is desperately needed. For that reason, we continue to insist but limited rainfall. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2735 Unfortunately, Powell’s prediction is come. Think, too, of Indian Tribes that The Southwest Pipeline constructed as telling today as it was in the last lost their traditional homelands, their by the Bureau of Reclamation has century. Thousands of North Dakotans economic and social base, hospitals and begun to solve water problems in the are leaving the State for economic op- roads, and a healthy lifestyle. Their region where I grew up. For example, portunities in cities such as Denver lives were disrupted and their culture in my hometown of Regent the ranch- and Minneapolis. Due to this substan- was turned upside down. ing family of Michelle McCormack tial out-migration only 7 North Dakota We were promised, in exchange, a used to struggle with coffee-colored counties, or less than one in seven, had major water and irrigation project. It water that stained their fixtures and population increases in the past dec- was designed to help meet the agricul- clogged their distiller with sludge. ade. What perhaps worries me even tural needs of a semi-arid state that Their well barely provided enough more is the fact that our farm youth gets only 15–17 inches of rainfall per water for a family of six, let alone a population has declined by 50% in both year. We originally expected the re- herd of cattle. Because of the Garrison of the last two decades. In other words, sources to irrigate over a million acres Project, the McCormacks can now out-migration is pummeling our of land, most of it in areas less produc- enjoy ample supplies of quality, clean State’s well-being and threatening our tive than the land lost to the Garrison water—something most of us take for economic future. Reservoir. The Federal Government granted. And they can make a better I would say to my colleagues that the eventually started a scaled-down ver- living to boot. root of the North Dakota’s problem is sion of the project, with 250,000 acres of We have also taken great strides to two-fold. One, we need to diversify our irrigation. In response to criticisms mitigate wildlife areas impacted by the agricultural base so that family farm- that the project was too costly and too development of the McClusky and New ers can make a more dependable living. environmentally disruptive, a federal Rockford Canals. We now have miti- This requires access to water for the commission proposed a major revision gated over 200% of the required lands, growth and processing of specialty in 1984 and made recommendations on developed a Wetlands Trust Fund and crops to replace or augment the usual how to meet the State’s contemporary programs, and begun to manage the grains that North Dakota farmers have water needs. former Lonetree Dam and Reservoir as But make no mistake, the promise grown for decades. Second, we must a state wildlife conservation area. Inci- remained. The Garrison Diversion Unit provide reliable supplies of clean, af- dentally, our new legislation would Commission stated: fordable water needed for economic complete the process by de-authorizing 1. The State of North Dakota deserves a growth in towns and cities across federally-funded water project, at least some the Lonetree features and converting North Dakota. Too many of them now of which should be in the form of irrigation them into a wildlife conservation area. lack dependable water supplies for mu- development, for land lost through inunda- For a variety of reasons, though, we nicipal and industrial growth. tion by reservoirs of the Pick-Sloan Missouri have not fully realized the promise of What we need, then, is water develop- Basin Program. the 1986 Act. Despite some strides, we ment. And we thought we would get it! 2. The Commission agrees with Congress have yet to develop a major irrigation Over fifty years ago, the Federal that a moral commitment was made in 1944 unit under the Garrison Diversion Government began building a series of to the Upper Basin States and Indian Tribes project. We have only been able to de- with the passage of the Flood Control Act of main stem dams on the Missouri River 1944. The language of the statute establish- velop a pilot research plot near Oakes, to provide flood protection, dependable ing this commission reinforces this view. which has validated the use of irriga- river navigation and inexpensive hy- The State of North Dakota sacrificed hun- tion for growing high value crops in dropower—primarily for the benefit of dreds of thousands of acres, much of it prime North Dakota. Under terms of the 1986 states in the Lower Missouri Basin. river bottomland, for the greater benefit of Act, we would have 130,000 acres of irri- The problem became acute when flood- the nation. In return, the Federal Govern- gation, which will be scaled back to ing during World War II disrupted the ment promised assistance in replacement of 70,000 acres in the bill we introduce the economic base of the State and Indian transport of war supplies and spawned Tribes. There is evidence this has not taken today. This will reduce project costs disaster relief needs in a budget al- place. and target limited funds in the bill on ready over-stretched. In 1986, I renegotiated the project high priority irrigation and MR&I When North Dakota allowed the Gar- with the Reagan Administration, the water development. rison Dam and Reservoir to be built in House Interior Committee, and na- We have completed Phase 1 of Munic- the State (and the consequences of the tional environmental groups and these ipal, Rural and Industrial development Oahe Reservoir in South Dakota are talks resulted in the Garrison Diver- for three Indian tribes. There remains added in), it agreed to host permanent sion Reformulation Act of 1986. The well over $200 million in needs to com- floods that inundated 500,000 acres of law implemented the Garrison Com- plete projects on all four reservations prime farm land and the Indian com- mission findings and recommendations which will meet the charge of the Gar- munities on two reservations. The and included a 130,000 acre irrigation rison Reformulation Act for the Sec- State and Tribes did so in exchange for project for the State and tribes, the retary of the Interior ‘‘to meet the eco- a promise that the Federal Govern- promise of Missouri River water to nomic, public health, and environ- ment would replace the loss of these augment water supplies in the Red mental needs’’ of North Dakota tribes. economic and social assets with a River Valley, an installment on munic- From hearings I have held on the res- major water development project, the ipal, industrial, and rural (MR&I) ervations, I can tell you that tribal Garrison Diversion Unit. water for communities across the members have some the worst water But 50 years later, the project is less State, the initial water systems for the problems in the nation and we must than half done. Standing Rock, Fort Berthold, and Ft. fulfill the 1986 mandate. Our new legis- I would like to explain for the benefit Totten Indian reservations and a range lation will provide $200 million to meet of my colleagues just how this bill re- of activities to mitigate and enhance the critical water needs of North Dako- lates to the Federal commitment to wildlife and habitat. ta’s four Indian nations. my State, what progress has been made So you may ask, ‘‘What progress has We have developed major elements of on that commitment, what remains to been made on the project?’’ a water delivery system for the Red be done, and how this bill will complete Although the promise of irrigation River Valley. But the Bureau of Rec- the project in a prudent way. remains largely unfulfilled—with the lamation is currently reviewing that May I remind my colleagues that the exception of the Oakes Test Area—we issue with the State of North Dakota State lost a half million acres of prime have made substantial progress in lay- to determine the best way to meet the farm land, a major component of its ing the groundwork for water delivery needs of Fargo, Grand Forks, and other overall economic base. To grasp the and the provision of a partial network communities throughout the Red River size of this negative impact, I ask my for MR&I supplies across the state. Valley. colleagues to think of flooding a chunk Over one-third of North Dakotans Let me illustrate the severity of the of farm land the size of Rhode Island. now benefit from 25 MRI programs on problem for the valley by noting that As a result, North Dakota has lost hun- four Indian reservations and in some 80 in many years in this century, the Red dreds of millions of dollars in farm in- communities. River either has slowed to a trickle or S2736 CONGRESSIONAL RECORD — SENATE March 16, 1999 stopped running altogether. Imagine a costs, meeting tough environmental tween basins. Again, the Secretary of major city that depends on a river for standards, strengthening compliance Interior chooses the Red River Valley its municipal and industrial water sup- with an international border agree- water supply plan, but if that choice ply and that river stops running. That ment, and reaffirming the role of the entails diversion of Missouri River is why our bill provides $200 million to Secretary of the Interior in decision- water, then it must be fully treated meet the critical water needs the most making. The bi-partisan elected lead- with state-of-the-art purification and populous part of our state. But let me ers embraced those changes and have screening to prevent biota transfer. add that this money will be fully re- agreed to re-introduce the Dakota And as noted before, the bill de-author- paid by water users. Water Resources Act with the same izes the Lonetree features to which Finally, we have dozens of commu- language as the substitute amendment Canada previously had objected. nities awaiting the promise of reliable (No. 3112) which I offered with Senator Fourth, the revised bill strengthens supplies of clean and usable water. In CONRAD last year. environmental protection and does so several hearings I have held up bottles Mr. President, permit me to outline by incorporating the specific rec- of coffee-like water from the McCor- the specific provisions in the new ver- ommendations of North Dakota wild- mack ranch and several others, which sion of the bill: life and conservation groups. It have not yet been served by such 1. Retain the cost share of 25% for lengthens the periods for completing projects as the Southwest Pipeline or MR&I projects, along with a credit for Environmental Impact Statements. It the Northwest Area Water System. cost share contributions exceeding that also protects the Sheyenne Lake Na- Patsy Storhoff’s family, for one, has amount. This, in place of a 15% cost tional Wildlife Refuge. Moreover, it to haul and store water for their house- share. preserves the role of the Secretary of hold use. At times, they make 1,400 gal- 2. Reimburse the federal government the Interior on compliance matters and lons last up to three weeks—what most for the share of the capacity of the drops the provision that called for a families tap in just five days. She main stem delivery features which are study of bank stabilization on the Mis- sometimes tells her kids they have to used by the state. This, instead of writ- souri River. postpone a bath in order to conserve ing off these features. In other words, these measures im- scarce water because the neighbor who 3. Index MR&I and Red River features prove even more the proposals in the hauls their water won’t get to Nome only from the date of enactment, not 1985 Garrison Commission Report on for a couple more days. Although when since 1986. how to meet North Dakota’s contem- you pause to think about it, taking a 4. Expressly bar any irrigation in the porary water needs. This sounds rea- bath in coffee-like water is a liquid Hudson’s Bay Basin. sonable, but how does it stack up oxymoron. 5. Give the Secretary of the Interior against the fiscal and environmental In part because the State would fore- the authority to select the Red River challenges of 1999? go 60,000 acres of irrigation in this bill Valley Water Supply feature and to de- Irrespective of the Federal commit- and because we have realized only half termine the feasibility of any newly ment to North Dakota, the State has of the Garrison Commission’s promise authorized irrigation areas in the not even received a proportional share of MR&I water for nearly 400,000 North scaled-back package. of Bureau of Reclamation funds. Al- Dakotans, we do provide $300 million 6. Extend the Environmental Impact though my state includes six percent of for MR&I development across the Studies period and firm up Boundary the population in western states, it has state. That amount, plus the existing Waters Treaty measures. received only two percent of Bureau $200 million in authority for MR&I, Taken together with prior provisions, funding. will roughly match the amount prom- these changes achieve four purposes. Next, most Bureau projects were ised by the Commission and the 1986 First, they reduce costs by limiting in- awarded to augment water develop- Act. dexing; by defining specific State re- ment and economic growth, not to So the Dakota Water Resources Act sponsibility for repayment of existing compensate states for losses suffered provides $700 million in new authority features instead of blanket debt for- from the construction of flood control for water development, of which $200 giveness; by de-authorizing such major projects by the Corps of Engineers. So million is fully repayable. In order to irrigation features as the Lonetree just on the equities, North Dakota has complete this project, however, North Dam and Reservoir, James River Feed- a fair claim to complete Garrison Dakota has had to make some major er Canal and Sykeston Canal; and by project. changes. In November of 1997, the dele- retaining current law with respect to The revised bill will also save the gation introduced the Dakota Water MR&I cost-sharing and repayment for American taxpayer $500 million—when Resources Act as a bill that reflected a Red River supply features. compared to the cost of completing the consensus of the bi-partisan elected Second, the changes affirm the deci- current project. Moreover, of the $770 leadership of the state, major cities, sion making authority of the Secretary million in new authority in the revised four tribal governments, water users, of the Interior on key issues. The Sec- bill, North Dakota will repay $345 mil- conservation groups, the State Water retary consults with the State of North lion—almost half. There is no blanket Coalition, and the Garrison Conser- Dakota on the plan to meet the water debt retirement because North Dakota vancy District. needs of the Red River Valley but he will pay for all facilities it uses. In a word, the bill scaled back irriga- makes the final selection of the plan Moreover, this bill is not just about tion from 130,000 to 70,000 acres, pro- that works best. The Secretary also ne- costs, though reduced and restrained, vided new resources to complete the gotiates cooperative agreements with but about investments. The Dakota major MR&I delivery systems for the the State on other aspects of the Water Resources Act underpins North four Indian tribes and the state’s water project. These arrangements protect Dakota’s entire effort to stop the out- supply network, and provided a process the Federal interest while assuring migration of its young people, the for choosing the best way to address that North Dakota is a partner in a dwindling of family farms, and the dec- Red River Valley water needs. It also project so closely linked to its destiny. imation of rural communities. It is a made wildlife conservation a project Third, the bill forthrightly addresses charter for rural renewal and economic purpose, expanded the Wetlands Trust concerns of Canada. The U.S. and Can- growth that will help family farms into a more robust Natural Resources ada have a mutual responsibility to keep the yard lights burning and small Trust, funded a critical bridge on the abide by the Boundary Waters Treaty towns keep their shop signs glowing. Ft. Berthold Reservation and a few pri- and other environmental conventions. Finally, this bill is environmentally ority recreation projects. The Dakota Water Resources Act sound. It does not destroy wetlands, it Subsequently, the Bureau of Rec- states in the purpose that the United preserves them. It preserves grasslands lamation raised several questions and States must comply strictly with the and riparian habitat, too. It was not concerns about the bill which we have Treaty. It further bars any irrigation dreamed up by a water development addressed in a series of negotiations in the Hudson’s Bay drainage with group. It was drafted with the input of and discussions over the past months. water diverted from the Missouri tribal and community leaders, local The revisions mainly address reducing River, thus limiting biota transfer be- and national environmental groups, March 16, 1999 CONGRESSIONAL RECORD — SENATE S2737 the bipartisan leadership of the state, These health problems are magnified ervation, as well as the surrounding and the Bureau of Reclamation and Of- by the poor drinking water currently communities in my great state of Mon- fice of Management and Budget. It re- available on the reservation. In one tana, something that each and every- flects a balanced approach to water re- community, the sulfate levels in the one one of us in this body take for source development that applies the water are four times the standard for granted everyday—a safe and reliable principles of conservation while offer- safe drinking water. In four other com- water supply. ing the hope of economic development. munities, the iron levels are five times This legislation authorizes a munici- Ultimately, this bill practices the the standard. Some families have even pal, rural and industrial water system policy of being a good neighbor that is been forced to abandon their homes as for the Fort Peck Reservation and the the hallmark of our state. The Govern- a result of the substandard water qual- surrounding communities off the Res- ment of Canada approved the 1986 Gar- ity. ervation who compose the Dry Prairie rison Act. This bill provides even more In many cases, residents of the res- Water Association. Using a small protection for Canadian interests. So ervation purchased bottled water to amount of water from the Missouri while we can’t appease the political avoid illness. While this isn’t a big deal River, this project will benefit the en- agendas of certain folks in Canada, we to those who can afford it, we are deal- can sure keep faith with the Boundary ing with an area living in extreme pov- tire region of Northeast Montana. This Waters Treaty. And we do. erty. To add insult to injury, one of the legislation has the support of the State In conclusion, the Dakota Water Re- largest man made reservoirs in the of Montana, the residents of the Fort sources Act of 1999 will guarantee that United States is right down the road. Peck Reservation, the Tribal Council this project meets the tests of fiscal re- Why must we continue to ask the resi- of the Assiniboine and Sioux Tribes, sponsibility, environmental protection, dents of these communities to place and all of the towns and communities and treaty compliance. It will do so their health at risk when a clean, safe, surrounding the Reservation. while also addressing the critical water stable source of water is readily avail- I am proud to sponsor this legislation development needs of North Dakota able? because it represents the coming to- and fulfilling the Federal obligation for The economic health of the region is gether of people who have traditionally water development for the commu- also affected by the poor water supply. been divided on many issues. The need nities and tribes of our State. Accord- In fact, a major constraint on the for water has surfaced a tremendous ingly, I urge that my colleagues sup- growth of the livestock industry show of friendship and trust in North- port the Dakota Water Resources Act around Fort Peck has been the lack of east Montana. This project has given of 1999. an adequate watering sites for cattle. the Fort Peck Assiniboine and Sioux Only an adequate water system will Tribes and the off-Reservation public By Mr. BURNS (for himself and solve this problem, and hopefully serve common ground to work towards and Mr. BAUCUS): to spur economic activity on the res- provided the trust needed for rural S. 624. A bill to authorize construc- ervation. Recently the administration communities to grow and prosper. The tion of the Fort Peck Reservation designated this area as an ‘‘Empower- need for water exists not only for Rural Water System in the State of ment Zone.’’ The purpose of this des- drinking, but also for agricultural, mu- Montana, and for other purposes; to ignation is to help the tribal govern- nicipal, and industrial purposes. the Committee on Energy and Natural ment enhance the economic and social Together, the people in this region Resources. well-being of the area’s residents. What FORT PECK RURAL WATER SYSTEM better foundation can we provide than are plagued with major drinking water Mr. BURNS. Mr. President, I rise a safe and reliable water infrastruc- problems. The Reservation and sur- today to introduce a piece of legisla- ture. This region’s aspirations towards rounding communities are clearly in tion that is vitally important for the being healthy, both economically and desperate need of a safe and good Northeast corner of my great state of physically, will continue to be stifled source of drinking water. In one com- Montana. As you are aware, water is until we reach out a helping hand and munity, the sulfate levels in the water the most valuable commodity in the work towards providing a safe water are four times the standard for safe West. Unfortunately, in many parts of system. drinking water. In four of the commu- the West the water available is unsafe This legislation, which has the sup- nities, iron levels are five times the to use. This is the case on the Fort port of Fort Peck residents and the en- standard. Sadly, some residents have Peck Reservation and in the surround- dorsement of the Tribal Council of the been forced to abandon their homes ing communities. Assiniboine and Sioux Tribes, would and their farms because their only These communities are currently de- authorize a reservation-wide munici- source of water has been polluted with pendent on water sources that are ei- pal, rural and industrial water system brine from oil production. ther unreliable or contaminated. In for the Fort Peck Reservation. A safe In all of the communities throughout some areas the ground water is in short and reliable source of water would im- the Reservation, groundwater exceeds supply, in others high levels of ni- prove the health status of the residents the standards for total dissolved solids, trates, sulfates, manganese, iron, dis- and increase the region’s iron, sulfates, and nitrates. In some in- solved solids and other contaminates attractiveness for economic develop- stances, more lethal minerals such as ensure that the water is not only unus- ment. selenium, manganese, and fluorine are able for human consumption, but even As the future water needs of the Fort found in high concentrations. unusable for livestock. Quite simply, Peck Reservation expand, I believe the water is not safe. In the area north of Culbertson, ni- that it is only right that we take ac- trate levels are too high to safely use Safe drinking water is a necessity in tion now. The people of the Fort Peck all communities, however, these com- ground water. Along the Eastern bor- Reservation and the State of Montana ders, from Froid to Plentywood, the munities have a very unique set of are making a simple request—clean, needs that underscore the importance high manganese, iron and total dis- safe drinking water. solved solids, make treating the water of clean water. This legislation would Thank you Mr. President. very expensive. In the Northeast, near ensure the Assiniboine and Sioux peo- f ple of the Fort Peck Reservation a safe Westby, there is oil field contamina- and reliable water supply system. One FORT PECK RESERVATION RURAL tion from seismographing and salt of the largest reservations in the na- WATER SYSTEM ACT OF 1999 water injection methods. tion, the Fort Peck Reservation is lo- ∑ Mr. BAUCUS. Mr. President, I rise In the middle of the service area, cated in Northeastern Montana and is today with my colleague, Senator near Flaxville, nitrates and sulfates ex- the home of more than 10,000 people. In BURNS, to introduce the ‘‘Fort Peck ceed safe drinking water standards addition to a 75 percent unemployment Reservation Rural Water System Act also. Finally, in the west, in the St. rate, the residents suffer from unusu- of 1999.’’ This bill, which is broadly Marie area, ground water is so hard ally high incidents of heart disease, supported, will ensure the Assiniboine and in such short supply that it is un- high blood pressure and diabetes. and Sioux people of the Fort Peck Res- usable. In addition, several local water S2738 CONGRESSIONAL RECORD — SENATE March 16, 1999 systems have had occurrences of bio- The bill I’m introducing today makes judge will have the chance to review logical contamination. important changes to the conference the merits of each and every case. I As a result of the poor water that ex- report from last year to accommodate want to repeat this: Each and every ists here, the Indian Health Service has concerns raised by some Senators. chapter 7 debtor who meets the means- issued several public health alerts. In The need for real bankruptcy reform test will receive an individual hearing most communities in this region, resi- is pretty obvious. You don’t need an to press his or her own unique case be- dents are forced to buy bottled water army of so-called scientists, law profes- fore anything happens. In other words, at a cost of at least $75 a month. Those sors and academics to tell us that we this bill maintains much of the judicial who cannot afford to buy bottled have a serious bankruptcy problem. scrutiny and discretion that was the water—of whom there are many—must These are good times in America. distinguishing factor of the Senate continue to use the existing water Thanks to the hard work of a Repub- bill’s means-test in the 105th Congress. sources, at great risk to their health. lican Congress, we have the first bal- In the bill Senator TORRICELLI and I Yet, despite the above mentioned anced budget in a generation. Unem- are introducing today, there is more health risks, an ideal source of safe ployment is low, we have a solid stock flexibility given to the bankruptcy water, the Missouri River, flows past market and most Americans are opti- judge. mistic about the future. these people every day. Under the Grassley-Torricelli bill, Despite the prosperity we are experi- In addition to the need for safe drink- there are even greater consumer pro- encing now, About one and a half mil- ing water, an adequate source of water tections than were in last year’s con- lion Americans will declare bank- is needed to preserve and protect agri- ference report. For instance, in order ruptcy this year if previous trends con- cultural operations. As you know Mr. to protect consumers from deceptive tinue. Since 1990, the rate of personal President, Northeast Montana relies and coercive collection Practices, the bankruptcy filings are up an amazing almost exclusively on agriculture to Justice Department and the FBI are di- 94.7 percent. That’s almost a 100 per- survive. The changing agricultural in- rected to appoint one agent and one cent increase in bankruptcies since dustry has brought high unemploy- prosecutor to investigate abusive or de- ment and low family income to this 1990. Clearly something is amiss, and to ceptive reaffirmation practices. Sears area. To compete in these challenging recently plead guilty in Massachusetts times, most agriculture producers in paraphrase, ‘‘it’s not the economy stu- pid.’’ The problem with the explosion to bankruptcy fraud in connection with rural America are adding value to the its business practices in seeking re- products they grow. To add value how- in bankruptcies lies elsewhere. While many Americans who declare bank- affirmations, and agreed to pay 60 mil- ever, you must have processing facili- lion dollars in fines. ties that allow you to manufacture a ruptcy undoubtedly need a fresh start, high quality, finished product. The peo- it defies common sense to think that I think this shows that we already ple of Northeast Montana do not have all of the million and a half Americans have tough laws on the books regard- the quality of water needed to support in bankruptcy court can’t repay at ing reaffirmations. What we need is industry of this kind. The region’s abil- least some of their debts. The point of better law enforcement, not new laws. ity to supply employment and compete bankruptcy reform is to limit chapter That’s why we require the Justice De- in agriculture is destroyed without es- 7—which provides for a no-questions partment and the FBI to designate a sential infrastructure. asked complete discharge of debts—to person to investigate reaffirmation I have described a desperate and com- people who don’t have the ability to practices. Under the Grassley- plex situation, Mr. President. The solu- repay any of their debts. People who Torricelli bill, State attorney generals tion however, is simple. We need to can repay some or all of their debts may enforce State criminal statutes provide a water system that will de- should be required to do so in a chapter similar to those under which Sears was liver a safe and good source of water to 13 repayment plan. prosecuted, and the State attorney the residents of the Region. Fortu- An important aspect to remember generals are given the express author- nately, most of the work has been about bankruptcies is that we all have ity to enforce consumer protections al- done. By working together on a local to pick up the tab for bankrupts who ready in the bankruptcy code. Taken and state level, these groups have walk away from their debts. Businesses together, these provisions amount to a struck a deal that provides an adequate have to raise prices on products and massive infusion of Federal and State source of water for all who need it, for services to offset bankruptcy losses. law enforcment resources for the pur- this generation of users and for future When you realize this, it becomes very pose of protecting consumers in bank- generations. By using a small amount apparent that allowing unfettered ac- ruptcy court from abusive collection of water from the Missouri River, com- cess to chapter 7 bankruptcy for high tactics. bined with the structure this bill pro- income people is a lot like a special in- The Grassley-Torricelli bill retains vides, residents of Northeast Montana terest tax loophole. Over 30 years ago, all the protections for child support in will be able to enjoy the same, safe Senator Albert Gore, Sr. recognized last year’s conference report, with im- water supply that you and I do. this in a speech on the Senate floor. portant new additions. Now, bank- I look forward to swift passage of According to Senator Gore, like tax ruptcy trustees would be required to this legislation.∑ loopholes, chapter 7 allows someone to notify State enforcment agencies of a get out of paying his fair share and to bankrupt’s address and telephone num- By Mr. GRASSLEY (for himself, shift the cost to hardworking Ameri- ber if the bankrupt owes child support. Mr. TORRICELLI, Mr. BIDEN, and cans who play by the rules. This means that the bankruptcy court Mr. SESSIONS): I think that Senator Gore had it ex- will now help to track down dead-beat S. 625. A bill to amend title 11, actly right. Bankruptcy reform is all parents. United States Code, and for other pur- about closing loopholes so higher in- poses; to the Committee on the Judici- come can’t get out of paying their fair Also, the bill I’m introducing today ary. share. also provides that debts incurred prior THE BANKRUPTCY REFORM ACT OF 1999 As I indicated earlier, the bill I’m in- to bankruptcy to pay off non-dis- Mr. GRASSLEY. Mr. President, I rise troducing now contains significant chargeable debts will still be discharge- today to introduce ‘‘The Bankruptcy modifications to accommodate the con- able if the bankrupt owes child sup- Reform Act of 1999’’ with Senators cerns raised by some Senators. At the port. This means that child support TORRICELLI and BIDEN. This bill builds outset, I want to make it clear that, as will never have to compete with this on the conference report which the was the case with the original Senate new category of non-dischargeable debt Senate and House produced at the end bill from last Congress, under this bill, after bankruptcy. Taken together, of the 105th Congress, which melded to- a person in financial trouble can file in these provisions will provide key new gether good legislation from both the any chapter of the bankruptcy code he protections for child support claim- Senate and the House to create a final or she chooses. And before a debtor can ants. product that combined the best aspects be transferred from chapter 7 to chap- Mr. President, in addition to the con- of both bills. ter 13 or kicked out of bankruptcy, a sumer provisions, the Grassley- March 16, 1999 CONGRESSIONAL RECORD — SENATE S2739 Torricelli bill also contains numerous Sec. 204. Discouraging abuse of reaffirma- Sec. 406. Creditors and equity security hold- changes to improve the bankruptcy tion practices. ers committees. code for businesses. The bill makes nu- Subtitle B—Priority Child Support Sec. 407. Amendment to section 546 of title 11, United States Code. Sec. 211. Priorities for claims for domestic merous changes to the treatment of Sec. 408. Limitation. support obligations. tax claims in bankruptcy, and I expect Sec. 409. Amendment to section 330(a) of Sec. 212. Requirements to obtain confirma- that these provision will be refined on title 11, United States Code. tion and discharge in cases in- the floor as the Finance Committee Sec. 410. Postpetition disclosure and solici- volving domestic support obli- tation. makes some suggestions. gations. Sec. 411. Preferences. The bill also creates a new chapter 15 Sec. 213. Exceptions to automatic stay in Sec. 412. Venue of certain proceedings. to address the growing problem on domestic support obligation transnational bankruptcies. Sec. 413. Period for filing plan under chapter proceedings. 11. The bill contains provisions to make Sec. 214. Nondischargeability of certain Sec. 414. Fees arising from certain owner- chapter 12 permanent and to expand ac- debts for alimony, mainte- ship interests. cess to chapter 12. nance, and support. Sec. 415. Creditor representation at first The bill contains an entire title dedi- Sec. 215. Continued liability of property. meeting of creditors. Sec. 216. Protection of domestic support Sec. 416. Elimination of certain fees payable cated to expediting chapter 11 proceed- claims against preferential ings for small businesses. in chapter 11 bankruptcy cases. transfer motions. Sec. 417. Definition of disinterested person. One business-related provision I want Sec. 217. Amendment to section 1325 of title Sec. 418. Factors for compensation of profes- to high-light relates to protecting pa- 11, United States Code. sional persons. Sec. 218. Definition of domestic support obli- tients when hospitals and health-care Sec. 419. Appointment of elected trustee. businesses declare bankruptcy. I gation. Sec. 219. Collection of child support. Subtitle B—Small Business Bankruptcy chaired a hearing on this topic last Provisions year and I was shocked to realize that Subtitle C—Other Consumer Protections Sec. 421. Flexible rules for disclosure state- Sec. 221. Definitions. the bankruptcy code doesn’t require ment and plan. Sec. 222. Disclosures. bankruptcy trustees and creditor com- Sec. 422. Definitions; effect of discharge. Sec. 223. Debtor’s bill of rights. mittees to consider the welfare of pa- Sec. 423. Standard form disclosure state- Sec. 224. Enforcement. tients when closing down or re-organiz- Sec. 225. Sense of Congress. ment and plan. ing a hospital or nursing home. So, Sec. 226. Additional amendments to title 11, Sec. 424. Uniform national reporting re- under the Grassley-Torricelli bill, United States Code. quirements. whenever a hospital or nursing home Sec. 425. Uniform reporting rules and forms TITLE III—DISCOURAGING BANKRUPTCY for small business cases. declares bankruptcy a patient ombuds- ABUSE Sec. 426. Duties in small business cases. man will be appointed to represent the Sec. 301. Reinforcement of the fresh start. Sec. 427. Plan filing and confirmation dead- interests of patients during bankruptcy Sec. 302. Discouraging bad faith repeat fil- lines. proceedings. And bankruptcy trustees ings. Sec. 428. Plan confirmation deadline. are required to safeguard the privacy of Sec. 303. Curbing abusive filings. Sec. 429. Prohibition against extension of medical records when closing a health Sec. 304. Debtor retention of personal prop- time. erty security. Sec. 430. Duties of the United States trustee. care business. These provisions will Sec. 305. Relief from the automatic stay provide significant protections for pa- Sec. 431. Scheduling conferences. when the debtor does not com- Sec. 432. Serial filer provisions. tients in bankruptcy proceedings. plete intended surrender of con- Sec. 433. Expanded grounds for dismissal or Mr. President, this bill contains sumer debt collateral. conversion and appointment of many much-needed reforms. This bill is Sec. 306. Giving secured creditors fair treat- trustee. fair, balanced and should receive ment in chapter 13. Sec. 434. Study of operation of title 11, strong bi-partisan support. I ask unani- Sec. 307. Exemptions. United States Code, with re- mous consent to print the bill in the Sec. 308. Residency requirement for home- spect to small businesses. stead exemption. Sec. 435. Payment of interest. RECORD as there is much public inter- Sec. 309. Protecting secured creditors in TITLE V—MUNICIPAL BANKRUPTCY est in bankruptcy reform and I want to chapter 13 cases. PROVISIONS get as much information out as pos- Sec. 310. Limitation on luxury goods. sible. I also ask unanimous consent to Sec. 311. Automatic stay. Sec. 501. Petition and proceedings related to petition. print in the RECORD a summary of the Sec. 312. Extension of period between bank- ruptcy discharges. Sec. 502. Applicability of other sections to major differences between this bill and chapter 9. the conference report from last year. Sec. 313. Definition of household goods and antiques. TITLE VI—IMPROVED BANKRUPTCY There being no objection, the mate- Sec. 314. Debt incurred to pay nondischarge- STATISTICS AND DATA rial was ordered to be printed in the able debts. Sec. 601. Audit procedures. RECORD, as follows: Sec. 315. Giving creditors fair notice in Sec. 602. Improved bankruptcy statistics. S. 625 chapters 7 and 13 cases. Sec. 603. Uniform rules for the collection of Be it enacted by the Senate and House of Rep- Sec. 316. Dismissal for failure to timely file bankruptcy data. resentatives of the United States of America in schedules or provide required Sec. 604. Sense of Congress regarding avail- Congress assembled, information. ability of bankruptcy data. Sec. 317. Adequate time to prepare for hear- SECTION 1. SHORT TITLE; TABLE OF CONTENTS. TITLE VII—BANKRUPTCY TAX ing on confirmation of the plan. (a) SHORT TITLE.—This Act may be cited as PROVISIONS Sec. 318. Chapter 13 plans to have a 5-year the ‘‘Bankruptcy Reform Act of 1999’’. duration in certain cases. Sec. 701. Treatment of certain liens. (b) TABLE OF CONTENTS.—The table of con- Sec. 319. Sense of the Congress regarding ex- Sec. 702. Effective notice to government. tents of this Act is as follows: pansion of rule 9011 of the Fed- Sec. 703. Notice of request for a determina- Sec. 1. Short title; table of contents. eral Rules of Bankruptcy Pro- tion of taxes. TITLE I—NEEDS-BASED BANKRUPTCY cedure. Sec. 704. Rate of interest on tax claims. Sec. 101. Conversion. Sec. 320. Prompt relief from stay in individ- Sec. 705. Tolling of priority of tax claim Sec. 102. Dismissal or conversion. ual cases. time periods. Sec. 706. Priority property taxes incurred. Sec. 103. Notice of alternatives. TITLE IV—GENERAL AND SMALL Sec. 707. Chapter 13 discharge of fraudulent Sec. 104. Debtor financial management BUSINESS BANKRUPTCY PROVISIONS and other taxes. training test program. Subtitle A—General Business Bankruptcy Sec. 105. Credit counseling. Sec. 708. Chapter 11 discharge of fraudulent Provisions taxes. TITLE II—ENHANCED CONSUMER Sec. 401. Rolling stock equipment. Sec. 709. Stay of tax proceedings. PROTECTION Sec. 402. Adequate protection for investors. Sec. 710. Periodic payment of taxes in chap- Subtitle A—Penalties for Abusive Creditor Sec. 403. Meetings of creditors and equity se- ter 11 cases. Practices curity holders. Sec. 711. Avoidance of statutory tax liens Sec. 201. Promotion of alternative dispute Sec. 404. Protection of refinance of security prohibited. resolution. interest. Sec. 712. Payment of taxes in the conduct of Sec. 202. Effect of discharge. Sec. 405. Executory contracts and unexpired business. Sec. 203. Violations of the automatic stay. leases. Sec. 713. Tardily filed priority tax claims. S2740 CONGRESSIONAL RECORD — SENATE March 16, 1999 Sec. 714. Income tax returns prepared by tax TITLE I—NEEDS-BASED BANKRUPTCY ‘‘(iii) The presumption of abuse may be re- authorities. SEC. 101. CONVERSION. butted if the additional expenses or adjust- Sec. 715. Discharge of the estate’s liability Section 706(c) of title 11, United States ments to income referred to in clause (i) for unpaid taxes. Code, is amended by inserting ‘‘or consents cause the product of the debtor’s current Sec. 716. Requirement to file tax returns to to’’ after ‘‘requests’’. monthly income reduced by the amounts de- confirm chapter 13 plans. SEC. 102. DISMISSAL OR CONVERSION. termined under clauses (ii), (iii), and (iv) of Sec. 717. Standards for tax disclosure. (a) IN GENERAL.—Section 707 of title 11, subparagraph (A) multiplied by 60 to be less Sec. 718. Setoff of tax refunds. United States Code, is amended— than the lesser of— TITLE VIII—ANCILLARY AND OTHER (1) by striking the section heading and in- ‘‘(I) 25 percent of the debtor’s nonpriority CROSS-BORDER CASES serting the following: unsecured claims; or Sec. 801. Amendment to add chapter 15 to ‘‘§ 707. Dismissal of a case or conversion to a ‘‘(II) $15,000. ‘‘(C)(i) As part of the schedule of current title 11, United States Code. case under chapter 13’’; Sec. 802. Amendments to other chapters in income and expenditures required under sec- title 11, United States Code. and tion 521, the debtor shall include a statement Sec. 803. Claims relating to insurance depos- (2) in subsection (b)— of the debtor’s current monthly income, and its in cases ancillary to foreign (A) by inserting ‘‘(1)’’ after ‘‘(b)’’; the calculations that determine whether a proceedings. (B) in paragraph (1), as redesignated by presumption arises under subparagraph subparagraph (A) of this paragraph— TITLE IX—FINANCIAL CONTRACT (A)(i), that shows how each such amount is (i) in the first sentence— PROVISIONSCONTRACTS. calculated. (I) by striking ‘‘but not at the request or ‘‘(ii) The Supreme Court shall promulgate Sec. 901. Bankruptcy Code amendments. suggestion’’ and inserting ‘‘, panel trustee rules under section 2075 of title 28, that pre- Sec. 902. Damage measure. or’’; scribe a form for a statement under clause (i) Sec. 903. Asset-backed securitizations. (II) by inserting ‘‘, or, with the debtor’s Sec. 904. Effective date; application of and may provide general rules on the con- consent, convert such a case to a case under amendments. tent of the statement. chapter 13 of this title,’’ after ‘‘consumer ‘‘(3) In considering under paragraph (1) TITLE X—PROTECTION OF FAMILY debts’’; and whether the granting of relief would be an FARMERS (III) by striking ‘‘substantial abuse’’ and abuse of the provisions of this chapter in a Sec. 1001. Reenactment of chapter 12. inserting ‘‘abuse’’; and case in which the presumption in subpara- Sec. 1002. Debt limit increase. (ii) by striking the next to last sentence; graph (A)(i) of such paragraph does not apply Sec. 1003. Elimination of requirement that and or has been rebutted, the court shall family farmer and spouse re- (C) by adding at the end the following: consider— ceive over 50 percent of income ‘‘(2)(A)(i) In considering under paragraph ‘‘(A) whether the debtor filed the petition from farming operation in year (1) whether the granting of relief would be an in bad faith; or prior to bankruptcy. abuse of the provisions of this chapter, the ‘‘(B) the totality of the circumstances (in- Sec. 1004. Certain claims owed to govern- court shall presume abuse exists if the debt- cluding whether the debtor seeks to reject a mental units. or’s current monthly income reduced by the personal services contract and the financial TITLE XI—HEALTH CARE AND amounts determined under clauses (ii), (iii), need for such rejection as sought by the EMPLOYEE BENEFITS and (iv), and multiplied by 60 is not less than debtor) of the debtor’s financial situation Sec. 1101. Definitions. the lesser of— demonstrates abuse.’’. Sec. 1102. Disposal of patient records. ‘‘(I) 25 percent of the debtor’s nonpriority (b) DEFINITION.—Title 11, United States Sec. 1103. Administrative expense claim for unsecured claims in the case; or Code, is amended— costs of closing a health care ‘‘(II) $15,000. (1) in section 101, by inserting after para- business. ‘‘(ii) The debtor’s monthly expenses shall graph (10) the following: Sec. 1104. Appointment of ombudsman to act be the applicable monthly (excluding pay- ‘‘(10A) ‘current monthly income’— as patient advocate. ments for debts) expenses under standards ‘‘(A) means the average monthly income Sec. 1105. Debtor in possession; duty of issued by the Internal Revenue Service for from all sources which the debtor, or in a trustee to transfer patients. the area in which the debtor resides, as in ef- joint case, the debtor and the debtor’s TITLE XII—TECHNICAL AMENDMENTS fect on the date of the entry of the order for spouse, receive without regard to whether relief, for the debtor, the dependents of the Sec. 1201. Definitions. the income is taxable income, derived during debtor, and the spouse of the debtor in a Sec. 1202. Adjustment of dollar amounts. the 180-day period preceding the date of de- joint case, if the spouse is not otherwise a Sec. 1203. Extension of time. termination; and Sec. 1204. Technical amendments. dependent. ‘‘(iii) The debtor’s average monthly pay- ‘‘(B) includes any amount paid by any en- Sec. 1205. Penalty for persons who neg- ments on account of secured debts shall be tity other than the debtor (or, in a joint ligently or fraudulently prepare calculated as— case, the debtor and the debtor’s spouse), on bankruptcy petitions. ‘‘(I) the total of all amounts scheduled as a regular basis to the household expenses of Sec. 1206. Limitation on compensation of contractually due to secured creditors in the debtor or the debtor’s dependents (and, professional persons. in a joint case, the debtor’s spouse if not oth- Sec. 1207. Special tax provisions. each month of the 60 months following the date of the petition; divided by erwise a dependent);’’; and Sec. 1208. Effect of conversion. (2) in section 704— Sec. 1209. Allowance of administrative ex- ‘‘(II) 60. ‘‘(iv) The debtor’s expenses for payment of (A) by inserting ‘‘(a)’’ before ‘‘The trustee penses. shall—’’; and Sec. 1210. Priorities. all priority claims (including priority child support and alimony claims) shall be cal- (B) by adding at the end the following: Sec. 1211. Exemptions. ‘‘(b)(1) With respect to an individual debtor Sec. 1212. Exceptions to discharge. culated as— under this chapter— Sec. 1213. Effect of discharge. ‘‘(I) the total amount of debts entitled to Sec. 1214. Protection against discriminatory priority; divided by ‘‘(A) the United States trustee or bank- treatment. ‘‘(II) 60. ruptcy administrator shall review all mate- Sec. 1215. Property of the estate. ‘‘(B)(i) In any proceeding brought under rials filed by the debtor and, not later than Sec. 1216. Preferences. this subsection, the presumption of abuse 10 days before the first meeting of creditors, Sec. 1217. Postpetition transactions. may be rebutted by demonstrating special file with the court a statement as to whether Sec. 1218. Disposition of property of the es- circumstances that justify additional ex- the debtor’s case would be presumed to be an tate. penses or adjustments of current monthly abuse under section 707(b); and Sec. 1219. General provisions. total income. In order to establish special ‘‘(B) not later than 5 days after receiving a Sec. 1220. Abandonment of railroad line. circumstances, the debtor shall be required statement under subparagraph (A), the court Sec. 1221. Contents of plan. to— shall provide a copy of the statement to all Sec. 1222. Discharge under chapter 12. ‘‘(I) itemize each additional expense or ad- creditors. Sec. 1223. Bankruptcy cases and proceedings. justment of income; and ‘‘(2) The United States trustee or bank- Sec. 1224. Knowing disregard of bankruptcy ‘‘(II) provide— ruptcy administrator shall not later than 30 law or rule. ‘‘(aa) documentation for such expenses; days after receiving a statement filed under Sec. 1225. Transfers made by nonprofit char- and paragraph (1) file a motion to dismiss or con- itable corporations. ‘‘(bb) a detailed explanation of the special vert under section 707(b), or file a statement Sec. 1226. Protection of valid purchase circumstances that make such expenses nec- setting forth the reasons the United States money security interests. essary and reasonable. trustee or bankruptcy administrator does Sec. 1227. Extensions. ‘‘(ii) The debtor, and the attorney for the not believe that such a motion would be ap- Sec. 1228. Bankruptcy judgeships. debtor if the debtor has an attorney, shall propriate. If, based on the filing of such TITLE XIII—GENERAL EFFECTIVE DATE; attest under oath to the accuracy of any in- statement with the court, the United States APPLICATION OF AMENDMENTS formation provided to demonstrate that ad- trustee or bankruptcy administrator deter- Sec. 1301. Effective date; application of ditional expenses or adjustments to income mines that the debtor’s case should be pre- amendments. are required. sumed to be an abuse under section 707(b) March 16, 1999 CONGRESSIONAL RECORD — SENATE S2741 and the product of the debtor’s current ‘‘(b)(1) Before the commencement of a case date of filing of the petition of that individ- monthly income, multiplied by 12 is not less under this title by an individual whose debts ual, received from an approved nonprofit than— are primarily consumer debts, that individ- credit counseling service described in section ‘‘(A) the highest national or applicable ual shall be given or obtain (as required in 111(a) an individual or group briefing that State median family income reported for a section 521(a)(1), as part of the certification outlined the opportunities for available cred- family of equal or lesser size, whichever is process under subchapter I of chapter 5) a it counseling and assisted that individual in greater; or written notice prescribed by the United performing a related budget analysis. ‘‘(B) in the case of a household of 1 person, States trustee for the district in which the ‘‘(2)(A) Paragraph (1) shall not apply with the national or applicable State median petition is filed under section 586 of title 28. respect to a debtor who resides in a district household income for 1 earner, whichever is ‘‘(2) The notice shall contain the following: for which the United States trustee or bank- greater. ‘‘(A) A brief description of chapters 7, 11, ruptcy administrator of the bankruptcy ‘‘(3)(A) The court shall order the counsel 12, and 13 and the general purpose, benefits, court of that district determines that the ap- for the debtor to reimburse the panel trustee and costs of proceeding under each of those proved nonprofit credit counseling services for all reasonable costs in prosecuting a mo- chapters. for that district are not reasonably able to tion brought under section 707(b), including ‘‘(B) A brief description of services that provide adequate services to the additional reasonable attorneys’ fees, if— may be available to that individual from a individuals who would otherwise seek credit ‘‘(i) a panel trustee appointed under sec- credit counseling service that is approved by counseling from those programs by reason of tion 586(a)(1) of title 28 brings a motion for the United States trustee for that district.’’. the requirements of paragraph (1). dismissal or conversion under this sub- SEC. 104. DEBTOR FINANCIAL MANAGEMENT ‘‘(B) Each United States trustee or bank- section; and TRAINING TEST PROGRAM. ruptcy administrator that makes a deter- ‘‘(ii) the court— (a) DEVELOPMENT OF FINANCIAL MANAGE- mination described in subparagraph (A) shall ‘‘(I) grants that motion; and MENT AND TRAINING CURRICULUM AND MATE- review that determination not later than 1 ‘‘(II) finds that the action of the counsel RIALS.—The Director of the Executive Office year after the date of that determination, for the debtor in filing under this chapter for United States Trustees (in this section and not less frequently than every year was not substantially justified. referred to as the ‘‘Director’’) shall— thereafter. ‘‘(B) If the court finds that the attorney for (1) consult with a wide range of individuals ‘‘(3)(A) Subject to subparagraph (B), the re- the debtor violated Rule 9011, at a minimum, who are experts in the field of debtor edu- quirements of paragraph (1) shall not apply the court shall order— cation, including trustees who are appointed with respect to a debtor who submits to the ‘‘(i) the assessment of an appropriate civil under chapter 13 of title 11, United States court a certification that— penalty against the counsel for the debtor; Code, and who operate financial manage- ‘‘(i) describes exigent circumstances that and ment education programs for debtors; and merit a waiver of the requirements of para- ‘‘(ii) the payment of the civil penalty to (2) develop a financial management train- graph (1); the panel trustee or the United States trust- ing curriculum and materials that may be ‘‘(ii) states that the debtor requested cred- ee. used to educate individual debtors concern- it counseling services from an approved non- ‘‘(C) In the case of a petition referred to in ing how to better manage their finances. profit credit counseling service, but was un- subparagraph (B), the signature of an attor- (b) TEST.— able to obtain the services referred to in ney shall constitute a certificate that the at- (1) IN GENERAL.—The Director shall select 3 paragraph (1) during the 5-day period begin- torney has— judicial districts of the United States in ning on the date on which the debtor made ‘‘(i) performed a reasonable investigation which to test the effectiveness of the finan- that request; and into the circumstances that gave rise to the cial management training curriculum and ‘‘(iii) is satisfactory to the court. petition; and materials developed under subsection (a). ‘‘(B) With respect to a debtor, an exemp- ‘‘(ii) determined that the petition— (2) AVAILABILITY OF CURRICULUM AND MATE- tion under subparagraph (A) shall cease to ‘‘(I) is well grounded in fact; and RIALS.—For a 1-year period beginning not apply to that debtor on the date on which ‘‘(II) is warranted by existing law or a good later than 270 days after the date of enact- the debtor meets the requirements of para- faith argument for the extension, modifica- ment of this Act, the curriculum and mate- graph (1), but in no case may the exemption tion, or reversal of existing law and does not rials referred to in paragraph (1) shall be apply to that debtor after the date that is 30 constitute an abuse under paragraph (1). made available by the Director, directly or days after the debtor files a petition.’’. ‘‘(4)(A) Except as provided in subparagraph indirectly, on request to individual debtors (b) CHAPTER 7 DISCHARGE.—Section 727(a) (B) and subject to paragraph (5), the court in cases filed during that 1-year period under of title 11, United States Code, is amended— may award a debtor all reasonable costs in chapter 7 or 13 of title 11, United States (1) in paragraph (9), by striking ‘‘or’’ at the contesting a motion brought by a party in Code. end; (2) in paragraph (10), by striking the period interest (other than a panel trustee or (c) EVALUATION.— and inserting ‘‘; or’’; and United States trustee) under this subsection (1) IN GENERAL.—During the 1-year period (including reasonable attorneys’ fees) if— referred to in subsection (b), the Director (3) by adding at the end the following: ‘‘(i) the court does not grant the motion; shall evaluate the effectiveness of— ‘‘(11) after the filing of the petition, the and (A) the financial management training debtor failed to complete an instructional ‘‘(ii) the court finds that— curriculum and materials developed under course concerning personal financial man- ‘‘(I) the position of the party that brought subsection (a); and agement described in section 111.’’. (c) CHAPTER 13 DISCHARGE.—Section 1328 of the motion was not substantially justified; (B) a sample of existing consumer edu- title 11, United States Code, is amended by or cation programs such as those described in ‘‘(II) the party brought the motion solely adding at the end the following: the report of the National Bankruptcy Re- ‘‘(g) The court shall not grant a discharge for the purpose of coercing a debtor into view Commission issued on October 20, 1997, waiving a right guaranteed to the debtor under this section to a debtor, unless after that are representative of consumer edu- filing a petition the debtor has completed an under this title. cation programs carried out by— ‘‘(B) A party in interest that has a claim of instructional course concerning personal fi- (i) the credit industry; nancial management described in section an aggregate amount less than $1,000 shall (ii) trustees serving under chapter 13 of not be subject to subparagraph (A). 111. title 11, United States Code; and ‘‘(h) Subsection (g) shall not apply with re- ‘‘(5) Only the judge, United States trustee, (iii) consumer counseling groups. spect to a debtor who resides in a district for bankruptcy administrator, or panel trustee (2) REPORT.—Not later than 3 months after which the United States trustee or bank- may bring a motion under this section if the concluding the evaluation under paragraph ruptcy administrator of the bankruptcy debtor and the debtor’s spouse combined, as (1), the Director shall submit a report to the court of that district determines that the ap- of the date of the order for relief, have a Speaker of the House of Representatives and proved instructional courses are not ade- total current monthly income equal to or the President pro tempore of the Senate, for quate to service the additional individuals less than the national or applicable State referral to the appropriate committees of who would be required to complete the in- median family monthly income calculated Congress, containing the findings of the Di- structional course by reason of the require- on a monthly basis for a family of equal rector regarding the effectiveness of such ments of this section. size.’’. curriculum, such materials, and such pro- ‘‘(i) Each United States trustee or bank- (c) CLERICAL AMENDMENT.—The table of grams. ruptcy administrator that makes a deter- sections for chapter 7 of title 11, United SEC. 105. CREDIT COUNSELING. mination described in subsection (h) shall re- States Code, is amended by striking the item (a) WHO MAY BEA DEBTOR.—Section 109 of view that determination not later than 1 relating to section 707 and inserting the fol- title 11, United States Code, is amended by year after the date of that determination, lowing: adding at the end the following: and not less frequently than every year ‘‘707. Dismissal of a case or conversion to a ‘‘(h)(1) Subject to paragraphs (2) and (3), thereafter.’’. case under chapter 13.’’. and notwithstanding any other provision of (d) DEBTOR’S DUTIES.—Section 521 of title SEC. 103. NOTICE OF ALTERNATIVES. this section, an individual may not be a 11, United States Code, is amended— Section 342(b) of title 11, United States debtor under this title unless that individual (1) by inserting ‘‘(a)’’ before ‘‘The debtor Code, is amended to read as follows: has, during the 90-day period preceding the shall—’’; and S2742 CONGRESSIONAL RECORD — SENATE March 16, 1999 (2) by adding at the end the following: ternative repayment plan between the debtor if the consideration by such agreement is ‘‘(b) In addition to the requirements under and any creditor of the debtor created by an based on a wholly secured consumer debt, subsection (a), an individual debtor shall file approved credit counseling agency.’’. and the debtor has not waived the right to a with the court— SEC. 202. EFFECT OF DISCHARGE. hearing under subsection (c)(2)(C))’’. ‘‘(1) a certificate from the credit counsel- Section 524 of title 11, United States Code, (b) LAW ENFORCEMENT.— ing service that provided the debtor services is amended by adding at the end the follow- (1) IN GENERAL.—Chapter 9 of title 18, under section 109(h); and ing: United States Code, is amended by adding at ‘‘(2) a copy of the debt repayment plan, if ‘‘(i) The willful failure of a creditor to the end the following: any, developed under section 109(h) through credit payments received under a plan con- ‘‘§ 158. Designation of United States attorneys the credit counseling service referred to in firmed under this title (including a plan of and agents of the Federal Bureau of Inves- paragraph (1).’’. reorganization confirmed under chapter 11 of tigation to address abusive reaffirmations (e) GENERAL PROVISIONS.— this title) in the manner required by the plan of debt (1) IN GENERAL.—Chapter 1 of title 11, (including crediting the amounts required ‘‘(a) IN GENERAL.—The Attorney General of United States Code, is amended by adding at under the plan) shall constitute a violation the United States shall designate the indi- the end the following: of an injunction under subsection (a)(2).’’. viduals described in subsection (b) to have ‘‘§ 111. Credit counseling services; financial SEC. 203. VIOLATIONS OF THE AUTOMATIC STAY. primary responsibility in carrying out en- management instructional courses Section 362(a) of title 11, United States forcement activities in addressing violations ‘‘(a) The clerk of each district shall main- Code, is amended— of section 152 or 157 relating to abusive re- tain a list of credit counseling services that (1) in paragraph (7), by striking ‘‘and’’ at affirmations of debt. provide 1 or more programs described in sec- the end; ‘‘(b) UNITED STATES DISTRICT ATTORNEYS tion 109(h) and a list of instructional courses (2) in paragraph (8), by striking the period AND AGENTS OF THE FEDERAL BUREAU OF IN- concerning personal financial management at the end and inserting ‘‘; and’’; and VESTIGATION—The individuals referred to in that have been approved by— (3) by adding at the end the following: subsection (a) are ‘‘(1) the United States trustee; or ‘‘(9) any communication (other than a reci- ‘‘(1) a United States attorney for each judi- ‘‘(2) the bankruptcy administrator for the tation of the creditor’s legal rights) threat- cial district of the United States; and district.’’. ening a debtor (for the purpose of coercing ‘‘(2) an agent of the Federal Bureau of In- (2) CLERICAL AMENDMENT.—The table of an agreement for the reaffirmation of debt), vestigation (within the meaning of section sections for chapter 1 of title 11, United at any time after the commencement and be- 3107) for each field office of the Federal Bu- States Code, is amended by adding at the end fore the granting of a discharge in a case reau of Investigation. the following: under this title, of an intention to— ‘‘(c) BANKRUPTCY INVESTIGATIONS.—Each ‘‘111. Credit counseling services; financial ‘‘(A) file a motion to— United States attorney designated under this management instructional ‘‘(i) determine the dischargeability of a section shall have primary responsibility for courses.’’. debt; or carrying out the duties of a United States attorney under section 3057.’’. (f) LIMITATION.—Section 362 of title 11, ‘‘(ii) under section 707(b), to dismiss or con- (2) CLERICAL AMENDMENT.—The analysis for United States Code, is amended by adding at vert a case; or chapter 9 of title 18, United States Code, is the end the following: ‘‘(B) repossess collateral from the debtor to ‘‘(i) If a case commenced under chapter 7, which the stay applies.’’. amended by adding at the end the following: 11, or 13 of this title is dismissed due to the SEC. 204. DISCOURAGING ABUSE OF REAFFIRMA- ‘‘158. Designation of United States attorneys creation of a debt repayment plan, for pur- TION PRACTICES. and agents of the Federal Bu- poses of subsection (c)(3), any subsequent (a) IN GENERAL.—Section 524 of title 11, reau of Investigation to address case commenced by the debtor under any United States Code, as amended by section abusive reaffirmations of such chapter shall not be presumed to be 202 of this Act, is amended— debt.’’. filed not in good faith.’’. (1) in subsection (c)— (c) EXCEPTIONS TO DISCHARGE.—Section 523 TITLE II—ENHANCED CONSUMER (A) in paragraph (2)— of title 11, United States Code, is amended by PROTECTION (i) in subparagraph (A), by striking ‘‘and’’ adding at the end the following: ‘‘(f) Nothing in this section or in any other Subtitle A—Penalties for Abusive Creditor at the end; provision of this title shall preempt any Practices (ii) in subparagraph (B), by inserting ‘‘and’’ at the end; and State law relating to unfair trade practices SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE (iii) by adding at the end the following: that imposes restrictions on creditor con- RESOLUTION. ‘‘(C)(i) the consideration for such agree- duct that would give rise to liability— (a) REDUCTION OF CLAIM.—Section 502 of ‘‘(1) under this section; or title 11, United States Code, is amended by ment is based on a wholly unsecured con- ‘‘(2) under section 524, for failure to comply adding at the end the following: sumer debt; and ‘‘(k)(1) The court, on the motion of the ‘‘(ii) such agreement contains a clear and with applicable requirements for seeking a debtor and after a hearing, may reduce a conspicuous statement that advises the debt- reaffirmation of debt. ‘‘(g) ACTIONS BY STATES.—The attorney claim filed under this section based in whole or that— general of a State, or an official or agency on unsecured consumer debts by not more ‘‘(I) the debtor is entitled to a hearing be- designated by a State— than 20 percent of the claim, if— fore the court at which— ‘‘(1) may bring an action on behalf of its ‘‘(A) the claim was filed by a creditor who ‘‘(aa) the debtor shall appear in person; and residents to recover damages on their behalf unreasonably refused to negotiate a reason- ‘‘(bb) the court shall decide whether the under subsection (d) or section 524(c); and able alternative repayment schedule pro- agreement constitutes an undue hardship, is ‘‘(2) may bring an action in a State court posed by an approved credit counseling agen- not in the debtor’s best interest, or is not the to enforce a State criminal law that is simi- cy acting on behalf of the debtor; result of a threat by the creditor to take an lar to section 152 or 157 of title 18.’’. ‘‘(B) the offer of the debtor under subpara- action that, at the time of the threat, that graph (A)— the creditor may not legally take or does not Subtitle B—Priority Child Support ‘‘(i) was made at least 60 days before the intend to take; and SEC. 211. PRIORITIES FOR CLAIMS FOR DOMES- filing of the petition; and ‘‘(II) if the debtor is represented by coun- TIC SUPPORT OBLIGATIONS. ‘‘(ii) provided for payment of at least 60 sel, the debtor may waive the debtor’s right Section 507(a) of title 11, United States percent of the amount of the debt over a pe- to a hearing under subclause (I) by signing a Code, is amended— riod not to exceed the repayment period of statement— (1) by striking paragraph (7); the loan, or a reasonable extension thereof; ‘‘(aa) waiving the hearing; (2) by redesignating paragraphs (1) through and ‘‘(bb) stating that the debtor is represented (6) as paragraphs (2) through (7), respec- ‘‘(C) no part of the debt under the alter- by counsel; and tively; native repayment schedule is nondischarge- ‘‘(cc) identifying the counsel.’’; and (3) in paragraph (2), as redesignated, by able. (B) in paragraph (6)(A)— striking ‘‘First’’ and inserting ‘‘Second’’; ‘‘(2) The debtor shall have the burden of (i) in clause (i), by striking ‘‘and’’ at the (4) in paragraph (3), as redesignated, by proving, by clear and convincing evidence, end; striking ‘‘Second’’ and inserting ‘‘Third’’; that— (ii) in clause (ii), by striking the period and (5) in paragraph (4), as redesignated, by ‘‘(A) the creditor unreasonably refused to inserting ‘‘and’’; and striking ‘‘Third’’ and inserting ‘‘Fourth’’; consider the debtor’s proposal; and (iii) by adding at the end the following: (6) in paragraph (5), as redesignated, by ‘‘(B) the proposed alternative repayment ‘‘(iii) not an agreement that the debtor en- striking ‘‘Fourth’’ and inserting ‘‘Fifth’’; schedule was made in the 60-day period speci- tered into as a result of a threat by the cred- (7) in paragraph (6), as redesignated, by fied in paragraph (1)(B)(i).’’. itor to take an action that, at the time of striking ‘‘Fifth’’ and inserting ‘‘Sixth’’; (b) LIMITATION ON AVOIDABILITY.—Section the threat, the creditor could not legally (8) in paragraph (7), as redesignated, by 547 of title 11, United States Code, is amend- take or did not intend to take.’’; and striking ‘‘Sixth’’ and inserting ‘‘Seventh’’; ed by adding at the end the following: (2) in subsection (d), in the third sentence, and ‘‘(h) The trustee may not avoid a transfer by inserting after ‘‘during the course of ne- (9) by inserting before paragraph (2), as re- if such transfer was made as a part of an al- gotiating an agreement’’ the following: ‘‘(or designated, the following: March 16, 1999 CONGRESSIONAL RECORD — SENATE S2743 ‘‘(1) First, allowed claims for domestic sup- and occupational licenses, and recreational ‘‘(ii) an order of a court of record; or port obligations to be paid in the following licenses under State law, as specified in sec- ‘‘(iii) a determination made in accordance order on the condition that funds received tion 466(a)(16) of the Social Security Act (42 with applicable nonbankruptcy law by a gov- under this paragraph by a governmental unit U.S.C. 666(a)(16)) or with respect to the re- ernmental unit; and in a case under this title be applied: porting of overdue support owed by an ab- ‘‘(D) not assigned to a nongovernmental ‘‘(A) Claims that, as of the date of entry of sent parent to any consumer reporting agen- entity, unless that obligation is assigned vol- the order for relief, are owed directly to a cy as specified in section 466(a)(7) of the So- untarily by the spouse, former spouse, child, spouse, former spouse, or child of the debtor, cial Security Act (42 U.S.C. 666(a)(7)); or parent solely for the purpose of collecting or the parent of such child, without regard to ‘‘(B) the interception of tax refunds, as the debt.’’. whether the claim is filed by the spouse, specified in sections 464 and 466(a)(3) of the SEC. 219. COLLECTION OF CHILD SUPPORT. former spouse, child, or parent, or is filed by Social Security Act (42 U.S.C. 664 and (a) DUTIES OF TRUSTEE UNDER CHAPTER 7.— a governmental unit on behalf of that per- 666(a)(3)); or Section 704 of title 11, United States Code, as son. ‘‘(C) the enforcement of medical obliga- amended by section 102(b) of this Act, is ‘‘(B) Claims that, as of the date of entry of tions as specified under title IV of the Social amended— the order for relief, are assigned by a spouse, Security Act (42 U.S.C. 601 et seq.).’’. (1) in subsection (a)— former spouse, child of the debtor, or the SEC. 214. NONDISCHARGEABILITY OF CERTAIN (A) in paragraph (8), by striking ‘‘and’’ at parent of that child to a governmental unit DEBTS FOR ALIMONY, MAINTE- the end; or are owed directly to a governmental unit NANCE, AND SUPPORT. (B) in paragraph (9), by striking the period under applicable nonbankruptcy law.’’. Section 523 of title 11, United States Code, and inserting ‘‘; and’’; and SEC. 212. REQUIREMENTS TO OBTAIN CONFIRMA- is amended— (C) by adding at the end the following: TION AND DISCHARGE IN CASES IN- (1) in subsection (a), by striking paragraph VOLVING DOMESTIC SUPPORT OBLI- ‘‘(10) if, with respect to an individual debt- (5) and inserting the following: or, there is a claim for support of a child of GATIONS. ‘‘(5) for a domestic support obligation;’’; Title 11, United States Code, is amended— the debtor or a custodial parent of such child (2) in subsection (c), by striking ‘‘(6), or (1) in section 1129(a), by adding at the end entitled to receive priority under section (15)’’ and inserting ‘‘or (6)’’; and the following: 507(a)(1), provide the applicable notification (3) in paragraph (15), by striking ‘‘govern- ‘‘(14) If the debtor is required by a judicial specified in subsection (c).’’; and mental unit’’ and all through the end of the or administrative order or statute to pay a (2) by adding at the end the following: paragraph and inserting a semicolon. domestic support obligation, the debtor has ‘‘(c)(1) In any case described in subsection paid all amounts payable under such order or SEC. 215. CONTINUED LIABILITY OF PROPERTY. (a)(10), the trustee shall— statute for such obligation that become pay- Section 522 of title 11, United States Code, ‘‘(A)(i) notify in writing the holder of the able after the date on which the petition is is amended— claim of the right of that holder to use the filed.’’; (1) in subsection (c), by striking paragraph services of a State child support enforcement (2) in section 1325(a)— (1) and inserting the following: agency established under sections 464 and 466 (A) in paragraph (5), by striking ‘‘and’’ at ‘‘(1) a debt of a kind specified in paragraph of the Social Security Act (42 U.S.C. 654 and the end; (1) or (5) of section 523(a) (in which case, not- 666, respectively) for the State in which the (B) in paragraph (6), by striking the period withstanding any provision of applicable holder resides; and at the end and inserting ‘‘; and’’; and nonbankruptcy law to the contrary, such ‘‘(ii) include in the notice under this para- (C) by adding at the end the following: property shall be liable for a debt of a kind graph the address and telephone number of ‘‘(7) if the debtor is required by a judicial specified in section 523(a)(5));’’; and the child support enforcement agency; and or administrative order or statute to pay a (2) in subsection (f)(1)(A), by striking the ‘‘(B)(i) notify in writing the State child domestic support obligation, the debtor has dash and all that follows through the end of support agency of the State in which the paid all amounts payable under such order the subparagraph and inserting ‘‘of a kind holder of the claim resides of the claim; for such obligation that become payable that is specified in section 523(a)(5); or’’. ‘‘(ii) include in the notice under this para- after the date on which the petition is SEC. 216. PROTECTION OF DOMESTIC SUPPORT graph the name, address, and telephone num- filed.’’; and CLAIMS AGAINST PREFERENTIAL ber of the holder of the claim; and (3) in section 1328(a), in the matter preced- TRANSFER MOTIONS. ‘‘(iii) at such time as the debtor is granted ing paragraph (1), by inserting ‘‘, and with Section 547(c)(7) of title 11, United States a discharge under section 727, notify the respect to a debtor who is required by a judi- Code, is amended to read as follows: holder of that claim and the State child sup- cial or administrative order to pay a domes- ‘‘(7) to the extent such transfer was a bona port agency of the State in which that hold- tic support obligation, certifies that all fide payment of a debt for a domestic sup- er resides of— amounts payable under such order or statute port obligation; or’’. ‘‘(I) the granting of the discharge; that are due on or before the date of the cer- SEC. 217. AMENDMENT TO SECTION 1325 OF ‘‘(II) the last recent known address of the tification (including amounts due before or TITLE 11, UNITED STATES CODE. debtor; and after the petition was filed) have been paid’’ Section 1325(b)(2) of title 11, United States ‘‘(III) with respect to the debtor’s case, the after ‘‘completion by the debtor of all pay- Code, is amended by inserting ‘‘(other than name of each creditor that holds a claim— ments under the plan’’. child support payments, foster care pay- ‘‘(aa) that is not discharged under para- SEC. 213. EXCEPTIONS TO AUTOMATIC STAY IN ments, or disability payments for a depend- graph (2), (4), or (14A) of section 523(a); or DOMESTIC SUPPORT OBLIGATION ent child made in accordance with applicable ‘‘(bb) that was reaffirmed by the debtor PROCEEDINGS. nonbankruptcy law and which is reasonably under section 524(c). Section 362(b) of title 11, United States necessary to be expended)’’ after ‘‘received ‘‘(2)(A) If, after receiving a notice under Code, is amended— by the debtor’’. paragraph (1)(B)(iii), a holder of a claim or a (1) by striking paragraph (2) and inserting SEC. 218. DEFINITION OF DOMESTIC SUPPORT State child support agency is unable to lo- the following: OBLIGATION. cate the debtor that is the subject of the no- ‘‘(2) under subsection (a)— Section 101 of title 11, United States Code, tice, that party may request from a creditor ‘‘(A) of the commencement of an action or is amended— described in paragraph (1)(B)(iii)(III) (aa) or proceeding for— (1) by striking paragraph (12A); and (bb) the last known address of the debtor. ‘‘(i) the establishment of paternity as a (2) by inserting after paragraph (14) the fol- ‘‘(B) Notwithstanding any other provision part of an effort to collect domestic support lowing: of law, a creditor that makes a disclosure of obligations; or ‘‘(14A) ‘domestic support obligation’ means a last known address of a debtor in connec- ‘‘(ii) the establishment or modification of a debt that accrues before or after the entry tion with a request made under subpara- an order for domestic support obligations; or of an order for relief under this title that is— graph (A) shall not be liable to the debtor or ‘‘(B) the collection of a domestic support ‘‘(A) owed to or recoverable by— any other person by reason of making that obligation from property that is not prop- ‘‘(i) a spouse, former spouse, or child of the disclosure.’’. erty of the estate;’’; debtor or that child’s legal guardian; or (b) DUTIES OF TRUSTEE UNDER CHAPTER (2) in paragraph (17), by striking ‘‘or’’ at ‘‘(ii) a governmental unit; 13.—Section 1302 of title 11, United States the end; ‘‘(B) in the nature of alimony, mainte- Code, as amended by section 102(b) of this (3) in paragraph (18), by striking the period nance, or support (including assistance pro- Act, is amended— at the end and inserting a semicolon; and vided by a governmental unit) of such (1) in subsection (b)— (4) by inserting after paragraph (18) the fol- spouse, former spouse, or child, without re- (A) in paragraph (4), by striking ‘‘and’’ at lowing: gard to whether such debt is expressly so the end; ‘‘(19) under subsection (a) with respect to designated; (B) in paragraph (5), by striking the period the withholding of income under an order as ‘‘(C) established or subject to establish- and inserting ‘‘; and’’; and specified in section 466(b) of the Social Secu- ment before or after entry of an order for re- (C) by adding at the end the following: rity Act (42 U.S.C. 666(b)); or lief under this title, by reason of applicable ‘‘(6) if, with respect to an individual debt- ‘‘(20) under subsection (a) with respect to— provisions of— or, there is a claim for support of a child of ‘‘(A) the withholding, suspension, or re- ‘‘(i) a separation agreement, divorce de- the debtor or a custodial parent of such child striction of drivers’ licenses, professional cree, or property settlement agreement; entitled to receive priority under section S2744 CONGRESSIONAL RECORD — SENATE March 16, 1999 507(a)(1), provide the applicable notification restructure any debt owed by the person to ‘‘ ‘Before filing a bankruptcy case, either specified in subsection (d).’’; and the creditor; or you or your attorney should analyze your (s) by adding at the end the following: ‘‘(C) any depository institution (as defined eligibility for different forms of debt relief ‘‘(d)(1) In any case described in subsection in section 3 of the Federal Deposit Insurance made available by the Bankruptcy Code and (b)(6), the trustee shall— Act (12 U.S.C. 1813)) or any Federal credit which form of relief is most likely to be ben- ‘‘(A)(i) notify in writing the holder of the union or State credit union (as those terms eficial for you. Be sure you understand the claim of the right of that holder to use the are defined in section 101 of the Federal relief you can obtain and its limitations. To services of a State child support enforcement Credit Union Act (12 U.S.C. 1751)), or any af- file a bankruptcy case, documents called a agency established under sections 464 and 466 filiate or subsidiary of such a depository in- Petition, Schedules and Statement of Finan- of the Social Security Act (42 U.S.C. 654 and stitution or credit union;’’. cial Affairs, as well as in some cases a State- 666, respectively) for the State in which the (b) CONFORMING AMENDMENT.—Section ment of Intention need to be prepared cor- holder resides; and 104(b)(1) of title 11, United States Code, is rectly and filed with the bankruptcy court. ‘‘(ii) include in the notice under this para- amended by inserting ‘‘101(3),’’ after ‘‘sec- You will have to pay a filing fee to the bank- graph the address and telephone number of tions’’. ruptcy court. Once your case starts, you will the child support enforcement agency; and SEC. 222. DISCLOSURES. have to attend the required first meeting of ‘‘(B)(i) notify in writing the State child (a) DISCLOSURES.—Subchapter II of chapter creditors where you may be questioned by a support agency of the State in which the 5 of title 11, United States Code, is amended court official called a ‘‘trustee’’ and by holder of the claim resides of the claim; and by adding at the end the following: creditors. ‘‘(ii) include in the notice under this para- ‘‘§ 526. Disclosures ‘‘ ‘If you choose to file a chapter 7 case, you may be asked by a creditor to reaffirm a graph the name, address, and telephone num- ‘‘(a) A debt relief agency providing bank- ber of the holder of the claim; ruptcy assistance to an assisted person shall debt. You may want help deciding whether ‘‘(iii) at such time as the debtor is granted provide the following notices to the assisted to do so and a creditor is not permitted to a discharge under section 1328, notify the person: coerce you into reaffirming your debts. ‘‘ ‘If you choose to file a chapter 13 case in holder of the claim and the State child sup- ‘‘(1) The written notice required under sec- which you repay your creditors what you can port agency of the State in which that hold- tion 342(b)(1). afford over 3 to 5 years, you may also want er resides of— ‘‘(2) To the extent not covered in the writ- help with preparing your chapter 13 plan and ‘‘(I) the granting of the discharge; ten notice described in paragraph (1) and not with the confirmation hearing on your plan ‘‘(II) the last recent known address of the later than 3 business days after the first date debtor; and which will be before a bankruptcy judge. on which a debt relief agency first offers to ‘‘ ‘If you select another type of relief under ‘‘(III) with respect to the debtor’s case, the provide any bankruptcy assistance services the Bankruptcy Code other than chapter 7 or name of each creditor that holds a claim— to an assisted person, a clear and conspicu- chapter 13, you will want to find out what ‘‘(aa) that is not discharged under para- ous written notice advising assisted persons needs to be done from someone familiar with graph (2), (4), or (14A) of section 523(a); or that— that type of relief. ‘‘(bb) that was reaffirmed by the debtor ‘‘(A) all information the assisted person is ‘‘ ‘Your bankruptcy case may also involve under section 524(c). required to provide with a petition and litigation. You are generally permitted to ‘‘(2)(A) If, after receiving a notice under thereafter during a case under this title shall represent yourself in litigation in bank- paragraph (1)(B)(iii), a holder of a claim or a be complete, accurate, and truthful; ruptcy court, but only attorneys, not bank- State child support agency is unable to lo- ‘‘(B) all assets and all liabilities shall be ruptcy petition preparers, can give you legal cate the debtor that is the subject of the no- completely and accurately disclosed in the advice.’. tice, that party may request from a creditor documents filed to commence the case, and ‘‘(c) Except to the extent the debt relief described in paragraph (1)(B)(iii)(III) (aa) or the replacement value of each asset, as de- agency provides the required information (bb) the last known address of the debtor. fined in section 506, shall be stated in those itself after reasonably diligent inquiry of the ‘‘(B) Notwithstanding any other provision documents if requested after reasonable in- assisted person or others so as to obtain such of law, a creditor that makes a disclosure of quiry to establish such value; information reasonably accurately for inclu- a last known address of a debtor in connec- ‘‘(C) total current monthly income, pro- sion on the petition, schedules or statement tion with a request made under subpara- jected monthly net income and, in a case of financial affairs, a debt relief agency pro- graph (A) shall not be liable to the debtor or under chapter 13, monthly net income shall viding bankruptcy assistance to an assisted any other person by reason of making that be stated after reasonable inquiry; and person, to the extent permitted by nonbank- disclosure.’’. ‘‘(D) information an assisted person pro- ruptcy law, shall provide each assisted per- Subtitle C—Other Consumer Protections vides during the case of that person may be son at the time required for the notice re- SEC. 221. DEFINITIONS. audited under this title and the failure to quired under subsection (a)(1) reasonably suf- (a) DEFINITIONS.—Section 101 of title 11, provide such information may result in dis- ficient information (which may be provided United States Code, is amended— missal of the proceeding under this title or orally or in a clear and conspicuous writing) (1) by inserting after paragraph (3) the fol- other sanction including, in some instances, to the assisted person on how to provide all lowing: criminal sanctions. the information the assisted person is re- ‘‘(3A) ‘assisted person’ means any person ‘‘(b) A debt relief agency providing bank- quired to provide under this title pursuant to whose debts consist primarily of consumer ruptcy assistance to an assisted person shall section 521, including— debts and whose nonexempt assets are less provide each assisted person at the same ‘‘(1) how to value assets at replacement than $150,000;’’; time as the notices required under sub- value, determine total current monthly in- (2) by inserting after paragraph (4) the fol- section (a)(1) with the following statement, come, projected monthly income and, in a lowing: to the extent applicable, or a substantially case under chapter 13, net monthly income, ‘‘(4A) ‘bankruptcy assistance’ means any similar statement. The statement shall be and related calculations; goods or services sold or otherwise provided clear and conspicuous and shall be in a single ‘‘(2) how to complete the list of creditors, document separate from other documents or to an assisted person with the express or im- including how to determine what amount is notices provided to the assisted person: plied purpose of providing information, ad- owed and what address for the creditor ‘‘ ‘IMPORTANT INFORMATION ABOUT vice, counsel, document preparation or fil- BANKRUPTCY ASSISTANCE SERVICES should be shown; and ing, or attendance at a creditors’ meeting or FROM AN ATTORNEY OR BANKRUPTCY ‘‘(3) how to— appearing in a proceeding on behalf of an- PETITION PREPARER ‘‘(A) determine what property is exempt; other or providing legal representation with ‘‘ ‘If you decide to seek bankruptcy relief, and respect to a proceeding under this title;’’; you can represent yourself, you can hire an ‘‘(B) value exempt property at replacement and attorney to represent you, or you can get value, as defined in section 506. (3) by inserting after paragraph (12A) the help in some localities from a bankruptcy ‘‘(d) A debt relief agency shall maintain a following: petition preparer who is not an attorney. copy of the notices required under subsection ‘‘(12B) ‘debt relief agency’ means any per- THE LAW REQUIRES AN ATTORNEY OR (a) of this section for a period of 2 years after son who provides any bankruptcy assistance BANKRUPTCY PETITION PREPARER TO the latest date on which the notice is given to an assisted person in return for the pay- GIVE YOU A WRITTEN CONTRACT SPECI- the assisted person.’’. ment of money or other valuable consider- FYING WHAT THE ATTORNEY OR BANK- (b) CONFORMING AMENDMENT.—The table of ation, or who is a bankruptcy petition pre- RUPTCY PETITION PREPARER WILL DO sections for chapter 5 of title 11, United parer under section 110, but does not include FOR YOU AND HOW MUCH IT WILL COST. States Code, is amended by inserting after any person that is any of the following or an Ask to see the contract before you hire any- the item relating to section 525 the follow- officer, director, employee, or agent one. ing: thereof— ‘‘ ‘The following information helps you un- ‘‘526. Disclosures.’’. ‘‘(A) any nonprofit organization which is derstand what must be done in a routine SEC. 223. DEBTOR’S BILL OF RIGHTS. exempt from taxation under section 501(c)(3) bankruptcy case to help you evaluate how (a) DEBTOR’S BILL OF RIGHTS.—Subchapter of the Internal Revenue Code of 1986; much service you need. Although bank- II of chapter 5 of title 11, United States Code, ‘‘(B) any creditor of the person to the ex- ruptcy can be complex, many cases are rou- as amended by section 222 of this Act, is tent the creditor is assisting the person to tine. amended by adding at the end the following: March 16, 1999 CONGRESSIONAL RECORD — SENATE S2745 ‘‘§ 527. Debtor’s bill of rights or charge for services performed as part of plying with any law of any State except to ‘‘(a)(1) A debt relief agency shall— preparing for or representing a debtor in a the extent that such law is inconsistent with ‘‘(A) not later than 5 business days after proceeding under this title.’’. those sections, and then only to the extent of the first date on which a debt relief agency (b) CONFORMING AMENDMENT.—The table of the inconsistency.’’. provides any bankruptcy assistance services sections for chapter 5 of title 11, United (b) CONFORMING AMENDMENT.—The table of to an assisted person, but before that as- States Code, as amended by section 222 of sections for chapter 5 of title 11, United sisted person’s petition under this title is this Act, is amended by inserting after the States Code, as amended by section 223 of filed— item relating to section 526 of title 11, this Act, is amended by inserting after the ‘‘(i) execute a written contract with the as- United States Code, the following: item relating to section 527 of title 11, sisted person specifying clearly and con- ‘‘527. Debtor’s bill of rights.’’. United States Code, the following: spicuously the services the agency will pro- SEC. 224. ENFORCEMENT. ‘‘528. Debt relief agency enforcement.’’. vide the assisted person and the basis on (a) ENFORCEMENT.—Subchapter II of chap- SEC. 225. SENSE OF CONGRESS. which fees or charges will be made for such ter 5 of title 11, United States Code, as It is the sense of Congress that States services and the terms of payment; and amended by section 223 of this Act, is amend- should develop curricula relating to the sub- ‘‘(ii) give the assisted person a copy of the ed by adding at the end the following: ject of personal finance, designed for use in fully executed and completed contract in a ‘‘§ 528. Debt relief agency enforcement elementary and secondary schools. form the person is able to retain; ‘‘(a) Any waiver by any assisted person of SEC. 226. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE. ‘‘(B) disclose in any advertisement of bank- any protection or right provided by or under (a) Section 507(a) of title 11, United States ruptcy assistance services or of the benefits section 526 or 527 shall be void and may not Code, as amended by section 211 of this Act, of bankruptcy directed to the general public be enforced by any Federal or State court or is amended by inserting after paragraph (9) (whether in general media, seminars or spe- any other person. the following: cific mailings, telephonic or electronic mes- ‘‘(b)(1) Any contract between a debt relief ‘‘(10) Tenth, allowed claims for death or sages, or otherwise) that the services or ben- agency and an assisted person for bank- personal injuries resulting from the oper- efits are with respect to proceedings under ruptcy assistance that does not comply with ation of a motor vehicle or vessel if such op- this title, clearly and conspicuously using the material requirements of section 526 or eration was unlawful because the debtor was the statement: ‘We are a debt relief agency. 527 shall be treated as void and may not be intoxicated from using alcohol, a drug, or We help people file bankruptcy petitions to enforced by any Federal or State court or by another substance.’’. obtain relief under the Bankruptcy Code.’ or any other person. (b) Section 523(a)(9) of title 11, United a substantially similar statement; and ‘‘(2) Any debt relief agency that has been States Code, is amended by inserting ‘‘or ‘‘(C) if an advertisement directed to the found, after notice and hearing, to have— vessel’’ after ‘‘vehicle’’. general public indicates that the debt relief ‘‘(A) negligently failed to comply with any agency provides assistance with respect to provision of section 526 or 527 with respect to TITLE III—DISCOURAGING BANKRUPTCY credit defaults, mortgage foreclosures, lease a bankruptcy case or related proceeding of ABUSE eviction proceedings, excessive debt, debt an assisted person; SEC. 301. REINFORCEMENT OF THE FRESH collection pressure, or inability to pay any ‘‘(B) provided bankruptcy assistance to an START. consumer debt, disclose conspicuously in assisted person in a case or related proceed- Section 523(a)(17) of title 11, United States that advertisement that the assistance is ing which is dismissed or converted because Code, is amended— with respect to or may involve proceedings the debt relief agency’s negligent failure to (1) by striking ‘‘by a court’’ and inserting under this title, using the following state- file bankruptcy papers, including papers ‘‘on a prisoner by any court’’, ment: ‘We are a debt relief agency. We help specified in section 521; or (2) by striking ‘‘section 1915(b) or (f)’’ and people file bankruptcy petitions to obtain re- ‘‘(C) negligently or intentionally dis- inserting ‘‘subsection (b) or (f)(2) of section lief under the Bankruptcy Code.’ or a sub- regarded the material requirements of this 1915’’, and stantially similar statement. title or the Federal Rules of Bankruptcy (3) by inserting ‘‘(or a similar non-Federal ‘‘(2) For purposes of paragraph (1)(B), an Procedure applicable to such debt relief law)’’ after ‘‘title 28’’ each place it appears. advertisement shall be of bankruptcy assist- agency shall be liable to the assisted person SEC. 302. DISCOURAGING BAD FAITH REPEAT ance services if that advertisement describes in the amount of any fees and charges in FILINGS. or offers bankruptcy assistance with a plan connection with providing bankruptcy as- Section 362(c) of title 11, United States under chapter 12, without regard to whether sistance to such person that the debt relief Code, is amended— chapter 13 is specifically mentioned. A state- agency has already been paid on account of (1) in paragraph (1), by striking ‘‘and’’ at ment such as ‘federally supervised repay- that proceeding. the end; ment plan’ or ‘Federal debt restructuring ‘‘(3) In addition to such other remedies as (2) in paragraph (2) by striking the period help’ or any other similar statement that are provided under State law, whenever the at the end and inserting a semicolon; and would lead a reasonable consumer to believe chief law enforcement officer of a State, or (3) by adding at the end the following: that help with debts is being offered when in an official or agency designated by a State, ‘‘(3) if a single or joint case is filed by or fact in most cases the help available is bank- has reason to believe that any person has against an individual debtor under chapter 7, ruptcy assistance with a plan under chapter violated or is violating section 526 or 527, the 11, or 13, and if a single or joint case of the 13 is a statement covered under the preced- State— debtor was pending within the preceding 1- ing sentence. ‘‘(A) may bring an action to enjoin such year period but was dismissed, other than a ‘‘(b) A debt relief agency shall not— violation; case refiled under a chapter other than chap- ‘‘(1) fail to perform any service that the ‘‘(B) may bring an action on behalf of its ter 7 after dismissal under section 707(b)— debt relief agency has told the assisted per- residents to recover the actual damages of ‘‘(A) the stay under subsection (a) with re- son or prospective assisted person the agency assisted persons arising from such violation, spect to any action taken with respect to a would provide that person in connection including any liability under paragraph (2); debt or property securing such debt or with with the preparation for or activities during and respect to any lease will terminate with re- a proceeding under this title; ‘‘(C) in the case of any successful action spect to the debtor on the 30th day after the ‘‘(2) make any statement, or counsel or ad- under subparagraph (A) or (B), shall be filing of the later case; vise any assisted person to make any state- awarded the costs of the action and reason- ‘‘(B) upon motion by a party in interest for ment in any document filed in a proceeding able attorney fees as determined by the continuation of the automatic stay and upon under this title, that— court. notice and a hearing, the court may extend ‘‘(A) is untrue and misleading; or ‘‘(4) The United States District Court for the stay in particular cases as to any or all ‘‘(B) upon the exercise of reasonable care, any district located in the State shall have creditors (subject to such conditions or limi- should be known by the debt relief agency to concurrent jurisdiction of any action under tations as the court may then impose) after be untrue or misleading; subparagraph (A) or (B) of paragraph (3). notice and a hearing completed before the ‘‘(3) misrepresent to any assisted person or ‘‘(5) Notwithstanding any other provision expiration of the 30-day period only if the prospective assisted person, directly or indi- of Federal law, if the court, on its own mo- party in interest demonstrates that the fil- rectly, affirmatively or by material omis- tion or on the motion of the United States ing of the later case is in good faith as to the sion, what services the debt relief agency trustee, finds that a person intentionally creditors to be stayed; and may reasonably expect to provide that per- violated section 526 or 527, or engaged in a ‘‘(C) for purposes of subparagraph (B), a son, or the benefits an assisted person may clear and consistent pattern or practice of case is presumptively filed not in good faith obtain or the difficulties the person may ex- violating section 526 or 527, the court may— (but such presumption may be rebutted by perience if the person seeks relief in a pro- ‘‘(A) enjoin the violation of such section; clear and convincing evidence to the con- ceeding under this title; or or trary)— ‘‘(4) advise an assisted person or prospec- ‘‘(B) impose an appropriate civil penalty ‘‘(i) as to all creditors, if— tive assisted person to incur more debt in against such person. ‘‘(I) more than 1 previous case under any of contemplation of that person filing a pro- ‘‘(c) This section and sections 526 and 527 chapter 7, 11, or 13 in which the individual ceeding under this title or in order to pay an shall not annul, alter, affect, or exempt any was a debtor was pending within the preced- attorney or bankruptcy petition preparer fee person subject to those sections from com- ing 1-year period; S2746 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘(II) a previous case under any of chapter ‘‘(ii) as to any creditor that commenced an ‘‘(A) enters into an agreement with the 7, 11, or 13 in which the individual was a action under subsection (d) in a previous creditor under section 524(c) with respect to debtor was dismissed within such 1-year pe- case in which the individual was a debtor if, the claim secured by such property; or riod, after the debtor failed to— as of the date of dismissal of such case, such ‘‘(B) redeems such property from the secu- ‘‘(aa) file or amend the petition or other action was still pending or had been resolved rity interest under section 722.’’; and documents as required by this title or the by terminating, conditioning, or limiting the (C) by adding at the end the following: court without substantial excuse (but mere stay as to action of such creditor.’’. ‘‘(b) If the debtor fails to so act within the inadvertence or negligence shall not be a SEC. 303. CURBING ABUSIVE FILINGS. 45-day period specified in subsection (a)(6), substantial excuse unless the dismissal was (a) IN GENERAL.—Section 362(d) of title 11, the personal property affected shall no caused by the negligence of the debtor’s at- United States Code, is amended— longer be property of the estate, and the torney); (1) in paragraph (2), by striking ‘‘or’’ at the creditor may take whatever action as to ‘‘(bb) provide adequate protection as or- end; such property as is permitted by applicable dered by the court; or (2) in paragraph (3), by striking the period nonbankruptcy law, unless the court deter- ‘‘(cc) perform the terms of a plan con- at the end and inserting ‘‘; or’’; and mines on the motion of the trustee, and after firmed by the court; or (3) by adding at the end the following: notice and a hearing, that such property is of ‘‘(III) there has not been a substantial ‘‘(4) with respect to a stay of an act against consequential value or benefit to the es- change in the financial or personal affairs of real property under subsection (a), by a cred- tate.’’; and the debtor since the dismissal of the next itor whose claim is secured by an interest in (2) in section 722, by inserting ‘‘in full at most previous case under chapter 7, 11, or 13 such real estate, if the court finds that the the time of redemption’’ before the period at of this title, or any other reason to conclude filing of the bankruptcy petition was part of the end. that the later case will be concluded— a scheme to delay, hinder, and defraud credi- SEC. 305. RELIEF FROM THE AUTOMATIC STAY ‘‘(aa) if a case under chapter 7 of this title, tors that involved either— WHEN THE DEBTOR DOES NOT COM- with a discharge; or ‘‘(A) transfer of all or part ownership of, or PLETE INTENDED SURRENDER OF ‘‘(bb) if a case under chapter 11 or 13 of this other interest in, the real property without CONSUMER DEBT COLLATERAL. title, with a confirmed plan which will be the consent of the secured creditor or court Title 11, United States Code, is amended— fully performed; and approval; or (1) in section 362— ‘‘(ii) as to any creditor that commenced an ‘‘(B) multiple bankruptcy filings affecting (A) in subsection (c), by striking ‘‘(e), and action under subsection (d) in a previous the real property. (f)’’ and inserting ‘‘(e), (f), and (h)’’; and case in which the individual was a debtor if, If recorded in compliance with applicable (B) by redesignating subsection (h), as as of the date of dismissal of such case, that State laws governing notices of interests or amended by section 227 of this Act, as sub- action was still pending or had been resolved liens in real property, an order entered under section (j) and by inserting after subsection by terminating, conditioning, or limiting the this subsection shall be binding in any other (g) the following: stay as to actions of such creditor; and case under this title purporting to affect the ‘‘(h)(1) Subject to paragraph (2), in an indi- ‘‘(4)(A)(i) if a single or joint case is filed by real property filed not later than 2 years vidual case under chapter 7, 11, or 13 the stay or against an individual debtor under this after that recording, except that a debtor in provided by subsection (a) is terminated with title, and if 2 or more single or joint cases of a subsequent case may move for relief from respect to property of the estate securing in the debtor were pending within the previous such order based upon changed cir- whole or in part a claim, or subject to an un- year but were dismissed, other than a case cumstances or for good cause shown, after expired lease, if the debtor fails within the refiled under section 707(b), the stay under notice and a hearing.’’. applicable period of time set by section subsection (a) shall not go into effect upon (b) AUTOMATIC STAY.—Section 362(b) of 521(a)(2) to— the filing of the later case; and title 11, United States Code, as amended by ‘‘(A) file timely any statement of intention ‘‘(ii) on request of a party in interest, the section 213 of this Act, is amended— required under section 521(a)(2) with respect court shall promptly enter an order confirm- (1) in paragraph (19), by striking ‘‘or’’ at to that property or to indicate therein that ing that no stay is in effect; the end; the debtor— ‘‘(B) if, within 30 days after the filing of (2) in paragraph (20), by striking the period ‘‘(i) will either surrender the property or the later case, a party in interest requests at the end; and retain the property; and the court may order the stay to take effect (3) by inserting after paragraph (20) the fol- ‘‘(ii) if retaining the property, will, as in the case as to any or all creditors (subject lowing: applicable— to such conditions or limitations as the ‘‘(21) under subsection (a), of any act to en- ‘‘(I) redeem the property under section 722; court may impose), after notice and hearing, force any lien against or security interest in ‘‘(II) reaffirm the debt the property secures only if the party in interest demonstrates real property following the entry of an order under section 524(c); or that the filing of the later case is in good under section 362(d)(4) as to that property in ‘‘(III) assume the unexpired lease under faith as to the creditors to be stayed; any prior bankruptcy case for a period of 2 section 365(p) if the trustee does not do so; or ‘‘(C) a stay imposed under subparagraph years after entry of such an order, except ‘‘(B) take timely the action specified in (B) shall be effective on the date of entry of that the debtor, in a subsequent case, may that statement of intention, as the state- the order allowing the stay to go into effect; move the court for relief from such order ment may be amended before expiration of and based upon changed circumstances or for the period for taking action, unless the ‘‘(D) for purposes of subparagraph (B), a other good cause shown, after notice and a statement of intention specifies reaffirma- case is presumptively not filed in good faith hearing; or tion and the creditor refuses to reaffirm on (but such presumption may be rebutted by ‘‘(22) under subsection (a), of any act to en- the original contract terms. clear and convincing evidence to the con- force any lien against or security interest in ‘‘(2) Paragraph (1) shall not apply if the trary)— real property— court determines on the motion of the trust- ‘‘(i) as to all creditors if— ‘‘(A) if the debtor is ineligible under sec- ee, and after notice and a hearing, that such ‘‘(I) 2 or more previous cases under this tion 109(g) to be a debtor in a bankruptcy property is of consequential value or benefit title in which the individual was a debtor case; or to the estate.’’; and were pending within the 1-year period; ‘‘(B) if the bankruptcy case was filed in (2) in section 521, as amended by section 304 ‘‘(II) a previous case under this title in violation of a bankruptcy court order in a of this Act— which the individual was a debtor was dis- prior bankruptcy case prohibiting the debtor (A) in subsection (a)(2), as redesignated— missed within the time period stated in this from being a debtor in another bankruptcy (i) by striking ‘‘consumer’’; paragraph after the debtor failed to file or case.’’. (ii) in subparagraph (B)— amend the petition or other documents as re- SEC. 304. DEBTOR RETENTION OF PERSONAL (I) by striking ‘‘forty-five days after the quired by this title or the court without sub- PROPERTY SECURITY. filing of a notice of intent under this sec- stantial excuse (but mere inadvertence or Title 11, United States Code, is amended— tion’’ and inserting ‘‘30 days after the first negligence shall not be substantial excuse (1) in section 521(a), as so redesignated— date set for the meeting of creditors under unless the dismissal was caused by the neg- (A) in paragraph (4), by striking ‘‘and’’ at section 341(a)’’; and ligence of the debtor’s attorney), failed to the end; (II) by striking ‘‘forty-five day period’’ and pay adequate protection as ordered by the (B) in paragraph (5), by striking the period inserting ‘‘30-day period’’; and court, or failed to perform the terms of a at the end and inserting ‘‘; and’’; and (iii) in subparagraph (C), by inserting ‘‘ex- plan confirmed by the court; or (C) by adding at the end the following: cept as provided in section 362(h)’’ before the ‘‘(III) there has not been a substantial ‘‘(6) in an individual case under chapter 7 semicolon; and change in the financial or personal affairs of of this title, not retain possession of per- (B) by adding at the end the following: the debtor since the dismissal of the next sonal property as to which a creditor has an ‘‘(c) If the debtor fails timely to take the most previous case under this title, or any allowed claim for the purchase price secured action specified in subsection (a)(6), or in other reason to conclude that the later case in whole or in part by an interest in that per- paragraph (1) or (2) of section 362(h), with re- will not be concluded, if a case under chapter sonal property unless, in the case of an indi- spect to property which a lessor or bailor 7, with a discharge, and if a case under chap- vidual debtor, the debtor within 45 days after owns and has leased, rented, or bailed to the ter 11 or 13, with a confirmed plan that will the first meeting of creditors under section debtor or as to which a creditor holds a secu- be fully performed; or 341(a)— rity interest not otherwise voidable under March 16, 1999 CONGRESSIONAL RECORD — SENATE S2747 section 522(f), 544, 545, 547, 548, or 549, nothing ‘‘(1) real or personal property that the plan confirmed by the court, the lease is in this title shall prevent or limit the oper- debtor or a dependent of the debtor uses as a deemed rejected as of the conclusion of the ation of a provision in the underlying lease residence; hearing on confirmation. If the lease is re- or agreement that has the effect of placing ‘‘(2) a cooperative that owns property that jected, the stay under section 362 and any the debtor in default under that lease or the debtor or a dependent of the debtor uses stay under section 1301 is automatically ter- agreement by reason of the occurrence, pend- as a residence; or minated with respect to the property subject ency, or existence of a proceeding under this ‘‘(3) a burial plot for the debtor or a de- to the lease.’’. title or the insolvency of the debtor. Nothing pendent of the debtor; (c) ADEQUATE PROTECTION OF LESSORS AND in this subsection shall be deemed to justify shall be reduced to the extent such value is PURCHASE MONEY SECURED CREDITORS.— limiting such a provision in any other cir- attributable to any portion of any property (1) IN GENERAL.—Subchapter I of chapter 13 cumstance.’’. that the debtor disposed of in the 730-day pe- of title 11, United States Code, is amended by SEC. 306. GIVING SECURED CREDITORS FAIR riod ending on the date of the filing of the inserting after section 1307 the following: TREATMENT IN CHAPTER 13. petition, with the intent to hinder, delay, or ‘‘§ 1308. Adequate protection in chapter 13 (a) IN GENERAL.—Section 1325(a)(5)(B)(i) of defraud a creditor and that the debtor could cases title 11, United States Code, is amended to not exempt, or that portion that the debtor ‘‘(a)(1)(A) On or before the date that is 30 read as follows: could not exempt, under subsection (b) if on days after the filing of a case under this ‘‘(i) the plan provides that— such date the debtor had held the property so chapter, the debtor shall make cash pay- ‘‘(I) the holder of such claim retain the lien disposed of.’’. ments in an amount determined under para- securing such claim until the earlier of— SEC. 309. PROTECTING SECURED CREDITORS IN graph (2), to— ‘‘(aa) the payment of the underlying debt CHAPTER 13 CASES. ‘‘(i) any lessor of personal property; and determined under nonbankruptcy law; or (a) STOPPING ABUSIVE CONVERSIONS FROM ‘‘(ii) any creditor holding a claim secured ‘‘(bb) discharge under section 1328; and CHAPTER 13.—Section 348(f)(1) of title 11, by personal property to the extent that the ‘‘(II) if the case under this chapter is dis- United States Code, is amended— claim is attributable to the purchase of that missed or converted without completion of (1) in subparagraph (A), by striking ‘‘and’’ property by the debtor. the plan, such lien shall also be retained by at the end; ‘‘(B) The debtor or the plan shall continue such holder to the extent recognized by ap- (2) in subparagraph (B)— making the adequate protection payments plicable nonbankruptcy law; and’’. (A) by striking ‘‘in the converted case, until the earlier of the date on which— (b) RESTORING THE FOUNDATION FOR SE- with allowed secured claims’’ and inserting ‘‘(i) the creditor begins to receive actual CURED CREDIT.—Section 1325(a) of title 11, ‘‘only in a case converted to chapter 11 or 12 payments under the plan; or United States Code, is amended by adding at but not in a case converted to chapter 7, with ‘‘(ii) the debtor relinquishes possession of the end the following flush sentence: allowed secured claims in cases under chap- the property referred to in subparagraph (A) ‘‘For purposes of paragraph (5), section 506 ters 11 and 12’’; and to— shall not apply to a claim described in that (B) by striking the period and inserting ‘‘; ‘‘(I) the lessor or creditor; or paragraph if the debt that is the subject of and’’; and ‘‘(II) any third party acting under claim of the claim was incurred within the 5-year pe- (3) by adding at the end the following: right. riod preceding the filing of the petition and ‘‘(C) with respect to cases converted from ‘‘(2) The payments referred to in paragraph the collateral for that debt consists of a chapter 13— (1)(A) shall be the contract amount. motor vehicle (as defined in section 30102 of ‘‘(i) the claim of any creditor holding secu- ‘‘(b)(1) Subject to the limitations under title 49) acquired for the personal use of the rity as of the date of the petition shall con- paragraph (2), the court may, after notice debtor, or if collateral for that debt consists tinue to be secured by that security unless and hearing, change the amount, and timing of any other thing of value, if the debt was the full amount of such claim determined of the dates of payment, of payments made incurred during the 6-month period preced- under applicable nonbankruptcy law has under subsection (a). ing that filing.’’. been paid in full as of the date of conversion, ‘‘(2)(A) The payments referred to in para- (c) DEFINITIONS.—Section 101 of title 11, notwithstanding any valuation or deter- graph (1) shall be payable not less frequently United States Code, as amended by section mination of the amount of an allowed se- than monthly. 221 of this Act, is amended— cured claim made for the purposes of the ‘‘(B) The amount of payments referred to (1) by inserting after paragraph (13) the fol- chapter 13 proceeding; and in paragraph (1) shall not be less than the lowing: ‘‘(ii) unless a prebankruptcy default has amount of any weekly, biweekly, monthly, ‘‘(13A) ‘debtor’s principal residence’— been fully cured under the plan at the time or other periodic payment schedules as pay- ‘‘(A) means a residential structure, includ- of conversion, in any proceeding under this able under the contract between the debtor ing incidental property, without regard to title or otherwise, the default shall have the and creditor. whether that structure is attached to real effect given under applicable nonbankruptcy ‘‘(c) Notwithstanding section 1326(b), the property; and law.’’. payments referred to in subsection (a)(1)(A) ‘‘(B) includes an individual condominium (b) GIVING DEBTORS THE ABILITY TO KEEP shall be continued in addition to plan pay- or cooperative unit;’’; and LEASED PERSONAL PROPERTY BY ASSUMP- ments under a confirmed plan until actual (2) by inserting after paragraph (27), the TION.—Section 365 of title 11, United States payments to the creditor begin under that following: Code, is amended by adding at the end the plan, if the confirmed plan provides for— ‘‘(27A) ‘incidental property’ means, with following: ‘‘(1) payments to a creditor or lessor de- respect to a debtor’s principal residence— ‘‘(p)(1) If a lease of personal property is re- scribed in subsection (a)(1); and ‘‘(A) property commonly conveyed with a jected or not timely assumed by the trustee ‘‘(2) the deferral of payments to such credi- principal residence in the area where the real under subsection (d), the leased property is tor or lessor under the plan until the pay- estate is located; no longer property of the estate and the stay ment of amounts described in section 1326(b). ‘‘(B) all easements, rights, appurtenances, under section 362(a) is automatically termi- ‘‘(d) Notwithstanding sections 362, 542, and fixtures, rents, royalties, mineral rights, oil nated. 543, a lessor or creditor described in sub- or gas rights or profits, water rights, escrow ‘‘(2)(A) In the case of an individual under section (a) may retain possession of property funds, or insurance proceeds; and chapter 7, the debtor may notify the creditor described in that subsection that was ob- ‘‘(C) all replacements or additions;’’. in writing that the debtor desires to assume tained in accordance with applicable law be- the lease. Upon being so notified, the credi- fore the date of filing of the petition until SEC. 307. EXEMPTIONS. tor may, at its option, notify the debtor that the first payment under subsection (a)(1)(A) Section 522(b)(2)(A) of title 11, United it is willing to have the lease assumed by the is received by the lessor or creditor. States Code, is amended— debtor and may condition such assumption ‘‘(e) On or before the date that is 60 days (1) by striking ‘‘180’’ and inserting ‘‘730’’; on cure of any outstanding default on terms after the filing of a case under this chapter, and set by the contract. a debtor retaining possession of personal (2) by striking ‘‘, or for a longer portion of ‘‘(B) If within 30 days after notice is pro- property subject to a lease or securing a such 180-day period than in any other place’’. vided under subparagraph (A), the debtor no- claim attributable in whole or in part to the SEC. 308. RESIDENCY REQUIREMENT FOR HOME- tifies the lessor in writing that the lease is purchase price of such property shall provide STEAD EXEMPTION. assumed, the liability under the lease will be each creditor or lessor reasonable evidence Section 522 of title 11, United States Code, assumed by the debtor and not by the estate. of the maintenance of any required insur- as amended by section 307 of this Act, is ‘‘(C) The stay under section 362 and the in- ance coverage with respect to the use or amended— junction under section 524(a)(2) shall not be ownership of such property and continue to (1) in subsection (b)(2)(A), by inserting violated by notification of the debtor and ne- do so for so long as the debtor retains posses- ‘‘subject to subsection (n),’’ before ‘‘any gotiation of cure under this subsection. sion of such property.’’. property’’; and ‘‘(3) In a case under chapter 11 of this title (2) CLERICAL AMENDMENT.—The table of (2) by adding at the end the following: in which the debtor is an individual and in a sections for chapter 13 of title 11, United ‘‘(n) For purposes of subsection (b)(2)(A), case under chapter 13 of this title, if the States Code, is amended, in the matter relat- and notwithstanding subsection (a), the debtor is the lessee with respect to personal ing to subchapter I, by inserting after the value of an interest in— property and the lease is not assumed in the item relating to section 1307 the following: S2748 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘1308. Adequate protection in chapter 13 ‘‘(vii) linens; required to give the creditor notice, such no- cases.’’. ‘‘(viii) china; tice shall be given at that address. SEC. 310. LIMITATION ON LUXURY GOODS. ‘‘(ix) crockery; ‘‘(e) An entity may file with the court a Section 523(a)(2)(C) of title 11, United ‘‘(x) kitchenware; notice stating its address for notice in cases States Code, is amended to read as follows: ‘‘(xi) educational materials and edu- under chapters 7 and 13. After 30 days follow- ‘‘(C)(i) for purposes of subparagraph (A)— cational equipment primarily for the use of ing the filing of such notice, any notice in ‘‘(I) consumer debts owed to a single credi- minor dependent children of the debtor, but any case filed under chapter 7 or 13 given by tor and aggregating more than $250 for lux- only 1 personal computer only if used pri- the court shall be to that address unless spe- ury goods or services incurred by an individ- marily for the education or entertainment of cific notice is given under subsection (d) ual debtor on or within 90 days before the such minor children; with respect to a particular case. order for relief under this title are presumed ‘‘(xii) medical equipment and supplies; ‘‘(f)(1) Notice given to a creditor other to be nondischargeable; and ‘‘(xiii) furniture exclusively for the use of than as provided in this section shall not be ‘‘(II) cash advances aggregating more than minor children, or elderly or disabled de- effective notice until that notice has been $750 that are extensions of consumer credit pendents of the debtor; and brought to the attention of the creditor. If under an open end credit plan obtained by an ‘‘(xiv) personal effects (including wedding the creditor designates a person or depart- individual debtor on or within 70 days before rings and the toys and hobby equipment of ment to be responsible for receiving notices the order for relief under this title, are pre- minor dependent children) of the debtor and concerning bankruptcy cases and establishes sumed to be nondischargeable; and the dependents of the debtor. reasonable procedures so that bankruptcy ‘‘(ii) for purposes of this subparagraph— ‘‘(B) The term ‘household goods’ does not notices received by the creditor are to be de- ‘‘(I) the term ‘extension of credit under an include— livered to such department or person, notice open end credit plan’ means an extension of ‘‘(i) works of art (unless by or of the debtor shall not be considered to have been brought credit under an open end credit plan, within or the dependents of the debtor); to the attention of the creditor until re- the meaning of the Consumer Credit Protec- ‘‘(ii) electronic entertainment equipment ceived by such person or department. ‘‘(2) No sanction under section 362(h) or tion Act (15 U.S.C. 1601 et seq.); (except 1 television, 1 radio, and 1 VCR); any other sanction that a court may impose ‘‘(II) the term ‘open end credit plan’ has ‘‘(iii) items acquired as antiques; on account of violations of the stay under the meaning given that term under section ‘‘(iv) jewelry (except wedding rings); and section 362(a) or failure to comply with sec- 103 of Consumer Credit Protection Act (15 ‘‘(v) a computer (except as otherwise pro- tion 542 or 543 may be imposed on any action U.S.C. 1602); and vided for in this section), motor vehicle (in- of the creditor unless the action takes place ‘‘(III) the term ‘luxury goods or services’ cluding a tractor or lawn tractor), boat, or a after the creditor has received notice of the does not include goods or services reasonably motorized recreational device, conveyance, commencement of the case effective under necessary for the support or maintenance of vehicle, watercraft, or aircraft.’’. this section.’’. the debtor or a dependent of the debtor.’’. SEC. 314. DEBT INCURRED TO PAY NON- (b) DEBTOR’S DUTIES.—Section 521 of title DISCHARGEABLE DEBTS. SEC. 311. AUTOMATIC STAY. 11, United States Code, as amended by sec- Section 362(b) of title 11, United States Section 523(a) of title 11, United States tion 305 of this Act, is amended— Code, as amended by section 303(b) of this Code, is amended by inserting after para- (1) in subsection (a), by striking paragraph Act, is amended— graph (14) the following: (1) and inserting the following: (1) in paragraph (21), by striking ‘‘or’’ at ‘‘(14A)(A) incurred to pay a debt that is ‘‘(1) file— the end; nondischargeable by reason of section 727, ‘‘(A) a list of creditors; and (2) in paragraph (22), by striking the period 1141, 1228(a), 1228(b), or 1328(b), or any other ‘‘(B) unless the court orders otherwise— at the end and inserting a semicolon; and provision of this subsection, if the debtor in- ‘‘(i) a schedule of assets and liabilities; (3) by inserting after paragraph (22) the fol- curred the debt to pay such a nondischarge- ‘‘(ii) a schedule of current income and cur- lowing: able debt with the intent to discharge in rent expenditures; ‘‘(23) under subsection (a)(3), of the con- bankruptcy the newly created debt; ‘‘(iii) a statement of the debtor’s financial tinuation of any eviction, unlawful detainer ‘‘(B) except that all debts incurred to pay affairs and, if applicable, a certificate— action, or similar proceeding by a lessor nondischargeable debts shall be presumed to ‘‘(I) of an attorney whose name is on the against a debtor involving residential real be nondischargeable debts if incurred within petition as the attorney for the debtor or property in which the debtor resides as a 70 days before the filing of the petition (ex- any bankruptcy petition preparer signing tenant under a rental agreement; cept that, in any case in which there is an al- the petition under section 110(b)(1) indicat- ‘‘(24) under subsection (a)(3), of the com- lowed claim under section 502 for child sup- ing that such attorney or bankruptcy peti- mencement of any eviction, unlawful de- port or spousal support entitled to priority tion preparer delivered to the debtor any no- tainer action, or similar proceeding by a les- under section 507(a)(1) and that was filed in tice required by section 342(b); or sor against a debtor involving residential a timely manner, debts that would otherwise ‘‘(II) if no attorney for the debtor is indi- real property in which the debtor resides as be presumed to be nondischargeable debts by cated and no bankruptcy petition preparer a tenant under a rental agreement that has reason of this subparagraph shall be treated signed the petition, of the debtor that such terminated under the lease agreement or ap- as dischargeable debts);’’. notice was obtained and read by the debtor; plicable State law; or (b) DISCHARGE UNDER CHAPTER 13. ‘‘(iv) copies of any Federal tax returns, in- ‘‘(25) under subsection (a)(3), of eviction ac- Section 1328(a) of title 11, United States cluding any schedules or attachments, filed tions based on endangerment to property or Code, is amended by striking paragraphs (1) by the debtor for the 3-year period preceding person or the use of illegal drugs.’’. through (3) and inserting the following: the order for relief; SEC. 312. EXTENSION OF PERIOD BETWEEN ‘‘(1) provided for under section 1322(b)(5); ‘‘(v) copies of all payment advices or other BANKRUPTCY DISCHARGES. ‘‘(2) of the kind specified in paragraph (2), evidence of payment, if any, received by the Title 11, United States Code, is amended— (4), (3)(B), (5), (8), or (9) of section 523(a); debtor from any employer of the debtor in (1) in section 727(a)(8), by striking ‘‘six’’ ‘‘(3) for restitution, or a criminal fine, in- the period 60 days before the filing of the pe- and inserting ‘‘8’’; and cluded in a sentence on the debtor’s convic- tition; (2) in section 1328, by adding at the end the tion of a crime; or ‘‘(vi) a statement of the amount of pro- following: ‘‘(4) for restitution, or damages, awarded in jected monthly net income, itemized to show ‘‘(f) Notwithstanding subsections (a) and a civil action against the debtor as a result how the amount is calculated; and (b), the court shall not grant a discharge of of willful or malicious injury by the debtor ‘‘(vii) a statement disclosing any reason- all debts provided for by the plan or dis- that caused personal injury to an individual ably anticipated increase in income or ex- allowed under section 502 if the debtor has or the death of an individual.’’. penditures over the 12-month period follow- received a discharge in any case filed under SEC. 315. GIVING CREDITORS FAIR NOTICE IN ing the date of filing;’’; and this title within 5 years before the order for CHAPTERS 7 AND 13 CASES. (2) by adding at the end the following: relief under this chapter.’’. (a) NOTICE.—Section 342 of title 11, United ‘‘(d)(1) At any time, a creditor, in the case SEC. 313. DEFINITION OF HOUSEHOLD GOODS States Code, is amended— of an individual under chapter 7 or 13, may AND ANTIQUES. (1) in subsection (c)— file with the court notice that the creditor Section 522(f) of title 11, United States (A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and requests the petition, schedules, and a state- Code, is amended by adding at the end the (B) by striking ‘‘, but the failure of such ment of affairs filed by the debtor in the case following: notice to contain such information shall not and the court shall make those documents ‘‘(4)(A) Subject to subparagraph (B), for invalidate the legal effect of such notice’’; available to the creditor who requests those purposes of paragraph (1)(B), the term and documents. ‘household goods’ means— (2) by adding at the end the following: ‘‘(2)(A) At any time, a creditor in a case ‘‘(i) clothing; ‘‘(d) At any time, a creditor, in a case of an under chapter 13 may file with the court no- ‘‘(ii) furniture; individual debtor under chapter 7 or 13, may tice that the creditor requests the plan filed ‘‘(iii) appliances; file with the court and serve on the debtor a by the debtor in the case. ‘‘(iv) 1 radio; notice of the address to be used to notify the ‘‘(B) The court shall make such plan avail- ‘‘(v) 1 television; creditor in that case. Five days after receipt able to the creditor who requests such plan— ‘‘(vi) 1 VCR; of such notice, if the court or the debtor is ‘‘(i) at a reasonable cost; and March 16, 1999 CONGRESSIONAL RECORD — SENATE S2749 ‘‘(ii) not later than 5 days after such re- SEC. 316. DISMISSAL FOR FAILURE TO TIMELY (1) well grounded in fact; and quest. FILE SCHEDULES OR PROVIDE RE- (2) warranted by existing law or a good- QUIRED INFORMATION. ‘‘(e) An individual debtor in a case under faith argument for the extension, modifica- Section 521 of title 11, United States Code, tion, or reversal of existing law. chapter 7 or 13 shall file with the court— as amended by section 315 of this Act, is ‘‘(1) at the time filed with the taxing au- SEC. 320. PROMPT RELIEF FROM STAY IN INDI- amended by adding at the end the following: VIDUAL CASES. thority, all tax returns, including any sched- ‘‘(i)(1) Notwithstanding section 707(a), and Section 362(e) of title 11, United States ules or attachments, with respect to the pe- subject to paragraph (2), if an individual Code, is amended— riod from the commencement of the case debtor in a voluntary case under chapter 7 or (1) by inserting ‘‘(1)’’ after ‘‘(e)’’; and until such time as the case is closed; 13 fails to file all of the information required (2) by adding at the end the following: ‘‘(2) at the time filed with the taxing au- under subsection (a)(1) within 45 days after ‘‘(2) Notwithstanding paragraph (1), in the thority, all tax returns, including any sched- the filing of the petition commencing the case of an individual filing under chapter 7, ules or attachments, that were not filed with case, the case shall be automatically dis- 11, or 13, the stay under subsection (a) shall the taxing authority when the schedules missed effective on the 46th day after the fil- terminate on the date that is 60 days after a under subsection (a)(1) were filed with re- ing of the petition. request is made by a party in interest under spect to the period that is 3 years before the ‘‘(2) With respect to a case described in subsection (d), unless— order for relief; paragraph (1), any party in interest may re- ‘‘(A) a final decision is rendered by the ‘‘(3) any amendments to any of the tax re- quest the court to enter an order dismissing court during the 60-day period beginning on turns, including schedules or attachments, the case. If requested, the court shall enter the date of the request; or described in paragraph (1) or (2); and an order of dismissal not later than 5 days ‘‘(B) that 60-day period is extended— ‘‘(4) in a case under chapter 13, a statement after such request. ‘‘(i) by agreement of all parties in interest; subject to the penalties of perjury by the ‘‘(3) Upon request of the debtor made with- or debtor of the debtor’s income and expendi- in 45 days after the filing of the petition ‘‘(ii) by the court for such specific period of tures in the preceding tax year and monthly commencing a case described in paragraph time as the court finds is required for good income, that shows how the amounts are (1), the court may allow the debtor an addi- cause, as described in findings made by the calculated— tional period of not to exceed 45 days to file court.’’. ‘‘(A) beginning on the date that is the later the information required under subsection TITLE IV—GENERAL AND SMALL of 90 days after the close of the debtor’s tax (a)(1) if the court finds justification for ex- BUSINESS BANKRUPTCY PROVISIONS year or 1 year after the order for relief, un- tending the period for the filing.’’. Subtitle A—General Business Bankruptcy less a plan has been confirmed; and SEC. 317. ADEQUATE TIME TO PREPARE FOR ‘‘(B) thereafter, on or before the date that HEARING ON CONFIRMATION OF Provisions is 45 days before each anniversary of the con- THE PLAN. SEC. 401. ROLLING STOCK EQUIPMENT. firmation of the plan until the case is closed. (a) HEARING.—Section 1324 of title 11, (a) IN GENERAL.—Section 1168 of title 11, United States Code, is amended— United States Code, is amended to read as ‘‘(f)(1) A statement referred to in sub- (1) by striking ‘‘After’’ and inserting the follows: section (e)(4) shall disclose— following: ‘‘§ 1168. Rolling stock equipment ‘‘(A) the amount and sources of income of ‘‘(a) Except as provided in subsection (b) the debtor; ‘‘(a)(1) The right of a secured party with a and after’’; and ‘‘(B) the identity of any person responsible security interest in or of a lessor or condi- (2) by adding at the end the following: with the debtor for the support of any de- tional vendor of equipment described in ‘‘(b) The hearing on confirmation of the paragraph (2) to take possession of such pendent of the debtor; and plan may be held not later than 45 days after ‘‘(C) the identity of any person who con- equipment in compliance with an equipment the meeting of creditors under section security agreement, lease, or conditional tributed, and the amount contributed, to the 341(a).’’. household in which the debtor resides. sale contract, and to enforce any of its other (b) FILING OF PLAN.—Section 1321 of title rights or remedies under such security agree- ‘‘(2) The tax returns, amendments, and 11, United States Code, is amended to read as ment, lease, or conditional sale contract, to statement of income and expenditures de- follows: sell, lease, or otherwise retain or dispose of scribed in paragraph (1) shall be available to ‘‘§ 1321. Filing of plan such equipment, is not limited or otherwise the United States trustee, any bankruptcy ‘‘Not later than 90 days after the order for affected by any other provision of this title administrator, any trustee, and any party in relief under this chapter, the debtor shall file or by any power of the court, except that the interest for inspection and copying, subject a plan, except that the court may extend right to take possession and enforce those to the requirements of subsection (f). such period if the need for an extension is at- other rights and remedies shall be subject to section 362, if— ‘‘(g)(1) Not later than 30 days after the date tributable to circumstances for which the ‘‘(A) before the date that is 60 days after of enactment of the Bankruptcy Reform Act debtor should not justly be held account- the date of commencement of a case under of 1999, the Director of the Administrative able.’’. this chapter, the trustee, subject to the Office of the United States Courts shall es- SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR court’s approval, agrees to perform all obli- tablish procedures for safeguarding the con- DURATION IN CERTAIN CASES. Section 1322(d) of title 11, United States gations of the debtor under such security fidentiality of any tax information required agreement, lease, or conditional sale con- to be provided under this section. Code, is amended to read as follows: ‘‘(d)(1) Except as provided in paragraph (2), tract; and ‘‘(2) The procedures under paragraph (1) the plan may not provide for payments over ‘‘(B) any default, other than a default of a shall include restrictions on creditor access a period that is longer than 3 years. kind described in section 365(b)(2), under to tax information that is required to be pro- ‘‘(2) The plan may provide for payments such security agreement, lease, or condi- vided under this section. over a period that is longer than 3 years if— tional sale contract that— ‘‘(3) Not later than 1 year after the date of ‘‘(A) the plan is for a case that was con- ‘‘(i) occurs before the date of commence- enactment of the Bankruptcy Reform Act of verted to a case under this chapter from a ment of the case and is an event of default therewith is cured before the expiration of 1999, the Director of the Administrative Of- case under chapter 7, in which case the plan such 60-day period; fice of the United States Courts shall prepare shall provide for payments over a period of 5 ‘‘(ii) occurs or becomes an event of default and submit to Congress a report that— years; or after the date of commencement of the case ‘‘(A) assesses the effectiveness of the proce- ‘‘(B) the plan is for a case that is not de- and before the expiration of such 60-day pe- dures under paragraph (1); and scribed in subparagraph (A), and the court, riod is cured before the later of— ‘‘(B) if appropriate, includes proposed leg- for cause, approves a period longer than 3 ‘‘(I) the date that is 30 days after the date islation to— years, but not to exceed 5 years.’’. of the default or event of the default; or ‘‘(i) further protect the confidentiality of SEC. 319. SENSE OF THE CONGRESS REGARDING ‘‘(II) the expiration of such 60-day period; tax information; and EXPANSION OF RULE 9011 OF THE FEDERAL RULES OF BANKRUPTCY and ‘‘(ii) provide penalties for the improper use PROCEDURE. ‘‘(iii) occurs on or after the expiration of by any person of the tax information re- It is the sense of Congress that Rule 9011 of such 60-day period is cured in accordance quired to be provided under this section. the Federal Rules of Bankruptcy Procedure with the terms of such security agreement, ‘‘(h) If requested by the United States (11 U.S.C. App.) should be modified to include lease, or conditional sale contract, if cure is trustee or a trustee serving in the case, the a requirement that all documents (including permitted under that agreement, lease, or debtor shall provide— schedules), signed and unsigned, submitted conditional sale contract. ‘‘(1) a document that establishes the iden- to the court or to a trustee by debtors who ‘‘(2) The equipment described in this tity of the debtor, including a driver’s li- represent themselves and debtors who are paragraph— cense, passport, or other document that con- represented by an attorney be submitted ‘‘(A) is rolling stock equipment or acces- tains a photograph of the debtor; and only after the debtor or the debtor’s attor- sories used on rolling stock equipment, in- ‘‘(2) such other personal identifying infor- ney has made reasonable inquiry to verify cluding superstructures or racks, that is sub- mation relating to the debtor that estab- that the information contained in such docu- ject to a security interest granted by, leased lishes the identity of the debtor.’’. ments is— to, or conditionally sold to a debtor; and S2750 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘(B) includes all records and documents re- security agreement, lease, or conditional SEC. 402. ADEQUATE PROTECTION FOR INVES- lating to such equipment that are required, sale contract that occurs— TORS. under the terms of the security agreement, ‘‘(i) before the date of the order is cured be- (a) DEFINITION.—Section 101 of title 11, lease, or conditional sale contract, to be sur- fore the expiration of such 60-day period; United States Code, is amended by inserting rendered or returned by the debtor in con- ‘‘(ii) after the date of the order and before after paragraph (48) the following: nection with the surrender or return of such the expiration of such 60-day period is cured ‘‘(48A) ‘securities self regulatory organiza- equipment. before the later of— tion’ means either a securities association ‘‘(3) Paragraph (1) applies to a secured ‘‘(I) the date that is 30 days after the date registered with the Securities and Exchange party, lessor, or conditional vendor acting in of the default; or Commission under section 15A of the Securi- its own behalf or acting as trustee or other- ‘‘(II) the expiration of such 60-day period; ties Exchange Act of 1934 (15 U.S.C. 78o–3) or wise in behalf of another party. and a national securities exchange registered ‘‘(b) The trustee and the secured party, les- ‘‘(iii) on or after the expiration of such 60- with the Securities and Exchange Commis- sor, or conditional vendor whose right to day period is cured in compliance with the sion under section 6 of the Securities Ex- take possession is protected under sub- terms of such security agreement, lease, or change Act of 1934 (15 U.S.C. 78f);’’. section (a) may agree, subject to the court’s conditional sale contract, if a cure is per- (b) AUTOMATIC STAY.—Section 362(b) of approval, to extend the 60-day period speci- mitted under that agreement, lease, or con- title 11, United States Code, as amended by fied in subsection (a)(1). tract. section 311 of this Act, is amended— ‘‘(c)(1) In any case under this chapter, the ‘‘(3) The equipment described in this (1) in paragraph (24), by striking ‘‘or’’ at trustee shall immediately surrender and re- paragraph— the end; turn to a secured party, lessor, or condi- ‘‘(A) is— (2) in paragraph (25), by striking the period tional vendor, described in subsection (a)(1), ‘‘(i) an aircraft, aircraft engine, propeller, at the end and inserting ‘‘; or’’; and equipment described in subsection (a)(2), if appliance, or spare part (as defined in section (3) by inserting after paragraph (25) the fol- at any time after the date of commencement 40102 of title 49) that is subject to a security lowing: of the case under this chapter such secured interest granted by, leased to, or condi- ‘‘(26) under subsection (a), of— party, lessor, or conditional vendor is enti- tionally sold to a debtor that, at the time ‘‘(A) the commencement or continuation of tled under subsection (a)(1) to take posses- such transaction is entered into, holds an air an investigation or action by a securities self sion of such equipment and makes a written carrier operating certificate issued under regulatory organization to enforce such or- demand for such possession of the trustee. chapter 447 of title 49 for aircraft capable of ganization’s regulatory power; ‘‘(2) At such time as the trustee is required carrying 10 or more individuals or 6,000 ‘‘(B) the enforcement of an order or deci- under paragraph (1) to surrender and return pounds or more of cargo; or sion, other than for monetary sanctions, ob- equipment described in subsection (a)(2), any ‘‘(ii) a documented vessel (as defined in tained in an action by the securities self reg- lease of such equipment, and any security section 30101(1) of title 46) that is subject to ulatory organization to enforce such organi- agreement or conditional sale contract relat- a security interest granted by, leased to, or zation’s regulatory power; or ing to such equipment, if such security conditionally sold to a debtor that is a water ‘‘(C) any act taken by the securities self agreement or conditional sale contract is an carrier that, at the time such transaction is regulatory organization to delist, delete, or executory contract, shall be deemed re- entered into, holds a certificate of public refuse to permit quotation of any stock that jected. ‘‘(d) With respect to equipment first placed convenience and necessity or permit issued does not meet applicable regulatory require- in service on or before October 22, 1994, for by the Department of Transportation; and ments.’’. purposes of this section— ‘‘(B) includes all records and documents re- SEC. 403. MEETINGS OF CREDITORS AND EQUITY ‘‘(1) the term ‘lease’ includes any written lating to such equipment that are required, SECURITY HOLDERS. agreement with respect to which the lessor under the terms of the security agreement, Section 341 of title 11, United States Code, and the debtor, as lessee, have expressed in lease, or conditional sale contract, to be sur- is amended by adding at the end the follow- the agreement or in a substantially contem- rendered or returned by the debtor in con- ing: poraneous writing that the agreement is to nection with the surrender or return of such ‘‘(e) Notwithstanding subsections (a) and be treated as a lease for Federal income tax equipment. (b), the court, on the request of a party in in- ‘‘(4) Paragraph (1) applies to a secured purposes; and terest and after notice and a hearing, for party, lessor, or conditional vendor acting in ‘‘(2) the term ‘security interest’ means a cause may order that the United States its own behalf or acting as trustee or other- purchase-money equipment security inter- trustee not convene a meeting of creditors or wise in behalf of another party. equity security holders if the debtor has filed est. ‘‘(b) The trustee and the secured party, les- ‘‘(e) With respect to equipment first placed a plan as to which the debtor solicited ac- sor, or conditional vendor whose right to in service after October 22, 1994, for purposes ceptances prior to the commencement of the take possession is protected under sub- of this section, the term ‘rolling stock equip- case.’’. section (a) may agree, subject to the ap- ment’ includes rolling stock equipment that SEC. 404. PROTECTION OF REFINANCE OF SECU- proval of the court, to extend the 60-day pe- is substantially rebuilt and accessories used RITY INTEREST. riod specified in subsection (a)(1). Subparagraphs (A), (B), and (C) of section on such equipment.’’. ‘‘(c)(1) In any case under this chapter, the IRCRAFT QUIPMENT AND ESSELS 547(e)(2) of title 11, United States Code, are (b) A E V .— trustee shall immediately surrender and re- Section 1110 of title 11, United States Code, turn to a secured party, lessor, or condi- each amended by striking ‘‘10’’ each place it is amended to read as follows: tional vendor, described in subsection (a)(1), appears and inserting ‘‘30’’. ‘‘§ 1110. Aircraft equipment and vessels equipment described in subsection (a)(3), if SEC. 405. EXECUTORY CONTRACTS AND UNEX- ‘‘(a)(1) Except as provided in paragraph (2) at any time after the date of the order for re- PIRED LEASES. and subject to subsection (b), the right of a lief under this chapter such secured party, Section 365(d)(4) of title 11, United States secured party with a security interest in lessor, or conditional vendor is entitled Code, is amended to read as follows: equipment described in paragraph (3), or of a under subsection (a)(1) to take possession of ‘‘(4)(A) Subject to subparagraph (B), in any lessor or conditional vendor of such equip- such equipment and makes a written demand case under any chapter of this title, an unex- ment, to take possession of such equipment for such possession to the trustee. pired lease of nonresidential real property in compliance with a security agreement, ‘‘(2) At such time as the trustee is required under which the debtor is the lessee shall be lease, or conditional sale contract, and to en- under paragraph (1) to surrender and return deemed rejected and the trustee shall imme- force any of its other rights or remedies, equipment described in subsection (a)(3), any diately surrender that nonresidential real under such security agreement, lease, or con- lease of such equipment, and any security property to the lessor if the trustee does not ditional sale contract, to sell, lease, or oth- agreement or conditional sale contract relat- assume or reject the unexpired lease by the erwise retain or dispose of such equipment, ing to such equipment, if such security earlier of— is not limited or otherwise affected by any agreement or conditional sale contract is an ‘‘(i) the date that is 120 days after the date other provision of this title or by any power executory contract, shall be deemed re- of the order for relief; or of the court. jected. ‘‘(ii) the date of the entry of an order con- ‘‘(2) The right to take possession and to en- ‘‘(d) With respect to equipment first placed firming a plan. force the other rights and remedies described in service on or before October 22, 1994, for ‘‘(B) The court may extend the period de- in paragraph (1) shall be subject to section purposes of this section— termined under subparagraph (A) only upon 362 if— ‘‘(1) the term ‘lease’ includes any written a motion of the lessor.’’. ‘‘(A) before the date that is 60 days after agreement with respect to which the lessor SEC. 406. CREDITORS AND EQUITY SECURITY the date of the order for relief under this and the debtor, as lessee, have expressed in HOLDERS COMMITTEES. chapter, the trustee, subject to the approval the agreement or in a substantially contem- Section 1102(a)(2) of title 11, United States of the court, agrees to perform all obliga- poraneous writing that the agreement is to Code, is amended by inserting before the tions of the debtor under such security be treated as a lease for Federal income tax first sentence the following: ‘‘On its own mo- agreement, lease, or conditional sale con- purposes; and tion or on request of a party in interest, and tract; and ‘‘(2) the term ‘security interest’ means a after notice and hearing, the court may ‘‘(B) any default, other than a default of a purchase-money equipment security inter- order a change in the membership of a com- kind specified in section 365(b)(2), under such est.’’. mittee appointed under this subsection, if March 16, 1999 CONGRESSIONAL RECORD — SENATE S2751 the court determines that the change is nec- SEC. 413. PERIOD FOR FILING PLAN UNDER director, officer, or employee of the debtor; essary to ensure adequate representation of CHAPTER 11. and creditors or equity security holders.’’. Section 1121(d) of title 11, United States ‘‘(C) does not have an interest materially SEC. 407. AMENDMENT TO SECTION 546 OF TITLE Code, is amended— adverse to the interest of the estate or of 11, UNITED STATES CODE. (1) by striking ‘‘On’’ and inserting ‘‘(1) any class of creditors or equity security Section 546 of title 11, United States Code, Subject to paragraph (1), on’’; and holders, by reason of any direct or indirect is amended— (2) by adding at the end the following: relationship to, connection with, or interest (1) by redesignating the second subsection ‘‘(2)(A) The 120-day period specified in in, the debtor, or for any other reason;’’. designated as subsection (g) (as added by sec- paragraph (1) may not be extended beyond a SEC. 418. FACTORS FOR COMPENSATION OF PRO- tion 222(a) of Public Law 103–394) as sub- date that is 18 months after the date of the FESSIONAL PERSONS. section (i); and order for relief under this chapter. Section 330(a)(3) of title 11, United States (2) by adding at the end the following: ‘‘(B) The 180-day period specified in para- Code, is amended— ‘‘(j)(1) Notwithstanding section 545 (2) and graph (1) may not be extended beyond a date (1) in subparagraph (D), by striking ‘‘and’’ (3), the trustee may not avoid a that is 20 months after the date of the order at the end; warehouseman’s lien for storage, transpor- for relief under this chapter.’’. (2) by redesignating subparagraph (E) as tation or other costs incidental to the stor- SEC. 414. FEES ARISING FROM CERTAIN OWNER- subparagraph (F); and age and handling of goods. SHIP INTERESTS. (3) by inserting after subparagraph (D) the ‘‘(2) The prohibition under paragraph (1) Section 523(a)(16) of title 11, United States following: shall be applied in a manner consistent with Code, is amended— ‘‘(E) with respect to a professional person, any applicable State statute that is similar (1) by striking ‘‘dwelling’’ the first place it whether the person is board certified or oth- to section 7–209 of the Uniform Commercial appears; erwise has demonstrated skill and experience Code.’’. (2) by striking ‘‘ownership or’’ and insert- in the bankruptcy field;’’. ing ‘‘ownership,’’; SEC. 408. LIMITATION. SEC. 419. APPOINTMENT OF ELECTED TRUSTEE. (3) by striking ‘‘housing’’ the first place it Section 546(c)(1)(B) of title 11, United Section 1104(b) of title 11, United States appears; and States Code, is amended by striking ‘‘20’’ and Code, is amended— (4) by striking ‘‘but only’’ and all that fol- inserting ‘‘45’’. (1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and lows through ‘‘but nothing in this para- (2) by adding at the end the following: SEC. 409. AMENDMENT TO SECTION 330(a) OF graph’’ and inserting ‘‘or a lot in a home- TITLE 11, UNITED STATES CODE. ‘‘(2)(A) If an eligible, disinterested trustee owners association, for as long as the debtor Section 330(a)(3) of title 11, United States is elected at a meeting of creditors under or the trustee has a legal, equitable, or Code, is amended— paragraph (1), the United States trustee possessory ownership interest in such unit, (1) by striking ‘‘(A) the; and inserting ‘‘(i) shall file a report certifying that election. such corporation, or such lot, and until such the’’; ‘‘(B) Upon the filing of a report under sub- time as the debtor or trustee has surrendered (2) by striking ‘‘(B)’’ and inserting ‘‘(ii)’’; paragraph (A)— any legal, equitable or possessory interest in (3) by striking ‘‘(C)’’ and inserting ‘‘(iii)’’; ‘‘(i) the trustee elected under paragraph (1) such unit, such corporation, or such lot, but (4) by striking ‘‘(D)’’ and inserting ‘‘(iv)’’; shall be considered to have been selected and nothing in this paragraph’’. (5) by striking ‘‘(E)’’ and inserting ‘‘(v)’’; appointed for purposes of this section; and (6) in subparagraph (A), by inserting ‘‘to an SEC. 415. CREDITOR REPRESENTATION AT FIRST ‘‘(ii) the service of any trustee appointed MEETING OF CREDITORS. examiner, trustee under chapter 11, or pro- under subsection (d) shall terminate. Section 341(c) of title 11, United States fessional person’’ after ‘‘awarded’’; and ‘‘(C) In the case of any dispute arising out Code, is amended by inserting after the first (7) by adding at the end the following: of an election described in subparagraph (A), sentence the following: ‘‘Notwithstanding ‘‘(B) In determining the amount of reason- the court shall resolve the dispute.’’. any local court rule, provision of a State able compensation to be awarded a trustee, constitution, any other Federal or State law Subtitle B—Small Business Bankruptcy the court shall treat such compensation as a that is not a bankruptcy law, or other re- Provisions commission based on the results achieved.’’. quirement that representation at the meet- SEC. 421. FLEXIBLE RULES FOR DISCLOSURE SEC. 410. POSTPETITION DISCLOSURE AND SO- ing of creditors under subsection (a) be by an STATEMENT AND PLAN. LICITATION. attorney, a creditor holding a consumer debt Section 1125 of title 11, United States Code, Section 1125 of title 11, United States Code, or any representative of the creditor (which is amended by striking subsection (f) and in- is amended by adding at the end the follow- may include an entity or an employee of an serting the following: ing: entity and may be a representative for more ‘‘(f) Notwithstanding subsection (b), in a ‘‘(g) Notwithstanding subsection (b), an ac- small business case— ceptance or rejection of the plan may be so- than 1 creditor) shall be permitted to appear at and participate in the meeting of credi- ‘‘(1) in determining whether a disclosure licited from a holder of a claim or interest if statement provides adequate information, such solicitation complies with applicable tors in a case under chapter 7 or 13, either alone or in conjunction with an attorney for the court shall consider the complexity of nonbankruptcy law and if such holder was the case, the benefit of additional informa- solicited before the commencement of the the creditor. Nothing in this subsection shall be construed to require any creditor to be tion to creditors and other parties in inter- case in a manner complying with applicable est, and the cost of providing additional in- nonbankruptcy law.’’. represented by an attorney at any meeting of creditors.’’. formation; SEC. 411. PREFERENCES. ‘‘(2) the court may determine that the plan SEC. 416. ELIMINATION OF CERTAIN FEES PAY- Section 547(c) of title 11, United States ABLE IN CHAPTER 11 BANKRUPTCY itself provides adequate information and Code, is amended— CASES. that a separate disclosure statement is not (1) by striking paragraph (2) and inserting (a) AMENDMENTS.—Section 1930(a)(6) of necessary; the following: title 28, United States Code, is amended— ‘‘(3) the court may approve a disclosure ‘‘(2) to the extent that such transfer was in (1) in the first sentence by striking ‘‘until statement submitted on standard forms ap- payment of a debt incurred by the debtor in the case is converted or dismissed, whichever proved by the court or adopted under section the ordinary course of business or financial occurs first’’; and 2075 of title 28; and affairs of the debtor and the transferee, and (2) in the second sentence— ‘‘(4)(A) the court may conditionally ap- such transfer was— (A) by striking ‘‘The’’ and inserting ‘‘Until prove a disclosure statement subject to final ‘‘(A) made in the ordinary course of busi- the plan is confirmed or the case is con- approval after notice and a hearing; ness or financial affairs of the debtor and the verted (whichever occurs first) the’’; and ‘‘(B) acceptances and rejections of a plan transferee; or (B) by striking ‘‘less than $300,000;’’ and in- may be solicited based on a conditionally ap- ‘‘(B) made according to ordinary business serting ‘‘less than $300,000. Until the case is proved disclosure statement if the debtor terms;’’; converted, dismissed, or closed (whichever provides adequate information to each hold- (2) in paragraph (7) by striking ‘‘or’’ at the occurs first and without regard to confirma- er of a claim or interest that is solicited, but end; tion of the plan) the fee shall be’’. a conditionally approved disclosure state- (3) in paragraph (8) by striking the period (b) DELAYED EFFECTIVE DATE.—The amend- ment shall be mailed not later than 20 days at the end and inserting ‘‘; or’’; and ments made by subsection (a) shall take ef- before the date of the hearing on confirma- (4) by adding at the end the following: fect on October 1, 1999. tion of the plan; and ‘‘(9) if, in a case filed by a debtor whose SEC. 417. DEFINITION OF DISINTERESTED PER- ‘‘(C) the hearing on the disclosure state- debts are not primarily consumer debts, the SON. ment may be combined with the hearing on aggregate value of all property that con- Section 101(14) of title 11, United States confirmation of a plan.’’. stitutes or is affected by such transfer is less Code, is amended to read as follows: SEC. 422. DEFINITIONS; EFFECT OF DISCHARGE. than $5,000.’’. ‘‘(14) ‘disinterested person’ means a person (a) DEFINITIONS.—Section 101 of title 11, SEC. 412. VENUE OF CERTAIN PROCEEDINGS. that— United States Code, is amended by striking Section 1409(b) of title 28, United States ‘‘(A) is not a creditor, an equity security paragraph (51C) and inserting the following: Code, is amended by inserting ‘‘, or a non- holder, or an insider; ‘‘(51C) ‘small business case’ means a case consumer debt against a noninsider of less ‘‘(B) is not and was not, within 2 years be- filed under chapter 11 of this title in which than $10,000,’’ after ‘‘$5,000’’. fore the date of the filing of the petition, a the debtor is a small business debtor; S2752 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘(51D) ‘small business debtor’— ‘‘(II) timely filing tax returns and paying the court waives that requirement after no- ‘‘(A) subject to subparagraph (B), means a taxes and other administrative claims when tice and hearing, upon a finding of extraor- person (including any affiliate of such person due; and dinary and compelling circumstances; that is also a debtor under this title) that ‘‘(ii) if the debtor is not in compliance with ‘‘(3) timely file all schedules and state- has aggregate noncontingent, liquidated se- the requirements referred to in clause (i)(I) ments of financial affairs, unless the court, cured and unsecured debts as of the date of or filing tax returns and making the pay- after notice and a hearing, grants an exten- the petition or the order for relief in an ments referred to in clause (i)(II), what the sion, which shall not extend such time period amount not more than $4,000,000 (excluding failures are and how, at what cost, and when to a date later than 30 days after the date of debts owed to 1 or more affiliates or insiders) the debtor intends to remedy such failures; the order for relief, absent extraordinary and for a case in which the United States trustee and compelling circumstances; has appointed under section 1102(a)(1) a com- ‘‘(iii) such other matters as are in the best ‘‘(4) file all postpetition financial and mittee of unsecured creditors that the court interests of the debtor and creditors, and in other reports required by the Federal Rules has determined is sufficiently active and rep- the public interest in fair and efficient pro- of Bankruptcy Procedure or by local rule of resentative to provide effective oversight of cedures under chapter 11 of this title.’’. the district court; the debtor; and (2) CLERICAL AMENDMENT.—The table of ‘‘(5) subject to section 363(c)(2), maintain ‘‘(B) does not include any member of a sections for chapter 3 of title 11, United insurance customary and appropriate to the group of affiliated debtors that has aggre- States Code, is amended by inserting after industry; gate noncontingent liquidated secured and the item relating to section 307 the follow- ‘‘(6)(A) timely file tax returns; unsecured debts in an amount greater than ing: ‘‘(B) subject to section 363(c)(2), timely pay $4,000,000 (excluding debt owed to 1 or more ‘‘308. Debtor reporting requirements.’’. all administrative expense tax claims, except affiliates or insiders);’’. (b) EFFECTIVE DATE.—The amendments those being contested by appropriate pro- (b) EFFECT OF DISCHARGE.—Section 524 of made by subsection (a) shall take effect 60 ceedings being diligently prosecuted; and title 11, United States Code, as amended by days after the date on which rules are pre- ‘‘(C) subject to section 363(c)(2), establish 1 section 204 of this Act, is amended by adding scribed under section 2075 of title 28, United or more separate deposit accounts not later at the end the following: States Code, to establish forms to be used to than 10 business days after the date of order ‘‘(j)(1) An individual who is injured by the comply with section 308 of title 11, United for relief (or as soon thereafter as possible if willful failure of a creditor to substantially States Code, as added by subsection (a). all banks contacted decline the business) and deposit therein, not later than 1 business day comply with the requirements specified in SEC. 425. UNIFORM REPORTING RULES AND subsections (c) and (d), or by any willful vio- FORMS FOR SMALL BUSINESS after receipt thereof, all taxes payable for lation of the injunction operating under sub- CASES. periods beginning after the date the case is section (a)(2), shall be entitled to recover— (a) PROPOSAL OF RULES AND FORMS.—The commenced that are collected or withheld by ‘‘(A) the greater of— Advisory Committee on Bankruptcy Rules of the debtor for governmental units, unless ‘‘(i) the amount of actual damages; or the Judicial Conference of the United States the court waives that requirement after no- ‘‘(ii) $1,000; and shall propose for adoption amended Federal tice and hearing, upon a finding of extraor- ‘‘(B) costs and attorneys’ fees. Rules of Bankruptcy Procedure and Official dinary and compelling circumstances; and ‘‘(7) allow the United States trustee, or a ‘‘(2) An action to recover for a violation Bankruptcy Forms to be used by small busi- designated representative of the United specified in paragraph (1) may not be ness debtors to file periodic financial and States trustee, to inspect the debtor’s busi- brought as a class action.’’. other reports containing information, in- ness premises, books, and records at reason- (c) CONFORMING AMENDMENT.—Section cluding information relating to— able times, after reasonable prior written no- 1102(a)(3) of title 11, United States Code, is (1) the debtor’s profitability; tice, unless notice is waived by the debtor.’’. amended by inserting ‘‘debtor’’ after ‘‘small (2) the debtor’s cash receipts and disburse- (b) TECHNICAL AMENDMENT.—The table of business’’. ments; and (3) whether the debtor is timely filing tax sections for chapter 11, United States Code, SEC. 423. STANDARD FORM DISCLOSURE STATE- is amended by inserting after the item relat- MENT AND PLAN. returns and paying taxes and other adminis- trative claims when due. ing to section 1114 the following: Within a reasonable period of time after (b) PURPOSE.—The rules and forms pro- ‘‘1115. Duties of trustee or debtor in posses- the date of the enactment of this Act, the posed under subsection (a) shall be designed sion in small business cases.’’. Advisory Committee on Bankruptcy Rules of to achieve a practical balance among— SEC. 427. PLAN FILING AND CONFIRMATION the Judicial Conference of the United States (1) the reasonable needs of the bankruptcy DEADLINES. shall propose for adoption standard form dis- court, the United States trustee, creditors, Section 1121 of title 11, United States Code, closure statements and plans of reorganiza- and other parties in interest for reasonably is amended by striking subsection (e) and in- tion for small business debtors (as defined in complete information; serting the following: section 101 of title 11, United States Code, as (2) the small business debtor’s interest ‘‘(e) In a small business case— amended by this Act), designed to achieve a that required reports be easy and inexpen- ‘‘(1) only the debtor may file a plan until practical balance between— sive to complete; and after 90 days after the date of the order for (1) the reasonable needs of the courts, the (3) the interest of all parties that the re- relief, unless that period is — United States trustee, creditors, and other quired reports help the small business debtor ‘‘(A) shortened on request of a party in in- parties in interest for reasonably complete to understand the small business debtor’s fi- terest made during the 90-day period; information; and nancial condition and plan the small busi- ‘‘(B) extended as provided by this sub- (2) economy and simplicity for debtors. ness debtor’s future. section, after notice and hearing; or ‘‘(C) the court, for cause, orders otherwise; SEC. 424. UNIFORM NATIONAL REPORTING RE- SEC. 426. DUTIES IN SMALL BUSINESS CASES. QUIREMENTS. ‘‘(2) the plan, and any necessary disclosure (a) DUTIES IN CHAPTER 11 CASES.—Title 11, statement, shall be filed not later than 90 (a) REPORTING REQUIRED.— United States Code, is amended by inserting days after the date of the order for relief; (1) IN GENERAL.—Chapter 3 of title 11, after section 1114 the following: United States Code, is amended by inserting and ‘‘§ 1115. Duties of trustee or debtor in posses- after section 307 the following: ‘‘(3) the time periods specified in para- sion in small business cases graphs (1) and (2), and the time fixed in sec- ‘‘§ 308. Debtor reporting requirements ‘‘In a small business case, a trustee or the tion 1129(e), within which the plan shall be ‘‘(1) For purposes of this section, the term debtor in possession, in addition to the du- confirmed, may be extended only if— ‘profitability’ means, with respect to a debt- ties provided in this title and as otherwise ‘‘(A) the debtor, after providing notice to or, the amount of money that the debtor has required by law, shall— parties in interest (including the United earned or lost during current and recent fis- ‘‘(1) append to the voluntary petition or, in States trustee), demonstrates by a prepon- cal periods. an involuntary case, file within 3 days after derance of the evidence that it is more likely ‘‘(2) A small business debtor shall file peri- the date of the order for relief— than not that the court will confirm a plan odic financial and other reports containing ‘‘(A) its most recent balance sheet, state- within a reasonable period of time; information including— ment of operations, cash-flow statement, ‘‘(B) a new deadline is imposed at the time ‘‘(A) the debtor’s profitability; Federal income tax return; or the extension is granted; and ‘‘(B) reasonable approximations of the ‘‘(B) a statement made under penalty of ‘‘(C) the order extending time is signed be- debtor’s projected cash receipts and cash dis- perjury that no balance sheet, statement of fore the existing deadline has expired.’’. bursements over a reasonable period; operations, or cash-flow statement has been SEC. 428. PLAN CONFIRMATION DEADLINE. ‘‘(C) comparisons of actual cash receipts prepared and no Federal tax return has been Section 1129 of title 11, United States Code, and disbursements with projections in prior filed; is amended by adding at the end the follow- reports; ‘‘(2) attend, through its senior manage- ing: ‘‘(D)(i) whether the debtor is— ment personnel and counsel, meetings sched- ‘‘(e) In a small business case, the plan shall ‘‘(I) in compliance in all material respects uled by the court or the United States trust- be confirmed not later than 150 days after with postpetition requirements imposed by ee, including initial debtor interviews, the date of the order for relief, unless such this title and the Federal Rules of Bank- scheduling conferences, and meetings of 150-day period is extended as provided in sec- ruptcy Procedure; and creditors convened under section 341 unless tion 1121(e)(3).’’. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2753 SEC. 429. PROHIBITION AGAINST EXTENSION OF (B) by adding at the end the following: ling circumstances prevent the court from TIME. ‘‘(2) If such violation is based on an action meeting the time limits established by this Section 105(d) of title 11, United States taken by an entity in the good faith belief paragraph. Code, is amended— that subsection (h) applies to the debtor, the ‘‘(4) For purposes of this subsection, cause (1) in paragraph (1), by striking ‘‘and’’ at recovery under paragraph (1) against such includes— the end; entity shall be limited to actual damages.’’; ‘‘(A) substantial or continuing loss to or (2) in paragraph (2)(B)(vi), by striking the and diminution of the estate; period at the end and inserting ‘‘; and’’; and (2) by inserting after subsection (j), as ‘‘(B) gross mismanagement of the estate; (3) by adding at the end the following: added by section 419 of this Act, the follow- ‘‘(C) failure to maintain appropriate insur- ‘‘(3) in a small business case, not extend ing: ance; the time periods specified in sections 1121(e) ‘‘(k)(1) Except as provided in paragraph (2), ‘‘(D) unauthorized use of cash collateral and 1129(e), except as provided in section the filing of a petition under chapter 11 of harmful to 1 or more creditors; 1121(e)(3).’’. this title operates as a stay of the acts de- ‘‘(E) failure to comply with an order of the SEC. 430. DUTIES OF THE UNITED STATES TRUST- scribed in subsection (a) only in an involun- court; EE. tary case involving no collusion by the debt- ‘‘(F) failure timely to satisfy any filing or Section 586(a) of title 28, United States or with creditors and in which the debtor— reporting requirement established by this Code, is amended— ‘‘(A) is a debtor in a small business case title or by any rule applicable to a case (1) in paragraph (3)— pending at the time the petition is filed; under this chapter; (A) in subparagraph (G), by striking ‘‘and’’ ‘‘(B) was a debtor in a small business case ‘‘(G) failure to attend the meeting of credi- at the end; that was dismissed for any reason by an tors convened under section 341(a) or an ex- (B) by redesignating subparagraph (H) as order that became final in the 2-year period amination ordered under Rule 2004 of the subparagraph (I); and ending on the date of the order for relief en- Federal Rules of Bankruptcy Procedure; (C) by inserting after subparagraph (G) the tered with respect to the petition; ‘‘(H) failure timely to provide information following: ‘‘(C) was a debtor in a small business case or attend meetings reasonably requested by ‘‘(H) in small business cases (as defined in in which a plan was confirmed in the 2-year the United States trustee; section 101 of title 11), performing the addi- period ending on the date of the order for re- ‘‘(I) failure timely to pay taxes due after tional duties specified in title 11 pertaining lief entered with respect to the petition; or the date of the order for relief or to file tax to such cases;’’; ‘‘(D) is an entity that has succeeded to sub- returns due after the order for relief; (2) in paragraph (5), by striking ‘‘and’’ at stantially all of the assets or business of a ‘‘(J) failure to file a disclosure statement, the end; small business debtor described in subpara- or to file or confirm a plan, within the time (3) in paragraph (6), by striking the period graph (A), (B), or (C). fixed by this title or by order of the court; at the end and inserting ‘‘; and’’; and ‘‘(2) Paragraph (1) does not apply to the fil- ‘‘(K) failure to pay any fees or charges re- (4) by inserting after paragraph (6) the fol- ing of a petition if the debtor proves by a quired under chapter 123 of title 28; lowing: preponderance of the evidence that— ‘‘(7) in each of such small business cases— ‘‘(L) revocation of an order of confirmation ‘‘(A) the filing of that petition resulted under section 1144; ‘‘(A) conduct an initial debtor interview as from circumstances beyond the control of soon as practicable after the entry of order ‘‘(M) inability to effectuate substantial the debtor not foreseeable at the time the for relief but before the first meeting sched- consummation of a confirmed plan; case then pending was filed; and uled under section 341(a) of title 11, at which ‘‘(N) material default by the debtor with ‘‘(B) it is more likely than not that the time the United States trustee shall— respect to a confirmed plan; and court will confirm a feasible plan, but not a ‘‘(i) begin to investigate the debtor’s via- ‘‘(O) termination of a plan by reason of the liquidating plan, within a reasonable period bility; occurrence of a condition specified in the of time.’’. ‘‘(ii) inquire about the debtor’s business plan. SEC. 433. EXPANDED GROUNDS FOR DISMISSAL ‘‘(5) The court shall commence the hearing plan; OR CONVERSION AND APPOINT- on any motion under this subsection not ‘‘(iii) explain the debtor’s obligations to MENT OF TRUSTEE. later than 30 days after filing of the motion, file monthly operating reports and other re- (a) EXPANDED GROUNDS FOR DISMISSAL OR and shall decide the motion within 15 days quired reports; CONVERSION.—Section 1112 of title 11, United after commencement of the hearing, unless ‘‘(iv) attempt to develop an agreed schedul- States Code, is amended by striking sub- the movant expressly consents to a continu- ing order; and section (b) and inserting the following: ance for a specific period of time or compel- ‘‘(v) inform the debtor of other obligations; ‘‘(b)(1) Except as provided in paragraph (2), ling circumstances prevent the court from ‘‘(B) if determined to be appropriate and in subsection (c), and section 1104(a)(3), on meeting the time limits established by this advisable, visit the appropriate business request of a party in interest, and after no- paragraph.’’. premises of the debtor and ascertain the tice and a hearing, the court shall convert a (b) ADDITIONAL GROUNDS FOR APPOINTMENT state of the debtor’s books and records and case under this chapter to a case under chap- OF TRUSTEE.—Section 1104(a) of title 11, verify that the debtor has filed its tax re- ter 7 or dismiss a case under this chapter, United States Code, is amended— turns; and whichever is in the best interest of creditors (1) in paragraph (1) by striking ‘‘or’’ at the ‘‘(C) review and monitor diligently the and the estate, if the movant establishes end; debtor’s activities, to identify as promptly cause. (2) in paragraph (2) by striking the period as possible whether the debtor will be unable ‘‘(2) The relief provided in paragraph (1) at the end and inserting ‘‘; or’’; and to confirm a plan; and shall not be granted if the debtor or another (3) by adding at the end the following: ‘‘(8) in any case in which the United States party in interest objects and establishes by a ‘‘(3) if grounds exist to convert or dismiss trustee finds material grounds for any relief preponderance of the evidence that— the case under section 1112, but the court de- under section 1112 of title 11, the United ‘‘(A) it is more likely than not that a plan termines that the appointment of a trustee States trustee shall apply promptly after will be confirmed within— is in the best interests of creditors and the making that finding to the court for relief.’’. ‘‘(i) a period of time fixed under this title estate.’’. SEC. 431. SCHEDULING CONFERENCES. or by order of the court entered under sec- SEC. 434. STUDY OF OPERATION OF TITLE 11, Section 105(d) of title 11, United States tion 1121(e)(3); or UNITED STATES CODE, WITH RE- Code, as amended by section 429 of this Act, ‘‘(ii) a reasonable period of time if no pe- SPECT TO SMALL BUSINESSES. is amended— riod of time has been fixed; and Not later than 2 years after the date of the (1) in the matter preceding paragraph (1) ‘‘(B) if the reason is an act or omission of enactment of this Act, the Administrator of by striking ‘‘, may’’; the debtor that— the Small Business Administration, in con- (2) by striking paragraph (1) and inserting ‘‘(i) there exists a reasonable justification sultation with the Attorney General of the the following: for the act or omission; and United States, the Director of the Adminis- ‘‘(1) shall hold such status conferences as ‘‘(ii)(I) the act or omission will be cured trative Office of United States Trustees, and are necessary to further the expeditious and within a reasonable period of time fixed by the Director of the Administrative Office of economical resolution of the case; and’’; and the court, but not to exceed 30 days after the the United States Courts, shall— (3) in paragraph (2), by striking ‘‘unless in- court decides the motion, unless the movant (1) conduct a study to determine— consistent with another provision of this expressly consents to a continuance for a (A) the internal and external factors that title or with applicable Federal Rules of specific period of time; or cause small businesses, especially sole pro- Bankruptcy Procedure,’’ and inserting ‘‘(II) compelling circumstances beyond the prietorships, to become debtors in cases ‘‘may’’. control of the debtor justify an extension. under title 11, United States Code, and that SEC. 432. SERIAL FILER PROVISIONS. ‘‘(3) The court shall commence the hearing cause certain small businesses to success- Section 362 of title 11, United States Code, on any motion under this subsection not fully complete cases under chapter 11 of such is amended— later than 30 days after filing of the motion, title; and (1) in subsection (j), as redesignated by sec- and shall decide the motion within 15 days (B) how Federal laws relating to bank- tion 305(1) of this Act— after commencement of the hearing, unless ruptcy may be made more effective and effi- (A) by striking ‘‘An’’ and inserting ‘‘(1) Ex- the movant expressly consents to a continu- cient in assisting small businesses to remain cept as provided in paragraph (2), an’’; and ance for a specific period of time or compel- viable; and S2754 CONGRESSIONAL RECORD — SENATE March 16, 1999 (2) submit to the President pro tempore of statistical norm of the disctrict in which the tion collected under subsection (a) that con- the Senate and the Speaker of the House of schedules were filed; and tains an analysis of the information. Representatives a report summarizing that ‘‘(iv) include procedures for providing, not ‘‘(c) The compilation required under sub- study. less frequently than annually, public infor- section (b) shall— SEC. 435. PAYMENT OF INTEREST. mation concerning the aggregate results of ‘‘(1) be itemized, by chapter, with respect Section 362(d)(3) of title 11, United States the audits referred to in this subparagraph, to title 11; Code, is amended— including the percentage of cases, by dis- ‘‘(2) be presented in the aggregate and for (1) by inserting ‘‘or 30 days after the court trict, in which a material misstatement of each district; and determines that the debtor is subject to this income or expenditures is reported. ‘‘(3) include information concerning— paragraph, whichever is later’’ after ‘‘90-day ‘‘(2) The United States trustee for each dis- ‘‘(A) the total assets and total liabilities of period)’’; and trict may contract with auditors to perform the debtors described in subsection (a), and (2) by striking subparagraph (B) and insert- audits in cases designated by the United in each category of assets and liabilities, as ing the following: States trustee according to the procedures reported in the schedules prescribed under ‘‘(B) the debtor has commenced monthly established under paragraph (1). section 2075 and filed by those debtors; payments that— ‘‘(3)(A) The report of each audit conducted ‘‘(B) the total current monthly income, ‘‘(i) may, in the debtor’s sole discretion, under this subsection shall be filed with the projected monthly net income, and average notwithstanding section 363(c)(2), be made court and transmitted to the United States income, and average expenses of those debt- from rents or other income generated before trustee. Each report shall clearly and con- ors as reported on the schedules and state- or after the commencement of the case by or spicuously specify any material ments that each such debtor files under sec- from the property to each creditor whose misstatement of income or expenditures or tions 111, 521, and 1322 of title 11; claim is secured by such real estate (other of assets identified by the person performing ‘‘(C) the aggregate amount of debt dis- than a claim secured by a judgment lien or the audit. In any case where a material charged in the reporting period, determined by an unmatured statutory lien); and misstatement of income or expenditures or as the difference between the total amount ‘‘(ii) are in an amount equal to interest at of assets has been reported, the clerk of the of debt and obligations of a debtor reported the then applicable nondefault contract rate bankruptcy court shall give notice of the on the schedules and the amount of such of interest on the value of the creditor’s in- misstatement to the creditors in the case. debt reported in categories which are pre- terest in the real estate; or’’. ‘‘(B) If a material misstatement of income dominantly nondischargeable; or expenditures or of assets is reported, the ‘‘(D) the average period of time between TITLE V—MUNICIPAL BANKRUPTCY United States trustee shall— the filing of the petition and the closing of PROVISIONS ‘‘(i) report the material misstatement, if the case; SEC. 501. PETITION AND PROCEEDINGS RELATED appropriate, to the United States Attorney ‘‘(E) for the reporting period— TO PETITION. under section 3057 of title 18; and ‘‘(i) the number of cases in which a reaffir- (a) TECHNICAL AMENDMENT RELATING TO ‘‘(ii) if advisable, take appropriate action, mation was filed; and MUNICIPALITIES.—Section 921(d) of title 11, including commencing an adversary proceed- ‘‘(ii)(I) the total number of reaffirmations United States Code, is amended by inserting ing to revoke the debtor’s discharge under filed; ‘‘, notwithstanding section 301(b)’’ before the section 727(d) of title 11.’’. ‘‘(II) of those cases in which a reaffirma- period at the end. (b) AMENDMENTS TO SECTION 521 OF TITLE tion was filed, the number in which the debt- (b) CONFORMING AMENDMENT.—Section 301 11, UNITED STATES CODE.—Paragraphs (3) and or was not represented by an attorney; and of title 11, United States Code, is amended— (4) of section 521(a) of title 11, United States ‘‘(III) of the cases under each of subclauses (1) by inserting ‘‘(a)’’ before ‘‘A vol- Code, as amended by section 315 of this Act, (I) and (II), the number of cases in which the untary’’; and are each amended by inserting ‘‘or an audi- reaffirmation was approved by the court; (2) by striking the last sentence and insert- tor appointed under section 586 of title 28’’ ‘‘(F) with respect to cases filed under chap- ing the following: after ‘‘serving in the case’’ each place that ter 13 of title 11, for the reporting period— ‘‘(b) The commencement of a voluntary term appears. ‘‘(i)(I) the number of cases in which a final case under a chapter of this title constitutes (c) AMENDMENTS TO SECTION 727 OF TITLE order was entered determining the value of an order for relief under such chapter.’’. 11, UNITED STATES CODE.—Section 727(d) of property securing a claim in an amount less SEC. 502. APPLICABILITY OF OTHER SECTIONS title 11, United States Code, is amended— than the amount of the claim; and TO CHAPTER 9. (1) in paragraph (2), by striking ‘‘or’’ at the ‘‘(II) the number of final orders determin- Section 901 of title 11, United States Code, end; ing the value of property securing a claim is amended— (2) in paragraph (3), by striking the period issued; (1) by inserting ‘‘555, 556,’’ after ‘‘553,’’; and at the end and inserting ‘‘; or’’; and ‘‘(ii) the number of cases dismissed for fail- (2) by inserting ‘‘559, 560,’’ after ‘‘557,’’. (3) by adding at the end the following: ure to make payments under the plan; and TITLE VI—IMPROVED BANKRUPTCY ‘‘(4) the debtor has failed to explain ‘‘(iii) the number of cases in which the STATISTICS AND DATA satisfactorily— debtor filed another case during the 6-year ‘‘(A) a material misstatement in an audit SEC. 601. AUDIT PROCEDURES. period preceding the date of filing; performed under section 586(f) of title 28; or ‘‘(G) the number of cases in which credi- (a) AMENDMENTS.—Section 586 of title 28, ‘‘(B) a failure to make available for inspec- United States Code, is amended— tors were fined for misconduct and any tion all necessary accounts, papers, docu- (1) in subsection (a), by striking paragraph amount of punitive damages awarded by the ments, financial records, files, and any other (6) and inserting the following: court for creditor misconduct; and papers, things, or property belonging to the ‘‘(6) make such reports as the Attorney ‘‘(H) the number of cases in which sanc- debtor that are requested for an audit con- General directs, including the results of au- tions under Rule 9011 of the Federal Rules of ducted under section 586(f).’’. dits performed under subsection (f); and’’; Bankruptcy Procedure were imposed against (d) EFFECTIVE DATE.—The amendments debtor’s counsel and damages awarded under and made by this section shall take effect 18 (2) by adding at the end the following: such rule.’’. months after the date of enactment of this (b) CLERICAL AMENDMENT.—The table of ‘‘(f)(1)(A) The Attorney General shall es- Act. sections for chapter 6 of title 28, United tablish procedures to determine the accu- SEC. 602. IMPROVED BANKRUPTCY STATISTICS. States Code, is amended by adding at the end racy, veracity, and completeness of peti- the following: tions, schedules, and other information (a) AMENDMENT.—Chapter 6 of title 28, which the debtor is required to provide under United States Code, is amended by adding at ‘‘159. Bankruptcy statistics.’’. the end the following: sections 521 and 1322 of title 11, and, if appli- (c) EFFECTIVE DATE.—The amendments cable, section 111 of title 11, in individual ‘‘§ 159. Bankruptcy statistics made by this section shall take effect 18 cases filed under chapter 7 or 13 of such title. ‘‘(a) The clerk of each district court shall months after the date of enactment of this ‘‘(B) Those procedures shall— compile statistics regarding individual debt- Act. ‘‘(i) establish a method of selecting appro- ors with primarily consumer debts seeking SEC. 603. UNIFORM RULES FOR THE COLLECTION priate qualified persons to contract to per- relief under chapters 7, 11, and 13 of title 11. OF BANKRUPTCY DATA. form those audits; Those statistics shall be in a form prescribed (a) AMENDMENT.—Chapter 39 of title 28, ‘‘(ii) establish a method of randomly se- by the Director of the Administrative Office United States Code, is amended by inserting lecting cases to be audited, except that not of the United States Courts (referred to in after section 589a the following: less than 1 out of every 250 cases in each Fed- this section as the ‘Office’). ‘‘§ 589b. Bankruptcy data eral judicial district shall be selected for ‘‘(b) The Director shall— ‘‘(a) Within a reasonable period of time audit; ‘‘(1) compile the statistics referred to in after the effective date of this section, The ‘‘(iii) require audits for schedules of in- subsection (a); Attorney General of the United States shall come and expenses which reflect greater ‘‘(2) make the statistics available to the issue rules requiring uniform forms for (and than average variances from the statistical public; and from time to time thereafter to appro- norm of the district in which the schedules ‘‘(3) not later than October 31, 1999, and an- priately modify and approve)— were filed if those variances occur by reason nually thereafter, prepare, and submit to ‘‘(1) final reports by trustees in cases under of higher income or higher expenses than the Congress a report concerning the informa- chapters 7, 12, and 13 of title 11; and March 16, 1999 CONGRESSIONAL RECORD — SENATE S2755 ‘‘(2) periodic reports by debtors in posses- ‘‘(G) plans of reorganization filed and con- (2) in subparagraph (B), by striking the pe- sion or trustees, as the case may be, in cases firmed and, with respect thereto, by class, riod at the end and inserting ‘‘; or’’; and under chapter 11 of title 11. the recoveries of the holders, expressed in (3) by adding at the end the following: ‘‘(b) Each report referred to in subsection aggregate dollar values and, in the case of ‘‘(C) the amount or legality of any amount (a) shall be designed (and the requirements claims, as a percentage of total claims of the arising in connection with an ad valorem tax as to place and manner of filing shall be es- class allowed. on real or personal property of the estate, if tablished) so as to facilitate compilation of ‘‘(2) The information described in para- the applicable period for contesting or rede- data and maximum practicable access of the graph (1) shall be in addition to such other termining that amount under any law (other public, by— matters as are required by law for a periodic than a bankruptcy law) has expired.’’. ‘‘(1) physical inspection at 1 or more cen- report or as the Attorney General, in the dis- SEC. 702. EFFECTIVE NOTICE TO GOVERNMENT. tral filing locations; and cretion of the Attorney General, may pro- (a) EFFECTIVE NOTICE TO GOVERNMENTAL ‘‘(2) electronic access through the Internet pose for a periodic report.’’. UNITS.—Section 342 of title 11, United States or other appropriate media. (b) TECHNICAL AMENDMENT.—The table of Code, as amended by section 315(a) of this ‘‘(c)(1) The information required to be filed sections for chapter 39 of title 28, United Act, is amended by adding at the end the fol- in the reports referred to in subsection (b) States Code, is amended by adding at the end lowing: shall be information that is— the following: ‘‘(g)(1) If a debtor lists a governmental unit ‘‘(A) in the best interests of debtors and ‘‘589b. Bankruptcy data.’’. as a creditor in a list or schedule, any notice creditors, and in the public interest; and SEC. 604. SENSE OF CONGRESS REGARDING required to be given by the debtor under this ‘‘(B) reasonable and adequate information AVAILABILITY OF BANKRUPTCY title, applicable rule, other provision of law, to evaluate the efficiency and practicality of DATA. or order of the court, shall identify the de- the Federal bankruptcy system. It is the sense of Congress that— partment, agency, or instrumentality ‘‘(2) In issuing rules proposing the forms (1) it should be the national policy of the through which the debtor is indebted. referred to in subsection (a), the Attorney United States that all data held by bank- ‘‘(2) The debtor shall identify (with infor- General shall strike the best achievable ruptcy clerks in electronic form, to the ex- mation such as a taxpayer identification practical balance between— tent such data reflects only public records number, loan, account or contract number, ‘‘(A) the reasonable needs of the public for (as defined in section 107 of title 11, United or real estate parcel number, if applicable), information about the operational results of States Code), should be released in a usable and describe the underlying basis for the the Federal bankruptcy system; and electronic form in bulk to the public subject claim of the governmental unit. ‘‘(B) economy, simplicity, and lack of to such appropriate privacy concerns and ‘‘(3) If the liability of the debtor to a gov- undue burden on persons with a duty to file safeguards as the Judicial Conference of the ernmental unit arises from a debt or obliga- reports. United States may determine; and tion owed or incurred by another individual, ‘‘(d)(1) Final reports proposed for adoption (2) there should be established a bank- entity, or organization, or under a different by trustees under chapters 7, 12, and 13 of ruptcy data system in which— name, the debtor shall identify that individ- title 11 shall include with respect to a case (A) a single set of data definitions and ual, entity, organization, or name. under such title, by appropriate category— forms are used to collect data nationwide; ‘‘(h) The clerk shall keep and update on a ‘‘(A) information about the length of time and quarterly basis, in such form and manner as the case was pending; (B) data for any particular bankruptcy the Director of the Administrative Office of ‘‘(B) assets abandoned; case are aggregated in the same electronic the United States Courts prescribes, a reg- ‘‘(C) assets exempted; record. ister in which a governmental unit may des- ‘‘(D) receipts and disbursements of the es- ignate or redesignate a mailing address for tate; TITLE VII—BANKRUPTCY TAX PROVISIONS service of notice in cases pending in the dis- ‘‘(E) expenses of administration; trict. The clerk shall make such register SEC. 701. TREATMENT OF CERTAIN LIENS. ‘‘(F) claims asserted; available to debtors.’’. (a) TREATMENT OF CERTAIN LIENS.—Section ‘‘(G) claims allowed; and (b) ADOPTION OF RULES PROVIDING NO- 724 of title 11, United States Code, is ‘‘(H) distributions to claimants and claims TICE.— amended— discharged without payment. (1) IN GENERAL.—Within a reasonable pe- (1) in subsection (b), in the matter preced- ‘‘(2) In cases under chapters 12 and 13 of riod of time after the date of enactment of title 11, final reports proposed for adoption ing paragraph (1), by inserting ‘‘(other than this Act, the Advisory Committee on Bank- by trustees shall include— to the extent that there is a properly per- ruptcy Rules of the Judicial Conference shall ‘‘(A) the date of confirmation of the plan; fected unavoidable tax lien arising in con- propose for adoption enhanced rules for pro- ‘‘(B) each modification to the plan; and nection with an ad valorem tax on real or viding notice to Federal, State, and local ‘‘(C) defaults by the debtor in performance personal property of the estate)’’ after government units that have regulatory au- under the plan. ‘‘under this title’’; thority over the debtor or that may be credi- ‘‘(3) The information described in para- (2) in subsection (b)(2), by inserting ‘‘(ex- tors in the debtor’s case. graphs (1) and (2) shall be in addition to such cept that such expenses, other than claims (2) PERSONS NOTIFIED.—The rules proposed other matters as are required by law for a for wages, salaries, or commissions which under paragraph (1) shall be reasonably cal- final report or as the Attorney General, in arise after the filing of a petition, shall be culated to ensure that notice will reach the the discretion of the Attorney General, may limited to expenses incurred under chapter 7 representatives of the governmental unit (or propose for a final report. of this title and shall not include expenses subdivision thereof) who will be the appro- ‘‘(e)(1) Periodic reports proposed for adop- incurred under chapter 11 of this title)’’ after priate persons authorized to act upon the no- tion by trustees or debtors in possession ‘‘507(a)(1)’’; and tice. under chapter 11 of title 11 shall include— (3) by adding at the end the following: ‘‘(A) information about the standard indus- ‘‘(e) Before subordinating a tax lien on real (3) RULES REQUIRED.—At a minimum, the try classification, published by the Depart- or personal property of the estate, the trust- rules under paragraph (1) should require that ment of Commerce, for the businesses con- ee shall— the debtor— ducted by the debtor; ‘‘(1) exhaust the unencumbered assets of (A) identify in the schedules and the no- ‘‘(B) the length of time the case has been the estate; and tice, the subdivision, agency, or entity with pending; ‘‘(2) in a manner consistent with section respect to which such notice should be re- ‘‘(C) the number of full-time employees— 506(c), recover from property securing an al- ceived; ‘‘(i) as of the date of the order for relief; lowed secured claim the reasonable, nec- (B) provide sufficient information (such as and essary costs, and expenses of preserving or case captions, permit numbers, taxpayer ‘‘(ii) at the end of each reporting period disposing of that property. identification numbers, or similar identify- since the case was filed; ‘‘(f) Notwithstanding the exclusion of ad ing information) to permit the governmental ‘‘(D) cash receipts, cash disbursements, and valorem tax liens under this section and sub- unit (or subdivision thereof) entitled to re- profitability of the debtor for the most re- ject to the requirements of subsection (e), ceive such notice to identify the debtor or cent period and cumulatively since the date the following may be paid from property of the person or entity on behalf of which the of the order for relief; the estate which secures a tax lien, or the debtor is providing notice in any case in ‘‘(E) compliance with title 11, whether or proceeds of such property: which— not tax returns and tax payments since the ‘‘(1) Claims for wages, salaries, and com- (i) the debtor may be a successor in inter- date of the order for relief have been timely missions that are entitled to priority under est; or filed and made; section 507(a)(3). (ii) may not be the same entity as the en- ‘‘(F) all professional fees approved by the ‘‘(2) Claims for contributions to an em- tity that incurred the debt or obligation; and court in the case for the most recent period ployee benefit plan entitled to priority under (C) identify, in appropriate schedules, and cumulatively since the date of the order section 507(a)(4).’’. served together with the notice— for relief (separately reported, for the profes- (b) DETERMINATION OF TAX LIABILITY.—Sec- (i) the property with respect to which the sional fees incurred by or on behalf of the tion 505(a)(2) of title 11, United States Code, claim or regulatory obligation may have debtor, between those that would have been is amended— arisen, if applicable; incurred absent a bankruptcy case and those (1) in subparagraph (A), by striking ‘‘or’’ at (ii) the nature of such claim or regulatory that would not have been so incurred); and the end; obligation; and S2756 CONGRESSIONAL RECORD — SENATE March 16, 1999 (iii) the purpose for which notice is being ‘‘(ii) assessed within 240 days before the ‘‘(D) with respect to a secured claim which given. date of the filing of the petition, exclusive would otherwise meet the description on an (c) EFFECT OF FAILURE OF NOTICE.—Section of— unsecured claim of a governmental unit 342 of title 11, United States Code, as amend- ‘‘(I) any time during which an offer in com- under section 507(a)(8), but for the secured ed by subsection (a), is amended by adding at promise with respect to that tax, was pend- status of that claim, the holder of that claim the end the following: ing or in effect during that 240-day period, will receive on account of that claim, cash ‘‘(i) A notice that does not comply with plus 30 days; payments, in the same manner and over the subsections (d) and (e) shall not be effective ‘‘(II) the lesser of— same period, as prescribed in subparagraph unless the debtor demonstrates by clear and ‘‘(aa) any time during which an install- (C).’’. convincing evidence that— ment agreement with respect to that tax was SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS ‘‘(1) timely notice was given in a manner pending or in effect during that 240-day pe- PROHIBITED. reasonably calculated to satisfy the require- riod, plus 30 days; or Section 545(2) of title 11, United States ments of this section; and ‘‘(bb) 1 year; and Code, is amended by striking the semicolon ‘‘(2) either— ‘‘(III) any time during which a stay of pro- at the end and inserting ‘‘, except in any ‘‘(A) the notice was timely sent to the ad- ceedings against collections was in effect in case in which a purchaser is a purchaser de- dress provided in the register maintained by a prior case under this title during that 240- scribed in section 6323 of the Internal Reve- the clerk of the district in which the case day period; plus 6 months.’’. nue Code of 1986, or in any other similar pro- vision of State or local law;’’. was pending for such purposes; or SEC. 706. PRIORITY PROPERTY TAXES INCURRED. ‘‘(B) no address was provided in such list Section 507(a)(9)(B) of title 11, United SEC. 712. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS. for the governmental unit and that an officer States Code, as redesignated by section 221 of of the governmental unit who is responsible (a) PAYMENT OF TAXES REQUIRED.—Section this Act, is amended by striking ‘‘assessed’’ 960 of title 28, United States Code, is for the matter or claim had actual knowl- and inserting ‘‘incurred’’. amended— edge of the case in sufficient time to act.’’. SEC. 707. CHAPTER 13 DISCHARGE OF FRAUDU- (1) by inserting ‘‘(a)’’ before ‘‘Any’’; and SEC. 703. NOTICE OF REQUEST FOR A DETER- LENT AND OTHER TAXES. (2) by adding at the end the following: MINATION OF TAXES. Section 1328(a)(2) of title 11, United States ‘‘(b) A tax under subsection (a) shall be The second sentence of section 505(b) of Code, as amended by section 228 of this Act, paid when due in the conduct of business title 11, United States Code, is amended by is amended by inserting ‘‘(1),’’ after ‘‘para- unless— striking ‘‘Unless’’ and inserting ‘‘If the re- graph’’. ‘‘(1) the tax is a property tax secured by a quest is made substantially in the manner SEC. 708. CHAPTER 11 DISCHARGE OF FRAUDU- lien against property that is abandoned designated by the governmental unit and un- LENT TAXES. within a reasonable period of time after the less’’. Section 1141(d) of title 11, United States lien attaches, by the trustee of a bankruptcy SEC. 704. RATE OF INTEREST ON TAX CLAIMS. Code, is amended by adding at the end the estate, under section 554 of title 11; or (a) IN GENERAL.—Subchapter I of chapter 5 following: ‘‘(2) payment of the tax is excused under a of title 11, United States Code, is amended by ‘‘(5) Notwithstanding paragraph (1), the specific provision of title 11. adding at the end the following: confirmation of a plan does not discharge a ‘‘(c) In a case pending under chapter 7 of debtor that is a corporation from any debt title 11, payment of a tax may be deferred ‘‘§ 511. Rate of interest on tax claims for a tax or customs duty with respect to until final distribution is made under section ‘‘If any provision of this title requires the which the debtor— 726 of title 11, if— payment of interest on a tax claim or the ‘‘(A) made a fraudulent return; or ‘‘(1) the tax was not incurred by a trustee payment of interest to enable a creditor to ‘‘(B) willfully attempted in any manner to duly appointed under chapter 7 of title 11; or receive the present value of the allowed evade or defeat that tax or duty.’’. ‘‘(2) before the due date of the tax, the amount of a tax claim, the rate of interest SEC. 709. STAY OF TAX PROCEEDINGS. court makes a finding of probable insuffi- shall be as follows: (a) SECTION 362 STAY LIMITED TO ciency of funds of the estate to pay in full ‘‘(1) In the case of secured tax claims, unse- PREPETITION TAXES.—Section 362(a)(8) of the administrative expenses allowed under cured ad valorem tax claims, other unse- title 11, United States Code, is amended by section 503(b) of title 11 that have the same cured tax claims in which interest is re- inserting before the semicolon at the end the priority in distribution under section 726(b) quired to be paid under section 726(a)(5), and following: ‘‘, with respect to a tax liability of title 11 as the priority of that tax.’’. administrative tax claims paid under section for a taxable period ending before the order (b) PAYMENT OF AD VALOREM TAXES RE- 503(b)(1), the rate shall be determined under for relief under section 301, 302, or 303’’. QUIRED.—Section 503(b)(1)(B)(i) of title 11, United States Code, is amended by inserting applicable nonbankruptcy law. (b) APPEAL OF TAX COURT DECISIONS PER- ‘‘whether secured or unsecured, including ‘‘(2)(A) In the case of any tax claim other MITTED.—Section 362(b)(9) of title 11, United property taxes for which liability is in rem, than a claim described in paragraph (1), the States Code, is amended— in personam, or both,’’ before ‘‘except’’. minimum rate of interest shall be a percent- (1) in subparagraph (C), by striking ‘‘or’’ at (c) REQUEST FOR PAYMENT OF ADMINISTRA- age equal to the sum of— the end; ‘‘(i) 3; plus TIVE EXPENSE TAXES ELIMINATED.—Section (2) in subparagraph (D), by striking the pe- 503(b)(1) of title 11, United States Code, is ‘‘(ii) the Federal short-term rate rounded riod at the end and inserting ‘‘; or’’; and to the nearest full percent, determined under amended— (3) by adding at the end the following: (1) in subparagraph (B), by striking ‘‘and’’ section 1274(d) of the Internal Revenue Code ‘‘(E) the appeal of a decision by a court or of 1986. at the end; administrative tribunal which determines a (2) in subparagraph (C), by adding ‘‘and’’ at ‘‘(B) In the case of any claim for Federal tax liability of the debtor (without regard to income taxes, the minimum rate of interest the end; and whether such determination was made (3) by adding at the end the following: shall be subject to any adjustment that may prepetition or postpetition).’’. be required under section 6621(d) of the Inter- ‘‘(D) notwithstanding the requirements of SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAP- subsection (a), a governmental unit shall not nal Revenue Code of 1986. TER 11 CASES. ‘‘(C) In the case of taxes paid under a con- be required to file a request for the payment Section 1129(a)(9) of title 11, United States of a claim described in subparagraph (B) or firmed plan or reorganization under this Code, is amended— title, the minimum rate of interest shall be (C);’’. (1) in subparagraph (B), by striking ‘‘and’’ (d) PAYMENT OF TAXES AND FEES AS SE- determined as of the calendar month in at the end; and CURED CLAIMS.—Section 506 of title 11, which the plan is confirmed.’’. (2) in subparagraph (C), by striking ‘‘de- United States Code, is amended— (b) CLERICAL AMENDMENT.—The table of ferred cash payments, over a period not ex- (1) in subsection (b), by inserting ‘‘or State sections for chapter 5 of title 11, United ceeding six years after the date of assess- statute’’ after ‘‘agreement’’; and States Code, is amended by inserting after ment of such claim,’’ and all that follows (2) in subsection (c), by inserting ‘‘, includ- the item relating to section 510 the follow- through the end of the subparagraph, and in- ing the payment of all ad valorem property ing: serting ‘‘regular installment payments— taxes with respect to the property’’ before ‘‘511. Rate of interest on tax claims.’’. ‘‘(i) of a total value, as of the effective date the period at the end. SEC. 705. TOLLING OF PRIORITY OF TAX CLAIM of the claim, equal to the allowed amount of SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS. TIME PERIODS. such claim in cash, but in no case with a bal- Section 726(a)(1) of title 11, United States Section 507(a)(8)(A) of title 11, United loon payment; and Code, is amended by striking ‘‘before the States Code, as redesignated by section 221 of ‘‘(ii) beginning not later than the effective date on which the trustee commences dis- this Act, is amended— date of the plan and ending on the earlier tribution under this section;’’ and inserting (1) in clause (i), by inserting before the of— the following: ‘‘on or before the earlier of— semicolon at the end, the following: ‘‘, plus ‘‘(I) the date that is 5 years after the date ‘‘(A) the date that is 10 days after the mail- any time during which the stay of proceed- of the filing of the petition; or ing to creditors of the summary of the trust- ings was in effect in a prior case under this ‘‘(II) the last date payments are to be made ee’s final report; or title, plus 6 months’’; and under the plan to unsecured creditors; and’’; ‘‘(B) the date on which the trustee com- (2) by striking clause (ii) and inserting the and mences final distribution under this sec- following: (3) by adding at the end the following: tion;’’. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2757 SEC. 714. INCOME TAX RETURNS PREPARED BY entitled, and for which request has been (2) by striking ‘‘a hypothetical reasonable TAX AUTHORITIES. timely made, according to applicable non- investor typical of holders of claims or inter- Section 523(a) of title 11, United States bankruptcy law. ests’’ and inserting ‘‘such a hypothetical in- Code, is amended— ‘‘(2) Upon notice and hearing, and order en- vestor’’. (1) in paragraph (1)(B)— tered before the tolling of any applicable fil- SEC. 718. SETOFF OF TAX REFUNDS. (A) by inserting ‘‘or equivalent report or ing period determined under this subsection, Section 362(b) of title 11, United States notice,’’ after ‘‘a return,’’; if the debtor demonstrates by clear and con- Code, as amended by section 402 of this Act, (B) in clause (i)— vincing evidence that the failure to file a re- is amended— (i) by inserting ‘‘or given’’ after ‘‘filed’’; turn as required under this subsection is at- (1) in paragraph (25), by striking ‘‘or’’ at and tributable to circumstances beyond the con- the end; (ii) by striking ‘‘or’’ at the end; and trol of the debtor, the court may extend the (2) in paragraph (26), by striking the period (C) in clause (ii)— filing period established by the trustee under at the end and inserting ‘‘; or’’; and (i) by inserting ‘‘or given’’ after ‘‘filed’’; this subsection for— (3) by inserting after paragraph (26) the fol- and ‘‘(A) a period of not more than 30 days for lowing: (ii) by inserting ‘‘, report, or notice’’ after returns described in paragraph (1); and ‘‘(27) under subsection (a), of the setoff of ‘‘return’’; and ‘‘(B) a period not to extend after the appli- an income tax refund, by a governmental (2) by adding at the end the following flush cable extended due date for a return de- unit, with respect to a taxable period that sentences: scribed in paragraph (2). ended before the order for relief against an ‘‘For purposes of this subsection, the term ‘‘(c) For purposes of this section, the term income tax liability for a taxable period that ‘return’ means a return that satisfies the re- ‘return’ includes a return prepared pursuant also ended before the order for relief, quirements of applicable nonbankruptcy law to section 6020 (a) or (b) of the Internal Reve- unless— (including applicable filing requirements). nue Code of 1986, or a similar State or local ‘‘(A) before that setoff, an action to deter- Such term includes a return prepared pursu- law, or written stipulation to a judgment en- mine the amount or legality of that tax li- ant to section 6020(a) of the Internal Revenue tered by a nonbankruptcy tribunal.’’. ability under section 505(a) was commenced; Code of 1986, or similar State or local law, or (2) CONFORMING AMENDMENT.—The table of or a written stipulation to a judgment entered sections for chapter 13 of title 11, United ‘‘(B) in any case in which the setoff of an by a nonbankruptcy tribunal, but does not States Code, is amended by inserting after income tax refund is not permitted because include a return made pursuant to section the item relating to section 1308 the follow- of a pending action to determine the amount 6020(b) of the Internal Revenue Code of 1986, ing: or legality of a tax liability, in which case or a similar State or local law.’’. ‘‘1309. Filing of prepetition tax returns.’’. the governmental unit may hold the refund SEC. 715. DISCHARGE OF THE ESTATE’S LIABIL- (c) DISMISSAL OR CONVERSION ON FAILURE pending the resolution of the action.’’. ITY FOR UNPAID TAXES. TO COMPLY.—Section 1307 of title 11, United TITLE VIII—ANCILLARY AND OTHER The second sentence of section 505(b) of States Code, is amended— CROSS-BORDER CASES title 11, United States Code, as amended by (1) by redesignating subsections (e) and (f) section 703 of this Act, is amended by insert- SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO as subsections (f) and (g), respectively; and TITLE 11, UNITED STATES CODE. ing ‘‘the estate,’’ after ‘‘misrepresentation,’’. (2) by inserting after subsection (d), the (a) IN GENERAL.—Title 11, United States SEC. 716. REQUIREMENT TO FILE TAX RETURNS following: TO CONFIRM CHAPTER 13 PLANS. Code, is amended by inserting after chapter ‘‘(e) Upon the failure of the debtor to file a 13 the following: (a) FILING OF PREPETITION TAX RETURNS tax return under section 1309, on request of a REQUIRED FOR PLAN CONFIRMATION.—Section party in interest or the United States trust- ‘‘CHAPTER 15—ANCILLARY AND OTHER 1325(a) of title 11, United States Code, as ee and after notice and a hearing, the court CROSS-BORDER CASES amended by section 212 of this Act, is shall dismiss the case.’’. ‘‘Sec. amended— (d) TIMELY FILED CLAIMS.—Section 502(b)(9) ‘‘1501. Purpose and scope of application. (1) in paragraph (6), by striking ‘‘and’’ at of title 11, United States Code, is amended by ‘‘SUBCHAPTER I—GENERAL PROVISIONS the end; inserting before the period at the end the fol- ‘‘1502. Definitions. (2) in paragraph (7), by striking the period lowing ‘‘, and except that in a case under ‘‘1503. International obligations of the at the end and inserting ‘‘; and’’; and chapter 13 of this title, a claim of a govern- United States. (3) by adding at the end the following: mental unit for a tax with respect to a re- ‘‘1504. Commencement of ancillary case. ‘‘(8) if the debtor has filed all applicable turn filed under section 1309 shall be timely ‘‘1505. Authorization to act in a foreign Federal, State, and local tax returns as re- if the claim is filed on or before the date that country. quired by section 1309.’’. is 60 days after that return was filed in ac- ‘‘1506. Public policy exception. (b) ADDITIONAL TIME PERMITTED FOR FILING cordance with applicable requirements’’. ‘‘1507. Additional assistance. TAX RETURNS.— (e) RULES FOR OBJECTIONS TO CLAIMS AND ‘‘1508. Interpretation. (1) IN GENERAL.—Chapter 13 of title 11, TO CONFIRMATION.—It is the sense of Con- United States Code, as amended by section gress that the Advisory Committee on Bank- ‘‘SUBCHAPTER II—ACCESS OF FOREIGN 309(c) of this Act, is amended by adding at ruptcy Rules of the Judicial Conference REPRESENTATIVES AND CREDITORS the end the following: should, within a reasonable period of time TO THE COURT ‘‘§ 1309. Filing of prepetition tax returns after the date of enactment of this Act, pro- ‘‘1509. Right of direct access. ‘‘(a) Not later than the day before the day pose for adoption amended Federal Rules of ‘‘1510. Limited jurisdiction. on which the first meeting of the creditors is Bankruptcy Procedure which provide that— ‘‘1511. Commencement of case under section convened under section 341(a), the debtor (1) notwithstanding the provisions of Rule 301 or 303. shall file with appropriate tax authorities all 3015(f), in cases under chapter 13 of title 11, ‘‘1512. Participation of a foreign representa- tax returns for all taxable periods ending United States Code, a governmental unit tive in a case under this title. during the 3-year period ending on the date may object to the confirmation of a plan on ‘‘1513. Access of foreign creditors to a case of the filing of the petition. or before the date that is 60 days after the under this title. ‘‘(b)(1) Subject to paragraph (2), if the tax date on which the debtor files all tax returns ‘‘1514. Notification to foreign creditors con- returns required by subsection (a) have not required under sections 1309 and 1325(a)(7) of cerning a case under this title. been filed by the date on which the first title 11, United States Code; and ‘‘SUBCHAPTER III—RECOGNITION OF A meeting of creditors is convened under sec- (2) in addition to the provisions of Rule FOREIGN PROCEEDING AND RELIEF tion 341(a), the trustee may continue that 3007, in a case under chapter 13 of title 11, ‘‘1515. Application for recognition of a for- meeting for a reasonable period of time to United States Code, no objection to a tax eign proceeding. allow the debtor an additional period of time with respect to which a return is required to ‘‘1516. Presumptions concerning recognition. to file any unfiled returns, but such addi- be filed under section 1309 of title 11, United ‘‘1517. Order recognizing a foreign proceed- tional period of time shall not extend States Code, shall be filed until such return ing. beyond— has been filed as required. ‘‘1518. Subsequent information. ‘‘(A) for any return that is past due as of SEC. 717. STANDARDS FOR TAX DISCLOSURE. ‘‘1519. Relief that may be granted upon peti- the date of the filing of the petition, the date Section 1125(a)(1) of title 11, United States tion for recognition of a foreign that is 120 days after the date of that first Code, is amended— proceeding. meeting; or (1) by inserting ‘‘including a full discussion ‘‘1520. Effects of recognition of a foreign ‘‘(B) for any return that is not past due as of the potential material, Federal, State, and main proceeding. of the date of the filing of the petition, the local tax consequences of the plan to the ‘‘1521. Relief that may be granted upon rec- later of— debtor, any successor to the debtor, and a ognition of a foreign proceed- ‘‘(i) the date that is 120 days after the date hypothetical investor domiciled in the State ing. of that first meeting; or in which the debtor resides or has its prin- ‘‘1522. Protection of creditors and other in- ‘‘(ii) the date on which the return is due cipal place of business typical of the holders terested persons. under the last automatic extension of time of claims or interests in the case,’’ after ‘‘1523. Actions to avoid acts detrimental to for filing that return to which the debtor is ‘‘records’’; and creditors. S2758 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘1524. Intervention by a foreign representa- ‘‘(1) ‘debtor’ means an entity that is the ‘‘§ 1508. Interpretation tive. subject of a foreign proceeding; ‘‘In interpreting this chapter, the court ‘‘SUBCHAPTER IV—COOPERATION WITH ‘‘(2) ‘establishment’ means any place of op- shall consider its international origin, and FOREIGN COURTS AND FOREIGN REP- erations where the debtor carries out a non- the need to promote an application of this RESENTATIVES transitory economic activity; chapter that is consistent with the applica- ‘‘1525. Cooperation and direct communica- ‘‘(3) ‘foreign court’ means a judicial or tion of similar statutes adopted by foreign tion between the court and for- other authority competent to control or su- jurisdictions. eign courts or foreign rep- pervise a foreign proceeding; ‘‘SUBCHAPTER II—ACCESS OF FOREIGN resentatives. ‘‘(4) ‘foreign main proceeding’ means a for- REPRESENTATIVES AND CREDITORS ‘‘1526. Cooperation and direct communica- eign proceeding taking place in the country TO THE COURT where the debtor has the center of its main tion between the trustee and ‘‘§ 1509. Right of direct access foreign courts or foreign rep- interests; ‘‘(5) ‘foreign nonmain proceeding’ means a ‘‘(a) A foreign representative is entitled to resentatives. commence a case under section 1504 by filing ‘‘1527. Forms of cooperation. foreign proceeding, other than a foreign a petition for recognition under section 1515, ‘‘SUBCHAPTER V—CONCURRENT main proceeding, taking place in a country where the debtor has an establishment; and upon recognition, to apply directly to PROCEEDINGS other Federal and State courts for appro- ‘‘1528. Commencement of a case under this ‘‘(6) ‘trustee’ includes a trustee, a debtor in possession in a case under any chapter of priate relief in those courts. title after recognition of a for- ‘‘(b) Upon recognition, and subject to sec- this title, or a debtor under chapter 9 of this eign main proceeding. tion 1510, a foreign representative shall have title; and ‘‘1529. Coordination of a case under this title the capacity to sue and be sued, and shall be ‘‘(7) ‘within the territorial jurisdiction of and a foreign proceeding. subject to the laws of the United States of the United States’ when used with reference ‘‘1530. Coordination of more than 1 foreign general applicability. proceeding. to property of a debtor refers to tangible ‘‘(c) Subject to section 1510, a foreign rep- ‘‘1531. Presumption of insolvency based on property located within the territory of the resentative is subject to laws of general ap- recognition of a foreign main United States and intangible property plication. proceeding. deemed under applicable nonbankruptcy law ‘‘(d) Recognition under this chapter is pre- ‘‘1532. Rule of payment in concurrent pro- to be located within that territory, including requisite to the granting of comity or co- ceedings. any property subject to attachment or gar- operation to a foreign representative in any ‘‘§ 1501. Purpose and scope of application nishment that may properly be seized or gar- Federal or State court in the United States. ‘‘(a) The purpose of this chapter is to in- nished by an action in a Federal or State Any request for comity or cooperation by a corporate the Model Law on Cross-Border In- court in the United States. foreign representative in any court shall be solvency so as to provide effective mecha- ‘‘§ 1503. International obligations of the accompanied by a sworn statement setting nisms for dealing with cases of cross-border United States forth whether recognition under section 1515 insolvency with the objectives of— ‘‘To the extent that this chapter conflicts has been sought and the status of any such ‘‘(1) cooperation between— with an obligation of the United States aris- petition. ‘‘(A) United States courts, United States ing out of any treaty or other form of agree- ‘‘(e) Upon denial of recognition under this Trustees, trustees, examiners, debtors, and ment to which it is a party with 1 or more chapter, the court may issue appropriate or- debtors in possession; and other countries, the requirements of the ders necessary to prevent an attempt to ob- ‘‘(B) the courts and other competent au- treaty or agreement prevail. tain comity or cooperation from courts in thorities of foreign countries involved in the United States without such recognition. ‘‘§ 1504. Commencement of ancillary case cross-border insolvency cases; ‘‘§ 1510. Limited jurisdiction ‘‘(2) greater legal certainty for trade and ‘‘A case under this chapter is commenced ‘‘The sole fact that a foreign representa- investment; by the filing of a petition for recognition of tive files a petition under section 1515 does ‘‘(3) fair and efficient administration of a foreign proceeding under section 1515. not subject the foreign representative to the cross-border insolvencies that protects the ‘‘§ 1505. Authorization to act in a foreign jurisdiction of any court in the United interests of all creditors, and other inter- country States for any other purpose. ested entities, including the debtor; ‘‘A trustee or another entity, including an ‘‘(4) protection and maximization of the ‘‘§ 1511. Commencement of case under section examiner, may be authorized by the court to 301 or 303 value of the debtor’s assets; and act in a foreign country on behalf of an es- ‘‘(a) Upon recognition, a foreign represent- ‘‘(5) facilitation of the rescue of financially tate created under section 541. An entity au- ative may commence— troubled businesses, thereby protecting in- thorized to act under this section may act in ‘‘(1) an involuntary case under section 303; vestment and preserving employment. any way permitted by the applicable foreign or ‘‘(b) This chapter applies if— law. ‘‘(1) assistance is sought in the United ‘‘(2) a voluntary case under section 301 or States by a foreign court or a foreign rep- ‘‘§ 1506. Public policy exception 302, if the foreign proceeding is a foreign resentative in connection with a foreign pro- ‘‘Nothing in this chapter prevents the main proceeding. ceeding; court from refusing to take an action gov- ‘‘(b) The petition commencing a case under ‘‘(2) assistance is sought in a foreign coun- erned by this chapter if the action would be subsection (a) must be accompanied by a try in connection with a case under this manifestly contrary to the public policy of statement describing the petition for rec- title; the United States. ognition and its current status. The court ‘‘(3) a foreign proceeding and a case under ‘‘§ 1507. Additional assistance where the petition for recognition has been filed must be advised of the foreign rep- this title with respect to the same debtor are ‘‘(a) Subject to the specific limitations resentative’s intent to commence a case taking place concurrently; or under other provisions of this chapter, the under subsection (a) prior to such com- ‘‘(4) creditors or other interested persons court, upon recognition of a foreign proceed- mencement. in a foreign country have an interest in re- ing, may provide additional assistance to a questing the commencement of, or partici- foreign representative under this title or ‘‘§ 1512. Participation of a foreign representa- pating in, a case or proceeding under this under other laws of the United States. tive in a case under this title title. ‘‘(b) In determining whether to provide ad- ‘‘Upon recognition of a foreign proceeding, ‘‘(c) This chapter does not apply to— ditional assistance under this title or under the foreign representative in that proceeding ‘‘(1) a proceeding concerning an entity other laws of the United States, the court is entitled to participate as a party in inter- identified by exclusion in subsection 109(b); shall consider whether such additional as- est in a case regarding the debtor under this ‘‘(2) an individual, or to an individual and sistance, consistent with the principles of title. such individual’s spouse, who have debts comity, will reasonably assure— ‘‘§ 1513. Access of foreign creditors to a case within the limits specified in section 109(e) ‘‘(1) just treatment of all holders of claims under this title and who are citizens of the United States or against or interests in the debtor’s property; ‘‘(a) Foreign creditors have the same rights aliens lawfully admitted for permanent resi- ‘‘(2) protection of claim holders in the regarding the commencement of, and partici- dence in the United States; or United States against prejudice and incon- pation in, a case under this title as domestic ‘‘(3) an entity subject to a proceeding venience in the processing of claims in such creditors. under the Securities Investor Protection Act foreign proceeding; ‘‘(b)(1) Subsection (a) does not change or of 1970 (84 Stat. 1636 et seq.), a stockbroker ‘‘(3) prevention of preferential or fraudu- codify law in effect on the date of enactment subject to subchapter III of chapter 7 of this lent dispositions of property of the debtor; of this chapter as to the priority of claims title, or a commodity broker subject to sub- ‘‘(4) distribution of proceeds of the debtor’s under section 507 or 726, except that the chapter IV of chapter 7 of this title. property substantially in accordance with claim of a foreign creditor under section 507 ‘‘SUBCHAPTER I—GENERAL PROVISIONS the order prescribed by this title; and or 726 shall not be given a lower priority ‘‘§ 1502. Definitions ‘‘(5) if appropriate, the provision of an op- than that of general unsecured claims with- ‘‘For the purposes of this chapter, the portunity for a fresh start for the individual out priority solely because the holder of such term— that such foreign proceeding concerns. claim is a foreign creditor. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2759 ‘‘(2)(A) Subsection (a) and paragraph (1) do section 101, the court is entitled to so pre- tion terminates when the petition for rec- not change or codify law in effect on the date sume. ognition is decided upon. of enactment of this chapter as to the allow- ‘‘(b) The court is entitled to presume that ‘‘(c) It is a ground for denial of relief under ability of foreign revenue claims or other documents submitted in support of the peti- this section that such relief would interfere foreign public law claims in a proceeding tion for recognition are authentic, whether with the administration of a foreign main under this title. or not they have been legalized. proceeding. ‘‘(B) Allowance and priority as to a foreign ‘‘(c) In the absence of evidence to the con- ‘‘(d) The court may not enjoin a police or tax claim or other foreign public law claim trary, the debtor’s registered office, or habit- regulatory act of a governmental unit, in- shall be governed by any applicable tax trea- ual residence in the case of an individual, is cluding a criminal action or proceeding, ty of the United States, under the conditions presumed to be the center of the debtor’s under this section. and circumstances specified therein. main interests. ‘‘(e) The standards, procedures, and limita- tions applicable to an injunction shall apply ‘‘§ 1514. Notification to foreign creditors con- ‘‘§ 1517. Order recognizing a foreign proceed- to relief under this section. cerning a case under this title ing ‘‘§ 1520. Effects of recognition of a foreign ‘‘(a) Whenever in a case under this title no- ‘‘(a) Subject to section 1506, after notice main proceeding tice is to be given to creditors generally or and a hearing an order recognizing a foreign ‘‘(a) Upon recognition of a foreign proceed- to any class or category of creditors, such proceeding shall be entered if— ing that is a foreign main proceeding— notice shall also be given to the known ‘‘(1) the foreign proceeding is a foreign ‘‘(1) section 362 applies with respect to the creditors generally, or to creditors in the no- main proceeding or foreign nonmain proceed- debtor and that property of the debtor that tified class or category, that do not have ad- ing within the meaning of section 1502; is within the territorial jurisdiction of the dresses in the United States. The court may ‘‘(2) the foreign representative applying for United States; order that appropriate steps be taken with a recognition is a person or body as defined in ‘‘(2) a transfer, an encumbrance, or any view to notifying any creditor whose address section 101; and other disposition of an interest of the debtor is not yet known. ‘‘(3) the petition meets the requirements of in property within the territorial jurisdic- ‘‘(b) Such notification to creditors with section 1515. tion of the United States is restrained as and foreign addresses described in subsection (a) ‘‘(b) The foreign proceeding shall be to the extent that is provided for property of shall be given individually, unless the court recognized— an estate under sections 363, 549, and 552; and considers that, under the circumstances, ‘‘(1) as a foreign main proceeding if it is ‘‘(3) unless the court orders otherwise, the some other form of notification would be taking place in the country where the debtor foreign representative may operate the debt- more appropriate. No letters rogatory or has the center of its main interests; or or’s business and may exercise the powers of other similar formality is required. ‘‘(2) as a foreign nonmain proceeding if the a trustee under section 549, subject to sec- ‘‘(c) When a notification of commencement debtor has an establishment within the tions 363 and 552. of a case is to be given to foreign creditors, meaning of section 1502 in the foreign coun- ‘‘(b) The scope, and the modification or the notification shall— try where the proceeding is pending. termination, of the stay and restraints re- ‘‘(1) indicate the time period for filing ‘‘(c) A petition for recognition of a foreign ferred to in subsection (a) are subject to the proofs of claim and specify the place for proceeding shall be decided upon at the earli- exceptions and limitations provided in sub- their filing; est possible time. Entry of an order recogniz- sections (b), (c), and (d) of section 362, sub- ‘‘(2) indicate whether secured creditors ing a foreign proceeding shall constitute rec- sections (b) and (c) of section 363, and sec- need to file their proofs of claim; and ognition under this chapter. tions 552, 555 through 557, 559, and 560. ‘‘(3) contain any other information re- ‘‘(d) The provisions of this subchapter do ‘‘(c) Subsection (a) does not affect the quired to be included in such a notification not prevent modification or termination of right to commence individual actions or pro- to creditors pursuant to this title and the or- recognition if it is shown that the grounds ceedings in a foreign country to the extent ders of the court. for granting it were fully or partially lack- necessary to preserve a claim against the ‘‘(d) Any rule of procedure or order of the ing or have ceased to exist, but in consider- debtor. court as to notice or the filing of a claim ing such action the court shall give due ‘‘(d) Subsection (a) does not affect the shall provide such additional time to credi- weight to possible prejudice to parties that right of a foreign representative or an entity tors with foreign addresses as is reasonable have relied upon the granting of recognition. to file a petition commencing a case under under the circumstances. The case under this chapter may be closed in this title or the right of any party to file ‘‘SUBCHAPTER III—RECOGNITION OF A the manner prescribed for a case under sec- claims or take other proper actions in such FOREIGN PROCEEDING AND RELIEF tion 350. a case. ‘‘§ 1521. Relief that may be granted upon rec- ‘‘§ 1515. Application for recognition of a for- ‘‘§ 1518. Subsequent information ognition of a foreign proceeding eign proceeding ‘‘After the the petition for recognition of ‘‘(a) Upon recognition of a foreign proceed- ‘‘(a) A foreign representative applies to the the foreign proceeding is filed, the foreign representative shall file with the court ing, whether main or nonmain, where nec- court for recognition of the foreign proceed- essary to effectuate the purpose of this chap- promptly a notice of change of status ing in which the foreign representative has ter and to protect the assets of the debtor or concerning— been appointed by filing a petition for rec- the interests of the creditors, the court may, ‘‘(1) any substantial change in the status of ognition. at the request of the foreign representative, the foreign proceeding or the status of the ‘‘(b) A petition for recognition shall be ac- grant any appropriate relief, including— foreign representative’s appointment; and companied by— ‘‘(1) staying the commencement or con- ‘‘(2) any other foreign proceeding regarding ‘‘(1) a certified copy of the decision com- tinuation of individual actions or individual the debtor that becomes known to the for- mencing the foreign proceeding and appoint- proceedings concerning the debtor’s assets, eign representative. ing the foreign representative; rights, obligations or liabilities to the extent ‘‘(2) a certificate from the foreign court af- ‘‘§ 1519. Relief that may be granted upon peti- the actions or proceedings have not been firming the existence of the foreign proceed- tion for recognition of a foreign proceeding stayed under section 1520(a); ing and of the appointment of the foreign ‘‘(a) Beginning on the date on which a peti- ‘‘(2) staying execution against the debtor’s representative; or tion for recognition is filed and ending on assets to the extent the execution has not ‘‘(3) in the absence of evidence referred to the date on which the petition is decided been stayed under section 1520(a); in paragraphs (1) and (2), any other evidence upon, the court may, at the request of the ‘‘(3) suspending the right to transfer, en- acceptable to the court of the existence of foreign representative, where relief is ur- cumber or otherwise dispose of any assets of the foreign proceeding and of the appoint- gently needed to protect the assets of the the debtor to the extent that right has not ment of the foreign representative. debtor or the interests of the creditors, grant been suspended under section 1520(a); ‘‘(c) A petition for recognition shall also be relief of a provisional nature, including— ‘‘(4) providing for the examination of wit- accompanied by a statement identifying all ‘‘(1) staying execution against the debtor’s nesses, the taking of evidence or the delivery foreign proceedings with respect to the debt- assets; of information concerning the debtor’s as- or that are known to the foreign representa- ‘‘(2) entrusting the administration or real- sets, affairs, rights, obligations or liabilities; tive. ization of all or part of the debtor’s assets lo- ‘‘(5) entrusting the administration or real- ‘‘(d) The documents referred to in para- cated in the United States to the foreign rep- ization of all or part of the debtor’s assets graphs (1) and (2) of subsection (b) must be resentative or another person authorized by within the territorial jurisdiction of the translated into English. The court may re- the court, including an examiner, in order to United States to the foreign representative quire a translation into English of additional protect and preserve the value of assets that, or another person, including an examiner, documents. by their nature or because of other cir- authorized by the court; ‘‘§ 1516. Presumptions concerning recognition cumstances, are perishable, susceptible to ‘‘(6) extending relief granted under section ‘‘(a) If the decision or certificate referred devaluation, or otherwise in jeopardy; and 1519(a); and to in section 1515(b) indicates that the for- ‘‘(3) any relief referred to in paragraph (3), ‘‘(7) granting any additional relief that eign proceeding is a foreign proceeding as de- (4), or (7) of section 1521(a). may be available to a trustee, except for re- fined in section 101 and that the person or ‘‘(b) Unless extended under section lief available under sections 522, 544, 545, 547, body is a foreign representative as defined in 1521(a)(6), the relief granted under this sec- 548, 550, and 724(a). S2760 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘(b) Upon recognition of a foreign proceed- of parties in interest to notice and participa- nonmain proceeding, the court must be satis- ing, whether main or nonmain, the court tion. fied that the relief relates to assets that, may, at the request of the foreign represent- ‘‘§ 1526. Cooperation and direct communica- under the law of the United States, should be ative, entrust the distribution of all or part tion between the trustee and foreign courts administered in the foreign nonmain pro- of the debtor’s assets located in the United or foreign representatives ceeding or concerns information required in States to the foreign representative or an- that proceeding. ‘‘(a) Consistent with section 1501, the trust- other person, including an examiner, author- ‘‘(4) In achieving cooperation and coordina- ee or other person, including an examiner, ized by the court, if the court is satisfied tion under sections 1528 and 1529, the court authorized by the court, shall, subject to the that the interests of creditors in the United may grant any of the relief authorized under supervision of the court, cooperate to the States are sufficiently protected. section 305. maximum extent possible with foreign ‘‘(c) In granting relief under this section to courts or foreign representatives. ‘‘§ 1530. Coordination of more than 1 foreign a representative of a foreign nonmain pro- ‘‘(b) The trustee or other person, including proceeding ceeding, the court must be satisfied that the an examiner, authorized by the court is enti- ‘‘In matters referred to in section 1501, relief relates to assets that, under the law of tled, subject to the supervision of the court, with respect to more than 1 foreign proceed- the United States, should be administered in to communicate directly with foreign courts ing regarding the debtor, the court shall the foreign nonmain proceeding or concerns or foreign representatives. seek cooperation and coordination under sec- information required in that proceeding. ‘‘§ 1527. Forms of cooperation tions 1525, 1526, and 1527, and the following ‘‘(d) The court may not enjoin a police or shall apply: regulatory act of a governmental unit, in- ‘‘Cooperation referred to in sections 1525 ‘‘(1) Any relief granted under section 1519 cluding a criminal action or proceeding, and 1526 may be implemented by any appro- or 1521 to a representative of a foreign under this section. priate means, including— nonmain proceeding after recognition of a ‘‘(e) The standards, procedures, and limita- ‘‘(1) appointment of a person or body, in- foreign main proceeding must be consistent tions applicable to an injunction shall apply cluding an examiner, to act at the direction with the foreign main proceeding. to relief under paragraphs (1), (2), (3), and (6) of the court; ‘‘(2) If a foreign main proceeding is recog- of subsection (a). ‘‘(2) communication of information by any nized after recognition, or after the filing of ‘‘§ 1522. Protection of creditors and other in- means considered appropriate by the court; a petition for recognition, of a foreign terested persons ‘‘(3) coordination of the administration and nonmain proceeding, any relief in effect supervision of the debtor’s assets and affairs; ‘‘(a) The court may grant relief under sec- under section 1519 or 1521 shall be reviewed ‘‘(4) approval or implementation of agree- tion 1519 or 1521, or may modify or terminate by the court and shall be modified or termi- ments concerning the coordination of pro- relief under subsection (c), only if the inter- nated if inconsistent with the foreign main ceedings; and ests of the creditors and other interested en- proceeding. ‘‘(5) coordination of concurrent proceed- tities, including the debtor, are sufficiently ‘‘(3) If, after recognition of a foreign ings regarding the same debtor. protected. nonmain proceeding, another foreign ‘‘(b) The court may subject relief granted ‘‘SUBCHAPTER V—CONCURRENT nonmain proceeding is recognized, the court under section 1519 or 1521, or the operation of PROCEEDINGS shall grant, modify, or terminate relief for the debtor’s business under section 1520(a)(2), ‘‘§ 1528. Commencement of a case under this the purpose of facilitating coordination of to conditions that the court considers to be title after recognition of a foreign main the proceedings. appropriate, including the giving of security proceeding ‘‘§ 1531. Presumption of insolvency based on or the filing of a bond. ‘‘After recognition of a foreign main pro- recognition of a foreign main proceeding ‘‘(c) The court may, at the request of the ceeding, a case under another chapter of this ‘‘In the absence of evidence to the con- foreign representative or an entity affected title may be commenced only if the debtor trary, recognition of a foreign main proceed- by relief granted under section 1519 or 1521, has assets in the United States. The effects ing is for the purpose of commencing a pro- or at its own motion, modify or terminate of such case shall be restricted to the assets ceeding under section 303, proof that the the relief referred to in subsection (b). of the debtor that are within the territorial debtor is generally not paying its debts as ‘‘(d) Section 1104(d) shall apply to the ap- jurisdiction of the United States and, to the such debts become due. pointment of an examiner under this chap- extent necessary to implement cooperation ‘‘§ 1532. Rule of payment in concurrent pro- ter. Any examiner shall comply with the and coordination under sections 1525, 1526, ceedings qualification requirements imposed on a and 1527, to other assets of the debtor that trustee by section 322. ‘‘Without prejudice to secured claims or are within the jurisdiction of the court under rights in rem, a creditor who has received ‘‘§ 1523. Actions to avoid acts detrimental to sections 541(a), and 1334(e) of title 28, to the payment with respect to its claim in a for- creditors extent that such other assets are not subject eign proceeding pursuant to a law relating to ‘‘(a) Upon recognition of a foreign proceed- to the jurisdiction and control of a foreign insolvency may not receive a payment for ing, the foreign representative has standing proceeding that has been recognized under the same claim in a case under any other in a case concerning the debtor pending this chapter. chapter of this title regarding the debtor, so under another chapter of this title to initi- ‘‘§ 1529. Coordination of a case under this long as the payment to other creditors of the ate actions under sections 522, 544, 545, 547, title and a foreign proceeding same class is proportionately less than the 548, 550, and 724(a). ‘‘In any case in which a foreign proceeding payment the creditor has already received.’’. ‘‘(b) In any case in which the foreign pro- and a case under another chapter of this title (b) CLERICAL AMENDMENT.—The table of ceeding is a foreign nonmain proceeding, the are taking place concurrently regarding the chapters for title 11, United States Code, is court must be satisfied that an action under same debtor, the court shall seek coopera- amended by inserting after the item relating subsection (a) relates to assets that, under tion and coordination under sections 1525, to chapter 13 the following: United States law, should be administered in 1526, and 1527, and the following shall apply: ‘‘15. Ancillary and Other Cross-Border the foreign nonmain proceeding. ‘‘(1) If the case in the United States is tak- Cases ...... 1501’’. ‘‘§ 1524. Intervention by a foreign representa- ing place at the time the petition for rec- SEC. 802. AMENDMENTS TO OTHER CHAPTERS IN tive ognition of the foreign proceeding is filed— TITLE 11, UNITED STATES CODE. ‘‘Upon recognition of a foreign proceeding, ‘‘(A) any relief granted under sections 1519 (a) APPLICABILITY OF CHAPTERS.—Section the foreign representative may intervene in or 1521 must be consistent with the relief 103 of title 11, United States Code, is any proceedings in a State or Federal court granted in the case in the United States; and amended— in the United States in which the debtor is a ‘‘(B) even if the foreign proceeding is rec- (1) in subsection (a), by inserting before party. ognized as a foreign main proceeding, section the period the following: ‘‘, and this chapter, 1520 does not apply. ‘‘SUBCHAPTER IV—COOPERATION WITH sections 307, 304, 555 through 557, 559, and 560 ‘‘(2) If a case in the United States under FOREIGN COURTS AND FOREIGN REP- apply in a case under chapter 15’’; and this title commences after recognition, or RESENTATIVES (2) by adding at the end the following: after the filing of the petition for recogni- ‘‘(j) Chapter 15 applies only in a case under ‘‘§ 1525. Cooperation and direct communica- tion, of the foreign proceeding— such chapter, except that— tion between the court and foreign courts ‘‘(A) any relief in effect under sections 1519 ‘‘(1) sections 1513 and 1514 apply in all cases or foreign representatives or 1521 shall be reviewed by the court and under this title; and ‘‘(a) Consistent with section 1501, the court shall be modified or terminated if inconsist- ‘‘(2) section 1505 applies to trustees and to shall cooperate to the maximum extent pos- ent with the case in the United States; and any other entity (including an examiner) au- sible with foreign courts or foreign rep- ‘‘(B) if the foreign proceeding is a foreign thorized by the court under chapter 7, 11, or resentatives, either directly or through the main proceeding, the stay and suspension re- 12, to debtors in possession under chapter 11 trustee. ferred to in section 1520(a) shall be modified or 12, and to debtors under chapter 9 who are ‘‘(b) The court is entitled to communicate or terminated if inconsistent with the relief authorized to act under section 1505.’’. directly with, or to request information or granted in the case in the United States. (b) DEFINITIONS.—Paragraphs (23) and (24) assistance directly from, foreign courts or ‘‘(3) In granting, extending, or modifying of section 101 of title 11, United States Code, foreign representatives, subject to the rights relief granted to a representative of a foreign are amended to read as follows: March 16, 1999 CONGRESSIONAL RECORD — SENATE S2761 ‘‘(23) ‘foreign proceeding’ means a collec- ‘‘(C) an option to enter into an agreement (C) in paragraph (48) by inserting ‘‘, or ex- tive judicial or administrative proceeding in or transaction referred to in subparagraph empt from such registration under such sec- a foreign country, including an interim pro- (A) or (B); tion pursuant to an order of the Securities ceeding, pursuant to a law relating to insol- ‘‘(D) a master netting agreement that pro- and Exchange Commission’’ after ‘‘1934’’; and vency in which proceeding the assets and af- vides for an agreement or transaction re- (D) by striking paragraph (53B) and insert- fairs of the debtor are subject to control or ferred to in subparagraph (A), (B), or (C), to- ing the following: supervision by a foreign court, for the pur- gether with all supplements to such master ‘‘(53B) ‘swap agreement’— pose of reorganization or liquidation; netting agreement, without regard to wheth- ‘‘(A) means— ‘‘(24) ‘foreign representative’ means a per- er such master netting agreement provides ‘‘(i) an agreement, including the terms and son or body, including a person or body ap- for an agreement or transaction that is not conditions incorporated by reference in such pointed on an interim basis, authorized in a a forward contract under this paragraph, ex- agreement, that is— foreign proceeding to administer the reorga- cept that such master netting agreement ‘‘(I) an interest rate swap, option, future, shall be considered to be a forward contract nization or the liquidation of the debtor’s as- or forward agreement, including a rate floor, under this paragraph only with respect to sets or affairs or to act as a representative of rate cap, rate collar, cross-currency rate each agreement or transaction under such the foreign proceeding;’’. swap, and basis swap; (c) AMENDMENTS TO TITLE 28, UNITED master netting agreement that is referred to ‘‘(II) a spot, same day-tomorrow, tomor- STATES CODE.— in subparagraph (A), (B) or (C); or row-next, forward, or other foreign exchange (1) PROCEDURES.—Section 157(b)(2) of title ‘‘(E) a security agreement or arrangement, or precious metals agreement; 28, United States Code, is amended— or other credit enhancement, directly per- ‘‘(III) a currency swap, option, future, or (A) in subparagraph (N), by striking ‘‘and’’ taining to a contract, option, agreement, or forward agreement; at the end; transaction referred to in subparagraph (A), ‘‘(IV) an equity index or an equity swap, (B) in subparagraph (O), by striking the pe- (B), (C), or (D), but not to exceed the actual option, future, or forward agreement; riod at the end and inserting ‘‘; and’’; and value of such contract, option, agreement, or (C) by adding at the end the following: transaction on the date of the filing of the ‘‘(V) a debt index or a debt swap, option, ‘‘(P) recognition of foreign proceedings and petition;’’; future, or forward agreement; other matters under chapter 15 of title 11.’’. (B) by striking paragraph (47) and inserting ‘‘(VI) a credit spread or a credit swap, op- tion, future, or forward agreement; or (2) BANKRUPTCY CASES AND PROCEEDINGS.— the following: Section 1334(c)(1) of title 28, United States ‘‘(47) ‘repurchase agreement’ and ‘reverse ‘‘(VII) a commodity index or a commodity Code, is amended by striking ‘‘Nothing in’’ repurchase agreement’— swap, option, future, or forward agreement; and inserting ‘‘Except with respect to a case ‘‘(A) mean— ‘‘(ii) an agreement or transaction that is under chapter 15 of title 11, nothing in’’. ‘‘(i) an agreement, including related terms, similar to an agreement or transaction re- (3) DUTIES OF TRUSTEES.—Section 586(a)(3) which provides for the transfer of— ferred to in clause (i) that— of title 28, United States Code, is amended by ‘‘(I) a certificate of deposit, mortgage re- ‘‘(I) is currently, or in the future becomes, inserting ‘‘15,’’ after ‘‘chapter’’. lated security (as defined in section 3 of the regularly entered into in the swap market SEC. 803. CLAIMS RELATING TO INSURANCE DE- Securities Exchange Act of 1934), mortgage (including terms and conditions incorporated POSITS IN CASES ANCILLARY TO loan, interest in a mortgage related security by reference therein); and FOREIGN PROCEEDINGS. or mortgage loan, eligible bankers’ accept- ‘‘(II) is a forward, swap, future, or option Section 304 of title 11, United States Code, ance, or qualified foreign government secu- on a rate, currency, commodity, equity secu- is amended to read as follows: rity (defined for purposes of this paragraph rity, or other equity instrument, on a debt ‘‘§ 304. Cases ancillary to foreign proceedings to mean a security that is a direct obligation security or other debt instrument, or on an of, or that is fully guaranteed by, the central ‘‘(a) For purposes of this section— economic index or measure of economic risk government of a member of the Organization ‘‘(1) the term ‘domestic insurance com- or value; for Economic Cooperation and Develop- pany’ means a domestic insurance company, ‘‘(iii) a combination of agreements or ment); or as such term is used in section 109(b)(2); transactions referred to in clauses (i) and ‘‘(II) a security that is a direct obligation ‘‘(2) the term ‘foreign insurance company’ (ii); of, or that is fully guaranteed by, the United ‘‘(iv) an option to enter into an agreement means a foreign insurance company, as such States or an agency of the United States term is used in section 109(b)(3); or transaction referred to in this subpara- against the transfer of funds by the trans- graph; ‘‘(3) the term ‘United States claimant’ feree of such certificate of deposit, eligible means a beneficiary of any deposit referred ‘‘(v) a master netting agreement that pro- bankers’ acceptance, security, loan, or inter- vides for an agreement or transaction re- to in subsection (b) or any multibeneficiary est; trust referred to in subsection (b); ferred to in clause (i), (ii), (iii), or (iv), to- ‘‘(4) the term ‘United States creditor’ with a simultaneous agreement by such gether with all supplements to such master means, with respect to a foreign insurance transferee to transfer to the transferor netting agreement and without regard to company— thereof a certificate of deposit, eligible whether such master netting agreement con- ‘‘(i) a United States claimant; or bankers’ acceptance, security, loan, or inter- tains an agreement or transaction described ‘‘(ii) any business entity that operates in est of the kind described in subclause (I) or in any such clause, but only with respect to (II), at a date certain that is not later than the United States and that is a creditor; and each agreement or transaction referred to in 1 year after the date of the transferor’s ‘‘(5) the term ‘United States policyholder’ any such clause that is under such master transfer or on demand, against the transfer means a holder of an insurance policy issued netting agreement; except that of funds; in the United States. ‘‘(B) the definition under subparagraph (A) ‘‘(b) The court may not grant relief under ‘‘(ii) a combination of agreements or trans- is applicable for purposes of this title only, actions referred to in clauses (i) and (iii); chapter 15 of this title with respect to any and shall not be construed or applied so as to ‘‘(iii) an option to enter into an agreement deposit, escrow, trust fund, or other security challenge or affect the characterization, def- or transaction referred to in clause (i) or (ii); required or permitted under any applicable inition, or treatment of any swap agreement or State insurance law or regulation for the under any other statute, regulation, or rule, ‘‘(iv) a master netting agreement that pro- benefit of claim holders in the United including the Securities Act of 1933, the Se- vides for an agreement or transaction re- States.’’. ferred to in clause (i), (ii), or (iii), together curities Exchange Act of 1934, the Public TITLE IX—FINANCIAL CONTRACT with all supplements to such master netting Utility Holding Company Act of 1935, the PROVISIONS agreement, without regard to whether such Trust Indenture Act of 1939, the Investment SEC. 901. BANKRUPTCY CODE AMENDMENTS. master netting agreement provides for an Company Act of 1940, the Investment Advis- (a) DEFINITIONS OF FORWARD CONTRACT, RE- agreement or transaction that is not a repur- ers Act of 1940, the Securities Investor Pro- PURCHASE AGREEMENT, SECURITIES CLEARING chase agreement under this subparagraph, tection Act of 1970, the Commodity Exchange AGENCY, SWAP AGREEMENT, COMMODITY CON- except that such master netting agreement Act, and the regulations prescribed by the TRACT, AND SECURITIES CONTRACT.—Title 11, shall be considered to be a repurchase agree- Securities and Exchange Commission or the United States Code, is amended— ment under this subparagraph only with re- Commodity Futures Trading Commission.’’; (1) in section 101— spect to each agreement or transaction (2) in section 741, by striking paragraph (7) (A) in paragraph (25)— under such master netting agreement that is and inserting the following: (i) by striking ‘‘means a contract’’ and in- referred to in clause (i), (ii), or (iii); or ‘‘(7) ‘securities contract’— serting ‘‘means— ‘‘(v) a security agreement or arrangement, ‘‘(A) means— ‘‘(A) a contract’’; or other credit enhancement, directly per- ‘‘(i) a contract for the purchase, sale, or (ii) by striking ‘‘, or any combination taining to a contract referred to in clause (i), loan of a security, a mortgage loan or an in- thereof or option thereon;’’ and inserting ‘‘, (ii), (iii), or (iv), but not to exceed the actual terest in a mortgage loan, a group or index or any other similar agreement;’’; and value of such contract on the date of the fil- of securities, or mortgage loans or interests (iii) by adding at the end the following: ing of the petition; and therein (including an interest therein or ‘‘(B) a combination of agreements or trans- ‘‘(B) do not include a repurchase obligation based on the value thereof), or option on any actions referred to in subparagraphs (A) and under a participation in a commercial mort- of the foregoing, including an option to pur- (C); gage loan;’’; chase or sell any of the foregoing; S2762 CONGRESSIONAL RECORD — SENATE March 16, 1999 ‘‘(ii) an option entered into on a national ‘‘(A)(i) a Federal reserve bank, or an entity (B) in paragraph (7), by inserting ‘‘, pledged securities exchange relating to foreign cur- that is a commercial or savings bank, indus- to, and under the control of,’’ after ‘‘held rencies; trial savings bank, savings and loan associa- by’’; ‘‘(iii) the guarantee by or to a securities tion, trust company, or receiver or conserva- (C) by striking paragraph (17) and inserting clearing agency of a settlement of cash, se- tor for such entity; and the following: curities, mortgage loans or interests therein, ‘‘(ii) if such Federal reserve bank, receiver, ‘‘(17) under subsection (a), of the setoff by group or index of securities, or mortgage or conservator or entity is acting as agent or a swap participant of a mutual debt and loans or interests therein (including any in- custodian for a customer in connection with claim under or in connection with a swap terest therein or based on the value thereof), a securities contract, as defined in section agreement that constitutes the setoff of a or option on any of the foregoing, including 741, such customer; or claim against the debtor for a payment or an option to purchase or sell any of the fore- ‘‘(B) in connection with a securities con- transfer due from the debtor under or in con- going; tract, as defined in section 741 of this title, nection with a swap agreement against a ‘‘(iv) a margin loan; an investment company registered under the payment due to the debtor from the swap ‘‘(v) any other agreement or transaction Investment Company Act of 1940;’’; participant under or in connection with a that is similar to an agreement or trans- (2) by inserting after paragraph (22) the fol- swap agreement or against cash, securities, action referred to in this subparagraph; lowing: or other property held by, pledged to, and ‘‘(vi) a combination of the agreements or ‘‘(22A) ‘financial participant’ means an en- under the control of, or due from such swap transactions referred to in this subpara- tity that is a party to a securities contract, participant to guarantee, secure, or settle a graph; commodity contract or forward contract, or swap agreement;’’; ‘‘(vii) an option to enter into an agreement on the date of the filing of the petition, has (D) in paragraph (26), by striking ‘‘or’’ at or transaction referred to in this subpara- a commodity contract (as defined in section the end; graph; 761) with the debtor or any other entity (E) in paragraph (27), by striking the pe- ‘‘(viii) a master netting agreement that (other than an affiliate) of a total gross dol- riod at the end and inserting ‘‘; or’’; and provides for an agreement or transaction re- lar value of not less than $1,000,000,000 in no- (F) by inserting after paragraph (27) the ferred to in clause (i), (ii), (iii), (iv), (v), (vi), tional or actual principal amount outstand- following: or (vii), together with all supplements to ing on any day during the previous 15-month ‘‘(28) under subsection (a), of the setoff by such master netting agreement, without re- period, or has gross mark-to-market posi- a master netting agreement participant of a gard to whether such master netting agree- tions of not less than $100,000,000 (aggregated mutual debt and claim under or in connec- ment provides for an agreement or trans- across counterparties) in any such agree- tion with 1 or more master netting agree- action that is not a securities contract under ment or transaction with the debtor or any ments or any contract or agreement subject this subparagraph, except that such master other entity (other than an affiliate) on any to such agreements that constitutes the netting agreement shall be considered to be day during the previous 15-month period;’’; setoff of a claim against the debtor for any a securities contract under this subpara- and payment or other transfer of property due graph only with respect to each agreement (3) by striking paragraph (26) and inserting from the debtor under or in connection with or transaction under such master netting the following: such agreements or any contract or agree- agreement that is referred to in clause (i), ‘‘(26) ‘forward contract merchant’ means a ment subject to such agreements against any (ii), (iii), (iv), (v), (vi), or (vii); or Federal reserve bank, or an entity, the busi- payment due to the debtor from such master ‘‘(ix) a security agreement or arrangement, ness of which consists in whole or in part of netting agreement participant under or in or other credit enhancement, directly per- entering into forward contracts as or with connection with such agreements or any con- taining to a contract referred to in this sub- merchants or in a commodity, as defined or tract or agreement subject to such agree- paragraph, but not to exceed the actual in section 761, or any similar good, article, ments or against cash, securities, or other value of such contract on the date of the fil- service, right, or interest that is presently or property held by, pledged or and under the ing of the petition; and in the future becomes the subject of dealing control of, or due from such master netting ‘‘(B) does not include a purchase, sale, or or in the forward contract trade;’’. agreement participant to margin, guarantee, repurchase obligation under a participation in a commercial mortgage loan;’’; and (c) DEFINITION OF MASTER NETTING AGREE- secure, or settle such agreements or any con- (3) in section 761(4)— MENT AND MASTER NETTING AGREEMENT PAR- tract or agreement subject to such agree- (A) by striking ‘‘or’’ at the end of subpara- TICIPANT.—Section 101 of title 11, United ments, to the extent such participant is eli- graph (D); States Code, is amended by inserting after gible to exercise such offset rights under (B) in subparagraph (E), by striking the pe- paragraph (38) the following new paragraphs: paragraph (6), (7), or (17) for each individual riod at the end and inserting ‘‘; and’’; and ‘‘(38A) the term ‘master netting contract covered by the master netting (C) by adding at the end the following: agreement’— agreement in issue.’’. ‘‘(F) any other agreement or transaction ‘‘(A) means an agreement providing for the (2) LIMITATION.—Section 362 of title 11, that is similar to an agreement or trans- exercise of rights, including rights of net- United States Code, as amended by section action referred to in this paragraph; ting, setoff, liquidation, termination, accel- 432(2) of this Act, is amended by adding at ‘‘(G) a combination of the agreements or eration, or closeout, under or in connection the end the following: ‘‘(l) LIMITATION.—The exercise of rights not transactions referred to in this paragraph; with 1 or more contracts that are described in any 1 or more of paragraphs (1) through (5) subject to the stay arising under subsection ‘‘(H) an option to enter into an agreement (a) pursuant to paragraph (6), (7), or (17) of or transaction referred to in this paragraph; of section 561(a), or any security agreement or arrangement or other credit enhancement subsection (b) shall not be stayed by an order ‘‘(I) a master netting agreement that pro- of a court or administrative agency in any vides for an agreement or transaction re- related to 1 or more of the foregoing; except that proceeding under this title.’’. ferred to in subparagraph (A), (B), (C), (D), (e) LIMITATION OF AVOIDANCE POWERS ‘‘(B) if a master netting agreement con- (E), (F), (G), or (H), together with all supple- UNDER MASTER NETTING AGREEMENT.—Sec- tains provisions relating to agreements or ments to such master netting agreement, tion 546 of title 11, United States Code, is transactions that are not contracts described without regard to whether such master net- amended— in paragraphs (1) through (5) of section ting agreement provides for an agreement or (1) in subsection (g) (as added by section 561(a), the master netting agreement shall be transaction that is not a commodity con- 103 of Public Law 101–311 (104 Stat. 267 et deemed to be a master netting agreement tract under this paragraph, except that such seq.))— only with respect to those agreements or master netting agreement shall be consid- (A) by striking ‘‘under a swap agreement’’; transactions that are described in any 1 or ered to be a commodity contract under this and more of the paragraphs (1) through (5) of sec- paragraph only with respect to each agree- (B) by striking ‘‘in connection with a swap tion 561(a); ment or transaction under such master net- agreement’’ and inserting ‘‘under or in con- ‘‘(38B) the term ‘master netting agreement ting agreement that is referred to in sub- nection with any swap agreement’’; and participant’ means an entity that, at any paragraph (A), (B), (C), (D), (E), (F), (G), or (2) by inserting before subsection (i) (as re- time before the filing of the petition, is a (H); or designated by section 407 of this Act) the fol- party to an outstanding master netting ‘‘(J) a security agreement or arrangement, lowing new subsection: or other credit enhancement, directly per- agreement with the debtor;’’. ‘‘(h) Notwithstanding sections 544, 545, 547, taining to a contract referred to in this para- (d) SWAP AGREEMENTS, SECURITIES CON- 548(a)(2)(B), and 548(b), the trustee may not graph, but not to exceed the actual value of TRACTS, COMMODITY CONTRACTS, FORWARD avoid a transfer made by or to a master net- such contract on the date of the filing of the CONTRACTS, REPURCHASE AGREEMENTS, AND ting agreement participant under or in con- petition.’’. MASTER NETTING AGREEMENTS UNDER THE nection with any master netting agreement (b) DEFINITIONS OF FINANCIAL INSTITUTION, AUTOMATIC STAY.— or any individual contract covered thereby FINANCIAL PARTICIPANT, AND FORWARD CON- (1) IN GENERAL.—Section 362(b) of title 11, that is made before the commencement of TRACT MERCHANT.—Section 101 of title 11, United States Code, as amended by section the case, and except to the extent that the United States Code, is amended— 718 of this Act, is amended— trustee could otherwise avoid such a transfer (1) by striking paragraph (22) and inserting (A) in paragraph (6), by inserting ‘‘, made under an individual contract covered the following: pledged to, and under the control of,’’ after by such master netting agreement (except ‘‘(22) ‘financial institution’ means— ‘‘held by’’; under section 548(a)(1)(A)).’’. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2763

(f) FRAUDULENT TRANSFERS OF MASTER obligations arising under or in connection ‘‘§ 767. Commodity broker liquidation and for- NETTING AGREEMENTS.—Section 548(d)(2) of with 1 or more (or the termination, liquida- ward contract merchants, commodity bro- title 11, United States Code, is amended— tion, or acceleration of 1 or more)— kers, stockbrokers, financial institutions, (1) in subparagraph (C), by striking ‘‘and’’; ‘‘(1) securities contracts, as defined in sec- securities clearing agencies, swap partici- (2) in subparagraph (D), by striking the pe- tion 741(7); pants, repo participants, and master net- riod at the end and inserting ‘‘; and’’; and ‘‘(2) commodity contracts, as defined in ting agreement participants (3) by adding at the end the following new section 761(4); ‘‘Notwithstanding any other provision of subparagraph: ‘‘(3) forward contracts; this title, the exercise of rights by a forward ‘‘(E) a master netting agreement partici- ‘‘(4) repurchase agreements; contract merchant, commodity broker, pant that receives a transfer in connection ‘‘(5) swap agreements; or stockbroker, financial institution, securities with a master netting agreement or any in- ‘‘(6) master netting agreements, clearing agency, swap participant, repo par- dividual contract covered thereby takes for ticipant, or master netting agreement par- value to the extent of such transfer, except, shall not be stayed, avoided, or otherwise ticipant under this title shall not affect the with respect to a transfer under any individ- limited by operation of any provision of this priority of any unsecured claim it may have ual contract covered thereby, to the extent title or by any order of a court or adminis- after the exercise of such rights.’’. that such master netting agreement partici- trative agency in any proceeding under this (n) STOCKBROKER LIQUIDATIONS.—Title 11, pant otherwise did not take (or is otherwise title. United States Code, is amended by inserting after section 752 the following: not deemed to have taken) such transfer for ‘‘(b)(1) A party may exercise a contractual value.’’. ‘‘§ 753. Stockbroker liquidation and forward right described in subsection (a) to termi- (g) TERMINATION OR ACCELERATION OF SECU- contract merchants, commodity brokers, nate, liquidate, or accelerate only to the ex- RITIES CONTRACTS.—Section 555 of title 11, stockbrokers, financial institutions, securi- United States Code, is amended— tent that such party could exercise such a ties clearing agencies, swap participants, (1) by striking the section heading and in- right under section 555, 556, 559, or 560 for repo participants, and master netting serting the following: each individual contract covered by the mas- agreement participants ter netting agreement in issue. ‘‘§ 555. Contractual right to liquidate, termi- ‘‘Notwithstanding any other provision of nate, or accelerate a securities contract’’; ‘‘(2) If a debtor is a commodity broker sub- this title, the exercise of rights by a forward contract merchant, commodity broker, and ject to subchapter IV of chapter 7 of this title— stockbroker, financial institution, securities (2) in the first sentence, by striking ‘‘liq- clearing agency, swap participant, repo par- ‘‘(A) a party may not net or offset an obli- uidation’’ and inserting ‘‘liquidation, termi- ticipant, financial participant, or master gation to the debtor arising under, or in con- nation, or acceleration’’. netting agreement participant under this nection with, a commodity contract against (h) TERMINATION OR ACCELERATION OF COM- title shall not affect the priority of any un- any claim arising under, or in connection MODITIES OR FORWARD CONTRACTS.—Section secured claim it may have after the exercise 556 of title 11, United States Code, is with, other instruments, contracts, or agree- of such rights.’’. amended— ments listed in subsection (a), except to the (o) SETOFF.—Section 553 of title 11, United (1) by striking the section heading and in- extent that the party has no positive net eq- States Code, is amended— serting the following: uity in the commodity accounts at the debt- (1) in subsection (a)(3)(C), by inserting ‘‘§ 556. Contractual right to liquidate, termi- or, as calculated under subchapter IV; and ‘‘(except for a setoff of a kind described in nate, or accelerate a commodities contract ‘‘(B) another commodity broker may not section 362(b)(6), 362(b)(7), 362(b)(17), or forward contract’’; net or offset an obligation to the debtor aris- 362(b)(19), 555, 556, 559, or 560)’’ before the pe- ing under, or in connection with, a commod- riod; and and ity contract entered into or held on behalf of (2) in the first sentence, by striking ‘‘liq- (2) in subsection (b)(1), by striking a customer of the debtor against any claim ‘‘362(b)(14),’’ and inserting ‘‘362(b)(17), uidation’’ and inserting ‘‘liquidation, termi- arising under, or in connection with, other nation, or acceleration’’. 362(b)(19), 555, 556, 559, 560,’’. instruments, contracts, or agreements re- (p) SECURITIES CONTRACTS, COMMODITY CON- (i) TERMINATION OR ACCELERATION OF RE- ferred to in subsection (a). TRACTS, AND FORWARD CONTRACTS.—Title 11, PURCHASE AGREEMENTS.—Section 559 of title United States Code, is amended— 11, United States Code, is amended— ‘‘(c) As used in this section, the term ‘con- (1) in section 362(b)(6), by striking ‘‘finan- (1) by striking the section heading and in- tractual right’ includes a right set forth in a cial institutions,’’ each place such term ap- serting the following: rule or bylaw of a national securities ex- pears and inserting ‘‘financial institution, fi- ‘‘§ 559. Contractual right to liquidate, termi- change, a national securities association, or nancial participant’’; nate, or accelerate a repurchase agree- a securities clearing agency, a right set forth (2) in section 546(e), by inserting ‘‘financial ment’’; in a bylaw of a clearing organization or con- participant’’ after ‘‘financial institution,’’; and tract market or in a resolution of the gov- (3) in section 548(d)(2)(B), by inserting ‘‘fi- (2) in the first sentence, by striking ‘‘liq- erning board thereof, and a right, whether or nancial participant’’ after ‘‘financial institu- uidation’’ and inserting ‘‘liquidation, termi- not evidenced in writing, arising under com- tion,’’; nation, or acceleration’’. mon law, under law merchant, or by reason (4) in section 555— (j) LIQUIDATION, TERMINATION, OR ACCEL- of normal business practice.’’. (A) by inserting ‘‘financial participant’’ ERATION OF SWAP AGREEMENTS.—Section 560 after ‘‘financial institution,’’; and (l) ANCILLARY PROCEEDINGS.—Section 304 of of title 11, United States Code, is amended— (B) by inserting before the period ‘‘, a right title 11, United States Code, is amended by (1) by striking the section heading and in- set forth in a bylaw of a clearing organiza- adding at the end the following: serting following: tion or contract market or in a resolution of ‘‘§ 560. Contractual right to liquidate, termi- ‘‘(d) Any provisions of this title relating to the governing board thereof, and a right, nate, or accelerate a swap agreement’’; securities contracts, commodity contracts, whether or not in writing, arising under common law, under law merchant, or by rea- (2) in the first sentence, by striking ‘‘ter- forward contracts, repurchase agreements, son of normal business practice’’; and mination of a swap agreement’’ and inserting swap agreements, or master netting agree- (5) in section 556, by inserting ‘‘, financial ‘‘liquidation, termination, or acceleration of ments shall apply in a case ancillary to a participant’’ after ‘‘commodity broker’’. a swap agreement’’; and foreign proceeding under this section or any other section of this title, so that enforce- (q) CONFORMING AMENDMENTS.—Title 11 of (3) by striking ‘‘in connection with any the United States Code is amended— ment of contractual provisions of such con- swap agreement’’ and inserting ‘‘in connec- (1) in the table of sections for chapter 5— tracts and agreements in accordance with tion with the termination, liquidation, or ac- (A) by striking the items relating to sec- celeration of a swap agreement’’. their terms— tions 555 and 556 and inserting the following: (k) LIQUIDATION, TERMINATION, ACCELERA- ‘‘(1) shall not be stayed or otherwise lim- ‘‘555. Contractual right to liquidate, termi- TION, OR OFFSET UNDER A MASTER NETTING ited by— nate, or accelerate a securities AGREEMENT AND ACROSS CONTRACTS.—Title ‘‘(A) operation of any provision of this contract. title; or 11, United States Code, is amended by insert- ‘‘556. Contractual right to liquidate, termi- ‘‘(B) order of a court in any case under this ing after section 560 the following new sec- nate, or accelerate a commod- title; tion: ities contract or forward con- ‘‘(2) shall limit avoidance powers to the ‘‘§ 561. Contractual right to terminate, liq- tract.’’; same extent as in a proceeding under chapter uidate, accelerate, or offset under a master (B) by striking the items relating to sec- 7 or 11; and netting agreement and across contracts tions 559 and 560 and inserting the following: ‘‘(3) shall not be limited based on the pres- ‘‘(a) Subject to subsection (b), the exercise ence or absence of assets of the debtor in the ‘‘559. Contractual right to liquidate, termi- of any contractual right, because of a condi- United States.’’. nate, or accelerate a repurchase tion of the kind specified in section 365(e)(1), agreement. to cause the termination, liquidation, or ac- (m) COMMODITY BROKER LIQUIDATIONS.— ‘‘560. Contractual right to liquidate, termi- celeration of or to offset or net termination Title 11, United States Code, is amended by nate, or accelerate a swap values, payment amounts or other transfer inserting after section 766 the following: agreement.’’; S2764 CONGRESSIONAL RECORD — SENATE March 16, 1999

and transferred by the debtor, before the date of (2) EFFECTIVE DATE.—Subsection (a) shall (C) by adding after the item relating to commencement of the case, to an eligible en- take effect on April 1, 1999. section 560 the following: tity in connection with an asset-backed (b) CONFORMING AMENDMENT.—Section 302 ‘‘561. Contractual right to terminate, liq- securitization, except to the extent that of the Bankruptcy, Judges, United States uidate, accelerate, or offset such asset (or proceeds or value thereof) may Trustees, and Family Farmer Bankruptcy under a master netting agree- be recovered by the trustee under section 550 Act of 1986 (28 U.S.C. 581 note) is amended by ment and across contracts.’’; by virtue of avoidance under section 548(a); striking subsection (f). and or’’; and SEC. 1002. DEBT LIMIT INCREASE. (2) in the table of sections for chapter 7— (4) by adding at the end the following new Section 104(b) of title 11, United States (A) by inserting after the item relating to subsection: Code, is amended by adding at the end the section 766 the following: ‘‘(e) For purposes of this section, the fol- following: lowing definitions shall apply: ‘‘767. Commodity broker liquidation and for- ‘‘(4) The dollar amount in section 101(18) ‘‘(1) The term ‘asset-backed securitization’ ward contract merchants, com- shall be adjusted at the same times and in means a transaction in which eligible assets modity brokers, stockbrokers, the same manner as the dollar amounts in transferred to an eligible entity are used as financial institutions, securi- paragraph (1) of this subsection, beginning the source of payment on securities, the ties clearing agencies, swap with the adjustment to be made on April 1, most senior of which are rated investment 2001.’’. participants, repo participants, grade by 1 or more nationally recognized se- and master netting agreement SEC. 1003. ELIMINATION OF REQUIREMENT THAT curities rating organizations, issued by an FAMILY FARMER AND SPOUSE RE- participants.’’; issuer. and CEIVE OVER 50 PERCENT OF IN- ‘‘(2) The term ‘eligible asset’ means— COME FROM FARMING OPERATION (B) by inserting after the item relating to ‘‘(A) financial assets (including interests IN YEAR PRIOR TO BANKRUPTCY. section 752 the following: therein and proceeds thereof), either fixed or Section 101(18)(A) of title 11, United States ‘‘753. Stockbroker liquidation and forward revolving, including residential and commer- Code, is amended by striking ‘‘the taxable contract merchants, commod- cial mortgage loans, consumer receivables, year preceding the taxable year’’ and insert- ity brokers, stockbrokers, fi- trade receivables, and lease receivables, ing ‘‘at least 1 of the 3 calendar years preced- nancial institutions, securities that, by their terms, convert into cash with- ing the year’’. clearing agencies, swap partici- in a finite time period, plus any rights or SEC. 1004. CERTAIN CLAIMS OWED TO GOVERN- pants, repo participants, and other assets designed to assure the servicing MENTAL UNITS. master netting agreement par- or timely distribution of proceeds to security (a) CONTENTS OF PLAN.—Section 1222(a)(2) ticipants.’’. holders; of title 11, United States Code, is amended to SEC. 902. DAMAGE MEASURE. ‘‘(B) cash; and read as follows: (a) IN GENERAL.—Title 11, United States ‘‘(C) securities. ‘‘(2) provide for the full payment, in de- Code, is amended— ‘‘(3) The term ‘eligible entity’ means— ferred cash payments, of all claims entitled (1) by inserting after section 561 the follow- ‘‘(A) an issuer; or to priority under section 507, unless— ing: ‘‘(B) a trust, corporation, partnership, or ‘‘(A) the claim is a claim owed to a govern- ‘‘§ 562. Damage measure in connection with other entity engaged exclusively in the busi- mental unit that arises as a result of the swap agreements, securities contracts, for- ness of acquiring and transferring eligible as- sale, transfer, exchange, or other disposition ward contracts, commodity contracts, re- sets directly or indirectly to an issuer and of any farm asset used in the debtor’s farm- purchase agreements, or master netting taking actions ancillary thereto. ing operation, in which case the claim shall agreements ‘‘(4) The term ‘issuer’ means a trust, cor- be treated as an unsecured claim that is not ‘‘If the trustee rejects a swap agreement, poration, partnership, or other entity en- entitled to priority under section 507, but the securities contract (as defined in section gaged exclusively in the business of acquir- debt shall be treated in such manner only if 741), forward contract, commodity contract ing and holding eligible assets, issuing secu- the debtor receives a discharge; or (as defined in section 761) repurchase agree- rities backed by eligible assets, and taking ‘‘(B) the holder of a particular claim agrees ment, or master netting agreement under actions ancillary thereto. to a different treatment of that claim; and’’. ‘‘(5) The term ‘transferred’ means the debt- section 365(a), or if a forward contract mer- (b) SPECIAL NOTICE PROVISIONS.—Section or, under a written agreement, represented chant, stockbroker, financial institution, se- 1231(d) of title 11, United States Code, is and warranted that eligible assets were sold, curities clearing agency, repo participant, fi- amended by striking ‘‘a State or local gov- contributed, or otherwise conveyed with the nancial participant, master netting agree- ernmental unit’’ and inserting ‘‘any govern- intention of removing them from the estate ment participant, or swap participant mental unit’’. liquidates, terminates, or accelerates such of the debtor pursuant to subsection (b)(5), TITLE XI—HEALTH CARE AND EMPLOYEE contract or agreement, damages shall be irrespective, without limitation of— measured as of the earlier of— ‘‘(A) whether the debtor directly or indi- BENEFITS ‘‘(1) the date of such rejection; or rectly obtained or held an interest in the SEC. 1101. DEFINITIONS. ‘‘(2) the date of such liquidation, termi- issuer or in any securities issued by the (a) HEALTH CARE BUSINESS DEFINED.—Sec- nation, or acceleration.’’; and issuer; tion 101 of title 11, United States Code, as (2) in the table of sections for chapter 5 by ‘‘(B) whether the debtor had an obligation amended by section 1004(a) of this Act, is inserting after the item relating to section to repurchase or to service or supervise the amended— 561 the following: servicing of all or any portion of such eligi- (1) by redesignating paragraph (27A) as ‘‘562. Damage measure in connection with ble assets; or paragraph (27C); and swap agreements, securities ‘‘(C) the characterization of such sale, con- (2) inserting after paragraph (27) the fol- contracts, forward contracts, tribution, or other conveyance for tax, ac- lowing: commodity contracts, repur- counting, regulatory reporting, or other pur- ‘‘(27A) ‘health care business’— chase agreements, or master poses.’’. ‘‘(A) means any public or private entity netting agreements.’’. SEC. 904. EFFECTIVE DATE; APPLICATION OF (without regard to whether that entity is or- (b) CLAIMS ARISING FROM REJECTION.—Sec- AMENDMENTS. ganized for profit or not for profit) that is tion 502(g) of title 11, United States Code, is (a) EFFECTIVE DATE.—This title shall take primarily engaged in offering to the general amended— effect on the date of enactment of this Act. public facilities and services for— (1) by inserting ‘‘(1)’’ after ‘‘(g)’’; and (b) APPLICATION OF AMENDMENTS.—The ‘‘(i) the diagnosis or treatment of injury, (2) by adding at the end the following: amendments made by this title shall apply deformity, or disease; and ‘‘(2) A claim for damages calculated in ac- with respect to cases commenced or appoint- ‘‘(ii) surgical, drug treatment, psychiatric cordance with section 561 shall be allowed ments made under any Federal or State law or obstetric care; and under subsection (a), (b), or (c) of this sec- after the date of enactment of this Act, but ‘‘(B) includes— tion, or disallowed under subsection (d) or (e) shall not apply with respect to cases com- ‘‘(i) any— of this section, as if such claim had arisen menced or appointments made under any ‘‘(I) general or specialized hospital; before the date of the filing of the petition.’’. Federal or State law before the date of en- ‘‘(II) ancillary ambulatory, emergency, or SEC. 903. ASSET-BACKED SECURITIZATIONS. actment of this Act. surgical treatment facility; Section 541 of title 11, United States Code, TITLE X—PROTECTION OF FAMILY ‘‘(III) hospice; is amended— FARMERS ‘‘(IV) health maintenance organization; (1) in subsection (b), by striking ‘‘or’’ at SEC. 1001. REENACTMENT OF CHAPTER 12. ‘‘(V) home health agency; and the end of paragraph (4); (a) REENACTMENT.— ‘‘(VI) other health care institution that is (2) by redesignating paragraph (5) of sub- (1) IN GENERAL.—Chapter 12 of title 11, similar to an entity referred to in subclause section (b) as paragraph (6); United States Code, as reenacted by section (I), (II), (III), (IV), or (V); and (3) by inserting after paragraph (4) of sub- 149 of division C of the Omnibus Consolidated ‘‘(ii) any long-term care facility, including section (b) the following new paragraph: and Emergency Supplemental Appropria- any— ‘‘(5) any eligible asset (or proceeds there- tions Act, 1999 (Public Law 105–277), and ‘‘(I) skilled nursing facility; of), to the extent that such eligible asset was amended by this Act, is reenacted. ‘‘(II) intermediate care facility; March 16, 1999 CONGRESSIONAL RECORD — SENATE S2765

‘‘(III) assisted living facility; address of that patient an appropriate notice (b) COMPENSATION OF OMBUDSMAN.—Section ‘‘(IV) home for the aged; regarding the claiming or disposing of pa- 330(a)(1) of title 11, United States Code, is ‘‘(V) domicilary care facility; and tient records. amended— ‘‘(VI) health care institution that is relat- ‘‘(3) If, after providing the notification (1) in the matter proceeding subparagraph ed to a facility referred to in subclause (I), under paragraph (2), patient records are not (A), by inserting ‘‘an ombudsman appointed (II), (III), (IV), or (V), if that institution is claimed during the 60-day period described in under section 331, or’’ before ‘‘a professional primarily engaged in offering room, board, paragraph (2)(A) or in any case in which a person’’; and laundry, or personal assistance with activi- notice is mailed under paragraph (2)(B), dur- (2) in subparagraph (A), by inserting ‘‘om- ties of daily living and incidentals to activi- ing the 90-day period beginning on the date budsman,’’ before ‘‘professional person’’. ties of daily living;’’. on which the notice is mailed, by a patient SEC. 1105. DEBTOR IN POSSESSION; DUTY OF (b) HEALTH MAINTENANCE ORGANIZATION or insurance provider in accordance with TRUSTEE TO TRANSFER PATIENTS. DEFINED.—Section 101 of title 11, United that paragraph, the trustee shall destroy (a) IN GENERAL.—Section 704(a) of title 11, States Code, as amended by subsection (a), is those records by— United States Code, as amended by section amended by inserting after paragraph (27A) ‘‘(A) if the records are written, shredding 219 of this Act, is amended— the following: or burning the records; or (1) in paragraph (9), by striking ‘‘and’’ at ‘‘(27B) ‘health maintenance organization’ ‘‘(B) if the records are magnetic, optical, or the end; means any person that undertakes to provide other electronic records, by otherwise de- (2) in paragraph (10), by striking the period or arrange for basic health care services stroying those records so that those records and inserting ‘‘; and’’; and through an organized system that— cannot be retrieved.’’. (3) by adding at the end the following: ‘‘(A)(i) combines the delivery and financing (b) CLERICAL AMENDMENT.—The chapter ‘‘(11) use all reasonable and best efforts to of health care to enrollees; and analysis for chapter 3 of title 11, United transfer patients from a health care business ‘‘(ii)(I) provides— States Code, is amended by inserting after that is in the process of being closed to an ‘‘(aa) physician services directly through the item relating to section 350 the follow- appropriate health care business that— physicians or 1 or more groups of physicians; ing: ‘‘(A) is in the vicinity of the health care and ‘‘351. Disposal of patient records.’’. business that is closing; ‘‘(bb) basic health care services directly or SEC. 1103. ADMINISTRATIVE EXPENSE CLAIM FOR ‘‘(B) provides the patient with services under a contractual arrangement; and COSTS OF CLOSING A HEALTH CARE that are substantially similar to those pro- ‘‘(II) if reasonable and appropriate, pro- BUSINESS. vided by the health care business that is in vides physician services and basic health Section 503(b) of title 11, United States the process of being closed; and Code, is amended— care services through arrangements other ‘‘(C) maintains a reasonable quality of (1) in paragraph (5), by striking ‘‘and’’ at than the arrangements referred to in clause care.’’. the end; (i); and (b) CONFORMING AMENDMENT.—Section (2) in paragraph (6), by striking the period ‘‘(B) includes any organization described in 1106(a)(1) of title 11, United States Code, is at the end and inserting ‘‘; and’’; and subparagraph (A) that provides, or arranges amended by striking ‘‘and 704(9)’’ and insert- (3) by adding at the end the following: for, health care services on a prepayment or ing ‘‘704(9), and 704(10)’’. ‘‘(7) the actual, necessary costs and ex- other financial basis;’’. penses of closing a health care business in- TITLE XII—TECHNICAL AMENDMENTS (c) PATIENT.—Section 101 of title 11, United curred by a trustee, including any cost or ex- SEC. 1201. DEFINITIONS. States Code, as amended by subsection (b), is pense incurred— Section 101 of title 11, United States Code, amended by inserting after paragraph (40) ‘‘(A) in disposing of patient records in ac- as amended by section 1101 of this Act, is the following: cordance with section 351; or amended— ‘‘(40A) ‘patient’ means any person who ob- ‘‘(B) in connection with transferring pa- (1) by striking ‘‘In this title—’’ and insert- tains or receives services from a health care tients from the health care business that is ing ‘‘In this title:’’; business;’’. in the process of being closed to another (2) in each paragraph, by inserting ‘‘The (d) PATIENT RECORDS.—Section 101 of title health care business.’’. term’’ after the paragraph designation; 11, United States Code, as amended by sub- (3) in paragraph (35)(B), by striking ‘‘para- section (c), is amended by inserting after SEC. 1104. APPOINTMENT OF OMBUDSMAN TO ACT AS PATIENT ADVOCATE. graphs (21B) and (33)(A)’’ and inserting paragraph (40A) the following: (a) IN GENERAL.— ‘‘paragraphs (23) and (35)’’; ‘‘(40B) ‘patient records’ means any written (1) APPOINTMENT OF OMBUDSMAN.—Sub- (4) in each of paragraphs (35A) and (38), by document relating to a patient or record re- chapter II of chapter 3 of title 11, United striking ‘‘; and’’ at the end and inserting a corded in a magnetic, optical, or other form States Code, is amended by inserting after period; of electronic medium;’’. section 331 the following: (5) in paragraph (51B)— SEC. 1102. DISPOSAL OF PATIENT RECORDS. ‘‘§ 332. Appointment of ombudsman (A) by inserting ‘‘who is not a family farm- (a) IN GENERAL.—Subchapter III of chapter ‘‘(a) Not later than 30 days after a case is er’’ after ‘‘debtor’’ the first place it appears; 3 of title 11, United States Code, is amended and by adding at the end the following: commenced by a health care business under chapter 7, 9, or 11, the court shall appoint an (B) by striking ‘‘thereto having aggregate’’ ‘‘§ 351. Disposal of patient records ombudsman to represent the interests of the and all that follows through the end of the ‘‘If a health care business commences a patients of the health care business. paragraph; case under chapter 7, 9, or 11, and the trustee ‘‘(b) An ombudsman appointed under sub- (6) by striking paragraph (54) and inserting does not have a sufficient amount of funds to section (a) shall— the following: pay for the storage of patient records in the ‘‘(1) monitor the quality of patient care, to ‘‘(54) The term ‘transfer’ means— manner required under applicable Federal or the extent necessary under the cir- ‘‘(A) the creation of a lien; State law, the following requirements shall cumstances, including reviewing records and ‘‘(B) the retention of title as a security in- apply: interviewing patients and physicians; terest; ‘‘(1) The trustee shall mail, by certified ‘‘(2) not later than 60 days after the date of ‘‘(C) the foreclosure of a debtor’s equity of mail, a written request to each appropriate appointment, and not less frequently than redemption; or Federal or State agency to request permis- every 60 days thereafter, report to the court, ‘‘(D) each mode, direct or indirect, abso- sion from that agency to deposit the patient at a hearing or in writing, regarding the lute or conditional, voluntary or involun- records with that agency. quality of patient care at the health care tary, of disposing of or parting with— ‘‘(2) If no appropriate Federal or State business involved; and ‘‘(i) property; or agency agrees to permit the deposit of pa- ‘‘(3) if the ombudsman determines that the ‘‘(ii) an interest in property;’’; tient records referred to in paragraph (1) by quality of patient care is declining signifi- (7) in each of paragraphs (1) through (35), in the date that is 60 days after the trustee cantly or is otherwise being materially com- each of paragraphs (36) and (37), and in each mails a written request under that para- promised, notify the court by motion or of paragraphs (40) through (55) (including graph, the trustee shall— written report, with notice to appropriate paragraph (54), as amended by paragraph (6) ‘‘(A) publish notice, in 1 or more appro- parties in interest, immediately upon mak- of this section), by striking the semicolon at priate newspapers, that if those patient ing that determination. the end and inserting a period; and records are not claimed by the patient or an ‘‘(c) An ombudsman shall maintain any in- (8) by redesignating paragraphs (4) through insurance provider (if applicable law permits formation obtained by the ombudsman under (55), including paragraph (54), as amended by the insurance provider to make that claim) this section that relates to patients (includ- paragraph (6) of this section, in entirely nu- by the date that is 60 days after the date of ing information relating to patient records) merical sequence. that notification, the trustee will destroy as confidential information.’’. SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS. the patient records; and (2) CLERICAL AMENDMENT.—The chapter Section 104 of title 11, United States Code, ‘‘(B) during the 60-day period described in analysis for chapter 3 of title 11, United is amended by inserting ‘‘522(f)(3), 707(b)(5),’’ subparagraph (A), the trustee shall attempt States Code, is amended by inserting after after ‘‘522(d),’’ each place it appears. to notify directly each patient that is the the item relating to section 331 the follow- SEC. 1203. EXTENSION OF TIME. subject of the patient records concerning the ing: Section 108(c)(2) of title 11, United States patient records by mailing to the last known ‘‘332. Appointment of ombudsman.’’. Code, is amended by striking ‘‘922’’ and all S2766 CONGRESSIONAL RECORD — SENATE March 16, 1999 that follows through ‘‘or’’, and inserting (2) in paragraph (2), by striking ‘‘the pro- amended by striking ‘‘only’’ and all that fol- ‘‘922, 1201, or’’. gram operated under part B, D, or E of’’ and lows through the end of the subsection and SEC. 1204. TECHNICAL AMENDMENTS. inserting ‘‘any program operated under’’. inserting ‘‘only— Title 11 of the United States Code is SEC. 1215. PROPERTY OF THE ESTATE. ‘‘(1) in accordance with applicable non- amended— Section 541(b)(4)(B)(ii) of title 11, United bankruptcy law that governs the transfer of (1) in section 109(b)(2), by striking ‘‘sub- States Code, is amended by inserting ‘‘365 property by a corporation or trust that is section (c) or (d) of’’; or’’ before ‘‘542’’. not a moneyed, business, or commercial cor- poration or trust; and (2) in section 541(b)(4), by adding ‘‘or’’ at SEC. 1216. PREFERENCES. ‘‘(2) to the extent not inconsistent with the end; and (a) IN GENERAL.—Section 547 of title 11, any relief granted under subsection (c), (d), (3) in section 552(b)(1), by striking ‘‘prod- United States Code, is amended— (e), or (f) of section 362.’’. uct’’ each place it appears and inserting (1) in subsection (b), by striking ‘‘sub- ‘‘products’’. (b) CONFIRMATION OF PLAN FOR REORGA- section (c)’’ and inserting ‘‘subsections (c) NIZATION.—Section 1129(a) of title 11, United SEC. 1205. PENALTY FOR PERSONS WHO NEG- and (i)’’; and States Code, as amended by section 212 of LIGENTLY OR FRAUDULENTLY PRE- (2) by adding at the end the following: PARE BANKRUPTCY PETITIONS. this Act, is amended by adding at the end ‘‘(i) If the trustee avoids under subsection Section 110(j)(3) of title 11, United States the following: (b) a security interest given between 90 days Code, is amended by striking ‘‘attorney’s’’ ‘‘(15) All transfers of property of the plan and 1 year before the date of the filing of the and inserting ‘‘attorneys’ ’’. shall be made in accordance with any appli- petition, by the debtor to an entity that is SEC. 1206. LIMITATION ON COMPENSATION OF cable provisions of nonbankruptcy law that not an insider for the benefit of a creditor govern the transfer of property by a corpora- PROFESSIONAL PERSONS. that is an insider, such security interest Section 328(a) of title 11, United States tion or trust that is not a moneyed, business, shall be considered to be avoided under this or commercial corporation or trust.’’. Code, is amended by inserting ‘‘on a fixed or section only with respect to the creditor percentage fee basis,’’ after ‘‘hourly basis,’’. (c) TRANSFER OF PROPERTY.—Section 541 of that is an insider.’’. title 11, United States Code, is amended by SEC. 1207. SPECIAL TAX PROVISIONS. (b) APPLICABILITY.—The amendments made adding at the end the following: Section 346(g)(1)(C) of title 11, United by this section shall apply to any case that ‘‘(f) Notwithstanding any other provision States Code, is amended by striking ‘‘, ex- pending or commenced on or after the date of this title, property that is held by a debt- cept’’ and all that follows through ‘‘1986’’. of enactment of this Act. or that is a corporation described in section SEC. 1208. EFFECT OF CONVERSION. SEC. 1217. POSTPETITION TRANSACTIONS. 501(c)(3) of the Internal Revenue Code of 1986 Section 348(f)(2) of title 11, United States Section 549(c) of title 11, United States and exempt from tax under section 501(a) of Code, is amended by inserting ‘‘of the es- Code, is amended— such Code may be transferred to an entity tate’’ after ‘‘property’’ the first place it ap- (1) by inserting ‘‘an interest in’’ after that is not such a corporation, but only pears. ‘‘transfer of’’; under the same conditions as would apply if SEC. 1209. ALLOWANCE OF ADMINISTRATIVE EX- (2) by striking ‘‘such property’’ and insert- the debtor had not filed a case under this PENSES. ing ‘‘such real property’’; and title.’’. Section 503(b)(4) of title 11, United States (3) by striking ‘‘the interest’’ and inserting (d) APPLICABILITY.—The amendments made Code, is amended by inserting ‘‘subparagraph ‘‘such interest’’. by this section shall apply to a case pending (A), (B), (C), (D), or (E) of’’ before ‘‘paragraph under title 11, United States Code, on the SEC. 1218. DISPOSITION OF PROPERTY OF THE (3)’’. ESTATE. date of enactment of this Act, except that the court shall not confirm a plan under SEC. 1210. PRIORITIES. Section 726(b) of title 11, United States chapter 11 of this title without considering Section 507(a) of title 11, United States Code, is amended by striking ‘‘1009,’’. whether this section would substantially af- Code, as amended by sections 211 and 229 of SEC. 1219. GENERAL PROVISIONS. this Act, is amended— fect the rights of a party in interest who Section 901(a) of title 11, United States (1) in paragraph (4)(B), by striking the first acquired rights with respect to the Code, as amended by section 901(k) of this semicolon at the end and inserting a period; debtor after the date of the petition. The Act, is amended by inserting ‘‘1123(d),’’ after and parties who may appear and be heard in a ‘‘1123(b),’’. (2) in paragraph (8), by inserting ‘‘unse- proceeding under this section include the at- cured’’ after ‘‘allowed’’. SEC. 1220. ABANDONMENT OF RAILROAD LINE. torney general of the State in which the Section 1170(e)(1) of title 11, United States SEC. 1211. EXEMPTIONS. debtor is incorporated, was formed, or does Code, is amended by striking ‘‘section 11347’’ Section 522(g)(2) of title 11, United States business. and inserting ‘‘section 11326(a)’’. (e) RULE OF CONSTRUCTION.—Nothing in Code, as amended by section 311 of this Act, this section shall be construed to require the is amended by striking ‘‘subsection (f)(2)’’ SEC. 1221. CONTENTS OF PLAN. court in which a case under chapter 11 is and inserting ‘‘subsection (f)(1)(B)’’. Section 1172(c)(1) of title 11, United States pending to remand or refer any proceeding, SEC. 1212. EXCEPTIONS TO DISCHARGE. Code, is amended by striking ‘‘section 11347’’ and inserting ‘‘section 11326(a)’’. issue, or controversy to any other court or to Section 523 of title 11, United States Code, require the approval of any other court for SEC. 1222. DISCHARGE UNDER CHAPTER 12. as amended by section 229 of this Act, is the transfer of property. Subsections (a) and (c) of section 1228 of amended— SEC. 1226. PROTECTION OF VALID PURCHASE (1) as amended by section 304(e) of Public title 11, United States Code, are amended by MONEY SECURITY INTERESTS. Law 103–394 (108 Stat. 4133), in paragraph (15), striking ‘‘1222(b)(10)’’ each place it appears Section 547(c)(3)(B) of title 11, United by transferring such paragraph so as to in- and inserting ‘‘1222(b)(9)’’. States Code, is amended by striking ‘‘20’’ and sert it after paragraph (14) of subsection (a); SEC. 1223. BANKRUPTCY CASES AND PROCEED- inserting ‘‘30’’. INGS. (2) in subsection (a)— SEC. 1227. EXTENSIONS. (A) in paragraph (3), by striking ‘‘or (6)’’ Section 1334(d) of title 28, United States Section 302(d)(3) of the Bankruptcy, each place it appears and inserting ‘‘(6), or Code, is amended— Judges, United States Trustees, and Family (15)’’; (1) by striking ‘‘made under this sub- Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 (B) in paragraph (9), by striking ‘‘motor ve- section’’ and inserting ‘‘made under sub- note) is amended— hicle or vessel’’ and inserting ‘‘motor vehi- section (c)’’; and (1) in subparagraph (A), in the matter fol- cle, vessel, or aircraft’’; and (2) by striking ‘‘This subsection’’ and in- lowing clause (ii), by striking ‘‘or October 1, (C) in paragraph (15), as so redesignated by serting ‘‘Subsection (c) and this subsection’’. 2002, whichever occurs first’’; and paragraph (1) of this subsection, by inserting SEC. 1224. KNOWING DISREGARD OF BANK- (2) in subparagraph (F)— ‘‘to a spouse, former spouse, or child of the RUPTCY LAW OR RULE. (A) in clause (i)— debtor and’’ after ‘‘(15)’’; and Section 156(a) of title 18, United States (i) in subclause (II), by striking ‘‘or Octo- (3) in subsection (e), by striking ‘‘a in- Code, is amended— ber 1, 2002, whichever occurs first’’; and sured’’ and inserting ‘‘an insured’’. (1) in the first undesignated paragraph— (ii) in the matter following subclause (II), SEC. 1213. EFFECT OF DISCHARGE. (A) by inserting ‘‘(1) the term’’ before by striking ‘‘October 1, 2003, or’’; and Section 524(a)(3) of title 11, United States ‘‘ ‘bankruptcy’’; and (B) in clause (ii), in the matter following Code, is amended by striking ‘‘section 523’’ (B) by striking the period at the end and subclause (II)— and all that follows through ‘‘or that’’ and inserting ‘‘; and’’; and (i) by striking ‘‘before October 1, 2003, or’’; inserting ‘‘section 523, 1228(a)(1), or 1328(a)(1), (2) in the second undesignated paragraph— and or that’’. (A) by inserting ‘‘(2) the term’’ before (ii) by striking ‘‘, whichever occurs first’’. SEC. 1214. PROTECTION AGAINST DISCRIMINA- ‘‘ ‘document’’; and SEC. 1228. BANKRUPTCY JUDGESHIPS. TORY TREATMENT. (B) by striking ‘‘this title’’ and inserting (a) SHORT TITLE.—This section may be Section 525(c) of title 11, United States ‘‘title 11’’. cited as the ‘‘Bankruptcy Judgeship Act of Code, is amended— SEC. 1225. TRANSFERS MADE BY NONPROFIT 1999’’. (1) in paragraph (1), by inserting ‘‘student’’ CHARITABLE CORPORATIONS. (b) TEMPORARY JUDGESHIPS.— before ‘‘grant’’ the second place it appears; (a) SALE OF PROPERTY OF ESTATE.—Section (1) APPOINTMENTS.—The following judge- and 363(d) of title 11, United States Code, is ship positions shall be filled in the manner March 16, 1999 CONGRESSIONAL RECORD — SENATE S2767 prescribed in section 152(a)(1) of title 28, ‘‘(A) means the expenses incurred by a one prosecutor and one agent in every dis- United States Code, for the appointment of bankruptcy judge for travel that is not di- trict to investigate reaffirmation practices bankruptcy judges provided for in section rectly related to any case assigned to such which violate current federal criminal laws, 152(a)(2) of such title: bankruptcy judge; and including the criminal laws under which (A) One additional bankruptcy judgeship ‘‘(B) shall not include the travel expenses Sears was prosecuted. for the eastern district of California. of a bankruptcy judge if— The new Senate bill specifically authorizes (B) Four additional bankruptcy judgeships ‘‘(i) the payment for the travel expenses is state attorneys general to enforce federal for the central district of California. paid by such bankruptcy judge from the per- criminal laws against abusive reaffirma- (C) One additional bankruptcy judgeship sonal funds of such bankruptcy judge; and tions, again including the criminal laws for the southern district of Florida. ‘‘(ii) such bankruptcy judge does not re- under which Sears was prosecuted. (D) Two additional bankruptcy judgeships ceive funds (including reimbursement) from The new Senate bill specifically authorizes for the district of Maryland. the United States or any other person or en- state attorneys general to enforce state laws (E) One additional bankruptcy judgeship tity for the payment of such travel expenses. regarding unfair trade practices against for the eastern district of Michigan. ‘‘(2) Each bankruptcy judge shall annually creditors who deceive debtors into reaffirma- (F) One additional bankruptcy judgeship submit the information required under para- tion agreements, including the state laws for the southern district of Mississippi. graph (3) to the chief bankruptcy judge for under which Sears was prosecuted. (G) One additional bankruptcy judgeship the district in which the bankruptcy judge is The new Senate bill drops a provision bar- for the district of New Jersey. assigned. ring class action lawsuits for reaffirmation (H) One additional bankruptcy judgeship ‘‘(3)(A) Each chief bankruptcy judge shall violations. for the eastern district of New York. submit an annual report to the Director of The new Senate bill reinserts a provision (I) One additional bankruptcy judgeship for the Administrative Office of the United making it a violation of the automatic stay the northern district of New York. States Courts on the travel expenses of each to threaten to file motions in order to coerce (J) One additional bankruptcy judgeship bankruptcy judge assigned to the applicable reaffirmations. for the southern district of New York. district (including the travel expenses of the The new Senate bill reinserts a provision (K) One additional bankruptcy judgeship chief bankruptcy judge of such district). penalizing creditors who fail to acknowledge for the eastern district of Pennsylvania. ‘‘(B) The annual report under this para- payments received in Chapter 13 plans and, (L) One additional bankruptcy judgeship graph shall include— thereafter, seek a ‘‘double payment.’’ for the middle district of Pennsylvania. ‘‘(i) the travel expenses of each bankruptcy GREATER PROTECTIONS FOR CHILD SUPPORT (M) One additional bankruptcy judgeship judge, with the name of the bankruptcy The new Senate bill requires bankruptcy for the western district of Tennessee. judge to whom the travel expenses apply; trustees to notify appropriate state agencies (N) One additional bankruptcy judgeship ‘‘(ii) a description of the subject matter of a debtor’s location and specific address, if for the eastern district of Virginia. and purpose of the travel relating to each the debtor owes child support. This effec- (2) VACANCIES.—The first vacancy occur- travel expense identified under clause (i), tively turns bankruptcy courts into locator ring in the office of a bankruptcy judge in with the name of the bankruptcy judge to services to help track down ‘‘deadbeat par- each of the judicial districts set forth in whom the travel applies; and ents.’’ paragraph (1) that— ‘‘(iii) the number of days of each travel de- The new Senate bill requires bankruptcy (A) results from the death, retirement, res- scribed under clause (ii), with the name of trustees to notify child support claimants of ignation, or removal of a bankruptcy judge; the bankruptcy judge to whom the travel ap- their right to enforce payment through an and plies. appropriate state agency. (B) occurs 5 years or more after the ap- ‘‘(4)(A) The Director of the Administrative The new Senate bill permits state agencies pointment date of a bankruptcy judge ap- Office of the United States Courts shall— which enforce payment of child support obli- pointed under paragraph (1); ‘‘(i) consolidate the reports submitted gations to request that creditors who hold under paragraph (3) into a single report; and shall not be filled. reaffirmed or non-discharged debts to pro- ‘‘(ii) annually submit such consolidated re- vide the last known address and telephone (c) EXTENSIONS.— port to Congress. (1) IN GENERAL.—The temporary bank- number of the debtor. Again, this effectively ‘‘(B) The consolidated report submitted turns bankruptcy courts into locator serv- ruptcy judgeship positions authorized for the under this paragraph shall include the spe- northern district of Alabama, the district of ices which will help to track down ‘‘deadbeat cific information required under paragraph parents.’’ Delaware, the district of Puerto Rico, the (3)(B), including the name of each bank- district of South Carolina, and the eastern The new Senate bill provides that debts in- ruptcy judge with respect to clauses (i), (ii), curred to pay non-dischargeable debts will district of Tennessee under section 3(a) (1), and (iii) of paragraph (3)(B).’’. (3), (7), (8), and (9) of the Bankruptcy Judge- continue to be dischargeable if the debtor ship Act of 1992 (28 U.S.C. 152 note) are ex- TITLE XIII—GENERAL EFFECTIVE DATE; owes child support or alimony. tended until the first vacancy occurring in APPLICATION OF AMENDMENTS FEWER NON-DISCHARGEABLE DEBTS the office of a bankruptcy judge in the appli- SEC. 1301. EFFECTIVE DATE; APPLICATION OF The new Senate bill raises the dollar limits cable district resulting from the death, re- AMENDMENTS. on cash advances on the eve of bankruptcy, (a) EFFECTIVE DATE.—Except as provided tirement, resignation, or removal of a bank- presumed non-dischargeable from $250 to otherwise in this Act, this Act and the ruptcy judge and occurring— $750. (A) 8 years or more after November 8, 1993, amendments made by this Act shall take ef- The new Senate bill shortens the time dur- with respect to the northern district of Ala- fect 180 days after the date of enactment of ing which purchases and cash advances are bama; this Act. presumed non-dischargeable from 90 days to (b) APPLICATION OF AMENDMENTS.—The (B) 10 years or more after October 28, 1993, 70 days. amendments made by this Act shall not with respect to the district of Delaware; apply with respect to cases commenced ∑ Mr. BIDEN. Mr. President, I am (C) 8 years or more after August 29, 1994, under title 11, United States Code, before the pleased to join today with Senator with respect to the district of Puerto Rico; effective date of this Act. (D) 8 years or more after June 27, 1994, with GRASSLEY and Senator TORRICELLI, respect to the district of South Carolina; and along with our colleague from the Ju- SUMMARY OF MAJOR DIFFERENCES BETWEEN (E) 8 years or more after November 23, 1993, diciary Committee, Senator SESSIONS, THE GRASSLEY/TORRICELLI BANKRUPTCY RE- with respect to the eastern district of Ten- to introduce legislation to reform our FORM BILL AND THE H.R. 3150 CONFERENCE nessee. REPORT nation’s bankruptcy laws. (2) APPLICABILITY OF OTHER PROVISIONS.— In a time of rising incomes, historic MEANS TEST All other provisions of section 3 of the Bank- levels of job creation, and strong eco- The new Senate bill gives bankruptcy ruptcy Judgeship Act of 1992 remain applica- nomic growth, America has seen an un- ble to such temporary judgeship positions. judges greater discretion in considering expected rise in the number of personal (d) TECHNICAL AMENDMENT.—The first sen- whether to transfer a debtor from Chapter 7 tence of section 152(a)(1) of title 28, United to Chapter 13. bankruptcies. Last year, 1.4 million States Code, is amended to read as follows: The new Senate bill requires only a show- Americans filed for personal bank- ‘‘Each bankruptcy judge to be appointed for ing of ‘‘special circumstances,’’ rather than ruptcy, and we expect that number to a judicial district as provided in paragraph ‘‘extraordinary circumstances,’’ for Chapter grow again this year, as it has for the (2) shall be appointed by the United States 7 debtors with apparent repayment ability to last 4 years. This means more people court of appeals for the circuit in which such avoid being transferred to Chapter 13. A new Senate bill raises the minimum dol- are filing for bankruptcy now than dur- district is located.’’. ing the worst years of job losses in the (e) TRAVEL EXPENSES OF BANKRUPTCY lar amount from $5,000 to $15,000, with the ef- 1980’s. JUDGES.—Section 156 of title 28, United fect that debtors with a marginal ability to States Code, is amended by adding at the end repay won’t be swept up by the means test. Bankruptcy laws give Americans a the following: CONSUMER PROTECTIONS very special kind of protection from ‘‘(g)(1) In this subsection, the term ‘travel The new Senate bill requires the Attorney the worst form of financial distress. As expenses’— General and the FBI Director to designate a nation of immigrants, our country is S2768 CONGRESSIONAL RECORD — SENATE March 16, 1999 the very embodiment of the idea of a listen to the concerns of other Sen- unthinkable. They overturned all their fresh start. Bankruptcy protection was ators, to achieve the kind of consensus previous rulings in this matter and re- considered so important that it was that we found here in the Senate last quired Kansas natural gas producers to among the specific powers granted to year.∑ refund, plus interest, all ad valorem Congress in our Constitution. That is tax monies collected above the gas why we provide in law that no one Mr. Mr. ROBERTS (for himself price ceilings from 1988 forward. The should have to shoulder an and Mr. BROWNBACK): FERC wisely chose 1988 as the collec- unsustainable burden of debt, a burden S. 626. A bill to provide from unfair tion date based on the D.C. Circuit’s that can hurt us all by threatening the interest and penalties on refunds retro- decision date. Unfortunately, upon weakest links in our society. actively ordered by the Federal Energy challenge in 1996, the D.C. Circuit ex- But at the same time, Mr. President, Regulatory Commission; to the Com- tended the refund period to 1983. The our nation is founded on the idea of mittee on Energy and Natural Re- result is an estimated $340 million li- personal responsibility, the only foun- sources. ability due by every producer operating dation that can sustain and protect our KANSAS NATURAL GAS INDUSTRY between the years 1983 and 1988. freedom. Until recently, bankruptcy ∑ Mr. ROBERTS. Mr. President, I rise What has occurred is an atrocious was considered a stain on one’s per- today to introduce a bill of critical im- miscarriage of justice. Kansas natural sonal reputation, an admission of fail- portance to the natural gas industry in gas producers, who in their business ure, something to be avoided at all Kansas. practices relied on the rules and fol- costs. While we may sympathize with Natural gas production is an impor- lowed the orders of the FERC, were the special circumstances that can tant industry in Kansas, paying good subsequently told they had been break- throw an individual into unexpected wages to hard working Kansans and ing federal law since 1974, or for 19 hardship, Americans expect that those taxes to support county and state tax years. They were then retroactively who have the resources must meet rolls. Kansas is a national leader in found to be liable for all of the col- their financial obligations. natural gas production, and we pipe lected tax funds back to 1983. In lay- But the explosion in the number of our product all over the nation. It is an man’s terms, these producers are being personal bankruptcies, in a time of affordable, abundant and clean energy held liable for following the orders of economic prosperity, raises serious source. This bill will ensure that we the FERC. questions. Mr. President, every time can continue to produce this natural The FERC did not carry out its du- one of us fails to pay a legitimate debt, resource in Kansas. ties in a vacuum. Section 110 of the the rest of us pay a little more, because This issue is complex, full of legal- Natural Gas Policy Act clearly stated of the higher interest rates lenders ities and arcane federal policy. But I that production taxes could be added to must charge to cover their loses. When believe the crux of the matter will re- the price of gas, even if the add-on ex- the circumstances are unavoidable, and verberate throughout the Congress. ceeded national price ceilings. The when it is clear that a fresh start is de- The problem before us arises out of NGPA report language went so far as served, bankruptcy must be there for the system of federal price controls on to spell out what kind of taxes are pro- those who need it. But when those who natural gas. In 1974, natural gas pro- duction taxes, stating ‘‘The term have the ability to pay use the bank- ducers were given permission to exceed ‘‘State severance tax’’ is intended to be ruptcy system to walk away from their the national ceiling rates for gas by construed broadly. It includes any tax debts, something is wrong. the cost of any state or federal tax on It is now clear to most of us that our production. In Kansas, one such tax imposed upon mineral or natural re- bankruptcy system—and the laws that was the ad valorem tax. In 1974, the source production including an ad valo- guide it—are in serious need of reform. Federal Power Commission issued rem tax. . .’’ It is evident to me, and I Last year, in the Senate, we passed a Opinion 699–D, finding that the Kansas hope to anyone reading this, that Con- bipartisan bill by the nearly unani- ad valorem tax was a production tax el- gress included the words ‘‘ad valorem’’ mous vote of 97 to 1 to fix the problems igible for recovery. Kansas gas produc- tax for an explicit reason—because in our bankruptcy laws. While that ers, like producers in other states, were Congress intended that ad valorem proposal did not become law, we allowed to exceed the national rates by taxes were to be included in the list of reached agreement that bankruptcy re- the costs of a local production tax. taxes eligible for recovery. I have all of form—done the right way—is some- In 1978, Congress passed the Natural these documents in my possession, and thing we all can support. Gas Policy Act. That statute continued would be pleased to provide any of this Working closely with his new rank- the practice of price controls on natu- information to my colleagues. Mr. ing member, Senator TORRICELLI, Sen- ral gas, but also codified prior prac- President, we must remedy this situa- ator GRASSLEY has once again shown us tices that allowed natural gas produc- tion. Before us are the citizens of Kan- the leadership on this issue that he ers to exceed price ceilings by the costs sas, the natural gas producers, who for provided last year. I believe that we of production taxes. The newly created 19 years dutifully ran their businesses have built a foundation in this bill for Federal Energy Regulatory Commis- in compliance with federal law, and a reasonable approach, one that re- sion, the federal body charged with im- strictly followed the edicts of the Fed- stores some of the balance that has plementing federal policies in this eral Energy Regulatory Commission. been lost in recent years. To that end, field, continued the practice of allow- They had a right, indeed a responsibil- this legislation assures that those who ing Kansas producers to recover the ity, to rely on the FERC’s orders. have the ability to pay will continue to costs of the Kansas ad valorem tax. Today, they are being punished for fol- meet their obligations, and that bank- Business continued as it had since 1974. lowing these very orders. The FERC’s ruptcy is not seen as a financial plan- This practice of adding on the Kansas incompetence has caused these honest ning device, but the last resort for the ad valorem tax was challenged in 1983. citizens to be treated as criminals. most extraordinary circumstances. The FERC responded with opinions in However, it is the incompetence of the At the same time, again with the 1986 and again in 1987, stating that it is FERC that is criminal. help of Senator TORRICELLI we have ‘‘clear, beyond question,’’ that the Mr. President, I rise today to re-in- gone a long way toward addressing the Kansas ad valorem tax is a tax on pro- troduce legislation from the last Con- honest concerns that many of our col- duction and therefore, under law, eligi- gress. This bill would repeal the most leagues have expressed about the needs ble for recovery. Kansas producers had unjust aspect of this order. Requiring of those, like single parents and those clear authority to recover the costs of producers to refund these recovered who receive child support, who deserve the ad valorem tax. taxes is bad enough. However, assess- greater protection. What happened next is inexplicable. ing an interest penalty on this refund This is a tough balance to strike, and In 1988, the prior FERC decisions on order extends beyond the bounds of de- I will continue to work with Senator the Kansas ad valorem tax were chal- cency and fairness. The interest por- GRASSLEY, Senator TORRICELLIE, and lenged in court. The D.C. Circuit Court tion represents roughly two-thirds of Senator SESSIONS, and with our col- remanded the issue to the FERC. In the estimated $340 million cost to Kan- leagues on the Judiciary Committee, to 1993, five years later, the FERC did the sas producers. While the FERC had the March 16, 1999 CONGRESSIONAL RECORD — SENATE S2769 opportunity to waive the interest por- vance Planning and Compassionate Determination Act. As a result of that tion, they refused to do so. This legis- Care Act of 1999’’ with my colleague bill, hospitals, skilled nursing facili- lation is made necessary by the FERC’s from Maine, Senator COLLINS. We in- ties, home health agencies, hospice refusal to take any actions to mitigate troduce this legislation to ask Con- programs, and HMO’s participating in this harsh, retroactive and unjust deci- gress to take action that responds di- the Medicaid and Medicare programs sion. rectly and humanely to the needs of must provide every adult receiving Mr. President, I will do everything in the elderly and others during some of medical care with written information my power to push this issue through to their most difficult and traumatic concerning patient involvement in resolution. I will continue my efforts times of their lives. The time I refer to their own treatment decisions. The to encourage the Senate Energy and is the end-of-life. health care institutions must also doc- Natural Resources Committee to hold Our perceptions of illness, end-of-life ument in the medical record whether hearings on this issue, so they may care, and death are changing in re- the patient has an advance directive. hear firsthand of the events that lead sponse to advances in medical tech- In addition, States were required to us where we find ourselves today. I nology, a shift from treating acute care write descriptions of their State laws want Congress to hear from the citi- illnesses to managing chronic care con- concerning advance directives. zens of my state, the young and the ditions, improvements in palliative The first section of the Advance old, those in business and those retired, care, and a greater respect for patient Planning and Compassionate Care Act those who have money, and those liv- involvement and autonomy in end-of- instructs the Department of Health ing on a fixed income, all of whom the life decisions. and Human Services to develop appro- FERC has ordered must pay refunds Patients want to maintain a sense of priate quality measures and models of often ranging into the tens of thou- control of their lives throughout their care for persons with chronic, debili- sands of dollars. last days. But studies show that tre- tating illnesses, including the very I also believe it is time for Congress mendous variation exists in the medi- frail elderly who will comprise an in- to review the independence and power cal care that Medicare beneficiaries re- creasing number of Medicare bene- delegated to the Federal Energy Regu- ceive in the last few months of their ficiaries. latory Commission. They are unac- lives. This sort of analysis highlights The second part of our bill directs countable for their actions, unwilling that patient preferences have little to the Secretary of Health and Human to accept responsibility and unmoved do with the sort of care patients re- Services to advise Congress on an ap- by the pleas of the stakeholders in this ceive in their final months of life. proach to adopting the provisions of process. Congress entrusted oversight Where you live determines the sort of the Uniform Health Care Decisions Act and administration of federal gas pol- medical care you will receive more so for Medicare beneficiaries. The Uni- icy to the FERC. In this case, the than what you might prefer. Our bill form Health Care Decisions Act was de- FERC has failed to properly administer addresses this issue by calling for an veloped by the Uniform Law Commis- the law, and has exercised its authority evaluation of current standards of care sioners, a group with representation in an egregious and inequitable manner and promoting better communication from all States that has been in exist- inconsistent with congressional intent. between health care providers and ence for over 100 years. The Uniform Congress has a clear responsibility to their patients. Health Care Decisions Act includes all intervene in this case. Unfortunately, while people do worry the important components of model ad- Mr. President, I ask unanimous con- about end-of-life issues, the truth is vance directive legislation. A great sent that the text of this bill be printed that patients, families, and physicians deal of legal effort went into its devel- in the RECORD. have difficulty talking about them. opment, with input by all the States There being no objection, the bill was People have an endless list of reasons and approval by the American Bar As- ordered to be printed in the RECORD, as for not talking about end-of-life care, sociation. Medicare beneficiaries de- follows: for not making decisions to prepare for serve a uniform approach to advance S. 626 it. Some are afraid of jinxing them- directives, especially since many move selves by planning their end-of-life Be it enacted by the Senate and House of Rep- from one State to another while in the resentatives of the United States of America in care, and many have faith that their Medicare Program. The tremendous Congress assembled, families will know the right thing to variation in State laws that currently SECTION 1. LIABILITY OF CERTAIN NATURAL GAS do when the time comes. exists only adds to the confusion of PRODUCERS. Not talking about death does not health care professionals and their pa- The Natural Gas Policy Act of 1978 (15 stop it from occurring. We all know it tients. U.S.C. 3301 et seq.) is amended by adding at is a natural, inevitable part of life. But The third section strengthens the the end the following: by not talking about end-of-life care, previously enacted Patient Self Deter- ‘‘SEC. 603. LIABILITY OF CERTAIN NATURAL GAS we hamper our ability to learn about mination Act in the following ways: PRODUCERS. the options that are available to re- First, it requires that every Medicare ‘‘If the Commission orders any refund of lieve suffering, promote personal beneficiary have the opportunity to any rate or charge made, demanded, or re- discuss health care decision-making ceived for reimbursement of State ad valo- choice, and obtain greater care and rem taxes in connection with the sale of nat- comfort in our final months. issues with an appropriately trained ural gas before 1989, the refund shall be or- End-of-life care is a major—and grow- professional, when he or she makes a dered to be made without interest or penalty ing—issue in the future of health care. request. This measure would help make of any kind.’’.∑ Unfortunately, in recent years, debates sure that patients and their families on end-of-life care have focused almost have the ability to discuss and address By Mr. ROCKFELLER (for him- exclusively on the subject of physician- concerns and issues relating to their self, Ms. COLLINS, Mr. COCHRAN, assisted suicide. Mr. President, I have care, including end-of-life care, with a Mr. CONRAD, Mr. WYDEN, and spent considerable time delving into trained professional. Many health care Mr. JEFFORDS): the concerns and dilemmas that face institutions already have teams of pro- S. 628. A bill to amend titles XVIII patients, their family members and viders to address difficult health care and XIX of the Social Security Act to their physicians when confronted with decisions and some even mediate expand and clarify the requirements re- death or the possibility of dying. In al- among patients, families, and provid- garding advance directives in order to most all such difficult situations, peo- ers. In smaller institutions, social ensure that an individual’s health care ple are not thinking about physician- workers, chaplains, nurses or other decisions are complied with, and for assisted suicide. The needs and dilem- trained professionals could be made other purposes; to the Committee on mas that confront them have much available for consultation. Finance. more to do with the kind of care and Second, our bill requires that a per- ADVANCE PLANNING AND COMPASSIONATE CARE information they need desperately. son’s advance directive be placed in a ACT OF 1999 The legislation we are introducing prominent part of the medical record. ∑ Mr. ROCKEFELLER. Mr. President, I today builds on bipartisan legislation Often advance directives cannot even am pleased to be introducing the ‘‘Ad- enacted in 1990, called the Patient Self- be found in the medical record, making S2770 CONGRESSIONAL RECORD — SENATE March 16, 1999 it more difficult for providers to re- hope consideration of this bill will be tem serves patients at the end of their spect patients’ wishes. It is essential an opportunity to take notice of the lives. Among other provisions, the bill that an individual’s advance directive many constructive steps that can be makes a number of changes to the Pa- be readily available and visible to any- taken to address the needs of patients tient Self-Determination Act of 1990 to one involved in their health care. and family members grappling with facilitate appropriate discussions and Third, it will assure that an advance great pain and medical difficulties. individual autonomy in making dif- directive valid in one State will be During this time when physician as- ficult discussions about end-of-life valid in another State. At present, sisted suicide obtains so many head- care. For instance, the legislation re- portability of advance directives from lines, we are eager to call on Congress quires that every Medicare beneficiary State to State is not assured. Such to turn to the alternative ways of pro- receiving care in a hospital or nursing portability can only be guaranteed viding help and relief to seniors and facility be given the opportunity to through Federal legislation. other Americans who only are inter- discuss end-of-life care and the prepa- The fourth part of this legislation ested in such alternatives.∑ ration of an advanced directive with an would encourage the development of ∑ Ms. COLLINS. Mr. President, I am appropriately trained professional models for end-of-life care for Medicare pleased to be joining my colleague within the institution. The legislation beneficiaries who do not qualify for the from West Virginia, Senator ROCKE- also requires that if a patient has an Medicare hospice benefit but still have FELLER, in introducing the Advance advanced directive, it must be dis- chronic, debilitating and ultimately Planning and Compassionate Care Act, played in a prominent place in the fatal illnesses. The tremendous ad- which is intended to improve the way medical record so that all the doctors vances in medicine and medical tech- we care for people at the end of their and nurses can clearly see it. nology over the past 30 to 50 years have lives. The legislation will expand access to resulted in a greatly lengthened life ex- Noted health economist Uwe effective and appropriate pain medica- pectancy for Americans, as well as Reinhardt once observed that ‘‘Ameri- tions for Medicare beneficiaries at the vastly improved functioning and qual- cans are the only people on earth who end of their lives. Severe pain, includ- ity of life for the elderly and those believe that death is negotiable.’’ Ad- ing breakthrough pain that defies with chronic disease. Many of these ad- vancements in medicine, public health, usual methods of pain control, is one of vances have been made possible by fed- and technology have enabled more and the most debilitating aspects of termi- erally financed health care programs, more of us to live longer and healthier nal illness. However, the only pain such as the Medicare Program that lives. However, when medical treat- medication currently covered by Medi- assures access to high quality health ment can no longer promise a continu- care in an outpatient setting is that care for all elderly Americans. Medi- ation of life, patients and their fami- which is administered by a portable care has also funded much of the devel- lies should not have to fear that the pump. opment of technology and a highly It is widely recognized among physi- skilled physician workforce through process of dying will be marked by pre- cians treating patients with cancer and support of medical education and aca- ventable pain, avoidable distress, or other life-threatening diseases that demic medical centers. These advances care that is inconsistent with their val- self-administered pain medications, in- have also created major dilemmas in ues or wishes. The fact is, dying is a universal expe- cluding oral drugs and transdermal addressing terminal or potentially ter- rience, and it is time to re-examine patches, offer alternatives that are minal disease, as well as a sense of loss how we approach death and dying and equally effective in controlling pain, of control by many with terminal ill- more comfortable for the patient, and ness. how we care for people at the end of Mr. President, I am learning more their lives. Clearly, there is more that much less costly than the pump. There- and more about the importance of edu- we can do to relieve suffering, respect fore, the Advance Planning and Com- cating health care providers and the personal choice and dignity, and pro- passionate Care Act would expand public that chronic, debilitating, ter- vide opportunities for people to find Medicare to cover self-administered minal disease need not be associated meaning and comfort at life’s conclu- pain medications prescribed for the re- with pain, major discomfort, and loss sion. lief of chronic pain in life-threatening of control. We can control pain and Unfortunately, most Medicare pa- diseases or conditions. treat depression, as well as the other tients and their physicians do not cur- In addition, the legislation author- causes of suffering during the dying rently discuss death or routinely make izes the Department of Health and process. We must now apply this advance plans for end-of-life care. As a Human Services to study end-of-life knowledge to assure all Americans ap- result, about one-fourth of Medicare issues for Medicare and Medicaid pa- propriate end-of-life care. And to make funds are now spent on care at the end tients and also to develop demonstra- sure that Medicare beneficiaries are of life that is geared toward expensive, tion projects to develop models for end- able to receive the most effective medi- high-technology interventions and of-life care for Medicare beneficiaries cine to control their pain, Medicare’s ‘‘rescue’’ care. While most Americans who do not qualify for the hospice ben- coverage rules would be expanded say they would prefer to die at home, efit, but who still have chronic debili- under our bill to include coverage for studies show that almost 80 percent die tating and ultimately fatal illnesses. self-administered pain medications. in institutions where they may be in Currently, in order for a Medicare ben- Mr. President, I realize that there is pain, and where they are subjected to eficiary to qualify for the hospice bene- still a lot of work to be done. I believe high-tech treatments that merely pro- fit, a physician must document that our bill represents a significant step long suffering. the person has a life expectancy of six towards improving end-of-life care for Moreover, according to a Dartmouth months or less. With some conditions— Medicare beneficiaries. By advocating study conducted by Dr. Jack like congestive heart failure—it is dif- changes within the health care system, Wennberg, where a patient lives has a ficult to project life expectancy with research community, and national pol- direct impact on how that patient dies. any certainty. However, these patients icy, we reaffirm our commitment to The study found that the amount of still need hospice-like services, includ- quality patient care. In our legislation, medical treatment Americans receive ing advance planning, support services, we have set forth a broad framework to in their final months varies tremen- symptom management, and other serv- respond to many of the concerns facing dously in the different parts of the ices that are not currently available. people at the end-of-life. This legisla- country, and it concluded that the de- Finally, the legislation establishes a tion embodies the fundamental prin- termination of whether or not an older telephone hotline to provide consumer ciple of the Patient Self-Determination patient dies in the hospital probably information and advice concerning ad- Act—to involve patients in their own has more to do with the supply of hos- vance directives, end-of-life issues and treatment decisions and to respect and pital beds than the patient’s needs or medical decision making and directs follow their wishes when they are no preference. the Agency for Health Care Policy and longer capable of voicing them. The Advance Planning and Compas- Research to develop a research agenda To conclude, I am proud to offer this sionate Care Act is intended to help us for the development of quality meas- legislation with Senator COLLINS. We improve the way our health care sys- ures for end-of-life care. In this regard, March 16, 1999 CONGRESSIONAL RECORD — SENATE S2771

Senator ROCKEFELLER and I are par- Now more than ever this crop insur- ducers to hear first hand their concerns ticularly appreciative that Senator ance reform legislation is needed for about crop insurance. At that hearing BILL FRIST has incorporated our rec- my state’s leading industry. some of Montana’s outstanding produc- ommendation that end-of-life Mr. President, agriculture is Mon- ers shared their stories, their frustra- healthcare be added as a priority popu- tana’s leading industry. More than tions and their ideas about reforming lation in the Agency for Health Care 100,000 Montanans work in farm and the system. I would like to thank Rick Policy and Research’s overall mission ranch related jobs. That is nearly 20 Sampsen, Bill Brewer, Verg Aageson, and duties in the bipartisan legislation percent of our state’s total employ- Brian Schweitzer, Nancy Peterson, he introduced last week to reauthorize ment. In 1998, Montana agriculture Rollie Schlepp, Scott Kulbeck and the Agency. generated $2.4 billion—65 percent of our Mary Schuler for taking the time to The legislation we are introducing state’s total economy. In Montana, ag- lend their voices to this important dis- today is particularly important in riculture is not only an integral part of cussion. Their ideas are reflected in light of the current debate on physi- our economy, it’s a way of life. And this legislation today which will: cian-assisted suicide. The desire for as- that way of life is in peril. (1) Install a safety net; sisted suicide is generally driven by In 1998, Montana producers were hit (2) Allow producers to buy a policy concerns about the quality of care for hard as our ag exports dropped by $570 that covers their cost of production; the terminally ill; by the fear of pro- million, and commodities such as (3) Shorten the Actual Production longed pain, loss of dignity and emo- wheat and beef plummeted to Depres- History requirement for rotated crops; tional strain on family members. Such sion-era prices. and worries would recede and support for In response to this severe economic (4) Eliminate the Area Requirement assisted suicide would evaporate if bet- hit, we fought hard in the 105th Con- for speciality crops reliant on the Non- ter palliative care and more effective gress to install a safety net where the insured Crop Disaster Assistance Pro- pain management were widely avail- 1996 Freedom to Farm bill fell short. gram (NAP). able. With help from the White House, we Simply put, Mr. President, the Crop Mr. President, patients and their were able to get almost $8 billion in Insurance Improvement Act of 1999 families should be able to trust that emergency assistance for our producers takes decisive action to help those pro- the care they receive at the end of in Montana and across the country. We ducers who are presently in danger of their lives is not only of high quality, responded to the crisis but there’s no losing their agricultural heritage. It but also that it respects their desires assurance that we won’t be faced with provides them the flexibility to try for peace, autonomy and dignity. The the same problems each year. new and alternative crops and gives Advanced Planning and Compassionate This bill is aimed at getting Montana them the freedom to farm, as origi- nally intended, by allowing them the Care Act that Senator ROCKEFELLER producers back on their feet. We do and I are introducing today will give us that by focusing on, and fighting for chance to build up a production his- some of the tools that we need to im- agriculture, together. I sincerely hope tory, cover their cost of production, prove care of the dying in this country, that 1999 will be the ‘‘Year of Recov- and eventually purchase crop insurance and I urge all of my colleagues to join ery.’’ And I believe we can do this by coverage for their speciality crops. It us as cosponsors.∑ maintaining focus on three goals: gives producers a chance to do what We must pry open foreign markets to they do best—farm. By Mr. BAUCUS (for himself and Montana products. Mr. President, I urge all of all of my Mr. CRAIG): We must help agriculture producers colleagues to support this important S. 629. A bill to amend the Federal at home. legislation, and join Senators CRAIG Crop Insurance Act and the Agricul- We must install a permanent safety and myself in getting rural America tural Market Transition Act to provide net to help producers weather times of back on its feet.∑ for a safety net to producers through crisis. ∑ Mr. CRAIG. Mr. President, I rise cost of production crop insurance cov- By aggressively pursuing these three today to join my colleague Senator AUCUS in the introduction of legisla- erage, to improve procedures used to goals, I am confident that we can help B tion to reform the federal agricultural determine yields for crop insurance, to Montana agriculture not only recover, crop insurance program. Like legisla- improve the noninsured crop assistance but be stronger than ever before. Today, however, I would like to focus tion introduced earlier this month by program, and for other purposes; to the on the goal of installing a safety net to Senator ROBERTS, KERREY, myself, and Committee on Agriculture, Nutrition, help producers during times of crisis. others, this bill aims at bringing about and Forestry. Mr. President, no matter how well we common sense reform to the program ‘‘CROP INSURANCE IMPROVEMENT ACT OF 1999’’ are doing nationally and internation- and will assist farmers through the ∑ Mr. BAUCUS. Mr. President, I rise ally, we must be prepared for hard economic hardship they currently face. today to announce the introduction of times. In 1996, Congress passed the The bill addresses several concerns the Crop Insurance Improvement Act Freedom to Farm Act. Since then, farmers from my state and I have of 1999. Senator CRAIG and I are intro- wheat prices have fallen 55 percent. about the current crop insurance pro- ducing this bill today to provide a safe- Who could have predicted that prices gram. Specifically, I am pleased that ty net to our agricultural producers would plunge from $4.50 a bushel for the legislation includes provisions to and make rural America stronger than wheat in 1996 to $2.91 a bushel by Sep- reform the noninsured crop disaster as- ever. tember 1998? This drop, triggered by a sistance program, or NAP. NAP is used I especially would like to thank Sen- combination of natural disasters and by farmers who grow ‘‘specialty’’ or ator CRAIG’s staff, Wayne Hammon, oversupply in the marketplace, was im- ‘‘minor’’ crops across the nation. who has worked diligently with my possible to predict. Idaho’s great agricultural economy is staff in bringing together this biparti- As wheat and other agricultural com- based on minor and non-traditional san effort for agriculture. I also com- modity prices dipped to record lows, crops. We lead the nation in the pro- pliment my colleagues Senators KERRY America’s producers were suddenly duction of such crops as potatoes, win- and ROBERTS who have introduced crop stranded without a safety net, causing ter peas, and trout. Idaho is second in insurance reform legislation, of which I a severe financial crisis. This made it the production of seed peas, lentils, am also a cosponsor, for setting the clear to me that we need a contingency sugar beets, barley, and mint. Further- stage for a major overhaul of the crop plan to help us when hard times come more, we are in the top 5 states in the insurance program. This bill, the Crop so that we can continue to grow when production of hops, onions, plums, Insurance Improvement Act of 1999 is times are good. sweet cherries, alfalfa, and American designed to compliment their efforts In February I hosted a crop insurance cheese. The needs of these producers by extending the safety net to help field hearing in Shelby, Montana. Ken are just as important as those of more those producers of speciality or alter- Ackerman, Director of the Risk Man- traditional farm commodity producers. native crops who find particular chal- agement Agency traveled from Wash- I believe this bill to be an important lenges in the present system. ington, D.C. to meet with Montana pro- step toward meaningful and sweeping S2772 CONGRESSIONAL RECORD — SENATE March 16, 1999 reform and includes changes that are POISON CONTROL CENTER ENHANCEMENT AND By Mr. ASHCROFT: long overdue. I look forward to work- AWARENESS ACT OF 1999 S. 633. A bill to amend title II of the ing with my colleagues on the Senate ∑ Mr. DEWINE. Mr. President, today I Social Security Act to require that in- Agricultural Committee to enact these rise to introduce the Poison Control vestment decisions regarding the social important reforms and give farmers Center Enhancement and Awareness security trust funds be made on the the risk management tools they need.∑ Act of 1999. These poison control cen- basis of the best interests of bene- ters need our help. The unstable ficiaries, and for other purposes; to the By Mr. DEWINE (for himself, Mr. sources of funding for these centers Committee on Finance. BROWNBACK, Mr. BINGAMAN, Mr. have resulted in many of them having THE SOCIAL SECURITY TRUST FUND INOUYE, Mr. LEVIN, Mr. HOL- to close. This unfortunate decline can MANAGEMENT ACT OF 1999 LINGS, and Mr. DURBIN): be reversed and cost savings can be Mr. ASHCROFT. Mr. President, there S. 631. A bill to amend the Social Se- achieved by the efficient use of these is no more worthy government obliga- curity Act to eliminate the time limi- centers. I would like to thank my col- tion than ensuring that those who paid tation on benefits for immuno- league, Senator ABRAHAM, for his ef- a lifetime of Social Security taxes will suppressive drugs under the medicare forts on behalf of this bill and I’d also receive their full Social Security bene- program, to provide continued entitle- like to thank my colleagues on the fits. Social Security is our most impor- ment for such drugs for certain individ- Congressional Prevention Coalition, tant social program, a contract be- uals after medicare benefits end, and to Senators CHAFEE and GRAHAM of Flor- tween the government and its citizens. extend certain medicare secondary ida, for their support of this legisla- Americans, including one million Mis- payer requirements; to the Committee tion. sourians, depend on this commitment. on Finance. This bill establishes and authorizes Unfortunately, as you know, the So- IMMUNOSUPPRESSIVE DRUG COVERAGE ACT OF funding for a national toll-free number cial Security system is facing some 1999 to ensure that all Americans have ac- long-term difficulties. While the Trust Funds are currently building up ∑ Mr. DEWINE. Mr. President, for quite cess to poison control center services. some time, I have worked with the This number will be automatically healthy surpluses—$127 billion in FY organ and tissue donation community routed to the center designated to 99—by 2013 these surpluses will dis- to help educate others about donation cover the caller’s region. By having to appear, and by 2032 the system is facing and transplant issues. With each organ only remember one national phone bankruptcy. With this impeding crisis in mind, I that is successfully transplanted, a gift number, parents will be able to call have embarked on a serious examina- of new life is given to the recipient. this number in the event their child ac- tion of the Social Security system. I Today I rise to offer the Immuno- cidentally swallows a poisonous sub- have spent many hours in the last few suppressive Drug Coverage Act of 1999 stance while they are away from home months, analyzing the history and to help ensure that those receiving on vacation, and be routed to the clos- workings of this important program, in Medicare covered transplants will be est poison control center for treatment order to figure out how we can make able to afford the drugs necessary to advice. This system will improve ac- this program work better. cess to poison control center services keep their bodies from rejecting their The result of this effort has been a for everyone. It will simplify efforts to new organs. The current 36-month package of important reforms designed Medicare coverage limit is arbitrary, educate parents and the public about to protect Social Security. This pack- and frankly, sorely inadequate. We are what to do in the event of a poisoning age is designed to protect Social Secu- not talking about a car lease, but exposure. rity but, more importantly, it is de- Each year, more than 2 million poi- about a new lease on life. This coverage signed to protect the American peo- soning are reported to poison control can mean the difference between life ple—from debt, from risky, unwise in- centers throughout the United States. and death for some, and at the very vestments, from policies that unfairly More than 90% of these poisonings hap- least, the difference between a Medi- deny Social Security to some seniors care transplant recipient having to ex- pen in the home—and over 50 percent of who choose to work after retirement, perience the pain of an organ rejection, poisoning victims are children under 6 and from attempts to use our retire- a return to dialysis—for kidney recipi- years of age. By providing expert ad- ment dollars on spending purposes ents—and the return to a very long vice to distraught parents, babysitters, other than Social Security. The Social waiting list for another organ. poisoning victims, and health care pro- Security system has some imperfec- These organs are a precious invest- fessionals, poison control centers de- tions that now make our long-term sit- ment, and it simply defies logic that crease the severity of illness and pre- uation worse than it should be, and my Medicare covers the initial transplant, vent deaths. package is designed to improve the sys- the life-long extensive medical treat- These centers serve cost-effective tem in the near term, so that we can ment that is needed if the organ is re- public health services. For every dollar begin the important work of reforming jected, and a second transplant (if that spent on poison control center services, Social Security for the long term. person is fortunate enough to find a $7 in medical costs are saved by reduc- One of the points I have already in- second organ)—but not the drugs that ing the inappropriate services. Most troduced. Last week, I introduced the can help prevent the rejection of the importantly, we can save lives by en- Protect Social Security Benefits Act. initial transplanted organ beyond 36 suring that stabilizing funding sources This legislation will prevent surpluses months. Many Medicare transplant re- for these centers. My home state of in the Social Security Trust Funds cipients are not able to afford these im- Ohio, for example, has 3 poison control from financing deficits in the rest of munosuppressive drugs, so they may centers—one in Columbus, Cincinnati, the federal budget. Social Security ration their use of the drugs or they and Cleveland—that rely on an uncer- should not finance irresponsible spend- may stop taking them altogether. Let’s tain patchwork of federal, state, local, ing or tax cuts that are not otherwise give them a third alternative—to keep and private funding sources. The fed- paid for. No rules now stop deficit taking the drugs and to keep their or- eral dollars that will be provided by budgets from being considered. That gans.∑ this legislation may be used to supple- must end. ment, NOT replace, existing federal, In addition to the problem of the By Mr. DEWINE (for himself, Mr. state, local, and private funds that are misdirection of Social Security’s sur- ABRAHAM, Mr. CHAFEE, Mr. invested in these centers. For those pluses, I also want to improve the way GRAHAM, Mr. BOND, Mr. DOMEN- states that have recently experienced the funds are handled. There is no get- ICI, Mr. KENNEDY, Mr. DURBIN, the closure of the only existing poison ting around the fact that a key to the Mr. BURNS, and Mr. DODD): control center in the area, this grant long-term solvency of Social Security S. 632. A bill to provide assistance for funding can be used to open a new cen- is how the current mushrooming Social poison prevention and to stabilize the ter—provided it can meet certification Security Trust Funds Management funding of regional poison control cen- requirements. It is essential for us to Act, which focuses on how the current ters; to the Committee on Health, Edu- act now to prevent further closures of Social Security surplus is invested and cation, Labor, and Pensions. such valuable resources.∑ managed. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2773 The bill requires the Secretary of the Fund, all [$857] billion or so of it, fits duciary duty to act on behalf of the in- Treasury, the Managing Trustee of So- readily in four ordinary brown, accor- tended beneficiary, and exercises a cial Security, to consult with the So- dion-style folders that one can easily heightened standard of care in manage- cial Security Commissioner before de- hold in both hands. The 174 certificates ment decisions and actions. cisions are made about investing the reside in a plain combination-lock fil- Second, although Social Security is Social Security trust funds. This addi- ing cabinet on the third floor of the bu- an independent agency, the Secretary tional step will preserve the independ- reau’s office building.’’ of Treasury retains sole authority to ence of Social Security and make sure The placement of all of these funds invest Social Security surpluses. There investment decisions are based on the into nonmarketable government secu- is a conflict of responsibilities held by best interest of paying current and fu- rities raises some questions about the the Secretary of Treasury in his dual ture benefits. Currently, the Secretary law that governs the management of capacity as Managing Trustee of Social of the Treasury, who is by law the Social Security money. Under current Security. Presumably, the Trustee is Managing Trustee, has the sole author- law, Social Security is now an inde- to invest those funds as securely as ity to invest Social Security surpluses, pendent agency. Its Board of Trustees possible, but also with the highest pos- although the law limits that authority oversees the financial operations of So- sible rate of return. The role of the to two types of government debt. No- cial Security. This Board is composed Secretary of the Treasury is to manage where in current law is the Managing of six members: The Secretaries of the finances of the United States Gov- Trustee or the Board of Trustees or the Treasury, Labor, Health and Human ernment, minimizing, to the extent Social Security Commissioner directed Services, the Commissioner of Social possible, the interest charges that the to make investment decisions on the Security and two members of the pub- government has to pay in the long run. basis of protecting current and future lic nominated by the President and The problem is that the interest re- ceived by the trust fund is also interest benefits. Making sure that we can pay confirmed by the Senate. This Board that must be paid by the Treasury. If benefits now and in the future should reports annually to Congress on the fi- the Managing Trustee is maximizing be the highest priority. My bill adds nancial status of the Trust Funds. The Social Security’s returns, he may not this important change to the law. Secretary of Treasury is the Managing be minimizing the Treasury’s interest The Social Security Trust Funds Trustee. The Managing Trustee has obligations. And if he is minimizing Management Act explicitly forbids So- sole authority to invest the surplus the Treasury’s interest obligations, he cial Security Trust Funds from being trust funds not needed to pay current may not be maximizing the returns for invested in the stock market. Chair- benefits. As for the investment of the the Social Security Trust Funds. man Alan Greenspan says that invest- fund, while the Managing Trustee is re- The Social Security Trust Funds ing Social Security funds in the mar- sponsible for the investment, his in- Management Act is designed to resolve ket is bad for Social Security and bad vestment options are limited by law to this inherent conflict, and still be con- for our economy. When Alan Greenspan two types of Federal Government debt sistent with the principle that Social talks, Congress ought to listen. The securities. Security is distinct from the Federal federal government should not own The law directs the Managing Trust- Government generally. The Act re- corporate stocks and bonds. The gov- ee to invest the surplus in ‘‘special quires the Secretary of the Treasury to ernment must not have undue influ- issue non-marketable’’ federal debt ob- consult with the Social Security Com- ence over the market. In addition, hav- ligations, except where he determines missioner before investment decisions ing the government put Social Secu- that the purchase of ‘‘marketable secu- are made. If the Social Security Com- rity taxes in the stock market adds rities is ‘‘in the public interest,’’ not missioner disagrees with investment risk to retirement, and that is a gam- Social Security’s interest. Sadly, it is decisions made by the Secretary, he or ble I am unwilling to make for the one all too easy to think of times when an she must notify the President and Con- million Missourians who now rely on administration strapped for funds gress immediately in writing. Social Security. The Social Security might use this power to act in the pub- Some experts believe that in some Trust Funds Management Act legis- lic interest, and not in the interest of years and in certain market conditions lates that government will not gamble Social Security. It‘s even happened re- it is preferable for the Trust Funds to with Social Security in the stock mar- cently. In 1995, the Clinton Administra- buy marketable securities rather than ket. tion used Federal employee pension non-market securities. A leading Mis- In addition, the bill requires Social funds to prevent the government from souri investment firm, Edward Jones, Security to provide upon request—and, breaching the debt limit during the says the following: as soon as secure enough to ensure con- two week Government shutdown. Edward Jones believes that this idea has fidentiality, over the Internet—more Right now, about 99% of the securi- merit because it provides additional flexibil- detailed information about individuals’ ties in the trust funds are special issue ity to the management of the federal debt. contribution levels and rates of return. non-marketable securities, and about The use of marketable securities would not Let me explain the reasons for these 1% are marketable securities. These only increase liquidity, but also would make three provisions. two types of bonds are similar in that bond swaps possible (the exchange of one In order to understand the invest- they both represent government debt. bond issue for another) which could better ment of the Social Security Trust facilitate management of the debt. It also They differ in that non-marketable se- could reduce interest payments by targeting Funds, we must first answer the ques- curities are available only to the trust specific securities when market conditions tion, Where is the Social Security sur- funds and not to the public and they dictate. plus? This question helps us under- pay a rate of interest that is calculated Under the Social Security Trust stand what the Social Security surplus and set in law. Marketable securities, Funds Management Act, the Commis- is, and is not. In truth, the Trust Funds in contrast, are sold to the public at sioner of Social Security could so ad- have no money, only interest-bearing auction and pay the prevailing yield as vise the Treasury Secretary. If the notes. It would be foolish to have determined by the marketplace. Treasury Secretary does not accept the money in the trust fund that earned no This review of current law highlights recommendation of the Social Security interest or had no return. In return for three important points. Commissioner, the Commissioner has the Social Security notes, Social Secu- First, nowhere in current law is the the duty to inform both the President rity taxes are sent to the U.S. Treasury Managing Trustee or the Board of and to Congress. and mingled with other government Trustees or the Social Security Com- These investment issues take on revenues, where the entire pool of cash missioner directed to make investment greater importance in the context of pays the government’s day-to-day ex- decisions on the basis of how to best the President’s proposal to allow, for penses. While the Trust Funds records protect payment of current and future the first time in the history of Social now show a total of $857 billion in the benefits, taking risk into account. This Security, as much as $700 billion in So- fund, these assets exist only in the is unacceptable. The Social Security cial Security funds to be invested in form of government securities, or debt. Trust Funds Management Act changes the stock market by the Government. According to the Washington Post, this. This change is consistent with the The legislation I am proposing reaf- ‘‘The entire Social Security Trust legal concept that a trustee owes a fi- firms current law, making explicit S2774 CONGRESSIONAL RECORD — SENATE March 16, 1999 what is now implicit that this kind of a business perspective, would the SEC. 2. INVESTMENT OF THE FEDERAL OLD-AGE governmental meddling into private owner of a corporation feel comfortable AND SURVIVORS INSURANCE TRUST FUND AND THE FEDERAL DISABIL- markets is forbidden. Federal Reserve if the government were the primary ITY INSURANCE TRUST FUND. Chairman Alan Greenspan says this shareholder?’’ Todd Lawrence under- (a) IN GENERAL.—Section 201(d) of the So- idea is bad for Social Security and bad stands what President Clinton does cial Security Act (42 U.S.C. 401(d)) is amend- for our economy. As I said before, when not. No corporation would want the ed to read as follows: Chairman Greenspan talks, Congress government as a shareholder, and no ‘‘(d)(1) Subject to paragraphs (2) and (3), it ought to listen. Chairman Greenspan shall be the duty of the Managing Trustee to investor should want the government invest such portion of the Trust Funds as is has said this plan ‘‘will create a lower handling their investment. not, in the judgment of the Trustee, required rate of return for Social Security re- The last provision of my bill gives to meet current withdrawals. The Managing cipients,’’ and he ‘‘does not believe Americans more information about Trustee may purchase interest-bearing obli- that it is politically feasible to insu- how much they can expect to receive gations of the United States or obligations late such huge funds from a govern- from the Social Security system. While guaranteed as to both principal and interest mental direction.’’ The last thing this the Social Security Administration al- by the United States, on original issue or at the market price. country needs is the Federal Govern- ready provides helpful and comprehen- ‘‘(2)(A) If the Managing Trustee, after con- ment directing the investment of So- sive information about future benefits, sultation with the Commissioner of Social cial Security funds based on some it does not provide much information Security, determines that the purchase of trendy politically-driven notion of about its costs or its rate of return. obligations issued in accordance with para- which industries or which countries are While the Social Security’s current graph (4) is in the best interest of paying in political favor at the moment. practice of providing benefit informa- current and future benefits under this title, and will not jeopardize the payment of such The Government’s putting Social Se- tion is useful, it is not enough. curity taxes in the stock market adds benefits, the Managing Trustee may pur- It is not fair to ask Americans to chase such obligations. risk to retirement and is a gamble I am plan for retirement and not tell them ‘‘(B) If the Commissioner of Social Secu- unwilling to make for one million Mis- the actual cost or the opportunity rity does not concur with the investment de- sourians who get Social Security. This costs of those benefits. As the Amer- cisions of the Managing Trustee, or believes legislation puts Congress on record ican people consider that further steps that other investment strategies are appro- priate, the Commissioner shall promptly so that Government will not gamble So- are necessary to reform Social Secu- cial Security in the stock market. inform the President and Congress in writ- rity, they are entitled to accurate in- ing. While I understand the impulse to har- formation about how well their Social ‘‘(3) In investing contributions made to the ness the great potential of the stock Security investments are doing. Trust Funds, the Managing Trustee may not market, significant government in- This legislation would address this invest such contributions in private finan- volvement in the stock market could problem by requiring the Social Secu- cial markets. Neither the Managing Trustee tend toward economic nationalization, nor any other officer or employee of the Fed- rity Administration, upon request, to eral Government shall direct private pension excess government involvement in pri- provide individuals’ own rate of return vate financial markets, and short- plans as to what type of investments to information, and to make such infor- make or in which financial markets to in- term, politically motivated investment mation available over the Internet as vest. decisions that could diminish Social soon as it is sufficiently secure to en- ‘‘(4) The purposes for which obligations of Security’s potential rate of return. sure beneficiary confidentiality. Amer- the United States may be issued under chap- This scheme is dangerous. Imagine, if ter 31 of title 31, United States Code, are icans need to know the rate of return you will, what would happen if the gov- hereby extended to authorize the issuance at on Social Security. This information is ernment had $2.7 billion in the market par of public-debt obligations for purchase vital for Americans in order for them on Black Monday, October 19, 1987, by the Trust Funds. Such obligations issued to make the right decisions about their when the stock market lost 22% of its for purchase by the Trust Funds shall have own financial futures, as well as the fu- maturities fixed with due regard for the value. The trust fund’s owners—Ameri- ture of the Social Security program. needs of the Trust Funds and shall bear in- ca’s current and future retirees—would The Social Security Trust Funds terest at a rate equal to the average market have lost a collective total of $633 bil- Management Act is designed to protect yield (computed by the Managing Trustee on lion. Imagine seniors who depend on the basis of market quotations as of the end the Social Security Trust Funds. More Social Security watching TV news of of the calendar month next preceding the importantly, it is designed to protect the stock market collapse, wondering, date of such issue) on all marketable inter- the American people—from conflicts of even fearing, if their Social Security est-bearing obligations of the United States interest, from bad investments, from then forming a part of the public debt which was in danger. While individuals prop- misinformation, and from attempts to are not due or callable until after the expira- erly manage their financial portfolios place the Trust Funds in risky and in- tion of four years from the end of such cal- to control risk, the government has no appropriate investments. While I value endar month; except that where such aver- business taking these gambles with the the Social Security system, I value the age market yield is not a multiple of one- people’s money. eighth of 1 percent, the rate of interest of Even President Clinton has expressed American people, people like Todd such obligations shall be the multiple of one- skepticism with this idea. In Albuquer- Lawrence and the four million other eighth of 1 percent nearest such market que last year, the President said the Missourians who either pay into the yield. Each obligation issued for purchase by following: ‘‘I think most people just Social Security system or receive So- the Trust Funds under this subsection shall be evidenced by a paper instrument in the think if there is going to be a risk cial Security benefits, more. My pri- mary responsibility is to them. My form of a bond, note, or certificate of indebt- taken, I’d rather take it than have the edness issued by the Secretary of the Treas- government take it for me.’’ He was plan to protect the Social Security sys- tem will protect the American people ury setting forth the principal amount, date right then, and he is wrong now. While of maturity, and interest rate of the obliga- Americans should invest as much as first, and I will work to make sure that tion, and stating on its face that the obliga- they can afford in private equities to this package becomes law. tion shall be incontestable in the hands of plan for their own retirements, the Mr. President, I ask unanimous con- the Trust Fund to which it is issued, that the government should stay out of the sent that the text of the bill be printed obligation is supported by the full faith and credit of the United States, and that the stock market. in the RECORD. There being no objection, the bill was United States is pledged to the payment of I recently received a letter from the obligation with respect to both principal ordered to be printed in the RECORD, as Todd Lawrence of Greenwood, Mis- and interest.’’. souri, who wrote: ‘‘It has been sug- follows: (b) EFFECTIVE DATE.—The amendment gested that the government would in- S. 633 made by subsection (a) shall take effect on vest in the stock market with my So- Be it enacted by the Senate and House of Rep- the date of enactment of this Act. cial Security money. No offense, but resentatives of the United States of America in SEC. 3. INFORMATION REQUIREMENTS FOR SO- Congress assembled, CIAL SECURITY ACCOUNT STATE- there is not much that the Government MENTS. touches that works well. Why would SECTION 1. SHORT TITLE. (a) IN GENERAL.—Section 1143(a) of the So- making MY investment decisions for This Act may be cited as the ‘‘Social Secu- cial Security Act (42 U.S.C. 1320b–13(a)) is me be any different. Looking at it from rity Trust Funds Management Act of 1999’’. amended— March 16, 1999 CONGRESSIONAL RECORD — SENATE S2775 (1) in paragraph (2)— ‘‘(i) the balance of the trust fund accounts ing assembly equipment; to the Com- (A) in subparagraph (B), by inserting ‘‘, in- as of the end of the month preceding the date mittee on Finance. cluding a separate estimate of the amount of of the statement; THE PRINTED CIRCUIT INVESTMENT ACT OF 1999 interest earned on the contributions,’’ after ‘‘(ii) the annual estimated balance of the Mr. MACK. Mr. President, today, ‘‘disability insurance’’; trust fund accounts for each of the succeed- (B) in subparagraph (C)— ing 30 years; and along with Senators GRAMS, (i) by inserting ‘‘, including a separate esti- ‘‘(iii) the assumptions used to provide the LIEBERMAN, and KYL, I introduce the mate of the amount of interest earned on the information described in clauses (i) and (ii), Printed Circuit Investment Act of 1999. contributions,’’ after ‘‘hospital insurance’’; including the rates of return and the nature This bill would allow manufacturers of and of the investments of such trust fund ac- printed wiring boards and printed wir- (ii) by striking ‘‘and’’ after the semicolon; counts; and ing assemblies, known as the electronic (C) in subparagraph (D), by striking the pe- ‘‘(K) a simple 1-page summary and com- interconnection industry, to depreciate riod at the end and inserting a semicolon; parison of the information that is provided their production equipment in 3 years (D) by redesignating subparagraphs (A), to an eligible individual under subpara- rather than the 5 year period under (B), (C), and (D) as subparagraphs (B), (C), graphs (G), (H), and (I).’’; and current law. (2) by striking paragraph (3) and inserting (D), and (E), respectively; As we approach the 21st century, our (E) by inserting after the matter preceding the following: ‘‘(3) The estimated amounts required to be Nation’s Tax Code should not stand in subparagraph (B), as redesignated by sub- the way of technological progress. paragraph (D), the following: provided in a statement under this section ‘‘(A) the name, age, gender, mailing ad- shall be determined by the Commissioner Printed wiring boards and assemblies dress, and marital status of the eligible indi- using a general methodology for making are literally central to our economy, as vidual;’’; such estimates, as formulated and published they are the nerve centers of nearly (F) by adding at the end the following: at the beginning of each calendar year by the every electronic device from ‘‘(F) the total amount of the employer and Board of Trustees of the trust fund accounts. camcorders and televisions to medical employee contributions for the eligible indi- A description of the general methodology devices, computers and defense sys- vidual for old-age and survivors insurance used shall be provided to the eligible individ- tems. But the Tax Code places U.S. ual as part of the statement required under benefits, as of the end of the month preced- manufacturers at the disadvantage rel- ing the date of the statement, in both actual this section. ‘‘(4) The Commissioner of Social Security ative to their Asian competitors, be- dollars and dollars adjusted for inflation; cause of different depreciation treat- ‘‘(G) the projected value of— shall notify an individual who receives a so- ‘‘(i) the aggregate amount of the employer cial security account statement under this ment. This disadvantage is particularly and employee contributions for old-age and section that the individual may request that difficult for U.S. firms to bear, as the survivors insurance benefits that are ex- the information described in paragraph (2) be interconnection industry consists over- pected to be made by or on behalf of the indi- determined on the basis of relevant informa- whelmingly of small firms that cannot vidual prior to the individual attaining re- tion provided by the individual, including in- easily absorb the costs inflicted by an tirement age, in both actual dollars and dol- formation regarding the individual’s future irrationally-long depreciated schedule. lars adjusted for inflation; income, marital status, date of retirement, As technology continues to advance ‘‘(ii) the annual amount of old-age and sur- or race. ‘‘(5) For purposes of this section— at light speed, the exhilaration of com- vivors insurance benefits that are expected ‘‘(A) the term ‘dollars adjusted for infla- petition in a dynamic market is damp- to be payable on the eligible individual’s ac- tion’ means— ened by the effects of a tax code that count for a single individual and for a mar- ‘‘(i) dollars in constant or real value terms ried couple, in dollars adjusted for inflation; has not kept pace with these changes. on the date on which the statement is issued; ‘‘(iii) the total amount of old-age and sur- Obsolete interconnection manufactur- and vivors insurance benefits payable on the eli- ing equipment is kept on the books ‘‘(ii) an amount that is adjusted on the gible individual’s account for the individ- long after this equipment has gone out basis of the Consumer Price Index. ual’s life expectancy, in dollars adjusted for the door. Companies with the competi- ‘‘(B) the term ‘eligible individual’ means inflation, identifying— an individual who— tive fire to enter such a rapidly-evolv- ‘‘(I) the life expectancy assumed; ‘‘(i) has a social security account number; ing industry must constantly invest in ‘‘(II) the amount of benefits received on ‘‘(ii) has attained age 25 or over; and new state-of-the art equipment, replac- the basis of each $1 of contributions made by ‘‘(iii) has wages or net earnings from self- ing obsolete equipment every 18 to 36 or on behalf of the individual; and employment; and ‘‘(III) the projected annual rate of return months just to remain competitive. ‘‘(C) the term ‘trust fund account’ means— for the individual, taking into account the U.S. investments in new printed wiring ‘‘(i) the Federal Old-Age and Survivors In- date on which the contributions are made in board and assembly manufacturing surance Trust Fund; and the eligible individual’s account and the date equipment have nearly tripled since ‘‘(ii) the Federal Disability Insurance on which the benefits are paid; 1991—growing from $847 million to an Trust Fund.’’. ‘‘(iv) the total amount of old-age and sur- (b) MANDATORY PROVISION OF STATEMENTS estimated $2.4 billion. vivors insurance benefits that would have ac- THROUGH MEANS SUCH AS THE INTERNET.— But this investment is taxed at an cumulated on the eligible individual’s ac- Section 1143(c)(2) of the Social Security Act artificially-high rate, because deduc- count on the date on which the individual at- (42 U.S.C. 1320b–13(c)(2)) is amended— tions for the cost of the equipment are tains retirement age if the contributions for (1) in the first sentence, by inserting spread over a period that is several such individual had been invested in Treas- ‘‘(which shall include the Internet as soon as ury 10-year saving bonds at the prevailing in- years longer than justified. The indus- the Commissioner of Social Security deter- terest rate for such bonds as of the end of the try is at the mercy of tax laws passed mines that adequate measures are in place to month preceding the date of the statement, in the 1980s, which were based on 1970s- protect the confidentiality of the informa- and, alternatively, in the Standard and era electronics technology. It is no tion contained in the statement)’’ before the Poor’s 500, or an equivalent portfolio of com- period; and wonder that the market share of U.S. mon stock equities that are based on a broad (2) by striking the second and third sen- interconnection companies has been index of United States market performance, tences. cut in half over this period. Our Tax in dollars adjusted for inflation, (c) TECHNICAL AMENDMENT.—Section 1143 of Code should not continue to undermine identifying— the Social Security Act (42 U.S.C. 1320b–13) is the competitiveness of American busi- ‘‘(I) the date of retirement assumed; amended by striking ‘‘Secretary’’ each place nesses. The opportunity is before us to ‘‘(II) the interest rate used for the projec- it appears and inserting ‘‘Commissioner of tion; and correct the tax laws that dictate how Social Security’’. rapidly board manufacturers and elec- ‘‘(III) the amount that would be received (d) EFFECTIVE DATE.—The amendments on the basis of each $1 of contributions made made by this Act shall apply to statements tronic assemblers can depreciate equip- by or on behalf of the individual; provided for fiscal years beginning with fis- ment needed to fabricate and assemble ‘‘(H) the average annual rate of return, ad- cal year 2000. circuit boards. justed for inflation, on the Treasury 10-year The Printed Circuit Investment Act saving bond as of the date of the statement; By Mr. MACK (for himself, Mr. of 1999 will provide modest tax relief to ‘‘(I) the average annual rate of return, ad- GRAMS, Mr. LIEBERMAN, and Mr. the electronics interconnection indus- justed for inflation, on the Standard and Poor’s 500, or an equivalent portfolio of com- KYL): try and the 250,000 Americans, residing mon stock equities that are based on a broad S. 635. A bill to amend the Internal in every state in the Union, whose jobs index of United States market performance, Revenue Code of 1986 to more accu- rely on the success of this industry. for the preceding 25 years; rately codify the depreciable life of This industry should get fair and accu- ‘‘(J) a brief statement that identifies— printed wiring board and printed wir- rate tax treatment. S2776 CONGRESSIONAL RECORD — SENATE March 16, 1999 Mr. President, I ask unanimous con- arms, prohibiting firearms sales to fel- for sale on ‘‘gun show’’ web-sites from sent that the text of the bill be printed ons and minors, and prohibiting the di- shipping firearms sold as a result of in the RECORD. rect shipment of firearms to unlicensed being listed on such web-sites to any- There being no objection, the bill was persons. one other than the web-site operator. ordered to be printed in the RECORD, as Last month, eBay—a popular on-line follows: auction site that had allowed users to Certainly, there is much to embrace S. 635 list firearms for sale—changed its pol- about the Internet. It facilitates com- Be it enacted by the Senate and House of Rep- icy to prohibit auctions selling fire- mercial competition and places a resentatives of the United States of America in arms, explaining: ‘‘The current laws wealth of valuable and formerly inac- Congress assembled, governing the sale of firearms were cessible information at the fingertips SECTION 1. SHORT TITLE. created for the non-Internet sale of of computer users. But as we praise This Act may be cited as the ‘‘Printed Cir- firearms. These laws may work well in this important new medium of commu- cuit Investment Act of 1999’’. the real world, but they work less well nication and commerce, we cannot af- SEC. 2. 3-YEAR DEPRECIABLE LIFE FOR PRINTED for the on-line trading of firearms, WIRING BOARD AND PRINTED WIR- ford to ignore its potential for facili- ING ASSEMBLY EQUIPMENT. where the seller and the buyer rarely tating illegal and dangerous conduct. I meet face-to-face. The on-line seller (a) IN GENERAL.—Subparagraph (A) of sec- believe that the Internet Gun Traffick- tion 168(e)(3) of the Internal Revenue Code of cannot readily guarantee that the 1986 (relating to classification of property) is buyer meets all the qualifications and ing Act of 1999 is a measured and ap- amended by striking ‘‘and’’ at the end of complies with the laws governing the propriate response to the challenges clause (ii), by striking the period at the end sale of firearms.’’ posed by the Internet to the enforce- of clause (iii) and inserting ‘‘, and’’, and by The Internet Gun Trafficking Act of ment of federal firearms laws. I ask adding at the end the following new clause: ‘‘(iv) any printed wiring board or printed 1999 would end the unlicensed sale of unanimous consent that the text of the wiring assembly equipment.’’ firearms using the Internet. bill be printed in the RECORD. First, it would require anyone who (b) 3-YEAR CLASS LIFE.—Subparagraph (B) There being no objection, the bill was of section 168(g)(3) of such Code is amended operates an Internet web-site which of- by inserting after the item relating to sub- fers firearms for sale or otherwise fa- ordered to be printed in the RECORD, as paragraph (A)(iii) the following new item: cilitates the sale of firearms posted or follows: ‘‘(A)(iv) ...... 3’’. listed on the web-site to become a fed- S. 637 (c) EFFECTIVE DATE.—The amendments erally licensed firearms manufacturer, made by this section shall apply to equip- importer, or dealer. Currently, persons Be it enacted by the Senate and House of Rep- ment placed in service after the date of the who operate web-sites that post classi- resentatives of the United States of America in Congress assembled, enactment of this Act. fied advertisements for the sale of hun- SECTION 1. SHORT TITLE. By Mr. SCHUMER: dreds of firearms need not be licensed S. 637. A bill to amend title 18, under federal law, even though such This Act may be cited as the ‘‘Internet United States Code, to regulate the sales may be intricately linked to their Gun Trafficking Act of 1999’’. trade or business and provide them transfer of firearms over the Internet, SEC. 2. REGULATION OF INTERNET FIREARMS and for other purposes; to the Commit- with substantial profits. Requiring TRANSFERS. these persons to secure a federal fire- tee on the Judiciary. (a) PROHIBITIONS.—Section 922 of title 18, arms license would, among other THE INTERNET GUN TRAFFICKING ACT OF 1999 United States Code, is amended by inserting ∑ Mr. SCHUMER. Mr. President, today things, enable them to more actively after subsection (y) the following: I am introducing the Internet Gun monitor firearms transactions facili- tated by their web-sites. ‘‘(z) REGULATION OF INTERNET FIREARMS Trafficking Act of 1999. The Act would Second, it would require anyone who TRANSFERS.— plug a gaping loophole in the enforce- operates an Internet web-site which of- ‘‘(1) IN GENERAL.—It shall be unlawful for ment of federal firearms laws—the any person to operate an Internet website, if fers firearms for sale or otherwise fa- a purpose of the website is to offer 1 or more ability of felons and minors to find cilitates the sale of firearms posted or guns for sale on-line and illegally ac- firearms for sale or exchange, or is to other- listed on the web-site to notify the Sec- wise facilitate the sale or exchange of 1 or quire those guns without detection. retary of the Treasury of the address of The Internet affords computer more firearms posted or listed on the the web-site. This requirement aims to website, unless— users—including children and felons— facilitate necessary law enforcement ‘‘(A) the person is licensed as a manufac- easier-than-ever access to individuals investigations of Internet firearms turer, importer, or dealer under section 923; offering firearms for sale. It also facili- sales. ‘‘(B) the person notifies the Secretary of tates firearms transactions in which Third, it would require anyone who the Internet address of the website, and any sellers and buyers need not meet face- operates an Internet web-site which other information concerning the website as to-face. For these reasons, individuals posts or lists firearms for sale on be- the Secretary may require by regulation; who are legally prohibited from pur- half of other persons to serve as a and ‘‘(C) if any firearm posted or listed for sale chasing or selling firearms can turn to ‘‘middleman’’ for any resulting gun the Internet to find others willing to or exchange on the website is not from the transactions. Under the bill, the web- business inventory or personal collection of engage in gun transactions with site operators in question would do this that person— them—either knowing or not knowing by, first, prohibiting the posting of in- ‘‘(i) the person, as a term or condition for of the illegality of such transactions. formation on these sites that would en- posting or listing the firearm for sale or ex- Unlike firearms sales at gun dealer- able prospective firearms sellers and change on the website on behalf of a prospec- ships and even gun shows, illegal Inter- buyers to contact one another directly tive transferor, requires that, in the event of net firearms sales occur ‘‘sight un- (such as phone numbers or e-mail ad- any agreement to sell or exchange the fire- seen,’’ thus presenting significant en- dresses), and thus bypass involvement arm pursuant to that posting or listing, the forcement challenges for federal, state firearm be transferred to that person for dis- by web-site operators, and, second, re- position in accordance with clause (iii); and local authorities. quiring that all firearms sold as a re- In particular, a number of Internet ‘‘(ii) the person prohibits the posting or sult of being listed on their web-sites listing on the website of any information (in- web-sites are designed specifically to be shipped to them, as federally li- cluding any name, nickname, telephone allow individuals who are not licensed censed firearms dealers, rather than di- number, address, or electronic mail address) firearms dealers to offer their firearms rectly to the buyers. Once the operator that is reasonably likely to enable the pro- for sale. These individuals post phone of the web-site received a firearm from spective transferor and prospective trans- numbers or e-mail addresses by which the seller, it would have to comply feree to contact one another directly prior to potential buyers may contact them. with federal firearms laws in transfer- the shipment of the firearm to that person Unfortunately, the operators of these ring the firearm to the buyer, includ- under clause (i), except that this clause does web-sites do not monitor the inter- not include any information relating solely ing laws requiring that firearms be to the manufacturer, importer, model, cali- actions between firearms sellers and shipped to a licensed dealer in an unli- ber, gauge, physical attributes, operation, buyers. Thus, sellers and buyers may censed buyer’s state rather than di- performance, or price of the firearm; and with ‘‘no-questions-asked’’ and little rectly to an unlicensed buyer. ‘‘(iii) with respect to each firearm received prospect of detection evade laws pro- And fourth, it would prohibit unli- from a prospective transferor under clause hibiting sales of certain types of fire- censed individuals who offer firearms (i), the person— March 16, 1999 CONGRESSIONAL RECORD — SENATE S2777

‘‘(I) enters such information about the fire- [Mr. GORTON] and the Senator from S. 531 arm as the Secretary may require by regula- Michigan [Mr. ABRAHAM] were added as At the request of Mr. ABRAHAM, the tion into a separate bound record; cosponsors of S. 331, a bill to amend the names of the Senator from Indiana ‘‘(II) in transferring the firearm to any Social Security Act to expand the [Mr. BAYH], the Senator from Indiana transferee, complies with the requirements of this chapter as if the firearm were being availability of health care coverage for [Mr. LUGAR], the Senator from North transferred from the business inventory of working individuals with disabilities, Dakota [Mr. DORGAN], the Senator that person; and to establish a Ticket to Work and Self- from West Virginia [Mr. ROCKEFELLER], ‘‘(III) if the prospective transferor does not Sufficiency Program in the Social Se- the Senator from Kansas [Mr. provide the person with a certified copy of a curity Administration to provide such BROWNBACK], and the Senator from valid firearms license issued to the prospec- individuals with meaningful opportuni- California [Mrs. BOXER] were added as tive transferor under this chapter, submits ties to work, and for other purposes. cosponsors of S. 531, a bill to authorize to the Secretary a report of the transfer or the President to award a gold medal on other disposition of the firearm on a form S. 346 specified by the Secretary, which report At the request of Mrs. HUTCHISON, the behalf of the Congress to Rosa Parks in shall not include the name of, or any other name of the Senator from Pennsyl- recognition of her contributions to the identifying information relating to, the vania [Mr. SANTORUM] was added as a Nation. transferor. cosponsor of S. 346, A bill to amend S. 542 ‘‘(2) TRANSFERS BY PERSONS OTHER THAN LI- title XIX of the Social Security Act to At the request of Mr. ABRAHAM, the CENSEES.—It shall be unlawful for any person who is not licensed under section 923 to prohibit the recoupment of funds re- name of the Senator from North Caro- transfer a firearm pursuant to a posting or covered by States from one or more to- lina [Mr. HELMS] was added as a co- listing of the firearm for sale or exchange on bacco manufacturers. sponsor of S. 542, a bill to amend the an Internet website described in paragraph S. 414 Internal Revenue Code of 1986 to ex- (1) to any person other than the operator of At the request of Mr. GRASSLEY, the pand the deduction for computer dona- the website.’’. name of the Senator from Iowa [Mr. tions to schools and allow a tax credit (b) PENALTIES.—Section 924(a) of title 18, for donated computers. United States Code, is amended by adding at HARKIN] was added as a cosponsor of S. the end the following: 414, a bill to amend the Internal Reve- S. 597 ‘‘(7) Whoever willfully violates section nue Code of 1986 to provide a 5-year ex- At the request of Mr. SMITH, the 922(z)(2) shall be fined under this title, im- tension of the credit for producing names of the Senator from Minnesota prisoned not more than 2 years, or both.’’. electricity from wind, and for other [Mr. GRAMS] and the Senator from Ala- f purposes. bama [Mr. SESSIONS] were added as co- ADDITIONAL COSPONSORS S. 429 sponsors of S. 597, a bill to amend sec- At the request of Mr. DURBIN, the tion 922 of chapter 44 of title 28, United S. 98 name of the Senator from South Da- States Code, to protect the right of At the request of Mr. MCCAIN, the citizens under the Second Amendment name of the Senator from Virginia [Mr. kota [Mr. JOHNSON] was added as a co- sponsor of S. 429, a bill to designate the to the Constitution of the United WARNER] was added as a cosponsor of S. States. 98, a bill to authorize appropriations legal public holiday of ‘‘Washington’s for the Surface Transportation Board Birthday’’ as ‘‘Presidents’ Day’’ in SENATE RESOLUTION 33 for fiscal years 1999, 2000, 2001, and 2002, honor of George Washington, Abraham At the request of Mr. MCCAIN, the and for other purposes. Lincoln, and Franklin Roosevelt and in names of the Senator from Utah [Mr. recognition of the importance of the HATCH], the Senator from North Caro- S. 115 institution of the Presidency and the lina [Mr. EDWARDS], the Senator from At the request of Ms. SNOWE, the contributions that Presidents have IDEN name of the Senator from New Jersey Delaware [Mr. B ], the Senator made to the development of our Nation from Nevada [Mr. REID], the Senator [Mr. LAUTENBERG] was added as a co- and the principles of freedom and de- UGAR sponsor of S. 115, a bill to require that from Indiana [Mr. L ], and the Sen- mocracy. OL health plans provide coverage for a ator from South Carolina [Mr. H - minimum hospital stay for S. 463 LINGS] were added as cosponsors of Sen- mastectomies and lymph node dissec- At the request of Mr. ABRAHAM, the ate Resolution 33, a resolution des- tion for the treatment of breast cancer names of the Senator from Arkansas ignating May 1999 as ‘‘National Mili- and coverage for secondary consulta- [Mr. HUTCHINSON], the Senator from tary Appreciation Month.’’ tions. Kansas [Mr. BROWNBACK], and the Sen- SENATE RESOLUTION 34 S. 290 ator from Texas [Mrs. HUTCHISON] were At the request of Mr. TORRICELLI, the At the request of Mr. ABRAHAM, the added as cosponsors of S. 463, a bill to names of the Senator from Florida [Mr. names of the Senator from Iowa [Mr. amend the Internal Revenue Code of GRAHAM] and the Senator from Alaska GRASSLEY] and the Senator from Ala- 1986 to provide for the designation of [Mr. STEVENS] were added as cospon- bama [Mr. SESSIONS] were added as co- renewal communities, to provide tax sors of Senate Resolution 34, a resolu- sponsors of S. 290, a bill to establish an incentives relating to such commu- tion designating the week beginning adoption awareness program, and for nities, and for other purposes. April 30, 1999, as ‘‘National Youth Fit- other purposes. S. 472 ness Week.’’ S. 322 At the request of Mr. GRASSLEY, the SENATE RESOLUTION 47 At the request of Mr. CAMPBELL, the name of the Senator from Kansas [Mr. At the request of Mr. MURKOWSKI, the name of the Senator from Virginia [Mr. BROWNBACK] was added as a cosponsor names of the Senator from Alaska [Mr. ROBB] was added as a cosponsor of S. of S. 472, a bill to amend title XVIII of STEVENS], and the Senator from Con- 322, a bill to amend title 4, United the Social Security Act to provide cer- necticut [Mr. LIEBERMAN] were added States Code, to add the Martin Luther tain medicare beneficiaries with an ex- as cosponsors of Senate Resolution 47, King, Jr. holiday to the list of days on emption to the financial limitations a resolution designating the week of which the flag should especially be dis- imposed on physical, speech-language March 21 through March 27, 1999, as played. pathology, and occupational therapy ‘‘National Inhalants and Poisons S. 326 services under part B of the medicare Awareness Week.’’ At the request of Mr. JEFFORDS, the program, and for other purposes. SENATE RESOLUTION 50 name of the Senator from Montana S. 502 At the request of Mr. SPECTER, the [Mr. BURNS] was added as a cosponsor At the request of Mr. ASHCROFT, the name of the Senator from North Caro- of S. 326, a bill to improve the access names of the Senator from Wyoming lina [Mr. HELMS] was added as a co- and choice of patients to quality, af- [Mr. ENZI], the Senator from Oklahoma sponsor of Senate Resolution 50, a reso- fordable health care. [Mr. INHOFE], and the Senator from lution designating March 25, 1999, as S. 331 Washington [Mr. GORTON] were added ‘‘Greek Independence Day: A Day of At the request of Mr. JEFFORDS, the as cosponsors of S. 502, a bill to protect Celebration of Greek and American De- names of the Senator from Washington social security. mocracy.’’ S2778 CONGRESSIONAL RECORD — SENATE March 16, 1999

SENATE RESOLUTION 57 sea-air-land (SEAL) team mission in Viet- Resolved, That the Senate— At the request of Mr. GRAHAM, the nam during which he was wounded; (1) proclaims the month of January 1999 as names of the Senator from Iowa [Mr. Whereas he was awarded the Medal of ‘‘National Cervical Health Month’’; and Honor for his actions and leadership during (2) requests that the President issue a GRASSLEY] the Senator from Missouri that mission; proclamation calling upon the people of the [Mr. ASHCROFT], the Senator from Ne- Whereas according to his Medal of Honor United States to observe the month with ap- vada [Mr. REID], the Senator from citation, ‘‘Lt. (j.g.) Kerrey’s courageous and propriate programs and activities. Georgia [Mr. COVERDELL], and the Sen- inspiring leadership, valiant fighting spirit, ∑ Mr. MACK. Mr. President, in an ef- ator from New Jersey [Mr. LAUTEN- and tenacious devotion to duty in the face of fort to help increase awareness and BERG] were added as cosponsors of Sen- almost overwhelming opposition sustain and education about cervical cancer, and to ate Resolution 57, a resolution express- enhance the finest traditions of the U.S. Naval Service’’; pay tribute to women who have battled ing the sense of the Senate regarding the disease, today I am submitting a the human rights situation in Cuba. Whereas during his 10 years of service in the United States Senate, Bob Kerrey has Senate Resolution to designate the SENATE RESOLUTION 60 demonstrated the same qualities of leader- month of January as ‘‘National Cer- At the request of Mr. MACK, the name ship and spirit and has devoted his consider- vical Health Month.’’ I am pleased that of the Senator from Iowa [Mr. GRASS- able talents to working on social security, Senator DIANNE FEINSTEIN and 31 bipar- LEY] was added as a cosponsor of Sen- Internal Revenue Service, and entitlement tisan colleagues in the Senate have ate Resolution 60, a resolution rec- reform, improving health care services, guid- agreed to be original co-sponsors of ognizing the plight of the Tibetan peo- ing the intelligence community and support- this Senate Resolution. I understand ing the agricultural community: Now, there- ple on the fortieth anniversary of Ti- that Representative JUANITA bet’s attempt to restore its independ- fore, be it Resolved, That the United States Senate MILLENDER-MCDONALD will be intro- ence and calling for serious negotia- commends the Honorable J. Robert Kerrey ducing similar legislation in the tions between China and the Dalai for the service that he rendered to the United States House of Representa- Lama to achieve a peaceful solution to United States, and expresses its appreciation tives, and I would like to commend her the situation in Tibet. and respect for his commitment to and ex- for the leadership she has shown in this f ample of bipartisanship and collegial inter- important effort. action in the legislative process. I would also like to pay tribute to SENATE RESOLUTION 61—COM- SEC. 2. The Secretary of the Senate shall Ms. Carol Ann Armenti, Director of the MENDING THE HONORABLE J. transmit a copy of this resolution to the Center for Cervical Health in Toms ROBERT KERREY, U.S. SENATOR Honorable J. Robert Kerrey. River, New Jersey. Ms. Armenti has FROM NEBRASKA, ON THE 30TH f worked tirelessly on behalf of cervical ANNIVERSARY OF THE EVENTS cancer patients and their families, and SENATE RESOLUTION 62—PRO- GIVING RISE TO HIS RECEIVING she has been a true leader in educating CLAIMING THE MONTH OF JANU- THE MEDAL OF HONOR women about this disease. In January, ARY 1999 AS ‘‘NATIONAL CER- her organization, along with the Amer- Mr. DASCHLE (for himself, Mr. VICAL HEALTH MONTH’’ LOTT, Mr. EDWARDS, Mr. HAGEL, Mr. ican Medical Women’s Association, CLELAND, Mr. MCCAIN, Mr. HARKIN, Mr. Mr. MACK (for himself Mrs. FEIN- launched the National Cervical Cancer KERRY, Mr. ROBB, Mr. REED, Mr. SMITH STEIN, Mr. ABRAHAM, Mr. AKAKA, Mrs. Public Education Campaign. The lead- of New Hampshire, Mr. ABRAHAM, Mr. BOXER, Mr. CLELAND, Mr. DEWINE, Mr. ership of Ms. Armenti will have a last- AKAKA, Mr. ALLARD, Mr. ASHCROFT, Mr. DODD, Mr. DURBIN, Mr. FITZGERALD, ing impact upon the lives of women of BAUCUS, Mr. BAYH, Mr. BENNETT, Mr. Mr. FRIST, Mr. GRASSLEY, Mr. GORTON, today, and future generations will be BIDEN, Mr. BINGAMAN, Mr. BOND, Mrs. Mr. HOLLINGS, Mrs. HUTCHISON, Mr. the beneficiaries of her work. Mr. President, the issue of cervical BOXER, Mr. BREAUX, Mr. BROWNBACK, HUTCHINSON, Mr. INOUYE, Mr. KENNEDY, cancer is one which is deeply personal Mr. BRYAN, Mr. BUNNING, Mr. BURNS, Mr. LAUTENBERG, Mr. MCCONNELL, Ms. to my wife, Priscilla, and to me. In Mr. BYRD, Mr. CAMPBELL, Mr. CHAFEE, MIKULSKI, Mr. MURKOSWKI, Mrs. MUR- 1990, our daughter, Debbie, was diag- Mr. COCHRAN, Ms. COLLINS, Mr. RAY, Mr. ROTH, Mr. SARBANES, Mr. nosed with cervical cancer. Because of CONRAD, Mr. COVERDELL, Mr. CRAIG, SMITH of Oregon, Ms. SNOWE, Mr. SPEC- our family history with cancer, Debbie Mr. CRAPO, Mr. DEWINE, Mr. DODD, Mr. TER, Mr. STEVENS. Mr. THURMOND, and was aware that she had an increased DOMENICI, Mr. DORGAN, Mr. DURBIN, Mr. Mr. TORRICELLI) submitted the follow- risk of cancer and she made sure to ENZI, Mr. FEINGOLD, Mrs. FEINSTEIN, ing resolution; which was referred to the Committee on the Judiciary: take advantage of early detection Mr. FITZGERALD, Mr. FRIST, Mr. GOR- screening procedures. Fortunately, her S. RES. 62 TON, Mr. GRAHAM, Mr. GRAMM, Mr. cervical cancer was detected at an GRAMS, Mr. GRASSLEY, Mr. GREGG, Mr. Whereas cervical cancer annually strikes early stage, and she was treated suc- approximately 15,000 American women; HATCH, Mr. HELMS, Mr. HOLLINGS, Mr. cessfully with surgery. Not long after HUTCHINSON, Mrs. HUTCHISON, Mr. Whereas cervical cancer strikes 1 out of 50 American women; her treatment, she have birth to our INHOFE, Mr. INOUYE, Mr. JEFFORDS, Mr. Whereas estimates show that physicians third grandson. Debbie’s experience JOHNSON, Mr. KENNEDY, Mr. KOHL, Mr. will diagnose more than 150,000 American with cervical cancer exemplifies the KYL, Ms. LANDRIEU, Mr. LAUTENBERG, women with cervical cancer during the fact that early detection saves lives. Mr. LEAHY, Mr. LEVIN, Mr. LIEBERMAN, 1990’s; According to the American Cancer Mrs. LINCOLN, Mr. LUGAR, Mr. MACK, Whereas according to the National Cancer Society, nearly 1,000 women in Florida Mr. MCCONNELL, Ms. MIKULSKI, Mr. Institute Surveillance, Epidemiology and will be diagnosed with cervical cancer MOYNIHAN, Mr. MURKOWSKI, Mrs. MUR- End Results Program, the 5-year survival in 1999. This year, Florida will have the RAY, Mr. NICKLES, Mr. REID, Mr. ROB- rate of cervical cancer victims is 91 percent third largest number of new cases of when physicians detect the cancer at an ERTS, Mr. ROCKEFELLER, Mr. ROTH, Mr. cervical cancer. Yet, despite signifi- early stage; SANTORUM, Mr. SARBANES, Mr. SCHU- Whereas cervical cancer is preventable, yet cant progress being made in the war on MER, Mr. SESSIONS, Mr. SHELBY, Mr. remains one of the leading causes of death cancer, not all segments of the U.S. SMITH of Oregon, Ms. SNOWE, Mr. SPEC- among American women; population have benefitted to the full- TER, Mr. STEVENS, Mr. THOMAS, Mr. Whereas according to the United States est extent from the advances made in THOMPSON, Mr. THURMOND, Mr. Centers for Disease Control and Prevention, the understanding of cancer. According TORRICELLI, Mr. VOINOVICH, Mr. WAR- the mortality rate among American women to the U.S. Institute of Medicine re- NER, Mr. WELLSTONE, and Mr. WYDEN) with cervical cancer declined between 1960 port, ‘‘The Unequal Burden of Cancer,’’ submitted the following resolution; and 1997, yet recently began to rise; rates of cervical cancer are signifi- Whereas cervical cancer survivors show which was considered and agreed to: cantly higher in Hispanic and African- tremendous courage and determination in American women. We simply must re- S. RES. 61 the face of adversity; and Whereas Honorable J. Robert ‘‘Bob’’ Whereas it is important that the United inforce our efforts to eradicate this ter- Kerrey has served the United States with States support individuals with cervical can- rible disease. distinction and honor for all of his adult life; cer, as well as their families and loved ones, Research, education, and early detec- Whereas 30 years ago this past Sunday, on through public awareness and education pro- tion are the most effective weapons we March 14, 1969, Bob Kerrey lead a successful grams: Now, therefore, be it have in the war on cervical cancer. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2779 Research is the key to finding a cure vania Avenue. It will be through the bi- AMENDMENTS SUBMITTED for cervical cancer, and significant partisan commitment of the Senate progress is being made in this regard. and House that these important re- NATIONAL MISSILE DEFENSE ACT Last month, the National Cancer Insti- search and detection programs will re- OF 1999 tute (NCI) took the rarely-used step of ceive adequate funding. I want to issuing a Clinical Announcement urg- pledge my support, and to work with ing physicians to give strong consider- my colleagues in Congress to make LANDRIEU (AND OTHERS) ation to adding chemotherapy to radi- AMENDMENT NO. 72 ation therapy in the treatment of sure this happens. Far too many lives invasive cervical cancer. According to depend upon it. Ms. LANDRIEU (for herself, Mr. NCI Director Rick Klausner, this will Mr. President, I encourage my col- LEVIN, Ms. SNOWE, Mr. DORGAN, Mr. likely change the standard of treat- leagues to co-sponsor this resolution to BREAUX, Mr. LIEBERMAN, Mr. BAYH, and Mr. EDWARDS) proposed an amendment ment for cervical cancer. Dr. Mitchell designate January as ‘‘National Cer- to the bill (S. 257) to state the policy of Morris of the M.D. Anderson Cancer vical Health Month.’’∑ Center called this new treatment ap- the United States regarding the de- ployment of a missile defense capable proach, ‘‘the first fundamental advance f in the treatment of cervical cancer in of defending the territory of the United more than 40 years.’’ States against limited ballistic missile I’m also proud to say that several SENATE RESOLUTION 63—REC- attack; as follows: cutting-edge cervical cancer studies OGNIZING AND HONORING JOE At the end, add the following: are taking place in my home state of DIMAGGIO SEC. 3. POLICY ON REDUCTION OF RUSSIAN NU- Florida. Scientists at the University of CLEAR FORCES. Mr. MOYNIHAN (for himself, Mr. Miami Sylvester Cancer Center are It is the policy of the United States to seek LOTT, Mr. DASCHLE, Mrs. FEINSTEIN, continued negotiated reductions in Russian studying a new type of cervical cancer nuclear forces. immunotherapy. They are developing Mr. LEAHY, Mr. JOHNSON, Mr. HELMS, f ‘‘killer cells’’ specifically designed to Mr. BUNNING, and Mr. SCHUMER) sub- target cancer cells which express mitted the following resolution; which COMPLIANCE WITH ETHICAL human papilloma virus (HPV). By was considered and agreed to: STANDARDS FOR FEDERAL eradicating these cells, the hope is to PROSECUTORS S. RES. 63 kill the tumor, even if the cancer has spread. At the H. Lee Moffitt Com- Whereas Joseph Paul ‘‘Joe’’ DiMaggio was born in Martinez, California, on November prehensive Cancer Center in Tampa, HATCH AMENDMENT NO. 73 25, 1914; (Ordered to lie on the table.) studies are underway to develop a cer- Whereas Joe DiMaggio was the son of Sicil- vical cancer vaccine using some of the ian immigrants, Joseph Paul and Rosalia Mr. HATCH submitted an amend- same characteristics of the human pap- DiMaggio, and was the 2d of 3 brothers to ment intended to be proposed by him illoma virus. They are also examining play Major League Baseball; to the bill (H.R. 808) to extend for 3 ad- biomarkers to detect cervical cancer Whereas Joe DiMaggio played 13 seasons in ditional months the period for which before malignant changes occur. the major leagues, all for the New York Yan- chapter 12 of title 11 of the United The U.S. Senate and House, working kees; States Code is reenacted; as follows: in bipartisan cooperation, have em- Whereas Joe DiMaggio, who wore number 5 At the appropriate place, insert the follow- barked upon an historic mission to in Yankee pinstripes, became a baseball icon ing: double funding for the National Insti- in the 1941 season by hitting safely in 56 con- SEC. . COMPLIANCE WITH ETHICAL STANDARDS tutes of Health over the next five secutive games, a major league record that FOR FEDERAL PROSECUTORS. years. Last year, the Congress over- has stood for more than 5 decades and has Section 801 of title VIII of the Departments whelmingly passed, with bipartisan never been seriously challenged; of Commerce, Justice, and State, the Judici- Whereas Joe DiMaggio compiled a .325 bat- ary, and Related Agencies Appropriations support, a $2 billion increase for the Act, 1999 (Public Law 105–277) is amended by National Institutes of Health—the ting average during his storied career and played on 9 World Series championship striking subsection (c) and inserting the fol- largest increase in NIH history. teams; lowing: With the tremendous progress being Whereas Joe DiMaggio hit 361 home runs ‘‘(c) EFFECTIVE DATE.—The amendments made in cervical cancer and other dis- during his career, while striking out only 369 made by this section shall take effect 1 year eases, I was astonished and extremely times; after the date of enactment of this Act.’’. disappointed the President’s FY 2000 Whereas Joe DiMaggio was selected to the f budget only calls for a meager 2.6% in- Baseball Hall of Fame in 1955, 4 years after NOTICES OF HEARINGS crease for medical research at the NIH. his retirement; This is simply unacceptable. The Presi- Whereas Joe DiMaggio in 1969 was voted PERMANENT SUBCOMMITTEE ON INVESTIGATIONS dent’s proposed budget means a cease- Major League Baseball’s greatest living Ms. COLLINS. Mr. President, I would fire in the war against cancer, Parkin- player; like to announce for the information of son’s disease, Alzheimer’s disease and Whereas Joe DiMaggio served the Nation the Senate and the public that the Per- other illnesses. In effect, the Presi- in World War II as a member of the Army Air manent Subcommittee on Investiga- dent’s proposal is a formal act of re- Corps; tions of the Committee on Govern- treat in the heat of battle. Whereas Joe DiMaggio was tireless in help- mental Affairs, will hold hearings enti- I was also shocked that the Presi- ing others and was devoted to the ‘‘Joe tled ‘‘Securities Fraud On The Inter- dent’s FY 2000 budget calls for not one DiMaggio Children’s Hospital’’ in Hollywood, net.’’ The upcoming hearings will ex- Florida; additional penny of funding for the amine the common securities frauds Whereas Joe DiMaggio will be remembered perpetrated on the Internet and the Breast and Cervical Cancer Screening as a role model for generations of young peo- program at the U.S. Centers for Dis- ple; and ways consumers can protect them- ease Control & Prevention. For FY Whereas Joe DiMaggio transcended base- selves from such frauds, as well as cur- 1999, the bipartisan Congress provided a ball and will remain a symbol for the ages of rent online trading issues. Specifically, $16 million increase. By contrast, the talent, commitment, and achievement: Now, the hearing will focus on federal and President’s request for FY 1999 was for therefore, be it state enforcement efforts to combat se- an increase of less than $1 million for Resolved, That the Senate recognizes and curities fraud on the Internet, particu- this life-saving program, and he pro- honors Joe DiMaggio— larly penny stock fraud, and whether poses no increase for next year. (1) for his storied baseball career; federal and state consumer education When it comes to cervical cancer re- (2) for his many contributions to the Na- programs designed to disseminate in- search and screening, the President tion throughout his lifetime; and formation about securities fraud on the just doesn’t get it. It’s obvious the (3) for transcending baseball and becoming Internet are adequate. leadership on these initiatives will a symbol for the ages of talent, commitment, The hearings will take place on Mon- have to come from this end of Pennsyl- and achievement. day, March 22nd at 1:30 p.m. in room S2780 CONGRESSIONAL RECORD — SENATE March 16, 1999 342 of the Dirksen Senate Office Build- The hearing will take place on hearing will begin at 10 a.m. on Tues- ing and Tuesday, March 23rd, at 9:30 Wednesday, April 21, 1999 at 2 p.m. in day, March 16, 1999, in room 428A Rus- a.m. in room 342 of the Dirksen Senate SD–366 of the Dirksen Senate Office sell Senate Office Building. Office Building. For further informa- Building in Washington, DC. The PRESIDING OFFICER. Without tion, please contact Timothy J. Shea of The purpose of this oversight hearing objection, it is so ordered. the subcommittee staff at 224–3721. is to discuss the Memorandum of Un- COMMITTEE ON VETERANS’ AFFAIRS COMMITTEE ON ENERGY AND NATURAL derstanding signed by multiple agen- Mr. DOMENICI. Mr. President, the RESOURCES cies regarding with Lewis and Clark bi- Committee on Veterans’ Affairs would Mr. THOMAS. Mr. President, I would centennial celebration. like to request unanimous consent to like to announce for the information of Those who wish to submit written hold a joint hearing with the Senate the Senate and the public that a hear- statements should write to the Com- Appropriations Subcommittee on ing has been scheduled before the Sub- mittee on Energy and Natural Re- Labor, Health and Human Services, committee on National Parks, Historic sources, U.S. Senate, Washington, DC and Education to assess the roles and Preservation, and Recreation of the 20510. For further information, please preparedness of the Department of Committee on Energy and Natural Re- call Amie Brown or Mark Rey at (202) Health and Human Services and the sources. The purpose of this hearing is 224–6170. Department of Veterans Affairs to re- to receive testimony on S. 323, a bill to f spond to a domestic chemical or bio- redesignate the Black Canyon of the logical weapon attack. AUTHORITY FOR COMMITTEES TO Gunnison National Monument as a na- The hearing will be held on Tuesday, MEET tional park and establish the Gunnison March 16, 1999, at 9:30 a.m., in room 106 Gorge National Conservation Area, and COMMITTEE ON ARMED SERVICES of the Dirksen Senate Office Building. for other purposes; S. 338, a bill to pro- Mr. DOMENICI. Mr. President, I ask The PRESIDING OFFICER. Without vide for the collection of fees for the unanimous consent that the Commit- objection, it is so ordered. making of motion pictures, television tee on Armed Services be authorized to SUBCOMMITTEE ON CLEAN AIR, WETLANDS, productions, and sound tracks in units meet on Tuesday, March 16, 1999, at 9:30 PRIVATE PROPERTY, AND NUCLEAR ENERGY of the Department of the Interior, and a.m. in closed session, to receive testi- Mr. DOMENICI. Mr. President, I ask for other purposes; S. 568, a bill to mony on alleged Chinese espionage at unanimous consent that the Sub- allow the Department of the Interior Department of Energy laboratories, committee on Clean Air, Wetlands, Pri- and the Department of Agriculture to and at 11 a.m. in open session, to re- vate Property, and Nuclear Energy be establish a fee system for commercial ceive testimony on the Department of granted permission to conduct a hear- filming activities in a site or resource Energy national security programs, in ing on EPA’s Risk Management Plan under their jurisdiction. review of the Defense authorization re- Program of the Clean Air Act Tuesday, The hearing will take place on quest for fiscal year 2000 and the Fu- March 16, 9:30 a.m., Hearing Room (SD– Wednesday, March 24, 1999 at 2 p.m. in ture Years Defense Program. 406). room SD–366 of the Dirksen Senate Of- The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without fice Building in Washington, DC. objection, it is so ordered. objection, it is so ordered. Because of the limited time available COMMITTEE ON FINANCE SUBCOMMITTEE ON EMERGING THREATS AND for the hearing, witnesses may testify Mr. DOMENICI. Mr. President, the CAPABILITIES by invitation only. However, those Finance Committee requests unani- Mr. DOMENICI. Mr. President, I ask wishing to submit written testimony mous consent to conduct a hearing on unanimous consent that the Commit- for the hearing record should send two Tuesday, March 16, 1999 beginning at 10 tee on Armed Services Subcommittee copies of their testimony to the Com- a.m. in room 215 Dirksen. on Emerging Threats and Capabilities mittee on Energy and Natural Re- The PRESIDING OFFICER. Without be authorized to meet at 2:30 P.M. on sources, United States Senate, SD–364 objection, it is so ordered. Tuesday, March 16, 1999, in closed/open Dirksen Senate Office Building, Wash- session, to receive testimony on infor- COMMITTEE ON HEALTH, EDUCATION, LABOR, mation warfare and critical infrastruc- ington, DC 20510–6150. AND PENSIONS For further information, please con- ture protection, in review of the de- Mr. DOMENICI. Mr. President, I ask tact Jim O’Toole or Shawn Taylor of fense authorization request for fiscal unanimous consent that the Commit- the committee staff at (202) 224–6969. year 2000 and the future years defense tee on Health, Education, Labor, and program. COMMITTEE ON ENERGY AND NATURAL Pensions be authorized to meet for a RESOURCES The PRESIDING OFFICER. Without hearing on ‘‘Educating the Disadvan- Mr. MURKOWSKI. Mr. President, I objection, it is so ordered. taged’’ during the session of the Senate would like to announce that an over- SUBCOMMITTEE ON FOREST AND PUBLIC LAND on Tuesday, March 16, 1999, at 9:30 a.m. sight hearing has been scheduled before MANAGEMENT The PRESIDING OFFICER. Without the Committee on Energy and Natural Mr. DOMENICI. Mr. President, I ask objection, it is so ordered. Resources. The purpose of this hearing unanimous consent that the Sub- is to receive testimony on the eco- COMMITTEE ON HEALTH, EDUCATION, LABOR, committee on Forest & Public Land nomic impact of the Kyoto Protocol to AND PENSIONS Management of the Committee on En- the Framework Convention on Climate Mr. DOMENICI. Mr. President, I ask ergy and Natural Resources be granted Change. unanimous consent that the Commit- permission to meet during the session The hearing will take place on Thurs- tee on Health, Education, Labor, and of the Senate on Tuesday, March 16, for day, March 25, 1999, at 9:30 a.m. in room Pensions be authorized to meet during purposes of conducting a Subcommit- SD–366 of the Dirksen Senate Office the sessions of the Senate on Wednes- tee on Forest & Public Lands Manage- Building in Washington, DC. day, March 17, 1999; Thursday, March ment hearing which is scheduled to Those who wish to testify or submit 18, 1999; and Friday March 19, 1999. The begin at 2 p.m. The purpose of this a written statement should write to purpose of these meetings will be to oversight hearing is to consider the the Committee on Energy and Natural consider S. 326, the Patients’ Bill of President’s proposed budget for FY 2000 Resources, U.S. Senate, Washington, Rights, and several nominations. for the U.S. Forest Service. DC 20510. For further information, The PRESIDING OFFICER. Without The PRESIDING OFFICER. Without please call Julia McCaul or Colleen objection, it is so ordered. objection, it is so ordered. Deegan at (202) 224–8115. COMMITTEE ON SMALL BUSINESS SUBCOMMITTEE ON INTERNATIONAL TRADE AND COMMITTEE ON ENERGY AND NATURAL Mr. DOMENICI. Mr. President, I ask FINANCE RESOURCES unanimous consent that the Commit- Mr. DOMENICI. Mr. President, I ask Mr. CRAIG. Mr. President, I would tee on Small Business be authorized to unanimous consent that the Sub- like to announce for the public that a meet during the session of the Senate committee on International Trade and hearing has been scheduled before the for a hearing entitled, ‘‘The President’s Finance of the Committee on Banking, Senate Subcommittee on Forests and Fiscal Year 2000 Budget Request for the Housing, and Urhan Affairs be author- Public Land Management. Small Business Administration.’’ The ized to meet during the session of the March 16, 1999 CONGRESSIONAL RECORD — SENATE S2781 Senate on Tuesday, March 16, 1999, to Phil said that he learned his recognize the 100th birthday of one of conduct a hearing on reauthorization ‘‘strategizing and speechifying,’’ as he the greatest American Jazz musicians of the Export Administration Act. called it, for civil rights from his fa- and composers this country has seen, The PRESIDING OFFICER. Without ther. In a 1997 interview, Phil stated ‘‘I Duke Ellington. Duke’s contributions objection, it is so ordered. learned to respect people as people. to today’s music are immeasurable, f Color meant nothing.’’ Perhaps it was and his hundreds of compositions, in- this respect that caused Phil to devote cluding ‘‘Satin Doll’’ and ‘‘Take the A- ADDITIONAL STATEMENTS time to preforming countless acts of Train,’’ are all time classics. Jazz and community service, such as donating all genres of music will forever be in- WE THE PEOPLE free tires to the vehicles that carried fluenced by the sophisticated, yet emo- so many civil rights marchers. tional and spiritual sound of Duke ∑ Mr. SESSIONS. Mr. President, on Phil was an inspiration to the entire Ellington’s music. May 1–3, 1999 more than 1,200 students state. I am sure those in the greater Born in a segregated Washington, DC from across the United States will be Milwaukee area will miss his guidance neighborhood, Edward Kennedy in Washington DC to compete in the and helpful advice. However, I am ‘‘Duke’’ Ellington, achieved an endur- national finals of the ‘‘We the People proud to remember, and of course re- ing legacy and popularity that has not . . . The Citizen and the Constitution’’ peat, his well-worn statement, ‘‘a been equaled or exceeded. He developed program. I am proud to announce that house doesn’t care who lives there.’’ I his talent during the Harlem Renais- a class from Corner High School from can only hope that we will someday sance period and became one of the top the city of Warrior will represent my translate this ideal into reality.∑ five band leaders from 1926–74. Duke’s home state of Alabama in this national f contribution to music can be summed event. These young scholars have up best by Miles Davis: ‘‘All musicians THE 43rd ANNIVERSARY OF worked diligently to reach the national should get down on their knees once a TUNISIA’S INDEPENDENCE finals and through their experience year and thank the Lord for Duke have gained a deep knowledge and un- ∑ Mr. ABRAHAM. Mr. President, I rise Ellington.’’ derstanding of the fundamental prin- today in celebration of the forty-third Duke was the first jazz composer to ciples and values of our constitutional anniversary of Tunisia’s independence. produce extended compositions, such as democracy. Although Tunisia received its inde- ‘‘Creole Rhapsody’’ and ‘‘Reminiscing The ‘‘We the People . . . The Citizen pendence in 1956, America has main- in Tempo’’ as well as a series of long and the Constitution’’ program is the tained close ties with Tunisia since works like ‘‘Jump for Joy,’’ ‘‘Black, most extensive educational program in 1797. This historic partnership has pro- Brown, and Beige,’’ and ‘‘A Drum is a the country developed specifically to moted peace and cooperation between Woman.’’ He wrote for large orches- educate young people about the Con- our two countries. tras, small combos, vocalists, choirs, stitution and the Bill of Rights. The In America’s early years, Tunisia movies, theater, church and night- three-day national competition is mod- provided important commercial advan- clubs. He produced thousands of songs eled after hearings in the United States tages and a safe harbor for American for more than fifty years, which are Congress. These hearings consist of vessels establishing maritime trade in still as fresh and vibrant today as they oral presentations by high school stu- the Mediterranean. During America’s were when he wrote them decades ago. dents before a panel of adult judges. darkest hour, the Civil War, Tunisia It is my honor to express an enthu- The students testify as constitutional supported the anti-slavery movement, siastic tribute to this jazz legend dur- experts before a ‘‘congressional com- and its leaders conversed with Amer- ing this year-long celebration of his mittee,’’ that is, the panel of judges ican officials on the significance of amazing contributions to American representing various regions of the human dignity. music.∑ country and a variety of appropriate During World War II, Tunisia contin- f professional fields. The student testi- ued to fight for the values of the free mony is followed by a period of ques- world by supporting American and Al- RECOGNITION OF THE 160TH ANNI- tioning during which the judges probe lied forces as they landed in North Af- VERSARY OF THE GEORGIA HIS- students for their depth of understand- rica. After the war, Tunisia sought TORICAL SOCIETY ing and ability to apply their constitu- American support for its independence; ∑ Mr. CLELAND. Mr. President, I rise tional knowledge. and in 1956, the United States was the today to acknowledge and salute the The student team from Corner High first world power to recognize Tunisia’s Georgia Historical Society, which on School is currently conducting re- newly won sovereignty. March 20, 1999 will celebrate 160 years search and preparing for the upcoming Since that time, the United States of collecting and preserving our rich national competition in Washington, and Tunisia have garnered further history for all Georgians. DC. I am extremely proud of the stu- achievements in bilateral cooperation. The Georgia Historical Society was dents and teacher and wish them the Impressive strides have been taken in chartered in 1839 by the Georgia Gen- best of luck at ‘‘We the People’’ na- advancing the development of Tunisia, eral Assembly and currently has more tional finals. I look forward to greeting as well as sustaining further security than 5,000 members from all across them when they visit Capitol Hill.∑ and stability in all relations. Tunisia Georgia and the entire nation. As a f and the United States have also been non-profit organization, the Society re- important allies in striving for mains the oldest cultural institution in TRIBUTE TO PHIL LERMAN progress towards peace in the Middle the State of Georgia and is one of the ∑ Mr. FEINGOLD. Mr. President, I rise East. oldest organizations in our country. today to offer a tribute to my friend, As the relationship between Tunisia For sixteen decades the Society has Phil Lerman, who recently passed and the United States continues to collected, preserved and shared Geor- away. Throughout his lifetime, Phil grow, I believe it is important that we gia’s rich history with many Georgians was a steadfast advocate for civil take time to observe this important through various educational outreach rights. Perhaps most impressive, is the milestone. In echoing the historic programs and research services. number of different avenues Phil words of President Dwight Eisenhower, The Georgia Historical Society’s ar- marched down to promote the ideals of it is my sincere hope and desire that chives and library are operated in co- equal justice. As a former union rep- Tunisia continues to consider the operation with the office of Georgia’s resentative, state official, business- United States as its friend and partner Secretary of State. During my years as man, founder and director of the em- in freedom.∑ Secretary of State I relied on the Geor- ployment and training institute at the f gia Historical Society on numerous oc- University of Wisconsin–Milwaukee, casions for valuable information con- Phil helped to promote racial and so- TRIBUTE TO DUKE ELLINGTON cerning our State’s history, and I truly cial justice throughout the state of ∑ Mr. SCHUMER. Mr. President, I believe that the Society is a real treas- Wisconsin. would like to take this opportunity to ure that all of us should use and enjoy. S2782 CONGRESSIONAL RECORD — SENATE March 16, 1999 The Society has the most extensive TRIBUTE TO GEORGE MOSSE Last September, Ms. Nelson testified collection in the country of manu- ∑ Mr. FEINGOLD. Mr. President, I rise before the House International Rela- scripts, books, maps, photographs, today to express my sorrow over the tions Subcommittee on International newspapers, architectural drawings, loss of my friend, and former teacher, Operations and Human Rights. She portraits and artifacts related to Geor- George Mosse. George was truly an ex- spoke about the harassment and in- gia’s history that date back to the traordinary man, a great humanist and timidation of defense lawyers who rep- founding of the Colony and continue a wonderful teacher. While his 25 books resent Republicans and nationalists, through the twentieth century. were influential, he would not want us and she accused the Royal Ulster Con- stabulary (RUC) of threatening her and The Georgia Historical Society stays to forget that we were almost deprived her family. in close contact with the citizens it of his brilliance. Lucky for us, George These are serious charges. Unfortu- serves so well. Since the founding of was able to escape the Nazis at age 19 nately, she is not alone. Last year, I the Colony of Georgia at Savannah on by way of Switzerland. met with Sean McPhilemy, author of February 12, 1733 by James Edward I had the honor of studying under The Committee: Political Assassina- Oglethorpe, Georgians have celebrated George at the University of Wisconsin– tion in Northern Ireland. The book, this historical date. This year the Madison. His lectures were unique in based on a documentary shown on Brit- Georgia Historical Society and the Sa- both their style and subject. George ish television in 1991, charges that cur- vannah-Chatham County Public first developed his dynamic, bellowing rent and former members of the RUC Schools continued this tradition by or- style while at the University of Iowa, where he taught classes of up to 1,000 have colluded with Loyalist terrorists ganizing and hosting the Georgia Her- to murder Irish Republicans and na- itage Celebration on Thursday, Feb- students. He is perhaps best known for his work on Nazi Germany, but his tionalists. McPhilemy struck me as an ruary 12, 1999. As part of the Celebra- earnest, principled, and exceedingly tion the Society honors Georgians who later work on subjects like national symbols and monuments was equally careful journalist—married to a have made a positive impact on the Protestant, by the way. state. This year’s honoree was Peter as impressive. Tomorrow, Senators DODD, KENNEDY, Tonedd, who was a master carpenter In addition to his countless articles and essays, George was simply a won- MACK, and I, and our House col- and tavern owner. Previous honorees leagues—Speaker of the House have included James Jackson, Revolu- derful teacher. His challenging and in- vigorating teaching style compelled his HASTERT, Minority Leader GEPHARDT, tionary War hero, U.S. Representative, and Congressman WALSH—will release U.S. Senator and Governor of Georgia; students to learn. I think many of his students naively took for granted his our annual ‘‘Friends of Ireland Execu- Mary Telfair, philanthropist in the arts tive Committee St. Patrick’s Day and medicine; Abraham Baldwin, sign- endless lack of energy and ideas. This expectation is understandable given his Statement.’’ In that statement, we will er of the Declaration of Independence; express our concern about protection Juliette G. Low, Founder of the Girl almost ritualistic process of exploring a new and dynamic area of study each for lawyers active on human rights Scouts; Andrew Bryan, a Baptist min- cases, and bring to attention a report ister; and James Oglethorpe. decade. The University of Wisconsin, and the field of history, have truly lost on the subject by the Special The Society also holds monthly lec- an asset, but his work will surely live Rapporteur of the U.N. Commission on tures on a wide variety of historical on.∑ Human Rights. topics and yearly conferences focusing Attacks on the judiciary—whether on f on local communities, and conducts judges, lawyers, officers of the courts, special tours at various historical loca- THE ASSASSINATION OF or witnesses—are intolerable and rep- tions across Georgia. The Georgia His- ROSEMARY NELSON resent, perhaps, the gravest threat to torical Society also publishes books the fragile peace which now prevails, ∑ Mr. MOYNIHAN. Mr. President, to- and a quarterly news magazine, Foot- tenuously, over Northern Ireland. morrow is St. Patrick’s Day. And in a There can be no permanent peace in notes, on Georgia’s history and geneal- few days, we will celebrate the first an- ogy, as well as The Georgia Historical Northern Ireland if these charges re- niversary of the Good Friday peace ac- garding the RUC are true. RUC com- Quarterly, a journal on Georgia’s his- cord, which our esteemed former col- tory that was established in 1917. plicity in political assassinations league, George Mitchell, negotiated, would be state-sponsored terrorism. I would especially like to commend and which promises to resolve and heal Authorities in Northern Ireland need the Georgia Historical Society for dili- one of the oldest conflicts in Europe: to catch and prosecute Rosemary Nel- gently working on behalf of all Geor- Northern Ireland. Now comes the dis- son’s murderers, and they need to en- gians in the historical preservation of tressing news that a car bomb has sure that members of the RUC did not our State’s history. The Society pro- taken the life of Rosemary Nelson, a aid and abet these cowards. The RUC vides a vast collection of records and prominent Roman Catholic human needs to go under a microscope. If artifacts to thousands of researchers rights lawyer. A group known as the there are problems, a new law enforce- and genealogists from around the ‘‘Protestant Red Hand Defenders,’’ out- ment authority, which has the unques- world. lawed earlier this month for bomb and tioned support of nationalists and grenade attacks, has claimed respon- I applaud the Georgia Historical So- unionists, needs to be established. sibility for this heinous and cowardly ciety for preserving and teaching our Rosemary Nelson saw the seeds of act. State’s history. We must not allow the peace planted in Northern Ireland. I These dissidents, and others like pride and glory of our State and our hope and pray that her three children them—both Protestant and Roman Nation to be forgotten—it must be will live to see those seeds blossom Catholic—are determined to prevent celebrated by all. The benefits of en- into something permanent and beau- peace. They claim they act on religious riching the people of Georgia by pro- tiful.∑ principles but, in fact, they worship moting a better understanding of our only violence. Fortunately, they are past and who we are as Georgians must f the minority. Northern Ireland is on not be ignored. the path to peace. Mr. President, I ask that you and my Rosemary Nelson was 40. She was APPOINTMENT BY THE VICE colleagues join me in recognizing and married and had three children. She PRESIDENT honoring the dedication and hard work was murdered because she represented The PRESIDING OFFICER. The of the Georgia Historical Society dur- nationalists in high profile cases, in- Chair, on behalf of the Vice President, ing the past 160 years. The efforts put cluding the Roman Catholic residents pursuant to Public Law 83–420, as forth by the Society have preserved of the Garvaghy Road area in amended by Public Law 99–371, re- and will continue to preserve our rich Portadown who asked, simply, that appoints the Senator from Arizona (Mr. history by ensuring a future for Geor- Protestant unionists pick some other MCCAIN) to the Board of Trustees of gia’s past.∑ place to march. Gallaudet University. March 16, 1999 CONGRESSIONAL RECORD — SENATE S2783 RECOGNIZING AND HONORING JOE Mayor Guiliani arranged a parade from consider ourselves extremely lucky for DIMAGGIO the Battery to City Hall. Joe was in knowing such a man, particularly in Mr. COCHRAN. Mr. President, I ask the lead car; I was to follow. As we this age of pampered sports heroes, unanimous consent that the Senate waited to get started, I went up to him, when ego and self-importance often proceed to the immediate consider- introduced myself and told of having overshadow what is occurring on the ation of S. Res. 63, introduced earlier watched him at the Stadium these field. Even I, who resented DiMaggio today by Senators MOYNIHAN, LOTT, many years ago. ‘‘But I have to tell for displacing my hero Gehrig, have and others. you,’’ I added, ‘‘Lou Gehrig was my come to realize that there will never be The PRESIDING OFFICER. Without hero.’’ another like Joseph Paul DiMaggio. objection, it is so ordered. The clerk ‘‘He was my hero, too,’’ said Joe. I ask unanimous consent that the Well, Joe, too, was a hero to many will report. March 9, 1999, New York Times edi- people. Few have embodied the Amer- The bill clerk read as follows:. torial and George F. Will’s op-ed in the ican dream or created a more enduring Washington Post on Joe DiMaggio be A resolution (S. Res. 63) recognizing and legend than ‘‘Joltin’’ Joe DiMaggio. honoring Joe DiMaggio. printed in the RECORD. And fewer have carried themselves, There being no objection, the mate- The Senate proceeded to consider the both on and off the field, with the pride rial was ordered to be printed in the resolution. and courtliness of, as Hemingway said, RECORD, as follows: Mr. MOYNIHAN. ‘‘Joe, Joe ‘‘the great DiMaggio.’’ [From the New York Times, Mar. 9, 1999] DiMaggio, we want you on our side!’’ Born the fourth son of an immigrant THE DIMAGGIO MYSTIQUE Well, he is on the other side now, but fisherman—two other brothers also It has been almost half a century since Joe stays with us in our memories. played in the majors—he joined the DiMaggio turned his center-field kingdom in Mine are, well, special to me. It Yankees in 1936 after dropping out of Yankee Stadium over to a strapping young- would be in 1938 or 1939 in Manhattan. high school and grew into the game’s ster named Mickey Mantle, but even now, in The Depression lingered. Life was, well, most complete center fielder. He wore death, Joe DiMaggio still owns that green life. But there was even so somebody No. 5 and became the heir to Babe Ruth acreage. He roamed the great open spaces who made a great difference and that (No. 3) and Lou Gehrig (No. 4) in the there with a grace and grandeur that rede- fined the art of fielding. Even more than the was Lou Gehrig of the New York Yan- team’s pantheon. DiMaggio was the kees. I admired him as no other man. prolific hitting that earned him enduring team’s superstar, on a team of super- fame, his silky, seemingly effortless motion Read of him each day, or so it seemed, stars, for 13 seasons. By the time his across the outfield grass was the signature of in the Daily News. And yet I had never career ended in 1951, he had played in his game. seen him play. One summer day my 11 All-Star games and 10 World Series, DiMaggio was one of those rare sports mother somehow found the needful nine of which the Yankees won. stars, like Babe Ruth, Muhammad Ali and sixty cents. Fifty cents for a ticket at The ‘‘Yankee Clipper’’ was acclaimed Michael Jordan, who not only set new stand- the Stadium, a nickel for the subway at baseball’s centennial in 1969 as ‘‘the ards of athletic excellence but also became a distinctive part of American culture. As up and back. Off I went in high expec- greatest living ballplayer.’’ Even his tation. But Gehrig, disease I must as- stylish off the field as on, DiMaggio was an main rival Ted Williams, admitted icon of elegance and success, a name as rec- sume was now in progress, got no hit. A this: ‘‘. . . he [DiMaggio] was the ognizable on Broadway and in Hollywood as young player I had scarce noticed hit a greatest baseball player of our time. He at the ball park. Millions of baby boomers home run. Joe DiMaggio. It began to could do it all.’’ DiMaggio played 1,736 who never saw DiMaggio play instantly un- drizzle, but they kept the game going games with the Yankees. He had a ca- derstood the reference in the Paul Simon just long enough so there would be no reer batting average of .325 and hit 361 song of the 1960’s—‘‘Where have you gone, raincheck. I went home lifeless and lay home runs while striking out only 369 Joe DiMaggio? A nation turns its lonely eyes on my bed desolate. to you.’’ times. He could indeed do it all. Other men have hit the ball farther and Clearly I was in pain, if that is the But there is one statistic for which run the bases faster, but few have excelled at word. The next day my mother some- DiMaggio will be most remembered: his so many elements of the sport. DiMaggio’s how came up with yet another sixty 56-game hitting streak, possibly the 56-game hitting streak in 1941 remains un- cents. Up I went. And the exact same most enduring accomplishment in all touched, one of the great benchmarks of con- sequence occurred. of sports. The streak began on May 15, sistency and productivity in all of sports. In I went home. But not lifeless. To the 1941, with a single in four at-bats 13 seasons with the Yankees, DiMaggio pro- contrary, animated. against the Chicago White Sox, and duced a career batting average of .325, hit 361 For I hated Joe DiMaggio. For life. home runs and knocked in more than 100 ended 56 games later on July 17 during runs in a season nine times. He played in 10 I knew this to be a sin, but it did not a hot night in Cleveland. In 56 games, World Series, 9 of which the Yankees won. matter. Gehrig retired, then died. My DiMaggio had gone to bat 223 times and He possessed one of the sweetest swings base- animus only grew more animated. delivered 91 hits, including 15 home ball has ever seen, a hitting stroke of such Thirty years and some went by. I was runs, for a .408 average. He drew 21 precision that he struck out only 369 times now the United States Permanent Rep- walks, twice was hit by pitched balls, in his major league career. resentative to the United Nations. One scored 56 runs, and knocked in 55. He But the numbers alone do not explain the evening I was having dinner at an hit in every game for two months, DiMaggio mystique. Part of it was his brief, Italian restaurant in midtown. As our turbulent marriage to Marilyn Monroe and striking out just seven times. his taste for nightclubs and tony hotels. Part company was about finished, who But DiMaggio’s game was so com- of it was his $100,000-a-year salary, a small walked in but DiMaggio himself, ac- plete and elegant that statistics cannot fortune in his days as a Yankee. For younger companied by a friend. They took a do it justice. The New York Times said fans, there was also an almost mystical link table against the wall opposite. I in an editorial when he retired, ‘‘The to the past—DiMaggio joined the Yankees in watched. He looked over, smiled and combination of proficiency and exquis- 1936, just two years after Babe Ruth left and gave a sort of wave. Emboldened, as we ite grace which Joe DiMaggio brought before Lou Gehrig retired. His appearance on were leaving, I went over to shake to the art of playing center field was ceremonial occasions at Yankee Stadium in hands. He rose wonderfully to the occa- recent years was thrilling for fans of all something no baseball averages can ages. sion. measure and that must be seen to be His fame also flowed from the aura of quiet I went out on 54th Street as I recall. believed and appreciated.’’ dignity that DiMaggio carefully preserved And of a sudden was struck as if by Today, I join the Majority Leader throughout his career and retirement. With some Old Testament lightening. ‘‘My and Senators CHARLES SCHUMER (D- the notable exception of his service as a God,’’ I thought, ‘‘he has forgiven me!’’ NY), BARBARA BOXER (D-CA), DIANNE pitchman for the Bowery Savings Bank and He must have known about me all FEINSTEIN (D-CA), and JIM H. BUNNING Mr. Coffee brewing appliances, he dodged the those years, but he returned hate with (R-KY) in introducing a resolution that celebrity limelight. The mystery only added to his allure. love. My soul had been in danger and honors Joe DiMaggio for his storied DiMaggio, who was 84, died with opening he had rescued me. baseball career and for all that he has day a month away. Though he will no longer Still years later, just a little while done off the field. As we reflect on his return to Yankee Stadium to deliver the cer- ago the Yankees won another pennant. life and mourn his death, I ask that we emonial first pitch, his singular record of S2784 CONGRESSIONAL RECORD — SENATE March 16, 1999 athletic achievement and classy conduct will was 24. DiMaggio, son of a San Francisco gled to deal with the earthquake and be long revered. fisherman, was proud, reserved and as pri- its aftermath, they saw a man who— vate as possible for the bearer—the second despite his advanced age—showed the (From the Washington Post, Mar. 9, 1999] generation—of America’s premium athletic strength and dignity to walk calmly tradition, the Yankee greatness established DIMAGGIO’S ELEGANT CAREER through the rubble and reassure his (By George F. Will) by Babe Ruth and Lou Gehrig. DiMaggio felt violated by the sight of Marilyn filming the neighbors. At this moment, as always, There is peculiar pathos to the lives of famous scene in ‘‘The Seven Year Itch’’ when DiMaggio was an inspiration to us all. most great athletes because their careers a gust of wind from a Manhattan subway From his early days with the San compress life’s trajectory of aspiration, ac- grate blows her skirt up above her waist. Francisco Seals to his service as base- complishment and decline. Then what? For Pride, supposedly one of the seven deadly most, the rest of life, which is most of life, ball’s greatest ambassador, Joe sins, is often a virtue and the source of oth- DiMaggio was the epitome of elegance, is anticlimax, like that of ers. DiMaggio was pride incarnate, and he Runners whom renown outran, and Hank Greenberg did much to stir ethnic grace, and good sportsmanship. And the name died before the man, pride among Italian Americans and Jews. Mr. SCHUMER. Mr. President, I am But there was seamlessness to Joe When as a player DiMaggio had nothing left pleased to join Senators MOYNIHAN, DiMaggio’s life in and after the game. The to prove, he was asked why he still played so LOTT, and BOXER in cosponsoring this patina of age did not dull the luster of his hard, every day. Because, he said, every day resolution to honor Mr. Joe DiMaggio. name. Baseball, sport of the long season and there is apt to be some child in the stand much history, has an unusually rich statis- On March 8, 1999, Joe DiMaggio, one of who has never before seen me play. tical geology—a sediment of numbers. Some the greatest baseball players of all- An entire ethic, the code of craftsmanship, time, died in Tampa, Florida. The Yan- numbers are so talismanic that simply citing can be tickled from that admirable thought. them suffices to identify the achievement Not that DiMaggio practiced the full range kee Clipper led his life with class and and achiever. of his craft. When one of his managers was dignity. A true hero and the quin- Examples are 116 (victories in a season, asked if DiMaggio could bunt, he said he did tessential American, Mr. DiMaggio 1906 Cubs); 511 (career victories, Cy Young); not know and ‘‘I’ll never find out, either.’’ gave people something to believe in. 1.12 (season earned run average, Bob Gibson, DiMaggio, one of Jefferson’s ‘‘natural aris- Playing 13 seasons in the major 1968); 130 (stolen bases in a season, Rickey tocrats,’’ proved that a healthy democracy leagues, all for the New York Yankees, Henderson, 1982); 755 (home runs, career, knows and honors nobility when it sees it. Hank Aaron); 60, then 61 and now 70 (home Number 5 not only took left field in runs by Babe Ruth in 1927, Roger Maris in Mrs. BOXER. Mr. President, as a Yankee Stadium, but also took over 1961 and Mark McGwire in 1998); .406 (most Senator from Joe DiMaggio’s home New York and baseball showing us his recent .400 season, Ted Williams, 1941). And state, I am pleased to be an original co- talent day in and day out. When one baseball’s most instantly recognized number, sponsor of the resolution honoring ‘‘the looks at the numbers accumulated by 56—Joe DiMaggio’s consecutive game hitting Yankee Clipper.’’ Joe DiMaggio holds a Mr. DiMaggio, it is hard to think of streak in 1941. unique place in the hearts of every anyone who did it better and in such a The Streak, as it is still known, was stun- baseball fan and every Californian. genuine fashion. As a baseball player, ning, even if a sympathetic official scorer at Joe DiMaggio was born in 1914 in Yankee Stadium may have turned an error few have approached DiMaggio. With a or two into hits. It took two sensational Martinez, California, near San Fran- .325 batting average, nine World Series plays by Indians third baseman Ken Keltner cisco Bay. Like many Californians then rings, a 56 consecutive game hitting to stop The Streak, and the next day and now, Joe was the child of immi- streak in 1941 (a major league record DiMaggio started a 16-game streak. His 56 grants. His parents came from Sicily to that has never been seriously chal- has not been seriously challenged in 57 sea- California, where his father found work lenged for more than 5 decades), 361 sons. His 1993 minor league streak of 61 has as a fisherman. home runs with only 369 strike-outs, not been matched since then. At age 18, Joe began his professional Joe DiMaggio transcended the game of Because of baseball’s grinding everyday- baseball career with the San Francisco ness, professionals place a premium on con- baseball and will remain a symbol for sistency. DiMaggio brought his best, which Seals, where he set a Pacific Coast the ages of talent, commitment, and was baseball’s best, to the ballpark every League record that still stands by hit- grace. As Simon and Garfunkel sang in day. What he epitomized to a mesmerized na- ting in 61 straight games. Three years their hit song Mrs. Robinson, ‘‘where tion in 1941—steely will, understated style, later, he joined the New York Yankees have you gone Joe DiMaggio. . ..’’, the heroism for the long haul—the nation would and immediately became one of base- answer is, into our hearts, which will need after Dec. 7. ball’s brightest stars. In 1941, his 56- stay with us forever. However, the unrivaled elegance of his ca- game hitting streak set a major league reer is defined by two numbers even more But Joe DiMaggio was more than a impressive than his 56. They are 8 and 0. record that most baseball fans consider great baseball player, he transcended Eight is the astonishingly small difference the game’s greatest achievement. the game and will remain a symbol for between his 13-year career totals for home DiMaggio played 13 seasons for the the ages—a symbol of talent, commit- runs (361) and strikeouts (369). (In the 1986 Yankees, winning three Most Valuable ment, and grace. With so few true he- and 1987 season, Jose Canseco hit 64 home Player awards and playing on nine roes today, we are lucky that millions runs and struck out 332 times.) Zero is the World Series championship teams. He of New Yorkers and baseball fans ev- number of times DiMaggio was thrown out was selected to the Baseball Hall of erywhere could live their lives touched going from first to third. Fame in 1955 and voted Major League On the field, the man made few mistakes. by a hero like Joe DiMaggio. Off the field, he made a big one in his mar- Baseball’s greatest living player in Mr. COCHRAN. I ask unanimous con- riage to Marilyn Monroe. But even it en- 1969. sent that the resolution and preamble larged his mythic status. As when they were Joe DiMaggio was a great ballplayer, be agreed to, en bloc, the motion to re- in Japan, and she visited U.S. troops in but he was far more than that. Joe was consider be laid upon the table, and Korea. Upon her return to Tokyo, she said to a role model for young people and a that any statements relating to the him, ingenuously: You’ve never heard cheer- model citizen. At the height of his ca- resolution be placed at the appropriate ing like that—there must have been fifty or reer, he left baseball to volunteer for sixty thousand. He said, dryly: Oh, yes I place in the RECORD. the Army Air Corps and served three The PRESIDING OFFICER. Without have. years in World War II. In his later They had gone to Japan at the rec- objection, it is so ordered. ommendation of a friend (Lefty O’Doul, man- years he worked tirelessly to support The resolution (S. Res. 63) was agreed ager of the San Francisco Seals), who said the Joe DiMaggio Children’s Hospital to. that in a foreign country they could wander in Hollywood, Florida. The preamble was agreed to. around without drawing crowds. The friend I will never forget a televised image The resolution, with its preamble, did not know that Japan was then obsessed of Joe DiMaggio from a decade ago. In reads as follows: with things American, especially baseball October 1989, as the Oakland A’s and S.RES. 63 stars and movie stars. When the most fa- San Francisco Giants were about to mous of each category landed, it took their start a World Series game, a mammoth Joseph Paul ‘‘Joe’’ DiMaggio was born in car six hours to creep to their hotel through Martinez, California, on November 25, 1914; more than a million people. earthquake struck the Bay Area. Fire Whereas Joe DiMaggio was the son of Sicil- As a Californian, he represented baseball’s swept through San Francisco’s Marina ian immigrants, Joseph Paul and Rosalia future—he and San Diego’s Ted Williams, a district, where DiMaggio lived at the DiMaggio, and was the 2d of 3 brothers to 21-year-old rookie in 1939, when DiMaggio time. That night, as residents strug- play Major League Baseball; March 16, 1999 CONGRESSIONAL RECORD — SENATE S2785 Whereas Joe DiMaggio played 13 seasons in MEASURE PLACED ON THE The PRESIDING OFFICER. Without the major leagues, all for the New York Yan- CALENDAR—H. CON. RES. 42 objection, it is so ordered. kees; Whereas Joe DiMaggio, who wore number 5 Mr. COCHRAN. Mr. President, I ask f in Yankee pinstripes, became a baseball icon unanimous consent that H. Con. Res. 42 in the 1941 season by hitting safely in 56 con- be placed on the calendar. PROGRAM secutive games, a major league record that The PRESIDING OFFICER. Without has stood for more than 5 decades and has objection, it is so ordered. Mr. COCHRAN. For the information never been seriously challenged; f of all Senators, the Senate will recon- Whereas Joe DiMaggio compiled a .325 bat- vene tomorrow at 10 a.m. and begin a ting average during his storied career and ORDERS FOR WEDNESDAY, MARCH period of morning business until 11 played on 9 World Series championship 17, 1999 teams; a.m. Following morning business, the Whereas Joe DiMaggio hit 361 home runs Mr. COCHRAN. Mr. President, I ask Senate will resume consideration of during his career, while striking out only 369 unanimous consent that when the Sen- the missile defense bill, with a limited times; ate completes its business today it number of amendments remaining in Whereas Joe DiMaggio was selected to the stand in adjournment until 10 a.m., on order. The leader has expressed his Baseball Hall of Fame in 1955, 4 years after Wednesday, March 17. I further ask hope that the Senate can complete ac- his retirement; that on Wednesday, immediately fol- tion on the bill by early afternoon on Whereas Joe DiMaggio in 1969 was voted Wednesday. Major League Baseball’s greatest living lowing the prayer, the Journal of pro- player; ceedings be approved to date, the For the remainder of the week, the Whereas Joe DiMaggio served the Nation morning hour be deemed to have ex- leader has stated that the Senate may in World War II as a member of the Army Air pired, the time for the two leaders be consider a Kosovo resolution and/or the Corps; reserved, and the Senate then begin a supplemental appropriations bill. Whereas Joe DiMaggio was tireless in help- period of morning business until 11 Therefore, Members should expect ing others and was devoted to the ‘‘Joe a.m., with Senators permitted to speak rollcall votes during Wednesday’s ses- DiMaggio Children’s Hospital’’ in Hollywood, for up to 10 minutes each, with the fol- sion and throughout the reminder of Florida; the week. Whereas Joe DiMaggio will be remembered lowing exceptions: Senator VOINOVICH, 15 minutes; Senator GRASSLEY, 10 min- as a role model for generations of young peo- f ple; and utes; Senator SCHUMER, 10 minutes; Whereas Joe DiMaggio transcended base- Senator BINGAMAN, 10 minutes; Senator ball and will remain a symbol for the ages of KERREY of Nebraska, 15 minutes. ADJOURNMENT UNTIL 10 A.M. talent, commitment, and achievement: Now, The PRESIDING OFFICER. Without TOMORROW therefore, be it objection, it is so ordered. Mr. COCHRAN. Mr. President, if Resolved, That the Senate recognizes and Mr. COCHRAN. Mr. President, I ask there is no further business to come be- honors Joe DiMaggio— unanimous consent that following fore the Senate, I now ask unanimous (1) for his storied baseball career; morning business, the Senate resume consent the Senate stand in adjourn- (2) for his many contributions to the Na- tion throughout his lifetime; and consideration of S. 257, the national ment under the previous order. (3) for transcending baseball and becoming missile defense bill, under the provi- There being no objection, the Senate, a symbol for the ages of talent, commitment, sions of the unanimous consent agree- at 5:59 p.m., adjourned until Wednes- and achievement. ment reached earlier today. day, March 17, 1997, at 10 a.m.